BRIEF STATEMENT OF CONSOLIDATED FINANCIAL RESULTS
FOR THE 2nd QUARTER OF THE FISCAL YEAR ENDING MARCH 2014
[Japanese Standards]

November 12, 2013
Company name:
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, 2013
Starting Date of the Dividend Payment: December 10, 2013
Preparation of Supplementary Materials for Quarterly Financial Results: Applicable
Information Meeting for Quarterly Financial Results to be Held: Applicable (for Institutional Investors andAnalysts)
Amounts are rounded down to the nearest ¥1 million.

1. Consolidated Results for the 2nd Quarter of the Fiscal Year Ending March 2014
(From April 1, 2013 to September 30, 2013)(1) Consolidated Operating Results
Percentages indicate increased/decreased ratio compared with the same quarter of the previous fiscal year

Net Sales

Operating Profit%

Millionsof yenQ2 of the year ending
March 2014
Q2 of the year ending
March 2013
Note:

Recurring Profit%

Millionsof yenNet Profit%

Millionsof yen%Millionsof yen

3,172

△7.1

309

△45.0

342

△39.8

332

△34.8

3,413

△88.5

564

△48.0

569

△50.7

509

△91.7

Comprehensive income: 2nd quarter of fiscal year ending March 2014: ¥543 million (△19.2%); 2nd quarter of fiscal year ending
March 2013: ¥455 million (△92.9%)

Net Profit per Share

Diluted Net Profit per ShareQ2 of the year ending March 2014

Yen
29.17

Yen
29.17

Q2 of the year ending March 2013

44.38

—

Note: With effect from October 1, 2013, the Company carried out a stock split of its common shares at a ratio of 10 shares per share. For thisreason, the quarterly net profit per share and the quarterly diluted net profit per share are calculated under the supposition that thestock split had taken place at the beginning of the previous consolidated fiscal year.

(2) Consolidated Financial Position
Total Assets

Ratio of Equity Capital

Net Profit Per Share

Millions of yen

Millions of yen%

yen

22,874

21,03892.0

1,846,56

22,611

20,55290.9

1,803.89

Q2 of the year
ending March 2014
Year ending March
2013

Net Assets

Reference: Equity Capital: 1st quarter of fiscal year ending March 2014: ¥21,038 million; fiscal year ended March 2013: ¥20,552 million
Note:With effect from October 1, 2013, the Company carried out a stock split of its common shares at a ratio of 10 shares per share. For
this reason, the net assets per share are calculated under the supposition that the stock split had taken place at the beginning of theprevious consolidated fiscal year.

2. Dividends
Dividends per share(Record dates)

Year ending March 2013
Year ending March 2014

1st Quarter

yen
―
―

Interim

yen
50.00
50.00

Year ending March 2014 (Forecast)

3rd Quarter

Year-end

Total

yen
―

yen
50.00

yen
100.00―5.00—

Note: Forecasts for the dividends have not modified at the announcement of the financial statements for FY2013 Q2.
With effect from October 1, 2013, the Company carried out a stock split of its common shares at a ratio of 10 shares per share. The
size of the year-end dividend per share (forecast) for the year ending March 2014 is being considered in view of the implementation ofthis stock split.

13. Forecast for the Consolidated Business Results for the Year Ending March 2014
(from April 1, 2013 to March 31, 2014)(Percentages indicate changes compared with the previous fiscal year.)

Net Sales

Full year
ending March2014

Operating Profit

Recurring Profit

Net Profit

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen

%

6,700

△0.5

400

△60.5

440

△60.7

380

△65.8

Net Profit
per Share
Yen
33.35

Note: Forecasts for the consolidated business results have not been modified at the time of announcement of the financial statements for
FY2013 Q2.
With effect from October 1, 2013, the Company carried out a stock split of its common shares at a ratio of 10 shares per share. The
size of the year-end dividend per share (forecast) for the year ending March 2014 is being considered in view of the implementation ofthis stock split.

※ 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 4 of the accompanying material.

(3) Changes in accounting policy, changes in accounting estimates, and restatements(3)-1. Changes accompanying revisions of accounting standards, etc.: None(3)-2. Changes other than the above: None(3)-3. Changes in accounting estimates: None(3)-4. Restatements: None
(4) Outstanding shares (common shares)(4)-1. Outstanding shares at the end of the fiscal years (including treasury shares):
The 2nd quarter of the fiscal year ending March 2014: 11,196,000 shares
The fiscal year ending March 2013: 11,196,000 shares(4)-2. Treasury shares at the end of the fiscal years:
The 2nd quarter of the fiscal year ending March 2014: 566,570 shares
The fiscal year ending March 2013: 566,570 shares(4)-3. Average number of shares at the interim accounting period
The 2nd quarter of the fiscal year ending March 2014: 11,393,430 shares
The 2nd quarter of the fiscal year ending March 2013: 11,480,500 shares(Note) With effect from October 1, 2013, the Company carried out a stock split of its common shares at a ratio of 10 shares per share. The
abovementioned numbers of shares are calculated under the supposition that the stock split had taken place at the beginning of the previous
consolidated fiscal year.

