Summary of Consolidated Business Results for the Fiscal Year Ended September 30, 2015
November 5, 2015
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:
IR division Manager Eiichi Sou, Telephone: +81-3-6857-7258
Anticipated General Annual Shareholder Meeting Date: December 18, 2015
Anticipated Dividend Payment Date:
December 2, 2015
Anticipated Financial Report Filing Date:
December 18, 2015
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 2015 (October 1, 2014 – September 30, 2015)(% figures represent year-over-year change)(1) Consolidated Earnings
Net Sales

Operating Income

Million Yen%

Ordinary Income%

Net Income%

Million Yen%

FY9/1564,547
18.8
2,753
21.9
3,118
32.0
FY9/1454,345
18.2
2,259
41.8
2,362
34.8
(Note) Comprehensive income: ¥2,229million in FY9/15 (28.2%); ¥1,738million in FY9/14 (38.9%)

2,398
1,549

54.8
28.3

EPS

Million Yen

Fully Diluted EPS
YenMillion Yen

ROE

ROA

Yen

Operating Margin%

FY9/15
92.87
92.03
23.4
FY9/14
61.22
59.54
18.5
(Reference) Minority shareholding income: ¥88 million in FY9/15; ¥66 million in FY9/14

%

%

13.3
12.6

4.3
4.2

(2) Consolidated Financial Position
Total Assets

Net Assets

Million Yen

Net Asset Ratio

Book Value per Share

Million Yen%

Yen

FY9/1525,387
12,286
FY9/14
21,625
10,203(Reference) Capital: ¥11,289 million in FY9/15; ¥9,177 million in FY9/14

44.5
42.4

435.62361.85(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

1,874
2,830

1,257
-913

-123
178

11,6948,687

FY9/15
FY9/14

2. Dividend Conditions
Dividends
End of 1Q
FY9/14
FY9/15
FY9/16 Estimate(Note)―――Yen

End of 2Q
―
―
―

Yen

End of 3Q
―
―
―

Yen

Term-end

Total Value of
Dividends

Total

Dividend Payout
Ratio(Consolidated)

Dividend to Net
Asset Ratio(Consolidated)

Yen

Yen

Million Yen

%

%

9.00
14.00
―

9.00
14.00
―

228
362

14.7
15.1

2.7
3.5

―

Estimates for dividends in the fiscal year ending September 30, 2016 have yet to be decided.

3. Consolidated Earnings Estimates for the First Quarter of the Fiscal Year Ending September 30, 2016 (October 1, 2015
– December 31, 2015)(% figures represent year-over-year change)
Profit attributable to owners of the
Basic EPS
Company

Revenue
1st quarter(cumulative)

Million Yen%

Million Yen

%

Yen

3,900

22.3

500

-52.6

19.29

・Non GAAP Operating Income:800 million(YY Change:60.7%)(Note) 1. Above Earnings Estimates are based on IFRS since we decided to voluntarily adopt IFRS from FY 2016. Year-over-year change has been
restated based on previous year’s data in accordance with IFRS.
2. Instead of full-year earnings estimates, the Company discloses its earnings estimates for the next quarter.

* Annotation(1) Important changes in subsidiaries, including changes in the scope of consolidation: Applicable
Newly included: 1 company Game Creator Incubation LLP(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): FY9/15
27,700,700 FY9/14
Treasury stock as of term-end:
FY9/15
1,784,600 FY9/14
Average number of shares outstanding:
FY9/1525,821,541 FY9/14

27,147,000
1,784,600
25,305,333(Reference) Non-Consolidated Earnings Overview
1. Non-Consolidated Earnings for the Fiscal Year Ended September 2015 (October 1, 2014 – September 30, 2015)(% figures represent year-over-year change)(1) Non-Consolidated Earnings
Net Sales
FY9/15
FY9/14

Operating Income

Net Income%

Million Yen%

Million Yen%

Million Yen

%

2,842
2,521

12.7
32.1

1,276
1,105

15.5
67.6

1,503
1,163

29.2
67.6

2,033
1,267

60.4
826.0

EPS
FY9/15
FY9/14

Ordinary Income

Million Yen

Fully Diluted EPS
Yen

Yen

78.77
50.10

78.06
48.72

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

FY9/15
FY9/14(Reference)

Net Assets

Net Asset Ratio

Book Value per Share

Million Yen

%

Yen

9,977
9,247
8,165
7,406
Capital: ¥ 9,212 million in FY9/15; ¥ 7,376 million in FY9/14

