Consolidated Summary Report of Operating Resultsfor Fiscal 2019 (Year ended December 2019) [Japan GAAP]
February 5, 2020
Company name:
Future Corporation
Shares listed on: First Section of Tokyo Stock Exchange
Security code number:4722
URL: https://www.future.co.jp
Representative:
Yasufumi Kanemaru, Chairman and President
Contact:
Shinichi Iwata, Head of Financial & Accounting Group
Tel. 03-5740-5724
Scheduled date of annual general shareholders’ meeting:March 25, 2020
Scheduled date for filing the securities report:
March 26, 2020
Scheduled date for distribution of dividend payments:
March 26, 2020
Creation of supplemental material on financial results:
No
Holding of financial results briefing:
Yes (For institutional investors and analysts)(Amount rounded off to million yen)

1.
Consolidated Results for Fiscal 2019 (January 1, 2019 to December 31, 2019)(Percentage figures indicate year-on-year changes)(1) Consolidated operating results
Net sales
Million yen

Fiscal 2019
Fiscal 2018
(Note) Comprehensive income

Profit attributable to owners ofparentOperating income

Million yen%

45,389
12.9
6,523
12.0
4,557
40,218
10.9
5,824
30.6
4,094
Fiscal 2019: 3,844 million yen (-27.2%)
Fiscal 2018: 5,284 million yen (-32.8%)%

Million yen

11.3
9.7

Profit per share%

Return on equity

Operating income ratio

Yen%

Fiscal 2019
101.94
Fiscal 2018
91.60
(Reference) Share of profit (loss) of entities accounted for using equity method

%

15.6
15.7
Fiscal 2019: 36 million yen

14.4
14.5
Fiscal 2018: 67 million yen

Shareholders’ equity ratio

Net assets per share(2) Consolidated financial position
Total assets

Net assets

Million yen

Fiscal 2019
Fiscal 2018
(Reference) Shareholders’ equity

Million yen

39,03937,240Fiscal 2019: 30,296 million yen%

Yen30,29677.6
28,10875.2
Fiscal 2018: 28,008 million yen

677.50626.53(3) Consolidated cash flow position

Fiscal 2019
Fiscal 20182.

Net cash provided by(used in) operating
activities
Million yen
5,002
7,965

Net cash provided by(used in) investing
activities
Million yen(1,856)(1,199)Net cash provided by(used in) financing
activities
Million yen(2,118)(2,333)

Cash and cash equivalents
at the end of the period
Million yen
14,92913,908Dividends
End of the
firstquarter
dividend
Yen

Dividends per share (yen)End of the End of theYear-end
secondthird
quarterquarter
dividend
dividend
dividend
Yen

Yen

Yen

Total
Yen

Annualdividends(Total)Million yen

Dividend
payout ratio(consolidated)

Ratio ofdividends to
net assets(consolidated)%%

Fiscal 2018
15.00
17.00
32.00
1,430
34.9
5.5
–
–
Fiscal 2019
18.00
21.00
39.00
1,743
38.3
6.0
–
–
Fiscal 2020 (Forecast)
20.00
20.00
40.00
36.7
–
–
(Note) The year-end dividend of 21 yen for Fiscal 2019 comprises an ordinary dividend of 18 yen and a dividend of 3 yen to commemorate
the 30th anniversary of the Company’s foundation.

3.

Projected Consolidated Results for Fiscal 2020 (January 1, 2020 to December 31, 2020)
Net salesFirst six months(accumulated total)
Full year(Percentage figures indicate year-on-year changes)
Profit attributable toProfit per shareowners of parent

Operating income

Million yen%

Million yen%

Million yen%

Yen

23,02048,300

3.6
6.4

3,195
7,200

(4.2)
10.4

2,190
4,880

2.8
7.1

48.97
109.13* Notes(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries that involved
changes in the scope of consolidation): None
(2) Change in accounting policies or estimates and retrospective restatements
1)
Change in accounting policies in accordance with revision of accounting standards:
None
2)
Change in accounting policies other than item 1) above:None
3)
Change in accounting estimates:
None
4)
Retrospective restatements:
None(3) Number of outstanding shares (common stock)1)

Total outstanding shares as of the end of theperiod (including treasury shares)

Fiscal 201947,664,000 sharesFiscal 2018

47,664,000 shares

2)

Total treasury shares as of the end of the period

Fiscal 2019

2,946,587 sharesFiscal 2018

2,959,049 shares

3)

Average number of outstanding stocks during
the period under review

Fiscal 201944,710,831 sharesFiscal 2018

44,705,037 shares(Reference) Overview of non-consolidated results
Non-consolidated Results for Fiscal 2019 (January 1, 2019 to December 31, 2019)(1) Non-consolidated operating results
Net sales(Percentage figures indicate year-on-year changes)
Operating income
ProfitOperating revenue

