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Consortium Inc.

（ＵＲＬ http://www.dac.co.jp/ ）Financial Highlights of 2nd Quarter, Fiscal Year 2007(December 1, 2006 thru May 31, 2007)(1) Consolidated
Gross billings

Operating income

Ordinary income

Net income

2nd Quarter of FY 2007
2nd Quarter of FY 2006

Mil.¥％
18,455 ( 17.6)
15,694 ( 33.8)

Mil.¥％
612 ( 24.5)
491 ( ‑17.6)

Mil.¥％
652 ( 52.0)429 ( ‑20.5)

Mil.¥％
26 ( ‑93.2)
396 ( 67.1)（Ref.）Fiscal Year 2006

32,328 ( − )1,100 ( − )1,069 ( − )753 ( − )Net income

Diluted net income

per shareper share
YenYen2nd Quarter of FY 2007

55.1254.68

2nd Quarter of FY 2006

814.30796.66（Ref.）Fiscal Year 2006

1,547.53

1,523.14(2)

Non‑Consolidated
Gross billings

Operating income

Ordinary income

Net income

Mil.¥

Mil.¥

Mil.¥

Mil.¥

％％％％

2nd Quarter of FY 2007
2nd Quarter of FY 2006

17,122 ( 11.3)
15,384 ( 34.1)

680
523

( 30.1)( ‑12.5)708 ( 38.6)
510 ( ‑20.9)‑
1,184 (‑349.3)
475 ( 37.8)（Ref.）Fiscal Year 2006

31,186 ( − )1,060( − )1,104 ( − )747 ( − )Net income
per share
2nd Quarter of FY 2007
2nd Quarter of FY 2006

Yen‑
2,427.33
976.85（Ref.）Fiscal Year 2006

1,534.66（Note）The percentage shown next to gross billings, operating income, ordinary income and net income represent year‑
on‑
year
Changes.

(3)

Consolidated financial position
Total assets

Total net asset

Mil.¥

Shareholders

equity Shareholders

ratioequity

per share

2nd Quarter of FY 2007
2nd Quarter of FY 2006

12,381
11,486

7,427
6,950

55.3
60.5

Yen
14,034.11
13,500.46（Ref.）Fiscal Year 2006

12,4837,565

55.714,264.34(4)

Mil.¥％

Non‑
consolidated financial position
Total assets

Total net asset

Mil.¥

Shareholders

equity Shareholders

ratio

Mil.¥

equityper share

2nd Quarter of FY 2007
2nd Quarter of FY 2006

10,771
11,460

6,787
7,815

63.0
68.2

Yen
13,901.16
16,027.48（Ref.）Fiscal Year 2006

12,138

8,102

66.7

16,611.50

1％DAC Consolidated Financial Statements(1) DAC Consolidated Balance Sheet(Unit：Thousand Yen)

Items of an account

Q2 FY2006(As of May.31, 2006)

AmountQ2 FY2007(As of May.31,2007)

Ratio

AmountRatio%(Assets)FY2006(As of Nov.30,2006)
AmountRatio%%

Ⅰ Current Assets
1. Cash and deposits

3,128,732

3,934,380

3,085,421

2. Trade notes and accounts receivable

3,028,212

3,497,677

3,637,562

3. Marketable securities

1,723,939

1,241,466

1,730,743

4 Deferred tax assets

72,75375,38373,606

5. Other current assets

408,161

365,023

403,121

Allowance for doubtful receivables‑2,147‑2,294‑1,883

Total currents assets

8,359,652

72.8

9,111,637

73.6

8,928,570

71.5

Ⅱ N o n ‑c u r r e n t Assets1. Property, plant and eqipment

351,444378,515314,223

2. Intangible assets(1) Consolidated adjustment account(2) Consolidated goodwill

587,644−595,207−

380,410−(3) Software

142,641

183,976

159,783(4) Software in progress

90,252(5) Other intangible assets

3,454

148,944823,992

5,215

101,935
718,547

5,304

862,231

3. Investments and other assets(1) Investment securities

1,263,697

1,667,233

1,804,942(2) Deferred tax assets

220,297

37,866105,338(3) O t h e r a s s e t s

662,293

Allowance for doubtful receivables‑194,450

594,678
1,951,837‑127,199

661,348
2,172,578‑193,036

2,378,593

Total non‑current assets

3,127,275

27.2

3,269,641

26.4

3,555,047

28.5

Total assets

11,486,927

100.0

12,381,279

100.0

12,483,617

100.0

2

(Unit：Thousand Yen)

Items of an account

Q2 FY2006(As of May.31,2006)

AmountQ2 FY2007(As of May.31,2007)

Ratio

Amount

Ratio%(Liabilities)

FY2006(As of Nov.30,2006)
AmountRatio%%

Ⅰ Current liabilities
1. Accounts payable‑trade

2,886,524

3,309,7773,274,021

2. Short‑term borrowings

50,00085,68050,0003. Current portion of Long‑term borrowings

388,363292,577

377,175

4. A c c o u n t s p a y a b l e

401,923

351,110308,216

5. Income tax payable

264,879

347,419

256,323

6. Accrued bonuses for directors

9,000

15,00030,0007. Other current liabilities

131,744

168,207

243,182

Total current liabilities

4,132,433

36.0

4,569,772

36.9

4,538,918

36.4

Ⅱ Non‑current liabilities
1. Bonds payable

200,000

200,000

200,000

2. Long‑ term borrowings

92,577−

16,1003. Accrued retirement benefits

32,64052,922

39,568

4. Accrued retirement benefits for directors

77,122

88,89382,7795. Allowance for given points−

40,90039,631

6. Other non‑current liabilities

1,781

1,218

1,588

Non‑current liabilities

404,120

3.5

383,934

3.1

379,667

3.0

Total liabilities

4,536,554

39.5

4,953,707

40.0

4,918,586

39.4

3

(Unit：Thousand Yen)

