BRIEF STATEMENT OF CONSOLIDATED FINANCIAL RESULTS
FOR THE 1st QUARTER OF THE FISCAL YEAR ENDING MARCH 2023
This is an English translation of summarized consolidated financial results prepared
for the convenience of non-resident shareholders. Should there be any inconsistency
between the translation and the official Japanese text, the latter shall prevail.

August 12, 2022
Faith, Inc. (Stock code 4295, TSE Prime Section)(URL http://www.faith.co.jp/)
Representative: Hajime Hirasawa, CEO/President
Contact: Chikayo Suzuki, CFO/Executive Officer
Tel: +81-3-6855-7811
Date of Submission of Securities Report: August 12, 2022
Starting Date of the Dividend Payment: Preparation of Supplementary Materials for Quarterly Financial Results: None
Information Meeting for Quarterly Financial Results to be Held: None
Amounts are rounded down to the nearest JPY 1 million.

1. Results for the 1st Quarter of the Fiscal Year Ending March 2023
(From April 1, 2022 to June 30, 2022)(1) Consolidated Operating Results (cumulative totals)(Percentages indicate changes compared with the 1st quarter of the previous fiscal year.)

Net Sales
Millionsof yenYear ending March 2023 Q1
Year ending March 2022 Q1

Operating Income

%

3,524
3,404

3.5
△36.2

Millionsof yen△90△5Ordinary Income
Millionsof yen%－－Net Income

%

△46
85

Millionsof yen

－
△86.2

%

△87
△1

－
－

(Note) Comprehensive income: 1st quarter of the fiscal year ending March 2023: ¥78 million (△67.5%); 1st quarter of the fiscal year ending
March 2022: ¥240 million (△76.5%)

Net Income per Share

Diluted Net Income per Share

Yen
△7.63
△0.14

Year ending March 2023 Q1
Year ending March 2022 Q1

Yen
—
—

(2) Consolidated Financial Position
Total Assets
Year ending March 2023 Q1
Year ending March 2022

Net Assets

Ratio of Equity CapitalMillions of yen

Millions of yen

23,53725,291

15,816
17,117

%
67.2
67.7

(Reference) Equity capital: 1st quarter of fiscal year ending March 2023: ¥15,816 million; fiscal year ending March 2022: ¥17,117 million

2. Dividends
Dividends per Share
(Record dates)

Year ending March 2022
Year ending March 2023
Year ending March 2023
(Forecast)st

1 Quarteryen——Interim3rd Quarter

Year-end

Total

yen
5.00

yen
—

yen
5.00

yen
10.00

5.00

—

5.00

10.00

(Note) Forecasts for dividends have not been modified since the time of the most recently announced business forecast.

3. Forecast for the Consolidated Results for the Year Ending March 2023
（from April 1，2022 to March 31，2023）(Percentages indicate changes compared with the previous fiscal year and the previous interim result.)

Net Sales

Full year(Note)

Millionsof yen%17,000

11.0

Operating Income

Ordinary Income

Net Income
Attributable to the
Shareholders of the
ParentMillionsof yenMillionsof yenMillions of
yen

%

350

－

345

%
152.0

295

Net Income
per Share

Yen

%
－

26.86

Forecasts for dividends have been modified since the time of the most recently announced business forecast.

※ Notes(1) Changes in significant subsidiaries (accompanying changes in scope of consolidation): None
Newly added subsidiaries: 0 companies (subsidiary’s name:)Removed subsidiaries: 0 companies (subsidiary’s name:)(2) Adoption of simplified accounting practices or specific procedures in preparation of the quarterly
consolidated financial reports: None
(3) Changes in accounting policies, changes in accounting estimates, and restatements(i)
Changes accompanying revisions of accounting standards, etc.: Applicable(ii) Changes other than the above: None(iii) Changes in accounting estimates: None(iv)

Restatements: None

(Note) For details, please refer to “2. Consolidated Financial Statements and Important Explanatory Notes, (3) Notes Concerning theConsolidated Financial Statements (Changes in Accounting Policies)” on page 9 of the accompanying material.

