BRIEF STATEMENT OF CONSOLIDATED FINANCIAL RESULTS
FOR THE 2nd QUARTER OF THE FISCAL YEAR ENDING MARCH 2013
[Japanese Standards]

November 13, 2012
Faith, Inc. (Stock code 4295, Listed on TSE 1st section)(URL http://www.faith.co.jp/)
Representative: Hajime Hirasawa, CEO/President
Contact: Jiro Saeki, CFO/Director Tel: +81-3-5464-7633
Date of Submission of Securities Report: November 14, 2012
Starting Date of the Dividend Payment: December 10, 2012
Preparation of Supplementary Materials for Quarterly Financial Results: Applicable
Information Meeting for Quarterly Financial Results to be Held: Applicable (for Institutional Investors andAnalysts)
Amounts are rounded down to the nearest JPY 1 million.

1. Results for the 2nd Quarter of the Year Ending March 2013
(From April 1, 2012 to September 30, 2012)(1) Consolidated Operating Results
Those figures in “%” show increased/decreased ratio compared with the previous 1st quarter of fiscal term

Net Sales
Millionsof yenQ2 of the year ending
March 2013
Q2 of the year ending
March 2012

Operating Profit%

Millionsof yenRecurring Profit
Millionsof yen%Net Profit%

Millionsof yen

%

3,413

△88.5

564

△48.0

569

△50.7

509

△91.7

29,787

△21.8

1,084

6.6

1,154

6.6

6,148

985.1

(Note) Comprehensive income: 2nd quarter of the fiscal year ending March 2013: ¥455 million (△92.9%); 2nd quarter of the fiscal year
ending March 2012: ¥6,442 million (872.3%)

Net Profit per ShareQ2 of the year ending
March 2013
Q2 of the year ending
March 2012

Diluted Net Profit per ShareYen
443.82

Yen—

5,355.72

5,353.05(2) Consolidated Financial Position
Total Assets

Q2 of the year
ending March 2013
Year ended March2012

Ratio of Equity Capital

Net Profit Per Share

Millions of yen

Net Assets
Millions of yen%

yen

22,18020,01790.2

17,426.09

23,518

19,61883.3

17,066.74

Reference: Equity Capital: 1st quarter of the fiscal year ending March 2013: 20,006 million yen; the fiscal year ended March 2012: 19,593
million yen

2. Dividends
Dividends per share(Record dates)

Year ending March 2012
Year ending March 2013
Year ending March 2013
(Forecast)

1st Quarter

yen
―
―

3rd Quarter

InterimYear-end

Total

yen
50.00

yen
―

yen
50.00

yen
100.00

50.00

―

50.00

100.00Note: Forecasts for the dividends have not modified at the announcement of the financial statements for FY2012 Q2.

13. Forecasts for the Consolidated Business Results for the Year Ending March 2013
(from April 1, 2012 to March 31, 2013)
The figures in “%” show the increase/decrease ratio compared with the previous fiscal year.

Net SalesYear ending
March 2013

Operating Profit

Recurring Profit

Net Income

Millionsof yen%Millionsof yen%Millionsof yen%Millions of yen%

Net Income
per Share
Yen

6,800

△79.7

600

△61.9

610

△65.3

550

△91.7

479.07

Note: Forecasts for the consolidated business results have not been modified at the time of announcement of the financial statements for
FY2012 Q2.

※ Notes(1) Changes in significant subsidiaries (accompanying changes in scope of consolidation): None
Newly added subsidiaries: 0 companies (subsidiary’s name:)Removed subsidiaries: 0 companies (subsidiary’s name:)(2) Adoption of simplified accounting practices or specific procedures in preparation of the quarterly
consolidated financial reports: Applicable* For details, please refer to “2. Summary Information, (2) Adoption of Simplified Accounting Methods in the
Preparation of Quarterly Financial Statements” on page 4 of the accompanying material.

