Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2023 [J-GAAP]
August 10, 2022 | ||
Company Name: | Dai Nippon Printing Co., Ltd. | |
Stock exchange listing: | Tokyo | |
Stock code: | 7912 | URL: https://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: | August 10, 2022 | |
Dividend payment date: | - | |
Preparation of quarterly earnings presentation material: No | ||
Holding of quarterly results briefing: | No |
(Amounts under one million yen have been rounded down.)
1. Consolidated financial results for the first three months ended June 30, 2022 (April 1, 2022 - June 30, 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 | % | ||
Three months ended | 334,433 | 0.8 | 16,917 | 2.5 | 22,628 | 13.5 | 15,739 | 5.8 | |
June 30, 2022 | |||||||||
Three months ended | 331,919 | 2.6 | 16,506 | 71.1 | 19,929 | 46.7 | 14,878 | 101.0 | |
June 30, 2021 | |||||||||
Note: Comprehensive income: For the first three months ended June 30, 2022: ¥(16,975) million (-%) For the first three months ended June 30, 2021: ¥20,158 million (-40.9%)
Net Income per Share | Diluted Net Income | |
per Share | ||
Yen | Yen | |
Three months ended | 58.58 | 58.56 |
June 30, 2022 | ||
Three months ended | 53.21 | 53.20 |
June 30, 2021 | ||
(2) Consolidated financial position
Total Assets | Net Assets | Equity Ratio | ||||||
Million yen | Million yen | % | ||||||
As of June 30, 2022 | 1,816,192 | 1,118,883 | 58.4 | |||||
As of March 31, 2022 | 1,876,647 | 1,148,413 | 58.2 | |||||
Note: Stockholders' equity as of June 30, 2022: ¥1,061,322 million | As of March 31, 2022: ¥1,091,861 million |
2. Dividends
Annual Dividends (Yen) | |||||||||||||||||
First | Second | Third | Year-end | Total | |||||||||||||
Quarter-end | Quarter-end | Quarter-end | |||||||||||||||
Year ended | - | 32.00 | - | 32.00 | 64.00 | ||||||||||||
March 31, 2022 | |||||||||||||||||
Year ending | - | ||||||||||||||||
March 31, 2023 | |||||||||||||||||
Year ending March 31, 2023 | 32.00 | - | 32.00 | 64.00 | |||||||||||||
(Forecasts) | |||||||||||||||||
Note: Revisions to the most recently announced dividend forecasts during the first quarter: No |
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) | 249.84 | |||||||||||
Note: Revisions to the most recently announced earnings forecasts during the first quarter: No
Other information
- Changes in significant subsidiaries during the first 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: No
2) | Changes in accounting policies other than the 1) above: | No |
3) | Changes in accounting estimates: | No |
4) | Restatement of revisions: | No |
(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 June 30, 2022 | 317,240,346 | As of March 31, 2022 | 317,240,346 |
shares | shares | ||
As of June 30, 2022 | 49,295,504 | As of March 31, 2022 | 48,175,114 |
shares | shares | ||
Three months ended | 268,675,013 | Three months ended | 279,608,871 |
June 30, 2022 | shares | June 30, 2021 | 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 first three months (3) Explanation of the consolidated earnings forecasts and other projections," on page 4.
Contents | ||
1. Qualitative information on the consolidated results for the first 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 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 | |
[Segment information] ................................................................................................... | 9 |
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1. Qualitative information on the consolidated results for the first quarter
(1) Explanation of the consolidated financial results
The environment surrounding the DNP Group during the first three months of the fiscal year ending March 31, 2023 showed signs of gradual economic recovery, including progress toward balancing economic activity with measures to prevent the spread of the novel coronavirus (hereafter COVID-19). At the same time, the future has become even more difficult to predict due to factors like the situation in Ukraine and other geopolitical risks, further increases in raw material and energy prices, prolonged semiconductor shortages, and the recent sharp depreciation of the yen.
Amid these conditions, the DNP Group worked to resolve social issues and create new value that meets people's expectations, in order to realize a better, more sustainable society and enable more comfortable lifestyles. In addition to combining its unique strengths in printing and information (P&I) and deepening cooperation with its many partners, the Group has prioritized and optimized allocation of management resources in fields that it designated as "focus businesses" due to expectations of particularly high market growth and profitability: the Internet of things (IoT)/next-generation communications, data distribution, mobility, and environment. We also worked to build a strong business portfolio by restructuring to enhance competitiveness.
