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Consortium Inc.

（ＵＲＬ http://www.dac.co.jp/ ）Financial Highlights of 1st Quarter of Fiscal Year 2012 (April 1, 2011 to Jun 30, 2011)
1st Quarter of Fiscal Year 2011 (December 1,2009 to February 28,2010)(1) Consolidated operating results
Net sales

Operating income

Ordinary incomeMil.¥％
320（‑)
378 ( 114.7)

Mil.¥％335（‑)
392 (132.2)

Mil.¥％
17,831 (‑)
13,133 ( 15.2)

1st Quarter of FY 2012
1st Quarter of FY 2011

Earnings

Diluted earnings

Comprehensiveper shareper shareincome

Yen
199.06487.69

1st Quarter of FY 20121st Quarter of FY 2011

Yen
196.30486.22

Mil.¥
243 (285 (Net incomeMil.¥％104 (‑)
256 ( 525.9)％‑)‑)*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.¥

1st Quarter of FY 2012
(As of Jun 30,2011)
Fiscal Year 2011
(As of Mar 31,2011)(3)

Equity ratio

Mil.¥

％

21,436

12,59050.0

24,107

12,792

45.3

Dividend per share

Record date

End of 1stEnd of 2nd

End of 3rd

End of 4th

End ofAnnual

quarterquarterquarterquarter

perioddividend

Yen
Fiscal Year 2011―

Fiscal Year 2012―

Fiscal Year 2012
(expected)

Yen

Yen

0.00

―

TBD

TBD

Yen
―

1andYenYen

700.00700.00TBD

TBD

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

FY2011(As of Mar 31, 2011)

1st Quarter of FY2012(As of Jun 30,2011)

AmountAmountAssetsCurrent assets
Cash and deposits

7,849,895

7,451,907

Notes and accounts receivable-trade

10,568,0548,448,802

Short-term investment securities
Other
Allowance for doubtful accounts
Total current assets

5,013

5,013

1,273,816

1,005,491-18,900-11,988

19,677,880

16,899,225

324,913332,774

Noncurrent assets
Property, plant and equipment
Intangible assets
Goodwill

1,043,118

993,251

Software539,487

597,615

Software in progress

42,92540,061Other

12,99913,296

1,638,531

1,644,225

1,634,851

1,727,820

839,005

841,209

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

2-8,173-9,1582,465,683

2,559,871

4,429,127

4,536,871

24,107,007

21,436,097

(Unit:Thousand Yen)
Items of an account

FY2011(As of Mar 31, 2011)

1st Quarter of FY2012(As of Jun 30,2011)

AmountAmountLiabilities
Current liabilities
Accounts payable-trade8,416,399

6,538,028

Short-term loans payable

20,000250,000

Current portion of long-term loans payable

129,254

112,956

Accounts payable-other944,999

625,648

Income taxes payable531,737

208,874

Provision for bonuses

231,573

132,192

Provision for directors' bonuses

63,00011,720

Provision for point card certificates

23,352

23,258

Other543,534

581,237

10,903,851

8,483,916

Total current liabilities
Noncurrent liabilities
Long-term loans payable

42,53230,534

Provision for retirement benefits

173,897

200,076
42,098Provision for point card certificates

41,146

Other

153,057

88,841

Total noncurrent liabilities

410,632

361,550

11,314,484

8,845,466

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

3,663,189

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

10,723,228

10,552,512

217,784

171,983

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment-12,527-11,301

Total accumulated other comprehensive income

205,256

160,681

154,752

159,865

Subscription rights to shares
Minority interests

1,709,285

1,717,571

Total net assets

12,792,523

12,590,630

24,107,007

21,436,097

Total liabilities and net assets3

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

1st Quarter of FY2011(December 1,2009
to February 28,2010)

