The English translation is for reference purpose only. If there is any discrepancy between this English translation and the Japanese original
version, the Japanese original version shall prevail.

Overview of 3rd Quarter Results for the Year Ending
December 31, 2014 [Japanese GAAP]
November 11, 2014
Company Name
Securities Code
Representative
Contact Person
Inquiries in English

ASATSU-DK INC.
Exchange : Tokyo Stock Exchange First Section
9747
URL :http://www.adk.jp/en/
Shinichi Ueno, President and Group CEO
Fuminori Unosawa, Department Director, Finance Department, Finance Division

Tel:+81-3-6830-3867

Kaori Nakajima, Office of Corporate Communications

Tel:+81-3-6830-3855

Supplementary information for financial results
Organization of financial results briefing: Available: None(Unit: millions of yen, Rounded down under 1 million yen)

1. The First Nine Months Consolidated Results (January 1, 2014 to September 30, 2014)(1) Consolidated Operating Results(Percentages shown for Gross Billings, Operating Income, Ordinary Income and Net Income represent increase/decrease from those in the corresponding period of the previous year.)

Gross Billings
9 months ended；

Sep. 30, 2014
Sep. 30, 2013

Operating Income

Ordinary Income

Net Income

millions of yen％

millions of yen％

millions of yen％

millions of yen％

258,293
253,646

1.8
(2.5)

2,581
1,073

140.5
(49.4)

4,689
2,983

57.2
(19.9)

1,920
478

301.1
(74.1)(Note) Comprehensive income
at September 30, 2014 : 684 million yen (-96.4%) ,at September 30, 2013 : 19,135 million yen (159.0%)

Net Income per Share
Sep. 30, 2014
Sep. 30, 2013

Yen

45.89
11.40

45.84
11.40

(2) Consolidated Financial Position
Total Assets

Net Assets

Shareholder's Equity Ratio

millions of yen

millions of yen％

222,624
228,170

125,497
130,972

56.0
56.9

Sep. 30, 2014
Dec. 31, 2013
(Reference) Shareholders' equity

Fully Diluted Net Income per Share

Yen

September 30, 2014 : 124,762 million yen December 31, 2013 : 129,873 million yen

2. Dividend Information
Annual Dividend per Share
2nd quarter3rd quarter Fiscal year
end
end
end

1st quarter
end
Fiscal 2013(Actual)
Fiscal 2014(Actual)
Fiscal 2014(Forecast)

Total

Yen

Yen

Yen

Yen

Yen

－
－

10.00
10.00

－
－

131.00141.00－－(Notes) Revisions from the most recent dividend forecasts : No
The fiscal year end dividend for FY 2013 consists of the ordinary dividend of 19 yen per share andextraordinary dividend of 112 yen per share.
The sum of the fiscal year end dividend for FY 2014 is undecided (But it is more than 10 yen per share).

3. Forecast of Consolidated results Fiscal 2014 (January 1, 2014 to December 31, 2014)(Percentages shown for Gross Billings, Operating Income, Ordinary Income and Net Income represent increase/decrease from those in the corresponding period of the previous year.)

Gross Billings
millions ofyen

Full-year

348,800％

1.8

Operating
Incomemillions of
yen

3,700

(Note) Revisions from the most recent forecasts : No

Ordinary
Income％167.5

millions of
yen

5,600

Net Income
per share

Net Income％

29.4

millions of
yen

2,770

％

Yen

(19.2)

66.19

* Notes(1) Changes in the Scope of Consolidation and Application of the Equity Method：No.
New ─ Companies (Company Name)
Except ─ Companies (Company Name)(2) Application of specific accounting for preparing consolidated quarterly financial statements : Yes.
(3) Changes to accounting policy, changes to accounting estimates, or restatements：No.
1. Changes due to revisions to accounting standards, etc.
：No.
2. Changes other than 1:：No.
3. Changes in accounting estimates：No.
4. Restatements(4) Number of outstanding stocks
1 Number of outstanding stocks(including treasury stock) issued,end of term
2 Number of treasury stock, end of term
3 Avg. number of shares (consolidated)
outstanding during the terms ended

