April 25, 2013

Consolidated Summary Report of Operating Results for the First Quarter of Fiscal 2013
(Year ending December 2013) [Japan GAAP]
Company name: Future Architect, Inc.
Shares listed on: First Section of Tokyo Stock Exchange
Security code number: 4722
Website: http://www.future.co.jp
Representative: Yasufumi Kanemaru, Chairman and CEO
Contact:
Yoshihiko Nakajima, Executive Officer
Tel.: +81-3-5740-5724
Scheduled submit date of quarterly report: May 14, 2013
Scheduled date for distribution of dividend payments: −Creation of supplemental material on quarterly financial results: No
Holding of quarterly results briefing: No(Amount rounded off to million yen)

1. Consolidated Results for the first Quarter of Fiscal 2013 (January 1, 2013 to March 31, 2013)(1) Consolidated operating results (accumulated total)(Percentages are year-on-year changes)
Net sales

Operating income

Ordinary income

Quarterly net income

Million yen%

Million yen%

Million yen%

Million yen%

1Q, Fiscal 2013

6,337

20.1

581

151.9

683

137.5

467

134.5

1Q, Fiscal 2012

5,274

(10.9)

230(74.2)

287(68.7)

199(66.3)(Reference) Comprehensive income 1Q, Fiscal 2013: 516 million yen (148.5%)
1Q Fiscal 2012: 207million yen (-59.8%)
Quarterly net income per share(fully diluted)

Quarterly net income per share
Yen

Yen

1Q, Fiscal 2013

1,042.52―

1Q, Fiscal 2012438.77―(2) Consolidated financial position
Total assets

Net assets

Million yen

Shareholders’ equity ratio

Million yen

Net assets per share%

Yen

1Q, Fiscal 201315,199

11,79776.7

26,138.95

Fiscal 2012

14,83011,76678.5

25,865.24(Reference) Shareholders’ equity

1Q, Fiscal 2013: 11,664 million yen

Fiscal 2012: 11,645 million yen

2. Dividends
End of the first quarter
dividend
Yen
Fiscal 2012:―

Fiscal 2013―

End of the second
quarter dividend
Yen

Fiscal 2013
(Forecast)

Dividends per share (yen)End of the third quarter
dividend
Yen

Year-end dividend

Total

Yen

Yen

750.00―750.001,500.00

750.00―750.001,500.00

Note: Modification of the projected dividends announced most recently: No
3. Projected Consolidated Results for Fiscal 2013 (January 1, 2013 to December 31, 2013)(% represents change from the previous fiscal year for a “Full year” and changes from the corresponding quarter of the previous fiscal year for “Quarter”)

Net sales
2Q(accumulated)
Full year

Operating income

Million yen%

Net income per
share
Yen

69.7

750

61.7

1,680.74

57.9

1,800

54.1

4,033.78

Ordinary income

Net income

Million yen%

Million yen%

Million yen%

12,250

10.1

1,340

84.9

1,365

25,700

10.0

3,200

65.4

3,250

Note: Modification of the projected consolidated results announced most recently: No

* Notes(1) Changes in significant subsidiaries in the consolidated first quarter under review (Changes in specified subsidiaries thatinvolved changes in the scope of consolidation): No(2) Application of special accounting for the preparation of quarterly consolidated financial statements: Yes
Income taxes and payables are calculated by appropriately estimating the legal effective tax rate after the adoption oftax effect accounting which is to be assessed upon net income before taxes of the consolidated fiscal year including theconsolidated first quarter under review and multiplying such estimated legal effective tax rate to the net income before
taxes of the previous consolidated quarter.
(3) Change in accounting policies or estimates and retrospective restatements
1) Change in accounting policies in accordance with revision of accounting standards: Yes2) Change in accounting policies other than item 1) above: No3) Change in accounting estimates: Yes4) Retrospective restatements: No
Note: For details, please refer to “Change in accounting policies or estimates and retrospective restatements” on page
3 of the accompanying material of the quarterly earnings report.
(4) Number of outstanding shares (common stock)1) Total outstanding shares as of the end of
the period (including treasury stocks)
1Q, Fiscal 2013:
2) Total treasury stocks as of the end of theperiod
1Q, Fiscal 2013:
3) Average number of outstanding stocks
1Q, Fiscal 2013:
during the quarter under review(accumulated period for quarter)

