BRIEF STATEMENT OF CONSOLIDATED FINANCIAL RESULTS
FOR THE 3rd QUARTER OF THE FISCAL YEAR ENDING MARCH 2011
February 10, 2011
Company name: Faith, Inc. (Stock code 4295, Listed on TSE 1st section)
URL:
http://www.faith.co.jp/
Representative: Hajime Hirasawa, CEO/President
Contact:
Koji Saeki, CFO/Director Tel: +81-75-213-3933
Date of Submission of Securities Report: February 14, 2011
Starting Date of the Dividend Payment: ―Amounts are rounded down to the nearest JPY 1 million.

1. Consolidated Results for FY2010 First Nine Months（From April1，2010 to December31，2010）(1) Consolidated financial results
Those figures in “%” show increased/decreased ratio compared with the previous 3rd quarter of fiscal term

Net Sales

Operating Profit%

Recurring Profit%

Net Profit

Millionsof yen%FY2010 first nine months

61,061

48.0

1,614

88.1

1,609

107.0

812

41.0

FY2009 first nine months

41,267

4.2

858

△34.9

777

△19.1

576

178.8

Millionsof yenNet Profit
per Share

Millionsof yenFY2010 first nine months

Yen707.60

Diluted Net Profit
per Share
Yen
700.80FY2009 first nine months

501.94497.06%

Millionsof yen(2) Consolidated financial position
Total Assets

Ratio of Equity
CapitalNet Assets

Net Assets per
Share

Millions of yen

Millions of yen%

Yen

FY2010 first nine months

33,95414,01336.9

10,927.18

FY200929,963

12,985

39.6

10,327.22

Reference: Equity Capital, the first nine months of FY2010: 12,544 million yen, FY2009: 11,856 million yen

2. Dividends
Dividends per share(Record dates)st

1 QuarterInterim

FY2009

yen
―

yen
50.00

FY2010―50.00

3rd Quarter

FY2010(Forecast)
Note: Revisions to the forecast of cash dividends in the current quarter : noneyen―

Year-end

Total(Annual)

yen
50.00

yen
100.0050.00

100.003. Forecasts for the consolidated business results for FY2010(from April 1, 2010 to March 31, 2011)
The figures in “%” show increased/decreased ratio compared with the previous fiscal year and the previous interim result.

Net Sales

FY2010Operating Profit

Recurring Profit

Net Income

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%78,000

37.7

1,300

76.9

1,360

116.7

600

―

Net Income
Per ShareYen
522.63

Note:Revisions to the forecast of consolidated results in the current quarter : none

4. Others(1) Changes in the significant subsidiaries (Accompanying changes in scope of the consolidation):
Exclusion: None
(2) Adoption of simplified accounting practices or specific procedures in preparation of the quarterly
consolidated financial reports: Applicable(3) Changes in accounting policy, procedure, and presentation in preparation of the quarterly consolidated
financial reports (Described in the “Changes in preparing for consolidated financial statements andsummary of significant accounting polices”)(3)-1. Changes accompanying revisions of accounting standards, etc.: Applicable(3)-2. Changes other than the above: None
(4)Outstanding shares (common shares)(4)-1. Outstanding shares at the end of the fiscal years (including treasury shares):
FY2010 3rd quarter : 1,196,000 shares,

FY2009: 1,196,000 shares(4)-2. Treasury shares at the end of the fiscal years:
FY2010 3rd quarter : 47,950 shares,

FY2009: 47,950 shares(4)- 3. Average number of shares at the interim accounting period
FY2010 3rd quarter : 1,148,050 shares,

FY2009 3rd quarter : 1,148,050 shares

Statement regarding the proper use of financial forecasts and other special remarks
These forecasts are based on the Company’s current assumptions and beliefs in light of the information currently available toit, and involve known and unknown risks and uncertainties. The Company’s actual results may differ materially from those
discussed in these forecasts as a result of numerous factors outside of the Company’s control.

