Consolidated Financial Results
for the First Six Months of the Fiscal Year Ending March 31, 2023 [J-GAAP]
November 11, 2022

Company Name:
Stock exchange listing:Stock code:
Representative:
Contact person:

Dai Nippon Printing Co., Ltd.
Tokyo
7912
URL: http://www.dnp.co.jp/eng/
Yoshinari Kitajima, President
Naoki Wakabayashi,
General Manager, IR and Public Relations Division
Telephone:+81-3-6735-0124
Securities report issuing date:November 11, 2022
Dividend payment date:
December 9, 2022
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, 2022
(April 1, 2022 – September 30, 2022)(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, 2022
Six months ended
September 30, 2021

Million yen%

Million yen%

Million yen%

Million yen%

668,482

1.7

27,591(10.5)

36,7040.8

27,933(17.4)

657,168

1.9

30,831

75.5

36,42367.1

33,812

195.7

Note: Comprehensive income: For the first six months ended September 30, 2022: ¥5,747 million (-92.9%)
For the first six months ended September 30, 2021: ¥80,621 million (40.5%)
Diluted Net Income
per Share

Net Income per ShareSix months ended
September 30, 2022
Six months ended
September 30, 2021

Yen

Yen

104.19104.17122.26122.23(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of September 30, 2022

1,815,226

1,137,624

59.4

As of March 31, 2022

1,876,647

1,148,413

58.2

Note: Stockholders’ equity: As of September 30, 2022: ¥1,078,111 million

As of March 31, 2022: ¥1,091,861 million

2. Dividends
Annual Dividends (Yen)First Quarterend

Year ended
March 31, 2022
Year ending
March 31, 2023

Second Quarter- Third Quarterend
end

–

32.00

–

32.00

Year-end

–

Total

32.00

64.00

Year ending March 31, 2023–
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, 2023
(April 1, 2022 – March 31, 2023)(Percentages show change from corresponding year-ago period.)
Net Income
Net
Attributable toOperating Income
Ordinary Income
IncomeParent Company
per Share
Shareholders

Net Sales

Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

1,380,000

2.7

67,0000.3

81,5000.3

67,000(31.1)

250.52

Note: Revisions to the most recently announced earnings forecasts during the second quarter: No

Other information(1) Changes in significant subsidiaries during the second quarter (changes in specified subsidiaries
resulting in change of scope of consolidation): No(2) Application of accounting procedures peculiar to quarterly consolidated financial statement
preparation: No(3) Changes in accounting policies, changes in accounting estimates, and restatement of revisions
1) Changes in accounting policies with revision of accounting standards: No
2) Changes in accounting policies other than the 1) above:No3) Changes in accounting estimates:
No4) Restatement of revisions:No(4) Number of common shares issued and outstanding
1) Number of common shares
outstanding at end of each period(including treasury shares)
2) Number of treasury shares at
end of each period
3) Average number of shares
outstanding during the period(cumulative from the start of the
fiscal year)

As of September 30,
2022

317,240,346
shares

As of March 31, 2022

317,240,346
shares

As of September 30,
2022

50,546,023
shares

As of March 31, 2022

48,175,114
sharesSix months ended
September 30, 2022

268,094,803
sharesSix months ended
September 30, 2021

276,566,978
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 and otherprojections,” on page 4.
The DNP Group will hold a results briefing (conference call) for institutional investors and analysts on
November 16, 2022. Materials used at the briefing will be uploaded to the DNP website at around 14:00
JST the same day.

