BRIEF STATEMENT OF CONSOLIDATED FINANCIAL RESULTS
FOR THE 1st QUARTER OF THE FISCAL YEAR ENDING MARCH 2025
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, 2024
Faith, Inc. (Stock code 4295, Listed on TSE Standard section)(URL https://www.faith.co.jp/)
Representative: Hajime Hirasawa, CEO/President
Contact: Chikayo Suzuki, CFO/Executive Officer
Tel: +81-3-6855-7811
Starting Date of the Dividend Payment: Preparation of Supplementary Materials for Quarterly Financial Results: Not applicable
Information Meeting for Quarterly Financial Results to be Held: Not applicable
Amounts are rounded down to the nearest JPY 1 million.

1. Results for the 1st Quarter of the Fiscal Year Ending March 2025
(From April 1, 2024 to June 30, 2024)(1) Consolidated Operating Results (cumulative totals)(Percentages indicate changes compared with the 1st quarter of the previous fiscal year.)
Net Income Attributable toOperating Income
Ordinary Income
Shareholders of the Parent% Millions of yen% Millions of yen% Millions of yen%

Net SalesYear ending
March 2024 Q1March 2023 Q1Millions of yen

3,370
3,499

△3.7
△0.7

△40
△40

—
—

△33
△47

—
—

—
—

△151
△80

(Note) Comprehensive income: 1st quarter of the fiscal year ending March 2025: △¥191 million (—%); 1st quarter of the fiscal year ending
March 2024: △¥442 million (–%)

Net Income per Share

Diluted Net Income per ShareYen△13.95△7.40

Year ending March 2025 Q1
Year ending March 2024 Q1

Yen
—
—

(2) Consolidated Financial Position
Total Assets
Year ending March 2025 Q1
Year ending March 2024

Net Assets

Ratio of Equity CapitalMillions of yen

Millions of yen%

20,693
21,90313,027
13,27463.0
60.6(Reference) Equity capital: 1st quarter of fiscal year ending March 2025: ¥13,027 million; fiscal year ending March 2024: ¥13,274 million

2. Dividends
Dividends per Share
(Record dates)

Year ending March 2024
Year ending March 2025
Year ending March 2025
(Forecast)

1st Quarter

Yen
—
—

Interim3rd Quarter

Year-end

Total

Yen
5.00

Yen
—

Yen
5.00

Yen
10.00

5.00

—

5.00

10.00

(Note) Revision of dividend forecast since the most recently announced dividend forecast: Not applicable3. Forecast for the Consolidated Results for the Year Ending March 2025
（from April 1，2024 to March 31，2025）(Percentages show changes from the previous year for full-year figures and from the same quarter of the previous year for quarterly figures.)
Net Income
Net Income Attributable to
Net Sales
Operating Income
Ordinary Income
Shareholders of the Parent
per Share
Millions of yen%
Millions of yen%
Millions of yen%
Millions of yen
%
Yen

Full
year
(Note)

15,100

9.9

199

—

1895

—

23

—

2.12

Revision of consolidated results forecast since the most recently announced forecast: Not applicable※ Notes(1) Changes in significant subsidiaries (accompanying changes in scope of consolidation): Not applicable
Newly added subsidiaries: 0 companies (subsidiary’s name:)Removed subsidiaries: 0 companies (subsidiary’s name:)(2) Adoption of simplified accounting practices or specific procedures in preparation of the quarterly
consolidated financial reports: Not applicable(3) Changes in accounting policies, changes in accounting estimates, and restatements(3)-1. Changes accompanying revisions of accounting standards, etc.: Applicable(3)-2. Changes other than the above: Not applicable(3)-3. Changes in accounting estimates: Not applicable(3)-4. Restatements: Not applicable(4) Outstanding shares (common shares)(4)-1. Outstanding shares at the end of the period (including treasury shares):Year ending March 2025 Q1: 13,831,091 sharesYear ending March 2024: 13,831,091 shares(4)-2. Treasury shares at the end of the period:
Year ending March 2025 Q1: 2,989,536 sharesYear ending March 2024: 2,989,350 shares(4)-3. Average number of shares during the period (cumulative total for the quarter)Year ending March 2025 Q1: 10,841,587 sharesYear ending March 2024 Q1: 10,836,066 shares(Note) The number of shares of treasury stock at the end of the period includes those shares (245,900 shares in Q1 of the year ending
March 2025, 245,900 shares in the year ending March 2024) 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 of shares during the accounting period (245,900 shares in the year ending March 2025, 252,300 shares in Q1 of theyear ending March 2024).