92.3
90.3

355.46290.84

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 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. Basic Concept of Selection of Accounting Standards ···································································· 7
5. 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(Related to the Consolidated Cash Flow Statement) ··································································· 16(Business Segment Information) ·························································································· 16(Per-Share Information) ···································································································· 22
6. Other ··························································································································· 16-1-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results

1. Earnings Performance, Financial Conditions Analysis(1) Earnings Performance Analysis(Earnings Performance in the Current Term)
Looking at the Internet business environment in which the SEPTENI Group operates, the rapid proliferation ofsmartphones has continued, with the number of domestic contracts as of the end of March 2015 totaling 68.50 million,
which makes up 54.1% of the total number of mobile phone contracts (source: MM Research Institute). As such,smartphones are about to become a mainstream device for accessing the Internet and the market for smartphone
advertising and various services and content is expanding. In addition, the power of social media, led by SNS (social
networking services), has increased still further, and this is consequently prompting greater demand for marketing support
that makes use of the characteristics of social media. These changes in the operating environment have led to the Group
promoting the global expansion of its Internet business, with overseas business opportunities on the rise.
In this environment, the Group was able to continue both expanding its operations and increasing its profitability in its
mainstay Internet Marketing Business by promoting business operations with the key businesses focused on “Mobile,”“Social,” and “Global.” In addition, it proactively made upfront investments in human resources and new businesses, etc.
to strengthen its future competitiveness. As a result, net sales increased to ¥64,547 million (up 18.8% year on year),
operating income rose to ¥2,753 million (up 21.9% year on year), and ordinary income advanced to ¥3,118 million (up32.0% year on year) on a consolidated basis.
Total extraordinary gains of ¥1,238 million were recognized, consisting largely of a gain on the sale of subsidiary sharesassociated with the sale of all shares of the direct marketing subsidiary dated October 1, 2014.
Consequently, net income climbed to ¥2,398 million (up 54.8% year on year), and sales and all profit categories set record
highs for the fourth consecutive fiscal year.
We discuss the business performance of each of our business segments below.

1) 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 along with improving its profitability as aresult of success achieved by key businesses focused on “Mobile,” “Social,” and “Global,” which was backed by thegrowth of the online advertising market led by interactive advertising for smartphones. Strong growth continued insmartphone advertising, with an upswing in sales by around 1.7 times year on year, as a result of stronger demand anddiversification of advertising products. The Social Media Business providing marketing support services using SNS, inwhich the Group has strengths, expanded substantially by a factor of around 2.1, mainly as a result of the accelerated
growth of Twitter advertisements in addition to the mainstay Facebook advertising. Meanwhile, the Group actively
developed its overseas businesses, resulting in an increased volume of business at the existing bases, particularly in North
America, and consolidated the South Korean Internet advertising company; consequently, overseas sales grew
substantially, or approximately 2.2 times from a year earlier.
As a result of these developments, net sales and operating income rose by 27.5% and 34.5% year on year, to ¥61,563
million and ¥3,686 million, respectively.

2) Media Content Business
The Media Content Business plans and develops digital content, including mobile games, primarily for smartphones, andprovides it to users through SNS, the application market, and other platforms. The business also develops and produces
Manga artists and distributes Manga works, aiming to plan and develop our own intellectual property.
During the current term, two titles of native application games were released in the mobile game business operated by
AXEL MARK INC. While the sales of KINGDOM –Eiyuno keifu– remained strong, other titles struggled, resulting in adecrease in net sales in this business.
The Manga Content Business made active upfront investments in the development of Manga artists and the enhancementof the distribution service to increase the platform size. As a result, the number of users of GANMA!, an online
distribution service for new serial Manga, has grown steadily, and total application downloads rose sharply to 1.8 million-2-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results

as of the end of September 2015. The Company is promoting the commercialization of serial Manga being its own
intellectual property, and released one Anime work and three books during the current term.
As a result of the above, net sales came to ¥3,278 million (down 5.2% year on year) and operating loss ended at ¥528
million (compared with operating loss of ¥277 million in the previous term).

