Consolidated Financial Results
for the First Six Months of the Fiscal Year Ending March 31, 2015 [J-GAAP]
November 6, 2014

Company Name:
Dai Nippon Printing Co., Ltd.
Stock exchange listing:Tokyo
Stock code:
7912
URL: http://www.dnp.co.jp/
Representative:
Yoshitoshi Kitajima, President
Contact person:
Takaaki Tamura, General Manager, Press and Public Relations
Telephone:+81-3-5225-8220
Securities report issuing date:November 10, 2014
Dividend payment date:
December 10, 2014
Preparation of quarterly earnings presentation material: No
Holding of quarterly earnings announcement:
No(Amounts under one million yen have been rounded down.)
1. Consolidated financial results for the first six months ended September 30, 2014
(April 1, 2014 – September 30, 2014)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Sales

Six months ended
September 30, 2014
Six months ended
September 30, 2013

Operating Income

Ordinary Income

Net Income

Million yen%

Million yen%

Million yen%

Million yen%

715,734

0.9

22,411(6.6)

25,309(6.3)

15,154

1.9

709,625(1.5)

24,003

106.7

27,021

84.1

14,866–

Note: Comprehensive income: For the first six months ended September 30, 2014: ¥19,869 million (-49.9%)
For the first six months ended September 30, 2013: ¥39,627 million (–%)
Diluted Net Income
per Share

Net Income per ShareSix months ended
September 30, 2014
Six months ended
September 30, 2013

Yen

Yen

23.54

23.32

23.09

23.02

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

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of September 30, 2014

1,585,310

988,854

59.6

As of March 31, 2014

1,574,753

976,38659.2

Note: Stockholders’ equity: As of September 30, 2014: ¥945,414 million

As of March 31, 2014: ¥932,329 million

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

Year ended
March 31, 2014
Year ending
March 31, 2015

SecondQuarter-end

Third
Quarter-end

–

16.00

–

–

16.00

Year-end

16.00

Year ending March 31, 2015–
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, 2015
(April 1, 2014 – March 31, 2015)(Percentages show change from corresponding year-ago period.)
Net Sales
Million yen%

Operating Income

Ordinary Income

Million yen

Million yen%%

Net Income
per Share

Net Income
Million yen%

Yen

Full year
1,500,000
3.6
52,0003.8
54,0001.3
26,0001.4
Note: Revisions to the most recently announced earnings forecasts during the current quarter: No

40.38

Other information(1) Changes in significant subsidiaries during the first six months (changes in specified subsidiaries
resulting in change of scope of consolidation): Yes
Newly included: –Excluded: 1 DNP Photomask Technology Taiwan Co., Ltd.
Note: For further details, see the section titled, “2. Summary information (notes), (1) Changes in status ofmaterial subsidiaries during the first six months,” on page 4.

(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. Summary information (notes), (2) Changes inaccounting 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 September 30,
2014

700,480,693
shares

As of March 31, 2014

700,480,693
shares

As of September 30,
2014

56,611,815
shares

As of March 31, 2014

56,586,830
sharesSix months ended
September 30, 2014

643,884,365
sharesSix months ended
September 30, 2013

643,972,337
sharesPresentation of implementation status for quarterly review procedures
The quarterly review procedure based on the Financial Instruments and Exchange Act does not apply tothese Consolidated Financial Results, and the quarterly review procedure based on the Financial
Instruments and Exchange Act is underway as of the release of these Consolidated Financial Results.
Explanation regarding appropriate use of earnings forecasts and other special notes
Forward-looking statements in this report, including earnings forecasts, are based on assumptions about
economic conditions, market trends, and other factors at the time the report was prepared. Actual results
may differ significantly due to a variety of factors.
See “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(1) Changes in status of material subsidiaries during the first six months.................... 4(2) Changes in accounting policies, changes in accounting estimates, andrestatement of revisions................................................................................................. 4
3. Quarterly consolidated financial statements..................................................................... 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.] ..........................................................................................11

