Member of the Financial Accounting Standards Foundation(Note) This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

Summary of Consolidated Financial Statements
for the First Half of the Year Ending June 30, 2012 [Japan GAAP]
February 10, 2012
Listed Company:
Stock Exchange:
Code Number:
URL:
Representative:
Contact:
Tel.:
Scheduled date of the filing of quarterly report:
Scheduled date of the start of dividend payments:
Supplemental materials for quarterly financial results:
Presentation of quarterly financial results:

MACROMILL, INC.
Tokyo Stock Exchange3730
http://www.macromill.com/
Tetsuya Sugimoto, Chairman and President
Yasuhiro Kihara, Senior Executive Officer and Chief Financial Officer+81-3-6716-0700
February 14, 2012
March 19, 2012
Yes
Yes (for securities analysts and institutional investors)(Figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the First Half of the Year Ending June 30, 2012 (July 1, 2011 to December 31, 2011)(1) Consolidated Business Performance(Percentages calculated on year-on-year basis.)

Net sales

Operating income

Million yen

First half of year ending June 2012
First half of year ended June 2011
(Note) Comprehensive income%

Million yen

6,802

8.3

1,547

6,283

77.4

1,425

Ordinary income%

First half of year ending June 2012
First half of year ended June 2011

Net income

Million yen

8.5

1,577

62.4

1,455

745 million yen
697 million yen%

Million yen

%

8.4

799

15.8

67.9

690

17.4

6.9%
–%

Diluted net income
per share

Net income per share
Yen

Yen

First half of year ending June 2012

27.22

23.07

First half of year ended June 2011

22.79

22.66

(Note) The Company carried out a 200-for-1 stock split for its common shares, effective on January 1, 2011.
The figures for the first half ended December 31, 2010 are calculated under assumption that the stock split was carried out at the beginning of the term.

(2) Consolidated Financial Position
Total assets

Net assets

Million yen

First half of year ending June 201218,159Year ended June 30, 2011

13,931(Reference) Shareholders’ equity

Shareholders' equity ratio

Million yen

First half of year ending June 2012
First half of year ended June 2011%

10,20955.0

11,161

78.2

9,989 million yen
10,893 million yen

2. Dividends
Dividend per share
End of 1stquarter

Record date

End of 2ndquarterYen

End of 3rdquarter

Yen

Year end

Yen

Year ended June 30, 2011

–

10.00

–

Year ending June 30, 2012

–

10.00

–

Year ending June 30, 2012
(forecast)–

Annual

Yen

Yen

9.00

19.00

13.00

23.00

(Note) Revis ions to the dividend forecast published most recently: Yes(Note) The Company carried out a 200-for-1 stock split for its common shares, effective on January 1, 2011. The figures above are calculated based on the number of shares
after the stock split.

3. Forecast of Consolidated Financial Results for the Year Ending June 30, 2012 (July 1, 2011 to June 30, 2012)(Percentages calculated on year-on-year basis.)

Net sales

Operating income

Million yen

Full year

14,200%

16.3

Million yen

2,900

Ordinary income%

11.4

Million yen

2,900(Note) Revis ions to the forecast of consolidated financial results published most recently: No

Net income%

15.0

Net income per share

Million yen

1,500

%

28.1

Yen

49.30

4. Others(1) Important changes in subsidiaries during this period (changes in specific subsidiaries accompanied by a change in the scope of consolidation): No
New:–
Exception:–(Note) This refers to any changes in specific subsidiaries accompanied by a change in the scope of consolidation during this period.

(2) Application of simplified accounting method and accounting methods unique to the preparation of quarterly consolidated financial statements: No(Note) This refers to adoption of simplified accounting methods or accounting methods unique to the preparation of consolidated financial statements .

