Summary of Consolidated Business Results for the Fiscal Year Ended September 30, 2013
November 5, 2013
Listed Market: TSE

SEPTENI HOLDINGS CO., LTD.
Stock Code: 4293 URL: http://www.septeni-holdings.co.jp/en
Representative:
President and Representative Director Koki Sato
Contact Person:
Managing Director Kazumi Shimizu, Telephone: +81-3-6863-5623
Anticipated General Annual Shareholder Meeting Date: December 20, 2013
Anticipated Dividend Payment Date:
December 4, 2013
Anticipated Financial Report Filing Date:
December 20, 2013
Supplemental Earnings Presentation Materials:
Available
Earnings Presentation Meeting:
Held for institutional investors, analysts, media(All figures of less than 1 million yen are rounded down to the nearest digit)

1. Consolidated Earnings for the Fiscal Year Ended September 2013 (October 1, 2012 – September 30, 2013)(% figures represent year-over-year change)(1) Consolidated Earnings
Net Sales

Operating Income

Million Yen%

Ordinary Income%

Net Income%

Million Yen%

FY9/1345,982
11.2
1,593
4.3
1,752
7.0
FY9/12
41,358
19.4
1,527
64.5
1,638
67.2
(Note) Comprehensive income: ¥1,251 million in FY9/13 (63.1%); ¥767 million in FY9/12 (83.7%)

1,207
677

78.3
57.8

EPS

Million Yen

Fully Diluted EPS
YenMillion Yen

ROE

ROA

Yen

Operating Margin%

FY9/13
47.90
46.56
17.2
FY9/12
26.91
26.22
10.9
(Reference) Minority shareholding income: ¥100 million in FY9/13; ¥113 million in FY9/12

%

%

11.5
12.3

3.5
3.7

(Note) The Company implemented a 200-for-1 stock split for its common stock on October 1, 2013. EPS and fully diluted EPS are calculated on theassumption that the stock split was implemented at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total Assets

Net Assets

Million Yen

Net Asset Ratio

Book Value per Share

Million Yen%

Yen

FY9/1316,0238,380
FY9/12
14,362
7,246(Reference) Capital: ¥7,574 million in FY9/13; ¥6,467 million in FY9/12

47.3
45.0

300.26256.85(Note) The Company implemented a 200-for-1 stock split for its common stock on October 1, 2013. Book value per share is calculated on theassumption that the stock split was implemented at the beginning of the previous fiscal year.

(3) Consolidated Cash Flow Conditions
Cash flow from operating
activities

Cash flow from investing
activities

Cash flow from financing
activities

Cash and Equivalents

Million Yen

Million Yen

Million Yen

Million Yen

1,094
1,183

417
-401

-85
-242

6,570
5,131

FY9/13
FY9/12

2. Dividend Conditions
Dividends
End of 1Q
FY9/12
FY9/13
FY9/14 Estimate(Note) 1.

2.

―
―
―

End of 2Q

Yen

―
―
―

Yen

End of 3Q―――

Term-end

Yen

Total Value of
Dividends

Total

Dividend Payout
Ratio(Consolidated)

Dividend to Net
Asset Ratio(Consolidated)

Yen

Yen

Million Yen%%

1,000.00
1,400.00―

1,000.00
1,400.00
―

125
176

18.6
14.6

2.0
2.5

―

Estimates for dividends in the fiscal year ending September 30, 2014 have yet to be decided. For the dividend policy, please refer to “1.
Earnings Performance, Financial Conditions Analysis, (3) Basic Policy Regarding the Distribution of Profits, and Dividends in the Current
and Next Terms.”
The Company implemented a 200-for-1 stock split for its common stock on October 1, 2013. The figures for the fiscal year ended
September 30, 2013 are stated based on the number of shares before the stock split.

3. Earnings Estimates for the First Quarter of the Fiscal Year Ending September 30, 2014 (October 1, 2013 – December
31, 2013)
Net Sales
1st quarter(cumulative)(% figures represent year-over-year change)
Ordinary Income
Net Income
EPS

Operating Income

Million Yen%

Million Yen%

Million Yen%

Million Yen%

Yen

12,400

13.8

580

99.5

590

74.5

340

82.2

13.48

(Note) Instead of full-year earnings estimates, the Company discloses its earnings estimates for the next quarter. For details, please refer to “1.
Earnings Performance, Financial Conditions Analysis, (1) Earnings Performance Analysis” in this document.

