Briefing on Financial Results
for the Second Quarter of FY2015

July 31, 2015
Future Architect, Inc.
Copyright ©2015 by Future Architect, Inc. Japan

Contents

1. Earnings Results for the Second
Quarter of FY2015
2. Topics Related to the Second
Quarter of FY2015
3. Future Outlook for the Second
Half of FY2015
Copyright ©2015 by Future Architect, Inc. Japan1. Earnings Results for the Second
Quarter of FY2015

Copyright ©2015 by Future Architect, Inc. Japan

Consolidated Earnings Highlights

Future Architect, Inc. which designs management and IT.

• Consolidated net sales(Consolidated net sales reached a record high in the first half of the fiscal year.)Net sales increased for the third consecutive year in terms of net sales for the first half,
as sales of Future Architect increased (note), sales of eSPORTS and Brightree
remained robust and Micro CAD contributed to consolidated financial results. However,net sales failed to achieve the forecast for the first half.

・ Consolidated income(Consolidated income reached a record high in the first half of the fiscal year.)
Operating income and ordinary income posted all-time highs for the third consecutive
year, as income increased thanks to the aforementioned increased sales and theimprovement of the profit margin of Future Inspace and other firms.

・ Orders received
Orders received remained robust, as orders were received continuously due toexpansion of the client base and enhancement of the medium- and long-term
relationship of mutual trust with clients.
Note: Comparison is made by including projects that have been transferred to Future Inspace.
Copyright ©2015 by Future Architect, Inc. Japan-4-

Consolidated Results for the First Half of FY2015
Future Architect, Inc. which designs management and IT.

(Million yen)

FY2015Results forthe first halfCompared withprojected results
FY2015
Plan forthe first half

ChangeYear-on-year comparison
FY2014
Results forthe first half

ChangeNet sales

17,033

17,200-1.0%

16,372+4.0%

Operatingincome

2,093

1,990

1,875

12.3%

11.6%

+5.2%

+11.6%

2,102

2,005

1,882

Ordinary income
margin

12.3%

11.7%

+4.8%

Net income

1,197

1,160

1,031

Net income margin

7.0%

6.7%

+3.2%

Operating income
marginOrdinary
incomeCopyright ©2015 by Future Architect, Inc. Japan

-5-

11.5%

11.5%

6.3%

+11.7%+16.1%

Consolidated Balance Sheets(Million yen)

Future Architect, Inc. which designs management and IT.

End of Jun. 2015

End of Dec. 2014

Current assets

16,025

16,662-637

Non-current assets

5,265

5,040

+225

Total assets

21,291

21,702-411

Current liabilities

4,620

5,800

-1,180Non-current liabilities

1,435

1,426

+8

Total liabilities

6,055

7,226

-1,171

Total net assets

15,235

14,475+760

Shareholders’ equity ratio

70.7%

65.8%

+4.9pts

Main changes(Million yen)

Current assets:

Decrease in notes and accounts receivable tradeNon-current assets: Decrease in goodwill
Increase in investment securities
Current liabilities:

Decrease in accounts payable - other
Decrease in income taxes payable

Net assets:

Increase in retained earnings

Copyright ©2015 by Future Architect, Inc. Japan-6-

ChangeEnd of Jun.
2015
4,372

End of Dec.
2014
5,006

754
1,860

897
1,494

-142
+366

828
847

1,049
1,361

-221
-513

12,71912,012+706

Change-633

Consolidated Cash Flows(Million yen)

Future Architect, Inc. which designs management and IT.

FY2015 Results FY2014 Results
for the first half for the first half

ChangeNet cash provided by (used in) operating activities

1,038

1,184

-146

Net cash provided by (used in) investing activities

-462

-196

-265

Net cash provided by (used in) financing activities

-438

-362

-75

Effect of exchange rate changes on cash and cash
equivalents

-68

37

-106

Increase (decrease) in cash and cash equivalents

69

662

Cash and cash equivalents at beginning of the period

8,614

6,892

Cash and cash equivalents at end of the period

8,683

7,555

Main changes(Million yen)
Operating CF:

Income before income taxes and minority interests
Increase (decrease) in provision for quality assurance
Income taxes paid

First half of
FY20152,105-88-1,359First half of
FY20141,884
24-1,078Change
+220
-112
-281

Investing CF:

Purchases of investment securities
Payments for lease and guarantee deposits

-298
-11

-104

-298
+93

Financing CF:

Cash dividends paid

-491

-357

-133

Copyright ©2015 by Future Architect, Inc. Japan-7-

Consolidated Results by Segment

Future Architect, Inc. which designs management and IT.