(3) Changes in accounting principles and procedures and the representation method relating to the preparation of consolidated financial statements(included in Changes in Important Items, Etc. That Are Used as Basic Materials for Preparation of Consolidated Financial Statements)(i) Changes due to amendment of accounting standards, etc.:
Yes(ii) Changes other than (i):No
(iii) Changes in accounting assumptions:No(iv) Restatement:
No(Note) This refers to any changes in accounting principles, procedures, or representation method of the accounting methods for the preparation of quarterly consolidated
financial statements included in “Changes in Important Items, Etc. That Are Used as Basic Materials for Preparation of Consolidated Financial Statements.”(4) Number of shares outstanding (common stock)(i) Number of shares issued (including
treasury stock) at the end of the term:(ii) Number of shares of treasury stock at theend of the term:(iii) Average number of shares during theperiodDecember 31, 2011

30,815,200 shares

December 31, 2011
First half ended
December 31, 2011

June 30, 2011

32,315,600 shares

1,847,900 shares

June 30, 2011

1,774,200 shares

29,380,185 sharesFirst half ended
December 31, 2010

30,305,373 shares* Disclosure on Quarterly Review ProceduresThis summary of consolidated financial statements is not subject to quarterly review procedures based on the Financial Instruments and Exchange Act.
The quarterly review procedures for the financial statements are in progress at the time of disclosure of this report.
* Note regarding proper use of results forecasts and other special comments(Note regarding forward- looking statements)
The forward- looking statements, such as results forecasts, included in this document are based on information available to management as of the date ofthe document and certain assumptions that management considers reasonable. Actual results may differ significantly due to a range of factors.
The Company carried out a 200- for-1 stock split for its common shares, effective on January 1, 2011.

Accompanying Materials ― Contents
1. Qualitative Information on First Half Results(1)

Qualitative information on consolidated business performance ...................................................................................... 2(2)

Qualitative information on consolidated financial position ............................................................................................ 3(3)

Qualitative information on consolidated results forecast................................................................................................ 4

2. Matters Relating to Summary Information (Other)(1) Changes in significant subsidiaries during the period ................................................................................................... 4(2)(3)

Application of simplified accounting treatment and special accounting treatment ........................................................... 4
Changes in accounting principles and changes or restatement of accounting estimates .................................................... 4

3. Significant Events regarding the Premise of a Going Concern ................................................................................................. 44. Quarterly Consolidated Financial Statements ......................................................................................................................... 5(1)

Quarterly consolidated balance sheets ......................................................................................................................... 5(2)

Quarterly consolidated statements of income and consolidated statements of comprehensive income ................................ 7
Quarterly consolidated statements of income
Consolidated first half of the fiscal year....................................................................................................................... 7
Quarterly consolidated statements of comprehensive income
Consolidated first half of the fiscal year....................................................................................................................... 8

(3)
(4)

Quarterly consolidated statement of cash flow.............................................................................................................. 9
Notes regarding the premise of a going concern ......................................................................................................... 11(5)

Segment information ............................................................................................................................................... 11

(6)
(7)

Significant changes in shareholders’ equity................................................................................................................ 11
Significant subsequent events ................................................................................................................................... 111

