BRIEF STATEMENT OF CONSOLIDATED FINANCIAL RESULTS
FOR THE 2nd QUARTER OF THE FISCAL YEAR ENDING MARCH 2017
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.

November 11, 2016
Faith, Inc. (Stock code 4295, Listed on TSE 1st section)(URL http://www.faith.co.jp/)
Representative: Hajime Hirasawa, CEO/President
Contact: Jiro Saeki, CFO/Director
Tel: +81-3-5464-7633
Date of Submission of Securities Report: November 14, 2016
Starting Date of the Dividend Payment: December 9, 2016
Preparation of Supplementary Materials for Quarterly Financial Results: Applicable
Information Meeting for Quarterly Financial Results to be Held: Applicable (for Institutional
Investors and Analysts)
Amounts are rounded down to the nearest JPY 1 million.

1. Results for the 2nd Quarter of the Fiscal Year Ending March 2017
(From April 1, 2016 to September 30, 2016)(1) Consolidated Operating Results(Percentages indicate changes compared with the same quarter of the previous fiscal year.)

Net Sales

Operating Income

Q2 of the year ending

Millionsof yen%March 2017
March 2016

10,339
9,709

6.5
6.9

Millionsof yenOrdinary Income
Millionsof yen

%

1,129
575

96.2
—

%

1,083
580

Net Income
Millionsof yen

86.7
—

434
313

%
38.5
—

(Note) Comprehensive income: 2nd quarter of the fiscal year ending March 2017: ¥902 million (137.9%); 2nd quarter of fiscal year ending
March 2016: ¥379 million (—%)

Net Income per
Share

Diluted Net
Income per Share

Yen
43.98
30.23

Yen
—
—

Q2 of the year ending
March 2017
March 2016

(2) Consolidated Financial Position
Total Assets

Ratio of Equity Capital

Net Assets Per Share

Millions of yen

Millions of yen%

Yen

25,06017,65563.5

1,613.35

24,712

16,82962.9

1,576.18

Q2 of the year ending
March 2017
Year ending March 2016

Net Assets(Reference) Equity capital: 2nd quarter of fiscal year ending March 2017: ¥15,922 million; fiscal year ending March 2016: ¥15,556 million

2. Dividends
Dividends per Share
(Record dates)

Year ending March 2016
Year ending March 2017st

1 Quarteryen——

3rd Quarter

Interim

yen
5.00
5.00

Year ending March 2017
(Forecast)Year-end

yen
5.00

yen
10.00

—

5.00

10.00

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

1

Total

yen
—

3. Forecast for the Consolidated Results for the Year Ending March 2017（from April 1，2016 to March 31，2017）(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 yen%Millionsof yen%Millionsof yen%Millions ofyen%

20,000

(0.8)

1,570

2.3

1,470

(3.9)

600

(7.1)

Net Income
per Share
Yen
60.79

(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. Summary Information, (2) Adoption of Simplified Accounting Methods in the

Preparation of Quarterly Financial Statements” on page 5 of the accompanying material.

(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
* For details, please refer to “2. Summary Information, (3) Changes in Accounting Principles, Procedures, andDisclosure Methods” on page 5 of the accompanying material.

(4) Outstanding shares (common shares)(i) Outstanding shares at the end of the fiscal years (including treasury shares):
The 2nd quarter of the fiscal year ending March 2017: 11,960,000 shares
The fiscal year ending March 2016: 11,960,000 shares(ii) Treasury shares at the end of the fiscal years:
The 2nd quarter of the fiscal year ending March 2017: 2,090,700 shares
The fiscal year ending March 2016: 2,090,390 shares(iii) Average number of shares at the interim accounting period
The 2nd quarter of the fiscal year ending March 2017: 9,869,423 shares
The 2nd quarter of the fiscal year ending March 2016: 10,363,240 shares* Indication of auditing procedures implementation status
This financial results report is exempt from quarterly review procedures under Japan’s Financial Instruments and Exchange
Law. As of the time of disclosure of this report, the auditing procedure based on the Financial Instruments and Exchange Law
has not been completed.
* 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 the Consolidated
Financial Results, etc.” on page 4 of the accompanying material.
(To obtain supplemental documents relating to financial results)
Supplemental materials related to the Company’s quarterly and other financial results are posted on the company website.

