Consolidated Balance Sheets
Asatsu-DK Inc. and Consolidated Subsidiaries
Years Ended December 31, 2004 and 2003
Thousands of U.S.
dollars(Note 1)Millions of yen

ASSETS
CURRENT ASSETS

2004

2003

2004

¥ 22,749¥ 23,527$ 218,300

10,377

11,427

99,578105,237

101,026

1,009,855

(709)

(735)

(6,804)Inventories

6,939

6,408

66,586

Deferred tax assets (Note 7)

1,550

819

14,874

Other current assets

1,648

1,890

15,814

147,791

144,362

1,418,203

Land

1,323

1,881

12,696

Buildings and leasehold improvements

3,988

4,681

38,269

Other

2,012

2,073

19,307

7,323

8,635

70,272(3,033)(2,993)(29,105)

4,290

5,642

41,167

Investment securities (Note 3)

68,05958,921

653,095

Investments in unconsolidated subsidiaries and affiliated companies

6,590

6,406

63,238

535

661

5,134

11,635

10,919111,649

86,81976,907

833,116¥238,900¥226,911$2,292,486

Cash and time deposits
Marketable securities (Note 3)
Notes and accounts receivable:
Trade
Allowance for doubtful receivables

Total current assets
PROPERTY AND EQUIPMENT

Total
Accumulated depreciation
Net property and equipment
INVESTMENTS AND OTHER ASSETS

Deferred tax assets (Note 7)
Other assets
Total investments and other assets

TOTAL

See notes to consolidated financial statements.

26 ADK Annual Report 2004

Thousands of U.S.
dollars(Note 1)Millions of yen

LIABILITIES AND SHAREHOLDERS’ EQUITYCURRENT LIABILITIESShort-term debt (Note 4)
Bonds due within one year (Note 4)
Current portion of long-term debt (Note 4)
Notes and accounts payable—trade
Income taxes payable (Note 7)
Accrued bonuses to employees
Allowance for sales returns
Deferred tax liabilities (Note 7)
Other current liabilities
Total current liabilities
LONG-TERM LIABILITIESLong-term debt (Note 4)
Accrued retirement benefits (Note 5)
Accrued retirement benefits to directors and corporate auditors
Deferred tax liabilities (Note 7)
Other long-term liabilities
Total long-term liabilities
MINORITY INTERESTS

2004

2003

¥

¥

405
—
368
90,324
2,507
1,818
893
79
5,220

2004
$

329
200
60
86,599
2,267
1,189
773
100
5,342

3,886
—
3,531
866,750
24,057
17,446
8,569
758
50,091

101,61496,859975,088

728
4,724
617
5,934
180

1,060
3,852
738
3,308
246

6,986
45,332
5,920
56,943
1,727

12,1839,204

116,908

1,209

1,276

11,60237,58140,60739,336
14,078102
131,704(7,810)37,58140,60735,167
11,188(50)
124,493(4,921)

360,628
389,665
377,469
135,0939781,263,833(74,945)

123,894

119,572

1,188,888¥238,900¥226,911$2,292,486

CONTINGENT LIABILITIES (Note 10)
SHAREHOLDERS’ EQUITY (Notes 6 and 13)
Common stock
Authorized, 206,000,000 shares in 2004 and 2003;
Issued 51,655,400 shares in 2004 and 2003
Capital surplus
Retained earnings
Unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Total
Treasury stock—at cost
Shareholders’ equity—net

TOTAL

See notes to consolidated financial statements.

ADK Annual Report 2004 27

Consolidated Statements of Income
Asatsu-DK Inc. and Consolidated Subsidiaries
Years Ended December 31, 2004 and 2003
Thousands of U.S.
dollars(Note 1)Millions of yen

GROSS BILLINGS (Note 14)

2004¥413,898

2003¥395,149

2004$3,971,769

COST OF SALES (Note 14)364,819348,266

3,500,807

Gross profit

49,07946,883

470,962

40,81940,467

391,699

8,260

6,416

79,263

1,222

813

11,726SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Notes 8 and 14)
Operating income
OTHER INCOME (EXPENSES)Interest and dividend income—net
Gain on sales of securities

683

707

6,554

Loss on sales of securities

(6)

(105)

(58)

(446)

(439)

(4,280)Consolidation adjustment account charge

33

174

317

Equity in earnings of affiliated companies—net

350

343

3,359

Retirement benefits paid to directors and corporate auditors

(195)

(60)

(1,871)

Additional retirement benefits paid to employees

(129)

(94)

(1,238)Gain on reformation of retirement benefits and pension plans

225

—

2,159

Impairment loss of fixed assets

(579)

—

(5,556)

Loss on sales of fixed assets

(182)

(39)

(1,747)

Prior years’ foreign salary adjustment

(356)

—

(3,416)

Other—net

560

(269)

5,374

1,180

1,031

11,323

9,440

7,447

90,586

Current

4,077

2,765

39,123

Deferred

129

962

1,238

53

99

508

Loss on valuation of securities

Other income—net
INCOME BEFORE INCOME TAXES AND MINORITY INTERESTSINCOME TAXESMINORITY INTERESTS IN NET INCOME
NET INCOME

See notes to consolidated financial statements.

28 ADK Annual Report 2004

¥

5,181

¥

3,621

$

49,717

Consolidated Statements of Shareholders’ Equity
Asatsu-DK Inc. and Consolidated Subsidiaries
Years Ended December 31, 2004 and 2003
Thousands of U.S.
dollars(Note 1)Millions of yen

2004¥40,6072003¥40,6072004$389,665

00

0CAPITAL SURPLUS, END OF THE YEAR

¥40,607¥40,607$389,665

RETAINED EARNINGS, BEGINNING OF THE YEAR

¥35,167¥32,512$337,463

5,181

3,621

49,717—1—

Cash dividends

889

891

8,531

Bonus to directors and corporate auditors

123

76

1,180

RETAINED EARNINGS, END OF THE YEAR

¥39,336¥35,167$377,469

CAPITAL SURPLUS, BEGINNING OF THE YEAR
Increase in capital surplus
Sales of treasury stocks

Increase in retained earnings
Net income
Merger of consolidated and non-consolidated subsidiaries
Decrease in retained earnings

U.S. dollars(Note 1)

Yen

2004

2003

2004

PER SHARE OF COMMON STOCK
Net income¥ 103.25¥

70.53$ 0.99Net asset

2,554.78

2,416.67

24.52

20.00

18.00

0.19

Cash dividends applicable to the year

See notes to consolidated financial statements.

