Materials for the Briefing on the Financial
Results for the Second Quarter of FY2020
August 4, 2020
Future Corporation(First Section of Tokyo Stock Exchange: 4722)
Copyright © 2020 by Future Corporation

Today's Attendees
Yuki Shingu

Yohei Saito

Board Director,
Future Corporation

Board Director,
Chief Technology Officer,
Future Corporation

President,
Future Architect, Inc.

Tomoko Sumida
Executive Officer, Future Corporation
Shinichi Iwata
Head of Financial & Accounting Group, Future Corporation
Copyright © 2020 by Future Corporation

11. Earnings Results for the First Half of FY2020

2. Topics Related to the First Half of FY2020

3. Plan for FY2020
Copyright © 2020 by Future Corporation

2

1. Earnings Results for the First Half of FY2020

Copyright © 2020 by Future Corporation

3

1. Earnings Results for the First Half of FY2020(i) Earnings Highlights

Consolidated
earnings results
for the first halfof FY2020
IT Consulting &ServiceBusinessInnovation
Inter-segment
adjustment

Net sales were comparable to the level of the previous year, while operating income
and ordinary income decreased, and profit increased.
Net sales
22,135 million yen (0.4% decrease)
Operating income
3,239 million yen (2.9% decrease)
Ordinary income
3,325 million yen (3.4% decrease)
Quarterly profit attributable to owners of parent 2,366 million yen (11.1% increase)
Segment sales and operating income decreased due to lower sales of Future Architect, FutureOne, etc.

Net sales:
18,030 million yen (2.8% decrease)
Operating income: 3,061 million yen (7.5% decrease)*Refer to Appendix (i)eSPORTS and CodeCamp drove the growth in sales. All companies improved operating income/loss.

Net sales:
Operating income:

4,139 million yen (11.4% increase)
209 million yen (-89 million yen for the same period in FY2019)

Net sales:
Operating income:-33 million yen-21 million yen*Refer to Appendix (i)Copyright © 2020 by Future Corporation

4

1. Earnings Results for the First Half of FY2020(ii) Analysis of Earnings Results (Net Sales and Operating Income)*Refer to Appendix(ii)

Compared to the previous six-month period (2H 2019), net sales decreased while operating income
increased.
Operating income margin recovered to the level of the same period of the previous year (1H 2019)
5,000

Net sales
21,18419,00022,21523,174

22,135

4,500

45.0%

(Million yen)

Operating income

40.0%

Operating income
4,000

19,03435.0%

Operating income margin

17,265

3,500

3,212

3,336

3,187

3,239

30.0%

3,000
2,545

2,500
2,000

25.0%

2,612

20.0%

1,912

15.0%

1,500
1,000

13.4%

13.7%

15.2%

15.0%

13.8%

14.6%

11.1%
5.0%

500

2017.1H

2017.2H

2018.1H

2018.2H

2019.1H

2019.2H

2020.1H0

10.0%

2017.1H 2017.2H 2018.1H 2018.2H 2019.1H 2019.2H 2020.1H

0.0%

Copyright © 2020 by Future Corporation

51. Earnings Results for the First Half of FY2020(ii) Analysis of Earnings Results (Balance Sheets)*Refer to Appendix (iii)

Net assets increased from 30,296 million yen at the end of December 2019 to 33,256 million yen.
Balance Sheets(Million yen)

Total assets: 42,984
Total assets: 39,039
Cash anddeposits:
14,929Current assets
other than cash
and deposits:
9,795

Property, plant and equipment: 1,385

Intangible assets: 2,481

Liabilities:
8,742

Net assets:
30,296

Investments andother assets:
10,447

End of Dec. 2019

Cash anddeposits:
15,571
Current assets
other than cash
and deposits:
10,025
Property, plant and equipment: 1,347

Liabilities:
9,727○ Increase/decrease in assets

Increase/decrease in assets:+ 3,945(Major items)
Cash and deposits: +641
Notes and accounts receivable - : -518
tradeWork in process: + 656
Property, plant and equipment:-38
Customer-related assets: -104
Investment securities: +3,259
Deferred tax assets:-3○ Increase/decrease in liabilities