476,640 sharesFiscal 2012:

476,640 shares

30,408 sharesFiscal 2012:

26,408 shares

448,321 shares

1Q, Fiscal 2012:

454,158 shares* Indication of quarterly review procedure implementation status
This quarterly earnings report is exempt from the quarterly review procedures based upon the Financial Instruments and Exchange Act. At the time of thisdocument's release, review procedures for the quarterly financial statements under the Financial Instruments and Exchange Act had not been completed.

* Points to note about the proper use of projections, and other noteworthy events
The above projection, representing our best estimate based on information currently available to us, incorporates uncertain factors. For details of the preconditions
used in making the above-mentioned forecast and other relevant matters, refer to “Qualitative information about consolidated earnings forecast” on page 3 of theaccompanying material of the quarterly earnings report.

 Contents
1. Qualitative information about financial results for the first quarter of the fiscal year under review ................................................ 2(1) Qualitative information about consolidated operating results .................................................................................................. 2(2) Qualitative information about consolidated financial condition ............................................................................................... 2(3) Qualitative information about consolidated earnings forecast .................................................................................................. 3
2. Matters related to summary information (Notes) ............................................................................................................................. 3(1) Changes in significant subsidiaries in the consolidated first quarter under review .................................................................. 3(2) Application of special accounting for the preparation of quarterly consolidated financial statements ..................................... 3(3) Change in accounting policies or estimates and retrospective restatements ............................................................................. 3
3. Quarterly Period Consolidated Financial Statements ....................................................................................................................... 4(1) Quarterly Period Consolidated Balance Sheets ........................................................................................................................ 4(2) Quarterly Period Consolidated Statements of Income and Comprehensive Income................................................................. 6(3) Quarterly Period Consolidated Statements of Cash Flows ....................................................................................................... 8(4) Notes regarding premise of surviving company ..................................................................................................................... 10(5) Notes regarding significant change in shareholders’ equity ................................................................................................... 10(6) Segment information .............................................................................................................................................................. 10
4. Supplemental information ............................................................................................................................................................... 11(1) Orders received ....................................................................................................................................................................... 11-1-

1. Qualitative information about financial results for the first quarter of the fiscal year under review(1)

Qualitative information about consolidated operating results
Consolidated net sales of the Group for the first quarter were ¥6,337 million, up 20.1% from the corresponding period of
the previous fiscal year, operating income was ¥581 million, up 151.9%, and ordinary income was ¥683 million, up
137.5%. Net income increased 134.5% year-on-year to ¥467 million.
During the first quarter of the fiscal year under review, sales increased at the Company and most of its Group companies
against the backdrop of strong orders received that continued from the previous fiscal year, as well as an improvement in
profit and loss. As a result, consolidated earnings including consolidated net sales and operating income grew significantly
from a year earlier.
The details of performance of each business segment, which represent values before adjusting for internal sales or transfers
among segments, are as follows.
In the IT Consulting Business, we steadily advanced large projects involving the renovation and integration of IT systems
in accordance with operational reforms for which we received orders in the previous fiscal year, as well as medium-scale
projects for clients in the financial and manufacturing sectors. In addition, the Company started providing cloud computing
services for financial institutions (SKYBANK), and made steady progress in new strategic fields which it had beenworking on such as global ERP for major corporations. Meanwhile, the Company reviewed some of the projects for which
quality improvement had become an issue and booked additional costs to address it.
As for its overseas business, the Company’s subsidiary in Singapore led to a reduction in quarterly losses, and sales also
increased at its subsidiary in Thailand as last year’s sales promotional activity bore fruit. Consequently, net sales for the
first quarter were ¥4,259 million, up 32.1% from a year earlier and operating income surged 92.0% year-on-year to ¥511
million.
In the Package & Service Business, operations of Ascendia Inc. remained robust although the ratio of outsourcing costslightly increased from a year earlier. In addition, profitability of projects improved at Future One, Inc. as measures forstepping up project management, which it had been implementing since last year, worked successfully. As a result, net
sales were ¥1,060 million, up 8.6% year-on-year, and operating income amounted to ¥44 million, compared to operating
loss of ¥32 million a year ago.
In the Corporate Revitalization Business, the gross profit margin of Uoei Corporation, which operates grocery
supermarkets, improved from a year earlier due to continued use of IT, including automatic order placement and EDI
systems, and increased efficiency of logistics. Meanwhile, Uoei squeezed selling, general and administrative expenses
through an efficient advertising strategy. As a result, net sales were ¥1,127 million, down 2.2% year-on-year, andoperating income was ¥23 million, up 38.4% year-on-year.