(Earnings Estimates for the Next Term)
1) Policy
During the fiscal year ending September 30, 2016, the Group aims to achieve the goal of “doubling profits” from among
the Midterm Business Policies announced in November 2013.
With respect to the Internet Marketing Business, the Group will seek to increase its market share and improve
profitability by focusing on the key businesses in the “Mobile,” “Social,” and “Global” areas.
Regarding the Manga Content Business in the Media Content Business, we plan to develop a larger platform and make it
profitable.
We will change the position of the Mobile Game Business, which was part of the Media Content Business in the past, toa “non-core business” in the fiscal year ending September 30, 2016. See “Notice of Making the Mobile Game Business(AXEL MARK) a Non-core Business and Changes in Subsidiaries (Share Transfer) without a Change in the Scope ofConsolidation” released today.
2) Voluntary adoption of international accounting standards (“IFRS”)
The company is voluntarily adopting the IFRS from the fiscal year ending September 30, 2016. The following are themajor changes made to the disclosure of financial results.
 How to record earnings (Top Line)The conventional recording of the total amount (gross), which included advertising purchases, will be changed to therecording of net amounts, indicating only the margin, in the sale by advertising agents, comprising a large part of theInternet Marketing Business. As a result, the amount of net sales will be reduced substantially from the amount of net
sales in the past when the amounts are compared in the same transaction. From now on, net sales will be disclosed
voluntarily as a reference.
 Disclosure of

Non-GAAP operating income

The Group will voluntarily disclose its Non-GAAP operating income to more appropriately express the actual state of
the business.
Non-GAAP operating income is a profit indicator of constant business performance determined by adjusting
temporary factors such as amortization expenses for intangible assets recognized in the acquisition of a subsidiary, an
impairment loss, and a gain or loss on sale of fixed assets from the IFRS-based operating income.

3) 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, 2016, we expect sales and income to increase, given that thebusiness performance of our mainstay Internet Marketing Business remains firm.
In the Media Content Business, although sales are expected to rise as a result of the contribution of new businesses, agreater deficit is anticipated on a year-on-year basis due to the advance investments in the Manga Content Business.
Given these circumstances, today the Company announced its earnings estimates for the first quarter of the fiscal year
ending September 30, 2016, as follows:

Earnings Estimates for the First Quarter of the Fiscal Year Ending September 30, 2016
(October 1, 2015 – December 31, 2015)
IncomeNon-GAAP operating income¥3,900 million¥800 million-3-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results

Profit attributable to owners of the Company¥500 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
1) Assets, Liabilities, Net Asset Conditions(Assets)
Current assets grew by ¥4,371 million from the end of the previous term, to ¥22,486 million at the end of the current term
due to increases in cash and deposits and notes and accounts receivable-trade of ¥2,902 million and ¥1,623 million,
respectively.
Non-current assets decreased by ¥609 million from the end of the previous term, to ¥2,901 million, mainly attributable toa decline of ¥507 million in goodwill and ¥232 million in deferred tax assets, despite an increase of ¥119 million in
investment securities.
As a result of these changes, total assets rose by ¥3,762 million from the end of the previous term, to ¥25,387 million at
the end of the current term.
(Liabilities)
Current liabilities rose by ¥1,871 million from the end of the previous term, to ¥12,941 million at the end of the current
term, partly due to a ¥1,633 million and ¥226 million increase in accounts payable-trade and short-term loans payable,
respectively.
Non-current liabilities decreased by ¥192 million from the end of the previous term, to ¥160 million, primarily
attributable to a ¥166 million reduction in long-term loans payable.
Consequently, total liabilities grew by ¥1,679 million, to ¥13,101 million over the same period.
(Net Assets)
Net assets grew by ¥2,082 million from the end of the previous term, to ¥12,286 million, partly due to inflow from net
income of ¥2,398 million, which offset ¥228 million in dividend payments.

2) Cash Flow Conditions
During the current fiscal year, cash and equivalents grew by ¥3,006 million from the end of the previous term, to ¥11,694
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 ¥1,874 million from operating activities, compared with a ¥2,830
million inflow in the previous term.
Factors contributing to this inflow included a ¥1,892 million increase in receivables, ¥1,703 million in corporate tax
payments, a ¥1,751 million increase in payables, and the realization of ¥4,061 million in net income before taxes.
(Cash Flow from Investing Activities)
A net cash outflow of ¥1,257 million was seen in investing activities, compared with an inflow of ¥913 million in theprevious term.
The main factors contributing to this included a ¥1,249 million inflow from proceeds from the sales of investments in
subsidiaries resulting in a change in the scope of consolidation and a ¥1,024 million inflow from repayment of time
deposits, which offset an outflow of ¥118 million due to the purchase of property, plant and equipment and an outflow of¥933 million due to payments into time deposits.
(Cash Flow from Financing Activities)
In the current term, a net cash inflow of ¥123 million was recorded in financing activities, compared with an outflow of¥178 million in the previous term.

