Consolidated Financial Results
for the First Six Months of the Fiscal Year Ending March 31, 2020 [J-GAAP]
November 12, 2019

Company Name:
Dai Nippon Printing Co., Ltd.
Stock exchange listing:Tokyo
Stock code:
7912
URL: https://www.dnp.co.jp/
Representative:
Yoshinari Kitajima, President
Contact person:
Daisuke Sasaki, General Manager, IR and Public Relations
Telephone:+81-3-6735-0101
Securities report issuing date:November 13, 2019
Dividend payment date:
December 10, 2019
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, 2019
(April 1, 2019 – September 30, 2019)(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, 2019
Six months ended
September 30, 2018

Million yen%

Million yen%

Million yen%

Million yen%

694,150

1.3

25,68912.5

29,42013.8

75,495345.9

685,563(0.3)

22,832

34.7

25,84835.3

16,932–

Note: Comprehensive income: For the first six months ended September 30, 2019: ¥33,679 million (-52.9%)
For the first six months ended September 30, 2018: ¥71,539 million (392.0%)
Diluted Net Income
per Share

Net Income per ShareSix months ended
September 30, 2019
Six months ended
September 30, 2018

Yen

Yen

250.28250.26

56.14

56.12

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of September 30, 2019

1,760,412

1,066,943

57.7

As of March 31, 2019

1,775,022

1,046,622

56.1

Note: Stockholders’ equity: As of September 30, 2019: ¥1,015,307 million

As of March 31, 2019: ¥996,162 million

2. Dividends
Annual Dividends (Yen)First Quarterend

Year ended
March 31, 2019Year ending
March 31, 2020

Second Quarter- Third Quarterend
end

–

32.00

–

32.00

Year-end

–

Total

32.00

64.00

Year ending March 31, 2020–
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, 2020
(April 1, 2019 – March 31, 2020)(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

1,416,000
1.0
51,0002.2
58,5000.4
51,000–Note: Revisions to the most recently announced earnings forecasts during the second quarter: No

169.33Full 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: 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. Quarterly consolidated financial statements and key notes, (4)Notes regarding quarterly consolidated financial statements [Changes in accounting policies]” on page 11.

(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,
2019324,240,346
shares

As of March 31, 2019324,240,346
shares

As of September 30,
2019

23,605,443
shares

As of March 31, 201922,420,745
sharesSix months ended
September 30, 2019

301,649,646
sharesSix months ended
September 30, 2018

301,625,513
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 for institutional investors and analysts on November 27, 2019.
Materials used at the briefing will be uploaded to the DNP website as soon as possible after its conclusion.

