Consolidated Summary Report of Operating Results for the Second Quarter of Fiscal 2022
(Year Ending December 31, 2022) [Japan GAAP]
July 28, 2022
Shares listed on: Prime Market of Tokyo Stock Exchange

Company name:

Future Corporation

Securities code:

4722

Representative:

Yasufumi Kanemaru, Chairman and President

Contact:

Yasukazu Matsushita, Head of Financial & Accounting GroupURL: https://www.future.co.jp

Scheduled date for filing the quarterly report:

August 12, 2022

Scheduled date for distributing dividend payments:

September 16, 2022

Creation of supplemental material on quarterly financial results:
Holding of financial results briefing:

TEL: 03-5740-5724

No

Yes (For institutional investors and analysts)(Amounts rounded off to million yen)

1.

Consolidated Results for the Second Quarter of Fiscal 2022 (January 1, 2022 to June 30, 2022)(1)

Consolidated operating results (cumulative)(Percentage figures indicate year-on-year changes.)

Net sales

Profit attributable to owners ofparentOperating income

Million yen%

Million yen%

Million yen%

2Q Fiscal 2022

25,940

12.2

6,214

65.9

4,517

67.5

2Q Fiscal 2021

23,117

4.4

3,746

15.7

2,696

13.9

(Note)

Comprehensive income

2Q Fiscal 2022: 2,869 million yen [(8.8)%]

2Q Fiscal 2021: 3,146 million yen [(31.9)%]

Profit per shareYen

2Q Fiscal 2022

51.03

2Q Fiscal 2021

30.47

(Notes)

1.
2.

(2)

The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant
ASBJ regulations from the beginning of the first quarter of the current fiscal year, and each figure for the second quarter of the fiscal year
ending December 31, 2022 is the figure after applying the accounting standard and relevant ASBJ regulations.
The Company conducted a two-for-one stock split of its common stock on January 1, 2022. Profit per share is computed based on theassumption that the stock split was conducted at the beginning of the previous fiscal year.

Consolidated financial position
Total assets

2Q Fiscal 2022
Fiscal 2021
(Reference) Shareholders’ equity(Notes)1.

2.

Shareholders’ equity
ratio

Net assets

Net assets per share

Million yen

Million yen%

Yen

55,01543,54479.1

491.7054,48341,80176.7

472.192Q Fiscal 2022: 43,544 million yen

Fiscal 2021: 41,801 million yen

The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant
ASBJ regulations from the beginning of the first quarter of the current fiscal year, and each figure for the second quarter of the fiscal year
ending December 31, 2022 is the figure after applying the accounting standard and relevant ASBJ regulations.
The Company conducted a two-for-one stock split of its common stock on January 1, 2022. Net assets per share is computed based on theassumption that the stock split was conducted at the beginning of the previous fiscal year.

2.

Cash Dividends
Dividends per share
End of the firstquarter dividend

End of the second
quarter dividend

End of the third
quarter dividend

Period-end
dividend

Total

Yen

Yen

Yen

Yen

Yen

Fiscal 2021

-

23.00

-

28.00

51.00

Fiscal 2022

-

17.00
-

17.00

34.00

Fiscal 2022 (forecast)(Notes)1.
2.

Revisions to the most recently announced dividend forecast: Yes
The Company conducted a two-for-one stock split of its common stock on January 1, 2022. The dividend amounts for fiscal 2021 are theactual dividend amounts before the stock split was conducted.

3. Projected Consolidated Results for Fiscal 2022 (January 1, 2022 to December 31, 2022)(Percentage figures indicate year-on-year changes.)
Net sales

Full-year(Note)

Profit attributable toowners of parent

Operating income

Profit per
share

Million yen%

Million yen%

Million yen%

Yen

55,50014.0

12,000

33.3

8,500

33.4

96.01

Revisions to the most recently announced earnings forecast: Yes

*

Notes

(1)

Changes in significant subsidiaries during the quarter under review (changes in specified subsidiaries accompanied by changes
in the scope of consolidation): None

(2)

Application of accounting treatment particular to the preparation of quarterly consolidated financial statements: None

(3)

Changes in accounting policies or estimates and retrospective restatements
1)
Changes in accounting policies in accordance with revisions of accounting standards: Yes
2)
Changes in accounting policies other than item 1) above: None
3)
Changes in accounting estimates: None4)
Retrospective restatements: None

(Note)(4)

For more information, see “(4) Notes to quarterly consolidated financial statements (Changes in accounting policies)” in “2. Quarterly Consolidated
Financial Statements and Major Notes” on page 9 of the appendix.

