Summary of Consolidated Business Results for the Fiscal Year September 30, 2012
November 5, 2012
Listed Mar ket: J ASD AQ

SEPTENI HOLDINGS CO., LT D

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 21, 2012
Anticipated Dividend Payment Date: December 6, 2012
Anticipated Financial Reports Filing Date: December 21, 2012
Supplemental Earnings Presentation Materials: Available
Earnings Presentation Meeting: Held for institutional investors, analysts, media(All figures of less than one million yen are rounded down to the nearest digit)

1.

Fiscal Year September 2012 Consolidated Earnings (From October 1, 2011 to September 30, 2012)(1) Consolidated Earnings(% figures represent year-over-year change)

Net Sales

Operating Income

Net Income%
Million Yen
Million Yen
Million Yen
％
％
19.4
1,527
1,638
677
64.5
67.2
-15.4
-4.3
6.1
928
980
429
¥767 million in FY9/12 (83.7%), ¥417 million in FY9/11 (-19.1%)

Million Yen
FY9/12
41,358FY9/11
34,632(Note) Comprehensive income:

Fully Diluted EPS

EPS
FY9/12
FY9/11(Reference)

Ordinary Income

Yen
5,381.15
3,411.04
Minority holding income:

ROE

ROA

Yen
％
5,241.33
10.9
3,321.47
7.4¥113 million in FY9/12, ¥72 million in FY9/11

％
57.8
-21.4

Operating Margin
％
12.3
8.0

％
3.7
2.7

(2) Consolidated Financial Position
Total Assets
FY9/12
FY9/11(Reference)

Net Assets

Net Asset Ratio

Book Value per Share
％
45.0
48.6

Million Yen
Million Yen
14,362
7,246
12,182
6,342
Capital: ¥6,467 million in FY9/12, ¥5,914 million in FY9/11

Yen
51,369.52
47,007.81(3) Consolidated Cash Flow Conditions
Operating Cash Flow

Investing Cash FlowMillion Yen
1,183
548

FY9/12
FY9/11

Financing Cash FlowMillion Yen
-401
-932

Cash and Equivalents

Million Yen
-242
-738

Million Yen
5,131
4,453

2. Dividend Conditions
Dividends
End 1QEnd 2QEnd 3QEnd Term

Total

Total Value of
Dividends

Dividend Payout
Ratio(Consolidated)

Dividend to Net
Asset Ratio(Consolidated)

Yen

Yen

Yen

Yen

Yen

Million Yen％％

FY9/11
FY9/12

―

―

―

―

―

―

1,000.00
1,000.00

1,000.00
1,000.00

125
125

29.3
18.6

2.0
2.0

FY9/13 Estimate

―

―

―

―

―

―

(Note) Estimates for dividends in FY9/13 have yet to be decided. Furthermore, for information regarding our dividend policy please refer to thesegment “1. Earnings Performance, Financial Conditions Analysis (3) Basic Policy Regarding Distribution of Profits, and Dividends in the Current and
Next Terms” carried later in this document.

3. The 1st Quarter of Fiscal Year September 2013 Earnings Estimates (From October 1, 2012 to December 31, 2013)
At the current point in time, we have decided to forgo issuing earnings estimates due to difficulty in arriving at rational estimates.
For further details of these first quarter estimates, please refer to “1. Earnings Performance, Financial Conditions Analysis (1) Earnings
Performance Analysis” carried later in this document.

※ Annotation(1) Important changes in our subsidiaries, including changes to the scope of our consolidation: Applicable
1 company excluded: Septeni Alliance Fund Co., Ltd.
(2) Changes in the accounting methods, procedures, presentation methods
Changes accompanying revisions in accounting standards:
Other changes in accounting methods:
Changes in accounting estimates:
Redisplay of revisions:Applicable
Applicable
ApplicableNot applicable(3) Shares issued (Common stock)
Shares issued as of term end (Incl. treasury stock):

FY9/12

Treasury stock as of term end:
Average number of shares outstanding:

134,819

FY9/11

134,749

FY9/12

8,923

FY9/11

8,923

FY9/12

125,843

FY9/11

125,807(Reference) Non-Consolidated Earnings Overview
1. Fiscal Year September 2012 Non-Consolidated Earnings (From October 1, 2011 to September 30, 2012)(1) Non-Consolidated Earnings(% figures represent year-over-year change)
Sales
Operating Income
Ordinary Income
Net Income
％
5.7
23.4