FY2015 Results
for the first half

FY2014 Results
for the first half

Year-on-yearchangeNet Sales

17,033

16,372+4.0%

IT Consulting
Package & Service
New Media & Web Service
Corporate Revitalization
Other
Adjustments

10,321
2,095
2,394
2,243
-20

10,139
2,023
1,967
2,249
-6

+1.8%
+3.6%
+21.7%-0.3%-

Operating Income

2,093

1,875

+11.6%IT Consulting
Package & Service
New Media & Web Service
Corporate Revitalization
Other
Adjustments

1,924
177
-49
12
0
27

1,714
160
-20
3
0
17

+12.2%+10.9%+279.8%-(Million yen)

Note: Segment changes were made in the first quarter of 2015, and figures for FY2014 were adjusted to reflect those changes.
Copyright ©2015 by Future Architect, Inc. Japan-8-

Consolidated Orders Received and Backlog by Segment
Future Architect, Inc. which designs management and IT.

Orders received(Million yen)

Year-onyearchangeFirst half of
FY2014

+1.5%

6,468

7,263

-11.0%

2,048

+2.2%

1,157

1,079

+7.2%

134

138

-2.9%

19

20

-3.3%

12,847

12,643

+1.6%

7,644

8,363

-8.6%

First half of
FY2014

IT Consulting Business

10,61810,456

Package & Service
Business

2,094

Total

Year-onyearchangeFirst half of
FY2015First half of
FY2015

New Media & Web Service
Business

Backlog

Notes 1: eSPORTS and Uoei are not included in the above table because they do not engage in order-based production.
2: Segment changes were made in the first quarter of 2015, and figures for FY2014 were adjusted to reflect thosechanges.

Copyright ©2015 by Future Architect, Inc. Japan-9-

Trends of Half-Yearly Consolidated Results

Future Architect, Inc. which designs management and IT.

20,00018,000Net sales
Operating income

3,000

14,000Orders received
Backlog

2,700

12,00016,0002,400

14,0002,100

12,0001,800

10,0008,000
10,000

1,500

8,000

1,200

6,000

900

4,000

600

2,000

300

6,000

4,000

2,000

0

0

0

2013.1H 2013.2H 2014.1H 2014.2H 2015.1H

Copyright ©2015 by Future Architect, Inc. Japan

2013.1H- 10 -

2013.2H

2014.1H

2014.2H

2015.1H

Results by Segment (IT Consulting Business)
Future Architect, Inc. which designs management and IT.

 Future Architect saw large projects for manufacturing industries expand and the
profitability of projects improved due to company-wide development of ascientific project management method.
 Business in Southeast Asia was profitable in terms of the aggregate
performance of the three companies, driven by the Malaysian subsidiary.
Trends of orders received and backlog

Trends of net sales and operating income
12,00010,000Net sales
10,139Operating income
10,321

2,400

12,00010,61810,456
1,924

2,000

10,000

1,600

8,000

1,714
8,000

Ordersreceived
Backlog

7,263
6,468

6,000

1,200

6,000

4,000

800

4,000

2,000

400

2,000

0

0
First half of FY2014

Copyright ©2015 by Future Architect, Inc. Japan

0First half of FY2015

First half of FY2014- 11 -First half of FY2015

Results by Segment (Package & Service Business)
Future Architect, Inc. which designs management and IT.

