BRIEF STATEMENT OF CONSOLIDATED FINANCIAL RESULTS
FOR THE 1st QUARTER OF THE FISCAL YEAR ENDING MARCH 2020
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 13, 2019
Faith, Inc. (Stock code 4295, Listed on TSE 1st section)(URL http://www.faith.co.jp/)
Representative:
Hajime Hirasawa, CEO/President
Tel: +81-3-5464-7633
Contact:
Jiro Saeki, CFO/Director
Date of Submission of Securities Report:
Aug. 13, 2019
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 2020
(From April 1, 2019 to June 30, 2019)(1) Consolidated Operating Results (cumulative totals)(Percentages indicate changes compared with the 1st quarter of the previous fiscal year.)

Net Sales

Q1 of the year ending
March 2020
March 2019

Operating Income%

Millionsof yen

4,570
5,360

△14.7
6.5

Ordinary Income%

Millionsof yen△54
207%

Millionsof yen

－
△41.4

△26
216

Net Income%

Millionsof yen

－
△27.5

△93
320

－
298.0

(Note) Comprehensive income: 1st quarter of the fiscal year ending March 2020: ¥24.0 million (△92.6%); 1st quarter of the fiscal year
ending March 2019: ¥333 million (△20.7%)

Net Income per
Share

Diluted Net
Income per Share

Yen
△7.03
23.49

Yen
—
—

Q1 of the year ending
March 2020
March 2019(2) Consolidated Financial Position
Total Assets

Net Assets

Ratio of Equity CapitalMillions of yen

Millions of yen

24,403

17,478%71.6

24,343

17,52072.0

Q1 of the year ending
March 2020
Year ending March 2019

(Reference) Equity capital: 1st quarter of fiscal year ending March 2020: ¥17,478 million; fiscal year ending March 2019: ¥17,520 million

2. Dividends
Dividends per Sharest(Record dates)

1 Quarteryen——Year ending March 2019Year ending March 2020
Year ending March 2020
(Forecast)

3rd Quarter

InterimYear-end

Total

yen
5.00

yen
—

yen
5.00

yen
10.00

5.00

—

5.00

10.00

(Notes) 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 2020
（from April 1，2019 to March 31，2020）(Percentages indicate changes compared with the previous fiscal year and the previous interim result.)

Net Sales

First
half
(cumulative)
Full year

Operating Income

Ordinary Income

Net Income

Net Income
per Share

Millions ofyen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

10,100

△4.7

100

△54.3

20

△89.7

－

－

－

20,000

△4.6

300

107.9

300

－

200

－

15.08

(Note) Forecasts for dividends have not 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: Applicable* For details, please refer to “2. Consolidated Financial Statements and Important Explanatory Notes, (3) Notes Concerning theConsolidated Financial Statements (Adoption of Simplified Methods in the Preparation of the Quarterly Financial Statements” onpage 9 of the accompanying material.

(3) Changes in accounting policy, changes in accounting estimates, and restatements(i) Changes accompanying revisions of accounting standards, etc.: None(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 fiscal years (including treasury shares):
The 1st quarter of the fiscal year ending March 2020: 13,831,091 shares
The fiscal year ending March 2019: 13,831,091 shares(ii) Treasury shares at the end of the fiscal years:
The 1st quarter of the fiscal year ending March 2020: 572,262 shares
The fiscal year ending March 2019: 572,000 shares(iii) Average number of shares at the interim accounting period
The 1st quarter of the fiscal year ending March 2020: 13,258,918 shares
The 1st quarter of the fiscal year ending March 2019: 13,635,147 shares* 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. (3) Explanation Concerning Future Forecast Information on theConsolidated Financial Results, etc.” on page 4 of the accompanying material.

