Summary of Business Results for the Year Ended September 30, 2009
November 5, 2009

Company name: Septeni Holdings Co., Ltd.
JASDAQ (Code 4293)
URL: http://www.septeni-holdings.co.jp
Representative: Muneyoshi Nomura, Representative Director and President
Contact: Kazumi Shimizu, Director
Tel: +81-3-5363-7340
Expected date of annual shareholders’ meeting: December 18, 2009
Expected starting date of dividend payment:
December 21, 2009
Expected date of filing of annual securities report: December 18, 2009
（Rounded down to million yen）

１. Consolidated business results for the year ended September 2009
(October 1, 2008 through September 30, 2009)(1) Consolidated results of operations

Year ended Sept. 2009
Year ended Sept. 2008(% change from the previous corresponding period)

Net sales
Million yen%
33,046
7.6
30,70018.7
Net income
per share

Operating income
Million yen%
598(46.8)
1,125
18.9

Return on
equityDiluted net
income per share
Yen

Year ended Sept. 2009
Year ended Sept. 2008

Ordinary income
Million yen%
421(58.2)
1,010(15.6)

Yen%―
4,326.58(4,507.28)
4,454.13(10.4)
10.7

Net income
Million yen
%
(585)
―
563
6.4

Ratio of ordinary
income to total
assets%3.3
8.8

Ratio of operating
income to net sales
%
1.8
3.7

(Reference) Investment earnings/loss on equity-method:Year ended September 2009: (90) million yen
Year ended September 2008: (14) million yen(2) Consolidated financial position
Total assets

Net assets

Million yen
11,911
13,482As of Sept. 2009
As of Sept. 2008

Million yen
5,770
6,788

Shareholders’ equity
ratio
%
44.0
44.6

Net assets per
share
Yen
41,098.01
45,528.87(Reference) Shareholders’ equity:
As of September 2009: 5,242 million yen
As of September 2008: 6,014 million yen(3) Consolidated results of cash flows

Year ended Sept. 2009
Year ended Sept. 2008

Cash flows fromoperating activities
Million yen
266
394

Cash flows frominvesting activities
Million yen(165)(1,183)

Cash flows fromfinancing activities
Million yen
(89)
2,387

Cash and cash equivalents
at the end of period
Million yen
4,719
4,707

2. Dividends
End of 3Q

Year-end

AnnualTotal
dividend(Annual)

Yen
―
―
―

Yen
800.00900.00Yen
800.00900.00Million yen
105
114

1,000.00

1,000.00

Dividend per share(Record date)Year ended Sept. 2008
Year ended Sept. 2009
Year ending Sept. 2010
(forecast)End of 1Q

End ofinterim

Yen
―
―
―

Yen
―
―
―

－ 1 －

Dividend
payout ratio(Consolidated)
%
18.0
―
31.9

Rate of total
dividend to net
assets(Consolidated)
%
2.1
2.1

3．Forecast of consolidated business results for the year ending September 2010
(October 1, 2009 through September 30, 2010)
Net sales

For the six months
ending Mar. 2010
Year ending Sept. 2010

Operating income

Ordinary income

Million yen%(% change from the previous year)
Net income
Net income per
share
Yen
Million yen %Million yen%

Million yen%

17,000

(1.4)

400

20.2

350

58.7

200

―

1,567.78

34,000

2.9

800

33.6

700

65.9

400

―

3,135.56

4. Others(1) Changes in significant subsidiary during the period (changes in specified subsidiary accompanying changes inthe scope of consolidation): None
(2) Changes in rules, procedures and indication methods of accounting process concerning the preparation of
consolidated financial results (Changes to important items that form the basis for preparing consolidated
financial statements)① Changes due to revision of accounting standards: Yes② Changes other than ①: None
(3) Shares outstanding (common stock)① Number of shares outstanding at the end of period (treasury stock included):
As of September 2009: 134,417 shares
As of September 2008: 134,347 shares② Treasury stock at the end of period:
As of September 2009:

6,848 shares

As of September 2008:

2,243 shares(Reference) Summary of non-consolidated business results
２. 1. Non-consolidated business results for the year ended September 2009
(October 1, 2008 through September 30, 2009)(1) Non-consolidated results of operations

Year ended Sept. 2009
Year ended Sept. 2008(% change from the previous year)

Net sales
Million yen
%
1,277
1.0
1,264
39.7

Operating income
Million yen
%
496
(2.6)
510
111.9

Net income
per share

Diluted net
income per share
Yen

Year ended Sept. 2009
Year ended Sept. 2008

1,045.64(280.68)

Ordinary income
Million yen
%
435
4.1
418
(8.8)