* This financial results report is exempt from quarterly review procedures.
* Statement regarding the proper use of performance 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

Accompanying Material — 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(Notes on Changes in Accounting Policies) ································································ 9(Notes on Segment Information) ············································································· 9(Notes on Significant Changes in the Amount of Shareholders’ Equity) ······························· 10(Notes on the Premise of a Going Concern) ································································ 10(Notes to the Statement of Cash Flows) ····································································· 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 2023, the Internet penetration rate remained
high at 86.2%, while the percentage of households owning one or more smartphones was 90.6%, and“SNS use (including for free calling functions)” was the most popular purpose of internet use at 80.8%(*1). In addition, while the movement away from television has continued since the year 2000, particularly
among younger people, advertising expenses for the Internet in Japan increased by 7.8% in 2023 from theprevious year to ¥3,333.0 billion, exceeding the combined advertising expenses for the four largest mass
media sectors (newspapers, magazines, radio, and television) of ¥2,316.1 billion, and accounting for45.5% of Japan’s total advertising expenditures (*2). This trend is also evident worldwide, where in 2024
global spending on digital advertising is expected to reach approximately ¥70 trillion (US$449.3 billion),
an increase of 7.4% from the previous year, with spending on digital advertising exceeding 59.6% of total
advertising expenditures (*3).
*1. Source: Ministry of Internal Affairs and Communications, 2023 Telecommunications Usage Trend Survey Results*2. Source: Dentsu Inc., 2023 Advertising Expenditures in Japan*3. Source: Dentsu Group Inc., Global Ad Spend Forecasts (2024-2026)

In the entertainment market in 2023, sales in the global music market centered on streaming services grewby 10.2% year over year to approximately ¥4,318.6 billion (US$28.6 billion), expanding for the ninth
consecutive year and reaching its highest level since the beginning of this century. In particular, paid
subscription streaming accounted for 67.3% of the total, increasing to ¥2,914.3 billion ($19.3 billion) (*4).
In Japan, total sales in the music software market increased by 10.0% year over year to ¥337.2 billion,
while paid music distribution sales increased by 11.0% to ¥116.5 billion and audio streaming sales
increased by 14.0% year over year to ¥105.6 billion, accounting for more than 90% of total paid music
distribution sales (*5). Sales in the Japanese live entertainment market in 2023 reached a record high of¥685.7 billion, which was 8.9% higher than the previous record set in 2019, the year before the start of
the novel coronavirus pandemic, indicating that the market has successfully recovered from the recession
coinciding with the pandemic. This market is expected to grow further to ¥710 billion in 2025 and 736
billion by 2030 (*6).
*4. Source: IFPI, Global Music Report 2024
*5. Source: Recording Industry Association of Japan (RIAJ), The Recording Industry in Japan 2024
*6. Source: Source: PIA Research Institute, Japanese Live Entertainment Market Survey Results and Latest Future Forecasts(published June 18, 2024)

Founded in 1992, Faith was the first company in the world to commercialize ringtones, and has steadilygrown in step with the popularization of mobile phones around its core music distribution business. In thecurrent music market, along with the spread of smartphones and the diversification of media such as
streaming, user-generated content (UGC) (*7), which allows ordinary users to easily transmit information
to society, and social media, the music industry is facing a situation in which all of its activities, including
content distribution methods, consumption styles, and content production methods, are changing.
*7. User-generated content: images and videos generated and posted by users themselves on the Internet.