2

Contents
1. Qualitative Information Concerning the Settlement of Accounts for the 2nd 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. Summary Information ······························································································(1) Changes in Major Subsidiaries During the 2nd Quarter ····················································(2) Adoption of Simplified Methods in the Preparation of the Quarterly Financial Statements ·········(3) Changes in Accounting Principles, Procedures, and Disclosure Methods ······························

5
5
5
5

3. Consolidated Financial Statements ··············································································· 6(1) Consolidated Balance Sheet ··················································································· 6(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ········ 8(Consolidated Statement of Income) ·········································································· 8(Consolidated Statement of Comprehensive Income) ······················································· 9(3) Consolidated Statement of Cash Flows ······································································· 10(4) Notes Concerning the Consolidated Financial Statements ················································· 12(Note Concerning the Premise of a Going Concern) ························································ 12(Note in the Case of Significant Changes in the Amount of Shareholders’ Equity) ··················· 12(Segment Information) ························································································· 12

1. Qualitative Information Concerning the Settlement of Accounts for the 2nd Quarter(1) Explanation Concerning the Operating Results
In the domestic information communication field, in keeping with the progress of ICT terminal
performance and the improvement of the broadband environment, both the household smartphone
penetration rate and the number of Internet users are continuing to increase. At the end of 2015, thesmartphone penetration rate for households was 72% (a rise of 7.8 points year on year) and the overall
number of Internet users was 100,460,000 (a rise of 0.3% year on year) (*1). In addition, the creation of
new platforms and markets through the use of innovative technologies such as IoT (the Internet ofThings: the internetworking of physical devices, etc., via the Internet), VR (Virtual Reality), and AR(Augmented Reality) is driving the ongoing diversification and expansion of the Internet businessenvironment on a world scale.
In the music content market, where in line with the popularization of smartphones, etc., music using
styles and sales channels are changing as witnessed by the launch of successive fixed-pricesystem-based music distribution services, in future it will become increasingly important to provide
services that match changing market needs, consumer tastes and lifestyles more promptly than everbefore.
*1. 2016 White Paper on Information and Communications in Japan,
compiled by the Ministry of Internal Affairs and Communications

In the current market environment, the Faith Group is continuing to utilize the results of the efforts it
has been pouring into content digital distribution ever since its establishment, and is forging ahead with
its Multi-Content and Multi-Platform Strategy of creating an environment that allows people to enjoy awide diversity of contents whenever and wherever they choose. The Group is also strengthening thedevelopment of new services in response to the changing market environment such as platforms thatcollect and organize the information flooding the Internet and then provide this to users after increasing
its added value. Moreover, in the Contents Business, Faith is continuing to focus its energies on
constructing music service platforms and expanding and reinforcing its diverse music distribution
businesses by making effective use of in-group business synergies.
Regarding the Faith Group business performance for the second quarter of the fiscal year ending March
2017, although the Contents Business and the Points Business suffered declines in profitability, in the
Columbia Business sales of animation-related titles and game software and sales in the artist
management-related business were favorable. As a result, the Group’s net sales increased by 6.5%
compared with the same quarter of the previous fiscal year to ¥10,339 million, operating income
increased by 96.2% year on year to ¥1,129 million, ordinary income increased by 86.7% year on year to¥1,083 million, and net income attributable to the shareholders of the parent company for the quarter
under review increased by 38.5% year on year to ¥434 million.
Information on each business segment is as follows.
Content BusinessIn the Content Business, the Faith Group is actively pursuing the development of new products in
response to the market environment including the ongoing popularization of smartphones, changing
music listening styles, etc. The Group is proceeding with measures to enhance the added value of its
contents, such as functional improvement and linkage with other services, etc., by verifying the resultsof service contents and marketability, including with regard to existing businesses, while also
proceeding with platformization in the interests of achieving income diversification.
We are actively deploying an expanded range of functions and stepping up our sales activities for
FaRao PRO as a solution service that provides essential functions centered on commercial-use BGM forrestaurants and retailers. We are also working hard to expand the introduction of FaRao PRO andrelated services beginning with FaRao Voice, a commercial-use announcement service designed for use
alongside FaRao PRO, and offering a wide range of channels in order to support the creation in-store
environments.
With Fans’—a fan club operation service for artists that provides a range of functions including music
distribution—originally we were providing support only for the activities of artists affiliated with major