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[Changes in accounting policies] ................................................................................. 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 2020 reflected market growth for e-books and online advertising, and stronger
consumer-specific digital marketing activities driven by advances in digital technologies such as
artificial intelligence (AI) and the Internet of Things (IoT). Joint efforts by industry, the government,
and academia to promote cashless payments are gathering pace as the Tokyo 2020 Olympic
and Paralympic Games approach. Rising global demand for environmentally conscious products
and services and growing moves to develop businesses targeting a next-generation automotive
society have also allowed the DNP Group to capture new growth opportunities.
In this environment, the DNP Group sought to strengthen its core businesses, focusing on
products and services such as its globally competitive smart cards, battery pouches for lithiumion batteries, in which it has a leading global market share, metal masks used in the productionof organic light-emitting diode (OLED) displays, thermal transfer printing media for photo printers,
and optical film for displays. The DNP Group is also pursuing “P&I innovations” that combine its
strengths in Printing & Information (P&I) to create new value based on its growth areas ofKnowledge and Communication, Food and Healthcare, Lifestyle and Mobility, and Environment
and Energy. The DNP Group continued to pursue these value-creation initiatives during thesecond quarter while working to build a strong business portfolio through selection andconcentration.
As a result of these efforts, the DNP Group’s profitability improved, with a 0.4 percentage
point year-on-year increase in the ratio of operating income to net sales for the first half of the
fiscal year ending March 2020 to 3.7%.
In addition to reviewing its asset holdings, the DNP Group also began on September 12, 2019
to repurchase up to 30.0 million shares (to a maximum value of ¥60.0 billion), with the aim of
improving capital efficiency and returning value to its shareholders.
As a result of the above, consolidated net sales for the first six months grew 1.3% year on
year to ¥694.1 billion, consolidated operating income grew 12.5% to ¥25.6 billion, consolidated
ordinary income grew 13.8% to ¥29.4 billion, and net income attributable to parent company
shareholders grew 345.9% to ¥75.4 billion.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Publishing business, the DNP Group worked to help solve problems within the publishingindustry, drawing on its strengths as the sole corporate group spanning the entire industry supply
chain, from planning and advertising through manufacturing, distribution, and sales. In the
Publications Distribution, e-book sales trends in the “honto” hybrid bookstore network thatcombines physical bookstores, online bookstores, and e-book services were favorable, and thenumber of libraries outsourcing operations increased. As a result, the Publications Distribution
sales remained flat year on year. However, sales of both books and magazines declined in the
Publishing & Media Services due to publishing market weakness. As a result, overall sales in the
Publishing business decreased.
In the Information Innovation business, sales of printed media such as advertising flyers,
pamphlets, and catalogs decreased. However, overall sales increased on greater demand forsmart cards in line with the shift toward cashless payments and steady growth in priority
businesses such as Business Process Outsourcing (BPO). These services handle businessprocesses on behalf of companies seeking to respond to labor shortages and work-style reforms.
In the Imaging Communication business, overall sales increased as sales of thermal transfer
printing media for photo printing grew in all global regions, and the DNP Group promoted “value
creation” business to enhance people’s experiences through photographs.
Operating income in the Information Communication segment rose due to growth in the
Information Innovation and Imaging Communication businesses.
As a result of the above, overall segment sales grew 2.1% year on year to ¥378.9 billion, andoperating income grew 18.7% to ¥12.7 billion.

2

Lifestyle and Industrial Supplies
In the Packaging business, the DNP Group worked to develop and sell environmentally friendly
packaging with the aim of contributing to a recycling-based society and reducing environmental
impact based on three value propositions: sustainably sourced raw materials, lower CO2
emissions, and resource reuse. Sales decreased for paper and film packaging and plastic
molded products but increased for PET plastic bottle aseptic filling systems. As a result, overallsales in the Packaging business increased.
Amid slower growth for housing starts in Japan, the DNP Group worked in its Living Spaces
business on selling high-performance, environmentally conscious products that combine highquality design driven by sophisticated image processing and printing technology withfunctionality derived from its proprietary electron beam (EB) coating technology. As a result,sales in the Living Spaces business remained flat year on year.
In the Industrial Supplies business, sales rose sharply for battery pouches used in automotive
lithium-ion batteries due to the shift toward electric vehicles, and sales of photovoltaic module
components also increased year on year. As a result, overall sales in the Industrial Supplies
business increased.
Operating income in the Lifestyle and Industrial Supplies segment increased due to factors
including sales growth and lower raw material prices in the Industrial Supplies business.
As a result of the above, overall segment sales grew 2.1% year on year to ¥197.1 billion andoperating income grew 45.7% to ¥4.9 billion.
Electronics
In the Display Components business, sales declined for LCD color filters, but increased for metalmasks used in the production of OLED displays due to steady progress with the switch from LCD
displays to OLED displays for smartphones. Similar trends were seen in optical films, with adecline in sales of products used in LCD TVs but an increase in sales of products used in OLED
displays. As a result, overall sales in the Display Components business increased.
In the Electronic Devices business, semiconductor photomask sales declined due to a decline
in semiconductor market conditions. As a result, sales in the Electronic Devices businessdeclined.
Operating income in the Electronics segment decreased due to the decline in sales.
As a result of the above, overall segment sales fell 3.8% year on year to ¥94.5 billion andoperating income fell 5.1% to ¥18.0 billion.
[BEVERAGES]
Beverages
The DNP Group worked to increase its share in existing markets and acquire new customers by
releasing new products in core brands such as Coca-Cola and Aquarius, expanding the vending
machine business, and stepping up sales promotion to mass merchandisers.
However, overall segment sales fell 1.8% year on year to ¥25.7 billion due to an overall decline
in sales volume, and operating income decreased 34.0% to ¥0.6 billion due to higher sales
promotion expenses and other factors.
(2) Explanation of the consolidated financial position
Total assets at the end of the second quarter decreased by ¥14.6 billion from the end of theprevious fiscal year to ¥1,760.4 billion, due mainly to a decrease in investment securities.
Total liabilities decreased by ¥34.9 billion from the end of the previous fiscal year to ¥693.4
billion, due mainly to a decrease in notes and trade payables.
Net assets increased by ¥20.3 billion from the end of the previous fiscal year to ¥1,066.9
billion, due mainly to an increase in retained earnings.
Cash and cash equivalents at the end of the second quarter increased by ¥232.5 billion fromthe end of the previous fiscal year to ¥366.3 billion.
Cash flow provided by operating activities totaled ¥54.1 billion (¥40.6 billion in the second
quarter of the previous fiscal year), due mainly to ¥109.2 billion in income before income taxes
and non-controlling interests and ¥51.3 billion in gains on the sale of investment securities.