* 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. Qualitative Information Concerning the Settlement of Accounts for the 2nd Quarter,(3) Explanation Concerning Future Forecast Information on the Consolidated Financial Results, etc.” on page 3 of theaccompanying material.
(To obtain supplemental documents relating to financial results)
Supplemental documents related to the Company’s quarterly and other financial results are posted on the company website.
(URL: http://www.faith-inc.com/ir/library.html )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
3
3

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 ······························

4
4
4
4

3. Consolidated Financial Statements ··············································································· 5(1) Consolidated Balance Sheet for the 2nd Quarter ··························································· 5(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ········ 7
Consolidated Statement of Income for the 2nd Quarter ················································· 7
Consolidated Statement of Comprehensive Income for the 2nd Quarter······························ 8(3) Consolidated Statement of Cash Flows for the 2nd Quarter････････････････････････････････････ 9(4) Notes Concerning the Consolidated Financial Statements ･･････････････････････････････････ 11
Note Concerning the Premise of a Going Concern ····················································· 11
Note in the Case of Significant Changes in the Amount of Shareholders’ Equity ·················· 11
Segment Information ························································································ 111Qualitative Information Regarding Quarterly Performance and Financial Position(1) Qualitative Information Regarding the Consolidated Operating Results
In Japan, the number of individual mobile phone and smartphone subscriptions reached 140,190,000 in
September 2013 (*1). In particular, the demand for smartphones continues to increase, with smartphones
shipments forecast to reach 29,900,000 units in FY 2013, accounting for 75.5% of total mobile phone
shipments (*2). With the popularization of these smartphone and tablet devices as a background, in
accordance with the diversification of the means of information distribution such as SNS (Social
Network Services) and social games, it is essential to create new services and content distribution
systems to meet emerging user needs.
(*1) Presentation materials by the Telecommunications Carriers Association, (*2) Research by MM Research Institute

Against the background of this highly diversified market environment, based on its Multi-Content andMulti-Platform Strategy of creating an environment that allows people to enjoy a wide diversity ofcontents whenever and wherever they choose, the Faith Group is moving ahead with the production of
new contents including music and video in order to be able to bring excellent high-value-added contents
to the market promptly. At the same time, we are proceeding with the provision of highly convenientservices including new services for users of smartphones, for which popularization is accelerating.
During the 2nd quarter of the fiscal year ending March 2014, Faith Inc. focused its efforts on obtaining
smartphone users as customers for smartphone-use music streaming distribution services and in order tostrengthen its application distribution business, etc. With effect from October 1, 2013, the Company
carried out a stock split of its common shares at a ratio of 10 new shares per share, while at the sametime changing the trading unit (share unit) for which share transactions can be conducted from one shareto 100 shares.
Net sales for the 2nd quarter of the fiscal year ending March 2014 decreased by 7.1% compared withthe same term of the previous fiscal year to ¥3,172 million, operating profit decreased by 45.0% year on
year to ¥309 million, recurring profit decreased by 39.8% year on year to ¥342 million, and net profit
decreased by 34.8% year on year to ¥332 million.
Information on each business segment is as follows.
<Content Business>
During the period under review, the Faith Group continued its efforts to establish a new framework forcontent distribution and to expand and strengthen its new business operations base.
In the ringtone melody field, which is a part of the Content Business, because a shift is taking place inthe smartphone-use market, amid a declining trend in sales, we are strengthening our distribution of
applications to the mobile market, which continues to expand, and carrying out measures in order toobtain more smartphone users as customers.
FaRaoTM, Japan’s first internet-based radio service equipped with a recommendation function, has beendeveloped for smartphone use and is also standard equipped with HIKARI BOX+, provided by NTT
West Corporation, a new service that makes it possible for listeners to gain easy access to a wide rangeof music information via a home TV set. Meanwhile, in the KidzapplanetTM service, a worldwide
intellectual training application brand for pre-school children, the total number of downloads of the ten
titles (including Minna no Mushimegane Tanken and Dobutsu Puzzle, which were released in July)reached approx. 700,000, and these applications have also become popular overseas, with more thanhalf of all downloads taking place in Southeast Asia.
Moreover, with the aim of providing an enhanced content lineup, the Company started an audition
project, the Pop Icon Project Tokyo, with Nicola Formichetti, the well-known fashion director who
collaborates with Lady Gaga, in order to discover girl vocal units that can represent Japan and enchantthe world. By the end of September, we had received almost 1,000 applications, and after the final
judgment is made in December, the selected units will be given official debuts sponsored by Nippon
Columbia, Co., Ltd.