 FutureOne saw sales increase due to the smooth performance of a numberof medium-sized projects.
 Micro CAD saw both sales and operating income remain robust, surpassing
their respective targets, due to strong sales of its comprehensive intellectual
property management system.
Trends of net sales and operating income
3,000

Trends of orders received and backlog
300

Net sales
Operating income

2,500

250
2,095

2,023
2,000

177

2,500

Orders received
2,048

Backlog
2,094

2,000

200
1,500

160
1,500

150

1,000

100

500

50

500

0

0

0

1,079

1,157

1,000

First half of FY2014

Copyright ©2015 by Future Architect, Inc. JapanFirst half of FY2015

First half of FY2014- 12 -First half of FY2015

Results by Segment (New Media & Web Service Business)
Future Architect, Inc. which designs management and IT.

 eSPORTS saw both sales and operating income remain strong because of robust
online sales of sports, outdoor, and fitness gear. Sales of private brand products also
increased.
 Tokyo Calendar launched a new online service and renovated its website. With thenumber of users and page views growing smoothly, the company will continue to takemeasures to grow the number of users of the website.
Trends of net sales and operating income
3,000

Net sales
Operating income

2,500
2,000
1,500

120
2,394

100

1,967

80
60

1,000

60
39

40

500

20

0

0

First half of FY2014First half of FY2015
Note: Since the said business involves many M&A deals, goodwill occurred. However, amortization of goodwill is not taken into consideration
to make year-on-year comparison simple.
Copyright ©2015 by Future Architect, Inc. Japan- 13 -

Results by Segment (Corporate Revitalization Business)
Future Architect, Inc. which designs management and IT.

 Net sales were almost unchanged from the previous year.
 Profit margin improved and inventory decreased, because sales of individual
products and data on inventory volume were reflected in purchases of
products.

Trends of net sales and operating income
2,500
2,249

2,243

Net sales
Operatingincome

2,000

50

40

1,500

30

1,000

20
12

500

10
3

0

0
First half of FY2014

Copyright ©2015 by Future Architect, Inc. JapanFirst half of FY2015- 14 -

2. Topics Related to the Second
Quarter of FY2015

Copyright ©2015 by Future Architect, Inc. Japan

Consolidated Analysis of Changes in
Net Sales
Consolidated Analysis of Changes in
Operating Income
Sales Analysis of IT Consulting
Business: non-consolidated
Major Press Releases in the First Halfof the Year

Consolidated Analysis of Changes in Net Sales

Future Architect, Inc. which designs management and IT.

(Million yen)
Increase in net salesof Package & Service
Business: +72

Decrease in net
sales of Corporate
Revitalization
Business: -6

Increase in net
sales of New Media& Web Service
Business:+426
Increase in net salesof IT Consulting
Business: +181

Difference between“adjustments” of the firsthalf of 2014 and those of
the corresponding period of
the previous year: -13

17,033(+4.0%)

16,372First half of FY2015

First half of FY2014
Copyright ©2015 by Future Architect, Inc. Japan- 16 -

Consolidated Analysis of Changes in Operating Income
Future Architect, Inc. which designs management and IT.

Increase in operating
income of Corporate
Revitalization
Business: +9

Increase in operating
income of Package &Service Business:+17

1,875

Increase inoperating income of
IT Consulting
Business: +209

Decrease in operating
income of New Media &Web Service Business: -29

Difference between“adjustments” of the firsthalf of 2014 and those of
the corresponding periodof the previous year: +10

2,093(+11.6%)First half of FY2015

First half of FY2014
Copyright ©2015 by Future Architect, Inc. Japan(Million yen)

- 17 -

Sales Analysis of IT Consulting Business (Excluding Procured
Articles): non-consolidated (1/3)

Future Architect, Inc. which designs management and IT.

Trends of sales by industry

First halfof FY2013

1,876(24.0%)

1,309(16.7%)First halfof FY2014

1,803(20.9%)

1,567(18.1%)First halfof FY2015

2,064(23.1%)

2,087(26.6%)

2,915(33.8%)

1,899(21.3%)

Service

2,565(32.7%)

2,348(27.2%)

2,207(24.8%)

Distribution

Financial

2,744(30.8%)

Manufacturing

Note: Figures for the first half of FY2015 include projects transferred to Future Inspace.
Copyright ©2015 by Future Architect, Inc. Japan- 18 -

Sales Analysis of IT Consulting Business (Excluding Procured
Articles): non-consolidated (2/3)

Future Architect, Inc. which designs management and IT.

