Dai Nippon Printing : Consolidated Financial Results for the Fiscal Year Ended March 31, 2022(PDF 793 KB)

Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 [J-GAAP]

May 13, 2022

Company Name:

Dai Nippon Printing Co., Ltd.

Stock exchange listing:

Tokyo

Stock code:

7912

URL: http://www.dnp.co.jp/eng/

Representative:

Yoshinari Kitajima, President

Contact person:

Naoki Wakabayashi, General Manager, IR and Public Relations Division

Telephone:

[phone]

General meeting of shareholders:

June 29, 2022

Dividend payment date:

June 30, 2022

Securities report issuing date:

June 29, 2022

Preparation of earnings presentation material: Yes

Holding of earnings announcement:

Yes (for institutional investors and analysts)

*Amounts under one million yen have been rounded down.

1. Consolidated financial results for the year ended March 31, 2022

(April 1, 2021 - March 31, 2022)

(1) Consolidated financial results

(Percentages show change from corresponding year-ago period.)

Net Income

Net Sales

Operating Income

Ordinary Income

Attributable to

Parent Company

Shareholders

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Year ended March 31, 2022

1,344,147

0.7

66,788

34.8

81,249

35.6

97,182

287.4

Year ended March 31, 2021

1,335,439

(4.7)

49,529

(12.0)

59,907

(6.1)

25,088

(63.9)

Note: Comprehensive income: Year ended March 31, 2022: ¥103,770 million (-30.0%)

Year ended March 31, 2021: ¥148,228 million (-%)

			Net Income		Diluted Net				Ordinary	Operating
				Income		ROE		Income to	Income to
			per Share
				per Share				Total Assets	Net Sales
			Yen		Yen	%	%		%
	Year ended March 31, 2022	355.84	355.79	9.1	4.4		5.0
	Year ended March 31, 2021		89.32		89.28		2.6		3.4		3.7

Reference: Equity in earnings of affiliates: Year ended March 31, 2022: ¥8,686 million Year ended March 31, 2021: ¥6,742 million

Note: Year-on-year change in comprehensive income for year ended March 31, 2021 exceeded 1,000% and is therefore shown as "-."

(2) Consolidated financial position

			Total Assets		Net Assets		Equity Ratio	Net Assets
					per Share
			Million yen		Million yen	%		Yen
	As of March 31, 2022	1,876,647	1,148,413	58.2		4,057.98
	As of March 31, 2021		1,825,019		1,098,613		57.2		3,716.85
	Reference: Stockholders' equity: As of March 31, 2022: ¥1,091,861 million		As of March 31, 2021: ¥1,043,977 million

(3) Consolidated cash flows

			Cash Flows from		Cash Flows from		Cash Flows from		Cash and Cash
						Equivalents
			Operating Activities		Investing Activities		Financing Activities
						at End of the Year
			Million yen		Million yen		Million yen		Million yen
	Year ended March 31, 2022	82,028	(39,208)	(57,751)	293,361
	Year ended March 31, 2021		61,681		(56,284)		(78,268)		304,223

2. Dividends

		Dividends per Share			Dividend	Dividends to
						Total Dividends	Net Assets
	First	Second	Third			Payout Ratio
	Year-end	Annual	(Annual)	Ratio
	(Consolidated)
	Quarter-end	Quarter-end	Quarter-end
				(Consolidated)
	Yen	Yen	Yen	Yen	Yen	Million yen	%	%

Year ended March 31, 2021 Year ended March 31, 2022

Year ending March 31, 2023 (Forecast)

-	32.00		-	32.00	64.00	17,976	71.7	1.8
-	32.00		-	32.00	64.00	17,265	18.0	1.6
-		32.00		-		32.00		64.00		25.7

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 Sales			Operating Income		Ordinary Income		Attributable to		Net Income
							Parent Company		per Share
															Shareholders
	Full year		Million yen	%		Million yen	%		Million yen	%		Million yen	%		Yen
		1,380,000		2.7		67,000		0.3		81,500		0.3		67,000		(31.1)		249.01

