BRIEF STATEMENT OF CONSOLIDATED FINANCIAL RESULTS
FOR THE THIRD QUARTER OF THE FISCAL YEAR ENDING MARCH 2012
[Japanese Standards]
February 10, 2012
Company name: Faith, Inc. (Stock code 4295, Listed on TSE 1st section)
URL:
http://www.faith.co.jp/
Representative: Hajime Hirasawa, CEO/President
Contact:
Koji Saeki, CFO/Director Tel: +81-75-213-3933
Date of Submission of Securities Report: February 13, 2012
Starting Date of the Dividend Payment: ―Preparation of Supplementary Materials for Quarterly Financial Results: Applicable
Information Meeting for Quarterly Financial Results to be Held: None
Amounts are rounded down to the nearest JPY 1 million.

1. Consolidated Results for the Third Quarter of the Fiscal Year Ending March 2012
（from April 1，2011 to December 31，2011）(1) Consolidated Operating Results(Percentages indicate changes compared with the third quarter of the previous fiscal year.)

Net Sales
Millionsof yenQ3 of the year ending
March 2012
Q3 of the year ending
March 2011
Note:

Operating Profit%

Recurring Profit%

Millionsof yen%Millionsof yenNet Profit
Millionsof yen%31,600

△48.2

1,394

△16.4

1,429

△11.2

6,435

692.2

61,061

48.0

1,614

88.1

1,609

107.0

812

41.0

Comprehensive income: third quarter of the year ending March 2012: ¥6,732 million (498.8%); third quarter of the year ending
March 2010: ¥1,124 million (—%)

Net Profit per Share
Yen

Diluted Net Profit per ShareYen

5,605.74

5,603.07

707.60700.80Q3 of the year ending
March 2012
Q3 of the year ending
March 2011

(2) Consolidated Financial Position
Total Assets

Net Assets

Ratio of Equity CapitalMillions of yen

Millions of yen%

Q3 of the year ending
March 2012

23,535

19,401

82.3

Year ending March 2011

32,726

14,544

39.4(Reference) Equity capital: third quarter of the fiscal year ending March 2012: 19,373 million yen; third the fiscal year ending March 2011:
12,897 million yen

2. Dividends
Dividends per Share
(Record dates)

Year ending March
2011
Year ending March
2012
Year ending March2012 (Forecast)First Quarter

Interim

yen
―

yen
50.00

―

50.00

Note: Revisions of recently announced dividend forecasts: none

Third Quarteryen―

Year-end

Total(Annual)

yen
50.00

yen
100.0050.00

100.003. Forecast for the Consolidated Results for the Year Ending March 2012
（from April 1，2011 to March 31，2012）(Percentages indicate changes compared with the third quarter of the previous fiscal year.)

Net SalesYear ending
March 2012

Operating Profit

Recurring Profit

Net Income

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%33,560

△60.1

1,150

△46.0

1,280

42.2

6,300

433.1

Net Income
per Share
Yen
5,487.57

Note: Revisions of recently announced dividend forecasts: none

4. Others(1) Material changes in significant subsidiaries (associated with changes in scope of the consolidation) in
the current quarter: Applicable
Newly added subsidiaries: 1 company (subsidiary’s name: Future RECORDS, Inc.)
Removed subsidiaries: 1 company (subsidiary’s name: WebMoney Corporation)
Note:

For details, please refer to page 3 of the accompanying material, “Changes in Significant Consolidated Subsidiaries During
the Current Third Quarter”.

(2) Adoption of specific accounting procedures in preparation of the quarterly consolidated financial
reports: ApplicableNote:

For details, please refer to page 3 of the accompanying material, “Adoption of Specific Accounting Procedures in Preparationof the Quarterly Consolidated Financial Reports”.

(3) Changes in accounting policy, changes in accounting estimates, and restatements(3)-1. Changes accompanying revisions of accounting standards, etc.: None(3)-2. Changes other than the above: None(3)-3. Changes in accounting estimates: None(3)-4. Restatements: None

