BRIEF STATEMENT OF CONSOLIDATED FINANCIAL RESULTS
FOR THE 1st QUARTER OF THE FISCAL YEAR ENDING MARCH 2010
August 12, 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: August 13, 2009
Starting Date of the Dividend Payment: Amounts are rounded down to the nearest JPY 1 million.

st

1. Results for the 1 quarter of the year ending March 2010
(From April 1, 2009 to June 30, 2009)(1) Consolidated financial results

Those figures in “%” show increased/decreased ratio compared with the previous 1st quarter of fiscal term

Net Sales

Recurring Profit%

Net Profit%

13,230

9.6

425

102.0

411

178.2

38

△73.9

12,070

―

210

―

148

―

146

―

Q1 of the year ending
March 2010
Q1 of the year ended
March 2009

Q1 of the year ending
March 2010
Q1 of the year ended
March 2009

Operating Profit%

Millionsof yenMillionsof yenNet Profit per
Share
Yen
33.41

DilutedNet
Profit per Share
Yen
32.15

123.45122.31Millionsof yen%Millionsof yen(2) Consolidated financial position
Total Assets
Q1 of the year
ending March 2010
the year ended
March 2009

Net Assets

Ratio of Equity
CapitalNet Assets per Share

Millions of yen

Millions of yen%

Yen

30,843

15,21745.6

12,245.19

30,496

14,49943.8

st11,634.84
stReference: Equity Capital: the 1 quarter of the fiscal year endeing March 2010: 14,058 million yen/ the 1 quarter of the
fiscal year ended March 2009: 13,357 million yen

2. Dividends
Dividends per share(Record dates)

Year ended March
2009
Year ending March
2010
Year ending March2010 (Forecast)

1st Quarter

Interimyen―

3rd Quarter

Year-end

Total(Annual)

yen
50.00

yen
―

yen
50.00

yen
100.00

50.00

―

50.00

100.00―3. Forecasts for the consolidated business results for the year ending March 2010
(from April 1, 2009 to March 31, 2010)
The figures in “%” show increased/decreased ratio compared with the previous fiscal year and the previous interim result.

Net SalesInterimresults 2010
Year ending
March 2010

Operating Profit

Recurring Profit

Net Income

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

Net Income
per ShareYen

25,000

△1.2

300

△67.0

200

△73.0

60

△79.1

52.26

54, 730

1.4

680

△52.3

510

△48.7

100

―

87.10

Note: Forecasts for the consolidated business results have not modified at the announcement of the financial statements for
FY09 1Q.

4. Others(1) Changes in the significant subsidiaries (Accompanying changes in scope of the consolidation):
Exclusion : 1 subsidiary (Desperado, Inc.)
For details, please see page.5 “Qualitative information and financial statements” 4. Others (1).
(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 andsummary of significant accounting polices”)(3)-1. Changes accompanying revisions of accounting standards, etc.:Applicable(3)-2. Changes other than the above: None
(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 2010: 1,196,000 shares, the fiscal year ended March 2009:
1,196,000shares(4)-2. Treasury shares at the end of the fiscal years:
The 1st quarter of the fiscal year ending March 2010: 47,950 shares, the fiscal year ended March 2009: 47,950
shares(4)- 3. Average number of shares at the interim accounting period
The 1st quarter of the fiscal year ending March 2010: 1,148,050 shares, the fiscal year ended March 2009:
1,190,420 shares
Statement regarding the proper use of financial forecasts and other special remarks
These forecasts are based on the Company’s current assumptions and beliefs in light of the information currently available toit, and involve known and unknown risks and uncertainties. The Company’s actual results may differ materially from those
discussed in these forecasts as a result of numerous factors outside of the Company’s control.