* Annotation(1) Important changes in subsidiaries, including changes in the scope of consolidation: None
(2) Changes in accounting methods, procedures, presentation methods
Changes accompanying revisions in accounting standards:
None
Other changes in accounting methods:
None
Changes in accounting estimates:
None
Redisplay of revisions:
None(3) Shares issued (common stock)
Shares issued as of term-end (incl. Treasury stock): FY9/13
27,011,200 FY9/12
Treasury stock as of tem-end:
FY9/13
1,784,600 FY9/12
Average number of shares outstanding:
FY9/1325,201,633 FY9/12

26,963,800
1,784,600
25,168,700(Note) The Company implemented a 200-for-1 stock split for its common stock on October 1, 2013. The shares issued (common stock) were
calculated on the assumption that the stock split was implemented at the beginning of the previous fiscal year.

(Reference) Non-Consolidated Earnings Overview
1. Non-Consolidated Earnings for the Fiscal Year Ended September 2013 (October 1, 2012 – September 30, 2013)(% figures represent year-over-year change)(1) Non-Consolidated Earnings
Net Sales
FY9/13
FY9/12

Operating Income

Net Income%

Million Yen%

Million Yen%

Million Yen

%

1,908
1,535

24.3
5.7

659
407

61.8
-32.7

694
384

80.8
-35.2

136
246

-44.4
-45.6

EPS
FY9/13
FY9/12

Ordinary Income

Million Yen

Fully Diluted EPS
Yen

Yen

5.43
9.78

5.28
9.53

(Note) The Company implemented a 200-for-1 stock split for its common stock on October 1, 2013. EPS and fully diluted EPS are calculated on theassumption that the stock split was implemented at the beginning of the previous fiscal year.

(2) Non-Consolidated Financial Position
Total Assets
Million Yen

FY9/13
FY9/12(Reference)

Net Assets

Net Asset Ratio

Book Value per Share

Million Yen

%

Yen

6,983
6,267
6,989
6,209
Capital: ¥6,219 million in FY9/13; ¥6,180 million in FY9/12

89.0
88.4

246.53245.45(Note) The Company implemented a 200-for-1 stock split for its common stock on October 1, 2013. Book value per share is calculated on theassumption that the stock split was implemented at the beginning of the previous fiscal year.

SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results

Index

1. Earnings Performance, Financial Conditions Analysis ································································· 2(1) Earnings Performance Analysis ························································································· 2(2) Financial Conditions Analysis ··························································································· 3(3) Basic Policy Regarding the Distribution of Profits, and Dividends in the Current and Next Terms ··········· 5
2. Corporate Structure ··········································································································· 6
3. Management Policy ··········································································································· 7(1) Basic Corporate Management Policy ··················································································· 7(2) Medium- to Long-Term Corporate Strategy and Issues to Be Addressed ········································· 7
4. Consolidated Financial Statements ························································································· 8(1) Consolidated Balance Sheet ····························································································· 8(2) Consolidated Income Statement, Comprehensive Income Statement ············································· 10(3) Change in Consolidated Shareholders’ Equity Statement ·························································· 12(4) Consolidated Cash Flow Statement ···················································································· 14(5) Notes to Consolidated Financial Statements ·········································································· 16(Notes Regarding Going Concern Assumptions)········································································· 16[Business Segment Information] ······························································································ 16-1-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results

1. Earnings Performance, Financial Conditions Analysis(1) Earnings Performance Analysis(Earnings Performance in the Current Term)
During the current term, the Japanese economy followed an upward trend, albeit a moderate one, as corporate earnings
improved, particularly in export-oriented industries, and consumer spending recovered, reflecting a correction in theexcessive appreciation of the yen due to expectations for the economic and fiscal policies of the current government,
inaugurated in December 2012, and monetary easing policy.
With regard to the Internet business environment in which the SEPTENI Group operates, while Internet use via personal
computers has become commonplace, the rapid dissemination of smartphones has increased their presence as a new way toaccess the Internet, and as a result, the market for smartphone advertising and related services is expanding. Also, due tothe rise of social networking services (SNS) and other social media, new business opportunities such as marketing supportand social games, which take advantage of these social media, have been increasing.
In this environment, the Group was able to expand its operations and increase profitability in its mainstay Internet
Marketing Business by promoting business operations focusing on growth areas, namely “smartphones” and “social
media.” In addition, it began making upfront investments in human resources and new businesses, etc. to strengthen its
future competitiveness. As a result, the Group achieved growth in both sales and profits, with net sales increasing to¥45,982 million (up 11.2% year on year) and operating income rising to ¥1,593 million (up 4.3% year on year) on aconsolidated basis. Ordinary income came to ¥1,752 million (up 7.0% year on year), partly reflecting an increase in
non-operating income due to a rise in gains on the valuation of investment securities, etc. The Group also posted total
extraordinary income of ¥313 million from selling two Group companies in the second quarter.
Therefore, net income rose by 78.3% year on year, to ¥1,207 million. All sales and income figures represent new record
highs.

We discuss the business performance of each of our business segments below.

