Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2019
[J-GAAP]
August 9, 2018

Company Name:
Dai Nippon Printing Co., Ltd.
Stock exchange listing:Tokyo
Stock code:
7912
URL: http://www.dnp.co.jp/
Representative:
Yoshinari Kitajima, President
Contact person:
Takaaki Tamura, General Manager, Corporate Communication
Telephone:+81-3-6735-0101
Securities report issuing date:August 10, 2018
Dividend payment date:–Preparation of quarterly earnings presentation material: No
Holding of quarterly earnings announcement:
No(Amounts under one million yen have been rounded down.)
1. Consolidated financial results for the first three months ended June 30, 2018
(April 1, 2018 – June 30, 2018)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Income
Attributable toOperating Income
Ordinary Income
Parent Company
Shareholders

Net Sales

Three months ended
June 30, 2018
Three months ended
June 30, 2017

Million yen%

Million yen%

Million yen%

Million yen%

342,969(0.2)

11,95545.2

15,19828.8

10,13932.7

343,721

(1.7)

8,233

38.9

11,800

32.0

7,638

883.8

Note: Comprehensive income: For the first three months ended June 30, 2018: ¥29,051 million (71.1%)
For the first three months ended June 30, 2017: ¥16,981 million (529.8%)
Diluted Net Income
per Share

Net Income per ShareThree months ended
June 30, 2018
Three months ended
June 30, 2017

Yen

Yen

33.62

33.61

24.95

24.91

Note: Dai Nippon Printing Co., Ltd. implemented a share consolidation in which two shares of common stock wereconsolidated into one share effective October 1, 2017. Accordingly, it has estimated net income per share and diluted
net income per share assuming this share consolidation was implemented at the start of the previous consolidated
fiscal year.

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of June 30, 2018

1,790,634

1,121,751

59.9

As of March 31, 2018

1,794,764

1,102,550

58.7

Note: Stockholders’ equity as of June 30, 2018: ¥1,071,730 million

As of March 31, 2018: ¥1,053,600 million

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

Year ended
March 31, 2018Year ending
March 31, 2019––

SecondQuarter-end

Third
Quarter-end

16.00

–

Year-end

32.00

Total

–

Year ending March 31, 2019
32.00
–
32.00
(Forecasts)
Note: Revisions to the most recently announced dividend forecasts during the current quarter: No

64.00

Note: Dai Nippon Printing Co., Ltd. implemented a share consolidation in which two shares of common stock wereconsolidated into one share effective October 1, 2017. As a result, year-end dividends per share for the fiscal year
ended March 2018 shows dividends after the share consolidation, and total annual dividends shows “–”. Without theshare consolidation, year-end dividends per share for the fiscal year ended March 2018 would be ¥16.00 and total
annual dividends would be ¥32.00.

3. Consolidated earnings forecasts for the year ending March 31, 2019
(April 1, 2018 – March 31, 2019)(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
0.5
47,0001.4
52,0002.0
28,0001.8
Note: Revisions to the most recently announced earnings forecasts during the current quarter: No

92.85

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: 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

As of June 30, 2018324,240,346
shares

As of March 31, 2018324,240,346
shares

As of June 30, 2018

22,677,092
shares

As of March 31, 2018

22,676,600
shares3) Average number of shares
outstanding during the period
Three months ended
301,563,521 Three months ended
306,170,826
June 30, 2018
shares June 30, 2017
shares(cumulative from the start of the
fiscal year)
Note: Dai Nippon Printing Co., Ltd. implemented a share consolidation in which two shares of common stock wereconsolidated into one share effective October 1, 2017. Accordingly, it has estimated average number of shares
outstanding during the period assuming this share consolidation was implemented at the start of the previous
consolidated fiscal year.

* 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 current quarter (3) Explanation of the consolidated earnings forecasts,” on page
4.