2

In line with of the decrease in income in smartphone-use services despite the upgrading and expansionof such services, the Content Business recorded net sales of ¥2,519 million, a decrease of 8.6% year on
year, and an operating profit of ¥272 million, a decrease of 45.0% year on year.
<Point Service Business>
Although sales of point-card systems were influenced by the end of the government-administered
reconstruction support home appliance eco-point system, as a result of strengthened sales promotion atexisting affiliated stores, etc., the Point Service Business continued to perform steadily, recording net
sales of ¥653 million, a decline of 0.5% year on year. However, due to an increase in sales promotion
expenses for the second half of the year and an increase in new project expenses, this business recorded
an operating profit of ¥36 million, a decline of 46.4% year on year.

(2) Qualitative Information Regarding the Consolidated Financial Position(Analysis of Financial Position)
As of the end of the 2nd quarter of FY 2013 (September 30, 2013) the Faith Group’s total assets
increased by ¥263 million compared to the end of the previous consolidated fiscal year to ¥22,874
million. This result was mainly the consequence of an increase in investment securities.
Total liabilities decreased by ¥222 million compared to the end of the previous consolidated fiscal yearto ¥1,836 million. This result was mainly due to a decrease in long-term loans payable in accordancewith repayments and to a decrease in income taxes payable in accordance with income tax payments.
Total net assets increased by ¥486 million compared to the end of the previous consolidated fiscal yearto ¥21,038 million. This result was mainly due to an increase in retained earnings stemming from therecording of a quarterly net profit and to an increase in the valuation difference on available-for-salesecurities. As a result, the equity ratio increased by 1.1 percentage points to 92.0%.
(Cash Flow Situation)
Cash and cash equivalents for the consolidated cumulative 2nd quarter of the current fiscal year
increased by ¥2,224 million from the end of the previous consolidated fiscal year to ¥8,349 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 ¥1,308 million (compared with an outflow
of ¥668 million for the same period of the previous fiscal year), due to the refund of ¥698 million in
respect of corporation tax to the Company’s net income of ¥381 million before taxes and otheradjustments, in addition to ¥326 million in interest and dividend payments received.
(Cash flow from investing activities)
Cash flow from investing activities amounted to an inflow of ¥1,173 million (an increase of 20.2%
compared the same period of the previous fiscal year), due mainly to income of ¥5,192 million in
respect of reimbursement of fixed-term deposits, despite outgoings of ¥4,023 million in respect ofmaking fixed-term deposits.
(Cash flow from financing activities)
Cash flow from financing activities amounted to an outflow of ¥258 million (a decline of 0.2%
compared the same period of the previous fiscal year), due mainly to outgoings of ¥199 million in
respect of repayment of long-term loans and ¥56 million in respect of dividend payments.

(3) Qualitative Information Regarding the Forecast of Consolidated Financial Results
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 revised forecast issued on November 8, 2013.

3

2. Summary Information(1) Changes in Major Subsidiaries during the 2nd Quarter
None
In addition, although this does not correspond with any change of specified subsidiaries, the FaithGroup acquired a 100% shareholding in ENTERMEDIA INC. in April 2013.

(2) Adoption of Simplified Methods in the Preparation of Quarterly Financial Statements
Tax expenses are calculated by making a reasonable estimate of the effective tax rate after applying tax
effect accounting to the amount of quarterly net profit before tax deduction for the consolidated
financial year including the current 2nd quarter accounting period, and then multiplying the amount ofquarterly net profit before tax deduction by the current estimated effective tax rate.

(3) Changes in Accounting Policy, Changes in Accounting Estimates, and Restatements
None.