Million yen%

Million yen%

Million yen%

Million yen

%

4,301
2,074

107.4
4,700.9

4,793
4,106

16.7
39.5

5,684
4,170

36.3
107.5

5,427
3,070

76.7
41.0

Fiscal 2019
Fiscal 2018

Profit per shareYen
121.3968.69

Fiscal 2019
Fiscal 2018

(2) Non-consolidated financial position
Total assets

Net assets

Million yen

Fiscal 2019
Fiscal 2018
(Reference)Shareholders’ equity**

29,74827,046
Fiscal 2019: 25,926 million yen

Shareholders’equity ratio

Million yen

25,92622,880Fiscal 2018: 22,880 million yen

Net assets per share
%

Yen

87.2
84.6

579.78511.82This financial results report is outside the scope of auditing by Certified Public Accountants or Audit firms.
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 as reasonable, and the Company does not promise to achieve any of them. Actual
results may differ significantly from forecasts due to various uncertain factors.

Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 2019

 Contents
1.

Overview of Operating Results and Other ......................................................................................................................... 2(1) Overview of operating results for fiscal 2019 ........................................................................................................... 2(2) Overview of financial position for fiscal 2019 ......................................................................................................... 3(3) Overview of cash flows for fiscal 2019 .................................................................................................................... 3(4) Future outlook .......................................................................................................................................................... 4(5) Dividend policy and dividends for the current and next year ................................................................................... 4

2.

The Future Group............................................................................................................................................................... 6

3.

Basic Approach to Selection of Accounting Standards ...................................................................................................... 6

4.

Consolidated Financial Statements and Major Notes ......................................................................................................... 7(1) Consolidated balance sheets ..................................................................................................................................... 7(2) Consolidated statements of income and comprehensive income .............................................................................. 9(3) Consolidated statements of changes in net assets ................................................................................................... 11(4) Consolidated statements of cash flows ................................................................................................................... 13(5) Notes to consolidated financial statements ............................................................................................................. 15(Notes on premise of a going concern) ............................................................................................................................ 15(Additional information) .................................................................................................................................................. 15(Segment information) ..................................................................................................................................................... 15(Per share data) ................................................................................................................................................................ 17(Significant subsequent events)........................................................................................................................................ 17

5.

Other ................................................................................................................................................................................ 18-1-

Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 20191.

Overview of Operating Results and Other(1) Overview of operating results for fiscal 2019
(Overview of fiscal year under review)
The Group’s consolidated earnings results for fiscal 2019 (from January 1, 2019 to December 31, 2019)are as follows.
Net sales¥45,389 million (up 12.9% year on year)
Operating income¥6,523 million (up 12.0% year on year)
Profit attributable to owners of parent¥4,557 million (up 11.3% year on year)
During the fiscal year under review, the IT Consulting & Service Business increased its net sales andoperating income, while the Business Innovation Business also increased its sales, posting operating
income for the first time. As a result, the Future Group recorded its highest-ever net sales, operating
income and profit attributable to owners of parent on a consolidated basis.
Details of the performance of each segment are as follows.
1. IT Consulting & Service Business
Future Architect, Inc. and the technology division of Future Corporation increased sales thanks tostrategic IT investments made using big data and AI in the apparel, distribution and service industries,
and also launched projects for new infrastructure for customers such as real estate and railway companies.
In addition, an increasing number of regional banks have introduced “FutureBANK,” a business-support
and lending-support system. As a result, net sales increased year on year, but operating income decreased
due to the effects of some unprofitable projects.
Future Inspace, Inc. increased both its net sales and operating income year on year as maintenance andoperation service deals for projects completed by Future Architect, Inc. and original development deals
increased.
YDC Corporation’s net sales and operating income decreased due to a reactionary fall from last year
when it made a large deal involving YDC Sonar, a software program for analyzing product quality
information.
Net sales and operating income of FutureOne, Inc. rose year on year mainly owing to increased sales ofInfiniOne, its sales management software package, to relatively larger medium-sized companies anddevelopment deals related to the reduced consumption tax rate system.
Micro CAD Co., Ltd. showed significant improvement in operating income, which was attributable to asolid increase in sales from its own intellectual property management software and system development
for the manufacturing industry, as well as improved profitability owing to its continuously strengthened
project management.
In addition, dit Co., Ltd., which became a subsidiary in September 2018, contributed to the Group’s
full-year performance.
As a result, the IT Consulting & Service Business showed an increase in both net sales and operating
income, posting net sales of ¥37,393 million (up 13.5% year on year), and operating income of ¥6,261
million (up 10.8% year on year).
2. Business Innovation BusinessNet sales of eSPORTS Co., Ltd. increased year on year owing to strong sales of private-brand outdoor
wagons, fitness equipment, and national-brand outdoor-related products. It also improved its grossmargin ratio by making strategic system investments and visualizing unit contribution margins, turning
operating results around despite the effects of increased costs such as sales promotion expenses andlogistics expenses.
Tokyo Calendar Inc. posted an operating loss in the first half as its advertising revenues underperformed
the target figures, but turned around to post an operating profit in the second half due to the recovery ofadvertising sales and the reduction of costs in and after July, reducing the operating loss on a full-yearbasis. Its sales increased year on year despite decreased advertising sales because sales from theprovision of expanded online services such as “Tokyo Calendar Date” surpassed the advertising sales.
CodeCamp, Inc. increased both its net sales and operating income year on year due to steadily increased
monthly sales for its online programming course targeting individuals.
LaiBlitz, Inc. showed a year-on-year increase in both its net sales and operating income as it developed asystem for strengthening a new professional baseball team, as well as fan club and e-commerce sites ofanother professional baseball team and an e-commerce site of eSPORTS Co., Ltd.
-2-

Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 2019As a result, the Business Innovation Business achieved operating income for the first time on a full-yearbasis, posting net sales of ¥8,088 million (up 9.9% year on year) and operating income of ¥26 million(against a loss of ¥146 million a year earlier).
(Note) Segment business results stated in the paragraphs above are before adjusting for internal sales andtransfers among segments.
(2)

Overview of financial position for fiscal 2019
Assets, liabilities and net assets
The following are the status of assets, liabilities and net assets as of the end of fiscal year underreview.
Assets¥39,039 million (up 4.8% year on year)
Liabilities¥8,742 million (down 4.3% year on year)
Net assets¥30,296 million (up 7.8% year on year)
The following is the analysis of financial position for the fiscal year under review.
1) Assets
Current assets were ¥24,725 million on a consolidated basis at the end of the fiscal year underreview, up ¥2,092 million from the preceding year, and non-current assets amounted to ¥14,314
million, down ¥294 million, with total assets standing at ¥39,039 million, up ¥1,798 million. The
main factors included increases in cash and deposits (up ¥945 million year on year), notes andaccounts receivable - trade (up ¥852 million year on year), and property, plant and equipment suchas buildings and structures (up ¥410 million year on year), despite a decrease in investment
securities (down ¥477 million year on year).
2) Liabilities
Current liabilities were ¥6,552 million at the end of the fiscal year under review, up ¥404 million
from the preceding year, and non-current liabilities were ¥2,190 million, down ¥793 million, whichbrought total liabilities to ¥8,742 million, down ¥389 million. The main factors included decreases
in long-term loans payable (including the current portion) (down ¥369 million year on year) anddeferred tax liabilities (down ¥597 million year on year), despite increases in accounts payable other (up ¥197 million year on year) and other current liabilities (up ¥308 million year on year).
3) Net assets
Net assets were ¥30,296 million at the end of the fiscal year under review, up ¥2,187 million fromthe preceding year. The main factors included an increase in retained earnings (up ¥2,992 million
year on year), despite a decrease in valuation difference on available-for-sale securities (down ¥839
million year on year).

(3) Overview of cash flows for fiscal 2019
The following is the analysis of the Group’s consolidated cash flows for the fiscal year under review.
1) Net cash provided by (used in) operating activities
Net cash from operating activities saw an inflow of ¥5,002 million (compared to an inflow of ¥7,965
million in the previous fiscal year), chiefly due to the posting of profit before income taxes of¥6,477 million and depreciation of ¥991 million, despite the income taxes paid amounting to ¥2,394
million.
2) Net cash provided by (used in) investing activities
Net cash from investing activities saw an outflow of ¥1,856 million (compared to an outflow of¥1,199 million in the previous fiscal year), chiefly due to the posting of an outflow caused by thepurchase of property, plant and equipment of ¥521 million, purchase of intangible assets of ¥467
million, and purchase of investment securities of ¥600 million.
3) Net cash provided by (used in) financing activities
Net cash from financing activities saw an outflow of ¥2,118 million (compared to an outflow of¥2,333 million in the previous fiscal year), mainly reflecting the outflow of ¥374 million for the
repayments of long-term loans payable and ¥1,567 million for the cash dividends paid.
4) Cash and cash equivalents at end of the period
Cash and cash equivalents outstanding at the end of the fiscal year under review were ¥14,929
million, with an increase of ¥1,021 million in cash and cash equivalents resulting from operating,investing and financing activities.