-4-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results

This is attributable largely to the cash dividend paid of ¥228 million.

(Reference) Trends in Cash Flow-Related Indicators

FY9/11

FY9/12

FY9/13

FY9/14

FY9/15Net Asset Ratio (%)

48.6

45.0

47.3

42.4

44.5

Capital Adequacy Ratio, Market Capitalization Based (%)

42.8

62.0

139.5

149.3

219.3

Cash Flow to Interest-Bearing Debt Ratio (%)

155.5

73.7

77.9

42.8

67.3

Interest Coverage Ratio
46.5
116.6
180.0
557.6
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.

357.1(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 ¥5 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 for investments in training
personnel, optimizing and reinvigorating our existing businesses, and capturing new business areas that have the potential
for high growth and profitability.
Based on these policies, we expect to pay a ¥14 dividend per share during the current fiscal year.
Due to the shift to the IFRS, “consolidated net income” will be changed to “Profit attributable to owners of theCompany” and “annual dividend per share” will be changed to “basic annual dividend per share” in the above basic
policy, and dividends will be paid based on the basic policy after the change. We will announce the specific amount of
estimated dividends as soon as the financial result forecasts for the full year become available for disclosure.

-5-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results

2. Corporate Structure
As of September 30, 2015, the SEPTENI Group comprises the holding company SEPTENI HOLDINGS, 25 consolidated
subsidiaries, and two equity accounting method held affiliates and is engaged in Internet marketing, media content.
Below is description of businesses and a breakdown of the companies that belong to each of the Group’s businesssegments.
Business Segment

Business Description

Main Consolidated Subsidiaries

Internet Marketing

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

SEPTENI CO., LTD.
Tricorn Corporation

Media Content

Provision of digital content for smartphones centered ongames and cultivating and producing Manga Artists aimed atplanning and developing our own IP (intellectual property) as
well as operating a Manga distribution service, etc.

AXEL MARK INC.
COMICSMART INC.

SEPTENI’s Corporate Structure
Service,
Product
Provision

Capital Participation
Management Leadership,
SupervisionInternet Marketing Business
Internet Advertising Agency

SEPTENI CO., LTD.

Tricorn Corporation
15 other companies

Media Content Business
Mobile content

AXEL MARK INC.
Manga content

COMICSMART INC.
6 other companies-6-

Clients (Companies, Individual Users)

SEPTENI HOLDINGS CO., LTD.

Cloud-based CRM Services

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 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: https://www.septeni-holdings.co.jp/en/.

(2) Medium- to Long-Term Corporate Strategy and Issues to be addressed
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 in November 2013. 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 the share of highly profitable businesses, whether theseare existing or new businesses. To that end, it regards “Mobile,” “Social,” and “Global” as its three business focuses, andwill 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 in these areas.

4. Basic Concept of Selection of Accounting Standards
The Group is actively promoting its global business development and has decided to voluntarily adopt the IFRS startingin the first quarter of the fiscal year ending September 30, 2016 to increase its management quality by standardizing
accounting systems in the Group and the international comparability of financial information in the capital market,
aiming for better convenience for all of the Group’s stakeholders, including shareholders and investors in and outside
Japan.

-7-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results

5. Consolidated Financial Statements(1) Consolidated Balance Sheet(Unit: Thousand Yen)
Previous Term(Ended September 30, 2014)

Current Term(Ended September 30, 2015)

Cash and deposits

9,293,965

12,196,676

Notes and accounts receivable-trade

8,199,190

9,822,796

Unfinished products

67,3242,478Stored goods

4,050

6,122

Deferred tax assets

197,171

211,681

Other

380,977

251,737

Doubtful account reserves-27,480-4,761

18,115,200

22,486,730

Buildings, structures (net)112,284

136,418

Tools, furniture and fixtures (net)93,934111,398

AssetsCurrent assets

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

Other (net)Total property, plant and equipment

1,855

1,088

208,074

248,905

Intangible assets
Goodwill

601,206

93,406

Software269,780

245,102

Software in progress

25,113

2,300

Other

1,335

1,126

897,435

341,935

1,141,908

1,261,053

Deposits and security deposits

646,850

681,426

Deferred tax assets

547,413315,053

Other

70,82252,801

Total intangible assets
Investments and other assets
Investment securities

Doubtful account reserves
Total investments and other assets
Total non-current assets
Total assets-8--1,918-59