1

1. Qualitative information on the consolidated results for the current quarter(1) Explanation of the consolidated financial results
Japan’s economy continued to gradually recover during the first six months of the fiscal year.
Employment conditions and corporate earnings improved, benefiting from a series ofgovernment economic policies. However, the economy has still not reached a full-fledged
recovery, due partly to a reaction to front-loaded demand prior to the consumption tax hike,unfavorable weather conditions, and economic slowdowns overseas, including in emerging
countries.
The printing industry continued to face a tough business environment, due partly to a decline
in order prices on account of weak demand and stiffer competition, and higher raw material
prices.
In this environment, the DNP Group (DNP), based on its P&I Solutions business vision, is
working to aggressively develop its business from consumer, social, and global perspectives
under the catchphrase “Today’s Innovation is Tomorrow’s Basic.”
During the period under review, DNP implemented nationwide organizational restructuring inJuly with the aim of improving customer service, enhancing solution proposals, and raisingproduction efficiency. DNP integrated nationwide sales, planning, and production organizationsin the Commercial Printing and Business Forms businesses, and after previously integrating thenationwide production structure in the Packaging business, it integrated sales and planning
organizations to create a structure providing nationwide control. Going forward, DNP will work toensure earnings by pursuing the reorganization of business structures in Japan and overseas inan effort to further enhance its earnings base.
As a result of these efforts, consolidated net sales during the first six months grew 0.9% year
on year to ¥715.7 billion, consolidated operating income fell 6.6% to ¥22.4 billion, consolidated
ordinary income fell 6.3% to ¥25.3 billion, and net income grew 1.9% to ¥15.1 billion.
Business segment results are presented below.
DNP changed its reportable business segments effective from the first quarter of the current
fiscal year, and comparison and analysis of the first six-month performance are based on the
new reportable business segments.
[PRINTING]
Information Communication
In the Books and Magazines business, DNP aggressively pursued sales activities, especially forbooks, but sales of both books and magazines decreased year on year amid a continued slump
in the publication market.
In the Commercial Printing business, sales decreased from the previous year on
across-the-board declines for printed materials, including flyers and catalogs.
In the Business Forms business, smart card sales increased for financial institutions andelectronic money, but Information Processing Services (IPS; ranging from data entry to printing
and shipment of personalized mail and other items) decreased, and overall sales fell below
year-ago levels.
In the Education and Publications Distribution business, DNP worked to expand business inthe “honto” hybrid bookstore network that combines physical bookstores, online bookstores,
and e-book sales services. Moreover, aided by favorable performances in the library support,
publishing, and other businesses, overall sales increased from the previous year.
As a result of the above, overall segment sales grew 0.1% year on year to ¥342.9 billion but
operating income fell 42.1% to ¥3.2 billion.
Lifestyle and Industrial Supplies
In the Packaging business, paper packaging fell below year-ago levels, but overall sales
increased from the previous year on firm sales for plastic film packaging and higher sales for
PET bottle aseptic filling systems.

2

The Lifestyle Materials business faced a difficult business environment, including a decreasein domestic housing starts in reaction to previous front-loaded demand. However, sales
increased year on year as a result of firm sales of eco-friendly products that use DNP’sproprietary Electron Beam coating technology.
In the Industrial Supplies business, despite a decline for soft packs for lithium-ion batteries,
sales increased over last year on growth for dye-sublimation thermal transfer printing media forphoto printers (color ink ribbons and receiver paper) and other products.
As a result of the above, overall segment sales grew 2.5% year on year to ¥231.5 billion andoperating income grew 17.2% to ¥11.2 billion.
Electronics
In the LCD Color Filter business, small- and medium-sized filters for smart phones and tablets
were firm, but sales fell below year-ago levels on a decline for large TV and PC filters.
Semiconductor photomasks were sluggish in Japan, but sales increased from last year as aresult of tapping into firm overseas demand.
In the Optical Films business, polarizing plate films increased, but overall sales fell year on
year on declines for other applications.
As a result of the above, overall segment sales fell 2.0% year on year to ¥116.5 billion andoperating income fell 6.1% to ¥12.4 billion.
[BEVERAGES]
Beverages
The soft drink industry continues to face a tough market environment as a result of market sharecompetition. Under these circumstances, DNP worked to expand market share and acquire newcustomers by releasing new products.
As a result of the above, sales increased for mainstay Coca-Cola, sports drinks, and I
LOHAS, a brand of mineral water that uses a lightweight PET bottle. Overall segment sales
grew 6.7% year on year to ¥27.4 billion and operating income grew 60.3% to ¥0.05 billion.
(2) Explanation of the consolidated financial position
Total assets at the end of the second quarter increased by ¥10.5 billion from the end of theprevious fiscal year to ¥1,585.3 billion, due mainly to an increase in investment securities.
Total liabilities decreased by ¥1.9 billion from the end of the previous fiscal year to ¥596.4
billion, due mainly to a decrease in short-term bank loans.
Net assets increased by ¥12.4 billion from the end of the previous fiscal year to ¥988.8 billion,
due mainly to increases in retained earnings and valuation difference on available-for-salesecurities.
As a result of the above, the equity ratio rose from 59.2% at the end of the previous fiscal
year to 59.6%.
Consolidated cash flow provided by operating activities during the first six months totaled ¥48.2
billion, due mainly to ¥23.4 billion in income before income taxes and minority interests and¥32.8 billion in depreciation.
Cash flow used in investing activities totaled ¥21.2 billion, due mainly to ¥26.4 billion in
payments for purchases of property, plant and equipment. Cash flow used in financing activities
totaled ¥21.8 billion, due mainly to ¥10.5 billion in dividends paid and an ¥8.2 billion decrease indebt.
As a result, cash and cash equivalents at the end of the second quarter totaled ¥202.6 billion,
an increase of ¥2.8 billion from the end of the previous fiscal year.
(3) Explanation of the consolidated earnings forecasts
Our earnings forecasts for the fiscal year ending March 2015 are unchanged from the forecasts
announced on May 13, 2014.

