Member of the Financial Accounting Standards Foundation

Summary of Financial Statements
for the First Nine Months of the Year Ending June 30, 2011
May 12, 2011
Listed Company:
Stock Exchange:
Code Number:
URL:
Representative:
Contact:
Tel.:
Filing of Quarterly Report:
Planned date of interim dividend payments:
Supplemental materials for quarterly financial results:
Earnings announcement for quarterly financial results:

MACROMILL, INC.
Tokyo Stock Exchange3730
http://www.macromill.com/
Tetsuya Sugimoto, Chairman and President
Yasuhiro Kihara, Senior Executive Officer and Chief Financial Officer+81-3-6716-0700
May 13, 2011—
Yes
No
(Figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the First Nine Months of the Year Ending June 30, 2011 (July 1, 2010 to March 31, 2011)(1) Consolidated Results of Operations for the First Nine Months
Net sales(The percentages are year-on-year changes.)
Ordinary income
Net income

Operating income

Million yen%

Million yen%

Million yen%

Million yen%

First nine months of year ending
June 2011

9,236

63.8

2,096

29.1

2,155

32.9

1,066

4.0

First nine months of year ended
June 2010

5,639

(6.5)

1,624

12.4

1,621

12.2

1,025

34.8

Diluted net income
per share

Net income per share
YenFirst nine months of year ending
June 2011

Yen

35.09

34.77

First nine months of year ended
8,299.93
8,260.26
June 2010(Note) The Company carried out a 200-for-1 stock split for its common shares, effective on January 1, 2011. Net income per share in the previous fiscal year was
calculated based on the number of shares before the stock split.

(2) Consolidated Financial Position
Total assets

Net assets

Shareholders' equity ratio

Net assets per share

Million yen

Million yen%

First nine months of year ending
June 2011

Yen

13,241

10,96181.4

353.04First nine months of year ended
June 2010

9,313

7,734

82.8

57,740.64(Reference) Shareholders’ equity

First nine months of year ending June 2011
10,774
million yen
First nine months of year ended June 2010
7,711
million yen(Note) The Company carried out a 200-for-1 stock split for its common shares, effective on January 1, 2011. Net income per share in the previous fiscal year was
calculated based on the number of shares before the stock split.

2. Dividends
Dividend per share
Record date

End of 1st quarterEnd of 2nd quarterEnd of 3rd quarter

Year end

Annual

Yen

Yen

Yen

Yen

Yen

Year ended June 30, 2010–

1,500.00–

1,800.00

3,300.00

Year ending June 30, 2011–

2,000.00

Year ending June 30, 2011–
9.00
2,009.00(forecast)(Note) Revision to the forecast of dividends during this quarter: No(Note) 1. Dividends for the first nine months will be paid for shares before the stock split. The dividend per share will include a commemorative dividend of 500
yen.
2. The Company carried out a 200-for-1 stock split for its common shares, effective on January 1, 2011, and the year-end dividend is calculated based on
the number of shares after the stock split.

3. Forecast of Consolidated Financial Results for the Year Ending June 2011 (July 1, 2010 to June 30, 2011)
Net sales
Million yen
Full year

12,300Operating income% Million yen
67.3

2,500

(The percentages are year-on-year changes.)
Net income
Net income per share

Ordinary income% Million yen

17.4

2,500

% Million yen
17.1

1,200

%
(5.2)

Yen
(Note)

39.45

(Note) Revisions to the forecast of consolidated results during this quarter: Yes(Note) The Company carried out a 200-for-1 stock split for its common shares, effective on January 1, 2011, and the net income per share is calculated based on
the number of shares after the stock split. The net income per share, if calculated on pre-stock-split basis, would be 7,890.01 yen per share.

