October 31 2018

Consolidated Summary Report of Operating Results for the Third Quarter of Fiscal 2018(Year ending December 2018) [Japan GAAP]
Company name:

Future Corporation

Shares listed on: First Section of Tokyo Stock Exchange
Security code number 4722
Website: https://www.future.co.jp
Chairman and CEO:Yasufumi Kanemaru, Chairman and President

Contact:

Yoshihiko Nakajima, Executive OfficerTel.:+81-3-5740-5724

Scheduled submit date of quarterly report: November 13, 2018
Scheduled date for distribution of dividend payments: Creation of supplemental material on quarterly financial results:

No

Holding of quarterly results briefing: No(Amount rounded off to million yen)

1. Consolidated Results for the Third Quarter of Fiscal 2018 (January 1, 2018 to September 30, 2018)(Percentages are year-on-year changes)(1) Consolidated operating results (accumulated total)
Net sales

Quarterly profit attributableto owners of parent

Operating income

Million yen%

Millionyen%

Million yen%

3Q, Fiscal 2018
28,794
8.7
4,080
27.9
3,164
3Q, Fiscal 2017
26,500
3.3
3,190
21.5
2,408
(Note) Comprehensive income 3Q, Fiscal 2018: 4,635 million yen (103.6 %)3Q, Fiscal 2017: 2,276 million yen (35.4 %)

31.4
54.8

Quarterly profit per
share
Yen

3Q, Fiscal 2018
3Q, Fiscal 2017

70.78
53.87

(2) Consolidated financial position
Total assets
Million yen

3Q, Fiscal 2018
Fiscal 2017
(Reference) Shareholders’ equity

Net assets
Million yen

37,56628,06832,522
24,4883Q, Fiscal 2018: 27,334 million yen

Shareholders’equity ratio

Net assets per share
%

Yen

72.8
611.4473.8
536.87
Fiscal 2017: 24,000 million yen

2. Dividends
Dividends per share (yen)End of the first End of the second End of the third
quarter dividend quarter dividend quarter dividend
Yen

Yen

Yen

Fiscal 2017
13.00
Fiscal 2018
15.00
Fiscal 2018 (Forecast)(Note) Modification of the projected dividends announced most recently: No

Year-end
dividend

Total
Yen

Yen

13.00

26.00

15.00

30.00

3. Projected Consolidated Results for Fiscal 2018 (January 1, 2018 to December 31, 2018)(Percentages are changes from the previous fiscal year for a “Full year”)

Net sales
Million yen

Operating income%

Million yen%

Profit attributable toowners of parent
Million yen

Profit per share%

Yen

Full year
37,900
4.5
5,170
16.0
3,530
(5.7)
(Note) Modification of the projected consolidated results announced most recently: No

78.96

* Notes(1) Changes in significant subsidiaries in the consolidated third quarter under review (Changes in specified subsidiaries
that involved changes in the scope of consolidation): Yes

New: 1 company (company name) dit Co., Ltd.

Excluding: - companies (company names)(2) Application of special accounting for the preparation of quarterly consolidated financial statements: No(3) Change in accounting policies or estimates and retrospective restatements
1) Change in accounting policies in accordance with revision of accounting standards: No2) Change in accounting policies other than item 1) above: No3) Change in accounting estimates: No4) Retrospective restatements: No(4) Number of outstanding shares (common stock)1) Total outstanding shares as of the endof the period (including treasury
3Q, Fiscal 2018:
shares)2) Total treasury shares as of the end of
3Q, Fiscal 2018:
the period
3) Average number of outstanding
3Q, Fiscal 2018:
stocks during the quarter underreview(accumulated period for quarter)

47,664,000
shares2,959,049
shares44,705,065
sharesFiscal 2017:
Fiscal 2017:
3Q, Fiscal 2017:

47,664,000
shares2,958,907
shares44,705,128
shares* This quarterly financial report is outside of the scope of an audit procedure by the Certified Public Accountant or
Audit firm.
* Points to note about the proper use of projections, and other noteworthy events
The earnings forecasts and other information concerning the future contained in these materials are based on
information currently obtained by the Company and on certain premises the Company judges to be rational. The
Company does not intend to guarantee their achievement. Actual results may differ significantly from forecasts due tovarious uncertain factors.