(4) Outstanding shares (common shares)(i) Outstanding shares at the end of the period (including treasury shares):
The 1st quarter of the fiscal year ending March 2023: 13,831,091 shares
The fiscal year ending March 2022: 13,831,091 shares(ii) Treasury shares at the end of the period:
The 1st quarter of the fiscal year ending March 2023: 2,999,324 shares
The fiscal year ending March 2022: 1,198,938 shares(iii) Average number of shares during the period (cumulative total for the quarter)
The 1st quarter of the fiscal year ending March 2023: 11,431,815 shares
The 1st quarter of the fiscal year ending March 2022: 12,632,953 shares(Note) The number of shares of treasury stock at the end of the period includes those shares (257,200 shares in Q1 of the fiscal year
ending March 2023, 257,200 shares in the fiscal year ending March 2022) contributed as trust assets of the performance-linked
stock compensation plan. In addition, these shares are included in the shares of treasury stock deducted in calculating the
average number of shares during the accounting period (257,200 shares in Q1 of the fiscal year ending March 2023, 257,200
shares in Q1 of the fiscal year ending March 2022).

* This financial results report is exempt from quarterly review procedures.
* Statement regarding the proper use of financial forecasts and other special remarks(Notice regarding statements concerning the future)
Statements concerning the future, such as performance forecasts, etc., described in the present material are based on
information currently available to the Company and on certain assumptions judged as reasonable by the Company. The
Company’s actual performance may differ substantially from these forecasts as a result of various factors beyond theCompany’s control. For details of cautions, etc., employed in making performance forecasts and the assumptions underlying
performance forecasts, please refer to “1. Qualitative Information Concerning the Settlement of Accounts for the 1st Quarter,(3) Explanation Concerning Future Forecast Information on the Consolidated Financial Results, etc.” on page 4 of theaccompanying material.

Accompanying Material — Contents
1. Qualitative Information Concerning the Settlement of Accounts for the 1st Quarter ·····················(1) Explanation Concerning the Operating Results ····························································(2) Explanation Concerning the Financial Position ····························································(3) Explanation Concerning Future Forecast Information on the Consolidated Financial Results, etc.

2
2
4
4

2. Consolidated Financial Statements and Important Explanatory Notes ·······································(1) Consolidated Balance Sheet ···················································································(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ········(Consolidated Statement of Income) ··········································································(Consolidated Statement of Comprehensive Income)·······················································(3) Notes Concerning the Consolidated Financial Statements ················································(Note Concerning the Premise of a Going Concern) ······················································(Note in the Case of Significant Changes in the Amount of Shareholders’ Equity) ···················(Changes in Accounting Policies) ············································································(Additional Information) ······················································································(Segment Information) ·························································································

5
5
7
7
8
9
9
9
9
9
9

1. Qualitative Information Concerning the Settlement of Accounts for the 1st Quarter(1) Explanation Concerning the Operating Results
In the Japanese information and communications field in 2021, the Internet penetration rate remained
high at 82.9%, while the percentage of households owning one or more smartphones increased to 88.6%,
greatly exceeding the 69.8% of households owning one or more personal computers (*1). In addition, while
the movement away from television has continued since the year 2000, mainly centered on the young,
advertising expenses for the Internet in Japan increased by 21.4% in 2021 from the previous year to¥2,705.2 billion, exceeding the combined advertising expenses for the four largest mass media sectors(newspapers, magazines, radio, and television) of ¥2,453.8 billion (*2). This trend is also evident
worldwide, where in 2022 global spending on digital advertising is expected to reach approximately ¥54
trillion (US$409.9 billion), an increase of 14.2% from the previous year, with spending on digitaladvertising exceeding 55.5% of total spending on advertising (*3).
*1. Source: Ministry of Internal Affairs and Communications, 2021 Telecommunications Usage Trend Survey Results*2. Source: Dentsu Inc., 2021 Advertising Expenditures in Japan*3. Source: Dentsu Group Inc., Global Ad Spend Forecasts (2022-2024)

