FY2011 First Quarter Consolidated Financial Highlights

November 12th, 2010

Company name:Company code number:

Macromill, Inc.
3730
( URL : http://www.macromill.com/)
Tokyo Stock Exchange , 1stsection
Tetsuya Sugimoto, Chairman and President
Yasuhiro Kihara, Chief Financial Officer+81-3-6716-0700
November 15th, 2010

Shares traded:
Representative:
Contact person:
Telephone:
Planned filing date of quarterly securities report:
Supplemental materials prepared for quarterly
financial results:
Earnings announcement for quarterly financialresults:

yesno1. Consolidated operating results ( July 1, 2010 to September 30, 2010 )(1) Consolidated financial results (For the three months ended September 30)(In millions of yen, with fractional amounts discarded)(Percent of change from previous first quarter)

Net sales
FY2011 firstquarter
FY2010 firstquarter

Operating income

Ordinary income

Net income(Millions of yen)%

(Millions of yen)%

(Millions of yen)%

(Millions of yen)

%

2,848

61.6

568

47.7

582

58.3

283

4.3

1,762

(12.1)

384(17.1)

367(21.7)

271

19.7

Net income per share

Net income per share(diluted)(Yen)

FY2011 first quarter
FY2010 first quarter(Yen)

1,911.80
2,199.60

1,901.24
2,197.54(2) Consolidated financial position
Total assets

Net assets(Millions of yen)

FY2011 first quarter
FY2010(Note) Total equity
2.

Equity ratio

Net assets per share(Millions of yen)％(yen)

10,862
7,734

80.3
82.8

69,649.20
57,740.64

13,486
9,313

September 30, 2010: 10,834 million yen

June 30, 2010: 7,711 million yen

Dividends
Annual dividend per share

End of firstquarter(Yen)

FY2010FY2011FY2011 (forecast)-End of secondquarterEnd of thirdquarter(Yen)(Yen)

Year-end

Total(Yen)(Yen)

1,500.00-

1,800.00

3,300.00

2,000.00-

1,800.00

3,800.00(Note) Revisions to the forecast of cash dividends in the current quarter: none-1-3.

Forecast of consolidated results for FY2011 (From July 1, 2010 to June 30, 2011)(Percent of change from relevant previous term)
Net sales(Millions of yen)First half
Annual5,821
12,530Operating income％ (Millions of yen)

64.4
70.4

900
2,467

Ordinary income％ (Millions of yen)

2.5
15.9

920
2,506

Net income

Net income％ (Millions of yen)

6.1
17.3

398
1,304

per share％(Yen)(32.3)
3.0

2,620.13
8,483.43(Note) Revisions to the forecast of consolidated results in the current quarter: none
4.

Others(1) Changes in significant subsidiaries during the current quarter: none
(Note) This item indicates whether there were changes in specified subsidiaries that caused a change in the scope ofconsolidation during the current quarter.
(2) Application of simplified accounting procedures, or application of special accounting procedures in creating
consolidated financial statements for the quarter under review: none
(Note) This item indicates whether the company has adopted simplied accounting procedures and accounting
procedures specific to quarterly consolidated financial statements.
(3) Changes in principles/methods of accounting treatment, presentation method or other items related to preparation ofconsolidated financial statements (basis of presentation and significant accounting policies)
1) Changes related to revision of accounting standards: yes
2) Changes other than those included in 1) above: yes(4) Number of outstanding shares (common share)
1) Number of shares issued and outstanding at the end of each period (including treasury stock):
FY2011 first quarter:
FY2010:161,578 shares
138,586 shares

2) Number of treasury stock at the end of each period:
FY2011 first quarter:
6,026 shares
FY2010:5,026 shares
3) Average number of shares issued and outstanding in each period:
FY2011 first quarter:
148,249 shares
FY2010 first quarter:
123,560 shares* Disclaimer regarding appropriate use of forecasts and related points of note
The above forecasts were based on information that was available as of the day of this announcement and on
assumptions made as of the same day regarding a number of uncertainties that could affect future financialperformance. Actual results could differ considerably depending on a variety of factors hereafter.

-2-Consolidated Balance Sheets
Description(Thousands of yen)

As of September 30, 2010

As of June 30, 2010

AmountAmountAssets
Current assets
Cash and deposits

6,525,121

5,209,063

Notes and accounts receivable-trade

2,386,135

1,451,541

Short-term investment securities

215,000

220,000

Work in process

18,974

3,270

Preproduction

2,809

6,264

Supplies1,989

1,490

Deferred tax assets

535,318

287,873

Other

136,474

Allowance for doubtful accounts(1,349)116,716(1,028)9,820,475

7,295,192

483,741

175,744

Software441,276

314,809

Goodwill

516,199

98,721

Other

347,634

8,565

1,305,110

422,096

1,071,876

960,217

Other

807,139

461,003

Allowance for doubtful accounts(1,438)(871)

Total investments and other assets

1,877,576

1,420,349

3,666,428

2,018,190

13,486,903

9,313,382

Total current assets
Noncurrent assets
Property, plant and equipmentIntangible assets

