BRIEF STATEMENT OF CONSOLIDATED FINANCIAL RESULTS
FOR THE 3rd QUARTER OF THE FISCAL YEAR ENDING MARCH 2021
This is an English translation of summarized consolidated financial results prepared
for the convenience of non-resident shareholders. Should there be any inconsistency
between the translation and the official Japanese text, the latter shall prevail.

February 12, 2021
Faith, Inc. (Stock code 4295, Listed on TSE 1st section) (URL http://www.faith.co.jp/)
Representative: Hajime Hirasawa, CEO/President
Contact: Chikayo Suzuki, CFO/Executive Officer
Tel: +81-3-6855-7811
Date of Submission of Securities Report: February 12, 2021
Starting Date of the Dividend Payment: —Preparation of Supplementary Materials for Quarterly Financial Results: None
Information Meeting for Quarterly Financial Results to be Held: None
Amounts are rounded down to the nearest JPY 1 million.

1. Results for the 3rd Quarter of the Fiscal Year Ending March 2021
(From April 1, 2020 to December 31, 2020)(1) Consolidated Operating Results(Percentages indicate changes compared with the same quarter of the previous fiscal year.)

Net Sales

Q3 of the year ending

Millionsof yenMarch 2021
March 2020

15,097
15,226(Note)

Operating Income

%

633
522

△0.8
△3.6

Ordinary Income%

Millionsof yen%Millionsof yen

21.3
78.8

692
564

Net Income%

Millionsof yen

22.8
－

182
△331

－
－

Comprehensive income: 3rd quarter of the fiscal year ending March 2021: ¥1,055 million (—%); 3rd quarter of fiscal year ending
March 2020: ¥△181 million (—%);

Net Income per
Share

Diluted Net
Income per Share

Yen
14.43
△25.19Yen——

Q3 of the year ending
March 2021
March 2020

(2) Consolidated Financial Position
Total Assets

Net Assets

Ratio of Equity CapitalMillions of yen

Millions of yen

26,137

17,364%66.4

24,746

16,43966.4

Q3 of the year ending
March 2021
Year ending March 2020

(Reference) Equity capital: 3rd quarter of fiscal year ending March 2021: ¥17,364 million; fiscal year ending March 2020: ¥16,439 million

2. Dividends
Dividends per Share
1 st Quarter(Record dates)

yen
—
—

Year ending March 2020
Year ending March 2021

3 rd Quarter

Interim

yen
5.00
5.00

Year-end

yen——

Year ending March 2021
(Forecast)(Note)

Total

yen
5.00

yen
10.00

5.00

10.00

These figures have not been modified since the time of the most recently announced dividend forecast.

3. Forecast for the Consolidated Results for the Year Ending March 2021
（from April 1，2020 to March 31，2021）(Percentages indicate changes compared with the previous fiscal year.)

Net Sales

Full year(Note)

Millionsof yen%20,000△0.5

Operating Income

Ordinary Income

Net Income
Attributable to the
Shareholders of the
Parent Company

Millionsof yenMillionsof yenMillions of
yen

430

%
11.7

520

%
10.2

60

These figures have not been modified since the time of the most recently announced business result forecast.

1

Net Income
per Share
Yen

%
－

4.75

* 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. Consolidated Financial Statements and Important Explanatory Notes, (3) Notes

Concerning the Consolidated Financial Statements (Adoption of Simplified Methods in the Preparation of theQuarterly Financial Statements)” on page 9 of the accompanying material.

