BRIEF STATEMENT OF CONSOLIDATED FINANCIAL RESULTS
FOR THE 1st QUARTER OF THE FISCAL YEAR ENDING MARCH 2013
[Japanese Standards]

August 10, 2012
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: +81-3-5464-7633
Date of Submission of Securities Report: August 131, 2012
Starting Date of the Dividend Payment: Preparation of Supplementary Materials for Quarterly Financial Results: Applicable
Information Meeting for Quarterly Financial Results to be Held: None
Amounts are rounded down to the nearest JPY 1 million.

1. Results for the 1st Quarter of the Year Ending March 2013
(From April 1, 2012 to June 30, 2012)(1) Consolidated Operating Results
Those figures in “%” show increased/decreased ratio compared with the previous 1st quarter of fiscal term

Net Sales
Millionsof yenQ1 of the year ending
March 2013
Q1 of the year ending
March 2012

Operating Profit%

Millionsof yenRecurring Profit
Millionsof yen%Net Profit%

Millionsof yen

%

1,669

△94.0

278

△62.7

229

△71.0

184

△57.8

27,831

62.5

746

105.1

790

111.3

436

235.9

(Note) Comprehensive income: 1st quarter of the fiscal year ending March 2013: ¥143 million (△73.4%); 1st quarter of the fiscal year
ending March 2012: ¥541 million (273.5%)

Net Profit
per Share

Q1 of the year ending
March 2013
Q1 of the year ending
March 2012

Diluted Net Profit
per ShareYen
160.61

Yen—

380.20377.53(2) Consolidated Financial Position
Total Assets

Q1 of the year
ending March 2013
Q1 of the year
ended March 2012

Ratio of Equity Capital

Net Profit Per Share

Millions of yen

Net Assets
Millions of yen%

yen

22,025

19,70589.4

17,146.49

23,518

19,61883.3

17,066.74

Reference: Equity Capital: 1st quarter of the fiscal year ending March 2013: 19,685 million yen; the fiscal year ended March 2013: 19,593
million yen

2. Dividends
Dividends per share(Record dates)

Year ending March 2012
Year ending March 2013
Year ending March 2013
(Forecast)

1st Quarter

yen
―
―

3rd Quarter

InterimYear-end

Total

yen
50.00

yen
―

yen
50.00

yen
100.00

50.00

―

50.00

100.00Note: Forecasts for the dividends have not modified at the announcement of the financial statements for FY2012 Q1.

1

3. Forecasts for the Consolidated Business Results for the Year Ending March 2013
(from April 1, 2012 to March 31, 2013)
The figures in “%” show increased/decreased ratio compared with the previous fiscal year and the previous interim result.

Net SalesInterimresults 2013
Year ending
March 2013

Operating Profit

Recurring Profit

Net Income

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

Net Income
per Share
Yen

3,500

△88.3

150

△86.2

80

△93.1

60

△99.0

52.26

7,300

△78.2

540

△65.7

490

△72.1

430

△93.5

374.55

Note: Forecasts for the consolidated business results have not been modified at the time of announcement of the financial statements for
FY2012 Q1.

※ 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 3 of the accompanying material.

(3) Changes in accounting policy, changes in accounting estimates, and restatements(2)-1. Changes accompanying revisions of accounting standards, etc.: Applicable(2)-2. Changes other than the above: None(2)-3. Changes in accounting estimates: Applicable(2)-4. Restatements: None
* Changes are subject to Article 10, Clause 5 of “Ordinance on Terminology, Forms and Preparation Methods of Quarterly
Consolidated Financial Statements”. For details, please refer to “2. Summary Information, (3) Changes in Accounting Principles,
Procedures, and Disclosure Methods” on page 3 of the accompanying material.

