Briefing on Financial
Results for FY2012
February 8, 2013
Future Architect, Inc.

Copyright ©2013 by Future Architect, Inc. Japan

Contents

1. Earnings Results for FY2012(Yuji Higashi, Executive Senior Vice President)

2. FY2013 Forecast(Yuji Higashi, Executive Senior Vice President)

3. Outlook and Direction in the Future(Yasufumi Kanemaru, Chairman)
Copyright ©2013 by Future Architect, Inc. Japan1. Earnings Results for FY2012(Yuji Higashi, Executive Senior Vice President)

Copyright ©2013 by Future Architect, Inc. Japan

Earnings Highlights
1. Consolidated net sales slightly exceeded the previous fiscal year.
IT Consulting business expanded in the financial and manufacturing industries, in addition to
the distribution and service industries.
With an increase in the number of the grand design and planning phases for new projects,
we expect continuance and growth of the project in the future.

2. Consolidated income failed to compensate for the earnings decline in the first half.
Income declined in the first half, due to loading costs for improving the quality on
implementation of some projects in IT Consulting.
Consolidated income returned to a recovery track in the latter half. However, we continue toincur the investment related cost in developing new businesses, including pouring costs into
quality enhancement, overseas businesses, the healthcare field, and Tokyo Calendar, Inc.

3. Backlog increased sharply.
The backlog expanded significantly compared with the end of fiscal 2011 due to an increasein the number of new clients, resulting from large-scale system integration, IT costs
optimization, and EC infrastructure building and cloud services. Net sales and income are
expected to grow in the future.

Copyright ©2013 by Future Architect, Inc. Japan-4-

Quarterly Changes of Consolidated Results
8000

1600

7000

1400

6000

1200

5000

1000

4000

800

3000

600

2000

400

1000

200
0

0
2011.1Q 2011.2Q 2011.3Q 2011.4Q 2012.1Q 2012.2Q 2012.3Q 2012.4Q
Net sales

Copyright ©2013 by Future Architect, Inc. Japan

Orders received-5-

Operating income

FY2011/FY2012 Consolidated Results(Millions of yen)

FY2011 Results

FY2012 Results

Net sales

23,292

23,353Operating income

2,929

1,935

12.6%

8.3%

3,051

2,057

13.1%

8.8%

1,715

1,167

7.4%

5.0%

Operating income margin

Ordinary income
Ordinary income margin

Net income
Net income margin

Copyright ©2013 by Future Architect, Inc. Japan-6-

Year-on-yearchange+0.3%(34.0%)(32.6%)(31.9%)

Balance Sheets
End of Dec.
2011

End of Dec.
2012

Current assets

10,529

9,771

(757)

Fixed assets

3,924

5,058

+1,134

Total assets

14,453

14,830+376

Currents liabilities

2,716

2,747

+31

Noncurrent liabilities

326

316

(10)

Total liabilities

3,042

3,063

+21

Total net assets

11,41011,766

+355

78.9%

78.5%

(0.4pt)(Millions of yen)

Shareholders’ equity ratio

Main changes

End of Dec. End of Dec.
2011
2012

(Millions of yen)

Current assets:

Fixed assets:

ChangeDecrease in cash and deposits
Increase in accounts receivabletrade
Decrease in securities
Increase in software
Increase in investment securities

Copyright ©2013 by Future Architect, Inc. Japan-7-

Change

5,076
2,770

4,156
3,523

(920)
+752

701
386
1,523

30
836
1,907

(670)
+450
+383

Cash FlowsFY2012
Results(Millions of yen)

FY2011 Results

Cash flows from operating activities

1,919

727

(1,191)

Cash flows from investing activities(617)(1,157)(540)

Cash flows from financing activities

(919)

(919)

(0)

Effect of exchange rate changes on cash and cash
equivalents

(8)

6

+15

Changes in cash and cash equivalents

373(1,342)

5,153

5,526

-

1

5,526

4,184

Cash and cash equivalents at the beginningof the period
Net increase (decrease) in cash and cash equivalents
resulting from change in scope of consolidation
Cash and cash equivalents at the end of theperiodMain changes(Millions of yen)

