Consolidated Summary Report of Operating Results for the First Quarter of
Fiscal 2020 (Year ending December 2020) [Japan GAAP]
April 28, 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 for filing the quarterly report:
May 14, 2020
Scheduled date for distribution of dividend payments:-Creation of supplemental material on quarterly financial results:
No
Holding of quarterly financial results briefing:No(Amount rounded off to million yen)

Consolidated Results for the First Quarter of Fiscal 2020 (January 1, 2020 to March 31, 2020)
Consolidated operating results (cumulative total)(Percentages represent year-on-year changes)
Net sales

Profit attributable to owners ofparentOperating income

Million yen%

Million yen%

1Q Fiscal 2020
11,027
1.6
1,654
1Q Fiscal 201910,85017.7
1,791(Note) Comprehensive income 1Q Fiscal 2020: 1,380 million yen (-51.7%)
1,938 million yen (31.2%)

Million yen

%

(7.6)
1,147
7.9
31.3
1,063
(22.6)(Note) Comprehensive income 1Q Fiscal 2019:

Profit per shareYen

1Q Fiscal 2020
1Q Fiscal 2019

25.67
23.79

(2) Consolidated financial position
Total assets

Shareholders’ equity
ratio

Net assets

Million yen

Million yen

1Q Fiscal 2020
39,37530,650Fiscal 201939,03930,296(Reference) Shareholders’ equity 1Q Fiscal 2020: 30,642 million yen

2.

Net assets per share

%

Yen

77.8
77.6
Fiscal 2019: 30,296 million yen

686.36677.50

Dividends
Dividends per share (yen)End of the firstquarter dividend

End of thesecond quarter
dividend

End of the third
quarter dividend

Yen

Yen

Yen

Yen

Yen

–

21.00

39.00

–

20.00

40.00

Fiscal 2019–
18.00
Fiscal 2020–
Fiscal 2020 (Forecast)
20.00(Note) Modification of the projected dividends announced most recently: No

3.

Year-end
dividend

Total

Projected Consolidated Results for Fiscal 2020 (January 1, 2020 to December 31, 2020)
Net sales
Million yen(Percentage figures indicate year-on-year changes)
Profit attributable toProfit per shareowners of parent

Operating income%

Million yen%

Million yen

First six months(accumulated
total)
23,020
3.6
3,195
(4.2)
2,190
Full year
48,300
6.4
7,200
10.4
4,880
(Note) Modification of the projected consolidated results announced most recently: No

%

Yen

2.8
7.1

48.97
109.13*Notes(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries thatinvolved changes in the scope of consolidation): None
(2) Application of special accounting for the preparation of quarterly consolidated financial statements: None
(3) Change in accounting policies or estimates and retrospective restatements
1) Change in accounting policies in accordance with revision of accounting standards:
2) Change in accounting policies other than item 1) above:3) Change in accounting estimates:
4) Retrospective restatements:

None
None
None
None

(4) Number of outstanding shares (common stock)
1)
2)
3)

*
*

Total outstanding shares as of the end of
the period (including treasury shares)
Total treasury shares as of the end of theperiodAverage number of outstanding shares
during the period (cumulative total)

1Q
Fiscal2020
1Q
Fiscal2020
1Q
Fiscal2020

47,664,000
sharesFiscal 201947,664,000
shares3,019,087 sharesFiscal 2019

2,946,587 shares

44,711,469
shares1Q
Fiscal2019

44,704,951
sharesThis quarterly financial 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 the Company and assumptions the Company considers as reasonable, and the Company does not promise toachieve 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 the First Quarter of
Fiscal 2020

 Contents
1.

Qualitative Information Regarding Financial Results for the Quarter Under Review ........................................ 2

2.

