BRIEF STATEMENT OF CONSOLIDATED FINANCIAL RESULTS
FOR THE 3rd QUARTER OF THE FISCAL YEAR ENDING MARCH 2024
This is an English translation of summarized consolidated financial results prepared
for the convenience of non-resident shareholders. Should there be any inconsistency
between the translation and the official Japanese text, the latter shall prevail.

February 14, 2024
Faith, Inc. (Stock code 4295, Listed on TSE 1st section)(URL http://www.faith.co.jp/)
Representative: Hajime Hirasawa, CEO/President
Contact: Chikayo Suzuki, CFO/Executive Officer
Tel: +81-3-6855-7811
Date of Submission of Securities Report: February 14, 2024
Starting Date of the Dividend Payment: —Preparation of Supplementary Materials for Quarterly Financial Results: None
Information Meeting for Quarterly Financial Results to be Held: None
Amounts are rounded down to the nearest JPY 1 million.

1. Results for the 3rd Quarter of the Fiscal Year Ending March 2024
(From April 1, 2023 to December 31, 2023)(1) Consolidated Operating Results(Percentages indicate changes compared with the same quarter of the previous fiscal year.)

Net Sales
Millionsof yenYear ending March 2024 Q3
Year ending March 2023 Q3

Operating Income%

10,087
11,419△11.7△0.2

Millionsof yenOrdinary Income
Millionsof yen

%

△493
△212

－
－

Net Income

%
－
－

△562
△189

Millionsof yen

%
－
－

△854
△254

(Note) Comprehensive income: 3rd quarter of fiscal year ending March 2024: △¥1,867 million (—%); 3rd quarter of fiscal year ending March
2023: ¥502 million (△11.8%)

Net Income per ShareYear ending March 2024 Q3
Year ending March 2023 Q3

Diluted Net Income per Share

Millions of yen

Millions of yen△78.78△23.05－－(2) Consolidated Financial Position
Total Assets
Year ending March 2024 Q3
Year ending March 2023

Net Assets

Ratio of Equity CapitalMillions of yen

Millions of yen%

21,31824,226

13,415
5,385

62.9
63.5

(Reference) Equity capital: 3rd quarter of fiscal year ending March 2024: ¥13,415 million; fiscal year ending March 2023: ¥15,385 million

2. Dividends
Dividends per Share
1st Quarter

Year ending March 2023
Year ending March 2024
Year ending March 2024
(Forecast)

yen
—
—

Interim

yen
5.00
5.00

3rd Quarter

Year-endyen——(Note) Revision of dividend forecast since the most recently announced dividend forecast: Not applicable

1

Total

yen
5.00

yen
10.00

5.00

10.00

3. Forecast for the Consolidated Results for the Year Ending March 2024
（from April 1，2023 to March 31，2024）(Percentages indicate changes compared with the previous fiscal year.)