Net assets:
33,256

Intangible assets: 2,347

Investments andother assets:
13,692End of June 2020

Increase/decrease in liabilities(Major items)
Accounts payable - trade
Income taxes payable
Provision for loss on projects
Deferred tax liabilities: + 985: -262: + 143: + 405: + 751○ Increase/decrease in net assets
Increase/decrease in net assets : +2,960(Major items)
Total shareholders’ equity: +707
Valuation difference on: +2,228
available-for-sale securities
Copyright © 2020 by Future Corporation

6

1. Earnings Results for the First Half of FY2020(ii) Analysis of Earnings Results (Cash Flows)
Operating CF

2,721

1H FY2020

Investing CF
1H FY2020-327

Financing CF
1H FY2020-1,753*Refer to Appendix (iv)

○ Breakdown of cash flows from operating activities(Million yen)
Profit before income taxes
3,418
Depreciation
523
Increase (decrease) in provision for loss on projects
405
Decrease (increase) in notes and accounts receivable - trade 518
Decrease (increase) in inventories
-648
Other
-569

Subtotal
Income taxes paid
Interest and dividends

3,647
-998
71

CF from operating activities

2,721○ Breakdown of cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Sales of investment securities
Other

-111
-252
99
-63

CF from investing activities-327○ Breakdown of cash flows from financing activities
Repayment of finance leases
Purchase of treasury shares
Cash dividends paid
Other

-40
-758
-938
-16

CF from financing activities-1,753Copyright © 2020 by Future Corporation

7

1. Earnings Results for the First Half of FY2020(iii) Results by Segment (IT Consulting & Service)
Net sales
18,544

1H FY2019

Future Architect, Inc.
(including Future Corporation’s Technology Division)

Net sales

Operating income

Future Inspace, Inc.
Net sales

Operating income

YDC Corporation
Net sales

Operating income
18,0301H FY2020

3,308

1H FY2019(Million yen)

3,061

1H FY2020

・Net sales decreased due to the postponement of the start in new projects despite an increase in sales fromfinancial institutions that continued to work on improving business efficiency and in orders for core systemenhancements and DX promotion projects from clients conscious of 2025 Digital Cliff.
・Operating income declined due to an increase in costs resulting from the addition of incremental staff to somechallenging existing projects.
・Maintenance and operation service deals for projects set by Future Architect were favorable.
・Both net sales and operating income decreased mainly due to a decrease in new development orders.

Operating income

・Both net sales and operating income increased mainly due to greater sales of its original software, “YDCSONAR,” which integrates and analyzes quality information in the manufacturing industry.

Operating income

・Both net sales and operating income decreased due to a partial delay in delivery in the large-scale SI project,which made it difficult to focus on winning orders for new projects.

FutureOne
Net sales*Refer to Appendix (v)Copyright © 2020 by Future Corporation

8

1. Earnings Results for the First Half of FY2020(iii) Results by Segment (IT Consulting & Service)(Million yen)

Sales trends by industry
Service

1H FY2018

1H FY2019

1H FY2020

Distribution

1,769

3,356

2,830

4,234

(14.5%)(27.5%)(23.2%)(34.8%)

2,668

3,692

2,916

4,496

(19.4%)(26.8%)(21.2%)(32.6%)

2,844

3,727

3,141

3,733

(21.1%)(27.7%)(23.4%)(27.8%)

Finance

Manufacturing

Note 1) Results for Future, Future Architect, Future Inspace and YDC have been combined.
Note 2) Figures for procured goods and the maintenance thereof are not included.
Copyright © 2020 by Future Corporation

91. Earnings Results for the First Half of FY2020(iii) Results by Segment (IT Consulting & Service)(Million yen)

Sales trends by phase
Grand design

1H FY2018

1H FY2019

1H FY2020

DesignDevelopment

1,924

2,879

5,251

2,134

(15.8%)(23.6%)(43.1%)(17.5%)

1,957

2,180

7,044

2,591

(14.2%)(15.8%)(51.2%)(18.8%)