Million Yen
1,535
1,453

FY9/12
FY9/11Million Yen
384
592

％
-35.2
54.7

Million Yen
246
452

％
-45.6
48.2

Fully Diluted EPS

EPSYen
1,955.39
3,598.00

FY9/12
FY9/11

％
-32.7
58.1

Million Yen
407
605

Yen
1,904.58
3,503.52(2) Non-Consolidated Financial Position
Total Assets
Million Yen
6,989
6,503

FY9/12
FY9/11(Reference)

Capital:Net Assets
Million Yen
6,209
6,091

¥6,180 million in FY9/12, ¥6,057 million in FY9/11

Net Asset Ratio

Book Value per Share
％
88.4
93.1

Yen
49,090.16
48,145.83

SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 Business Results

Index
1. Earnings Performance, Financial Conditions Analysis ················································································· 2(1) Earnings Performance Analysis ········································································································· 2(2) Financial Conditions Analysis ··········································································································· 4(3) Basic Policy Regarding Distribution of Profits, and Dividends in the Current and Next Terms ······························· 5
2. Corporate Structure···························································································································· 6
3. Management Policy ··························································································································· 8(1) Corporate Management Basic Policy ··································································································· 8(2) Issues to be Considered in Intermediate to Long Term Corporate Strategy ······················································· 8
4. Consolidated Financial Statements ·········································································································· 9(1) Consolidated Balance Sheet ············································································································· 9(2) Consolidated Income Statement, Comprehensive Income Statement ···························································· 11(3) Change in Consolidated Shareholders’ Equity Statement ········································································· 13(4) Consolidated Cash Flow Statement ··································································································· 15(5) Notes Regarding Going Concern Assumptions ····················································································· 16【Business Segment Information】 ········································································································· 16-1-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 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 saw a gradual recovery on the back of the Great East Japan Earthquake
disaster relief efforts. However various uncertainties threatened to cause economic weakness and continued to cloudthe economic horizon, including the reoccurrence of the sovereign debt crisis in Europe, prolonged earnings weakness ofexporting companies due to the record strength of the yen, and slowing in the growth of the Chinese economy andeconomies of other developing countries.
With regards to the environment surrounding the Internet businesses in which the SEPTENI Group operates, connectivity
to the Internet via personal computers has quickly become a matter of fact. At the same time, the rapid diffusion insmartphones used as prominent devices to connect to the Internet is contributing to an expansion in advertising related
services for smartphones. Furthermore marketing tools and social games specifically designed to match thecharacteristics of social networking services (SNS) and other social media represent new business opportunities.
Against this backdrop, our Group was able to expand the business and raise profitability of our main Internet Marketingand Media Contents Businesses by promoting a business expansion strategy that focused upon the growth areas of“smartphones” and “social media” in accordance with our midterm business plan. In addition, we made aggressive
anticipatory investments in human resources for new businesses to strengthen our future competitive strengths. As aresult of these efforts, sales and operating income rose by large margins of 19.4% and 64.5% year-over-year to ¥41,358
and ¥1,527 million respectively. Increases in profits from equity accounting method investments led to an increase in
non-operating income and allowed ordinary income to rise by 67.2% year-over-year to ¥1,638 million. At the same time,translation losses arising from the staggered acquisition of shares resulting from the merger of subsidiaries and impairmentof goodwill associated with the commerce business contributed to the booking of a ¥342 million extraordinary loss.
Therefore, net income rose by 57.8% year-over-year to ¥677 million. All of these sales and income figures represent newrecord highs.
We discuss our business performance in each of our business segments below.
Furthermore, we have made revisions to our business segment definitions and now report the two main business segmentsof “Internet Marketing Business” and “Media Contents Business.” We provide details of the revisions in the definitionsof our business segments later in this document. We have also made revisions to previous year’s data to reflect these new
business segment definitions.
Internet Marketing BusinessIn the Internet Marketing Business, we provide comprehensive marketing support services leveraging the Internet tocustomers. Specifically, we provide Internet advertising and sales services, and other web solutions (Website creationand operations, SEO services), in addition to in-house services including marketing platforms for ad networks and cloudtype CRM services and operations.
During the current term, sales of advertising for the growth realm of smartphones grew by a large margin and advertisingfor personal computers also trended favorably on the back of our aggressive marketing efforts to expand market shareand the expansion in the Internet advertising market. In addition, the SEPTENI Group was able to record successful
results by leveraging its strengths in the realm of “Facebook” to cultivate growing demand for marketing support
services. Furthermore, we fortified our domestic marketing function by opening two new facilities in Yokohama andTakamatsu, as well as launching overseas operations with the establishment of companies in Singapore and San
Francisco, USA. As a result of these developments, sales and operating income rose by 12.1% and 36.8%
year-over-year to ¥33,599 and ¥1,396 million respectively.
Media Contents BusinessIn the Media Contents Business, we plan and develop various digital contents including social games, music,
publications, streaming video, fortune telling and others for provision to individual users of smartphones and featurephones via SNS, mobile phone carriers and other platforms.
The merger of AXEL MARK and FROUTE at the start of the current term contributed to a large expansion in the breadthof our business. Moreover, SEPTENI focused its management resources in developing new realms that will replace
conventional contents (Music and publications) which are on the decline. Consequently, we were able to boost the-2-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 Business Results