2,405,076

2,310,275

3,510,586

2,901,117

21,625,786

25,387,848

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results(Unit: Thousand Yen)
Previous Term(Ended September 30, 2014)

Current Term(Ended September 30, 2015)

Accounts payable-trade

7,569,396

9,203,035

Short-term loans payable

730,002956,470

Portion of long-term loans payable due within one year

175,001

166,656245－

Accounts payable-other343,499

396,148

Unpaid taxes

930,006

682,575

Bonus reserves

330,620

376,016

Other

991,070

1,160,382

11,069,841

12,941,284

Long-term loans payable

305,568

138,912

Other

47,113

21,463Liabilities
Current liabilities

Lease liabilities

Total current liabilities
Non-current liabilities

Total non-current liabilities

352,681

160,375

11,422,523

13,101,659

Capital2,053,010

2,070,160

Capital reserves

3,148,095

3,160,950

Retained earnings

4,284,190

6,453,988

Treasury stock-485,011-485,011

Total shareholders’ equity

9,000,284

11,200,087

119,979

50,895

Foreign currency translation adjustment

57,036

38,580Total accumulated other comprehensive income

177,016

89,47529,74635,509Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on marketable securities

Stock options
Minority interests

996,215

961,116

Total net assets

10,203,263

12,286,188

21,625,786

25,387,848

Total liabilities and net assets-9-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results(2) Consolidated Income Statement, Comprehensive Income Statement(Consolidated Income Statement)(Unit: Thousand Yen)
Previous Term
(October 1, 2013–
September 30, 2014)
54,345,580

Current Term
(October 1, 2014–
September 30, 2015)
64,547,685

CGS

44,203,614

52,851,029

Gross income
SG&A

10,141,965
7,882,012

11,696,655
8,942,685

Operating income
Non-operating income
Interest income
Dividend income
Gain on valuation of investment securities
Foreign exchange gains
Minority shareholding income
Other

2,259,953

2,753,969

5,099
1,686
38,355
6,593
66,3177,854

6,542
51,048208,759
49,697
88,87832,201

Total non-operating income

125,907437,127

Non-operating expenses
Interest payment
Share listing related expenses
Commission paid
Other

5,076
13,629
－
4,267

5,247
15,55845,6006,637

22,9732,362,887

73,043
3,118,052

8,476
－
－

1,098,885
122,545
17,5548,476

1,238,985

14,026
10,00025,245
5,989

251,015－
19,99424,903

Net Sales

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of subsidiaries’ stocks
Gain on sales of investment securities
OthersTotal extraordinary income
Extraordinary loss
Impairment accounting losses
Loss on sales of investment securities
Loss on valuation of investment securities
Other

55,260295,913

Net income before taxes

Total extraordinary losses

2,316,104

4,061,124Corporate, residence, enterprise taxes
Corporate tax adjustment

1,404,134-651,617

1,492,998
246,512752,516

1,739,511

1,563,587

2,321,613

14,400-76,445

1,549,187

2,398,059

Total taxes
Income before minority interests
Minority interest losses
Net income- 10 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results(Consolidated Comprehensive Income Statement)(Unit: Thousand Yen)
Previous Term
(October 1, 2013–
September 30, 2014)
1,563,587

Current Term
(October 1, 2014–
September 30, 2015)
2,321,613

130,855
43,828
174,683-69,084-23,434-92,519

Comprehensive income

1,738,271

2,229,094(Details)
Comprehensive income attributable to parent shareholding
Comprehensive income attributable to minority interests

1,723,871
14,4002,310,518-81,423

Income before minority interests
Other comprehensive income
Valuation difference on marketable securities
Foreign currency translation adjustment
Total other comprehensive income- 11 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results(3) Changes in Consolidated Shareholders’ Equity Statement
Fiscal Year Ended September 30, 2014 (October 1, 2013 – September 30, 2014)(Unit: Thousand Yen)
Shareholders’ equity
Capital
Total at previous term end

Capital reserves

2,025,310

3,120,395

27,69927,699Retained earnings
2,911,589

Total shareholders’equityTreasury stock△485,011

7,572,284

Change in current term
New stock issued

55,399Dividends from retained
earnings-176,586-176,586

Net income

1,549,187

1,549,187

Net change in items otherthan shareholders’ equity‒
27,69927,6991,372,601‒

1,428,000

2,053,010

3,148,095

4,284,190-485,011

9,000,284

Total change in current term
Total at current term end

Accumulated other comprehensive income
Valuationdifference onmarketablesecurities
Total at previous term
end