-3-

Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 2019

(4) Future outlook
The Group’s earnings forecast for the fiscal year ending December 2020 is as follows.
Net sales¥48,300 million (up 6.4% year on year)
Operating income¥7,200 million (up 10.4% year on year)
Profit attributable to owners of parent¥4,880 million (up 7.1% year on year)
Noteworthy events in each business segment for the following fiscal year are as follows.
1. IT Consulting & Service Business
The Future Group had implemented “Designing Management and IT” as its management policy until
recently, and carried out its business by aiming to strengthen customers’ abilities to handle changes andenhance their future value by incorporating the “ideal form” of business into real-time architecture.
However, the Group has now changed such policy to “Designing Management, IT and AI,” focusing on
the impact of AI on businesses and societies, to provide projects enabling customers to reform their
management and operations with the use of AI, IoT and other cutting-edge technologies for each project,rather than just to digitize them. Under this policy, Future Architect, Inc. and Future Inspace, Inc. aim tocarry out on-going projects successfully and acquire other projects from new customers. To this end, theGroup will focus more on providing essential personnel with education and training and strengthening its
quality control and project management. To provide value to a broader range of customers than everbefore, the Group will also expand new services by using its synergy.
YDC Corporation will strengthen its business foundation for providing manufacturing IT consulting andexpand its services (e.g., quality control system consulting using AI or other technologies and operational
reform consulting in the development and design fields). It will also actively create synergy by improving
development efficiency using the Group’s technologies and providing original solutions to the Group’s
customers.
FutureOne will use the Group’s network and expand its collaboration with external sales partners, aiming
to receive more orders for original software packages and strengthen its structure to enable it tocompletely fulfill orders already received.
2. Business Innovation BusinesseSPORTS has promoted operational reforms since last year, and will further promote these reforms (e.g.,reviewing packaging sizes to reduce distribution expenses, making its e-commerce website more
attractive to reduce sales promotion expenses, and setting appropriate sales prices by visualizing unit
contribution margins), aiming to increase sales and profit. Using the Group’s technologies, eSPORTS
will also streamline its operations including improving the efficiency of back office operations.
Tokyo Calendar will aim to develop a structure to provide contents and events that can satisfy the lives
and tastes of its magazine readers and website users by using the Group’s IT technologies while
expanding its magazine and website advertising sales so that it can build a business model not dependent
on adverting sales.
LaiBlitz has contributed to the strengthening of professional baseball teams (e.g., SoftBank Hawks won
the Japan Series), and continues to provide its system to amateur sports teams such as those in
independent baseball leagues, industrial baseball leagues, university baseball leagues, and high school
baseball leagues, expanding its business scope to other sports such as J. League (professional footballleagues) and softball leagues. In January 2020, LaiBlitz acquired TrexEdge, Inc., taking over their IoT
business in the primary sector and smart city IoT business.
While CodeCamp has increasingly received orders for programing courses for individuals every monththanks to improved name recognition, it will strive to meet personal needs through various measures (e.g.,collaboration with employment agencies to provide strengthened services to people wishing to changejobs) and increase sales related to corporate IT training by using new training courses, including AI anddata science courses.
(5) Dividend policy and dividends for the current and next year
The Company determines its dividend by comprehensively taking into account the state of its accounting
period profit and loss, cash flows and treasury stock purchasing while placing shareholder return as its
priority management issue and securing a proper level of internal reserves for the organization to continue
growing in a sustainable manner.

-4-

Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 2019

The Company plans to apply a dividend payout ratio standard of at least 35% of consolidated earnings.
Under the above-mentioned policy, we plan to pay a total dividend of ¥21.00 per share as a year-end
dividend from surplus, including a commemorative dividend of ¥3.00 yen per share to celebrate theCompany’s 30th anniversary. The full fiscal year dividend comprising the year-end dividend and thepreviously-paid interim dividend is expected to be ¥39.00 per share (consolidated dividend payout ratioof 38.3%).
Moreover, under the above-mentioned policy, we plan to pay an annual dividend of ¥40.00 per share(including an interim dividend of ¥20.00) as a dividend from surplus for the next fiscal year.

-5-Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 20192.

The Future GroupThe Group (the Company and its related companies) has introduced a holding company structure, andconsists of 19 consolidated subsidiaries and seven equity-method affiliates as of December 31, 2019.
The Company, as a holding company, establishes the Group’s growth strategy, monitors management of
the Group companies, and provides specialty service to these companies. Details of the business segmentsof the Group and how major related companies in charge are positioned in the relevant segment are as
follows.
(IT Consulting & Service Business)
In this business, the Group helps clients solve problems, by sharing management issues with them from amanagerial perspective, understanding the essence of the clients’ businesses and establishing information
systems for them using advanced IT.
Company nameBusiness activities

Future Architect, Inc. (subsidiary)

Provision of IT consulting services from an objective andindependent standpoint by using leading-edge information
technology

Future Inspace, Inc. (subsidiary)

Additional development as well as maintenance and operation
services for projects primarily developed by Future Architect, Inc.

