BRIEF STATEMENT OF CONSOLIDATED FINANCIAL RESULTS
FOR THE 1st QUARTER OF THE FISCAL YEAR ENDING MARCH 2021
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 14, 2020
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: +81-3-6855-7811
Date of Submission of Securities Report: August 14, 2020
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 2021
(From April 1, 2020 to June 30, 2020)(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 2021
March 2020
(Note)

Operating Income%

Millionsof yen

5,332
4,570

16.7
△14.7

Ordinary Income%

Millionsof yen

545
△54

－
－

%

Millionsof yen624△26

Net Income%

Millionsof yen

－
－

374
△93

－
－

Comprehensive income: 1st quarter of the fiscal year ending March 2021: ¥1,023 million (—%); 1st quarter of the fiscal year ending
March 2020: ¥24 million (△92.6%)

Net Income per
Share

Diluted Net
Income per Share

Yen
29.63
△7.03

Yen
—
—

Q1 of the year ending
March 2021
March 2020

(2) Consolidated Financial Position
Total Assets

Net Assets

Ratio of Equity CapitalMillions of yen

Millions of yen

25,26917,398%68.8

24,746

16,43966.4

Q1 of the year ending
March 2021
Year ending March 2020

(Reference) Equity capital: 1st quarter of fiscal year ending March 2021: ¥17,398 million; fiscal year ending March 2020: ¥16,439 million

2. Dividends
Dividends per Share
(Record dates)

Year ending March 2020
Year ending March 2021
Year ending March 2021
(Forecast)

1 st Quarter

yen
—
—

Interim3 rd Quarter

Year-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 2021
（from April 1，2020 to March 31，2021）(Percentages indicate changes compared with the previous fiscal year and the previous interim result.)

Net Sales

First
half
(cumulative)
Full year(Note)

Operating Income

Ordinary Income

Net Income

Net Income
per Share

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

10,000

△1.8

250

△25.3

350

△8.7

60

－

4.75

20,000

△0.5

500

29.8

550

16.6

100

－

7.91

Forecasts have been modified since the time of the most recently announced business forecast.
In the Brief Statement ofConsolidated Financial Results released on May 14, 2020, regarding the outlook for the fiscal year ending March 2021, we anti cipatedthat the situation would remain uncertain due to the global spread and prolongation of the COVID -19 pandemic, and so we decided
not to issue a forecast for the full fiscal year at that time. However, based on the recent situation, we are now in a positi on to issue
consolidated business forecasts for both the second quarter and the full fiscal year. For details, please refer to “1. Qualitative
Information Concerning the Settlement of Accounts for the 1st Quarter, (3) Explanation Concerning Future Forecast Information on
the Consolidated Financial Results, etc.” on page 4 of the accompanying material.

※ 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” o npage 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 2021: 13,831,091 shares
The fiscal year ending March 2020: 13,831,091 shares(ii) Treasury shares at the end of the fiscal years:
The 1st quarter of the fiscal year ending March 2021: 1,202,037 shares
The fiscal year ending March 2020: 1,201,840 shares(iii) Average number of shares at the interim accounting period
The 1st quarter of the fiscal year ending March 2021: 12,629,112 shares
The 1st quarter of the fiscal year ending March 2020: 13,258,918 shares(Note) The number of shares of treasury stock at the end of the fiscal year includes those shares (262,500 shares in Q1 of the fisca l year ending
March 2021, 262,500 shares in the fiscal year ending March 2020) contributed as trust assets of the performance -linked stockcompensation plan. In addition, these shares are included in the shares of treasury stock deducted in calculating the average number ofshares during the accounting period (262,500 shares in Q1 of the fiscal year ending March 2021, zero shares in Q1 of the fiscal year
ending March 2020).