3

2. Summary information (notes)(1) Changes in status of material subsidiaries during the first six months
DNP specified subsidiary DNP Photomask Technology Taiwan Co., Ltd. (DPTT) was absorbed
in a merger by Photronics, Inc. subsidiary Photronics Semiconductor Mask Corp. (namechanged to Photronics DNP Mask Corporation; PDMC) during the first quarter.
As a result of this merger, DNP has removed DPTT from consolidation due to its eliminationand has added PDMC as an equity method affiliate.
(2) Changes in accounting policies, changes in accounting estimates, and restatementof revisions(Changes in accounting policies)
DNP adopted the provisions of the main clauses in Paragraph 35 of the Accounting Standard for
Retirement Benefits (ASBJ Statement No. 26, May 17, 2012) and in Paragraph 67 of the
Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May 17,2012) starting in the first quarter of the current fiscal year.
Accordingly, DNP has revised the method of calculating retirement benefit obligations andservice costs; changed the method of attributing expected retirement benefits to periods from astraight line-basis to a benefit formula basis; and changed the method of determining a discountrate from a method in which bond duration as the basis for determining the discount rate isdetermined based on a number of years similar to the average remaining service period of
employees to a method that mainly uses multiple discount rates established for each period of
expected retirement benefit payments.
With the adoption of the Accounting Standard for Retirement Benefits, in accordance with thetransitional treatment stipulated in Paragraph 37, DNP reflected in retained earnings the amountof the impact of the change in the method of calculating retirement benefit obligations andservice costs at the start of the current fiscal year.
As a result, net defined benefit liability at the start of the current fiscal year increased by¥2,392 million, net defined benefit asset increased by ¥9,190 million, and retained earnings
increased by ¥4,000 million.
Additionally, operating income increased by ¥783 million, and both ordinary income andincome before income taxes and minority interests increased by ¥798 million in the first six
months of the current fiscal year.

43. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(Million yen)
As of March 31, 2014ASSETS
Current assets
Cash and time deposits
Notes and trade receivable
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

As of September 30, 2014

203,212356,981
91,681
28,50919,46435,996(2,791)
733,054

202,657
349,734
97,94230,97821,092
31,267(1,612)732,061

195,326
118,903
153,159
27,57733,571
528,538

186,788
103,685
153,41230,19931,594505,680

31,751
31,751

31,04731,047217,059
70,198(5,848)281,409841,699
1,574,753

240,613
83,140(7,233)
316,520853,248
1,585,310

(Million yen)
As of March 31, 2014

As of September 30, 2014

LIABILITIESCurrent liabilities
Notes and trade payable
Short-term bank loans

249,604
48,961

252,929
42,989Reserve for bonuses

17,31016,966

Other

102,544

101,109

Total current liabilities

418,422413,995

Bonds

101,800

103,375

Long-term debt

17,505

15,901

Net defined benefit liability

29,55032,497

Other

31,08930,687

Total long-term liabilities

179,945

182,461598,367

596,456

Common stock

114,464

114,464

Capital surplus

144,898

144,898

Retained earnings

727,070

735,861

Treasury stock(94,322)(94,348)

Total stockholders’ equity

892,110

900,876

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

34,597

41,1283(2)Foreign currency translation adjustments

144(1,768)Remeasurements of defined benefit plans
Total accumulated other comprehensive
income

5,473

5,180

40,21844,53816

16

Minority interests

44,04043,423TOTAL NET ASSETS

976,386

988,854

1,574,753

1,585,310

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity

Stock acquisition rights

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, 2013

Six months ended
September 30, 2014

Net sales

709,625

715,734

Cost of sales

574,853

578,890

Gross profit

134,771

136,843

Selling, general and administrative expenses

110,768

114,432

Operating income

24,003

22,411

2,467
611
3,808
6,887

2,824
721
2,956
6,503

1,672
2,197
3,869

1,193
2,410
3,604

27,02125,309

646
104
177
–
927

206
3,946
–
1
4,154

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

943
24
4,342
715
6,026
23,437
6,742
879
7,622
15,815661
15,154Non-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
Compensation income
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Loss on evaluation of investment securities
Loss on business integration
Other
Total extraordinary losses
Income before income taxes and minority interests
Current income taxes
Deferred income taxes
Total income taxes
Income before minority interests
Minority interests
Net income

