BRIEF STATEMENT OF CONSOLIDATED FINANCIAL RESULTS
FOR THE 3rd QUARTER OF THE FISCAL YEAR ENDING MARCH 2009
February 13, 2009
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, 2009
Amounts are rounded down to the nearest JPY 1 million.

1. Results for the 3rd quarter of the year ending March 2009
(April 1, 2008 through December 31, 2008)(1)

Consolidated financial results
Those figures in “%” show increased/decreased ratio compared with the previous 3rd quarter of fiscal term

Net Sales

Operating Profit%

Recurring Profit%

Net Profit

Millionsof yen%39,621

―

1,319

―

961

―

206

―

36,320

13.1

1,647

60.3

1,479

63.7

1,306

―

Q3 of the year ending
March 2009
Q3 of the year ended
March 2008

Millionsof yenMillionsof yenNet Profit per Share

Diluted Net Profit per shareYen
Q3 of the year ending March 2009
Q3 of the year ended March 2008%

Millionsof yenYen
174.64
1,097.33

174.27
1,079.66(2) Consolidated financial position
Total Assets

Net Assets

Ratio of Equity
CapitalNet Assets per Share

Millions of yen

Millions of yen

32,882

15,501%
43.5

Yen
12,449.48

36,174

16,54541.5

12,612.00

Q3 of the year
ending March 2009
the year ended
March 2008

Reference: Equity Capital: the 3rd quarter of the fiscal year ending March 2009: 14,292 million yen/ the fiscal year ended
March 2008: 15,013 million yen.

2. Dividends
Dividends per share(Record dates)

1st QuarteryenYear Ended
March 2008
Year Ending
March 2009

3rd Quarter

Interim

-

50

yen
00

-

50

00

Year-end

yen
-

50

―

―

yen
00

Total(Annual)

100

yen
00

―

Year ending March
―
―
50
00
100
00
2009 (Forecast)
Note: Forecasts for dividends have not modified at the announcement of the financial statements for FY08 3Q.

1

3. Forecasts for the consolidated business results for the year ending March 2009
(from April 1, 2008 to March 31, 2009)
The figures in “%” show increased/decreased ratio compared with the previous fiscal year and the previous interim result.

Net SalesYear ending
March 2009

Operating Profit

Recurring Profit

Net Income

Millions ofyen%Millionsof yen%Millions of yen%

Millionsof yen%54,,600

8.8

1,000

△55.9

800

△58.1

100

△81.4

Net Income per
Share
Yen
85

12

Note: Forecasts for the consolidated business results have not modified at the announcement of the financial statements for
FY08 3Q.

4. Others(1) Changes in the significant subsidiaries (Accompanying changes in scope of the consolidation): None(2)

Adoption of simplified accounting practices or specific procedures in preparation of the quarterly
consolidated financial reports: Applicable* Note: For details, please see page.5 “Qualitative information and financial statements” 4. Others(2).

(3)

Changes in accounting policy, procedure, and presentation in preparation of the quarterly
consolidated financial reports (Described in the “Changes in preparing for consolidated financial
statements and summary of significant accounting polices”)(3)-1. Changes accompanying revisions of accounting standards, etc.:Applicable(3)-2. Changes other than the above: Applicable* Note: For details, please see page.5 “Qualitative information and financial statements” 4. Others(3).

(4)Outstanding shares (common shares)(4)-1. Outstanding shares at the end of the fiscal years (including treasury shares):
The 3rd quarter of the fiscal year ending March 2009: 1,196,000 shares, the fiscal year ended March 2008:
1,196,000shares(4)-2. Treasury shares at the end of the fiscal years:
The 3rd quarter of the fiscal year ending March 2009: 47,950 shares, the fiscal year ended March 2008: 5,580
shares(4)-3. Average number of shares during the accounting period
The 3rd quarter of the fiscal year ending March 2009: 1,183,649 shares, the fiscal year ended March 2008:
1,190,420 shares*Note for utilizing business forecasts, and other special instruction(1) This document contains projections of our company’s future performance. These are estimates by the management ofFaith based on currently available information. There are potential risks and uncertainties that may affect the results. Pleasebe advised that actual performance may differ significantly from the forecast. Please refer to page. 5 “3. Qualitative
information regarding forecast of consolidated financial results” when utilize business forecasts.
(2) Effective from the fiscal year under review, new accounting standards (12th edition) and its implementation guidance (14thedition) have applied. The quarterly consolidated financial statement is based on the quarterly consolidated financial
standards.