-10,875

Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive
income13,2082,332

Stock option

48,614

Minority
interests

757,078

Total net assets

8,380,310

Change in current term
New stock issued

55,399Dividends fromretained earnings-176,586

Net income

1,549,187

Net change in items
other thanshareholders’ equity

130,855

43,828

174,683-18,867

239,137

394,953

Total change in current
term

130,855

43,828

174,683-18,867

239,137

1,822,953

Total at current term end

119,979

57,036

177,016

29,746996,215

10,203,263- 12 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results

Fiscal Year Ended September 30, 2015 (October 1, 2014 – September 30, 2015)(Unit: Thousand Yen)
Shareholders’ equity
Capital
Total at previous term end

Capital reserves

Retained earnings

2,053,010

3,148,095

17,14912,855

4,284,190

Treasury stock-485,011

Total shareholders’equity9,000,284

Change in current term
New stock issued

30,005

Dividends from retained
earnings-228,261-228,261

Net income

2,398,059

2,398,059

Net change in items otherthan shareholders’ equity‒

Total change in current
term

17,14912,8552,169,797

Total at current term end

2,070,160

3,160,950

6,453,988

2,199,803-485,011

11,200,087

Accumulated other comprehensive income
Valuationdifference onmarketablesecurities
Total at previous term
end

119,979

Foreigncurrencytranslation
adjustment
57,036

Total
accumulated
othercomprehensive
income177,016

Stock option

29,746

Minority
interests

996,215

Total net assets

10,203,263

Change in current term
New stock issued

30,005

Dividends fromretained earnings-228,261

Net income

2,398,059

Net change in items
other thanshareholders’ equity-69,084-18,456-87,540

5,762-35,099-116,878

Total change in current
term-69,084-18,456-87,540

5,762-35,099

2,082,924

Total at current term
end

50,89538,58089,47535,509961,116

12,286,188- 13 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results(4) Consolidated Cash Flow Statement(Unit: Thousand Yen)
Previous Term
(October 1, 2013–
September 30, 2014)
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
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

Current Term
(October 1, 2014–
September 30, 2015)

Gain (loss) on sales of subsidiaries' stocks
Increase (decrease) in receivables
Increase (decrease) in inventories
Increase (decrease) in payables
Other

2,316,104
180,160
14,026
126,477
8,349
26,356-13,110
10,000-6,786
5,076-43,138-8,476-885,827-49,005
1,659,743
338,417

4,061,124
155,930
251,015
245,973-21,575
61,530-188,764-122,545-57,590
5,247-66,926-1,098,885-1,892,516
42,978
1,751,606
314,671

SubtotalInterest and dividends received
Interest paid
Tax claims payment
Corporate and other taxes

3,678,367
6,786-4,980130,960-980,432

3,441,276
57,590-4,32582,600-1,703,119

2,830,700

1,874,023-1,218,000
712,000-65,612-96,506-171,102
190,000-933,235
1,024,000-118,024-61,075-55,124
138,596-258,505－-32,926－－※１ 1,249,062-86,112-106,181

20,474

37,69592,543-913,748

81,833
1,257,545

Net cash provided by operating activities
Cash flow from investing activities
Payments into time deposits
Repayments from time deposit
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
Payments for the sale of investments in subsidiaries
resulting in a change in the scope of consolidation
Proceeds from sales of investments in subsidiaries resulting
in charge in scope of consolidation
Deposits and security deposits payment
Income from the collection of deposits and security
deposits
Other
Net cash provided by (used in) investing activities- 14 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results(Unit: Thousand Yen)
Previous Term
(October 1, 2013–
September 30, 2014)
Cash flow from financing activities
Increase (decrease) in short-term loans payable
Income from long-term loans payable
Repayment of long-term loans payable
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-12,586
500,000-127,772-176,586-4,160-553
178,342
21,954
2,117,249
6,570,715※２8,687,965

Cash and equivalents at term start
Cash and equivalents at term end- 15 -

Current Term
(October 1, 2014–
September 30, 2015)
226,468－-175,001-228,261-2,72055,619-123,895-1,133
3,006,540
8,687,965※２ 11,694,506

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results(5) Notes to Consolidated Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Related to the Consolidated Cash Flow Statement)* 1 Major components of assets and liabilities of a company that is no longer a consolidated subsidiary of theCompany after the sale of its shares
The following indicates the components of assets and liabilities of a company that is no longer a consolidated
subsidiary of the Company after the sale of its shares during the current term, the selling price of the shares, andproceeds from the sale.
(Unit: Thousand Yen)