1. Qualitative Information on First Half Results(1) Qualitative information on consolidated business performance
In the first half of the consolidated fiscal year ending June 30, 2012 (from July 1, 2011 to December 31, 2011; hereafter “the first half
under review”), in addition to movement towards recovery from the Great East Japan Earthquake, consumer spending also improved
as economic activity in the domestic market headed for recovery but, with the prolonged strong yen and the European financial crisisin the background, the outlook remains uncertain.
In this environment, Macromill, Inc. (the “Company”) and its consolidated subsidiaries (together, the “Group”) which must strive tosolidify the domestic online research business and, at the same time, to develop new mainstay businesses, made up-front investments
in developing business in China and in the development of applications (apps) for smartphones.
The domestic online research business, which makes up the majority of sales, saw a decline in orders dependent upon overseas
demand because of the prolonged strength of the yen but sales largely to advertising agencies, research companies, consulting firms
and consumer goods manufacturers turned positive and finished just about according to plan.
To implement the solidification of the domestic online research business, in addition to forming a business collaboration with Dentsu,
Inc. and Dentsu Marketing Insight, Inc., the Company and Dentsu Marketing Insight have agreed to establish a new, joint venturecompany.
Furthermore, a business and capital tie up with TechFirm, Inc. was concluded and the Company is now studying ways to implement abusiness that, by using TechFirm’s high-level IT technology in combination with the Company’s marketing know-how based on a
consumer’s point of view, will provide high-level solutions to respond to customers’ needs to improve business performance.
For the first half under review, the Group recorded net sales of 6,802 million yen (an increase of 8.3% year on year), operating
income of 1,547 million yen (a rise of 8.5%), ordinary income of 1,577 million yen (up 8.4%), and net income of 799 million yen (up15.8%).
Following are the Net sales by service segment:(i) Automatic Research Service
Automatic Research Service uses the Company’s proprietary Automatic Internet Research system (hereafter AIRs) to conduct market
research, which is the Company’s core business. During the first half under review, sales increased 1.6% from the same period lastyear to 3,661 million yen as there was a shift to strong demand for research centering on consumer goods manufacturers, researchcompanies and consulting firms while demand for other services expanded due to the diversification of customers’ needs.
(ii) Tabulation Service
Tabulation Service is a service where, after data collection via AIRs, specialist employees produce specific tables and graphs
matching the purpose of the relevant research. As transactions with general companies expand, needs for an integrated service fromdata collection to tabulation and analysis are increasing. Sales increased 12.4% year on year to 425 million yen due to an increase ininquiries for tabulation services in conjunction with fieldwork.
(iii) Analysis Service
Analysis Service covers designing survey forms and questionnaire as well as producing a range of reports after collecting researchdata. To provide analytical reports in accordance with the marketing issues and research objectives of customers, the Company has
been working to improve its capabilities to propose projects and analyze data. Sales increased 10.7% year on year to 633 million yen
as transactions with general business companies increased and the need for analysis with a high degree of difficulty led to a positive
shift in orders.
(iv) Qualitative Research Service (Group Interview, etc.)
Qualitative Research Service carries out group or one-on-one interviews for in-depth insights into the psychology of respondents.
Demand for qualitative research is steadily rising as consumer-goods companies in particular seek to better identify the diversified
interests and preferences of consumers. Orders from advertising agencies and others increased sharply during the first half underreview as sales increased 24.3% to 572 million yen.
(v) Customized Research Service
Customized Research Service prepares tailor-made survey sheets and collects research data for more individualized research projects
beyond the scope manageable by AIRs. Although enhancements of AIRs functionality resulted in more research projects being2

carried out by AIRs, sales increased by 8.5% year on year to 694 million yen due to an increase in the number of proposals using
conjoint analysis and analysis using Maximum difference scaling (MaxDiff) that required the creation of special research screens.
(vi) Global Research Service
This service includes research into overseas markets for domestic companies as well as marketing research for overseas companies.
During the first half under review, sales increased 1.7% to 227 million yen as a shift to strong orders from advertising agencies andconsulting firms compensated for reduced budgets for overseas research from general business companies due to the effect of thestrong yen.
(vii) Mobile Research Service
Mobile Research Service collects data using mobile phones. Even though mobile phones are used in the research scene to collectphoto images from camera-equipped mobile phones and to understand consumer psychology immediately after a purchase, sales
declined 8.8% year on year to 40 million yen as, due to the increased diffusion of smartphones, there was a decline in demand forspecialized, feature phone research.
(viii) Other Services
Other Services consist of sales of consolidated subsidiaries, QPR, a consumer purchase database service, AIRsMEMBERS(SaaS-type customer management services), a service that combines the functionality of AIRs with customer management systems,
and Brand Data Bank (bdb), a database subscription service that provides consumer profiles based on surveys of 30,000 panel
members with questions such as possessions, interests, and brand preferences. In addition, M-Cube and Associates, Inc., aconsolidated subsidiary that constructs QPR panels and collects data, saw increased data sales to a joint venture company with theresult that Other Services segment sales increased 52.2% year on year to 545 million yen.