2,501

2,161

5,685

3,097

(18.6%)(16.1%)(42.3%)(23.0%)

Maintenance/Operation

Note 1) Results for Future, Future Architect, Future Inspace and YDC have been combined.
Note 2) Figures for procured goods and the maintenance thereof are not included.
Copyright © 2020 by Future Corporation

101. Earnings Results for the First Half of FY2020(iii) Results by Segment (Business Innovation)
4,000

Operating income

Net sales

4,500*Refer to Appendix (v)4,139

1H FY2019

3,714(Million yen)

1H FY2020

209

3,500
3,000
2,500
2,000

-89
1H FY2019eSPORTSNet sales

Operating income

Tokyo Calendar Inc.
Net sales

Operating income

CodeCamp Inc.
Net sales

Operating income

LaiBlitz, Inc.
Net sales

Operating income

1H FY2020

・Both net sales and operating income increased due to the growth of private brand products resulting from increased
demand for staying home and indoor training associated with the spread of the novel coronavirus as well as therecognition of outdoor product brands and the effect of campaigns at mall stores.
・"Tokyo Calendar Date" and other Internet services performed well and covered the decline in advertising revenues.
Net sales increased, and operating income was posted in contrast to the operating loss recorded in the same periodof the previous fiscal year.
・Both net sales and operating income rose significantly thanks to an increase in the number of individuals taking
online courses during the period when people were asked to refrain from going out due to the novel coronavirus anda move by companies to switch from group training to online courses.
・Both net sales and operating income increased as a result of steady progress in consulting services and cloudservices for several professional baseball teams.

Copyright © 2020 by Future Corporation

11

1. Earnings Results for the First Half of FY2020(iv) Analysis of Changes in Net Sales(Million yen)-513
IT Consulting &Service

0

+424

Other

+9
Adjustments

BusinessInnovation

22,215

22,135(-0.4%)

1H FY2019

1H FY2020
Copyright © 2020 by Future Corporation

121. Earnings Results for the First Half of FY2020(v) Analysis of Changes in Operating Income(Million yen)

-246

+298

IT Consulting & Business Innovation
Service

-11

-137

Other

Adjustments

3,239(-2.9%)

3,336

1H FY2019

1H FY2020
Copyright © 2020 by Future Corporation

13

2. Topics Related to the First Half of FY2020
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Group Synergy in the IT Consulting & Service Business
Order Trends
Introduction and Deployment of Loan Support System for Regional Banks
FUJI: First Phase of Digitalization at Stores and Sales Floors
Leading Gas Retailer: Digital Twin Total Design by IoTMid-Career and New Graduate Recruitment
Enhancing Organizational and Individual Capabilities through Active Communication
Tokyo Calendar Inc.
eSPORTS
CodeCamp
LaiBlitz
Cooperation in Vaccine Development Using AI
Copyright © 2020 by Future Corporation

14

Group Synergy in the IT Consulting & Service Businessi.Lab newly joined the Group and expanded into the business creation and innovation
fields, which contributed to strengthening the synergy among the companies in terms ofexpertise and customer base.
“Create” businesses andservices“Transform” businesses andservices“Protect” businesses
and services

Business andoperational consulting
Distribution,
finance, logistics,
and services
Manufacturing
and logistics

Business creationand innovation

Solution offering-type
consulting

2019
Joined the GroupOperation andmaintenance

ERP and corebusiness
operations

Design andintellectual
property

Security
Copyright © 2020 by Future Corporation15

Order Trends
While there were some customers who curtailed and postponed investment, orders for
grand design projects were received from customers with a strong desire to invest in
business reforms.

Insurance

Banks

Distributors/
Retailers

Real-timearchitecture
Apparelcompanies
Logistics/
Life

Securities
firms

Media
companies
Manufacturing+Temporarystaffing

Drug store

Real estatecompanies

Food
wholesaler

Copyright © 2020 by Future Corporation

16

Introduction and Deployment of Loan Support System for
Regional Banks
Installed "FutureBANK" at The Chiba Bank to improve the efficiency of loan operations.
Successively implementing the system at TSUBASA Alliance banks.