Contents
1. Qualitative information on the consolidated results for the second quarter ..................2(1) Explanation of the consolidated financial results ........................................................2(2) Explanation of the consolidated financial position ......................................................4(3) Explanation of the consolidated earnings forecasts and other projections ..............4
2. Quarterly consolidated financial statements and key notes ............................................5(1) Quarterly consolidated balance sheets ........................................................................5(2) Quarterly consolidated statements of income and quarterly consolidated
statements of comprehensive income..........................................................................7
Quarterly consolidated statements of income
First six months of the fiscal years ...........................................................................7
Quarterly consolidated statements of comprehensive income
First six months of the fiscal years ...........................................................................8(3) Quarterly consolidated statements of cash flows........................................................9(4) Notes regarding quarterly consolidated financial statements .................................. 11[Notes on premise of a going concern] ...................................................................... 11[Significant changes in shareholders’ equity] ............................................................ 11[Segment information] ................................................................................................. 11－1－

1. Qualitative information on the consolidated results for the second quarter(1) Explanation of the consolidated financial results
Business conditions surrounding the DNP Group in Japan during the first six months of the fiscal
year ending March 2023 were marked by progress in pursuing economic activity alongsidemeasures to prevent the spread of the novel coronavirus disease (hereafter COVID-19), as well
as by continued decline in business confidence in the manufacturing sector due to factors likerising raw material costs. Many areas outside Japan were also affected by inflation and ensuingmonetary tightening, causing their economies to show signs of slowdown. The outlook for the
future is expected to become even more uncertain due to expectations for price hikes on many
goods sold in Japan, in addition to the geopolitical risks posed by the situation in Ukraine andthe prospect of prolonged inflation.
Rather than simply responding to these changes, the DNP Group strives to realize a better,more sustainable society and more fulfilling lifestyles by taking the initiative to institute reforms.
By combining our unique strengths in printing and information (P&I) and forming deeper allianceswith our many partners, we are working to resolve social issues and create the kind of innovativevalue that meets people’s expectations. In particular, we designated businesses related to areas
where we anticipate strong market growth and high profitability--the Internet of Things (IoT) andnext-generation communications, data distribution, mobility, and the environment--to be “focus
businesses” in which we concentrate and optimally allocate management resources. We are also
working on structural reforms to enhance our competitiveness, and building a strong businessportfolio.
As a result of these efforts, consolidated net sales for the first six months grew 1.7% year on
year to ¥668.4 billion, consolidated operating income fell 10.5% to ¥27.5 billion, consolidated
ordinary income grew 0.8% to ¥36.7 billion, and net income attributable to parent company
shareholders fell 17.4% to ¥27.9 billion.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Information Innovation business, sales of flyers and pamphlets decreased, but demand
increased for IC cards issued by financial institutions and for “My Number” ID cards issued by
the Japanese government, resulting in increased sales for the business as a whole.
In the Imaging Communication business, sales rose thanks to solid demand for materials andservices related to photo shooting and printing, in European and Asian markets as well as in themainstay U.S. market.
In the Publishing business, sales decreased due to declines in printing orders for magazinesand other paper media, and in sales by DNP’s “honto” hybrid bookstore network, which handles
both paper and electronic media and experienced an adjustment from the previous year’s surge
in stay-at-home demand.
As a result of the above, overall segment sales grew 2.7% year on year to ¥347.8 billion, but
operating income fell 4.0% to ¥9.4 billion due mainly to higher raw material prices.
Lifestyle and Industrial Supplies
In the Packaging business, we leveraged the strengths that we developed through making
packages for everyday items like foods and household goods, and reinforced our efforts aimed
at designing more comfortable lifestyles for people. This combined with other endeavors, suchas efforts to develop and sell DNPʼs eco-friendly “GREEN PACKAGING,” resulted in solid salesof film packaging and an increase in net sales.
In the Living Spaces business, sales of interior and exterior decorative materials for residential
use grew, as did sales of decorative films for automobile interiors and printed aluminum panels
for interior and exterior use in the North American market. Overall Living Spaces sales increased.
In the Industrial High-performance Materials business, demand for lithium-ion battery－2－pouches for automotive applications increased as the auto production adjustments that had
resulted from global shortage of semiconductors ran their course, but demand for IT applications
slumped in the mainstay Chinese market. Due to this and other factors, sales for the businessas a whole declined.
As a result of the above, segment sales grew 0.8% year on year to ¥192.7 billion but operating
income fell 66.8% to ¥2.7 billion due to the significant impact of sharply higher raw material andenergy prices.
Electronics
The Display Components business was affected by an inflation-induced worldwide slump in
consumer spending in addition to the natural drop following the previous year’s boost from stayat-home demand. With sales of products like smartphones and notebook PCs on the decline,
demand for optical films and metal masks used for making organic light-emitting diode (OLED)
displays also fell, and overall sales decreased.
In the Electronic Devices business, some lead frames (components used in semiconductor
packages) were affected by client companies’ inventory adjustments, but demand forphotomasks used for making semiconductors remained strong, driven by demand forcommunications and data center, and automotive applications. Overall, Electronic Devices sales
increased.
As a result of the above, overall segment sales fell 0.8% year on year to ¥104.4 billion but
operating income grew 8.7% year on year to ¥25.7 billion due to the increase in sales in theElectronic Devices business.
[BEVERAGES]
Beverages
In response to soaring raw material prices and other cost increases, we revised the price of ourlarge PET plastic bottles. In addition, for the first time since we launched “I LOHAS” brand mineralwater 13 years ago in 2009, we updated the container to make it even more environmentallyfriendly and pleasant to use. The new product was first released in Hokkaido. Another area of
focus was a Hokkaido-only sales campaign conducted via the “CokeON” smartphone app.
Overall segment sales rose 5.9% from a year earlier to ¥24.3 billion, thanks to a recovery inconvenience store sales on top of strong performances online and via supermarkets. Despite
the impact of soaring prices of raw materials and energy, operating income amounted to ¥0.1
billion, up 89.2% year on year, helped by controls on sales promotion expenses and othermeasures aimed at boosting profitability, in addition to increased sales.
Over the past several years, the DNP Group has formulated policies like the “DNP Group
Declaration on Health,” “DNP Group Diversity Declaration,” and “DNP Group Safety and HealthCharter” to enable all employees to fully express their capabilities. We are also concentrating on
rebuilding various personnel systems. These measures are based on our belief that respecting
employees leads to the respected employees driving corporate growth and enriching society. In
the fiscal year through March 2023, we positioned this conviction as our “universal and basic
approach to human resources” and established it as our Human Capital Policy. We intend tocontinue building our human capital through active and specific investment in people, with afocus on those employees who are our most important strength as we create new value.
Regarding human rights and labor, which have become particularly important in recent years,
the DNP Group Code of Conduct calls for “respect for human dignity and diversity” and requires
all of our employees to respect the inherent diversity of all kinds of people and behave in a
disciplined manner. In 2020, we formulated the DNP Group Human Rights Policy based on
documents like the International Bill of Human Rights and the International Labor Organization’s(ILO’s) Declaration on Fundamental Principles and Rights at Work. Through these and similar
efforts, we will continue to reinforce initiatives aimed at respecting human rights throughout the
DNP Group, both in Japan and overseas.

