Supplemental Data for theConsolidated Financial Results forthe 2nd Quarter of the Fiscal YearEnding March 2016 (FY 2015 Q2)© 2015 Faith, Inc. All Rights Reserved.

Consolidated Financial Results for the2nd Quarter of the Fiscal YearEnding March 2016 (FY 2015 Q2)© 2015 Faith, Inc. All Rights Reserved.

1

Consolidated Financial Result Highlights for FY 2015 Q2
In line with the continuing expansion in sales of smartphone-use services and Nippon Columbia’s return toprofitability, the Faith Group recorded net sales of ¥9,700 million, operating income of ¥570 million, andnet income attributable to the shareholders of the parent company of ¥310 million.
Net sales:
100 million
yen35070300

60 Operating

income:50 100 million
yen

250
200

40150

30100

2050

1000
FY11 2Q

FY12 2Q

FY13 2Q

FY14 2Q

FY15 2Q

Net sales

297.8

34.1

31.7

90.8

97.0

Operating income

10.8

5.6

3.0-8.3

5.7

Net income

61.4

5.9

3.3-6.9

3.1-10※Net income for the current term attributable to shareholders of the parent company※Following the disposal of the Company’s consolidated subsidiary WebMoney Corporation in July 2011, the Electronic Money Business waseliminated and sales revenue has not been recorded in this segment since FY 2011 Q2.
© 2015 Faith, Inc. All Rights Reserved.

2

Results of the Content Business During FY 2015 Q2
Due to the positive deployment of new services, net sales in the Content Business increased by 3.3% to¥2,341 million. Moreover, as a result of reductions in subcontracting, advertising and promotional
expenses, operating income increased by 156.6% year on year to ¥117 million.
Net sales:
million yen

3,600

600

3,000

Operating
500 income:million yen

2,400400

1,800300

1,200200600

1000

FY11 2Q

FY12 2Q

FY13 2Q

FY14 2Q

FY15 2Q

Net sales

3,274

2,756

2,519

2,266

2,341

Operating income

55749527245117© 2015 Faith, Inc. All Rights Reserved.

03

Results of the Point Service Business During FY 2015 Q2
Although more new points were issued, eco-point sales declined following the end of the eco-pointsystem, lowering net sales by 4.8% to ¥1,112 million. Also, due to a temporary decrease in the cost ofrecovering old points in line with the transfer to server management-based operation, and to tighter
control of sales costs and general administrative expenses, operating income grew by ¥94 million to ¥96
million.
1,200120Net sales:
million yen

Operatingincome:million yen

900

90600

60300

300

FY11 2Q

FY12 2Q

FY13 2Q

FY14 2Q

FY15 2Q

Net sales

795656

653

1,169

1,112

Operating income

946836296© 2015 Faith, Inc. All Rights Reserved.

04

Results of the Columbia Business During FY 2015 Q1Higher sales of animation-related titles and a general increase in Direct Sales Business sales boosted the Columbia
Business’s sales by 10.8% to ¥6,254 million. The strong sales performance plus a steep decline in fixed costs stemming fromthe career change support measures sent operating income to ¥356 million, an increase of ¥1,239 million year on year.
8,000

4,000

Net sales:
million yen

Operatingincome:million yen

6,000

3,000

4,000

2,000

2,000

1,000

0-2,000

0

FY11 2Q

FY12 2Q

FY13 2Q

FY14 2Q

FY15 2Q

Net sales

---

5,647

6,254

Operating income----883

356-1,000※The Columbia Business’s net sales and operating income have been included in the Faith Group’s business results since FY 2014 Q1.
© 2015 Faith, Inc. All Rights Reserved.

5

FY 2015 Q2 Consolidated Business Performanceby Segment (Compared with the Previous Fiscal Year)(Unit: million yen)

FY14 Q2

FY15 Q2

Year-on-year

Year-on-yearchange (amount)change (%)

9,082

9,709

626

6.9%

Content Business

2,266

2,341

75

3.3%

Point Service Business

1,169

1,112(56)-4.8%

Columbia Business

5,647

6,254

607

10.8%

(830)

575

1,406—45117

71

156.6%

29693

4204.6%

Columbia Business

(883)

356

1,239—Adjustment amount*

550—

Ordinary income

(791)

580

1,372

—

Net income attributable toshareholders of the parent

(697)

313

1,010

—Net sales

Operating incomeContent Business
Point Service Business※The adjustment amount is due to the elimination of inter-segment transactions.
© 2015 Faith, Inc. All Rights Reserved.

6

FY 2015 Q2 Consolidated Balance Sheet
Faith Consolidated Balance Sheet Information

260

Notes/accounts
payable 11Long-term loans 13

240

Notes/accounts
payable 9220Long-term loans 11

Other current
Cash & deposits

liabilities 48

131

Fixed liabilities 9Capital stock 32

Unit: 100 million yen

Other current

200

Cash & deposits

liabilities 40

180117

Fixed liabilities 8
Capital stock 32

Notes/accounts
receivable 29
Other current
assets 22
Tangible fixed
assets 30
Intangible fixed
assets 27
Investments/otherassets 19

Capital surplus 37

Retained earnings,etc. 108

Equity capital
169(Capital ratio65.5%)

End2015年3月末
of March 2015: Totalassets¥25,800 million
総資産258億円© 2015 Faith, Inc. All Rights Reserved.