Septeni Direct Marketing Co., Ltd.
Current assets
Non-current assets

626,461
11,935Current liabilities-216,782

Non-current liabilities-500

Gain on sale of subsidiary shares
Sale value
Cash and cash equivalents of consolidated subsidiary excluded from consolidation
Net: Proceeds from sales of investments in subsidiaries resulting in change in scopeof consolidation*2

1,098,885
1,520,000-270,937
1,249,062

Relationship with cash and equivalents at term end and the value of the items posted in the consolidatedbalance sheet(Unit: Thousand Yen)

Previous Term
(October 1, 2013 –September 30, 2014)

Current Term
(October 1, 2014 –September 30, 2015)

Cash and deposits balanceTime deposits with a term of over 3 months

9,293,965-606,000

12,196,676-502,170

Cash and cash equivalents

8,687,965

11,694,506(Business Segment Information)[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 two business segments, namely the “Internet Marketing Business,” and “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

Provision of digital content for smartphones centered on games and cultivating andproducing Manga Artists aimed at planning and developing our own IP (intellectual
property) as well as operating a Manga distribution service, etc.

- 16 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results

2. Method of Calculation Relating to Reported Business Segment Sales, Income, Assets, and Other Items
The methods of the accounting process for the reported 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.

- 17 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results

3. Information Relating to Reported Business Segment Sales, Income, Assets, and Other Items
Fiscal Year Ended September 30, 2014 (October 1, 2013 – September 30, 2014)(Unit: Thousand Yen)
Reported Business Segments

Other(Note 1)

Total

Adjustment(Note 2, 3)

Consolidated
Account(Note 4)

Internet
MarketingMedia Content

Subtotal

48,033,166

3,447,438

51,480,604

2,863,676

54,344,280

1,300

54,345,580

238,798

10,587249,385

3,511

252,897-252,897－

Total

48,271,964

3,458,025

51,729,990

2,867,187

54,597,177-251,597

54,345,580

Operating income/loss

2,740,554-277,411

2,463,142

186,9942,650,136-390,183

2,259,953

Assets14,901,690

2,191,237

17,092,927

651,095

17,744,022

3,881,763

21,625,786

Sales
External sales
Internal sales,transfers

Other items
Depreciation
123,844
11,994
135,839
7,269
143,108
37,051
180,160
Change in property,
152,884
plant and equipment
119,030
6,628
125,658
4,817
130,476
22,407and 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 ‐¥390,183 thousand includes ¥10,033 thousand in intersegment
cancellations and ¥1,300 thousand in companywide income that cannot be allocated to each segment, and ‐¥401,516 thousandin 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 ¥3,881,763 thousand mainly consist of cash and deposits, investment securities, andassets 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 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results

Fiscal Year Ended September 30, 2015 (October 1, 2014 – September 30, 2015)(Unit: Thousand Yen)
Reported Business Segments

Consolidated Account(Note 4)

Media Content

61,291,222

3,255,262

64,546,485

1,200Internal sales, transfers

272,615

23,676296,292-296,292

Total

61,563,838

3,278,939

64,842,777-295,092

64,547,685

Operating income/loss

3,686,693-528,778

3,157,915-403,946

2,753,969

Assets

18,026,695

2,353,103

20,379,798

5,008,049

25,387,848

Sales
External sales

Subtotal

Adjustment(Note 2, 3)Internet Marketing

64,547,685

Other items
Depreciation
120,6098,399
129,008
26,922
155,930
Change in property,
plant and equipment and
138,424
4,114
142,538
26,407
168,946
intangible assets
1. The operating income/loss in the adjustment category of ‐¥403,946 thousand includes - ¥12,702 thousand in intersegment
cancellations and ¥1,200 thousand in companywide income that cannot be allocated to each segment, and ‐¥392,443 thousandin 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.
2. The assets in the adjustment category of ¥5,008,049 thousand mainly consist of cash and deposits, investment securities, andassets associated with operations of the holding company.
3. Segment income/loss is based on an adjustment of operating income in the consolidated financial statements.

