BRIEF STATEMENT OF CONSOLIDATED FINANCIAL RESULTS
FOR THE 3rd 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.

February 14, 2023
Faith, Inc. (Stock code 4295, Listed on TSE 1st 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: February 14, 2023
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 3rd Quarter of the Fiscal Year Ending March 2023
(From April 1, 2022 to December 31, 2022)(1) Consolidated Operating Results(Percentages indicate changes compared with the same quarter of the previous fiscal year.)

Net Sales
Millionsof yenOperating Income%

Millionsof yenOrdinary Income
Millionsof yen%Net Income%

Millionsof yen%Year ending March 2023 Q3

11,419

△0.2

△212

－

△189

－

△254

－

Year ending March 2022 Q3

11,444

△24.2

△8

－

256

△63.0

△8

－

(Note) Comprehensive income: 3rd quarter of fiscal year ending March 2023: ¥502 million (△11.8%); 3rd quarter of fiscal year ending
March 2022: ¥569 million (△46.0%)

Net Income per Share

Diluted Net Income per Share

Millions of yen

Millions of yen

Year ending March 2023 Q3△23.05

Year ending March 2022 Q3

△0.68

－
－

(2) Consolidated Financial Position
Total Assets
Year ending March 2023 Q3
Year ending March 2022

Net Assets

Ratio of Equity CapitalMillions of yen

Millions of yen%

25,621
25,291

16,20017,11763.2
67.7(Reference) Equity capital: 3rd quarter of fiscal year ending March 2023: ¥16,200 million; fiscal year ending March 2022: ¥17,117 million

2. Dividends
Dividends per Share
1st Quarter

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

yen
—
—

Interim

yen
5.00
5.00

3rd Quarter

yen
—
—

Year-end

yen
10.00

5.00

10.00

(Note) These figures have not been modified since the time of the most recently announced dividend forecast.

1

Total

yen
5.00

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.)

Net Sales

Full year

Operating Income

Ordinary Income

Net Income
Attributable to the
Shareholders of the
Parent Company

Millionsof yenMillions ofyenMillionsof yen%Millionsof yen15,000

△2.0

△200

%
－

%

△180

－

△290

Net Income
per Share

Yen

%
－

△26.40(Note) These figures have been modified since the time of the most recently announced business result 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: Not applicable(3) Changes in accounting policy, 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
(4) Outstanding shares (common shares)(i) Outstanding shares at the end of the term (including treasury shares):
The 3rd 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 term:
The 3rd quarter of the fiscal year ending March 2023: 2,999,722 shares
The fiscal year ending March 2022: 1,198,938 shares(iii) Average number of shares during the interim accounting period:
The 3rd quarter of the fiscal year ending March 2023: 11,031,626 shares
The 3rd quarter of the fiscal year ending March 2022: 12,632,690 shares(Note) The number of shares of treasury stock at the end of the period includes the Company's shares (257,200 shares in Q3 of the
fiscal year ending March 2023, 257,200 shares in the fiscal year ending March 2022) contributed as trust assets in theperformance-based stock compensation plan). In addition, such shares are also included in the treasury shares that are deductedin calculating the average number of shares during the accounting period (257,200 shares in Q3 of the fiscal year ending March
2023, 257,200 shares in Q3 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 3rd Quarter,(3) Explanation Concerning Future Forecast Information on the Consolidated Financial Results, etc.” on page 4 of theaccompanying material .

2

Contents
1. Qualitative Information Concerning the Settlement of Accounts for the 3rd 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 Policy) ···········································································(Additional Information) ···················································································(Segment Information) ·······················································································

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1. Qualitative Information Concerning the Settlement of Accounts for the 3rd 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 streaming live performances via the Internet, the scale ofthe pay-per-view online live performance market was estimated at ¥44.8 billion in 2020, 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)
that allows general users to easily transmit information to society, and social media become more diverse.
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 include platforms that collect and organize theinformation flooding the Internet and provide this to users after increasing its added value.
A new kind of live-streaming platform that offers a novel kind of live experience, Thumva includes
features for group viewing, comment posting, and gifting, allowing users to share a sense of excitement
and togetherness as if they were attending a live concert. And in the future, we will continue to expand
Thumya’s diverse lineup of contents. In addition, we have launched Thumva BIZ as a new online store
service utilizing Thumya’s resources that allows customers who want to make inquiries or seek
consultations online to begin business negotiations with a single click. Our proposal is for an online retailstore service that meets the needs of the age of digital transformation.