In this environment, the Faith Group is continuing to forge ahead with its Multi-Content and Multi-Device
Strategy of creating environments in which people can enjoy a wide variety of content when and where
they want, by utilizing the efforts it has focused on digital content distribution ever since its establishment.
In addition, the Group is developing new services in response to the changing market environment,
including platforms that collect and organize the information flooding the Internet and providing it tousers after increasing its added value. As a corporate group dedicated to creating the future of music, Faithwill continue to strive to create new forms of entertainment that will enrich people's lives and bring smiles
to their faces.
At present, we are undertaking fundamental organizational reforms in order to further strengthen ourcreativity in response to the current period of change in the music industry. In addition to promoting
further selection and concentration of our existing businesses, we are pursuing a more flexible approach
to work in anticipation of changes in behavior patterns and the establishment of new values. We willcontinue to maintain the flexibility of our organizational management, integrate our business strategies,
speed up decision-making, and make efficient use of our resources, including know-how and humanresources, with a view to realizing sustainable growth across the entire Group and increasing our corporate
value over the medium to long term.

2Regarding the Faith Group’s business performance for the first quarter of the current consolidated fiscal
year ending March 2025, net sales decreased by 3.7% from the same quarter of the previous fiscal yearto ¥3,370 million. The Group reported an operating loss of ¥40 million (compared with an operating lossof ¥40 million for the same period of the previous fiscal year), and an ordinary loss of ¥33 million(compared with an ordinary loss of ¥47 million for the same period of the previous fiscal year). The
quarterly net loss attributable to shareholders of the parent was ¥151million (compared with a net loss
attributable to shareholders of the parent of ¥80 million for the same period of the previous fiscal year)
due mainly to the recording of business structure improvement expenses of ¥84 million.

Information on each business segment is as follows.
Platform BusinessIn the Platform Business, as sales in our existing distribution businesses continue to decline, we will invest
in new growth areas by linking and platforming each of our services with the aim of developing new andinnovative products and grasping diversified profit opportunities.
Our new platform, called sprayer, is an innovative music distribution service that helps artists to distributeand monetize their own original songs worldwide simply by registering them, as well as to directly delivera wide range of activities through the original spray LINK function. Spray LINK is equipped with acrowdfunding function that helps artists to recruit supporters by allowing a portion of their proceeds frommusic distribution to be returned to their fans as rewards, so they can raise funds for their activities andalso share profits with their supporters and reach more listeners with their music. For the future, sprayer
will continue to provide a platform that allows artists to directly deliver information about their works tolisteners and fans, thereby building deeper engagement and facilitating monetization, and we will work
to expand the artist economy across all demographics and create a system that allows artists to growtogether with their fans.
FaRao PRO not only provides BGM for commercial use, but also actively develops sales activities
centered on the expansion of the functions necessary for store operations, such as store branding solutions,as well as announcement functions. In the future, we will continue to aim at the creation and revitalizationof the BGM market.
Fans’ is a service equipped with a host of functions necessary for artists' activities, such as building official
websites, distributing music and videos, selling artist goods, and managing fan clubs. Moreover, bystrengthening links with SNS and allowing fans to spread information sent out by creators, it cancontribute to the creation of communities.
In addition to providing a platform for operating point systems for retailers, the Point Service also offers
outsourcing services that maximize the efficiency of retailers' sales promotions by providing total support
for the entire cycle from planning to operation, including the acquisition, analysis and utilization of point
issuance data.

Regarding the performance of this segment, net sales decreased due to sluggish sales of official
carrier services for artist platforms and content distribution for mobile phones, as well as points
issuance for existing member stores on the Point System operation platform for retailers. On the other
hand, as a result of improvements to the business scheme following the termination of some services,
although sales decreased by 24.5% year-over-year to ¥399 million, the segment loss decreased to ¥38
million (compared to a segment loss of ¥49 million for the same period of the previous year).
Content BusinessIn the Content Business, we are strengthening new businesses with an eye to the future in order toovercome our dependence on sales of packaged products in the severe environment faced by the music
and video-related industries due to the changing music market. In an effort to create new hits, the threelabel companies, Nippon Columbia, DREAMUSIC, and KSR, are developing and nurturing content
suitable for the next-generation music business. In addition, they are actively utilizing their extensive
catalog assets in new projects, with the goal of expanding their IP domains both in Japan and globally.

