Supplemental Data for theConsolidated Financial Results forthe 1st Quarter of the Fiscal YearEnding March 2016 (FY 2015 Q1)Faith, Inc.

© 2015 Faith, Inc. All Rights Reserved.

Consolidated Financial Results forthe 1st Quarter of the Fiscal YearEnding March 2016 (FY 2015 Q1)© 2015 Faith, Inc. All Rights Reserved.

1

Consolidated Financial Result Highlights for FY 2015 Q1
In line with the continuing expansion in sales of smartphone-use services and Nippon Columbia’s return toprofitability, the Faith Group recorded net sales of ¥4,695 million, operating income of ¥164 million, andnet income attributable to the shareholders of the parent company of ¥55 million.
Net sales:
100 million
yen30050240

40180301202060

1000

FY11 1Q

FY12 1Q

FY13 1Q

FY14 1Q

FY15 1Q

Net sales

278.3

16.6

16.3

44.4

46

Operating income

7.4

2.7

1.7(3.9)

1.6

Net income

4.3

1.9

1.8(2.9)

0.5

Operatingincome: 100million yen-10※Net income for the current term attributable to shareholders of the parent company※Following the disposal of the Company’s consolidated subsidiary WebMoney Corporation in July 2011, the Electronic Money Business waseliminated and sales revenue has not been recorded in this segment since FY 2011 Q2.
© 2015 Faith, Inc. All Rights Reserved.

2

Results of the Content Business During FY 2015 Q1
Due to the positive deployment of new services, net sales in the Content Business increased by 3.0% to¥1,125 million. Moreover, as a result of reductions in subcontracting, advertising and promotional
expenses, operating income increased by ¥32 million year on year to ¥33 million.
2,000

280

1,500

210

1,000

14050070

Operatingincome:million yen

Net sales:million yen0

FY11 1Q

FY12 1Q

FY13 1Q

FY14 1Q

FY15 1Q

Net sales

1,632

1,371

1,287

1,093

1,125

Operating income

253

253

153033© 2015 Faith, Inc. All Rights Reserved.

03

Results of the Point Service Business During FY 2015 Q1
Although more new points were issued, eco-point sales declined following the end of the eco-pointsystem. As a result, net sales decreased by 2.4% to ¥571 million. Also, with the shift to server
management-based operation and a revision of procurement costs, operating income increased by 165.8%to ¥53 million.
Net sales:
million yen

600

60500

Operating50 income:million yen

400

40300

30200

20100

100

FY11 1Q

FY12 1Q

FY13 1Q

FY14 1Q

FY15 1Q

Net sales

481

297352586

571

Operating income

6024262053© 2015 Faith, Inc. All Rights Reserved.

04

Results of the Columbia Business During FY 2015 Q1Higher sales of animation-related titles and a general increase in Direct Sales Business sales boosted theColumbia Business’s sales by 8% to ¥2,998 million. The sales increase plus a steep decline in fixed costs due
to career change support measures sent operating income to ¥71 million, up ¥485 million year on year.
Net sales:
million yen

3,000

3,0002,5002,500 income:Operatingmillion yen

2,000

2,000

1,500

1,500

1,000

1,000500

50000-500Net sales
Operating income

FY11 1Q

FY12 1Q

FY13 1Q

FY14 1Q

FY15 1Q

---

2,765

2,998(413)

71-500※The Columbia Business’s net sales and operating income have been included in the Faith Group’s business results since FY 2014 Q1.
© 2015 Faith, Inc. All Rights Reserved.

5FY 2015 Q1 Consolidated Business Performance by Segment(Compared with the Previous Fiscal Year)(Unit: million yen)

FY14 Q1

FY15 Q1

Year-on-year

Year-on-yearchangechange (%)

4,445

4,695

250

0

1,093

1,125

32

0586

571

(14)

0(2,765)

2,998

232

0(391)

164

556

—

03332

—

(20)

53

73

—

Columbia Business

(413)

71484

—

Adjustment amount*

054—

Ordinary income

(386)

168

554

—

Net income attributable toshareholders of the parent

(293)

55

349

—

Net sales
Content Business
Point Service Business
Columbia Business
Operating income
Content Business
Point Service Business※The adjustment amount is due to the elimination of inter-segment transactions.
© 2015 Faith, Inc. All Rights Reserved.

6

FY 2015 Q1 Consolidated Balance Sheet(Compared with the End of the Previous Fiscal Year)
Faith Consolidated Balance Sheet Information

Unit: 100 million yen

260

Notes/accounts payable 11Long-term loans 13

Notes/accounts payable 9Long-term loans 12240
220

Other current liabilities 48
Other current liabilities 40

200

Fixed liabilities 8180

Capital stock 32

160

Cash & deposits 131
Fixed liabilities 9

Cash & deposits 130

Capital stock 32

140

Capital surplus 37Notes/accounts receivable
29
Other current assets 22

Capital surplus 37
Notes/accounts receivable
21

Retained earnings, etc.
108

100

Other current assets 18

Tangible fixed assets 30

Tangible fixed assets 30

Intangible fixed assets 27

Intangible fixed assets 27

120

Retained earnings, etc.
106

80
60
40

Investments/other assets
19

Equity capital 169(Capital ratio65.5%)

2015年3月末
総資産258億円
End ofMarch 2015: Totalassets¥25,800 million© 2015 Faith, Inc. All Rights Reserved.