2

The Faith Group will reorganize its content business with effect from April 1, 2023, with the goal ofestablishing an organization that is better adapted to the needs of the present era. By building a systemcapable of quickly responding to the fast-changing tastes and trends in the music market, we will enhance
our ability to create appealing content and improve our competitiveness. We are aiming to further develop
synergies within the Group by consolidating the major labels, reinforcing and streamlining theadministrative and sales functions, and integrating the assets belonging to each label using the Group’s
own technology.
The Faith Group has consolidated its office functions into the Minami-Aoyama Office, and has
established a permanent telework work system in anticipation of changes in behavioral patterns and theestablishment of new values. By making a company-wide effort to reestablish and activate cross-sectional
communication between departments, we will continue to pursue more flexible workstyles and realize
new, diverse, and efficient working styles.
Regarding the Faith Group’s business performance for the cumulative third quarter of the current fiscal
year ending March 2023, the Group reported an decrease in net sales of 0.2% year over year to ¥11,419
million, an operating loss of ¥212 million (compared with an operating loss of ¥8 million for the same
period of the previous year), an ordinary loss of ¥189 million (compared with an ordinary income of ¥256
million for the same period of the previous year), and a net loss attributable to the owners of the parent of¥254 million (compared with a net loss attributable to the owners of the parent of ¥8 million for the same
period of the previous fiscal 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 fiscal year, the Group has
begun operate under two reportable segments: the Platform Business and the Content Business.
Please note the comparative analysis with the cumulative third quarter of the previous fiscal year isbased on the segment classifications adopted following the change.
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 (*8) 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.
*8. 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
services to maximize sales promotion efficiency in the retail industry.
Regarding the performance of this segment for the cumulative third quarter of the current fiscal year, due

3

to decreases in sales of carrier official website services and in the number of performances available for
distribution services in the mobile phone content distribution field and a decrease in point issuance toexisting member stores in the Retail Point System Operation Platform, net sales decreased by 20.7%
year over year to ¥1,068 million, and the segment recorded a loss of ¥219 million (compared with asegment income of ¥90 million in the same period of the previous fiscal year).
Content BusinessIn the Content Business, we are strengthening new businesses with an eye on the future in order toovercome our dependence on sales of packaged products in the severe environment faced by the music
and video-related industries due to the changing music market.
In an effort to create new hits, the three label companies, Nippon Columbia, DREAMUSIC, and KSR,
are developing and nurturing content compatible with the next-generation music business. In addition,
they are actively utilizing their extensive catalog assets in new projects, with the goal of expanding their
IP domains both domestically and globally.
Regarding the performance of this segment, in response to an increase in activities by affiliated artists, arecovery of sales related to the use of sound sources, and an increase in sales of exclusive mail-orderproducts amid signs of recovery in the entertainment market, net sales increased by 4.2% year over yearto ¥9,810 million and net income increased by 91.0% year over year to ¥287 million.
*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
As of the end of the third quarter of the current fiscal year ending March 2023 (December 31, 2022), total
assets increased by ¥329 million yen compared to the end of the previous fiscal year to ¥25,261 million.
This result was mainly due to an increase in investment securities, while cash and deposits decreased.
Total liabilities increased by ¥1,247 million compared to the end of the previous fiscal year to ¥9,421
million. This result was mainly due to long-term borrowings.
Net assets decreased by ¥917 million compared to the end of the previous fiscal year to ¥176,200 million.
This was mainly due to an increase in the valuation difference on other marketable securities, which waspartially offset by a decrease due to the acquisition of treasury stock.
The equity ratio decreased by 4.5 percentage points to 63.2% from the end of the previous fiscal year.

(3) Explanation Concerning Future Forecast Information on the Consolidated Financial
Results, etc.
For details of the full-year consolidated performance forecast for the fiscal year ending March 31, 2023,
please refer to the “Notice of Revision of Performance Forecast,” which was separately disclosed on
February 14, 2023 (in Japanese).
Performance forecasts are made based on information currently available to the Company, but there is apossibility that the actual performance figures will differ significantly from the forecast figures due to avariety of factors.

4

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

5

As of December 31, 2022

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

10,390,076
2,401,813
320
215,990
353,454368,189
41,9340
1,448,617△23,359
15,197,036

3,454,136

3,660,613

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

1,179,370
370,392
1,549,763

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

4,561,723
262,543
1,080,379△690,452
5,214,193
10,424,569
25,621,606

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

722,066
390,000
536,625
624,687
3,045,025
115,167
204,648
44,855
1,455,713
7,138,788

162,150
542,544

1,033,100
524,092

39,69145,21639,283765,118
3,191
1,551,979
8,174,057

39,283637,998
2,814
2,282,505
9,421,294

(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-sale securities
Foreign currency translation adjustment
Accumulated retired benefit adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6

As of December 31, 2022

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

3,218,000
2,840,496
10,019,143△2,422,428
13,655,211

1,740,714△8,881
56,343
1,788,177－
17,117,737
25,291,794

2,493,988△8,881
59,992
2,545,100－
16,200,311
25,621,606

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)(Thousands of yen)
Nine months ended
December 31, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Interest on securities
Share of profit of entities accounted for using equity
methodGain on investments in investment partnerships
Foreign exchange gains
Subsidy income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodLoss on investments in investment partnerships
Loss on valuation of securities
Foreign exchange losses
Miscellaneous expenses
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sale of investment securities
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on liquidation of subsidiaries
Loss on valuation of investment securities
Total extraordinary losses
Net income (loss) before income taxes
Income taxes - current
Income taxes - deferred
Net income (loss)
Net income attributable to noncontrolling interests
Net income (loss) attributable to owners of parent