Trends of sales by phase

First halfof FY2013

First halfof FY2014

First halfof FY2015

2,483(31.7%)

1,019(13.0%)

3,286(38.1%)

1,749(19.6%)

1,463(16.9%)

3,387(39.2%)

498(5.8%)

1,504(16.9%)

3,814(42.8%)

1,847(20.7%)

Grand design

1,395(17.8%)

2,940(37.5%)

DesignDevelopment

Maintenance/
operation

Note: Figures for the first half of FY2015 include projects that have been transferred to Future Inspace.
Copyright ©2015 by Future Architect, Inc. Japan- 19 -

Sales Analysis of IT Consulting Business (Excluding Procured
Articles): non-consolidated (3/3)

Future Architect, Inc. which designs management and IT.

Trends of sales composition ratios by scale of project (account)

First halfof FY2011

20.3%

First halfof FY2012

21.2%

33.0%

First halfof FY2013

14.8%

35.2%

First halfof FY2014

9.9%

First halfof FY2015

65.6%

14.1%

Less than 100
million yen

19.7%

19.9%

30.1%

34.4%

24.8%

18.4%

26.1%

26.1%

30.9%

8.8%

46.7%

Over 100 million to less than
500 million yen

Over 500 million yen to lessthan 1,000 million yen

Over 1,000
million yen

million yen

Note: Figures for the first half of FY2015 include projects that have been transferred to Future Inspace.
Copyright ©2015 by Future Architect, Inc. Japan- 20 -

Major Press Releases in the First Half of the Year
Future Architect, Inc. which designs management and IT.

Finance

March 5Extension of Business Support Functions for Individuals through SKYBANKMarch 27 Construction and Introduction of Sales Business Tablet System for Nagano Bank, Ltd.
March 30 Addition of Stock Price Alert Notification Function to the iSPEED Trade Tool of Rakuten
Securities, Inc.
April 16

Launching Development of Next-generation Financing Support System for Gunma Bank,
Ltd.

Distribution March 18 Introduction of JD Edwards E1 to Major Domestic Bases of DUNLOP SPORTS CO., LTD.
March 23 Construction of High-performance IT Infrastructure that Supports Business Growth of
Zen-Nippon Shokuhin Co., Ltd. (Zennisshoku)
April 16

Introduction of Oracle Siebel CRM to an Operating Company under the Umbrella of
Sapporo Holdings Ltd.

May 1

Technology May 26

Initiatives of Lawson System Lab
Launching Provision of Future Formula System Analysis and Innovation Solution

Copyright ©2015 by Future Architect, Inc. Japan- 21 -

Expansion of Business Support Service Functions for
Individuals through SKYBANK

Future Architect, Inc. which designs management and IT.

Expansion of functions of SKYBANK business support and financing support cloud computing
service for regional financial institutions•••

Developed clerical support for sales of assets on deposit, a business support function for individuals, inaddition to sales support functions for corporations.
Provided consultations on sales operation of asset management products for individuals, including investment
trusts and insurance ⇒ Confirmation of suitability ⇒ Placement of orders ⇒ Coherent navigation of all
automated processes of collaborative investment trust businesses (center-cut agreement)
Started providing services to TOMATO BANK, LTD. in June, expecting a 46% decrease in clerical workload.

Clerical work for sales of assets on deposit products
SKYBANK

Judgment on suitability

Copyright ©2015 by Future Architect, Inc. Japan

Center-cut agreement
Investment trust
business system

Interview records

Registration ofdetails of agreements- 22 -

Construction and Introduction of Tablet System for Sales Operation ofNagano Bank, Ltd.

Future Architect, Inc. which designs management and IT.

Addition of mobile function to sales support system•

Enhancing on-site sales capabilities and improving operational efficiency(Operation started on June 1, 2015)- Integrated real-time based system in and outsideof branches- Intuitive user interface that attaches importanceto fields- Graphical indication of figures for easy
recognition- Reliable voucher management by issuing claim
checks using a mobile printerMobile printer*The display image is a sample case of N-TAB:
NaganoBank Total Assist Book, which the Company
introduced at Nagano Bank, Ltd.

Copyright ©2015 by Future Architect, Inc. Japan- 23 -

Launching Development of Next-generation Financing Support System
for Gunma Bank, Ltd.

Future Architect, Inc. which designs management and IT.