4. Other (For details, please refer to “Other Information” on page 5 of the accompanying materials.)(1) Important changes in subsidiaries during this quarter (changes in specific subsidiaries accompanied by a change in theYesscope of consolidation):New:
1（M-CUBE AND ASSOCIATES, INC.)
Exception:–(Note) Any changes in specific subsidiaries accompanied by a change in the scope of consolidation during the quarter under review(2) Application of simplified accounting method and accounting methods unique to the preparation of quarterlyNo
consolidated financial statements(Note) Adoption of simplified accounting methods or accounting methods unique to the preparation of quarterly consolidated financial
statements(3) Changes in accounting principles and procedures and the representation method relating to the preparation of quarterly consolidated financial
statements (included in Changes in Important Items, Etc. That Are Used as Basic Materials for Preparation of Quarterly Consolidated
Financial Statements)(i) Changes due to amendment of accounting standards, etc.:
Yes(ii) Changes other than (i):Yes
(Note) Any changes in accounting principles, procedures, or representation method of the accounting methods for the preparation of quarterly
consolidated financial statements included in “Changes in Important Items, Etc. That Are Used as Basic Materials for Preparation of
Quarterly Consolidated Financial Statements”(4) Number of shares outstanding (common stock)(i) Number of shares outstanding (including
treasury stock) at the end of the term:(ii) Number of shares of treasury stock at theend of the term:(iii) Average number of shares outstanding in
the term (first nine months)

First nine months ended
March 31, 2011
First nine months ended
March 31, 2011
First nine months ended
March 31, 2011

32,315,600 sharesYear ended June 2010

138,586 shares

1,795,200 sharesYear ended June 2010

5,026 shares

30,382,200 sharesFirst nine months ended
March 31, 2010

123,560 shares

Status of a quarterly review
This summary of financial statements for the first nine months is beyond the scope of the quarterly review procedure under the Financial
Instruments and Exchange Act. The quarterly review procedure for the quarterly financial statements is underway when the summary isannounced.
Note regarding proper use of results forecasts and other special comments(Note regarding forward-looking statements)
The forward-looking statements, such as results forecasts, included in this document are based on information available to the Company as of thedate of the document and certain assumptions that the Company considers reasonable. Actual results may differ significantly due to a range offactors.
The Company carried out a 200-for-1 stock split for its common shares, effective on January 1, 2011.

Accompanying Materials G Contents
1. Qualitative Information on Consolidated Operating Results, etc. for the First Nine Months ........................................ 2(1) Qualitative information on consolidated financial results ................................................................................. 2(2) Qualitative information on consolidated financial position............................................................................... 4(3) Qualitative information on consolidated earnings forecast ............................................................................... 4
2. Other Information .......................................................................................................................................................... 5(1) Important changes in subsidiaries ..................................................................................................................... 5(2) Application of simplified accounting method and specific accounting treatment............................................. 5(3) Changes in accounting principles and procedures and the representation method............................................ 5(4) Significant events regarding the premise of a going concern............................................................................ 6
3. Quarterly Consolidated Financial Statements ................................................................................................................ 7(1) Quarterly consolidated balance sheet ................................................................................................................ 7(2) Quarterly consolidated income statement ......................................................................................................... 9[First nine months of consolidated fiscal year]................................................................................................. 9[Consolidated third quarter] ........................................................................................................................... 10(3) Quarterly consolidated statement of cash flow................................................................................................ 11(4) Notes regarding the premise of a going concern ............................................................................................. 13(5) Segment information ....................................................................................................................................... 13(6) Note if there is a considerable change to shareholders’ equity........................................................................ 13

1

1. Qualitative Information on Consolidated Operating Results, etc. for the First Nine Months(1) Qualitative information on consolidated financial results
In the first nine months of the consolidated fiscal year ending June 30, 2011 (from July 1, 2010 to March 31, 2011), theJapanese economy experienced uncertainty because of economic slowdowns in the United States and Europe and astrong yen, although corporate earnings recovered moderately. However, the March 11 earthquake that struck the
Tohoku region wrought havoc across a wide area, and is having a tremendous economic impact.
The Company is able to report that it sustained no casualties or property damage in the earthquake. However, companies
shelved advertising activities and postponed product launches, and as a result, certain services that were planned to bedelivered in the third quarter were postponed or cancelled.
As net sales declined, the fixed cost burden could not be offset, and operating income fell far short of the forecast. Net
sales in the third quarter (from January 1, 2011 to March 31, 2011) rose year on year, while operating income slippedfrom a year ago.
In the first nine months, however, results rose sharply year on year, with both net sales and operating income increasing.
The main factors of the increase were strong demand from companies for research services and an improvement inearning strength, which was achieved earlier than expected with the completion of the integration with Yahoo Japan
Value Insight Corporation (hereinafter “YVI”) in all aspects, including organizations and systems, at the end of
December.
In the first nine months, Macromill recorded net sales of 9,236 million yen (an increase of 63.8% year on year),
operating income of 2,096 million yen (a rise of 29.1%), ordinary income of 2,155 million yen (up 32.9%), and net
income of 1,066 million yen (up 4.0%).
Although business confidence is uncertain in the wake of the earthquake, the Company will continue to focus on
expanding the domestic online research business. As announced in the press release on April 18, the Company launched
POPCORN, an application for smartphones, through the consolidated subsidiary M-WARP, INC. and entered the SNS
field. The Company will consolidate the domestic online research business and at the same time will seek to expand new
business domains and to develop online research overseas.
Net sales by service segment are as follows:(i)