3

Cash flow provided by investing activities totaled ¥207.6 billion (cash used of ¥142.7 billion in
the second quarter of the previous fiscal year), due mainly to a ¥133.9 billion net decrease intime deposits and ¥56.1 billion in proceeds from sales of investment securities.
Cash flow used in financing activities totaled ¥28.0 billion (¥26.4 billion in the second quarterof the previous fiscal year), due mainly to a ¥9.2 billion net decrease in short-term bank loansand ¥9.6 billion in dividends paid.
(3) Explanation of the consolidated earnings forecasts
Our earnings forecasts for the fiscal year ending March 2020 are unchanged from the forecasts
announced on May 14, 2019.

4

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

As of March 31, 2019

As of September 30,
2019

ASSETS
Current assets
Cash and time deposits
Notes and trade receivables
Merchandise and finished products
Work in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures, net
Machinery and equipment, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible fixed assets
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS

5

268,046
351,450
79,80930,07423,18748,226(1,515)799,280

366,635
318,15180,80030,662
24,62136,783(1,321)
856,331

183,878
67,514
147,924
11,76030,042
441,120

169,658
65,974
146,546
15,583
28,910426,673

28,91428,91428,56528,565393,104
114,918(2,315)505,707975,742
1,775,022

334,826
116,272(2,256)448,842904,080
1,760,412

(Million yen)

As of March 31, 2019

As of September 30,
2019

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

246,138
42,474

229,646
33,258

Bonds redeemable within 1 year

51,4901,490

Accrued corporate tax

7,448

18,894

Reserve for bonuses

18,145

18,336

Repair reserve

19,162

19,972

Other

82,79676,281

Total current liabilities

467,655

397,880

Bonds

59,610109,465

Long-term debt

10,045

9,129

Repair reserve

70,211

61,144

Net defined benefit liability

34,73335,175

Deferred tax liabilities

65,30060,373

Other

20,845

20,299Total long-term liabilities

260,745

295,587

728,400

693,468

Common stock

114,464

114,464

Capital surplus

144,765

144,766

Retained earnings

626,949

692,784

Treasury stock(62,898)(66,175)

Total stockholders’ equity

823,281885,840

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

170,073

129,462(1)4Foreign currency translation adjustments(2,398)(4,786)

Remeasurements of defined benefit plans
Total accumulated other comprehensive
income

