BRIEF STATEMENT OF ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED
MARCH 2009 AND FORECASTS FOR THE YEAR ENDING MARCH 2010
May 13, 2009
Faith, Inc. (Stock code 4295, Listed on TSE 1st section)(URL http://www.faith.co.jp/)
Representative; Hajime Hirasawa, CEO/President
Contact; Koji Saeki, CFO/Director
Tel: +81-75-213-3933
Date of General Meeting of Shareholders: June 26, 2009
Date of Submission of Annual Security Report: June 26, 2009
Starting Date of the Dividend Payment: June 29, 2009
Amounts are rounded down to the nearest JPY 1 million.

1. Results for the fiscal year (From April 1, 2008 to March 31, 2009)(1) Consolidated financial results
Those figures in “%” show increased/decreased ratio compared with the previous fiscal term

Net Sales

Operating Profit%

Recurring Profit%

Net Profit

Years Ended

Millionsof yen%March 2009

53,957

7.5

1,425

△37.1

994

△47.9

△149

―

March 2008

50,192

13.7

2,266

113.7

1,909

123.7

537

―

Net Profit
Share
Years ended
March 2009
March 2008

per

Yen
△127.19451.38Millionsof yenDilutedNet
Profit per ShareYen―
430.05

Millionsof yenReturn on Equity
Capital%△1.1
3.6

Millionsof yenRecurring Profit
on Total Assets
%
3.0
5.1

%

Operating Profit
on Net Sales
%
2.6
4.5

Reference: Equity in earnings of associated companies: the fiscal year ended March 2009: △349million yen/ the fiscal year
ended March 2008: △511 million yen(2) Consolidated financial position
Total Assets
Years Ended
March 2009
March 2008

Net Assets

Ratio of Equity
CapitalMillions of yen

Millions of yen

30,49636,174

14,49916,545

%
43.8
41.5

Net Assets per ShareYen
11,634.84
12,612.00

Reference: Equity Capital: the fiscal year ended March 2009: 13,357 million yen/ the fiscal year ended March 2008: 15,013
million yen.

(3) Cash flow results
Cash Flow fromOperating Activities
Years ended
March 2009
March 2008

Cash Flow from
Investing Activities

Cash
Flow
from
Financing Activities

Cash and Cash
Equivalents, End of
the year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

4,500
6,112

△766
344

△3,351△3,944

10,64910,6141

2. Dividends
Dividends per share(Record dates)

1stQuarterInterim

3rd
QuarterYear-end

Total(Annual)Years ended
March 2008
March 2009

yen
―
―
―

yen
50.00
50.00
50.00

yen
―
―
―

yen
50.00
50.00
50.00

yen
100.00100.00100.00Year ending
March 2010
(Forecast)

Total Dividend
Payment

Payout Ratio

Dividend on
Net Assets(Consolidated)(Annual)(Consolidated)

%
22.2
114.8

Millions of yen

119
119
―

%
0.8
0.8
―

3. Forecasts for the consolidated business results for the year ending March 2010
(from April 1, 2009 to March 31, 2010)
The figures in “%” show increased/decreased ratio compared with the previous fiscal year and the previous interim result.

Net SalesInterimresults 2009
Year ending
March 2010

Operating Profit

Recurring Profit

Net Income

Millions ofyen%Millionsof yen%Millionsof yen%Millions of yen%

Net Income
per ShareYen

25,000

△1.2

300

△67.0

200

△73.0

60

△79.1

52.26

54,600

1.4

680

△52.3

510

△48.7

100

―

87.10

4. Others(1) Changes in the significant subsidiaries (Accompanying changes in scope of the consolidation): None
(2)

Changes in accounting policy, procedure, and presentation in preparation of the quarterly
consolidated financial reports (Described in the “Changes in preparing for consolidated financial
statements and summary of significant accounting polices”)(2)-1. Changes accompanying revisions of accounting standards, etc.:Applicable(2)-2. Changes other than the above: None

(3)Outstanding shares (common shares)(3)-1. Outstanding shares at the end of the fiscal years (including treasury shares):
The fiscal year ended March 2009: 1,196,000 shares, the fiscal year ended March 2008: 1,196,000shares(3)-2. Treasury shares at the end of the fiscal years:
The fiscal year ended March 2009: 47,950 shares, the fiscal year ended March 2008: 5,580 shares*Note for utilizing business forecasts, and other special instruction(1) This document contains projections of our company’s future performance. These are estimates by the management ofFaith based on currently available information. There are potential risks and uncertainties that may affect the results. Pleasebe advised that actual performance may differ significantly from the forecast.

