SPARX Group Co., Ltd....スパークス・グループ株式会社 February 20, 2009 SPARX Group Co., Ltd. SPARX Group Co., Ltd. Consolidated Financial Results for 3rd rd Qtr. of©

スパークス・グループ株式会社

February 20, 2009February 20, 2009

SPARX Group Co., Ltd.SPARX Group Co., Ltd. Consolidated Financial Results for 3Consolidated Financial Results for 3rdrd Qtr. of Qtr. of the Fiscal Year Ending in March 2009the Fiscal Year Ending in March 2009

© 2009 SPARX Group Co.,Ltd.

2

Financial Results for 3Q,Financial Results for 3Q, FY2008FY2008


3

Summary for 1Q through 3Q (1)

Dramatic decrease in operating profit: 9.36B Yen （YoY ▲61.7%）

– As AUM decreased, Mgmt fee decreased（YoY ▲34.2%）

– Appraisal losses on the investment securities （▲1.19B Yen)

Operating profit ▲2.70B Yen （YoY ＋6.60B Yen）

Recurring profit▲3.28B Yen、Net loss ▲4.00B Yen– Extraordinary loss in 3Q: 0.657B Yen

（0.998B Yen on the accumulated basis）

Note: FY2008 = Apr. ’08 through Mar. ‘09

Losses increased in PL. Affected by the performance in our asset management business, as well as the other factors.


4


Net asset was dramatically decreased.

Net asset was decreased to 35.87B Yen （Mar. 2008: 47.62B Yen）

– Exchange fluctuations negatively affected BS– “Foreign currency transaction adjustment” has significantly changed

(▲1.49B Yen, since the end of Mar. 2008)Market value of our investment securities (seed money) was decreased

– “Net unrealized holding gain (loss) in securities” has changed (▲2.47B Yen, since the end of Mar. 2008)

Share transfer of Cosmo to Lotte Group will give a positive impact in 4Q

Gains from the transfer is approx. 4.2B Yen in 4Q which was stated in the 3Q financial statement as a subsequent event (the further gains are expected in Feb. 2010 and Feb. 2011).


5


While keeping our momentum to develop our business, SPARX will implement another restructuring plan

– The restructuring plan of Oct. ’08 was not enough– Will put our efforts into the Japanese long-only and long-short investment strategies of

our asset management business– About the other businesses that are not mentioned above, SPARX will decide which

ones to continueAccelerate our plan to improve BS and implement the restructuring planWill implement “liquidity management”

– About the borrowing, we have already implemented the “stress test”

Our focus is; (1) to increase “base earnings” by deducing cost, (2) to eliminate the other negative factors

Not assuming to obtain management fees by increasing AUM, we will downsize the company, so as to reduce cost and focus on our core business


6

SPARX Share price: Mar. 08 – Feb. 09

Source: Yahoo Finance (as of Feb. 19, 2009)

1Q - 3Q (FY2008)


7

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

0.00

400.00

800.00

1,200.00

1,600.00

2,000.00

AUM （Jan. 08 – Dec. 08）

• SPARX Asset: 438.3B Yen （-38.8% compared to Mar. 2008, -51.3% compared to Dec. 2007)

• Cosmo: 161B Yen (-45.0% compared to Mar. 2008, -56.1% compared to Dec. 2007）

• PMA: 154B Yen （-39.9% compared to Mar. 2008 , -49.3% compared to Dec. 2007）

（Unit: 100MM Yen）（TOPIX）

SPARX Group (Total)

TOPIX (Rhs)

SPARX Asset

Cosmo

PMA

（Unit: 100MM Yen） Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecSPARX Asset 8,047 7,766 7,159 7,474 7,461 7,059 6,870 6,405 5,643 4,634 4,465 4,383Cosmo 3,132 3,237 2,928 3,259 3,257 2,936 3,053 2,730 2,524 1,852 1,508 1,610PMA 2,766 2,736 2,561 2,605 2,615 2,637 2,653 2,612 2,410 1,884 1,695 1,540SPARX Group 13,946 13,740 12,649 13,339 13,335 12,633 12,576 11,748 10,578 8,372 7,668 7,533TOPIX 1,346.31 1,324.28 1,212.96 1,358.65 1,408.14 1,320.10 1,303.62 1,254.71 1,087.41 867.12 834.82 859.24


8

Flow of Funds (Mar. 08 – Dec. 08）

（Unit: MM JPY)

Notes: 1. The figures stated above are truncated. “Redemption” includes mandate terminations. 2. “Appreciation, etc.” contains any gains and losses from the exchange rate differential between Mar. 31, 2008 and Dec. 31, 2008.