(2)

Qualitative information about consolidated financial condition(Assets, liabilities and net asset)
Total assets at the end of the first quarter under review increased by ¥369 million from the end of the previous
consolidated fiscal year to ¥15,199 million. The main underlying factors were increases in cash and deposits (increase of¥179 million from the end of the previous fiscal year) as a result mainly of growth in sales and collection of accounts
receivable and increase in software (increase of ¥122 million from a year earlier) chiefly due to the development ofsoftware for cloud computing services.
Liabilities increased by ¥337 million from the end of the previous consolidated fiscal year to ¥3,401 million. Main factors
included increases in accounts payable (increase of ¥180 million from the end of the previous consolidated fiscal year) as aresult of increases in procuring of goods for sale and in other current liabilities (increase of ¥376 million from a year
earlier).
Net assets increased by ¥31 million from the end of the previous consolidated fiscal year to ¥11,797 million. The main
factors included increases in retained earnings (increase of ¥129 million from the end of the previous consolidated fiscal
year) and in valuation difference on available-for-sale securities (increase of ¥55 million from a year earlier), despite
purchases of treasury stock (decrease of ¥147 million from a year earlier).
(Analysis of cash flows)
Net cash provided by (used in) operating activities was an inflow of ¥793 million (compared to an inflow of ¥46 million in
the previous fiscal year), mainly due to the posting of net income before taxes (quarterly period) of ¥718 million, adecrease in accounts receivable of ¥170 million and an increase in accounts payable of ¥179 million.
Net cash provided by (used in) investing activities totaled ¥156 million of outflow (compared to an outflow of ¥396
million for the corresponding quarter of the previous fiscal year), chiefly due to purchase of tangible fixed assets of ¥75
million and acquisition of intangible fixed assets of ¥138 million.
Net cash provided by (used in) financing activities was ¥455 million of outflow (compared to an outflow of ¥562 million
for the corresponding quarter of the previous fiscal year), mainly due to purchase of treasury stock of ¥148 million anddividends paid of ¥306 million.
As a result of these operating, investment, and financial activities, the balance of cash and cash equivalents at the end of
the first quarter under review was ¥4,366million.

-2-

(3)

Qualitative information about consolidated earnings forecast
We have not changed our previous earnings forecast for the second quarter and the full term of the fiscal year ending
December 2013, which was announced on February 7, 2013.

2. Matters related to summary information (Notes)(1)

Changes in significant subsidiaries in the consolidated first quarter under review
Not applicable(2)

Application of special accounting for the preparation of quarterly consolidated financial statements
Income taxes and payables are calculated by appropriately estimating the legal effective tax rate after the adoption of tax
effect accounting which is to be assessed upon net income before taxes of the consolidated fiscal year including theconsolidated first quarter under review and multiplying such estimated legal effective tax rate to the net income before taxesof the previous consolidated quarter.

(3)

Change in accounting policies or estimates and retrospective restatements
Changes in accounting policies that are difficult to distinguish from changes in accounting estimates(Change in depreciation method)
In accordance with the revision of the Corporation Tax Act of Japan, the depreciation method of the Company and its
domestic consolidated subsidiaries for tangible fixed assets acquired on or after January 1, 2013 has been changed to themethod under the revised act from the first quarter of the fiscal year under review.
The impact of this change on profit and loss is immaterial.