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

Income before minority income
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains (losses) on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income ofaffiliates accounted for using equity method
Total other comprehensive income
Comprehensive income
Attributable to：Shareholders of parent company
Minority interests

8

Six months ended
September 30, 2013

Six months ended
September 30, 2014

15,844

15,815

14,288

6,506

(1)
9,126
–

6
(2,075)(1,443)

369

1,060

23,782
39,627

4,053
19,86937,846
1,781

19,474395

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

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Increase (Decrease) of doubtful receivables, net
Decrease of provision for retirement benefits, net
Increase of net defined benefit asset
Decrease 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 losses on sales or disposal of fixed assets
Net decrease in trade receivables
Increase in inventories
Increase (Decrease) in trade payables
Other
Sub-total
Payments for extra retirement payments
Payment of income taxes
Net cash provided by operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Payments for purchases of property, plant andequipment
Proceeds from sales of property, plant andequipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments from purchase of stock in subsidiaries
resulting in change in scope of consolidation
Interest and dividends received
Other
Net cash used in investing activities

9

Six months ended
September 30, 2013

Six months ended
September 30, 2014

25,49036,409(428)(4,904)
–
–
(611)
1,407
(2,467)
1,672
(100)
154
1,301
29,272(2,246)(15,163)
2,142
71,926(219)(6,845)64,862

23,43732,882275–(7,115)
(121)
(721)
1,057
(2,824)
1,193(3,910)
35
757
2,134
(10,106)
3,101
15,67155,745(153)(7,337)48,254(1,617)387(25,690)(26,450)

4,157

2,976

(6,024)467(1,605)
6,863

–

(248)

3,220
(3,858)(29,345)

3,250(6,393)(21,219)

(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 issuance 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 minority 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 fromchange of scope of consolidation
Decrease in cash and cash equivalents resulting
from the merger of consolidated subsidiaries
Cash and cash equivalents at end of period10

Six months ended
September 30, 2013

Six months ended
September 30, 2014

(817)
3,010
(3,537)–(50,380)(37)(5,873)
3,652(6,059)
1,963
(425)
(27)

(0)

(0)

(1,707)(10,311)(352)(4,094)(68,230)(1,190)(10,311)(276)(3,339)(21,887)

3,585(1,114)(29,127)

4,033

212,062–

199,813–
182,935

64(1,274)
202,636(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, 2013 – September 30, 2013)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

339,525

225,489

118,912Beverages

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

25,697

709,625–

709,625

Inter-segment

2,929

387

0

1

3,318

(3,318)–

Total

342,455

225,876

118,91225,698712,944(3,318)709,625

Segment income

5,658

9,561

13,29633

28,550(4,547)24,003

Notes: 1. Segment income is adjusted for costs related to basic research not assignable to a reporting segment
or costs of research shared by different segments.
2. Segment income is adjusted to reflect operating income as reported on the quarterly consolidated
statements of income.

II. First six months of current fiscal year (April 1, 2014 – September 30, 2014)
1. Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

340,587

231,202

116,513

Beverages

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

27,430715,734–

715,734

Inter-segment

2,358

385

7

2

2,754

(2,754)–

Total

342,946

231,588

116,520

27,433

718,488(2,754)

715,734

Segment income

3,276

11,21012,47953

27,019(4,608)22,411

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.

11

2. Changes in reportable business segments, etc.
(1) Changes in reportable business segments
DNP changed its reportable business segments effective from the first quarter of the current
fiscal year.
DNP shifted the Optical Films business from the Lifestyle and Industrial Supplies segment to
the Electronics segment as a result of integrating the business unit responsible for display
products and semiconductor photomasks and the business unit responsible for optical films
including LCD surface films in April 2014.
Segment information for the first six months of the previous fiscal year has been preparedbased on the new reportable business segments.
(2) Application of Accounting Standard for Retirement Benefits
As noted in the section on changes in accounting policies, DNP changed the method of
calculating retirement benefit obligations and service costs effective from the first quarter of thecurrent fiscal year, and has accordingly made a similar change in the method of calculating
retirement benefit obligations and service costs for business segments.
As a result of this change, compared with the previous method, segment profits increased by¥369 million for Information Communication, by ¥187 million for Lifestyle and Industrial Supplies,by ¥108 million for Electronics, and by ¥70 million for Beverages.

12