Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending March 31, 2014
[J-GAAP]
February 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:February 13, 2014
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, 2013
(April 1, 2013 – December 31, 2013)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Sales

Nine months ended
December 31, 2013
Nine months ended
December 31, 2012

Operating Income

Ordinary Income

Net Income

Million yen%

Million yen%

Million yen%

Million yen%

1,075,027(1.2)

36,12747.6

40,60741.3

22,002

122.3

1,088,291(4.2)

24,484

7.0

28,737

10.6

9,896

143.4

Note: Comprehensive income: For the first nine months ended December 31, 2013: ¥54,676 million (325.1%)
For the first nine months ended December 31, 2012: ¥12,861 million (–%)
Diluted Net Incomeper ShareNet Income per Share

Nine months ended
December 31, 2013
Nine months ended
December 31, 2012

Yen

Yen

34.17

34.02

15.37

15.33

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of December 31, 2013

1,548,258

970,827

59.8

As of March 31, 2013

1,578,976

937,055

56.6Note: Stockholders’ equity: As of December 31, 2013: ¥925,994 million

As of March 31, 2013: ¥893,124 million

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

Year ended
March 31, 2013
Year ending
March 31, 2014

SecondQuarter-end

Third
Quarter-end

–

16.00

––

16.00

–

Year-end

16.00

Year ending March 31, 2014
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, 2014
(April 1, 2013 – March 31, 2014)(Percentages show change from corresponding year-ago period.)
Net Sales
Million yen%

Operating Income

Ordinary Income

Million yen

Million yen%%

Net Incomeper ShareNet Income
Million yen%

Yen

1,530,000
5.8
48,00034.2
49,00021.5
23,00019.7
Note: Revisions to the most recently announced earnings forecasts during the current quarter: No

35.72

Full year

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: 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 endof each period
3) Average number of shares
outstanding during the period(cumulative from the start of thefiscal year)