(4) Outstanding shares (common shares)(4)-1. Outstanding shares at the end of the fiscal years (including treasury shares):
The third quarter of the fiscal year ending March 2012: 1,196,000 shares
The fiscal year ending March 2011: 1,196,000 shares(4)-2. Treasury shares at the end of the fiscal year:
The third quarter of the fiscal year ending March 2012: 47,950 shares
The fiscal year ending March 2011: 47,950 shares(4)- 3. Average number of shares at the interim accounting period
The third quarter of the fiscal year ending March 2012: 1,148,050 shares
The third quarter of the fiscal year ending March 2011: 1,148,050 shares* Indication of quarterly review procedures implementation status
This quarterly financial results report is exempt from quarterly review procedures under Japan’s Financial Instruments andExchange Law. It is under the review procedure process at the time of disclosure of this report.
* Statement regarding the proper use of financial forecasts and other special remarks(Notice regarding statements concerning the future)
Statements concerning the future, such as performance forecasts, etc., described in the present material are based on
information currently available to the Company and on certain assumptions judged as reasonable by the Company. The
Company’s actual performance may differ substantially from these forecasts as a result of various factors beyond theCompany’s control. For details of cautions, etc., employed in making performance forecasts and the assumptions underlying
performance forecasts, please refer to page 3 of the accompanying material, “Qualitative Information Regarding Forecast ofConsolidated Financial Results”.

Contents
1. Qualitative Information Regarding Financial Statements in the Current Quarter ······························ 2(1) Qualitative Information Regarding the Consolidated Operating Results ······································ 2(2) Qualitative Information Regarding the Consolidated Financial Position ····································· 3(3) Qualitative Information Regarding the Forecast of Consolidated Financial Results ····················· 3
2. Items Related to Summary Information (Others) ············································································· 3(1) Changes in Significant Consolidated Subsidiaries During the Current Third Quarter ···················· 3(2) Adoption of Specific Accounting Procedures in Preparation of the Quarterly Consolidated
Financial Reports ····················································································································· 3(3) Changes in Accounting Policy, Changes in Accounting Estimates, and Restatements ················ 4(4) Additional Information ············································································································· 4
3. Third Quarter Consolidated Financial Statements ··········································································· 5(1) Third Quarter Consolidated Balance Sheet ················································································· 5(2) Third Quarter Consolidated Statement of Income and Consolidated Statement ofComprehensive Income··············································································································· 7
Consolidated Statement of Income (Third Quarter Accumulated Period)······································ 7
Consolidated Statement of Comprehensive Income (Third Quarter Accumulated Period) ············· 8(3) Explanatory Note Regarding Premise of a Going Concern ························································· 8(4) Segment Information ················································································································· 8(5) Notes in Case of Significant Changes in Shareholders’ Equity ···················································· 9

11. Qualitative Information Regarding Financial Statements in the Current Quarter(1) Qualitative Information Regarding the Consolidated Operating Results
The mobile phone and smartphone market in Japan has now reached maturity with the number of individual
subscriptions exceeding 120 million in 2011. In line with the progress of new smartphone product launches andthe further development of the smartphone-use environment, it is forecast that annual shipments of smartphone
units will reach 21 million units in FY 2011, accounting for over half of all mobile terminals sold during that
period, and that the demand for smartphones will continue to increase in future. Moreover, in the contents market,
the popularity of social networking services (SNS), mobile social games, video-sharing sites, etc, that require awide range of mobile terminal functions, is leading to an acceleration in the diversification and complexity of userneeds, and this in turn is driving demand for the creation of new contents distribution.
Against this background, based on its Multi-Content and Multi-Platform Strategy of creating an environment thatallows people to enjoy a wide diversity of contents whenever and wherever they choose, the Faith Group has beenpouring its energies into creating high value-added contents and establishing a new system for delivering them tousers. In August 2011, we opened Future SEVEN as a real-world space for showcasing and dispatching music,
fashion, video, etc, and in September of the same year, in a joint venture with Nippon Columbia Co., Ltd., weestablished a new company for delivering music to users in a new style that has never been previously attempted.
As a result of the above factors, and in line with the elimination of our consolidated subsidiary WebMoney
Corporation from the Group’s consolidated financial results, net sales for end of the third quarter of the fiscal year
ending March 2012 decreased by 48.2% compared with the same term of the previous fiscal year to ¥31,600
million, operating profit decreased by 16.4% year on year to ¥1,349 million, and recurring profit decreased by
11.2% year on year to ¥1,429 million. Moreover, as a result of extraordinary profits totaling ¥7,004 million fromthe sale of the Company’s shareholding in WebMoney Corporation, etc., the Group recorded a net profit of ¥6,435
million, an increase of 692.2% year on year.
Information on each business segment is as follows:<Contents Business>
During the period under review, the Faith Group continued its efforts to establish a new framework for content
distribution and expand and strengthen its new business operations base.
The Group strengthened its diversified approach by implementing its New 360° Strategy, which is aimed atproviding excellent contents to users by all available methods. As a part of this effort, in August 2011, under theconcept of “sending out Japanese entertainment to the world”, on the first floor of the Company’s Minami
Aoyama Office in Tokyo, we opened the showroom Future SEVEN as a base for the live distribution of music,
fashion, art, movies, videos, etc., worldwide in seven languages. We are making maximum use of Future SEVEN
as a real-world space for announcing and showcasing work by excellent artists and creators and for cultivating
their talents.
In September 2011, the Company established Future RECORDS, Inc., in a joint venture with Nippon Columbia
Co., Inc. This new company is engaged in discovering and cultivating excellent world-class artists by making useof the facilities of Future SEVEN in planning and producing music and visual works, producing and operating fan
clubs, live event production and management, etc. Moreover, unlike conventional record companies that center
their business on package sales of CDs, etc., Future RECORDS is creating new music businesses such as, forexample, planning various kinds of works involving its artists and using these to connect the artists with users.
Furthermore, December 2011 marked the pre-opening of an epoch-making new application introduction portal
service named aivie, which is dedicated to improving user convenience and solving the problems of a wide range
of users from smartphone beginners to application developers by creating a new communication forum throughapplications.
As a result of the above developments, the Group recorded net sales in the Content Business for the third quarterof the fiscal year ending March 2012 of ¥4,824 million, a decrease of 14.2% compared with the same period of
the previous fiscal year, and an operating profit of ¥790 million, an increase of 34.2% year on year.

