BRIEF STATEMENT OF CONSOLIDATED FINANCIAL RESULTS
FOR THE 1st QUARTER OF THE FISCAL YEAR ENDING MARCH 2011
[Japanese Standards]
August 11, 2010
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: August 12, 2010
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. Results for the 1st Quarter of the Year Ending March 2011
(From April 1, 2010 to June 30, 2010)(1) Consolidated financial results
Those figures in “%” show increased/decreased ratio compared with the previous 1st quarter of fiscal term

Net Sales
Q1 of the year ending
March 2011
Q1 of the year ended
March 2010

Q1 of the year ending
March 2011
Q1 of the year ended
March 2010

Recurring Profit%

Net Profit%

17.122

29.4

363

△14.5

374

△9.2

129

238.8

13,230

9.6

425

102.0

411

178.2

38

△73.9

Millionsof yenNet Profit
per ShareYen
113.20

Diluted Net
Profit per ShareYen
110.82

33.41

32.15

(2) Consolidated financial position
Total Assets
Q1 of the year
ending March 2011
the year ended
March 2010

Operating Profit%

Millionsof yenNet Assets

Millionsof yenRatio of Equity
Capital%Millionsof yenNet Assets per Share

Millions of yen

Millions of yen%

Yen

28,977

13,091

40.9

10,333.06

29,963

12,985

39.6

10,327.22

Reference: Equity Capital: the 1st quarter of the fiscal year ending March 2011: 11,862 million yen/ the fiscal year ended
March 2010: 11,856 million yen

2. Dividends
Dividends per share(Record dates)

1st Quarter

3rd Quarter

InterimYear ended March 2010

yen―

Year ending March 2011

―

yen
50.00

yen
―

Year-end

Total(Annual)

yen
50.00

Year ending March 2011
50.00
―
50.00
(Forecast)
Note: Forecasts for the dividends have not modified at the announcement of the financial statements for FY10 1Q.

1yen
100.00100.003. Forecasts for the Consolidated Business Results for the Year Ending March 2011
(from April 1, 2010 to March 31, 2011)
The figures in “%” show increased/decreased ratio compared with the previous fiscal year and the previous interim result.

Net SalesInterimresults 2011
Year ending
March 2011

Operating Profit

Recurring Profit

Net Income

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

Net Income
per ShareYen

29,500

12.1

400

△46.5

350

△49.3

60

△62.0

52.26

65,000

14.8

1,000

36.0

850

35.4

100

―

87.10

Note: Forecasts for the consolidated business results have not modified at the announcement of the financial statements for
FY10 1Q.

4. Others(1) Changes in the significant subsidiaries (Accompanying changes in scope of the consolidation):
Exclusion: None
For details, please refer to page.4 of this report.
* Note: This refers to presence/absence of changes to specified subsidiaries accompanying changes inscope of consolidation in the period under review.
(2) Adoption of simplified accounting practices or specific procedures in preparation of the quarterly
consolidated financial reports: Applicable* Note: This refers to presence/absence of application of simplified accounting method and special
accounting method for preparing quarterly consolidated financial statements.
(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 andsummary of significant accounting polices”)(3)-1. Changes accompanying revisions of accounting standards, etc.:Applicable(3)-2. Changes other than the above: None
* Note: This refers to presence/absence of changes in accounting principles, procedures, disclosure
methods, etc., pertaining to preparation of quarterly consolidated financial statements described in｢changes in major basic items for preparing quarterly financial statements｣.
(4) Outstanding shares (common shares)(4)-1. Outstanding shares at the end of the fiscal years (including treasury shares):
The 1st quarter of the fiscal year ending March 2011: 1,196,000 shares, the fiscal year ended March 2010:
1,196,000shares(4)-2. Treasury shares at the end of the fiscal years:
The 1st quarter of the fiscal year ending March 2011: 47,950 shares, the fiscal year ended March 2010: 47,950
shares(4)-3. Average number of shares at the interim accounting period
The 1st quarter of the fiscal year ending March 2011: 1,148,050 shares, the 1st quarter of the fiscal year ended
March 2010: 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.
*Appropriate use of business forecasts and other special items
Performance forecasts and other forward-looking statements contained in this report are based on information currently
available and on certain assumptions deemed rational at the time of this report’s release. Due to various circumstances,
however, actual results may differ significantly from such statements* Other special remarks regarding the supplemental document for the quarterly financial results
The supplemental document is posted on the company website.
(URL: http://www.faith-inc.com/ir/library.html )2