Internet Marketing BusinessIn the Internet Marketing Business, we provide comprehensive marketing support services to customers by leveraging thepower of the Internet. Specifically, we engage in sales of Internet advertising and provision of Web solutions (website
creation and operation, SEO services) in addition to in-house services including marketing platform operations for ad
networks and cloud-based CRM services.
During the current term, the segment was able to steadily expand its operations against the backdrop of improving
business confidence and higher demand for performance-based advertising represented by advertisements targeting
keywords. Sales rose particularly strongly in smartphone advertising, a growth area, posting an increase of approximately
2.6 times sales from the previous term. In marketing support services using Facebook (the world’s largest SNS), an area
the Group is strong in, advertising billings increased substantially, thanks to an increase in the number of users and thelaunch of advertising materials for mobile phones (smartphones). As such, the Group made considerable progress in its
targeted businesses. In addition, local subsidiaries established in the United States (San Francisco) and Singapore in theprevious term continued to develop their customer bases, and the Group began creating a business foundation overseas
by establishing a local subsidiary in Hanoi, Vietnam, as a development base for the Company’s own services.
As a result of these developments, net sales and operating income rose by 17.4% and 44.5% year on year, to ¥39,458
million and ¥2,016 million, respectively.

Media Content BusinessIn the Media Content Business, we plan and develop various digital content, including social games, music, publications,streaming video, fortune telling, etc. to provide to individual users of smartphones and feature phones via SNS, mobile
phone carriers, and other platforms.
During the current term, we expanded segment operations by releasing some new social game titles, a targeted area. As aresult, we maintained a certain presence in browser games on SNS. However, sales in the social game business exhibitedsluggish performance, declining 5% year on year, to approximately ¥2.0 billion, partly due to changes in the businessenvironment such as growth in the native applications (game applications for smartphones) market. Given these-2-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results

environmental changes, we strived to improve our earnings and development capabilities by actively engaging incollaboration and commissioned orders from the third quarter. As part of these endeavors, AXEL MARK INC.
established the first native application in collaboration with SEGA.
Meanwhile, we made upfront investments to develop new businesses other than games, including the Manga content
business.
As a result of the above, net sales came to ¥3,714 million (down 14.3% year on year), and operating loss came to ¥219
million (compared with operating income of ¥227 million in the previous term).

(Earnings Estimates for the Next Term)
For the term ending September 30, 2014, the Group aims to increase its operating income on a consolidated basis byincreasing its profits in the Internet Marketing Business, while continuing to aggressively invest in new businesses, withan eye on medium- and long-term growth.
With respect to the Internet Marketing Business, we will seek to expand operations and improve profitability on asustainable basis by focusing on the three key business areas of “Mobile,” “Social,” and “Global.”
Regarding the mobile game business in the Media Content Business, we plan to mainly focus on the native applications
business, where the market is expected to grow, by reallocating our management resources. With respect to new
businesses, we plan to make active investments to improve profitability, mainly in the Manga content business.

(First Quarter Earnings Estimates)
The Company publishes its earnings estimates for the next quarter when it announces its quarterly results.
For the first quarter of the term ending September 30, 2014, we expect both sales and profits to increase, given that thebusiness performance of our mainstay Internet Marketing Business remains firm. In this business segment, as temporary
factors to boost gross profit are expected to arise only in the first quarter, they are expected to push up operating income,in addition to growth in profits, due to higher sales.
In the Media Content Business, although sales are expected to decline due to a dearth of new mobile game titles forrelease, operating loss is anticipated to shrink on a year-on-year basis, thanks to a reduction in expenses, among otherfactors.
Given these circumstances, today the Company announced its earnings estimates for the first quarter of the fiscal year
ending September 30, 2014, as follows:

Earnings Estimates for the First Quarter of the Fiscal Year Ending September 30, 2014 (October 1, 2013 – December 31,
2013)
Net Sales
Operating Income
Ordinary Income
Net Income¥12,400 million¥580 million¥590 million¥340 million

The estimates stated above are our forecasts based on the information currently available, and contain uncertain elements
to a large extent. Actual earnings may differ from the above estimates due to various factors.

(2) Financial Condition Analysis
Assets, Liabilities, Net Asset Conditions(Assets)
Current assets grew by ¥2,121 million from the end of the previous term, to ¥13,502 million at the end of the current term
due to increases in cash and deposits and notes and accounts receivable-trade of ¥1,539 million and ¥745 million,
respectively.
Non-current assets declined ¥460 million from the end of the previous term, to ¥2,520 million, mainly attributable to a

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SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results¥121 million drop in goodwill and a ¥267 million decline in investment securities, despite an increase in software in
progress of ¥126 million.
As a result of these changes, total assets rose by ¥1,660 million from the end of the previous term, to ¥16,023 million at
the end of the current term.
(Liabilities)
Current liabilities rose by ¥701 million from the end of the previous term, to ¥7,590 million at the end of the current
term, partly due to ¥637 million and ¥189 million increases in accounts payable-trade and short-term loans payable,
respectively, despite a ¥111 million decrease in accounts payable-other.
Non-current liabilities declined by ¥174 million from the end of the previous term, to ¥52 million, primarily attributable
to a ¥126 million decrease in long-term loans payable.
Consequently, total liabilities grew by ¥526 million, to ¥7,643 million over the same period.
(Net Assets)
Net assets grew by ¥1,134 million from the end of the previous term, to ¥8,380 million, partly due to inflow from net
income of ¥1,207 million, which offset ¥125 million in dividend payments.