2<Electronic Money Business>
The Electronic Money Business saw a continuing expansion of the online game market, a major sector in whichelectronic money is used, as well as a steady increase in the settlement amount of WebMoney Corporation.
Moreover, in line with the sale of the Company’s shareholding in its consolidated subsidiary WebMoney
Corporation, which is engaged in the Electronic Money Business, the company in question was excluded from theFaith Group’s consolidated financial results from the second quarter consolidated accounting period, so its
business performance as recorded in the results for the current third quarter remains at the level recorded for the
first quarter consolidated accounting period.
In line with the above factors, net sales in the Electronic Money Business totaled ¥25,717 million, a decrease of
52.7% compared with the same period of the previous fiscal year, and operating profit in this business decreased
by 53.6% year on year to ¥430 million.
<Other Businesses>
Revenues from other businesses including the Point-Card System Business resulted in sales of ¥1,058 million, an
increase of 1.8% compared with the same period of the previous fiscal year, and an operating profit of ¥125
million, an increase of 24.4% year on year.
(2) Qualitative Information Regarding the Consolidated Financial Position<Assets, Liabilities and Net Assets>
Total assets as of the end of the third quarter of the fiscal year ending March 2012 decreased by ¥9,191 million
compared to the end of the previous consolidated fiscal year to ¥23,535 million. This result was due mainly todecreases in bills receivable, accounts receivable and investment securities following the elimination of theCompany’s consolidated subsidiary WebMoney Corporation from the consolidated financial results as well as to adecrease in goodwill caused by amortization.
Total liabilities decreased by ¥14,048 million compared to the end of the previous consolidated fiscal year to¥4,133 million yen. This result was due mainly to decreases in bills receivable, accounts receivable and theallowance for utilized costs following the elimination of the Company’s consolidated subsidiary WebMoney
Corporation from the consolidated financial results, despite an increase in income tax payable due to the recordingof corporation tax, etc.
Total net assets increased by ¥4,857 million compared to the end of the previous consolidated fiscal year to¥19,401 million. This result was due mainly to an increase in retained earnings in line with the recording of a net
profit for the third quarter under review, despite the payment of a dividend and a decrease in minority
shareholders’ equity following the elimination of the Company’s consolidated subsidiary WebMoney Corporationfrom the consolidated financial results. In line with this result, the equity capital ratio increased by 42.9
percentage points to 82.3%.
(3) Qualitative Information Regarding the Forecast of Consolidated Financial Results
The present forecast is based on information available to the Company at the present time. However, it is possiblethat the Company’s actual financial results will differ from the forecast due to various factors that may arise in the
future. Moreover, regarding the forecast of consolidated financial results for the full year, as of the present time,
the Company has not made any changes to the revised figures issued on August 10, 2011.