As of December 31,
2013

700,480,693
shares

As of March 31, 2013

700,480,693
shares

As of December 31,
2013

56,572,559
shares

As of March 31, 2013

56,490,329
sharesNine months ended
December 31, 2013

643,959,913
sharesNine months ended
December 31, 2012

644,039,918
sharesPresentation of implementation status for quarterly review procedures
These quarterly financial statements are not subject to quarterly review procedures based on the Financial
Instruments and Exchange Act, and a review of these financial statements based on said act is underway
at the time of their disclosure.
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 the “1. Qualitative information on the consolidated results for the current quarter, (3) Explanation of
the consolidated 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 ··················································· 32. Quarterly consolidated financial statements ····································································· 4(1) Quarterly consolidated balance sheets ········································································ 4(2) Quarterly consolidated statements of income and quarterly consolidated
statements of comprehensive income·········································································· 6
Quarterly consolidated statements of income
First nine months of the fiscal years········································································· 6
Quarterly consolidated statements of comprehensive income
First nine 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[Segment information, etc.]···························································································· 811. Qualitative information on the consolidated results for the current quarter(1) Explanation of the consolidated financial results
During the first nine months of the fiscal year, Japan’s economy showed some positive signs,
including an increase in consumer spending and improvement in corporate earnings, aided by aseries of government economic policies. However, overseas economic slowdowns and changes
in demand caused by a consumption tax hike are causes for concern, and the economic outlook
remains uncertain.
The printing industry continued to face a tough business environment, due partly to higher
raw material prices and a decline in order prices from stiffer competition.
In this environment, the DNP Group (DNP) sought to aggressively develop its business under
the catchphrase “Today’s Innovation is Tomorrow’s Basic” and deliver products, services, andsolutions tailored to the needs of its customers, based on its P&I Solutions business vision (P&Istands for “printing technology” and “information technology”). DNP also pursued “Production21” Activities with the aim of establishing a robust production structure in all facets of production,including quality, cost, and delivery time. Moreover, DNP pursued structural reforms including
the reorganization of domestic and overseas business structures from the standpoint of overall
optimization, and actively worked to expand its business from consumer, social, and global
perspectives. To bolster the foundation for these business activities, DNP established the DNP
Kashiwa Data Center in October 2013 and built a structure to deliver unique information
services including e-books and e-flyers.
As a result of these efforts, consolidated net sales for the first nine months fell 1.2% year on
year to ¥1,075.0 billion, consolidated operating income grew 47.6% to ¥36.1 billion,
consolidated ordinary income grew 41.3% to ¥40.6 billion, and net income grew 122.3% to¥22.0 billion.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Books and Magazines business, amid a continued slump in the publications market, booksales increased from last year as a result of efforts to expand orders, but this was not enough tooffset a decline for magazines, and overall sales fell below year-ago levels.
In the Commercial Printing business, sales decreased year on year on weak sales of flyers,
pamphlets, catalogs, and other printed materials.
The Business Forms business performed well as information processing services (rangingfrom data entry to printing and shipment of personalized mail and other items) increased on
growth in business process outsourcing services for account openings with the start of theNippon Individual Savings Account (NISA) program.
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. However, sales decreased from the previous year as a result ofstructural reforms, including the closure of unprofitable stores.
As a result of the above, overall segment sales fell 1.4% year on year to ¥518.6 billion andoperating income dropped 34.7% to ¥7.4 billion.
Lifestyle and Industrial Supplies
In the Packaging business, film packaging (flexible packaging) was firm, but sales decreased
year on year on a decline for PET bottle aseptic filling systems.
The Lifestyle Materials business performed well on growth for eco-friendly products that use
DNP’s proprietary Electron Beam coating technology amid an increase in domestic housing
starts driven in part by rush demand ahead of the consumption tax hike.
In the Industrial Supplies business, sales increased year on year on growth for anti-reflection2

films used in flat-panel displays and strong sales of dye-sublimation thermal transfer printing
media for photo printers (color ink ribbons and receiver paper), buoyed by a contribution from anew plant in Malaysia that opened in December 2013.
As a result of the above, overall segment sales fell 0.3% year on year to ¥393.8 billion butoperating income grew 23.7% to ¥25.5 billion.
Electronics
In the LCD Color Filter business, small- and medium-sized filters for smart phones and tablets
were firm, but sales decreased year on year on a decline for large TV and PC filters.
Photomasks were sluggish in Japan, but sales increased from last year as a result of tapping
into steadily expanding overseas demand.
As a result of the above, overall segment sales fell 5.7% year on year to ¥129.4 billion andoperating income totaled ¥9.3 billion, versus a loss of ¥1.9 billion during the same period lastyear.
[BEVERAGES]
Beverages
Amid tough conditions with stiffer sales competition in the soft drink market, DNP worked to
expand sales through aggressive promotional activities.
As a result of the above, sales increased for I LOHAS, a brand of mineral water that uses alightweight PET bottle, but decreased for coffee beverages. Overall segment sales fell 3.0%
year on year to ¥41.8 billion but operating income grew 23.4% to ¥0.8 billion.

(2) Explanation of the consolidated financial position
Total assets at the end of the third quarter decreased by ¥30.7 billion from the end of theprevious fiscal year to ¥1,548.2 billion, due mainly to a decrease for cash and time deposits.
Total liabilities decreased by ¥64.4 billion from the end of the previous fiscal year to ¥577.4billion, due mainly to a decrease for current portion of bonds.
Net assets increased by ¥33.7 billion from the end of the previous fiscal year to ¥970.8 billion,
due mainly to increases for valuation difference on available-for-sale securities and foreign
currency translation adjustments.
As a result of the above, the equity ratio rose from 56.6% at the end of the previous fiscalyear to 59.8%.

(3) Explanation of the consolidated earnings forecasts
Our earnings forecasts for the fiscal year ending March 31, 2014 are unchanged from theforecasts announced on May 13, 2013.