2

1. Operating Results(1) Analysis on Operating Results
During the consolidated fiscal year ended March 31, 2009, increased functions of mobile phone havediversified functional mobile terminal devices such as smartphone and iPhone, and developed
establishment of network environment to accommodate content in high-capacity and high-definition. In
terms of content, responding to the growing content needs, various kinds of content such as video, music
and online game were digitalized. The launch of full-fledged Internet connected TV was another marked
event. The overall environment includes network, software and hardware has been improving to allow
users to access content more easily.
Faith Group sets its goal to achieve a multi-content and multi-platform market, the optimal environment toenable users to enjoy content at any time. Under the developing Japanese content distribution market, theGroup actively took measures such as developing new service solutions based on its unique ideas, andexpanding its business base through acquisition and partnerships with other leading companies.
In the entertainment content distribution area, the Group launched a service seamlessly connecting mobile
phone, PC and Internet TV. It gave users options how they view videos depending on their lifestyles.
Another project launched in this fiscal period is a content promotion service on behalf of SOHO creators.
By using this worldwide service network, creators are able to sell their products in a simple and safe way.
In the medical and health information distribution business, the Group promoted the provision of newcontent distribution structure that get ahead of the user needs. It also promoted the realization of amulti-content and multi-platform concept in this field. As part of these efforts, the Group introduced a
medical service using electronic recording system which a huge demand is expected in future prior to othercompanies
In the electronic money field, with continuously rising demand in the market, the volume of payment
settled in the Group's "WebMoney" showed further increase. The strength of "WebMoney" is its highmarket share in the online game market. Another factor behind this result were the affiliated online gamestores which made steady expansion of the membership and the increase of sale in electronic money ofaffiliated brand launched in the second half of the fiscal year.
As a result, consolidated net sales for the fiscal year under review increased by 7.5% year on year to¥53,957 million led by the continuous high growth in the Electronic Money Business. Operating profit
was ¥1,425 million, down 37.1% year on year, and recurring profit was ¥994 million, down 47.9% year on
year, mainly due to the development of new services, overseas business realignment and other factors.
The Group recorded net loss of ¥149 million compared to the net profit of ¥537 million in the previous
fiscal year because of the posting of extraordinary loss related to the review of unprofitable businesses.
Information on each business segment is as follows:<Contents Business>
During the consolidated fiscal year under review, the Group has launched new content services. At thesame time, it strived to expand and enhance its operating base through activities such as building
partnership with other leading companies.
1) GIGA NETWORKS, INC., a consolidated subsidiary, launched a video distribution service named"GIGA Miranca" utilizing Faith's proprietary technology, Near Field Rights Management® (NFRM™).
The service is available on various networks and the terminal devices such as mobile phone, PC andInternet TV. In the past, rights management of contents was the critical task for distribution to various
devices. Since the Group performed the task and obtained agreements of rights holders, the group can
provide lineup varies from Hollywood film to TV series, anime cartoon and music clip. It also includes
some film, drama, and other video works funded by the Group. Furthermore, GIGA NETWORKS andISAO Corporation of CSK Group ,which are both ranked high in the mobile video distribution business,formed successive business alliances. As part of the cooperation, the two companies allow theirsubscribers mutual access to both sites. By these measures, the Group further expanded its user reach.