7

Nine months ended
December 31, 2022

11,444,650
7,065,011
4,379,639
4,388,262△8,622

11,419,587
7,113,276
4,306,310
4,518,834△212,523

60
4,258
7

138
4,825
132

27,412－

125,308
634
193,549
10,162
361,394

569－
42,98423,253
71,903

3,428

5,919

－

22,172

90,538
1,660－
668
96,295
256,476

10,457
8,840
614
594
48,598△189,217

34,114141
34,255

－
4,882
4,882

42
29,75627,21457,013
233,719
163,479
78,861△8,622－△8,622

1,901
－
－
1,901
△186,236
83,768△15,646△254,358－△254,358

(Consolidated Statement of Comprehensive Income)(Thousands of yen)
Nine months ended
December 31, 2021
Profit (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 of parent
Comprehensive income attributable to non-controllinginterests

8

Nine months ended
December 31, 2022

△8,622△254,358

540,781
21,925753,273－

15,472

3,649

578,179
569,557

756,922502,564

569,557

502,564－－(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 cumulative third quarter of the current fiscal year. As a result of thisacquisition, the total amount of treasury stock was ¥2,422,428 at the end of the current third quarter.
(Changes in Accounting Policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
With effect from the beginning of the first quarter of the current fiscal year, Faith has begun to apply the
Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31,
June 17, 2021, hereinafter the “Implementation Guidance. The Company has decided to apply the new
accounting policies set forth in the Implementation Guidance prospectively in accordance with thetransitional 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 fiscal year, Faith and some of its domestic
consolidated subsidiaries have transitioned from a non-consolidated taxation system to the group 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 3rd quarter of the previous consolidated fiscal year/FY 2021 (April 1, 2021 through Dec. 31, 2021)
1. Information on sales and profit or loss by reportable segment(Unit: thousands of yen)

Adjustment Amount recorded inamountConsolidated Financial(Note 1)
Statements (Note 2)

PlatformContent

Total

2,028,344

9,390,402

11,418,746－

11,418,746－

25,90425,904－25,904

2,028,344

9,416,306

11,444,650－

11,444,650

2,028,344

9,416,306

11,444,650－

11,444,650

234,045

18,470252,516△252,516－

2,262,390

9,434,776

11,697,167△252,516

11,444,650

90,567150,784

241,352△249,974△8,622

Net sales
Goods transferred at a single point in
time
Goods transferred over a period oftime
Revenue from contracts withcustomers
Sales to external customers
Intersegment sales or transfer amount

Total
Segment income or segment loss (△)

Notes: 1. The segment income or loss adjustment amount of △ ¥249,974 thousand consists of ¥1,072 thousand in eliminatedintersegment transactions and △¥251,046 thousand in companywide expenses not allocated to 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 fixed assets or goodwill by segment reported
This information is omitted since there is no critical impairment loss on fixed assets or significant
change in amount of goodwill.
Ⅱ 3rd quarter of the current consolidated fiscal year/FY 2022 (April 1, 2022 through Dec. 31, 2022)
1. Information on sales and profit or loss by reportable segment

9(Unit: thousands of yen)

Adjustment Amount recorded inamountConsolidated Financial(Note 1)
Statements (Note 2)

PlatformContent

Total

1,608,809

9,737,415

11,346,225－

11,346,225－

73,36273,362－73,362

1,608,809

9,810,777

11,419,587－

11,419,587

1,608,809

9,810,777

11,419,587－

11,419,587

292,552

42,307

334,859△334,859－

Total

1,901,361

9,853,084

11,754,446△334,859

11,419,587

Segment income or segment loss (△)△219,046

287,953

68,907△281,430△212,523

Net sales
Goods transferred at a single point in
time
Goods transferred over a period oftime
Revenue from contracts withcustomers
Sales to external customers
Intersegment sales or transfer amountNotes: 1. The segment income or loss adjustment amount of △ ¥281,430 thousand consists of ¥9,348 thousand in eliminatedintersegment transactions and △¥290,779 thousand in companywide expenses not allocated to 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 fixed assets or goodwill by segment reported
This information is omitted since there is no critical impairment loss on fixed 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
fiscal year, the Group has begun operate under two reportable segments: the Platform Business andthe Content Business. Moreover, since Faith Inc. now manages the entire Faith Group following the
integration of the Group’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 theadjustment amount as companywide expenses effective from the first quarter of the current fiscal year.
In addition, segment information for the cumulative third quarter of the previous fiscal year isdisclosed based on the reporting segment classifications resulting from this change.

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