In the entertainment market in 2021, sales in the global music market centered on streaming services grewby 18.5% year over year to approximately ¥3,367 billion (US$25.9 billion), marking its seventh
consecutive year of growth and recording its highest sales total since the beginning of this century (*4). In
Japan, the production value of music software including music videos was almost unchanged from theprevious year at ¥193.6 billion, and while sales of packaged products continued to decline, paid music
distribution sales increased by 14% to ¥89.5 billion. In the paid music distribution sales category,subscription audio streaming increased by 26% year over year to ¥74.4 billion, accounting for 83% of
total paid music distribution sales (*5).
The impact of the novel coronavirus infection forced the postponement or cancellation of major eventsand live concerts, causing the live entertainment market to shrink by 82.4% from its 2019 level to ¥110.6
billion in 2020. In 2021, music events in real venues began to resume in line with the government's
guidelines for infection prevention measures, and the market size showed signs of recovery to ¥307.2
billion, although this was still 51.2% below the 2019 level (*6). Meanwhile, new ways of enjoying live
entertainment are taking root, with many artists offering “hybrid performances” in which a limited
audience is allowed into the venue and the performance is also distributed online. With live performancesin front of various audience sizes being streamed, the scale of the pay-per-view online live performancemarket was estimated at ¥44.8 billion in 2019, rising to an estimated ¥51.2 billion in 2021 (*7).
*4. Source: IFPI, Global Music Report 2022
*5. Source: Recording Industry Association of Japan (RIAJ), The Recording Industry in Japan 2022
*6. Source: PIA Research Institute, Japanese Live Entertainment Market Size Confirmed Report (published June 15, 2021)*7. Source: PIA Research Institute, Japanese Online Live Entertainment Market Survey (published June 15, 2022)

Founded in 1992, Faith was the first company in the world to commercialize ringtones, and has steadilygrown centered on the music distribution business and in step with the popularization of mobile phones.
However, in the current music market, with the spread of smartphones, the music industry is facing asituation in which all manner of activities, including content distribution methods, consumption styles,
and content production methods, are changing as media such as streaming, user upload content (UUC)—
which allows general users to easily transmit information to society, and social media become morediverse.
In this environment, the Faith Group is continuing to utilize the results of the efforts it has been pouring
into digital content distribution ever since its establishment, and is forging ahead with its Multi-Content
and Multi-Device Strategy of creating environments in which people can enjoy a wide diversity ofcontents whenever and wherever they choose. We are also strengthening the development of new services
in response to the changing market environment, which includes platforms that collect and organize theinformation flooding the Internet and provide this to users after increasing its added value.
In June 2020, Faith released Thumva, a new live streaming platform, as an Internet viewing service thatprovides a novel kind of live experience. In addition to group viewing and comment posting, Thumva
includes a gifting function for artists, allowing users to share a sense of excitement and togetherness as if

1they were attending a live concert. A diverse lineup of live performances by numerous artists and online
experiential attractions have already been made available on Thumva, and we are planning to continue
live streaming with an even broader variety of lineups in future.
In July 2021, utilizing Thumva’s resources, we launched Thumva BIZ as a new online service for storesthat allows customers who wish to make inquiries or seek consultations online begin business negotiations
with a single click. Our proposal consists of an online retail store service that meets the needs of the ageof digital transformation, and the service has already been introduced by companies in a variety ofindustries. Thumva BIZ will continue to expand its sales channels as a new DX service for stores in awide range of fields, and particularly in face-to-face customer service industries.
The Faith Group has established a regular teleworking system. In addition, we have consolidated our main
office functions, which were previously dispersed throughout the company, into the Minami Aoyama
Office. In anticipation of changes in behavioral patterns and the establishment of new values, we arecommitted to realizing diverse and efficient new ways of working based on the concept of “activity-based
working” (*8).
*8. A way of working that allows individuals to choose their workspace and style according to their work contents