One-stop support for financing functions of corporations and individuals•••

Coherent integration of a series of processes, such as sales activities, ratings/requests for decisions,entries, post-management and execution collaboration with accounting systems
Significant reduction of business processing time through the standardization of business processes
Operation scheduled to start in May 2017

Expansion of consulting function for corporations, marketing for individuals, and direct banking

Sales activities
Selectingtargetcompanies
forpromotions

Financing clerical work

Post-management

Feasibility
Acceptingapplication

Visit plan

Sales information
infrastructure

Personal
loan

Screening,
circulation

Contract

Execution

Managing
concerned
items

Monitoring

Customer
information

Suppliers andcustomers

Shareholders

Assets held

Transaction
situation

Financial affairs

Officer

Guarantor

Liabilities

Transaction
history

Copyright ©2015 by Future Architect, Inc. Japan- 24 -

Automaticcollaboration
on execution
information

Accounting system

Addition of Stock Price Alert Notification Function for Rakuten
Securities, Inc.

Future Architect, Inc. which designs management and IT.

Expansion of iSPEED share trade smartphone application and push-button
ultra-high-speed stock price transmission function-

High-speed, real-time transmission of 2,000 pieces of data per second-

Capable of setting 3,000 conditions per user(including automatic synchronization such as multiple terminals per user and multiple users
per terminal)
Transition to stock name screen with just one click, powerfully supporting trade timing-

Notification service system

Push service

Trigger

Copyright ©2015 by Future Architect, Inc. Japan- 25 -

DeviceIntroduction of JD Edwards E1 to Major Domestic Bases of DUNLOPSPORTS CO., LTD.

Future Architect, Inc. which designs management and IT.

Full-scale renovation of mission-critical systems (order-receiving, purchase, inventory, accounting)using JDE and intra-mart
Achieving business standardization throughout the group companies including sales companies,
unifying information, and automating intra-group transactions
Breaking away from conventional mainframe and supporting growth of sports business including
overseas activities

Information unification of SCM andaccounting operation
with global ERP package

Inventory
Cost
Achieving business standardization
and business control

Providing flexible system linkages
with relevant systems

Interface system

Uniting FUTURE components with global ERP

Copyright ©2015 by Future Architect, Inc. Japan- 26 -

Introduction of Oracle Siebel CRM to Operating Company under the Umbrellaof Sapporo Holdings Ltd.

Future Architect, Inc. which designs management and IT.

Latest integrated group sales support system that supports 2,000 sales staff
Unifying over 3 million pieces of customer sales information by integrating 20 systems
Creating offensive business merits across borders between products/channels/regions anddefensive cost merits through system integration

Domestic alcoholic drinks
retail store sales

Food/beverages
retail store sales
New customer information database
Projectmanagement

Domestic alcoholic drinks
restaurant sales

Sales
supportClientActivity
track
records

Domestic alcoholic drinks
foreign liquor sales

Expenses

Food/beverages
vending machine sales

Sales
throughvending machines
Location ofvending machines

Corporate sales

Siebel CRM

Support for customer-focused information sharing and sales activities across products, channels, andregions

Copyright ©2015 by Future Architect, Inc. Japan- 27 -

Construction of High-performance IT Infrastructure that Supports Business
Growth of Zen-Nippon Shokuhin Co., Ltd. (Zennisshoku)

Future Architect, Inc. which designs management and IT.

Innovation of IT infrastructure that supports business growth including businessalliance with JA and All Japan Drug Co., Ltd.
• First adoption in Japan of state-of-the-art flash storage technology for mission-critical systems‐Processing speed is four times faster on average and a maximum of 12 times faster, while running costs
are reduced by 30%.

Data volume is increasing
every year.
Data volume (100 million pieces)

Sales of Zennisshoku (100 million yen)

Trends in sales and data volume

FY2010

Copyright ©2015 by Future Architect, Inc. Japan

FY2011FY2012FY2013- 28 -FY2014

Initiatives of Lawson System Lab

Future Architect, Inc. which designs management and IT.

Started planning and examining next-generation system for Lawson,
convenience store chain operator• Taking charge of overall design of next-generation IT system• Controlling all processes from construction to operation of system• Improving future value of both companies by further enhancing partnership
Store development

Store operation

Area strategy

Order receiving/purchase

Property development

Inventory

Contract/construction

Sales

Products

Back office

Product policy/plan

Financial accounting

Product development

FC accounting

Product supply/logistics

Personnel affairs andsalary management

EC

MemberCopyright ©2015 by Future Architect, Inc. JapanEC siteInformation
analysis
Customeranalysis

Headquarters
information
analysis

Management
accounting

Franchise headquarters

12,000 stores nationwide

KIOSK- 29 -

Launching Provision of System Analysis and Innovation Solution,
Future Formula
Future Architect, Inc. which designs management and IT.