(3) Changes in accounting policy, changes in accounting estimates, and restatements(2)-1. Changes accompanying revisions of accounting standards, etc.: Applicable(2)-2. Changes other than the above: None(2)-3. Changes in accounting estimates: Applicable(2)-4. Restatements: None
* Changes are subject to Article 10, Clause 5 of “Ordinance on Terminology, Forms and Preparation Methods ofQuarterly Consolidated Financial Statements”. For details, please refer to “2. Summary Information, (3) Changes in
Accounting Policy, Changes in Accounting Estimates, and Restatements” on page 4 of the accompanying material.

(4) Outstanding shares (common shares)(4)-1. Outstanding shares at the end of the fiscal years (including treasury shares):
The 2nd quarter of the fiscal year ending March 2013: 1,196,000 shares
The fiscal year ending March 2012: 1,196,000 shares(4)-2. Treasury shares at the end of the fiscal years:
The 2nd quarter of the fiscal year ending March 2013: 47,950 shares
The fiscal year ending March 2012: 47,950 shares(4)-3. Average number of shares at the interim accounting period
The 2nd quarter of the fiscal year ending March 2013: 1,148,050 shares
The 2nd quarter of the fiscal year ending March 2012: 1,148,050 shares* Indication of auditing procedures implementation status
This financial results report is exempt from quarterly review procedures under Japan’s Financial Instruments and Exchange
Law. As of the time of disclosure of this report, the auditing procedure based on the Financial Instruments and Exchange Law
has not been completed.
* 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 1. (3) “Qualitative Information regarding the Forecast of Consolidated Financial Results”
on page 3 of the accompanying material.
(To obtain supplemental documents relating to financial results)
Supplemental documents related to the Company’s quarterly and other financial results are posted on the company website.
(URL: http://www.faith-inc.com/ir/index.html )2

Contents
1. Qualitative Information regarding Quarterly Performance and Financial Position ·························(1) Qualitative Information regarding the Consolidated Operating Results ····································(2) Qualitative Information regarding the Consolidated Financial Position ····································(3) Qualitative Information regarding the Forecast of Consolidated Financial Results ···················

2
2
2
3

2. Summary Information ·················································································································(1) Changes in Major Subsidiaries during the 2nd Quarter······························································(2) Adoption of Simplified Methods in the Preparation of Quarterly Financial Statements ············(3) Changes in Accounting Policy, Changes in Accounting Estimates, and Restatements ··············

4
4
4
4

3. Consolidated Financial Statements ······························································································ 5(1) Consolidated Balance Sheet ···································································································· 5(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ····· 7(Statement of Income for the Consolidated Cumulative 2nd Quarter) ………………………… 7(Statement of Comprehensive Income for the Consolidated Cumulative 2nd Quarter) ……… 8(3) Consolidated Statement of Cash Flows for the 2nd Quarter …………………………………
9(4) Explanatory Note regarding Premise of a Going Concern ························································ 11(5) Note for Significant Changes in Amount of Shareholders’ Equity ············································ 11(6) Segment Information ·············································································································· 11