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

2

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

2
2
4
4

2. Consolidated Financial Statements and Important Explanatory Notes······································ 5(1) Consolidated Balance Sheet ················································································ 5(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ······· 7(Consolidated Statement of Income)········································································ 7(Consolidated Statement of Comprehensive Income)····················································· 8(3) Notes Concerning the Consolidated Financial Statements ·············································· 9(Note Concerning the Premise of a Going Concern) ···················································· 9(Note in the Case of Significant Changes in the Amount of Shareholders’ Equity) ·················· 9(Adoption of Simplified Methods in the Preparation of the Quarterly Financial Statements) ········ 9(Segment Information) ······················································································ 10

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 2019, the Internet penetration rate remained
high at 89.8%, and the percentage of households owning one or more smartphones reached 83.4%,
exceeding the percentage of households that own personal computers. (*1) Furthermore, while themovement away from television has continued since the year 2000, mainly centered on younger people,
advertising expenses for the Internet in Japan increased by 19.7% in 2019 from the previous year to¥2,104.8 billion, exceeding advertising expenses for television of ¥1,861.2 billion for the first time. (*2) In
addition, due to the impact of the spread of the COVID-19, services that allow people to stay online while
communicating at home are spreading, and new lifestyle choices such as teleworking and “contactless”
consumer behavior are beginning to permeate society. Under these circumstances, it is expected that theshift to services in accordance with the era of digitalization will further accelerate as the Internet usage
rate rises, smartphones become even more widespread, and G5 communication services develop.
*1. Source: Ministry of Internal Affairs and Communications, 2019 Telecommunications Usage Trend Survey Results*2. Source: Dentsu Inc., 2019 Advertising Expenditures in Japan

In the entertainment market in 2019, sales in the global music market centered on streaming services grewby 8.2% year-on-year to approximately ¥2,198.4 billion (US$20.2 billion), marking its fifth consecutive
year of sales growth. (*3) Meanwhile in Japan, the production value of music software including music
videos decreased by 5% year-on-year to ¥229.1 billion, and sales of packaged products continued to
decline, but sales of fee-based music distribution increased by 10% to ¥70.6 billion. Sales of streaming
services in particular increased by 33% year-on-year, and the share of music distribution sales accounted
for by streaming greatly exceeded that accounted for by download sales (*4). On the other hand, largescale events and live concerts have been postponed and canceled due to the spread of COVID-19, and it
is estimated that the size of the live entertainment market in 2020 will shrink to less than 30% of theprevious year's level (*5). However, many artists are beginning to experiment with new forms of live
entertainment, such as no audience live distribution—performing live without an audience at the venue
and distributing the performance in real-time via the Internet.
*3. Source: IFPI, Global Music Report 2020 - THE INDUSTRY IN 2019*4. Source: Recording Industry Association of Japan (RIAJ), The Recording Industry in Japan 2020
*5. Source: PIA Research Institute, Japanese Live Entertainment Market Size Preliminary Report (published June 30, 2020)

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 spread of mobile phones. However,the spread of smartphones in today’s music market has been accompanied by the diversification of media
such as streaming, user upload content (UUC) that allows general users to easily transmit information tosociety, and social media, with the result that all kinds of activities in the music industry are changing,including content distribution methods, consumption styles and content production methods.
In the current 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 MultiContent and Multi-Device Strategy of creating environments in which people can enjoy a wide diversityof contents whenever and wherever they choose. We are also strengthening the development of newservices in response to the changing market environment, which includes platforms that collect andorganize the information flooding the Internet and then providing this to users after increasing its added
value.
In June 2020, Faith launched a new service called Thumva, which is an innovative live performance
distribution platform with a variety of additional features. An Internet-based viewing service that provides
new kinds of live experience, Thumva makes possible group viewing and commenting, includes a gifting
function for artists, and allows the audience to share in the uplifting and united feeling of taking part in alive performance without actually attending the venue. A considerable number of artists have alreadyperformed live on Thumva to online audiences, and each of these broadcasts has met with enthusiastic
approval from its viewers. We plan to continue live broadcasting with a variety of lineups in the future.
Faith operates Tokyo's largest music lounge, PLUSTOKYO, and the entertainment facility CROKETMIMIC TOKYO, which specializes in world-class impersonation performances. Due to the spread of
COVID-19, PLUSTOKYO has been closed for business since the end of March, but this facility has