Cash Flow Conditions
During the current fiscal year, cash and equivalents grew by ¥1,439 million from the end of the previous term, to ¥6,570
million.
We provide the details of our various cash flows for the current fiscal year below.
(Cash Flow from Operating Activities)
During the current fiscal year, we saw a net inflow of ¥1,094 million from operating activities, compared with a ¥1,183
million inflow in the previous term.
Factors contributing to this inflow included a ¥753 million increase in receivables, ¥850 million in corporate tax
payments, a ¥688 million increase in payables, and the realization of ¥1,999 million in net income before taxes.

(Cash Flow from Investing Activities)
A net cash inflow of ¥417 million was seen in investing activities, compared with an outflow of ¥401 million in theprevious term.
The factors contributing to this inflow included ¥617 million in proceeds from the sale of investment securities, which
offset ¥100 million in payments into time deposits, ¥59 million in purchases of property, plant and equipment, and ¥160
million in purchases of intangible assets.

(Cash Flow from Financing Activities)
In the current term, a net cash outflow of ¥85 million was recorded in financing activities, compared with an outflow of¥242 million in the previous term.
This outflow is attributed to a ¥137 million repayment of long-term loans payable and ¥125 million in cash dividends
paid, which offset a ¥189 million increase in short-term loans payable, etc.

-4-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results(Reference) Trends in Cash Flow-Related Indicators
FY9/09FY9/10FY9/11

FY9/12

FY9/13

Net Asset Ratio (%)

44.0

45.3

48.6

45.0

47.3

Capital Adequacy Ratio, Market Capitalization Based (%)

53.7

43.6

42.8

62.0

139.5

Cash Flow to Interest-Bearing Debt Ratio (%)

531.2

122.0

155.5

73.7

77.9

Interest Coverage Ratio
13.5
66.2
46.5
116.6
Net Asset Ratio: Net Assets / Total Assets
Capital Adequacy Ratio: Market Capitalization / Total Assets
Cash Flow to Interest-Bearing Debt Ratio: Interest-Bearing Debt / Cash Flow from Operating Activities
Interest Coverage Ratio: Cash Flow from Operating Activities / Interest Payments
1. Each indicator is based on consolidated financial data.
2. Market capitalization is based on outstanding shares, excluding treasury stock.
3. Cash flow is based on cash flow from operating activities.
4. Interest-bearing debt includes all liabilities on our consolidated balance sheet that bear interest payments.

180.0(3) Basic Policy Regarding the Distribution of Profits, and Dividends in the Current and Next Terms
We recognize that returning profits to our shareholders is a key management issue, and will flexibly implement the policy
outlined below regarding the appropriate distribution of profits.
With regard to the distribution of retained earnings, we will consider our consolidated earnings performance, the need tofortify our financial position, and the Group’s forward-looking business strategy while at the same time endeavoring tomaintain a dividend payout ratio of around 15%. Furthermore, we have established a minimum full-year dividend target
level of 1,000 yen per share,* and seek to strike a balance between stable dividends and an appropriate level of profit
distribution to allow us to grow our earnings. In addition, we will endeavor to utilize our retained earnings forinvestments in training personnel, optimizing and reinvigorating our existing businesses, and capturing new businessareas that have the potential for high growth and profitability.
Based on these policies, we expect to pay a ¥1,400 dividend per share during the current fiscal year.
Furthermore, with regard to dividends in the next term, we expect to implement a dividend in accordance with theabovementioned policy, and will announce the specific value for our dividend estimate as soon as we announce earnings
estimates for the full year.

* The minimum full-year dividend target level will be ¥5 from the fiscal year ending September 30, 2014, due to the
200-for-1 stock split implemented on October 1, 2013.

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SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results

2. Corporate Structure
As of September 30, 2013, the SEPTENI Group comprises the holding company SEPTENI HOLDINGS, 19 consolidated
subsidiaries, and two equity accounting method held affiliates and is engaged in Internet marketing, media content, anddirect marketing businesses.
Below is description of businesses and a breakdown of the companies that belong to each of the Group’s businesssegments.
Business Segment
Internet Marketing

Media Content

Direct Marketing

Business Description
Internet advertising sales, Web solutions (website
creation, operation, SEO services), marketing platform
operations for ad networks, cloud-based CRM services,
Internet marketing support services for corporations
Various kinds of digital content for smartphones andfeature phones (social games, music, publications,streaming video, fortune telling, etc.), mobile media
operations
Consigned sales promotion direct mailing, paper media
mailings

Main Consolidated Subsidiaries
SEPTENI CO., LTD.
Tricorn Corporation

AXEL MARK INC.
SEPTENI DIRECT
MARKETING CO., LTD.