Contents
1. Qualitative Information and Financial Statements ··························································· 2(1) Qualitative Information regarding the Consolidated Operating Results ······················ 2(2) Qualitative Information on Consolidated Financial Position ······································ 3(3) Qualitative Information regarding Forecast of Consolidated Financial Results ·········· 4
2. Others ····························································································································· 4(1) Changes in Significant Consolidated Subsidiaries························································ 4(2) Adoption of Simplified Methods in Accounting Methods ·········································· 4(3) Changes in Accounting Principles, Procedures, and Disclosure Methods ·················· 4(4) Explanatory Note regarding Premise of a Going Concern ········································· 4
3. Consolidated Financial Statement ··················································································· 5(1) Consolidated Balance Sheet ······················································································· 5(2) Consolidated Profit and Loss Statement ····································································· 7(3) Consolidated Statements of Cash Flows ····································································· 8(4) Explanatory Note regarding Premise of a Going Concern ·········································· 10(5) Segment Information ································································································· 10(6) Note for Significant Changes in Amount of Shareholders’ Equity ······························ 11* Other special remarks regarding the supplemental document for the quarterly financial results
The supplemental document is posted on the company website.
(URL: http://www.faith-inc.com/ir/library.html )1

1. Qualitative information and financial statements(1) Qualitative information regarding consolidated operating results
The mobile phone market in Japan is getting matured as the number of subscription exceeded 100
million in 2010, while the number of smartphone shipment increased from 210,000 in fiscal 2007 toover 2.3 million in fiscal 2009, and this trend is expected to continue. As regards media tablet, thenumber of shipment reached 500,000 in 2010, and the figure is expected to surpass 1.4 million in 2014.
In the content market, the information communication technologies and needs of users are getting morediversified and complicated even faster, that mainly reflects development of services based on new
demands such as social networking services, or SNS, mobile social games, and video-sharing sites. As
the market changes, creation of new business models is sought after.
Against this backdrop during the first three quarters of the consolidated fiscal 2010, the nine months
period ended December 31, 2010, the Faith Group has built up a new system that can provide a newframework for content distribution promptly by providing a one-stop service from planning andproduction of content to designing and construction of platforms, content distribution and charging
systems. Under the “multi-content and multi-platform” strategy that aims to create an environment thatenables users to enjoy any content whenever and wherever they want, each Group company promotes
provision of new services based on its unique ideas by maximizing its strengths and utilizing the Groupsynergies.
As a result, consolidated net sales for the first nine months of FY2010 increased 48.0% year on year to¥61,061 million led by the continuous high growth in the Electronic Money Business. Operating profit
was ¥1,614 million, up 88.1% year on year, and recurring profit was ¥1,609 million, up 107.0 % year on
year. The Group recorded net profit of ¥812 million, a 41.0% year on year increase.
Information on each business segment is as follows:<Contents Business>
During the period under review, the Group strove to establish a new framework for content distribution
and expand and strengthen its operating base in various aspects of music and video market.
Through an integral media program called “MusicBirth+” the Group launched in October 2009, theGroup has been steadily promoting a new framework to distribute music by integrating TV, Internet,
and mobile phone. An audition in the program linked with the online voting by the viewers gained
popularity. This program also sent out a No.1 hit song on a weekly ranking in the rock music categoryof a ringtone distribution site.
A blockbuster film entitled “Kokuhaku” produced by the Group, Toho Co., Ltd. and other companies
won 11 prizes at the 34th Japan Academy Prize including the Picture of the Year prize. In addition, thefilm was chosen as an entry film from Japan for the best foreign film category of the Academy Awards
in the U.S. and the result will be announced in February 2011. The film has sold about 3 million tickets
with a box-office record of over ¥3.8 billion since the release in June 2010.
“Connecting Card” is another project that was planned, produced and launched by the Group. This
website provides a highly collectible selection of visual cards carrying images of celebrities such as
artists, pop idols and athletes. The site is linked to content downloading sites dealing with music, video,
and other audio materials. The Group is continuously working on expanding its lineup.
The Group set up a smartphone corresponding video application called “VIDEMO” in October 2010
with taking the possibility of multi-lingual international distribution and connection with other devices
into consideration. The application has downloaded approximately 100,000 times for the first twomonths. It has been gaining popularity as it was introduced in the media many times.
Net sales in the Content Business for the first nine months of FY2010 was ¥5,625 million, 20.7% down
year on year, and operating profit was ¥589 million, 97.8% up year on year.