ADK Annual Report 2004 29

Consolidated Statements of Cash Flows
Asatsu-DK Inc. and Consolidated Subsidiaries
Years Ended December 31, 2004 and 2003
Thousands of U.S.
dollars(Note 1)Millions of yen

2004

2003

2004

¥ 9,440¥ 7,447$ 90,586(3,926)
1,333
(350)
(683)
6
446

(412)
1,408
(343)
(707)
105
439

(37,674)
12,791(3,359)(6,554)58
4,280(3,192)
(529)
3,554
1,202
(2,139)(3,670)
1,061
3,285
2,900
4,066

(30,630)(5,076)
34,104
11,534(20,526)

7,301

11,51370,060(21)
5,611(9,816)
329
(164)
(451)
—
748

(739)
6,698
(4,840)
118
(345)
(657)
3,045
587

(201)
53,843(94,194)
3,157(1,574)(4,328)—
7,178(3,764)

3,867(36,119)

75
50
(74)
(200)
(2,889)
(889)
(29)

(365)
300
(241)
(300)
(455)
(891)
(12)

720
480
(710)
(1,919)(27,723)(8,531)(279)(3,956)(1,964)(37,962)

72

(28)

691

(347)

¥13,388$ (3,330)

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
INCREASE DUE TO MERGER BETWEEN CONSOLIDATED AND
UNCONSOLIDATED SUBSIDIARIES

30,125

16,635

289,080—102—

CASH AND CASH EQUIVALENTS, END OF YEAR

¥29,778¥30,125$285,750

OPERATING ACTIVITIESIncome before income taxes and minority interests
Adjustments for:
Income taxes—paidDepreciation and amortization
Equity in earnings of affiliated companies
Gain on sales of securities
Loss on sales of securities
Loss on valuation of securities
Changes in assets and liabilities:
Increase in notes and accounts receivable(Increase) decrease in inventories
Increase in notes and accounts payable
Other—net
Total adjustments
Net cash provided by operating activities
INVESTING ACTIVITIES
Increase in time deposits—net
Proceeds from sales of securities
Purchases of securities
Proceeds from sales of property and equipment
Purchases of property and equipment
Purchases of intangible assets
Refund of security deposits from landlords
Other investing activities
Net cash (used in) provided by investing activities
FINANCING ACTIVITIES
Increase (decrease) in short-term debt—net
Proceeds from long-term debt
Repayment of long-term debt
Redemption of bonds
Purchases of treasury stock—net
Dividends paid
Other financing activities
Net cash used in financing activities
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON
CASH AND CASH EQUIVALENTS
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS

See notes to consolidated financial statements.

30 ADK Annual Report 2004¥

Notes to Consolidated Financial Statements
Asatsu-DK Inc. and Consolidated Subsidiaries
Years Ended December 31, 2004 and 2003

1. BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been
prepared from the accounts maintained by Asatsu-DK Inc. (the“Company”) and its consolidated subsidiaries in accordance withthe provisions set forth in the Japanese Securities and Exchange
Law and its related accounting regulations, and in conformity withaccounting principles and practices generally accepted in Japan,
which are different in certain respects as to application anddisclosure requirements of International Accounting Standards.
In preparation for these consolidated financial statements,
certain reclassifications and rearrangements have been made to
the consolidated financial statements issued domestically in orderto present them in a form which is more familiar to readers outside
Japan.

The consolidated financial statements are stated in Japaneseyen, the currency of the country in which the Company isincorporated and mainly operates. The translation of Japanese
yen amounts into U.S. dollar amounts are included solely for theconvenience of readers outside Japan and have been made at therate of ¥ 104.21 to U.S.$1, the approximate rate of exchange at
December 31, 2004. Such translation should not be construed asa representation that the Japanese yen amounts could be
converted into U.S. dollars at that or any other rate.
Certain reclassifications have been made in the 2003 financial
statements to conform to the presentation for 2004.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa. Consolidation
The consolidated financial statements include the accounts of theCompany and its significant 17 (19 in 2003) majority-owned
subsidiaries (together, the “Group”).
Under the control or influence concept, those companies inwhich the Company, directly or indirectly, is able to exercise
control over operations are fully consolidated, and thosecompanies over which the Group has the ability to exercise
significant influence are accounted for by the equity method.
Sixteen subsidiaries use a fiscal year end at December 31, so
does the Company. One subsidiary uses a fiscal year ended at
September 30. The consolidated financial statements include thefinancial statements of this subsidiary for its respective fiscal years
after appropriate adjustments for significant transactions during
the periods from its respective year ends to the date of theconsolidated financial statements.
Investments in 1 (2 in 2003) insignificant unconsolidated
subsidiary and 4 (4 in 2003) affiliated companies (companies
owned 20% to 50%) are accounted for by the equity method.
Investments in the remaining unconsolidated subsidiaries andaffiliated companies are stated at cost. If the equity method of
accounting had been applied to the investments in thesecompanies, the effect on the accompanying consolidated financial
statements would not be material.
Any consolidation adjustment accounts are charged or
credited to income, in the year incurred.
All significant intercompany balances and transactions havebeen eliminated in consolidation. All material unrealized profits
included in assets resulting from transactions within the Group are
eliminated.

c. Inventories
Inventories are primarily stated at cost determined by the specificidentification method.

b. Cash and Cash Equivalents
Cash and cash equivalents consist of cash, demand deposits withbanks and those which are short-term investments that are readily
convertible into cash and that are not exposed to significant risk ofchanges in value.
Cash equivalents include time deposits, certificate of deposits
and money management funds investing in bonds that represent
short-term investments, all of which mature or become due within
three months of the date of acquisition.

e. Property and Equipment
Property and equipment are carried at cost. Depreciation for theproperty and equipment other than the buildings acquired after
April 1, 1998, is computed on the declining-balance method at
rates based on the estimated useful lives of the assets.
Depreciation of buildings acquired after April 1, 1998, is computedon the straight-line method over their estimated useful lives.
Estimated useful lives of major assets are as follows:
Buildings and leasehold improvements 10 – 50 years

d. Marketable and Investment Securities
All applicable securities are classified and accounted for,depending on management’s intent, as follows:i) trading securities, which are held for purpose of earning capitalgains in near term, are reported at fair value, and the related
unrealized gains and losses are included in earnings, ii) held-tomaturity debt securities, which are expected to be held to maturity
with the positive intent and ability to hold to maturity are reported
at amortized cost and iii) available-for-sale securities, which are
not classified as either of the aforementioned securities, arereported at fair value, with unrealized gains and losses, net of
applicable taxes, reported in a separate component ofshareholders’ equity.
If the market values of held-to-maturity debt securities, equity
securities issued by unconsolidated subsidiaries and affiliatedcompanies, and available-for-sale securities, decline significantly,
such securities are stated at fair market value, and the difference
between the fair market value and the carrying amount isrecognized as loss in the period of the decline. If the fair market
value of equity securities issued by unconsolidated subsidiaries
and affiliated companies not accounted for by the equity method
is not readily available, such securities should be written down to
net asset value with a corresponding charge in the statement ofincome in the event net asset value declines significantly. In thesecases, such fair market value or the net asset value will be thecarrying amount of the securities at the beginning of the next year.