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 ................................................... 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 three months of the fiscal years ....................................................................... 7
Quarterly consolidated statements of comprehensive income
First three months of the fiscal years ....................................................................... 8(3) Notes regarding quarterly consolidated financial statements ................................... 9[Notes on premise of a going concern] ........................................................................ 9[Significant changes in shareholders’ equity] ............................................................. 9[Additional information] ................................................................................................. 9[Segment information, etc.]............................................................................................ 9

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 three months of the fiscal year
ending March 2019, with employment and income conditions continuing to improve andcorporate capital expenditures showing signs of picking up, mainly in growth areas. However,
the economy has still not reached a full-fledged recovery, affected by a still strong budget
mindset among consumers, a lack of strength in consumer spending, and a rise in raw material
prices.
The printing industry continued to face a tough business environment, reflecting lower
demand for printed media, including published printed materials, and accompanying increase incompetition, due partly to market growth for e-books and online advertising.
In this environment, the DNP Group is pursuing initiatives to achieve a “Third Corporate
Founding.” Dai Nippon Printing Co., Ltd. was originally established in 1876 and achieved a“Second Corporate Founding” by expanding the scope of its business through the applicationand development of printing technologies during the tumultuous period after the Second World
War. However, times have changed significantly and the DNP Group is now working totransform itself. Based on the DNP Group Vision 2015 and the four growth areas of “Knowledge
and Communication,” “Food and Healthcare,” “Lifestyle and Mobility,” and “Environment andEnergy,” the DNP Group is pursuing P&I innovations that combine its strengths in printing andinformation and is working to create new value that contributes to solving social issues.
As a result of these efforts, consolidated net sales for the first three months fell 0.2% year on
year to ¥342.9 billion, consolidated operating income grew 45.2% to ¥11.9 billion, consolidated
ordinary income grew 28.8% to ¥15.1 billion, and net income attributable to parent company
shareholders grew 32.7% to ¥10.1 billion.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Publishing business, amid a continued slump in the publication market, the DNP Group
worked to help solve problems within the industry, including by harnessing artificial intelligence
to increase the accuracy of forecasting book demand. However, sales in the Publishing & Media
Services business decreased from the previous year on declines for both books and magazines.
In the Education and Publications Distribution business, sales of e-books were favorable as the
DNP Group focused on expanding business in the “honto” hybrid bookstore network thatcombines physical bookstores, online bookstores, and e-book services. Sales in library
operations outsourcing services also rose from the previous year on an increase in the numberof contracting libraries. However, overall sales in the Education and Publications Distribution
business decreased from the previous year, due partly to the transfer of all stock in subsidiary
SHUFUNOTOMO Co., Ltd. in December 2017. Overall sales in the Publishing business also
decreased year on year.
In the Information Innovation business, sales increased for Information Processing Services(IPS; handling data entry, printing, and shipment of personalized mail and other items) and werealso firm for sales promotion tools, including gift prizes. However, sales decreased foradvertising flyers, catalogs, and other printed media, as well as for smart cards for financial
institutions and electronic money. As a result, overall sales in the Information Innovation
business decreased from the previous year.
In the Imaging Communication business, the DNP Group worked to provide
high-value-added services for consumers to enjoy photo printing, including by launching a newservice to allow consumers to print photos taken with their smartphones at Ki-Re-i ID photobooths installed outside train stations and in other locations. The DNP Group also expanded