Net Sales

Full year

Operating Income

Ordinary Income

Net Income
Attributable to the
Shareholders of the
Parent Company

Millionsof yenMillions ofyenMillionsof yen%Millionsof yen13,600

△10.4

△530

%
－

%

△600

－

△890

Net Income
per Share

Yen

%
－

△82.10(Note) Revision of dividend forecast since the most recently announced dividend forecast: Applicable* Notes(1) Changes in significant subsidiaries (accompanying changes in scope of consolidation): Applicable
Newly added subsidiaries: 0 companies (subsidiary’s name:)Removed subsidiaries: 1 company (subsidiary’s name: Faith Wonderworks, Inc.)(2) Adoption of simplified accounting practices or specific procedures in preparation of the quarterly
consolidated financial reports: Not applicable(3) Changes in accounting policy, changes in accounting estimates, and restatements(i)
Changes accompanying revisions of accounting standards, etc.: Not applicable(ii) Changes other than the above: Not applicable(iii) Changes in accounting estimates: Not applicable(iv) Restatements: Not applicable(4) Outstanding shares (common shares)(i) Outstanding shares at the end of the term (including treasury shares):
The 3rd quarter of the fiscal year ending March 2024: 13,831,091 shares
The fiscal year ending March 2023: 13,831,091 shares(ii) Treasury shares at the end of the term:
The 3rd quarter of the fiscal year ending March 2024: 2,989,134 shares
The fiscal year ending March 2023: 2,999,883 shares(iii) Average number of shares during the interim accounting period:
The 3rd quarter of the fiscal year ending March 2024: 10,840,090 shares
The 3rd quarter of the fiscal year ending March 2023: 11,031,626 shares(Note) The number of shares of treasury stock at the end of the period includes the Company's shares (245,900 shares in Q3 of the
fiscal year ending March 2024, 257,200 shares in the fiscal year ending March 2023) contributed as trust assets in theperformance-based stock compensation plan). In addition, such shares are also included in the treasury shares that are deductedin calculating the average number of shares during the accounting period (248,033 shares in Q3 of the fiscal year ending March
2024, 257,200 shares in Q3 of the fiscal year ending March 2023)* This financial results report is exempt from quarterly review procedures.
* 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 “1. Qualitative Information Concerning the Settlement of Accounts for the 3rd Quarter,(3) Explanation Concerning Future Forecast Information on the Consolidated Financial Results, etc.” on page 5 of theaccompanying material.

2

Contents
1. Qualitative Information Concerning the Settlement of Accounts for the 3rd Quarter ····················(1) Explanation Concerning the Operating Results ····························································(2) Explanation Concerning the Financial Position ····························································(3) Explanation Concerning Future Forecast Information on the Consolidated Financial Results, etc.

2
2
4
5

2. Consolidated Financial Statements and Important Explanatory Notes ······································ 6(1) Consolidated Balance Sheet ··················································································· 6(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ········ 8(Consolidated Statement of Income) ·········································································· 8(Consolidated Statement of Comprehensive Income)······················································· 9(3) Notes Concerning the Consolidated Financial Statements ················································· 10(Note Concerning the Premise of a Going Concern) ························································ 10(Note in the Case of Significant Changes in the Amount of Shareholders’ Equity) ··················· 10(Segment Information) ·························································································· 10

1. Qualitative Information Concerning the Settlement of Accounts for the 3rd Quarter(1) Explanation Concerning the Operating Results
In the Japanese information and communications field in 2022, the Internet penetration rate remained
high at 84.9%, while the percentage of households owning one or more smartphones increased to 90.1%,
greatly exceeding the 69.0% of households owning one or more personal computers (*1). In addition, while
the movement away from television has continued since the year 2000, mainly centered on the young,
advertising expenses for the Internet in Japan increased by 14.3% in 2022 from the previous year to¥3,091.2 billion, exceeding the combined advertising expenses for the four largest mass media sectors(newspapers, magazines, radio, and television) of ¥2,398.5 billion, and accounting for 43.5% of Japan’s
total advertising expenditures (*2). This trend is also evident worldwide, where in 2023 global spending
on digital advertising is expected to reach approximately ¥59 trillion (US$424.3 billion), an increase of
7.8% from the previous year, with spending on digital advertising exceeding 58.3% of total spending on
advertising (*3).
*1. Source: Ministry of Internal Affairs and Communications, 2022 Telecommunications Usage Trend Survey Results*2. Source: Dentsu Inc., 2022 Advertising Expenditures in Japan*3. Source: Dentsu Group Inc., Global Ad Spend Forecasts (2023-2025)

In the entertainment market in 2022, sales in the global music market centered on streaming services grewby 9.0% year over year to approximately ¥3,523.4 billion (US$26.2 billion), expanding for the eighthconsecutive year and reaching its highest total since the beginning of this century. In particular, paid
subscription streaming accounted for 67% of the total, increasing to ¥2,345 billion ($17.5 billion) (*4). In
Japan, the production value of music software including music videos increased by 4% year over year to¥202.3 billion, exceeding ¥200 billion for the first time since 2019, three years earlier. Moreover, paid
music distribution sales increased by 17% to ¥105.0 billion and audio streaming sales increased by 25%
year over year to ¥92.8 billion, accounting for almost 90% of total paid music distribution sales (*5). In
2022, as the economy normalized through efforts to balance the spread of infection and economic activity,
the live entertainment market underwent a rapid recovery to reach ¥565.2 billion, which was 10.2% lower
than the level in 2019, the year before the start of the novel coronavirus pandemic (the corresponding
figure for 2021 was 51.2% lower than in 2019). The size of the market is expected to grow to ¥640.8
billion in 2023, and after that it is forecast to expand at an annual growth rate of 0.9% and reach ¥652.5
billion in 2025 (*6).
*4. Source: IFPI, Global Music Report 2023
*5. Source: Recording Industry Association of Japan (RIAJ), The Recording Industry in Japan 2023
*6. Source: PIA Research Institute, Japanese Live Entertainment Market Size 2022 Preliminary Report (published December 22, 2023)

