Information Meeting For Financial
Results For the Second Quarter of FY2014

July 31, 2014
Future Architect, Inc.
Copyright ©2014 by Future Architect, Inc. Japan

Contents

1. Earnings Results for the Second
Quarter of FY2014
2. Topics Related to the Second
Quarter of FY2014
3. Future Outlook for the Second Halfof FY2014
Copyright ©2014 by Future Architect, Inc. Japan1. Earnings Results for the Second
Quarter of FY2014

Copyright ©2014 by Future Architect, Inc. Japan

Consolidated Earnings Highlights

Future Architect, Inc. which designs management and IT.

・Consolidated net sales(Consolidated net sales reached a record high in the first half of the fiscal year.)

Consolidated net sales grew 20% year-on-year mainly thanks to afavorable performance at Future Architect and Future One and theconsolidation of eSPORTS.

・Consolidated income(Operating income and ordinary income both reached a record high in the first half of the fiscal year.)

Future Architect, Future One, Ascendia, eSPORTS and Brightree saw
their income increase mainly due to increased sales, contributing toconsolidated income.

・Orders received
Orders received remained robust, as orders were received
continuously due to expansion of the client base and enhancement of
the medium- and long-term relationship of mutual trust with clients.
Copyright ©2014 by Future Architect, Inc. Japan-4-

Consolidated Earnings Results for the First Half of FY2014
Future Architect, Inc. which designs management and IT.

(Million yen)

FY2014
Results forthe first halfCompared withprojected results
FY2014
Plan forthe first half

Year-on-year comparison

ChangeFY2013Results forthe first half

Change16,372

16,200+1.1%

13,545+20.9%

1,875
11.5%

1,790

+4.8%

1,570

+19.5%

1,882

1,820

1,697

Ordinary income
margin

11.5%

11.2%

+3.4%

Net income

1,031(*)

1,060

1,037

6.3%

6.5%

-2.7%

Net sales
OperatingincomeOperating income
marginOrdinary
incomeNet income margin

11.0%

11.6%

12.5%

7.7%

+10.9%-0.6%*Income before income taxes and minority interests increased from the corresponding period of the previous fiscal year in the first half of 2014. However, net income,which takes taxes into consideration, decreased year on year, partly because the tax burden was small in the first half of 2013. This is because loss carried over asa result of a merger with a subsidiary was taken over.
Copyright ©2014 by Future Architect, Inc. Japan-5-

Consolidated Balance Sheets(Million yen)

Future Architect, Inc. which designs management and IT.

End of Jun. 2014

End of Dec. 2013

Current assets

14,408

13,978+430

Non-current assets

5,092

5,246

-153

Total assets

19,501

19,225+276

Current liabilities

4,392

4,809

-417

Non-current liabilities

1,405

1,367

+37

Total liabilities

5,797

6,177

-379

Total net assets

13,703

13,047+656

Shareholders’ equity ratio

69.4%

67.1%

+2.3pts

End of Jun.
2014

Main changes(Million yen)

Current
assets:Non-current
assets:Current
liabilities:
Net assets:

Copyright ©2014 by Future Architect, Inc. Japan

ChangeEnd of Dec.
2013

ChangeIncrease in cash and deposits

7,507

6,892

+614

Decrease in accounts receivable-trade

3,909

4,330

-421

692

823

-131

Decrease in accounts payable - trade

1,369

1,660

-290

Increase in retained earnings

11,18010,506+674

Decrease in goodwill-6-

Consolidated Cash Flows

Future Architect, Inc. which designs management and IT.

