Consolidated Summary Report of Operating Results for the Third Quarter of Fiscal 2022
(Year Ending December 31, 2022) [Japan GAAP]
October 26, 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:

November 11, 2022

Scheduled date for distributing dividend payments:-

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

TEL: 03-5740-5724

No

No(Amounts rounded off to million yen)

1.

Consolidated Results for the Third Quarter of Fiscal 2022 (January 1, 2022 to September 30, 2022)(1)

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

Net sales

3Q Fiscal 2022
3Q Fiscal 2021
(Note)

Comprehensive income

Profit attributable to owners ofparentOperating income

Million yen%

Million yen%

Million yen%

39,614

10.7

9,361

43.0

7,195

54.7

35,789

10.4

6,544

66.3

4,651

64.2

3Q Fiscal 2022: 4,252 million yen [(31.6)%]

3Q Fiscal 2021: 6,212 million yen [(32.2)%]

Profit per shareYen

3Q Fiscal 2022

81.26

3Q Fiscal 2021

52.56

(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 third 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

3Q Fiscal 2022
Fiscal 2021
(Reference) Shareholders’ equity(Notes)1.

2.

Shareholders’ equity
ratio

Net assets

Net assets per share

Million yen

Million yen%

Yen

54,84443,421

79.2

490.31

54,48341,80176.7

472.193Q Fiscal 2022: 43,421 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 third 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)3.

1.
2.

Revisions to the most recently announced dividend forecast: No
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.

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: No

*

Notes

(1)

Changes in significant subsidiaries during the first nine months of the current fiscal year (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 “(3) Notes to quarterly consolidated financial statements (Changes in accounting policies)” in “2. Quarterly Consolidated
Financial Statements and Major Notes” on page 8 of the appendix.

Number of outstanding shares (common stock)1)

Total outstanding shares as of the endof the period (including treasury
shares)3Q Fiscal 2022

95,328,000 shares Fiscal 2021

95,328,000 shares

2)

Total treasury shares as of the end of
the period

3Q Fiscal 2022

6,770,105 shares Fiscal 2021

6,801,478 shares

3)

Average number of outstanding shares
during the period under review

3Q Fiscal 2022

88,542,082 shares 3Q Fiscal 2021

88,503,999 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 nine 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 Third Quarter under Review .......................................................... 2
Explanation of Operating Results .................................................................................................................................................... 2

2.

Quarterly Consolidated Financial Statements and Major Notes.................................................................................................... 4(1) Quarterly consolidated balance sheets .................................................................................................................................... 4(2) Consolidated quarterly statements of income and comprehensive income ............................................................................. 6(First nine-month period) ........................................................................................................................................................ 6(3) Notes to quarterly consolidated financial statements .............................................................................................................. 8(Notes on premise of a going concern) ................................................................................................................................... 8(Notes on any significant change in shareholders’ equity) ..................................................................................................... 8(Changes in accounting policies) ............................................................................................................................................ 8(Segment information) ............................................................................................................................................................ 93.

Supplementary Information ........................................................................................................................................................ 10
Orders received .............................................................................................................................................................................. 10

- 1 -

1.

Qualitative Information Regarding Financial Results for the Third Quarter under Review
Explanation of Operating Results
Looking at the economic environment during the first nine 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. Companies are implementing
teleworking as part of their workplace reform efforts, revamping their overall supply chains, and accelerating
the use of IT in areas related to ESG and the SDGs, and these things boost IT investments in all sectors andfields. In terms of individual 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 strategic projects from customers in a wide range ofindustries and made steady progress with large-scale projects that would contribute to medium-term growth.
As a result, consolidated net sales for the first nine months totaled 39,614 million yen (up 10.7% year onyear), operating income was 9,361 million yen (up 43.0% year on year), and profit attributable to owners ofparent came to 7,195 million yen (up 54.7% 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) started to construct aloan assistance system for financial institutions and a system in connection with the renovation of asales and logistics system for food wholesalers. The company also worked on various projects as it
continued to receive a steady stream of orders from a wide variety of customers. These included thedevelopment 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 for the apparel industry, and therevamping of customers’ IT infrastructures. In addition to that, the company made steady progresswith projects that would contribute to medium-term growth, including a project introducing nextgeneration banking systems to regional financial institutions, and the provision of DX assistance tovarious companies in the logistics and other industries. This, as well as its ongoing efforts to ensure
quality control, resulted in a year-on-year increase in net sales and operating 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 in SI projects, net sales andoperating income fell year on year.
dit Co., Ltd.’s net sales increased but operating income decreased year on year due to an increase inoutsourcing expenses and recruitment expenses to expand business, although the company received
solid orders for vulnerability assessment, incident response, an EDR* service and other cyber securityrelated services.
As a result, net sales of the segment rose to 33,835 million yen (up 17.4% year on year) and operating
income grew substantially to 9,938 million yen (up 59.6% year on year).
*2)

Endpoint Detection and Response (EDR): An endpoint security solution that combines
continuous monitoring and response capabilities

