Member of the Financial Accounting Standards Foundation

Summary of Financial Statements for the Year Ended June 30, 2011
August 3, 2011
Listed Company:
MACROMILL, INC.
Stock Exchange:
Tokyo Stock Exchange
Code Number:
3730
URL:
http://www.macromill.com/
Representative:
Tetsuya Sugimoto, Chairman and President
Contact:
Yasuhiro Kihara, Senior Executive Officer and Chief Financial OfficerTel.:+81-3-6716-0700
Scheduled date of ordinary general meeting of shareholdersSeptember 28, 2011
Scheduled reporting date of annual security report
September 29, 2011
Planned date of dividend payments:
September 29, 2011
(Figures are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Year Ended June 30, 2011 (July 1, 2010 to June 30, 2011)(1) Consolidated Results of Operations for the Year Ended June 30, 2011
(The percentages are year-on-year changes.)

Net sales

Operating income

Million yen%

Ordinary income

Million yen%

Net income

Million yen%

Million yen%

Year Ended June 30, 201112,210

66.1

2,604

22.3

2,522

18.1

1,171

(7.5)

Year Ended June 30, 2010

7,353

(5.2)

2,129

22.0

2,135

21.8

1,266

34.5

1,118
1,337

million yen
million yen(Note)Comprehensive income

Year Ended June 30, 2011
Year Ended June 30, 2010

Diluted net income
per share

Net income per share
Yen

Year Ended June 30, 2011

38.50

Year Ended June 30, 2010

10,182.23(Reference) Equity in (earnings) losses of affiliates(Note)(16.4)%- %Ratio of ordinary
income to total assets

Return on equity

Yen

%

38.14

12.6

10,126.47

19.2

Year Ended June 30, 2011
Year Ended June 30, 2010

(157)
(21)

Ratio of operating
income to net sales

%

%

21.7

21.3

25.8

29.0

million yen
million yen

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 numberof shares after the stock split.

(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Year Ended June 30, 2011
Year Ended June 30, 2010
(Reference) Shareholders’ equity(Note)

Shareholders' equity ratio

Million yen

13,931

11,161

9,313

7,734

Year Ended June 30, 2011
Year Ended June 30, 2010

Net assets per share%

10,893
7,711

Yen

78.2

356.6882.8

57,740.64

million yen
million yen

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 numberof shares after the stock split.

(3) Consolidated Cash Flow Statements
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Year-end cash and cash
equivalents

Million yen

Million yen

Million yen

Million yen

Year Ended June 30, 2011

2,228

(1,503)(1,012)

6,243

Year Ended June 30, 2010

1,774

(621)

924

4,909

2. Dividends
Dividend per share
Record date

End of 1stquarterYen

End of 2ndquarter
Yen

Year ended June 30,
2010–

1,500.00

Year ended June 30,
2011–

2,000.00

Year ending June 30,
2012 (forecast)

–

10.00

(Note)End of 3rdquarterYear end

Yen

–

–

Yen

Total amount ofannual cash
dividends

AnnualYen

Dividend payout
ratio

Dividend to net
assets(Consolidated)(Consolidated)

Million yen%%

1,800.00

3,300.00

425

32.4

6.5

9.00

2,009.00

581

49.4

5.9

11.00

21.00

–

42.6

–

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 numberof shares after the stock split.

13. Forecast of Consolidated Financial Results for the Year Ending June 2012 (July 1, 2011 to June 30, 2012)(The percentages are year-on-year changes.)

Net sales

Operating income

Million yen(Note)(Note)%

Ordinary income

Million yen%

Net income

Million yen%

Net income per share

Million yen%

Yen

First half

7,000

11.4

1,455

2.1

1,455

0.0

730

5.7

23.99

Full year

14,200

16.3

2,900

11.4

2,900

15.0

1,500

28.1

49.30

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 numberof shares after the stock split.
The net income per share, if calculated on pre-stock-split basis, would be 9,860 yen per share.

4. Other(1) Important changes in subsidiaries during the fiscal year under review (changes in specific subsidiaries accompanied by achange in the scope of consolidation):New:
1 (Name of company: M-Cube and Associates, Inc.)
Exception:–(Note) Any changes in specific subsidiaries accompanied by a change in the scope of consolidation during the fiscal year under review

Yes(2) Application of simplified accounting method and accounting methods unique to the preparation of quarterly consolidated financial statements
No(Note) Adoption of simplified accounting methods or accounting methods unique to the preparation of consolidated financial statements.
(3) Changes in accounting principles and procedures and the representation method relating to the preparation of consolidated financial statements(included in Changes in Important Items, Etc. That Are Used as Basic Materials for Preparation of Consolidated Financial Statements)(i) Changes due to amendment of accounting standards, etc.:
Yes(ii) Changes other than (i):No
(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 ofConsolidated 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 sharesYear ended June 2011

32,315,600 sharesYear ended June 2010

138,586 sharesYear ended June 2011

1,774,200 sharesYear ended June 2010

5,026 sharesYear ended June 2011

30,420,600 sharesYear ended June 2010

124,382 shares(Reference)Non-consolidated Results
1. Non-consolidated Financial Results for the Year Ended June 30, 2011 (July 1, 2010 to June 30, 2011)(1) Non-consolidated Results of Operations for the Year Ended June 30, 2011
(The percentages are year-on-year changes.)