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in a change in the scope of consolidation): No
2. Changes in accounting policies, changes in accounting estimates, and restatement of revisions
3. 1. Changes in accounting policies with revision of accounting standards: Yes

2)	Changes in accounting policies other than the 1) above:	No
3)	Changes in accounting estimates:	Yes
4)	Restatement of revisions:	No

Note: For more information, see the section titled, "5. Consolidated financial statements and key notes (5) Notes regarding consolidated financial statements [Changes in accounting policies]," on page 27 and "5. Consolidated financial statements and key notes (5) Notes regarding consolidated financial statements [Changes in accounting estimates]," on page 29.

(3) 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

As of March 31,	317,240,346	As of March 31,	324,240,346
2022	shares	2021	shares
As of March 31,	48,175,114	As of March 31,	43,363,670
2022	shares	2021	shares
Year ended	273,105,088	Year ended	280,879,143
March 31, 2022	shares	March 31, 2021	shares

(Reference) Non-consolidated financial results

Non-consolidated financial results for the year ended March 31, 2022 (April 1, 2021 - March 31, 2022)

(1) Non-consolidated financial results

(Percentages show change from corresponding year-ago period.)

						Net Sales		Operating		Ordinary Income		Net Income
							Income (Loss)
						Million yen	%		Million yen	%		Million yen	%		Million yen	%
	Year ended March 31, 2022	934,186	1.0	6,693		-	61,999	123.7	87,029		588.3
	Year ended March 31, 2021			925,259		(6.1)		(1,155)		-		27,709		80.4		12,644		(57.9)
						Net Income		Diluted Net Income
						per Share		per Share
								Yen				Yen
	Year ended March 31, 2022				318.65				-
	Year ended March 31, 2021						45.02				-
	(2) Non-consolidated financial position
						Total Assets		Net Assets		Equity Ratio		Net Assets
									per Share
							Million yen			Million yen			%				Yen
	As of March 31, 2022	1,420,458			676,890			47.7				2,515.61
	As of March 31, 2021			1,417,801			646,612			45.6				2,302.03

Reference: Stockholders' equity: As of March 31, 2022: ¥676,890 million As of March 31, 2021: ¥646,612 million

• 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. Overview of operating results, etc., (4) Forecasts," on pages 5-7.

DNP will hold a briefing (conference call) for institutional investors and analysts regarding its financial results on May 17, 2022. Materials used at the briefing will be uploaded to the DNP website at around 14:00 JST the same day.

Contents
1. Overview of operating results, etc...........................................................................................................	2
(1)	Overview of operating results for the year ended March 31, 2022 ...................................................	2
(2)	Overview of financial position for the year ended March 31, 2022 ...................................................	4
(3)	Overview of cash flows for the year ended March 31, 2022 .............................................................	5
(4) Forecasts ...........................................................................................................................................	5
(5)	Basic policies regarding the allocation of profits and dividends for the year ended March 31, 2022
	and year ending March 31, 2023 ......................................................................................................	7
2. Information on the DNP Group ...............................................................................................................	7
3. Management policies ............................................................................................................................	12
(1)	Core policies....................................................................................................................................	12
(2)	Management targets .......................................................................................................................	12
(3)	Medium- and long-term management strategy ...............................................................................	12
4. Basic approach to selecting accounting standards...............................................................................	14
5. Consolidated financial statements and key notes.................................................................................	15
(1)	Consolidated balance sheets ..........................................................................................................	15
(2)	Consolidated statements of income and comprehensive income...................................................	17
(3)	Consolidated statements of changes in net assets.........................................................................	19
(4)	Consolidated statements of cash flows...........................................................................................	22
(5)	Notes regarding consolidated financial statements ........................................................................	24
	[Notes on premise of a going concern]...........................................................................................	24
	[Basis of presenting consolidated financial statements].................................................................	24
	[Changes in accounting policies] ....................................................................................................	27
	[Changes in accounting estimates].................................................................................................	29
	[Additional information] ...................................................................................................................	29
	[Consolidated balance sheets] .......................................................................................................	29
	[Consolidated statements of income] .............................................................................................	29
	[Consolidated statements of changes in net assets] ......................................................................	30
	[Segment information, etc.].............................................................................................................	32
	[Per share information] ...................................................................................................................	36
	[Significant subsequent events]......................................................................................................	37
6. Non-consolidated financial statements and key notes .........................................................................	38
(1)	Non-consolidated balance sheets ...................................................................................................	38
(2)	Non-consolidated statements of income .........................................................................................	40
(3)	Non-consolidated statements of changes in net assets..................................................................	41
(4)	Notes regarding non-consolidated financial statements .................................................................	42
	[Notes on premise of a going concern]...........................................................................................	42

