Supplemental Data for theConsolidated Financial
Results for the 1st Quarter ofthe Fiscal Year Ending March2015 (FY2014)
Faith Inc.
August 8, 2014

© 2014 Faith, Inc. All Rights Reserved.

Consolidated Financial
Results for the 1st Quarterof the Fiscal Year Ending
March 2015 (FY 2014)© 2014 Faith, Inc. All Rights Reserved.

1

Highlights of Consolidated Financial Results for FY 2014 Q1
In keeping with the change of status of Nippon Columbia, Co., Ltd. from an equity-method affiliate to a fully consolidated
subsidiary, this company’s sales and business performance have been included in the Faith Group’s consolidated financial
results from the start of the fiscal year ending March 2015. As a result, for the first quarter of the current fiscal year, the Group
recorded net sales of ¥4,445 million (an increase of 171.1% compared with the same term of the previous fiscal year), an
operating loss of ¥391 million (compared with an operating income of ¥179 million for the same term of the previous year), anordinary loss of ¥386 million (compared with an ordinary income of ¥179 million for the same term of the previous year), and anet loss of ¥293 million (compared with a net income of ¥181 million for the same term of the previous year).
Net Sales :100 million
yenProfit :100 million
yen

Net SalesOperatingProfitNet Profit
Note : Net Sales and profit have not been recorded since FY 2012 1Q because Faith sold entire shareholding in WebMoney Corporation in July 2011.

© 2014 Faith, Inc. All Rights Reserved.

2

Results of the Content Business During FY 2014 1Q
Taking into account the ongoing deployment of new services and the decline in sales ofservices to feature phone users, the Content Business recorded net sales of ¥1,093 million(a decline of 15.0% year on year), and an operating income of ¥0 million (a decline of99.4% year on year).
Profit :million yen

Net Sales :million yen

Net
Sales
OperatingProfit© 2014 Faith, Inc. All Rights Reserved.

3

Results of the Point Service Business During FY 2014 1Q
Sales of points by member stores increased due to a surge of last-minute demand prior to the increase in the consumption tax
rate, with the result that this business recorded net sales of ¥586 million (an increase of 66.1% year on year). However, although
we worked to control sales-related expenses and general management expenses, the business experienced a profit ratio decline
due to redemptions of former points in line with the shift to server-based management and to an increase in initial costs in linewith the startup of new businesses, resulting in an operating income of ¥20 million (a decrease of 22.0% year on year).
Net Sales :million yen

Profit :million yen

Net
Sales
OperatingProfit© 2014 Faith, Inc. All Rights Reserved.

4

Results of the Columbia Business During FY 2014 1Q
During the first quarter under review, although in the Sales/Digital Distribution Business a rise in sales of large-scale J-Pop
products made a contribution to sales, overall sales of non-J-Pop music CDs, digital distribution titles and sales to mail-ordercompanies decreased steeply, due to the influence of the declining music market over the period and the rise in the Consumption
Tax rate. Also, a decrease in the sales ratio of titles using high-profit-margin sound sources was a factor in forcing down theprofitability of this business. As a result, for the first quarter of the current consolidated fiscal year, the Columbia Businessrecorded net sales of ¥2,765 million yen and an operating loss of ¥413 million yen.
Profit :million yen

Net Sales :million yen

Net
SalesOperating
Profit‐‐‐‐Note : as the Columbia Business has been included in the Faith Group’s business performance only from the start of the current fiscal year, nocomparisons with the same period of the previous fiscal year are given here.

© 2014 Faith, Inc. All Rights Reserved.

5

FY 2014 Q1 Consolidated Business Performance by Segment(Compared with the Previous Fiscal Year)(Unit: million yen)

Net salesFY13

FY141Q

1Q

Year-on-Year

Year-on-Yearchange (amount)change (%)

1,639

4,445

2,805

171.1%

1,287

1,093

△ 193

△ 15.0%352

586+233+66.1%－

2,765+2,765－

179

△ 391

△ 570－

1530△ 152

△ 99.4%

Point Service Business2620△5△ 22.0%

Columbia Business－△ 413△ 413－

Adjustment

00+0－

Ordinary profit

179

△ 386

△ 566－Net profit

181

△ 293

△ 474－

Content Business
Point Service Business

Columbia Business

Operating profit
Content Business

Note : The adjustment is due to the elimination of inter-segment transactions.
© 2014 Faith, Inc. All Rights Reserved.