（Unit: MM JPY)

Companies March 31, 2008 Subscription Redemption Net Appreciationetc. Dec. 31, 2008

SPARX Asset Management Co., Ltd. 7,159 453 -1,736 -1,283 -1,492 4,383

Cosmo Investment Management Co., Ltd. 2,928 1,439 -1,363 75 -1,393 1,610

PMA Capital Management Limited 2,561 365 -798 -433 -587 1,540

SPARX Group Co., Ltd. (Total) 12,649 2,257 -3,899 -1,641 -3,474 7,533

SPARX Asset March 31, 2008 Subscription Redemption Net Appreciation Dec. 31, 2008Long-short strategy 1,310 126 -376 -250 -35 1,024Value creation investment strategy 744 16 -473 -457 -118 167Strategic (or "Focused") investment strategy 525 21 -117 -95 -111 319Fund of Funds 701 38 -167 -128 -114 457All Cap strategy 2,431 70 -376 -306 -779 1,345Mid-small cap strategy 1,345 179 -223 -44 -299 1,001Private equity investments 53 0 0 0 -13 38Others 47 0 0 0 -20 26Total 7,159 453 -1,736 -1,283 -1,492 4,383


9

Flow of Funds (Mar. 08 – Dec. 08）

Notes: 1. The figures stated above are truncated. “Redemption” includes mandate terminations. 2. “Appreciation, etc.” contains any gains and losses from the exchange rate differential between Mar. 31, 2008 and Dec. 31, 2008.

（Unit: MM JPY)

（Unit: MM JPY)

COSMO March 31, 2008 Subscription Redemption Net Appreciation Dec. 31, 2008Korean index-relative strategy 1,505 1,329 -972 356 -923 939Korean active strategy 742 90 -222 -131 -317 293Korean long-short strategy 409 19 -142 -123 -33 253Korean strategic investment strategy 142 0 -6 -6 -71 64Others 128 0 -19 -19 -48 60Total 2,928 1,439 -1,363 75 -1,393 1,610

PMA March 31, 2008 Subscription Redemption Net Appreciation Dec. 31, 2008Asian equity strategy 1,417 48 -403 -355 -466 594Asian/Europe credit strategy 988 216 -307 -91 -185 712Asian macro strategy 155 101 -87 13 64 233Total 2,561 365 -798 -433 -587 1,540


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Historical Assets Under Management – Asia & Japan

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Japan Asia Japan Asia Japan Asia Japan Asia Japan Asia Japan Asia Japan Asia

March, 2003 March, 2004 March, 2005 March, 2006 March, 2007 March, 2008 December,

2008

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000Long-Short Strategy

Value CreationInvestment Strategy

Strategic InvestmentStrategy

All Cap Strategy

Mid & Small Cap Strategy

Private Equity InvestmentStrategy/Other

Multi-Manager AlternativeInvestment Strategy

COSMO

PMA

TOPIX

（Units：100 Mil. Yen）

(Note 1) February, 2005: COSMO's acquisition(Note 2) June, 2006: PMA`s acquisition(Note 3) January, 2007: Transfer of operation of “Multi-manager alternative investment strategy”(Note 4) The SPARX figure for “Multi-Manager Alternative Investment Strategies” in December 2008 is preliminary.

（TOPIX）


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Financial Highlights

FY 2007FY 2007 FY 2008FY 2008

YoY

Average AUM （100MM Yen） 17,118 16,197 10,865 -36.5%

Operating Revenue （MM Yen） 24,446 30,552 9,364 -61.7% Operating & General Administration Expenses

（MM Yen） 17,840 22,933 12,068 -32.4%

Operating Profit （MM Yen） 6,605 7,619 -2,704 -

Recurring Profit （MM Yen） 7,031 8,157 -3,280 -

Net Profit （MM Yen） 3,113 3,213 -4,007 -Number of Employees(as of the period-end) 276 284 289 +4.7%

TOPIX（as of the period-end）

1,475.68 1,212.96 859.24 -41.8%

1. The figures above, excluding “YoY change” are truncated. “YoY change” is rounded to the nearest tenth of a percent. 2. Number of employees (period-end) shows the figure that does not include the number of “board members”. After the adjustment of the “corporate streamlining initiative” impact,

the number is 265 (as of Dec. 31, 2008). 3. AUM figures cited above include Korean subsidiary (Cosmo Investment Management Co., Ltd.) and Hong Kong subsidiary (PMA Capital Management Limited).