FY2014 results
for the first half

FY2013 results
for the first half

Net cash provided by (used in) operating activities

1,184

1,638

-453

Net cash provided by (used in) investing activities(196)(1,072)+876

Net cash provided by (used in) financing activities

(362)

(488)

+125

Effect of exchange rate change on cash
and cash equivalents

37

27

+9

Increase (decrease) in cash and cash
equivalents

662

105

Cash and cash equivalents at beginning of theperiod

6,892

4,184

Cash and cash equivalents at end of theperiod

7,555

4,290

(Million yen)

Main changes(Million yen)

ChangeFirst half of FY2014 First half of FY2013
Operating CF: Decrease (increase) in notes and accounts
receivable - trade
Increase (decrease) in notes and accounts
payable - trade
Income taxes paid
Investing CF: Purchase of shares of subsidiaries
Proceeds from collection of lease andguarantee deposits
Financing CF: Purchase of treasury shares

Copyright ©2014 by Future Architect, Inc. Japan-7-

Change

393

(104)

+497

(285)
(1,078)
0
-

277
(515)
(999)
153
(148)

-563
-563
+999
-152
+148

Consolidated Results by Segment(Million yen)

Net Sales
IT Consulting
Package & Service
New Media & Web Service
Corporate Revitalization
Other
Adjustments

Operating Income
IT Consulting
Package & Service
New Media & Web Service
Corporate Revitalization
Other
Adjustments
Copyright ©2014 by Future Architect, Inc. Japan

Future Architect, Inc. which designs management and IT.

FY2014 results
for the first half

FY2013 results
for the first half

Year-on-yearchange16,372

13,545+20.9%

9,959
2,515
1,967
2,249
(318)

9,321
2,148
182
2,257
(365)

+6.8%
+17.1%+975.3%
-0.4%
-

1,875

1,570

+19.5%

1,664
211
(20)
3
0
16

1,388
127
(8)
46
(0)
17

+19.8%+66.1%-92.8%--8-

Consolidated Orders Received and Backlog by Segment
Future Architect, Inc. which designs management and IT.

Orders received(Million yen)BacklogFirst half of
FY2014First half of
FY2013Year-on-yearchangeFirst half of
FY2014First half of
FY2013Year-on-yearchangeIT Consulting Business

9,952

9,652

+3.1%

6,827

6,929

-1.5%

Package & Service
Business

2,551

1,932

+32.1%

1,515

1,096

+38.3%

138192(27.8%)

20

22-11.7%

12,643

11,777

+7.4%

8,363

8,048

+3.9%

New Media & Web Service
Business
Total

Note: eSPORTS and Uoei are not included in the above table, since they are not engaged in production on orders.

Copyright ©2014 by Future Architect, Inc. Japan-9-

Trends of Half-Yearly Consolidated Results
Future Architect, Inc. which designs management and IT.

14,000Orders
受注高 received
Backlog
受注残高

Net sales
Operating income

12,00010,000

8,000

6,000

4,000

2,000

0
2012.1H 2012.2H 2013.1H 2013.2H 2014.1H

Copyright ©2014 by Future Architect, Inc. Japan- 10 -

Results by Segment (IT Consulting Business)
Future Architect, Inc. which designs management and IT.

 Future Architect saw sales increase as both the number and scale of projects expanded.
Its operating income also increased mainly thanks to the effect of improvement ofcapacity utilization rate and a decline in selling, general and administrative expenses.
 With regard to business in Southeast Asia, the number of clients increased in eachcountry, and earnings in Malaysia and Thailand grew.
Trends of net sales and operating income
12,00010,000Net sales
売上高
Operating
営業利益 income
9,321

9,959

Trends of orders received and backlog
2,400

12,0002,000

10,000

1,600

8,000

9,952

9,652

Orders
受注高
received
受注残高
Backlog

1,664
8,000

1,388

6,000

1,200

6,000

4,000

800

4,000

2,000

400

2,000

0

0
First2013年上期
half of FY2013

Copyright ©2014 by Future Architect, Inc. Japan

6,929

6,827

0

First2014年上期
half of FY2014First2013年上期
half of FY2013- 11 -First2014年上期
half of FY2014

Results by Segment (Package & Service Business)
Future Architect, Inc. which designs management and IT.