2labels in collaboration with various offices. Since August 2016, however, we have also made Fans’services made available to artists who perform independently. We are endeavoring to obtain utilizing
artists and users by offering a package of services that includes everything from official website
construction and operation to direct sales of music and related-goods, customer management, and accessanalysis by obtaining exclusive artist accounts from web pages. By strengthening the functions that are
essential to their musical activity, this service is allowing more artists to freely send out their musicalwork and information.
As a result of the above developments, taking into account the ongoing positive deployment of newservices in line with the changing market environment and the decline in sales of services to featurephone users, the Content Business recorded net sales of ¥2,217 million (an decrease of 5.3% year onyear), and an operating loss of ¥3 million (compared with operating income of ¥117 million for theprevious fiscal year).
Point Service BusinessIn the Point Service Business, sales of new points issued by participating point card stores remainedrobust and the self liquidation business (*2) also performed well, with the result that this businessrecorded net sales of ¥1,147 million, an increase of 3.1% year on year. However, due to increases inpersonnel expenses, etc., in connection with investment in talented human resources, operating income
decreased by 39.7% year on year to ¥58 million.
*2. A campaign in which users can purchase various goods at a discount by saving points in the form of seals, etc.

Columbia Business
Amid the severe environment facing the music and video-related industry in line with the continuing
shrinking of the music market, the Columbia Business proceeded with its strategy of strengthening new
future-oriented businesses in order to overcome the present situation in which it remains dependent onsales of package products for which the market remains sluggish.
Due mainly to higher sales of animation-related titles and game software titles and to an improved sales
performance in the artist management-related business, overall sales by the Columbia Business totaled¥6,974 million, an increase of 11.5% compared with the same quarter of the previous fiscal year. As forthe profit and loss situation, due to increased sales of high-margin products launched in previous years,
this business segment recorded an operating income for the first quarter under review of ¥1,074 million,
an increase of 201.7% year on year.
*The product and service names appearing in this document are trademarks or registered trademarks of Faith Inc. either
in Japan or in other countries.