2recently began to utilize the new Thumva service to allow it to function as a live music distribution venue
in order to make the most of its real location without limiting its retail store functions. In addition, from
July 11, we have been taking necessary measures in accordance with the Tokyo Metropolitan Infectious
Diseases Expansion Prevention Guidelines and have restarted operations at PLUSTOKYO on the rooftop
floor. Meanwhile, CROKET MIMIC TOKYO is striving to achieve synergies with other businesses in
the Faith Group, including by promoting live distribution of original content on Thumva.
Regarding the Faith Group’s business performance for the first quarter of the consolidated fiscal year
ending March 2021, while sales in the Content Business continued to decrease in accordance with the
decline in sales of existing distribution services, which account for a major share of overall sales, andwith the suspension of store operations in order to prevent COVID-19 infections, the Points Business andthe Label business both performed strongly. As a result of these factors, the Group reported overall sales¥5,332 million (an increase of 16.7% compared with the same period of the previous fiscal year), an
operating income of ¥545 million (compared with an operating loss of ¥54 million for the same period of
the previous year), an ordinary income of ¥624 million (compared with an ordinary loss of ¥26 million
for the same period of the previous year), and a net income attributable to the shareholders of the parent
company of ¥374 million (compared to a net loss attributable to the shareholders of the parent companyof ¥93 million yen for the same period of the previous 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 weare 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’ such as 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 the membershipbase of Fans’ as a service that allows more artists to disseminate their works and information freely, andwe 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, due to a decrease in carrier official website service sales
and the suspension of store operations in response to the spread of COVID-19, the Content Businessrecorded net sales of ¥743 million (an decrease of 19.9% year-on-year), and an operating loss of ¥144
million (compared with an operating loss of ¥165 million for the same period of the previous fiscal
year).

3

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 fromplanning 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 increased
substantially, with the result that net sales increased by 52.9% year-on-year to ¥1,052 million andoperating income increased by 254.5% year-on-year to ¥118 million.
Label Business
Amid the severe environment facing the music and video-related industry in line with the continuing
shrinkage of the music market, the Label Business is proceeding 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. In order to continue to play a major rolein the music industry in future and expand its revenue, in addition to pursuing the creation of hit products,
artist management, and investment in the live performance business, we consider it necessary to introduce
new services that anticipate the ever-changing market environment.
In this segment, animation and game related sales by Nippon Columbia, Co., Ltd. increased comparedwith the previous fiscal year, resulting in an increase in sales of 19.7% year-on-year to ¥3,537 million,
and an increase in operating income of 656.8% year on year to ¥571 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 2021 (June 30, 2020), total
assets increased by ¥522 million compared to the end of the previous consolidated fiscal year to ¥25,269
million. This result was mainly due to a decrease of ¥52 million in cash and deposits, a decrease of ¥110
million in accounts and notes receivable, and an increase of ¥950 million in investment securities.
Total liabilities decreased by ¥436 million compared to the end of the previous consolidated fiscal yearto ¥7,871 million. This result was mainly due to a decrease of ¥400 million in accounts and notes payable,
a decrease of ¥155 million in income taxes payable, a decrease of ¥198 million in the provision forbonuses, and an increase of ¥284 million yen in deferred tax liabilities.
Net assets increased by ¥958 million compared to the end of the previous consolidated fiscal year to¥17,398 million. This was mainly due to the recording of net income attributable to the shareholders of
the parent company and to an increase in the valuation difference on available-for-sale securities.
As a result of the above, the equity ratio decreased by 2.4 percentage points to 68.8%.

(3) Explanation Concerning Future Forecast Information on the Consolidated Financial
Results, etc.
Regarding the consolidated business forecast, although the details were previously undecided due to the
spread and prolongation of the COVID-19 pandemic, we have disclosed the second quarter and full-year
consolidated business results forecasts based on the information currently available to the Company.
Among the factors involved, we anticipate the impact of the spread of COVID-19 on store operations, thepostponement and cancellation of live events, and the postponement of releases. The impact of COVID19 is expected to remain uncertain during the current fiscal year, and we predict that this uncertain
situation will continue into the future. If the possibility emerges of the forecast changing significantly
based on actual performance trends, we will disclose the relevant information promptly.