2

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

2
2
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2. Consolidated Financial Statements and Important Explanatory Notes ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ
(1) Consolidated Balance Sheet ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ
(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ꞏꞏꞏꞏꞏꞏꞏꞏ
(Consolidated Statement of Income) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ
(Consolidated Statement of Comprehensive Income)ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ
(3) Notes Concerning the Consolidated Financial Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ
(Note Concerning the Premise of a Going Concern) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ
(Note in the Case of Significant Changes in the Amount of Shareholders’ Equity) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ
(Adoption of Simplified Methods in the Preparation of the Quarterly Financial Statements) ꞏꞏꞏꞏꞏꞏꞏ
(Segment Information) ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

5
5
7
7
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9
9
9
9
10

1

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 2018, the Internet penetration rate remained
high at 79.8%, and the percentage of households owning one or more smartphones reached 79.2%,
exceeding the percentage of households that own personal computers. (*1) Meanwhile, since 2000, themovement away from television has been progressing centered mainly on the younger generation, while
Internet usage time has risen significantly, particularly among those in their 20s for whom the increasein Internet usage time mirrors the decrease in television viewing time. (*2) Moreover, the usage rate ofpersonal social networking services now exceeds 60%. The ongoing transition to services in line withthe digital era is expected to accelerate in future as the Internet usage rate climbs further and smartphoneownership continues to spread. Under these circumstances, it is becoming even more important for Faith
to respond swiftly to user needs that are in keeping with the times.
*1. Source: Ministry of Internal Affairs and Communications,
Survey Results of 2018 Communication Usage Trend Survey*2. Source: Ministry of Internal Affairs and Communications,2019 White Paper on Information and Communications in Japan

Also, in the entertainment market, sales in the global music market centered on streaming services grewby 10% year-on-year to US$19 billion (*3), increasing for the fourth consecutive year and recording its
highest annual sales growth since 1996. In Japan as well, the production value of music software
including music videos increased by 4% from the previous year to 240.3 billion yen (*4), with sales
increasing for the first time in three years. Although sales of packaged products continued to decline,
fee-based music distribution sales increased by 13% year-on-year to ¥64.5 billion with sales of
streaming services in particular leaping by 33% year-on-year to exceed download sales for the first time.
Meanwhile, the size of the live entertainment market increased by 4% from the previous year to ¥344.8
billion, driven by an expansion of “experience” consumption (*5).
*3. Source: IFPI Global Music Report 2019*4. Source: Recording Industry Association of Japan (RIAJ),
The Recording Industry in Japan 2018
*5. Source: All Japan Concert & Live Entertainment Promoters Conference (ACPC),
2018 Basic Research Report

Founded in 1992, Faith was the first company in the world to commercialize ringtones, and has steadilygrown focusing on the music distribution business and in step with the spread of mobile phones. In thecurrent music market, amid the growing popularity of smartphones, streaming media, user upload
content (UUC) that allows general users to easily transmit information to society, and media
diversification such as social media, etc., all kinds of activities in the music industry have beenchanging, including musical styles and content production methods.
Given this environment, the Faith Group is continuing to utilize the results of the efforts it has beenpouring 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 of contents whenever and wherever they choose. We are also strengthening the developmentof new services in response to the changing market environment, which includes platforms that collectand organize the information flooding the Internet and then providing this to users after increasing its
added value.
With the number of tourists visiting Japan continuing to increase steadily, in anticipation of the
expansion of the Japanese nighttime economy, Faith opened Tokyo's largest music lounge
PLUSTOKYO in Ginza, Tokyo in November 2018 and followed this in June 2019 with the opening ofan entertainment spot CROKET MIMIC TOKYO in Roppongi, Tokyo that specializes in world-classimpersonation performances. As the above examples illustrate, we are working to create newentertainment hubs for new markets that are expected to expand in future.
Regarding the Group business performance for the first quarter of the consolidated fiscal year ending
March 2020, although the Points Business performed strongly, sales of existing distribution services,which account for a major share of overall sales, continued to decline, and sales in the Label Business22