5,208

4,786

172,881

129,467

Non-controlling interests

50,45951,635TOTAL NET ASSETS

1,046,622

1,066,943

TOTAL LIABILITIES AND NET ASSETS

1,775,022

1,760,412

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity6(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, 2018
685,563

Six months ended
September 30, 2019
694,150

Cost of sales

547,973

549,711Gross profit

137,590

144,439

Selling, general and administrative expenses

114,758

118,749

Operating income

22,832

25,689

2,811
1,375
2,834
7,021

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

1,058
902
2,044
4,005

863
1,340
2,486
4,690

25,84829,420

441
79
2,023
7
2,552

29,96351,340–29
81,333

1,383
431
136
1,952

923
469
109
1,502

26,449109,250

6,662
1,106
7,768
18,68018,893
13,20832,102
77,148

1,747

1,652

16,93275,495Net 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
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 six 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 (loss)
Comprehensive income
Attributable to：Parent company shareholders
Non-controlling shareholders

8

Six months ended
September 30, 2018

Six months ended
September 30, 2019

18,68077,14856,010(40,606)

15(3,070)(23)

9(2,168)
(624)

(73)

(78)

52,85871,539(43,468)
33,67970,065
1,473

32,081
1,598

(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
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, 2018

Six months ended
September 30, 2019

26,449109,250

29,084(308)(3,418)347(1,375)881(2,811)
1,058(2,103)449

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

952(29,003)

22,550(1,831)(14,848)
6,408
61,485(13,030)(149)(7,668)40,63733,085(4,658)(13,734)
6,318
69,913(8,255)(335)(7,125)54,196(126,035)

133,990(20,494)(21,547)

1,475

42,486(732)
2,819(4,703)(400)
56,197(4,785)

–

38

4,411
548
(142,710)

3,720(2,043)
207,657(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
Proceeds from payments from non-controllinginterests
Payments for purchases of treasury stock
Payments for purchases of treasury stock ofsubsidiaries
Interest paid
Dividends paid
Dividends paid to non-controlling interests
Payments for purchase of stock in subsidiaries not
resulting in change in scope of consolidation
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
Cash and cash equivalents at end of period10

Six months ended
September 30, 2018

Six months ended
September 30, 2019(11,821)
2,000(2,231)
1,953(2,145)(9,209)1,100(1,368)49,785(50,145)

75

–

(8)

(3,278)(1)(0)(1,062)(9,663)
(372)

(984)
(9,659)
(422)

(89)

–

(3,062)(26,430)(3,846)(28,029)(706)(1,289)(129,210)

232,535

244,936
115,726

133,771366,306

(4) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
The value of treasury stock increased by ¥3,277 million in the first six months of this fiscal year
due to factors including the repurchase of DNP stock decided on by the Board of Directors at a
meeting on September 11, 2019.
[Changes in accounting policies]
The DNP Group’s IFRS-applied subsidiaries have applied IFRS 16 (leases) as of the first quarterof this fiscal year. Accordingly, for lessee’s lease transactions, in principle the Company
recognizes all right-of-use assets and lease obligations and book depreciation expenses fromright-of-use assets and interest expenses from lease obligations.
Of note, the application of the said accounting standards has limited impact on the Company’squarterly financial statements.

[Segment information, etc.]
I. First six months of previous fiscal year (April 1, 2018 – September 30, 2018)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

Beverages

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

Net sales
368,823

192,267

98,28526,186

685,563–685,563Inter-segment

Outside customers

2,287

913

–

6

3,207

(3,207)–

Total

371,111

193,181

98,28526,193688,771(3,207)685,563

10,7803,391

19,064960

34,197(11,364)

22,832

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.

II. First six months of current 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

Beverages

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

Net sales
377,345

196,530

94,57225,701

694,150–

694,150

Inter-segment

Outside customers

1,654

634

–

9

2,298

(2,298)–

Total

378,999

197,165

94,572

25,711

696,449(2,298)694,150

12,798

4,941

18,089633

36,462(10,772)

25,689Segment 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.

11