Notes/accounts
receivable 22
Other current
assets 16
Tangible fixed
assets 30
Intangible fixedassets 27
Investments/otherassets 19

Capital surplus 37

160
140
120
100

Retained earnings,etc. 93

Equity capital
153(Capital ratio66.4%)

80
60
40200

End of September
2015: Total
assets230億円¥23,000 million
2015年9月末
総資産

FY 2015 Full Year Business
Performance Forecast© 2015 Faith, Inc. All Rights Reserved.

8

FY 2015 Full Year Business Performance Forecast
While the Columbia Business’s sales are expected to rise, as the Content Business’s music distribution service sales arepredicted to be lower than originally planned, etc., the full year net sales forecast has been revised downwards comparedwith the initial forecast. However, due to the Columbia Business’s improved profitability resulting from higher sales ofproducts involving secondary use of sound sources, structural reform, etc., operating income and net income attributable
to the parent company’s shareholders are expected to largely exceed the amounts forecast at the beginning of the year.
400

80

Net sales:
300
100 million
yen

Operating

60 income: 100

200

40

100

2000million yen

-20
FY15

FY11

FY12

FY13FY14Net sales

334

6763195

191

Operating income

16105-87Net income

67

114-333-40(forecast）*Net income for the current term attributable to shareholders of the parent company※Following the disposal of the Company’s consolidated subsidiary WebMoney Corporation in July 2011, the Electronic Money Business waseliminated and sales revenue has not been recorded in this segment since FY 2012 Q2.
© 2015 Faith, Inc. All Rights Reserved.

9

FY 2015 Consolidated Business Performance Forecastby Segment(Unit: million yen)

FY15

FY14(forecast)Year-on-year

Year-on-yearchange (amount)change (%)

19,597

19,100(497)

2.5%Content Business

4,550

4,9654149.1%

Point Service Business

2,454

2,135(319)13.0%Columbia Business

12,591

12,000(591)

4.7%

(891)

730

1,621—

168

220

51

30.9%

26

100

73

283.2%

Columbia Business(1,104)

400

1,504

—

Adjustment amount*

18

108—

(862)

720

1,582

—

(3,340)

360

3,700

—

Net sales

Operating income
Content Business
Point Service Business

Ordinary income
Net income attributable toshareholders of the parent※The adjustment amount is due to the elimination of inter-segment transactions.
© 2015 Faith, Inc. All Rights Reserved.

10Reference Materials© 2015 Faith, Inc. All Rights Reserved.

11FY 2015 Q2 Consolidated Net Sales(Compared with Previous Fiscal Year)-

FY14Q22Q
FY2014

2,000

4,000

6,000

8,000

Unit: million yen
10,000

9,082

Content
コンテンツ事業+75

Business

PointService
ポイント事業
Business(56)

Columbia
Business

コロムビア事業

+607

4,445
FY15 Q2
2Q
FY2015© 2015 Faith, Inc. All Rights Reserved.

9,709

12

FY 2015 Q2 Consolidated Operating Income(Compared with Previous Fiscal Year)
Unit: million yen

(900)

(750)

(600)

FY14Q22Q
FY2014

Content
Business

コンテンツ事業

(450)

(300)

(150)

-150

300

450

600

(830)

+71

Point Service
ポイント事業
Business+93

Columbia
Business

コロムビア事業FY15Q22Q
FY2015© 2015 Faith, Inc. All Rights Reserved.

+1,23957513

FY 2015 Q2 Consolidated Ordinary Income(Compared with Previous Fiscal Year)
Unit: million yen(800)
FY14 2Q
FY2014
Q2(600)

(400)

(200)

-200

400

600

800

(791)

Increase in営業利益の増
operatingincome+1,406

Gain on未払印税整理益
adjustmentof accrued royalties(10)

持分法による
Decrease
ininvestment投資損失の減
losses onequity method

(15)

その他
Others(8)△386
FY2015Q2
FY15 2Q© 2015 Faith, Inc. All Rights Reserved.

580

14FY2015 Q2 Consolidated Net Income※（Compared with Previous Fiscal Year）

Unit: million yen(750)FY2014
FY14 Q2
2Q(500)

(250)

-250

500+1,372

Decrease in
組織改革関連損失の減
organizational
reform-related+150(692)

その他
Other

FY15 Q22Q
FY20151,000(697)

Increasein
経常利益の増ordinary income

Increasein net income
非支配株主に帰属する
attributable
to non四半期純利益の増
controlling shareholders

750+179313※Consolidated net income is defined as net income for the current term attributable to shareholders of the parent company.
© 2015 Faith, Inc. All Rights Reserved.

15NoticeThis document and its supporting documents containprojections of our company’s future performance. Theseare estimates by the management of Faith based on
currently available information. There are potential risks
and uncertainties that may affect the results. Please beadvised that actual performance may differ significantly
from the forecast.

© 2015 Faith, Inc. All Rights Reserved.

16