Contents
1. Qualitative Information regarding Quarterly Performance and Financial Position ·········· 2(1) Qualitative Information regarding the Consolidated Operating Results ······················ 2(2) Qualitative Information on Consolidated Financial Position ······································ 3(3) Qualitative Information regarding Forecast of Consolidated Financial Results ·········· 4
2. Others ····························································································································· 4(1) Changes in Major Subsidiaries during the 1st Quarter of FY2010 ······························· 4(2) Adoption of Simplified Methods in Accounting Methods ·········································· 4(3) Changes in Accounting Principles, Procedures, and Disclosure Methods ·················· 4(4) Explanatory Note regarding Premise of a Going Concern ········································· 4
3. Consolidated Financial Statement ··················································································· 5(1) Consolidated Balance Sheet ······················································································· 5(2) Consolidated Profit and Loss Statement ····································································· 7(3) Consolidated Statements of Cash Flows ····································································· 8(4) Explanatory Note regarding Premise of a Going Concern ·········································· 10(5) Segment Information ································································································· 10(6) Note for Significant Changes in Amount of Shareholders’ Equity ······························ 11

1. Qualitative Information regarding Quarterly Performance and Financial Position(1) Qualitative Information regarding Consolidated Operating Results
During the 1st quarter of the consolidated fiscal year ending March 2011, TV, game console and various
devices connectable to the Internet as well as PC and mobile phone have been developing and theenvironment that enables users to enjoy contents regardless of location has been improving.
In addition, new terminal devices such as smartphone, 3D TV and digital book appeared in the market one
after another, providing easier access to various contents for users. The terminal devices are further making
progress. As network, hardware and other technologies improve, the overall environment surrounding thecontents market is expected to change. We will not be able to cope with a new environment with theexisting business models because further diversification and complication of information tools and users’
needs are accelerating.
Under the circumstances mentioned above, Faith Group has been promoting “multi-content andmulti-platform” strategy that enables users to enjoy any content whenever and wherever they are. As aone-stop provider of comprehensive service from planning and production of content to designing andconstruction of distribution and charging systems, the Group recognizes the importance of creating a newframework of content distribution.
The Group bolsters partnership with many prominent corporations in a wide range of industries, whilestrengthening the Group synergy among the Group companies such as Columbia Music Entertainment, a
new member, and WebMoney.
In so doing, the Group will provide content which will be truly sought after by users by developing new
business models based on the Group’s unique perspectives in a speedy manner in the music, video, medical
and health information businesses.
Against this backdrop, consolidated net sales for the 1st quarter of FY2010 increased 29.4% year on year to¥17,122 million led by the continuous high growth in the electronic money business. Operating profit was¥363 million, down 14.5% year on year, and recurring profit was ¥374 million, down 9.2 % year on year.
The Group recorded net profit of ¥129 million, a 238.8% year on year increase.
Information on each business segment is as follows:<Contents Business>
During the period under review, the Group strove to establish new business schemes of content distribution
in various categories such as music, video, medical and health information, and expand and strengthen its
operating base through activities such as launch of a new music program and an online project of a film
festival.
Tied up with "Short Shorts Film Festival" authorized by the Academy Awards in the U.S., the Grouplaunched the online project of the "Music Short Creative Award". The award was originally founded in2009 to invite entries of video works in which music offered by record labels are used. This online project
strengthens the the Internet business and provides the new distribution scheme of video works by opening
the entry opportunity throughout the year on the website and distributing the awarded works, in addition tooffering the mutual communication functions between creators and viewers.
Following a launch of “MusicBirth+”, an integral media program which aims to discover and produce
future star artists, the Group launched a new program called “Oto-Tabi” meaning sound and trip to suggest
a new way to enjoy music. In this program, young musicians perform classical music in a relaxed mood at
scenic or historical sites across Japan. As this program was designed for mobile link from the planningstage, this media integration was realized. The audiences of the official mobile site are able to use voting
and request functions on their mobile phones.
The Group produced a film of a bestselling book "Kokuhaku", written by Kanae Minato, with a consortium
including Toho Co., Ltd. and major entertainment companies. This film is the latest work of Tetsuya
Nakajima, the director, and Yuji Ishida, the producer who is also a Director of Faith Wonderworks, Inc.
This is the same pair who had produced a big hit "Paco and the Magical Book" released in 2008. The film