-3-3. Quarterly Period Consolidated Financial Statements(1)

Quarterly Period Consolidated Balance Sheets(in thousands of yen)Previous consolidated
fiscal year
(December 31, 2012)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Investment securities
Merchandise and finished goods
Work in process
Deferred tax assets
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Other
Accumulated depreciation
Other, net
Total tangible fixed assets
Intangible fixed assets
Goodwill
Software
Other
Total intangible fixed 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 fixed assets
Total assets-4-Consolidated first quarter
under review(March 31, 2013)

4,156,343
3,523,351
30,129134,677
33,597
153,662
1,358,569
387,026(6,034)
9,771,322

4,335,807
3,365,813
30,624
138,437
41,181
153,272
1,350,109
472,489(5,342)9,882,392

3,110,805(2,740,590)
370,214
122,868
1,840,525(1,448,329)
392,195
885,279

3,196,255(2,766,213)
430,042
122,868
1,872,640(1,474,799)
397,841
950,752

195,332
836,883
21,817
1,054,032

178,197
959,366
21,681
1,159,244

1,907,516
1,035,870
172,157
61,063(57,052)
3,119,554
5,058,866
14,830,189

2,023,826
1,036,541
141,573
59,685(54,761)
3,206,865
5,316,862
15,199,254

(in thousands of yen)Previous consolidated
fiscal year
(December 31, 2012)
Liabilities
Current liabilities
Accounts payable
Short-term borrowings
Accounts payable-other
Income tax payable, etc.
Reserve for bonuses
Reserve for quality assurance
Reserve for loss on projects
Reserve for office transfer expenses
Other
Total current liabilities
Non-current liabilities
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets-5-Consolidated first quarter
under review(March 31, 2013)

739,873
30,283516,697535,959
116,997
11,275
13,50035,342
747,736
2,747,663

920,397
30,112433,689
252,592
103,213
11,03252,60021,313
1,207,418
3,032,369

304,006
12,269316,276
3,063,940

356,989
12,220369,2103,401,579

1,421,815
2,495,772
9,151,020(1,393,328)
11,675,279

1,421,815
2,495,772
9,280,731(1,540,983)
11,657,336

612(30,532)(29,920)
120,890
11,766,249
14,830,189

56,094(49,396)
6,698
133,639
11,797,674
15,199,254

(2)Quarterly Period Consolidated Statements of Income and Comprehensive Income(First quarter of consolidated fiscal year under review)(in thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Officers’ remuneration
Salaries and bonuses
Employee training expenses
Research & development expenditures
Depreciation
Recruitment expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in income of non-consolidated subsidiaries &
affiliates
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission for purchase of treasury stock
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gains on sale of investment securities
Gain on negative goodwill
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Loss on devaluation of investment securities
Litigation expenses
OthersTotal extraordinary losses-6-

First quarter of previous
consolidated fiscal year
(from January 1, 2012
to March 31, 2012)
5,274,742
3,470,495
1,804,246

First quarter of consolidated
fiscal year under review(from January 1, 2013
to March 31, 2013)
6,337,203
4,160,551
2,176,652

64,719869,898
6,451
2,434
26,42542,910560,605
1,573,445
230,801

74,265
779,676
9,579
10,37624,17063,166
634,069
1,595,305
581,347

1,386
876

747
987

24,84645,237

26,126
5,668
58,904

48,766
7,210
102,950

220
1,647
152
2,021
287,685

101
1,005
12
1,119
683,177—
75,20975,20935,573—35,573—1,275
44,0001,655
46,931

490
—
—
—
490

(in thousands of yen)

Net income before taxes (quarterly period)
Income taxes
Income before minority interests
Minority interests in income
Quarterly net income
Minority interests in income
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of associates
accounted for using equity method
Other comprehensive income
Quarterly comprehensive income(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to minority interests-7-

First quarter of previous
consolidated fiscal year
(from January 1, 2012
to March 31, 2012)
315,963
112,411
203,551
4,279
199,272
4,279
203,551First quarter ofconsolidated fiscal year
under review(from January 1, 2013
to March 31, 2013)
718,260
240,678
477,582
10,196467,385
10,196
477,5824,273
1855,335(21,975)