Number of outstanding shares (common stock)1)

Total outstanding shares as of the endof the period (including treasury
shares)2Q Fiscal 2022

95,328,000 shares Fiscal 2021

95,328,000 shares

2)

Total treasury shares as of the end of
the period

2Q Fiscal 2022

6,769,080 shares Fiscal 2021

6,801,478 shares

3)

Average number of outstanding shares
during the period under review

2Q Fiscal 2022

88,534,040 shares 2Q Fiscal 2021

88,492,482 shares(Note) The Company conducted a two-for-one stock split of its common stock on January 1, 2022. “Total outstanding shares as of the end of theperiod,” “Total treasury shares as of the end of the period,” and “Average number of outstanding shares during the period under review” arecomputed on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

*

This summary of quarterly financial results is outside the scope of quarterly reviews by a certified public accountant or an audit
corporation.

* Points to note about the proper use of projections, and other noteworthy events
Any forward-looking statement, including earnings forecasts, contained in this document is based on information currently held by theCompany and assumptions the Company considers to be reasonable, and the Company does not promise to achieve any of them. Actual
results may differ significantly from forecasts due to various uncertain factors.
(Change in the way yen amounts are reported)
The figures for accounts and other items presented in the Company’s quarterly consolidated financial statements were previously statedin thousands of yen, but effective from the first quarter of the current fiscal year and the first three months of the current fiscal year theseamounts are now stated in millions of yen. The figures for the previous fiscal year and the first six months of the previous fiscal year are
also presented in millions of yen for ease of comparison.

Contents
1.

Qualitative Information Regarding Financial Results for the Second Quarter under Review ....................................................... 2(1) Explanation of operating results .............................................................................................................................................. 2(2) Explanation of consolidated earnings forecast and other forward-looking information .......................................................... 3

2.

Quarterly Consolidated Financial Statements and Major Notes.................................................................................................... 4(1) Quarterly consolidated balance sheets..................................................................................................................................... 4(2) Quarterly consolidated statements of income and comprehensive income ............................................................................. 6(First six-month period) .......................................................................................................................................................... 6(3) Quarterly consolidated statements of cash flows .................................................................................................................... 8(4) Notes to quarterly consolidated financial statements .............................................................................................................. 9(Notes on premise of a going concern) ................................................................................................................................... 9(Notes on any significant change in shareholders’ equity) ..................................................................................................... 9(Changes in accounting policies) ............................................................................................................................................ 9(Segment information) .......................................................................................................................................................... 10(Business combinations) ....................................................................................................................................................... 113.

Supplementary Information ........................................................................................................................................................ 12
Orders received ........................................................................................................................................................................... 12

- 1 -

1.

Qualitative Information Regarding Financial Results for the Second Quarter under Review(1) Explanation of operating results
Looking at the economic environment during the first six months of the current fiscal year, we saw
companies continue to actively harness the power of IT to change their operations, such as promoting digitaltransformation (DX), implementing business reforms, and developing new digital services, despite global
uncertainty, ongoing inflation, and the rapid depreciation of the yen. As companies implement teleworking
as part of their workplace reform efforts and revamp their overall supply chains, they are racing toward
digitalization. More and more companies across all industries and fields are moving toward DX. In terms ofindividual lifestyles, the use of IT-driven services, such as shopping at e-commerce sites, enjoying
entertainment and sports on video and online, and accessing education and self-development services online,
have spread widely.
Working against this backdrop, we won contracts for various types of projects from customers in a wide
range of industries and made steady progress with projects that would contribute to medium-term growth.
As a result, consolidated net sales for the first six months totaled 25,940 million yen (up 12.2% year on year),
operating income was 6,214 million yen (up 65.9% year on year), and profit attributable to owners of parent
came to 4,517 million yen (up 67.5% year on year).
Details of the performance (net sales and operating income) of each segment are as follows.
1)