Net sales

Operating income

Million yen%

Million yen

Ordinary income%

Million yen

Net income%

Million yen%

Year Ended June 30, 201112,212

70.3

2,858

32.6

2,912

32.1

1,424

22.0

Year Ended June 30, 2010

7,171

4.4

2,155

22.6

2,205

21.8

1,167

10.8

Net income per share

Diluted net income
per share

Yen

Yen

Year Ended June 30, 2011

46.84

46.41

Year Ended June 30, 2010

9390.00

9338.58[Notes]1. This earnings release report is not subject to audit procedures based on the Financial Instruments and Exchange Act.
At the time of disclosure of this report, the audit procedures for the financial statements are in progress.
2. The forward-looking statements, such as results forecasts, included in this document are based on information available to the Company as of the dateof the document and certain assumptions that the Company considers reasonable. Actual results may differ significantly due to a range of factors.
The Company carried out a 200-for-1 stock split for its common shares, effective on January 1, 2011.

2

Accompanying Materials ― Contents
1. Results of Operations.............................................................................................................................................................2(1) Analysis on results of operations .............................................................................................................................2(2) Analysis on financial position..................................................................................................................................3
2. Management Policy................................................................................................................................................................5(1) Macromill’s Basic Management policy...................................................................................................................5
3. Consolidated Financial Statements .......................................................................................................................................6(1) Consolidated balance sheet ......................................................................................................................................6(2) Consolidated statements of income and consolidated statements of comprehensive income .............................8
Consolidated statements of income.........................................................................................................................8
Consolidated statements of comprehensive income ..............................................................................................9(3) Consolidated statements of changes in net assets ................................................................................................ 10(4) Consolidated statement of cash flow .................................................................................................................... 12(5) Notes regarding the premise of a going concern.................................................................................................. 14(6) Significant changes to the basis of presenting consolidated financial statements ............................................. 14(7) Matters to Note
(Consolidated statements of comprehensive income) ........................................................................................ 15(Segment information, etc.) .................................................................................................................................. 16(Per share information) ......................................................................................................................................... 18(Significant subsequent events)............................................................................................................................ 19
4. Others ................................................................................................................................................................................. 22(8) Change of Board......................................................................................................................................................22

1

1. Results of Operations(1) Analysis on results of operations
In the consolidated fiscal year under review (from July 1, 2010 to June 30, 2011), the Japanese economy was on amodest recovery path, reflecting recovery in corporate earnings due to growth in overseas demand, especially inemerging market economies. However, on March 11, 2011 the Great East Japan Earthquake struck, blocking supply
chains, creating power shortages, and causing steep declines in production activity and personal consumption. Despite
emerging signs of recovery that will lead to reconstruction and revival, the outlook remains uncertain, with concerns
over rising oil prices and summer electricity shortages.
According to the 36 th Marketing Research Business Status Survey published by the Japan Marketing Research
Association, Japan’s marketing research industry grew 1.6% year on year to 169.9 billion yen in fiscal 2010 (April 2010
to March 2011). The market showed only slight year on year growth because, just when the industry showed signs ofrecovering from the fallout of the collapse of Lehman Brothers, the Great East Japan Earthquake struck, affecting
services ordered at the end of the fiscal year in March. Meanwhile, the online research market, which is the Company’s
key market, grew 9.1% to 43 billion yen, indicating a shift away from traditional research methods to online research.
In the consolidated fiscal year under review, the Macromill Group consolidated the domestic online research businessthrough management integration and other initiatives, and, at the same time, sought to develop online research overseas
and expand new business domains.
In domestic online research business, Macromill took over the marketing research business of Yahoo Japan Value
Insight Corporation (YVI) by absorption-type demerger on August 1, 2010, and completed management integration in
all aspects, including organizations and systems, at the end of December 2010. Although operations were affected
immediately after the Great East Japan due to the cancellation or postponement of services that had been ordered,
totalling loss of 650 million yen, Macromill recorded significant year-on-year sales growth due to sustained recovery indemand, especially among general operating companies, following the earthquake, in addition to the smooth progress ofmanagement integration and strong demand for research services in the first half.
Overseas, Macromill prepared to expand into other parts of Asia after Korea, establishing MACROMILL China, INC. in
China, where the online research market is expected to grow. The Company also expanded beyond the research business
into new business domains, with consolidated subsidiary M-WARP, INC. starting to provide applications for
smartphones.