TSUBASA Alliance(Expanded to 4 out of 10 banks)

FutureBANK (Cumulative total of 30 banks at present)
Sales promotion

Selfassessmentof ratings

Examinationof deals

Contract
execution

Postexecution
management

Integrated DB for public relations andlending operations
・ Promoting paperless operations
・ Centralization of operations at headquarters
・ Increase the sophistication and efficiency of
credit review/sales activities

Released in February 2020
Copyright © 2020 by Future Corporation

17

FUJI: First Phase of Digitalization at Stores and Sales Floors
Phase I release in the digitalization of store & sales floor operations that were realized by onsite know-how.
Going forward, AI will be used to promote further efficiency and meet the growing demand for eating at home.

Optimize operations and increase work-style satisfaction
through full digitalization.
Sales planRaw material
order

Cooking andprocessing

Sale

Clearanceand disposal

Validation

Digitalization of expert know-how
Sales plan

・・・

Purchase orderinstructions

Clearance anddisposal

・・・

・・・

・・・

・・・

Delivery results

Cooking/processing
results

Sales results

Disposal results

Raw material inventory

Number of displays

+

AI

AI

Cooking/processi
ng instructions

・・・

Real-time reflection of results
Copyright © 2020 by Future Corporation

18

Leading Gas Producer/Retailer: Digital Twin Total Design by IoT
Optimizing production and delivery by fully utilizing digital technology. Promoting control ofproduction and distribution instructions, equipment control as well as overall architecture design
and implementation, and driving the entire project from the cloud to the field.
Production
plan
Cloud

optimization

optimization

Actual data

Delivery data

Usage data

Delivery
instruction

Remainingbalance data

Production
data

Controlmessage

Production
instruction

Equipment
control

Production
data

Inventory
data

TabletMobileequipment

Production
equipment

Warehouse

Field

Deliveryplan

Delivery data

Delivery vehicle

Meter

Delivery personnel

Recipient

Gas cylinder
Production plant

Distribution base

Copyright © 2020 by Future Corporation

19

Mid-Career and New Graduate Recruitment
Smoothly transitioned to a full online process in March. Actively hiring mid-career
employees and new graduates without being impacted by the novel coronavirus pandemic.
200[Mid-career recruitment]

Promoted referral hiring throughout the Company and increased
the number of referrals from employees.
Formed a promotion team with a plan to hold many seminars inthe second half of the year.

[New graduates]

100

Increased our online events and maintained the number of contacts
even amid the novel coronavirus pandemic.
Both the number of entries and the number of informal job offer
acceptances reached record highs.

[Common]Actively publicizing the attractiveness of culture and people throughour owned media "MIRAIHO."
2018
2019
2020
2021
(Number of informal job offers) Promoting candidates’ and students’ understanding of the Company,
New graduate recruitment
Mid-career recruitment
which has led to a higher acceptance rate of informal job offers
Mid-career recruitment: Number of hires as of July 31 / New graduate
compared to the level last year.
recruitment: Number of hires(Number of persons at Future Corporation and Future Architect, Inc.)

Copyright © 2020 by Future Corporation

20

Enhancing Organizational and Individual Capabilities
through Active Communication
The declaration of a state of emergency has spurred online internal events. Further
enhanced collaboration among employees through remote work.
Online initiation ceremony
 Online initiation ceremony (April & July) Individual presentation final round@Zoom

More "solid" as an organization
Further "ValueUp" as an individual

Delivering message from top management

Management

Voluntary interaction among
employees


Employees



Online welcome party for new
employees
Future Fit (fitness activities)TERACOYA (study meeting)Future Fit

Direct feedback from employees

Flat Online gathering between executives andemployees
 Mid-level staff roundtable discussion(ValueUp Meeting)

Copyright © 2020 by Future Corporation

21

Business Innovation Business - Topics (Recovery of Profitability)

The business posted profit for the first half as profit was recorded every month up until April, althoughalmost all advertising in May and June was put on hold due to the impact of the novel coronavirus.
Net sales grew 12% year on year and operating
income increased significantly by 124 million yen.