IT Consulting & Service Business
Future Architect, Inc. (including the technology division of Future Corporation) provided a cloud-based
system designed to optimize e-commerce operations of e-commerce and mail order companies andimplemented the system at a Future Group company, YOCABITO CO., LTD. The company also
worked on various projects as it continued to receive a steady stream of orders from a wide variety ofcustomers. These included the development of a fully automated system using AI and IoT technology
in the energy industry as well as a mission-critical system designed to accelerate digital commerce forthe apparel industry, and the revamping of customers’ IT infrastructures. In addition to that, thecompany made steady progress with projects that would contribute to medium-term growth, including
a project introducing next-generation banking systems to regional financial institutions and projects
aimed at renovating mission-critical systems for staffing service providers and wholesalers. This, aswell as its ongoing efforts to ensure quality control, led to a year-on-year increase in net sales andoperating income.
Future Inspace, Inc. steadily acquired contracts for system infrastructure renewal and cloud migration
projects from existing customers, in addition to providing regular maintenance and operation services.
As a result, net sales and operating income increased year on year.
Future One, Inc. saw a year-on-year decline in net sales due to the adoption of the revenue recognition
standard. But its operating income increased year on year as a result of steadily working on a largescale project that had been ongoing since last year, ensuring quality, and leveraging the strength of its
original InfiniOne software package to boost orders through industry-specific sales strategies.
YDC Corporation endeavored to expand its customer base in the logistics field by providing uniqueknow-how to the Group’s customers. However, due to a decrease and delay in SI projects, net sales andoperating income fell year on year.
Both net sales and operating income of dit Co., Ltd. decreased year on year due to lower sales of
network equipment although the company received solid orders for vulnerability assessment, computer
forensics, incident response, and other cyber security-related services.
As a result, net sales of the segment rose to 22,192 million yen (up 19.9% year on year) and operating
income grew substantially to 6,617 million yen (up 86.9% year on year).

2)

Business Innovation Business
YOCABITO CO., LTD. was hit hard by the intensifying competition for outdoor-related products andthe impact of the yen’s rapid depreciation on the cost of sales. However, its sporting goods businessremained on a recovery track as it saw goods whose shipments had been delayed being gradually
delivered and school sports activities, sporting events, etc. resume. As a result, both net sales andoperating income declined year on year.
CodeCamp, Inc. enjoyed an uptick in orders from corporate customers and the growth of
CodeCampKIDS for kids, but orders from individual customers declined as more competitors entered- 2 -the market. The company also made active investment for curriculum development and advertisement
to enhance recognition, resulting in a decrease in net sales and operating income year on year.
Tokyo Calendar Inc. saw a steady stream of revenue from its online services such as Tokyo Calendar
Date and sales of its monthly magazines, but the company recorded a decrease in advertising revenue
and incurred expenses for building a next-generation gourmet platform, resulting in a year-on-yearincrease in net sales but a year-on-year decrease in operating income.
LaiBlitz, Inc. introduced FastBiz, a packaged membership management and e-commerce service, to thesoccer industry and launched BARREL ZONE, a sports crowdfunding service, leading to a year-onyear increase in both net sales and operating income.
As a result, the segment saw both net sales and operating income decrease year on year, with net sales
totaling 3,849 million yen (down 17.6% year on year) and an operating loss standing at 206 million yen(down from an operating income of 224 million yen for the same period last year).
(Note) Segment results mentioned above are before adjustment for intersegmental sales and transfers.
(2) Explanation of consolidated earnings forecast and other forward-looking information
In light of recent performance trends and other factors, the Board of Directors, at its meeting held on July28, 2022, decided to revise the earnings forecast for the fiscal year ending December 31, 2022 (January 1,
2022 to December 31, 2022), which was announced on February 8, 2022 along with the financial results forthe fiscal year ended December 31, 2021. For more information, see “Notice Regarding Revision to FullYear Earnings Forecast, Distribution of Surplus, and Revision of Dividend Forecast” released on July 28,
2022.