ADK Annual Report 2004 31

f. Deferred Assets
Bond issuance expenses are charged to income when paid.
g. Retirement Benefits and Pension Plans
Prior to December 31, 2004, the Company and its certain
consolidated subsidiaries provided two types of post-employment
benefit plans, unfunded lump-sum payment plans and funded
non-contributory pension plans, under which all eligible
employees were entitled to benefits based on the level of salaries
at the time of retirement or termination, length of service andcertain other factors. At the end of 2004, the Company reformed
its retirement benefits and pension plans and adopted a defined
contribution pension plan and a cash balance plan. The unfunded
lump-sum payment plan and the funded non-contributory pension
plan were abolished instead. The effect of the reformation was toincrease income before income taxes by ¥225 million ($2,159
thousand) for the year ended December 31, 2004
The Group accounted for the liability for retirement benefits
based on the projected benefit obligations and plan assets at thebalance sheet date.
The Company’s directors and corporate auditors are entitled,
in most circumstances, to lump-sum severance payments basedon current rates of pay, length of services and certain otherfactors. The Company accrues 100% of obligations based on its
rule required under the assumption that all directors and corporate
auditors retired at the balance sheet date.
h. Sales Recognition
Income derived from media advertising is recognized upon the
publication or broadcast. Product sales are recognized when the
products are shipped. One domestic consolidated subsidiary
provides allowances, based upon Japanese tax code, for returned
publication merchandise and losses derived from unsold
publication merchandise.
i. Leases
Leases are accounted for as operating leases in the Company anddomestic consolidated subsidiaries. Under Japanese accounting
standards for leases, finance leases that deem to transfer
ownership of the leased property to the lessee are to becapitalized, while other finance leases are permitted to beaccounted for as operating lease transactions if certain “as if
capitalized” information is disclosed in the notes to the lessee’s
consolidated financial statements. In major overseas consolidated
subsidiaries, leases are accounted for as finance leases andleased property to the lessee are capitalized.
j. Software and R&D Costs
Research and development costs are charged to income as
incurred. Capitalized software for internal use amounting ¥2,231
million ($21,409 thousand) in 2004 and ¥2,541 million in 2003,
respectively, included in “Other assets” of investments and otherassets, were depreciated by the straight-line method based on theestimated useful lives (five years).
k. Income Taxes
The provision for income taxes is computed based on the pretax
income or loss included in the consolidated statements of income.
Deferred income taxes are recorded based on the asset andliability method to reflect the impact of temporary differences
between assets and liabilities recognized for financial reporting

32 ADK Annual Report 2004

purposes and such amounts recognized for tax purposes. Thesedeferred taxes are measured by applying enacted tax laws to thetemporary differences, which will be in effect when the differences
are expected to reverse.
l. Appropriations of Retained Earnings
Appropriations of retained earnings at each year end are reflectedin the consolidated financial statements for the following year
upon shareholders' approval.
m. Foreign Currency Transactions
Short-term and long-term monetary receivables and payables
denominated in foreign currencies are translated into Japanese
yen at the exchange rates at the balance sheet dates. The foreignexchange gains and losses from translation are recognized in the
consolidated statements of income to the extent that they are nothedged by foreign exchange derivatives.
n. Foreign Currency Financial Statements
Both balance sheet accounts and revenue and expense items ofthe consolidated overseas subsidiaries and affiliated companies
are translated into Japanese yen at the current exchange rates asof the balance sheet dates except for shareholders' equity, which
is translated at historical exchange rates.
Differences arising from such translation are shown as“Foreign currency translation adjustments” in separate componentof shareholders’ equity.
o. Derivatives and Hedging Activities
The Group uses derivative financial instruments to manage their
exposures to fluctuations in foreign exchange. Foreign exchange
forward contracts are utilized by the Group to reduce foreign
currency exchange risks. The Group does not enter into
derivatives for trading or speculative purposes.
Derivatives are recognized as either assets or liabilities at fairvalue and gains or losses on derivative transactions arerecognized in the consolidated statements of income unlessderivatives are accounted for under the hedge accounting.
Short-term receivables and payables denominated in foreign
currencies for which foreign exchange forward contracts are used
to hedge foreign currency fluctuations are translated at thecontracted rate if the forward contracts qualify for specific hedge
accounting.
p. Per Share Information
The computation of net income per common share is based on
the weighted average number of shares outstanding during eachyear. The average number of common shares used in thecomputation was 49,285,820 shares for the fiscal year ended
December 31, 2004 and 49,525,864 shares for the fiscal year
ended December 31, 2003, respectively.
Cash dividends per common share presented in theaccompanying consolidated statements of income are dividends
applicable to the respective years including dividends to be paid
after the end of the year.
The calculation of dilution is not applicable because of thenon existence of dilutive factor such as convertible bonds orbonds with warrants.
q. Impairment of Fixed Assets
From the fiscal year ended December 31, 2004, the Company

adopted a new accounting standard for the impairment of fixed
assets which required that tangible and intangible fixed assets be
carried at cost less depreciation, and be reviewed for impairment
whether events or changes in circumstances indicated that thecarrying amount of assets may not be recoverable. The Company
is required to recognize an impairment loss in their statements ofincome or operations if certain indicators of asset impairment exist
and if the book value of an asset exceeds the undiscounted sumof the future cash flows. The standard states that impairment
losses should be measured as the excess of the book value overthe higher of (1) the fair market value of the asset, net of

disposition costs, and (2) the present value of future cash flows
arising from ongoing utilization of the assets and from disposal of
the asset after use. The standard covers land, factories, buildings
and other forms of property, plant and equipment as well as
intangible assets. Fixed assets are to be grouped at the lowest
levels for which there are identifiable cash flows independent of
the cash flows from other groups of assets.
The effect of the adoption of this new accounting standard
was to decrease income before income taxes by ¥579 million($5,556 thousand) for the year ended December 31, 2004.

3. MARKETABLE AND INVESTMENT SECURITIESThe carrying amount and aggregate fair value of the securities classified as available-for-sale at December 31, 2004 and 2003 were as follows:
Millions of yen

2004

Cost

Available-for-sale:
Equity securities
Debt securities
Other
Total

¥34,771
8,011
1,602¥44,384

2003

Cost

Available-for-sale:
Equity securities
Debt securities
Other
Total

¥32,530
4,548
2,343¥39,421

2004

Cost

Unrealized gains

Unrealized losses$333,663
76,874
15,372$425,909$221,457
690
3,944$226,091$4,184
3,272
585$8,041

Available-for-sale:
Equity securities
Debt securities
Other
Total

Unrealized gains

Unrealized losses¥23,078
72
411¥23,561

¥436
341
61
¥838

Fair value¥57,413
7,742
1,952¥67,107

Millions of yen
Unrealized gains

Unrealized losses¥18,236101
287¥18,624

¥304
68
101
¥473

Fair value¥50,4624,581
2,529¥57,572

Thousand of U.S. dollars
Fair value$550,936
74,292
18,731$643,959

Available-for-sale securities whose fair values are not readily determinable as of December 31, 2004 and 2003 were as follows:
Thousand of U.S.
dollars

Millions of yen

Carrying amount

2004

2003

2004

Available-for-sale:Non-listed equity securities
Money management funds
Free financial funds
Other
Total

¥ 1,623
2,046
7,558
102
¥11,329¥ 1,897
1,719
9,057
102
¥12,775$ 15,574
19,63372,527979$108,713

Total sales of available-for-sale securities sold in the year ended
December 31, 2004 and 2003 amounted to ¥5,464 million($52,433 thousand) and ¥6,495 million and the related gains

amounted to ¥683 million ($6,554 thousand) and ¥708 million, andthe related losses amounted to ¥8 million ($77 thousand) and ¥33
million, respectively.