at September 30, 2014 42,155,400 at December 31, 2013
shares42,155,400
shares

at September 30, 2014

293,685 at December 31, 2013
333,481sharesshares
at September 30, 2014 41,842,644 at September 30, 2013 41,982,953
sharesshares(Note) The Company has introduced an "ESOP Trust Utilizing Employee Shareholding Association," and the shares
owned by this ESOP are reported as "treasury stock" in the quarterly consolidated financial statements.
Consequently, shares owned by this ESOP are included in the number of shares of treasury stock outstanding at
the period end above, and there were 213,600 shares and 255,200 shares at the end of the 3rd quarter and at theend of the previous fiscal year, respectively.

* Implementation status of quarterly review proceduresThis quarterly consolidated financial results report is exempt from quarterly review
procedures in accordance with the Financial Instruments and Exchange Act. At the time of
disclosure of this quarterly consolidated financial results report, the review procedures forquarterly consolidated financial statements have not finished.
* Appropriate use of business forecasts and other special matters
The business forecasts and future prospects in this document are made based on information
currently available and contain potential risks and uncertainties. As such, actual businessresults may significantly differ from those expressed or implied in the forecasts due to changes invarious factors.
Refer to "1. Consolidated Results for the 3rd Quarter of Fiscal 2014 (3) Forecasts for Fiscal
2014" on page 4 for the suppositions that form the assumptions for the business forecasts andcautions concerning the use thereof.

Contents

Page
1．Consolidated Results for the First Nine Months of Fiscal 2014 ········· ·············· 2(1) Overview of Operating Results ················································· ·············· 2(2) Financial Position ·································································· ·············· 4(3) Forecasts for Fiscal 2014 ························································· ·············· 42．Summary Information (Notes) ···················································· ·············· 5(1) Changes in Significant Subsidiaries during the Period ················· ·············· 5(2) Adoption of Special Accounting Treatments for
Quarterly Consolidated Financial Statements ························· ·············· 5(3) Changes in Accounting Policies, Changes in
Accounting Estimates and Restatements ································ ·············· 5
3．Consolidated Financial Statements····························································· 6(1) Consolidated Balance Sheets ·································································· 6(2) Consolidated Income Statements andConsolidated Comprehensive Income Statements ···································· 8(3) Notes to Consolidated Financial Statements ············································· 10(Items related to going concern assumption) ··············································· 10(Notes on significant changes in the amount of shareholders’ equity) ·············· 10(Segment Information) ············································································ 10(Material Subsequent Events) ·································································· 10―1―【Supplementary Information】
1. Consolidated Results for the First Nine Months of Fiscal 2014
(1) Overview of Operating Results
During the first nine months of the year (from January 1, 2014 to September 30, 2014), theJapanese economy continued a mild upswing with the improvement of corporate earnings andthe recovery of capital investments on the back of ongoing economic measures and monetary
policies taken by the central government and the Bank of Japan. Consumer spending remained
unpredictable since the consumer sentiment did not fully recover across the board after its
temporal drop caused by a consumption tax hike in April although there had been the lastminute demand prior to the hike and improvements in employment and income environment.
According to the “Current Survey of Selected Service Industries” by the Ministry of Economy,
Trade and Industry, total gross billings in the advertising industry showed steady year-onyear gains up to this month when this document prepared except April 2014 which
experienced a temporal drop after the consumption tax was raised.
Amid these circumstances, ADK is striving to transform itself into the “Consumer Activation
Company” under the name of “VISION 2020”, that ensures ADK not only to deliver messages
to consumers, but to inspire them to take concrete actions. With the hope of bringing“Consumer Activation” to fruition as planned, we are implementing measures to strengthen
the Group foundation and to diversify business models that include developing the solution
infrastructure, tightening the profit management structure, enhancing cooperation withsubsidiaries at home and abroad, further expanding content business, namely ADK’s specialty.
As a result of those efforts, the gross billings the Company reported for the first nine monthsof the period was ¥258,293 million, up 1.8% from the previous corresponding period. Gross profit
increased 7.5% to ¥35,723 million, while operating income made a significant improvement of
140.5% to ¥2,581 million. Ordinary income was up 57.2% to ¥4,689 million after adding ¥2,280
million non-operating income, such as dividend income, and ¥173 million non-operating
expenses. Extraordinary profit of ¥1,115 million mainly gained on sale of investment securities
did not offset extraordinary loss of ¥2,023 million, mainly attributed to office transfer expensesof the ADK headquarters as well as the main subsidiaries’ head offices. As a result, net income
before income taxes and minority interests for nine months increased 189.4% to ¥3,780 million,
while the net income for the same period increased 301.1% to ¥1,920 million.
Performance by Business Segment(Advertising Business)
Gross billings to customers amounted to ¥255,055 million, up 1.9% on a year-on-year basis,
during the nine months under review, and segment income increased 68.3% to ¥2,959 million.
Total gross billings grew on a year-over-year basis although, geographically, it varied
greatly. The parent company and domestic subsidiaries enjoyed revenue growth boosted by―2―