Note:

Full Year3Q 3Q


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Financial Result of Each Qtr.

1Q 2008 2Q 2008 3Q 2008 1Q – 3Q 2008

Amount（MM Yen）

vs. 1Q 2007 （%)

Amount（MM Yen）

vs. 2Q 2007 （%)

Amount（MM Yen）

vs. 3Q 2007 （%)

Amount（MM Yen）

1Q through 3Q 2007（%)

Operating Revenue 3,735 - 53.6 2,966 - 39.8 2,661 - 76.8 9,364 - 61.7

Management Fee 3,205 - 25.3 2,891 - 30.2 2,008 - 48.4 8,104 - 34.2

Performance Fee 1,171 - 68.5 33 - 95.6 1,138 - 80.2 2,343 - 77.1

Others - 641 - 41 13.9 - 484 - - 1,084 -

Operating & General Administration Cost 4,396 - 37.2 3,346 - 24.3 4,325 32.6 12,068 - 32.4

Operating Profit - 660 - - 380 - - 1,663 - - 2,704 -

Recurring Profit - 273 - - 299 - - 2,706 - - 3,280 -

Net Income - 809 - - 343 - - 2,854 - - 4,007 -

(Note) 1Q 2008: April through June 2008, 2Q 2008: July through September 2008, 3Q 2008: October through December 2008


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Breakdown of Consolidated Operating Revenue & Percentage of AUM Eligible to Earn Performance Fees

Note:1. The figures stated above are truncated excluding “YoY change”, “Change”, “net management fee rate(%)” and “percentage of AUM eligible to earn performance

fees(%).” “YoY change” and “Change” is rounded to the nearest tenth of a percent. “YoY change” of “net management fee rate” and “Change” of “percentage of AUM eligible to earn performance fees(%)” show the amount of the decrease/increase instead of percentage of change.

2. Net management fee rate = (management fee - related commissions and charges) ÷ average AUM

3Q Full Year 3Q YoY change (%)

Management fees (MM Yen) 12,321 15,745 8,104 -34.2%

Net management fee rate (％) 0.83% 0.83% 0.85% +0.02

Performance fees (MM Yen) 10,217 12,897 2,343 -77.1%

Losses & gains from selling orbuying investment securities 1,730 1,730 -9 -

Appraisal losses and gains oninvestment securities - - -1,199 -

Other operating revenue （MM Yen） 176 179 125 -28.9%

Total operating revenue (MM Yen) 24,446 30,552 9,364 -61.7%

3Q Change (%)(100MM Yen) 2,199 -39.0%（％） 50.2% -0.2(100MM Yen) 1,440 -43.6%（％） 89.4% +2.3(100MM Yen) 1,265 -34.2%（％） 82.2% 7.1(100MM Yen） 4,906 -39.3%（％） 65.1% 1.2

FY2007 FY2008

3,60750.4%2,553

87.2%1,922

75.1%

Breakdown of Consolidated OperatingRevenue

Percentage of AUM eligible to earnperformance fees

FY2007 FY2008

Full Year

8,08263.9%

SPARX Asset ManagementCo., Ltd.

　COSMO

　PMA

Total


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Distribution of Base Date Calculation of Performance Fees (by Qtr.)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Apr. - Jun. Jul. - Sep. Oct. - Dec. Jan. - Mar. Other

17.7％

31.9％

12.6％

34.4％

3.4％

Notes: 1. All funds managed by SPARX Group (investment trusts and discretionary investment accounts) as of December 31, 2008, are classified by the performance fee

value date in the graph above. In calculating these percentages, the following adjustments are made: (1) For funds with multiple payment periods, the divided values of the funds are added for each value date (month) (2) Funds without performance fees are excluded from the total AUM. (3) “Private equity investments” are classified as “Others” because these performance fees will be received at termination. The above data are rounded to the nearest tenth of a percent.