number of registered social game users to about 2.80 million at the term end and sales to about ¥2.1 billion on the
successful release of “Kingdom Chronicle,” “Legend of Grimoire Maiden Incarnation,” and other game titles.
Furthermore, we have conducted aggressive anticipatory investments including M&A to strengthen our development
function for social games, and our subsidiary AXEL MARK has implemented a collaborative strategic agreement with
DeNA Co., Ltd., which operates the social game platform “Mobage” for overseas business development. As a result of
these developments, sales rose by 236.3% year-over-year to ¥4,335 million and operating income improved from a lossof ¥29 million in the previous term to an income of ¥227 million.
(Earnings Estimates for the Coming Term)
The SEPTENI Group is currently implementing a three year midterm business plan (From FY9/11 to FY9/13), which
maintains a main goal of revising our business model by fortifying its in-house services to achieve the next stage of
growth. And in the second year of this plan of fiscal year September 2012, we were able to achieve record highearnings by growing the composition of in-house services of overall sales in rapidly growing realms such as social games
and are successfully converting our earnings structure. In the final year of the plan of fiscal year September 2013, we
will promote a further expansion in the breadth of our business and conversion of our business model, maintain growth in
our Internet Marketing Business, and aggressively broaden the breadth of our social game business. Also, we will
accelerate our efforts to establish new high profitability business models by focusing efforts on development of new
businesses outside of our core strength of games.
In addition to raising our competitive standing in the realm of the social advertising market by implementing efforts to
expand our Facebook related business in the Internet Marketing Business, we will also accelerate our growth bypromoting expanded sales of advertising for smartphones, mainly focused on large-media. Furthermore, we will
establish our overseas business model by leveraging our overseas facilities established during fiscal year September 2012
to cultivate cross border Internet advertising.
In the Media Contents Business, SEPTENI will devote efforts to developing large and high quality titles in order toincrease our competitive strength and broaden the breadth of our business in the realm of social games. At the sametime we will also focus upon the full scale launch of our overseas business operations which were started in the term
under review.
(With Regards to Earnings Estimates for the First Quarter)
As of the current fiscal year September 2012, SEPTENI announces earnings estimates for only the quarter immediately
following the term which has just ended. And with regards to the first quarter of fiscal year September 2013, theInternet Marketing Business is expected to continue to trend favorably. However in our Media Contents Business,
anticipatory investments for new titles suggests that their sales after launch could contribute to large fluctuations in ourearnings, particularly in light of the dramatic changes in the environment surrounding social games. Therefore arriving
at rational earnings estimates at the current point in time is difficult and we have decided not to release earnings
estimates. We will monitor trends in our earnings and disclose information as soon as rational estimates can beestablished.
(2) Financial Condition Analysis
Assets, Liabilities, Net Asset Conditions(Assets)
Current assets grew by ¥2,018 million from the end of the previous term to ¥11,381 million at the end of the current termon the back of increases in cash and equivalents, and notes and accounts receivables of ¥678 and ¥1,177 million
respectively. Fixed assets also grew by ¥162 million over the same period to ¥2,981 million at the end of the current
term due in part to ¥211, ¥315, and ¥95 million increases in buildings and structures, goodwill, and provisional accounts
for software respectively, which offset declines of ¥345 and ¥266 million in security and other deposits, and marketablesecurities respectively. As a result of these changes, total assets rose by ¥2,180 million from the end of the previous
term to ¥14,362 million at the end of the current term.
(Liabilities)
Current liabilities rose by ¥1,177 million from the end of the previous term to ¥6,889 million at the end of the current
term due in part to ¥428 and ¥200 million increases in accounts payable and unpaid fees. Fixed liabilities also rose by¥99 million to ¥227 million over the same period on the back of a ¥135 million increase in long term debt.
Consequently, total liabilities grew by ¥1,277 million to ¥7,116 million over the same period.