32) KAZAS Channel™ was pre-installed on "ROBRO", a broadband TV corresponding to NFRM™.
Following the mobile phone and PC service of NFRM™, the launch of TV service expanded NFRM™
service into full-scale.
3) In cooperation with MySpace Japan, Brave, Inc., a consolidated subsidiary, launched "viBirth" as an
official online store on "MySpace", one of the largest Social Networking Service (SNS) in the world.
"viBirth" provides a solution to promoting creators' works on worldwide networks such as iTune andNapstar. Furthermore, it also helps the artists to unify all tangled procedures on their own PC, such as
conducting rights management and settlement. Besides that, the Group launched "vitCrew", whichenables the site managers to distribute pay-content online by pasting vitCrew code into individual websites
and blogs. Another project, "CREATORS Lab," started as a comprehensive support service to video
creators, which enables the creators to sell their own works.
4) A film produced by Desperado, Inc., a consolidated subsidiary, hit screens and achieved good results.
"PACO and the Magical Book" ranked in the top 10 for over two-month span.
5) The Group started a new partnership between DeNA Co., Ltd. through "Eikyufumetsu Contents(Everlasting Contents)", a mobile and PC content distribution site co-operated by Credit Saison Co., Ltd.
As a result, the number of the Group's mobile content services expanded to 100 sites in 10 categories.
6) The Group merchandised 3D characters for mobile phone developed from the Group run online gamesite "Rose Online." The launch of this new content service is eyeing a new business scheme to distributeinformation to the synchronized mobile phone and online game.
7) The number of "Pocket Karte" subscribers surpassed 10,000 in the first six months from its start.
"Pocket Karte" is a medical records storage service in electronic format via mobile phone, and thesubscribers are able to retrieve their Karte whenever and wherever they are. It is operated in cooperation
with WILLCOM, Inc. and other companies.
This product won the MCPC Mobile Consumer Award 2009. The MCPC award is administered by
Mobile Computing Promotion Consortium*1. Nominees for the award are companies and otherorganizations which have made remarkable achievements in constructing advanced systems by mobile
computing.
*1

Mobile Computing Promotion Consortium was established with the aim of shaping and expanding afull-scale and sound mobile computing system market by the cooperation among communication carriers,
computer hardware and software manufacturers, system integrators and other parties.
As a result, net sales in the Contents Business totaled ¥13,105 million, down 19.4% year on year. The
Group actively took measures such as developing new services and expanding its business throughpartnerships and other measures with leading companies. Notwithstanding those operations, the sales
dropped due to the decrease in sales mainly caused by the overseas business alignment and the existing
ringtone business. Operating profit fell by 40.9% year on year to ¥990 million due to the increased ininvestment on the new distribution platform development. Other main factors were increase in the content
production and procurement costs and the expenditure on constructing the internal control system.
<Electronic Money Business>
According to the press information regarding broadband subscriptions issued by Ministry of Internal
Affairs and Communications at the end of March 2009, broadband subscriptions in Japan have reachedover 30 million by the end of December 2008. Demand for digital contents continued to increase in thefield of online game, music and video distribution and SNS, the main sectors in which electronic money
used. At the same time, the electronic money and its settlement market is in a continuing growth. Under thedeveloping market, the Group focused on expanding the users of WebMoney, which provides easy,
secure and convenient solutions.
1) The Group started membership service "WebMoney Wallet Plus" in October 2008, in which a profitable
point was rewarded to propose safe use of the credit card.
2) The sales of "funcash WM", electronic money of affiliated brand, started in September with one of thebiggest online game portal.
3) In order to develop EC market, the Group offered settlement solution of WebMoney to a settlement
agency in February.
4In order to enhance the settlement amount, the Group endevored to increase new member stores wage
cooperated companies together with existing member stores. In addition, for the purpose of rejuvenation of
the digital content market, "WebMoney Award 2008" was held in December to elect the online game of theyear.
The Group tried to improve the membership service, and the enrollment of "WebMoney Wallet" and"WebMoney Wallet Plus" increased by 367 thousand to 945 thousand in total. "WebMoney Wallet"
enables users to make settlment only by ID and password and "WebMoney Wallet Plus" provides reward
points. The number of contract joining companies expanded by 265, and became 1,885 as a whole.
As a result, net sales in the Electronic Money Business increased 21.9% year on year to ¥39,472.
Operating profit fell by 26.3% year on year to ¥388 million due to the development and operation of newservices and enforcement of management structure.
<Other Businesses>
Revenues from the point-card system business and other businesses led sales in other businesses to ¥1,378
million, a decrease by 10.4% year on year. Operating profit was ¥60 million, down 25.6% year on year.
Projections for the full-year business performance are summarized below.
(millions of yen)

Net sales
Operating profit
Recurring profit
Net profit (Net loss)