3

In the location business, as part of a project to revitalize the area around the Pukarisanbashi Pier in
Yokohama Minato Mirai, we were commissioned to produce the PIER21 MUSIC CAFE & BAR, which
opened in June 2024. Going forward, together with BAROOM in Minami Aoyama (a music bar with animmersive circular hall) and ZEROTOKYO (a new facility that utilizes the nighttime hours of Zepp
Shinjuku (TOKYO), one of the largest live halls in the area), we are aiming to develop multifacetedbusinesses both inside and outside the group as real places that disseminate a variety of content.
Regarding the performance of this segment, despite higher sales of major digital products and an increase
in revenue from live performances and independent performances by affiliated artists, net sales were
unchanged year-over-year at ¥2,970 million, and segment income declined 14.8% year-over-year to ¥104
million due mainly to postponements in releases and reduced sales of new packaged products.
*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
Total assets as of the end of the first quarter of the current consolidated fiscal year ending March 2025
(June 30, 2024) decreased by ¥1,209 million compared to the end of the previous consolidated fiscal
year to ¥20,693 million. This result was mainly attributable to a decrease of ¥456 million in cash anddeposits and a decrease of ¥655 million in accounts receivable.
Total liabilities decreased by ¥963 million compared to the end of the previous consolidated fiscal
year to ¥7,666 million. This result was mainly due to a decrease of ¥272 million in notes and accounts
payable - trade, a decrease of ¥224 million in accounts payable - other, a decrease of ¥157 million in
the provision for bonuses, and a decrease of ¥95 million in long-term loans payable.
Total net assets decreased by ¥246 million compared to the end of the previous consolidated fiscal
year to ¥13,027 million. This result was mainly due to the recording of a net loss attributable toshareholders of the parent of ¥151 million and the payment of year-end dividends of ¥55 million.
As a result of the above, the equity ratio increased by 2.4 percentage points to 63.0%.

(3) Explanation Concerning Future Forecast Information on the Consolidated Financial
Results, etc.
There is no change in the forecast of consolidated financial results for the current fiscal year from theforecast announced on June 21, 2024. Although performance forecasts are based on information
available to the Company at the time of preparation, there is a possibility that the actual performance
figures will differ significantly from the forecast figures due to a variety of factors.

4

2. Consolidated Financial Statements and Important Explanatory Notes(1) Consolidated Balance Sheet
Previous consolidated fiscal
year/FY 2023
As of March 31, 2024
AssetsCurrent assets
Cash and deposits
Notes receivable
Accounts receivable
Contract assets
Marketable securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Income taxes refundable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Tangible non-current assets
Intangible non-current assets
Goodwill
Other
Total intangible non-current assets
Investment and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investment and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable- trade
Short-term loans payable
Current portion of long-term debt
Accounts payable-otherAccrued expenses payable
Income taxes payable
Provision for bonuses
Provision for business structure improvement
Contract liabilities
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Retirement benefit liabilities
Provision for share awards for directors (and otherofficers)
Asset retirement obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities

5(Thousands of yen)
Current consolidated fiscal
year/FY 2024 Q1
As of June 30, 2024

9,808,298
5,831
2,360,257
120
214,953
287,356
562,51944,505405
1,178,706△20,364
14,442,592

9,351,545
16,133
1,704,349
120
211,900
364,160
539,644
39,307407
1,107,826△18,772
13,316,623

3,494,199

3,470,855

1,028,423
263,053
1,291,477

998,234
251,099
1,249,333

2,168,088
70,091
546,213△109,238
2,675,154
7,460,831
21,903,424

2,118,765
83,573564,845△110,377
2,656,807
7,376,996
20,693,619

1,107,266
385,002433,200
801,7623,008,212
83,716
274,752
68,16232,651
1,087,841
7,282,567

834,784
382,503420,700
577,635
2,924,298
22,966
117,111
151,827
25,333
957,085
6,414,245