SEPTENI’s Corporate Structure
Service,
Product
Provision

Capital Participation
Management Leadership,
SupervisionInternet Marketing Business

Internet Advertising Agency

SEPTENI CO., LTD.

Tricorn Corporation

SEPTENI HOLDINGS CO., LTD.

11 other companies

Media Content Business

AXEL MARK INC.
4 other companies

Direct Marketing Business

SEPTENI DIRECT MARKETING CO., LTD.

-6-

Clients (Companies, Individual Users)

Cloud-based CRM Services

SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results

3. Management Policy(1) Basic Corporate Management Policy
As no important revisions have been made since the announcement of earnings for the fiscal year ended September 30,
2011, released on November 4, 2011, we have omitted our comments here. To review the earlier announcement, please
visit our home page: http://www.septeni-holdings.co.jp/en/.

(2) Medium- to Long-Term Corporate Strategy and Issues to Be Addressed(Summary of our midterm business plan)
The Group has been implementing the three-year midterm business plan it created, with the fiscal year ended September
30, 2013 as the final year, for the purpose of improving its corporate value on a sustainable basis by creating andfostering the next high-growth businesses.
During this three-year period, although the performance of existing businesses centering on the Internet Marketing
Business remained almost as forecast, the speed of growth of new businesses centering on our own B-to-C services was
slower than expected, mainly due to environmental changes in the social game market. As a result, consolidated earnings
for the fiscal year ended September 30, 2013 consisted of net sales of ¥45.9 billion and operating income of ¥1.59 billion.
Meanwhile, as the development of new businesses has accelerated since we formulated our midterm business plan, we
launched 11 new businesses during the three-year period, eight of which are currently continuing, which are expected tocontribute to the future growth of the Group.

(Midterm business policies from the fiscal year ending September 30, 2014)
The Group intends to continue to accelerate its profit growth going forward, and has established a concept of “double
profits” in the midterm business policies that it has formulated recently for the years from the fiscal year ending
September 30, 2014. The aim of these midterm business policies is to further increase profits and improve the corporate
value of the Group by creating a second mainstay business along with Internet advertising, as well as by increasing theshare of highly profitable businesses, whether these are existing or new businesses. To that end, it regards “Mobile,”“Social,” and “Global” as its three business focuses, and will work to further expand the Group’s operations and improve
its profitability by strengthening its existing businesses and promoting the development of new businesses mainly inthese areas.

-7-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results

4. Consolidated Financial Statements(1) Consolidated Balance Sheet(Unit: Thousand Yen)
Previous Term(Ended September 30, 2012)

Current Term(Ended September 30, 2013)

Cash and deposits

5,131,651

6,670,715

Notes and accounts receivable-trade5,624,447

6,370,263

AssetsCurrent assets

Products

50,455−

Unfinished products

21,193

16,933

Stored goods

6,908

5,436

Deferred tax assets

175,692

135,495

Other

388,962

324,375

Doubtful account reserves-18,044-20,769

11,381,265

13,502,450

Buildings, structures (net)

227,072

156,720

Tools, furniture and fixtures (net)100,294

99,317

5,180

1,631

332,547

257,670

Goodwill

527,839406,243

Software59,38347,660Software in progress

95,687

222,413

Lease assets

63,602

−

Other

5,428

1,335

751,940

677,652

1,231,692

964,609

Deposits and security deposits

585,030

569,625

Deferred tax assets

49,43520,283

Other

30,84031,316-94-278

1,896,905

1,585,556

Total current assets
Non-current assets
Property, plant and equipment

Other (net)Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets
Investment securities

Doubtful account reserves
Total investments and other assets
Total non-current assets
Total assets-8-

2,981,393

2,520,879

14,362,659

16,023,329

SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results(Unit: Thousand Yen)
Previous Term(Ended September 30, 2012)

Current Term(Ended September 30, 2013)