Automatic Research Service
The automatic research service is the market research service using the Automatic Internet Research system (hereinafter“AIRs”) uniquely developed by the Company. This is the core service of the Macromill Group. In the first nine months
under review, net sales in this service segment continued to rise, but the segment was most affected by postponements
and cancellations of services due to the earthquake, because the period from the commencement of research to delivery
is very short. As a consequence, net sales increased 29.8% year on year, to 4,419 million yen. Adding net sales of 779
million yen for YVI (Note), total net sales in this service segment came to 5,198 million yen (up 52.7% year on year).
(Note) Macromill provided the services of the former YVI and the pre-existing services of Macromill separately until
the first half of this fiscal year under review, and sales of both categories are stated separately. Services that werelaunched from the third quarter were integrated into the pre-existing services of Macromill.

(ii) Tallying Service
In the tallying service, specialist staff tally data after collecting research data and prepare them as spreadsheets andgraphs tailored to research objectives. As transactions with general companies increase, needs for an integrated service
covering physical inspection, tallying, and analysis are increasing. The operation structure has been enhanced inassociation with the management integration. As a result, despite the adverse effect of a decrease in orders for automatic
research in the wake of the earthquake, net sales rose 43.5% year on year, to 510 million yen. Including net sales of 42
million yen for YVI, total net sales in this service segment rose to 553 million yen (up 55.5% year on year).
2

(iii) Analysis Service
The analysis service prepares reports after designing survey sheets and collecting research data. To provide analyticalreports in accordance with the marketing issues and research objectives of customers, Macromill has been working to
improve our capabilities to propose projects and analyze data. With an increase in transactions with general companies
that have strong needs for analytical services, orders were favorable. Meanwhile, demand from advertising agencies,
whose needs for analytical services had been weak, rose. In addition, the workforce was significantly strengthened after
the management integration, and as a result, orders from a wide range of industries were strong. Net sales increased
86.3% from a year ago, to 799 million yen. Together with net sales of 81 million yen for YVI, total net sales in thisservice segment rose to 881 million yen (up 105.3% year on year).
(iv) Qualitative Research Service (Group Interview, etc.)
The qualitative research service emphasizes quality, to probe deeply into the psychology of subjects by interviewing
them at a roundtable talk or face-to-face. Demand for qualitative research is increasing as general companies inparticular wish to identify the more diversified interests and preferences of individuals. With Macromill taking steps tostrengthen its operational system and internal facilities to meet customer needs, net sales rose 113.0% year on year, to
653 million yen. Adding net sales of 76 million yen for YVI, total net sales in this service came to 729 million yen (up137.8% year on year).
(v) Customized Research Service
The customized research service prepares and conducts tailor-made survey sheets and research data collection for moreindividualized research projects beyond the scope manageable by the AIRs. Although the expansion of the scope
manageable by the automatic research service with the enhanced function of the AIRs reduced sales in the customized
research service, requests for large surveys, which had stalled in the previous fiscal year, recovered. As a result, net sales
increased 54.2% from the first nine months of the previous fiscal year, to 693 million yen. Including net sales of 249
million yen for YVI, this service segment recorded total net sales of 942 million yen (up 109.6% year on year).
(vi) Global Research Service
The global research service provides an overseas research service to domestic companies and a market research service
to overseas companies. In the first nine months under review, demand for overseas research from global companies
continued to recover, and demand from advertising agencies, orders from which had been weak, increased. Meanwhile,
the Company has bolstered its system for receiving orders for global research. Consequently, net sales on a consolidated
basis rose 29.6% year on year, to 331 million yen. Adding net sales of 14 million yen from YVI, total net sales in thisservice segment came to 346 million yen (an increase of 35.3% year on year).
(vii) Mobile Research Service
The mobile research provides a service to collect data using mobile phones. This service is used in research specific tomobile phones, such as understanding purchasing psychology immediately after the purchase of goods. Sales were solidin certain industries. Sales resources were focused on sales of automatic research service, among other services. As aresult, net sales fell 3.1% year on year in the first nine months under review, to 67 million yen. Combined with net salesof 0.6 million yen for YVI, this service segment posted total net sales of 67 million yen (down 2.1% year on year).
(viii)