Regarding the Faith Group’s business performance for the first quarter of the current consolidated fiscal
year ending March 2023, net sales increased by 3.5% year over year to ¥3,524 million, due mainly to arecovery in sales in the Content Business. However, as a result of a decrease in sales of content distribution
to cell phones in the Platform Business, the Group reported an operating loss of ¥90 million (comparedwith an operating loss of ¥5 million for the same period of the previous year), an ordinary loss of ¥46
million (compared with an ordinary income of ¥85 million for the same period of the previous year), anda net loss attributable to the shareholders of the parent of ¥87 million (compared to a net loss attributable
to the shareholders of the parent of ¥1 million for the same period of the previous year).
Information on each business segment is as follows.
Historically, the Faith Group has had three reportable segments: the Content Business, the Point Service
Business, and the Label Business. However, after reassessing its business management decision-making
and performance classifications, with effect from the first quarter of the current consolidated fiscal year,
the Group has begun operate under two reportable segments: the Platform Business and the Content
Business.
Platform BusinessIn the Platform Business, as sales in existing distribution businesses continue to decline, we will continue
to invest in new growth areas by linking and platforming each of our services with the aim of developing
new and innovative products and grasping diversified profit opportunities.
Through FaRao PRO, we are focusing not only on providing BGM for commercial use, but also on
actively developing sales activities centered on the expansion of functions necessary for store operations,such as solutions that propose store branding as well as announcement functions. In the future, we willcontinue to aim at the creation and activation of a new BGM market.
In Fans’, our platform of services for artists based on the D2C (*9) business model, which is expected to
expand further in future, we are enhancing the functions essential to artists’ musical activities such as
official website construction, music and video distribution, sales of artists’ goods, and fan club operation.
By improving linkage with SNS, we have introduced a system that allows fans to contribute to the creationof a community by spreading the information that creators send out. Furthermore, by offering a service
that allows more artists to freely disseminate their work and information, we are aiming to expand ouruser base and improve the quality of the service by pursuing enhanced convenience.
*9. Abbreviation of “Direct to Consumer”—a business model for delivering services and products planned and manufactured by Faith directly to users

In addition, the Retail Point System Operation Platform allows retailers to operate point issuing systems
and other services, and also offers total support from planning to operation as a series of cycles of point
issuance data acquisition, analysis, and sales promotion utilization, as well as providing outsourcing

2

services to maximize sales promotion efficiency in the retail industry.
Regarding the performance of this segment for the first quarter of the current consolidated fiscal year, due
to a decrease in sales of carrier official website services for mobile phone content distribution and adecrease in point issuance to existing member stores in the Retail Point System Operation Platform, thePlatform Business recorded net sales of ¥518 million (a decrease of 23.3% year over year), and a segment
loss of ¥96 million (compared with a segment income of ¥39 million in the same period of the previousyear).
Content BusinessIn the Content Business, we are proceeding with the strengthening of new businesses with a view to the
future in order to overcome our dependence on sales of packaged products in view of the severe
environment faced by the music and video-related industries in the changing music market.
Regarding the performance of this segment for the first quarter of the current consolidated fiscal year, net
sales increased by 10.2% year over year to ¥3,006 million, mainly due to an increase in the sales volumeof Nippon Columbia amid signs of recovery in the entertainment market. Meanwhile, segment income
increased 185.5% year-on-year to ¥94 million due mainly due to improved operating conditions in thelocation business, which had been strongly impacted by measures taken to counter the spread of COVID19 during the previous fiscal year.
*Product and service names appearing in this document are trademarks or registered trademarks of Faith, Inc. either in Japan or in othercountries.

(2) Explanation Concerning the Financial Position
Total assets as of the end of the first quarter of the current consolidated fiscal year ending March 2023
(June 30, 2022) decreased by ¥1,754 million compared to the end of the previous consolidated fiscal yearto ¥23,537 million. This result was mainly attributable to a decrease of ¥1,984 million in cash and deposits,a decrease of ¥321 million in notes and accounts receivable - trade, and an increase of ¥226 million in
investment securities.
Total liabilities decreased by ¥453 million compared to the end of the previous consolidated fiscal yearto ¥7,720 million. This result was mainly due to a decrease of ¥417 million in notes and accounts payable-trade.
Net assets increased by ¥1,301 million compared to the end of the previous consolidated fiscal year to¥15,816 million. This was mainly due to acquisition of treasury stock.
As a result of the above, the equity ratio decreased by 0.5 percentage points to 67.2%.

(3) Explanation Concerning Future Forecast Information on the Consolidated Financial
Results, etc.
There is no change in the forecast of consolidated financial results for the current fiscal year from theforecast announced on May 13, 2022. Although performance forecasts are based on information available
to the Company at the time of preparation, they include factors that are highly uncertain, such as theimpact of COVID-19, and there is a possibility that the actual performance figures will differ significantly
from the forecast figures due to a variety of factors.