ADK Annual Report 2004 33

4. SHORT-TERM AND LONG-TERM DEBT
The weighted average annual interest rates applicable to the short-term debt were 1.82% and 2.55 % at December 31, 2004 and 2003,
respectively.
Long-term debt at December 31, 2004 and 2003 consisted of the following:Thousands of U.S.
dollars

Millions of yen

0.58% bonds due on October 10, 2007
0.59% bonds due on March 12, 2004
Secured loans due through 2010 with weighted averageinterest rates of 2.52 % in 2004 and 1.81% in 2003
Amount due within one year
Total

2004
¥ 500
—

2003
¥ 500
200

2004
$ 4,798
—

596
(368)
¥ 728

620
(260)
¥1,0605,719(3,531)$ 6,986

Millions of yen

Thousands of U.S.
dollars

Annual maturities of long-term debt at December 31, 2004, were as follows:Year Ending December 31

2005
2006
2007
2008
2009

¥ 368
66
552
48
62

$ 3,531
633
5,297
461
595

Total

¥1,096$10,517

The carrying amounts of assets pledged as collateral for short-term debt of ¥368 million ($3,531 thousand) and long-term debt of ¥228 million($2,188 thousand) at December 31, 2004, were as follows:
Millions of yen

Thousands of U.S.
dollars

Time deposit
Land, Property and equipment—
net of accumulated depreciation
Investment securities¥ 437$ 4,193

595
149

5,710
1,430

Total

¥1,181$11,333

5. RETIREMENT BENEFITS AND PENSION PLANS
Prior to December 31, 2004, the Company and its certain
consolidated subsidiaries provided two types of post-employment
benefit plans, unfunded lump-sum payment plans and funded
non-contributory pension plans, under which all eligible
employees were entitled to benefits based on the level of salaries
at the time of retirement or termination, length of service andcertain other factors. At the end of 2004, the Company reformed

its retirement benefits and pension plans and adopted a defined
contribution pension plan and a cash balance plan. The unfunded
lump-sum payment plan and the funded non-contributory pension
plan were abolished instead. In addition, employees who resign
voluntarily under the Company's Early Retirement Program may
be entitled to additional retirement benefits.

The liability for employees’ retirement benefits and pension plans at December 31, 2004 and 2003 consisted of the following:
Millions of yen

Projected benefit obligation
Fair value of plan assets
Unrecognized actuarial differences
Prepaid pension cost
Net liability for retirement benefits

34 ADK Annual Report 2004

2004
¥10,181(3,950)(1,507)—¥ 4,724

2003¥13,309(7,443)(2,584)570¥ 3,852

Thousands of U.S.
dollars

2004$ 97,697(37,904)(14,461)—$ 45,332

The components of net periodic benefit costs for the years ended December 31, 2004 and 2003 were as follows:
Thousands of U.S.
dollars

Millions of yen

Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial differences
Contributions paid during the period, etc.
Net periodic benefits costs

2004
¥ 971
250
(78)
227
508
¥1,878

2003
¥ 924
287
(67)
245
365
¥1,754The effects of the reformation of the retirement benefits and pension plans, included in other income, were as follows:
Decrease in projected benefit obligation
Prior service cost charged to income
Actuarial differences expensed due to reformation
Decrease in accrued retirement benefit
The discount rates used by the Group are 2.0% as of theyears ended December 31, 2004 and 2003. The rates of expected
return on plan assets used by the Group are 1.5% for the years
ended December 31, 2004 and 2003. The estimated amount of
retirement benefits to be paid at the future retirement date is2004$ 9,318
2,399
(749)
2,178
4,875
$18,021

Millions of yen

Thousands of U.S.
dollars¥1,154
(345)
(584)
¥ 225

$11,074(3,311)(5,604)$ 2,159

allocated equally to each service year over the estimated numberof total service years. Unrecognized actuarial net gains and losses
are amortized over 13 years on a straight-line basis commencing
from the succeeding period. Prior service costs are charged toincome when incurred.

6. SHAREHOLDERS’ EQUITY
Under the Commercial Code of Japan, the entire amount of theissue price of shares is required to be accounted for as common
stock, although a company may, by resolution of its Board of
Directors, account for an amount not exceeding one-half of theissue price of the new shares as additional paid-in capital.
The Japanese Commercial Code provides that an amountequal to at least 10% of cash dividends and other cash
distribution shall be appropriated and set aside as a legal reserve
until the sum of legal reserve and additional paid-in capital equals
to 25% of common stock. The legal reserve and additional paid-in
capital may be used to eliminate or reduce deficit by resolution of
the shareholders meeting or may be capitalized by resolution of

the Board of Directors. On condition that the total amount of legal
reserve and additional paid-in capital exceeds 25% of common
stock, the excess is available for distributions and other certain
purposes by resolution of the shareholders meeting. The legal
reserve is included in retained earnings in the accompanying
consolidated financial statements.
Dividends are approved by the shareholders at a meeting held
subsequent to the fiscal year to which the dividends areapplicable. Semiannual interim dividends may also be paid upon
resolution of the Board of Directors, subject to certain limitations
imposed by the Code.

7. INCOME TAXESThe Company and its domestic consolidated subsidiaries are
subject to corporate, inhabitant and enterprise taxes based on
income. Normal effective statutory tax rates for these taxes in theaggregate resulted in approximately 42.05% for both 2004 and2003, after reflection of enterprise tax, in the way such tax should
be deductible for tax purposes only when paid. Overseas
subsidiaries are subject to income taxes of the countries in which
they operate.

ADK Annual Report 2004 35

The deferred tax assets and liabilities as a result of the tax effects of significant temporary differences as of December 31, 2004 and 2003
were as follows:
Thousands of U.S.
dollars

Millions of yen

2004

2003

2004

¥ 971
789
751
1,652
587
20
1,177
5,947

¥1,389
982
450
1,933
375
55
733
5,917

$ 9,318
7,571
7,207
15,853
5,633
192
11,29357,067

Valuation allowance

(500)

(208)

(4,798)Deferred tax assets

5,447

5,709

52,269Deferred tax liabilities:
Marketable and investment securities
Deferred tax liabilities in overseas consolidated subsidiaries (* Note)
Other

9,214
8
152

7,347
39
250

88,41877
1,458

Deferred tax liabilities

9,374

7,636

89,953Net deferred tax liabilities¥3,927¥1,927$37,684

Deferred tax assets:
Marketable and investment securities
Allowance for doubtful receivables
Accrued bonus
Accrued retirement benefits
Tax loss carry forwards
Deferred tax assets in overseas consolidated subsidiaries (* Note)
Other* Note The deferred tax assets and liabilities as results of the tax effects of significant temporary differences and loss carry forward as ofDecember 31, 2004 and 2003, in overseas consolidated subsidiaries were as follows:
Thousands of U.S.
dollars