 Future One saw an increase in both sales and income mainly thanks to
upgrading due to the impetus of the revision of the consumption tax rate, in
addition to the start of operations of multiple principal projects.
 Operating income margin of Ascendia improved as the start and acceptanceinspection of projects proceeded favorably.
Trends of orders received and backlog

Trends of net sales and operating income
3,000

Net sales
売上高
Operating income
営業利益

300

3,000

2,515
250

2,500

2,000

200

2,000

1,500

150

2,500

2,148

Orders
受注高 received
Backlog
受注残高

2,551

211

127

1,932
1,515

1,500
1,096

1,000

100

1,000

500

50

500

0

0

0

First2013年上期
half of FY2013

Copyright ©2014 by Future Architect, Inc. JapanFirst2014年上期
half of FY2014First 2013年上期
half of FY2013- 12 -First2014年上期
half of FY2014

Results by Segment (New Media & Web Service Business)
Future Architect, Inc. which designs management and IT.

 eSPORTS saw both sales and income remain strong due to the success of purchaseand sale of a fitness product (“WONDER Core”) before it becomes a trend, in addition torobust online sales of sports and outdoor gear.
 Tokyo Calendar saw its deficit increase temporarily because of prior investment in new
online services/renewal of magazines, which will be released in the second half of theyear.
Trends of net sales and operating
income at eSPORTS

Trends of net sales and operating
income at Tokyo Calendar

Net sales
Operating income

First half of FY2013

First half of FY2013

First half of FY2014

Net sales
Operating income

First half of FY2014

Note: Figures of eSPORTS for the first half of 2013 are those before it was turned into a subsidiary. Amortization of goodwill is not taken into consideration to
make conditions the same.
Copyright ©2014 by Future Architect, Inc. Japan- 13 -

Result by Segment (Corporate Revitalization Business)
Future Architect, Inc. which designs management and IT.

 Sales remained almost unchanged from the previous year mainly thanks tomeasures including effective use of store space, despite price hikes following
the increase in the consumption tax rate.
 Operating income decreased due to an increase in selling, general andadministrative expenses, reflecting a rise in personnel expenses and a hike inpower rates, etc.
Trends of net sales and operating income

2,500

2,257

2,249

2,000

100
Net sales
売上高
Operating
営業利益
income

1,500

80

60
46

1,000

40

500

20
3

0

0
First2013年上期
half of FY2013

Copyright ©2014 by Future Architect, Inc. JapanFirst2014年上期
half of FY2014- 14 -

2. Topics Related to the Second
Quarter of FY2014
Consolidated Analysis of Changes in Net Sales
Consolidated Analysis of Changes in Operating
IncomeSales Analysis of IT Consulting Business: nonconsolidated
Consolidated Trends of Net Sales of
Subsidiaries
Press Releases in the First Half of the Year
(Extracts)
Copyright ©2014 by Future Architect, Inc. Japan

Consolidated Analysis of Changes in Net Sales
Future Architect, Inc. which designs management and IT.

(Million yen)

Increase in net
sales of Future
Architect: +634

Increase in net salesof Package & Service
Business: +367

Decrease in net
sales of Corporate
Revitalization
Business: -8
Difference between“adjustments” of the firsthalf of 2014 and those of
the corresponding periodof the previous year: +46

Increase in net
sales ofeSPORTS: +1,834

13,545

Increase in net
sales of IT
Consulting
Business other than
Future Architect: +3

Decrease in net
sales of Tokyo
Calendar: -49

First half of FY2014First half of FY2013
Copyright ©2014 by Future Architect, Inc. Japan

16,372(+20.9%)- 16 -

Consolidated Analysis of Changes in Operating Income
Future Architect, Inc. which designs management and IT.

Increase in operating
income of Future
Architect: +271

Increase in operating
income of Package &Service Business: +84

Decrease in operating
income of Corporate (Million yen)
Revitalization
Business: -42

Increase inoperating incomeof eSPORTS: +51
Increase inoperating income of
IT Consulting
Business other than
Future Architect: +3

Decrease inoperating income ofTokyo Calendar: -63

1,875(+19.5%)

1,570First half of FY2013
Copyright ©2014 by Future Architect, Inc. Japan

Difference between“adjustments” of the firsthalf of 2014 and those of
the corresponding periodof the previous year: -1

First half of FY2014- 17 -

Sales Analysis of IT Consulting Business: non-consolidated (1/3)
Future Architect, Inc. which designs management and IT.