3

2. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(Million yen)
As of March 31, 2013

As of December 31, 2013ASSETS
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

4

213,630
367,765
91,04729,03018,97733,583(2,883)751,150

171,564
363,21491,71232,451
21,03826,777(2,908)703,849

196,019
129,350
154,005
22,921
36,157538,454

195,215
115,717
152,276
28,04734,761
526,018

35,48035,48032,51432,514

189,657
70,210(5,977)
253,890827,825
1,578,976

231,645
60,052(5,821)
285,875
844,408
1,548,258

(Million yen)
As of March 31, 2013

As of December 31, 2013

LIABILITIESCurrent liabilities
Notes and trade payable
Short-term bank loans

249,567
47,296

254,500
43,289Current portion of bonds

50,7601,780

Reserve for bonuses

16,004

6,526

Other

94,15689,387

Total current liabilities

457,784

395,484

Bonds

102,800

101,575

Long-term debt

19,54821,619Provision for retirement benefits

26,441

26,903Other

35,34531,847

Total long-term liabilities

184,135

181,945

641,920

577,430

Common stock

114,464

114,464

Capital surplus

144,898

144,898

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity

Retained earnings

722,057

723,434

Treasury stock(94,226)(94,307)

Total stockholders’ equity

887,193

888,490

18,90842,272

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

8(19)(12,986)(4,748)5,930

37,50416

16

Minority interests

43,91544,817TOTAL NET ASSETS

937,055

970,827

1,578,976

1,548,258

Foreign currency translation adjustments
Total accumulated other comprehensive
incomeStock acquisition rights

TOTAL LIABILITIES AND NET ASSETS

5

(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, 2012
1,088,291

Nine months ended
December 31, 2013
1,075,027

Cost of sales

894,715

871,923

Gross profit

193,575

203,103

Selling, general and administrative expenses

169,090

166,975

Operating income

24,484

36,127

3,181
2,872
5,392
11,446

3,362
973
5,624
9,960

2,618
4,575
7,194

2,297
3,183
5,480

28,73740,607

234
293
121
648

985
297
325
1,609

3,157
3,073
2,673
8,904
20,481
10,201796
10,997
9,483(413)
9,896

3,287
154
436
3,878
38,338
8,691
6,588
15,28023,0581,056
22,002

Net 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
Compensation income
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 minority interests
Current income taxes
Deferred income taxes
Total income taxes
Income before minority interests
Minority interests
Net income

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

Income before minority interests
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred losses on hedges
Foreign currency translation adjustments
Share of other comprehensive income (loss) ofaffiliates accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income (loss) attributable tominority interests

7

Nine months ended
December 31, 2012

Nine months ended
December 31, 2013

9,483

23,0582,215

22,973

(4)
1,178

(15)
8,170

(11)

489

3,378
12,861

31,61854,676

13,65553,576

(794)

1,100

(3) 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 nine months of previous fiscal year (April 1, 2012 – December 31, 2012)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

521,381386,526

137,273

Beverages

Total(Million yen)Amounts
reported onAdjustment
quarterlyNote 1
consolidated
statements ofNote 2incomeNet sales
Outside customers43,110

1,088,291–

1,088,291

Inter-segment

4,689

8,502

0

1

13,194(13,194)–

Total

526,070

395,028

137,274

43,112

1,101,485(13,194)

1,088,291

Segment income (loss)

11,335

20,611(1,941)654

30,659(6,174)24,484

Notes: 1. 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.
2. Segment income (loss) 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, 2013 – December 31, 2013)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

514,481389,300

129,421

Beverages

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

41,824

1,075,027–

1,075,027

Inter-segment

4,135

4,538

12

8,678

(8,678)–

Total

518,617393,838

129,42241,827

1,083,705(8,678)1,075,027

Segment income

7,401

25,505

9,373807

43,087(6,959)36,127

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.

8