As a result of the above initiatives, in the consolidated fiscal year under review, Macromill recorded net sales of 12,210
million yen (an increase of 66.1 % year on year), operating income of 2,604 million yen (a rise of 22.3%), ordinary
income of 2,522 million yen (up 18.1%), and net income of 1,171 million yen (a fall of 7.5%).
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. Although the segment
was most affected by cancellations of services due to the earthquake because the period from the commencement ofresearch to delivery is very short、demand remained solid across a wide range of industries throughout the consolidated
fiscal year under review. As a consequence, total net sales in this service segment came to 6,802 million yen (up 54.4%
year on year).
(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 enhancement of the operation structure inassociation with the management integration also contributed, and total net sales in this service segment amounted to
744 million yen (up 53.7% 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. Total net sales in thisservice segment rose to 1,174 million yen (up 106.8% 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. Qualitative services and services provided alongside qualitative services are
increasing as general operating companies in particular wish to identify the more diversified interests and preferences ofindividuals. With Macromill taking steps to strengthen its operational systems and internal facilities, such as groupinterview rooms, to meet customer needs, total net sales in this service segment came to 995 million yen (up 145.3%
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, thisservice segment recorded total net sales of 1,220 million yen (up 105.3% 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. Japanese firms continued to show a tendency for overseas expansion, and demand remained
strong, especially among manufacturers of consumer goods. At the same time, 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, total net sales in this service segment amounted to 427 million yen (a rise of 47.6%).
(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. Despite steadyorders, especially from general operating companies, sales resources were focused on sales of automatic researchservices, among other services. As a result, total net sales in this service segment were 82 million yen (a decline of5.7%).
(viii) Other Services
Other services consist of the QPR (Quick Service Report)TM, a product purchase research service, the AIRsMEMBERS(SaaS-type customer member management business), a service that provides the hybrid functions of AIRs and thecustomer management system, and the Brand Data Bank (bdb). With respect to QPRTM, net sales rose, thanks to anincrease in the number of monitors to 29,000 (Note) in May 2011 as well as the enhancement of the operation systemand proactive sales activities. Demand for AIRsMEMBERS and Brand Data Bank (bdb) was also solid, especiallyamong general operating companies. Despite the effect of lost sales for the marketing system business of AIP, Inc.,
which was excluded from the scope of consolidation in the second quarter of the previous fiscal year, total net sales ofother services reached 764 million yen (up 47.0% year on year).
(Note) The number of QPR monitors expanded to 30,000 throughout Japan in July 2011.
Outlook for the fiscal year ending June 30, 2012
Production activity and personal consumption are showing signs of recovery after falling in the wake of the Great East
Japan Earthquake. However, it will take time for them to regain their pre-earthquake levels. Consequently, Japan’s
marketing research industry is expected to stay the same size as in the previous year. However, the online research
3market is expected to continue its modest upward trend, reflecting the ongoing shift in demand away from conventional
research methods to online research. Meanwhile, demand for research services overseas is expected to growsignificantly in the future, bolstered by the economic expansion of Asian countries and the overseas expansion ofJapanese firms.
In such an environment, the Macromill Group will further expand its operations by focusing on “Domestic Marketing
Research Business,” “Global Expansion Centered on Asia, and “Creation of New Businesses,” as set forth in the”2012 –2014 Macromill, Inc. Medium-Term Management Plan” announced August 3, 2011.
In the fiscal year ending June 20, 2012, Macromill forecasts consolidated net sales of 14,200 million yen (up 16.3%),
consolidated operating income of 2,900 million yen (an increase of 11.4%), consolidated ordinary income of 2,900
million yen (rising 15.0%) and consolidated net income of 1,500 million yen ( up 28.1%).
(2) Analysis on financial position(i) Assets, Liabilities and Net Assets
Assets, liabilities and net assets at the end of the fiscal year under review rose significantly from the end of the previous
fiscal year, attributable to the takeover of the marketing research business of YVI through an absorption-type demerger.
Assets totalled 13,931 million yen, an increase of 4,617 million yen from the end of the previous fiscal year. Major
factors include an increase in cash and deposits of 1,534 million yen and an increase in notes and accounts receivable of907 million.
Liabilities amounted to 2,769 million yen, increasing 1,190 million yen from the end of the previous fiscal year,
primarily attributable to an increase in accounts payable-other of 444 million yen and a rise in allowance forpanelists-points of 262 million yen.
Net assets were 11,161 million yen, a rise of 3,427 million yen, primarily because of an increase in capital surplus by
3,233 million yen.
(ii) Cash flows
Cash and cash equivalents (hereinafter “cash”) at the end of the fiscal year under review increased 1,334 million yen
from the end of the previous fiscal year, to 6,243 million yen. Cash flows for the fiscal year under review and primaryfactors behind the reported results are as follows:(Cash flows from operating activities)
Net cash provided by operating activities stood at 2,228 million yen (up 25.6% year on year).
Cash outflows, including income taxes paid of 965 million yen and a decrease in notes and accounts receivable-trade of
91 million yen, were more than offset by cash inflows, including income before income taxes and minority interests of
2,273 million yen and depreciation and amortization of 419 million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 1,503 million yen. (up 142.0% year on year)
The result is mainly attributable to purchase of property, plant and equipment of 468 million yen, and purchase ofinvestment securities of 399 million yen, which offset proceeds from redemption of securities of 450 million yen.
(Cash flows from financing activities)
Net cash used in financing activities was 1,012 million yen (compared with net cash provided by financing activities of
924 million yen in the same period of the previous year). The result is mainly attributable to the purchase of treasury
stock of 755 million yen and cash dividends paid of 547 million yen.

