BRIEF STATEMENT OF CONSOLIDATED FINANCIAL RESULTS
FOR THE 1st HALF OF THE FISCAL YEAR ENDING MARCH 2010
November 11, 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: November 12, 2009
Starting Date of the Dividend Payment: December 10, 2009
Amounts are rounded down to the nearest JPY 1 million.

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

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

Net SalesFirst half of the year
ending March 2010
First half of the year ended
March 2009First half of the year ending
March 2010
First half of the year ended
March 2009

Operating Profit%

Recurring Profit%

Net Profit

Millionsof yen%26,332

4.1

747

△17.7

690

△6.9

157

△45.1

25,291

―

907

―

741

―

287

―

Millionsof yenNet Profit per
Share
Yen
137.52

DilutedNet
Profit per ShareYen
135.26241.51―Millionsof yen%Millionsof yen(2) Consolidated financial position
Total Assets

Net Assets

Ratio of Equity
CapitalNet Assets per
Share

Millions of yen

Millions of yen

Millions of yen%

Yen

First half of the year ending
March 2010
First half of the year ended
March 2009

30,34915,65847.5

12,568.94

30,496

14,49943.8

11,634.84

Reference: Equity Capital: the 1st half of the fiscal year ending March 2010: 14,429 million yen/ 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

Interim

yen
―

yen
50.00

―

50.00
50.00

3rd Quarter

Year-end

Total(Annual)

yen
―

yen
50.00

yen
100.00―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 SalesYear ending
March 2010

Operating Profit

Recurring Profit

Net Income

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

Net Income
per ShareYen

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 1H.

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 half 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 half 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 half 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 first half of consolidated fiscal 2009, the six months ended September 30, 2009, broadband
became further widespread, and the mobile phone market saw popularity in high-speed data
communication and the flat-rate packet system. Against this backdrop, the advancing environment isenabling various terminals connected together under a common network, and that allows users to haveeasier access to information and contents they want wherever they are. The connectable terminals include
not only PCs and mobile phones, but also TVs, game consoles and a certain range of home appliances.
Hardware also continues developing. Examples are the commercialization of home 3D TVs, connection ofmobile phones and home appliances, and development of new lines of terminals. In the content market
where further growth is expected, new kind of content is produced one after another by utilizing various
functions and information. The content market is expanding to cover even wider areas where no content toprovide in digital form existed before. The market has reached the phase that it can provide content fromany genres. In this way, the overall environment including network, software and hardware has been
improving to allow users to access and enjoy content more easily.
Under the circumstances, Faith Group has been promoting a creation of ubiquitous content environmentthat are converged at its service concept, "multi-content on multi-platform" that enables users to enjoy any
content whenever and wherever they are. This effort is made based on the recognition that the user needs
are not only in the expansion of existing services such as provision of content and development ofmulti-terminal compatibilities, but also in improved convenience with utterly new inventions. It will be
realized partly by providing services that optimally matches users' preference and environment, and freefrom restrictions of terminal specifications. The Group has actively been taking measures such as
developing new services and solutions based on its unique ideas, and collaborating with various companies
in even wider industries. In so doing, the Group has been developing new business models and providing
content that users truly need.
The digital content market is expected to expand continuously and "Digital Content White Paper 2009",
issued by Digital Content Association of Japan, forecasts that the market size will reach ¥6.5 trillion in2009 (¥5.8 trillion in 2008).
Under the market environment mentioned above, consolidated net sales for the first half of fiscal 2009
increased 4.1% year on year to ¥26,332 million led by the continuous high growth in the electronic money
business. Operating profit was ¥747 million, down 17.7% year on year, recurring profit was ¥690 million,
down 6.9% year on year, and net profit of ¥157 million, 45.1% year on year decrease due to the decline insales of the ringtone business.
Information on each business segment is as follows:<Contents Business>
Faith Group strove to establish new business schemes and to expand and strengthen its operating basethrough activities such as building partnership with other leading companies during the period underreview.
The Group tied up with "Short Shorts Film Festival & Asia" authorized by the Academy Awards andfounded "Music Short Creative Award" to launch a related business. This new award invites entries ofvideo works which are created with music from prominent labels in Japan, and the excellent works will beshown at theaters and distributed to mobile phone and PC through network. By this award, the group
established the unique model of one-stop service and presented a new business evolution both to recordlabels and to film industry. The Group also strove to increase users and improve user environment whichenables them to enjoy video distribution services on a wide range of terminal devices including mobile
phone, PC and digital appliances.
The Group launched a development and distribution business of applications for iPhone and iPod touch
under the brand name of "COOK", targeted at companies dealing with music and books. These applications
enable them to handle products and promotions regardless of the existing distribution system and inventory
control and to deliver the contents world-wide. The Group expands this application development service forvarious industries including publishing and music industries.
The Group tied up with WILLCOM, Inc. and developed a home information device equipped with XGP,
the high-speed data transmission. Utilizing this device, the Group launched regional revitalization programby delivering various useful information and entertaining contents including contingency plan, regional or
medical information and entertainment contents to each home. The Group proceeds with the construction ofa new content distribution platform.
In the medical and health information service business, the Company continued collaboration 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 strove to provide improved "Pocket Karte" service, an electronic medical
recording system with which users can retrieve their record on their mobile phones, by adding 160,000
medical institutions such as hospitals, clinics and dentists on its search list. (The number of the users
exceeded 10,000 in the last fiscal year.)
As a result, net sales in the content business totaled ¥5,004 million, down 24.1% year on year, andoperating profit decreased 47.1% year on year to ¥387 million. These figures resulted from a decline insales of the ringtone business and other factors.
<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 electronic money continued to increase in the field of
online game, the main sector in which electronic money used, as well as music and video distribution.
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 of WebMoney, in which growing demand is
expected. "Petit-Kampa" enables individual users to donate in WebMoney to creators or social action
works, and "Soku-Furi" provides function for interpersonal WebMoney transaction by embedding asettlement cashier on individual websites or blogs. The Group also launched "ONLINE GAME messe", aninformation sharing site that distribute online game information and share the feedback among the users.
In addition to the efforts mentioned above, the Group expanded base of users by the launch of an
advertisement distribution widget, "manna", which provides points changeable to WebMoney depending on
the viewing time.
As a result, net sales in the Electronic Money Business increased 15.0% year on year to ¥20,701 million.
Operating profit increased by 122.8% year on year to ¥334 million due to an increase in the settlement
amount and other factors.
<Other Businesses>
Factors such as revenues from the point-card system business led sales in other businesses to ¥617 million,a decrease by 11.8% year on year. Operating profit was ¥39 million, up 16.2% 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 half of fiscal year 2009 decreased by ¥147 million from the end of theprevious consolidated fiscal year to ¥30,349 million. This result is mainly due to the decrease incommercial products caused by revaluation and amortization of goodwill caused by write-off, despite thegain on revaluation of investments in securities.