As a result of the above, consolidated net sales for the first three months grew 0.8% year on year to ¥334.4 billion, consolidated operating income grew 2.5% to ¥16.9 billion, consolidated ordinary income grew 13.5% to ¥22.6 billion, and net income attributable to parent company shareholders grew 5.8% to ¥15.7 billion.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Information Innovation business, sales of catalogs and pamphlets declined, but demand increased for smart cards used by financial institutions and "My Number" (Japanese government ID) cards, resulting in an overall increase in sales.
In Imaging Communication, sales increased due to strong sales of photographing and printing materials and services in the core US market as well as European and Asian markets.
Our Publishing business enjoyed strong sales from the distribution of e-books and other electronic media, digital library services, and the outsourcing of library management operations. However, orders for printing magazines and other paper media fell below the previous year's level, resulting in an overall decrease in Publishing sales.
As a result of the above, overall segment sales grew 0.3% year on year to ¥173.6 billion, but operating income fell 6.3% to ¥4.7 billion due mainly to higher raw material prices.
Lifestyle and Industrial Supplies
In Packaging, we leveraged the strengths that we acquired through developing packages for everyday consumer products like foods and household goods, and bolstered our efforts to design more comfortable lifestyles for people. In addition, we worked to develop and sell DNP's GREEN PACKAGING series of eco-friendly packaging, and sales of film packaging products remained strong. However, there was a decline in sales of the aseptic filling systems that performed well in the previous fiscal year, resulting in an overall decline in Packaging sales.
In the Living Spaces business, sales of interior and exterior decorative materials for residential use increased due to recovery in demand in the housing market. In addition, sales of decorative
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films for automobile interiors and DNP Aluminum Decor Panel for interior and exterior use in the North American market also increased, leading to an increase in overall sales in this business.
The High-Performance Industrial Supplies business was affected by changes in the overall global supply chain, including lockdowns in China and temporary production cutbacks due to global shortages of semiconductors. Sales of lithium-ion battery pouches decreased, both for automotive use and IT use, resulting in a decrease in sales for this business as a whole.
As a result of the above, overall segment sales fell 3.4% year on year to ¥92.7 billion, and operating income fell 67.1% to ¥1.5 billion due to the big impact of soaring prices of raw materials and energy.
Electronics
In the Display Components business, optical film products were affected by production adjustments, mainly for films used in laptop PCs, due to a decline in demand relative to the surge in "nesting demand" from people working and learning at home during the pandemic, but sales of films used for televisions were solid, and overall sales of optical films increased. Sales of metal masks used in the manufacture of organic light-emitting diode (OLED) displays were also strong due to increased demand for smartphone displays, resulting in an increase in sales for this business as a whole.
In the Electronic Devices business, demand for semiconductors expanded due to such factors as increased investment in data centers, wider use of 5G and DX, and measures supporting the transition toward a decarbonized society, and sales of various types of photomasks used in the production of semiconductors increased. Also, sales were brisk for lead frames and other items used in semiconductor packages, contributing to an increase in overall sales for the business.
As a result of the above, overall segment sales grew 9.1% year on year to ¥57.4 billion, and operating income grew 29.8% to ¥16.2 billion due to the increase in sales.
[BEVERAGES] Beverages
In response to lifestyle changes resulting from the COVID-19 pandemic and the growing need to reduce negative impact on the environment, we focused on online and in-store sales of beverages in label-free (including product name labels) PET plastic bottles. In addition, we actively conducted campaigns through the smartphone app "CokeON" and focused on cultivating new business partners.
Overall segment sales reached ¥11.0 billion (up 3.2% year on year) thanks to growth in sales to mass retailers such as supermarkets and drugstores, as well as increased online sales. The segment's operating loss was ¥0.4 billion, compared to ¥0.2 billion yen in the same period of the previous fiscal year, due mainly to soaring prices of raw materials and energy.
In the past few years, the DNP Group has formulated policies like the "DNP Group Declaration on Health," "DNP Group Diversity Declaration," and "DNP Group Safety and Health Charter," etc., in order to enable all employees to use their abilities to the maximum extent possible, and we are concentrating on restructuring our various personnel systems. These measures are based on the conviction that when we value our employees, those employees who we valued will cause the company to grow and will make society more prosperous. This fiscal year, we positioned this conviction as our universal and basic approach to human resources, and established it as our "Human Capital Policy."
Regarding human rights and labor, which have become particularly important in recent years, one of the items in the DNP Group Code of Conduct is "Respect for human dignity and diversity." We are committed to respecting the diversity of all kinds of people and to conducting ourselves
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Dai Nippon Printing Co. Ltd. published this content on 10 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 August 2022 23:17:04 UTC.