 Contents

1. Qualitative information about consolidated operating results for the third quarter cumulative period of the fiscal year underreview ............................................................................................................................................................................................... 2(1) Explanation on operating results............................................................................................................................................... 2(2) Explanation on qualitative information about consolidated earnings forecast .......................................................................... 2
2.

Quarterly Period Consolidated Financial Statements and Related Notes ........................................................................................ 4(1) Quarterly Period Consolidated Balance Sheets......................................................................................................................... 4(2) Quarterly Period Consolidated Statements of Income and Comprehensive Income ................................................................. 6(First nine months period) ........................................................................................................................................................ 6(3) Notes to quarterly consolidated financial statements ................................................................................................................ 8(Notes regarding the premise of surviving company) ....................................................................................................................... 8(Notes regarding significant change in shareholders’ equity) ........................................................................................................... 8(Segment information) ...................................................................................................................................................................... 8(Business combination-related matters) ............................................................................................................................................ 9-1-

1. Qualitative information about consolidated operating results for the third quarter cumulative period of
the fiscal year under review(1) Explanation on operating results
Consolidated net sales of the Group for the first nine months were ¥28,794 million, up 8.7% from the corresponding period of
the previous fiscal year and operating income was ¥4,080 million, up 27.9%. Quarterly profit attributable to owners of parent
increased 31.4% year-on-year to ¥3,164 million.
(i) IT Consulting & Service Business
Future Architect, Inc. and Future Inspace, Inc. expanded their customer base in a wide range of industries including apparel,retail sales, food manufacturing, and news media, and involvement in projects for the development of next-generation
mission-critical systems, while more and more regional banks are considering an introduction of the Group’s business-support
and lending-support systems, resulting in a substantial year-on-year increase in net sales and operating income. In this quarter inparticular, the number of projects including those of new clients increased, along with cutting-edge projects for demand
projection and loan application examination, etc., that utilize AI technologies such as image analysis, natural language processing,and machine learning.
YDC Corporation marked growth in both net sales and operating income, which is attributable to projects for customers in the
manufacturing industry, including license sales of YDC SONAR, a software to integrate and analyze quality information, andsystem development centered on the manufacturing business under entrusted contracts, as well as a growth in sales fromlogistics-related systems including projects of collaborating technologies of YDC and the Future Group.
The business of FutureOne, Inc. is on a steady trend showing a year-on-year increase in both net sales and operating income,which is attributable to an order for its original sales management packaged software InfiniOne that the company received from acustomer larger than its existing customers.
Micro CAD Co., Ltd. showed significant improvement in operating income, which was attributable to an increase in sales
from its own intellectual property management software and system development for the manufacturing industry, as well as an
improved profitability owing to the strengthened project management.
As a result, the IT Consulting & Service Business showed an increase in both sales and operating income, posting net sales of¥23,513 million (up 8.0% year-on-year), and operating income of ¥4,050 million yen (up 22.2% year-on-year).
(ii) Business Innovation BusinessTokyo Calendar Inc. saw a surge in monthly page views (including video views) from 47 million as of December 31, 2017 to
55 million as of September 30, 2018, with 400 million monthly active users, resulting from implementation of content strategies
focusing on men and women aged 30 to 49 in urban areas. Magazine sales also continued steadily. In April 2018, It acquired theentire shares of Matchalarm, Inc. and enhanced services provided to users. As a result, IT posted an increase in sales for the firstnine months of 2018 (including that of Matchalarm, Inc.) on a year-on-year basis, while experiencing a year-on-year decline inoperating income which is attributable to a year-on-year decrease in its advertising activities for the July-September period.
eSPORTS Co., Ltd., although making restructuring efforts with the aim of increasing sales of private brand products andreduce inventory, showed a decline in operating income. This is attributable to a worsened profitability of sales of national brandproducts and an increased burden of sales promotion expenses and logistics expenses offsetting a year-on-year increase in net
sales.
CodeCamp, Inc. marked significant growth of operating income on a year-on-year basis, which is attributable to an increase insales of programming education services tailored for corporate purposes including orientation for new employees, as well as
steadily expanding personal online programming education services.
LaiBlitz, Inc. showed a year-on-year increase in operating income, which is attributable to sales from system development forthe purpose of strengthening several professional baseball teams and for fan club operation.
As a result, the Business Innovation Business showed a year-on-year increase in operating income, posting net sales of ¥5,353
million (up 9.0% year-on-year) and an operating loss of ¥176 million (against a loss of ¥224 million a year earlier).
(Note) Segment business results stated above are before adjusting for internal sales and transfers among segments.
(2) Explanation on qualitative information about consolidated earnings forecast-2-Forecasts for consolidated earnings results for the full fiscal year ending December 2018 remain unchanged
from those announced in the Consolidated Summary Report of Operating Results for the Second Quarter as ofJuly 27, 2018.