Other Services

Other services consist of the QPR (Quick Purchase Report)™, a product purchase research service, theAIRsMEMBERS (SaaS-type customer member management business), a service that provides the hybrid functions ofAIRs and the customer member management system, and the Brand Data Bank (bdb), a service provided by Brand Data
Bank, Inc. (Note). With respect to QPR™, net sales rose, thanks to an increase in the number of monitors to 10,000 in
July 2010 as well as the enhancement of the operation system and proactive sales activities. Demand for theAIRsMEMBERS and Brand Data Bank was solid, especially among general operating companies. Despite the effect of3

lost sales for the marketing system business of AIP, Inc., which was excluded from the scope of consolidation in thesecond quarter of the previous fiscal year, net sales in the first nine months under review rose 31.5% year on year, to
482 million yen. Including net sales of 34 million yen for YVI, total net sales in this service segment reached 516
million yen (up 40.9% year on year).
(Note) The Company absorbed Brand Data Bank, Inc. on April 1, 2011, to enhance the collaboration between the online
research segment and the brand data bank business.
(2) Qualitative information on consolidated financial position
Assets, liabilities and net assets at the end of the third quarter under review rose significantly from the end of theprevious fiscal year, attributable to the succession of the marketing research business of YVI through an absorption-typedemerger. Assets totaled 13,241 million yen, an increase of 3,928 million yen from the end of the previous fiscal year.
Major factors include an increase in notes and accounts receivable of 945 million yen and an increase in cash anddeposits of 547 million yen.
Liabilities amounted to 2,280 million yen, increasing 701 million yen from the end of the previous fiscal year, primarily
attributable to an increase in accounts payable-other of 356 million yen and a rise in allowance for panelists-points of
286 million yen.
Net assets were 10,961 million yen, a rise of 3,226 million yen, primarily because of an increase in capital surplus by
3,232 million yen.
Cash flows
Cash and cash equivalents (hereinafter “cash”) at the end of the first nine months under review decreased 1,274 million
yen from the end of the previous fiscal year, to 5,256 million yen. Cash flows for the first nine months under review andprimary factors behind the reported results are as follows:(Cash flows from operating activities)
Net cash provided by operating activities stood at 1,372 million yen (up 39.9% year on year).
Cash outflows, including income taxes paid of 950 million yen and a decrease in notes and accounts receivable-trade of
123 million yen, were more than offset by cash inflows, including income before income taxes and minority interests of
1,898 million yen and a decrease in allowance for panelists-points of 305 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 1,627 million yen (up 177.5% year on year).
The result is mainly attributable to purchase of property, plant and equipment of 437 million yen, purchase ofinvestment securities of 399 million yen and purchase of short-term investment securities of 350 million yen, among
other factors, which offset proceeds from collection of lease and guarantee deposits of 269 million yen, proceeds fromredemption of securities of 200 million yen, and other cash inflows.
(Cash flows from financing activities)
Net cash used in financing activities was 1,019 million yen (up 157.9% year on year).
The major factor was Purchase of treasury stock paid of 755 million yen and cash dividends paid of 526 million yen.
(3) Qualitative information on consolidated earnings forecast
Although the Company was not directly affected by the Great East Japan Earthquake that occurred on March 11, 2011,
orders from advertisement agencies, the manufacturing sector, and other customers have been delayed as companies
have voluntarily restrained from advertising activities and postponed the release of new products.
Reflecting the decrease in net sales resulted from the slowdown of these companies’ activities, the Company’s income isalso forecast to fall from the previous plan. The decline in sales is considered to be a temporary phenomenon, but therecovery of Japanese economy is likely to take time. Consequently, the full-year financial results forecast for fiscal year4

2011 has been revised downward by factoring in the influence of the earthquake in the third quarter.
Full year (from July 1, 2010 to June 30, 2011)
Net sales

OperatingincomeOrdinary
income(million yen)(million yen)(million yen)(million yen)

(yen)

Previously announced forecast (A)12,992

2,995

3,039

1,594

52.28

Revised forecast (B)12,300

2,500

2,500

1,200

39.45

Difference (B-A)

(692)

(495)

(539)

(394)

(12.83)

Net income

Net income
per share(5.3)(16.5)(17.7)(24.7)(24.5)
Percentage change (%)(Reference)
7,353
2,129
2,135
1,266
10,182.23
Results from the previous fiscal(Note)
year (fiscal year 2010)(Note) The Company had a 200-for-1 stock split, effective on January 1, 2011. Net income per share is calculated basedon the number of shares before the stock split.