-3-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 Business Results(Net Assets)
Net assets grew by ¥903 million from the end of the previous term to ¥7,246 million due in part to inflow from net
income of ¥677 million, which offset the ¥125 million in dividend payment.
Cash Flow Conditions
During the current fiscal year, cash and equivalents grew by ¥678 million from the end of the previous term to ¥5,131
million.
We provide details of our various cash flows for the current fiscal year below.
(Operating Cash Flow)
During the current fiscal year, we saw a net inflow of ¥1,183 million from operating activities, which compares with¥548 million inflow in the previous term. Factors contributing to this inflow were an ¥824 million increase inreceivables, ¥534 million in payment of corporate taxes, ¥251 million increase in payables, and realization of ¥1,310
million in pretax income.
(Investing Cash Flow)
A net cash outflow of ¥401 million was seen in investing activities and compares with the outflow of ¥932 million in theprevious term. Factors contributing to this outflow included ¥361 million in income from the recovery of security andother deposits, ¥351 million payment for acquisition of tangible fixed assets, ¥115 million in payment for acquisition of
intangible fixed assets, and ¥120 million in acquisition of subsidiary shares arising from changes in the scope of
consolidation.
(Financing Cash Flow)

In the current term, a net cash outflow of ¥242 million was recorded in financing activities, compared with an
outflow of ¥738 million in the previous term. This outflow is attributed to decline in short term debt of ¥175
million, ¥220 million repayment of long term debt, and ¥125 million in dividend payment, which offset a increasein long term debt of ¥300 million.
(Reference) Trends in Our Cash Flow Related Indicators
FY9/08FY9/09FY9/10FY9/11

FY9/12

Net Asset Ratio (%)

44.6

44.0

45.3

48.6

45.0

Capital Adequacy Ratio, Market Capitalization Based (%)

87.5

53.7

43.6

42.8

62.0

Cash Flow to Interest Bearing Debt Ratio (%)

310.0

531.2

122.0

155.5

73.7

Interest Rate Coverage Ratio
41.1
13.5
66.2
46.5
Net Asset Ratio: Net Assets / Total Assets
Capital Adequacy Ratio: Market Capitalization / Total Assets
Cash Flow to Interest Bearing Debt Ratio: Interest Bearing Debt / Operating Cash Flow
Interest Coverage Ratio: Operating Cash Flow / Interest Payments
1. Each indicator is based on consolidated financial data.
2. Market capitalization is based on shares outstanding excluding treasury stock.
3. Cash flow is based on our operating cash flow.
4. Interest bearing debt includes all of the liabilities which bear interest payments on our consolidated balance sheet.

116.6(3) Basic Policy Regarding Distributon of Profits, and Dividends in the Current and Next Terms
We recognize the return of profits to our shareholders as a key management issue, and will flexibly implement the policy
outlined below regarding the appropriate distribution of profits. With regards to the distribution of retained earnings,
we will consider our consolidated earnings performance, need to fortify our financial position, and forward looking groupbusiness strategy while at the same time endeavoring to maintain 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 stability in dividends and appropriate level of profit distribution to allow us to grow our earnings. In addition,
we endeavor to utilize retained earnings for investments in training of personnel, optimizing and reinvigorating ourexisting businesses, and capturing new businesses which hold the potential for high growth and profitability. Based onthese policies, we expect to pay a ¥1,000 dividend during the current fiscal year. Furthermore with regards to dividends
in the coming term, we expect to implement a dividend in accordance with the above mentioned policy, and will
announce a specific value for our dividend estimate at a point in time where we can announce earnings estimates for thefull year.

-4-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 Business Results

2. Corporate Structure
As of September 30, 2012, the SEPTENI Group is comprised of the holding company SEPTENI HOLDINGS, 20
consolidated subsidiaries, and three equity accounting method held affiliates. The various companies in the SEPTENI
group are responsible for undertaking the Internet marketing, media contents, direct marketing, and commercebusinesses.
Furthermore, from the current fiscal year, we have implemented changes in the definition of our consolidated businesssegments and changes in our reports business segments. Below we provide a breakdown of the companies which belong
to each of our business segments of our Group.