6

FY 2014 Q1 Consolidated Balance Sheet(Compared with the End of Previous Fiscal Year)
100 million yen

Faith Consolidated Balance Sheet

320
300
Notes/accts payable 12Loans 10Notes/accts payable 9Loans 9260

Other current liabilities 39

Cash equivalents 141280

Other current liabilities 36

Fixed liabilities 12
Cash equivalents 137

Capital stock 32

Fixed liabilities 12
Capital stock 32

240
220200180

Capital surplus 37

Capital surplus 37

Notes/accts receivable 32

Notes/accts receivable 23

Other current assets 22

Other current assets 24160
140120100

Tangible fixed assets 30

Tangible fixed assets 30
Accumulated profit 154

Accumulated profit 148

8060

Intangible fixed assets 51

Intangible fixed assets 51

Investment securities 20

Investment securities 20March 2014

June 201440
200Total assets© 2014 Faith, Inc. All Rights Reserved.

298

Total assets

287

7

FY 2014 BusinessPerformance Forecast© 2014 Faith, Inc. All Rights Reserved.

8FY 2014 Full-Year Business Performance Forecast
As a consequence of acquiring Nippon Columbia Co., Ltd., as a consolidated subsidiary, etc., the Faith Group is currently
forecasting net sales of ¥21,500 million (up 239.1% year-on-year). Also, in accordance with the decline in income in theContent Business and the effects of amortization for the goodwill, trademark purchases, etc. in connection with the acquisitionof Nippon Columbia Co., Ltd., the Group is forecasting an operating income of ¥450 million (down 11.5% year-on-year), aordinary income of ¥430 million (down 26.7% year-on-year), and a net income of ¥100 million (down 75.2% compared withFY 2013).
Profit :100 millionyen

Net Sales :100 millionyenFY14(Forecast)

Net Sales
OperatingProfit
Net Profit© 2014 Faith, Inc. All Rights Reserved.

9FY 2014 Full-Year Consolidated Business Performance
Forecast by Segment(Unit: million yen)

Net sales

FY13FY14＿(Forecast)Year-on-Year

Year-on-Yearchange (amount)change (%)

6,340

21,500+15,160+239.1%

Content Business

5,007

4,900

△107

△ 2.1%

Point Service Business

1,332

1,700+368+27.6%

Columbia Business－

15,000+15,000－

Adjustment

－

△ 100

△ 100－508450△ 58△ 11.5%467345△ 122△ 26.1%

Point Service Business4020△ 20

△ 50.7%

Columbia Business－100+100－Adjustment

1△ 15△ 16－

Ordinary profit

586430△ 156△ 26.7%

Net profit

403100△ 303△ 75.2%

Operating profit
Content Business

Note : The adjustment is due to the elimination of inter-segment transactions.
© 2014 Faith, Inc. All Rights Reserved.

10Reference Materials© 2014 Faith, Inc. All Rights Reserved.

11

FY 2014 1Q Consolidated Net Sales(Compared with Previous Fiscal Year)JPY in millions-FY13 1Q

Content
コンテンツ事業

PointService

ポイント事業

1,000

2,000

3,000

4,000

5,000

1,639

▲193+233

Columbia
コロムビア事業+2,7654,445
FY14 1Q© 2014 Faith, Inc. All Rights Reserved.

4,445

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FY 2014 1Q Consolidated Operating Profit(Compared with Previous Fiscal Year)JPY in millions

(500)

(400)

(300)

(200)

(100)

-2013 1Q

▲152Pointポイント事業▲5ServiceAdjustment
調整額2014 1Q

200179

コンテンツ事業
Content

コロムビア事業
Columbia

100▲413+0▲391

Note : The adjustment is due to the elimination of inter-segment transactions.
© 2014 Faith, Inc. All Rights Reserved.

13

FY 2014 1Q Consolidated Ordinary Profit(Compared with Previous Fiscal Year)JPY in millions
(500)

(400)

(300)

(200)

(100)

FY13 1Q

100200179

Decrease in営業利益の減
Operating profit▲570

Decrease inInterest
recvd. /受取利息の減Increase
in/支払利息の増Interest paid.

▲5Exchange
為替差損益
gain/loss▲2Decreasein
持分法によるEquitymethod
投資損失の減invest. loss
Others-その他△570+11+0△386
FY14 1Q© 2014 Faith, Inc. All Rights Reserved.

▲386

14

FY 2014 1Q Consolidated Net Profit(Compared with Previous Fiscal Year)JPY in millions

(550)

(450)

(350)

FY13 1Q(50)

50

150

181▲566

Decrease in
事業譲渡益の減Gainon businesstransfer▲28▲63

Increase in
少数株主損失の増Loss of minority
shareholers
Others(150)184790

Decrease in
経常利益の減Ordinary
ProfitIncrease in
法人税等の増Corporation tax(250)

その他

FY14 1Q© 2014 Faith, Inc. All Rights Reserved.

+181
229+2181▲29315

NoticeThis document and its supporting documents
contain projections of our company’s future
performance. These are estimates by themanagement of Faith based on currently
available information. There are potential risks
and uncertainties that may affect the results.
Please be advised that actual performance may
differ significantly from the forecast.

© 2014 Faith, Inc. All Rights Reserved.

16