Net income
Million yen
%
135
―
(35)
―

Yen
1,017.55―(2) Non-consolidated financial position
Total assets
As of Sept. 2009
As of Sept. 2008

Net assets

Million yen
6,461
6,708

Million yen
5,676
5,714

(Reference) Shareholders’ equity:
As of September 2009: 5,601 million yen
As of September 2008: 5,652 million yen－ 2 －Shareholders’ equity
ratio
%
86.7
84.3

Net assets per
share
Yen
43,907.65
42,785.20

* Explanation regarding appropriate use of business forecasts and other special instructions
Forecasts regarding future performance in these materials are based on information and assumptions at the time thisreport was prepared. Therefore, actual results may differ significantly from the forecasts due to various factors.

(Difference from previous non-consolidated business results)
Net income has been recorded due to improvement in gains and losses but this is mainly because there was asubstantial decrease in extraordinary loss compared with the previous fiscal year.
We do not disclose non-consolidated business forecasts.

1. Results of Operations(1) Analysis of results of operations(Results of operations for the year ended September 2009)
In the fiscal year under review, the Japanese economy plunged into an unprecedented economic recession as theeffects of the global financial crisis that was triggered by the failure of major US financial institutions spread to the real
economy. In the first half of the year there were signs that earnings were improving at some companies and in someindustries thanks to the economic stimulus packages implemented by various governments. Nevertheless, there is still
uncertainty about the future as consumer spending remains weak in the absence of an improvement in jobs and wages.
Looking at the environment surrounding Internet business, the Septeni Group's core business domain, using theInternet through a PC has become part of people's everyday lives, while the mobile market continues to expand as
mobile handsets establish a solid foothold as devices used to access the Internet as 3G handsets become widespread andas mobile websites improve.
Under this set of circumstances, the Septeni Group's net sales rose just to 33,046 million yen (up 7.6% year-on-year )after revenues in our core Internet Advertising segment turned downwards in the third quarter due to the effects of therecession. Although we endeavored to reduce group-wide overhead costs to secure profits, profitability fell sharply in
our Internet Businesses segment, while the Commerce segment and Investment and Business Incubation segment posted
losses. As a result, operating income was 598 million yen (down 46.8% year-on-year). Ordinary income was 421 million
yen (down 58.2% year-on-year) as the balance of non-operating income and expenses deteriorated due to unrealized
losses on investment securities in connection with the market value of financial instruments and investment losses on
equity-method holdings.
Furthermore, extraordinary losses totaled 887 million yen, including 203 million yen in losses on the sale ofinvestment securities and write-downs on the disposal of a variety of investment securities, which was aimed atstrengthening the Company's financial position; 150 million yen for the settlement of an advertising incident in theInternet Advertising segment, 173 million yen for an allowance for doubtful accounts in the Internet Businesses segment,
and 138 million yen for various impairment losses.
As a result of the foregoing, the Company posted a net loss of 585 million yen (profit of 563 million yen in the prioryear).

－ 3 －The results for each business segment are presented below.
①Internet Advertising segment
In the year under review we worked to expand market share by increasing sales in the rapidly expanding mobile
advertising market and by targeting a wider range of customer segments by strengthening our sales organization. We
also worked to improve productivity by taking steps such as relocating some of our listing advertising functions toregional locals. Although the business climate steadily worsened from the beginning of the year onwards due to a seriesof financial and economic crises, the segment's performance was relatively solid in the first half of the year, as
evidenced by the growth in both revenue and profits for the first six months.
However, beginning in the third quarter, quarterly revenue and profits started coming up short of the prior year's
results as client companies slashed advertising budgets due to the economic slump and major advertisers cut back on ad
placements. Therefore, we took steps to address the dramatically changing environment, such as cutting overhead costs
and pursuing sales initiatives focused on profitability.
As a result, net sales were 26,706 million yen (up 5.4% year-on-year) and operating income was 908 million yen(down 12.5% year-on-year) .
② Internet Businesses segment
Consolidated subsidiary Axel Mark Inc. operates in the content domain, and it has made upfront investments toacquire the rights to major content, such as video. However, this content is not yet profitable. After examining costs
versus benefits, in the second quarter, we began cutting back on the advertising placement aimed at winning subscribers.
As a result, sales and gross profit on sales fell short of the initial forecasts.
However, sales rose sharply in the wholesale mobile advertising business area, thanks to an increase in demand.
In the technology domain, in addition to the core e-mail distribution ASP services, the customer management systemthat was introduced last fiscal year also did well.
As a result, net sales were 4,578 million yen (up 8.1% year-on-year) and operating income was 62 million yen (down
67.2% year-on-year).
③ Direct Marketing segment
In a challenging business climate where demand was shrinking we focused our efforts on cultivating new customers,
but the amount of existing business declined, and as a result sales were 2,100 million yen (down 7.1% year-on-year) andoperating income was 173 million yen (down 30.5% year-on-year).
④ Other Businesses
The newly created Commerce segment posted sales of 1,501 million yen (roughly 30-fold increase from a year
earlier). However, selling, general and administrative expenses remained at a high level. These expenses including theadvertising and promotional expenses associated with the first quarter customer acquisition campaign. Additionally, a
101 million yen unrealized loss on operational investment securities was booked as a cost of sales in the Investment andBusiness Incubation segment. As a result, there was an operating loss of 210 million yen on other businesses (loss of 34
million yen in the prior year).