Business Segment

Business Description

Main Consolidated Subsidiaries

Internet Marketing

Internet advertising sales, web solutions (Website creation,
operation, SEO services), marketing platform operations
for ad network, cloud typed CRM service provision,
Internet marketing support services for corporations

SEPTENI CO., LTD.
Tricorn Corporation

Media Contents

Provision of various digital contents for smartphones andconventional cellular telephones (Social games, music,
publications, streaming video, fortune telling, others),
mobile media operations

AXEL MARK INC.

Direct Marketing

Consigned sales promotion direct mailing, paper media
mailing

SEPTENI DIRECT MARKETING
CO., LTD.

Commerce

Catalog sales targeting general consumers

ACRESS-5-SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 Business Results

Diagram of SEPTENI’s Corporate Structure

Service,
Product
Provision

Capital Participation
Management Leadership,
SupervisionInternet Marketing Business

Internet Advertising Agency

SEPTENI CO., LTD.
Cloud typed CRM Services

Tricorn Corporation

SEPTENI HOLDINGS CO., LTD.

Media Contents Business

AXEL MARK INC.
4 other companies

Direct Marketing Business

SEPTENI DIRECT MARKETING CO., LTD.

Commerce Business

ACRESS-6-

Clients (Companies, Individual Users)

11 other companies

SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 Business Results

3. Management Policy(1) Corporate Management Basic Policy
Because there have been no important revisions made since the announcement of our fiscal year September 2011
earnings released on November 4, 2011, we have omitted our comments here. To view this earlier announcement,
please go to our home page at the following url: http://www.septeni-holdings.co.jp/en/(2) Issues to be Considered in the Intermediate to Long Term Corporate Strategy
Because there have been no important revisions made since the announcement of our fiscal year September 2011
earnings released on November 4, 2011, we have omitted our comments here. To view this earlier announcement,
please go to our home page at the following url: http://www.septeni-holdings.co.jp/en/-7-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 Business Results

4. Consolidated Financial Statements(1) Consolidated Balance Sheet(Units: Thousand Yen)
Previous Term
(September 30, 2011)

Current Term
(September 30, 2012)

AssetsCurrent assets
Cash and equivalents
Notes, accounts receivable
Products
Unfinished products
Stored goods
Deferred tax assets
OthersDoubtful account reserves
Total current assets

4,453,309
4,446,584
38,79547,601
6,865
91,320283,513-5,237
9,362,752

5,131,651
5,624,447
50,45521,193
6,908
175,692
388,962-18,044
11,381,265

Fixed assets
Tangible fixed assets
Buildings, structures (net)
Equipment, tools, others (net)Others (net)Total tangible fixed assets

15,617
61,734573
77,925

227,072
100,294
5,180
332,547

212,815
38,001－90,8605,931
347,608

527,839
59,383
95,68763,602
5,428
751,940

1,498,086
930,606
64,51453,450-152,927
2,393,730

1,231,692
585,030
49,43530,840-94
1,896,905

2,819,264

2,981,393

12,182,017

14,362,659

Intangible fixed assets
Goodwill
Software
Software provisional accounts
Lease assets
OthersTotal intangible fixed assets
Investments, other assets
Investment securities
Security deposits
Deferred tax assets
OthersDoubtful account reserves
Total investments, other assets
Total fixed assets
Total assets-8-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 Business Results(Units: Thousand Yen)
Previous Term
(September 30, 2011)

Current Term
(September 30, 2012)

Liabilities
Current liabilities
Notes, accounts payable
Short term debt
Portion of long term debt due within one year
Lease liabilities
Unpaid accounts
Unpaid taxes
Bonus reserves
Product return adjustment reserves
Office moving expense reserves
OthersTotal current liabilities
Fixed liabilities
Long term debt
Lease liabilities
OthersTotal fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
CapitalCapital reserves
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Other marketable security valuation gains
Foreign exchange adjustment accounts
Total accumulated other comprehensive income

4,003,889
728,338
26,10029,044
155,563
230,552
154,514822
15,772366,799
5,711,396

4,432,307
553,338
110,371
30,783355,983
414,495
275,063720
23,172
693,100
6,889,336－
69,86057,893
127,753