(4) Outstanding shares (common shares)(4)-1. Outstanding shares at the end of the fiscal years (including treasury shares):
The 1st quarter of the fiscal year ending March 2013: 1,196,000 shares
The fiscal year ending March 2012: 1,196,000 shares(4)-2. Treasury shares at the end of the fiscal years:
The 1st quarter of the fiscal year ending March 2013: 47,950 shares
The fiscal year ending March 2012: 47,950 shares(4)-3. Average number of shares at the interim accounting period
The 1st quarter of the fiscal year ending March 2013: 1,148,050 shares
The 1st quarter of the fiscal year ending March 2012: 1,148,050 shares* 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 1. “Qualitative Information regarding Quarterly Performance and Financial Position” onpage 2 of the accompanying 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 regarding Quarterly Performance and Financial Position ·························(1) Qualitative Information regarding the Consolidated Operating Results ····································(2) Qualitative Information regarding the Consolidated Financial Position ····································(3) Qualitative Information regarding the Forecast of Consolidated Financial Results ···················

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2. Summary Information ·················································································································(1) Changes in Major Subsidiaries during the 1st Quarter·······························································(2) Adoption of Simplified Methods in the Preparation of Quarterly Financial Statements ············(3) Changes in Accounting Principles, Procedures, and Disclosure Methods ································

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3. Consolidated Financial Statements ······························································································(1) Consolidated Balance Sheet ····································································································(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
for the 1st Quarter····················································································································(3) Explanatory Note regarding Premise of a Going Concern ························································(4) Segment Information ··············································································································(6) Note for Significant Changes in Amount of Shareholders’ Equity ············································

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8
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1. Qualitative Information regarding Quarterly Performance and Financial Position(1) Qualitative Information regarding the Consolidated Operating Results
The mobile phone and smartphone market in Japan has now reached maturity with the number ofindividual subscriptions exceeding 120 million as of March 2012 (*1). In particular, the demand forsmartphones is continuing to increase favorably, and smartphone shipments are expected to account forover half of the 31 million mobile phone and smartphone units forecast to be shipped in FY 2012 (*2).
Moreover, in the content market, the popularity of social networking services (SNS), mobile social
games, video-sharing sites, etc, that require a wide range of mobile terminal functions is leading to an
acceleration in the diversification and complexity of user needs, and this in turn is driving demand forthe creation of new services and contents distribution.
(*1) Research by MM Research Institute, (*2) Research by Gartner
Against this background, based on its Multi-Content and Multi-Platform Strategy of creating anenvironment that allows people to enjoy a wide diversity of contents whenever and wherever theychoose, the Faith Group has been pouring its energies into creating high value-added contents andestablishing a new system for delivering them to users.
As a result of the above factors, and in line with the disposal of the Company’s consolidated subsidiary
WebMoney Corporation in July 2011, net sales for the first quarter of the fiscal year ending March 2013
decreased by 94.0% compared with the same term of the previous fiscal year to ¥1,669 million,
operating profit decreased by 62.7% year on year to ¥278 million, recurring profit decreased by 71.0%
year on year to ¥229 million, and net profit decreased by 57.8% year on year to ¥184 million.
Information on each business segment is as follows. In addition, from the current first quarter
consolidated accounting period, changes have been made to the composition of the reported segments.
Accordingly, regarding year-on-year comparisons, figures for the same period of the previous fiscal
year have been changed to reflect the new reported segments and allow comparisons with figures for thepresent fiscal year.
<Content Business>
During the period under review, the Faith Group continued its efforts to establish a new framework forcontent distribution and expand and strengthen its new business operations base.
Overseas, we are already engaged in new forms of music promotion using social media services such as
Facebook, etc., and the Company has also started a full-scale social music app service called viBirth
App as the first service of its kind in Japan. With this service, artists and fans can utilize a full range offunctions such as music purchase, playback, free movie viewing, photo posting, Twitter, etc., all free ofcharge. As a result, some well-known artists have begun to adopt the service for use as their own
Facebook page. Moreover, in a joint venture with XING INC., we have developed and begun providing
a full-scale karaoke service called JOYSOUND.TV that users can enjoy together with a Sony BRAVIALCD TV, a Blu-ray Disc player, etc.
In line with of the above developments, and mainly due to a decrease in income in the ringtone melody
business, the Content Business recorded net sales of ¥1,371 million, a decline of 16.0% year on year.
However, factoring in a decrease in the amortization of goodwill, this business recorded an operating
profit of ¥253 million, a decline of 0.2% year on year.
<Point Service Business>
In the Point Service Business, sales of point-card systems moved steadily, but due to a decline in the
supply of goods associated with the approaching deadline for applications for exchanges of home
appliance eco-points, this business recorded net sales of ¥297 million, a decline of 38.2% year on year,
and an operating profit of ¥24 million, a decline of 59.1% year on year.