3(2) Explanation Concerning the Financial Position(Analysis of Financial Position)
Total assets as of September 30, 2016 increased by ¥348 million compared to March 31, 2016 to¥25,060 million. This result was mainly due to decreases in cash and deposits, and in accounts and notes
receivable.
Total liabilities decreased by ¥476 million compared to the end of the previous consolidated fiscal yearto ¥7,405 million. This result was due mainly to a decrease in current liabilities: others and to therepayment of loans, etc.
Total net assets increased by ¥825 million compared to the end of the previous consolidated fiscal yearto ¥17,655 million. This was mainly due to the recording of a quarterly net income attributable to theshareholders of the parent company, an increase in holdings by non-controlling interests, and thepayment of dividends, etc.
As a result of the above, the equity ratio increased by 0.6 percentage points to 63.5%.
(Cash Flow Situation)
Cash and cash equivalents for the consolidated cumulative 2nd quarter of the current fiscal year
increased by ¥1,909 million from the end of the previous consolidated fiscal year to ¥12,823 million.
Details of cash flow for the consolidated cumulative 2nd quarter and its contributory factors are as
follows:(Cash flow from operating activities)
Cash flow from operating activities amounted to an inflow of ¥1,026 million (an increase of 53.3%
compared with the same period of the previous fiscal year), due mainly to the recording of net income
before income taxes and other adjustments of ¥1,016 million for the previous quarter.
(Cash flow from investing activities)
Cash flow from investing activities amounted to an inflow of ¥1,086 million (a decrease of 34.5%
compared with the same period of the previous fiscal year), due mainly to revenues of ¥2,008 million in
respect of reimbursement of fixed-term deposits, despite outgoings of ¥500 million in respect of making
fixed-term deposits, ¥230 million in respect of acquisition of marketable securities, and ¥147 million in
respect of acquisition of software.
(Cash flow from financing activities)
Cash flow from financing activities amounted to an outflow of ¥256 million (a decrease of 85.6%
compared with the same period of the previous fiscal year), due mainly to outgoings of ¥198 million in
respect of repayment of long-term loans, and ¥49 million in respect of dividend payments.

(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. In addition, the current performance forecast for the full financial year is unchanged
from the forecast issued on November 7, 2016.

4

2. Summary Information(1) Changes in Major Subsidiaries during the 2nd Quarter
Not applicable(2) 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 consolidated financial year including the current 2ndquarter accounting period, and then multiplying the amount of quarterly net income before tax deduction
by the current estimated effective tax rate.

(3) Changes in Accounting Principles, Procedures, and Disclosure Methods(Changes in Accounting Principles)(Adoption of the Practical Solution on a Change in Depreciation Method due to Tax Reform 2016)
In accordance with the revision of the Corporation Tax Act of Japan, effective from the beginning of thefirst quarter of the current consolidated accounting year, the Company adopted the Practical Solution ona Change in Depreciation Method due to Tax Reform 2016 (Accounting Standard Board of Japan
Practical Issues Task Force No.32, issued on June 17, 2016). In applying the revised accounting
standard, the Company changed the depreciation method for facilities attached to buildings and forstructures acquired on or after April 1, 2016 from the declining-balance method to the straight-line
method.
The impact of this change on the Company’s retained earnings or profitability in the first half of thecurrent consolidated accounting year is immaterial.

53. Consolidated Financial Statements(1) Consolidated Balance Sheet
FY 2015(As of March 31, 2016)(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.
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 accounts
Total investments 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
OthersTotal current liabilities
Fixed liabilities
Long-term loans payable
Net defined retirement benefits
Lease obligations
Deferred tax liabilities
OthersTotal fixed liabilities
Total liabilities

6(Unit: thousands of yen)
2nd Quarter of FY 2016

(As of Sept. 30, 2016)

12,680,124
2,388,481
242,521508,709
202,043
47,624
7,492
12,341
920,570(52,908)
16,957,000

13,323,597
2,642,468
233,964
509,817
251,155
61,328
8,224
11,509464,645(19,553)
17,487,158

2,894,315

2,852,872

1,959,316
874,354
2,833,671

1,894,022
887,986
2,782,008

1,753,502
554,302(280,607)
2,027,196
7,755,183
24,712,183

1,642,451
598,394(302,262)
1,938,584
7,573,465
25,060,623

995,288686,120
16,1332,541,442
189,734
66,14733,874
92,333
1,627,967
6,249,041

1,024,356
686,120
11,3232,492,119244,364
65,882
29,466105,363
1,386,640
6,045,637

816,650
609,261
8,028
152,646
46,744
1,633,331
7,882,373

618,590549,1853,740
145,503
42,895
1,359,914
7,405,551

(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
Stock acquisition rights
Minority interests
Total net assets
Total liabilities and net assets

7(Unit: thousands of yen)
2nd Quarter of FY 2016

FY 2015(As of March 31, 2016)(As of Sept. 30, 2016)