3

2. Consolidated Financial Statements and Important Explanatory Notes(1) Consolidated Balance Sheet(Thousands of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Contract assets
Marketable securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Income taxes refundable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Provision for bonuses
Contract liabilities
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liabilities
Provision for share awards for directors (and otherofficers)
Asset retirement obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities

4

As of June 30, 2022

11,536,650
2,046,903
370
224,003
336,103499,421104,241
141,976
639,337△18,325
15,510,681

9,552,248
1,725,814
220
221,355
372,163
614,957
71,141
143,770
768,931△19,298
13,451,305

3,454,136

3,573,560

1,270,938
386,399
1,657,338

1,239,748
391,004
1,630,753

3,528,354
705,202
1,071,430△635,348
4,669,638
9,781,112
25,291,794

3,754,617
678,225
1,085,817△637,171
4,881,488
10,085,803
23,537,108

1,401,065
340,000
217,700
678,160
2,888,759
119,451
238,261
49,569689,1096,622,077

983,481
340,000
197,600
592,9023,013,939
21,020120,596
48,290816,246
6,134,077

162,150
542,544

118,375
547,52139,691

41,33339,283765,118
3,191
1,551,979
8,174,057

39,283
837,359
3,032
1,586,905
7,720,982

(Thousands of yen)
As of March 31, 2022
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Accumulated retirement benefit adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

As of June 30, 2022

3,218,000
2,840,498
10,393,392△1,122,330
15,329,560

3,218,000
2,840,498
10,226,242△2,422,217
13,862,523

1,740,714

1,904,919△8,881
56,343
1,788,177－
17,117,737
25,291,794△8,87757,5591,953,602－
15,816,125
23,537,108

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)(Thousands of yen)Three months ended
June 30, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Interest on securities
Gain on investments in investment partnerships
Share of profit of entities accounted for using equity
methodGain on valuation of securities
Subsidy income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of securities
Loss on investments in investment partnerships
Share of loss of entities accounted for using equity
methodForeign exchange losses
Miscellaneous expenses
Total non-operating expenses
Ordinary profit (loss)
Extraordinary losses
Loss on disposal of non-current assets
Loss on valuation of investment securities
Loss on liquidation of subsidiaries
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Loss
Loss attributable to owners of parent

6

Three months ended
June 30, 2022

3,404,496
2,008,734
1,395,761
1,401,108△5,346

3,524,919
2,126,659
1,398,259
1,488,860△90,600

02,090
282,872

0
3,121
12
569

12,736－200
24,051
9,224
131,179－
49,460592
53,756

1,247－
38,018

888
3,724
－

－

4,536

2
662
39,93085,901

276
14
9,440
△46,285－
7,791
21,597
29,38856,51333,36225,00558,367△1,854△1,854541－－
541△46,826
13,37527,02840,404△87,231△87,231(Consolidated Statement of Comprehensive Income)(Thousands of yen)Three months ended
June 30, 2021
Loss
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Retirement benefit adjustment (before any applicabletax effect)
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

7

Three months ended
June 30, 2022

△1,854△87,231

233,843
21,922

164,2054△13,433

1,216

242,332
240,478

165,425
78,193

240,478

78,193－－

(3) Notes Concerning the Consolidated Financial Statements(Note Concerning the Premise of a Going Concern)
Not applicable(Note in the Case of Significant Changes in the Amount of Shareholders’ Equity)
Faith repurchased 1,800,000 shares of treasury stock based on a resolution of the Board of Directors
meeting held on May 17, 2022. Accordingly, the Company’s holdings of treasury stock increased by¥1,299,600 thousand during the first quarter of the current consolidated fiscal year. As a result of thisacquisition, the total amount of treasury stock was ¥2,422,217,000 at the end of the current first quarter.
(Changes in Accounting Policies)(Application of the Implementation Guidance on Accounting Standard for Fair Value Measurement)
With effect from the beginning of the first quarter of the current consolidated fiscal year, Faith has begun
to apply the Implementation Guidance on the Accounting Standard for Fair Value Measurement(ASBJ Guidance No. 31, June 17, 2021, hereinafter the “Implementation Guidance”). In accordancewith this change, the Company has decided to apply the new accounting policies set forth in the
Implementation Guidance prospectively in accordance with the transitional treatment stipulated in
Section 27-2 of the Implementation Guidance. Application of the Implementation Guidance has no
impact on the Company’s consolidated financial results.
(Additional Information)(Application of Accounting Treatment and Disclosure When Adopting the Group Tax Sharing System)
With effect from the beginning of the first quarter of the current consolidated fiscal year, Faith and someof its domestic consolidated subsidiaries have transitioned from a non-consolidated taxation system to thegroup tax sharing system. In accordance with this change, the Company is applying the Practical Solution
on the Accounting and Disclosure under the Group Tax Sharing System (Practical Issues Task Force
Report No.42, August 12, 2021, which provides for the accounting treatment and disclosure of income
taxes, local income taxes, and tax-effect accounting(Segment Information)
Ⅰ 1st quarter of the previous consolidated fiscal year/FY 2021 (April 1, 2021 through June 30, 2021)