2. Other Information(1) Important changes in subsidiaries
With the establishment of M-CUBE AND ASSOCIATES, INC. in January 2011, the number of subsidiaries of theCompany increased by one.
(2) Application of simplified accounting method and specific accounting treatment
Not applicable.
(3) Changes in accounting principles and procedures and the representation method
1) Application of the “Accounting Standard for Equity Method Accounting for Investments” and the “Practical Solution
on Unification of Accounting Policies Applied to Associates Accounted for Using the Equity Method.”
From the first quarter of the accounting term under review, the “Accounting Standard for Equity Method Accounting forInvestments” (ASBJ Statement No. 16, March 10, 2008) and the “Practical Solution on Unification of Accounting
Policies Applied to Associates Accounted for Using the Equity Method” (ASBJ PITF No. 24, March 10, 2008) havebeen applied. This had no effect on ordinary income or quarterly income before income taxes.
2) Application of the accounting standard for asset retirement obligations
From the first quarter of the accounting term under review, the “Accounting Standard for Asset Retirement Obligations”(ASBJ Statement No. 18, March 31, 2008) and the “Implementation Guidance on Accounting Standard For Asset
Retirement Obligations” (ASBJ Guidance No. 21, March 31, 2008) have been applied. With this application, operating
income and ordinary income each rose 822 thousand yen in the first nine months under review, while income before
income taxes and minority interests declined 23,500 thousand yen. Asset retirement obligations changed 44,162
thousand yen with the application of the accounting standard.
3) Application of “Accounting Standard for Business Combinations,” etc.
From the first quarter of the accounting term under review, the “Accounting Standard for Business Combinations”(ASBJ Statement No. 21, December 26 2008), the “Accounting Standard for Consolidated Financial Statements” (ASBJ
Statement No. 22, December 26 2008), “Partial Amendments to Accounting Standard for Research and Development
Costs” (ASBJ Statement No. 23, December 26, 2008), the “Accounting Standard for Business Divestitures” (ASBJ
Statement No. 7, December 26, 2008), the “Accounting Standard for Equity Method Accounting for Investments”(ASBJ Statement No. 16, December 26, 2008) and the “Revised Guidance on Accounting Standard for Business
Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10, December 26, 2008) havebeen applied.
4) Accounting standard for key reserves
Bonus reserve:
5The bonus reserve is recorded based on the estimated amount of bonus payments to prepare for the payment of bonuses
to employees.
(Additional information)
The above accounting standard has been adopted due to the introduction of a bonus system from the first quarter of theaccounting term under review.
(4) Significant events regarding the premise of a going concern
Not applicable63. Quarterly Consolidated Financial Statements(1) Quarterly consolidated balance sheet(Unit: thousand yen)
As of March 31, 2011
AmountAs of June 30, 2010
AmountAssetsCurrent assets
Cash and deposits

5,756,360

5,209,063

Notes and accounts receivable - trade

2,396,679

1,451,541

450,922220,000

Short-term investment securities
Work in process

9,623

3,270

Preproduction

4,873

6,264

3,035

1,490

Deferred tax assets

450,001

287,873

Other

137,082

116,716(961)(1,028)9,207,617

7,295,192

539,056

175,744

298,057

314,809

Goodwill

493,91398,721

Other

361,869

8,565

1,153,839

422,096

Investment securities

1,256,265

960,217

Other

Supplies

Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Intangible assets
SoftwareTotal intangible assets
Investments and other assets

1,086,553

461,003

Allowance for doubtful accounts(1,438)(871)

Total investments and other assets

2,341,380

1,420,349

Total noncurrent assets
Total assets

4,034,276

2,018,190

13,241,893

9,313,382

659,334

303,232

Liabilities
Current liabilities
Accounts payable - other
Income taxes payable

312,406

515,105

Allowance for panelists - points

872,448586,220

Reserve for bonuses

24,943–

Other317,947

174,505

2,187,080

1,579,063

91,525

–

Other

1,993

–

Total long-term liabilities

93,518–2,280,599

1,579,063

Total current liabilities
Long-term liabilities
Asset retirement obligations

Total liabilities

7

(Unit: thousand yen)
As of March 31, 2011
AmountAs of June 30, 2010
AmountNet assets
Shareholders' equity
Capital stock