135,295
42,28249,440227,017

5,839,150

7,116,354

2,007,848
3,108,781
1,296,288-485,011

2,009,979
3,110,912
1,847,644-485,011

5,927,906

6,483,525-13,100－-14,626-1,680-13,100-16,307

Stock options
Minority interests
Total net assets

33,082394,979
6,342,866

28,830750,257
7,246,304

Total liabilities, net assets

12,182,017

14,362,659-9-

SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 Business Results(2) Consolidate Income Statement, Comprehensive Income Statement(Consolidated Income Statement)(Units: Thousand Yen)
Previous Term

Current Term

(From October 1, 2010

(From October 1, 2011

to September 30, 2011)

to September 30, 2012)

Net Sales

34,632,903

41,358,333

CGS
Gross income

28,260,465
6,372,437

32,724,980
8,633,352

Returned product adjustment reserves reversal
Returned product adjustment reserves
Adjusted gross income
SG&A

1,000
822
6,372,616

822
720
8,633,454

5,443,877
928,738

7,105,679
1,527,775

1,782
562
－
72,346
21,137
95,829

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

Non-operating expense
Interest payment
Share listing related expense
Marketable securities valuation losses
Limited liability partnership liquidation loss
OthersNon-operating expense

11,795
14,873
13,238－4,577
44,485

10,14814,559
－
5,031
6,693
36,433

Ordinary income

980,082

1,638,236

Extraordinary income
Marketable securities liquidation profit
Profit on change in minority shareholdings
Doubtful account reserve reversals
Stock options reversal profit
OthersTotal extraordinary income

10,503
7,325
12,177
21,353
5,301
56,662

9,281
5,873
－
－
－
15,155

121,531
53,226－
22,411
197,170

137,578－
154,945
49,930342,454

Net income before taxes

839,574

1,310,936

Corporate, residence, enterprise taxes
Corporate tax adjustment
Total taxes

362,082
57,820419,902609,900-69,251

Income before minority interests

419,671770,287

Minority interests losses
Net income-9,463

93,105429,135

677,182

Operating income
Non-operating income
Interest income
Dividend income
Marketable security valuation gains
Minority shareholding income
OthersTotal non-operating income

Extraordinary loss
Impairment accounting losses
Marketable securities valuation losses
Staggered acquisition loss
OthersTotal extraordinary losses- 10 -

540,648

SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 Business Results(Consolidated Comprehensive Income Statement)(Units: Thousand Yen)
Previous Term
(From October 1, 2010
to September 30, 2011)
Income before minority interests
Other comprehensive income
Other marketable security valuation gain s
Foreign exchange translation accounts
Minority shareholdings in affiliates
Total other comprehensive income

Current Term
(From October 1, 2011
to September 30, 2012)

419,671770,287-2,194－－-1,306-1,680-219-2,194-3,206Comprehensive income(Details)
Comprehensive income attributable to parent shareholding

417,477

767,081426,940

673,976

Comprehensive income attributable to minority interests-9,463

93,105- 11 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 Business Results(3) Changes in Consolidated Shareholders’ Equity Statement(Units: Thousand Yen)
Previous Term
(From October 1 2010
to September 30, 2011)

Current Term
(From October 1, 2011
to September 30, 2012)

Shareholders’ equity
Capital

Total at previous term end
Change in current term
New stock issued
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

2,006,256

2,007,848

1,591
1,591
2,007,848

2,131
2,131
2,009,979

3,107,190

3,108,781

1,591
1,591
3,108,781

2,131
2,131
3,110,912

Retained earnings
Total at previous term end
Change in current term
Dividends from retained earnings
Net income
Total change in current term
Total at current term end

992,9291,296,288-125,777
429,135
303,358
1,296,288-125,826
677,182551,356
1,847,644

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

5,621,364

5,927,906

3,182-125,777
429,135
306,541
5,927,906

4,262-125,826
677,182555,618
6,483,525-10,906-13,100-2,194-2,194-1,526-1,526-13,100-14,626－－－－-1,680－-1,680Total shareholders’ equity
Total at previous term end
Change in current term
New stock issued
Dividends from retained earnings
Net income
Total change in current term
Total at current term end
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
Forex Translation Adjustment AccountTotal 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- 12 --1,680SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 Business Results(Units:Thousand Yen)