(3) Changes in accounting policy, changes in accounting estimates, and restatements(i)
Changes accompanying revisions of accounting standards, etc.: None(ii) Changes other than the above: None(iii) Changes in accounting estimates: None(iv) Restatements: None
(4) Outstanding shares (common shares)(i) Outstanding shares at the end of the term (including treasury shares):
The 3rd quarter of the fiscal year ending March 2021: 13,831,091 shares
The fiscal year ending March 2020: 13,831,091 shares(ii) Treasury shares at the end of the term:
The 3rd quarter of the fiscal year ending March 2021: 1,202,760 shares
The fiscal year ending March 2020: 1,201,840 shares(iii) Average number of shares during the interim accounting period:
The 3rd quarter of the fiscal year ending March 2021: 12,628,788 shares
The 3rd quarter of the fiscal year ending March 2020: 13,143,364 shares(Note) The number of shares of treasury stock at the end of the period includes the Company's sharescontributed as trust assets in the performance-based stock compensation plan (3rd quarter of fiscal year
ending March 2021: 262,500 shares, fiscal year ending March 2020: 262,500 shares).
Moreover, such shares are also included in the treasury shares that are deducted in calculating the average
number of shares during the period (the 3rd quarter of the fiscal year ending March 2021: 262,500 shares,
the 3rd quarter of the fiscal year ending March 2020: 116,666 shares).
* This financial results report is exempt from quarterly review procedures.
* 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 to “1. Qualitative Information Concerning the Settlement of Accounts for the 3rd Quarter,(3) Explanation Concerning Future Forecast Information on the Consolidated Financial Results, etc.” on page 4 of theaccompanying material.

2

Contents
1. Qualitative Information Concerning the Settlement of Accounts for the 3rd Quarter ····················(1) Explanation Concerning the Operating Results ··························································(2) Explanation Concerning the Financial Position ··························································(3) Explanation Concerning Future Forecast Information on the Consolidated Financial Results, etc.

2
2
4
4

2. Consolidated Financial Statements and Important Explanatory Notes ···································· 5(1) Consolidated Balance Sheet ················································································ 5(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ······· 7(Consolidated Statement of Income)········································································ 7(Consolidated Statement of Comprehensive Income)····················································· 8(3) Notes Concerning the Consolidated Financial Statements················································ 9(Note Concerning the Premise of a Going Concern) ······················································ 9(Note in the Case of Significant Changes in the Amount of Shareholders’ Equity) ·················· 9(Adoption of Simplified Methods in the Preparation of the Quarterly Financial Statements) ····· 9(Segment Information) ······················································································· 10

1. Qualitative Information Concerning the Settlement of Accounts for the 3rd Quarter(1) Explanation Concerning the Operating Results
In the Japanese information and communications field in 2019, the Internet penetration rate remained
high at 89.8%, and the percentage of households owning one or more smartphones reached 83.4%,
exceeding the percentage of households that own personal computers (*1). In addition, while the movementaway from television has continued since the year 2000, mainly centered on younger people, advertisingexpenses for the Internet in Japan increased by 19.7% in 2019 from the previous year to ¥2,104.8 billion,
exceeding advertising expenses for television of ¥1,861.2 billion for the first time (*2). Moreover, inJanuary 2021, a second state of emergency was declared in some parts of the country due to the renewed
spread of the novel coronavirus (COVID-19), and due to the prolonged nature of the COVID-19 pandemic,
services that allow people to stay online while communicating at home are becoming widespread, andnew lifestyle choices such as teleworking and “contactless” consumer behavior are beginning to permeate
society. Under these circumstances, it is expected that the shift to services in accordance with the era ofdigitalization will further accelerate as the Internet usage rate rises, smartphones become even morewidespread, and G5 communication services develop.
*1. Source: Ministry of Internal Affairs and Communications , 2019 Telecommunications Usage Trend Survey Results*2. Source: Dentsu Inc., 2019 Advertising Expenditures in Japan