2

recorded number-one hit at the box-office for four weekends in a row after the theatrical opening in June2010 and sold 2.7 million tickets as of July 27.
In addition, combining the extensive music resources of Columbia Music Entertainment, which celebrates
its centenary of the founding, and the knowledge and the Group’s experience of content distribution
cultivated through ringtone business, the Group has promoted the creation of new framework of music
distribution.
As a result, net sales in the content business for the 1st quarter totaled ¥1,866 million and operating profit
recorded ¥119 million.
<Electronic Money Business>
According to the Information and Communications Statistics Database issued in July 2010 by Japanese
Ministry of Internal Affairs and Communications, the number of broadband subscribers in Japan reachedmore than 32.04 million at the end of March 2010. Demand for digital content continued to increase in thefield of game and other content for mobile phone as well as online game, a main sector in which electronicmoney is used. Under the developing market, the settlement amount of WebMoney, which provides easy,
secure and convenient solutions, saw a firm increase led by the expansion of users on mobile content.
Aiming for an increase in the settlement amount by WebMoney through the stronger ties with the partner
vendors, the Group ran tie-up campaigns with some prominent vendors and expanded partnership withmobile content providers. At the same time, the Group started tie-up with a major credit card company for apoint redemption service in an effort to increase customers.
Regarding "manna," an advertisement distribution widget launched jointly with an Internet advertisementcompany in September 2008, the membership reached 140,000. In addition to the existing services ofcrediting WebMoney by accessing PC ads, this program now has other new functions such as a searchfunction and an online donation program to social action groups.
The Group also launched a community site called "messe" to enable users to share about 70,000 of users’
voices and campaign information, aiming at enlarging the Internet users including online game users.
As a result, net sales in the Electronic Money Business totaled ¥15,004 million driven by the increase in thesettlement amount and other factors and operating profit recorded ¥4 million.
<Other Businesses>
Revenues from the point-card system business and other businesses led sales in the Other Businesses to¥251 million and operating profit was ¥4 million.
(2) Qualitative Information Regarding Consolidated Financial Positions
Assets, Liabilities and Net Assets
Total assets as of the end of the 1st quarter of FY2010 decreased by ¥985 million from the end of theprevious consolidated fiscal year to ¥28,977 million. This result is mainly due to the decrease inamortization of goodwill caused by write-off, decrease in accounts and notes receivable, and drop of
deposit in accordance with the office move.
Total liabilities decreased by ¥1,090 million against the end of the previous consolidated fiscal year to¥15,886 million yen, caused mainly by the reduction of trade notes and accounts payable, income taxes
payable.
Net assets increased by ¥105 million against the end of the preceding consolidated fiscal year to ¥13,091
million. This result is due to the posting of quarterly net profit and the increase in minority interest despite
the decrease in valuation difference on available-for-sale securities caused by dividends payment andrevaluation of investment securities. This result raised capital ratio by 1.3 point to 40.9%.
Cash Flow
Cash and cash equivalents at the end of this 1st quarter ended June 30, 2010 decreased by ¥277 million
from the end of the previous consolidated fiscal year to ¥8,062.
Cash flows from operating activities amounted to an inflow of ¥557 million, down 70.3 % year-on-year.
This is due mainly to the posting of ¥342 million of net income before taxes and other adjustments, ¥254 ofamortization of goodwill and ¥534 of depreciation of trade receivable, despite the posting of ¥230 million
of decrease in accounts payable and ¥386 million of income taxes payment.

