Consolidated Summary Report of Operating Results for the Third Quarter of Fiscal 2023
(Year Ending December 31, 2023) [Japan GAAP]
October 25, 2023
Company name:

Future Corporation

Listing: Tokyo Stock Exchange

Securities code:

4722

URL: https://www.future.co.jp

Representative:

Yasufumi Kanemaru, Chairman and President

Contact:

Yasukazu Matsushita, Executive Officer

TEL: 03-5740-5724

Scheduled date for filing the quarterly report:

November 14, 2023

Scheduled date for distributing dividend payments:-

Creation of supplemental material on quarterly financial results:

No

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

1.

Consolidated Results for the Third Quarter of Fiscal 2023 (January 1, 2023 to September 30, 2023)(1)

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

Net sales

3Q Fiscal 2023
3Q Fiscal 2022
(Note) Comprehensive income

Profit attributable to owners ofparentOperating income

Million yen%

Million yen%

Million yen%

44,222

11.6

10,383

10.9

7,119

(1.1)

39,614

10.7

9,361

43.0

7,195

54.7

3Q Fiscal 2023:
3Q Fiscal 2022:

7,521 million yen [76.9%]
4,252 million yen [(31.6)%]

Profit per shareYen

3Q Fiscal 2023

80.38

3Q Fiscal 2022

81.26

(2)

Consolidated financial position
Total assets

Shareholders’ equity
ratio

Net assets

Net assets per share

Million yen

Million yen%

Yen

3Q Fiscal 2023

63,55848,86476.9

551.62

Fiscal 2022

57,97644,82977.3

506.23(Reference) Shareholders’ equity(Note)

2.

3Q Fiscal 2023:
Fiscal 2022:

48,864 million yen
44,829 million yen

The Company applied provisional accounting for a business combination for the third quarter of the fiscal year ending December 31, 2023.
Each figure for the fiscal year ended December 31, 2022 is the figure reflecting the provisional accounting.

Cash dividends
Dividends per share
End of firstquarter

End of second
quarter

End of third
quarter

End of fiscal year

Total

Yen

Yen

Yen

Yen

Yen

Fiscal 2022

-

17.00

-

20.00

37.00

Fiscal 2023

-

20.00

20.00

40.00

Fiscal 2023 (forecast)(Note)

Revisions to the most recently announced dividend forecast: None

3.

Projected Consolidated Results for Fiscal 2023 (January 1, 2023 to December 31, 2023)(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

59,50010.7

13,800

12.9

9,660

4.6

109.08

Revisions to the most recently announced earnings forecast: None

*

Notes

(1)

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

(2)

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

(3)

Changes in accounting policies or estimates and retrospective restatements
1)
Changes in accounting policies in accordance with revisions of accounting standards: Yes
2)
Changes in accounting policies other than item 1) above: None
3)
Changes in accounting estimates: None4)
Retrospective restatements: None
(Note)(4)

Number of outstanding shares (common stock)
1)*

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.

Total outstanding shares as of the endof the period (including treasury
shares)3Q Fiscal 2023

95,328,000 shares Fiscal 2022

95,328,000 shares

2)

Total treasury shares as of the end of
the period

3Q Fiscal 2023

6,744,159 shares Fiscal 2022

6,771,952 shares

3)

Average number of outstanding shares
during the period under review

3Q Fiscal 2023

88,570,135 shares 3Q Fiscal 2022

88,542,082 sharesThis 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.