Business Innovation Business
YOCABITO CO., LTD. started a 365-day delivery service enabled by the improved order processing
efficiency of e-commerce malls that came through renovating its mission-critical system. This
contributed to an increase in orders, but both net sales and operating income declined year on year ascompetition of the outdoor-related market continues intensifying, and the company is affected by an- 2 -increase in costs due to the rapid depreciation of the yen, among other reasons.
Tokyo Calendar Inc. has been showing a sign of recovery year on year amid a steady stream of revenue
from its online services such as Tokyo Calendar Date, but both net sales and operating income declined
year on year due to a decrease in advertising revenue.
CodeCamp, Inc. enjoyed an uptick in orders from corporate customers and the growth of
CodeCampKIDS for kids, but orders from individual customers fell as more competitors entered themarket. The company also strengthened its sales force for next-period growth and made active
investment for advertisements to enhance recognition, resulting in a decrease in net sales and operating
income year on year.
LaiBlitz, Inc. introduced FastBiz, a packaged membership management and e-commerce service, toanother sports team, and launched a metaverse platform “MetaStation,” leading to a year-on-yearincrease in both net sales and operating income.
As a result, the segment saw both net sales and operating income drop year on year, with net sales
totaling 5,909 million yen (down 16.4% year on year) and an operating loss standing at 307 million yen(down from an operating income of 322 million yen for the same period last year).
(Note) Segment results mentioned above are before adjustment for intersegmental sales and transfers.

- 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 -Third quarter of the current
consolidated fiscal year
(September 30, 2022)

20,5307,220

24,304
-

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

7,496
1,000
1,377
24
1,269
(3)
35,4691,685(1,003)682
0
2,969(2,497)
471
1,155

1,762
(1,082)680
0
3,037(2,624)
413
1,095

10
1,915
208
4
2,138

2
2,765
52
5
2,825

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

13,827
1,177
104
349
(4)
15,454
19,37554,844(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 -Third quarter of the current
consolidated fiscal year
(September 30, 2022)

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

1,454
1,001
1,795
1,305
55
2,669
8,280

350
4,278
147
4,775
12,682

356
2,613
172
3,142
11,4234,000
29,299(2,221)
31,0784,000
3733,814(2,211)35,64010,7111
9
10,72341,801
54,483

7,749
5
25
7,780
43,421
54,844

(2) Consolidated quarterly statements of income and comprehensive income(First nine-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
Dividend income
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Loss on retirement of non-current assets
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 nine months of theFirst nine months of the current
previous consolidated fiscal
consolidated fiscal year
year
(from January 1, 2022 to(from January 1, 2021 toSeptember 30, 2022)
September 30, 2021)
35,78939,614
19,205
19,702
16,584
19,912

- 6 -

427
4,181
496
436
258
246
3,992
10,039
6,544

425
4,466
531
626
320
577
3,603
10,551
9,361

107

187

14
26
148

42
10
240

0
0
6,693

3
1
4
9,596

6
0
7

732
732

16
16
6,684
2,005
4,678

10
10
10,319
3,124
7,195

4,651
27

7,195
-

(in millions of yen)First nine months of theprevious consolidated fiscal
year(from January 1, 2021 toSeptember 30, 2021)
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 -First nine months of the current
consolidated fiscal year
(from January 1, 2022 toSeptember 30, 2022)

1,529
7
0

(2,962)
3
15

(3)
1,533
6,212

0
(2,942)
4,252

6,185

4,252

27

-

(3) 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 ofthe current fiscal year, and it now recognizes revenue at the time the control of promised goods orservices is transferred to the customer in the amount expected to be received upon exchange of said
goods or services.
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 ninemonths of the current fiscal year respectively decreased by 1,626 million yen, 745 million yen, and 711
million yen. Operating income, ordinary income, and profit before income taxes also decreased by 168
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. In accordance with the transitional treatmentprescribed in paragraph 89-2 of the Accounting Standard for Revenue Recognition, no reclassification
has been made to the consolidated financial statements for the previous fiscal year and the first ninemonths of the previous 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
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.
- 8 -(Segment information)
Segment information
I

First nine months of the previous consolidated fiscal year (from January 1, 2021 to September 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(2) Intersegment sales
or transfer
Total
Segment profit(Note)

1.
2.
3.

II

28,7707,010

35,780935,789－35,789

57

56

113

189

302

(302)

－

28,827

7,067

35,894

198

36,092(302)

35,789

6,229

322

6,551

41

6,593

(48)

6,544

“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 nine months of the current consolidated fiscal year (from January 1, 2022 to September 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
consolidated
Adjustments
financial(Note 2)statements(Note 3)

IT Consulting& ServiceBusiness

BusinessInnovation
Business

33,736

5,856

39,59321

39,614－39,614

98

52

151

284

435

(435)

－

33,835

5,909

39,744305

40,050(435)

39,614

9,938

(307)

9,631

(29)

9,601

(240)

9,361

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.

- 9 -

3.

Supplementary Information
Orders received

Category

First nine months of the previous
consolidated fiscal year
(from January 1, 2021 to September 30,
2021)(in millions of yen)First nine months of the current
consolidated fiscal year
(from January 1, 2022 to September 30,
2022)

Orders received

Orders received

Order backlog

Order backlog

IT Consulting & Service Business

33,446

14,19237,90515,805Business Innovation Business

1,620

329

1,729

352

35,067

14,522

39,635

16,157

Total

Category

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

IT Consulting & Service BusinessBusiness Innovation Business
Total

Order backlog

Orders received

Order backlog

14,094

15,957

11,47015,805

495

376

535

352

14,58916,33412,006

16,157- 10 -