Operating CF: Net income before taxes
Increase (decrease) in accounts receivable
Investing CF: Acquisition of intangible fixed assets
Purchase of stocks of subsidiaries and affiliates
Copyright ©2013 by Future Architect, Inc. Japan-8-

FY2011Results
2,910
203
(243)
-

ChangeFY2012
Results
2,047
(536)
(497)
(191)

Change
(862)
(740)
(253)
(191)

Results by Segment(Millions of yen)

FY2011FY2012Year-on-yearchangeNet Sales
IT Consulting
Package & Service
Corporate Revitalization
Other
Adjustments

23,292
14,619
4,497
4,553
84
(463)

23,353
14,843
4,389
4,439
283
(602)

+0.3%
+1.5%
(2.4%)(2.5%)+233.8%-Operating Income
IT Consulting
Package & Service
Corporate Revitalization
Other
Adjustments

2,929
2,570
333
31
(29)
23

1,935
1,745
279
29
(155)
36

(34.0%)(32.1%)(16.3%)(6.9%)-

Copyright ©2013 by Future Architect, Inc. Japan-9-

Orders Received and Backlog by Segment
Orders received(Millions of yen)
2011

BacklogYear-on-yearchange2012

2011

Year-on-yearchange2012

IT Consulting Business

13,49817,805+31.9%

3,559

6,576

+84.8%

Package & Service Business

4,555

3,631

(20.3%)

1,185

971

(18.0%)

Other

59

290

+384.9%4

12+199.8%

Total

18,114

21,727+19.9%

4,748

7,560

+59.2%

Trends of orders received (excluding that in Other)Trends of backlog (excluding that in Other)
8,000

8,000
IT Consulting
Package & Service
Total

7,000

IT Consulting
Package & Service
Total

7,000

6,000

6,000

5,000

5,000

4,000

4,000

3,000

3,000

2,000

2,000

1,000

1,000

0
1Q2011

2Q2011

3Q2011

4Q2011

1Q2012

2Q2012

3Q20124Q20120
1Q2011

Copyright ©2013 by Future Architect, Inc. Japan- 10 -

2Q2011

3Q2011

4Q2011

1Q2012

2Q2012

3Q20124Q2012

Results by Segment (IT Consulting Business)
Trends of earnings (Future Architect) Large projects started full-scale operations one after another and transitioned tooperation and maintenance phase.
 A number of grand design projects related to corporate integration started up.
 Launched new services, including ERP projects for manufacturers operating not onlyin Japan but also globally (global ERP) and cloud services for the financial industry(banking and securities sectors).
 Income margin declined due to costs for quality enhancement and quality control ofsome projects. However, additional costs were already discounted in 2012.

Trends of earnings (Southeast Asia)
 The Malaysian subsidiary (Brightree) performed steadily as existing projects remain
satisfactory.
The subsidiary also expanded the businesses, such as successful winning in a large
SAP project jointly with the Singaporean subsidiary (NCG).
 The subsidiaries in Singapore (NCG) and in Thailand (NCG Thai) have seen a light forlaunching a sales base and expected a steady growth in 2013.
Copyright ©2013 by Future Architect, Inc. Japan- 11 -

Results by Segment (IT Consulting Business)
Sales composition by Industry (Future Architect) Gained new clients in the financial and manufacturing industries.
 Sales composition ratios were equalized among industries, although sales from service anddistribution industries previously accounted for 80%.

38.5%

42.6%

2010

46.2%

2011

27.0%

2012

-

2,000

26.8%

4,000
Service

Copyright ©2013 by Future Architect, Inc. Japan

6,000

17.7%

35.8%

14.2%

27.2%

19.0%

8,000

Distribution

10,000Financial- 12 -

1.2%

12,000
Manufacturing

3.8%

14,000Million yen

Results by Segment (IT Consulting Business)
Sales composition by phase (Future Architect) The number of projects for new clients in the grand design phase increased. Sales increases inthe subsequent phases can be expected.
 With the full-scale operation of large projects, the number of projects in the operation andmaintenance phase increased. Base for stable earnings has expanded.