4

(Reference) Cash Flow-Related Indicators

Shareholders’ equity ratio (%)
Shareholders’ equity ratio on market
value basis (%)
Ratio of interest-bearing liabilities tocash flow (%)
Interest coverage ratio (x)Previous consolidated fiscal year
(from July 1, 2009 to June 30, 2010)
Amount82.8

Current consolidated fiscal year
(from July 1, 2010 to June 30, 2011)
Amount
78.2

197.2

192.2

–

–

–

–

Shareholders’ equity ratio = shareholders’ equity/total assets
Shareholders’ equity ratio on market value basis = total market value of shares/total assets
Ratio of interest-bearing liabilities to cash flow = interest bearing liabilities/cash flow
Interest coverage ratio = cash flow/interest paid
Note 1: All figures are calculated based on consolidated financial values.
Note 2: The total market value of shares is calculated based on the number of issued shares minus treasury stock.
Note 3: Cash flow is represented by operating cash flow.
Note 4: Interest-bearing liabilities include all liabilities accounted for on the consolidated balance sheet for which interest is paid.

2. Management Policy(1) Macromill’s Basic Management policy“Management Policy” has been omitted, as there were no significant changes from the matters disclosed in the“Financial Highlights” for the fiscal year ended June 30, 2010 (released on August 13, 2010).
The aforementioned information is available on the following Web sites.
Macromill Web site:
http://www.macromill.com/ir/
Tokyo Stock Exchange Group, Inc. Web site(listed company search page):
http://www/tse.or.jp/listing/compsearch/index.html

5

4. Consolidated Financial Statements(1) Consolidated balance sheet
As of June 30, 2010
Amount(Unit: thousand yen)
As of June 30, 2011
AmountAssetsCurrent assets
Cash and deposits

5,209,063

6,743,362

Notes and accounts receivable - trade

1,451,541

2,359,373

Short-term investment securities

220,000

200,081Work in process

3,270

10,496Preproduction

6,264

4,793

Supplies

1,490

2,019

Deferred tax assets

287,873

518,001

Other

116,716

162,972

Allowance for doubtful accounts(1,028)(942)

7,295,192

10,000,157

Buildings and structures, net

59,287

267,517

Tools, furniture and fixtures, net

110,683

253,551445

445

Total current assets
Noncurrent assets
Property, plant and equipment

Land
Construction in progress

5,328

533

175,744522,047

Software314,809259,352

Goodwill

98,721

482,770

Total property, plant and equipment
Intangible assets

Other

8,565

433,634

422,096

1,175,757

Investment securities

960,217

1,195,877

Long-term loans receivable

164,155

82,077

Other

Total intangible assets
Investments and other assets

296,848956,157

Allowance for doubtful accounts

(871)

(871)

Total investments and other assets

1,420,349

2,233,240

Total noncurrent assets
Total assets

6

2,018,190

3,931,046

9,313,382

13,931,204

As of June 30, 2010
Amount(Unit: thousand yen)
As of June 30, 2011
AmountLiabilities
Current liabilities
Accounts payable - other

303,232

747,254

Income taxes payable

515,105

658,166

Reserve for bonuses
Allowance for panelists - points
Other

–

45,026586,220

848,436

174,505369,321

1,579,063

2,668,205

Asset retirement obligations–

99,454

Other

–

2,018

Total current liabilities
Long-term liabilities

Total long-term liabilities–

101,472

1,579,063

2,769,678

Capital stock

1,597,858

1,597,858

Capital surplus

1,631,399

4,865,040

Retained earnings

4,959,382

5,583,316

Total liabilities
Net assets
Shareholders' equity

Treasury stock(447,796)(1,106,674)

Total shareholders' equity

7,740,843

10,939,539(29,004)(43,785)–(2,197)(29,004)(45,982)

22,47940,127–

227,841

7,734,319

11,161,526

9,313,382

13,931,204

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total of accumulated other comprehensive income
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

7

(2) Consolidated statements of income and consolidated statements of comprehensive income(Consolidated statements of income)Net sales(Unit: thousand yen)Previous consolidated fiscal year
Current consolidated fiscal year
(from July 1, 2009 to June 30, 2010) (from July 1, 2010 to June 30, 2011)
AmountAmount
7,353,423
12,210,392

Cost of sales

3,285,862

6,183,963

Gross profit

4,067,561

6,026,429

Selling, general and administrative expenses

1,938,165

3,422,309

Operating income

2,129,395

2,604,119Interest income

50,99350,707

Dividends income

3,160

3,160

Non-operating income

Foreign exchange gains

–

2,267

Other

4,311

36,276

Total non-operating income

58,464

92,411

Loss on transfer of accounts receivable

2,387

3,785

Foreign exchange losses

20,374–Equity in losses of affiliates

21,475

157,237

Non-operating expenses

Deferred organization expenses
Stock issuance cost
Commission for purchase of treasury stock

–

2,913

5,874

640

–

6,022

Other

1,971

3,375

Total non-operating expenses

52,082

173,974

2,135,778

2,522,556

Gain on sales of subsidiaries and affiliates' stocks

2,083

9,957

Gain on reversal of subscription rights to shares

36,377–

Total extraordinary income

38,461

9,957

Loss on retirement of noncurrent assets

7,003

150,510

Loss on valuation of investment securities
Loss on adjustment for changes of accounting
standard for asset retirement obligations
Integration-related expenses

97,533––24,323–84,487

Total extraordinary losses

104,537

259,3212,069,702

2,273,192

895,205

1,092,742

Ordinary income
Extraordinary income

Extraordinary loss

Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred(79,836)

44,856

Total income taxes

815,368

1,137,598–

1,135,594

Income before minority interests
Minority interests in income (loss)
Net income

8(12,151)(35,457)

1,266,484

1,171,052

(Consolidated statements of comprehensive income)

Income before minority interests(Unit: thousand yen)Previous consolidated fiscal year
Current consolidated fiscal year
(from July 1, 2009 to June 30, 2010) (from July 1, 2010 to June 30, 2011)
AmountAmount–1,135,594

Other comprehensive income
Valuation difference on available-for-sale securities–

Foreign currency translation adjustment–(2,441)

Total other comprehensive income–(17,222)–

1,118,371–

1,154,073–(35,701)

Comprehensive income(14,781)(Comprehensive income attributable to)Comprehensive income attributable to owners of theparentComprehensive income attributable to minority interests9(3) Consolidated statements of changes in net assets
Previous consolidated fiscal year
(from July 1, 2009
to June 30, 2010)
Amount(Unit: thousand yen)
Current consolidated fiscal year
(from July 1, 2010
to June 30, 2011)
AmountShareholders' equity
Capital stock
Balance at the end of previous period

930,358

1,597,858

667,500–

Changes of items during the period
Issuance of new shares
Total changes of items during the period
Balance at the end of current period

667,500–

1,597,858

1,597,858

963,899

1,631,399

Capital surplus
Balance at the end of previous period
Changes of items during the period
Issuance of new shares
Increase by corporate division
Disposal of treasury stock

667,500––

3,207,384–

26,256

667,500

3,233,640

1,631,399

4,865,040

4,097,676

4,959,382

Dividends from surplus(407,748)

Net income

1,266,484(547,118)
1,171,052

2,968

–

861,705

623,934

4,959,382

5,583,316(447,796)(447,796)

Purchase of treasury stock–(749,129)

Disposal of treasury stock–

90,250Total changes of items during the period–(658,878)(447,796)(1,106,674)

5,544,138

7,740,843

1,335,000–

Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the end of previous period
Changes of items during the period

Change of scope of consolidation
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the end of previous period
Changes of items during the period