－ 4 －(Forecast for the year ending September 2010)
Looking at the climate surrounding the core Internet Advertising segment, demand for Internet advertising has been
declining due to the economic slump, but there are signs that it is bottoming out. As the economy enters a recovery
phase, we expect companies -- especially major corporations -- in various sectors to increasingly shift their budgets fromconventional mass media to the Internet. With the aim of becoming even more competitive in the Internet Advertisingsegment, the Septeni Group is focusing its efforts in three areas: the growing mobile advertising market; web-based
solutions, such as site creation and operating support; and "ad technology" which helps companies optimize advertising
results using technology.
In the Internet Businesses segment (content) we will generally focus our efforts on offering content with a high levelof user satisfaction with making upfront investments, and we will work to make existing sites more effective as we
strive to re-build a foundation for earnings.
We will be striving to bring the Commerce segment into the black by proactively introducing highly unique new
products while also seeking to lift the general level of earnings by making the EC department fully operational.
Thanks to these efforts, we expect 34,000 million yen in net sales (up 2.9% year-on-year), 800 million yen in
operating income (up 33.6% year-on-year), 700 million yen in ordinary income (up 65.9% year-on-year), and 400
million yen in net income (loss of 585 million yen in the prior year).

(2) Analysis of financial position①Assets, liabilities and net assets(Assets)
Current assets decreased 596 million yen from the prior year end to 9,494 million yen due to a 491 million yen
decrease in trade notes and accounts receivable and a 90 million decrease in operational investment securities arisingfrom a write-down.
Fixed assets decreased 975 million yen from the prior year end to 2,417 million yen due to a 451 million yen decrease
in investment securities arising from the sale of shares and write-downs, a 131 million yen decrease in long-term
pre-paid expenses arising from the posting of impairment losses, a 191 million yen decrease in deferred tax assets, and a
155 million yen increase in the allowance for doubtful accounts.
As a result of the foregoing, total assets decreased 1,571 million yen from the prior year end to 11,911 million yen.
(Liabilities)
Current liabilities decreased 851 million yen from the prior year end to 5,769 million yen due to a 561 million yen
decrease in trade payables and a 207 million yen decrease in accrued income taxes.
Fixed liabilities increased 297 million yen from the prior year end to 371 million yen due to a 279 million yen
increase in long-term borrowing.
As a result of the foregoing, total liabilities decreased 553 million yen from the prior year end to 6,140 million yen.
(Net Assets)
Net assets decreased 1,018 million yen from the prior year end to 5,770 million yen due to a 690 million yen decrease
in retained earnings arising from dividend payments and the net loss for the year under review, 159 million yen for the－ 5 －acquisition of treasury stock, and a 264 million yen decrease in minority interests.
②Cash flow
Cash and cash equivalents (hereafter referred to as "cash") increased 11 million yen from the prior year end to 4,719
million yen.
The various cash flows for the fiscal year under review and the main factors are presented below.
(Cash flow from operating activities)
Cash flow from operating activities totaled 266 million yen (down 127 million yen from the prior year).
Although there was a 424 million yen net loss before taxes and other adjustments, a 560 million yen decrease in trade
payables, a 540 million yen corporate tax payment, there was also a 389 million yen decrease in trade receivables, 140
million yen in depreciation and amortization expenses, 138 million yen in impairment losses, a 163 million yen increasein the allowance for doubtful accounts, 116 million yen in losses on the sale of investment securities, 149 million yen in
unrealized losses on investment securities, and a 150 million yen settlement for an advertising incident.
(Cash flow from investing activities)
Cash flow from investing activities totaled 165 million yen (down 1,018 million yen from the prior year).
Although there was 254 million yen in proceeds from the sale of investment securities, there was also 135 million yen
in outflows for the acquisition of goodwill, 111 million yen in outflows for the acquisition of intangible fixed assets, 46
million yen in outflows for the acquisition of subsidiary shares, and 50 million yen in outflows for the acquisition ofaffiliate shares.
(Cash flow from financing activities)
Cash flow used financing activities totaled 89 million yen (obtained 2,387 million yen in the prior year) fromfinancing activities.
Although there was 795 million yen in proceeds from long-term borrowing (including borrowing to be repaid within
one year), there was also a 349 million yen decrease in short-term borrowing, 251 million yen in outflows for the
repayment of long-term borrowing, 159 million yen in outflows for the acquisition of treasury stock, and 105 million
yen in dividend payments.
(Reference) Cash flow indicators