YDC Corporation (subsidiary)

Provision of IT consulting services, including a solution for
integrating and analyzing quality information, mainly to customers in
the manufacturing business

FutureOne, Inc. (subsidiary)

Development, sales and maintenance of mission-critical packaged
software for sales management, production management, accounting
and other processes as well as provision of cloud-based services

Micro CAD Co., Ltd. (subsidiary)

Development, sales and maintenance of and support for intellectual
property management software packages, and consigned
development of design control systems for manufacturers

dit Co., Ltd. (subsidiary)

Security consulting and sales of products for forensic services
network operations and security

Innovation Laboratory, Inc.

Provision of management consulting services to create innovation

Logizard Co., Ltd. (affiliate)

Development and sales of and support for cloud-based logistics andinventories management software (WMS)(Business Innovation Business)
In this business, the Group provides original services using IT and creates business innovations.
Company nameBusiness activitieseSPORTS Co., Ltd. (subsidiary)

Sales of sports, outdoor and fitness gear on the Internet

Tokyo Calendar Inc. (subsidiary)

Publication of the magazine “Tokyo Calendar,” provision of
information using websites and smartphone applications, andservices including reservations for tables at restaurants

CodeCamp Inc. (subsidiary)

Online and offline educational service including operation of theonline programming school “CodeCamp”

LaiBlitz, Inc. (subsidiary)

Development of sports and entertainment related software andoperation of online services

Among affiliated companies engaged in businesses that are not included in the two businesses mentioned
above, such as investing in, as well as holding and managing securities, the main companies are as
follows:
Major affiliated company
Future Investment Corp. (subsidiary)

3.

Basic Approach to Selection of Accounting Standards
Taking into consideration the comparability of consolidated financial statements among enterprises, theGroup prepares consolidated financial statements under Japanese GAAP.
The Company intends to apply International Financial Reporting Standards (IFRS) appropriately inconsideration of circumstances inside and outside of Japan.
-6-Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 20194.

Consolidated Financial Statements and Major Notes(1) Consolidated balance sheets(in thousands of yen)Previous consolidated
fiscal year
(December 31, 2018)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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

Consolidated fiscal year
under review(December 31, 2019)

13,984,071
6,234,600
847,865
168,574
1,400,351(3,007)

14,929,901
7,087,190
995,544351,639
1,363,881(3,007)

22,632,457

24,725,149

1,375,460(882,265)

1,710,429(965,749)

493,194

744,679855
2,505,394(2,024,762)

855
2,888,097(2,247,982)

480,631640,115

974,681

1,385,650

Intangible assets
Goodwill
Software
Customer-related assets
Other

40,516
1,707,624
832,000
3,316

178,023
1,673,554
624,000
5,608

Total intangible assets

2,583,458

2,481,186

Investments and other assets
Investment securities
Lease and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts

9,257,039
1,439,195
84,777290,373(21,441)

8,779,498
1,433,233
16,680237,322(19,502)

Total investments and other assets

11,049,944

10,447,232

14,608,084

14,314,070

37,240,542

39,039,219

Total non-current assets
Total assets-7-

Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 2019(in thousands of yen)Previous consolidated
fiscal year
(December 31, 2018)
Liabilities
Current liabilities
Accounts payable – trade
Current portion of long-term loans payable
Current portion of bonds
Accounts payable – other
Income taxes payable
Provision for bonuses
Provision for quality assurance
Provision for loss on projects
Other

Consolidated fiscal year
under review(December 31, 2019)

1,285,569
161,449
52,0001,129,613
1,093,327
210,913
11,182
26,0582,178,516

1,305,448
11,4728,000
1,326,754
854,922238,574
65,617
254,804
2,487,069

Total current liabilities

6,148,629

6,552,663

Non-current liabilities
Bonds payable
Long-term loans payable
Asset retirement obligations
Deferred tax liabilities
Other

92,000222,674
354,965
2,233,019
80,831–
3,320
406,303
1,635,440
145,237

Total non-current liabilities

2,983,490

2,190,301

Total liabilities

9,132,120

8,742,965

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

1,421,815
2,507,763
20,239,578(1,499,778)

1,421,815
2,525,165
23,232,499(1,493,579)

22,669,379

25,685,901

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

5,438,242(1,220)(97,582)

4,598,333
586
11,432

Total accumulated other comprehensive income

5,339,439

4,610,352

Total shareholders’ equity

Non-controlling interests
Total net assets
Total liabilities and net assets-8-

99,602–

28,108,422

30,296,254

37,240,542

39,039,219

Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 2019(2) Consolidated statements of income and comprehensive income(in thousands of yen)Previous consolidated
fiscal year
(from January 1, 2018
to December 31, 2018)

Consolidated fiscal year
under review(from January 1, 2019
to December 31, 2019)

Net sales
Cost of sales

40,218,646
23,643,696

45,389,786
26,884,988

Gross profit

16,574,949

18,504,797

Selling, general and administrative expenses
Directors’ compensations
Salaries and bonuses
Other salaries
Rents
Training expenses
Research and development expenses
Depreciation
Recruiting expenses
Amortization of goodwill
Other426,201
4,006,593
239,763
988,057
384,842
355,519378,269
369,773
219,819
3,381,699