Systematization of know-how cultivated through renovating large-scale legacy systems (large-scale missioncritical system) since the foundation
Renovation methodology for superannuated mission-critical systems that tend to require enormous costs andhave a risk of quality for modification
Scientific approach to current situation analysis, next-generation design, system construction, and system change
Capable of implementing new services for management strategies, reducing maintenance and operation costs,
and responding to loT (Internet of Things)

External
access
point

User

Oper
ation
A

Oper
ation
B

Oper
ation
C

Operation
D,E,F,G…

ExternalIF

UI

Business logic (calculation formula)

Future Formula

DFD

ERD

Copyright ©2015 by Future Architect, Inc. Japan- 30 -

3. Future Outlook for the Second
Half of FY2015

Copyright ©2015 by Future Architect, Inc. Japan

Measures for the Second Half of FY2015
Future Architect, Inc. which designs management and IT.

Capturing New Clients
Enhancing Cooperation with Existing Clients
Reinforcing Consulting Business by Type of Industry

Copyright ©2015 by Future Architect, Inc. Japan- 32 -

Capturing New Clients

Future Architect, Inc. which designs management and IT.

Major new clients in the first half (Several distribution companies
have also already been taken in informally in the second half.)– Regional bank A– Trust bank B– Securities company C

Introduction of SKYBANK cloud computing
Introduction of retail-related system
Introduction of online transaction-related
system– Distribution/retail company D– Gas supplier company E– Security company F

Copyright ©2015 by Future Architect, Inc. Japan

Introduction of EDI system
Introduction of security system
Analysis of mission-critical system- 33 -

Enhancing Cooperation with Existing Clients
Future Architect, Inc. which designs management and IT.

Support for business cooperation between different business categories

Copyright ©2015 by Future Architect, Inc. Japan- 34 -

Reinforcing Consulting Business by Type of Industry
Future Architect, Inc. which designs management and IT.

Reorganization of business divisions (three divisions and fourgroups)••Promoting receipt of new orders and cooperation with existing clients
Concentrating technological capabilities and enhancing maintenanceand operation services- Financial Business Division (banking, securities, and credit card)- Advanced Business Division (retail and wholesale businesses)- Enterprise Business Division (service industry)- Business Reform Group (manufacturing industry)- Public Group (utilities business)- TIG (Technology Innovation Group: technological services)- SSS (Smart System Service: maintenance and operation services)

Copyright ©2015 by Future Architect, Inc. Japan- 35 -

Achievement of Plan for the Full Fiscal Year
Future Architect, Inc. which designs management and IT.

(Million yen)Compared with the first half
(progress)

Full-year
forecast for
FY2015FY2015Results for the
first half

Achievement
rate

Net sales

35,25017,033

48.3%

Operating Income

4,800

2,093

13.6%

12.3%

43.6%

4,830

2,102

13.7%

12.3%

2,770

1,197

7.9%

7.0%

Operating income
marginOrdinary Income
Ordinary income
marginNet income
Net income margin
Copyright ©2015 by Future Architect, Inc. Japan- 36 -

43.5%

43.2%

Future Architect, Inc. which designs management and IT.

The summary report of operating results, supplementarymaterials, briefing materials and other various IR materials
are also available on the Company’s website.
http://www.future.co.jp/ir/
Investor Relations, Future Architect, Inc.
Tel: +81-3-5740-5724
Fax: +81-3-5740-5820
E-mail: ir@future.co.jp
The forecasts in this material are based on currently available information; actual results may differ from such forecasts
depending on the future direction of the Japanese economy and the IT service industry. It should be noted that the Company does
not guarantee or promise the accuracy of these forecasts.
In this material, the figures in the summary report of operating results, etc. described in units of thousand yen, are stated in unitsof million yen. Hence, a disparity may be found in some of the totals and differences. For detailed figures, please refer to thesummary report of operating results.
Copyright ©2015 by Future Architect, Inc. Japan- 37 -