Quarterly Consolidated Financial Statements and Major Notes ....................................................................... 4(1) Quarterly consolidated balance sheets .................................................................................................... 4(2) Quarterly consolidated statements of income and comprehensive income ............................................. 6(First three months of the consolidated fiscal year) .......................................................................................... 6(3)

Notes to quarterly consolidated financial statements ............................................................................... 8(Notes on premise of a going concern) ............................................................................................................ 8(Notes on any significant changes in shareholders’ equity) .............................................................................. 8(Segment information, etc.).............................................................................................................................. 83.

Supplementary information ............................................................................................................................ 10
Orders received ............................................................................................................................................. 10-1-

Future Corporation (4722): Consolidated Summary Report of Operating Results for the First Quarter of
Fiscal 2020

1.

Qualitative Information Regarding Financial Results for the Quarter Under Review
Explanation of operating results
The Group’s consolidated net sales for the first three months under review were 11,027 million
yen, up 1.6% from a year ago, while operating income fell 7.6% to 1,654 million yen and profit
attributable to owners of parent increased 7.9% to 1,147 million yen over the same period of theprevious fiscal year.
During the first quarter under review, net sales and operating income of the IT Consulting &Service Business decreased year on year due mainly to year-on-year declines in both net sales
and income of Future Architect, Inc. and the technology division of Future Corporation. The
Business Innovation Business turned around as a segment to record an operating profit as all of
the companies improved their operating performance for this business As a result of the above,
consolidated net sales increased 1.6% year on year while operating income decreased 7.6%
year on year. Profit attributable to owners of parent increased 7.9% year on year.
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 saw a decrease in net
sales as there were delays in receiving new project orders due to the assignment of additional
personnel to some difficult projects, although sales to distribution, service and other businesses
increased driven by their strategic IT investment conducted actively using big data and AI.
Operating income decreased due to the posting of provision for loss on some unprofitableprojects.
Future Inspace, Inc. saw a slight decrease in net sales and operating income year on year
although, as was the case last year, there were maintenance and operation service deals for
projects completed by Future Architect, Inc. as well as new development deals.
Net sales and operating income of FutureOne, Inc. decreased year on year as it failed to focus
on receiving new orders due to some delivery delays in SI deals relating to its original sales
management software package.
YDC Corporation’s net sales and operating income increased from a year ago thanks toincreased sales of its original software, etc.
Net sales and operating income of dit Co., Ltd. increased significantly year on year thanks tostrong sales of security services such as vulnerability diagnosis services, etc.
As a result, the IT Consulting & Service Business showed a decrease in both net sales andoperating income, posting net sales of 9,094 million yen (down 2.1% year on year), andoperating income of 1,548 million yen (down 12.2% year on year).
2. Business Innovation BusinesseSPORTS Co., Ltd. posted significant year-on-year growth in net sales, with improved operating
performance, due mainly to strong sales of private-brand products driven by increased demandfor indoor training after stay-at-home advice was issued as a measure to prevent novel
coronavirus infections, its ability to meet growing demand for outdoor products throughappropriate inventory management, and increased sales through participation in campaigns at
retail stores located in shopping malls.
CodeCamp Inc. increased its net sales and operating income significantly from the same perioda year ago thanks to increased applications for online courses targeting both corporations andindividuals after the issuance of stay-at-home advice as a measure to prevent novel coronavirus
infections.
Tokyo Calendar Inc. posted a substantial year-on-year increase in net sales thanks to the steady
growth of online services (e.g., “Tokyo Calendar Date”) and advertising revenues. It turned
around to record an operating profit after recording an operating loss for the same period lastyear.
LaiBlitz, Inc.’s net sales and operating income increased compared to a year ago due to thestable provision of consulting services to multiple professional baseball teams, cloud services,
etc. In addition, it acquired the business of TrexEdge, Inc. in January 2020 as part of therestructuring of the Group.
As a result, the Business Innovation Business turned around as a segment to record operating-2-

Future Corporation (4722): Consolidated Summary Report of Operating Results for the First Quarter of
Fiscal 2020

income, posting net sales of 1,941 million yen (up 22.8% year on year) and operating income of
67 million yen (against a loss of 66 million yen a year earlier).
(Note) Segment business results stated in the paragraphs above are before adjusting for internalsales and transfers among segments.