Used the marketing platform to link "branding", "attracting
customers" and "Internet services" all together.
Brand: Monthly Magazine "Tokyo Calendar"520

Net sales

40

Operating income

20

500

0

480

Marketing platform

-20

460

Attracting customers: Tokyo Calendar WEB

-40
-60

440

-80

420

-100

Monetizing: Tokyo Calendar Internet Services

-120

400

2019

2020

2019

2020
Copyright © 2020 by Future Corporation

22

Business Innovation Business - Topics(Greater Net Sales due to the Impact of Novel Coronavirus)

Thanks to PB development, net sales and operating income increased 10% and 30%, respectively, year
on year despite the impact of the novel coronavirus.
Net sales increased steadily, driven by reinforced
brand promotion.
Performance remained strong even during the novel
coronavirus pandemic.

Significant growth as a brand.
Nearly doubled from a year
earlier.

Sales remained stable without fallingfrom the previous year’s level while
many brands struggled due to theclosure of campsites.
2019
2020

Jan

Feb

Mar

Apr

May

Jun

Net sales doubled from a year earlier as a result ofbolstering the lineup of brand products and making
the best use of special demand amid low inventory.

The product lineup became
abundant without losing demandsince we had introduced new
products to nurture the brand.

With limited inventory in themarket, sales increased
significantly through inventory
control that maximized thedemand for training at home.

Jan

Feb

2019
2020

Mar

Apr

May

Jun

Copyright © 2020 by Future Corporation

23

Business Innovation Business - Topics(Greater Net Sales due to the Impact of Novel Coronavirus)

Amid the impacts from the novel corona virus, by taking advantage of the characteristics of online
education, the number of users increased for both individual and corporate businesses.
Acquired approximately one year’s worth ofindividual applicants for courses just in the first half,
which contributed to net sales and operating income.

Corporate needs have increased rapidly sinceApril because in-house group training cannot be
conducted.

99.9%
YoY
¥40,000,000
40000¥35,000,000

35000¥30,000,000

30000¥25,000,000

25000¥20,000,000

20000¥15,000,000

15000¥10,000,000

10000¥5,000,000

5000

¥0

0

2017

2018

2019

1H 2020256.30%
YoY

While in normal years, we mainly
conduct training programs in the
April-May period and new orders
cannot be received, new inboundorders increased this year due tothe impact of the novel coronavirus.

20191Q2020
1Q

2Q20202019
2Q

Copyright © 2020 by Future Corporation

24

×Business Innovation Business - Topics(New Service Amid the Novel Coronavirus Pandemic)

While various activities are carried out online due to the novel coronavirus pandemic, new services
were offered, which also led to more inquiries from other fields.

Providing virtual shareholder meeting support services incollaboration with Group companies, utilizing our experience
with our company's shareholders meeting.

A service specializing in general shareholders meetings
expanded to other fields, including use in marketing
seminars and events.

Onlineauthentication
systemGeneral meetingof shareholders

Host

Online tool
education

Attendees

Sales seminar

Panelists
Launching Zoom URL

Shareholder
authentication system

Authentication

Attendance at the general
meeting of shareholders

Entertainment events
Ceremonial occasions

Attendees of the general meeting of shareholders

Copyright © 2020 by Future Corporation25

Cooperation in Vaccine Development Using AI
Supplied AI for enhancing development efficiency to AnGes, Inc., a developer of DNA vaccines.
Using technology to help address social concerns caused by the novel coronavirus.
Development ofantibody-inducible vaccines(2018.8-)[Issue with DNA vaccines]
Large dosage[Solution to issue]
Combined use of antibody-inducible vaccine

AI estimates the peptide (landmark) of the antigen that induces the antibody

Development of DNA vaccines(2020.3-)

Development of"antibody-inducible peptide estimating AI"
Copyright © 2020 by Future Corporation

26

3. Plan for FY2020

Copyright © 2020 by Future Corporation

27

3. Plan for FY2020(i) Full-year Operating Forecast(Million yen)

Plan forFY2020(full-year)

ChangeResults for
1H FY2020(Initial: 4/28)

Plan forFY2020(full-year)(Revised: 7/31)