1. Qualitative Information regarding Quarterly Performance and Financial Position(1) Qualitative Information regarding the Consolidated Operating Results
The mobile phone and smartphone market in Japan has now reached maturity with the number ofindividual subscriptions exceeding 120 million (*1). Smartphone shipments are continuing at a highlevel, totaling approximately 28 million units and accounting for 64.5% of total mobile phone shipments
in FY 2012 (*2). Worldwide, in line with the rapid proliferation of smartphone and tablet devices,increasing data communication compatibility, and the accelerated growth of LTE services, the mobile
phone and smartphone market now encompasses more than 6 billion subscribers (*2), and thedevelopment of new services and content distribution systems to meet evolving user needs is becoming
more essential than ever.
(*1) Research by the Telecommunications Carriers Association, (*2) Research by IDC Japan
Against the background of this highly diversified market environment, based on its Multi-Content andMulti-Platform Strategy of creating an environment that allows people to enjoy a wide diversity ofcontents whenever and wherever they choose, the Faith Group has been pouring its energies intocreating and consolidating high-quality contents and establishing a new system for delivering them tousers.
As a result of the above factors, and in line with the disposal of the Company’s consolidated subsidiary
WebMoney Corporation in July 2011, net sales for the 2nd quarter of the fiscal year ending March 2013
decreased by 88.5% compared with the same term of the previous fiscal year to ¥3,413 million,
operating profit decreased by 48.0% year on year to ¥564 million, recurring profit decreased by 50.7%
year on year to ¥569 million, and net profit decreased by 91.7% year on year to ¥509 million.
Information on each business segment is as follows. In addition, from the current 1st quarter
consolidated accounting period, changes have been made to the composition of the reported segments.
Accordingly, regarding year-on-year comparisons, figures for the same period of the previous fiscal
year have been changed to reflect the new reported segments and allow comparisons with figures for thepresent fiscal year.
<Content Business>
During the period under review, the Faith Group continued its efforts to establish a new framework forcontent distribution and expand and strengthen its new business operations base.
Among the most noteworthy developments, Catch Media Japan, Inc.—a joint venture between Faith,Inc. and the US company Catch Media, Inc.—was established as the exclusive provider of thecloud-type content distribution solution Play Anywhere® in Japan, and began its distribution businessusing this solution on April 2, 2012. Also, a DVD of episodes of the TV show YONPARA (broadcast
on TBS between October 2011 and March 2012 and featuring Not Yet, a subunit of the all-female
Japanese pop group AKB48) was released and became a popular topic of conversation. Not Yet is a unit
on which Faith has worked together with Nippon Columbia, Ltd. New artists making their debuts from
Future RECORDS, Inc., a company jointly established by Faith and Nippon Columbia, included reico,whose single “Shining” is used as an image song for Shiseido’s “WHITE LUCENT” brightening
skincare products, and PafeOke, whose debut single “Asian Breeze” is a power play song of Nippon
Television Network’s “Happy Music” program. In addition, the mobile video application service FaRao
TV, which is equipped with a function that allows users to recommend their favorite videos from among
a huge store of contents, started operation on October 20, 2012. Faith realized the FaRao TV concept bymaking use of its own in-house developed recommendation engine, the first engine of its kind in Japan.
With this service, users can enjoy viewing a wide range of movie trailers and short versions, etc.,
including science fiction, action, drama, horror, suspense and other genres provided by both Japaneseand international distributors and production companies free of charge. FaRao TV was employed as an
official application at the 25th Tokyo International Film Festival.
In line with of the above developments and due to a decrease in income in the ringtone melody business,
the Content Business recorded net sales of ¥2,756 million, a decline of 15.8% year on year, and an
operating profit of ¥495 million, a decline of 11.0% year on year.

2<Point Service Business>
In the Point Service Business, sales of point-card systems moved steadily, but due to a decline in the
supply of goods associated with the approaching deadline for applications for exchanges of home
appliance eco-points, this business recorded net sales of ¥656 million, a decline of 17.5% year on year,
and an operating profit of ¥68 million, a decline of 27.9% year on year.

(2) Qualitative Information regarding the Consolidated Financial Position(Analysis of Financial Position)
As of the end of the 2nd quarter of FY 2012 (September 30, 2012) the Faith Group’s total assets
decreased by ¥1,338 million compared to the end of the previous consolidated fiscal year to ¥22,180
million. This result was mainly the result of decreases in cash and deposits, and investment securities.
Total liabilities decreased by ¥1,736 million compared to the end of the previous consolidated fiscal
year to ¥2,163 million. This result was mainly due to decreases in income taxes payable and long-termloans payable in accordance with repayments.
Total net assets increased by ¥398 million compared to the end of the previous consolidated fiscal yearto ¥20,017million. This result was mainly due to the recording of a quarterly net profit, etc., despite
payment of dividends. As a result, the equity ratio increased by 6.9 percentage points to 90.2%.
(Cash Flow Situation)
Cash and cash equivalents for the consolidated cumulative 2nd quarter of the current fiscal year
increased by ¥9 million from the end of the previous consolidated fiscal year to ¥8,971 million.
Details of cash flow for the consolidated cumulative 2nd quarter and its contributory factors are as
follows:(Cash flow from operating activities)
Cash flow from operating activities amounted to an outflow of ¥668 million (compared with an inflowof ¥2,450 million for the same period of the previous fiscal year), due mainly to outgoings of ¥141
million in respect of depreciation and amortization expenses in addition to ¥601 million in net income
before income taxes, and of the elimination of ¥1,376 million in income taxes, etc., paid.
(Cash flow from investing activities)
Cash flow from investing activities amounted to an inflow of ¥976 million (compared with an outflow
of ¥5,956 million for the same period of the previous fiscal year), due mainly to outgoings of ¥3,532
million in respect of making fixed-term deposits, despite income of ¥4,490 million in respect of
reimbursement of fixed-term deposits.
(Cash flow from financing activities)
Cash flow from financing activities amounted to an outflow of ¥259 million (compared with an outflow
of ¥282 million for the same period of the previous fiscal year), due mainly to outgoings of ¥199
million in respect of repayment of long-term loans and ¥56 million in respect of dividend payments.