Millions of yen

2004

2004

2003

Deferred tax assets:
Tax loss carry forwards
Other
Less valuation allowance
Deferred tax assets

¥ 13
46
(39)
20

¥ 25
85
(55)
55

$ 125
441
(374)
192

Deferred tax liabilities—Other

8

39

77

Deferred tax liabilities

8

39

77

Net deferred tax assets

¥ 12

¥ 16

$ 115

Reconciliation between the normal effective statutory tax rate for the years ended December 31, 2004 and 2003, and the actual effective
tax rates reflected in the accompanying consolidated statements of income were as follows:
2003
2004
Normal effective statutory tax rate
42.05%
42.05%
Certain expenses permanently not deductible for tax purposes
5.31
7.05
Certain income permanently not taxable for tax purposes(0.99)(1.35)Per capita levy
0.30
0.36
Effect of tax rate change—
2.18
Other—net(2.12)(0.24)
Actual effective tax rate

36 ADK Annual Report 2004

44.55%

50.05%

Effective for years commencing on January 1, 2005 or later,according to the revised local tax law, the income tax rate forenterprise taxes will be reduced as a result of introducing theassessment by estimation on the basis of the size of business.
Based on the change of income tax rates, for calculation ofdeferred income tax assets and liabilities, the Company andconsolidated domestic subsidiaries used the aggregate statutory

income tax rates of 42.05% and 40.09% for current and noncurrent items, respectively, at December 31, 2003. As a result of
this change, the amount of deferred tax assets decreased by ¥8
million, the amount of deferred tax liabilities decreased by ¥127
million, the amount of income taxes - deferred increased by ¥162
million and the amount of net unrealized holding gain on
securities, net of taxes increased by ¥281 million in 2003.

8. RESEARCH AND DEVELOPMENT COSTS
Research and development costs charged to income for the year ended December 31, 2004 and 2003 were ¥1,093 million ($10,488
thousand) and ¥961 million, respectively.

9. LEASES
The Group leases certain computer equipment, office space,vehicles and other assets. Total lease payments under financelease agreements that do not cause transfer of ownership of theleased property to the lessee for the years ended December 31,
2004 and 2003 were ¥827 million ($7,936 thousand) and ¥ 933
million, respectively.

Pro forma information of leased property such as acquisition
cost, accumulated depreciation, obligations under finance leases,
depreciation expense, and interest expense of finance leases that
do not cause transfer of ownership of the leased property to thelessee on an "as if capitalized" basis for the years ended
December 31, 2004 and 2003, were as follows:

Millions of yen

Year Ended December 31, 2004

Furnitureandequipment

MachineryandvehicleSoftwareTotal

Acquisition cost
Accumulated depreciation¥3,252
1,866

¥37
17

¥266
193

¥3,5552,076

Net leased property¥1,386¥20¥ 73¥1,479Obligations under finance leases:
Millions of yen

Due within one year
Due after one year

¥ 655
853

Total

¥1,508

Thousands of U.S. dollars

Year Ended December 31, 2004

Furnitureandequipment

MachineryandvehicleSoftwareTotal

Acquisition cost
Accumulated depreciation$31,206
17,906$355
163$2,553
1,852$34,114
19,921

Net leased property$13,300

$192

$ 701

$14,193

Obligations under finance leases:

Thousands of
U.S. dollars

Due within one year
Due after one year

$ 6,285
8,186

Total

$14,471

ADK Annual Report 2004 37

Millions of yen
Furnitureandequipment

Year Ended December 31, 2003

MachineryandvehicleSoftwareTotal

Acquisition cost
Accumulated depreciation¥3,408
1,474

¥36
20

¥326
167

¥3,770
1,661

Net leased property¥1,934¥16¥159¥2,109Obligations under finance leases:
Millions of yen

Due within one year
Due after one year

¥767
1,376

Total

¥2,143

Depreciation expense and interest expense under finance leases:
Thousands of U.S.
dollars

Millions of yen

2004
¥ 789
36

Depreciation expense
Interest expense
Depreciation expense and interest expense, which are notreflected in the accompanying consolidated statements of income

2003
¥881
56

2004
$7,571345

and retained earnings, are computed by the straight-line method
and the interest method, respectively.

Obligations under operating leases:
Thousands of U.S.
dollars

Millions of yen

Due within one year
Due after one year
Total

2004
¥10
11

2003
¥ 9
10

2004
$ 96
106

¥21

¥19

$202

10. CONTINGENT LIABILITIESAs of December 31, 2004, the Group had the following contingent liabilities:
Millions of yen

Thousands of U.S.
dollars

Trade notes discounted¥ 307$ 2,946

Aggregated amount of guarantees of debt for affiliates

2,830

27,157

Total¥3,137$ 30,103

11. DERIVATIVESThe Group enters into foreign exchange forward contracts tohedge foreign exchange risk associated with certain assets andliabilities denominated in foreign currencies. The Group does nothold or issue derivatives for trading or speculative purposes.
Because the counterparties to these derivatives are limited tomajor sound financial institutions, the Group does not anticipate
any losses arising from credit risk.

38 ADK Annual Report 2004

Derivative transactions entered into by the Group have been
made in accordance with internal rules and policies which regulate
the authorization and exposure limit amount.
The notional amounts, fair values and unrealized gain and loss
on derivatives at December 31, 2004 and 2003 were summarized
as follows:Millions of yen

Year Ended December 31, 2004

Notional amounts

Currency:
Foreign exchange forward contracts- buying (US$)- selling (US$)
Swaps (unlisted)
Total
Interest rate:
Swaps (unlisted)

Due after
one year

Fair value

Unrealized gain
(loss)

¥ 203
309
1,417

¥ 135
309
1,417

¥177
302
(26)

¥(24)
6
(26)
¥(44)

¥1,000¥1,000¥ (20)¥(20)

Thousands of U.S. dollars

Year Ended December 31, 2004
Currency:
Foreign exchange forward contracts- buying (US$)- selling (US$)
Swaps (unlisted)
Total
Interest rate:
Swaps (unlisted)

Notional amounts

Due after
one year

Fair value

Unrealized gain
(loss)$ 1,948
2,965
13,598$ 1,295
2,965
13,598$1,6982,898(249)$(230)
58(250)$(422)$ 9,596$ 9,596$ (192)$(192)

Millions of yen

Year Ended December 31, 2003

Notional amounts

Foreign exchange forward contracts- buying (US$)
Currency swaps (unlisted)
Total

¥ 270
1,417

Due after
one year

¥ 203
1,417

Fair value

¥ 244
1,391

Unrealized gain
(loss)

¥(25)
(26)
¥(51)

Derivative transactions which were accounted for by hedge accounting were excluded.