an increase in parent company’s advertising placements, production and digital affiliates’
contribution. On the other hand, overseas businesses experienced a decline with Chinese
subsidiaries performing unsatisfactorily even though Asia and US business performed
healthily driven by brisk Thai operation. Overall segment profits also showed an increase,
exceeding the last year’s results, as the parent and domestic subsidiaries performed healthily,
which offset sluggish overseas business resulted from the weak performance in China.
ADK, which forms the core of the ADK Group, reported gross billings of ¥225,754 million,
up 2.5% from the previous year. Gross profit increased to ¥26,029 million, up 8.3% andoperating income to ¥2,432 million, up 102.8% on a year-over-year basis. Measures taken to
improve gross operating income worked effectively in conjunction with a growth in billingsand compensated for an increase in selling, general and administrative expenses including
bonuses provision and relocation costs, leading to a rise in income.
Broken down by client business, ADK posted increases in gross billings from clients in suchindustries as Cosmetics/Toiletry, Government/Organizations, Restaurants/Other Services,
Retail/Distribution, Finance/Insurance. However, gross billings from clients in suchindustries as Food, Education/Healthcare Services/Religion, Beverages/Tobacco, Household
Goods, Real Estate/Housing.
Broken down by business discipline, gross billings in TV, Marketing Promotion, DigitalMedia experienced an increase over the previous year but in Creative and Others, OOHMedia, Newspaper, Magazine and Radio gross billings declined on a year on year basis.
Unconsolidated Performance by Discipline
Breakdown by DisciplineMedia

Gross Billings(Millions of Yen)

Magazine

9,492

4.2

(7.4)

Newspaper

14,0296.2(9.0)

TV (Program, Spot, Content)

103,859

46.0

4.4

Radio

2,302

1.0

(1.5)

Digital Media

11,037

4.9

36.1

OOH Media

5,820

2.6

(23.1)

146,541

64.9

2.4

Marketing and Promotion

48,25621.4

9.9

Creative and Others

30,956

13.7

(6.5)

Sub-total

79,213

35.1

2.8

Total

225,754

100.0

2.5

Sub-total
NonMediaComposition Y-o-Y change(%)(%)

Notes:
1. Because we offer cross-media programs, data may not represent gross billings exactly
by media.
2. TV includes Program, Spot and Content.
3. Digital Media includes Internet and Mobile-related media.

―3―

(Digital Solutions, such as Website Creation and System Development are includedin “Marketing and Promotion”.)
4. OOH (Out of Home) Media includes transportation and outdoor advertising andinsertions.
5. Marketing and Promotion includes Marketing, Communication Planning, Promotion,
Events, PR, Exposition events and Digital Solutions, etc.