[Qualitative information and financial statements]
1. Qualitative information regarding consolidated operating results
During the 1st quarter of the consolidated fiscal year ending March 2010, advanced functions of terminal
devices such as smartphone, iPhone®, and game consoles have further diversified, while the network
environment for high-capacity content has diversified. At the same time, responding to the growing content
needs, a wide range of content including new services which were formerly not available are now covered,and an new era of choosing content from a wide showcase has arrived. As the user needs are expanding anddiversifying, variety of content are demanded. The launch of fully-fledged Internet connected TV wasanother marked event. The overall environment includes network, software and hardware has been
improving to allow users to access content more easily.
Faith Group has been making effort to implement ubiquitous content environment that are always
converged at its service concept, "multi-content on multi-platform" which enables users to enjoy content at
any time. In the fast growing content distribution market and technologies, the Group actively took
measures such as developing new services and solutions based on its unique ideas, and alliance withprominent partners of various industries.
The Group has established new business schemes in the video distribution services field, where content canbe enjoyed on a wide range of terminal devices such as mobile phones, PCs and digital appliances. In
addition, the Group is promoting the creation of new content distribution platforms taking the user needs inadvance. For instance, in the music content service business, the Group has started new services tailored foriPhone®. Furthermore, in the medical and health information business, new functions were added on theservice related to the electronic medical recording system to improve user convenience.
In the electronic money field, which has been expanding the market, the volume of payment settled in theGroup's "WebMoney" showed a strong performance achieving high market share in the online gamemarket. Other factors behind this result were an increase in new partner vendors and the promotions foruser expansion.
As a result, consolidated net sales for the 1st quarter of FY2009 increased 9.6% year on year to ¥13,230
million led by the continuous high growth in the electronic money business. Operating profit was ¥425
million, up 102.0% year on year, and recurring profit was ¥411 million, up 178.2 % year on year, due to thecost reduction realized by selection and revision of existing businesses and the realignment of the Groupbusinesses. In spite of these efforts, the Group recorded net profit of ¥38 million, a 73.9% year on year
decrease due to the increase in tax expenses.
Information on each business segment is as follows:<Contents Business>
Faith Group strove to establish new business schemes and expand and strengthen its operating base throughactivities such as building partnership with other leading companies during the period under review.
The Group also strove to increase users of the video distribution services and improve user environment
where content can be enjoyed on a wide range of terminal devices such as mobile phones, PCs and digitalappliances. Faith Wonderworks Inc., a wholly owned subsidiary of Faith, Inc., tied up with "Short Shorts
Film Festival & Asia" authorized by the Academy Awards in the U.S. and founded "Music Short Creative
Award" to launch a related business. This new award invites entries of video works in which music fromprominent labels in Japan and the excellent works will be distributed on pay-per-view basis through mobile
and PC video content sites including sites operated by Faith Group. The Company newly started a service
for SoftBank mobile phones on a mobile video distribution site provided by Asahi Broadcasting
Corporation. This service enables video contents delivery to various devices including mobile phones, PCs
and internet connected TVs, utilizing Near Field Rights Management® (NFRM™) technology.
Brave, Inc., a subsidiary of Faith, Inc., launched "UTAMO", a Karaoke application service dedicated toiPhone®. It recorded No.1 in terms of the number of application downloaded in the music category of"iTunes® App Store". Brave also strived to further expand the number of users of "KASIMO", anautomatic lyric display service for iTunes® users. For this end, Brave added a new download function thatenables the display of lyrics on iPhone® and iPod®. As a result, the total number of displayable lyrics
doubled from around 50,000 to 100,000.
In the medical and health information service business, the Company continued collaborating with Apius
Co., Ltd., WILLCOM, Inc. along with docokaru.net which is an information digitalization project in ahealth, medical and welfare fields run by a NPO called Sustainable Community Center Japan (SCCJ). With
this joint effort, the Group strived to provide improved "Pocket Karte" service by adding 160,000 medical
institutions such as hospitals, clinics and dentists on its search list. "Pocket Karte" is an electronic medical
recording system with which users can retrieve their record on their mobile phones. The number of theusers exceeded 10,000 in the last fiscal year.
As a result, net sales in the content business for the 1st quarter totaled ¥2,675 million, down 13.4% year on
year. This figure resulted from a decline in sales of the ringtone business and the revision of somebusinesses. Operating profit increased 76.4% year on year to ¥277 million, due to a promotion of an
efficient business operation as a result of the Group realignment.
<Electronic Money Business>
According to the Information and Communications Statistics Database issued by Japanese Ministry ofInternal Affairs and Communications, the number of broadband subscribers in Japan reached more than
30.33 million at the end of March 2009. Demand for digital contents continued to increase in the field of
online game, the main sector in which electronic money used, as well as music and video distribution andSNS. Under the developing market, the settlement amount of WebMoney, which provides easy, secure andconvenient solutions, saw a firm increase.
Aiming for the 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. At the same time, the Group madeefforts to gain new partner vendors centered on the mobile content services. Furthermore, two of the
programs, "WebMoney Wallet" that enables users to make settlement only by ID and password and"WebMoney Wallet Plus” that provides reward points, succeeded in increasing the member registration byenhancing services with the vendors such as upgrading exclusive gift items that were exchangeable with thereward points.
The Group launched some interpersonal transaction services, in which growing demand is expected.
"Petit-Kampa" enables individual users to donate WebMoney to creators or social action works, and "Soku
Furi" provides function for interpersonal WebMoney transaction by embedding a settlement cashier on
websites or blogs operated by individuals. In addition, the Group launched "ONLINE GAME messe", aninformation sharing site that distribute online game information and share the feedback among the users
As a result, net sales in the Electronic Money Business increased 18.4% year on year to ¥10,229 million.
Operating profit increased by 164.6% year on year to ¥136 million due to an increase in the settlement
amount and the launch of new services and other factors.
<Other Businesses>
Revenues from the point-card system business and other businesses led sales in other businesses to ¥325
million, a decrease by 4.7% year on year. Operating profit was ¥23 million, up 323.4% year on year.