4

3. Consolidated Financial Statements for the 2nd Quarter(1) Consolidated Balance Sheet for the 2nd Quarter
FY2012(As of March 31, 2013)(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 receivable
Total investments and other assets
Total fixed assets
Total assets(Liabilities)
Current liabilities
Trade notes and Accounts payable
Short-term loans
Income taxes payable
Allowance for points
Allowance for bonus payments
OthersTotal current liabilities
Fixed liabilities
Long-term liabilities
Lease obligations
Deferred tax liabilities
Allowance for retirement benefits
OthersTotal fixed liabilities
Total liabilities

55(Unit: thousands of yen)
The 2nd Quarter of FY2013(As of Sept. 30, 2013)12,076,535
930,681
540,780
4,464
5,633
7,004
696,298
224,075
117,874△21,627
14,581,719

13,131,969
916,291
341,297
10,587
9,632
7,996
—
220,925
114,585△19,868
14,733,417

2,870,397

2,840,249

16,269317,804
334,074

37,560333,754371,315

4,761,282
63,890△225
4,824,948
8,029,420
22,611,140

4,862,194
67,922△205
4,929,911
8,141,477
22,874,895

203,006
409,884
4,453
145,492
175,091
73,914
411,137
1,422,978146,155
409,884
6,342
49,990176,996
94,512403,257
1,287,139

333,400
13,030156,077
127,394
5,755
635,657
2,058,636

133,408
17,413271,094
121,097
6,059
549,071
1,836,211

FY2012(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
Total other accumulated comprehensive income
Total net assets
Total liabilities and net assets

6(Unit: thousands of yen)
The 2nd Quarter of
FY2013(As of March 31, 2013)(As of Sept. 30, 2013)

3,218,000
3,708,355
14,103,509△751,372
20,278,491

3,218,000
3,708,355
14,378,915△751,372
20,553,897

283,308△9,296
274,012
20,552,504
22,611,140

492,409△7,623484,786
21,038,683
22,874,895

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income for the 2nd Quarter)(Unit: thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Interest on securities
Operating profit on investment partnership
Foreign exchange profit
Interest on refund
Miscellaneous receipts
Total non-operating profit
Non-operating expenses
Interest paid
Investment loss on equity method
Investment partnership losses
Exchange losses
Miscellaneous expenses
Total non-operating expenses
Recurring profit
Extraordinary profit
Gain on sale of fixed assets
Gain on sale of investment securities
Gain from changes in equity
Gain on transfer of businessTotal extraordinary profit
Extraordinary losses
Loss on disposal of fixed assets
Loss on valuation of investment securities
Oversees tax-related losses
Relocation expenses
Total extraordinary losses
Net income before income taxes
Corporate, local, and business taxes
Net income before minority interests
Minority interests in income (△)
Net profit for the quarter7

2nd Quarter of FY 2012

2nd Quarter of FY 2013

(April 1-Sept. 30, 2012)(April 1-Sept. 30, 2013)

3,413,657
1,675,952
1,737,705* 1,173,614
564,090

3,172,633
1,757,326
1,415,307* 1,105,434
309,973

17,013
3,767
1,729
—
—
—
2,062
24,573

9,708
4,407
1,525
4,909
1,861
18,6696,344
47,426

3,888
3,094
4,165
8,393
103
19,646
569,017

3,077
11,558———
14,636
342,762316
51,400——51,716—25,2203,759
28,32057,3005,015
2,573
11,892—
19,481
601,251
106,064
495,187△14,339
509,526

8,983
—
7,491
2,314
18,790381,272
48,899332,372—
332,372(Consolidated Statement of Comprehensive Income for the 2nd Quarter)(Unit: thousands of yen)

Net income before minority interests
Other comprehensive income
Valuation difference on other available-for-salesecurities
Share in comprehensive income of equity method
affiliates
Total other comprehensive income
Comprehensive income(Details)
Comprehensive income attributable to shareholders of
the parent company
Comprehensive income attributable to minority
interests

8

2nd Quarter of FY 2012

2nd Quarter of FY 2013

(April 1-Sept. 30, 2012)(April 1-Sept. 30, 2013)

495,187

332,372△32,933

208,264△6,636

2,509△39,570
455,616

210,773
543,146469,955

543,146△14,339—

(3) Consolidated Statement of Cash Flows for the 2nd Quarter(Unit: thousands of yen)

Cash flow from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Increase/decrease in allowance for doubtful accounts (△ =decrease)
Increase/decrease in reserve for bonus (△ = decrease)
Increase/decrease in allowance for unexercised sales
promotion points (△ = decrease)
Increase/decrease in allowance for retirement benefits (△ =decrease)
Interest and dividends income
Interest on securities
Interest paid
Gain or loss on foreign exchange (△ = gain)
Gain or loss on sale of investment securities (△ = gain)
Gain or loss on valuation of investment securities (△ = gain)
Gain or loss on sale of shares in affiliates (△ = gain)
Gain or loss on equity method (△ = gain)
Gain or loss on sale of fixed assets (△ = gain)
Gain or loss on disposal of fixed assets (△ = gain)
Gain or loss on transfer of business (△ = gain)
Increase/decrease in trade receivables (△ = increase)
Increase/decrease in inventory assets (△ = increase)
Increase/decrease in trade payables (△ = decrease)
Increase/decrease in consumption tax payable (△ = decrease)
OthersSub-totalInterest and dividends received
Interest paid
Income tax refunded
Income tax paid
Cash flow from operating activities