2010

13.8%

2011

14.9% 7.2%

65.7%

2012

24.2%

43.0%

30.4%

14.1%

-

5,000
Grand design

Copyright ©2013 by Future Architect, Inc. Japan

43.2%

Design

12.6%

12.3%

18.7%

10,000Development- 13 -

15,000Operation/Maintenance and others

Million yen

Results by Segment (Package & Service Business)
Sales management/ERP packages for mid-sized companies and SMEs (FutureOne)

 Although operating income decreased in the first half due to costs for quality
improvement, it recovered rapidly in the latter half.
 Organizational changes, personnel transfers and project management tools
introduction were conducted within the Group in order to enhance project
management
 Focused on enhancing and expanding sales channels.

Consigned development and regional businesses (Ascendia)
 Earnings remained stable throughout the year, and operating income margin rose to
9.8%.
 Operation and maintenance services were expanded in cooperation with Future
Architect.
 Near-shore development and operating structure at regional bases started full-scale
operations.
 Continued to expand projects for regional public organizations.
Copyright ©2013 by Future Architect, Inc. Japan- 14 -

Result by Segment(Corporate Revitalization Business-Uoei Shoten Corporation)
Operating income sustained Achieved a positive operating income for the second straight year.
 Expanded sales space at some stores to increase product lines specialized to meetthe individual store’s requirements.
 Optimized costs through efficient distribution, appropriate product lineups, and review
of advertising expenses.

More sophisticated IT utilization
 Embarked on restructuring our own IT systems including backbone systems.
 Started purchasing needs analysis of POS data in collaboration with Future Architect.

Copyright ©2013 by Future Architect, Inc. Japan- 15 -

Introduction of Project Cases
1. Large-scale Downsizing
2. System Innovation and IT Cost Reduction
3. EC Solutions
4. Smartphone
5. Cloud Service
Copyright ©2013 by Future Architect, Inc. Japan1. Large-scale Downsizing(Company A, a convenience store franchiser)・ Reformed backbone systems that support a gigantic franchise
chain.
• Valuable track record in overcoming severe project conditions(Loss of design specifications, absence of specifications experts)• Adopted original Future Architect methodology, which can beapplied in any type of industry.

1/2: Scale of program
4,850,000 steps  2,440,000 steps

1/2: IT operating expenses
Reduction of 58%
Copyright ©2013 by Future Architect, Inc. Japan- 17 -

2. System Innovation and IT Cost Reduction(Company B, an Internet service provider)• Internet service provider with 2 million or more subscribers• Reduced IT costs by integrating silo-type systems by channel/carrier• Improved customer satisfaction resulting from providing new services in a timely manner.
• Won overwhelming trust of the client stating: “No one but Future Architect would havecompleted this.”

FLET’SHIKARIau hikariCommonFLET’S
FLET’SHIKARIHIKARIau hikari
WiMAX
ADSL
Dial-up
FLET’S
・…….
HIKARIau hikariCommonOnline processing

Call center

WiMAX
CommonWiMAX
ADSL
Dial-up…….

Application

FLET’SHIKARIau hikari

ADSLCommonDial-up

WiMAX
…….

ADSL
Dial-up…….

Copyright ©2013 by Future Architect, Inc. Japan- 18 -

3. EC Solutions (Company C, a retailer)
・Started a new online home delivery service for foodstuffs.
• Built the system within a short period of only five months, frombusiness planning to launching services• Provided high-quality Internet service solutions by adopting
Future components for distributors.