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2. Quarterly Period Consolidated Financial Statements and Related Notes(1) Quarterly Period Consolidated Balance Sheets
Previous consolidated
fiscal year
(December 31, 2017)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Deferred tax assets
Accounts receivable - other
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
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-(in thousands of yen)
Consolidated third quarter
under review(September 30, 2018)

9,478,336
5,887,600
696,273
238,904
320,085
1,521,867
1,078,867(3,263)
19,218,671

13,247,495
5,892,812
971,754
208,793424,671
80,612
1,581,553(3,344)
22,404,348

1,279,666(801,002)
478,6635,430
2,298,708(1,797,260)
501,448985,542

1,371,325(867,119)504,2055,430
2,483,355(1,976,989)
506,365
1,016,001

656,654
1,356,891
1,120,000
17,754
3,151,300

477,0311,598,520
904,000
20,8993,000,450

7,720,274
1,208,396
262,602(24,547)
9,166,727
13,303,570
32,522,241

9,617,717
1,247,739
302,875(22,192)
11,146,140
15,162,592
37,566,940

Previous consolidated
fiscal year
(December 31, 2017)
Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term loans payable
Accounts payable - other
Income taxes payable
Provision for bonuses
Provision for quality assurance
Provision for loss on projects
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
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
Non-controlling interests
Total net assets
Total liabilities and net assets-5-(in thousands of yen)
Consolidated third quarter
under review(September 30, 2018)959,274
1,000,000
1,090,085
487,599
195,484
19,994
7,234
1,798,795
5,558,468

1,393,890
182,846
862,417832,168
805,192
17,527
5,023
2,062,510
6,161,576

353,495
2,047,555
74,1362,475,187
8,033,655

251,737
359,935
2,552,411
172,761
3,336,845
9,498,422

1,421,815
2,507,763
17,396,436(1,499,538)
19,826,476

1,421,815
2,507,763
19,309,109(1,499,778)
21,738,909

4,269,144
738(95,460)
4,174,421
487,687
24,488,586
32,522,241

5,692,440
786(97,535)
5,595,691
733,916
28,068,518
37,566,940

(2) Quarterly Period Consolidated Statements of Income and Comprehensive Income(First nine months period)

26,500,180
15,633,455
10,866,725(in thousands of yen)First nine months of theconsolidated fiscal year underreview(from January 1, 2018
to September 30, 2018)
28,794,172
17,073,043
11,721,128

327,065
2,824,706
294,201
250,224
268,765
266,7643,444,523
7,676,251
3,190,474

311,949
2,876,074
310,292
256,954269,305
255,174
3,361,166
7,640,917
4,080,211

886
60,405130,035
95,154438
104,662
870
60,192

7,832
294,313

4,461
170,625

5,263
5,263
3,479,524

5,472
5,472
4,245,364

106,480
106,480

809,510
100,434
19,482
929,427

3,586,004
1,162,909
2,423,095

315,274
130,000
445,274
4,729,516
1,515,612
3,213,904

2,408,255
14,8403,164,414
49,489First nine months of the previous
consolidated fiscal year
(from January 1, 2017
to September 30, 2017)
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
Foreign exchange gains
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on litigation
Gain on change in equity
Gain on step acquisitions
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on retirement of intangible assets
Litigation expenses
Total extraordinary losses
Quarterly profit before income taxes
Income taxes
Quarterly profit(Profit attributable to)
Quarterly profit attributable to owners of parent
Quarterly profit attributable to non-controlling interests-6-First nine months of the previous
consolidated fiscal year
(from January 1, 2017
to September 30, 2017)
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
Quarterly comprehensive income(Comprehensive income attributable to)
Quarterly comprehensive income attributable to ownersof parent
Quarterly comprehensive income attributable tonon-controlling interests-7-(in thousands of yen)First nine months of theconsolidated fiscal year underreview(from January 1, 2018
to September 30, 2018)(36,547)
589(90,738)(20,016)