2. Qualitative information regarding consolidated financial positions(1) Assets, Liabilities and Net Assets
Total assets as of the end of the 1st quarter of FY2009 increased by ¥347 million from the end of theprevious consolidated fiscal year to ¥30,843 million. This result is mainly due to the decrease inamortization of goodwill caused by write-off, and gain on revaluation of investments in securities.
Total liabilities decreased by ¥370 million against the end of the previous consolidated fiscal year to¥15,626 million yen, caused by the reduction of trade notes and accounts payable.
Net assets increased by ¥717 million against the end of the preceding consolidated fiscal year to ¥15,217
million due to the increase in foreign currency translation adjustment account driven by revaluation of
investments in securities and exchange fluctuations. The main reason for this result is increase of
Shareholders’ equity ratio advanced by 1.8 percent point to 45.6%.

(2) Cash Flow
Cash and cash equivalents at the end of this 1st quarter ended June 30, 2009 increased by ¥1,110 million
from the end of the previous consolidated fiscal year to ¥11,760.
Cash flows from operating activities amounted to an inflow of 1,878 million yen. This is due mainly to theposting of ¥441 million of net income before taxes and other adjustments, ¥557 of amortization of goodwill
and ¥1,627 of depreciation of trade receivable, despite the posting of ¥431 million of decrease in accounts
payable.
Cash flows from investing activities amounted to an outflow of ¥750 million, due mainly to the expenditurein the amount of ¥2,120 million for payments into time deposits, despite the posting of ¥1,430 million ofincome from refund of long-term liabilities.
Cash flows from financing activities amounted to an outflow of ¥80 million, mainly because of theexpenditure in the amount of ¥44 million for dividend payment and repayment of long-term liabilities.

3. Qualitative information regarding forecast of consolidated financial results
Since operating results for the 1st quarter of FY2009 have advanced as planned compared with forecasts
released on May 13, 2009 in the BRIEF STATEMENT OF ANNUAL FINANCIAL RESULTS FOR THE
YEAR ENDED MARCH 2009 AND FORECASTS FOR THE YEAR ENDING MARCH 2010, theCompany has not revised consolidated financial forecasts for the first half ending September 30, 2009 andthe year ending March 31, 2010.

4. Others(1) Changes in major subsidiaries during the 1st quarter of FY2009 (Changes in specific subsidiaries
causing change in the scope of consolidation):
Changes in specific subsidiaries is as follows:
Exclusion: Desperado, Inc.
Changes in subsidiaries other than specific subsidiaries are as follows:
Exclusion: Faith.biz, Inc.
(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, 2010.
(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.

5. Consolidated Financial Statement for the 1st quarter(1) Consolidated Balance Sheet for the 1st quarter(Unit: thousands of yen)

(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
Total 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
OthersTotal fixed liabilities
Total liabilities

The 1st Quarter of FY2009

FY 2008(As of June 30, 2009)
Amount(As of March 31, 2009)
Amount14,310,028
5,391,587
1,240,059
230,832
45,09915,05744,685460,082
598,196△255,717
22,079,910

13,508,778
6,963,239
240,453
317,125
41,615
12,97290,883
450,388657,192△259,093
22,023,556

455,923

437,136

4,536,364
827,524
5,163,888

5,096,085
588,927
5,685,013

2,495,884
722,474△83,812
3,134,546
8,784,358
9,703
30,843,972

1,707,499
715,724△84,370
2,338,854
8,461,004
11,85730,496,418

5,812,980
2,019,920
321,072
3,220,562
314,203
63,3701,070,134
12,822,243

6,222,787
2,029,928
12,833
3,316,085
361,657
95,514
1,393,875
13,432,682

2,038,580
641,085
75,52548,9652,804,156
15,626,400

2,054,382
274,161
73,071
162,276
2,563,891
15,996,574

(Unit: thousands of yen)

