Supplemental Data for theConsolidated Financial Results forthe 3rd Quarter of the Fiscal YearEnding March 2015 (FY 2014 Q3)© 2015 Faith, Inc. All Rights Reserved.

Consolidated Financial Results forthe 3rd Quarter of the Fiscal YearEnding March 2015 (FY 2014 Q3)© 2015 Faith, Inc. All Rights Reserved.

1

Consolidated Financial Result Highlights for FY 2014 Q3
Including the Columbia Business Segment’s sales and operating loss, the Group recorded net sales of¥14,163 million (up 198.0% year on year), an operating loss of ¥888 million, an ordinary loss of ¥864million, and a net loss for the quarter of ¥797 million.
Net sales（100 million yen）

Operating income（100 million yen）

※Following the disposal of the Company’s consolidated subsidiary WebMoney Corporation in July 2011, the Electronic Money Business
was eliminated and sales revenue has not been recorded in this segment since FY 2012 Q2.
© 2015 Faith, Inc. All Rights Reserved.

2

Results of the Content Business During FY 2014 Q3
In line with the changing market environment and declining sales of feature phone services, the ContentBusiness recorded net sales of ¥3,425 million (a decline of 8.9% year on year). Also, due to increasing
costs in connection with the start up of new smartphone-user services, etc., in addition to the decline insales, this business recorded an operating income of ¥132 million (a decline of 68.4% year on year).
Net sales:（million yen）

© 2015 Faith, Inc. All Rights Reserved.

Operatingincome（million yen）

3

Results of the Point Service Business During FY 2014 Q3
Sales of points increased in line the opening of new point member stores and sales promotion, taking netsales to ¥1,675 million (up 68.6% year on year). However, the the profit ratio declined due toredemptions of former points in line with the shift to server-based management and to an increase ininitial costs in line with new business startups, resulting in operating income of ¥18 million (down 66.5%
year on year).
Net sales（million yen）

© 2015 Faith, Inc. All Rights Reserved.

Operatingincome（million yen）

4

Results of the Columbia Business During FY 2014 Q3
In line with the continuing shrinking of the music market, the Columbia Business experienced anoverall decline in sales of music CDs and digital distribution titles, resulting in net sales of ¥9,061
million. Also, due to declines in sales of high-margin titles released in past years and in transactions
utilizing past sound sources, this business reported an operating loss of ¥1,047 million.
Net sales（million yen）

Operatingincome（million yen）

※Because the Columbia Business Segment’s sales and operating loss have been included in the Faith Group’s business performance only since the startof the current fiscal year, no comparisons with the 3rd quarter of the previous fiscal year are given.
© 2015 Faith, Inc. All Rights Reserved.

5

FY 2014 Q3 Consolidated Business Performance by Segment(Compared with the Previous Fiscal Year)(Unit: million yen)

※The adjustment amount is due to the elimination of inter-segment transactions.
© 2015 Faith, Inc. All Rights Reserved.

6

FY 2014 Q3 Consolidated Balance Sheet(Compared with the End of the Previous Fiscal Year)(Unit: 100 million yen)

300

Notes/accounts payable 12Long-term loans 10

Notes/accounts payable 9

Other current liabilities

Cash & deposits 142

Long-term loans 840

Other current liabilities

Fixed liabilities 1339

Capital stock 32

Cash & deposits 123

Fixed liabilities 12
Capital stock 32

280260240220200180

Capital surplus 37
Capital surplus 37

Notes/accounts
receivable 32

Notes/accounts
receivable 27

Other current assets
23

Other current assets
26

Tangible fixed assets
Retained earnings, etc.
31
154

Tangible fixed assets
30
Retained earnings, etc.

Intangible fixed assets
51

Intangible fixed assets
50

Investments/otherassets 20

Investments/otherassets 20

End of March 2014:

End of December

160
140
120

139

100
80

60
40
200Total assets: ¥29.9

Equity capital: ¥20.8 billion

2014: Total assets:

Equity capital: ¥19.8 billion

billion(Capital ratio: 69.6%)¥27.6 billion(Capital ratio: 71.7%)© 2015 Faith, Inc. All Rights Reserved.