2Southeast Asian sales of dye-sublimation thermal transfer printing media for photo printers(color ink ribbons and receiver paper), but sales were sluggish in North America and Europe,and overall sales in the Imaging Communication business decreased from the previous year.
As a result of the above, overall segment sales fell 2.5% year on year to ¥189.3 billion, but
operating income grew 21.4% to ¥6.1 billion.
Lifestyle and Industrial Supplies
In the Packaging business, the DNP Group worked to develop and sell products that help solve
social issues, including a new spout for paper container for liquid that opens the cap and innerplug at the same time, and a rectangular “Beaubel Cup” as an in-mold label plastic containerthat could potentially replace cans by enabling long-term food preservation and heating in a
microwave oven. Additionally, the DNP Group established a joint venture in Japan with Swisscompany SIG Combibloc Group, the world’s leading manufacturer of carton packaging for foodand beverages, in April 2018, and started providing new configurations of paper packaging andfilling systems that enable the filling of solid material. As a result, sales increased for plastic
molded products and film packaging. However, sales decreased for paper packaging and PETplastic bottle aseptic filling systems, and overall sales in the Packaging business decreased
from the previous year.
In the Living Space business, the DNP Group focused on sales of environmentally conscious
products that use its proprietary electronic beam (EB) coating technology, as well as Arttec
printed interior and exterior aluminum panels, which can be made to order to express a variety
of designs, tones, and textures, including natural materials and abstract objects, and can beused in non-housing applications such as commercial facilities, offices, automobiles, andrailway cars. However, overall sales in the Living Space business decreased from the previous
year mainly because new housing starts in Japan decreased year on year for nine consecutive
months, from July 2017, and demand for residential interior materials lowered.
In the Industrial Supplies business, sales of photovoltaic module components decreased
both in Japan and overseas, but lithium-ion battery components were favorable for both mobile
and automotive applications, and overall sales in this business increased from the previous
year.
As a result of the above, overall segment sales grew 0.2% year on year to ¥93.9 billion but
operating income fell 48.9% to ¥1.3 billion.
Electronics
In the Display Components business, optical film sales increased for use in organic
light-emitting diode (OLED) displays, and were firm for use in LCDs due to larger screen sizes.
Meanwhile, sales decreased for LCD color filters, but increased for metal masks used in the
production of OLED displays for smartphones. Overall sales in the Display Components
business increased from the previous year.
In the Electronic Devices business, semiconductor photomask sales increased as thesemiconductor market continued to grow, supported by an increase in installed memory
capacity in smartphones and other devices and by the spread of IoT equipment.
As a result of the above, overall segment sales grew 10.0% year on year to ¥49.3 billion andoperating income grew 55.9% to ¥9.8 billion.
[BEVERAGES]
Beverages
The soft drink industry faced ongoing tough competition for market share, reflecting heavy
spending on sales promotions and capital expenditures to achieve growth. In this environment,
the DNP Group released new products in core brands and worked to expand share in existing
markets and acquire new customers by leveraging area marketing and operational expertise in
the vending machine business.
As a result of these efforts, sales increased for the mainstay Coca-Cola brand, the Fanta
brand, and unsweetened tea drinks including Ayataka. However, sales decreased for coffee

3

drinks and to group bottlers outside the Hokkaido region. Overall segment sales fell 2.8% year
on year to ¥11.8 billion while operating income rose 312.7% to ¥0.3 billion.
(2) Explanation of the consolidated financial position
Total assets at the end of the first quarter decreased by ¥4.1 billion from the end of the previous
fiscal year to ¥1,790.6 billion, due mainly to a decrease in notes and trade receivables.
Total liabilities decreased by ¥23.3 billion from the end of the previous fiscal year to ¥668.8
billion, due mainly to decreases in short-term bank loans and reserve for bonuses.
Net assets increased by ¥19.2 billion from the end of the previous fiscal year to ¥1,121.7
billion, due mainly to an increase in valuation difference on available-for-sale securities.
As a result of the above, the equity ratio rose from 58.7% at the end of the previous fiscal
year to 59.9%.
(3) Explanation of the consolidated earnings forecasts
Our earnings forecasts for the fiscal year ending March 2019 are unchanged from the forecasts
announced on May 11, 2018.