FY2008 (Result)
FY2009 (Forecast)(a)(b)
53,95754,730
1,425
680
994
510
(149)
100

Change(a)-(b)
773
(745)
(484)
249

In the current content distribution market in Japan, the ringtone market, one of the established fields in theGroup, is contracting. However, demands for music and videos are showing steady growth alongside the
sharp increase of demands in games and graphical contents. These emerging categories consist of about
half of the total distribution volume. The content viewing environment progressed by the improvement of
the network environment to allow users view their content on various terminal devises through theconnected networks with mobile phone, PC and even with TV and other digital appliances.
The Group has been promoting the creation of new structure for content distribution to manage the ever
diversifying user environments and services in integrated simple way. The Group provides solutions invarious perspectives for the protection of content rights, charging and settlement, and membership andother private information. The Group also improves user-friendly interface and the seamless connection
between various devices such as mobile phone, PC and TV. At the same time, the Group will continue
taking part in the production of video, music and other content in order to provide high quality content into
distribution. That is, the Group intends to organize comprehensive content distribution business, frombuilding distribution structure, operating services for consumers, to producing content creation in order forthe business models to be immediately adopted in the Group, and also be introduced to other partnercompanies.
NFRM™ service is one of these aforementioned solutions. This service utilizes the Group's proprietary
authentication technology and will be able to realize the seamless connection between various devices,protection of content rights and the provision of simple settlement measures. Going forward, the Group will
strive to promote the service and expand the realm of NFRM™ service in terms of compatible devices.
Another business focus is medical and health information services such as the electronic medical record
system. The Group recognizes these services that they should be stored and retrieved whenever andwherever necessary in any forms of device terminals. Based on this belief, the Group will promote themedical and health business ongoingly. At the same time, the Group regards the electronic money
business, which accounts for a high share in online payment, as a measure to establish services which are
not limited by the conditions of terminal device or location. For this purpose, the Group will actively
keep promoting the electronic money
In the area of the licensing business for ringtone playback technology, regular royalty revenue will decrease5

following the renewal of the contracts with the major clients. To cope with this situation, the Group willrevamp the existing business by restructuring the unprofitable services and developing video distribution
and e-commerce targeted at a few million of paid ringtone subscribers as well as compatible services tovarious devices. A new era of content business will surely arrive in few years, that we can provide
services beyond the borders of devices such as mobile phone, PC, TV and other digital appliances. The
Group has set business strategies by taking the future environment change into consideration, and will
implement these strategies with medium- to long-term perspective.
As a result, the Group's consolidated sales for the next fiscal year are projected to rise 1.4% year on year to¥54,730 million. Operating profit is projected to decrease 52.3% year on year to ¥680 million due to thedecreased sales of the ringtone business and the development of the ongoing new content distribution
service. Other major factors expected to impact on the earnings are the system construction, content
production, sales promotion and content procurement. Recurring profit is projected to decrease by 39.6%
year on year to ¥510 million. Net profit is projected to decrease to ¥100 million.

(2) Basic Policy on appropriation of Profit and Dividend Payment
The Company continues its policy of giving priority to securing the funds necessary for strengthening its
business structure and making aggressive business investments. At the same time, it also recognizes
return of profit to shareholders to be an important management issue. For this reason, the Company willconsider payment of dividends, taking into account its operating results and financial positions.
Based on its fundamental policy of paying continued stable dividends, the Company plans to pay dividendsof ¥100 per share, including interim dividends of ¥50, in the next fiscal year.

2. Overview of Faith Group
Faith Group consists of Faith, Inc (the Company), 16 subsidiaries and 12 affiliates, and mainly conducts
content business and electronic payment business.
The Faith Group’s businesses and relationship between the Company and other group companies inbusiness operations are as follows:Businesses
Contents
business

ElectronicMoneybusiness
Otherbusinesses

Main operations
Content distribution services, using
computer networks Development andlicensing of distribution platform
technologies
Production of contents
Issuance of electronic money andproviding electronic payment platforms

Companies concerned
Faith, Inc., GIGA NETWORKS INC.,
Desperado, Inc., BRAVE Inc., Rightsscale,Inc., Faith West Inc. and 13 othercompanies

Point service and other business

Faith, GoodyPoint Corp. and 5 othercompanies

WebMoney Corporation

3. Management Policies(1) Faith Group's basic management policy
This information is omitted as no substantial changes have been made since it was disclosed in the Brief
Statement of Consolidated Financial Results for the Fiscal Year Ended March 2008 issued on May 14,
2008.
The document mentioned above is available online.
Faith Homepage
http://www.faith-inc.com/ir/pdf/0803_tanshin_overview_eng.pdf
Tokyo Stock Exchange Homepage (Listed Company Information)
http://www.tse.or.jp/english/index.html