- 3 -

2.

Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheets(in millions of yen)Previous consolidated fiscal
year(December 31, 2021)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Notes and accounts receivable – trade, andcontract assets
Securities
Merchandise and finished goods
Work in process
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Customer-related assets
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 4 -Second quarter of the current
consolidated fiscal year
(June 30, 2022)

20,5307,220

22,854
-

-

6,988

1,900
1,230
9
1,224
(3)
32,112

1,500
1,354
22
1,221
(3)
33,9391,685(1,003)682
0
2,969(2,497)
471
1,155

1,758
(1,056)702
0
2,996(2,567)
428
1,132

10
1,915
208
4
2,138

5
2,496
104
5
2,610

17,697
1,175
19
261
(75)
19,07822,371
54,483

15,834
1,176
79
247
(5)
17,332
21,07555,015(in millions of yen)Previous consolidated fiscal
year(December 31, 2021)
Liabilities
Current liabilities
Accounts payable – trade
Accounts payable – other
Income taxes payable
Provision for bonuses
Provision for quality assurance
Other
Total current liabilities
Non-current liabilities
Asset retirement obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 5 -Second quarter of the current
consolidated fiscal year
(June 30, 2022)

913
1,491
2,215
243
34
3,007
7,906

1,147
1,736
1,774
264
40
2,501
7,463

350
4,278
147
4,775
12,682

358
3,491
156
4,006
11,4704,000
29,299(2,221)
31,0784,000
3732,642(2,210)34,46910,7111
9
10,72341,801
54,483

9,046
7
20
9,074
43,54455,015

(2) Quarterly consolidated statements of income and comprehensive income(First six-month period)(in millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Directors’ compensations
Salaries and bonuses
Training expenses
Research and development expenses
Depreciation
Recruiting expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of shares of subsidiaries and associates
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Total income taxes
Profit(Breakdown)
Profit attributable to owners of parent
Profit attributable to non-controlling interests

First six months of the previous
consolidated fiscal year
(from January 1, 2021
to June 30, 2021)
23,117
12,720
10,397First six months of the current
consolidated fiscal year
(from January 1, 2022
to June 30, 2022)
25,94012,85813,081

283
2,797
332
254
154
156
2,673
6,651
3,746

282
2,926
353
364
209
382
2,346
6,866
6,214

0
107

1
187

15

30

0
19
142

5
225

0
0
3,888

0
6
0
7
6,432

6
0
7

47
47

16
16
3,879
1,156
2,723

10
10
6,469
1,951
4,517

2,696
27

4,517
-

- 6 -

(in millions of yen)First six months of the previous
consolidated fiscal year
(from January 1, 2021
to June 30, 2021)

First six months of the current
consolidated fiscal year
(from January 1, 2022
to June 30, 2022)

414
10
0

(1,665)
5
10

(2)

0

422
3,146

(1,648)
2,869

3,119

2,869

27

-

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 7 -(3) Quarterly consolidated statements of cash flows(in millions of yen)First six months of the previous
consolidated fiscal year
(from January 1, 2021
to June 30, 2021)

First six months of the current
consolidated fiscal year
(from January 1, 2022
to June 30, 2022)

3,879
463
(1)
(20)
(9)
10
(108)
0

6,469
556
(70)
20
6
(188)
0

(15)

(30)

(6)

-

(0)
16

(47)
10

1,369

-

-

242

94
48
(261)
5,459
109
(0)
(729)
4,839

(137)
234
(309)
6,754
188
(0)
(2,403)
4,540

(102)
100
(106)
(332)

(900)
1,300
(52)
(825)

13

-

3
(5)
217
16
1
(194)

(814)
104
200
(11)
1
1
(997)

(3)
(68)

(78)

(450)

-

(884)
(1,406)(1,173)(1,252)