4

2. Consolidated Financial Statements and Important Explanatory Notes(1) Consolidated Balance Sheet(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
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
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
Reserve for stock benefits for directors
Deferred tax liabilities
Other fixed liabilities
Total fixed liabilities
Total liabilities

5

FY 2019(As of March 31, 2020)

1st Quarter of FY 2020
(As of June 30, 2020)

12,635,849
2,199,541
230,879
446,811578,771
75,973
68,295
482,059△18,532
16,699,651

12,583,045
2,089,114
231,002401,286
499,996
43,791
68,054
517,886△18,700
16,415,477

2,646,472

2,625,738

1,520,453
455,507
1,975,960

1,489,263
433,390
1,922,654

2,145,096
765,419
1,037,457△523,083
3,424,888
8,047,321
24,746,972

3,095,371
691,214
1,043,908△524,769
4,305,724
8,854,117
25,269,594

1,039,823
609,900
2,725,341
341,858
347,424
364
90,279
1,531,411
6,686,405

639,815
588,700
2,757,947
186,722
149,128368
60,364
1,686,650
6,069,698

440,350
652,153
16,401
333,275
179,374
1,621,554
8,307,960

386,375
631,227
21,286
618,060
144,936
1,801,885
7,871,584

(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(Unit: thousands of yen)
1st Quarter of FY 2020

FY 2019(As of March 31, 2020)(As of June 30, 2020)

3,218,000
2,840,095
10,854,165△1,124,344
15,787,916

3,218,000
2,840,095
11,164,158△1,124,468
16,097,785

737,236△21,026△65,114

1,385,335△29,674△55,435

651,096－
16,439,012
24,746,972

1,300,224－
17,398,010
25,269,594

(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 equity method investment
Gain on valuation of investment securities
Miscellaneous receipts
Total non-operating income
Non-operating expenses
Interest paid
Loss on investment partnership management
Loss on equity method investment
Loss on foreign exchange
Miscellaneous expenses
Total non-operating expenses
Ordinary income or ordinary loss (△ = loss)
Extraordinary losses
Loss on disposal of fixed assets
Loss on valuation of investment securities
Total extraordinary losses
Current quarter net income or net loss before taxes (△ =net loss)
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 toshareholders of the parent company (△ = net loss)

7

1st Quarter of FY 2019

1st Quarter of FY 2020

(April 1-June 30, 2019)
4,570,396
2,910,835
1,659,561
1,713,832△54,270(April 1-June 30, 2020)
5,332,543
3,244,374
2,088,169
1,542,743
545,425

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

5,263
3,053
5
72,787
27,970230
14,488
123,799

1,316
－
500
9,590
6,286
17,694△26,741

1,755
34,252－
312
8,169
44,490624,735

12
49,99950,012△76,753－－－624,735

17,794△1,224△93,323△93,323

176,491
74,001
374,242374,242(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

1st Quarter of FY 2019

1st Quarter of FY 2020

(April 1-June 30, 2019)(April 1-June 30, 2020)△93,323

374,242

115,372

648,098△4,7207,368
118,020
24,696△8,6489,679
649,128
1,023,371

24,696

1,023,371－－

(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 of quarterly
net income before tax deduction for the current consolidated financial year including the first quarter, andthen multiplying the amount of quarterly net income before tax deduction by the current estimatedeffective tax rate.

9

(Segment Information)
Ⅰ 1st quarter of the previous 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)Amount recorded inContent

Point Service

Label

Total

Adjustment
Consolidated Financial
amount (Note 1) Statements (Note 2)

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

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

1. The segment income adjustment amount of ¥1,243 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 2020 (April 1, 2020 through June 30, 2020)

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

743,045 1,052,263 3,537,234

5,332,543－

5,332,543

775

61,350△61,350－

803,569 1,052,313 3,538,009

5,393,893△61,350

5,332,543

544,734

691

545,425

60,524

Segment income or△144,858
loss (△)

50

118,402571,190

Notes: 1. The segment income 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.

10