Accounts payable-trade

4,432,307

5,069,836

Short-term loans payable553,338

742,588

Portion of long-term loans payable due within one year

110,371

99,996

Lease liabilities

30,783

1,488

Accounts payable-other355,983

244,563

Unpaid taxes

414,495

413,355

Bonus reserves

275,063

305,737

720−

Liabilities
Current liabilities

Product return adjustment reserves
Office moving expense reserves

23,172−

Other693,100

712,835

6,889,336

7,590,401

Long-term loans payable

135,295

8,345

Lease liabilities

42,282245

Other49,44044,026

Total non-current liabilities

227,017

52,617

7,116,354

7,643,019

Capital2,009,979

2,025,310

Capital reserves

3,110,912

3,120,395

Retained earnings

1,847,644

2,911,589

Treasury stock-485,011-485,011

Total shareholders’ equity

6,483,525

7,572,284-14,626-10,875

Foreign currency translation adjustment-1,68013,208

Total accumulated other comprehensive income-16,307

2,332

Total current liabilities
Non-current liabilities

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on marketable securities

Stock options

28,83048,614

Minority interests

750,257

757,078

Total net assets

7,246,304

8,380,310

14,362,659

16,023,329

Total liabilities and net assets-9-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results(2) Consolidated Income Statement, Comprehensive Income Statement(Consolidated Income Statement)(Unit: Thousand Yen)

Net Sales

Previous Term
(October 1, 2011–
September 30, 2012)
41,358,333

Current Term
(October 1, 2012–
September 30, 2013)
45,982,078

32,724,980
8,633,352
822
720
8,633,454
7,105,679
1,527,775

37,106,891
8,875,186
720
920
8,874,986
7,281,685
1,593,301

1,487
1,309
8,102
113,524
22,470146,894

5,841
1,704
52,658100,428
40,304200,936

10,14814,559
5,031
−
6,693
36,433
1,638,236

6,077
13,354−20,0002,152
41,584
1,752,653

9,281
−
5,873
15,155

209,879
103,197−
313,076

137,578−−
154,945
49,930342,454
1,310,936
609,900-69,251
540,648770,287
93,105677,182

8,747
9,758
43,890−4,137
66,534
1,999,195
705,296
61,370766,667
1,232,528
25,332
1,207,196

CGS
Gross income
Reversal of provision for sales returns
Provision for sales returns
Adjusted gross income
SG&A
Operating income
Non-operating income
Interest income
Dividend income
Gain on valuation of investment securities
Minority shareholding income
Other
Total non-operating income
Non-operating expenses
Interest payment
Share listing related expenses
Limited liability partnership liquidation loss
Commission fee
Other
Non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sales of subsidiaries’ stocks
Gain on change in minority shareholdings
Total extraordinary income
Extraordinary loss
Impairment accounting losses
Loss on valuation of investment securities
Settlement package
Staggered acquisition loss
Other
Total extraordinary losses
Net income before taxes
Corporate, residence, enterprise taxes
Corporate tax adjustment
Total taxes
Income before minority interests
Minority interest losses
Net income- 10 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results(Consolidated Comprehensive Income Statement)(Unit: Thousand Yen)

Income before minority interests
Other comprehensive income
Valuation difference on marketable securities
Foreign currency translation adjustment
Minority shareholdings in affiliates
Total other comprehensive income
Comprehensive income(Details)
Comprehensive income attributable to parent shareholding
Comprehensive income attributable to minority interests- 11 -

Previous Term
(October 1, 2011–
September 30, 2012)
770,287

Current Term
(October 1, 2012–
September 30, 2013)
1,232,528-1,306-1,680-219

3,532
14,889219-3,206

18,640767,0811,251,168

673,976
93,1051,225,836
25,332

SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results(3) Changes in Consolidated Shareholders’ Equity Statement(Unit: Thousand Yen)
Previous Term
(October 1 2011–
September 30, 2012)
Shareholders’ equity
Capital
Total at previous term end
Change in current term
New stock issued

Current Term
(October 1, 2012–
September 30, 2013)

2,007,848

2,009,979

2,131

15,3312,131
2,009,979

15,331
2,025,310

3,108,781

3,110,912

2,131

9,482

2,131
3,110,912

9,482
3,120,395

1,296,288

1,847,644-125,826
677,182−-125,896
1,207,196-17,355

551,356
1,847,644

1,063,945
2,911,589

Treasury stock
Total at previous term end-485,011-485,011

Total at current term end-485,011-485,011

5,927,906

6,483,525

4,262-125,826
677,182−555,618
6,483,525

24,814-125,896
1,207,196-17,355
1,088,759
7,572,284

Total change in current term
Total at current term end
Capital reserves
Total at previous term end
Change in current term
New stock issued
Total change in current term
Total at current term end
Retained earnings
Total at previous term end
Change in current term
Dividends from retained earnings
Net income
Change in scope of consolidation
Total change in current term
Total at current term end

Total shareholders’ equity
Total at previous term end
Change in current term
New stock issued
Dividends from retained earnings
Net income
Change in scope of consolidation
Total change in current term
Total at current term end- 12 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results(Unit: Thousand Yen)
Previous Term
(October 1, 2011–
September 30, 2012)

Current Term
(October 1, 2012–
September 30, 2013)