Balance at the end of current period
Total shareholders' equity
Balance at the end of previous period
Changes of items during the period
Issuance of new shares
Increase by corporate division–

3,207,384

Dividends from surplus(407,748)(547,118)

Net income

1,266,484–

1,171,052(749,129)

Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Total changes of items during the period
Balance at the end of current period

10–

116,507

2,968–

2,196,705

3,198,696

7,740,843

10,939,539

Previous consolidated fiscal year
(from July 1, 2009
to June 30, 2010)
Amount(Unit: thousand yen)
Current consolidated fiscal year
(from July 1, 2010
to June 30, 2011)
AmountAccumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the end of previous period(70,163)(29,004)

Net changes of items other than shareholders' equity

41,158(14,781)

Total changes of items during the period

41,158(14,781)(29,004)(43,785)(26,426)–

Net changes of items other than shareholders' equity

26,426(2,197)

Total changes of items during the period

26,426(2,197)–(2,197)(96,589)(29,004)

Net changes of items other than shareholders' equity

67,585(16,978)

Total changes of items during the period

67,585(16,978)(29,004)(45,982)

36,37722,479Net changes of items other than shareholders' equity(13,898)

17,648

Total changes of items during the period(13,898)

17,64822,47940,127425,840–

Net changes of items other than shareholders' equity(425,840)

227,841

Total changes of items during the period(425,840)

227,841–

227,841

5,909,767

7,734,319

Changes of items during the period

Balance at the end of current period
Foreign currency translation adjustment
Balance at the end of previous period
Changes of items during the period

Balance at the end of current period
Total of accumulated other comprehensive income
Balance at the end of previous period
Changes of items during the period

Balance at the end of current period
Subscription rights to shares
Balance at the end of previous period
Changes of items during the period

Balance at the end of current period
Minority interests
Balance at the end of previous period
Changes of items during the period

Balance at the end of current period
Total net assets
Balance at the end of previous period
Changes of items during the period
Issuance of new shares
Increase by corporate division

1,335,000––

3,207,384

Dividends from surplus(407,748)(547,118)

Net income

1,266,484

1,171,052

Purchase of treasury stock–(749,129)

Disposal of treasury stock–

116,507

Change of scope of consolidation

2,968

–

Net changes of items other than shareholders' equity(372,154)

228,510

Total changes of items during the period

1,824,551

3,427,206

7,734,319

11,161,526

Balance at the end of current period11(4) Consolidated statement of cash flow
Previous consolidated fiscal year
(from July 1, 2009
to June 30, 2010)
Amount(Unit: thousand yen)
Current consolidated fiscal year
(from July 1, 2010
to June 30, 2011)
AmountNet cash provided by (used in) operating activities
Income before income taxes and minority interests

2,069,702

2,273,192

Depreciation and amortization

239,932

419,177

Amortization of goodwill

44,66042,792

Increase (decrease) in allowance for doubtful accounts

(623)

(85)

Increase (decrease) in allowance for panelists - points

67,038(19,341)－

21,063

Interest and dividend income(54,153)(53,867)

Foreign exchange losses (gains)

10,449(1,759)Equity in (earnings) losses of affiliates

21,475

157,237

Loss on retirement of noncurrent assets

7,003

150,510－

24,323

Increase (decrease) in reserve for bonuses

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

84,487

Loss (gain) on sales of stocks of subsidiaries and affiliates(2,083)(9,957)

Gain on reversal of subscription rights to shares(36,377)－

Loss (gain) on valuation of investment securities

97,533－

Decrease (increase) in notes and accounts receivable - trade(94,940)(91,403)

Integration-related expenses

Decrease (increase) in inventories(6,507)47,425

Increase (decrease) in accounts payable - other(10,634)

104,439

Increase (decrease) in consumption taxes payable

15,652

114,891

Other, net

75,292(30,216)

Subtotal

2,443,421

3,232,910

48,07745,245－(84,487)

Interest and dividend income received
Management integration-related expenses paid
Income taxes paid

(716,754)(965,095)

Net cash provided by (used in) operating activities

1,774,743

2,228,573

Net cash provided by (used in) investing activities
Payments into time deposits(300,000)(500,000)

Proceeds from withdrawal of time deposits－

300,000

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

Proceeds from redemption of securities－

450,500

Purchase of property, plant and equipment(44,837)(468,307)

Purchase of software(105,857)(156,888)

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

Proceeds from sales and redemption of investment securities

300,000－

6,838

272,294－(171,056)(117,026)－(100,271)－－

97,500

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

12(164,155)－－(500,000)(7,050)(77,255)(621,360)(1,503,555)

Previous consolidated fiscal year
(from July 1, 2009
to June 30, 2010)
Amount(Unit: thousand yen)
Current consolidated fiscal year
(from July 1, 2010
to June 30, 2011)
AmountNet cash provided by (used in) financing activities
Cash dividends paid

(406,206)(547,828)

Proceeds from issuance of common stock

1,330,327－

Payments for issuance of common stock－(1,841)

Purchase of treasury stock－(755,152)

Proceeds from sale of treasury stock－

116,409－924,121

176,000(1,012,413)

Net increase (decrease) in cash and cash equivalents(10,482)
2,067,021(437)(287,832)