(3) Qualitative Information regarding the Forecast of Consolidated Financial Results
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. In addition, the current performance forecast for the full financial year is unchanged
from the revised forecast issued on November 2, 2012.

3

2. Summary Information(1) Changes in Major Subsidiaries during the 2nd Quarter
None(2) Adoption of Simplified Methods in the Preparation of Quarterly Financial Statements
Tax expenses are calculated by making a reasonable estimate of the effective tax rate after applying tax
effect accounting to the amount of quarterly net profit before tax deduction for the consolidated
financial year including the current 2nd quarter accounting period, and then multiplying the amount ofquarterly net profit before tax deduction by the current estimated effective tax rate.

(3) Changes in Accounting Policy, Changes in Accounting Estimates, and Restatements(Changes in Accounting Policy that are Difficult to Distinguish from Changes in Accounting Estimates)
In accordance with the revision of the Corporation Tax Act, from the current 1st quarter consolidated
accounting period the Company and its consolidated subsidiaries have changed the method ofdepreciation based on the revised law and applied the new method to tangible fixed assets obtained on
or after April 1, 2012.
The effects of this change on the Company’s operating profit, recurring profit and net profit before taxes
and other adjustment for the current 2nd quarter consolidated accounting period are minimal.

43. Consolidated Financial Statements for the 2nd Quarter(1) Consolidated Balance Sheet for the 2nd Quarter
FY2011(As of March 31, 2012)(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 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)
2nd Quarter of FY2012(As of Sept. 30, 2012)

13,712,005
1,106,836
239,790
2,580
8,199
7,817
28,269260,218△29,816
15,335,901

12,763,829
1,070,690
439,665
14,4795,698
6,499
28,269100,269△28,037
14,401,366

3,007,786

2,938,943

40,599382,135
422,734

28,434
372,552
400,987

4,644,916
121,294△13,734
4,752,477
8,182,998
23,518,900

4,366,308
73,726△548
4,439,486
7,779,417
22,180,783

187,933
399,984
1,424,393
208,142
73,566614,625
2,908,644

185,272
399,984
116,667
192,376
93,824394,491
1,382,617

733,384
125,729
109,389
22,846
991,350
3,899,995

533,392
107,857
119,110
20,686
781,046
2,163,664

FY2011(As of March 31, 2012)(Net assets)
Shareholder's equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholder's equity
Other accumulated comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Total other accumulated comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

6(Unit: thousands of yen)
2nd Quarter of FY2012(As of Sept. 30, 2012)

3,218,000
3,708,355
13,106,638△651,377
19,381,616

3,218,000
3,708,355
13,558,762△651,377
19,833,740

227,124△15,270
211,853
25,435
19,618,905
23,518,900

194,048△21,766
172,282
11,09620,017,119
22,180,783

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Statement of Income for the Consolidated Cumulative 2nd Quarter)(Unit: thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Interest on securities
Investment gain on equity method
Miscellaneous receipts
Total non-operating profit
Non-operating expenses
Interest paid
Investment loss on equity method
Investment partnership losses
Exchange losses
Miscellaneous expenses
Total non-operating expenses
Recurring profit
Extraordinary profit
Gain on disposal of fixed assets
Gain on disposal of investment securities
Gain on sale of shares of affiliated company
OthersTotal extraordinary profit
Extraordinary losses
Loss on disposal of fixed assets
Loss on valuation of investment securities
Loss on sale of shares of affiliated company
Oversees tax-related losses
Total extraordinary losses
Net income before income taxes
Corporate, local, and business taxes
Net income before minority interests
Minority interests in income (△)
Net profit for the quarter7