-1-

1. Overview of operating results, etc.

(1) Overview of operating results for the year ended March 31, 2022

Business conditions surrounding the DNP Group during the fiscal year ended March 2022 continued to be affected by the novel coronavirus (hereafter, COVID-19), but due to increased administration of vaccines and other factors, there was a gradual resumption of economic activity. In Japan, working styles and lifestyles continued to change, and demand related to distance learning, online medical care, and 5th generation mobile communication systems (5G) expanded even further. In addition, as efforts to prevent global warming and reduce pressure on the environment spread worldwide, there is a growing need for eco-friendly products and services that will lead to the construction of a carbon-free society and a circular economy. On the other hand, the second half of the period saw increasing impact from such factors as geopolitical risks including the situation in Ukraine, further increases in raw material prices, and the prolonged shortage of semiconductors, extending into the fiscal year through March 2023.

Amid these conditions, the DNP Group worked to create new value that meets people's expectations, and to resolve social issues in order to realize a better, more sustainable society and enable more comfortable lifestyles. The DNP Group has always aspired to contribute to society and to enrich people's lives, and expresses that desire through its brand statement: "Today's innovation is tomorrow's basic." By combining the strengths of our unique "P&I" (printing and information) technologies, deepening cooperation with our many partners, and providing the types of value that are needed by individuals and society, we strive to express our raison d'être as a company that people cannot live without.

In the fiscal year through March 2022, we designated four "focus businesses" where we anticipate strong market growth and high profitability: the Internet of Things (IoT)/next-generation communications, data distribution, mobility, and environment. We focused and optimized our management resource allocation in order to expand our business in these areas.

Regarding IoT/next-generation communication, we moved ahead with the development and supply of next-generation semiconductor products that use nanoimprint lithography to support 5G communication. This technology saves energy and reduces costs in semiconductor manufacturing, thereby contributing to the realization of a carbon-free society.

Regarding data distribution, we established NTT EDX Co., Ltd. in October 2021, as joint investors with Nippon Telegraph and Telephone West Corp. (NTT West) and Nippon Telegraph and Telephone East Corp. (NTT East), in order to advance higher education. With a focus on electronic textbooks and other teaching materials, we provide various services aimed at solving problems in higher education and supporting the digitization and increased efficiency of publisher and bookstore operations. In addition, we use our Ki-Re-i photo ID kiosks to provide an online application service for acquiring Japanese government "My Number" ID cards. We also promote the digital transformation (DX) of governmental services, and enable contactless application for such services, which suits people's new lifestyles.

In the mobility sector, the DNP Group worked to develop products and services to support a society that uses "next-generation transportation," which requires reduced environmental impact, higher energy efficiency, greater information security, and high degrees of safety and comfort. For example, we have developed and supplied battery pouches for lithium-ion batteries used in electric vehicles (EVs), and decorative films and panels that enhance the design and function of interior and exterior materials.

To protect the environment, we invested more in the development of mono-material packaging materials, which are easier to recycle because they are made of a single type of plastic material.

-2-