Investments/other assets
20

Equity capital 166(Capital ratio68.1%)

2002015年6月末
End ofJune 2015: Total総資産
assets 244億円¥24,400 million

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

8

FY 2015 Full Year Business Performance Forecast
Amid a continuing decline in sales of existing services and the expansion of new services, our forecast isfor net sales of ¥20 billion (up 2.1% year-on-year). Also, with the return to profitability of the Columbia
following its structural reforms and with revenue from new services, we are forecasting operating incomeof ¥400 million and net income attributable to the shareholders of the parent company of ¥150 million.
Net sales:
100 million
yen

400

8030060 Operatingincome:40 100 million
yen
20200
10000-20
FY11FY12FY13FY14FY15Net sales

3346763

196200Operating income

16105(8)4Net income

67

114(33)

2-40*Net income for the current term attributable to shareholders of the parent company※Following the disposal of the Company’s consolidated subsidiary WebMoney Corporation in July 2011, the Electronic Money Business waseliminated and sales revenue has not been recorded in this segment since FY 2012 Q2.
© 2015 Faith, Inc. All Rights Reserved.

9FY 2015 Consolidated Business Performance
Forecast by Segment(Unit: million yen)

FY15

FY14(forecast)Year-on-year

Year-on-yearchangechange (%)

19,59720,000Content Business

4,550

6,400

1,849

0

Point Service Business

2,454

2,100(354)(0)

12,591

11,500(1,091)

(0)

(891)

400

1,291

—

168

335

166

12655

28

1Columbia Business(1,104)

101,114—

Adjustment amount*

18

15(3)

—

(862)

380

1,242

—

(3,340)

150

3,490

—

Net sales

Columbia Business
Operating income
Content Business
Point Service Business

Ordinary income
Net income attributable to shareholdersof the parent company※The adjustment amount is due to the elimination of inter-segment transactions.
© 2015 Faith, Inc. All Rights Reserved.

403

010

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

11

FY 2015 Q1 Consolidated Net Sales(Compared with Previous Fiscal Year)
Unit: million yen-FY14Q1
1Q
FY 2014

1,000

2,000

3,000

4,000

5,000

4,445

Content
コンテンツ事業+32

Business

ポイント事業(14)

Point Service
Business

コロムビア事業

Columbia
Business

FY15Q1
1Q
FY 2015© 2015 Faith, Inc. All Rights Reserved.

+232

4,445
4,695

12

FY 2015 Q1 Consolidated Operating Income(Compared with Previous Fiscal Year)
Unit: million yen

(400)

(300)

FY 2014
FY14 Q1
1QContentBusiness

コンテンツ事業

(200)

(100)

-100200(391)+32

PointService
ポイント事業
Business+33

Columbia

コロムビア事業
Business+485

Adjustment
調整額
amount*+4

FY15 Q1
1Q
FY 2015※The adjustment amount is due to the elimination of inter-segment transactions.
© 2015 Faith, Inc. All Rights Reserved.

163

13

FY 2015 Q1 Consolidated Ordinary Income(Compared with Previous Fiscal Year)
Unit: million yen(400)
FY14Q1
1Q
FY 2014

(300)

(200)

(100)

-100200(386)

Increase in operating
営業利益の増income556

Decrease in interest
受取利息の減/received/increase in
支払利息の増Interest
paid(4)

Decrease in investment
持分法による
losses on equity
method
投資損失の増(3)

Othersその他

6△386
FY15Q1
1Q
FY 2015© 2015 Faith, Inc. All Rights Reserved.

168

14

FY 2015 Q1 Consolidated Net Income※(Compared with Previous Fiscal Year)
Unit: million yen(300)

FY 2014
FY14 Q1
1Q(200)

(100)

-

100

200300(293)

Increase in ordinary
経常利益の増income554

Increase in gains on
段階取得に係る差益の増
step acquisitions

13

Increase in gains on reversal
新株予約権戻入益の増of share subscriptionrights

10

Increasein net income
非支配株主に帰属する
attributable to noncontrolling四半期純利益の増
shareholders
Othersその他
FY 2015
Q1
FY15 1Q(225)(3)55※Consolidated net income is defined as net income for the current term attributable to shareholders of the parent company.
© 2015 Faith, Inc. All Rights Reserved.

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 that

actual performance may differ significantly from the forecast.

© 2015 Faith, Inc. All Rights Reserved.

16