DigitalAdvertising

Consortium Inc.

（ＵＲＬ http://www.dac.co.jp/ ）Financial Highlights of 1st Quarter of Fiscal Year 2013 (Apr 1, 2012 to Jun 30, 2012) and1st Quarter of Fiscal Year 2012(Apr 1, 2011 to Jun 30, 2011)(1) Consolidated operating results
Net sales

Operating income

Ordinary incomeMil.¥％
588（ 83.5)
320（-)

Mil.¥％
605（ 80.4)335（-)

Mil.¥％
22,187 ( 24.4)
17,831 (-)

1st Quarter of FY 2013
1st Quarter of FY 2012

Earnings

Diluted earnings

Comprehensiveper shareper share

incomeYen395.76
199.06

1st Quarter of FY 2013
1st Quarter of FY 2012

Yen390.28
196.30Net incomeMil.¥％
192 ( 83.7 )
104 (- )Mil.¥％
261 ( 7.2)
243 (-)*DAC has decided to change its fiscal year end from November 30 to March 31 of each year.
Prior year comparison of 1 st Quarter of FY 2012 is not made because of the change in accounting periods.
(2)

Consolidated financial position
Total assets

Net assets

Mil.¥

1st Quarter of FY 2013
(As of Jun 30,2012)
Fiscal Year 2012
(As of Mar 31,2012)(3)

Equity ratio

Mil.¥

％

28,747

16,29637.0

31,545

16,453

34.1

Dividend per share

Record date

End of 1st

End of 2nd

End of 3rd

End of 4th

End ofAnnual

quarterquarterquarterquarter

perioddividend

Yen
Fiscal Year 2012―

Fiscal Year 2013
Fiscal Year 2013
(expected)

―

Yen

Yen

0.00

―

TBD

TBD

Yen
―

Yen

Yen

600.00600.00

TBD

TBD（4）Consolidated earnings forecast of 2rd Quarter of Fiscal Year 2013(Apr 1,2012 to Sep 30,2012)
Net salesMil.¥％
44,183 (16.1)
2rd Quarter of FY 2013
〜45,272 (18.9)

Operatingincome

Ordinary income

Net incomeMil.¥％921（9.7)〜1,090 (29.9)

Mil.¥％956（10.3)〜1,125 (29.8)

Mil.¥％
307 (1.0)〜407 (33.7)- 1 -Net income
per shareYen
633.39〜839.04

DAC Consolidated Financial Statements(1)DAC Consolidated Balance Sheets(Unit:Thousand Yen)
Items of an account

FY2012(As of Mar 31, 2012)

1st Quarter of FY2013(As of Jun 30,2012)

AmountAmountAssetsCurrent assets
Cash and deposits

9,927,853

8,415,551

Notes and accounts receivable-trade

12,399,121

10,809,823

Short-term investment securities

704,752

698,503

Operational investment securities

1,002,177

834,182

Other

1,363,716

1,487,720

Allowance for doubtful accounts-12,096-10,906

25,385,523

22,234,875

605,424

864,183

Goodwill

914,291

858,425

Software965,634

951,444

Software in progress

75,982

117,019

Other

20,084

17,123

1,975,993

1,944,013

Investment securities

2,086,976

2,251,734

Guarantee deposits

1,132,855

1,065,694

Other

380,920

406,987

Allowance for doubtful accounts-22,067-20,267

3,578,685

3,704,149

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

Total intangible assets
Investments and other assets

Total investments and other assets
Total noncurrent assets
Total assets- 2 -6,160,103

6,512,346

31,545,626

28,747,221

(Unit:Thousand Yen)
Items of an account

FY2012(As of Mar 31, 2012)

1st Quarter of FY2013(As of Jun 30,2012)

AmountAmountLiabilities
Current liabilities
Accounts payable-trade

10,751,372

8,490,983

Short-term loans payable

419,500

416,168

Current portion of long-term loans payable

171,652

179,983

Accounts payable-other

1,361,002

1,002,912

Income taxes payable

599,196354,341

Provision for bonuses

162,248

128,653Provision for directors' bonuses

14,00010,750Other

791,441

1,028,413

14,270,414

11,612,205

Long-term loans payable

316,938

271,605

Provision for retirement benefits

237,571

254,534

Provision for point card certificates

40,971

44,833

Other

225,788

267,128

Total current liabilities
Noncurrent liabilities

Total noncurrent liabilities

821,269

838,100

15,091,683

12,450,306

Capital stock

4,031,837

4,031,837

Capital surplus

3,184,465

3,184,465

Retained earnings

4,928,342

4,829,149

Treasury stock-1,626,980-1,628,279Total shareholders' equity

10,517,665

10,417,173

257,671

198,898−

4,774

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares-9,213

2,201

248,458

205,874

287,895

286,363

Minority interests

5,399,923

5,387,504

Total net assets

16,453,943

16,296,915

31,545,626

28,747,221

Total liabilities and net assets- 3 -(2)DAC Consolidated Statements of Income(Unit:Thousand Yen)
1st Quarter of FY2012(April 1,2011
to Jun 30,2011)
AmountItems of an account