○ 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 sheet ...................................................................................................................................... 4(2) Quarterly consolidated 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) ............................................................................................................................................................ 9(Business Combinations) ........................................................................................................................................................ 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 fiscal year under review, 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, persistent inflation, and the increase of overseas interest rates. Companies are revamping their work
styles and overall supply chains following the enforcement of the Work Style Reform Law, and accelerating theuse of IT in areas related to ESG and the SDGs. These things boost IT investments in all sectors and fields. 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,
has become common, and various related services are being created.
Working against this backdrop, we won contracts from customers in a wide range of industries and madeprogress with large-scale projects that would contribute to medium-term growth. As a result, consolidated net
sales of the Group for the first nine months of the current fiscal year totaled 44,222 million yen (up 11.6% year
on year) and operating income was 10,383 million yen (up 10.9% year on year). On the other hand, profit
attributable to owners of parent decreased slightly to 7,119 million yen (down 1.1% year on year), mainly due
to the recording of gain on sale of investment securities as extraordinary income in the previous quarter.
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) continued to move ahead
with various projects of customers in a wide range of industries and won contracts with them. They include
designs of platforms for integrated data management of procurement, manufacturing, and quality control in
the retail industry, renovations of mission-critical systems in the apparel industry, grand designs foradvancing DX of a newspaper company group, and designs/development relating to the revamping of
mission-critical systems and IT infrastructures in the food wholesaling and public service industries. In
addition to that, the company made steady progress with the projects to introduce next-generation banking
systems to regional financial institutions. The first one is at the final integration test phase toward release in
the next fiscal year and the second one for another bank is at the developmental phase. These projects willcontribute to the company’s medium-term growth. The Company also provided DX assistance to various
companies in the logistics and other industries. Furthermore, as a result of ensuring quality control in
implementing projects, its net sales and operating income increased year on year.
Future Inspace, Inc. performed steadily in development for system infrastructure renewal and cloud
migration projects from existing customers, in addition to the provision of regular maintenance and operation
services. As a result, net sales and operating income increased year on year.
Future One, Inc. worked on boosting orders for the sale of its original InfiniOne software package, thecompany’s key product, through industry-specific sales strategies, mainly in the steel industry. On the other
hand, orders received were sluggish due to a slowdown of IT investment by SMEs following theimplementation of the invoice system in Japan (a consumption tax system that started in October 2023). As
a result, net sales and operating income decreased year on year.
YDC Corporation saw continuous steady progress in developing new customers as well as expanding
existing customers while developing their demands, particularly in the manufacturing industry. In addition
to these traditional SI, it enjoyed an increase in orders led by the strategic planning phase, such as missioncritical system renovation and grand design consultation for the SmartFactory concept. In addition, net sales
and operating profit increased year on year mainly due to an increase in license sales of YDC SONAR®.
Orders for cybersecurity-related services of dit Co., Ltd., such as vulnerability assessment, incident response,and network security solutions, were slower than planned despite an increase in new project acquisition, andin terms of product sales, no orders were received in large-scale projects. While recruiting costs were also
incurred continuously, net sales and operating income declined year on year.
As a result, the segment saw both net sales and operating income increase to reach 38,067 million yen (up12.5% year on year) and 10,631 million yen (up 7.0% year on year) respectively.
(2) Business Innovation Business
YOCABITO Co., Ltd. saw a recovery in gross margin ratio as it cleared its slow-moving inventories to acertain extent, and utilized a digital platform to implement per-product appropriate profit management,
product renewal and removal, and strategic sales price setting, etc., but saw net sales and operating income
decrease year on year due to continued stagnant sales in its outdoor business in the fiercely competitive- 2 -market.
While Tokyo Calendar Inc. saw a robust stream of revenue from magazines and advertising sales get on arecovery track, net sales increased but the operating income fell year on year due to costs relating to thedevelopment of its new service Gourmet Calendar.
While CodeCamp Co., Ltd. saw a decrease in sales from individual customers due to the reduction ofadvertisements, it continued to enjoy an uptick in its corporate training business. In addition, as a result of
appropriate cost control, the company saw an increase in net sales and operating income year on year.
LaiBlitz, Inc. steadily worked on new development projects in the construction and restaurant industries,
and more additional functional development for a sports team that introduced a packaged membershipmanagement service called FastBiz and a data analysis system called Fastball, leading to a year-on-yearincrease in both net sales and operating income.
As a result, the segment saw an increase in net sales and a decrease in operating income year on year, with
net sales totaling 6,061 million yen (up 2.6% year on year) and an operating loss standing at 323 million yen(down from an operating loss of 307 million yen for the same period last year).
Operating income under adjustments which post income and expenses of Future Corporation’s holding
company functions and eliminations of intersegment transactions in the reporting segment, was 199 million
yen, an increase of 440 million yen year on year (up from an operating loss of 240 million yen for the same
period last year). This was mainly due to the increased technical support fees that Future Corporation
received through its IT consulting and services business.
(Note) Segment results mentioned above are before adjustment for intersegmental sales or transfers.

- 3 -

2.

Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheet(in millions of yen)Previous consolidated
fiscal year
(December 31, 2022)
AssetsCurrent assets
Cash and deposits
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
Technology-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, 2023)

26,652

24,731

8,549

10,104

1,000
1,116
22
1,498
(3)
38,835

500
1,346
18
4,764
(3)
41,4601,815(1,142)673
0
3,107(2,703)
404
1,078

1,858
(1,235)623
0
3,302(2,878)
423
1,047

401
2,992
56
322
5
3,777

1,131
3,649
111
1,166
4
6,062

12,856
1,188
244
(4)
14,284
19,14057,976

13,593
1,199
2
193
(2)
14,98722,09763,558(in millions of yen)Previous consolidated
fiscal year
(December 31, 2022)
Liabilities
Current liabilities
Accounts payable – trade
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
Asset retirement obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
CapitalCapital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
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, 2023)

1,067
1,810
2,280
250
60
37
4,354
9,860

1,642
1,197
2,266
1,379
93
4,612
11,191

356
2,798
130
3,285
13,146

357
2,998
146
3,501
14,6934,000
3735,858(2,210)37,6854,000
84
39,434(2,201)
41,318

7,123

7,507

(5)
25
7,143
44,82957,9762
35
7,546
48,86463,558

(2) Quarterly consolidated 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
Other salaries
Rents
Training expenses
Research and development expenses
Depreciation
Recruiting expenses
Amortization of goodwill
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Dividend income
Share of profit of entities accounted for using
equity method
Other
Total non-operating income
Non-operating expenses
Loss on investments in investment partnerships
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit(Breakdown)
Profit attributable to owners of parent