3

Cash flows from investing activities amounted to an outflow of ¥647 million (outflow of ¥750 million in
the 1st quarter of previous fiscal year), due mainly to the expenditure of ¥450 million for payments into
time deposits and ¥197 million for acquisition of tangible fixed assets.
Cash flows from financing activities amounted to an outflow of ¥168 million (outflow of ¥80 million in the
1st quarter of previous fiscal year), mainly because of the expenditure of ¥47 million for dividend paymentand ¥143 million for repayment of long-term liabilities.
(3) Qualitative Information Regarding Forecast of Consolidated Financial Results
Operating results for the 1st quarter of fiscal year 2010 have advanced as planned due to the increase insettlement amount of WebMoney and the cost reduction by effective operation for advertisement, etc.
However, the economic trend and stock market leave unpredictable and uncertain elements. Because of theconcern on the effect on consumption trend on content market, the Company has not revised the forecasts
released on May 12, 2010 in the BRIEF STATEMENT OF ANNUAL FINANCIAL RESULTS FOR THE
YEAR ENDED MARCH 2010 AND FORECASTS FOR THE YEAR ENDING MARCH 2011.

2. Others(1) Changes in Major Subsidiaries during the 1st Quarter of FY2010: None
(2) Adoption of Simplified Methods in Accounting Methods(Simplified methods in accounting methods):
1. Computation method used for estimating bad debts in general receivables
As the actual percentage of credit losses recorded at the end of the current quarter proved to be notsignificantly different from what was estimated at the previous fiscal year end, the estimated bad debt iscomputed based on the actual percentage of credit losses at the previous fiscal year end.
2. Computation method used for estimating amortization of tangible assets
Assets which are applying fixed percentage method are computed on a pro-rata basis from the amount forthe consolidated fiscal year ending March 31, 2011.
(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 and theestimated effective tax rates, which is estimated as an effective tax rates applied to the tax effect accounting,by the amount of consolidated net profit including the 1st quarter of the financial period and before tax
deduction. Income taxes-deferred is included in corporate, local and business taxes.
(3) Changes in Accounting Principles, Procedures, and Disclosure Methods
1. Change in accounting standards(Application of “Accounting Standard for Asset Retirement Obligations”)
From the 1st quarter of the fiscal year ending March 31, 2011, the Group applies the “Accounting Standard
for Asset Retirement Obligations” (ASBJ Statement No.18 of March 31, 2008) and the “Guidance on
Accounting Standard for Asset Retirement Obligations” (ASBJ Guidance No.21 of March 31, 2008).
Due to the impact of this change, both operating profit and recurring profit decreased by ¥946 thousand andquarterly net profit before income taxes decreased by ¥18,199 thousand.
(Application of “Accounting Standard for Equity Method of Accounting for Investment” and “Practical
Solution on Unification of Accounting Policies Applied to Associates Accounted for Using the Equity
Method”)
From the 1st quarter of the fiscal year ending March 31, 2011, the Group applies the “Accounting Standard
for Equity Method of Accounting for Investment” (Accounting Standards Board of Japan [ASBJ] Statement
No.16 of March 10, 2008) and the “Practical Solution on Unification of Accounting Policies Applied to
Associates Accounted for Using the Equity Method” (ASBJ PITF No.24 of March 10, 2008).
There is no impact on the Group’s consolidated financial statements for quarter as a result of this change.
2. Change in presentation
Based on the “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No.22 ofDecember 26, 2008), the Group applies the “Cabinet Office Ordinance Partially Revising Regulation on
Terminology, Forms and Preparation of Financial Statements” (Cabinet Office Ordinance No.5 of March 24,2009). As a result, “Income before minority interests” is included in the consolidated financial statements
for the 1st quarter of the fiscal year ending March 31, 2011.
(4) Explanatory Note regarding Premise of a Going Concern
Not applicable43. Consolidated Financial Statement for the 1st quarter(1) Consolidated Balance Sheet for the 1st quarter(Unit: thousands of yen)

The 1st Quarter of

FY 2009(As of June 30, 2010) (As of March 31, 2010)(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
Differed 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
Allowance for relocation
OthersTotal current liabilities
Fixed liabilities
Long-term liabilities
Deferred tax liabilities
Allowance for retirement benefits
OthersTotal fixed liabilities
Total liabilities

59,223,342
5,757,953
739,442
75,29623,91012,537300,267
775,558△35,943
16,872,364

9,050,487
6,303,169
740,147
64,466
10,465
12,188300,267
811,197△35,725
17,256,664