-3-

Future Corporation (4722): Consolidated Summary Report of Operating Results for the First Quarter of
Fiscal 2020

2.

Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheets(in thousands of yen)Previous consolidated
fiscal year
(December 31, 2019)
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

First quarter of theconsolidated fiscal year
under review(March 31, 2020)

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

15,067,116
6,789,341
1,003,911
575,597
1,413,856(3,000)24,725,149

24,846,823

1,710,429(965,749)

1,712,865(983,909)

744,679

728,955855
2,888,097(2,247,982)

855
2,668,801(2,047,999)

640,115

620,801

1,385,650

1,350,612

Intangible assets
Goodwill
Software
Customer-related assets
Other

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

168,1121,658,613
572,000
6,147

Total intangible assets

2,481,186

2,404,872

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

9,103,587
1,438,273
17,837
225,569(12,524)

10,447,232

10,772,743

14,314,070

14,528,228

39,039,219

39,375,051

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-Future Corporation (4722): Consolidated Summary Report of Operating Results for the First Quarter of
Fiscal 2020
(in thousands of yen)Previous consolidated
fiscal year
(December 31, 2019)
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

First quarter of theconsolidated fiscal year
under review(March 31, 2020)

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

1,415,376
6,672
809,781664,169
861,311
69,411
553,597
2,336,956

Total current liabilities

6,552,663

6,717,276

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

3,320
406,303
1,635,440
145,237

1,096
406,369
1,437,165
162,783

Total non-current liabilities

2,190,301

2,007,414

8,742,965

8,724,690

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

4,000,000
23,388,220(1,581,327)

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

25,685,901

25,806,892

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

Total shareholders’ equity

4,598,333
586
11,432

4,823,650
505
11,638

Total accumulated other comprehensive
income4,610,352

4,835,795

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

-5-

－

7,673

30,296,254

30,650,360

39,039,219

39,375,051

Future Corporation (4722): Consolidated Summary Report of Operating Results for the First Quarter of
Fiscal 2020

(2) Quarterly consolidated statements of income and comprehensive income(First three months of the consolidated fiscal year)(in thousands of yen)First three months of theprevious consolidated
fiscal year
(from January 1, 2019 toMarch 31, 2019)

First three months of theconsolidated fiscal year
under review(from January 1, 2020 toMarch 31, 2020)

Net sales
Cost of sales

10,850,850
6,293,786

11,027,828
6,420,629

Gross profit

4,557,063

4,607,199

Selling, general and administrative expenses
Directors’ compensations
Salaries and bonuses
Training expenses
Research and development expenses
Depreciation
Recruiting expenses
Other

112,383
1,168,878
27,19685,43983,64382,2581,205,463

121,641
1,173,572
48,288
136,766
94,730104,676
1,272,669

2,765,264

2,952,345

1,791,799

1,654,854

264
40

339
34

19,128

6,953

6,577
1,774

1,878

27,785

9,206

1,791
-

132
941

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 losses
Loss on realized foreign currency translation
adjustment
Total extraordinary losses
Profit before income taxes
Total income taxes
Profit(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)

-6-

1,791

1,074

1,817,793

1,662,986

175,312-

175,312-

1,642,481

1,662,986

567,045

507,508

1,075,435

1,155,478

1,063,535
11,9001,147,804
7,673

753,076
1,332
108,883

225,317
(81)
155

76

50

863,368

225,442

1,938,804

1,380,920

Future Corporation (4722): Consolidated Summary Report of Operating Results for the First Quarter of
Fiscal 2020
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-7-

1,926,883

1,373,247

11,921

7,673

Future Corporation (4722): Consolidated Summary Report of Operating Results for the First Quarter of
Fiscal 2020