- 19 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results[Related information]
Fiscal Year Ended September 30, 2014 (October 1, 2013 – September 30, 2014)
1. Information on each product/service
This information is omitted as the same information is disclosed in the section on segment information.
2. Information on each region
This information is omitted due to the amount of sales to external customers in Japan exceeding 90% of the sales on the
consolidated income statement.
3. Information on each key customer(Unit: Thousand Yen)

Name of customer

Net sales

Name of related segment

JP21.Inc

6,511,214

Internet Marketing

Fiscal Year Ended September 30, 2015 (October 1, 2014 – September 30, 2015)

1. Information on each product/service
This information is omitted as the same information is disclosed in the section on segment information.
2. Information on each region(1) Sales(Unit: Thousand Yen)

In JapanIn other regions
55,663,429

Total
8,884,255

64,547,685(Note) 1 Net sales are categorized by country or region based on the locations of the customers.
2 Major countries or regions included in “other regions”:
United States and South Korea(2) Property, plant, and equipment
This information is omitted due to the total value of property, plant, and equipment located in Japanexceeding 90% of the value of property, plant, and equipment on the consolidated balance sheet.
3. Information on each key customer
This information is omitted due to the absence of external customers contributing to more than 10% of sales on the
consolidated income statement.
[Information Relating to Reported Business Segment Impairment Accounting Losses on Non-current Assets]
Fiscal Year Ended September 30, 2014 (October 1, 2013 – September 30, 2014)(Unit: Thousand Yen)
Reported Business Segments
Internet
MarketingImpairment
accounting losses

Media
Content−

11,250Subtotal

Other

Total
−

11,250Companywide/
Eliminations

11,250

Total

2,776

14,026

Fiscal Year Ended September 30, 2015 (October 1, 2014 – September 30, 2015)(Unit: Thousand Yen)
Reported Business Segments
Internet Marketing
Impairment
accounting losses

182,557Media Content
68,458- 20 -

Subtotal
251,015Companywide/
Eliminations

Total
－

251,015SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results[Information Relating to Reported Business Segment Amortization of Goodwill and Unamortized Balance]
Fiscal Year Ended September 30, 2014 (October 1, 2013 – September 30, 2014)(Unit: Thousand Yen)
Reported Business Segments
Internet
MarketingTotal amortization
Balance as of term end

MediaContent

Subtotal

Other

Total

Companywide/
Eliminations

Total

−

126,477

126,477−

126,477−

126,477

332,690

268,515

601,206−

601,206−

601,206

Fiscal Year Ended September 30, 2015 (October 1, 2014 – September 30, 2015)(Unit: Thousand Yen)
Reported Business Segments
Internet Marketing
Total amortization
Balance as of term end

Media Content

SubtotalCompanywide/
Eliminations

Total

131,369

114,603245,973−

245,973－

93,406

93,406−

93,406[Information Relating to Reported Business Segment Gains on Negative Goodwill]
Fiscal Year Ended September 30, 2014 (October 1, 2013 – September 30, 2014)
Not applicable
Fiscal Year Ended September 30, 2015 (October 1, 2014 – September 30, 2015)

This information is omitted as it is immaterial- 21 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results(Per-share information)(Unit: Yen)
Item

Previous Term
(October 1, 2013–September 30, 2014)

Book Value per Share
EPS
Fully Diluted EPS(Notes) The base for calculating EPS as well as fully diluted EPS is as follows.
Previous Term
Item
(October 1, 2013–
September 30, 2014)

Current Term
(October 1, 2014–September 30, 2015)

361.8561.22
59.54

435.62
92.87
92.03
Current Term
(October 1, 2014–
September 30, 2015)

EPS
Net income (¥1,000)

1,549,187

2,398,059−―

Net income associated with commonshares (¥1,000)

1,549,187

2,398,059

Average number of shares outstanding
during the term

25,305,333.33

25,821,541.67−―

Increase in the number of common shares

715,062.19

234,722.67

Of which, stock options (number ofshares)(715,062.19)(234,722.67)

Amount not attributed to commonshareholders (¥1,000)

Fully Diluted EPS
Adjusted net income (¥1,000)

Overview of dilutive shares not included in
the calculation of fully diluted net income
per share due to absence of impact from
dilution−(Material subsequent events)
Not applicable- 22 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/15 Business Results

5. Other
Changes in Directors (scheduled for December 18, 2015)①Candidate for a newly appointed director
Etsuko Okajima (currently president & CEO of ProNova Inc.)
She is a candidate for External Director as established by the Article 2, Paragraph 3, Item 7 of the Companies Act.

②Candidate for a newly appointed Auditor
Mamoru Furushima（currently Director of Furushima law and accounting firm）
He is a candidate for External Director as established by the Article 2, Paragraph 3, Item 7 of the Companies Act.

③Member to resign from Auditor
Reiji Otaki（Outside Auditor）- 23 -