Copyright ©2013 by Future Architect, Inc. Japan- 19 -

4. Smartphone(Company D, an educational service company)

・ Built a new educational service system using digital teachingmaterials• Learning content services for students using iPhone and iPod touch.
• Developed correction services using smartphones.
• Improved learning efficiency through true-false replies and guidancein real time.

iPhone/ iPod touch* iPhone and iPod touch are trademarks of Apple Inc., registered in the U.S. and other countries.
Copyright ©2013 by Future Architect, Inc. Japan- 20 -

5. Cloud Service(Company E, a FX margin trading firm)• Backbone and information systems services for FX margin trading operations• Provided real-time cloud service by adopting the data center and systeminfrastructure of Future Architect.
• 24-hour non-stop operation and maintenance, and network monitoring service• Achieved a highly reliable cutting-edge system that enables high-speed trade
executions.
Foreign exchange
services

ClientEscalation

Call center

Information System
Division
Inquiries, requests forinvestigations

Inquiries
Response/reportOperation
andmaintenanceservice

Future Operation
Management Center(Secondary)Operation monitoring
Maintenance responses

Trading center

Responses to clients
Inquiries, brokerage of order placed

Future Operation
Management Center(Principal)

Covertransactions

Internet
FX system

Rate
distribution

System use services
Foreign exchange
investors

Latest data center featuring
highest level of security

End users (Foreign exchange investors)

Copyright ©2013 by Future Architect, Inc. Japan- 21 -

24-hour network
monitoring service

2. FY2013 Forecast(Yuji Higashi, Executive Senior Vice President）

Copyright ©2013 by Future Architect, Inc. Japan

Measures for 2013

•Project quality enhancement•Improvement of subsidiaries’ earnings•Acceleration of new services expansion

Copyright ©2012 by Future Architect, Inc. Japan- 23 -

Project Quality Enhancement Request management
 Change management

 Incident management
 Release management

Operation andmaintenanceFutureNASA

Definitions ofrequirements

Search <<Date

Project nameTrends of
personnel

Previous
week Latest

Workingtime zone

Trends ofissuesTrends ofquality

Trends ofprogress

BNE(High school seminar)
GTD
(GTD)
GTD
(Incident management)

ORB(Step2)

ReleaseRTB(RTB)
Financial cloud(SKY BANK)
Financial cloud(JYB)

Design/development/test

Financial cloud
(TMB)
SSP
(Phase 1 JT)
SSP(Phase 1 ST)

 Progress management Issue management

 Version management
 Source change management
 Bug management* Enhanced highly difficult project management.
Logical and scientific response to shortages/deficiencies in detailed design specifications andoperation manuals, as well as to absence of experts in existing specifications.
Application of source code/interface analysis methods.
- 24 -

Trends of
documents
Total File sizeImprovement of Subsidiaries’ earnings

Services for
mid-sized
companies
and SMEs

OverseasbusinessesNewbusinesses- 25 -

Acceleration of New Services Expansion

Global Services Rollout
System Maintenance Services

Global services
rollout
Support for
operation andmaintenance

Smart systemservices

Component
development

ERP introduction

Cloud services

Smart System Services
Application Cloud Services

Support forplanning andevaluation
Grand design
Plan and design

Copyright ©2013 by Future Architect, Inc. Japan

System Integration Services
Package Integration Services- 26 -

Application & IT Consulting
Business Innovation Consulting

FY2013 Forecast
FY2012(Millions of yen)

FY2013Year-onyearchangeResults forthe first half

Results forthe full
fiscal year

Forecast for
the first half

Forecast for
the full
fiscal year

11,12623,353

12,25025,700+10.0%+65.4%Net sales

Operating income
Operating income
margin

724

1,935

1,340

3,200

6.5%

8.3%

10.9%

12.5%

Ordinary income

804

2,057

1,365

3,250

Ordinary income margin

7.2%

8.8%

11.1%

12.6%

Net income

463

1,167

750

1,800

Net income margin

4.2%

5.0%

6.1%

7.0%

Copyright ©2013 by Future Architect, Inc. Japan- 27 -+57.9%+54.1%

Dividends

FY2011(Actual amount paid)

FY2012(Planned)

FY2013(Planned)

Per share: 1,500yen
Consolidated payout
ratio: 39.9%
Non-consolidated
payout ratio: 44.2%

Per share: 1,500yen
Consolidated payout
ratio: 58.0%
Non-consolidated
payout ratio: 65.3%

