Dai Nippon Printing Co.,Ltd.
7912・Prime Market・Other Products
Smart Communication Division
DNP's largest segment, embodying its printing and information integration strengths
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (external customers, FY2026 (ending March 2026)) | ¥748,674 million | ¥713,977 million | ↑ |
| Segment profit (FY2026 (ending March 2026)) | ¥40,002 million | ¥34,667 million | ↑ |
| Operating margin (FY2026 (ending March 2026)) | 5.3% | 4.8% | ↑ |
| Segment assets (end of FY2026 (ending March 2026)) | ¥785,846 million | ¥788,447 million | ↓ |
| Increase in property, plant and equipment and intangible assets (FY2026 (ending March 2026)) | ¥25,432 million | ¥31,275 million | ↓ |
| Impairment loss (FY2026 (ending March 2026)) | ¥6,805 million | ¥9,700 million | ↓ |
Business Details
Operates a wide range of businesses including publishing printing of books and magazines, commercial printing of catalogs and flyers, information security services such as IC cards, BPO, and authentication services, imaging communication-related products such as dye-sublimation thermal transfer products, digital marketing support, content & XR communication-related services, and library operation and e-book distribution. As the largest division, accounting for approximately 49% of DNP's total sales, it serves domestic and overseas corporations, governments, and consumers.
Recent Overview
Both sales and profit increased year on year, with business structural reforms contributing to improved profitability
In FY2026 (ending March 2026), the Smart Communication Division recorded sales of ¥748,674 million (up 4.9% year on year) and segment profit of ¥40,002 million (up 15.4% year on year). Photo printing materials in the imaging communication-related business performed well in the US, Europe, and Asia, while information security-related business benefited from large-scale BPO projects. The consolidation of Rubicon SEZC as a subsidiary (July 2025) and the resulting incorporation of ID authentication services also contributed. On the other hand, marketing-related business fell below the previous year's level due to the shrinking paper media market. Profitability improved through business structural reforms such as optimization of human capital and fixed assets.
Key Products
Growth Drivers
- Expanding demand for photo printing materials in the imaging communication-related business in the US, Europe, and Asian markets (increased demand related to new printers)
- Solid performance of ID card ink ribbons amid market recovery
- Contribution to information security-related sales from acquisition of large-scale BPO projects
- Acceleration of global expansion of government ID authentication services (Laxton brand) centered on Africa through consolidation of Rubicon SEZC as a subsidiary
- Stable growth in publishing-related business driven by solid library operation business and increased completion of large-scale projects for educational and research facilities
- Improved profitability (operating margin from 4.8% to 5.3%) through business structural reforms such as optimization of human capital and fixed assets
- Global expansion of content (anime and other IP) business and creation of new services combining information processing/conversion technology with AI and XR
Risks
- Continued shrinkage of the paper media market (publishing and commercial printing), sustaining downward pressure on sales in marketing-related and publishing-related businesses
- Fluctuations in information security-related business performance due to variability in large-scale BPO project orders
- Risk of demand fluctuation for dual-interface IC cards (decreased year on year in the current period as well)
- Foreign exchange risk (affecting earnings from businesses aimed at the US, Europe, and Asia)
- Acceleration of structural changes in demand for existing printing-related businesses due to advances in generative AI and digitalization
- Increase in goodwill associated with the Rubicon SEZC integration (significant increase in goodwill balance) and risks related to overseas business expansion
Last updated: June 23, 2026