2nd Quarter of FY 2011

2nd Quarter of FY 2012

(April 1-Sept. 30, 2011)(April 1-Sept. 30, 2012)

29,787,892
25,645,715
4,142,176* 3,057,951
1,084,225

3,413,657
1,675,952
1,737,705* 1,173,614
564,090

7,878
3,392
11,56565,997
3,495
92,32917,013
3,767
1,729
—
2,062
24,573

8,573——
12,186
1,472
22,232
1,154,322

3,888
3,094
4,165
8,393
103
19,646
569,017—
28,795
6,899,538
63,0006,991,334

316
51,400——51,716

1,059—
79,565—80,625
8,065,031
1,771,504
6,293,527
144,895
6,148,632

5,015
2,573
—
11,892
19,481
601,251
106,064
495,187△14,339
509,526

(Statement of Comprehensive Income for the Consolidated Cumulative 2nd Quarter)(Unit: thousands of yen)

Net income before minority interests
Other comprehensive income
Valuation difference on other available-for-salesecurities
Share in comprehensive income of equity method
affiliates
Total other comprehensive income
Comprehensive income(Details)
Comprehensive income attributable to shareholders of
the parent company
Comprehensive income attributable to minority
interests

8

2nd Quarter of FY 2011

2nd Quarter of FY 2012

(April 1-Sept. 30, 2011)(April 1-Sept. 30, 2012)

6,293,527

495,187△28,418△32,933

177,619△6,636

149,204
6,442,731△39,570
455,616

6,297,836

469,955

144,895△14,339

(3) Consolidated Statement of Cash Flows for the 2nd Quarter(Unit: thousands of yen)

Cash flow from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Increase/decrease in allowance for doubtful accounts (△ =decrease)
Increase/decrease in reserve for bonus (△ = decrease)
Increase/decrease in allowance for utilized costs (△ =decrease)
Increase/decrease in allowance for unexercised sales
promotion points (△ = decrease)
Increase/decrease in allowance for retirement benefits (△ =decrease)
Interest and dividends income
Interest on securities
Interest paid
Gain or loss on foreign exchange (△ = gain)
Gain or loss on sale of investment securities (△ = gain)
Gain or loss on valuation of investment securities (△ = gain)
Gain or loss on sale of shares in affiliates (△ = gain)
Gain or loss on equity method (△ = gain)
Gain or loss on sale of fixed assets (△ = gain)
Gain or loss on disposal of fixed assets (△ = gain)
Increase/decrease in trade receivables (△ = increase)
Increase/decrease in inventory assets (△ = increase)
Increase/decrease in trade payables (△ = decrease)
Increase/decrease in consumption tax payable (△ = decrease)
OthersSub-totalInterest and dividends received
Interest paid
Income tax refunded
Income tax paid
Cash flow from operating activities

9

2nd Quarter of FY 2011
(April 1-Sept. 30, 2011)

2nd Quarter of FY 2012
(April 1-Sept. 30, 2012)

8,065,031
136,857
184,481

601,251
141,486
12,165△32,472△1,80920,242

20,258405,173—△9,536△15,765

10,672

9,721△11,271△11,565
8,573
11,933△28,795—△6,819,973△65,997—
1,059△1,236,134△33
2,490,926△73,278△229,874
2,816,020
17,003△8,5733,881△377,558
2,450,772△20,780△1,7293,888
10,903△51,400
2,573
—
3,094
△316
5,015
39,539△8,081△2,66827,990△97,518
677,819
33,387△3,890537△1,376,739△668,885

(Unit: thousands of yen)