－3－

(2) Explanation of the consolidated financial position
Total assets as of the end of the second quarter decreased by ¥61.4 billion from the end of theprevious fiscal year to ¥1,815.2 billion due mainly to a decline in investment securities.
Total liabilities declined by ¥50.6 billion from the end of the previous fiscal year to ¥677.6
billion, mainly due to a decrease in deferred tax liabilities.
Net assets decreased by ¥10.7 billion from the end of the previous fiscal year to ¥1,137.6
billion due mainly to a decrease in the valuation difference on available-for-sale securities.
Cash and cash equivalents at the end of the first six months of the fiscal year decreased by¥27.6 billion from the end of the previous fiscal year to ¥265.6 billion.
Cash flows from operating activities resulted in income of ¥25.9 billion (versus ¥49.6 billion in
the same period of the previous year), mostly due to ¥39.4 billion in income before income taxes
and non-controlling interests and ¥24.3 billion of depreciation.
Cash flows from investing activities resulted in an outlay of ¥29.6 billion (versus ¥30.2 billion
in the same period of the previous year), largely due to the expenditure of ¥28.2 billion for theacquisition of property, plant and equipment.
Cash flows from financing activities resulted in an outlay of ¥29.3 billion (versus ¥49.3 billion
in the same period of the previous year) due to such factors as a net decrease of ¥9.6 billion in
short-term bank loans, the expenditure of ¥7.1 billion for the acquisition of treasury shares, anddividend payments of ¥8.6 billion.
(3) Explanation of the consolidated earnings forecasts and other projections
Our earnings forecasts for the fiscal year ending March 2023 are unchanged from the forecasts
announced on May 13, 2022.