2

[Qualitative information and financial statements]
1. Qualitative information regarding consolidated operating results
During the first three quarters of the consolidated fiscal 2008, the nine months period ended December 31,
2008, various improvements were observed toward the establishment of network environment which allows
users to access content in high-capacity and with high-definition. For example, mobile phone offers anincreasing range of functions, flat-rate packets plan for mobile phone charges have widely spread, and Next
Generation Network (NGN) services are commercialized. At the same time, various content ranging fromvideo, music, online game to lifestyle-related information such as medical and health are digitalized further
to cater ever diversifying market needs. The launch of internet connected TV was another marked event.
The overall environment in terms of network, software and hardware, have been improving, which allows
users to enjoy content more easily.
Against this backdrop, in anticipation of the trends of the growing Japanese content distribution market,
Faith Group has actively taken part in creating a new content distribution structure through acquisitions andbuilding partnership with other leading companies.
The Group promotes development of new multi-platform, multi-content markets, in which a wide range ofcontents are distributed to any kind of networks or terminal devices. The Group has been promoting to
improve users’ environment for content distribution services utilizing NFRM® (Near Field Rights
Management™) service, a proprietary viewing rights authentication technology and also applicable contents.
The Group also established a new distribution system through which content creators are able to deliver
their content such as music and video directly to the consumers. It enabled the distribution of content toboth Japanese and global markets. In the medical and health information distribution business, the Grouplaunched a full-scale operation of a medical service using electronic recording system that satisfies the
medical data storing guideline under the new health care system in Japan.
In the electronic money field, with rising demand in the market, the volume of payment settled in theGroup's “WebMoney” showed further increase. One factor behind this result was that “WebMoney” hasstrength in online game settlement, a main category of contents distributed to PC, and it maintained highmarket share during the period under review. In addition, the acquisitions of new affiliated stores andjoint promotional campaign with existing affiliated stores led to this result.
As a result, consolidated net sales for the first nine months of fiscal 2008 increased by 9.1% year on year to¥39,621 million led by the continuous high growth in the Electronic Money Business. Operating profit
was ¥1,319 million, down 19.9% year on year, and recurring profit was ¥961 million, down 35.0% year on
year, mainly due to the upfront investments on the creation of new multi-content distribution markets on
the multi-platforms. Net profit decreased by 84.2% year on year to ¥206 million because of the absence of
extraordinary profit that was recorded in the same period of the previous fiscal year.
Information on each business segment is as follows:<Contents Business>
During the consolidated nine months period under review, the Group has expanded and enhanced its
operating base through activities such as building partnership with other leading companies.
1) In April 2008, a consolidated subsidiary, GIGA NETWORKS, INC. launched a NFRM™ corresponding
content distribution site called “GIGA Miranca” both for mobile and PC. The number of content available
on this site reached about 2,000 as of December 31, 2008, meanwhile the initial number of the titles was
about 1,000. The Group produced videos in cooperation with Desperado, Inc., a consolidated subsidiary,or other TV station, and executed a new business scheme of video production, including video distributionin addition to broadcasting and DVD sales.
2) In August 2008, in cooperation with MySpace Japan, Brave, Inc., a consolidated subsidiary, launched“viBirth” as an official online store on MySpace, one of the largest Social Networking Service (SNS) in theworld. At viBirth, the Group provides support to music and video creators developing their businesses.
3) In the same month, KAZAS Channel™, a portal site corresponding to NFRM™ service, has been
pre-installed on the digital terrestrial tuner for PC. On the DTTV tuner, “ROBRO”, an integral
3application system, is also mounted, to enable both the terrestrial digital channels and web-sites accessible
via one browser. Also, infrared data communication, the most common communication method among
consumer electronics, was equipped on “ROBRO” to transmit various contents.
4) In September 2008, a film produced by Desperado, Inc., a consolidated subsidiary, hit screens andachieved good results. "PACO and the Magical Book" ranked in the top 10 for over two-month span.
5) In October 2008, the Group launched a full-scale operation of “Pocket Karte,” a medical records
retrieval service in electronic format via mobile phone. The Group had been conducting a test service of
Pocket Karte in cooperation with WILLCOM, Inc. and other companies since June 2008.
6) Also in October 2008, Brave launched "vitCrew". By pasting vitCrew code into individual websites
and blogs, the site managers are able to distribute pay-content online. In the following month, Bravelaunched "CREATORS Lab" to provide a comprehensive support to video creators.
7) In December 2008, GIGA NETWORKS, INC., a consolidated subsidiary, started collaboration with
ISAO CORPORATION under CSK Group. The alliance formed between the top two companies in themobile video distribution business has expanded its users reach.
As a result, net sales in the Contents Business totaled ¥9,741 million, down 18.4% year on year. This
figure resulted from a decline in revenues mainly due to disposal of overseas content distribution
subsidiaries despite strong sales in Japan helped by the aggressive business expansion through partnerships
with other companies and other measures. Operating profit fell by 17.2% year on year to ¥967 million
caused by the increase of upfront investment for formulation of network system applicable tomulti-platforms and multi-content, and also for production and procurement costs of content suitable for the
new distribution system.