Total liabilities decreased by ¥1,305 million against the end of the previous consolidated fiscal year to¥14,691 million yen, caused by the repayment of debt.
Net assets increased by ¥1,158 million against the end of the preceding consolidated fiscal year to ¥15,658
million and equity capital ratio advanced by 3.7 percent point to 47.5%. These records are due to theincrease in foreign currency translation adjustment and in valuation difference on available-for-salesecurities driven by revaluation of investments in securities.
(2) Cash Flow
Cash and cash equivalents at the end of this 1st half ended September 30, 2009 increased by ¥2,262 million
from the end of the previous consolidated fiscal year to ¥12,911.
Cash flows from operating activities amounted to an inflow of ¥2,980 million down 54.4%. This is due
mainly to the posting of ¥709 million of net income before taxes and other adjustments, ¥1,122 ofamortization of goodwill and ¥2,136 of depreciation of trade receivable, despite the posting of ¥699 million
of decrease in accounts payable.
Cash flows from investing activities amounted to an inflow of ¥331 million (an outflow of ¥343 million in
the 1st half ended September 30, 2008), due mainly to the posting of ¥2,950 million of income from refundof long-term loans and ¥155 million of income from sale of shares of affiliated company, despite theexpenditure in the amount of ¥2,800 million for payments into time deposits.
Cash flows from financing activities amounted to an outflow of ¥1,070 million (an outflow of ¥1,559
million in the 1st half ended September 30, 2008), mainly because of the expenditure in the amount of ¥56
million for dividend payment and ¥1,030 million of repayment of long-term loans.