2. Items Related to Summary Information (Others)(1) Changes in Significant Subsidiaries During the Current Third Quarter
During the second quarter consolidated cumulative period, the Company sold its shareholding in WebMoney
Corporation, with the result that this subsidiary was eliminated from the scope of consolidation. Also, because theCompany has newly established Future RECORDS, Inc., this subsidiary has been included within the scope of
consolidation.
(2) Adoption of Specific Accounting Procedures in Preparation of the Quarterly Consolidated Financial Reports
Tax expenses are calculated by multiplying the amount of quarterly net profit before tax deductions and theestimated effective tax rates, which are estimated as the effective tax rates applied after tax effect accounting to
the amount of net profit before tax deduction for the current consolidated accounting year, including the third
quarter consolidated accounting period.
3

(3) Changes in Accounting Policy, Changes in Accounting Estimates, and Restatements
Not applicable(4) Additional Information
Following the accounting changes and the correction of past errors implemented from the beginning of the firstquarter consolidated cumulative period, the Company has applied the “Accounting Standard for Accounting
Changes and Error Corrections” (Accounting Standard No. 24; December 4, 2009) and the “Application Guideline
for the Accounting Standard for Accounting Changes and Error Corrections” (Accounting Standard Application
Guideline No. 24; December 4, 2009).

4

3. Third Quarter Consolidated Financial Statements(1) Third Quarter Consolidated Balance Sheet
End of previous fiscal year
(March 31, 2011)(Assets)
Current assets
Cash and deposits
Accounts and notes receivable
Marketable securities
Commercial products
Products in progress
Primary materials and inventory goods
Deferred tax assets
OthersAllowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Intangible fixed assets
Goodwill
OthersTotal intangible fixed assets
Investment and other assets
Investment securities
OthersAllowance for doubtful receivable
Total investments and other assets
Total fixed assets
Total assets(Liabilities)
Current liabilities
Trade notes and accounts payable
Short-term loans
Income taxes payable
Allowance for utilized costs
Allowance for points
Allowance for bonus payments
OthersTotal current liabilities
Fixed liabilities
Long-term liabilities
Deferred tax liabilities
Allowance for retirement benefits
OthersTotal fixed liabilities
Total liabilities

5(Unit: thousands of yen)
End of period under review(December 31, 2011)

12,001,893
8,356,029
339,676
3,110
1,038
8,892
344,125
368,465△49,258
21,373,972

13,490,544
1,142,539
439,266
1,532
5,792
8,488
278,514250,540△30,041
15,587,177

2,893,215

3,039,505

435,363
371,487
806,851

49,182395,708444,890

7,405,341
396,115△148,792
7,652,664
11,352,731
32,726,703

4,377,149
175,085△88,156
4,464,077
7,948,473
23,535,650

9,948,110
399,984
390,631
4,835,100
230,979
77,608882,358
16,764,771

165,242399,984
1,618,931
218,70378,181
574,851
3,055,895

1,133,368
183,204
91,824
8,909
1,417,306
18,182,078

833,380
134,564
104,555
5,361
1,077,860
4,133,755

End of previous fiscal year
(March 31, 2011)(Net assets)
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

6(Unit: thousands of yen)
End of period under review(December 31, 2011)

3,218,000
3,708,355
6,556,212△651,377
12,831,189

3,218,000
3,708,355
12,077,079△651,377
19,152,056

268,011△201,693
66,317
1,647,118
14,544,625
32,726,703

243,316△21,958
221,357
28,48019,401,894
23,535,650

(2) Third Quarter Consolidated Statement of Income and Consolidated Statement of Comprehensive
Income• Consolidated Statement of Income (Third Quarter Accumulated Period)(Thousands of yen)
End of third quarter ofprevious fiscal year
(December 31, 2010)

End of period under review(December 31, 2011)