1. Information on sales and profit or loss by reportable segment(Unit: thousands of yen)

Adjustment
amount(Note 1)

Amount recorded in
Consolidated Financial
Statements (Note 2)

PlatformContent

Total

676,436

2,723,213

3,399,649－

3,399,649

－

4,846

4,846

－

4,846

676,436

2,728,060

3,404,496－

3,404,496

676,436

2,728,060

3,404,496－

3,404,496

Intersegment sales or transfer
amount72,247

6,680

78,928△78,928－

Total

748,683

2,734,741

3,483,424△78,928

3,404,496

Segment income or segment loss (△)

39,844

33,111

72,956△78,303△5,346

Net sales
Goods transferred at a single point
in timeGoods transferred over a period oftime
Revenue from contracts withcustomers
Sales to external customers

Notes: 1. The segment income or loss adjustment amount of △¥78,303 thousand consists of ¥316 thousand in eliminated intersegment
transactions and △¥78,619 thousand in companywide expenses that are not allocated to the reportable segments.
2. Segment income amounts are adjusted with operating income in the quarterly consolidated profit and loss statement.

2. Information regarding impairment loss on current assets or goodwill by segment reported
This information is omitted since there is no critical impairment loss on current assets or significant
change in amount of goodwill.

8Ⅱ 1st quarter of the current consolidated fiscal year/FY 2022 (April 1, 2022 through June 30, 2022)

1. Information on sales and profit or loss by reportable segment(Unit: thousands of yen)

Adjustment
amount(Note 1)

Amount recorded in
Consolidated Financial
Statements (Note 2)

PlatformContent

Total

518,6702,998,143

3,516,813－

3,516,813

－

8,105

8,105

－

8,105

518,670

3,006,249

3,524,919－

3,524,919

518,670

3,006,249

3,524,919－

3,524,919

Intersegment sales or transfer
amount87,0707,731

94,801△94,801－

Total

605,740

3,013,981

3,619,721△94,801

3,524,919

Segment income or segment loss(△)

△96,311

94,532△1,778△88,822△90,600

Net sales
Goods transferred at a single point
in timeGoods transferred over a period oftime
Revenue from contracts withcustomers
Sales to external customers

Notes: 1. The segment income or loss adjustment amount of △¥88,822 thousand consists of ¥4,211 thousand in eliminatedintersegment transactions and △ ¥93,033 thousand in companywide expenses that are not allocated to the reportablesegments.
2. Segment income amounts are adjusted with operating income in the quarterly consolidated profit and loss statement.

2. Information regarding impairment loss on current assets or goodwill by segment reported
This information is omitted since there is no critical impairment loss on current assets or significant
change in amount of goodwill.
3. Matters related to changes in reportable segments, etc.
Historically, the Faith Group has had three reportable segments: the Content Business, the Point
Service Business, and the Label Business. However, after reassessing its business management
decision-making and performance classifications, with effect from the first quarter of the current
consolidated fiscal year, the Group has begun operate under two reportable segments: the Platform
Business and the Content Business.
In addition, since Faith Inc. now manages the entire Faith Group following the integration of theGroup’s offices, the personnel and other expenses of the Company's Administration Department,
which were previously included under the Content Business, are now included in the adjustment
amount as companywide expenses effective from the first quarter of the current consolidated fiscalyear.

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