<Electronic Money Business>
The online game market, a main sector in which electronic money is used, is showing a continuous
expansion. Combined with the rapid growth of the mobile social game and other factors, the settlement2amount of WebMoney, which provides easy, secure and convenient solutions, saw a firm increase. To
further increase the settlement amount of WebMoney, the Group is striving to expand the customer basemainly by running tie-up campaigns with prominent vendors and recruiting new mobile content
providers.
Regarding “manna”, an advertisement distribution widget launched jointly with an Internet
advertisement company in September 2008, the membership surpassed 200,000. In addition to theexisting services of being WebMoney credited by viewing online ads, the Group is to promoteconnecting “manna” with the Group’s content services going forward.
In the effort to expand the user base, the Group promoted WebMoney to become a settlement method atsome of the mobile official sites such as “GREE” and “GIGAtch” as the first method other than theconventional charging method provided by each carrier.
Moreover, as part of the effort to expand the online game market, the Group organized “WebMoney
Award 2010” and recognized the most popular online games in 2010 based on the online voting from
130,000 users.
Due to the increase of the settlement amount and other factors, net sales in the Electronic Money
Business was ¥54,395 million, 63.3% up year on year, and operating profit increased 117.1% year on
year to ¥100 million.

<Other Businesses>
Other Businesses that includes revenues from the point-card system business was ¥593 million andoperating profit was ¥37 million.
(2) Qualitative information regarding consolidated financial positions<Assets, Liabilities and Net Assets>
Total assets as of the end of the first nine months of FY2010 increased by ¥3,991 million from the endof the previous consolidated fiscal year to ¥33,954 million. This result is mainly due to the increase in
cash and deposits, and accounts and notes receivable, despite the decrease of goodwill caused byamortization.
Total liabilities increased by ¥2,963 million against the end of the previous consolidated fiscal year to¥19,941 million yen, caused by the increase of trade notes and accounts payable, and allowance for
utilized costs, although short-term loans and long-term liabilities decreased.
Total net assets increased by ¥1,027 million compared to the end of the previous consolidated fiscal yearto ¥14,013 million. These records are due to an increase in retained earnings as the quarterly net profit
was posted and also an increase in minority interests, despite the decrease in valuation difference on
available-for-sale securities caused by the re-evaluation of available-for-sale securities. The equity
capital ratio lowered by 2.7 percentage point to 36.9%.
<Cash Flow>
Cash and cash equivalents as of the end of December 2010 increased by ¥793 million from the end of
the previous consolidated fiscal year to ¥9,133 million.
(Cash flows from operating activities)
xCash flows from operating activities provided ¥2,437 million, a 4.5% year on year increase. This isdue mainly to the posting of ¥1,588 million of quarterly net profit before income taxes and ¥763
million of amortization of goodwill. Also, accounts and notes payable-trade increased ¥3,878. These
factors offset the posting of ¥5,074 million of increase in accounts and notes receivable-trade and¥572 million in income taxes paid.
(Cash flows from investing activities)
Cash flows from investing activities provided ¥429 million compared to the same period in theprevious fiscal year when ¥1,236 million was used. The provision of ¥1,900 million in proceeds fromwithdrawal of time deposits offset the factors such as ¥1,440 million was used in expenditure fordeposit of time deposits and ¥238 million was used in expenditures for acquisition of tangible fixed
assets.
(Cash flows from financing activities)
Cash flows from financing activities used ¥2,041 million during the fiscal period under review,compared to ¥1,335 million used during the same period in the previous fiscal year.
The main factors were that ¥111 million was used for payment of dividends and ¥1,943 million was3

used in expenditure for repayment of long-term loans.

(3) Qualitative information regarding forecast of consolidated financial results
By the end of the first three quarters of the consolidated FY2010, the nine months period ended
December 31, 2010, the results in operating profit, recurring profit, and net profit already surpassed theforecast announced on November 4, 2010 in the Consolidated Forecast for FY2010, as the Electronic
Money Business is seeing continuously strong growth. Currently the forecast for FY2010 is underreview by factoring in the market conditions and the management environment during the 4th quarter of
FY2010. In case the Group determines that the forecast are necessary to be revised, the Group is topromptly issue revised full year forecasts.