3. Qualitative information regarding forecast of consolidated financial results
Operating results for the 1st half of fiscal year 2009 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, due to theincrease in settlement amount of WebMoney driven by continuous expansion of online game market andthe slowing in downward trend of ringtone subscribers. However, the economic trend and stock market
leave unpredictable and uncertain elements. Because of the concern on the effect on consumption trend oncontents market, the Company has not revised consolidated financial forecasts the year ending March 31,
2010.

4. Others(1) Changes in major subsidiaries during the 1st half of fiscal year 2009 (Changes in specific subsidiaries
causing change in the scope of consolidation):
Changes in specific subsidiaries are as follows:
Exclusion: Desperado, Inc.
Changes in subsidiary 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 half of the financial period and before tax
deduction.

5. Consolidated Financial Statement for the 1st half(1) Consolidated Balance Sheet for the 1st half
(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
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
OthersTotal current liabilities
Fixed liabilities
Long-term liabilities
Deferred tax liabilities
Allowance for retirement benefits
OthersTotal fixed liabilities
Total liabilities

The 1st Half of FY2009

FY 2008(As of September 30, 2009)
Amount(As of March 31, 2009)
Amount15,621,246
4,832,916
239,966
121,073
41,037
14,932
264,304
447,326
387,677△99,070
21,871,410

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

408,289

437,136

3,969,064
607,164
4,576,229

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

2,901,125684,647△100,380
3,485,392
8,469,910
7,991
30,349,312

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

5,580,766
2,019,920
440,592
3,450,606
305,423
93,452
848,354
12,739,115

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

1,033,600
801,62474,002
42,945
1,952,173
14,691,289

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
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

The 1st Half of FY2009

FY 2008(As of September 30, 2009)
Amount(As of March 31, 2009)
Amount3,218,000
3,708,355
7,454,623△651,377
13,729,601

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

1,192,821△492,646
700,174
1,228,246
15,658,023
30,349,312

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

(2) Consolidated Profit and Loss Statement for the 1st half of the fiscal year
(April 1, 2009 through September 30, 2009)(Thousands of yen)the 1st Half of FY2008

the 1st Half of FY2009(As of September 30, 2008)(As of September 30, 2009)

Net sales

25,291,152

26,322,745

Cost of Sales

19,539,410

21,159,520

Gross profit

5,751,742

5,163,225

Selling, general and administrative expenses

4,843,855

4,415,850

Operating profit

907,887

747,374

Non-operating profit
Interest income
Dividend income
Interest securities
Miscellaneous receipts

30,92815,9305,249
17,866

21,74015,778
5,064
17,84969,97460,342

Interest expense
Investment profit on equity method
Exchange loss
Miscellaneous expense

43,746
138,549
23,62730,42025,51854,06928,516
9,538

Total non-operating expenses

236,343

117,644741,519

690,163

Gain on disposal of investment securities
Gain on sale of shares of affiliated company
Reversal of allowance for doubtful accounts
Gain on transfer of operation
Reversal of loss from disposal of business
Others141,606
95,96853,987

5,192
108,271
36,0005,000
2,789

Total extraordinary profit

291,563

157,254

Loss ｆrom transfer of operation
Others160,973
294,976
286,989
17,10918,41784,724
3,395
31,562

Total extraordinary loss

760,048

138,099

Quarterly net profit before income taxes

273,034

709,317

Corporate, local, and business taxes
Income or Loss on minority shareholders

104,879△119,345

487,701
63,742

287,500

157,874

Total non-operating profit
Non-operating expenses

Recurring profit
Extraordinary profit

Extraordinary loss
Loss from investment securities valuation
Amortization of goodwill
Loss from disposal of operation

Quarterly net profit

(3) Consolidated Statements of Cash Flows for the 1st half of the fiscal year
(April 1, 2009 through September 30, 2009)(Thousands of yen)the 1st Half of FY2008

the 1st Half of FY2009(April 1, 2008 through(April 1, 2009 throughSeptember 30, 2008)

September 30, 2009)