Founded in 1992, Faith was the first company in the world to commercialize ringtones, and has steadilygrown centered on the music distribution business and in step with the popularization of mobile phones.
In the current music market, along with the spread of smartphones and the diversification of media suchas streaming, user-generated content (UGC) (*7), which allows ordinary users to easily transmit
information to society, and social media, the music industry is facing a situation in which all of its
activities, including content distribution methods, consumption styles, and content production methods,
are changing.
*7. User-generated content: images and videos generated and posted by users themselves on the Internet.

In this environment, the Faith Group is continuing to forge ahead with its Multi-Content and Multi-Device
Strategy of creating environments in which people can enjoy a wide variety of content when and where
they want, by utilizing the efforts it has focused on digital content distribution ever since its establishment.
In addition, the Group is developing new services in response to the changing market environment,
including platforms that collect and organize the information flooding the Internet and providing it tousers after increasing its added value.
Our new platform sprayer® is an innovative music distribution service that allows artists to distribute andmonetize their original songs worldwide by simply registering them, and also directly deliver music
videos, live performances, and other activities through the original spray LINK function. Spray LINK isequipped with a function that allows artists to recruit supporters (crowdfunding that allows them to returna portion of their proceeds from music distribution to their fans as rewards), allowing them not only toraise funds for their activities, but also to share profits with supporters so that their songs can reach as
many listeners as possible. In December 2023, we began to support copyright management anddistribution using text-to-speech characters not only in Japan but also overseas. For the future, we will2

continue to provide a platform that allows artists themselves to directly deliver information about theirworks to listeners and fans, thereby helping to build deeper engagement and facilitating monetization, andwe will work to expand the artist economy at all levels and create a system that “allows artists to growtogether with their fans.”
The Faith Group reorganized its Content Business with effect from April 1, 2023, with the goal ofestablishing an organization that is better adapted to the needs of the present era. By breaking down thefunctions that each group company has developed to date and clarifying their core competencies, we areaiming to create an organizational structure that facilitates business development, differentiates the profit
structure, and further improves efficiency. Moreover, by building a system capable of promptly
responding to the rapidly changing tastes and trends in the music market, we are enhancing our ability tocreate appealing content and improving our competitiveness. We are aiming to further develop synergies
within the Group by consolidating the major labels, reinforcing and streamlining the administrative andsales functions, and integrating the assets belonging to each label using the Group’s own technology.
In addition, Faith, Inc. has consolidated its office functions into the Minami-Aoyama Office, and has
established a permanent telework work system in anticipation of changes in behavioral patterns and theestablishment of new values. We are actively engaged in a company-wide effort to reestablish and activatecross-sectional communication between departments, and we will continue to pursue more flexible
workstyles and realize diverse and efficient ways of working.
Furthermore, the Company, which had been listed on the Prime Market of the Tokyo Stock Exchange,
has transferred to the Standard Market of the Tokyo Stock Exchange as of October 20, 2023, following
its application for selection for listing on the Standard Market subsequent to the revision of the Tokyo
Stock Exchange rules, which came into effect on April 1, 2023. Looking ahead, we will continue to pursue
flexible organizational management, centralize our business strategies, speed up decision-making, andeffectively utilize our resources including knowhow and human resources to further strengthen the FaithGroup’s creative capabilities so that we can respond appropriately top the changes in the music industry
and enhance the corporate value of the entire group.
Regarding the Faith Group’s business performance for the third quarter of the fiscal year ending March
2024, net sales decreased by 11.7% from the same quarter of the previous fiscal year to ¥10,087 million.
The Group reported an operating loss of ¥493 million (compared with an operating loss of ¥212 million
for the same period of the previous fiscal year), and an ordinary loss of ¥562 million (compared with an
ordinary loss of ¥189 million for the same period of the previous fiscal year). Moreover, after carefully
examining the recoverability of deferred tax assets in light of future business performance trends, theGroup reversed ¥279 million in deferred tax assets and ¥268 million in income taxes-deferred, resulting
in a quarterly net loss attributable to the owners of the parent of ¥854 million (compared with a net loss
attributable to the owners of the parent of ¥254 million for the same period of the previous fiscal year).
Information on each business segment is as follows.
Platform BusinessIn the Platform Business, as sales in our existing distribution businesses continue to decline, we will makefurther investments in new growth areas by linking and platforming each of our services with the aim ofdeveloping innovative products and capturing diversified revenue-generating opportunities.
Through FaRao PRO, we are focusing not only on providing BGM for commercial use, but also on
actively developing sales activities centered on the expansion of functions necessary for store operations,such as solutions that propose store branding, as well as announcement functions. In the future, we willcontinue to aim at the creation and activation of a new BGM market.
In Fans’, our platform for artists, we are enhancing the functions essential to artists’ musical activities
such as constructing official websites, distributing music and videos, selling artists’ goods, and operating
fan clubs. By strengthening links with SNS, we have introduced a system that allows fans to contributeto building a community by sharing the information that creators send out. Moreover, as the provider ofa service that allows artists to freely disseminate their work and information more widely, we areattempting to acquire a larger user base and improve the quality of the service by pursuing greater
convenience.