1,423,541(143)(1,875)(335)(146,713)
2,276,382

1,421,186
4,635,091

2,261,451

4,585,596

14,93149,494

(3) Notes to quarterly consolidated financial statements(Notes regarding the premise of surviving company)
Not applicable.
(Notes regarding significant change in shareholders’ equity)
Not applicable.
(Segment information)
I. Third quarter of the previous consolidated fiscal year (from January 1, 2017 to September 30, 2017)
1. Amounts of net sales and income or loss by business segment reported(in thousands of yen)
Reportable segments
Amount on
Quarterly Period
OthersAdjustment
IT Consulting
Business
Consolidated
Total(Note 1)
(Note 2)
& Service
Innovation
Total
Statements ofBusiness
Business
Income (Note 3)
Net sales
Net sales tooutsideclients
Inter-segment
sales ortransfer
Total

21,613,610

4,886,570

26,500,180-

26,500,180-

26,500,180

158,676

26,701

185,377-

185,377(185,377)-

21,772,287

4,913,271

26,685,558-

26,685,558(185,377)

26,500,180

Segment income
3,313,663(224,922)
3,088,740(33,846)
3,054,894
135,580
3,190,474(loss)(Notes)1. “Others,” segments not included in the reportable segments, include securities investment, holding, and management
activities.
2. Adjustment of segment income (loss) represents the amount of inter-segment transactions eliminated and income andexpenses of the holding company.
3. Segment income (loss) is adjusted with operating income in the Quarterly Period Consolidated Statements of Income.
2. Information on impairment loss on non-current assets or goodwill, etc., for each reporting segment(Significant changes in the amount of goodwill)
The amount of goodwill, which was tentatively calculated and presented for the merger with YDC
Corporation which was executed during the previous consolidated first quarter, has been revised because
allocation of acquisition price was completed and a tentative accounting procedure was finalized as of the end of
the previous consolidated fiscal year. Please refer to “Business combination-related matters” for details.

II. Third quarter of consolidated fiscal year under review (from January 1, 2018 to September 30, 2018)
1. Amounts of net sales and income or loss by business segment reported(in thousands of yen)
Reportable segments
Amount on
Quarterly Period
OthersAdjustment
IT Consulting
Business
Consolidated
Total(Note 1)
(Note 2)
& Service
Innovation
Total
Statements ofBusiness
Business
Income (Note 3)
Net sales
Net sales tooutsideclients
Inter-segment
sales ortransfer
Total

23,459,115

5,335,056

28,794,172-

28,794,172-

28,794,172

54,01718,088

72,106-

72,106(72,106)-

23,513,133

5,353,145

28,866,278-

28,866,278(72,106)

28,794,172

Segment income
4,050,665(176,729)
3,873,936
726
3,874,662
205,548
4,080,211(loss)(Notes)1. “Others,” segments not included in the reportable segments, include securities investment, holding, and management
activities.
2. Adjustment of segment income (loss) represents the amount of inter-segment transactions eliminated and income andexpenses of the holding company.

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3. Segment income (loss) is adjusted with operating income in the Quarterly Period Consolidated Statements of Income.

(Business combination-related matters)
Significant revision made to the initial allocation of acquisition price presented in the comparative information
The tentative accounting, that had been applied for the previous first consolidated quarter on the business combination with
YDC exercised on January 5, 2017, was finalized at the end of the previous consolidated fiscal year.
In accordance with the finalization, a significant revision was made to the initial allocation of acquisition price of the peer
information contained in the quarterly consolidated financial statements for the third consolidated quarter under review. As aresult, the quarterly consolidated profit and loss statement saw a decrease in operating income, ordinary income, and quarterly
profit before income taxes of 94,125 thousand yen, and an increase in quarterly profit attributable to owners of parent of 907
thousand yen.

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