FY 2014 Business
Performance Forecast© 2015 Faith, Inc. All Rights Reserved.

8

FY 2014 Full Year Business Performance Forecast
With the inclusion of Nippon Columbia as a consolidated subsidiary, the Faith Group’s net sales are
forecast to rise. However, due to a decline in income in the Contents Business and to a steep drop in sales
and the booking of an extraordinary loss in the Columbia Business, etc., net income is forecast to fall
substantially below the level of the previous year.

Net sales:(100 million yen)

Net income:(100 million yen)

※Upon receipt of the additional implementation of career development support measures taken by Nippon Columbia Co., Ltd. on January 6, 2014, the Company
issued a “Notice Concerning the Forecast of the Occurrence of an Extraordinary Loss by the Company and a Subsidiary”. The extraordinary loss in question isforecast to be a maximum of approx. ¥360 million. At the present time, since the number of retirees and the total amount of retirement benefits remain to be
determined, the current performance forecast for the full financial year is unchanged from the revised forecast issued on October 28, 2014.

© 2015 Faith, Inc. All Rights Reserved.

9

FY 2014 Consolidated Business Performance
Forecast by Segment(Unit: million yen)

※The adjustment amount is due to the elimination of inter-segment transactions.
※Upon receipt of the additional implementation of career development support measures taken by Nippon Columbia Co., Ltd. on January 6, 2014, the Company
issued a “Notice Concerning the Forecast of the Occurrence of an Extraordinary Loss by the Company and a Subsidiary”. The extraordinary loss in question isforecast to be a maximum of approx. ¥360 million. At the present time, since the number of retirees and the total amount of retirement benefits remain to bedetermined, the current performance forecast for the full financial year is unchanged from the revised forecast issued on October 28, 2014.
© 2015 Faith, Inc. All Rights Reserved.

10Reference Materials© 2015 Faith, Inc. All Rights Reserved.

11

FY 2014 Q3 Consolidated Net Sales(Compared with Previous Fiscal Year)(Unit: million yen)
０FY 2013 Q3ContentBusiness

Point Service
Business

Columbia
Business

FY 2014 Q3© 2015 Faith, Inc. All Rights Reserved.

3,000

6,000

9,000

12,00015,0004,752▲333+681+9,061

4,445
14,16312FY 2014 Q3 Consolidated Operating Income(Compared with Previous Fiscal Year)(Unit: million yen)
(1,000)

(800)

(600)

(400)

(200)

０-200

400600FY 2013 Q3476
Content Business▲286

Point Service
Business

Columbia
Business
Adjustment
Amount▲37▲1,047+6

FY 2014 Q3▲888※The adjustment amount is due to the elimination of inter-segment transactions.
© 2015 Faith, Inc. All Rights Reserved.

13FY 2014 Q3 Consolidated Ordinary Income(Compared with Previous Fiscal Year)(Unit: million yen)
(1,000)

(800)

(600)

(400)

(200)

FY2013 Q3400600△570▲1,365▲12InvestmentLoss
onEquityMethod
Decrease
Other200509

OperatingIncome
Decrease
InterestReceived
Derease/InterestPaidIncrease

０+5▲1FY2014 Q3© 2015 Faith, Inc. All Rights Reserved.

△386▲ 86414

FY 2014 Q3 Consolidated Net Income(Compared with Previous Fiscal Year)(Unit: million yen)
(1,500)(1,200)(900)

FY2013Q3(300)０-300464184790

DecreaseinOrdinaryIncome▲1,373

Organizational
Reform-Related
Loss

▲150

Decreasein
GainonBusinessTransfer▲28

DecreaseinGainon
SaleofInvestment
Securities

Increasein
CorporationTax(600)▲25▲286

IncreaseinLosson
MinorityInterests
OtherFY2014Q3© 2015 Faith, Inc. All Rights Reserved.

229+582

181+19▲797
15

NoticeThis document and its supporting documents containprojections of our company’s future performance. These areestimates by the management of Faith based on currently
available information. There are potential risks anduncertainties that may affect the results. Please be advised thatactual performance may differ significantly from the forecast.

© 2015 Faith, Inc. All Rights Reserved.

16