3

In addition, the point service not only provides a platform for retailers to operate point systems, but alsooffers total support from planning to operation as a series of cycles for acquiring, analyzing, and utilizing
point issuance data for sales promotions, and provides outsourcing services to maximize the efficiency ofsales promotions in the retail industry.
In line with the recovery of the real-live market, our live-streaming platform Thumva ceased providing
services at the end of November 2023, after fulfilling its original purpose of “delivering exciting live
experiences online” under the restrictions on activity imposed due to the spread of infectious disease.
Meanwhile, the business transfer of Thumva BIZ, our new service for stores that utilizes Thumva’s
resources, was completed on December 1, 2023.
Regarding the performance of this segment for the third quarter of the current consolidated fiscal year,
although artist-oriented platform sales increased, sales of official carrier website services for mobile
phone content distribution and points issued to existing member stores on the retailer point system
operation platform both recorded decreases, with the result that net sales decreased by 5.3% year overyear to ¥1,523 million. In addition, improvements in business schemes resulted in segment loss ¥178
million (compared with a segment loss of ¥219 million for the same period of the previous fiscal year).
Content BusinessIn the Content Business, we are strengthening new businesses with an eye to the future in order toovercome our dependence on sales of packaged products in the severe environment faced by the music
and video-related industries due to the changing music market.
In an effort to create new hits, the three label companies, Nippon Columbia, DREAMUSIC, and KSR,
are developing and nurturing content suitable for the next-generation music business. In addition, they
are actively utilizing their extensive catalog assets in new projects, with the goal of expanding their IP
domains both domestically and globally.
Although major live events by the company’s artists were held during the period and sales of high-margin
sound sources increased, sales of major packaged products decreased, with the result that net sales
decreased by 12.7% year over year to ¥8,563 million, and segment income declined by 90.9% year overyear to ¥26 million.
*Product and service names appearing in this document are trademarks or registered trademarks of Faith, Inc. either in Japan or in othercountries.

(2) Explanation Concerning the Financial Position
As of the end of the third quarter of the current fiscal year ending March 2024 (December 31, 2023), total
assets decreased by ¥2,907 million compared to the end of the previous fiscal year to ¥21,318 million.
This was mainly due to a decrease in cash and deposits and a decrease in investment securities.
Total liabilities increased by ¥937 million compared to the end of the previous fiscal year to ¥7,903
million. This was mainly due to the repayment of long-term loans payable and a decrease in deferred tax
liabilities.
Net assets decreased by ¥1,970 million compared to the end of the previous fiscal year to ¥13,415 million.
This was mainly due to a decrease in retained earnings due to the recording of a quarterly net loss and adecrease in the valuation difference on available-for-sale securities.
As a result of the above, the equity ratio was 62.9%, a decrease of 0.6 percentage points from the end of
the previous fiscal year.