2. Others(1) Changes in Significant Consolidated Subsidiaries: None
(2) Adoption of Simplified Methods in Accounting Methods(Simplified methods in accounting methods):
1. Computation method used for estimating bad debts in general receivables
As the actual percentage of credit losses recorded at the end of the current quarter proved to be notsignificantly different from what was estimated at the previous fiscal year end, the estimated bad debt
is computed based on the actual percentage of credit losses at the previous fiscal year end.
2. Computation method used for estimating amortization of tangible assets
Assets which are applying fixed percentage method are computed on a pro-rata basis from the amountfor the consolidated fiscal year ending March 31, 2010.
(Specific procedures in preparation of the quarterly consolidated financial reports)
Tax expenses are calculated by multiplying the amount of quarterly net profit before tax deduction andthe estimated effective tax rates, which is estimated as an effective tax rates applied to the tax effectaccounting, by the amount of consolidated net profit including the 3rd quarter of the financial period andbefore tax deduction.
(3) Changes in Accounting Principles, Procedures, and Disclosure Methods(Change in accounting standards)
1. Application of “Accounting Standard for Equity Method of Accounting for Investment” and“Practical Solution on Unification of Accounting Policies Applied to Associates Accounted for Using
the Equity Method”
From the first quarter of FY2010, the Group applies the “Accounting Standard for Equity Method of
Accounting for Investment” (Accounting Standards Board of Japan [ASBJ] Statement No.16 ofMarch 10, 2008) and the “Practical Solution on Unification of Accounting Policies Applied to
Associates Accounted for Using the Equity Method” (ASBJ PITF No.24 of March 10, 2008). Thereis no impact on the Group’s consolidated financial statements for quarter as a result of this change.
2. Application of “Accounting Standard for Asset Retirement Obligations”
From the first quarter of FY2010, the Group applies the “Accounting Standard for Asset Retirement
Obligations” (ASBJ Statement No.18 of March 31, 2008) and the “Guidance on Accounting Standard
for Asset Retirement Obligations” (ASBJ Guidance No.21 of March 31, 2008). Herewith, both
operating profit and recurring profit decreased by ¥2,839 thousand and quarterly net profit before
income taxes decreased ¥20,092 thousand.
(Change in presentation)
Based on the “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No.22 ofDecember 26, 2008), the Group applies the “Cabinet Office Ordinance Partially Revising Regulation on
Terminology, Forms and Preparation of Financial Statements” (Cabinet Office Ordinance No.5 ofMarch 24, 2009). As a result, “Income before minority interests” is included in the consolidated
financial statements for the 3rd quarter of FY2010.
(4) Explanatory Note regarding Premise of a Going Concern
Not applicable43. Consolidated Financial Statement for the 3rd quarter(1) Consolidated Balance Sheet for the 3rd quarter(Unit: thousands of yen)

(Assets)
Current assets
Cash and deposits
Accounts and notes receivable
Marketable securities
Commercial products
Products in progress
Primary materials and inventory goods
Deferred tax assets
OthersAllowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Intangible fixed assets
Goodwill
OthersTotal intangible fixed assets
Investment and other assets
Investment securities
OthersAllowance for doubtful receivable
Total investments and other assets
Total fixed assets
Differed assets
Total assets(Liabilities)
Current liabilities
Trade notes and Accounts payable
Short-term loans
Income taxes payable
Allowance for utilized costs
Allowance for points
Allowance for bonus payments
Allowance for relocation
OthersTotal current liabilities
Fixed liabilities
Long-term liabilities
Deferred tax liabilities
Allowance for retirement benefits
OthersTotal fixed liabilities
Total liabilities

5

The 3rd quarter of FY2010

FY2009(As of December31,2010)(As of March 31, 2010)

9,884,412
11,370,722
339,486
48,205
15,697
11,428300,267
488,016△52,083
22,406,154

9,050,487
6,303,169
740,147
64,466
10,465
12,188300,267
811,197△35,725
17,256,664

2,931,289

2,916,674

692,265
393,303
1,085,568

1,470,111
390,316
1,860,428

7,358,774
362,733△189,955
7,531,552
11,548,410－
33,954,564

7,454,631
638,063△167,805
7,924,889
12,701,991
4,567
29,963,224

11,065,000
799,984
274,219
5,087,223
241,406
70,064－876,483
18,414,382

7,184,384
2,419,904
394,726
3,571,039
270,478
70,208205,720
991,668
15,108,130

1,233,364
187,981
92,651
13,183
1,527,180
19,941,562

1,556,992
199,716
83,07529,684
1,869,467
16,977,598

(Unit: thousands of yen)
The 3rd quarter of FY2010(Net assets)
Shareholder's equity
Common stock
Capital surplus
Retained earning
Treasury stock
Total shareholder's equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liability and net assets

6

FY2009(As of December31,2010)(As of March 31, 2010)

3,218,000
3,708,355
6,186,704△651,377
12,461,682

3,218,000
3,708,355
5,489,146△651,377
11,764,124

274,857△191,595
83,262
1,468,056
14,013,001
33,954,564

292,095△200,050
92,044
1,129,455
12,985,625
29,963,224

(2) Consolidated Profit and Loss Statement for the 3rd quarter of the fiscal year
(April 1, 2010 through December 31, 2010)(Thousands of yen)the 3rd quarter of FY2009

the 3rd quarter of FY2010(As of December 31, 2009)(As of December 31, 2010)