Previous Term

Current Term

(From October 1, 2010

(From October 1, 2011

to September 30, 2011)

to September 30, 2012)

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
Net change in items other than shareholders’ equity
Total change in current term
Total at current term end- 13 --10,906-13,100-2,194-3,206-2,194-3,206-13,100-16,30756,27433,082-23,192-4,251-23,192-4,251

33,082

28,830413,092

394,979-18,113355,278-18,113355,278

394,979

750,257

6,079,825

6,342,866

3,182-125,777
429,135-43,500

4,262-125,826
677,182
347,819

263,040

903,438

6,342,866

7,246,304

SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 Business Results(4) Consolidated Cash Flow Statement(Units: Thousand Yen)
(From October 1, 2010

Previous Term

Current Term
(From October 1, 2011

to September 30, 2011)

to Septemb er 30, 2012)

Cash flow from operating activities
Net income before taxes

839,574

1,310,936

Depreciation, amortization
Impairment accounting loss
Amortization goodwill
Doubtful account reserves
Bonus reserves
Business loss reserves
Marketable securities valuation losses
Marketable securities liquidation losses
Interest, dividends received
Interest payment
Minority shareholding income
Change in minority shareholding income
Staggered acquisition translation loss
Asset retirement obligation accounting standard
implementation
Stock compensation expense
Stock option reversal
Change in receivables
Change in inventories
Change in payables
OthersSubtotalInterest, dividends received

114,928
121,531
49,761-11,972-34,518-8,262
66,465-10,503-2,345
11,795-69,830-7,325－

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

1,380

－

6,294
-21,353-356,874-15,379
223,920
10,588907,875
2,345－－-824,260
17,592
251,582
314,198
1,634,451
2,796Interest paid
Tax claims payment
Corporate, other taxes
Cash flow from operating activities-11,53054,015-404,091
548,615-10,197
90,907-534,899
1,183,058-45,305-19,616-34,043
15,000-351,259-115,902-82,900
14,773

Cash flow from investing activities
Acquisition of tangible fixed assets
Acquisition of intangible fixed assets
Marketable securities acquisition
Marketable securities liquidation
Subsidiary share acquisition arising from change in scopeof consolidations
Subsidiary share acquisition－-120,467-31,798-41,590

Subsidiary share liquidation
Affiliate company share acquisition
Change in loans extended
Deposits, security deposits payment
Income from redemption of deposits, security deposits
Others

18,205-398,900-9,487-411,683
1,807-17,164－－
1,436-72,899
361,796
5,344

Cash flow from investing activities-932,988-401,668- 14 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 Business Results(Units:Previous TermThousand Yen)

Current Term

(From October 1, 2010

(From October 1, 2011

to September 30, 2011)

to Septemb er 30, 2012)

Change in short term debt

-322,664-175,000

Income from long term debt
Long term debt repayment
Lease liabilities repayment
New share issuance
Income from minority shareholdings
Dividend payment
Dividend payment to minority interests
Cash flow from financing activities－-253,350-29,9850－-125,777-6,400-738,175

300,000-220,558-30,244
0
11,023-125,826-1,440-242,045－-1,122,548

537,663－

140,678

Cash and equivalents at term start

5,575,858

4,453,309

Cash and equivalents at term end

4,453,309

5,131,651

Cash flow from financing activities

Cash and equivalents translation gains
Net change in cash and equivalents
Cash income from merger of subsidiaries- 15 --1,680SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 Business Results(5) Notes Regarding Going Concern Assumptions
Not applicable【Business Segment Information】
1. Business Segment Overview
Our Group’s reported segments are individual units for which independent financial information can be derived, and areconsidered on a regular basis by our board of directors for the purpose of determining the allocation of management
resources and evaluation of earnings. Furthermore SEPTENI has categorized its business segment divisions inaccordance with market categorizations and has determined four business segments including the “Internet Marketing
Business,” “Media Contents Business,” “Direct Marketing Business,” and “Other Business”. Because of the relative
importance in terms of business volume, our reported business segments are divided into two segments, which are“Internet Marketing Business” and “Media Contents Business.”
Furthermore 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 network, cloud typed CRM service provision, Internet marketing support
services for corporations

Media Contents

Provision of various digital contents for smartphones and conventional cellular telephones (Social
games, music, publications, streaming video, fortune telling, others), mobile media operations