1,597,858

1,597,858

Capital surplus

4,864,086

1,631,399

Retained earnings

5,478,472

4,959,382

Treasury stock(1,119,773)(447,796)

Total shareholders' equity

10,820,643

7,740,843

Valuation difference on available-for-sale securities(45,730)(29,004)

Total valuation and translation adjustments

Valuation and translation adjustments(45,730)(29,004)

Subscription rights to shares

36,121

22,479Minority interests

150,259–

Total net assets

10,961,293

7,734,319

13,241,893

9,313,382

Total liabilities and net assets8(2) Quarterly consolidated income statement[First nine months of consolidated fiscal year](Unit: thousand yen)
FY2010 first nine months(Nine months ended
March 31, 2010)
Amount

FY2011 first nine months(Nine months ended
March 31, 2011)
AmountNet sales

5,639,209

9,236,975

Cost of sales

2,541,457

4,656,047

Gross profit

3,097,751

4,580,928

Selling, general and administrative expenses

1,473,589

2,484,431

Operating income

1,624,161

2,096,496

Interest income

38,91942,938Dividends income

1,185

1,185

–

248

Non-operating income

Foreign exchange gains
Other

3,111

28,224

Total non-operating income

43,21572,595

Loss on transfer of accounts receivable

1,886

3,061

Equity in losses of affiliates

21,475–Non-operating expenses

Stock issuance expenses–

640

Deferred organization expenses

–

2,913

–

6,022

20,374–

Commission for purchase of treasury stock
Foreign exchange losses
Other

1,967

1,189

Total non-operating expenses

45,703

13,828

1,621,673

2,155,264

Gain on sales of subsidiaries and affiliates' stocks

2,083

–

Gain on reversal of subscription rights to shares

36,377–

Total extraordinary income

38,461–

Ordinary income
Extraordinary income

Extraordinary loss
Loss on retirement of noncurrent assets

6,061

147,970

Loss on adjustment for changes of accounting standard
for asset retirement obligations–

24,323Integration-related expenses–

84,487

Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current

6,061

256,780

1,654,073

1,898,483

678,566

742,389

Income taxes - deferred(37,880)

100,625

Total income taxes

640,686

843,015–

1,055,467

Income before minority interests
Minority interests in income loss
Net income

9(12,151)(10,740)

1,025,538

1,066,208

[Consolidated third quarter](Unit: thousand yen)
FY2010 third quarter(Three months ended
March 31, 2010)
Amount

FY2011 third quarter(Three months ended
March 31, 2011)
AmountNet sales

2,099,016

2,953,019

Cost of sales

889,447

1,512,654

Gross profit

1,209,568

1,440,364

Selling, general and administrative expenses

463,359

769,179

Operating income

746,209

671,184

12,866

16,058122

19,132

12,98935,191

550

1,175

–

2,913

Non-operating income
Interest income
Other
Total non-operating income
Non-operating expenses
Loss on transfer of accounts receivable
Deferred organization expenses

–

96

3,928

–

Commission for purchase of treasury stock

–

2,034

Other

2

469

4,482

6,688

754,716

699,687

342

1,601

Foreign exchange losses

Equity in losses of affiliates

Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on retirement of noncurrent assets

342

1,601

Income before income taxes and minority interests

Total extraordinary losses

754,374

698,085

Income taxes - current

333,970

183,932

Income taxes - deferred(17,068)

149,226

Total income taxes

316,902333,159

Income before minority interests–

364,926

Minority interests in loss–

(10,740)

437,472

375,667

Net income10(3) Quarterly consolidated statement of cash flow
(Unit: thousand yen)
FY2010 first nine months(Nine months ended
March 31, 2010)
Amount

FY2011 first nine months(Nine months ended
March 31, 2011)
Amount1,654,073

1,898,483

Depreciation and amortization

177,168

305,456

Amortization of goodwill

38,85331,649Net cash provided by (used in) operating activities
Income before income taxes and minority interests

Increase (decrease) in allowance for doubtful accounts

(293)