First nine months of the previous
consolidated fiscal year
(from January 1, 2022
to September 30, 2022)
39,614
19,702
19,912First nine months of the current
consolidated fiscal year
(from January 1, 2023
to September 30, 2023)
44,222
22,706
21,515

425
4,466
223
713
531
626
320
577
7
2,659
10,551
9,361

473
4,751
238
706
620
938
299
730
116
2,258
11,132
10,383

187

160

42

36

10
240

55
252

4
4
9,596

15
3
18
10,617

732
732

-

10
10
10,319
3,590
(466)
3,124
7,195

10,617
3,763
(265)
3,497
7,119

7,195

7,119

- 6 -

(in millions of yen)First nine months of the previous First nine months of the current
consolidated fiscal year
consolidated fiscal year
(from January 1, 2022
(from January 1, 2023
to September 30, 2022)
to September 30, 2023)
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 -(2,962)
3
15

384
7
10

0

(0)

(2,942)
4,252

402
7,521

4,252

7,521

-

-

(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 Fair Value Measurement, etc.)
The Group has applied the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, June 17, 2021) from the beginning of the first quarter of thecurrent fiscal year, and it has applied the new accounting policy provided for by the Implementation
Guidance on Accounting Standard for Fair Value Measurement prospectively in accordance with thetransitional measures provided for in paragraph 27-2 of the Implementation Guidance on AccountingStandard for Fair Value Measurement. This change 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, 2022 to September 30,
2022)
1. Information on the amounts of net sales, and profit or loss by reportable segment
Reportable segments
IT Consulting Business& Service
Innovation
Business
Business

Total

Other
(Note 1)

Total

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

Net sales(1) Sales to outside
33,736
5,856
39,59321
39,61439,614clients(2) Intersegment sales
98
52
151
284
435
(435)
or transfer
Total
33,835
5,909
39,744305
40,050(435)
39,614
Segment profit (loss)
9,938
(307)
9,631
(29)
9,601
(240)
9,361
(Notes)1. “Other” is a segment for operations not included in reportable segments. The segment covers an operation businessof a handball team, and investment in, holding of, and management of securities.
2. Adjustments to segment profit (loss) represent the amount of intersegment transactions eliminated, and income andexpenses of the holding company excluding the technology segment.
3. Segment profit (loss) is adjusted with operating income in quarterly consolidated financial statements.

II

First nine months of the current consolidated fiscal year (from January 1, 2023 to September 30,
2023)
1. Information on the amounts of net sales, and profit or loss by reportable segment
Reportable segments
IT Consulting Business& Service
Innovation
Business
Business

Total

Other
(Note 1)

Total

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

Net sales(1) Sales to outside
38,018
5,947
43,965257
44,22244,222clients(2) Intersegment sales
49
114
163
376
539
(539)
or transfer
Total
38,067
6,061
44,129633
44,762(539)
44,222
Segment profit (loss)
10,631(323)
10,308(125)
10,183
199
10,383(Notes)1. “Other” is a segment for operations not included in reportable segments. The segment covers an operation businessof a handball team, and investment in, holding of, and management of securities.
2. Adjustments to segment profit (loss) represent the amount of intersegment transactions eliminated, and income andexpenses of the holding company excluding the technology segment.
3. Segment profit (loss) is adjusted with operating income in quarterly consolidated financial statements.

(Business Combinations)
Provisional accounting pertaining to business combination
The Company applied provisional accounting for the business combination with CURIOSITY inc.
implemented on April 21, 2023, for the second quarter of the fiscal year ending December 31, 2023,
and finalized the accounting for the third quarter under review.
Due to the finalization of this provisional accounting, the amount of goodwill calculated tentatively of
1,553 million yen decreased by 707 million yen to 846 million yen. The decrease of goodwill is mainly
due to an increase in customer-related assets of 105 million yen, technology-related assets of 914
million yen, and deferred tax liabilities of 312 million yen.
Amortization period is 8 years for goodwill, 2 years for customer-related assets, and 10 years fortechnology-related assets.

- 9 -

3.

Supplementary Information
Orders received

Category

First nine months of the previous
consolidated fiscal year
(from January 1, 2022 to September 30,
2022)(in millions of yen)First nine months of the current
consolidated fiscal year
(from January 1, 2023 to September 30,
2023)

Orders received

Orders received

Order backlog

Order backlog

IT Consulting & Service Business

37,90515,80542,252

18,339Business Innovation Business

1,729

352

3,559

1,680

39,635

16,15745,811

20,020

Total

Category

Second quarter of the current
consolidated fiscal year
(from April 1, 2023 to June 30, 2023)
Orders received

Order backlog

Third quarter of the current
consolidated fiscal year
(from July 1, 2023 to September 30, 2023)
Orders received

Order backlog

IT Consulting & Service Business

12,61016,741

15,225

18,339Business Innovation Business

1,542

1,377

1,295

1,680

14,152

18,118

16,52020,020Total- 10 -