2,959,607

2,916,674

1,206,071
379,971
1,586,043

1,470,111
390,316
1,860,428

7,379,060
344,381△166,361
7,557,080
12,102,731
2,854
28,977,949

7,454,631
638,063△167,805
7,924,889
12,701,991
4,567
29,963,224

6,953,813
2,399,984
136,9023,535,500
257,969
56,359843,600
14,184,129

7,184,384
2,419,904
394,726
3,571,039
270,478
70,208205,720
991,668
15,108,130

1,433,356
154,387
89,22325,796
1,702,763
15,886,893

1,556,992
199,716
83,07529,684
1,869,467
16,977,598

(Unit: thousands of yen)

The 1st Quarter of

FY 2009(As of June 30, 2010) (As of March 31, 2010)(Net assets)
Shareholder's equity
Common stock
Capital surplus
Retained earning
Treasury stock
Total shareholder's equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liability and net assets

6

3,218,000
3,708,355
5,561,704△651,377
11,836,681

3,218,000
3,708,355
5,489,146△651,377
11,764,124

228,141△201,951
26,1901,228,184
13,091,056
28,977,949

292,095△200,050
92,044
1,129,455
12,985,625
29,963,224

(2) Consolidated Profit and Loss Statement for the 1st quarter of the fiscal year
(April 1, 2010 through June 30, 2010)(Thousands of yen)the 1st Quarter of FY2009 the 1st Quarter of FY2010(As of June 30, 2009)

Net sales
Cost of Sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Interest securities.
Equity method investment gain
Miscellaneous income
Total non-operating profit
Non-operating expenses
Interest expense
Investment profit on equity method
Exchange loss
Miscellaneous expense
Total non-operating expenses
Recurring profit
Extraordinary profit
Gain on disposal of fixed assets
Gain on disposal of investment securities
Gain on transfer of operation
Reversal of allowance for doubtful accounts
Total extraordinary profit
Extraordinary loss
Loss from investment securities valuation
Loss from changes in shareholder equity
Gain on transfer of operation
Effect of asset retirement obligations
OthersTotal extraordinary loss
Quarterly net profit before income taxes
Corporate, local, and business taxes
Income before minority interests
Income or Loss on minority shareholders
Quarterly net profit or loss

7

(As of June 30, 2010)

13,230,401
10,532,111
2,698,290
2,273,069
425,220

17,122,285
14,686,420
2,435,864
2,072,108
363,756

10,212
15,7782,637
7,325
35,954

2,081
2,784
11,33340,152
3,800
60,152

12,84929,795834
5,776
49,254
411,920

11,19236,5852,094
49,872374,036

5,192
5,000
32,00042,192

1,061
1,305
2,367

9,161
3,395
38
12,595441,516
356,623
46,53338,3605,106
11,537
17,25338
33,935
342,468
131,678
210,789
80,829129,959(3) Consolidated Statements of Cash Flows for the 1st quarter of the fiscal year
(April 1, 2010 through June 30, 2010)(Thousands of yen)

Cash flow from operating activities
Quarterly profit before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Increase (decrease) 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
Loss reserve for office relocation
Interest and dividends income
Interest on securities
Interest expenses
Foreign exchange gains
Gain on sale of investment securities
Valuation Loss on investment securities
Loss from investment in equity method
Gain on changes in shareholder equity
Gain on disposal of fixed assets
Effect of asset retirement obligations
Decrease in accounts and notes receivable-trade
Decrease (increase) in inventories
Decrease in accounts and notes payable-trade
Increase in consumption taxes payable
OthersSub-totalInterest and dividends received
Interest expenses paid
Income taxes refunded
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
Income from disposal of tangible fixed assets
Expenditure for acquisition of software
Income from disposal of investment securities
Income from loans collection
OthersNet cash flow used in investing activities8

the 1st Quarter of FY2009(April 1, 2009
through June 30, 2009)

the 1st Quarter of FY2010(April 1, 2009 throughJune 30, 2010)

441,516
87,168557,221△4,151△32,144△95,522△47,4542,454△25,990△2,637
12,849△3,795△5,192
9,161
29,795
1,627,414
80,724△431,118
36,238△395,611
1,840,926
28,578△472
32,430△23,101
1,878,360

342,468
60,547
254,402△1,226△13,849△35,539△12,5096,148△205,720△4,865△11,333
11,19236,0995,106△40,152
11,537△1,061
17,253534,029△24,623△230,570
69,907
163,588930,830
12,586△5,891△380,245
557,280△2,120,000
1,430,096△40,130
2,225△73,741
5,590
50,000△4,899△750,858△450,000△197,433
5,510△11,175
5,463△647,635