<Electronic Money Business>
At the end of September 2008, the number of broadband subscribers in Japan reached over 29.75 million
according to the Information and Communications Statistics Database issued by Japanese Ministry ofInternal Affairs and Communications. Demands for electronic money continued to increase in the digitalcontent market for the purchase of online game, the mainstay of the electronic money business, as well as
mobile content and other content such as mobile content and video. Against this backdrop, the volume of
online payment settled in “WebMoney” sharply increased, since it provided easy, secure and convenientsolutions.
1) In April 2008, the Group launched the sale of “WebMoney” at Seven-Eleven stores, the largest
convenience store chain.
2) In June 2008, the Group started advertisement solution service for PC, “WebMoney Point Park”, whichenables users to earn “WebMoney” just by applying to campaign.
3) In cooperation with one of the largest game portal in Japan, sales of the partner brand’s electronic money,“funcash WM”, in September 2008.
4) A mobile version of “WebMoney Point Park” has started in October 2008.
5) In the same month, the Group launched membership service, “WebMoney Wallet Plus”, which enables
users to settle secure payment on the internet and also gives special points and opportunity to exchange
points for exclusive gift items.
The Group vastly increased amount of settlement, by acquisitions of new affiliated stores and sales
promotional campaign with existing stores, in addition to those new services.
As a result, net sales in the Electronic Money Business increased 24.2% year on year to ¥28,852.
Operating profit fell by 27.3% year on year to ¥303 million due to the development and operation of newservices and enforcement of management structure.
<Other Businesses>
Factors such as revenues from the point-card system business led sales in other businesses to ¥1,027
million decrease by 11.3% year on year. Operating profit was ¥61 million, down 19.7% year on year.
*Figures for the first nine months of the consolidated fiscal 2007 and the year on year change between thefirst nine months of the consolidated fiscal 2007 and 2008 are provided in Qualitative information
regarding consolidated operating results for reference purposes.

42. Qualitative information regarding consolidated financial positions(1) Positions of assets, liabilities and net assets
Total assets as of the end of the 3rd quarter of FY2008 decreased by ¥3,291 million from the end of theprevious consolidated fiscal year to ¥32,882 million, due to the decrease in amortization of goodwill causedby write-off, and in current price of investment securities.
Liabilities decreased by ¥2,248 million from the end of the previous consolidated fiscal year to ¥17,381, by
repayment of dept and reduction of reserve for subsidiaries losses.
Net assets decreased by ¥1,043 million against the end of the preceding consolidated fiscal year to ¥15,501
million. Shareholders’ equity ratio advanced by 2.0 percent point from the end of March 2008 to 43.5%.
(2) Positions of cash flows
Cash and cash equivalents of the 3rd quarter of FY2008 decreased by ¥1,421 million from the end of theprevious consolidated fiscal year to ¥9,192 million.
Cash flow from operating activities was ¥2,693 million of excess of income despite accounts receivable
increased ¥931 million, due to ¥464 million of profit before income taxes, ¥2,019 million of goodwill
amortization and ¥373 million of depletion.
Cash flow from investing activities was ¥1,476 million of excess over expenditure caused by ¥636 millionof expenditure for acquisition of tangible fixed assets and software, ¥381 million of loan receivable and¥570 million of repayment of fixed deposit.
Cash flow from financing activities was ¥2,325 million of excess over expenditure due to ¥1,547 million of
expenditure repayment of borrowed money and ¥297 million of expenditure on repurchased stock.

3. Qualitative information regarding forecast of consolidated financial results

Since operating results for the 3rd quarter of FY2008 have advanced as planned compared with forecasts
released on November 14, 2008 in the BRIEF STATEMENT OF CONSOLIDATED FINANCIAL
RESULTS FOR THE 3rd QUARTER OF THE FISCAL YEAR ENDING MARCH 2009, the Company
has not revised forecasts for consolidated operating results for fiscal 2008.