Net sales
Cost of Sales

41,267,987
33,668,433

61,061,099
52,954,473

Gross profit

7,599,554

8,106,626

Selling, general and administrative expenses

6,741,224

6,491,968

858,329

1,614,658

Interest income
Dividend income
Interest securities
Equity method investment gain
Miscellaneous receipts

28,824
16,105
10,39721,995

5,723
4,701
34,44959,918
5,100

Total non-operating profit

77,322

109,892

Non-operating expenses
Interest expense
Investment profit on equity method
Exchange loss
Transfer to allowance for bad debt
Miscellaneous expense

34,38764,15625,76815,36818,30828,03250,92430,018
5,811

Total non-operating expenses

157,990

114,786

Recurring profit

777,662

1,609,764

Extraordinary profit
Gain on disposal of investment securities
Gain on sale of shares of affiliated company
Gain on transfer of operation
Others671,399
110,256
6,700
39,97919,4792,528
5,077

828,335

27,085

138,734-

30,131
84,724
3,395
16,723

14,75011,537
17,253
4,934

273,70948,476

1,332,288

1,588,372

572,990108,540

455,307--

1,133,065

Income or Loss on minority shareholders

74,503

320,702

Quarterly net profit

576,254812,362

Operating profit
Non-operating profit

Total extraordinary profit
Extraordinary loss
Loss from disposal of fixed assets
Loss from investment securities valuation
Loss from changes in shareholder equity
Loss from disposal of operation
Loss from transfer of operation
Effect of asset retirement obligations
OthersTotal extraordinary loss
Quarterly net profit before income taxes
Corporate, local, and business taxes
Income taxes for retroactive year
Income before minority interests7(3) Consolidated Statements of Cash Flows for the 3rd quarter of the fiscal year
(April 1, 2010 through December 31, 2010)(Thousands of yen)the 3rd quarter of FY2009

the 3rd quarter of FY2010(As of December 31, 2009)(As of December 31, 2010)

Cash flow from operating activities
Quarterly net profit before income taxes

1,332,288

1,588,372

263,715201,293

Amortization of goodwill

1,678,875

763,208

Increase (decrease) in allowance for doubtful accounts△123,568

38,507

Increase (decrease) in reserve for bonus△43,835△143

Increase (decrease) in allowance for utilized cost

990,105

1,516,183

Increase (decrease) in allowance for points△80,710△29,071

5,008

9,576

-

△205,720Interest and dividends income△44,929△10,424

Interest on securities△10,397△34,449

Interest expenses

34,38728,032Foreign exchange loss

20,77914,681Gain on sale of investment securities△671,399△19,479

Gain on sale of shares in affiliates△110,256△2,528Valuation Loss on investment securities

30,131

14,750Loss from investment in equity method

64,156△59,918

Loss from equity movement

16,723

11,537

Loss from disposal of fixed assets△2,706△1,061

loss from sale of fixed assets

138,724

4,897

Gain on disposal of business

84,724--

17,253△1,346,684△5,074,222

Decrease (increase) in inventories

67,821

11,789Decrease in accounts and notes payable-trade607,595

3,878,069

Decrease in consumption taxes receivable-

45,594

Increase in consumption taxes receivable

8,376

55,774

Others△434,326

210,344

Sub-total

2,474,610

2,972,847

50,36044,035Interest expenses paid

△25,809△27,011

Income taxes refunded

97,174

20,583

Income taxes paid

△263,618△572,775

Cash flow from operating activities

2,332,717

2,437,678

Depreciation and amortization

Increase in allowance for retirement benefits
Decrease in reserve for loss from disposal of subsidiary

Effect of asset retirement obligations
Decrease in accounts and notes receivable-trade

Interest and dividends received8

(Thousands of yen)the 3rd quarter of FY2009

the 3rd quarter of FY2010(As of December 31, 2009)(As of December 31, 2010)

Cash flow from investing activities
Expenditure for deposit of time deposits△3,320,000△1,440,000