Items of an account

Q2 FY2006(As of May.31,2006)
AmountQ2 FY2007(As of May.31,2007)
Ratio

FY2006(As of Nov.30,2006)

Ratio

AmountAmount

Ratio(Net Assets)
Ⅰ S h a r e h o l d e r s ’ equity
1. Common stock

3,369,130

29.3

3,387,977

27.4

3,370,076

27.0

2. Additional paid‑in capital

2,782,812

24.2

2,801,242

22.6

2,782,981

22.3

3. Retained earnings

427,950

3.7

724,6775.8

785,569

6.3

4. T r e a s u r y s t o c k‑17,511‑0.1‑95,112‑0.8‑15.266‑0.1

6,562,382

57.1

6,818,784

55.0

6,923,362

55.5

20,7450.2

32,6060.3

33,280

0.3

‑829

‑0.0

2560.0163

0.0

19,9160.2

32,8630.3

33,443

0.3

Ⅲ W a r r a n t

1,054

0.0

676

0.0

1,035

0.0

Ⅴ Minority interests

367,019

3.2

575,247

4.7

607,190

4.8

Total shareholders’ equity
Ⅱ Valuation, exchange difference
1. Unrealized gain on
available‑for‑sale securities
2. Foreign currency translation
adjustment accountTotal valuation, exchange difference

Total net Assets

6,950,373

60.5

7,427,572

60.0

7,565,031

60.6

Total liabilities and net assets

11,486,927

100.0

12,381,279

100.0

12,483,617

100.0

4

(2)

DAC Consolidated Statements of Income

Items of an account(Unit：Thousand Yen)
FY2006Q2 FY2006

Q2 FY2007(Dec. 2005 thru May 2006)(Dec. 2006 thru May 2007)

AmountRatio

AmountRatio%(Dec. 2005 thru Nov.2006)
AmountRatio%%Ⅰ

Gross billings

15,694,212

100.0

18,455,070

100.0

32,328,113

100.0

Ⅱ

Cost

13,777,263

87.8

15,552,370

84.3

27,727,333

85.8

1,916,949

12.2

2,902,700

15.7

4,600,779

14.2

ⅢSelling and general administrative. expenses

1,425,221

9.12,290,453

12.4

3,500,122

10.8

491,727

3.1

612,247

3.3

1,100,657

3.4

ⅣNon‑operating income

46,676

0.1ofsales

G r o s si n c o m eOperating income

1. Interest income

2,375

14,5526,025

2. Dividend income

−

4,590

8,185

3. Gain on valuation of securities

−

9,557

26,814

4. Gain on foreign currency exchange

952

250

262

5. Investment profit on equity method
6. OⅤthers−
7,242

3,421−
44,571

0.2

5,388−

3,145

3,442

2. Investment loss on equity method

41,295−52,698

3. Loss on valuation of securities

22,063−−

4. Preoperating amortization

9,523−

10,9505. Others

209

Ordinary income

73,0920.5

429,205

2.7

1,367

4,512

0.0

652,305

3.5

10,55577,6460.2

1,069,687

3.3

260,707

0.8

102,7960.3

1,227,598

3.8

448,304

1.4

Extraordinary income
1. Gain on sales of investment securities

Ⅶ

0.1

Non‑operating expenses
1. Interest expense

Ⅵ12,19910,57025,179−2. Gain on sales of fixed asset−

1,752−

3. Gain from c hange in e quity int erest−−

193,618

4. O−thers

25,1790.2

40

45,6281,792

0.0

21,461

Extraordinary losses
1. Loss on valuation of investment
securities
2. Loss on sales of investment
securities

−

8,302

51,016

−

1,290

−

3. Loss on disposal of fixed assets

−

3,961

11,523

4. One‑time depreciation of goodwill−

227,411−

5. Loss due to impairment−−

7,513−−

22,237−

5,572−

6. Transfer to allowance for given
points
7. Loss from change in equity interest
8. Others3,126

3,126

0.0

451,259

2.9

74,771

0.5

M i n o r i t y i n t e r e s ts

‑19,530

N e t

396,019

Income before income taxes andminority interests
Provision for income taxes

254,812Deferred income taxes‑180,041

i n c o m e

658

247,196

1.3

406,901

2.2

403,2162.1‑0.1‑23,209‑0.1

25,6560.1

2.5

26,8940.2

753,6382.3

338,201

5

65,015

10,505

521,794‑73,490

(3) DAC Consolidated Cash Flow Statements(Unit : Thousand Yen)
Q2 FY2006
Items of an accountQ2 FY2007(Dec. 2005 thru May 2006) (Dec. 2006 thru May 2007) (Dec. 2005 thru Nov.2006)
AmountAmountⅠ Cash flows from Operating Activities:

700,071

182,256

221,264

335,222‑448,437‑17,570‑185,758

258,056‑1,014756

151

34,582

850,291‑7,972

3,874,559

3,926,586

3,874,559

60,000‑60,0003,969,142

4,776,878

3,926.586

Ⅱ Cash flows from Investing Activities:
Net cash provided by Investing Activities

Ⅲ Cash flows from Financing Activities
Net cash provided by Financing Activities

Ⅳ Foreign currency translation adjustments
on cash and cash equivalents
Ⅴ Net increase/decrease in cash and cash
equivalentsterm
Ⅶ Cash and cash equivalents at beginning ofterm of newly consolidated subsidiaries
Ⅷ Cash and cash equivalents at end of term

Amount‑168,097

Net cash provided by Operating Activities:

Ⅵ Cash and cash equivalents at beginning ofFY2006

6