Net sales

61,061,099

31,600,210

Cost of sales

52,954,473

26,448,442

Gross profit

8,106,626

5,151,767

Selling, general and administrative expenses

6,491,968

3,802,482

Operating profit

1,614,658

1,349,285

Interest income

5,723

16,918Dividend income

4,701

5,560

Interest securities

34,44912,236Equity method investment gain

59,91863,605

Miscellaneous receipts

5,100

5,601

Total non-operating profit

109,892

103,923

Interest expense

28,032

12,439Non-operating profit

Non-operating expenses
Exchange loss

50,924

10,208Transfer to allowance for bad debt

30,018-

Miscellaneous expense

5,811

1,472

114,786

24,1191,609,764

1,429,088

Gain on disposal of investment securities

19,47928,795Gain on sale of shares of affiliated company

2,528

6,899,538

Others

5,077

76,665

Total extraordinary profit

27,085

7,004,999

Loss on disposal of fixed assets

4,897

14,734

Loss on investment securities valuation

14,750--79,565

Loss on changes in shareholder equity

11,537-

Effect of asset retirement obligations

17,253-37-

48,476

94,2991,588,372

8,339,788

Corporate, local, and business taxes

455,307

1,762,736

Income before minority interests

1,133,065

6,577,051

Total non-operating expenses
Recurring profit
Extraordinary profit

Extraordinary loss

Loss on sale of shares of affiliated company

OthersTotal extraordinary loss
Quarterly net profit before income taxes

Income or loss on minority shareholders

320,702141,379

Quarterly net profit

812,362

6,435,672

7

• Consolidated Statement of Comprehensive Income (Third Quarter Accumulated Period)(Thousands of yen)
End of third quarter ofprevious fiscal year
(December 31, 2010)

Income before minority interests

End of period under review(December 31, 2011)

1,133,065

6,577,051△17,184△24,197

8,401

179,237△8,782

155,040

1,124,282

6,732,092

Equity shareholders of the parent company

803,580

6,590,712

Minority interests

320,702141,379

Other comprehensive income
Valuation difference on available-for-salesecurities
Share of other comprehensive income ofassociates accounted for using the equity method
Total other comprehensive income
Total comprehensive income
Total comprehensive income attributable to(3) Explanatory Note Regarding Premise of a Going Concern
Not applicable(4) Segment Information
I. Previous Third Quarter Accumulated Period (April 1, 2010 through December 31, 2010)
1. Information Concerning Sales and Profit/Loss by Reportable Segment(Unit: thousands of yen)
Adjustments(Note 2)

Consolidated
Profit/Loss
Statement
amount (Note 3)

61,061,099–

61,061,099

Reportable segment

Net sales
Sales to outside
customers
Intersegment
sales and transfers
Total
Segment profit

Content
services

Electronic
Money5,625,789

54,395,439 60,021,228

Total

Others(Note 1)

Grand total

1,039,871

222,691

2,200

224,891–

224,891△224,891–

5,848,480

54,397,639

60,246,119

1,039,871

61,285,991△224,891

61,061,099

589,185929,081

1,518,266

100,728

1,618,994△4,336

1,614,658

Note 1: The “Other Business” category incorporates operations not included in the business segments reported,

including the Point Service Business and other business.
Note 2: Adjustment of segment profit of △¥3,336 thousand refers to elimination of intersegment transactions.
Note 3: Segment profit is adjusted with the operating profit in the quarterly consolidated profit and loss statement.

2. Information Regarding Impairment Losses on Fixed Assets or Goodwill by Reportable Segment
Since there are no critical impairment losses on fixed assets or significant change in the amount of goodwill,
this information is omitted.

8II. Current Third Quarter Accumulated Period (April 1, 2011 through December 31, 2011)
1. Information Concerning Sales and Profit/Loss by Reportable Segment(Unit: thousands of yen)

Net sales
Sales to outside
customers
Intersegment
sales and transfers
Total

Reportable segment
Content
Electronic
Total
services
Money

Other
businesses(Note 1)

Grand total

Eliminations(Note 2)

Quarterly P/LStatement
amount (Note 3)

4,824,701

1,058,282

31,600,210–

31,600,210

58,019–58,019△58,019–

25,717,625 30,599,947

1,058,282

31,658,229△58,019

31,600,210

125,349

1,346,887

2,398

1,349,285

57,6194,882,231

Segment profit

790,763

25,717,225 30,541,927
400

430,774

1,221,537

Note 1: The “Other Business” category incorporates operations not included in the business segments reported,

including the Point Service Business and other business.
Note 2: Adjustment of segment profit of ¥2,398 thousand refers to elimination of intersegment transactions.
Note 3: Segment profit is adjusted with the operating profit in the quarterly consolidated profit and loss statement.

2. Information Concerning Assets by Reportable Segment
In July 2011, the Company sold its shareholding in WebMoney Corporation, which is engaged in theElectronic Money Business, with the result that the company in question is no longer a consolidated
subsidiary of the Faith Group. Consequently, compared with the last day of the previous fiscal year,
the amount of assets in respect of the Electronic Money Business in the report segment for thecurrent third quarter consolidated accounting period has decreased by ¥18,161,901 thousand
3. Information Regarding Impairment Losses on Fixed Assets or Goodwill by Reportable Segment
Since there are no critical impairment losses on fixed assets or significant change in the amount of
goodwill, this information is omitted.

(5) Notes in Case of Significant Changes in Shareholders’ Equity
Not applicable9