In the entertainment market in 2019, sales in the global music market centered on streaming services grewby 8.2% year-on-year to approximately ¥2,198.4 billion (US$20.2 billion), marking its fifth consecutive
year of sales growth (*3). Meanwhile in Japan, the production value of music software including music
videos decreased by 5% year-on-year to ¥229.1 billion, and sales of packaged products continued to
decline, but paid music distribution increased by 10% to ¥70.6 billion (*4). In the paid music distribution
sales category, from January to September 2020, subscription audio streaming increased by 26% year-onyear to account for 74% of total paid music distribution sales (*5). On the other hand, large-scale eventsand live concerts have been postponed and canceled due to the spread of COVID-19, and the size of thelive entertainment market in 2020 is expected to decrease by about 80% compared to the previous year(*6)
. However, many artists are experimenting with new ways of enjoying live entertainment and theirefforts are beginning to permeate the market, such as “non-audience live distribution” concerts in which
they perform “live” without an audience at the venue and the sights and sounds of the performance are
distributed in real time to audiences via the Internet. It is estimated that the size of the digital live
performance market will reach ¥14 billion in 2020, and it is projected to expand rapidly to about ¥100
billion by 2024 (*7).
*3. Source: IFPI, Global Music Report 2020 - THE INDUSTRY IN 2019*4. Source: Recording Industry Association of Japan (RIAJ), The Recording Industry in Japan 2020
*5. Source: Recording Industry Association of Japan (RIAJ), 2020 Quarterly Music Distribution Sales Figures*6. Source: PIA Research Institute, Japanese Live Entertainment Market Size Preliminary Report (published October 27, 2020)*7. Source: CyberZ Co., Ltd., Domestic Digital Live Entertainment Marke t Trend Survey

Founded in 1992, Faith was the first company in the world to commercialize ringtones, and has steadilygrown centered on the music distribution business and in step with the popularization of mobile phones.
However, the spread of smartphones in today’s music market has been accompanied by the diversificationof media such as streaming, user upload content (UUC) that allows general users to easily transmit
information to society, and social media, with the result that all kinds of activities in the music industry
are now changing, including content distribution methods, consumption styles and content production
methods.
In the current environment, the Faith Group is continuing to utilize the results of the efforts it has beenpouring into digital content distribution ever since its establishment, and is forging ahead with its MultiContent and Multi-Device Strategy of creating environments in which people can enjoy a wide diversityof contents whenever and wherever they choose. We are also strengthening the development of newservices in response to the changing market environment, which includes platforms that collect andorganize the information flooding the Internet and then providing this to users after increasing its added
value.
In June 2020, Faith launched a new service called Thumva, which is an innovative live performance
distribution platform with a variety of additional features. An Internet-based viewing service that provides
a new kind of live experience, Thumva makes possible group viewing and commenting, includes a gifting
function for artists, and allows the audience to share in the uplifting and united feeling of taking part in a2