491,600
450,133

395,800
438,196

37,47938,81239,383324,855
3,271
1,346,723
8,629,291

39,383
337,490
2,346
1,252,030
7,666,276

Previous consolidated fiscal
year/FY 2023
As of March 31, 2024
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on other marketable securities
Foreign currency translation adjustment
Accumulated retirement benefit adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6(Thousands of yen)
Current consolidated fiscal
year/FY 2024 Q1
As of June 30, 2024

3,218,000
2,840,416
8,644,481△2,414,684
12,288,213

3,218,000
2,840,416
8,437,798△2,414,768
12,081,446

959,469△8,87735,327985,919－
13,274,133
21,903,424

920,857△8,871
33,910945,896－
13,027,343
20,693,619

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)(Thousands of yen)Previous consolidated fiscal
year/FY 2023 Q1(April 1, 2023 – June 30, 2023)

Current consolidated fiscal
year/FY 2024 Q1(April 1, 2024 – June 30, 2024)

3,499,101
2,068,491
1,430,609
1,470,964△40,354

3,370,362
2,033,726
1,336,636
1,377,347△40,711

1
4,606
118
－
840

920
3,157
154
4,787
636

6,853

－

8,805
21,224

8,928
18,584

2,402
495
4,198

1,738
3,944
86

16,716

1,513

4,387
28,199△47,3293,805
11,088△33,215

－
－

949
949

－
－
△47,329
22,103
10,80332,906△80,236△80,236

83,664
83,664△115,930
18,405
16,90935,314△151,244△151,244

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss =△)Non-operating income
Interest income
Dividend income
Interest on securities
Gain on investments in investment partnerships
Foreign exchange gains
Gain on reversal of provision for directors' sharebenefits
Miscellaneous receipts
Total non-operating Income
Non-operating expenses
Interest paid
Loss on valuation of securities
Loss on investments in investment partnerships
Share of loss of entities accounted for using equity
methodMiscellaneous expenses
Total non-operating expenses
Ordinary income (loss =△)Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Business structure improvement expenses
Total extraordinary losses
Net income (loss =△) before income taxes
Corporate, inhabitant, and enterprise taxes
Corporate tax adjustment
Total income taxes
Net income (loss = △)Net income (loss = △) attributable to shareholders of parent

7

(Consolidated Statement of Comprehensive Income)(Thousands of yen)Previous consolidated fiscal
year/FY 2023 Q1(April 1, 2023 – June 30, 2023)

Current consolidated fiscal
year/FY 2024 Q1(April 1, 2024 – June 30, 2024)△80,236△151,244△342,0295△38,6115△20,292△1,416△362,315△442,552△40,022△191,267△442,552△191,267

－

－

Loss
Other comprehensive income
Valuation difference on other marketable securities
Foreign currency translation adjustment
Retirement benefit adjustment (before any applicabletax effect)
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to shareholders ofparentComprehensive income attributable to non-controllinginterests8

(3) Notes Concerning the Consolidated Financial Statements(Notes on Changes in Accounting Policies)(Application of Accounting Standard for Current Income Taxes, etc.)
The Company has applied the Accounting Standard for Current Income Taxes (Accounting Standards
Board of Japan (ASBJ) Statement No. 27, October 28, 2022; hereinafter referred to as the Revised
Accounting Standard 2022) effective from beginning of the first quarter of the consolidated fiscal year
under review.
The amendments to categories in which current income taxes should be recorded (taxation on othercomprehensive income) are in accordance with the transitional treatment prescribed in the proviso ofparagraph 20-3 of the Revised Accounting Standard 2022 and the transitional treatment prescribed in
the proviso of paragraph 65-2 (2) of the Implementation Guidance on Tax Effect Accounting (ASBJ
Guidance No. 28, October 28, 2022; hereinafter referred to as the Revised Implementation Guidance2022). This change in accounting policies has no impact on the quarterly consolidated financial
statements.
Furthermore, regarding the amendments related to the review of the consolidated financial statements
when deferring gains or losses on sale of shares in subsidiaries resulting from transactions between
consolidated companies for tax purposes, the Revised Implementation Guidance 2022 has been
adopted from the beginning of the first quarter of the consolidated fiscal year under review. Thischange in accounting policies has been applied retrospectively, and the quarterly consolidated
financial statements for the previous quarter and the consolidated financial statements for the previous
fiscal year have been restated accordingly. This change in accounting policies has no impact on thequarterly consolidated financial statements for the same quarter of the previous fiscal year or on the
consolidated financial statements for the full previous fiscal year.