Cash flow from investing activities
Expenditure for opening of term deposits
Proceeds from withdrawal of term deposits
Expenditure for acquisition of marketable securities
Expenditure for acquisition of tangible fixed assets
Expenditure for acquisition of software
Proceeds from sale of investment securities
Expenditure for acquisition of shares of affiliates
Proceeds from sale of shares of affiliates
Proceeds from sale of shares of subsidiaries in line withchanges in scope of consolidation
Proceeds from liquidation of subsidiaries
Proceeds from collection of loans receivable
Proceeds from collection of security deposits
OthersNet cash flow from investing activities
Cash flow from financing activities
Expenditure for repayment of lease obligations
Expenditure for repayment of long-term borrowing
Payment of dividends
Dividends paid to minority interests
Net cash flow from financing activities
Effect of exchange rate on cash and cash equivalents
Net increase/decrease in cash and cash equivalents (△ =decrease)
Cash and cash equivalents at beginning of year
Decrease in cash and cash equivalents in accordance with
exclusion from scope of consolidation
Cash and cash equivalents at end of year10

2nd Quarter of FY 2011
(April 1-Sept. 30, 2011)

2nd Quarter of FY 2012
(April 1-Sept. 30, 2012)△7,260,000
1,270,000△199,590△293,494△92,519
29,636△79,997
197,000△3,532,145
4,490,000—△26,385△78,946
61,400——414,654

—

—
60
2,984
54,853△5,956,412

28,31860
29,225
4,787
976,313—△199,992△56,788△25,801△282,582△11,933△2,136△199,992△56,944—△259,073△10,596△3,800,156

37,757

10,321,601

8,961,796—△28,338* 6,521,445* 8,971,215

(4) Explanatory Note regarding Premise of a Going Concern
Not applicable(5) Note for Significant Changes in Amount of Shareholders’ Equity
Not applicable(6) Segment Information
Ⅰ 2nd quarter of the fiscal year 2011 (April 1, 2011 - Sept. 30, 2011)

1. Information on sales and income (loss) by business segment reported(Unit: thousands of yen)Content
Business
Net sales
Sales to outside customers
Intersegment
transfers

sales

and

Total
Segment profit
Notes:

Electronic
Money
Business

Point
ServiceBusiness

Total

Adjustment

Consolidated
statement
amount3,274,731

25,717,225

795,935

29,787,892—

29,787,892

54,291

400—

54,691△54,691—

3,329,022

25,717,625

795,935

29,842,583△54,691

29,787,892

557,347

430,774

94,502

1,082,623

1,601

1,084,225

1. The segment profit adjustment of ¥1,601 thousand refers to the elimination of intersegment transactions.
2. Segment profit is adjusted with the operating profit 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.

Ⅱ 2nd quarter of the fiscal year 2012 (April 1, 2012 - Sept. 30, 2012)

1. Information on sales and income (loss) by business segment reported(Unit: thousands of yen)Content
Business
Net sales
Sales to outside customers
Intersegment
transfers
Total
Segment profit
Notes:

sales

andPoint Service
Business

Total

Consolidated
statement amount

Adjustment

2,756,986

656,671

3,413,657—

3,413,657

9,041

—

9,041

△9,041—

2,766,027

656,671

3,422,699△9,041

3,413,657

495,912

68,094564,006

84

564,090

1. The segment profit adjustment of ¥84 thousand refers to the elimination of intersegment transactions.
2. Segment profit is adjusted with the operating profit in the quarterly consolidated profit and loss statement.

2. Items concerning changes in reportable segments, etc.
From the current 1st quarter consolidated accounting period, the reportable segments have beenchanged from the previous two segments of the “Content Business “and “Electronic Money
Business” to the two segments of the “Content Business” and the “Point Service Business”. Thischange was made because the Company’s involvement in the Electronic Money Business ceased

11following the sale of the Company’s shareholding in its consolidated subsidiary WebMoney
Corporation on July 19, 2011, and also in view of the growing importance of the Point Service
Business, which was previously included in the “Others” segment.
In addition, segment information relating to the previous year’s 2nd quarter consolidated accounting
period has been produced based on the reportable segments for the current year’s 2nd quarter
consolidated accounting period.

3. Information regarding impairment loss on fixed assets or goodwill by segment reported
That information is omitted since there is no critical impairment loss on fixed assets or significant
change in amount of goodwill.

12