Digital

Advertising

Consortium

Inc.

（ＵＲＬ http://www.dac.co.jp/ ）Financial Highlights of Fiscal Year 2004(December 1, 2003 thru November 30, 2004)(1) Consolidated Results of Operations
Gross billings

Fiscal Year 2004
Fiscal Year 2003

Operating income

Mil.¥％
15,114 ( 47.2)
10,267 ( − )Mil.¥％( 83.8)
( − )

691
376

Net income
per share
Fiscal Year 2004
Fiscal Year 2003

(2)

Ordinary incomeMil.¥％
642 ( 58.8)
404 ( − )Diluted net income
per share

Returnon equity

Yen
1,078.72

%-5.7
4.6

Yen-1,521.72
1,100.38

Net income

Ordinary
income tototal equity%
7.75.4

Mil.¥％-342 ( − )281 ( − )Ordinary
income togross billings
%
4.3
3.9

Non-Consolidated Results of Operations
Gross billings

Fiscal Year 2004
Fiscal Year 2003

Operating income

Mil.¥％
14,892 ( 45.4)
10,245 ( 109.0)

Mil.¥％( 91.8)( − )745388Net income
per share
Fiscal Year 2004
Fiscal Year 2003

Diluted net income
per share

Yen
1,627.34
1,085.21

Yen
1,581.30
1,063.84

Ordinary income

Net income

Mil.¥％
783 ( 85.8)421 ( − )Returnon equity
%
6.4
4.6

Ordinary
income tototal equity%
9.05.7Mil.¥％407 ( 46.6)
278 ( − )Ordinary
income togross billings%
5.3
4.1（Note）The percentage shown next to billings, operating income, ordinary income and net income represent year-on-yearchanges(3)

Consolidated financial position
Total stockholders
equityTotal assets

Mil.¥
Fiscal Year 2004
Fiscal Year 2003

(4)

8,766
8,024Mil.¥
5,855
6,168

％
66.876.9¥
24,347.03
25,902.94

Non-consolidated financial position
Total stockholders
equityTotal assets

Mil.¥
Fiscal Year 2004
Fiscal Year 2003

(5)

Shareholders equity Shareholders
ratio
equity per share

Shareholders equity Shareholders
ratio
equity per share

Mil.¥

9,461
8,018

6,604
6,166

Cash dividends
applicable to the year

Total Amount ofdividends％
69.876.9¥
27,471.42
25,892.10

Dividends¥
Fiscal Year 2004
Fiscal Year 2003

Dividends payout ratio Dividends on equity

Mil.¥

170.00120.00

4020

1%

％
10.0
10.2

0.60.5

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

Items of an account

FY2003 fiscal year-end(As of Nov 30，2003)
Amount

FY2004 fiscal year-end(As of Nov 30，2004)

Ratio

AmountRatio%(Assets)%

Ⅰ Current Assets
1.

1,978,623

2,511,651

2. Accounts receivable-trade

1,378,501

2,056,318

3.

Marketable securities

2,715,432

2,466,814

Other current assets

60,644

79,954

Allowance for doubtful receivables-5,604-8,151

4.

Cash and deposits

Total current assetsⅡ1.

(2) Other tangible assets

7,106,588

81.1

41,394

68,1270.8

110,918

1.2

1,481,312

16.9

36,66533,67175,0660.9

31,461Intangible assets(1) Software(2) Software in progress(3) Other intangible assets
3.

76.4

Property, plant and equipment(1) Buildings

2.