(2) Qualitative information on consolidated financial position
As of the end of the first half under review, total assets were valued at 18,159 million yen, a rise of 4,227 million yen from the end of
the previous fiscal year, mainly attributable to an increase in cash and deposits of 3,259 million yen.
Liabilities stand at 7,949 million yen, increasing 5,179 million yen from the end of the previous fiscal year, primarily attributable tothe issuing of bonds with subscription rights of 5,000 million yen.
Net assets were 10,209 million yen, a decrease of 951 million yen, primarily because of a decrease in treasury stock of 1,543 million
yen.
Cash flows
Cash and cash equivalents (hereinafter “cash”) at the end of the first half under review totaled 9,503 million yen.
Cash flows for the first half under review and primary factors behind the reported results are as follows:(Cash flows from operating activities)
Cash provided by operating activities during the first half under review was 382 million yen (down 62.6% year on year).
Major uses of cash included 622 million in income taxes paid and an increase of 676 million yen in notes and accounts
receivable–trade, were offset by major sources of cash including income before income taxes and minority interests of 1,570 million
yen and depreciation and amortization of 177 million yen.
(Cash flows from investing activities)
Cash used in investing activities during the first half under review was 407 million yen (down 75.4% year on year).
The major source of cash was 100 million yen from proceeds from sales of securities, offset by major uses of cash including thepurchase of investment securities for 345 million yen and payments of loans receivable of 436 million yen.
(Cash flows from financing activities)
Cash provided by financing activities during the first half under review was 3,286 million yen (compared to cash used by financing
activities of 738 million yen during the same period last year).
The major use of cash was 1,554 million yen of purchase of treasury stock, offset by proceeds of 4,993 million yen from a corporatebond issue.

3(3) Qualitative information on consolidated results forecast
There has been no change to the consolidated results forecasts for the year ending June 30, 2012 announced on August 3, 2011.

2. Matters Relating to Summary Information (Other)(1) Changes in significant subsidiaries during the period
None applicable(2) Application of simplified accounting treatment and special accounting treatment
None applicable(3) Changes in accounting principles and changes or restatement of accounting estimates
None applicable

3. Significant Events regarding the Premise of a Going Concern
None applicable44. Quarterly Consolidated Financial Statements(1) Quarterly consolidated balance sheets(Unit: thousand yen)
As of June 30, 2011
AmountAs of December 31, 2011
AmountAssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade
Short-term investment securities
Work in process
Preproduction
Supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Intangible assets
Software
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Accounts payable–other

6,743,362
2,359,373
200,081
10,496

10,003,128
3,024,220
99,900
6,143

4,793
2,019
518,001

5,558
4,880
566,824

162,972(942)
10,000,157

235,486(301)
13,945,840

522,047

483,908259,352

344,917

482,770433,634
1,175,757

460,485
460,732
1,266,134

1,195,877
1,038,235(871)
2,233,240
3,931,046

1,540,519
922,721

13,931,204

18,159,125–

2,463,241
4,213,284

747,254790,037

Income taxes payable
Allowance for panelists–points
Reserve for bonuses
Other
Total current liabilities
Long-term liabilities
Bonds with subscription rights to shares
Asset retirement obligations
Other
Total long-term liabilities

658,166
848,436
45,026369,3212,668,205

854,281926,668
85,000191,417
2,847,405–

99,454
2,018
101,472

5,000,000
100,188
1,540
5,101,728

Total liabilities

2,769,678

7,949,133

5

(Unit: thousand yen)
As of June 30, 2011
AmountNet assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings

As of December, 2011
Amount

1,597,858
4,865,040
5,583,316

1,627,372
4,868,298
4,991,119(1,106,674)
10,939,539(1,441,370)
10,045,419

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment(43,785)(2,197)(50,788)(5,264)