Net sales

48,30045,000-3,30022,135

49.2%

Operatingincome

7,200

6,500

-700

3,239

49.8%

53.8%

(Operating income
margin)Profitattributable to owners ofparent(Profit margin)(14.9%)(14.4%)(-0.5%)(14.6%)

4,880

4,400

-480

2,366

(10.1%)(9.8%)(-0.3%)(10.7%)

Progress
rate(Post-revisioncomparison)

Copyright © 2020 by Future Corporation28

3. Plan for FY2020(ii) Changes in Net Sales and Operating Income(*After revision of full-year earnings forecast)
12,000Net sales

45,38945,00040,218Operatingincome(Million
yen)
45.0%

Operating income
40.0%

Operating income margin

10,00035.0%36,26533,653
8,000

30.0%
6,523

6,500

25.0%

5,824

6,000

20.0%
4,458
4,000

15.0%

3,642

14.5%
2,000

2016

2017

2018

2019

2020 (Plan)

0

14.4%

14.4%

10.0%

12.3%
10.8%

2016

5.0%

2017

2018

2019

2020 (Plan)

0.0%

Copyright © 2020 by Future Corporation29

3. Plan for FY2020(iii) Dividends
The FY2020 annual dividend is expected to be 40 yen, with the interim dividend being an ordinary dividend of 20 yen per share, an increaseof 2 yen per share, and the year-end dividend being 20 yen per share (as originally planned).
On an annual basis, it is an increase of 1 yen from the previous year (a commemorative dividend of 3 yen was paid last fiscal year tocelebrate the 30th anniversary of the Company’s founding.)

(Yen)
21
yen
21円

17
yen
17円

18
yen
18円

Ordinary 18 yen
Commemorative
3 yen2019 Interim

2019 Year-end

1515円
yen

2018 Interim2018 Year-end

20
yen
20円

20
yen
20円

2020 Interim2020 Year-end (Plan)

Copyright © 2020 by Future Corporation30

Appendix

Copyright © 2020 by Future Corporation31

Appendix. - (i) Future GROUPIT Consulting& Service

Future Architect, Inc.
Future Inspace, Inc.
YDC Corporation
FutureOne, Inc.
Micro CAD Co., Ltd.
dit Co., Ltd.
Innovation Laboratory, Inc.

Future Corporation(Holding company)

BusinessInnovationeSPORTS Co., Ltd.
Tokyo Calendar Inc.
CodeCamp, Inc.
LaiBlitz, Inc.

Future Investment, Inc.
ZEEKSTAR Sports Entertainment, Inc.

(As of June 30, 2020)
Copyright © 2020 by Future Corporation

Appendix - (ii) Analysis of Earnings Results (Comparison of Results)(Million yen)Compared with projected results

Year-on-year comparison

Results for
1H FY2020

Plan for 1H FY2020

Net sales

22,13523,020-3.8%

22,215-0.4%

Operating income

3,239

3,195

+1.4%

3,336

-2.9%

2,366

2,190

+8.1%

2,130

+11.1%(Operating income
margin)Quarterly profit

attributable to owners of parent(Quarterly profit margin)(14.6%)(10.7%)(13.9%)(9.5%)

Rate of change

Results for 1H FY2019(15.0%)(9.6%)

Rate of change

Copyright © 2020 by Future Corporation

33

Appendix - (iii) Balance Sheets(Million yen)

End of June 2020

End of Dec. 2019

ChangeCurrent assets

25,597

24,725+872

Non-current assets

17,387

14,314+3,073

Total assets

39,0396,552+3,945Current liabilities

42,984
6,755

Non-current liabilities

2,972

2,190

+782

Total liabilities

9,727

8,742

+985

Total net assets

33,25630,296+2,960

77.3%

77.6%

Shareholders’ equity ratio+202

End of June 2020 End of Dec. 2019 Change
Current assets:
Cash and deposits
15,571
14,929+641
Notes and accounts receivable - trade
6,568
7,087
-518
Work in process
1,008
351
+656
Non-current assets: Property, plant and equipment
1,347
1,385
-38
Intangible assets (including goodwill)
2,347
2,481
-133
Investment securities
12,038
8,779+3,259Current liabilities:
Provision for loss on projects
660
254
+405
Non-current liabilities: Deferred tax liabilities
2,387
1,635
+751
Net assets:
Valuation difference on available-for-sale securities
6,826
4,598
2,227
Copyright © 2020 by Future Corporation