4. Others(1) Changes in major subsidiaries during the 3rd quarter of FY2008 (Changes in specific subsidiaries
causing change in the scope of consolidation): None
(2) Adoption of simplified methods in accounting methods(Simplified methods in accounting methods):
1. Estimate for possible losses on loans
Estimates for possible losses on loans are maintained at the estimated rate of losses for the previous
consolidated fiscal 2008 unless there are significant changes.
2. Depreciation
As for tangible fixed assets that are depreciated by the declining-balance method, the depreciation
expense is computed by the proportional distribution of the depreciation expense for the fiscal year.
(Specific procedures in preparation of the quarterly consolidated financial reports)
Tax expenses are calculated by multiplying the amount of quarterly net profit before tax deduction andthe estimated effective tax rates, which is estimated as an effective tax rates applied to the tax effectaccounting, by the amount of consolidated net profit including the 3rd quarter of the financial period andbefore tax deduction.
(3) Changes in accounting policy, procedure, and presentation in preparation of the quarterly consolidated
financial reports(Described in the “Changes in preparing for consolidated financial statements and summary ofsignificant accounting polices”) : Applicable
1. Effective from the fiscal year under review, new accounting standards (12th edition) and its
implementation guidance (16th edition) have applied. The quarterly consolidated financial statement isbased on the quarterly consolidated financial standards.
2. Inventories held for the purpose of ordinary sales were previously evaluated at cost mainly using thetotal average method. Effective from the 1st quarter ended June 30, 2008, Faith and its consolidated
subsidiaries adopted the “Accounting Standard for Measurement of Inventories” (ASBJ Statement
No.9; July 5, 2006), and these inventories are measured by means of the cost method mainly based on
the total average method, which evaluates the amount of the inventories shown on the balance sheet
5

by writing them down based on their decrease in profitability. The change in methods will not effecton profit and loss.
3. Adoption of accounting standard for lease transactions
With respect to finance lease transactions that do not transfer ownership, previously Faith usedaccounting methods in accordance with those for lease transactions. However, because AccountingStandard for Lease Transactions (Accounting Standards Board of Japan Statement No.13, revised
March 30, 2007) and Guidance on Accounting Standard for Lease Transactions (AccountingStandards Board of Japan Guidance No.16, revised March 30, 2007) can be adopted for quarterly
consolidated financial statements from fiscal years beginning on or after April 1, 2008, from the 1stquarter Faith adopted that accounting standard and implemented accounting treatments in adherencewith those for normal sales transactions.
In addition, regarding the depreciation and amortization method for lease assets related to financelease transactions that do not transfer ownership to the lessee, Faith has adopted a straight-line methodthat assumes the years of service lives are lease periods and residual values are zero.

65. Consolidated Financial Statement(1) Consolidated Balance Sheet for the 3rd Quarter(Unit: thousands of yen)the 3rd quarter of FY2008(As of December 31, 2008)
Amount(Assets)
Current assets
Cash and deposits
Accounts and notes receivable
Marketable securities
Commercial products
Products in progress
Primary materials and inventory goods
Accrued refund income tax
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
Expenditure for stock delivering prescription
Total assets(Liabilities)
Current liabilities
Trade notes and Accounts payable
Short-term loans
Income taxes payable
Allowance for costs of card use
Allowance for points
Allowance for bonus payments
OthersTotal current liabilities
Fixed liabilities
Long-term liabilities
Deferred tax liabilities
Allowance for retirement benefits
Reserve for subsidiaries losses
OthersTotal fixed liabilities
Total liabilities

7

FY 2007(As of March 31, 2008)
Amount11,083,243
7,768,164
1,739,125
482,567
44,262
21,077
486,510528,451
733,634△247,424
22,639,609

13,424,006
6,861,259
250,227
202,489
269,123
17,113516,982
763,972
588,379△209,568
22,683,987

519,611660,3125,719,026
741,3826,460,409

7,607,662
922,715
8,530,378

2,520,640
835,096△106,922
3,248,814
10,228,834
14,53532,882,983

3,490,977
920,572△134,516
4,277,033
13,467,724
22,56736,174,279

6,245,767
2,029,928
128,635
3,368,648
384,189
58,494
1,215,698
13,431,361

5,922,813
2,529,928
136,2212,873,200
468,391
87,445
1,973,507
13,991,508

3,061,030
572,074
63,626
252,932
3,949,663
17,381,025

4,083,472
522,858
49,229300,561
681,599
5,637,720
19,629,228

the 3rd Quarter of FY2008(As of December 31, 2008)
Amount(Net assets)
Shareholder's equity
Common stock
Capital surplus
Retained earning
Treasury stock
Total shareholder's equity
Valuation and translation adjustments
Net unrealized gains on investment securities
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liability and net assets