4

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

As of March 31, 2018

As of June 30, 2018ASSETS
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

242,781354,241
82,697
31,672
23,17847,159(1,690)234,205
334,453
85,35631,141
22,45347,021(1,573)

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

780,039753,058

199,31080,702
151,521
7,160
35,703474,397

196,540
78,128151,219
7,252
34,540467,682

32,85332,85332,08732,087401,414
109,691(3,632)507,472
1,014,724
1,794,764

431,832
109,529(3,556)537,805
1,037,575
1,790,6345

(Million yen)

As of March 31, 2018

As of June 30, 2018

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

248,993
44,794

247,106
32,765Reserve for bonuses

17,1286,464

Repair reserve

29,58024,650Other

98,051

96,099Total current liabilities

438,548

407,086

Bonds

108,600

110,455

Long-term debt

10,127

9,987

Repair reserve

7,543

5,697

Net defined benefit liability

35,21634,163

Deferred tax liabilities

64,98375,623

Other

27,19325,869Total long-term liabilities

253,664

261,796692,213668,882

Common stock

114,464

114,464

Capital surplus

144,264

144,174Retained earnings

681,976

682,416

Treasury stock(62,908)(62,909)

Total stockholders’ equity

877,797

878,145

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

168,155

189,436(3)6Foreign currency translation adjustments

1,410(2,373)Remeasurements of defined benefit plans
Total accumulated other comprehensive
income

6,241

6,515

175,803

193,584

48,95050,021TOTAL NET ASSETS

1,102,550

1,121,751

TOTAL LIABILITIES AND NET ASSETS

1,794,764

1,790,634

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity

Non-controlling interests6(2) Quarterly consolidated statements of income and quarterly consolidated statementsof comprehensive income
Quarterly consolidated statements of income
First three months of the fiscal years(Million yen)Three months ended
June 30, 2017

Three months ended
June 30, 2018

Net sales

343,721342,969

Cost of sales

277,924

274,073

Gross profit

65,796

68,895

Selling, general and administrative expenses

57,562

56,940Operating income

8,233

11,955

3,278
1,567
1,086
5,932

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

564
273
1,528
2,365

538
572
1,037
2,147

11,80015,198

3,229
–
797
4,027

62
2,023
40
2,127

667
109
87
865

762
430
73
1,266

14,962

16,059

2,045
3,942
5,988
8,973

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

1,335

1,377

7,638

10,139Non-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 investment securities
Gain on sale of stock in affiliates
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Loss on devaluation of investment securities
Other
Total extraordinary losses
Income before income taxes and non-controllinginterests
Current income taxes
Deferred income taxes
Total income taxes
Net income
Net income attributable to non-controllingshareholders
Net income attributable to parent company
shareholders

7

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

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

8

Three months ended
June 30, 2017

Three months ended
June 30, 2018

8,973

11,517

8,084

21,37317(1,037)(337)

14(4,149)
340

1,281

(44)

8,007
16,981

17,53429,051

15,792
1,188

27,921
1,129

(3) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
None[Additional information]
DNP is applying the “Partial Amendments to Accounting Standard for Tax Effect Accounting”(ASBJ Statement No. 28, February 16, 2018) starting in the first quarter of the current fiscal year,
and is listing deferred tax assets under investments and other assets and deferred tax liabilities
under long-term liabilities.

[Segment information, etc.]
I. First three months of previous fiscal year (April 1, 2017 – June 30, 2017)
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

193,450

93,253

44,832

12,184

343,721–343,721

Inter-segment

815

511

8

2

1,337

(1,337)–

Total

194,266

93,76444,84012,186

345,058(1,337)343,721

Segment income

5,029

2,633

6,331

74

14,069(5,835)8,233

Beverages

Total

Net sales
Outside customers

Notes:

1.
2.

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

II. First three months of current fiscal year (April 1, 2018 – June 30, 2018)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

188,230

93,56349,334Beverages

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

11,841

342,969–

342,969

Inter-segment

1,124

380

–

2

1,506

(1,506)–

Total

189,354

93,94349,334

11,844344,476(1,506)

342,969

6,103

1,345

9,869

308

17,627(5,672)

11,955

Segment income

Notes:

1.
2.

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

9