477,271
4,319,850
314,310
1,227,847
381,694
425,879
384,015
485,396
10,1193,954,801

10,750,539

11,981,187

5,824,410

6,523,610

536
160,641

1,132
142,716

67,82436,619

–
7,207

4,268
7,741

236,209

192,478

7,218
1,063

5,130
–

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
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on litigation
Gain on change in equity
Gain on step acquisitions
Total extraordinary income
Extraordinary losses
Loss on realized foreign currency translation
adjustment
Loss on change in equity
Loss on valuation of intangible assets
Loss on retirement of intangible assets
Litigation expenses
Amortization of goodwill
Total extraordinary losses
Profit before income taxes

-9-

8,282

5,130

6,052,337

6,710,958

809,510
100,434
19,482–––

929,427––

175,312––315,274
130,000
354,740

4,913
53,000–––800,015233,226

6,181,749

6,477,732

Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 2019(in thousands of yen)Previous consolidated
fiscal year
(from January 1, 2018
to December 31, 2018)

Consolidated fiscal year
under review(from January 1, 2019
to December 31, 2019)

Income taxes - current
Income taxes - deferred

2,141,042(78,862)

Total income taxes

2,062,179

1,903,259

Profit4,119,569

4,574,472

4,094,884
24,685

4,557,641
16,831

1,169,343(2,331)(1,749)(839,909)
2,099
109,147

(420)

(907)

1,164,840(729,569)

5,284,410

3,844,903

5,259,814

3,828,035

24,596

16,867(Profit attributable to)Profit attributable to owners of parent
Profit attributable to non-controlling interests
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(Comprehensive income attributable to)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 10 -

2,115,164(211,904)

Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 2019(3) Consolidated statements of changes in net assets
Previous consolidated fiscal year (from January 1, 2018 to December 31, 2018)(in thousands of yen)
Shareholders’ equity
Capital stock
Balance at the beginning of the period

1,421,815

Capital surplus

Retained earnings

Treasury shares

Total
shareholders’equity2,507,763

17,396,436(1,499,538)

19,826,476

Changes of items during the period
Dividends from surplus(1,251,741)(1,251,741)

Profit attributable to owners ofparent

4,094,884

4,094,884

Purchase of treasury shares

(239)

(239)

Disposal of treasury shares
Net changes of items other thanshareholders' equity–

Total changes of items during theperiod

––2,843,142(239)

2,842,902

Balance at the end of the period

1,421,815

2,507,763

20,239,578(1,499,778)

22,669,379

Accumulated other comprehensive income
Total
Valuation
Deferred gains Foreign currency accumulateddifference onotheror losses ontranslation
available-for-salecomprehensive
hedgesadjustment
securities
incomeBalance at the beginning of the period

4,269,144

738(95,460)

4,174,421

Noncontrollinginterests

487,687

Total net
assets

24,488,586

Changes of items during the period
Dividends from surplus(1,251,741)

Profit attributable to owners ofparent

4,094,884

Purchase of treasury shares(239)

Disposal of treasury shares
Net changes of items other thanshareholders' equity

1,169,097(1,958)(2,121)

1,165,017(388,084)

776,932

Total changes of items during the period

1,169,097(1,958)(2,121)

1,165,017(388,084)

3,619,835

Balance at the end of the period

5,438,242(1,220)(97,582)5,339,439

99,602

28,108,422- 11 -

Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 2019

Consolidated fiscal year under review (from January 1, 2019 to December 31, 2019)(in thousands of yen)
Shareholders’ equity
Capital stock
Balance at the beginning of the period

Capital surplus

1,421,815

2,507,763

Retainedearnings
20,239,578

Treasury shares

Total
shareholders’equity(1,499,778)

22,669,379

Changes of items during the period
Dividends from surplus(1,564,720)(1,564,720)

Profit attributable to owners ofparent

4,557,641

4,557,641

Purchase of treasury shares
Disposal of treasury shares

17,402

(157)

(157)

6,356

23,758Net changes of items other thanshareholders' equity
Total changes of items during theperiodBalance at the end of the period––

17,402

2,992,920

6,199

3,016,522

1,421,815

2,525,165

23,232,499(1,493,579)

25,685,901

Accumulated other comprehensive income
Total
Valuation
Deferred gains Foreign currency accumulateddifference onotheror losses ontranslation
available-forcomprehensive
hedgesadjustment
sale securities
incomeBalance at the beginning of the period

5,438,242(1,220)(97,582)5,339,439

Noncontrollinginterests

Total net
assets99,602

28,108,422

Changes of items during the period
Dividends from surplus(1,564,720)

Profit attributable to owners ofparent

4,557,641

Purchase of treasury shares(157)

Disposal of treasury shares

23,758Net changes of items other thanshareholders' equity(839,909)