Trends of sales by industry

First halfof FY2012

1,720(28.1%)First halfof FY2013

1,876(24.0%)

1,309(16.7%)

1,803(20.9%)

1,567(18.1%)First halfof FY2014

1,885(30.8%)

Service

Copyright ©2014 by Future Architect, Inc. Japan

1,614(26.4%)

894(14.6%)

2,087(26.6%)

2,565(32.7%)

2,915(33.8%)

Distribution

Financial- 18 -

2,348(27.2%)

Manufacturing

Sales Analysis of IT Consulting Business: non-consolidated (2/3)
Future Architect, Inc. which designs management and IT.

Trends of sales by phase

First halfof FY2012

First halfof FY2013

First halfof FY2014

1,483(24.3%)

793(13.0%)

2,483(31.7%)

1,019(13.0%)

3,286(37.7%)

168（2.7%)

1,217(15.5%)

2,940(37.5%)

3,387(38.8%)

498(5.7%)

Grand design

Copyright ©2014 by Future Architect, Inc. Japan

1,091(17.8%)

2,579(42.2%)

Design- 19 -Development

Maintenance/
operation

176(2.3%)

1,221(14.0%)

Others241(2.8%)

Sales Analysis of IT Consulting Business: non-consolidated (3/3)
Future Architect, Inc. which designs management and IT.

Trends of sales composition ratios by scale of project
10,000
9,000
8,000

10億円超
Over 1,000 million yen
5億円超〜10億円以下Over 500 million yen to less than 1,000 million yen
1億円超〜5億円以下Over 100 million to less than 500 million yen
Less than 100 million yen
1億円以下

30.0%
33.5%

7,000
6,000

33.0%
5,000

63.8%
64.7%

35.2%
8.2%

4,000
3,000

38.4%
2,000

8.3%

9.9%

43.2%

17.7%

22.7%

9.2%
1,000

17.8%
0

First half of2010年上期
FY2010

Copyright ©2014 by Future Architect, Inc. Japan

18.5%

20.4%

First half of2011年上期
FY2011

2012年上期
FY2012First half of- 20 -

13.4%

12.0%

First half of2014年上期
FY20142013年上期
FY2013First half ofConsolidated Trends of Net Sales of Subsidiaries
Future Architect, Inc. which designs management and IT.

(Million yen)
8,000

Up 41.2%

7,000
6,000

Up 15.1%eSPORTS

5,000

LSC

4,000

Tokyo Calendar
Uoei

3,000

NCG Group
Ascendia

2,000

FutureOne

1,0000First half of FY2012

Copyright ©2014 by Future Architect, Inc. JapanFirst half of FY2013- 21 -First half of FY2014

Press Releases in the First Half of the Year (Extracts)
Future Architect, Inc. which designs management and IT.

• Provision of “Xronos,” Cloud Computing for PACS (LSC)• Provision of “ICT-Moral,” Cloud Computing-Based Learning Service for
Corporations (Ascendia)• Receipt of “Best CRM Strategic Partner Award 2013” of SAP (NCG Thailand)• Construction of Sales and Financing Support System for the Joyo Bank, Ltd.
(Future Architect)• Innovation of Mission-Critical System for ORBIS Inc. (Future Architect)• Construction of Big Data Analysis Infrastructure for Sagawa Express Co., Ltd.
(Future Architect)

Copyright ©2014 by Future Architect, Inc. Japan- 22 -

Provision of “Xronos,” Cloud Computing for PACS
Future Architect, Inc. which designs management and IT.