12. IMPAIRMANT OF FIXED ASSETSAs described in Note 2(q), the Company and its consolidated subsidiaries adopted the accounting standard for impairment of fixed assets.
The following table is a summary of impairment losses for the year ended December 31, 2004:
Millions of yen

Building and structuresLand

The Company and its domestic subsidiaries grouped their fixed
assets based on business segments except for assets held for leaseand unutilized assets, which were grouped on each asset basis.
The recoverable amounts of the fixed assets are the larger of
their net realizable values or the present value of expected future

¥113
466
¥579

Thousands of U.S.
dollars$1,084
4,472$5,556

cash flows from ongoing utilization and subsequent disposition of
the assets after use, except for unutilized assets, for which net
realizable values are used as recoverable amounts. Net realizablevalues are determined under reasonable valuation measures suchas real estate appraisal standards, etc.

ADK Annual Report 2004 39

13. SUBSEQUENT EVENT
The following appropriations of retained earnings for the year ended December 31, 2004, were approved at the Company's shareholders’meeting held on March 30, 2005:
Millions of yen

Thousands of U.S.
dollars

Year-end cash dividends, ¥ 11 per share¥ 533$ 5,114

Bonuses to directors
Transfer to general reserve

70
3,500

672
33,586

Total¥4,103$39,372

14. SEGMENT INFORMATION
Information about business segments, geographic segments and billings to foreign customers of the Group for the years ended December 31,
2004 and 2003, is as follows:(1) Business Segment Information
Business segment information for the year ended December 31, 2004 and 2003 was as follows:a. Billings and Operating Income
Millions of yen

2004

Advertising

Billings to customers
Inter-segment billings¥403,758
439¥10,14089¥413,898
528—¥(528)¥413,898—

Total billings

404,197

10,229414,426(528)

413,898

Operating expenses

395,956

10,208406,164(526)

405,638

Operating income

¥

¥

¥

¥

¥

2003

Advertising

Billings to customers
Inter-segment billings¥384,829
487¥10,3208¥395,149
495—¥(495)¥395,149—

Total billings

385,316

10,328395,644(495)

395,149

Operating expenses

379,317

9,930

389,247(514)

388,733

Operating income

¥

¥

¥ 19

¥

8,241

Non-advertising

21

Eliminations
or corporate

Total

8,262

(2)

Consolidated

8,260

Millions of yen

5,999

Non-advertising¥

398

Eliminations
or corporate

Total

6,397

Consolidated

6,416

b. Assets, Depreciation and Capital Expenditures
Millions of yen

2004

Advertising

AssetsDepreciation
Capital expenditures¥228,577
1,293
574

2003

Advertising

AssetsDepreciation
Capital expenditures¥216,696
1,370
977

40 ADK Annual Report 2004

Non-advertising¥10,47140
42

Eliminations
or corporate

Total¥239,048
1,333
616¥(148)——

Consolidated¥238,900
1,333
616

Millions of yen
Non-advertising¥10,451
38
26

Total

¥227,147
1,408
1,003

Eliminations
or corporate¥(236)——

Consolidated¥226,911
1,408
1,003

a. Billings and Operating Income
Thousands of U.S. dollars

2004

Advertising

Non-advertising

Total

Eliminations
or corporate

Consolidated

Billings to customers
Inter-segment billings$3,874,465
4,213$97,304854$3,971,769
5,067—$(5,067)$3,971,769—

Total billings

3,878,678

98,1583,976,836(5,067)

3,971,769

Operating expenses

3,799,597

97,956

3,897,553(5,047)

3,892,506

Operating income

$

$

$

$

$

79,081

202

79,283(20)

79,263b. Assets, Depreciation and Capital Expenditures
Thousands of U.S. dollars

2004
AssetsDepreciation
Capital expenditures

Advertising

Non-advertising

Total$2,193,427
12,4085,508$100,480
383
403$2,293,907
12,791
5,911

Eliminations
or corporate$(1,421)——

Consolidated$2,292,486
12,791
5,911

Note: 1.

The Group is engaged primarily in advertising business. The two business segments, namely, advertising services and nonadvertising, consist primarily of the following services:
Advertising services: Planning, creating, producing and placing advertising in various media such as television, radio, newspapers,
magazines, public transportation, billboards, and digital media. Additional services such as marketing andbranding consultation, design and production of sales promotion programs, and event marketing.
Non-advertising:Publishing and selling of magazines and books and information processing service.
2. Consolidated operating expenses are equal to the total of cost of sales and selling, general and administrative expenses shown in
the accompanying consolidated statements of income and retained earnings.

(2) Geographic Segment Information
Because the billings and total assets of the foreign operations of
the Group for the years ended December 31, 2004 and 2003 areless than 10% of those of the total consolidated operation, suchsegment information is not presented.

(3) Billings to Foreign Customers
Since the billings to foreign customers of the Group for the years
ended December 31, 2004 and 2003, are less than 10% of thetotal consolidated billings, such information is not presented.

ADK Annual Report 2004 41

Independent Auditor’s Report

The Board of Directors
Asatsu-DK Inc.:
We have audited the accompanying consolidated balance sheets of Asatsu-DK Inc. and consolidated
subsidiaries as of December 31, 2004 and 2003, and the related consolidated statements of income,shareholders’ equity and cash flows for the years then ended, all expressed in Japanese yen. These
consolidated financial statements are the responsibility of the Company’s management. Our responsibility is toindependently express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in Japan. Thosestandards require that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the consolidated financial position of Asatsu-DK Inc. and consolidated subsidiaries as of December
31, 2004 and 2003, and the consolidated results of their operations and cash flows for the years then ended,in conformity with accounting principles and practices generally accepted in Japan.
As described in Note 2, Asatsu-DK Inc. adopted a new accounting standard for impairment accounting for
fixed assets from the fiscal year ended December 31, 2004.
Our audit also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our
opinion, such translation has been made in conformity with the basis stated in Note 1. Such U.S. dollar
amounts are presented solely for the convenience of readers outside Japan.

Yasumori Audit Corporation
Certified Public Accountants
March 30, 2005

42 ADK Annual Report 2004

Securities Holdings

Asatsu-DK Inc. and Consolidated Investments as of December 31, 2004
Millions of yen

2004

Current

Money management funds
Free financial funds
Discount Nochu Bank debentures
Bonds
Mutual funds in equities and bonds
Total¥ 2,046
7,558
128
549
96
¥10,377

Non current WPP Group plc.
Digital Advertising Consortium,Inc.
Other publicly traded equities
Total publicly traded equities¥35,831
1,794
21,583¥59,208

2.64% or 31,295,646 stocks
Equity Method
169 issues

Non publicly traded equities in affiliated companies
Non publicly traded equities in subsidiary sompanies
Other non publicly traded equities
Total non publicly traded equities¥ 4,126541
1,624¥ 6,291

16 issues
26 issues
80 issues

Bonds
Mutual funds in equities and bonds¥ 7,167
1,854

28 issues
24 issues

Total non current investments in securities¥74,520

Investments in affiliated companies (Non-Securities)
Investments in funds (Non-Securities)
Total non current investments

Top five equities by balance including WPPWPP Group plc.
Millea Holdings, Inc.
Digital Advertising Consortium, Inc.
Omnicom Group Inc.
Mitsubishi Tokyo Financial Group, Inc.