Accumulated other comprehensive income
Valuation difference on marketable securities
Total at previous term end
Change in current term
Net change in items other than shareholders’ equity
Total change in current term
Total at current term end
Foreign currency translation adjustment
Total at previous term end
Change in current term
Net change in items other than shareholders’ equity
Total change in current term
Total at current term end
Accumulated other comprehensive income
Total at previous term end
Change in current term
Net change in items other than shareholders’ equity
Total change in current term
Total at current term end
Stock option
Total at previous term end
Change in current term
Net change in items other than shareholders’ equity
Total change in current term
Total at current term end
Minority interests
Total at previous term end
Change in current term
Net change in items other than shareholders’ equity
Total change in current term
Total at current term end
Total net assets
Total at previous term end
Change in current term
New stock issued
Dividends from retained earnings
Net income
Change in scope of consolidation
Net change in items other than shareholders’ equity
Total change in current term
Total at current term end- 13 --13,100-14,626-1,526-1,526-14,626

3,751
3,751
-10,875−-1,680-1,680-1,680-1,68014,88914,88913,208-13,100-16,307-3,206-3,206-16,307

18,64018,6402,332

33,082

28,830-4,251-4,251
28,83019,784
19,784
48,614394,979

750,257

355,278355,278
750,257

6,821
6,821
757,078

6,342,866

7,246,304

4,262-125,826
677,182−
347,819
903,438
7,246,304

24,814-125,896
1,207,196-17,355
45,246
1,134,005
8,380,310

SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results(4) Consolidated Cash Flow Statement(Unit: Thousand Yen)
Previous Term
(October 1, 2011–
September 30, 2012)
Cash flow from operating activities
Net income before taxes
Depreciation and amortization
Impairment accounting loss
Amortization of goodwill
Increase (decrease) in doubtful account reserves
Increase (decrease) in bonus reserves
Increase (decrease) in provision for loss on business
Gain (loss) on valuation of investment securities (gain)
Gain (loss) on sales of investment securities (-: gain)
Interest and dividends income
Interest payment
Gain (loss) on minority shareholding
Gain (loss) on change in minority shareholding income
Gain (loss) on staggered acquisition translation
Gain (loss) on sales of subsidiaries' stocks
Increase (decrease) in receivables
Increase (decrease) in inventories
Increase (decrease) in payables
Other
SubtotalInterest and dividends received
Interest paid
Tax claims payment
Corporate and other taxes
Net cash provided by operating activities
Cash flow from investing activities
Payments into time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of investments in subsidiaries resulting in change
in scope of consolidation
Purchase of investments in subsidiaries
Payments for the sale of investments in subsidiaries
resulting in a change in the scope of consolidation
Collection of loans receivable
Deposits and security deposits payment
Income from the collection of deposits and security
deposits
Other
Net cash provided by (used in) investing activities- 14 -

Current Term
(October 1, 2012–
September 30, 2013)

1,310,936
174,318
137,578
114,791-11,347
120,548-59-8,102-9,281-2,796
10,148-111,408-4,934
154,945−-824,260
17,592
251,582
314,198
1,634,451
2,796-10,197
90,907-534,899
1,183,058

1,999,195
149,920
8,747
150,500
2,909
30,674−-42,899-209,879-7,545-6,077-97,741−−-103,197-753,507-643
688,782
25,566
1,846,960
7,545-5,80995,838-850,409
1,094,125−-351,259-115,902-82,900
14,773-100,000-59,773-160,092-30,049
617,500-120,467−-41,590-19,030−-30,614

1,436-72,899

207,090-63,187361,796

43,8705,344-401,668

11,802
417,514SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results(Unit: Thousand Yen)
Previous Term
(October 1, 2011–
September 30, 2012)
Cash flow from financing activities
Increase (decrease) in short-term loans payable
Income from long-term loans payable
Repayment of long-term loans payable
Income from minority shareholdings
Cash dividends paid
Cash dividends paid to minority shareholders
Other
Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and equivalents
Increase (decrease) in receivables in cash and cash
equivalents resulting from merger of subsidiaries
Increase in cash and cash equivalents resulting from mergers
with unconsolidated subsidiaries
Decrease in cash and cash equivalents resulting from theexclusion of subsidiaries from consolidation
Cash and equivalents at term start
Cash and equivalents at term end- 15 -

Current Term
(October 1, 2012–
September 30, 2013)-175,000
300,000-220,558
11,023-125,826-1,440-30,244-242,045-1,680537,663