－4－

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

As of March 31, 2022

As of September 30,
2022

ASSETS
Current assets
Cash and time deposits
Notes, trade receivables, and contract
assetsMarketable securities
Merchandise and finished products
Work in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures, net
Machinery and equipment, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible fixed assets
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS－5－

287,334

255,156

324,846

315,894

17,90080,38530,98030,25533,804(693)
804,81322,30084,86635,17835,711
27,334(689)
775,751

160,506
70,830139,573
25,64025,325421,875

161,422
69,152
139,641
33,97924,687
428,883

27,747
27,747

29,69429,694410,266
213,902(1,957)622,210
1,071,834
1,876,647

364,150
218,666(1,918)580,897
1,039,475
1,815,226

(Million yen)

As of March 31, 2022

As of September 30,
2022

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

236,188
33,990222,762
24,317

Reserve for bonuses

20,367

19,983

Repair reserve

17,252

17,797

Other

98,30895,438

Total current liabilities

406,108

380,299

Bonds

102,500

100,500

Long-term debt

14,254

13,066

Repair reserve

28,03624,045Net defined benefit liability

55,88856,782

Deferred tax liabilities

102,275

85,034Other

19,17017,873

Total long-term liabilities

322,125

297,302728,233

677,601

Common stock

114,464

114,464

Capital surplus

145,143

145,156

Retained earnings

740,183

759,040

Treasury stock(133,123)(140,088)

Total stockholders’ equity

866,667

878,572

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

192,994

157,90345

70

Foreign currency translation adjustments

4,220

16,551Remeasurements of defined benefit plans
Total accumulated other comprehensive
income27,93225,013

225,193

199,538

Non-controlling interests

56,55259,512TOTAL NET ASSETS

1,148,413

1,137,624

TOTAL LIABILITIES AND NET ASSETS

1,876,647

1,815,226

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity－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, 2021
657,168

Six months ended
September 30, 2022
668,482

Cost of sales

513,517525,634

Gross profit

143,650

142,847

Selling, general and administrative expenses

112,819

115,256

Operating income

30,831

27,591

2,379
3,906
1,996
8,283

2,620
6,028
3,179
11,828

369
591
1,729
2,691

341
713
1,660
2,715

36,42336,704

5,711
–
2,030
7,741

1,156
2，267
429
3,853

800
–
349
1,149

452
256
447
1,156

43,01639,401

8,042
(14)
8,028
34,987

8,817
(33)
8,784
30,617

1,175

2,683

33,812

27,933

Net sales

Non-operating income
Interest and dividend income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expense
Interest expense
Contributions
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gains on sale of fixed assets
Gains on forgiveness of debts
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Impairment loss
Other
Total extraordinary losses
Income before income taxes and non-controllinginterests
Current income taxes
Deferred income taxes
Total income taxes
Net income
Net income attributable to non-controllingshareholders
Net income attributable to parent company
shareholders－7－

Quarterly consolidated statements of comprehensive income
First six months of the fiscal years(Million yen)Six months ended
September 30, 2021
Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains (losses) on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of affiliates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Attributable to：Parent company shareholders
Non-controlling shareholders－8－

Six months ended
September 30, 2022

34,98730,61742,582(34,874)(7)
4,144(2,981)

25
10,419(3,189)

