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Consortium Inc.

（ＵＲＬ http://www.dac.co.jp/ ）Financial Highlights of 1st Quarter, Fiscal Year 2011 (December 1, 2009 to February 28, 2010)(1) Consolidated operating results
Net sales

1st Quarter of FY 2011
1st Quarter of FY 2009

Mil.¥％
13,133 ( 15.2)
11,396 ( 10.9)

Ordinary incomeMil.¥％
378 ( 114.7)
176 ( ‑49.5)

Net income

Diluted net income

per shareper share

Yen487.69
84.36

1st Quarter of FY 2011
1st Quarter of FY 2009(2)

Operating income

Net incomeMil.¥％
398 ( 132.2)
168 ( ‑50.0)Mil.¥％
256 ( 525.9)
40 ( ‑72.6)

Yen
486.22
84.11

Consolidated financial position
EquityTotal assets

Net assets

Mil.¥
1st Quarter of FY 2010
Fiscal Year 2009(3)

Equity ratio

per shareMil.¥

15,341
15,499

％

9,970
9,924

Yen
17,575,31
17,284.08

60.2
58.6

Dividend per share

Record date

End of 1st

End of 2nd

End of 3rdquarter

quarterquarter

Yen
Fiscal Year 2009―

Fiscal Year 2011
Fiscal Year 2011
(expected)―

Yen

End of period
Yen

Annual dividend

Yen

―

―

200.00

―

―

―

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

FY2011(As of Feb 28,2010)

FY2009(As of Nov,2009)

AmountAmountConsolidated quarterly balance sheets
AssetsCurrent assets
Cash and deposits

5,402,200

5,678,796

Notes and accounts receivable-trade

5,022,296

5,047,038

Short-term investment securities

100,428

100,963

Other

970,624

881,451

Allowance for doubtful accounts-2,645-3,732

11,492,904

11,704,516

331,031371,714Goodwill

640,018

673,826

Software541,822549,442

Software in progress

34,79450,086

Other

9,505

10,8441,226,140

1,284,200

1,536,494

1,369,207

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

Total intangible assets
Investments and other assets
Investment securities
Other

886,390

898,503

Allowance for doubtful accounts-131,376-128,309

Total investments and other assets

2,291,508

2,139,402

Total noncurrent assets
Total assets

3,848,681

3,795,316

15,341,585

15,499,833

Liabilities
Current liabilities
Accounts payable-trade

3,846,271

4,168,747

Current portion of long-term loans payable39,996

62,220Accounts payable-other397,171446,330

Income taxes payable

280,557

256,257

6,000

19,587

Provision for bonuses

239,386

113,147

Provision for point card certificates

18,88013,709

Other

231,649

192,794

5,059,912

5,272,794

Provision for directors' bonuses

Total current liabilities
Noncurrent liabilities
Long-term loans payable

53,34860,014

Provision for retirement benefits

131,360

121,752

Provision for point card certificates

20,387

16,213

Other

105,892

105,042

Total noncurrent liabilities

310,988

303,0215,370,900

5,575,816Capital stock

4,031,837

4,031,837

Capital surplus

3,369,621

3,369,621

Retained earnings

2,344,631

2,193,472

Total liabilities
Net assets
Shareholders' equity

Treasury stock-448,094-448,094

Total shareholders' equity

9,297,996

9,146,836

Valuation difference on available-for-sale securities-46,481-47,948

Foreign currency translation adjustment-9,729-10,244

Total valuation and translation adjustments-56,210-58,192

126,378

127,886

Valuation and translation adjustments

Subscription rights to shares
Minority interests

602,519

707,486Total net assets

9,970,684

9,924,016

15,341,585

15,499,833

Total liabilities and net assets

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

FY2009(December 1,2008
to February 28,2009)

FY2011(December 1,2009
to February 28,2010)