live performance without actually being at the venue. A considerable number of artists have alreadyperformed “live” on Thumva without a live audience, and we are planning to continue live broadcastingwith a variety of lineups in future. Around 160 performances have been distributed in the eight months
since the service started, and the number of registered members exceeds 120,000 (as of December 2020).
Two FAITH facilities, namely PLUSTOKYO, Tokyo's largest music lounge, and CROKET MIMICTOKYO, an entertainment facility that stages world-class performances centered on impersonation, havebeen closed since March 2020 due to the spread of COVID-19 infections, but both are providing services
related to live distribution. After taking necessary measures in accordance with the Tokyo Metropolitan
Infectious Disease Spread Prevention Guidelines, PLUSTOKYO had been gradually resuming its
operations, but in order to prevent the spread of COVID-19 infections, which have been protracted since
the second state of emergency was issued, it has once again been closed temporarily since January 2021,
and CROKET MIMIC TOKYO also remains closed. We will continue to give top priority to preventing
the spread of infection and ensuring safety, and will carefully discuss the timing of resumption based on
administrative policies and action plans.
The Faith Group fully introduced remote working system from October 1, 2020. In the future, we will
gradually consolidate the major office functions that have been dispersed and promote business activities
aimed at improving the group’s management efficiency and profitability. We will realize diverse andefficient new working styles centered on the idea of “activity-based working” while keeping an eye onchanges in behavioral patterns and the establishment of new values.
Regarding the Faith Group’s business performance for the third quarter of the consolidated fiscal year
ending March 2021, sales decreased by 0.8% year on year to ¥15,097 million, mainly due to a decreasein sales of existing distribution services, which are now the biggest sales category, and to the suspensionof store operations to prevent the spread of COVID-19 infections. As for profitability, operating income
increased by 21.3% year-on-year to ¥633 million, while ordinary income increased by 22.8% year-onyear to ¥692 million thanks to a strong performance by the Points Business. In addition, the group
recorded as an extraordinary loss of ¥74 million attributable to office relocation costs in accordance withthe relocation of the headquarters of Nippon Columbia. As a result, net income attributable to owners of
the parent company was ¥182 million (compared to a net loss attributable to shareholders of the parent
company of ¥331 million for the same period of the previous year).
Information on each business segment is as follows.
Content BusinessIn the Content Business, as sales in the existing distribution business are continuing to decline, the FaithGroup will continue to invest in new growth fields, such as developing new products, interlinking various
services and creating platforms to capture diversifying profit opportunities, and promoting overseas
business expansion.
We are actively developing FaRao PRO not only as a service providing business BGM but also for sales
activities focused on expanding the functions necessary for store management, such as solutions andannouncement functions that make store-branding proposals. In addition to conventional products using
tablet devices, we have also released an app-version service that offers reduced initial costs and we areworking to strengthen retail store sales through collaboration with the Point Service Business. Moreover,based on our Japanese service, we will continue to aim to create and revitalize the new BGM market.
In Fans’, our platform of services for artists based on the D2C (*8) business model, which is expected to
expand further in future, we are enhancing the functions essential to artists’ musical activities such as
official website construction, music and video distribution, sales of artist goods, and fan club operation.
We are also working to further expand the functions of Fans’, as with the introduction in June 2019 of asystem that contributes to the creation of communities by spreading information sent out by creators
through strengthened SNS cooperation. We are aiming to acquire new users and expand the membershipbase of Fans’ as a service that allows more artists to disseminate their works and information freely, andwe will strive to improve the service quality by pursuing enhanced convenience.
*8. Abbreviation of “Direct to Consumer”—a business model for delivering services and products planned and manufactured by Faith directly to users

3Regarding the performance of this segment, due to a decrease in carrier official website service sales andto the suspension of store operations in line with the spread of COVID-19 infections, the Content Businessrecorded net sales of ¥2,209 million (a decrease of 19.2% year-on-year), and an operating loss of ¥383
million (compared with an operating loss of ¥453 million for the same period of the previous fiscal year).
Point Service BusinessIn the Point Service Business, in addition to providing point issue services to retail stores, we offer total
support for point issue data acquisition, analysis and sales promotion utilization as a series of cycles fromplanning to operation, and we provide outsourcing services that maximize retail sales promotion
efficiency.
Regarding the performance of this segment, the issue of points at existing member stores increased
substantially, with the result that net sales increased by 40.0% year-on-year to ¥2,885 million andoperating income increased by 158.3% year-on-year to ¥283 million.
Label Business
Amid the difficult environment facing the music and video-related industry in line with the continuing
shrinkage of the music market, the Label Business is proceeding with its strategy of strengthening new
future-oriented businesses in order to overcome the present situation in which it remains dependent onsales of package products for which the market remains sluggish.
Regarding the performance of this segment, sales decreased by 4.1% year-on-year to ¥10,003 million due
to delays in releases of titles, a decrease in the activities of affiliated artists in the course of the effort toprevent the spread of COVID-19 infections, and declining sales of high-margin sound sources. Operating
income decreased by 15.8% year-on-year to ¥732 million yen due to a decrease in sales titles involving
the use of high-margin sound sources and to the recording of office relocation costs.
*Product and service names appearing in this document are trademarks or registered trademarks of Faith , Inc. either in Japan or in othercountries.