6,127,597

Non-current assets

112,996

104,302504

6,111
113,500

1.4

504

Investments and other assets(1) Investment securities(2) Other assets
Allowance for doubtful receivables

1,579,011

1,273,652

132,757-3,909211,550
1,707,860

21.3-3,890Total non-current assets

1,896,427

23.6

1,660,357

18.9

Totoal assets

8,024,025

100.0

8,766,946

100.0

2

①DAC Consolidated Financial Statements(2) DAC Consolidated Balance Sheet (Liabilities, Minority interest & Shareholdersequity)(Unit：Thousand Yen)
Items of an account

FY2003 fiscal year-end(As of Nov 30, 2003)
AmountRatio%Current liabilities
1. Accounts payable-trade

1,497,433

2,273,272

2. Accounts payable-others

95,127

123,625

3. Income tax payable

90,260316,198

4. Warrant
5. Other current liabilities
Total current liabilities
ⅡRatioAmount%(Liabilities)
ⅠFY2004 fiscal year-end(As of Nov 30, 2004)

3,578

2,860

112,280

106,516

1,798,678

22.4

2,822,474

32.2

Non-current liabilities
1. Accrued retirement benefits
2. Accrued retirement benefits todirectors

Total non-current liabilities
Total liabilities

11,93018,51544,601

54,76856,531

0.7

73,2830.8

1,855,210

23.1

2,895,757

33.0-

15,7420.2(Minority interests)
Minority interests-(Shareholders equity)
Ⅰ

Common stock

3,253,470

40.6

3,289,235

37.5

ⅡAdditional paid-in capital

2,690,485

33.5

2,711,035

30.9

ⅢRetained earnings

280,695

3.5-111,561-1.2

Ⅳ

Unrealized gain on available-for-sale

33,9630.4

11,6360.1

securities

ⅤTreasury stock-89,800-1.1-44,900-0.5

Total sharehoders’ equity

6,168,815

76.9

5,855,446

66.8

8,024,025

100.0

8,766,946

100.0

Total liabilities, minority interestsand shareholders equity

3

② DAC Consolidated Statements of Income(Unit : Thousand Yen)
FY2003 fiscal year-end
Items of an account(FY2004 fiscal year-end)(Dec.2003 thru Nov.2004)

Dec.2002 thru Nov.2003
AmountRatio

Amount

Ratio

%

%

Ⅰ Gross Income

10,267,903

100.0

15,114,105

100.0

Ⅱ Cost of sales

8,700,544

84.7

12,970,458

85.8

Gross Profit

1,567,359

15.3

2,143,647

14.2

Ⅲ Selling, general and admin. expenses

1,191,141

11.6

1,452,117

9.6

376,2173.7

691,529

4.6

40,891

0.3

Operating income
Ⅳ Non-operating income
1. Interest and dividend income
2. Gain on foreign currency exchange
3. Others

33,38831,332-

2,575

2,423

35,812

0.3

6,982

Ⅴ Non-operating expenses
1. Loss on foreign currency exchange

1,086-

2. Loss on equity securities

4,851

87,573

3. Others

1,487

Ordinary income

7,4250.1

404,604

3.9

2,439

90,012

0.6

642,408

4.3

20,7390.1

640,772

4.2

22,3760.2

371,383

2.5

Ⅵ Extraordinary income
1. Profit from sale of investment
securities
2. Gain on change of equity securities

6,128

19,131
6,128

0.1

1,608

Ⅶ Extraordinary losses
1. Loss on valuation of security
2. Loss on disposal of fixed assets
3. Loss on equity securities
4. Amortization of consolidated
Adjustment accounts

589

23,814

16,981

380-

616,577

4,206

Income before income taxes and minority
interests
Provision for income taxes98,917

Deferred income taxes

8,162

Minority interest
Net income

4

21,7770.2

388,956

3.8-406,423
107,079

1.1-35,040

147

0.0-6,513-0.0

281,729

2.7-342,493-2.3

③ DAC Consolidated Statements of Cash Flows(Unit：Thousand Yen)
FY2003 fiscal year-end FY2004 fiscal year-end
Items of an account(Dec 2002 thru Nov 2003)(Dec 2003 thru Nov 2004)
AmountⅠ

Cash flows from Operating Activities:
Net cash provided by Operating Activities

Ⅱ748,864-1,362,538-564,864-77,441

95,876-1,55343-819,840

279,9204,513,643

3,693,803

3,693,803

3,973,723

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
equivalents
Ⅵ Cash and cash equivalents at beginning ofterm
Ⅶ621,692

Cash flows from Investing Activities:
Net cash used by Investing Activities

ⅢAmount

Cash and cash equivalents at end of term5