Cash and cash equivalents at beginning of period

2,842,041

4,909,063－

1,622,131

4,909,063

6,243,362

Proceeds from stock issuance to minority shareholders
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 period13(5) Notes regarding the premise of a going concern
Not applicable(6) Significant changes to the basis of presenting consolidated financial statements
Previous consolidated fiscal year
Current consolidated fiscal year
(from July 1, 2009 to June 30, 2010)(from July 1, 2010 to June 30, 2011)
AmountAmount——————(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”
Effective the fiscal year under review, the Company has
adopted the “Accounting Standard for Equity Method of
Accounting for Investments” (ASBJ Statement No. 16 issued
on March 10, 2008) and “Practical Solution on Unificationof Accounting Policies Applied to Associates Accounted for
Using the Equity Method” (ASBJ Practical Issues Task
Force (PITF) No. 24 issued on March 10, 2008). Thischange had no effect on ordinary income or income before
income taxes and minority interests.
(2)Application of Accounting Standard for Asset Retirement
Obligations
Effective the fiscal year under review, the Company has
adopted the “Accounting Standard For Asset Retirement
Obligations” (ASBJ Statement No. 18 of March 31, 2008)
and the “Guidance on Accounting Standard for Asset
Retirement Obligations” (ASBJ Guidance No. 21 of March
31, 2008).
The effect of this change was to decrease operating income
and ordinary income each by 2,635 thousand yen, andincome before income taxes and minority interests by 26,958
thousand yen.
(3)Application of Accounting Standard for Business
Combinations
Effective the fiscal year under review, the Company has
adopted the “Accounting Standard for Business
Combinations” (ASBJ Statement No. 21 of December 26,2008), the “Accounting Standard for Consolidated Financial
Statements” (ASBJ Statement No. 22 of December 26,2008), the “Partial Revision of Accounting Standard for
Research and Development Costs” (ASBJ Statement No. 23
of December 26, 2008), the “Accounting Standard forBusiness Divestitures” (ASBJ Statement No. 7 of December
26, 2008), the “Accounting Standard for Equity Method
Accounting for Investments” (ASBJ Statement No. 16 ofDecember 26, 2008), and the “Revised Guidance on
Accounting Standard for Business Combinations andAccounting Standard for Business Divestitures” (ASBJ
Guideline No. 10 of December 26, 2008).
(4) Accounting Standard for Key Reserves
Bonus reserve
The bonus reserve is recorded based on the estimatedamount of bonus payments to prepare for the payment ofbonuses to employees.
(Additional Information) The above accounting standard has
been adopted due to the introduction of a bonus system fromthe fiscal year under review.

14

Matters to Note
(Consolidated statements of comprehensive income)Current consolidated fiscal year (from July 1, 2010 to June 30, 2011)
1. Comprehensive income in the last consolidated fiscal year before the consolidated fiscal year under review
Comprehensive income attributable to owners of the parent
1,334,070 thousand yen
Comprehensive income attributable to minority interests
3,372 thousand yen
Total
1,337,442 thousand yen
2. Other comprehensive income in the last consolidated fiscal year before the consolidated fiscal year under review
Valuation difference on available-for-sale securities
41,158 thousand yen
Foreign currency translation adjustment
35,612 thousand yen
Share of other comprehensive income of associates accounted for using equity method
6,337 thousand yen
Total
83,108 thousand yen

15

(Segment information, etc.)
a. Segment information by types of business
Previous consolidated fiscal year (from July 1, 2009 to June 30, 2010)
Segment information by types of business is omitted, since the sales, operating income and assets of the online researchbusiness account for more than 90% of the total sales, operating income and assets for all segments.
b. Geographic segments
Previous consolidated fiscal year (from July 1, 2009 to June 30, 2010)
Information on geographic segments is omitted, since Japanese sales and assets account for more than 90% of the total
sales and assets for all segments.
c. Overseas sales
Previous consolidated fiscal year (from July 1, 2009 to June 30, 2010)
Information on overseas sales is omitted, since overseas sales account for less than 10% of the total consolidated sales ineach year.
d. Segment information
Current consolidated fiscal year (from July 1, 2010 to June 30, 2011)
The major business of the Company and its consolidated subsidiaries is online research using the AIRs online researchsystem. Its economic characteristics and markets where the services are sold are almost similar. Consequently, thesegments reported by the Company are limited solely to the online research business segment. Accordingly, segment
information is omitted,

16

e. Related information
Current consolidated fiscal year (from July 1, 2010 to June 30, 2011)
1. Information by product and service(Unit: thousand yen)
Automatic
Research

Tallying

Sales of external
6,802,933
customers

744,386

Analysis

Qualitative Customized
ResearchResearch

GlobalResearch

MobileResearch

Other

Total

1,174,657

995,667

427,586

82,695

761,765

12,210,392

1,220,700

2. Information by region(1) Sales
Sales by region are omitted, since sales to external customers in Japan account for more than 90% of sales stated in the
consolidated statement of income.
(2) Property, plant and equipment
Property, plant and equipment by region is omitted, since the amount of property, plant and equipment located in Japanaccounts for more than 90% of the amount of property, plant and equipment stated in the consolidated statement ofincome.
3. Information by major customer
Sales to specific customers are omitted because all such sales account for less than 10% of the sales stated in the
consolidated statement of income.
f. Information on loss on impairment of fixed assets by reportable segment
Current consolidated fiscal year (from July 1, 2010 to June 30, 2011)
Not applicableg. Information on amortization of goodwill and unamortized balance by reportable segment
Current consolidated fiscal year (from July 1, 2010 to June 30, 2011)
Information on amortization of goodwill and unamortized balance by reportable segmentis omitted, since the Company
only has one reportable segment.
h. Information on gains on negative goodwill by reportable segment
Current consolidated fiscal year (from July 1, 2010 to June 30, 2011)
Not applicable17(Per share information)
Previous consolidated fiscal year
(from July 1, 2009 to June 30, 2010)
AmountNet assets per share
57,740.64 yen
Basic net income per share
10,182.23 yen
Diluted net income per share
10,126.47 yen