2. The figures are preliminary based on internal information and materials, and we do not guarantee their accuracy.

% of AUM eligible to earn performance fees (as of Dec. 31, 2008)


15

Consolidated Expenses

2,251 +6.0% 2,124 2,772General administrative

Amortization of goodwill

Expense Category

（Unit: MM JPY）

12,068 -32.4%17,840 22,933Total Expenses(Operating & general administrative)

807 -28.1%1,122 1,564General administrative

Other general administrative expenses

791 -21.8%1,012 1,421General administrative

Entrusted business expenses

233 -8.3%254 372General administrative

Depreciation on fixed assets

505 -8.2%550 692General administrativeTravel expenses

5,032 -44.5%9,060 11,059General AdministrativePersonnel expenses

151 -20.5%190 247OperatingEntrusted fund administrative fees

YoY3Q3Q Full Year

1,218 -54.5%2,680 3,558OperatingCommissions paid

696 +25.2%

380 +31.2%

FY2008FY2008

556 821

290 422

FY2007FY2007

General administrativeProperty rent

OperatingOther operating expenses

(Note 1) The figures above, excluding “YoY change”, are truncated. “YoY change” is rounded to the nearest tenth of a percent. (Note 2) The “Personnel Expenses” data includes payments for temporary staff, etc.


16

Consolidated “Base Earnings”

FY2007Twelve months ended Mar. 31

FY2008FY2008Nine months

ended Dec. 31(Annualized)

Average AUM （100 Mil. Yen） 16,197 10,865

Net management fee rate(After the deduction of commissions paid) （％） 0.83 0.85

Annualized net management fee revenue(After the deduction of commissions paid)

(Mil. Yen) 13,414 9,181

Annualized ordinary expenses （Mil. Yen） 10,197 9,324Annualized “Base earnings” （Mil. Yen） 3,216 -142Number of employees(Full-Time: as of the period-end) 284 289

“Base earnings” indicates the estimated level of ordinary profit, which is derived solely from net management fee revenue (after deduction of commissions paid) and without any performance fee revenue.

(Note 1) The figures above are truncated. As preliminary figures, the “Annualized net management fee revenue” data is calculated by multiplying the “Net management fee rate” and the “Average AUM” for the period.

(Note 2) The “Annualized ordinary expenses” data is calculated by deducting (1) Commissions paid, (2) Bonuses (including allowance for bonuses), and (3) Amortization of goodwill from total operating and general administrative expenses.

(Note 3) The “Number of employees (Full-Time : as of period-end)” data shows the figure that does not include the number of “board members”.


17

Balance Sheet Summary (3Q)Sep. 2008Sep. 2008

（MM Yen）Dec. 2008Dec. 2008

（MM Yen） YoY

Current assets 35,201 21,730 -38.3%Cash and cash equivalents 13,315 10,409 -21.8%Operational inv. securities 5,730 4,798 -16.3%

Fixed assets 47,440 35,653 -24.8%Goodwill 22,378 22,583 -0.9%Investment securities 23,197 11,204 -51.7%

Total assetsTotal assets 82,641 57,383 -30.6%

Short-term borrowings 4,153 2,200 -47.0%Long-term debt due within 1yr - 2,000 -Corporate bond 5,000 5,000 0.0%Long-term borrowings 12,000 10,000 -16.7%

Total liabilitiesTotal liabilities 30,727 21,504 -30.0%

Common stock, Add. paid in capital 25,713 26,696 +3.8%Retained earnings 21,626 15,116 -30.1%Common stock in treasury at cost -4,438 -4,438 -Minority interestsMinority interests 3,689 1,300 -64.8%

Total shareholdersTotal shareholders’’ equityequity 51,914 35,878 -30.9%

Note: The figures above, excluding “YoY change”, are truncated. “YoY change” is rounded to the nearest tenth of a percent.


