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Consortium Inc.

（ＵＲＬ http://www.dac.co.jp/ ）Financial Highlights of 2nd Quarter of Fiscal Year 2012 (April 1, 2011 to September 30, 2011)
2nd Quarter of Fiscal Year 2011 (December 1,2009 to May 31,2010)(1) Consolidated operating results
Net sales

Operating income

Ordinary incomeMil.¥％839（‑)
867 ( 148.0)

Mil.¥％
867（‑)
903 (232.9)

Mil.¥％
38,062 (‑)
26,958 ( 10.9)

2nd Quarter of FY 2012
2nd Quarter of FY 2011

Net income

Diluted Net income

Comprehensive

per shareper shareincome

Yen586.73
1,065.20

2nd Quarter of FY 2012
2nd Quarter of FY 2011

Yen581.28
1,059.02

Mil.¥497 (651 (andNet incomeMil.¥304 (560 (％‑)‑)％‑)‑)*DAC has decided to change its fiscal year end from November 30 to March 31 of each year.
No comparison is made because of the change in accounting periods.
(2)

Consolidated financial position
Total assets

Net assets

Mil.¥

2nd Quarter of FY 2012
(As of Sep 30,2011)
Fiscal Year 2011
(As of Mar 31,2011)(3)

Equity ratio

Mil.¥

％

22,608

11,69342.4

24,107

12,79245.3

Cash dividend per shareRecord date

End of 1st

End of 2nd

End of 3rd

End of 4th

End ofAnnual

quarterquarterquarterquarter

perioddividend

Yen

Yen

Fiscal Year 2011

―

0.00

Fiscal Year 2012

―

0.00

Fiscal Year 2012
(expected)

Yen―

Yen
―

TBD

Yen

Yen

700.00700.00

TBD

TBD（4）Consolidated earnings forecast of 3rd Quarter of Fiscal Year 2012(April 1,2011 to December 31,2011)

3rd Quarter of FY 2012

Net sales

Operatingincome

Ordinary income

Net income

Mil.¥％
58,764 ( ‑)〜61,777 ( ‑)Mil.¥％
1,300（ ‑)〜1,523 ( ‑)Mil.¥％
1,320（ ‑)〜1,544 ( ‑)Mil.¥％
534 ( ‑)
〜645 ( ‑)1

Net incomeper shareYen
1,051.24〜1,269.76

DAC Consolidated Financial Statements(1)DAC Consolidated balance sheets(Unit:Thousands of Yen)
Items of an account

FY2011(As of March 31, 2011)

2nd Quarter of FY2012(As of September 30,2011)

AmountAmountAssetsCurrent assets
Cash and deposits

7,849,895

6,925,865

Notes and accounts receivable-trade

10,568,054

9,763,615

Short-term investment securities
OtherAllowance for doubtful accounts
Total current assets

5,013

1,013

1,273,816

1,142,187-18,900-17,151

19,677,880

17,815,529

324,913343,655

Noncurrent assets
Property, plant and equipment
Intangible assets
Goodwill

1,043,118

950,378

Software539,487

604,475

Software in progress

42,92576,845

Other

12,99915,466

1,638,531

1,647,165

1,634,851

1,854,287

839,005

955,858

Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

2-8,173-7,9102,465,683

2,802,235

4,429,127

4,793,056

24,107,007

22,608,586

(Unit:Thousands of Yen)
Items of an account

FY2011(As of March 31, 2011)

2nd Quarter of FY2012(As of September 30,2011)

AmountAmountLiabilities
Current liabilities
Accounts payable-trade8,416,399

8,276,427

Short-term loans payable

20,000270,000

Current portion of long-term loans payable

129,254

111,866

Accounts payable-other944,999563,758

Income taxes payable531,737

404,378

Provision for bonuses

231,573242,251

Provision for directors' bonuses

63,00019,440

Provision for point card certificates

23,352

24,060

Other543,534

511,338

10,903,851

10,423,521

Long-term loans payable

42,532

141,293

Provision for retirement benefits

173,897

211,083

Provision for point card certificates

41,146

40,678

Other

153,057

98,849Total noncurrent liabilities

410,632

491,904

11,314,484

10,915,425

Total current liabilities
Noncurrent liabilities

Total liabilities
Net assets
Shareholders' equity
Capital stock

4,031,837

4,031,837

Capital surplus

3,184,465

3,184,465

Retained earnings

3,833,905

3,863,153

Treasury stock
Total shareholders' equity-326,980-1,626,980

10,723,228

9,452,475

217,784

140,039

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment-12,527-12,119

Total accumulated other comprehensive income

205,256

127,920

154,752

189,497

Subscription rights to shares
Minority interests

1,709,285

1,923,266

Total net assets

12,792,523

11,693,160

24,107,007

22,608,586

Total liabilities and net assets3

(2)DAC Consolidated Statements of Income(Unit:Thousands of Yen)
Items of an account

2nd Quarter of FY2011(December 1,2009
to May 31,2010)

2nd Quarter of FY2012(April 1,2011
to September 30,2011)