(2) Qualitative Information regarding the Consolidated Financial Position
Total assets as of June 30, 2012 decreased by ¥1,493 million compared to March 31, 2012 to ¥22,025
million. This result was mainly the result of decreases in cash and deposits, and investment securities.

2

Total liabilities decreased by ¥1,579 million compared to the end of the previous consolidated fiscal
year to ¥2,320 million. This result was mainly due to decreases in income taxes payable and long-termloans payable in accordance with repayments.
Total net assets increased by ¥86 million compared to the end of the previous consolidated fiscal year to¥19,705 million. This was mainly due to the recording of a quarterly net profit, etc., despite payment ofdividends. As a result, the equity ratio increased by 6.1 percentage points to 89.4%.

(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 forecast issued on May 11, 2012.

2. Summary Information(1) Changes in Major Subsidiaries during the 1st Quarter
None(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 1st 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 Principles, Procedures, and Disclosure Methods(Changes in Accounting Policy that are Difficult to Distinguish from Changes in Accounting Estimates)
In accordance with the revision of the Corporation Tax Act, from the current 1st quarter consolidated
accounting period the Company and its consolidated subsidiaries have changed the method ofdepreciation based on the revised law and applied the new method to tangible fixed assets obtained on
or after April 1, 2012.
The effects of this change on the Company’s operating profit, recurring profit and net profit before taxes
and other adjustment for the current 1st quarter consolidated accounting period are minimal.

33. Consolidated Financial Statements for the 1st Quarter(1) Consolidated Balance Sheet for the 1st Quarter
FY2011(As of March 31, 2012)(Assets)
Current assets
Cash and deposits
Accounts and notes receivable
Marketable securities
Commercial products
Products in progress
Primary materials and inventory goods
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
Deferred tax liabilities
Allowance for retirement benefits
OthersTotal fixed liabilities
Total liabilities

4(Unit: thousands of yen)
The 1st Quarter of FY2012(As of June 30, 2012)

13,712,005
1,106,836
239,790
2,580
8,199
7,817
28,269260,218△29,816
15,335,901

12,538,466
1,054,677
440,230
4,298
13,5748,235
28,269173,372△28,302
14,232,822

3,007,786

2,975,661

40,599382,135
422,734

34,516375,957
410,474

4,644,916
121,294△13,734
4,752,477
8,182,998
23,518,900

4,331,631
75,734△568
4,406,797
7,792,933
22,025,756

187,933
399,984
1,424,393
208,142
73,566614,625
2,908,644

168,096
399,984
50,952
196,21454,287569,717
1,439,252

733,384
125,729
109,389
22,846
991,350
3,899,995

633,388
108,423
117,404
21,795881,0112,320,264

FY2011(As of March 31, 2010)(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
Minority interests
Total net assets
Total liabilities and net assets

5(Unit: thousands of yen)
The 1st Quarter of FY2012(As of June 30, 2012)