1,806

109,014

Total changes of items during the period(839,909)

1,806

Balance at the end of the period

4,598,333

586- 12 -(729,087)(99,602)(828,689)

109,014(729,087)(99,602)2,187,832

11,432

4,610,352–

30,296,254

Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 2019(4) Consolidated statements of cash flows(in thousands of yen)Previous consolidated
fiscal year
(from January 1, 2018
to December 31, 2018)
Net cash provided by (used in) operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
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
Foreign exchange losses (gains)Share of (profit) loss of entities accounted for using
equity method
Loss (gain) on change in equity
Loss (gain) on step acquisitions
Loss on valuation of intangible assets
Loss on retirement of intangible assets
Gain on litigation
Litigation expenses
Loss on realized foreign currency translation
adjustment
Decrease (increase) in notes and accounts receivable –trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable –trade
Increase (decrease) in accounts payable – other
Decrease (increase) in other assets
Increase (decrease) in other liabilities

Consolidated fiscal year
under review(from January 1, 2019
to December 31, 2019)6,181,749
773,250
574,560(3,697)
14,007(5,212)
15,224(161,177)
7,218
1,063

6,477,732
991,806
10,119(1,939)26,66054,435
228,746(143,849)
5,130(4,268)(67,824)(36,619)(100,434)(19,482)–
315,274(809,510)
130,000

4,913–
53,000––––175,312(24,244)(831,700)

22,892(330,493)

238,196

19,878(23,463)
1,321,152
260,015

170,212
114,462
274,672

Subtotal

8,639,559

7,258,213

Interest and dividend income received
Interest expenses paid
Income taxes paid
Litigation-related proceeds/payments

161,161(7,480)(1,507,066)
679,510

143,865(5,046)(2,394,853)–

Net cash provided by (used in) operating activities

7,965,683

5,002,178- 13 -

Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 2019(in thousands of yen)Previous consolidated
fiscal year
(from January 1, 2018
to December 31, 2018)
Net cash provided by (used in) investing activities
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Purchase of shares of subsidiaries
Proceeds from liquidation of subsidiaries andassociates
Purchase of shares of subsidiaries and associates
Purchase of investment securities
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Other
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Repayments of long-term loans payable
Repayments of finance lease obligations
Redemption of bonds
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents

Consolidated fiscal year
under review(from January 1, 2019
to December 31, 2019)–(130,572)(901,337)(11,536)

75,231(521,497)(467,737)(6,050)519,249(125,320)(560,413)(116,519)

48,922–––(217,255)(102,000)(600,150)(18,508)

50,69623,026

3,029

3,175

(1,199,217)(1,856,349)(1,050,460)(7,715)(5,000)(239)(1,250,905)(19,000)(374,131)(41,370)(136,000)(157)(1,567,003)–(2,333,321)(2,118,663)(2,639)(6,105)

Net increase (decrease) in cash and cash equivalents

4,430,504

1,021,060

Cash and cash equivalents at beginning of the period

9,478,336

13,908,840

Cash and cash equivalents at end of the period

13,908,840

14,929,901- 14 -

Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 2019(5) Notes to consolidated financial statements(Notes on premise of a going concern)
Not applicable.
(Additional information)(Implementation of Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.)
The Company has implemented the Partial Amendments to Accounting Standard for Tax EffectAccounting (ASBJ Statement No. 28, February 16, 2018), etc. starting in the first three months ended
March 31, 2019. Deferred tax assets and deferred tax liabilities are shown under investments and otherassets and non-current liabilities, respectively.
(Segment information)
Segment information
1. Overview of reportable segments
The reportable segments of the Group are constituent units of the Company for which separate
financial information can be obtained, and the Board of Directors examines such information
on a regular basis to determine the allocation of management resources and evaluate businessperformance.
The Group defines the classification of business segments by comprehensively taking into
account main services, solutions, customers and markets, and has two reportable segments: theIT Consulting & Service Business and Business Innovation Business.
The business operations of the two reportable segments are as follows:2.

Reportable segments

Business operations

IT Consulting & Service BusinessIn this business, the Group helps clients solve problems, by sharing
management issues with them from a managerial perspective,
understanding the essence of the clients’ businesses andestablishing information systems for them using advanced IT.

Business Innovation BusinessIn this business, the Group provides original services using IT and
creates business innovations.

Methods of calculating net sales, income or loss, assets, liabilities, and other items byreportable segment
The accounting method applied to the above-mentioned business segments is a method in
accordance with the accounting policy applied to the preparation of the consolidated financial
statements.
Income of reportable segments is based on operating income.
Inter-segment sales and transfers are based on market prices.

- 15 -

Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 20193.