1st Quarter of FY2013(April 1,2012
to Jun 30,2012)
AmountNet sales

17,831,093

22,187,230

Cost of sales

15,253,248

18,646,746

Gross profit

2,577,845

3,540,484

Selling, general and administrative expenses

2,257,038

2,951,941

320,806

588,542Interest income

596

2,113

Dividends income

7,709

8,616

Equity in earnings of affiliates

6,119

17,583Operating income
Non-operating income

Other

4,332

6,608

Total non-operating income

18,75734,921

1,152

4,140

Commission fee−

5,279

Foreign exchange losses

529

6,755

Non-operating expenses
Interest expenses

Loss on exit penalty

1,162−

Other

1,021

1,807

Total non-operating expenses

3,865

17,983335,698

605,481

12,957

14,095Gain on reversal of subscription rights to shares

−

5,816

Other

779

264

13,737

20,175

Ordinary income
Extraordinary income
Gain on sales of investment securities

Total extraordinary income
Extraordinary loss
Loss on liquidation of subsidiaries and affiliates

955−

Loss on exit penalty−

24,912

Other

3,505

6,987

Total extraordinary losses

4,460

31,900

Income before income taxes

344,975

593,756

Income taxes-current

144,108

255,478

Income taxes-deferred

41,46027,456

Income taxes

185,569

282,935

Income before minority interests

159,406

310,821

Minority interests in income

54,779118,659

Net income

104,627

192,162- 4 -(3)DAC Consolidated statements of comprehensive income(Unit:Thousand Yen)
1st Quarter of FY2012(April 1,2011
to Jun 30,2011)
AmountItems of an accountIncome before minority interests

1st Quarter of FY2013(April 1,2012
to Jun 30,2012)
Amount159,406

310,82181,908-83,142−

10,872Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

2,444

22,859Other comprehensive income

Foreign currency translation adjustment

84,352-49,410Comprehensive income

243,758

261,411Comprehensive income attributable to owners of the parent

187,204

149,124Comprehensive income attributable to minority interests

56,553112,287

Comprehensive income attributable to- 5 -(4)DAC Consolidated statements of cash flows(Unit:Thousand Yen)
Items of an account

1st Quarter of FY2012(April 1,2011
to Jun 30,2011)

1st Quarter of FY2013(April 1,2012
to Jun 30,2012)amountamountNet cash provided by (used in) operating activities
Income before income taxes

344,975

593,756

Depreciation and amortization

83,952

155,737

Amortization of goodwill

49,86755,865

Increase (decrease) in allowance for doubtful accounts-5,927-2,989

Increase (decrease) in provision for retirement benefits

26,17916,963

Increase (decrease) in provision for point card certificates

858

4,023

Increase (decrease) in provision for directors' bonuses-51,280-3,250Loss (gain) on sales and valuation of investment securities-12,957-13,796

Interest and dividends income-8,305-10,730

Interest expenses

1,152

4,140

Equity in (earnings) losses of affiliates-6,119-17,583

Loss (gain) on sales and retirement of noncurrent assets

3,505

923

−

-5,816

Gain on reversal of subscription rights to shares
Loss (gain) on change in equity
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories

-779

1,030

2,119,252

1,589,297-24,355-3,671−-352-1,878,370-2,260,389-314,564-170,357

4,559

67,453

Other, net

162,248

58,613

Subtotal

493,891

58,868Interest and dividends income received

8,306

13,637

Interest expenses paid

-1,152-3,960-453,318-493,212

47,727-424,666

Payments into time deposits−-1,800,000

Proceeds from withdrawal of time deposits−

1,050,000

Purchase of property, plant and equipment-33,691-458,284

Decrease (increase) in investment securities for saleIncrease (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued consumption taxes

Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities−

123

Purchase of intangible assets-121,263-168,570

Purchase of investment securities-82,270-104,841

Proceeds from sales and redemption of investment securities

23,82047,520

Proceeds from collection of guarantee deposits

306

67,459Collection of loans receivable

−

4,267

Purchase of stocks of subsidiaries and affiliates−-71,828-8,329-8,329Proceeds from sales of property, plant and equipment

Purchase of insurance funds
Other, net
Net cash provided by (used in) investing activities

-253

−

-221,682-1,442,484

230,000-3,332

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable

7,350

−

Repayment of long-term loans payable-35,646-37,002

Proceeds from stock issuance to minority shareholders

3,000−

Proceeds from exercise of stock option

1,911

1,026

Cash dividends paid

-367,905-294,072

Cash dividends paid to minority shareholders-62,076-71,044

Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

-733

-826

-224,101-405,250

68

3,851

Net increase (decrease) in cash and cash equivalents-397,988-2,268,550

Cash and cash equivalents at beginning of period

7,841,908

9,573,605

Cash and cash equivalents at end of period

7,443,920

7,305,054- 6 -