Proceeds from withdrawal of time deposits

4,350,096

1,900,000

Expenditures for acquisition of tangible fixed assets△68,986△238,782

9,325

5,510

△224,226△42,257△4,007,245-

Income from disposal of investment securities

1,795,750

27,226

Income from sale of shares of affiliated company

155,662-

Income from loans collection

54,352359-

217,420

18,997△15△1,236,274

429,460△1,035,770△1,943,548

61,43543,031

Payment of dividends△111,167△111,576

Expenditure for dividends to minorities△28,858△29,493

Expenditure for refund of shares to minorities△181,472-

Expenditure for purchase of shares from minorities△39,685-△1,335,517△2,041,586

Effect of exchange rate on cash and cash equivalents△22,976△32,227

Net increase or decrease in cash and cash equivalents△262,051

793,325

Cash and cash equivalents at beginning of year

10,649,135

8,340,635

Cash and cash equivalents at end of year

10,387,084

9,133,960

Income from disposal of tangible fixed assets
Expenditure for acquisition of software
Expenditure for acquisition of investment securities

Income from deposits collection
OthersNet cash flow used in investing activities
Cash flow from financing activities
Expenditure for repayment of long-term loans
Proceeds from payment from minorities

Net cash flow used in financing activities9(4) Explanatory note regarding premise of a going concern
Not applicable(5) Segment Information[Business segment information]
3rd quarter of FY2009 (April 1, 2009 through December 31, 2009)(Unit: thousands of yen)Content
services
Net sales
1) Sales to outside
customers2) Intersegment
sales and transfers
Total
Operating profit

Electronic
Money

Other
businesses

Total

Eliminations/
Corporate

Consolidated

7,096,385

33,312,999

858,60241,267,987–

41,267,987

248,8412,600–

251,441△251,441–

7,345,227

33,315,599

858,60241,519,429△251,441

41,267,987

297,809527,789

46,391

871,991△13,661

858,329

Notes: 1) Method of businesses segmentation: The Company and its group companies’ businesses are classified into
three segments based on the similarities of services and nature of businesses.
2) Details of business segments
Business segment
Contents businessElectronic Money business
Other businesses

Major business operations
Content distribution service using networks, and development and licensingof distribution platform technologies, producing content creation
Issuance and sales of electronic money and providing electronic settlement
platforms
Point service and other business[Geographical segment information]
The 3rd quarter of FY2009 (April 1, 2009 through December 31, 2009)
Geographical segment information is omitted since net sales in Japan dominated more than 90% of
total sales.

[Overseas sales]
The 3rd quarter of FY2009 (April 1, 2009 through December 31, 2009)
Sales result of overseas is omitted from segmental information since consolidated net sales ofoverseas are less than 10% of total sales.

[Segment information](Additional information)
From this fiscal year ending March 2011, the Group applies the “Revised Accounting Standard forDisclosures about Segments of an Enterprise and Related information” (ASBJ Statement No. 17 ofMarch 27, 2009) and “Guidance on the Accounting Standard for Disclosures about Segments of anEnterprise and Related Information” (ASBJGuidance No.20 of March 21, 2009).

101. Outline of business segments reported
The business segments the Company reports are the business units for which the Company is able toobtain respective financial information separately in order for the Board of Directors to conductperiodic investigation to determine distribution of management resources and evaluate their businessresults.
The Group is promoting comprehensive services as a content provider, mainly as "content business"
which covers from planning and production of digital content to construction of platform anddistribution to end-users, and as "electronic money business" which provides electronic payment
system.
Consequently, the Group has two reportable segments: "content business" and "electronic money
business".
"Content business" promotes content distribution service, development and licensing of distribution
platform technologies, producing content creation.
"Electronic Money business" promotes issuance of electronic money and providing electronic
settlement platforms.

2. Information on sales and income (loss) by business segment reported
The 3rd quarter of FY2010 (April 1, 2010 through December 31, 2010)(Unit: thousands of yen)Segment Reported

Net sales
Sales to outside
customers
Intersegment sales
and transfers
Total
Operating profit

Otherbusinesses

Eliminations/Corporate

Consolidated61,061,099–

61,061,099–

224,891△224,891–

60,246,119

1,039,871

61,285,991△224,891

61,061,099

1,518,266

100,728

1,618,994△4,336

1,614,658

Total

Content
services

Electronic
Money

Total

5,625,789

54,395,439

60,021,228

1,039,871

222,691

2,200

224,891

5,848,480

54,397,639

589,185929,081

Notes: 1) The “Other Business” category incorporates operations not included in business segments reported,
including the point service and other business.
2) Adjustment of segment profit of △¥4,336 thousand refers to elimination of intersegment ransactions.
3) Segment profit is adjusted with the operating profit in the quarterly consolidated profit and loss statement.

3. Information regarding impairment loss on fixed assets or goodwill by segment reported
That information is omitted since there is no critical impairment loss on fixed assets or significant
change in amount of goodwill.
(6) Note for significant changes in amount of shareholders’ equity
Not applicable11