• Life Science Computing Corporation (LSC) stores filmed medical images on
the cloud.
• The images can be interpreted twenty-four hours a day using notebook PCs,
iPad and iPhone via the Internet.
• The service is linked seamlessly with the “OpenDolphin” cloud electronic
medical chart of LSC.
• The service conforms to the securities guidelines of relevant ministries andgovernment offices.
LSC Cloud PACSLSC Cloud PACS
Double storage

Summary of thesystem(Plan H)

Data Center 2

Data Center 1

Medical treatment site
outside hospital
Cloud

Notebook PC
Temporarystorage

Temporarystorage

Storage of filmed data

Advance downloadingat the time of acceptance

Xronos server

Various types of modality

Consulting room

Acceptance

Cloud

Consulting roomPC

Copyright ©2014 by Future Architect, Inc. Japan- 23 -

PC for acceptanceProvision of Cloud Computing-Based Learning Service for Corporations
Future Architect, Inc. which designs management and IT.

• Ascendia started “ICT-Moral” cloud computing-based e-learning service for corporations.
• Teaching materials in the form of case study, concerning information security andinformation morality• Educational know-how, which had been implemented for 200 educational institutions andover 10,000 students and staffers, has been turned into a cloud computing-based service.

Content 2: Virus Part

Copyright ©2014 by Future Architect, Inc. Japan

Content 3: SNS Part

- 24 -

Content 4: Copyright Part

Receipt of “Best CRM Strategic Partner Award 2013” of SAP
Future Architect, Inc. which designs management and IT.

• NCG Thailand won “Best CRM Strategic Partner Award 2013” of SAP AG.
• Quality of projects to introduce customer relationship management (CRM)
solutions of SAP to numerous clients in the petroleum and gas industries
and contributions to clients are highly valued by SAP.
• NCG Singapore, NCG Malaysia and NCG Thailand all have been certified
as SAP Global Partner concerning introduction of ERP of SAP.

Copyright ©2014 by Future Architect, Inc. Japan- 25 -

Construction of Sales and Financing Support System for the Joyo Bank, Ltd.
Future Architect, Inc. which designs management and IT.

• Business process reengineering (BPR) of sales and financing clerical work andinnovation of systems• Integration of a dozen systems covering processes from management of projects to
execution of loans• Realization of real-time linkage with accounting systems• High-quality introduction procedures based on SKYBANK solutions

Rule-basedengineCopyright ©2014 by Future Architect, Inc. Japan

To indicate and guidenecessary tasks
and formats
according to projects
Negotiation history
Transactions with otherfinancial institutions
Financial statements,
etc.

Task andformat control- 26 -

Post management

Execution

Voucher
Linkage with host
Linkage of execution
information with the
hostApproval for
execution

Examination anddecision□□■□□■

To notify a sales
scenario based on
customer informationand trends oftransactions
Attributes ofclients
Transfer offunds
Trends oftransactions

Preparation of
written contract andvoucher(automatic)

Writtencontract
Preparation ofrequest for
decision

Person in charge

Acceptanceof project

Client“Qualitative improvement of sales
activities”
Provision of information aggregation andawareness“Improvement of efficiency of clericalwork”
Realization of one-stop handling ofbusiness processes

Innovation of Mission-Critical System for ORBIS Inc.
Future Architect, Inc. which designs management and IT.

• Business process reengineering (BPR) of cosmetics EC mission-critical systems andinnovation of systems• Unified integration and real-time management of sales, logistics and accounting datafrom multiple channels, including EC, stores, call centers and fax• Realization of “one-to-one” marketing by collecting individual needs of each client andreflecting them in prices and through other measures

Fulfillment system (EC back office + mission-critical system)

Store system

Store

Master system

Logistics system

Accounting system

Customer management

Warehouse andlogistics management

Own EC site

Order receiving( Web/Mobile )ClientCommon interface

Product management
Order receiving( Web/Mobile )Promotion management

ArrivalClaim (accounts
receivable)
Claim (accounts
payable)Shipping

Accounting

Ordering system

Various types

ClientOrder receiving
management
Order placement
management

Product
Promotion

OrderplacementEC mall

Order receiving
Inventory

Catalogue, fax, IVR

Copyright ©2014 by Future Architect, Inc. Japan

Wholesalemanagement

Loyalty Marketing, Inc.