(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

The 1st Quarter of FY2009

FY 2008(As of June 30, 2009)
Amount(As of March 31, 2009)
Amount3,218,000
3,708,355
7,326,655△651,377
13,601,633

3,218,000
3,708,355
7,345,697△651,377
13,620,674

943,518△487,062
456,455
1,159,483
15,217,572
30,843,972

469,900△733,196△263,295
1,142,464
14,499,844
30,496,418

(2) Consolidated Profit and Loss Statement for the 1st quarter of the fiscal year
(April 1, 2009 through June 30, 2009)(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 securities.
Foreign exchange gain
Non-operating expense
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 investment securities
Gain on transfer of operation
Reversal of allowance for doubtful accounts
OthersTotal extraordinary profit
Extraordinary loss
Loss from investment securities valuation
Gain on transfer of operation
OthersTotal extraordinary loss
Quarterly net profit before income taxes
Corporate, local, and business taxes
Income or Loss on minority shareholders
Quarterly net profit or loss

the 1st Quarter of FY2008

the 1st Quarter of FY2009(As of June 30, 2008)(As of June 30, 2009)

12,070,204
9,442,678
2,627,526
2,417,024
210,501

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

13,906
15,9301,690
26.176
6,944
64,648

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

22,10984,371
20,622
127,102148,047

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

141,606890
142,496

5,192
5,000
32,00042,19260,000718
61,718229,826
97,027△14,157
146,956

9,161
3,395
38
12,595441,516
356,623
46,53338,360(3) Consolidated Statements of Cash Flows for the 1st quarter of the fiscal year
(April 1, 2009 through June 30, 2009)(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
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
Decrease in accounts and notes receivable-trade
Decrease (increase) in inventories
Decrease in accounts and notes payable-trade
Increase in consumption taxes receivable
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
Expenditure for acquisition of investment securities
Income from disposal of investment securities
Expenditure for loans receivable
Income from loans collection
OthersNet cash flow used in investing activities

the 1st Quarter of FY2008(April 1, 2008 throughJune 30, 2008)

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

229,826
122,965584,159
3,088△33,639△194,832△21,584
4,421△29,837△1,69022,109△30,864△141,606
60,00084,371
1,128,431△8,495△672,423△109,663△349,048
645,686
91,046△1,202△127,708
607,822441,516
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△500,000
1,830,000△84,556△331,106△105,000△261,649
3,505
551,193△2,120,000
1,430,096△40,130
2,225△73,741
5,590
50,000△4,899△750,858

(Thousands of yen)

Cash flow from financing activities
Net increase in short-term loans
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
Decrease in cash and cash equivalents result fromexcluded subsidiaries from consolidation
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

the 1st Quarter of FY2008(April 1, 2008 throughJune 30, 2008)

the 1st Quarter of FY2009(April 1, 2009
through June 30, 2009)△500,000△7,482
69,452△8,590△11,171△457,791△82,756
618,467△25,810△44,466△10,004△80,281
63,731
1,110,951△67,634-

10,614,234
11,165,066

10,649,135
11,760,087

(4) Explanatory note regarding premise of a going concern
Not applicable(5) Segment Information[Business segment information]
1st quarter of the fiscal year 2008 (April 1, 2008 through June 30, 2008)(Unit: thousands of yen)Content
distribution
services
Net sales(1) Sales to outside
customers(2)
Intersegment
sales and transfers
Total
Operating profit
Notes:

Electronic
Money

Other
businesses

Total

Eliminations/
Corporate

Consolidated

3,090,059

8,637,946

342,198

12,070,204–

12,070,204

53,605

1,742–

55,348△55,348–

3,143,665

8,639,688

342,198

12,215,552△55,348

12,070,204

157,497

51,6605,576

214,734△4,232

210,501

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

segments 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

Contents businessElectronic Money business
Other businesses

1st quarter of the fiscal year 2009 (April 1, 2009 through June 30, 2009)(Unit: thousands of yen)Content
distribution
services
Net sales(1) Sales to outside
customers(2)
Intersegment
sales and transfers
Total
Operating profit
Notes:

Electronic
Money

Other
businesses

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 into four

segments based on the similarities of services and nature of businesses.
2. Details of business segments
Business segment
Contents businessElectronic Money business
Other businesses

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[Geographical segment information]
The 1st quarter of the previous fiscal year ended March 2009 (April 1, 2008 through June 30, 2008) andthis fiscal year ending 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 2009 (April 1, 2008 through June 30, 2008) andthis fiscal year ending March 2010 (April 1, 2009 through June 30, 2009)
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
Not applicable