Financial Results
For the Second Quarter of the Fiscal Year 2017 ending January 31, 2017
September 14, 2016

Balance Sheets(Consolidated)Thousands of Yen
31 Jul., 201631 Jan., 2016

AssetsCurrent assets:
Cash & Cash equivalents
Accounts receivable
Deferred tax assets
Income taxes receivable
Consumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Tangible fixed assets
Buildings (net)
Tools, furniture and fixture (net)Total tangible fixed assets
Intangible fixed assets
Goodwill
Other
Total intangible assets
Investments and other assetsStocks of subsidiaries and affiliates
Deferred tax assets
Other
Total investments and other assets
Total noncurrent assets
Total assets

3,136,889
142,789
43,7393,524,482

1,984,469
124,457
54,116
168,179
176,640
247,261(33,285)
2,721,840

23,422
22,04145,464

24,73424,70649,441

469,562
29,632
499,194

486,637
13,449500,087

28,2949,417
35,09872,810617,469
4,141,952

9,462
34,08443,546
593,075
3,314,915

147,870
1,025,302
27,824
249,589
148,143
1,599,000
1,599,000

238,384
980,156
23,255
24,8181,266,614
1,266,614

381,903391,474
2,236,366(415,380)
2,594,363

381,903391,474
1,686,846(415,380)
2,044,843(44,733)(6,996)(51,729)318
2,542,952
4,141,952

3,131
3,131
326
2,048,301
3,314,915

201,064-Liabilities
Current liabilities:
Accounts payable
Deposits received
Provision for point card certificates
Income taxes payable
Other
Total current liabilities
Total liabilities
Net assets
Shareholders' equity:
Capital stock
Capital surplus
Retained earnings
Treasury stockTotal shareholders' equity
Accumulated other comprehensive income:Deferred gains or losses on hedges
Foreign currency translation adjustment
Total Accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets

1Statements of Income(Consolidated)Thousands of Yen
Feb. - Jul., 2016

Revenue
Cost of revenue
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating revenues:
Interest income
Foreign exchange gains
Interest on refund
OtherTotal non-operating revenues
Non-operating expenses:
Equity in losses of affiliates
Miscellaneous loss
Total non-operating expenses
Ordinary profit
Extraordinary income:Gain on reversal of subscription rights to shares
Gain on change in equity
Total extraordinary income
Extraordinary losses:
Provision of allowance for doubtful accounts
Impairment loss
Loss on change in equity
Other
Total extraordinary losses
Net profit (loss) before taxes
Income tax, inhabitants tax and enterprise tax
Income tax adjustments
Total corporate taxes
Net profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent1,909,899
300,537
1,609,361
787,376
821,985

1,198,170
202,437
995,733
1,037,414(41,680)

474
753
3,151
24
4,404

1,001
240
258
1,499

575
852
1,427
824,961

5,320
5,320
(45,502)8
28,29428,302-32,40432,404820,860
240,890
30,458271,349
549,510549,510

Statements of Comprehensive Income

Feb. - Jul., 2015

2,258
15,53886
17,883(63,385)
1,145(3,044)(1,899)(61,485)(61,485)--

Thousands of Yen
Feb. - Jul., 2016

Net profit (loss)
Other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

2Feb. - Jul., 2015

549,510(61,485)(47,864)(6,996)(54,861)494,649

2,375
8,069
(11,870)(1,426)(62,912)494,649(62,912)--

Statements of Cash Flows(Consolidated)Thousands of Yen
Feb.- Jul., 2016

Feb.- Jul., 2015

Cash flows from operating activities:
Net profit before taxes
Depreciation and amortization
Amortization of goodwill
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for point card certificatesInterest and dividends income
Loss (gain) in foreign exchange
Gain on reversal of subscription rights to shares
Equity in loss (gain) of affiliates
Loss (gain) on change in equity
Decrease (increase) in notes and accounts receivable-trade
Increase (decrease) in accrued payments
Increase (decrease) in deposits received
OtherSub total
Interest and dividends received
Income taxes paid

Net cash provided by (used in) operating activities
Cash flows from investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of investment securities
Purchase of investments in subsidiaries resulting in change in scope of consolidation
Proceeds from purchase of investments in subsidiaries resulting in change in scope of consolidation
Purchase of stocks of subsidiaries and affiliates
OtherNet cash provided by (used in) investing activities
Cash flows from financing activities:Proceeds from issuance of subscription rights to shares
Other

Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash flows
Cashfromand financing
cash equivalents
activities
at the end of the period

3820,860
9,208
17,07532,404
4,569
(474)
820
(8)
575
(28,294)(18,402)(96,767)(82,935)
308,209966,840
474
167,859
1,135,174(63,385)
4,850
8,537
2,258
1,221
(1,001)(361)
5,320
15,538
1,921
262,743(190,371)(211,709)(164,437)
1,001(302,766)(466,202)

300,000(498)
27,351(575)
326,278(600,000)
600,000(18,069)(44,160)(513,701)(6,335)(582,267)(9,042)
1,452,420
1,684,469
3,136,889

75
(43)
31
361
(1,048,077)
2,933,769
1,885,691