Per share: 1,500yen
Consolidated payout
ratio: 37.5%
Non-consolidated
payout ratio: 38.8%

Copyright ©2013 by Future Architect, Inc. Japan- 28 -

3. Outlook and Direction in the Future(Yasufumi Kanemaru, Chairman)

Copyright ©2013 by Future Architect, Inc. JapanFuture Core Business• Achieving real-time management
Real-time framework
Future Components• Legacy system: Dissolutive expertise and its conversion into
service menu

• SKYBANK: Proactive investment in highly-expertised businesscloud such as a financial cloud

Copyright ©2013 by Future Architect, Inc. Japan- 30 -

High Added Value
Company A
I

N

H

I

N

F

Company B

Despite enormous systems with steps of more than 10 million linesof COBOL code, the existing vendors have not shouldered overalldesign and development.
The Company is becoming a rare entity, because of its capabilityof trade executions of 10 to 100 millions or more per day, as well
as design and development of large-scale databases.

Copyright ©2013 by Future Architect, Inc. Japan- 31 -

Future Direction
1960 From IBM360

50 years

1981 From 16-bit PC

30 years

1993 From the Internet (Mozaic)

20 years2007 From the first generation of iPhone

5 years

Dramatic changes are picking up speed.

Copyright ©2013 by Future Architect, Inc. Japan- 32 -

Future Direction
There will be further changes in the coming five years.
Horizontal integration  Vertical integration  Stereoscopic integration
Everything, including distribution, financial, manufacturing, medical,
nursing care, agriculture, corporations, communities and individuals,
will be connected.

Big chance of a probability that all players will be replaced

Copyright ©2013 by Future Architect, Inc. Japan- 33 -

Future Direction• All types of industries and business categories will follow
Amazon-type business model. (Big impact)• Management and IT will come to be more indivisible relations.
• While increasing momentum of re-examining uncompetitive
information system subsidiaries, we see growing needs toreestablish strategic IT partnerships.
• Requirements for strategic partnerships are Silicon Valleylevels of technical and execution capabilities.

Copyright ©2013 by Future Architect, Inc. Japan- 34 -

Key Points• Raise global value of consultant.
• Drastic revision of compensation system.
• Need to create unique services that generate various
business opportunities.
• Proactive M&As (including global bases)• Targeting for growth of 10% or more.

Copyright ©2013 by Future Architect, Inc. Japan- 35 -

Reference

Copyright ©2013 by Future Architect, Inc. JapanFY2011/FY2012 Non-consolidated Results(Millions of yen)

Net sales
IT Consulting
HW procurement
Package & Service

Operating income
Operating income
marginOrdinary income
Ordinary income
marginNet income
Net income margin
Copyright ©2013 by Future Architect, Inc. Japan

FY2011 Results

FY2012 Results

Year-on-yearchange14,63014,017(4.2%)

14,085350
19413,501516-(4.1%)+47.3%
-%

2,745

2,011

(26.7%)

18.8%

14.4%

(4.4pt)

2,803

2,130

(24.0%)

19.2%

15.2%

(4.0pt)

1,547

1,036

(33.0%)

10.6%

7.4%

(3.2pt)- 37 -

FY2013 Forecast Non-consolidated(Millions of yen)

FY2012 Results

FY2013 Forecast

Year-on-yearchangeNet sales

14,01715,800+12.7%

Operating income

2,011

3,000

14.4%

19.0%

+49.1%

2,130

3,050

15.2%

19.3%

1,036

1,740

7.4%

11.0%

Operating income
marginOrdinary income
Ordinary income
marginNet income
Net income margin

Copyright ©2013 by Future Architect, Inc. Japan- 38 -+43.2%+67.9%

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 materials, the figures in the summary report of operating results, etc. described in units of thousand yen, are stated in unitsof million yen. Hence, disparity may be found in some of totals and differences. For detailed figures, please refer to the summary
report of operating results.
Copyright ©2013 by Future Architect, Inc. Japan- 39 -