(Thousands of yen)

Cash flow from financing activities
Proceeds from long-term borrowing
Proceeds from payment from minorities
Payment of dividends
Expenditure for dividends to minorities
Net cash flow used in financing activities
Effect of exchange rate on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year9

the 1st Quarter of FY2009(April 1, 2009
through June 30, 2009)

the 1st Quarter of FY2010(April 1, 2009 throughJune 30, 2010)△25,810△44,466△10,004△80,281
63,731
1,110,951
10,649,135
11,760,087△143,556
43,031△47,020△21,081△168,626△18,869△277,850
8,340,635
8,062,784

(4) Explanatory Note regarding Premise of a Going Concern
Not applicable(5) Segment Information[Business segment information]
1st quarter of the fiscal year 2009 (April 1, 2009 through June 30, 2009)(Unit: thousands of yen)Content
business
Net sales(1) Sales to outside
customers(2)
Intersegment
sales and transfers
Total
Operating profit
Notes:

ElectronicMoneybusiness

Otherbusinesses

Total

Eliminations/
Corporate

Consolidated

2,675,236

10,229,205

325,959

13,230,401–

13,230,401

104,925576–

105,501△105,501–

2,780,162

10,229,781

325,959

13,335,903△105,501

13,230,401

277,758

136,671

23,612

438,041△12,820425,220

1. Method of businesses segmentation: The Company and its group companies’ businesses are classified based on

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

Content businessElectronic Money business
Other businesses[Geographical segment information]
The 1st quarter of the previous fiscal year ended March 2010 (April 1, 2009 through June 30, 2009)
Geographical segment information is omitted since net sales in Japan dominated more than 90% of
total sales.
[Overseas sales]
The 1st quarter of the previous fiscal year ended March 2010 (April 1, 2008 through June 30, 2008)
Sales result of overseas is omitted from segmental information since consolidated net sales ofoverseas are less than 10% of total sales.
[Segment information](Additional information)
From this fiscal year ending March 2011 (April 1, 2010 through June 30, 2010), the Group applies
the “Revised Accounting Standard for Disclosures about Segments of an Enterprise and Related
information” (ASBJ Statement No. 17 of March 27, 2009) and “Guidance on the AccountingStandard for Disclosures about Segments of an Enterprise and Related Information” (ASBJ
Guidance No.20 of March 21, 2009).

101. Outline of business segments reported
The business segments the Company reports are the business units for which the Company is able
to obtain respective financial information separately in order for the Board of Directors to conductperiodic investigation to determine distribution of management resources and evaluate theirbusiness results.
The Group is promoting comprehensive services as a content provider, mainly as "content business"
which covers from planning and production of digital content to construction of platform anddistribution to end-users, and as "electronic money business" which provides electronic payment
system.
Consequently, the Group has two reportable segments: "content business" and "electronic money
business".
"Content business" promotes content distribution service, development and licensing of distribution
platform technologies, producing content creation.
"Electronic Money business" promotes issuance of electronic money and providing electronic
settlement platforms.
2. Information on sales and income (loss) by business segment reported
1st quarter of the fiscal year 2010 (April 1, 2010 through June 30, 2010)(Unit: thousands of yen)
Business segment reported

Total
Segment profit
Notes:

Adjustment

Consolidated
statement
amount17,122,285–

17,122,285–

75,429△75,429–

16,945,820

251,893

17,197,714△75,429

17,122,285

358,4144,350

362,765991

363,756

Total

Total

1,866,100

15,004,291

16,870,391

251,893

74,4291,000

75,4291,940,529

15,005,291

119,248

239,165

Content
business
Net sales(1) Sales to outside
customers(2)
Intersegment
sales and transfers

Otherbusinesses

ElectronicMoneybusiness

1. The “Other Business” category incorporates operations not included in business segments reported, including
the point service and other business.
2. Adjustment of segment profit of ¥991 thousand refers to elimination of intersegment transactions.
3. Segment profit is adjusted with the operating profit in the quarterly consolidated profit and loss statement.

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.
(6) Note for Significant Changes in Amount of Shareholders’ Equity
Not applicable11