also declined year-on-year. As a result of these factors, the Group reported a decrease in net sales of
14.7% compared with the same period of previous fiscal year to ¥4,570 million, an operating loss ofloss of ¥54 million (compared with operating income of ¥207 million for the same period of previous
fiscal year), an ordinary loss of ¥26 million (compared with ordinary income of ¥216 million for thesame period of the previous fiscal year), and a net loss attributable to the shareholders of the parent
company of ¥93 million (compared with a net income attributable to the shareholders of the parent
company of ¥320 million for the same period of the previous fiscal year).
Information on each business segment is as follows.
Content BusinessIn the Content Business, while sales in the existing distribution business continue to decline, the FaithGroup is actively promoting business development in Asian countries and other countries where highgrowth rates are expected. In addition, we are interlinking and platforming various services in an effort
to develop new products and services and grasp diversified revenue opportunities, and we will continue
to invest in growth areas in future.
We are actively developing FaRao PRO not only as a service providing business BGM but also for sales
activities focused on expanding the functions necessary for store management, such as solutions andannouncement functions that make store-branding proposals. In addition to conventional products using
tablet devices, we have also released an app-version service that offers users reduced initial costs and
we are working to strengthen retail store sales through collaboration with the Point Service Business.
Moreover, based on our Japanese service, we have started FaRao PRO services in Indonesia, and for the
future we are aiming to create and activate new BGM markets both in Japan and overseas.
In Fans’, our platform of services for artists based on the D2C (*6) business model, which is expected to
expand in future, we are enhancing the functions essential to artists’ musical activities such as official
website construction, music and video distribution, sales of artist goods, and fan club operation. In June
2019, we began working to further expand the functions of Fans’ by introducing a system that
contributes to the creation of communities by spreading information transmitted by creators throughstrengthened cooperation with SNS. We are also aiming to acquire new users and expand themembership base of Fans’ as a service that allows more artists to disseminate their works andinformation freely, and we will endeavor to improve the quality of the service by pursuing enhanced
convenience.
*6. Abbreviation of “Direct to Consumer”—a business model for delivering
services and products planned and manufactured by Faith directly to users

Regarding the performance of this segment, buoyed by the contribution of sales in new businesses, theContent Business recorded net sales of ¥927 million (an increase of 13.0% year-on-year). However, due
to a decrease in carrier official website service sales and delays in the progress of new business ventures,
this segment recorded an operating loss of ¥165 million (compared with an operating loss of ¥85 million
for the same period of the previous fiscal year).
Point Service BusinessIn the Point Service Business, in addition to providing point issue services to retail stores, we offer total
support for point issue data acquisition, analysis and sales promotion utilization as a series of cycles
from planning to operation, and we provide outsourcing services that maximize retail sales promotion
efficiency.
Regarding the performance of this segment, the issue of points at existing member stores remained
steady in line with the deployment of sales promotion measures. In addition, sales of solution tools forstores increased, with the result that net sales increased by 2.5% year-on-year to ¥688 million while
operating income decreased by 2.6% year-on-year to ¥34 million.
Label Business
Amid the difficult and changing environment of the music and video-related industry, the LabelBusiness is proceeding with its strategy of strengthening new future-oriented businesses in order toovercome the present situation in which it remains dependent on sales of package products. In order tocontinue to play a major role in the music industry and expand its revenue, in addition to pursuing the33