AmountAmountNet sales

26,958,422

38,062,505

Cost of sales

22,690,571

32,677,734

Gross profit

4,267,850

5,384,770

Selling, general and administrative expenses

3,400,440

4,544,963

867,410

839,806

Operating income
Non-operating income
Interest income

2,463

1,517

Dividends income

72

11,987

Foreign exchange gains
Equity in earnings of affiliates−733

33,47813,282Other6,669

7,038

Total non-operating income

42,68434,558

1,336

2,846

625−

Non-operating expenses
Interest expenses
Foreign exchange losses

−

1,162

Loss on investments in partnership

1,009

1,457

Provision of allowance for doubtful accounts

3,000−

342

1,353

Loss on exit penalty

Other
Total non-operating expenses
Ordinary income

6,313

6,819

903,781867,546

98,00012,957−

18,037Extraordinary income
Gain on sales of investment securities
Gain on transfer of business
Other

23,395

1,726

Total extraordinary income

121,395

32,721

Extraordinary loss
Loss on valuation of investment securities

12,358−Loss on retirement of noncurrent assets

328

4,149

Loss on valuation of membership

1,897

−

Loss on sales of stocks of subsidiaries and affiliates

1,314

−

Stock selling cost−

14,037

Other

338

960

Total extraordinary losses

16,23819,147

Income before income taxes

1,008,938

881,120

Income taxes-current

404,219448,203

Income taxes-deferred-42,977-4,904

Income taxes

361,241

443,298

Income before minority interests

647,696

437,821

Minority interests in income

87,574133,167

Net income

560,122304,654

4(3)DAC Consolidated statements of comprehensive income(Unit:Thousands of Yen)
Items of an accountIncome before minority interests

2nd Quarter of FY2011(December 1,2009
to May 31,2010)

2nd Quarter of FY2012(April 1,2011
to September 30,2011)

AmountAmount647,696

437,821

Valuation difference on available-for-sale securities

3,367

59,336

Foreign currency translation adjustment

1,540

776

Share of other comprehensive income of associates accounted for using
equity method-1,600−

Other comprehensive income

Other comprehensive income

3,307

60,112651,004

497,934Comprehensive income attributable to owners of the parent

562,655354,279

Comprehensive income attributable to minority interests

88,349143,655

Comprehensive income
Comprehensive income attributable to5

(4)DAC Consolidated statements of cash flows(Unit:Thousands of Yen)
Items of an account

2nd Quarter of FY2011(December 1,2009
to May 31,2010)

2nd Quarter of FY2012(April 1,2011
to September 30,2011)

ammount

ammount

Net cash provided by (used in) operating activities
Income before income taxes

1,008,938

881,120

Depreciation and amortization

155,748

186,406

Amortization of goodwill

45,071

99,609

Increase (decrease) in allowance for doubtful accounts

4,263-2,011

Increase (decrease) in provision for retirement benefits

24,12037,186

Increase (decrease) in provision for directors' retirement benefits
Increase (decrease) in provision for point card certificates
Increase (decrease) in provision for directors' bonuses
Loss (gain) on change in equity−600

19,468

2,895

2,614

-43,560-20,380-1,500−-18,037

Loss (gain) on sales and valuation of investment securities-85,641-12,957

Interest and dividends income-2,535-13,505

Interest expenses

1,336

2,846

-33,478-13,282

Loss (gain) on sales and retirement of noncurrent assets

328

4,149

Loss (gain) on sales of stocks of subsidiaries and affiliates

1,314−

Decrease (increase) in notes and accounts receivable-trade-887,215

804,439

Loss (gain) on transfer of business

Equity in (earnings) losses of affiliates

6,732-36,830

Increase (decrease) in notes and accounts payable-trade

Decrease (increase) in inventories

331,146-168,715

Increase (decrease) in accounts payable-other339,113-350,377

Increase (decrease) in accrued consumption taxes

84,859-4,982Other, net-217,320

195,610

Subtotal

778,484

1,549,102

Interest and dividends income received

5,391

13,501

Interest expenses paid

-1,336-2,850

Income taxes paid

-173,606-581,335

Net cash provided by (used in) operating activities

608,931

978,417

Net cash provided by (used in) investing activities
−

4,000

Purchase of property, plant and equipment-19,670-77,695

Purchase of intangible assets-84,497-255,570

Purchase of investment securities-28,650-184,958Proceeds from sales and redemption of investment securities

248,000

23,820Purchase of stocks of subsidiaries and affiliates-50,000-140,000

Proceeds from sales of stocks of subsidiaries and affiliates

63,25085,050

Proceeds from purchase of investments in subsidiaries resulting in change in scope of consolidation

45,797−

Proceeds from redemption of securities

Payments for sales of investments in subsidiaries resulting in change in scope of consolidation
Proceeds from transfer of business-248,657−−

4,000-67,194

Payments for guarantee deposits-5,471

Collection of loans receivable

16,664−Purchase of insurance funds−-8,778

Payments for liquidation of subsidiaries−-7,433

Other, net

81

306

-63,152-624,454

Net increase (decrease) in short-term loans payable−

250,000

Proceeds from long-term loans payable−

179,350

Repayment of long-term loans payable-42,222-97,977

Purchase of treasury stock−-1,300,000

Proceeds from stock issuance to minority shareholders−

128,000

Proceeds from exercise of stock option

−

3,679

-101,229-367,915−-62,242

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities

Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents-976-1,560-144,427-1,268,665

1,673-9,328403,024-924,030

Cash and cash equivalents at beginning of period

5,671,819

7,841,908

Cash and cash equivalents at end of period

6,074,844

6,917,878

Net increase (decrease) in cash and cash equivalents

6