189,250−-137,325−
125,896-3,280-8,711-85,962
14,8891,440,567

140,678

−

−

2,444

−

-3,946

4,453,309
5,131,651

5,131,651
6,570,715

SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results(5) Notes to Consolidated Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable[Business Segment Information]
1. Business Segment Overview
Our Group’s reported segments are the individual units for which independent financial information can be derived, andare considered on a regular basis by our Board of Directors for the purpose of determining the allocation of management
resources and the evaluation of earnings.
Furthermore, the Group has categorized its business segments in accordance with market categorizations, and has
determined three business segments, namely the “Internet Marketing Business,” “Media Content Business,” and “Direct
Marketing Business.” Because of their relative importance in terms of business volume, we have divided our reported
business segments into two, which are the “Internet Marketing Business” and the “Media Content Business.”
Further descriptions of our reported business segments are provided below.
Business Segment

Business Description

Internet Marketing

Internet advertising sales, Web solutions (website creation, operation, SEO services),
marketing platform operations for ad networks, cloud-based CRM services, Internet
marketing support services for corporations

Media Content

Various digital content for smartphones and feature phones (social games, music,
publications, streaming video, fortune telling, etc.), mobile media operations

2. Method of Calculation Relating to Reported Business Segment Sales, Income, Assets, and Other Items
The accounting methods used for our reported business segments are the same as those mentioned in the section titled“Important basic items used in the creation of consolidated financial statements.”
Income in the reported business segment information is based on operating income.
Internal earnings and the amounts transferred between business segments are based on actual market pricing.

- 16 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results

3. Information Relating to Reported Business Segment Sales, Income, Assets, and Other Items
Fiscal Year Ended September 30, 2012 (October 1, 2011 – September 30, 2012)(Unit: Thousand Yen)
Reported Business Segments

Other(Note 1)

Total

Adjustment(Note 2, 3)

Consolidated
Account(Note 4)

Internet
MarketingMedia Content

Subtotal

33,552,894

4,333,118

37,886,013

3,471,716

41,357,729

604

41,358,333

46,817

1,959

48,776

14,71763,494-63,494−

33,599,711

4,335,077

37,934,789

3,486,434

41,421,223-62,890

41,358,333

Operating income

1,396,226

227,941

1,624,167

154,091

1,778,258-250,483

1,527,775

Assets8,996,993

2,182,489

11,179,482

929,514

12,108,997

2,253,662

14,362,659

Sales
External sales
Internal sales,transfers
Total

Other items
Depreciation
94,853
17,067111,920
41,259153,180
21,137
174,318
Change in property,
plant and equipment
323,594
28,760352,354
21,177
373,532
124,137
497,669
and intangible assets
1. “Other” includes the Direct Marketing Business and Commerce Business, which are not included in the reported segments.
2. The operating income in the adjustment category of -¥250.483 million includes ¥8.201 million in intersegment cancellations and¥0.604 million in companywide income that cannot be allocated to each segment, and -¥259.288 million in companywide
expenses. Companywide income mainly consists of management fees for non-consolidated subsidiaries, while companywide
expenses include operating costs for the holding company that cannot be allocated to specific segments.
3. Assets in the adjustment category of ¥2,253.662 million mainly consist of cash and deposits, investment securities, and assets
associated with operations of the holding company.
4. Segment income is based on an adjustment of operating income in the consolidated financial statements.

- 17 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/13 Business Results

Fiscal Year Ended September 30, 2013 (October 1, 2012 – September 30, 2013)(Unit: Thousand Yen)
Reported Business Segments

Other(Note 1)

Total

Adjustment(Note 2, 3)

Consolidated
Account(Note 4)

Internet
MarketingMedia Content

Subtotal

39,354,580

3,708,890

43,063,471

2,917,956

45,981,428

650

45,982,078

104,123

5,286

109,410

5,037

114,447-114,447−

Total

39,458,704

3,714,176

43,172,881

2,922,994

46,095,875-113,797

45,982,078

Operating income/loss

2,016,919-219,469

1,797,449

160,552

1,958,001-364,700

1,593,301

Assets

10,203,427

2,229,501

12,432,929

728,555

13,161,485

2,861,844

16,023,329

Sales
External sales
Internal sales,transfers

Other items
Depreciation
91,615
17,987
109,603
13,883
123,486
26,433
149,920
Change in property,
plant and equipment
142,615
16,588159,203
5,909
165,11349,568214,681and intangible assets
1. “Other” includes the Direct Marketing Business and other businesses, which are not included in the reported segments.
2. The operating income/loss in the adjustment category of -¥364.700 million includes ¥7.025 million in intersegment cancellationsand ¥0.650 million in companywide income that cannot be allocated to each segment, and -¥372.376 million in companywide
expenses. Companywide income mainly consists of management fees for non-consolidated subsidiaries, while companywide
expenses include the operating costs for the holding company that cannot be allocated to specific segments.
3. The assets in the adjustment category of ¥2,861.844 million mainly consist of cash and deposits, investment securities, and assets
associated with operations of the holding company.
4. Segment income/loss is based on an adjustment of operating income in the consolidated financial statements.

- 18 -