3,218,000
3,707,197
11,480,657(3,038,502)
15,367,352

3,218,000
3,707,686
11,865,369(3,038,867)
15,752,189

198,282(8,446)(928)

185,508(13,922)(1,186)

188,908
42,7341,230,815
16,829,810
24,712,183

170,399
15,691
1,716,792
17,655,072
25,060,623

(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
Non-operating income
Interest income
Dividend income
Interest on securities
Gain on investment partnership management
Miscellaneous receipts
Total non-operating income
Non-operating expenses
Interest paid
Equity method investment losses
Loss on investment partnership management
Foreign exchange loss
Miscellaneous expenses
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
Gain in change on equity
Gain on step acquisitions
Gain on reversal of subscription rights to shares
OthersTotal extraordinary income
Extraordinary losses
Loss on disposal of fixed assets
Impairment loss
Loss on reevaluation of investment securities
Provision for copyright-related losses
OthersTotal extraordinary losses
Net income or net loss before income taxes
Corporate, local, and business taxes
Income taxes - deferred
Current quarter net income
Current quarter net income attributable to non-controllinginterests
Current quarter net income attributable to shareholders of
the parent company

8

2nd Quarter of FY 2015

2nd Quarter of FY 2016

(April 1-Sept.30, 2015)
9,709,264
5,881,165
3,828,098
3,252,492
575,606(April 1-Sept. 30, 2016)
10,339,227
6,087,028
4,252,199
3,122,964
1,129,234

2,505
1,977
72
10,84012,443
27,840

519
2,858
15
23,598
5,843
32,835

7,337
10,461
3,162
910
1,058
22,929580,516

6,235
60,388
－
4,105
7,519
78,2491,083,821

990
36,22813,186
14,906
1,511
66,82374－－
27,043－
27,117

3,949
9,966
3,176
10,000500
27,591
619,748
128,274360
491,114
177,787

4,122
－
－
－
－
4,122
1,106,816
186,565580
919,670
485,610313,326

434,060

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

Current quarter net income
Other comprehensive income
Valuation difference on other available-for-salesecurities
Foreign currency translation adjustments
Retirement benefit adjustments
Total other comprehensive income
Comprehensive income(Details)
Comprehensive income attributable to shareholders of
the parent company
Comprehensive income attributable to no-controllinginterests

9

2nd Quarter of FY 2015

2nd Quarter of FY 2016

(April 1-Sept. 30, 2015)
491,114(April 1-Sept. 30, 2016)
919,670(83,279)(12,170)(13,997)(14,576)(111,853)
379,260(4,889)(505)(17,564)
902,105

208,139

415,551

171,121486,554

(3) Consolidated Statement of Cash Flows(Unit: thousands of yen)

Cash flow from operating activities
Gain before income taxes and minority interests
Depreciation and amortization
Impairment losses
Amortization of goodwill
Increase/decrease in allowance for doubtful accounts
Increase/decrease in reserve for bonus
Increase/decrease in allowance for unexercised sales
promotion points
Increase/decrease in liabilities for retirement benefits
Interest and dividends income
Interest on securities
Interest paid
Gain or loss on foreign exchange
Gain or loss on sale of investment securities
Investment gain or loss on equity method
Gain or loss on change in equity
Gain or loss on sale of fixed assets
Gain or loss on disposal of fixed assets
Gain or loss on step acquisitions
Increase/decrease in trade receivables
Increase/decrease in inventory assets
Increase/decrease in trade payables
OthersSub-totalInterest and dividends received
Interest paid
Income tax refunded
Income tax paid
Cash flow from operating activities

10

2nd Quarter of FY 2015
(April 1-Sept. 30, 2015)

2nd Quarter of FY 2016
(April 1-Sept. 30, 2016)