Shareholders'equity ratio (%)
Market value basis
shareholders'equity ratio (%)
Cash
flow
to
interest-bearing
debt (%)
Interest coverage
ratio (x)Year ended Sept.
2005
52.7

Year ended Sept.
2006
48.6

Year ended Sept.
2007
47.3

Year ended Sept.
2008
44.6

Year ended Sept.
2009
44.0

338.9

217.6

178.1

87.5

53.7

51.8

52.1

65.3

310.0

531.2

192.8

233.3

96.9

41.1

13.5

－ 6 －

Shareholders' equity ratio: shareholders' equity ÷ total assets
Market value basis equity ratio: market capitalization ÷ total assets
Cash flow to interest-bearing debt (%): interest-bearing liabilities ÷ cash flow
Interest coverage ratio: cash flow ÷ interest paid
Notes: 1. All figures calculated using consolidated-basis financial data
2. Market capitalization calculated based on number of outstanding shares after deducting treasury stock.
3. Operating cash flow used for cash flow.
4. Interest-bearing liabilities include all liabilities shown on the consolidated Statement of Financial Condition onwhich interest is paid.
(3) Basic policy concerning the distribution of profits, and dividend distributions for the year ending September
2010
Septeni regards returning profits to shareholders as a paramount issue for management. Dividends from surplus
Septeni has adopted a policy of returning profits to shareholders to the extent possible, aiming for dividend payout ratioof approximately 15% of consolidated net income for the year, while taking into consideration the consolidated-basis
results each fiscal year, as well as the need to strengthen the Company's financial position and provide for futurebusiness strategies.
Because the Company has posted a consolidated net loss for the year under review, dividend payment should besuspended in accordance with the above policy. Nevertheless, in light of the peculiar characteristics of theconsolidated-basis results for the year under review and the level of unconsolidated-basis earnings, the Company intends
to distribute the initially planned dividend of 900 yen per share in appreciation of the continuing support of ourshareholders.
Going forward, while aiming for the same 15% consolidated-basis dividend payout ratio, we have established 1,000
yen per share as the minimum dividend, in principle. With the appropriate distribution of profits commensurate withearnings expansion as the underlying principle, the Company will also consider the need to maintain a steady dividend
into consideration. The Company will use internal reserves to invest in growing, highly profitable business areas, toinvest in making existing businesses more efficient and productive and to invest in education to develop our humanresources.
Based on this new basic policy, the Company intends to distribute a year-end dividend of 1,000 yen per share for theyear ending September 2010.
2. The Septeni company group
There have been no material changes in the information that was presented in Organizational Chart and the Affiliates
sections of our most recent annual securities report (submitted December 19, 2008). Therefore, this information is notpresented here.
3. Management policies(1) There have been no material changes in the Company's basic policies for management, the Company's medium to－ 7 －longer term business strategy, performance indicators used to set objectives, and the status and operation of internal
control systems as presented in the Summary of Business Results for the Year Ended September 2008 (released
November 6, 2008). Therefore, this information is not presented here.
To see the relevant Summary of Business Results, please go to the following URL:
(Septeni website) http://www.septeni-holdings.co.jp
Jasdaq Securities Exchange website (JDS search function) http://jds.jasdaq.co.jp/tekiji/(2) Issues requiring attention
The Septeni Group's business results sharply deteriorated in the year ended September 2009 due to dramatic changes
in the external environment and a variety of internal factors. The issues that should be promptly addressed by the
Septeni Group in order to restore earnings and continuously enhance the value of the company are presented below.
①Expand Internet Advertising segment profits
There are signs that the decline in demand for Internet advertising that has been caused by the economic slump isbottoming out. As the economy enters a recovery phase, we expect companies -- especially major corporations -- invarious sectors to increasingly shift their budgets from conventional mass media to the Internet.We recognize that inorder to keep expanding profits in the future, it is critical for the Septeni Group to precisely address the evolving needsof our customers and provide high value-added Internet marketing services. With the aim of becoming even morecompetitive in the Internet Advertising segment, we are focusing our efforts in three areas: the growing mobile
advertising market; web-based solutions, such as site creation and operating support; and "ad technology" which helps
companies optimize advertising results using technology.
②Turning around the Internet Businesses segment and Commerce segment
In the year ended September 2009, profits in the Internet Businesses segment fell sharply due to the poor results in thecontent domain, while the Commerce segment posted an operating loss. Therefore, improving the profitability of both ofthese business segments is a pressing issue for restoring the consolidated-basis earnings of the Septeni Group. Both ofthese segments are steadily forging ahead to improve their businesses by implementing measures such as cutting
overhead costs, closing down unprofitable operations, and right-sizing staffing levels.
Going forward, Septeni's management team will participate even more deeply in the management of these segments andbe directly involved in rebuilding the foundations of their businesses, with the aim of achieving a quick restructuring ofthese segments.
③Reinforcing and improving group governance and internal control systems
The Septeni Group has grown to encompass 13 consolidated subsidiaries and approximately 700 employees. In order
to continuously enhance the enterprise value of the Group, we must reinforce and improve the holding company's group
governance and internal control systems. With respect to governance, while fundamentally respecting the independenceof the group companies, in light of the business downturn experienced in the year just ended, we will reinforce thebusiness oversight function and support the sound growth of each of the companies. Furthermore as the businessexpands in size, issues are emerging in connection with our internal control systems. Along with seeking to raise the－ 8 －level of awareness among our employees, we will also endeavor to reinforce and improve monitoring functions and risk
control systems.
④Aggressively creating new businesses
The Septeni Group has started up a variety of new businesses within the Group. One of these is the Internet
Advertising segment which has now become our core business. Going forward, in order to respond to the changing
business environment and continue to expand the value of the enterprise, the Septeni Group will continue toaggressively develop new businesses by fostering and creating a climate for "internal entrepreneurs" and by nurturing
new growth drivers.