(Other Business)
In other business, gross billings to customers amounted to ¥3,238 million, down 1.3% fromthe previous year, and the segment loss amounted to ¥378 million, compared with ¥685 million
loss in the previous corresponding period.
An adverse situation remains, where it is difficult to ensure a profit in its main business of
publication and sales of books and magazines aimed the contraction in the overall publishingmarket, leading to an operating loss. However, the scale of loss has become smaller on a yearon-year basis as a result of stepping up efforts in an attempt to reduce products’ returns byimproving the accuracy in the number of distribution and further controlling SG&A expenses.

(Overseas Sales)
In the consolidated first nine months under review, the ADK Group obtained 8.2% of its grossbillings from overseas, compared with 8.6% in fiscal 2013. All overseas sales are in theadvertising business.
(2) Financial Position
The consolidated financial position as of the end of previous accounting year (December 31,2013) in comparison with the current consolidated first nine months is as follows.
Total assets amounted to ¥222,624 million, down ¥5,545 million from the previous
consolidated fiscal year-end, mainly due to a decrease in investment securities stemming fromdeclining stock prices in addition to accelerating collection of receivables.
Total liabilities declined to ¥97,126 million, down ¥70 million from the same consolidated
business year-end due to decreased income tax payable, etc., although it included increased
provisions.
Total net assets amounted to ¥125,497 million, and the shareholder's equity ratio excluding
minority equity and subscription rights to share was 56.0%.
(3) Forecasts for Fiscal 2014
During the period of the first nine months (from January 1, 2014 to September 30, 2014), thebusiness performed steadily in line with the guidelines released in the beginning of the term.
We project that economy remains on a recovery path for the rest of the year and advertisingmarket continues to perform briskly in the midium and long run.

―4―

While, in the short-term, a rise in the price of import materials, concerns of economic
slowdown in the Eurozone and sagging economy in emergeing markets including China remain
to be seen. We also need to carefully watch how the higher tax may impact on the domestic
economy in the months to come and how advertisers’ business will be performing accordingly,
all of which will eventually influence the overall advertising market.
In light of the progress of measures taking for subsidiaries at home and abroad, we havedecided not to revise the consolidated forecast officially announced on February 14, 2014.
We are determined to continue our efforts to grow the business by promoting development
and provision of communication programs that capture changes in the media environment andconsumer behaviors, ensuring to strengthen competitive edge and enhance profitability.
2．Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
Not Applicable.
(2) Adoption of Special Accounting Treatments for Quarterly Consolidated Financial Statements(Calculation of tax expenses)
Tax expenses for the period are calculated by using the effective tax rate, which isestimated rationally based on the estimated annual consolidated income before tax after
applying deferred tax accounting, and applying that effective tax rate to income before
income taxes for the quarter.
(3) Changes in Accounting Policies, Changes in Accounting Estimates and Restatements
Not Applicable.

―5―3．Consolidated Financial Statements(1) Consolidated Balance Sheets (Unaudited and before reclassifications and rearrangements)(Millions of Yen)
December 31, 2013
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Inventories
Other
Allowance for doubtful accounts

September 30, 2014

25,55481,65911,371
8,469
2,391
(514)

26,24577,440
10,487
8,948
2,826
(695)

128,932

125,252

3,392
2,132

4,810
1,708

Investment securities
Other
Allowance for doubtful accounts

84,8299,694(810)

82,257
9,317(721)

Total investments and other assets

93,71390,852

Total current assets
Noncurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets

Total noncurrent assets
Total assets―6―

99,23897,372

228,170

222,624

(Millions of Yen)
December 31, 2013

September 30, 2014

65,997
－
164
1,950
892
7,076

65,823
52
164
853
2,222
7,215

Total current liabilities

76,08076,331

Noncurrent liabilities
Long-term loans payable
Provision
Other

82
1,688
19,346－
1,567
19,227

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision
Other

Total noncurrent liabilities

21,116

20,79597,197

97,12637,581
11,98244,303(651)

37,581
11,982
40,483(581)