619,748
168,802
9,966
78,29537,916
20,072
1,919

1,106,816
167,460－
69,839(12,306)(264)(4,407)(52,643)(4,483)
(72)
7,337
(943)
3,176
10,461(36,228)
(990)
3,949
(13,186)
619,479
252,862(320,580)(682,010)
722,845
10,225(7,400)55,228(111,228)
669,671(55,927)(3,378)
(15)
6,235
2,424
－
60,388
－
(74)
4,122
－
(267,250)(60,979)
307,268(155,840)
1,164,110
3,599(6,236)
7,492(142,484)
1,026,482

(Unit: thousands of yen)

Cash flow from investing activities
Expenditure for opening of term deposits
Proceeds from withdrawal of term deposits
Expenditure for acquisition of marketable securities
Expenditure for acquisition of tangible fixed assets
Expenditure for acquisition of software
Proceeds from sale of software
Expenditure for acquisition of investment securities
Proceeds from sale of investment securities
Expenditure for acquisition of shares of affiliates
Expenditure for acquisition of goodwill
Proceeds from acquisition of subsidiary shares accompanying
changes in the scope of consolidation
Proceeds from collection of loans receivable
Expenditure for guaranteeing security deposits
Proceeds from collection of security deposits
OthersNet cash flow from investing activities
Cash flow from financing activities
Net increase/decrease in short-term loans payable
Expenditure for repayment of financing and lease obligations
Expenditure for repayment of long-term borrowing
Expenditure for acquisition of treasury stock
Proceeds from sale of treasury stock
Payment of dividends
Payment of dividends to non-controlling shareholders
Net cash flow from financing activities
Effect of exchange rate on cash and cash equivalents
Net increase/decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting from new
consolidation
Cash and cash equivalents at end of the quarter11

2nd Quarter of FY 2015
(April 1-Sept. 30, 2015)

2nd Quarter of FY 2016
(April 1-Sept. 30, 2016)(2,008,740)
4,032,306－(55,763)(191,367)
3,780(61,360)
14,032(100,000)(462)
42,404(500,000)
2,008,881(230,000)(22,658)(147,849)
－
－
8,206
－
－
16,98960－
21,213(36,809)
1,659,291

60(3,008)－(43,800)
1,086,821

30,000(8,878)(170,560)(1,581,408)
69(55,484)(56)(1,786,318)
943
543,588
9,346,285－－(9,098)(198,060)(364)－(49,432)(13)(256,968)(1,719)1,854,615
10,913,765
55,216* 9,889,873* 12,823,597

(4) Notes Concerning the Consolidated Financial Statements(Notes Concerning the Premise of a Going Concern)
Not applicable(Notes in the Case of Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Segment Information)
Ⅰ 2nd quarter of the previous consolidated fiscal year/FY 2015 (April 1, 2015 through Sept. 30, 2015)

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

Point Service Columbia

Total

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

Net sales
Sales to externalcustomers
Intersegment sales
or transfer amount

2,341,871

1,112,539

6,254,853

9,709,264－

9,709,264

74,865778

26,496102,140(102,140)

－

Total

2,416,736

1,113,317

6,281,350

9,811,404(102,140)

9,709,264

117,344

96,207356,073

569,625

5,980

575,606

Segment income/loss

Notes: 1. The segment income or adjustment amount of ¥5,980 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 2nd quarter of the current consolidated fiscal year/FY 2016 (April 1, 2016 through Sept. 30, 2016)

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

Point Service Columbia

Total

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

Net sales
Sales to externalcustomers
Intersegment sales
or transfer amount

2,217,531

1,147,550

6,974,145

10,339,227－

10,339,227

59,069－21,65480,724(80,724)－

Total

2,276,601

1,147,550

6,995,800

10,419,951(80,724)

10,339,227(3,653)58,013

1,074,182

1,128,543

691

1,129,234

Segment income orloss

Notes: 1. The segment income or loss adjustment amount of ¥691 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.

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