－ 9 －4. Consolidated Financial Statements(1) Consolidated Balance Sheets
Prior Consolidated Fiscal Year
(September 30, 2008)(Units: Thousand yen)
Current Consolidated Fiscal Year
(September 30, 2009)

4,707,660
4,590,404
242,500
52,061
100,856
403,454(6,754)
10,090,183

4,719,048
4,098,688
152,014
42,165
4,828
10,365105,291
376,499(14,834)
9,494,068

137,364
133,532
270,896

119,91780,778200,696

496,078
113,999
38,5651,305
649,949569,348
90,8655,400
5,785
671,399

1,385,621
600,947
261,557
309,191(85,715)
2,471,602
3,392,448
13,482,632

934,455
621,147
70,274
159,981(240,924)
1,544,933
2,417,029
11,911,097

AssetsCurrent assets
Cash and deposits
Notes receivable/trade receivables
Operational investment securities
Inventory
MerchandiseWork in process
Supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings (net amount)
Tools, furniture and fixtures (net amount)
Total tangible fixed assets
Intangible fixed assets
Goodwill
Software
Software suspense account
Other intangible fixed assets
Total intangible fixed assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets－ 10 －

Prior Consolidated Fiscal Year
(September 30, 2008)(Units: Thousand yen)
Current Consolidated Fiscal Year
(September 30, 2009)

4,364,015
1,215,000
8,370
251,635
272,205
172,142
1,908
335,454
6,620,731

3,802,024
865,002272,100
179,468
65,059161,429
1,177
100,385
10,389312,6445,769,681

73,29173,291
6,694,023

279,450
91,568371,018
6,140,699

1,992,360
3,093,675
1,252,783(258,897)
6,079,921

1,977,9783,099,204
561,970(418,093)
5,241,060(65,369)

1,771(65,369)
62,879711,1786,788,609
13,482,632

1,771
80,509447,055
5,770,397
11,911,097

Liabilities
Current liabilities
Trade payables
Short-term debt
Current portion of long-term debt
Accounts payable
Accrued corporate income and other taxes
Allowance for bonuses
Allowance for product returns
Allowance for business losses
Allowance for office relocation
Other
Total current liabilities
Fixed liabilities
Long-term debt
Other
Total fixed liabilities
Total liabilities
Net asset
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation/exchange adjustments
Unrealized gain (loss) on
available-for-sale securities
Total valuation/exchange adjustments
Stock acquisition rights
Minority interests
Total net assets
Total liabilities and net assets－ 11 －

(2) Consolidated Statement of Income(Units: Thousand yen)
Prior Consolidated Fiscal Year
(From October 1, 2007 to
September 30, 2008)

Current Consolidated Fiscal Year
(From October 1, 2008 to
September 30, 2009)