93,21689,465

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

35,142
1
1,513

33,531(1)
1,766

Total accumulated other comprehensive income

36,65735,296

21
1,077

35
699

130,972

125,497

228,170

222,624

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity

Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets―7―

(2) Consolidated Income Statements and Consolidated Comprehensive Income Statements
Consolidated Income Statements (Unaudited and before reclassifications and rearrangements)
Nine Months Ended September 30, 2014
Nine Months Ended
September 30, 2013
(From January 1
to September 30, 2013)
253,646
220,401(Millions of Yen)
Nine Months Ended
September 30, 2014
(From January 1
to September 30, 2014)
258,293
222,569

Gross profit

33,24435,723

Selling, general and administrative expenses
Salaries and allowances
Provision for bonuses
Provision for directors' retirement benefits

16,446
1,149
27

16,295
1,663
11

Provision of allowance for doubtful accounts
Other

△302
14,850158
15,012

Total selling, general and administrative expenses

32,17133,141

Operating income

1,073

2,581

Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Other

192
1,190
109
488

185
1,439
140
514

Total non-operating income

1,981

2,280

9
4
12
45

6
58
40
68

Gross billings
Cost of sales

Non-operating expenses
Interest expenses
Loss on investments in partnership
Loss on insurance cancellation
Other
Total non-operating expenses

71

173

2,983

4,689

Gain on sales of investment securities
Other

1,016
33

1,080
34

Total extraordinary income

1,050

1,115

－
117
22
2,454
56
75

207
2
78
494
1,077
163

2,727

2,023

Ordinary income
Extraordinary income

Extraordinary loss
Impairment loss
Loss on sales of investment securities
Loss on valuation of investment securities
Special retirement expenses
Office transfer expenses
Other
Total extraordinary losses
Income before income taxes

1,306

3,780

Income taxes

811

1,760

Income before minority interests

494

2,020

Minority interests in income

1599

Net income

478

1,920

― 8 ―

Consolidated Comprehensive Income Statements (Unaudited and before reclassifications and rearrangements)
Nine Months Ended September 30, 2014

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(Millions of Yen)
Nine Months Ended
Nine Months Ended
September 30, 2013
September 30, 2014
(From January 1(From January 1
to September 30, 2013) to September 30, 2014)
494
2,020
17,3501(1,611)
(2)

1,289

277

－

1

18,641(1,335)Comprehensive income

19,135684(Comprehensive income attributable to)Comprehensive income attributable to owners of theparentComprehensive income attributable to minority
interests

19,079

559

56

125

Foreign currency translation adjustment
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income― 9 ―(3) Notes to Consolidated Financial Statements(Items related to going concern assumption)
Not Applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Not Applicable.
(Segment Information)
Nine Months Ended September 30, 2013 (Unaudited and before reclassifications and rearrangements)(Millions of Yen)
Amount on
Consolidated
Adjustment
Income(*Note1)Statements(*Note2)

Reportable segments
Advertising

Nonadvertising

Billings to customers

250,365

3,280

253,646－

253,646

Inter-segment billings

13

1

15

(15)

－

250,379

3,282

253,661(15)

253,646

1,758

(685)

1,073

0

1,073

Total

GROSS BILLINGS

Total billings
Segment income (loss)(Note)

1

Adjustment of segment income (loss) is mainly due to the deduction of the transaction between the segments
and unrealized income.

2

Segment income (loss) has been adjusted to equal the operating income on the consolidated income statements.

Nine Months Ended September 30, 2014 (Unaudited and before reclassifications and rearrangements)(Millions of Yen)
Amount on
Consolidated
Adjustment
Income(*Note1)Statements(*Note2)

Reportable segments
Advertising

Nonadvertising

Billings to customers

255,055

3,238

258,293－258,293

Inter-segment billings

18

34

52

(52)

－

255,073

3,273

258,346(52)

258,293

2,959

(378)

2,581

0

2,581

Total

GROSS BILLINGS

Total billings
Segment income (loss)(Note)

1

Adjustment of segment income (loss) is mainly due to the deduction of the transaction between the segments
and unrealized income.

2

Segment income (loss) has been adjusted to equal the operating income on the consolidated income statements.

(Material Subsequent Events)
Not Applicable.

― 10 ―