AmountAmountConsolidated quarterly statements of income
Net sales

11,396,453

13,133,779

Cost of sales

9,779,629

11,060,603

Gross profit

1,616,824

2,073,176

Selling, general and administrative expenses

1,440,286

1,694,189

176,537

378,986

Interest income

4,250

1,327Dividends income

2930

Operating income
Non-operating income

Foreign exchange gains
Equity in earnings of affiliates

8,690

−

−

13,098

Other

3,555

2,113

Total non-operating income

16,526

16,569Interest expenses

1,972

786

Equity in losses of affiliates

11,153−Foreign exchange losses−

25

Loss on running cost investment business management
partnership
Provision of allowance for doubtful accounts

−

1,009

−

1,500

Non-operating expenses

Other

11,106123

Total non-operating expenses

24,232

3,445

168,832

392,111

Ordinary income
Extraordinary income
Gain on sales of noncurrent assets

13−

Gain on change in equity−

20,380

Other

−

1,507

Total extraordinary income

1321,888

Loss on valuation of investment securities

4,692

2,509

Loss on retirement of noncurrent assets

40,725−Special retirement expenses

20,506−

Loss on valuation of membership

−

1,897

Loss on sales of subsidiaries' stocks

−

1,314

Extraordinary loss

Other

16,031

338

Total extraordinary losses

81,956

6,060

Income before income taxes and minority interests

86,889407,938

Income taxes-current

90,712

152,586

Income taxes-deferred

33,439-27,241

Total income taxes

124,151

125,344

Minority interests in income (loss)-78,232

26,146

Net income

40,970256,447

(3)DAC Consolidated statements of cash flows(Unit:Thousand Yen)
Items of an account

FY2009(December 1,2008
to February 28,2009)

FY2011(December 1,2009
to February 28,2010)

ammount

ammount

Consolidated quarterly statements of cash flows
Net cash provided by (used in) operating activities
Income before income taxes and minority interests

86,889407,938

Depreciation and amortization

62,42076,384

Amortization of goodwill

18,76122,854

Increase (decrease) in allowance for doubtful accounts

203

2,308

Increase (decrease) in provision for retirement benefits

1,391

9,608

Increase (decrease) in provision for directors' retirement
benefits
Increase (decrease) in provision for point card certificates-94,397

−

419

9,345

Increase (decrease) in provision for directors' bonuses-26,249-13,587

Loss (gain) on sales and valuation of investment securities

4,692

2,509

Interest and dividends income-4,279-1,357

Interest expenses

1,972

786

Equity in (earnings) losses of affiliates

11,153-13,098

Loss (gain) on sales and retirement of noncurrent assets

40,718−−-20,380

Loss (gain) on change in equity

−

1,314

Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventories

668,558-431,855

21,197

9,202

Increase (decrease) in notes and accounts payable-trade-732,893

55,691

Increase (decrease) in accounts payable-other-66,098-26,645

Increase (decrease) in accrued consumption taxes

26,762

77,591Other, net

255,308

50,650Subtotal

276,531219,261Interest and dividends income received

3,300

4,210

Interest expenses paid

-1,972-786-221,195-103,554

56,664

119,131

Loss (gain) on sales of subsidiaries' stocks

Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment-30,936-7,082

Purchase of intangible assets-86,304-47,753-2,700-28,650

Purchase of investment securities-879,262−

Proceeds from sales of investments in subsidiaries−63,250

Payments for sales of investments in subsidiaries resulting
in change in scope of consolidation
Payments for guarantee deposits−-248,657-58,921-5,471−

4,166

Purchase of investments in subsidiaries

Collection of loans receivable
Proceeds from maturity of insurance funds

12,729−Other, net-3,224485-1,048,618-269,713

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable-8,320−

Repayment of long-term loans payable-28,888-28,890

1,283,130−

Purchase of treasury stock-33,498−

Proceeds from sales of treasury stock

16,222−-151,393-98,747

Proceeds from issuance of common stock

Cash dividends paid
Other, net
Net cash provided by (used in) financing activities−-482

1,077,253-128,120

Effect of exchange rate change on cash and cash equivalents-13,706

1,094

Net increase (decrease) in cash and cash equivalents

71,593-277,607

Cash and cash equivalents at beginning of period

5,337,297

5,671,819

Cash and cash equivalents at end of period

5,408,890

5,394,212