3

34

3,242
16,01019,2532,324
21,43023,754

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for quality assurance
Increase (decrease) in provision for loss on projects
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using
equity method
Loss (gain) on sale of shares of subsidiaries andassociates
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable –trade
Decrease (increase) in notes and accounts receivable –trade, and contract assets
Decrease (increase) in inventories
Increase (decrease) in accounts payable – trade
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of shares of subsidiaries andassociates
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment securities
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Proceeds from sale of golf membership
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of long-term loans payable
Repayments of finance lease obligations
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Cash dividends paid
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 and cash equivalents at the end of the period- 8 -(4) Notes to quarterly consolidated financial statements(Notes on premise of a going concern)
Not applicable.
(Notes on any significant change in shareholders’ equity)
Not applicable.
(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Group has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) and relevant ASBJ regulations effective from the beginning of the first quarter of thecurrent fiscal year, and it now recognizes revenue at the time the control of promised goods or services
is transferred to the customer in the amount expected to be received upon exchange of said goods orservices.
Accordingly, the Group conducted the principal-versus-agent assessment and found that it met thedefinition of the agent in some of the IT Consulting & Service Business segment’s maintenance andoperation services. Hence, the Group now recognizes revenue as the net amount.
For sales of the Group’s software licenses as well as server equipment and other products that comewith maintenance services, the Group now recognizes revenue from contracts in which it does not havea performance obligation to be fulfilled over time, such as maintenance services, at the time of sales,
and recognizes revenue from contracts that come with maintenance services over the contract term
during which the Group has a performance obligation, separately from contracts for sale of goods.
In addition, the Group previously recognized coupons it issued and points paid to other companies in
its e-commerce and mail-order business as selling, general and administrative expenses, but now
recognizes revenue by deducting these items from net sales. The Group also previously deductedshipping fees paid by customers from selling, general and administrative expenses, but now recognizes
them as revenue since the shipping service is included in the performance obligation to provide products
and reports shipping fees paid for the service as cost of sales instead of selling, general andadministrative expenses as it previously did.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations issubject to the transitional treatment provided for in the proviso to paragraph 84 of the AccountingStandard for Revenue Recognition. The cumulative effect of the retrospective application, assuming
the new accounting policy had been applied to periods prior to the start of the first quarter of the current
fiscal year, was added to or subtracted from the opening balance of retained earnings of the first quarterof the current fiscal year, and thus the new accounting policy was applied from such opening balance.
However, in accordance with the method provided for in paragraph 86 of the Accounting Standard for
Revenue Recognition, the new accounting policy was not applied retrospectively to contracts for whichalmost all revenue amounts were recognized using the previous treatment prior to the beginning of thefirst quarter of the current fiscal year.
As a result, net sales, cost of sales, and selling, general and administrative expenses for the first six
months of the current fiscal year respectively decreased by 1,042 million yen, 465 million yen, and 462
million yen. Operating income, ordinary income, and profit before income taxes also decreased by 114
million yen. The opening balance of retained earnings increased by 64 million yen.
Due to the application of the Accounting Standard for Revenue Recognition, etc., “notes and accounts
receivable – trade,” which were included in “current assets” in the consolidated balance sheet for theprevious fiscal year, are included in “notes and accounts receivable – trade, and contract assets”
effective from the first quarter of the current fiscal year. “Decrease (increase) in notes and accounts
receivable – trade” which was presented under “cash flows from operating activities” in the quarterly
consolidated statements of cash flows for the first six months of the previous fiscal year is included in“decrease (increase) in notes and accounts receivable – trade, and contract assets” effective from thefirst six months of the current fiscal year. In accordance with the transitional treatment prescribed inparagraph 89-2 of the Accounting Standard for Revenue Recognition, no reclassification has been madeto the consolidated financial statements for the previous fiscal year and the first six months of theprevious fiscal year to conform to the new presentation method.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Group has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, July 4, 2019) and relevant ASBJ regulations from the beginning of the first quarter of the current
fiscal year, and it has applied the new accounting policy provided for by the Accounting Standard for- 9 -Fair Value Measurement, etc. prospectively in accordance with the transitional measures provided forin paragraph 19 of the Accounting Standard for Fair Value Measurement, and paragraph 44-2 of the“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019). Thischange has no effect on the quarterly consolidated financial statements.
(Segment information)
Segment information
I

First six months of the previous consolidated fiscal year (from January 1, 2021 to June 30, 2021)
1. Information on the amounts of net sales, and profit or loss by reportable segment
Reportable segments
IT Consulting Business
Innovation& ServiceBusiness
Business

Other(Note 1)

Total

Total

(in millions of yen)Amount stated inquarterly
consolidated
Adjustments
financial(Note 2)statements(Note 3)

Net sales(1) Sales to outsideclients

18,474

4,637

23,111

5

23,117-

23,117

27

31

59

107

166

(166)

-

Total

18,501

4,669

23,171

112

23,284(166)

23,117

Segment profit

3,540

224

3,765

39

3,804

(57)

3,746

(2) Intersegment sales
or transfer(Note)

1.
2.
3.