8

FY2007 (As of March 31, 2008)
Amount3,218,000
3,708,355
7,701,825△651,377
13,976,803

3,218,000
3,708,355
7,694,895△354,269
14,266,980

691,133△375,309
315,824
1,209,330
15,501,957
32,882,983

799,398△52,807746,591
1,531,478
16,545,050
36,174,279

(2) Consolidated Profit and Loss Statement for the 3rd Quarter
3rd Quarter of this fiscal year (April 1, 2008 through December 31, 2008)(Thousands of yen)the 3rd Quarter of FY2008(As of December 31, 2008)
39,621,547
31,083,534
8,538,013
7,218,810

Net sales
Cost of Sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Interest securities
Miscellaneous receipts
Total non-operating profit
Non-operating expenses
Interest expense
Investment profit on equity method
Foreign exchange loss
Miscellaneous expense
Total non-operating expenses
Recurring profit
Extraordinary profit
Gain on disposal of investment securities
Reversal of allowance for subsidiaries liquidation loss
OthersTotal extraordinary profit
Extraordinary loss
Loss from investment securities valuation
Loss from disposal of business
Amortization of goodwill
OthersTotal extraordinary loss
Quarterly net profit before income taxes
Corporate, local, and business taxes
Income or Loss on minority shareholders
Net profit during the accounting period

1,319,203
45,04730,9789,889
21,498
107,41361,865
174,159
193,091
35,674
464,790
961,825
141,606
95,96856,797294,373
171,698
287,650
294,976
37,109791,434
464,764
351,318△93,267
206,7139

(3) Consolidated Statements of Cash Flowsthe 3rd Quarter of FY2008(April 1, 2008 through December 31, 2008)
Item

Amount, thousand of yen

Cash flow from operating activities
Quarterly profit before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Increase in allowance for doubtful accounts
Decrease in reserve for bonus
Decrease in allowance for cost of card use
Decrease in allowance for unexercised sales promotion points
Increase in allowance for retirement benefits
Allowance for subsidiaries liquidation loss
Interest and dividends income
Interest on securities
Interest expenses
Foreign exchange gains
Gains on sale of investment securities
Valuation loss on investment securities
Loss from investment in equity method
Loss from disposal of business
Increase (decrease) in accounts and notes receivable-trade
Increase (decrease) in inventories
Increase in accounts and notes payable-trade
Decrease (increase) in consumption taxes receivable
OthersSub-totalInterest and dividends received
Interest expenses paid
Income tax refund
Income taxes paid
Cash flow from operating activities
Cash flow from investing activities
Expenditure for deposit of time deposits
Proceeds from withdrawal of time deposits
Expenditures for acquisition of tangible fixed assets
Expenditure for acquisition of software
Expenditure for acquisition of investment securities
Proceeds from disposal of investment securities
Expenditure for loans receivable
Proceeds from collection of loans
OthersNet cash flow used in investing activities
Cash flow from financing activities
Net increase in short-term loans
Proceeds from long-term borrowing
Expenditure for repayment of long-term borrowing
Proceeds from payment from minorities
Payment of dividends
Expenditure for dividends to minorities

OthersNet cash flow used in financing activities
Effect of exchange rate on cash and cash equivalents
Net increase in cash and cash equivalents
Decrease in cash and cash equivalents result from excluded subsidiaries from consolidation
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year10464,764
373,927
2,019,312△67,056△28,951495,447△84,201
14,396△300,561△76,025△9,88961,865
179,712△141,606
171,698
174,159
287,650△931,739△59,181275,011△129,116△78,199
2,611,419
140,132△42,635
194,094△209,609
2,693,402△4,760,000
4,190,000△152,868△484,060△113,000
162,929△381,649
85,043△23,220△1,476,824△500,000
25,000△1,047,442
69,452△297,107△114,135△30,545△105,163△301,365△24,700△2,325,996△244,811△1,354,230△67,634
10,614,234
9,192,368