130
823

Face Value
4 funds
3 funds

5 funds
11 funds¥75,473

Millions of yen

2004¥35,831
2,934
1,794
1,757
1,643

31,295,646 shares
1,930 shares
65,088 shares
200,040 shares
1,580 shares

ADK Annual Report 2004 43

ADK Group Network

DOMESTIC
AGENCY GROUPADK International Inc. … ■7-1, Tsukiji 4-chome,
Chuo-ku, Tokyo, 104-0045
TEL: 81(0)3-3546-9100
FAX: 81(0)3-3546-9208
Kyowa Kikaku Ltd. … ■20-15,Shimbashi 2-chome,
Minato-ku,
Tokyo, 105-0004
TEL: 81(0)3-3571-3111
FAX: 81(0)3-3571-3314
TRI Communication Inc. … ■9-9, Tsukiji 3-chome, Chuo-ku, Tokyo,
104-0045
TEL: 81(0)3-3547-5151
FAX: 81(0)3-3547-5152
Digital Advertising Consortium Inc. … ❑20-3, Ebisu 4-chome, Shibuya-ku, Tokyo,150-6033
TEL: 81(0)3-5449-6200
FAX: 81(0)3-5449-6201
Drill Inc.
19-5, Udagawa-cho, Shibuya-ku, Tokyo,
150-0042
TEL: 81(0)3-5428-8771
FAX: 81(0)3-5428-8772
CREATIVE GROUPADK Arts Inc. … ■13-1, Tsukiji 1-chome, Chuo-ku,
Tokyo, 104-0045
TEL: 81(0)3-3545-5400
FAX: 81(0)3-3545-5075
CONTENT GROUP
Nihon Ad Systems Inc.
13-1, Tsukiji 1-chome, Chuo-ku,
Tokyo, 104-0045
TEL: 81(0)3-3547-2183
FAX: 81(0)3-3545-2098
Right Song Music Publishing Co., Ltd.
13-1, Tsukiji 1-chome, Chuo-ku,
Tokyo, 104-0045
TEL: 81(0)3-3547-2184
FAX: 81(0)3-3547-2098
Eiken Co., Ltd. … ■56-7, Minamisenjyu 6-chome, Arakawa-ku,
Tokyo, 116-0003
TEL: 81(0)3-3802-3011
FAX: 81(0)3-3807-6205
44 ADK Annual Report 2004

Super Vision, Inc.
13-1, Tsukiji 1-chome, Chuo-ku, Tokyo,
104-0045
TEL: 81(0)3-3547-2591
FAX: 81(0)3-3547-2098

Frankfurt
Asatsu (Deutschland) GmbH … ■Zeppelinalle 77a 60487, Frankfurt am Main,
Germany
TEL: 49-6970-799-210
FAX: 49-6970-799-190

PUBLISHING GROUP
Nihonbungeisha Co., Ltd. … ■1-7, Kanda-Jimbo-cho, Chiyoda-ku,
Tokyo, 105-8407
TEL: 81(0)3-3294-7771
FAX: 81(0)3-3294-7780

Paris
ADK France S.A.S.
352 Rue Saint-Honore 75001, Paris, France
TEL: 33-1-5345-3450
FAX: 33-1-5345-3455
ASIA

Neo Shobo Inc. … ■6-7, Shimbashi 1-chome, Minato-ku,
Tokyo, 105-0061
TEL: 81(0)3-3573-1277
FAX: 81(0)3-3574-8165
OTHERS
Nippon Information Industry Corp. … ❑1-4, Shibuya 3-chome, Shibuya-ku, Tokyo,
150-0002
TEL: 81(0)3-3409-9411
FAX: 81(0)3-3407-8735

OVERSEASNORTH AMERICA
Los Angeles
ADK America Inc. … ■970 W. 190th St. #710 Torrance, CA,90502, U.S.A.
TEL: 1-310-630-3600
FAX: 1-310-630-3620
New York
ADK America Inc. New York Office
515 West 20th St., 6F, New York,
N.Y. 10011, U.S.A.
TEL: 1-646-284-9800
FAX: 1-646-284-9825
EUROPE
Amsterdam
ADK Europe B.V. … ■Emmastraat 36-38, 1075 HW, Amsterdam,
The Netherlands
TEL: 31-20-799-3500
FAX: 31-20-799-3501
Knots Europe B.V.
Jadelaan 50b 2130 AS Hoofddorp,
The Netherlands
TEL: 31-23-554-3554
FAX: 31-23-554-3553

Beijing
Beijing Huawen-Asatsu International
Advertising Co., Ltd.
Rm. 1801, Golden Land Building, No. 32,
Lianmaqiao Road, Chao Yang District,
Beijing, 100016, P.R.C.
TEL: 86-10-6464-0088
FAX: 86-10-6464-3889
Tiexu Advertising Co., Ltd.
12A05, No. 127,
Xuanwumen West Street, Xicheng District,
Beijing, 100031, P.R.C.
TEL: 86-10-6642-2036
FAX: 86-10-6642-2030
DS Public Relations Consulting Co., Ltd.
Rm. 828, Beijing Capital Times Square,No. 88 Xichang’an Ave.,
Beijing, 100031, P.R.C.
TEL: 86-10-8391-3389
FAX: 86-10-8391-3399
Beijing Dai-Ichi Kikaku AdvertisingCo., Ltd.
C-3 Huitong Office Park No. 71, Jianguo
Road, Chaoyang District, Beijing, 100025,
PRC.
TEL: 86-10-8599-7788
FAX: 86-10-8599-7579
Shanghai
Shanghai Asatsu Advertising Co.,
Ltd. … ❑10F Yongxing Mansion, No. 887, Huaihai
Zhong Lu, Shanghai, 200020, P.R.C.
TEL: 86-21-6467-4118
FAX: 86-21-6474-7803
Shanghai Dai-Ichi Kikaku Fortune
Advertising Co., Ltd.
9F Yongxing Mansion, No. 887, Huaihai
Zhong Lu, Shanghai, 200020, P.R.C.
TEL: 86-21-6474-8908
FAX: 86-21-6474-8909