Total of accumulated other comprehensive income
Subscription rights to shares(45,982)
40,127(56,053)
37,239Treasury stock
Total shareholders' equity

Minority interests
Total net assets
Total liabilities and net assets

6

227,841

183,386

11,161,526
13,931,204

10,209,991
18,159,125

(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income(Quarterly consolidated statements of income)(Consolidated first half of the fiscal year)(Unit: thousand yen)First half ended
December 31, 2010
AmountFirst half ended
December 31, 2011
AmountNet sales
Cost of sales
Gross profit

6,283,956
3,143,393
3,140,563

6,802,564
3,318,235
3,484,329

Selling, general and administrative expenses
Operating income

1,715,251
1,425,311

1,937,193
1,547,135

26,879
1,185
345
9,091

24,97837,501

56,229

1,886

3,988

2,051
5,110
971
6,358
10,275720
7,236
1,455,576

1,472
26,241
1,577,124

–

993

–

993

146,368

7,525

24,323–84,487
255,179

7,525

1,200,397
558,456(48,600)

1,570,591
836,385(21,409)

Total income taxes
Income before minority interests
Minority interests in income (loss)

509,856
690,541–

814,975
755,616(44,113)

Net income

690,541

799,729

Non-operating income
Interest income
Dividends income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Loss on transfer of accounts receivable
Equity in losses of affiliates
Stock issuance cost
Bond issuance cost
Commission for purchase of treasury stock

–

640
–

Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on reversal of subscription rights to shares
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Loss on adjustment for changes of accounting
standard for asset retirement obligations
Integration-related expenses
Total extraordinary losses
Income before income taxes and minority interests
Income taxes–current
Income taxes–deferred

7

–

2,286
28,964–

(Quarterly consolidated statements of comprehensive income)(Consolidated first half of the fiscal year)(Unit: thousand yen)

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income

First half ended
December 31, 2010
Amount690,541First half ended
December 31, 2011
Amount755,616

6,846
6,846

(7,003)(3,408)(10,411)697,387745,204

697,387

789,659–(44,454)–

Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of theparentComprehensive income attributable to minority interests8(3) Quarterly consolidated statement of cash flow
(Unit: thousand yen)

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in allowance for panelists–points
Increase (decrease) in reserve for bonuses
Interest and dividend income
Foreign exchange losses (gains)
Equity in (earnings) losses of affiliates
Loss on retirement of noncurrent assets

First half ended
December 31, 2010
AmountFirst half ended
December 31, 2011
Amount1,200,397
194,295
20,506104

1,570,591
177,981
22,285(1,512)

123,955
85,720(28,064)

146,368

78,231
39,973(24,978)(1,981)
5,110
7,525

24,323–––

Loss on adjustment for changes of accounting standard for
asset retirement obligations
Integration-related expenses
Gain on reversal of subscription rights to shares
Decrease (increase) in notes and accounts receivable–trade
Decrease (increase) in inventories
Increase (decrease) in accounts payable–other
Increase (decrease) in consumption taxes payable
Other, net(525,627)
44,067
15,48751,99569,419SubtotalInterest and dividend income received
Management integration-related expenses paid

1,507,438
31,856(21,400)

983,595
20,731

Income taxes paid
Net cash provided by (used in) operating activities(494,987)
1,022,907(622,117)
382,209(500,000)
300,000(150,000)––

100,000(51,200)(165,753)(345,828)(884)

Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of short-term investment securities
Proceeds from sales of short-term investment securities
Purchase of property, plant and equipment
Purchase of software
Purchase of investment securities
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Payments of loans receivableCollection of loans receivable

84,487––(993)(676,216)
688
19,542(91,885)(140,767)(263,290)(45,856)(393,715)(117,200)
38,561
–
–

9

–

–
–

–

(436,000)
36,000(Unit: thousand yen)First half ended
December 31, 2010
AmountExpenditure on the acquisition of other investments
Proceeds from the recovery of other investments
Other, net
Net cash provided by (used in) investing activities