Effective from the fiscal year under review, new accounting standards (12th edition) and its
implementation guidance (14th edition) have applied. The quarterly consolidated financial
statement is based on the quarterly consolidated financial standards.
(4) Explanatory note regarding premise of a going concern
Not applicable(5) Segment Information
a. Business segment information
3rd quarter of the fiscal year 2008 (April 1, 2008 through December 31, 2008)(Unit: thousands of yen)Content
Eliminations Consolidate
Electronic
Other
Total
distribution/CorporatedMoneybusinesses
services
Net sales–
Sales to outside
9,741,489
28,852,649
1,027,407
39,621,547
39,621,547
customers––
Inter-group sales
153,038
5,078
158,117△158,117and transfers△158,117
Total
9,894,528
28,857,728
1,027,407
39,779,664
39,621,547△12,862
Operating profit
967,248
303,637
61,1791,332,065
1,319,203
Notes: 1.
Method of businesses segmentation: The Company and its group companies’ businesses are classified basedon the similarities of services and nature of businesses.
2.
Details of business segments

Business segment

Major business operations
Content distribution service using networks, anddevelopment and licensing of distribution platform
technologies, producing content creation
Issuance of electronic money and providing
electronic settlement platforms
Point service and other business

Contents businessElectronic Money business
Other businessesb. Geographical segment information
The 3rd quarter of this fiscal year ending March 2009 (April 1, 2008 through December 31, 2008)
Geographical segment information is omitted since net sales in Japan dominated more than 90% of total
sales.

c. Overseas sales
The 3rd quarter of this fiscal year (April 1, 2008 through September 30, 2008)
Sales result of overseas is omitted from segmental information since consolidated net sales of overseas
are less than 10% of total sales.

(6) Note for significant changes in amount of shareholders’ equity

The balance of treasury stock as of the end of the 3rd quarter of FY2008 increased by ¥297,107 thousand to¥651,377 thousand, from the end of the previous consolidated fiscal year. This is caused by the repurchase oftreasury stock executed from November 17 to December 19, under the resolution of the Board of Directors
meeting held on November 14, 200811

[Reference]

Consolidated financial Results for the 3rd quarter of the previous fiscal year
(1) Consolidated profit and loss for the 3rd quarter of previous fiscal year
the 3rd Quarter of FY2007(April 1, 2007 through December 31, 2007)
Amount (Thousands of yen)
I. Net sales
II. Cost of Sales
Gross profit
III.Selling, general and administrative expenses
Operating profit
IV. Non-operating profit
1. Interest received
2. Interest on securities
3. Exchange profit
4. Others
V. Non-operating expenses
1. Interest paid
2. Investment loss on equity method
3. Others
Recurring profit
VI. Extraordinary profit
1.Gain on disposal of fixed assets
2.Gain on transfer of operation
3.Gain on sale of subsidiaries
4.Change of scope of equity methodVII. Extraordinary loss
1.Loss from disposal of fixed assets
2.Loss from investment securities valuation
3.Transfer to allowance for doubtful debt
4.Loss from entrusted development
5 Prior period adjustment
6.Others
Quarterly net profit before income taxes
Corporate, local, and business taxes
Income or Loss on minority shareholders
Quarterly net profit or loss

36,320,008
26,514,290
9,805,718
8,158,291
1,647,426
345,170
93,49921,573
127,807102,289
512,934
140,979
330,484
41,4701,479,662
1,610,876
228,505
835,896
140,983
405,490
348,468
31,930106,022
10,000160,000
38,682
1,832
2,742,071
1,281,093
154,689
1,306,288(2) Segment Information
Business segment information
3rd quarter of the previous fiscal year (April 1, 2007 through December 31, 2007)(Unit: thousands of yen)Content
Electronic
Other
Eliminations Consolidate
Total
distribution
Moneybusinesses/Corporatedservices
Net sales
–
(1)
Sales
to
11,934,520
23,227,505
1,157,981
36,320,008
36,320,008
outside customers––(2)
Inter-group
149,528
4,753
154,282△154,282
sales and transfers
Total
12,084,049
23,232,259
1,157,981
36,474,290△154,282 236,320,008
Operating profit
1,168,175
417,785
76,152
1,662,113
1,647,426△14,686
Notes: 1.
Method of businesses segmentation: The Company and its group companies’ businesses are classified basedon the similarities of services and nature of businesses.
2.
Details of business segments

Business segment

Major business operations
Content distribution service using networks, anddevelopment and licensing of distribution platform
technologies, producing content creation
Issuance of electronic money and providing
electronic settlement platforms
Point service and other business

Contents businessElectronic Money business
Other businesses
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