Cash flow from operating activities
Quarterly net profit before income taxes

273,034

709,317

Depreciation and amortization

254,670

174,438

Amortization of goodwill

1,463,295

1,122,127

Increase (decrease) in allowance for doubtful accounts△84,390△144,163

10,622△2,062

Increase (decrease) in allowance for utilized cost

△55,557

134,520

Increase (decrease) in allowance for points△40,417△56,234

5,454

931

Decrease in reserve for loss from disposal of subsidiary△300,561-

Interest and dividends income△46,859△37,518

Interest on securities△5,249△5,064

Interest expenses

43,74625,518Foreign exchange loss

3,475

22,025Gain on sale of investment securities△141,606△113,464

Valuation Loss on investment securities

160,973

18,417

Loss from investment in equity method

138,549

54,069Loss from equity movement-

12,632

Loss from disposal of fixed assets-△2,706

Gain on disposal of business

286,989

84,724

Decrease in accounts and notes receivable-trade552,843

2,136,313

Decrease (increase) in inventories△14,798

119,325

Decrease in accounts and notes payable-trade△488,420△699,665

Increase in consumption taxes receivable△115,083

18,678Others△36,511△434,880

Sub-total

1,864,198

3,137,283

Interest and dividends received

113,733

40,937

Interest expenses paid

△43,763△25,562

Income taxes refunded

118,751

97,315

Income taxes paid

△122,281△269,071

Cash flow from operating activities

1,930,637

2,980,901

Increase (decrease) in reserve for bonus

Increase in allowance for retirement benefits

(Thousands of yen)the 1st Half of FY2008

the 1st Half of FY2009(April 1, 2008 through(April 1, 2009 throughSeptember 30, 2008)

September 30, 2009)

Cash flow from investing activities
Expenditure for deposit of time deposits△3,280,000△2,800,000

Proceeds from withdrawal of time deposits

3,700,000

2,950,096

Expenditures for acquisition of tangible fixed assets△148,288△51,695-

3,875

Expenditure for acquisition of software△435,949△115,740

Expenditure for acquisition of investment securities△105,000△7,685

157,159

128,191-

155,662△261,649-

Income from loans collection

34,98350,332Others△5,17918,067△343,924

331,104

Net decrease in short-term loans△500,000-

Proceeds from long-term loans

25,000-△1,039,960△1,039,790

69,452

46,323

Payment of dividends△59,368△56,880

Expenditure for dividends to minorities△30,238△28,695

Others△24,700-△1,559,814△1,070,042

Effect of exchange rate on cash and cash equivalents△73,511

20,113

Net increase or decrease in cash and cash equivalents△46,6122,262,076△67,634-

Cash and cash equivalents at beginning of year

10,614,234

10,649,135

Cash and cash equivalents at end of year

10,499,986

12,911,212

Income from disposal of tangible fixed assets

Income from disposal of investment securities
Income from sale of shares of affiliated company
Expenditure for loans receivable

Net cash flow used in investing activities
Cash flow from financing activities

Expenditure for repayment of long-term loans
Proceeds from payment from minorities

Net cash flow used in financing activities

Decrease in cash and cash equivalents result fromexcluded subsidiaries from consolidation

(4) Explanatory note regarding premise of a going concern
Not applicable(5) Segment Information[Business segment information]
1st half of the fiscal year 2008 (April 1, 2008 through September 30, 2008)(Unit: thousands of yen)Content
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

6,592,950

17,998,139

700,063

25,291,152–

25,191,152

100,251

2,942–

103,193△103,193–

6,693,201

18,001,081

700,063

25,394,346△103,193

25,291,152

732,297

150,10933,723

916,131△8,243907,887

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

three 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, and development andlicensing of distribution platform technologies, producing content
creationIssuance and sales of electronic money and providing electronic
settlement platforms
Point service and other business

Contents businessElectronic Money business
Other businesses

1st half of the fiscal year 2009 (April 1, 2009 through September 30, 2009)(Unit: thousands of yen)Content
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

5,004,069

20,701,545

617,129

26,322,745–

26,322,745

186,262

1,600–

187,862△187,862–

5,190,332

20,703,145

617,129

26,510,607△187,862

26,322,745

387,436

334,446

39,202761,085△13,710747,374

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

three 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, and development andlicensing of distribution platform technologies, producing content
creationIssuance and sales of electronic money and providing electronic
settlement platforms
Point service and other business[Geographical segment information]
The 1st half of the previous fiscal year ended March 2009 (April 1, 2008 through September 30, 2008)
and the 1st half of this fiscal year ending March 2010 (April 1, 2009 through September 30, 2009)
Geographical segment information is omitted since net sales in Japan dominated more than 90% of total
sales.

[Overseas sales]
The 1st half of the previous fiscal year ended March 2009 (April 1, 2008 through September 30, 2008)
and the 1st half of this fiscal year ending March 2010 (April 1, 2009 through September 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