6

4. Consolidated Financial Statement(1) Consolidated Balance Sheet(Unit: thousands of yen)

FY2007(As of March 31, 2008)
Amount(Assets)
Current assets
Cash and deposits
Accounts and notes receivable
Marketable securities
Inventories
Commercial products
Products in progress
Primary materials and inventory goods
Accrued refund income tax
Deferred tax assets
OthersAllowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Depreciation amount
Buildings and structures (net base)Machinery and delivery equipment
Depreciation amount
Machinery and delivery equipment (net base)Tool, device and equipment
Depreciation amountTool, device and equipment (net base)Total Tangible fixed assets
Intangible fixed assets
Goodwill
Software
OthersTotal intangible fixed assets
Investment and other assets
Investment securities
OthersAllowance for doubtful receivable
Total investments and other assets
Total fixed assets
Expenditure for stock delivering prescription
Total expenditure for stock delivering
prescription
Total assets(Liabilities)
Current liabilities
Trade notes and Accounts payable
Short-term loans
Income taxes payable
Allowance for costs of card use
Allowance for points
Allowance for bonus payments
OthersTotal current liabilities
Fixed liabilities
Long-term liabilities
Deferred tax liabilities
Allowance for retirement benefits
Reserve for subsidiaries losses
OthersTotal fixed liabilities
Total liabilities

7

FY 2008(As of March 31, 2009)
Amount13,424,006
6,861,259
250,227
488,727–––
516,982
763,972
588,379△209,568
22,683,987

13,508,778
6,963,239
240,453–
317,125
41,615
12,97290,883
450,388657,192△259,093
22,023,556

276,308△55,556
220,751
26,305△13,648
12,656
1,737,612△1,310,708
426,903
660,312262,468△86,996
175,471
26,305△17,6148,690
1,265,658△1,012,684
252,973
437,136

7,607,662
866,564
56,1518,530,378

5,096,085
537,653
51,273
5,685,013

3,490,977
920,572△134,516
4,277,033
13,467,724
22,56722,567

1,707,499
715,724△84,370
2,338,854
8,461,004
11,857
11,85736,174,279

30,496,418

5,922,813
2,529,928
136,2212,873,200
468,391
87,445
1,973,507
13,991,508

6,222,787
2,029,928
12,833
3,316,085
361,657
95,514
1,393,875
13,432,682

4,083,472
522,858
49,229300,561
681,599
5,637,720
19,629,228

2,054,382
274,161
73,071–
162,276
2,563,891
15,996,574

FY2007 (As of March 31, 2008)
Amount

FY2008 (As of March 31, 2009)
Amount3,218,000
3,708,355
7,694,895△354,269
14,266,980

3,218,000
3,708,355
7,345,697△651,377
13,620,674

799,398△52,807746,591
1,531,478
16,545,050
36,174,279

469,900△733,196△263,295
1,142,464
14,499,844
30,496,418(Net assets)
Shareholder's equity
Common stock
Capital surplus
Retained earning
Treasury stock
Total shareholder's equity
Valuation and translation adjustments
Net unrealized gains on investment securities
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liability and net assets8(2) Consolidated Profit and Loss Statement(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 securities
Exchange profit
Income from anonymous association
Miscellaneous receipts
Total non-operating profit
Non-operating expenses
Interest expense
Investment profit on equity method
Foreign exchange loss
Miscellaneous expense
Total non-operating expenses
Recurring profit
Extraordinary profit
Gain on disposal of fixed assets
Gain on transfer of operation
Gain on disposal of investment securities
Gain on sale of subsidiaries
Proceeds from equity movement
Reversal of allowance for subsidiaries liquidation loss
OthersTotal extraordinary profit
Extraordinary loss
Loss from disposal of fixed assets
Depreciation and amortization
Loss from investment securities valuation
Loss from entrusted development
Transfer to allowance for bad debt
Amortization of goodwill
Reserve for subsidiaries losses
Loss from disposal of business
OthersTotal extraordinary loss
Quarterly net profit before income taxes
Corporate, local, and business taxes
Income taxes-deferred
Total corporate, local and business taxes
Income or Loss on minority shareholders
Net profit during the accounting period

