Consolidated Financial Results
for the First Six Months of the Fiscal Year Ending March 31, 2022 [J-GAAP]
November 12, 2021 | ||
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: | +81-3-6735-0124 | |
Securities report issuing date: | November 12, 2021 | |
Dividend payment date: | December 10, 2021 | |
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, 2021 (April 1, 2021 - September 30, 2021)
(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 | % | ||
Six months ended | 657,168 | 1.9 | 30,831 | 75.5 | 36,423 | 67.1 | 33,812 | 195.7 | |
September 30, 2021 | |||||||||
Six months ended | 644,638 | (7.1) | 17,563 | (31.6) | 21,793 | (25.9) | 11,434 | (84.9) | |
September 30, 2020 | |||||||||
Note: Comprehensive income: For the first six months ended September 30, 2021: ¥80,621 million (40.5%) For the first six months ended September 30, 2020: ¥57,366 million (70.3%)
Net Income per Share | Diluted Net Income | |
per Share | ||
Yen | Yen | |
Six months ended | 122.26 | 122.23 |
September 30, 2021 | ||
Six months ended | 40.71 | 40.54 |
September 30, 2020 | ||
(2) Consolidated financial position
Total Assets | Net Assets | Equity Ratio | ||||||
Million yen | Million yen | % | ||||||
As of September 30, 2021 | 1,857,856 | 1,139,513 | 58.3 | |||||
As of March 31, 2021 | 1,825,019 | 1,098,613 | 57.2 | |||||
Note: Stockholders' equity: As of September 30, 2021: ¥1,083,948 million As of March 31, 2021: ¥1,043,977 million
2. Dividends
Annual Dividends (Yen) | ||||||||||||||
First Quarter- | Second Quarter- | Third Quarter- | Year-end | Total | ||||||||||
end | end | end | ||||||||||||
Year ended | - | 32.00 | - | 32.00 | 64.00 | |||||||||
March 31, 2021 | ||||||||||||||
Year ending | - | 32.00 | ||||||||||||
March 31, 2022 | ||||||||||||||
Year ending March 31, 2022 | - | 32.00 | 64.00 | |||||||||||
(Forecasts) | ||||||||||||||
Note: Revisions to the most recently announced dividend forecasts during the second quarter: No |
3. Consolidated earnings forecasts for the year ending March 31, 2022 (April 1, 2021 - March 31, 2022)
(Percentages show change from corresponding year-ago period.)
Net Income | Net | ||||||||||||||||||
Attributable to | |||||||||||||||||||
Net Sales | Operating Income | Ordinary Income | Income | ||||||||||||||||
Parent Company | |||||||||||||||||||
per Share | |||||||||||||||||||
Shareholders | |||||||||||||||||||
Full year | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||||||||||
1,350,000 | 1.1 | 57,000 | 15.1 | 65,000 | 8.5 | 53,000 | 111.3 | 193.60 | |||||||||||
Note: Revisions to the most recently announced earnings forecasts during the second quarter: No
Other information
- Changes in significant subsidiaries during the second quarter (changes in specified subsidiaries resulting in change of scope of consolidation): No
- Application of accounting procedures peculiar to quarterly consolidated financial statement preparation: No
- Changes in accounting policies, changes in accounting estimates, and restatement of revisions
- 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: | No |
4) | Restatement of revisions: | No |
Note: For more information, 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
- Number of common shares outstanding at end of each period (including treasury shares)
- Number of treasury shares at end of each period
- Average number of shares outstanding during the period (cumulative from the start of the fiscal year)
As of September 30, | 317,240,346 | As of March 31, 2021 | 324,240,346 |
2021 | shares | shares | |
As of September 30, | 46,766,366 | As of March 31, 2021 | 43,363,670 |
2021 | shares | shares | |
Six months ended | 276,566,978 | Six months ended | 280,880,250 |
September 30, 2021 | shares | September 30, 2020 | 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 other projections," on page 4.
The DNP Group will hold a results briefing (conference call) for institutional investors and analysts on November 17, 2021. 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 | |
[Changes in accounting policies]................................................................................ | 11 | |
[Segment information, etc.] ......................................................................................... | 12 | |
[Important subsequent events] ................................................................................... | 13 |
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1. Qualitative information on the consolidated results for the second quarter
(1) Explanation of the consolidated financial results
Conditions surrounding the DNP Group during the second quarter of the fiscal year ending March 2022 were affected by the novel coronavirus (COVID-19), with individuals' lives, society and the economy remaining subject to various restrictions. For example, the state of emergency declared in July and the designation of priority measures for preventing the spread of the disease were extended to the end of September. On the other hand, during the COVID-19 pandemic of the past year and a half, working styles and lifestyles have changed at an accelerated pace, and distance learning and online medical consultations have become more common. Due to these changes and other factors like the introduction of 5th-generation mobile communications (5G), demand for higher performance digital devices has also expanded. In addition, as people around the world are becoming more aware of the need to reduce the burdens that humans place on the global environment, demand for eco-friendly products and services has expanded.