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

AmountAmountNet sales

13,133,779

17,831,093

Cost of sales

11,060,603

15,253,248

Gross profit

2,073,176

2,577,845

Selling, general and administrative expenses

1,694,189

2,257,038

378,986

320,806

Operating income
Non-operating income
Interest income

1,327

596

Dividends income

30

7,709
6,119

Equity in earnings of affiliates

13,098

Other

2,113

4,332

Total non-operating income

16,56918,757
1,152

Non-operating expenses
Interest expenses

786

Foreign exchange losses

25529

Loss on exit penalty

−

1,162

Loss on running cost investment business management partnership

1,009

−

Provision of allowance for doubtful accounts

1,500

−

123

1,021

Other
Total non-operating expenses
Ordinary income

3,445

3,865

392,111335,698−

12,957

20,380779

Extraordinary income
Gain on sales of investment securities
Gain on change in equity
Other

1,507

−

Total extraordinary income

21,88813,737Extraordinary loss
2,509

−

−

3,505

Loss on valuation of membership

1,897

−

Loss on sales of subsidiaries' stocks

1,314−−

955

Loss on valuation of investment securities
Loss on retirement of noncurrent assets

Loss on liquidation of subsidiaries and affiliates

338−

Total extraordinary losses

6,060

4,460

Income before income taxes

407,938

344,975

Income taxes-current

152,586

144,108

Income taxes-deferred-27,241

41,460

Income taxes

125,344

185,569

Income before minority interests

282,594

159,406

Minority interests in income

26,14654,779Net income

256,447

104,627

Other4

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

1st Quarter of FY2011(December 1,2009
to February 28,2010)

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

AmountAmount282,594

159,406

Valuation difference on available-for-sale securities

1,607

81,908Foreign currency translation adjustment

1,026

2,444

Share of other comprehensive income of associates accounted for using
equity method

-139

−

Other comprehensive income

Other comprehensive income

2,494

84,352

285,088

243,758

Comprehensive income attributable to owners of the parent

258,429

187,204

Comprehensive income attributable to minority interests

26,65956,553Comprehensive income
Comprehensive income attributable to5

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

1st Quarter of FY2011(December 1,2009
to January 28,2010)

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

ammount

ammount

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

407,938Depreciation and amortization

76,384

344,975
83,952

Amortization of goodwill

22,85449,867

Increase (decrease) in allowance for doubtful accounts

2,308-5,927

Increase (decrease) in provision for retirement benefits

9,608

26,179

Increase (decrease) in provision for point card certificates

9,345

858

Increase (decrease) in provision for directors' bonuses-13,587-51,280

Loss (gain) on sales and valuation of investment securities

2,509-12,957

Interest and dividends income-1,357-8,305Interest expenses
Equity in (earnings) losses of affiliates
Loss (gain) on sales and retirement of noncurrent assets
Loss (gain) on change in equity
Loss (gain) on sales of subsidiaries' stocks
Decrease (increase) in notes and accounts receivable-trade

786

1,152

-13,098-6,119−3,505-20,380

-779

1,314

−

-431,855

2,119,252

Decrease (increase) in inventories

9,202-24,355

Increase (decrease) in notes and accounts payable-trade

55,691-1,878,370

Increase (decrease) in accounts payable-other-26,645-314,564

Increase (decrease) in accrued consumption taxes

77,591

4,559

Other, net50,650

162,248

Subtotal

219,261

493,891

Interest and dividends income received

4,210

8,306

Interest expenses paid

-786

-1,152

Income taxes paid

-103,554-453,318

Net cash provided by (used in) operating activities

119,13147,727

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment-7,082-33,691

Purchase of intangible assets-47,753-121,263

Purchase of investment securities-28,650-82,270−

23,82063,250−

Proceeds from sales and redemption of investment securities
Proceeds from sales of investments in subsidiaries-248,657−

Payments for guarantee deposits-5,471−

Collection of loans receivable

4,166

−

Purchase of insurance funds−-8,329Payments for sales of investments in subsidiaries resulting in change in scope of consolidation

Other, net

485

52

-269,713-221,682

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

230,000

Proceeds from long-term loans payable

−

7,350

Repayment of long-term loans payable-28,890-35,646

Proceeds from stock issuance to minority shareholders

−

3,000

Proceeds from exercise of stock option−

1,911-98,747-367,905−-62,076

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

-482

-733

-128,120-224,101

1,094

68

Net increase (decrease) in cash and cash equivalents-277,607-397,988

Cash and cash equivalents at beginning of period

5,671,819

7,841,908

Cash and cash equivalents at end of period

5,394,212

7,443,920

6