4(3) Explanation Concerning Future Forecast Information on the Consolidated Financial
Results, etc.
For details of the full-year consolidated performance forecast for the fiscal year ending March 31, 2024,
please refer to the “Notice of Revision of Performance Forecast,” which was separately disclosed on
February 14, 2024 (in Japanese).
Performance forecasts are made based on information currently available to the Company, but there is apossibility that the actual performance figures will differ significantly from the forecast figures due to avariety of factors.

5

2. Consolidated Financial Statements and Important Explanatory Notes(1) Consolidated Balance Sheet(Thousands of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes receivable
Accounts receivable
Contract assets
Marketable securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Income taxes refundable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term debt
Accounts payable - otherAccrued expenses payable
Income taxes payable
Provision for bonuses
Contract liabilities
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Retirement benefit liabilities
Provision for share awards for directors (and otherofficers)
Asset retirement obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities

6

As of December 31, 2023

11,024,018
6,873
1,992,323
920
218,509290,769
373,434
62,796
175,393
796,954△23,801
14,918,191

10,125,776
5,672
1,904,430
150
216,491
348,048
380,306
40,824
401
902,190△22,455
13,901,837

3,581,540

3,523,211

1,149,180
359,067
1,508,248

1,058,612
379,4421,438,055

3,621,214
210,402
1,064,557△677,703
4,218,470
9,308,259
24,226,451

2,104,279
64,229396,094△109,238
2,455,364
7,416,631
21,318,469

765,755
390,000
495,350
906,621
3,141,533
27,201
295,468
48,216
742,554
6,812,700

758,127
387,501
433,200
666,810
3,150,883
82,912
188,12133,156859,178
6,559,890

924,800
504,822599,900
466,272

47,15836,14639,333
482,410
29,3352,027,860
8,840,561

39,333
192,355
9,357
1,343,365
7,903,256

(Thousands of yen)
As of March 31, 2023
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Accumulated retired benefit adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

7

As of December 31, 2023

3,218,000
2,840,496
9,851,724△2,422,510
13,487,710

3,218,000
2,840,416
8,886,840△2,414,581
12,530,675

1,848,510△8,87958,547
1,898,179－
15,385,889
24,226,451

855,184△8,90338,255884,537－
13,415,213
21,318,469

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)(Thousands of yen)
Nine months ended
December 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Interest on marketable securities
Gain on investments in investment partnerships
Foreign exchange gains
Subsidy income
Gain on reversal of provision for directors’ stock
benefits
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Loss on investments in investment partnerships
Loss on valuation of marketable securities
Foreign exchange losses
Settlement money
Miscellaneous expenses
Total non-operating expenses
Ordinary income (loss)
Extraordinary Income
Gain on sale of non-current assets
Gain on business transfer
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on valuation of investment securities
Total extraordinary losses
Net income (loss) before income taxes
Income taxes - current
Income taxes - deferred
Net income (loss)
Net income (loss) attributable to owners of parent

8

Nine months ended
December 31, 2023

11,419,587
7,113,276
4,306,310
4,518,834△212,523

10,087,158
6,247,892
3,839,265
4,332,930△493,664

138
4,825
132
569
－
42,984

57
6,628
393
7,064
415
755

－

6,853

23,253
71,903

21,464
43,631

5,919
22,172
10,457
8,840
614
－
594
48,598△189,217

6,564
72,899
6,003
2,913
－
11,155
12,909112,447△562,480

4,882
－
4,882

2,327
25,00027,327

1,901
－
1,901
△186,236
83,768△15,646△254,358△254,358

0
1,784
1,784
△536,937
48,460268,602△854,001△854,001

(Consolidated Statement of Comprehensive Income)(Thousands of yen)
Nine months ended
December 31, 2022
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Retirement benefit adjustment (before any applicabletax effect)
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