9

FY2007(As of March 31, 2008)
50,192,701
37,087,481
13,105,220
10,835,540

FY2008(As of March 31, 2009)
59,621,547
42,921,824
11,035,339
9,609,763

2,266,680

1,425,576

127,299
44,18026,634
121,000–
64,314383,429

59,98430,97814,366–30,55026,196
162,076

183,041
511,161–
46,388740,591
1,909,519

79,776
349,565
103,859
59,708592,911994,740

228,505
826,627–
271,550
416,091–
5,707
1,748,481

966–
260,048–
48,77095,968
6,991
412,746

171,427
270,506
135,701
160,000
128,706
298,385
300,561–
74,237
1,539,526
2,118,474
553,584
754,971
1,308,555
272,584
537,334

77,452
16,081
267,401––
294,976–
378,564
69,072
1,103,549
303,937
178,943
333,328
512,272△58,920△149,415

(3) Consolidated statement of capital surplus and changes in net assets(Thousands of yen)
FY2007(As of March 31, 2008)
Shareholders’ equity
Common stock
Balance as of March 31, 2008
Changes of items during the accounting period
Total changes of items during the accounting period
Balance as of March 31, 2009
Capital surplus
Balance as of March 31, 2008
Changes of items during the accounting period
Total changes of items during the accounting period
Balance as of March 31, 2009
Retained earnings
Balance as of March 31, 2008
Changes of items during the accounting period
Cash dividend paid
Net gain or loss
Changes in consolidated amount
Total changes of items during the accounting period
Balance as of March 31, 2009
Treasury stock
Balance as of March 31, 2008
Changes of items during the accounting period
Acquisition of company’s own shares
Total changes of items during the accounting period
Balance as of March 31, 2009
Total shareholders’ equity
Balance as of March 31, 2008
Changes of items during the accounting period
Cash dividend paid
Net gain or loss
Changes in consolidated amount
Acquisition of company’s own shares
Total changes of items during the accounting period
Balance as of March 31, 200910

FY2008(As of March 31, 2009)

3,218,000

3,218,000

3,218,000

3,218,000

3,708,355

3,708,355

3,708,355

3,708,355

7,276,602

7,694,895△119,042
537,334
418,292
7,694,895△119,042△149,415△80,740△349,197
7,345,697△354,269△354,269△354,269△297,107△297,107△651,377

13,848,687

14,266,980△119,042
537,334
418,292
14,266,980△119,042△149,115△80,740△297,107△646,305
13,620,674

Valuation and translation adjustment
Net unrealized gains on investment securities
Balance as of March 31, 2008
Changes of items during the accounting period
Net changes of items other than shareholders’ equity
Total changes of items during the accounting period
Balance as of March 31, 2009
Foreign currency translation adjustments
Balance as of March 31, 2008
Changes of items during the accounting period
Net changes of items other than shareholders’ equity
Total changes of items during the accounting period
Balance as of March 31, 2009
Total valuation and translation adjustments
Balance as of March 31, 2008
Changes of items during the accounting period
Net changes of items other than shareholders’ equity
Total changes of items during the accounting period
Balance as of March 31, 2009
Share warrant
Subscription right
Balance as of March 31, 2008
Changes of items during the accounting period
Net changes of items other than shareholders’ equity
Total changes of items during the accounting period
Balance as of March 31, 2009
Minority interest
Balance as of March 31, 2008
Changes of items during the accounting period
Net changes of items other than shareholders’ equity
Total changes of items during the accounting period
Balance as of March 31, 2009
Total net assets
Balance as of March 31, 2008
Changes of items during the accounting period
Cash dividend paid
Net gain or loss
Changes in consolidated amount
Acquisition of company’s own shares
Net changes of items other than shareholders’ equity
Total changes of items during the accounting period
Balance as of March 31, 200911

FY2007(As of March 31, 2008)

FY2008(As of March 31, 2009)

1.195,867

799,398△396,468△396,468
799,398△329,497△329,497
469,900

189,991△52,807△242,798△242,798△52,807△680,388△680,388△733,196

1,385,858

746,591△639,267△639,267
746,591△1,009,886△1,009,886△263,295

487

-

△487
△487
-

-

679,808

1,531,478

851,670
851,670
1,531,478△389,013△389,013
1,142,464

15,914,842

16,545,050△119,042
537,334
211,915
630,208
16,545,050△119,042△149,115△80,740△297,107△1,398,900△2,045,206
14,499,844