30,700,996
24,892,938
5,808,057
5,808,057
4,682,592
1,125,465

33,046,916
26,712,044
6,334,871
1,908
1,177
6,335,603
5,736,852
598,750

27,997
15,644
44,48011,9209,566
109,609

8,530
9,553
2,813
6,268
27,166

9,592
14,93335,773
149,314
14,538662
224,8141,010,260

19,71825,21364,72190,6493,795
204,098
421,818

47,409399,750
54,8868,518
601
511,166

13,06527,93087
41,082

8,609
8,250
2,176
345,222206,940
33,053604,252
917,174

66,951
138,453
116,60787,142150,000
100,385
173,371
54,763887,674(424,773)

Net sales
Cost of sales
Gross profit
Reversal of allowance for product returns
Transfer to allowance for product returns
Adjusted gross profit on sales
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Unrealized gain on investment securities
Amortization of negative goodwill
Other
Total non-operating income
Non-operating expenses
Interest expense
Stock offering expense
Stock listing expense
Unrealized loss on investment securities
Investment loss on equity-method holdings
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of investment securities
Gain on change in subsidiary ownership
Gain on sale of subsidiary shares
Reversal of allowance for doubtful accounts
Reversal of accrued tax revision amount
Gain on reversal of stock acquisition rights
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of fixed assets
Impairment loss
Loss on sale of investment securities
Unrealized loss on investment securities
Tax revision amount
Settlement for advertising incident
Transfer to allowance for business losses
Transfer to allowance for doubtful accounts
Other
Total extraordinary losses
Net income (loss) before taxes and otheradjustments－ 12 －

(Units: Thousand yen)
Prior Consolidated Fiscal Year
(From October 1, 2007 to
September 30, 2008)

Current Consolidated Fiscal Year
(From October 1, 2008 to
September 30, 2009)

520,263

220,170(67,767)(110,820)
341,675
11,558563,940

142,053362,224(201,868)(585,128)

Corporation taxes, local residence taxes, andbusiness taxes
Refunds of corporate and other taxes
Adjustment of corporate and other taxes
Total corporate income and other taxes
Minority interest income (loss)
Net income (loss)－ 13 －

(3) Consolidated Statement of Changes in Shareholders' Equity(Units: Thousand yen)
Current Consolidated Fiscal Year
(From October 1, 2008 to
September 30, 2009)

Prior Consolidated Fiscal Year
(From October 1, 2007 to
September 30, 2008)
Shareholders' equity
Common stock
Balance at end of previous period
Changes in the current period
New stock issued
Total changes in the current
periodBalance at end of current period
Capital surplus
Balance at end of previous period
Changes in the current period
New stock issued
Disposition of treasury stock
Total changes in the current
periodBalance at end of current period
Retained earnings
Balance at end of previous period
Changes in the current period
Dividends from surplus
Net income (loss)
Total changes in the current
periodBalance at end of current period
Treasury stock
Balance at end of previous period
Changes in the current period
Acquisition of treasury stock
Disposition of treasury stock
Total changes in the current
periodBalance at end of current period
Total shareholders' equity
Balance at end of previous period
Changes in the current period
New stock issued
Dividends from surplus
Net income (loss)
Acquisition of treasury stock
Disposition of treasury stock
Total changes in the current
periodBalance at end of current period－ 14 －

1,476,981

1,992,360

515,378
515,378

5,617
5,617

1,992,360

1,997,9782,596,574

3,093,675

497,100
497,100

5,617
(88)
5,529

3,093,675

3,099,204

776,167

1,252,783(87,324)
563,940
476,616(105,683)(585,128)(690,812)

1,252,783

561,970(258,894)(258,897)(3)(3)(159,279)
83(159,195)(258,897)(418,093)

4,590,829

6,079,921

1,012,479(87,324)
563,940(3)
1,489,092

11,235(105,683)(585,128)(159,279)(5)(838,861)

6,079,921

5,241,060

Prior Consolidated
Fiscal Year
(From October 1, 2007 to
September 30, 2008)
Valuation/exchange adjustments
Unrealized gain (loss) on available-for-salesecurities
Balance at end of previous period
Changes in the current period
Net changes in items other than shareholders'equityTotal changes in the current period
Balance at end of current period
Valuation/exchange adjustments
Balance at end of previous period
Changes in the current period
Net changes in items other than shareholders'equityTotal changes in the current period
Balance at end of current period
Stock acquisition rights
Balance at end of previous period
Changes in the current period
Net changes in items other than shareholders'equityTotal changes in the current period
Balance at end of current period
Minority interests
Balance at end of previous period
Changes in the current period
Net changes in items other than shareholders'equityTotal changes in the current period
Balance at end of current period
Total net assets
Balance at end of previous period
Changes in the current period
New stock issued
Dividends from surplus
Net income (loss)
Acquisition of treasury stock
Disposition of treasury stock
Net changes in items other than shareholders'equityTotal changes in the current period
Balance at end of current period－ 15 －(Units: Thousand yen)
Current Consolidated
Fiscal Year
(From October 1, 2008 to
September 30, 2009)(109,018)(65,369)