(As of April 2005)
Shanghai Advertising & Decorating Co.,Ltd.
3F Ju Lu Lu No. 417, Shanghai, 200020,
P.R.C.
TEL: 86-21-6272-0973
FAX: 86-21-6271-3651
Guangzhou
Guangdong Guangxu Asatsu
Advertising Co., Ltd. … ❑18F, Tower 4, Dong Jun Plaza, No. 836,
Dong Feng Road East, Guangzhou,
510080, P.R.C.
TEL: 86-20-8765-5611
FAX: 86-20-8761-7445
Shanghai Dai-Ichi Kikaku Fortune
Advertising Co., Ltd./Guangzhou Branch
Rm.5-6, 18F, Tower 3, Dong Jun Plaza,No.836 Dong Feng Road East,
Guangzhou, 510080, P.R.C.
TEL: 86-20-8387-8779
FAX: 86-20-8766-2066
ChengduShanghai Dai-Ichi Kikaku Fortune
Advertising Co., Ltd./Chengdu Branch
Unit D,11F Chuanxin Mansion, 18 Sec. 2,
Renmin S. Road, Chengdu, 610016 P.R.C.
TEL: 86-28-8619-9471
FAX: 86-28-8619-9475
Hong Kong
Asatsu-DK Hong Kong Ltd. … ■25F Leighton Centre, 77 Leighton Road,
Causeway Bay, Hong Kong
TEL: 852-2895-8111
FAX: 852-2576-3322
DK Advertising (HK) Ltd. … ■25F Leighton Centre, 77 Leighton Road,
Causeway Bay, Hong Kong
TEL: 852-2811-9999
FAX: 852-2811-9699
Taipei
United-Asatsu International Ltd. … ■13F No.287 Nanking E. Road Sec 3, Taipei
105, Taiwan, R.O.C.
TEL: 886-2-8712-8555
FAX: 886-2-8712-9555
DIK-Ocean Advertising Co., Ltd. … ■12F, No44. Zhong-Shan North Road,
Sec. 2, Taipei, Taiwan R.O.C.
TEL: 886-2-2536-3949
FAX: 886-2-2523-8874

Asachin International Inc.
4F, 80, Po-Ai Road., Taipei Taiwan, R.O.C.
TEL: 886-2-2389-0388
FAX: 886-2-2375-2762
BangkokAsatsu (Thailand) Co., Ltd.
24F., Sirinrat Bldg. 3388/86 Rama 4 Rd.
Klongton, Klongtoey Bangkok
10110, Thailand
TEL: 66-2-367-5951
FAX: 66-2-367-5952
Dai-Ichi Kikaku (Thailand) Co., Ltd. … ■23F, Shinawatra Tower III., 1011
Vibhavadi Rangsit Rd., Ladyao, Chatuchak,Bangkok 10900, Thailand
TEL: 66-2-949-2700
FAX: 66-2-949-2777
ASDIK Ltd. … ❑6F Shinawatra Tower III, 1010 Vibhavadi,
Rangsit Rd., Ladyao, Chatuchak, Bangkok
10900, Thailand
TEL: 66-2-949-2800
FAX: 64-2-949-2805

Singapore
Asatsu-DK Singapore Pte. Ltd. … ■1 Liang Seah Street, #02-05 Singapore
189022
TEL: 65-6333-5115
FAX: 65-6333-5225
IMMG Pte. Ltd.
5, Sheten Way, UIC Building #25-05,
Singapore 068808
TEL: 65-6323-9630
FAX: 65-6323-1172
Scoop AD World Pte. Ltd.
37 Beach Road, #2-02
Singapore 189678
TEL: 65-6336-2346
FAX: 65-6336-1982
Dubai
IMMG FZ LLC
Office 335-341, 3F Bldg 7, P. O. Box 53777
Dubai Media City (Phase 2), UAE
TEL: 971-4-390-2660
FAX: 971-4-390-4850

Kuala Lumpur
Asatsu-DK Malaysia Sdn. Bhd.
Level 18, Menara Merais, No.1, Jalan 19/3,
46300 Petaling Jaya, Selangor, Malaysia
TEL: 603-7954-0388
FAX: 603-7954-0266

New Delhi
Asatsu-DK Inc. New Delhi Liaison Office
Enkay Centre-Block A, Vanijya Nikunj
Commercial Complex, Udyog Vihar
Phasse-V Gurgaon 122106
TEL: 91-124-519-8430
FAX: 91-124-519-8454

Jakarta
PT. Asta Atria Surya
Wisma Bisnis Indonesia, Lantai 11 Jl. Let.
Jend. S. Parman Kav. 12
Jakarta 11480, Indonesia
TEL: 62-21-530-7155
FAX: 62-21-530-7156

ManilaAsatsu-DK Inc. Philippine Rep. Office
5A, Silvercord Tower, 803 S. Laurel St. Cor,
Shaw Blvd
Mandaluyong City, M. M., Philippines
TEL: 63-2-727-3800
FAX: 63-2-727-3400

PT. Perdana IMMG Indonesia
9F, Plaza DM Suite #901 Jl. Jend,
Sudirman Kav. 25
Jakarta 12920, Indonesia
TEL: 62-21-520-3551
FAX: 62-21-520-3552

Soeul
LG AD ADK Division
LG Twin Towers, 20, Yoido-dong,
Youngdungpo-gu, Seoul, 150-721 Korea
TEL: 82-2-780-7858
FAX: 82-2-786-1342

Ho Chi Minh
Asatsu-DK Vietnam Inc.
18F Sun Wah Tower, 115 Nguyen Hue
Blvd., District 1, HCM City, Vietnam
TEL: 84-8-821-9211
FAX: 84-8-821-9210… ■ Consolidated subsidiaries… ❑ Affiliates accounted for by the equity
methodADK Annual Report 2004 45

Investor Information(As of December 2004)
Parent company nameAsatsu-DK Inc.

EstablishedMarch 19, 1956

Head office13-1, Tsukiji 1-chome, Chuo-ku, Tokyo, 104-8172, Japan

Number of employees

2,784 (consolidated basis)
1,915 (non-consolidated basis)

Common stock

Authorized: 206,000,000 shares
Issued: 51,655,400 shares

Number of shareholders

14,527
Distribution by owners:
Treasury stock

6.18%

Securities companies

2.01%
Foreigners

Other domestic corporations 5.94%
Financial institutions

15.18%

Individual and others

22.03%

48.66%

Percentage of total shares issued

Major shareholders

WPP International Holding B.V.

20.00%

Northern Trust Company (AVFC) Sub Account American Client

3.35%

State Street Bank and Trust Company

3.20%

Masao Inagaki

3.17%

Mellon Bank Treaty Clients Omnibus

2.91%

The Master Trust Bank of Japan, Ltd. (trust a/c)

2.59%

Japan Trustee Service Bank, Ltd. (trust a/c)

2.37%

Northern Trust Company (AVFG) U.S. Tax-Exempted Pension Funds

1.94%

Nomura Securities Co., Ltd.

1.81%

The Master Trust Bunk of Japan, Ltd.
Retirement Benfit Trust Account (Mitsubishi Corporarion Account)

1.48%

Percentage of total shares issued

Stock listing

Tokyo Stock Exchange, First Section

Securities code

9747

Transfer agent

Tokyo Securities Transfer Agent Co., Ltd.
4-2, Marunouchi 1-chome, Chiyoda-ku,
Tokyo, 105-0005, Japan

Annual meeting

The annual meeting of shareholders is normallyheld in March in Tokyo, Japan.

For further information

Asatsu-DK Inc. Public Relations Room
TEL: +81-3-3547-2003
URL: http://www.adk.jp/english/index.html

46 ADK Annual Report 2004