(4) Consolidated Statements of Cash Flows

Item
Cash flow from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Loss from investment in equity method
Proceeds from equity movement
Increase in allowance for doubtful accounts
Increase (decrease) in reserve for bonus
Increase (decrease) in allowance for cost of card use
Decrease in allowance for unexercised sales promotion points
Increase in allowance for retirement benefits
Reserve for subsidiaries losses
Interest and dividends income
Interest on securities
Interest expenses
Foreign exchange gains
Loss from disposal of business
Gains on sale of investment securities
Gain on sale of corporate share on affiliated company
Valuation loss on investment securities
Losses from sale of fixed assets
Losses from disposal of fixed assets
Gain on transfer of operation
Decrease (increase) in accounts and notes receivable-trade
Decrease (increase) in inventories
Increase in accounts and notes payable-trade
Decrease (increase) in consumption taxes receivable
OthersSub-totalInterest and dividends received
Interest expenses paid
Expenditures for execution of debt guarantee
Refunded income taxes
Income taxes paid
Net cash provided by operating activities

12

FY2007 (FromApril 1, 2007 to
March 31, 2008)
Amount,thousand of yen

FY2008 (FromApril 1, 2008 to
March 31, 2009)
Amount,thousand of yen

2,118,474
574,121
270,506
2,742,576
511,161△416,091△503,533△34,621361,353△84,856
13,694
300,561△171,480△26,634
183,041△113,423△271,550
135,701△228,505
171,427△826,627△976,843
148,564
1,731,016
644,931515,692
6,768,658
1,368,840△174,210△1,255,650
821,694△1,417,105
6,112,226

303,937
484,092
16,0812,586,382
349,565△48,770△77,2418,069
4442,884△106,733
23,841△300,561△90,962△14,366
79,776
106,075
378,564△210,975
267,401△966
77,452△252,718
116,883
259,170△129,841
103,138
4370,178
165,000△79,443
281,938△236,738
4,500,936

Item
Cash flow from investing activities
Expenditure for deposit of time deposits
Proceeds from withdrawal of time deposits
Expenditures for acquisition of tangible fixed assets
Proceeds from sale of tangible fixed assets
Expenditure for acquisition of software
Expenditure for acquisition of intangible fixed assets
Expenditure for acquisition of other intangible fixed assets
Expenditure for acquisition of investment securities
Proceeds from sale of investment securities
Proceeds for sale of subsidiary’s shares causing a change in scope of
consolidation
Proceeds for transfer of operation
Expenditure for depositing long-term guaranty deposit
Expenditure for loans receivable
Proceeds from collection of loans receivable
Proceeds from collection of deposits with landlords
OthersNet cash used in investing activities
Cash flow from financing activities
Net increase in short-term loans
Proceeds from long-term borrowing
Expenditure for repayment of long-term borrowing
Proceeds from issue of bonds
Expenditure for issue of bonds
Proceeds from payment from minorities
Expenditure for acquisition of the company's own shares
Payment of dividends
Dividends paid to minority interests
Expenditure for refund to minorities
Expenditure for acquisition of shares from minorities
OthersNet cash flow used in financing activities
Effect of exchange rate on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Decrease of cash and cash equivalents due to exclusion of consolidation
Cash and cash equivalents at end of year

13

FY2007 (FromApril 1, 2007 to
March 31, 2008)
Amount,thousand of yen

FY2008 (FromApril 1, 2008 to
March 31, 2009)
Amount,thousand of yen△3,981,260
1,454,900△368,592
587,247△362,013△55,032△600,857
700,000
467,294△7,010,096
6,970,000△175,733
43,961△552,658
205,888△113,000
163,709-

1,144,319△3,997△424,290
652,638
1,035,254
98,645344,254△381,649
85,143△1,699△766,133△2,718,102
6,292,286△8,071,605
100,000△16,000
598,503△118,055△11,228△3,944,200
36,4822,548,762
8,065,471
10,614,234△500,000
25,000△2,054,090△24,700
73,314△297,107△117,379△30,545△105,163△320,543△3,351,213△268,540
115,048△80,147
10,614,234
10,649,135