(3) Notes to quarterly consolidated financial statements(Notes on premise of a going concern)
Not applicable.
(Notes on any significant changes in shareholders’ equity)
Not applicable.
(Segment information, etc.)[Segment information]
I
First three months of the previous consolidated fiscal year (from January 1, 2019 to March
31, 2019)
1. Amount of net sales and income or loss by reportable segment(in thousands of yen)

Reportable segments

Net sales(1) Net sales tooutside clients(2) Inter-segment
sales ortransfer
Total
Segment profit(loss)

IT
Consulting& ServiceBusiness

BusinessInnovation
Business

9,272,620

1,578,229 10,850,850

14,866
9,287,486
1,763,187

Total

3,464

Other
(Note 1)

- 10,850,850

18,331-

1,581,694 10,869,181(66,006)

1,697,180

Total

18,331- 10,869,181(2,087)

1,695,092

Amount onquarterly
Adjustment consolidate(Note 2)d financial
statements(Note 3)

- 10,850,850(18,331)-(18,331) 10,850,850
96,706

1,791,799(Notes) 1. “Other,” a segment not included in the reportable segments, includes securities investment, holding,and management activities.
2. Adjustment to segment profit (loss) represent the amount of inter-segment transactions eliminated andincome and expenses of the holding company excluding the technology segment.
3. Segment profit (loss) is adjusted with operating income in quarterly consolidated financial statements.

II

First three months of the consolidated fiscal year under review (from January 1, 2020 toMarch 31, 2020)
1. Amount of net sales and income or loss by reportable segment(in thousands of yen)

Reportable segments

Net sales(1) Net sales tooutsideclients(2) Inter-segment
sales ortransfer

IT
Consulting& ServiceBusiness

BusinessInnovation
Business

9,088,159

1,939,669 11,027,828

6,351

Total

9,094,510

Segment profit(loss)

1,548,056

2,255

Other
(Note 1)

Total

8,606

1,941,925 11,036,435
67,526

1,615,583

Total- 11,027,828

-

8,606

- 11,036,435(3,384)

1,612,198

Amount onquarterly
Adjustment consolidate(Note 2)d financial
statements(Note 3)

- 11,027,828(8,606)-(8,606) 11,027,828
42,655

1,654,854(Notes) 1. “Other,” a segment not included in the reportable segments, includes securities investment, holding,and management activities.
2. Adjustment to segment profit (loss) represent the amount of inter-segment transactions eliminated andincome and expenses of the holding company excluding the technology segment.

-8-

Future Corporation (4722): Consolidated Summary Report of Operating Results for the First Quarter of
Fiscal 2020
3. Segment profit (loss) is adjusted with operating income in quarterly consolidated financial statements.

-9-

Future Corporation (4722): Consolidated Summary Report of Operating Results for the First Quarter of
Fiscal 20203.

Supplementary information
Orders received(in thousands of yen)

IT Consulting & Service
Business

First three months of the previous
consolidated fiscal year
(from January 1, 2019 to March 31,
2019)First three months of theconsolidated fiscal year underreview(from January 1, 2020 to March 31,
2020)

Orders received

Order backlog

Orders received

Order backlog

10,116,580

12,742,761

7,956,502

11,392,066

Business Innovation Business

454,325

379,348589,320

408,086

Total

10,570,905

13,122,109

8,545,823

11,800,153

IT Consulting & Service
Business

Fourth quarter of the previous
consolidated fiscal year
(from October 1, 2019 to December
31, 2019)

First quarter of the consolidated
fiscal year under review(from January 1, 2020 to March 31,
2020)

Orders received

Order backlog

Orders received

Order backlog

10,221,999

12,523,723

7,956,502

11,392,066

Business Innovation Business

538,391

348,079

589,320

408,086

Total

10,760,391

12,871,803

8,545,823

11,800,153- 10 -