3,218,000
3,708,355
13,106,638△651,377
19,381,616

3,218,000
3,708,355
13,233,622△651,377
19,508,600

227,124△15,270
211,853
25,435
19,618,905
23,518,900

195,927△19,496
176,430
20,461
19,705,491
22,025,756

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income for the
1st Quarter(Consolidated Statement of Income)(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
Investment gain on equity method
Miscellaneous receipts
Total non-operating profit
Non-operating expenses
Interest paid
Investment loss on equity method
Exchange losses
Miscellaneous expenses
Total non-operating expenses
Recurring profit
Extraordinary profit
Gain on disposal of investment securities
Total extraordinary profit
Extraordinary losses
Loss on disposal of fixed assets
Loss on valuation of investment securities
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 quarter

6

The 1st Quarter of FY
2011

The 1st Quarter of FY
2012(April 1-June 30, 2011)27,831,290
24,781,762
3,049,528
2,303,345
746,182(April 1-June 30, 2012)
1,669,316
809,958
859,358
581,083
278,274

1,913
3,392
10,59435,877975
52,754

9,820
3,767
965
—
1,348
15,902

4,410
—
4,206
—
8,617
790,319

2,015
56,994
5,568
103
64,681
229,494

27,99527,995

—
—

375
—
375
817,939
235,555
582,383
145,899
436,484

3,460
2,573
6,034
223,460
44,048179,412△4,973
184,386

(Consolidated Statement of Comprehensive Income)(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

7

The 1st Quarter of FY
2011

The 1st Quarter of FY
2012(April 1-June 30, 2011)
582,383(April 1-June 30, 2012)
179,412△988△31,028△40,075△4,394△41,064
541,319△35,422
143,989

395,419

148,963

145,899△4,973

(3) Explanatory Note regarding Premise of a Going Concern
Not applicable(4) Segment Information
Ⅰ 1st quarter of the fiscal year 2011 (April 1, 2011 - June 30, 2011)

1. Information on sales and income (loss) by business segment reported(Unit: thousands of yen)Content
Business
Net sales
Sales to outside customers
Intersegment
transfers

sales

and

Total
Segment profit
Notes:

Electronic
Money
Business

Point
ServiceBusiness

Total

Adjustment

Consolidated
statement
amount

1,632,350

25,717,225

481,71427,831,290—

27,831,290

50,962400—

51,632△51,362—

1,683,313

25,717,625

481,71427,882,652△51,362

27,831,290

253,976

430,774

60,627745,377805

746,182

1. Adjustment of segment profit of ¥805 thousand refers to elimination of intersegment transactions.
2. Segment profit is adjusted with the operating profit in the quarterly consolidated profit and loss statement.

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

Ⅱ 1st quarter of the fiscal year 2012 (April 1, 2012 - June 30, 2012)

1. Information on sales and income (loss) by business segment reported(Unit: thousands of yen)Content
Business
Net sales
Sales to outside customers
Intersegment
transfers
Total
Segment profit
Notes:

sales

andPoint Service
Business

Total

Consolidated
statement amount

Adjustment

1,371,654

297,661

1,669,316—

1,669,316

5,248

—

5,248

△5,248—1,376,903

297,661

1,674,565△5,248

1,669,316

253,571

24,780278,352△78

278,274

1. Adjustment of segment profit of △¥78 thousand refers to elimination of intersegment transactions.
2. Segment profit is adjusted with the operating profit in the quarterly consolidated profit and loss statement.

2. Items concerning changes in reportable segments, etc.
From the current 1st quarter consolidated accounting period, the reportable segments have beenchanged from the previous two segments of the “Content Business “and “Electronic Money
Business” to the two segments of the “Content Business” and the “Point Service Business”. Thischange was made because the Company’s involvement in the Electronic Money Business ceased
following the sale of the Company’s shareholding in its consolidated subsidiary WebMoney
Corporation on July 19, 2011, and also in view of the growing importance of the Point Service
Business, which was previously included in the “Others” segment.

8

In addition, segment information relating to the previous year’s 1st quarter consolidated accounting
period has been produced based on the reportable segments for the current year’s 1st quarter
consolidated accounting period.

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

(5) Note for Significant Changes in Amount of Shareholders’ Equity
Not applicable9