1,896

2,749

45,63480,621(24,869)
5,747

79,176
1,445

2,278
3,468

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

Cash flows from operating activities
Income before income taxes and non-controllinginterests
Depreciation
Impairment loss
Increase (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) losses on sales of investment securities
Net losses on devaluation of investment securities
Net gains on sales or disposal of fixed assets
Decrease in trade receivables
Increase in inventories
Decrease in trade payables
Gains on forgiveness of debts
Other
Sub-total
Payments for repair costs
Payments for extra retirement payments
Payment of income taxes
Net cash provided by operating activities
Cash flows from investing activities
Net (increase) decrease in time deposits
Payments for purchases of property, plant andequipment
Proceeds from sales of property, plant andequipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments for purchase of intangible fixed assets
Payments for purchase of stock in subsidiaries
resulting in change in scope of consolidation
Interest and dividends received
Other
Net cash used in investing activities－9－

Six months ended
September 30, 2021

Six months ended
September 30, 2022

43,01639,401

24,821–
173(7,299)439(3,906)269(2,379)
369
(153)
149
(4,888)
16,528(11,962)(1,797)–
3,708
57,089(3,800)–(3,594)
49,694

24,347256(66)(8,982)
2,532(6,028)243(2,620)
341
8
179
(692)
12,476(10,926)(15,922)(2,267)
7,737
40,017(3,445)(8)(10,581)
25,981)(1,383)

579(30,587)(28,298)

5,530

333

(1,239)402(5,616)(270)
295(5,831)

(50)

–

3,349
(698)
(30,294)

3,849
(316)
(29,658)(Million yen)

Cash flows from financing activities
Net decrease in short-term bank loans
Proceeds from long-term debt
Repayments of long-term debt
Payments for redemption of bonds
Payments for purchases of treasury stock
Payments for purchases of treasury stock ofsubsidiaries
Interest paid
Dividends paid
Dividends paid to non-controlling interests
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting fromthe merger of non-consolidated subsidiaries
Cash and cash equivalents at end of period－10－

Six months ended
September 30, 2021

Six months ended
September 30, 2022

(10,349)
246(1,318)(85)(26,156)(9,697)1,600(2,148)(25)(7,159)

(61)

(0)

(375)
(8,986)(427)(1,795)(49,309)(342)(8,608)(510)(2,473)(29,365)

2,044

5,360

(27,864)
304,223(27,682)
293,36115–

276,374

265,678

(4) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
Treasury stock increased by ¥6,964 million during the first six months of the fiscal year ending
March 2023, due mainly to share repurchases based on a resolution passed by the Board of
Directors on May 13, 2022.
[Segment information]
I. First six months of previous fiscal year (April 1, 2021 – September 30, 2021)
Information on sales and income/loss by reporting segment and income analysis information
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 Note 3

337,665

191,096

105,376

23,030657,168–

657,168

Inter-segment

1,162

80

–

4

1,247

(1,247)–

Total

338,827

191,177

105,376

23,034

658,416(1,247)657,168

9,794

8,277

23,74164

41,877(11,045)

30,831

Outside customers

Segment income

Notes:

1.
2.
3.

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.
Net sales include both revenue from contracts with customers and other revenue; these are notdisplayed as separate categories because the former accounts for almost the entirety of sales andthe latter is not significant.

II. First six months of current fiscal year (April 1, 2022 – September 30, 2022)
Information on sales and income/loss by reporting segment and income analysis information
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

346,941

192,661

104,483

Beverages

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

Net sales Note 3
Outside customers

24,395

668,482–

668,482

Inter-segment

871

112

–

2

986

(986)

–

Total

347,813

192,774

104,483

24,397

669,469(986)

668,482

9,404

2,745

25,795

121

38,067(10,476)

27,591

Segment income

Notes:

1.
2.
3.

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.
Net sales include both revenue from contracts with customers and other revenue; these are notdisplayed as separate categories because the former accounts for almost the entirety of sales andthe latter is not significant.

－11－