18

Net Asset Summary

（Unit: MM Yen)

End of Mar. 2008 End of Jun. 2008 End of Sep. 2008 End of Dec. 2008Shareholders' equity 43,422 41,137 40,798 37,374

Common stock 12,144 12,404 12,404 12,404Capital surplus 14,030 14,291 14,291 14,291Earned surplus 21,685 18,880 18,540 15,116Treasury stock -4,438 -4,438 -4,438 -4,438

Appraisal 1,077 1,879 -1,157 -2,890Net unrealized holding gain (loss) in securities 40 277 -1,342 -2,433Foreign currency transaction adjustment 1,037 1,602 185 -457

Equity warrant 45 56 81 94Minority interests 3,075 2,963 2,498 1,300Total net asset 47,621 46,037 42,220 35,878


19

Borrowed Amount & Corporate Bond

Already implemented “stress test” for “asset liquidity”

Possible to manage the debt with cash and investment securities, as well as the sale of the Cosmo shares to Lotte

（As of the end of Dec. 2008）Debt Amount （MM Yen） Contract date Maturity date Information

Ａ 2,200 2008/12/5 2009/1/5 contract term （2008/6/6 ～ 2009/6/5）Total 2,200Ｃ 2,000 2006/11 2009/1/31 already paid in fullTotal 2,000Ｄ 2,000 2006/11 2010/1/31Ｅ 3,000 2006/11 2011/1/31Ｆ 5,000 2006/11 2011/11/25Total 10,000

14,2005,000 2005/9 2012/9/28

19,200Corporate Bond

Total of the debt incl. interests

Short-term debt （Commitmentline）

Long-term debt to be paid in fullwithin one year

Long-term debt

Total of the borrowed amount


20

Update on Corporate Streamlining Initiative Update on Corporate Streamlining Initiative


21

Financial impact of corporate streamlining initiativeFinancial impact of corporate streamlining initiative -- UpdateUpdate

(Note 1) The figure shows the ordinary expenses. The “Ordinary expenses” data is calculated by deducting (1) Commissions paid, (2) Bonuses (including allowance for bonuses), and (3) Amortization of goodwill from total operating and general administrative expenses.

(Note 2) The figure of 1st phase (completed/on-going) shows internal estimate. (Note 3) These efforts center on SPARX’s Japanese equity operations and therefore exclude PMA Capital Management Limited and Cosmo Investment Management Co., Ltd. (Note 4) The financial impact of 2nd phase is under the internal examination.

0

70

80

90

100

- 17

- 4

102 (Note 1)

1st phase(on-going)

1st phase(completed)

N/A(Note 4)

2nd phase

• “L/S strategy” and “All cap strategy” are identified as the company’s core business

• Non-core business will be examined in line with its business performance and the necessary action will be decided.

1st phase 2nd phase

• 26 employees will resign the company in FY2008 based on the voluntary retirement solicitation (Tokyo)

• Will cancel the rental agreement of the head office (partially)

• Started to examine the expenses (IT-related, travel, and entrusted business expenses)

• Completed to downsize the UK subsidiary• Marketing function to US institutional

investor has been centralized to Tokyo office. US subsidiary still has a marketing function for the US mutual fund business.

• 15 jobs have been cut at overseas subsidiary, including HK subsidiary

Update

• Further job-cutting• Cost-reduction by centralizing the

business operation• Cost-examination at PMA ??

（Unit: 100MM Yen）

FY2007 (Note1) FY2009 (e)


22

AppendixAppendix


23

SAM Annualized Performance by Strategy Since Inception (1)

Reference Index TOPIX dividend included

Russell/Nomura Mid-Small Cap

Index

TOPIXdividend included,

USD hedged

TOPIX dividend included

TOPIX dividend included

Start Date May 1997 Jan 2000 August 1997 June 2000 July 1999

Volatility of Composite Return (Annualized) 24.2% 18.1% 11.6% 6.6% 21.3%

Long-only Active (Commingled

funds)Mid & Small Caps Long - Short

(USD、Lev.2)Long - Short（JPY、Lev.1）

Value Creation Investment

Composites 6.7% 0.5% 14.1% 2.7% 3.6%

Reference Index -3.3% -1.4% -0.2% -5.4% -4.1%

Excess Return 10.0% 1.9% 14.3% 8.1% 7.7%

（Annualized）（From Composite Start Date to Dec. 31, 2008）

1. The figures in the table above are calculated using the composite performance data of the major investment strategies and are based on the internal data. The “Reference index” is shown to facilitate comparisons and is not necessarily a representative of the “benchmark” indexes requested by clients.

2. The calculation methods used for the annualized returns above are as follows: the modified Dietz method (pre-deduction of management related fees) is applied to Long-only Active (Commingled funds), Mid & Small Caps, Long-Short (USD, Lev.2) and Strategic Investment; the NAV per share method (management fee deducted) is applied to the Long-Short (JPY, Lev.1); the internal rate of return (pre-deduction of management fees) is applied to the Value Creation Investment (USD). The above figures are rounded to the nearest tenth of a percent.