creation of hit products, artist management, and investment in the live performance business, weconsider it necessary to introduce new services that anticipate the ever-changing market environment.
In this segment, sales of animation-related titles released by DREAMUSIC Inc. and sales of live artist
performances, animation titles and game titles released by Nippon Columbia, Co., Ltd. decreased
compared with the same period of the previous fiscal year, resulting in a decline in sales of 23.6%
year-on-year to ¥2,954 million, and a decline in operating income of 70.6% year-on-year to ¥75 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 first quarter of the consolidated fiscal year ending March 2020 (June 30, 2019),
total assets increased by ¥59 million compared to the end of the previous consolidated fiscal year to¥24,403 million. This result was mainly due to a decrease of ¥240 million in accounts and notes
receivable and an increase of ¥406 million in investments and other assets.
Total liabilities increased by ¥101 million compared to the end of the previous consolidated fiscal yearto ¥6,924 million. This result was mainly due a to decrease of ¥136 million in accounts and notes
payable and an increase of ¥266 million yen in other fixed liabilities.
Net assets decreased by ¥41 million compared to the end of the previous consolidated fiscal year to¥17,478 million. This was mainly due to an increase in retained earnings due to the recording of net loss
attributable to the shareholders of the parent company and the payment of dividends.
As a result of the above, the equity ratio decreased by 0.4 percentage points to 71.6%.

(3) Explanation Concerning Future Forecast Information on the Consolidated Financial
Results, etc.
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.

44

2. Consolidated Financial Statements and Important Explanatory Notes(1) Consolidated Balance Sheet
FY 2018(As of March 31, 2019)(Assets)
Current assets
Cash and deposits
Accounts and notes receivable
Marketable securities
Commercial products
Products in progress
Primary materials and inventory goods
Corporation tax refund receivable, etc.
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Intangible fixed assets
Goodwill
Other intangible fixed assets
Total intangible fixed assets
Investment and other assets
Investment securities
Deferred tax assets
Other investment and other assets
Allowance for doubtful accounts
Total investment and other assets
Total fixed assets
Total assets(Liabilities)
Current liabilities
Accounts and notes payable
Short-term loans payable
Lease obligations
Accrued expenses payable
Income taxes payable
Reserve for bonuses
Reserve for point card certificates
Reserve for sales returns
Other current liabilities
Total current liabilities
Fixed liabilities
Long-term loans payable
Net defined retirement benefits
Lease obligations
Deferred tax liabilities
Other fixed liabilities
Total fixed liabilities
Total liabilities

55(Unit: thousands of yen)
1st Quarter of FY 2019

(As of June 30, 2019)12,150,463
2,063,965
232,066
484,367
394,308
61,544
212,102534,205△19,401
16,113,621

12,074,252
1,823,888
233,450
467,170
492,261
59,905214,378
490,775△19,330
15,836,751

3,257,801

3,231,039

1,541,584
556,635
2,098,219

1,515,086
540,282
2,055,368

1,957,225
454,354942,793△480,799
2,873,573
8,229,594
24,343,216

2,108,107
450,628
1,212,889△491,717
3,279,907
8,566,315
24,403,067

905,762
509,950662
2,749,170
116,814
79,633374
62,356
1,516,430
5,941,156

769,245
507,500
482
2,706,052
33,06941,331570
53,878
1,582,769
5,694,899

63,000632,53860
139,595
46,577881,771
6,822,927

93,900637,15460
185,341
313,244
1,229,699
6,924,598

(Net assets)
Shareholder's equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholder's equity
Other accumulated comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Cumulative adjustment for retirement benefit
obligations
Total other accumulated comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6
6(Unit: thousands of yen)
1st Quarter of FY 2019

FY 2018(As of March 31, 2019)(As of June 30, 2019)

3,218,000
3,019,175
11,872,088△802,315
17,306,948

3,218,000
3,019,175
11,712,468△802,535
17,147,108

307,035△10,936△82,758

422,407△15,656△75,390

213,340－
17,520,288
24,343,216

331,360－
17,478,469
24,403,067

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)(Unit: thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income or operating loss (△ = loss)
Non-operating income
Interest income
Dividend income
Interest on securities
Gain on investment partnership management
Gain on valuation of investment securities
Gain on foreign exchange
Miscellaneous receipts
Total non-operating income
Non-operating expenses
Interest paid
Loss on equity method investment
Loss on foreign exchange
Miscellaneous expenses
Total non-operating expenses
Ordinary income or ordinary loss (△ = loss)
Extraordinary income
Gain on sale of shares of affiliates
Total extraordinary income
Extraordinary losses
Loss on disposal of fixed assets
Gain on valuation of investment securities
Total extraordinary losses
Net income or net loss before income taxes
Corporate, local, and business taxes
Income taxes - deferred
Current quarter net income or net loss (△ = net loss)
Current quarter net income or net loss attributable tonon-controlling interests (△ = net loss)
Current quarter net income or net loss attributable toshareholders of the parent company (△ = net loss)