Current consolidated fiscal year
(from July 1, 2010 to June 30, 2011)
AmountNet assets per share
356.68 yen
Basic net income per share
38.50 yen
Diluted net income per share
38.14 yen
The Company carried out a 200 for 1 stock split, effective
January 1, 2001.
Per share information for the previous consolidated fiscal
year calculated on the assumption that the stock split took
place at the beginning of the previous fiscal year is asfollows.
Net assets per share
288.70 yen
Basic net income per share
50.91 yen
Diluted net income per share
50.63 yen

Note: Basis for calculation of net income per share and diluted net income per share
Previous consolidated fiscal year
Current consolidated fiscal year
(from July 1, 2009 to June 30, 2010)(from July 1, 2010 to June 30, 2011)
AmountAmountBasic net income per share
Net income (thousand yen)
1,266,484
1,171,052
Amount not attributed to common－－
stock (thousand yen)
Net income on common stock
1,266,484
1,171,052(thousand yen)
Average number of common stock
124,382
30,417,800(shares)
Diluted net income per share
Net income adjustments
Number of common stock increased(shares)(share options)

－

－

685

286,800(685)
Two types of shares options( Number of share options
806 units
Common stock
1,244 shares)
Stock options (438 units) granted inaccordance with a resolution of theordinary general meeting ofshareholders held on September 29,
2004 were acquired and cancelled
Summary of latent shares not included without consideration on July 31, 2009.
in the calculation of diluted net income Stock options (368 units) granted inper share due to lack of dilution effect accordance with a resolution of theordinary general meeting ofshareholders held on September 27,
2006 were acquired and cancelled
without consideration on October 30,
2009.
Latent shares relating to the above
cancelled stock options did not exist asof June 30, 2010.

18(286,800)

(Significant subsequent events)
Previous consolidated fiscal year
Current consolidated fiscal year
(from July 1, 2009 to June 30, 2010)(from July 1, 2010 to June 30, 2011)
AmountAmount1. Succession to business through absorption type demerger 1. Issuance of Euro Yen Zero Coupon Convertible Bonds
At an extraordinary meeting of its Board of Directors held due 2014
on June 11, 2010, the Company passed a resolution to
The issuance of Zero Coupon Convertible Bonds due 2014
succeed to the marketing research business of Yahoo Japan resolved at the meeting of the Board of Directors held on
Value Insight Corporation (hereinafter referred to as “YVI”) August 3, 2011.
through an absorption-type demerger, and entered into an(1) Securities Offeredabsorption-type demerger agreement dated June 11, 2010. ¥5,000,000,000 Zero Coupon Convertible Bonds due 2014
The Company completed the absorption-type demerger on (bonds with stock acquisition rights, tenkanshasaigata
August 1, 2010, in accordance with the absorption-type
shinkabu yoyakuken-tsuki shasai).
demerger agreement.
(2) Issue Price(1) Name of the company to be combined and its primary
100.0 per cent.
businesses(3) Offer Price
Name of company to be combined
102.5 per cent.
Yahoo Japan Value Insight Corporation(4) Closing Date
Primary businesses
19 August 2011.
Planning, design, implementation, tallying and analysis of(5) Listing
online research and preparation of online research analysis Approval in-principle has been received for the listing on thereports
Singapore Exchange Securities Trading Limited.
(2) Reason for business combination(6) Lead Manager and Bookrunner
The purpose of the business combination is to combine the Deutsche Bank AG, London Branch (the “Manager").
Company’s system building capacity and strong sales force (7) Lock-up
and YVI’s ability to propose solutions to maximize
Lock-up of the Company
synergies and improve the competitiveness and quality of
In connection with the issue and offering of the Bonds, theservices. At the same time, it will integrate client assets,
Company has agreed not to, and not to direct any entities or
improve the efficiency of business management and enhance any persons acting at the direction of the Company to, for asales promotion, leading to greater corporate value andperiod beginning on the date of the Subscription Agreement
further business expansion.
and ending on the date without the prior written consent of(3) Date of business combination
August 1, 2010
the Manager:(4) Legal form of the business combination and name of the (a)issue, offer, pledge, lend, sell, contract to sell, sellcompany after the business combination
any option or contract to purchase, purchase any option orLegal form of the business combination
contract to sell, grant any option, right or warant to purchase,
Absorption-type demerger in which YVI is the splitting
make any short sale or otherwise transfer or dispose of, any
company and the Company is the successor company.
Shares or any other capital stock of the Company or any
Name of the company after business combination
securities convertible into or exercisable or exchangeable
Macromill, Inc.
for, or that represent the right to receive, Shares or any other(5) Principal grounds for determining the acquiring company capital stock of the Company; or
The Company and YVI decided to make the Company the (b)enter into any derivative transaction or any otheracquiring company based upon comprehensive consideration transaction that transfers, in whole or in part, directly orof factors such as structure of shareholders and executive
indirectly, ownership (or any economic consequences
officers after the business combination and the financial
thereof) of Shares or any other capital stock of the Company,
position and assets of both companies.
whether settled in cash or otherwise, other than:(6) Acquisition cost of acquired company and breakdown of (i)the issue and offering by the Company of the Bonds
acquisition costor the issue or transfer of Shares upon exercise of the Stock
Consideration for acquisition
Acquisition Rights;(common stock of the Company) 3,207,384 thousand yen (ii)the issue or transfer by the Company of Shares upon
Direct costs of acquisition
the exercise of any warrants to subscribe for shares, share(advisory expense, etc.)
16,542 thousand yen subscription rights or stock acquisition rights (including any
Acquisition cost
3,223,926 thousand yen
bonds with stock acquisition rights) outstanding; and(7) Number of shares delivered and appraised value of(iii) the grant of stock options, stock acquisition rights ordelivered shares
warrants to directors and employees of the Company, or
Number of shares delivered
22,992 shares directors and employees of any of its subsidiaries andAppraised value of delivered shares 3,207,384 thousandassociated company pursuant to its or their stock optionyenplans.