43,64867,141

43,648(65,369)

67,141
1,771(109,018)(65,369)

43,64867,141

43,648(65,369)

67,141
1,771

27,09162,87935,787

17,63035,78762,87917,63080,509234,875

711,178

476,301(264,123)

476,301
711,178(264,123)
447,055

4,743,779

6,788,609

1,012,479(87,324)
563,940(3)
555,737

11,235(105,683)(585,128)(159,279)(5)(179,350)

2,044,830
6,788,609(1,018,211)
5,770,397

(4) Consolidated Cash Flow Statement
Prior Consolidated
Fiscal Year
(From October 1, 2007
to September 30, 2008)
Cash flow from operating activities
Net income (loss) before taxes and other adjustments
Depreciation & amortization expenses
Impairment loss
Amortization of negative goodwill
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in allowance for bonuses
Increase (decrease) in allowance for business losses
Tax revision amount or reversal of accrued tax revision amount
Settlement for advertising incident
Unrealized loss (gain) on investment securities
Loss (gain) on sale of investment securities
Interest income and dividend income
Interest expense
Investment loss (gain) on equity-method holdings
Loss (gain) on change in subsidiary ownership
Loss (gain) on sale of subsidiary shares
Loss on retirement of fixed assets
Stock-based compensation expense
Gain on reversal of stock acquisition rights
Decrease (increase) in trade receivables
Decrease (Increase) in operational investment securities
Decrease (increase) in inventory
Increase (decrease) in trade payables
Other
SubtotalInterest and dividend income
Interest paid
Amount paid for tax revision
Amount paid for settlement for advertising incident
Refund of corporate or other taxes
Amount of corporate and other taxes paid
Cash flow from operating activities－ 16 －

917,174
92,2828,250(1,829)2,032
44,870206,940
450,057(45,346)(43,642)
9,592
35,550(399,750)(54,886)
8,609
54,065(836,238)(173,961)
9,404
885,285(14,939)
1,153,521
42,906(9,592)(188,774)
44,823(648,283)
394,601(Units: Thousand yen)
Current Consolidated
Fiscal Year
(From October 1, 2008
to September 30, 2009)(424,773)
140,024
138,453
82,718163,290(10,712)100,385(13,065)
150,000
149,050
116,607(18,084)
19,71896,441
66,951
56,795(27,930)
389,290
90,485(5,528)(560,980)
100,442
799,583
21,286(19,718)(5,100)(36,912)
48,155(540,601)
266,691

Prior Consolidated
Fiscal Year
(From October 1,
2007 to September
30, 2008)
Cash flow from investing activities
Payment for the acquisition of securities
Proceeds from the sale of securities
Payment for the acquisition of goodwill
Payment for the acquisition of tangible fixed assets
Payment for the acquisition of intangible fixed assets
Payment for the acquisition of investment securities
Proceeds from the sale of investment securities
Payment for the acquisition of subsidiary shares inconnection a change in scope of consolidation
Payment for the acquisition of subsidiary shares
Proceeds from the sale of subsidiary shares
Payment for the acquisition of affiliate shares
Decrease (increase) in loans receivable
Proceeds from business transfer
Other
Cash flow from investing activities
Cash flows from financing activities
Increase (decrease) in short-term debt
Proceeds from long-term debt
Payment for repayment of long-term debt
Proceeds from issue of common stock
Payment for the acquisition of treasury stock
Proceeds from payments by minority shareholders
Amount of dividends paid
Amount of dividends paid to minority shareholders
Other
Cash flow from financing activities
Exchange adjustment in connection with cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Beginning cash and cash equivalents
Ending cash and cash equivalents－ 17 －(Units: Thousand yen)
Current Consolidated
Fiscal Year
(From October 1, 2008
to September 30,
2009)(101,186)
101,299(67,469)(78,199)(448,295)
324,069(133,951)(135,000)(56,503)(111,275)(8,477)
254,481-

78,200(513,800)(126,784)(217,837)(1,183,956)(46,835)(50,000)
2,339
8,000
(22,079)(165,350)

675,000(19,992)
986,772(3)
841,839(87,324)(8,375)2,387,916-(349,998)
795,000(251,820)0(159,284)(105,683)(17,509)(657)(89,951)-

1,598,562
3,109,097
4,707,660

11,3884,707,660
4,719,048

Segment informationa. Segment information by business category
Previous consolidated fiscal year (from October 1, 2007 to September 30, 2008)
Network
Advertisingbusiness