II

“Other” is a segment for operations not included in reportable segments. The segment covers investment in, holdingof, and management of securities.
Adjustments to segment profit represent the amount of intersegment transactions eliminated, and income andexpenses of the holding company excluding the technology segment.
Segment profit is adjusted with operating income in quarterly consolidated financial statements.

First six months of the current consolidated fiscal year (from January 1, 2022 to June 30, 2022)
1. Information on the amounts of net sales, and profit or loss by reportable segment
Reportable segments
Other(Note 1)

Total

(in millions of yen)Amount stated inquarterly
Adjustments
consolidated
financial(Note 2)statements(Note 3)

IT Consulting& ServiceBusiness

BusinessInnovation
Business

22,113

3,815

25,92910

25,940-25,940

78

33

111

184

296

(296)

-

22,192

3,849

26,041

194

26,236(296)

25,940

6,617

(206)

6,411

(4)

6,406

(191)

6,214

Total

Net sales(1) Sales to outsideclients(2) Intersegment sales
or transfer
Total
Segment profit (loss)(Note)

1.
2.
3.

“Other” is a segment for operations not included in reportable segments. The segment covers investment in, holdingof, and management of securities.
Adjustments to segment profit (loss) represent the amount of intersegment transactions eliminated, and income andexpenses of the holding company excluding the technology segment.
Segment profit (loss) is adjusted with operating income in quarterly consolidated financial statements.

- 10 -

(Business combinations)
Common control transactions(Absorption-type merger between consolidated subsidiaries)
Effective June 30, 2022, Future Architect, Inc. and Micro CAD Co., Ltd., both of which are consolidated
subsidiaries of Future Corporation, merged, with Future Architect, Inc. being the surviving company.
1. Summary of transaction(1) Names and business operations of the merging parties
Surviving company’s name

Future Architect, Inc.

Business operations

IT consulting, system development, etc.

Absorbed company’s nameMicro CAD Co., Ltd.

Business operations

Sale of intellectual property management systems, etc.

(2) Date of business combination
June 30, 2022
(3) Legal form of business combination
Absorption-type merger with Future Architect, Inc. being the surviving company and Micro CAD
Co., Ltd. being the merged company(4) Company name after business combination
Future Architect, Inc.
(5) Additional information to the transaction summary
The purpose of this merger is to further enhance management efficiency and competitivenessthrough reorganization of the corporate group.
2. Summary of accounting process carried out
The transaction has been accounted for as a common control transaction in accordance with the
Accounting Standard for Business Combinations as well as the Guidance on Accounting Standard forBusiness Combinations and Accounting Standard for Business Divestitures.

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3.

Supplementary Information
Orders received

Category(in millions of yen)First six months of the previous
consolidated fiscal year
(from January 1, 2021 to June 30, 2021)

First six months of the current
consolidated fiscal year
(from January 1, 2022 to June 30, 2022)

Orders received

Orders received

Order backlog

Order backlog

IT Consulting & Service Business

20,612

11,65426,602

15,957

Business Innovation Business

1,122

453

1,193

376

21,734

12,10827,795

16,334

Total

Category

First quarter of the current consolidated
fiscal year
(from January 1, 2022 to March 31, 2022)
Orders received

IT Consulting & Service BusinessBusiness Innovation Business
Total

Order backlog

Second quarter of the current consolidated
fiscal year
(from April 1, 2022 to June 30, 2022)
Orders received

Order backlog

12,50813,311

14,094

15,957

697

439

495

376

13,206

13,75014,58916,334- 12 -