Information on amounts of net sales, profit or loss, assets, and other items by reportablesegment
Fiscal 2018 (from January 1, 2018 to December 31, 2018)(in thousands of yen)
Reportable segments
BusinessInnovation
Business

IT Consulting &Service Business

Total

Other
(Note 1)

Total

Amount statedin financial
statements(Note 3)Adjustment(Note 2)

Net sales
Net sales to outsideclients
Inter-segment sales ortransfer

32,883,395

7,335,250

40,218,646–

40,218,646–

40,218,646

69,974

21,976

91,951–

91,951(91,951)–
40,218,646

Total

32,953,370

7,357,227

40,310,597–

40,310,597(91,951)

Segment profit (loss)

5,651,265(146.242)

5,505,022(597)

5,504,424

319,9855,824,410

Segment assets

21,659,174

2,464,361

24,123,535

4,694,369

28,817,905

8,617,186

37,435,091

Depreciation

731,824

14,858746,682–746,682

26,567773,250

Amortization of
goodwill

29,674

544,885

574,560–

574,560–

574,560

1,073,019

63,146

1,136,165–

1,136,165

73,923

1,210,088

Other items

Increase in property,
plant and equipment andintangible assets(Notes) 1.
2.
3.

“Other,” a segment not included in the reportable segments, includes securities investment, holding, and management activities.
Adjustments to segment profit (loss) and segment assets represent the amount of inter-segment transactions eliminated andincome, expenses and assets of the holding company excluding the technology segment.
Segment profit (loss) is adjusted with operating income in consolidated financial statements.

Fiscal 2019 (from January 1, 2019 to December 31, 2019)(in thousands of yen)
Reportable segments
IT Consulting &Service BusinessBusinessInnovation
Business

Other(Note 1)

Total

Total

Amount statedin financial
statements(Note 3)Adjustment(Note 2)

Net sales
Net sales to outsideclients
Inter-segment sales ortransfer

37,340,366

8,049,420

45,389,786–

45,389,786–

45,389,786

52,785

39,211

91,997–91,997(91,997)–
45,389,786

Total

37,393,151

8,088,632

45,481,784–

45,481,784(91,997)

Segment profit (loss)

6,261,524

26,5406,288,064(4,095)

6,283,968

239,641

6,523,610

Segment assets

21,248,292

2,796,709

24,045,001

4,132,329

28,177,331

10,861,888

39,039,219

Depreciation

900,330

38,821

939,151–

939,151

52,654

991,806

Amortization of
goodwill

10,119–

10,119–

10,119–

10,119

Increase in property,
plant and equipment
and intangible assets

571,705

174,287

745,992–

745,992

489,2111,235,204

Other items(Notes) 1.
2.
3.

“Other,” a segment not included in the reportable segments, includes securities investment, holding, and management activities.
Adjustments to segment profit (loss) and segment assets represent the amount of inter-segment transactions eliminated andincome, expenses and assets of the holding company excluding the technology segment.
Segment profit (loss) is adjusted with operating income in consolidated financial statements.

- 16 -

Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 2019

(Per share data)
Fiscal 2018(from January 1, 2018 to
December 31, 2018)

Fiscal 2019(from January 1, 2019 to
December 31, 2019)

Net asset value per share¥626.53¥677.50

Profit per share¥91.60¥101.94(Notes) 1. Diluted profit per share is not recorded because there are no potential shares.
2. Profit per share is calculated based on the following:
Fiscal 2018(from January 1, 2018 to
December 31, 2018)

Fiscal 2019(from January 1, 2019 to
December 31, 2019)

Profit per share
Profit attributable to owners of parent(thousands of yen)

4,094,884

4,557,641

Amount not available for common shareholders
to common shares (thousands of yen)––

Profit attributable to owners of parent related tocommon stock (thousands of yen)

4,094,884

4,557,641

Average outstanding shares of common stockduring the period (shares)

44,705,037

44,710,831(Significant subsequent events)
Not applicable.

- 17 -

Future Corporation (4722): Consolidated Summary Report of Operating Results for Fiscal 2019

5.

Other
Orders received(in thousands of yen)
Fiscal 2018(from January 1, 2018 to
December 31, 2018)
Orders received

IT Consulting & Service BusinessBusiness Innovation Business
Total

Order backlog

35,128,290

11,898,801

Total

37,906,441

Order backlog
12,523,723

1,682,538

322,205

1,851,708

348,079

12,221,007

39,758,149

12,871,803

Orders received
Business Innovation Business

Orders received

36,810,829

Consolidated third quarter
under review(from July 1, 2019 to
September 30, 2019)
IT Consulting & Service Business

Fiscal 2019(from January 1, 2019 to
December 31, 2019)

Order backlog

Consolidated fourth quarter
under review(from October 1, 2019 to
December 31, 2019)
Orders received

Order backlog

9,700,736

11,565,937

10,221,999

12,523,723

497,397362,381

538,391

348,079

10,198,134

11,928,319

10,760,391

12,871,803- 18 -