Total intangible assets
Investments and other assets
Investment securities

Total noncurrent assets
Total assets-3-Description

As of September 30, 2010

As of June 30, 2010

AmountAmountLiabilities
Current liabilities
Accounts payable-other

1,016,876

Income taxes payable

210,161

Allowance for panelists-points

899,954

Reserve for bonuses

85,157586,220－

Asset retirement obligations

67,113－

Other

253,921

174,505

2,533,185

1,579,063

Asset retirement obligations

90,862－

Total long-term liabilities

90,862－

2,624,047

1,579,063

Capital stock

1,597,858

1,597,858

Capital surplus

4,863,632

1,631,399

Retained earnings

5,002,396

4,959,382

Treasury stock(611,344)(447,796)

10,852,543

7,740,843

Valuation difference on available-for-sale securities(18,471)(29,004)

Total valuation and translation adjustments(18,471)(29,004)

28,78422,47910,862,856

7,734,319

13,486,903

9,313,382

Total current liabilities

303,232
515,105

Long-term liabilities

Total liabilities
Net assets
Shareholders' equity

Total shareholders' equityValuation and translation adjustments

Subscription rights to shares
Total net assets
Total liabilities and net assets-4-Consolidated Statements of Income
Description(Thousands of yen)

FY2010 first quarter(Three months ended
September 30, 2009)

FY2011 first quarter(Three months ended
September 30, 2010)

AmountAmountNet sales

1,762,818

2,848,616

Cost of sales

831,118

1,474,889

Gross profit

931,699

1,373,726

Selling, general and administrative expenses

546,707805,271

Operating income

384,992

568,455

13,976－13,197

Other1,973

1,670

Total non-operating income

15,95015,051684

Non-operating income
Interest income
Dividends income

182

Non-operating expenses
Loss on transfer of accounts receivable

20,374661－

Equity in losses of affiliates
Stock issuance expenses

10,119
－

640

Other

1,931

20

Total non-operating expenses

33,1091,322

367,833

582,184

5,239

14,193－24,323－54,083

5,239

92,599

Income before income taxes and minority interests

362,594

489,584

Income taxes-current

171,645

203,711

Income taxes-deferred(68,682)

2,450

Total income taxes

102,963

206,161－

283,422

Minority interests in loss

(12,151)－Net income

271,782

283,422

Interest expenses

Ordinary income－Extraordinary loss
Loss on retirement of noncurrent assets
Loss on adjustment for changes of accounting standard
for asset retirement obligations

Integration-related expenses
Total extraordinary losses

Income before minority interests in loss

-5-

Consolidated statements of cash flow

(Thousands of yen)

Description

FY2010 first quarter(Three months ended
September 30, 2009)

FY2011 first quarter(Three months ended
September 30, 2010)

AmountAmountNet cash provided by (used in) operating activities
Income before income taxes and minority interests

362,594

489,584

Depreciation and amortization

62,43485,267

Amortization of goodwill

27,239

9,364

Increase (decrease) in allowance for doubtful accounts

(740)

888

Increase (decrease) in allowance for panelists-points

32,176

Increase (decrease) in reserve for bonuses

24,756－

Interest and dividends income(13,976)

Foreign exchange losses (gains)

10,449(13,197)－

Equity in (earnings) losses of affiliates

10,119－Loss on retirement of noncurrent assets

5,239

14,193Loss on adjustment for changes of accounting standard for－

asset retirement obligations

61,19424,323－54,083

Decrease (increase) in notes and accounts receivable-trade

39,366(113,226)

Decrease (increase) in inventories(7,034)

34,697

Increase (decrease) in accounts payable-other(44,166)

112,601

Decrease (increase) in consumption taxes payable

7,846

16,451Other, net

37,602(74,946)

Subtotal

521,728

733,453

Interest and dividends income received

17,346－(21,400)

Income taxes paid

(319,323)(492,841)

Net cash provided by (used in) operating activities

219,751

236,822－300,000

Purchase of property, plant and equipment(19,261)(12,564)

Purchase of software(25,495)(16,891)

Purchase of investment securities(89,000)

Proceeds from sales and redemption of investment securities

300,000－(87,500)－

Integration-related expenses

Interest expenses paid

17,610Net cash provided by (used in) investing activities
Payments into time deposits

Payments for lease and guarantee deposits

340

Proceeds from collection of lease and guarantee deposits
Other, net(80,421)－

Net cash provided by (used in) investing activities

86,161

Payments of loans receivable(117,200)
38,561－255
104,659

Net cash provided by (used in) financing activities
Payments for stock issuance－(1,841)

Purchase of treasury stock－(234,462)

Proceeds from sale of treasury stock－

95,763

Cash dividends paid

(173,432)(207,014)

Net cash provided by (used in) financing activities(173,432)(347,555)-6-

Description

FY2010 first quarter(Three months ended
September 30, 2009)

FY2011 first quarter(Three months ended
September 30, 2010)

AmountAmountEffect of exchange rate change on cash and cash equivalents(10,482)－Net increase (decrease) in cash and cash equivalents

121,998(6,073)

Cash and cash equivalents at beginning of period

2,842,041

4,909,063－

1,622,131

2,964,040

6,525,121

Increase (decrease) in cash and cash equivalents resulting
from integration of absorption-type split
Cash and cash equivalents at end of period-7-