First half ended
December 31, 2011
Amount(500,000)––

500,000(23,767)(63,171)(1,655,268)(407,738)–

4,993,641

Net cash provided by (used in) financing activities
Proceeds from issuance of bonds with subscription rights tosharesProceeds from (payments of) issuance of common stock
Purchase of treasury stock
Proceeds from sale of treasury stock(1,841)

56,592(593,033)(1,554,128)

95,76365,534

Cash dividends paid

(239,013)(274,967)

Net cash provided by (used in) financing activities(738,125)

3,286,672–(1,376)

Net increase (decrease) in cash and cash equivalents(1,370,486)

3,259,766

Cash and cash equivalents at beginning of period

4,909,063

6,243,362

Increase (decrease) in cash and cash equivalents resulting from
integration of absorption-type split

1,622,131–

Cash and cash equivalents at end of period

5,160,707

9,503,128

Effect of exchange rate change on cash and cash equivalents10(4) Notes regarding the premise of a going concern
None applicable(5) Segment information
Overview of reportable segments
The major business of the Group is online research using AIRs. As its economic characteristics and markets where the services are
sold are almost identical, the segments reported by the Company are limited solely to the online research business segment. As aresult, a statement on reportable segments is omitted.

(6) Significant subsequent events
Consolidated second quarter under review (from October 1, 2011 to December 31, 2011)
Acquisition of shares and underwriting of shares through private placement (Converting to subsidiary)
On February 10, 2012, a special meeting of the Board of Directors resolved to acquire and underwrite shares of EMBRAIN Co.
Ltd. through private placement and to make EMBRAIN Co., Ltd. a subsidiary and, on the same day, entered into contracts forthe purchase and sale of shares and to underwrite new shares.
(1) Acquired company corporate name and business details
Acquired company corporate nameEMBRAIN Co., Ltd.

Business details

1. Research and consulting
2. Online advertising and software development
3. Cyber shopping
4. Database business5. Provision of academic research
6. Other businesses related to those listed above(2) Reasons for business combination
In South Korea, while the level of the use of the internet is high, the ratio of the internet survey in overall marketing researchremains low at 16% in 2010, compared with a global average of 22% (in accordance with ESOMAR in fiscal year 2011).
To expand the market, it is necessary to eliminate customer misunderstanding about the quality of internet research, and gain thetrust of customers. The Company aims to generate synergies from the know-how and the brand of EMBRAIN, which has strong
expertise in the South Korean market and customers and has a solid track record in the market, and the Company’s systemcapabilities, sales know-how, and financial strength that are required for expanding the internet research business. In this way, theCompany believes that the awareness and the credibility of internet research in the South Korean market will improve at a faster
pace, helping to bolster the performance of the Group’s overseas operations.
Moreover, the Company can expect a reduction in outsourcing expenses when it makes overseas research by using the panels
held by EMBRAIN.
By making EMBRAIN, a leading company in the internet research market in South Korea, its subsidiary, the Company willsolidify its business foundation in South Korea, and accelerate the development of overseas operations mainly in China, South
Korea, and other Asian countries.
(3) Date of business combination
Date of share acquisition February 29, 2012 (scheduled)(4) Legal form of business combination
Acquisition of shares for cash consideration(5) Corporate name following business combination
EMBRAIN Co. Ltd.

11

(6) Ratio of voting rights acquired
0 sharei

Ownership prior to changeii

Number of shares acquired

Number of voting shares: Share of ownership: 0%597,159 shares
Number of voting shares: 597,159
Share of shares issued: 51.0%
597,159 sharesiii

Ownership after the change

Number of voting shares: 597,159
Share of ownership: 51.0%(7) Main justification for the decision to acquire the company
Because the Company acquired shares in EMBRAIN Co., Ltd. for cash consideration.
(8) Acquisition cost of the acquired company
Acquisition cost 9,326 million won(Notes) The above figure excludes advisory fees and other related fees.

12