9

Nine months ended
December 31, 2023

△254,358△854,001

753,273－△993,325
△23

3,649

△20,292

756,922502,564△1,013,641△1,867,643

502,564△1,867,643－－

(3) Notes Concerning the Consolidated Financial Statements(Note Concerning the Premise of a Going Concern)
Not applicable(Note in the Case of Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Segment Information)
Ⅰ 3rd quarter of the previous consolidated fiscal year/FY 2022 (April 1, 2022 through Dec. 31, 2022)
1. Information on sales and profit or loss by reportable segment(Unit: thousands of yen)

Adjustment
Amount recorded inamountConsolidated Financial(Note 1)
Statements (Note 2)

PlatformContent

Total

1,608,809

9,737,415

11,346,225－

11,346,225－

73,36273,362－73,362

1,608,809

9,810,777

11,419,587－

11,419,587

1,608,809

9,810,777

11,419,587－

11,419,587

292,552

42,307

334,859△334,859－

Total

1,901,361

9,853,084

11,754,446△334,859

11,419,587

Segment income or segment loss (△)△219,046

287,953

68,907△281,430△212,523

Net sales
Goods transferred at a single point in
time
Goods transferred over a period oftime
Revenue from contracts withcustomers
Sales to external customers
Intersegment sales or transfer amountNotes: 1. The segment income or loss adjustment amount of △ ¥281,430 thousand consists of ¥9,348 thousand in eliminatedintersegment transactions and △¥290,779 thousand in companywide expenses not allocated to reportable segments.
2. Segment income amounts are adjusted with operating income in the quarterly consolidated profit and loss statement.

2. Information regarding impairment loss on fixed assets or goodwill by segment reported
This information is omitted since there is no critical impairment loss on fixed assets or significant
change in amount of goodwill.
3. Matters related to changes in reportable segments, etc.
Historically, the Faith Group has had three reportable segments: the Content Business, the Point
Service Business, and the Label Business. However, after reassessing its business management
decision-making and performance classifications, with effect from the first quarter of the current
fiscal year, the Group has begun operate under two reportable segments: the Platform Business andthe Content Business. Moreover, since Faith Inc. now manages the entire Faith Group following the
integration of the Group’s offices, the personnel and other expenses of the Company's Administration
Department, which were previously included under the Content Business, are now included in theadjustment amount as companywide expenses effective from the first quarter of the current fiscal year.
In addition, segment information for the cumulative third quarter of the previous fiscal year isdisclosed based on the reporting segment classifications resulting from this change.

10Ⅱ 3rd quarter of the current consolidated fiscal year/FY 2023 (April 1, 2023 through Dec. 31, 2023)
1. Information on sales and profit or loss by reportable segment(Unit: thousands of yen)

Adjustment
Amount recorded inamountConsolidated Financial(Note 1)
Statements (Note 2)

PlatformContent

Total

1,523,945

8,475,109

9,999,055－

9,999,055－

88,102

88,102－

88,102

1,523,945

8,563,212

10,087,158－

10,087,158

1,523,945

8,563,212

10,087,158－

10,087,158

354,52875,871

430,400△430,400－

Total

1,878,474

8,639,084

10,517,558△430,400

10,087,158

Segment income or segment loss (△)△178,531

26,321△152,209△341,454△493,664

Net sales
Goods transferred at a single point in
time
Goods transferred over a period oftime
Revenue from contracts withcustomers
Sales to external customers
Intersegment sales or transfer amountNotes: 1. The segment income or loss adjustment amount of △ ¥341,454 thousand consists of ¥2,202 thousand in eliminatedintersegment transactions and △ ¥343,656 thousand in companywide expenses not allocated to reportable segments.
Corporate expenses mainly consist of expenses related to the Company's administrative departments that do not belong to
any reportable segment.
2. Segment income or loss amounts are adjusted with operating loss in the quarterly consolidated profit and loss statement.

2. Information regarding impairment loss on fixed assets or goodwill by segment reported
This information is omitted since there is no critical impairment loss on fixed assets or significant
change in amount of goodwill.
3. Matters related to changes in reportable segments, etc.
Not applicable.

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