3. “TOPIX dividend included, USD hedged” is calculated by using the fully hedged month-end USD forward rate.

Source: SPARX Group Co., Ltd (Tokyo, Japan), as of Dec. 31, 2008.

The data of this page does not include Korean subsidiary (Cosmo Investment Management Co., Ltd.) and Hong Kong subsidiary (PMA Capital Management Limited).

Notes:


24

SAM Annualized Performance by Strategy Since Inception (2)

FY2003 FY2004 FY2005 FY2006 FY2007

Active Long-only (Commingled funds)

78.05% 5.54% 60.69% -14.57% -28.93%

Mid & Small Caps 70.25% 13.26% 44.34% -11.86% -28.95%Long - Short (USD, Lev.2) 37.92% 2.36% 27.95% -3.74% -14.43%Long – Short (JPY, Lev.1) 27.76% 2.96% 18.68% -7.50% -11.31%Strategic Investment 53.23% 3.13% 48.94% -18.71% -10.14%

1. Each composite includes portfolios managed by companies of the SPARX group, excluding Cosmo and PMA. 2. Investment strategies of each composite are described below.

Name of Composite Type of investment strategy

Active Long-only (Commingled funds)

Investment strategy of active, long-only portfolio management of commingled funds. The universe of this strategy includes all of the listed equity securities on Japanese exchanges.

Mid & Small Caps Investment strategy of investing companies in the medium and small cap stock universe.

Long-Short (USD Lev.2) Investment strategy combining long and short positions. Leveraged within twice NAV, and aims to achieve stable absolute returns.

Long-Short（JPY, Lev.1） Investment strategy combining long and short positions. Leveraged within NAV, and aims to achieve stable absolute returns.

Strategic (or “Focused”) Investment Investment strategy identifying and investing in undervalued companies through a concentrated portfolio.

Value Creation Investment（USD） Investment strategy focusing on corporate governance.

3. Investment strategy performance appendix (annual returns for the past five fiscal years)

The data of this page does not include Korean subsidiary (Cosmo Investment Management Co., Ltd.) and Hong Kong subsidiary (PMA Capital Management Limited).


25

This report is prepared solely for the purpose of providing information in English to shareholders of SPARX Group Co., Ltd. (“SPARX”) and other interested parties and is not intended to be a recommendation or solicitation to buy or sell SPARX shares or any other securities. SPARX and its group companies do not warrant the accuracy, completeness, or appropriateness of any data, information, opinions or other statements contained in this report (which remain subject to auditing), and are not liable for any damage, loss and/or other results caused by any reliance on or use of any of the said data, information, opinions or other statements. Past results are not indicative of future performance. This report contains forward-looking statements that reflect SPARX’s plans and expectations. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause SPARX’s actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. A discussion of these factors which may affect SPARX’s actual results, performance, achievements or financial position is contained in SPARX’s annual securities report, which is on file with the Kanto Finance Bureau of the Japanese MOF. Further, the content of this report may be altered without any prior notice. SPARX owns the copyright of this report. No part of this report may be transmitted, reproduced, quoted, cited or otherwise used for any purpose whatsoever without the prior written permission of SPARX.

SPARX Asset Management Co., Ltd., wholly owned subsidiary of SPARX Group Co., Ltd., has prepared and presented the relevant part of this report in compliance with the Global Investment Performance Standards (GIPS®). The firm has been defined as SPARX, comprising SPARX Asset Management Co., Ltd., SPARX Overseas Ltd., SPARX Investment & Research, USA, Inc. and SPARX International (Hong Kong) Limited. SPARX Asset Management Co., Ltd. is registered with Japanese authority to conduct the investment management business, the investment advisory and agency business and the second financial instruments business.

SPARX Group Co., Ltd.

Gate City Ohsaki East Tower 16F 1-11-2 Ohsaki, Shinagawa-ku, Tokyo 141-0032, Japan

Tel: +81-(0)3-5437-9700

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SPARX Group Co., Ltd....スパークス・グループ株式会社 February 20, 2009 SPARX Group Co., Ltd. SPARX Group Co., Ltd. Consolidated Financial Results for 3rd rd Qtr. of©