9

2nd Quarter of FY 2012
(April 1-Sept. 30, 2012)

2nd Quarter of FY 2013
(April 1-Sept. 30, 2013)

601,251
141,486
12,165381,272
121,835
15,336△1,809△1,826

20,25820,598△15,765

1,918

9,721

△6,296△20,780△1,7293,888
10,903△51,400
2,573
3,094
—
△316
5,015
—
39,539△8,081△2,66827,990△97,518
677,819
33,387△3,890537△1,376,739△668,885△14,116△1,525
3,077△1,861△25,220—
11,558△3,759—8,983△28,320
116,020△5,623△69,308
5,269△88,757
439,254
326,312△3,144
698,805△152,946△1,308,281

(Unit: thousands of yen)

Cash flow from investing activities
Expenditure for opening of term deposits
Proceeds from withdrawal of term deposits
Proceeds from withdrawal marketable securities
Expenditure for acquisition of tangible fixed assets
Expenditure for acquisition of software
Expenditure for acquisition of investment securities
Proceeds from sale of investment securities
Expenditure for acquisition of shares of affiliates
Proceeds from transfer of business
Expenditure for acquisition of goodwill
Expenditure for acquisition of shares of subsidiaries resulting
from changes in scope of consolidation
Proceeds from liquidation of subsidiaries
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
Expenditure for repayment of lease obligations
Expenditure for repayment of long-term borrowing
Payment of dividends
Net cash flow from financing activities
Effect of exchange rate on cash and cash equivalents
Net increase/decrease in cash and cash equivalents (△ =decrease)
Cash and cash equivalents at beginning of year
Decrease in cash and cash equivalents in accordance with
exclusion from scope of consolidation
Cash and cash equivalents at end of year10

2nd Quarter of FY 2012
(April 1-Sept. 30, 2012)

2nd Quarter of FY 2013
(April 1-Sept. 30, 2013)△3,532,145
4,490,000—△26,385△78,946—
61,400———△4,023,238
5,192,145
200,000△26,495△103,115△50,000
26,220△30,000
28,571△ 5,000—△35,926

28,31860—
29,225
4,787
976,313—40△5,082
5,082—
1,173,199△2,136△199,992△56,944△259,073△10,596△2,255△199,992△56,418△258,665
1,861

37,7572,224,677

8,961,796△6,125,200△28,338—* 8,971,215* 8,349,878

(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. Previous 2nd Quarter Accumulated Period (April 1, 2012 through September 30, 2012)
1. Information Concerning Sales and Profit/Loss by Reportable Segment(Unit: thousands of yen)Content
Business
Net sales
Sales to outside customers
Intersegment
transfers

sales

and

Total
Segment profit
Notes:

Point Service
Business

Total

Consolidated
statement amount

Adjustment

2,756,986

656,671

3,413,657—

3,413,657

9,041

—

9,041

△9,041—

2,766,027

656,671

3,422,699△9,041

3,413,657

495,912

68,094564,006

84

564,090

1. The segment profit adjustment of ¥84 thousand refers to the elimination of intersegment transactions.
2. Segment profit is adjusted with the operating profit in the quarterly consolidated profit and loss statement.

2. Information Concerning Impairment Loss on Fixed Assets or Goodwill by Reportable Segment
This information is omitted since there is no critical impairment loss on fixed assets or significant change in
the amount of goodwill.
II. Current 2nd Quarter Accumulated Period (April 1, 2013 through September 30, 2013)
1. Information Concerning Sales and Profit/Loss by Reportable Segment(Unit: thousands of yen)Content
Business
Net sales
Sales to outside customers
Intersegment
transfers

sales

and

Total
Segment profit
Notes:

Point Service
Business

Total

Consolidated
statement amount

Adjustment

2,519,306

653,326

3,172,633—

3,172,633

7,152

112

7,264

△7,264—

2,526,459

653,438

3,179,898△7,264

3,172,633

272,971

36,497309,469504

309,973

1. The segment profit adjustment of ¥504 thousand refers to the elimination of intersegment transactions.
2. Segment profit is adjusted with the operating profit in the quarterly consolidated profit and loss statement.

2. Information Concerning Impairment Loss on Fixed Assets or Goodwill by Reportable Segment
This information is omitted since there is no critical impairment loss on fixed assets or significant change in
the amount of goodwill.

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