Internetrelated
business

Total(Units: Thousand yen)
Eliminations
or corporate
Consolidated

49,11030,700,996-

30,700,996-

1,172,899(1,172,899)-

49,11083,586(34,476)

31,873,895
30,428,990
1,444,905(1,172,899)(853,459)(319,439)

30,700,996
29,575,531
1,125,465

1,265,388
224
59

11,624,161
98,9248,250
197,980

1,858,471(6,641)(22,067)

13,482,632
92,282
8,250
175,912

Direct Mail
business

Otherbusinesses

25,192,988
3,216,963
2,241,933(1) Sales to externalcustomer
137,924
1,016,965
18,009(2) Inter-segment sales
and transfers
Total
25,330,913
4,233,929
2,259,943
Operating expenses
24,293,062
4,042,005
2,010,366
Operating income
1,037,851
191,923
249,606
ⅡAssets, depreciation
expense and capital
expense7,132,502
2,601,056
625,214
Assets
50,79546,8871,017
Depreciation expense
8,250
Impairment loss
113,715
84,017
187
Capital expense(Note) 1. Method for determination of business segments

ⅠNet sales andoperating income

Businesses are categorized based on similarities of markets served.
2. Descriptions of business segments
Business segment
Description of businessNetwork Advertising business
Internet advertising agency, ad network
Internet-related business
Mobile services (operation of media, distribution of content),
Thechnology (e-mail distribution, ASP, system integration)
Direct Mail businessOutsourcing services for direct mail and distribution of other sales
promotion materials
Other businesses
Investment and incumbation, new businesses, e-commerce business
3. Eliminations company-wide include operating expenses of 853,459 thousand yen, and includes fees forholding company operations, amount of purchase or transfer amount.
4. Eliminations company-wide include 1,858,471 thousnad yen, and includes cash and deposits and investment
securities at a company and assets, etc. related to holding company operations.
5. Depreciation expenses and capital expense include long-term prepaid expenses and related depreciation cost.

－ 18 －

Current consolidated fiscal year (from October 1, 2008 to September 30, 2009)
Network
Advertisingbusiness

Internetrelated
business(Thousand yen)
Eliminations
or corporate
Consolidated

Direct Mail
business

Otherbusinesses

Total

26,639,537
2,827,952
2,080,004(3) Sales to externalcustomer
67,2081,750,275
20,539(4) Inter-segment sales
and transfers
Total
26,706,745
4,578,228
2,100,543
Operating expenses
25,798,576
4,515,320
1,926,949
Operating income
908,169
62,908173,594
ⅡAssets, depreciation
expense and capital
expense6,451,735
2,402,807
590,090
Assets57,78549,2391,603
Depreciation expense
16,282
120,852
Impairment loss
81,07048,632
2,323
Capital expense(Note) 1. Method for determination of business segments

1,499,421

33,046,916-

33,046,916

1,703

1,839,727(1,839,727)-

1,501,124
1,711,289(210,164)

34,886,643
33,952,134
934,509(1,839,727)(1,503,968)(335,758)

33,046,916
32,448,165
598,750

1,010,371
38,154
1,317
16,701

10,455,004
146,782
138,453
148,728

1,456,092(6,758)(10,108)

11,911,097
140,024
139,453
138,619

ⅠNet sales andoperating income

Businesses are categorized based on similarities of markets served.
2. Descriptions of business segments
Business segment
Description of businessNetwork Advertising business
Internet advertising agency, ad network
Internet-related business
Mobile services (operation of media, distribution of content),
Thechnology (e-mail distribution, ASP, system integration)
Direct Mail businessOutsourcing services for direct mail and distribution of other sales
promotion materials
Other businesses
Investment and incumbation, new businesses, e-commerce business
3. Eliminations company-wide include operating expenses of 1,503,968 thousand yen, and includes fees forholding company operations, amount of purchase or transfer amount.
4. Eliminations company-wide include 1,456,092 thousnad yen, and includes cash and deposits and investment
securities at a company and assets, etc. related to holding company operations.

b. Regional segment information
Previous consolidated fiscal year (from October 1, 2007 to September 30, 2008) and current consolidated fiscal
year (from October 1, 2008 to September 30, 2009)
No information provided as we have no consolidated subsidiaries or branch offices other than Japan.

c. Overseas sales
Previous consolidated fiscal year (from October 1, 2007 to September 30, 2008) and current consolidated
fiscal year (from October 1, 2008 to September 30, 2009)
No information provided as there are no overseas sales.

(Information on related party)
No information provided as we consider unnecessary to disclose financial results.

－ 19 －