Amid these conditions, the DNP Group worked to create the kind of innovative value that people expect of it, as well as to resolve social issues in order to realize a better, more sustainable society and more comfortable lifestyles. By combining our unique strengths in printing and information (P&I) and forming deeper alliances with our many partners, we worked to build a strong business portfolio. In particular, we designated "focus business" areas where we anticipate strong market growth and high profitability: the Internet of Things (IoT) & next generation communications, data distribution, mobility, and the environment. In addition to prioritizing and optimizing management resources in these focus areas, the DNP Group has taken on structural reforms aimed at boosting competitiveness.
As a result of these efforts, consolidated net sales for the first six months grew 1.9% year on year to ¥657.1 billion, consolidated operating income grew 75.5% to ¥30.8 billion, consolidated ordinary income grew 67.1% to ¥36.4 billion, and net income attributable to parent company shareholders grew 195.7% to ¥33.8 billion.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Information Innovation business, a recovery in areas such as catalogs and direct mail promotions was offset by a decline in large Business Process Outsourcing (BPO) projects and a pause in growth in demand for smart cards, particularly, Japan's social security and tax number ("My Number") cards. As a result, overall sales in the Information Innovation business declined.
In the Imaging Communication business, sales increased due to a recovery in demand for photo shooting and printing materials and services in US, the core market of this business, driven by progress with the COVID-19 vaccine rollout.
In the Publishing business, e-book sales remained firm, and sales increased in the "honto" hybrid bookstore network, which handles both printed and electronic books. Sales also benefited from steady growth in the number of institutions outsourcing digital library services and library operations, and a year-on-year increase in book and other printing orders as the market recovered. As a result, overall sales in the Publishing business increased.
As a result of the above, overall segment sales fell 2.2% year on year to ¥338.8 billion due to such factors as a decline in large BPO projects related to government policies compared to the previous year. Operating income grew 52.8% to ¥9.7 billion, partly helped by effective cost structure reform.
-2-
Lifestyle and Industrial Supplies
In the Packaging business, although extended government stay-at-home requests and activity restrictions in response to the COVID-19 pandemic led to a decline in sales of commercial packaging materials for souvenirs at tourist destinations and for restaurant use, overall Packaging sales increased as we worked hard at developing and selling DNP's eco-friendly packaging products and were also helped by increased sales of aseptic filling systems.
In the Living Spaces business, with the domestic and overseas automobile markets and the domestic housing market on a recovery trend, sales of decorative films for automobile interiors and residential interior and exterior decorative materials increased. In addition, as a result of expanding our lineup of antibacterial and antiviral products as a way of preventing infection, overall Living Spaces sales increased.
In the High-Performance Industrial Supplies business, demand for battery pouches for lithium- ion batteries rose significantly due to worldwide growth in demand for electric vehicles as well as increased demand for tablets and smartphones driven mainly by the spread of teleworking. Overall sales of High-Performance Industrial Supplies increased.
As a result of the above, overall segment sales grew 7.0% year on year to ¥191.1 billion and operating income grew 116.4% year on year to ¥8.2 billion. These improvements were due to growth in the High-Performance Industrial Supplies business and also thanks to cost reductions, some of which resulted from optimization of manufacturing systems undertaken as part of structural reforms.
Electronics
In the Display Components business, sales of optical films for LCD displays used in televisions got a boost from increased "nesting consumption (greater demand for home-use products as people spent more time at home)," and sales of films for notebook PCs and monitors were also solid thanks to factors like the spread of teleworking and online learning. Sales of metal masks used in the production of organic light-emitting diode (OLED) displays were also strong thanks to greater demand for OLED displays for smartphones. Overall, Display Components sales increased.
In the Electronic Devices business, sales increased as the accelerated digital transformation of companies and local governments revved up the semiconductor market, sparking greater demand for semiconductor photomasks and other products used for communications, vehicular components, and data centers.
As a result of the above, overall segment sales grew 9.2% year on year to ¥105.3 billion but operating income grew 32.6% year on year to ¥23.7 billion due to the increase in sales.
[BEVERAGES] Beverages
We focused on in-store and online sales of beverages in PET plastic bottles free of labels, including product name labels, in order to reduce the burden on the environment, and in response to changes in lifestyle caused by the COVID-19 pandemic. In alcoholic beverages -- a new area for the Company -- we expanded our lineup of "Lemondo" products and launched a new alcoholic beverage called "Nomel's Hard Lemonade." However, the segment was hit hard by the extension of the government's stay-at-home request and activity restrictions and the resulting big drop in sales at tourist destinations and restaurants. As a result, overall segment sales fell 5.6% year on year to ¥23.0 billion . Although advertising and sales promotion expenses increased as we aimed to boost sales, thanks to thorough cost reductions we posted operating income of ¥64 million, compared to an operating loss of ¥100 million in the same period of the previous year.
-3-
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Dai Nippon Printing Co. Ltd. published this content on 26 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 November 2021 11:49:06 UTC.