Moreover, during the current fiscal year our Group has reorganized our business domains from the five segments
previously used, with the “Internet Advertising Business,” “Technology Business,” and “Contents Business” being
consolidated into the two segments of “Internet Marketing Business” and “Media Contents Business” in an effort toexpand our business breadth in the main business domain of the Internet. These two new categorizations have also beenchosen because of their relative importance in terms of business volume. In addition, information for the previous fiscal
year has been adjusted to reflect the new business segment definitions of the current term.
2. The Method of Calculation Relating to Reported Business Segment Sales, Income, Assets and Other Items
The accounting methods used for reported business segments are the same as those mentioned in the section entitled“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 amounts transferred between the business segments are based on actual market pricing.
As a result of a review of management operation methods, a portion of expenses which were not allocated to specificbusiness segments including adjustments have been allocated to each business segment from the current fiscal year.

- 16 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 Business Results

3. Information Relating to Reported Business Segment Sales, Income, Assets and Other Items
Fiscal Year September 2011 (October 1, 2010 to September 30, 2011)(Units:Thousand Yen)

Adjustment(Note 2, 3)

Consolidated
Account(Note 4)

Reported Business Segments
Others(Note 1)

Total

Internet
MarketingMedia
Contents

Subtotal

External sales

29,961,477

1,278,171

31,239,648

3,392,619

34,632,267

636

34,632,903

Internal sales,transfers

24,492

10,79035,283

19,24854,532-54,532―

Total

29,985,969

1,288,961

31,274,931

3,411,867

34,686,799-53,896

34,632,903

Operating income

1,020,623-29,439

991,183

171,915

1,163,099-234,360

928,738

Assets7,535,481

1,611,211

9,146,693

1,089,330

10,236,023

1,945,993

12,182,017

66,242

16,85383,09540,881

123,977-9,048114,928

61,994750

62,745

4,475

67,220-869

66,351

Sales

Other items
Depreciation
Change in tangible,
intangible fixed
assets
1.
2.

3.
4.

“Others” includes Direct Marketing Business and Commerce Businesses which are not included in the reported segments.
The operating income in the adjustment category of -¥234.360 million includes ¥10.814 million in intersegment cancelations and¥0.636 million in companywide income which cannot be allocated to various segments, and -¥245.811 million in companywide
expenses. Companywide income is mainly management fees for non-consolidated subsidiaries, while companywide expenses
are operating costs for the holding company which cannot be allocated to specific segments.
The asset in the adjustment category of ¥1,945.993 million is mainly cash and equivalents, marketable securities, and assets
associated with operations of the holding company for group companies.
Segment income is based on adjustment of operating income of the consolidated financial statements.

- 17 -

SEPTENI HOLDINGS CO., LTD. (4293), FY9/12 Business Results

Fiscal Year September 2012 (October 1, 2011 to September 30, 2012)(Units:Thousand Yen)

Adjustment(Note 2, 3)

Consolidated
Account(Note 4)

Reported Business Segments
Others(Note 1)

Total

37,886,013

3,471,716

41,357,729

604

41,358,333

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

94,853

17,067111,920

41,259153,180

21,137

174,318

323,594

28,760352,354

21,177

373,532

124,137

497,669

Internet
MarketingMedia
Contents

Subtotal

External sales

33,552,894

4,333,118

Internal sales,transfers

46,817

Total

Sales

Other items
Depreciation
Change in tangible,
intangible fixed
assets
1.
2.

3.
4.
5.

“Others” includes Direct Marketing Business and Commerce Businesses which are not included in the reported segments.
The operating income in the adjustment category of -¥250.483 million includes ¥8.201 million in intersegment cancelations and¥0.604 million in companywide income which cannot be allocated to various segments, and -¥259.288 million in companywide
expenses. Companywide income is mainly management fees for non-consolidated subsidiaries, while companywide expenses
are operating costs for the holding company which cannot be allocated to specific segments.
The asset in the adjustment category of ¥2,253.662 million is mainly cash and equivalents, marketable securities, and assets
associated with operations of the holding company for group companies.
Segment income is based on adjustment of operating income of the consolidated financial statements.
Change in depreciation method
Traditionally the SEPTENI Group has adopted a declining balance depreciation schedule for facilities associated with buildings
and structures. However from the current fiscal year a straight line method of depreciation has been adopted. In accordancewith this change in the depreciation method, the operating income of the Internet Marketing Business segment is ¥38.035 million
higher than before when declining balance depreciation method was used.

- 18 -