34

Appendix - (iv) Cash Flows
1H FY2020

1H FY2019

ChangeCash flows from operating activities

2,721

2,247

+473

Cash flows from investing activities

-327

-613

+285

Cash flows from financing activities-1,753-1,266-487

Effect of exchange rate changes on cash and cash
equivalents

1

-7

+ 8

Increase (decrease) in cash and cash equivalents

641

360

+280

Cash and cash equivalents at the beginning of the period

14,92913,908+1,021

Cash and cash equivalents at end of the period

15,571

14,269+1,301(Million yen)

1H FY2020
Operating CF: Profit before income taxes

Investing CF:

1H FY2019

Change

3,418

3,265

+152

Increase (decrease) in provision for loss on projects

405

-12

+417

Decrease (increase) in notes and accounts receivable - trade

518

-413

+931

Decrease (increase) in inventories

-648

3

-652

Purchase of property, plant and equipment

-111

-425

+314

Proceeds from sales of investment securities

99

-

+ 99

-758
-938

-0
-756

-758
-181

Financing CF: Purchase of treasury shares
Cash dividends paid

Copyright © 2020 by Future Corporation

35

Appendix - (v) Results by Segment

1H FY2020

1H FY2019

Net sales

22,13522,215-0.4%

IT Consulting & Service

18,03018,544-2.8%

Business Innovation

4,139

3,714

+16.7%

0

0

-

-33

-43

-

Operating income

3,239

3,336

-2.9%

IT Consulting & Service

3,061

3,308

-7.5%

Business Innovation

209

-89

-

Other

-10

1

-

Adjustments

-21

116

-

(Million yen)

Other
Adjustments

YoY

Copyright © 2020 by Future Corporation

36

Appendix - (vi) -1 Recognition of Backlog (IT Consulting & Service)(1) When making a large, long-term contract, we divide it into two or more parts to manage risk,
and treat only the finalized portion as an order received.

200M in total
Orders received:
50M

Estimate (ii):
100M

Estimate (i):50M

Period-end(2) Each contract’s period and amount differ depending on the portfolio for each phase.
Grand design

Orders received
40M(3 months)

Development

Estimate
60M(3 months)

Orders received
100M(6 months)

Period-end(3) Orders received are recognized based on evidence (contract documents) and are not considered
as such without evidence even if sales are expected to be made.
(4) Unless we can obtain evidence of orders by the respective closing dates, we do not recognize them.
Copyright © 2020 by Future Corporation

37

Appendix - (vi) -2 Relationship between Backlogs and Sales
IT Consulting & Service - Changes in backlogs and sales(Quarterly basis)

Order backlog(Million yen)

Net sales(Million yen)

14,00010,000
Backlog

12,000Net sales

9,000
8,000

10,000

7,000
6,000

8,000

5,000
6,000

4,000
3,000

4,000

2,000
2,000
0

1,000

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

2017

2017

2017

2017

2018

2018

2018

2018

2019

2019

2019

2019

2020

2020

・ As shown in the concept of order backlog on the previous page, the order backlog at the end of the period
does not necessarily correlate with future net sales.

Copyright © 2020 by Future Corporation

038

The summary report of operating results, supplementary materials,
briefing materials and other various IR materials are also available on the
Company’s website.
https://www.future.co.jp/investor_relations/
Investor Relations, Future Corporation
Tel: 03-5740-5724
FAX: 03-5740-5820
E-mail:ir@future.co.jp

This material contains future forecasts made based on currently available information. These forecasts may change 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 material, the figures in the summary report of operating results, etc. that are indicated in units of thousand yen are stated in units of million yen.
Hence, a disparity may be found in some of the totals and differences. For detailed figures, please refer to the summary report of operating results.