19

2. Establishment of subsidiary
Lock-up of Certain Shareholders
At an extraordinary meeting of its Board of Directors held In connection with the issue and offering of the Bonds, eachon September 24, 2010, the Company passed a resolution to of Tetsuya Sugimoto and Vanillasky Corporttion (each, ajoin forces withHakuhodo DY Holdings, Inc. (hereinafter“Lock-up Shareholder") have agreed pursuant to separate“Hakuhodo DY Holdings”) and Tokyu Agency, Inc.
lock-up letters dated the date of the Subscription Agreement(hereinafter “Tokyu Agency”) in establishing a newthat neither they, nor any person controlled by, or acting on
company with the purpose of collecting and selling data on behalf of, such company or individual will:consumer purchases, and reached a basic agreement with the (a)issue, offer, pledge, lend, sell, contract to sell, sell
two companies dated September 24, 2010.
any option or contract to purchase, purchase any option or(1) Purpose
contract to sell, grant any option, right or warrant to
The Company and Tokyu Agency jointly provide the QPR purchase, make any short sale or otherwise transfer or(Quick Purchase Report) service (See Note), a one-stop shop dispose of, any Shares or any other capital stock of thefor data on actual purchases and consumer attitudes. The
Company or any securities convertible into or exercisable orservice is popular, especially among manufacturers of food, exchangeable for, or that represent the right to receive,
beverages and daily necessities, and has also attracted a great Shares or any other capital stock of the Company; ordeal of interest from marketing support firms such as(b)enter into any derivative transaction or any otheradvertising agencies and distribution firms in recent years. transaction that transfers, in whole or in part, directly or
However, the Company decided it was necessary to enhance indirectly, ownership (or any economic consequences
the service and provide/generate reliable panel data that will hereof) of Shares or any other capital stock of the Company,
permit businesses to conduct marketing activities based on (except in each case for such actions as the Company may
research into consumer purchasing patterns.
take in accordance with the terms of the Subscription
As an initial step, the Company has joined forces with
Agreement and, except in each case for any lending of
Tokyu Agency, which has many years experience providing Shares or arrangements related thereto pursuant to any stock
product selection research, and Hakuhodo DY Holdings,
lending agreements entered in between a Lock-up
which is pursuing next-generation, comprehensive marketing Shareholder and the Manager or any of its subsidiaries andsolutions, in establishing a new company with the purpose of affiliates), for a period beginning on the date of such lock-up
collecting and selling data on consumer purchases.
letters (which arc dated the date of the Subscription
Note: QPR service
Agreement) and ending on the date 180 calendar days after
Refers to a database of purchase data collected by portable 19 August 2011(or, if later, the date of payment for thescanners and a related service operated jointly by theBonds), whether settled in cash or otherwise, in each caseCompany and Tokyu Agency.
without the prior written consent of the Manager.
(8) Early Redemption – Redemption at the Option of theCompany upon lncreased Share Prices(2) Name, business and size of company to be established
The Company may, at any time on or after 20 August 2012
Name
To be determined
and on or prior to 5 August 2014, having given not less thanBusiness
Collection and sale of data on consumer
45 nor more than 60 days’ prior notice, redeem all, but not
product purchases
some only, of the Bonds then outstanding at 100 per cent. of
Capitalization 400,000 thousand yen (capital to be invested their principal amount on the date fixed for such redemption,
800 million yen)provided, however, that no such redemption may be madeunless the VWAP of the Shares for each of the 20(3) Date of incorporationconsecutive trading days, the last of which occurs not more
Middle of January 2011 (planned)
than 30 days prior to the date upon which the notice of such(4)Number of shares to be acquired and acquisition price,redemption is first given by the Company, is at least 120 per
ownership ratios after acquisition, etc.
cent of the Conversion Price in effect on each such Trading
Number of shares to be acquired and acquisition priceDay.
To be determined
Ownership ratios after acquisition
The Company
82% (planned)
Hakuhodo DY Holdings
15% (planned)
Tokyu Agency
3% (planned)20

2. Share Repurchase
A resolution on items relating to the share repurchase, in
accordance with Article 156 of the Companies Act of Japan,
passed at the meeting of the Board of Directors held on
August 3, 2011.
(1) Reason for share repurchase
The Company is acquiring its own shares as part of a flexible
capital policy in response to changes in the businessenvironment.
(2) Details of the items relating to the acquisition(i)Type of shares to be acquired: Common shares(ii)
Total number of shares to be acquired:
3,200,000 shares (upper limit)(Ratio to total number of issued and outstanding
shares (excluding treasury shares) 10.47%)(iii) Total acquisition costs: 2,500,000,000 yen(upper limit)(iv) Acquisition period:
From August 4, 2011 to August 3, 2012(v) Method of acqusition: Purchase on the Tokyo Stock
Exchange
3. Cancellation of Treasury Shares
At the Board of Directors' meeting held on August 3, 2011,
pursuant to the provisions of Article 178 of the Corporation
Law, to cancel its treasury shares as stated below.
(1) Class of shares to be cancelled
Common stock(2) Number of shares to be cancelled
1,605,200 shares(4.97% of total issued shares before the cancellation)(3) Date of cancellation
August 11, 201121

4. Others(1) Change of Board(i)
Change of Representative
Not applicable
(ii)

(iii)

Change of other directors
 Retiring Director:
Director Nominee for new Corporate Auditor:
Statutory Corporate Auditor (Full-time) Retiring Corporate Auditor:
Statutory Corporate Auditor (Full-time)

Yasuhiko Ichihara (to be nominated as Corporate Auditor)
Yasuhiko Ichihara
Ikuo Okamoto

Change date
September 28, 201122