(Notes on Segment Information)[Segment Information]
Ⅰ 1st quarter of the previous consolidated fiscal year/FY 2023 (April 1, 2023 through June 30, 2023)
1. Information on sales and profit or loss by reportable segment(Unit: thousands of yen)

Adjustment
amount(Note 1)

Amount recorded in
Consolidated Financial
Statements (Note 2)－

3,491,433

7,667

－

7,667

529,393 2,969,707 3,499,101－

3,499,101

529,393 2,969,707 3,499,101－

3,499,101

PlatformContent

Total

Net sales
Goods transferred at a single point
in timeGoods transferred over a period oftime
Revenue from contracts withcustomers
Sales to external customers

529,393 2,962,040 3,491,433
－

7,667

Intersegment sales or transfer
amount108,970

137,359△137,359－

Total

638,364 2,998,096 3,636,460△137,359

3,499,101

Segment income or segment loss(△)

△49,418△113,643△40,354

28,388

122,70773,288Notes: 1. The segment income or loss adjustment amount of △¥113,643 thousand consists of ¥3,095 thousand in eliminatedintersegment transactions and △¥110,548 thousand in companywide expenses that are not allocated to the reportablesegments.
2. Segment income amounts are adjusted with operating income in the quarterly consolidated profit and loss statement

2. Information regarding impairment loss on current assets or goodwill by segment reported
This information is omitted since there is no critical impairment loss on current assets or significant
change in amount of goodwill.

9Ⅱ 1st quarter of the current consolidated fiscal year/FY 2024 (April 1, 2024 through June 30, 2024)

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

Adjustment
amount(Note 1)

Amount recorded in
Consolidated Financial
Statements (Note 2)

PlatformContent

Total

399,9532,964,920

3,364,873－

3,364,873

－

5,489

5,489

－

5,489

399,953

2,970,409

3,370,362－

3,370,362

399,953

2,970,409

3,370,362－

3,370,362

Intersegment sales or transfer
amount114,505

19,864

134,370△134,370－

Total

514,459

2,990,274

3,504,733△134,370

3,370,362

Segment income or segment loss (△)△38,367

104,525

66,157△106,869△40,711Net sales
Goods transferred at a single point
in timeGoods transferred over a period oftime
Revenue from contracts withcustomers
Sales to external customers

Notes: 1. The segment income or loss adjustment amount of △¥106,869 thousand consists of ¥1,206 thousand in eliminatedintersegment transactions and △¥108,075 thousand in companywide expenses that are not allocated to the reportablesegments.
2. Segment income amounts are adjusted with operating income in the quarterly consolidated profit and loss statement.

2. Information regarding impairment loss on current assets or goodwill by segment reported
This information is omitted since there is no critical impairment loss on current assets or significant
change in amount of goodwill.

(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Notes on the Premise of a Going Concern)
Not applicable(Notes to the Statement of Cash Flows)
We have not prepared a quarterly consolidated cash flow statement for the first quarter of the current
consolidated cumulative period. However, depreciation expenses (including amortization expenses forintangible non-current assets other than goodwill) and amortization of goodwill for the first quarter ofthe current consolidated cumulative period are as follows:

Depreciation expenses
Amortization of goodwill

Previous consolidated fiscal
year/FY 2023 Q1(April 1, 2023 – June 30, 2023)

Current consolidated fiscal
year/FY 2024 Q1(April 1, 2024 – June 30, 2024)¥40,809 thousand¥30,189 thousand¥44,156 thousand¥30,189 thousand

10