500

Increase (decrease) in allowance for panelists - points

80,418

4,670

Increase (decrease) in reserve for bonuses–

980

Interest and dividend income(40,104)(44,123)

Foreign exchange losses (gains)

10,449–Equity in (earnings) losses of affiliates

21,475–

Loss on retirement of noncurrent assets

6,061

147,970

Loss on adjustment for changes of accounting standard for
asset retirement obligations–

24,323Integration-related expenses–

84,487

Loss (gain) on sales of stocks of subsidiaries and affiliates(2,083)–Gain on reversal of subscription rights to shares(36,377)–

Decrease (increase) in notes and accounts receivable - trade(422,188)(123,770)

Decrease (increase) in inventories(6,344)47,203

Increase (decrease) in accounts payable - other73,7902,436

Increase (decrease) in consumption taxes payable

12,966

81,741Other, net

88,223(92,363)

Subtotal

1,656,087

2,369,646

Interest and dividend income received
Management integration-related expenses paid

34,04138,010–(84,487)

Income taxes paid

(708,424)(950,236)

Net cash provided by (used in) operating activities

981,704

1,372,932(300,000)(500,000)–

300,000

Purchase of short-term investment securities–(350,940)

Proceeds from redemption of securities–

200,000

Purchase of property, plant and equipment(34,609)(437,618)

Purchase of software(82,459)(65,173)

Purchase of investment securities(89,000)(399,402)

Proceeds from sales and redemption of investment securities

300,000–(117,026)–(100,271)––(120,348)

918

269,602

Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits

Purchase of investments in subsidiaries resulting in change
in scope of consolidation
Payments for sales of investments in subsidiaries resulting
in change in scope of consolidation
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Payments of loans receivable
Decrease (increase) in other investments
Other, net
Net cash provided by (used in) investing activities

11(164,155)––(500,000)–(24,039)(586,605)(1,627,920)

FY2010 first nine months(Nine months ended
March 31, 2010)
Amount(Unit: thousand yen)
FY2011 first nine months(Nine months ended
March 31, 2011)
AmountNet cash provided by (used in) financing activities
Payments for stock issue cost–

(1,841)

Purchase of treasury stock–(755,152)

Proceeds from sale of treasury stock
Cash dividends paid
Proceeds from stock issuance to minority shareholders–

102,423(395,474)(526,275)–

161,000(395,474)(1,019,846)(10,482)–

Net increase (decrease) in cash and cash equivalents(10,858)(1,274,833)

Cash and cash equivalents at beginning of period

2,842,041

4,909,063–

1,622,131

2,831,182

5,256,360

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Increase (decrease) in cash and cash equivalents resulting from
integration of absorption-type split
Cash and cash equivalents at end of period12(4) Notes regarding the premise of a going concern
Not applicable(5) Segment information
Overview of reported segments
The major business of the Company and its consolidated subsidiaries is online research using AIRs. Its economic
characteristics and markets where the services are sold are almost similar. Consequently, the segments reported by theCompany are limited solely to the online research business segment. As a result, its statement is omitted.
(Additional information)
From the first quarter of the accounting term under review, the “Accounting Standard for Disclosures about Segments ofan Enterprise and Related Information” (ASBJ Statement No. 17, on March 27, 2009) and “Guidance on AccountingStandard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ Guidance No. 20, March 21,2008) have been applied.
(6) Note if there is a considerable change to shareholders’ equity
The Company acquired the marketing research business of Yahoo Japan Value Insight Corporation on August 1, 2010.
With the acquisition, legal capital surplus increased by 3,207,384 thousand yen.
In relation to the acquisition, in the first quarter of the consolidated fiscal year ending June 30, 2011, the Company
purchased treasury stock for 234,462 thousand yen on August 20, 2010 in response to share purchase claim, andsubsequently disposed a part of the treasury stock for 70,914 thousand yen on September 2, 2010.
Additionally, based on the resolution of the meeting of the Board of Directors held on November 12, 2010, theCompany acquired its own stock for 354,582 thousand yen in the second quarter, for 160,084 thousand yen in the third
quarter of the consolidated fiscal year ending June 30, 2011.
Furthermore, the Company disposed treasury stock of 6,237 thousand yen due to exercise of share options during thethird quarter of the consolidated fiscal year ending June 30, 2011.
As a result, legal capital surplus amounted to 4,838,783 thousand yen and treasury stock to 1,119,773 thousand yen at
the end of the third quarter under review.

13