(2) Explanation Concerning the Financial Position
As of December 31, 2020, total assets increased by ¥1,390 million yen compared to the end of the previous
consolidated fiscal year to ¥26,137 million. This result was mainly due to increases in cash and deposits
and investment securities.
Total liabilities increased by ¥464 million compared to the end of the previous consolidated fiscal year to¥8,772 million. This result was mainly due to increases in asset retirement obligations and deferred tax
liabilities.
Total net assets increased by ¥925 million compared to the end of the previous consolidated fiscal year to¥17,364 million. This was mainly due to an increase in the valuation difference on other available-forsale securities.
The equity ratio was 66.4%, the same rate as at the end of the previous consolidated fiscal year.

(3) Explanation Concerning Future Forecast Information on the Consolidated Financial
Results, etc.
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 fiscal year is unchanged fromthe forecast figures issued on November 11, 2020.

4

2. Consolidated Financial Statements and Important Explanatory Notes(1) Consolidated Balance Sheet
FY 2019(March 31, 2020)(Assets)
Current assets
Cash and deposits
Accounts and notes receivable
Marketable securities
Commercial products
Products in progress
Primary materials and inventory goods
Corporation tax refund receivable, etc.
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Intangible fixed assets
Goodwill
Other intangible fixed assets
Total intangible fixed assets
Investment and other assets
Investment securities
Deferred tax assets
Other investment and other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets(Liabilities)
Current liabilities
Accounts and notes payable
Short-term loans payable
Accrued expenses payable
Income taxes payable
Reserve for bonuses
Reserve for point card certificates
Reserve for sales returns
Reserve for office relocation costs
Asset retirement obligations
Other current liabilities
Total current liabilities
Fixed liabilities
Long-term loans payable
Net defined retirement benefits
Reserve for stock benefits for directors
Asset retirement obligations
Deferred tax liabilities
Other fixed liabilities
Total fixed liabilities
Total liabilities

5(Unit: thousands of yen)
3rd Quarter of FY 2020

(December 31, 2020)

12,635,849
2,199,541
230,879
446,811578,771
75,973
68,295
482,059△18,532
16,699,651

13,161,962
1,856,856
231,809354,414
470,466
50,6200901,598△19,164
17,008,562

2,646,472

2,660,755

1,520,453
455,507
1,975,960

1,426,885
439,114
1,865,999

2,145,096
765,419
1,037,457△523,083
3,424,888
8,047,321
24,746,972

3,309,964
825,860
1,033,423△566,799
4,602,448
9,129,203
26,137,765

1,039,823
609,900
2,725,341
341,858
347,424
364
90,279
－－1,531,411
6,686,405

714,909548,700
2,829,580
258,287
221,538274
44,46065,237
146,892
2,217,729
7,047,608

440,350
652,153
16,401
39,183
333,275
140,191
1,621,554
8,307,960

282,025
638,425
25,194
39,183
701,668
38,813
1,725,309
8,772,918

FY 2019(March 31, 2020)(Net assets)
Shareholder's equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Other accumulated comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Cumulative adjustment for retirement benefit
obligations
Total other accumulated comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6(Unit: thousands of yen)
3rd Quarter of FY 2020

(December 31, 2020)

3,218,000
2,840,095
10,854,165△1,124,344
15,787,916

3,218,000
2,840,084
10,907,494△1,125,117
15,840,460

737,236△21,026△65,114

1,590,056△29,593△36,076

651,096－
16,439,012
24,746,972

1,524,387－
17,364,847
26,137,765

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)(Unit: thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Interest on securities
Gain on equity method investment
Gain on investment partnership management
Gain on valuation of investment securities
Grant income
Miscellaneous receipts
Total non-operating income
Non-operating expenses
Interest paid
Loss on equity method investment
Loss on investment partnership management
Loss on valuation of investment securities
Loss on foreign exchange
Miscellaneous expenses
Total non-operating expenses
Ordinary income
Extraordinary losses
Loss on disposal of fixed assets
Loss on sale of investment securities
Loss on valuation of investment securities
Office relocation costs
Total extraordinary losses
Net income before income taxes
Corporate, local, and business taxes
Income taxes - deferred
Current quarter net income or net loss (△ = net loss)
Current quarter net income or net loss attributable to noncontrolling interests (△ = net loss)
Current quarter net income or net loss attributable toshareholders of the parent company (△ = net loss)