Financial institution

Credit card company

Sales management
Store
Wholesale

Delivery company

Common interface

Corporate site

Mobile Web system

Store management

Manufacturer

Common interface

Sales
registration

Convenience store

Information system

Letter system

Headquarters- 27 -POP system

Accounting system Personnel affairs and salary system

Construction of Big Data Analysis Infrastructure for Sagawa Express Co., Ltd.
Future Architect, Inc. which designs management and IT.

• Data analysis infrastructure for improvement of customer services and management
reform• Management analysis system that visualizes business earnings structure, covering ahuge amount of stored data and giving maximum consideration to protection of
personal information• About 1.2 billion pieces of delivery data are targeted.
> Processing 5 billion transactions per month> Data capacity of over 70 terabytes> About 10 times higher performance than that ofconventional databases> Security of expandability concerning processing
capability and data capacity> Composed of only commercially available H/W,
not using dedicated H/W

To support decision
making of management

Big data analysis
infrastructure

Deliveryroute

Copyright ©2014 by Future Architect, Inc. Japan- 28 -

Sales

Expenses…

3. Future Outlook for the Second
Half of FY2014

Copyright ©2014 by Future Architect, Inc. Japan

Measures for the Second Half of FY2014
Future Architect, Inc. which designs management and IT.

• Achievement of Plan for the Full Fiscal
Year• Toward Growth in the Next Fiscal Year

Copyright ©2014 by Future Architect, Inc. Japan- 30 -

Achievement of Plan for the Full Fiscal Year
Future Architect, Inc. which designs management and IT.

(Million yen)

Full-year
forecast for
FY2014Compared with the first half
(progress)
FY2014
Results for the
first half

Achievement
rate

Compared with the previous
fiscal year
Full-year
results for
FY2013

ChangeNet sales

33,40016,37249.0%

30,049+11.1%

Operatingincome

4,000

1,875

3,352

12.0%

11.5%

46.9%

+19.3%

4,040

1,882

3,454

12.1%

11.5%

46.6%

2,280

1,031

2,027

6.8%

6.3%

45.2%

Operating income
marginOrdinary
incomeOrdinary income
marginNet income
Net income margin

Copyright ©2014 by Future Architect, Inc. Japan- 31 -

11.2%

11.5%

6.7%

+17.0%+12.4%

Toward Growth in the Next Fiscal Year
Future Architect, Inc. which designs management and IT.

New Media & Web Service (Next-generation EC business)Tokyo
CalendareSPORTS…

Next-generation IT platform

Package & Service (Future One: focused businesses)
Overseas
packageintroduction
service

Own package
introduction
service

Domestic
packageintroduction
service

IT Consulting (Future Architect: core businesses)
Grand design• Business reform• IT organizational
reformCopyright ©2014 by Future Architect, Inc. Japan

Maintenance andoperation ofsystems

Systeminnovation(Including near-shore andoff-shore operation)(Including near-shore andoff-shore operation)- 32 -

Data centers &cloud computing
services• Operation-specific modelFuture Architect, Inc. which designs management and IT.

You can also check the summary report of operating results,
supplementary materials, briefing materials and other various IR
materials on the Company’s website.
http://www.future.co.jp/ir/
Investor Relations, Future Architect, Inc.
Tel: +81-3-5740-5724
Fax: +81-3-5740-5820
E-mail：ir@future.co.jp
The forecasts in this material are based on currently available information; actual results may differ from such forecasts
depending on the future direction of the Japanese economy and the IT service industry. It should be noted that the Company does
not guarantee or promise the accuracy of these forecasts.
In this materials, the figures in the summary report of operating results, etc., described in units of thousand yen, are stated in unitsof million yen. Hence, disparity may be found in some of totals and differences. For detailed figures, please refer to the summary
report of operating results.

Copyright ©2014 by Future Architect, Inc. Japan- 33 -