7
7

1st Quarter of FY 2018

1st Quarter of FY 2019

(April 1-June 30, 2018)
5,360,908
3,453,870
1,907,038
1,699,575
207,462(April 1-June 30, 2019)
4,570,396
2,910,835
1,659,561
1,713,832△54,270

15
2,565
28
19,759－354
4,322
27,046

304
3,005
38
35,329
1,620
－
4,925
45,223

1,449
15,677－815
17,942
216,566

1,316
500
9,590
6,286
17,694△26,741

161,965
161,965

－
－

9,035
－
9,035
369,496
73,288△23,804
320,012△379

1249,99950,012△76,753
17,794△1,224△93,323－

320,391△93,323

(Consolidated Statement of Comprehensive Income)(Unit: thousands of yen)

Current quarter net income or net loss (△ = net loss)
Other comprehensive income
Valuation difference on other available-for-salesecurities
Foreign currency translation adjustments
Retirement benefit adjustments
Total other comprehensive income
Current quarter comprehensive income(Details)
Comprehensive income attributable to shareholders of
the parent company
Comprehensive income attributable to non-controllinginterests

8
8

1st Quarter of FY 2018

1st Quarter of FY 2019

(April 1-June 30, 2018)
320,012(April 1-June 30, 2019)△93,323

10,388115,372△1,800
5,048
13,636
333,649△4,7207,368
118,020
24,696

334,028

24,696△379－

(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)
Not applicable(Adoption of Simplified Methods in the Preparation of the Quarterly Financial Statements)
Tax expenses for the Company and a portion of its consolidated subsidiaries are calculated by making areasonable estimate of the effective tax rate after applying tax effect accounting to the amount ofquarterly net income before tax deduction for the current consolidated financial year including the firstquarter, and then multiplying the amount of quarterly net income before tax deduction by the current
estimated effective tax rate.

99

(Segment Information)
Ⅰ 1st quarter of the previous consolidated fiscal year/FY 2018 (April 1, 2018 through June 30, 2018)

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

Point Service

Label

Total

Amount recorded in
Adjustment
Consolidated Financial
amount (Note 1) Statements (Note 2)

Net sales
Sales to externalcustomers
Intersegment sales
or transfer amount821,350

671,1223,868,435

5,360,908－

5,360,908

17,687481

75

18,243△18,243－

Total

839,037

671,6033,868,511

5,379,152△18,2435,360,908

Segment income orloss (△)△85,241

35,199257,028

206,986476

207,462

Notes: 1. The segment income adjustment amount of ¥476 thousand is calculated by eliminating intersegment transactions.
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 1st quarter of the current consolidated fiscal year/FY 2019 (April 1, 2019 through June 30, 2019)

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

Point Service

Label

Total

Amount recorded in
Adjustment
Consolidated Financial
amount (Note 1) Statements (Note 2)

Net sales
Sales to externalcustomers
Intersegment sales
or transfer amount
Total
Segment income orloss (△)

927,951

688,051

2,954,393

4,570,396－

4,570,396

20,85632

3,328

24,217△24,217－

948,807

688,084

2,957,722

4,594,614△24,217

4,570,396△165,269

34,27875,475△55,5141,243△54,270

Notes: 1. The segment income adjustment amount of ¥1,243 thousand is calculated by eliminating intersegment transactions.
2. Segment income or loss 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.

10
10