7

3rd Quarter of FY 2019

3rd Quarter of FY 2020

(April 1-Dec.31, 2019)15,226,548
9,402,9785,823,570
5,301,141
522,428(April 1-Dec. 31, 2020)
15,097,633
9,630,788
5,466,845
4,833,086
633,759

185
4,678
100
18,55341,014
1,164－
20,44086,138

406
3,922
12
－
109,714
1,403
42,39831,916
189,773

4,153－
18,003582
9,365
12,39244,498564,068

4,362
13,669106,456－
631
6,007
131,127
692,405102－
549,999－
550,102
13,966
347,028△1,954△331,107－

33,993
4,931
26,75774,510140,192552,213433,351△63,381
182,243－△331,107

182,243

(Consolidated Statement of Comprehensive Income)(Unit: thousands of yen)

Current quarter net income or net loss (△ = net loss)
Other comprehensive income
Valuation difference on other available-for-salesecurities
Foreign currency translation adjustments
Retirement benefit adjustments
Total other comprehensive income
Comprehensive income(Details)
Comprehensive income attributable to shareholders of
the parent company
Comprehensive income attributable to non-controllinginterests

8

3rd Quarter of FY 2019

3rd Quarter of FY 2020

(April 1-Dec.31, 2019)△331,107(April 1-Dec. 31, 2020)
182,243

141,060

852,820△13,556
22,106
149,609△181,497△8,56729,038873,290
1,055,534△181,497

1,055,534－－

(3) Notes Concerning the Consolidated Financial Statements(Note Concerning the Premise of a Going Concern)
Not applicable(Note in the Case of Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Adoption of Simplified Methods in the Preparation of the Quarterly Financial Statements)
Tax expenses for the Company and a portion of its consolidated subsidiaries are calculated by making areasonable estimate of the effective tax rate after applying tax effect accounting to the amount of quarterly
net income before tax deduction for the consolidated fiscal year including the current third quarteraccounting period, and then multiplying the amount of quarterly net income before tax deduction by thecurrent estimated effective tax rate.

9

(Segment Information)
Ⅰ 3rd quarter of the previous consolidated fiscal year/FY 2019 (April 1, 2019 through Dec. 31, 2019)

1. Information on sales and profit or loss by reportable segment(Unit: thousands of yen)Amount recorded inContent

Point Service

Label

Total

Adjustment
Consolidated Financial
amount (Note 1) Statements (Note 2)

Net sales
Sales to external
2,732,844
customers
Intersegment sales
82,060or transfer amountTotal

2,060,936 10,432,767

15,226,548－

15,226,548

3,532

85,803△85,803－2,814,904 2,061,147 10,436,300

15,312,352△85,803

15,226,548

525,883△3,454522,428

211

Segment income or△453,196
loss (△)

109,599

869,480

Notes: 1. The segment income or loss (△ ) adjustment amount of △ ¥3,454 thousand is calculated by eliminating intersegment
transactions.
2. Segment income or loss amounts are adjusted with operating income 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 3rd quarter of the current consolidated fiscal year/FY 2020 (April 1, 2020 through Dec. 31, 2020)

1. Information on sales and profit or loss by reportable segment(Unit: thousands of yen)Content

Point Service

Label

Total

Amount recorded in
Adjustment
Consolidated Financial
amount (Note 1) Statements (Note 2)

Net sales
Sales to external
2,209,092
customers
Intersegment sales
145,021or transfer amountTotal

15,097,633－

15,097,633

13,402

158,569△158,569－

2,354,113 2,885,389 10,016,700

15,256,203△158,569

15,097,633

631,766

1,992

633,759

Segment income or△383,563
loss (△)

2,885,243 10,003,298
146

283,063732,267

Notes: 1. The segment income or loss ( △ ) adjustment amount of ¥1,992 thousand is calculated by eliminating intersegment
transactions.
2. Segment income or loss amounts are adjusted with operating income 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.

10