99
4,391
207,943

5,810
39,171
516,753

202,9225,020

504,003
12,749(3)Quarterly Period Consolidated Statements of Cash Flows(in thousands of yen)

Net cash provided by (used in) operating activities
Net income before taxes (quarterly period)
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in reserve for bonuses
Increase (decrease) in reserve for quality assurance
Increase (decrease) in reserve for loss on projects
Increase (decrease) in reserve for office transfer expenses
Earned interest and dividends
Interest expenses
Equity in losses (income) of subsidiaries & affiliates
Gain on negative goodwill
Loss on retirement of noncurrent assets
Loss (gains) on sale of investment securities
Loss (gains) on valuation of investment securities
Litigation expenses
Decrease (increase) in accounts receivable
Decrease (increase) in inventories
Increase (decrease) in accounts payable
OthersSubtotalInterest and dividends received
Interest paid
Income and other taxes
Net cash provided by (used in) operating activities-8-

First quarter of previous
consolidated fiscal year
(from January 1, 2012
to March 31, 2012

First quarter of consolidated
fiscal year under review

315,963
52,557(2,062)(12,268)(12,869)(4,200)—(2,263)
220(24,846)(75,209)——1,275
44,000309,080(14,041)(3,813)
43,944615,468
2,098(303)(570,439)
46,824

718,260
81,047(2,983)(15,592)(243)
39,100(14,261)(1,735)101(45,237)—490(35,573)——
170,601(11,343)
179,929
238,267
1,300,826
2,135
(101)
(509,231)
793,629(from January 1, 2013
to March 31, 2013

(in thousands of yen)

Net cash provided by (used in) investing activities
Purchase of short-term investment securities
Purchase of tangible fixed assets
Acquisition of intangible fixed assets
Proceeds from sale of investment securities
Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Payments for deposits and guarantee
Proceeds from collection of deposits and guarantees
Proceeds from transfer of business
OthersNet cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term borrowings
Repayment of long-term borrowings
Purchase of treasury stock
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash andcash equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the quarterly period-9-First quarter of previous
consolidated fiscal year
(from January 1, 2012
to March 31, 2012

First quarter of consolidated
fiscal year under review(201,196)(17,858)(139,516)——(75,933)(138,805)
57,240(64,435)(4,408)21,6228,240
750(396,801)

—
(211)
—
—
1,200
(156,510)(2,441)(16,000)(223,307)(320,476)(562,224)(182)—(148,660)(306,838)(455,682)

7,720(904,480)
5,526,311
4,621,830

322
181,759
4,184,672
4,366,431(from January 1, 2013
to March 31, 2013

(4)Notes regarding premise of surviving company
Not applicable(5)

Notes regarding significant change in shareholders’ equity
Not applicable(6)

Segment information
I. First quarter of the previous consolidated fiscal year (from January 1, 2012 to March 31, 2012)
1. Amounts of net sales and income or loss by business segment reported(in thousands of yen)

Business segment reported

Amount Stated in
Quarterly Period
Adjustment Consolidated
Financial(Note 2)
Statements(Note 3)

Others(Note 1)

Total

5,223,149

51,592

5,274,742—

5,274,742

324

129,071—129,071(129,071)—

976,407

1,152,570

5,352,221

51,592

5,403,814(129,071)

5,274,742(32,236)

16,697250,726(27,546)

223,180

7,621

230,801

IT
Consulting
Business

Package &ServiceBusiness

Corporate
Revitalization
Business

Total(1) Net sales tooutside clients

3,214,216

856,686

1,152,246(2) Inter-segment
sales or transfer

9,026

119,720

3,223,243
266,266

Net sales

Total
Segment
income or loss
Notes:

1. “Others,” a segment that is not included in the business segment reported, which includes Internet-related businesses,
publishing business and securities investment, holding, and management activities.
2. “Adjustment” of segment income or loss of ¥7,621 thousand refers to elimination of inter-segment transactions.
3. Segment income or loss is adjusted with operating income in the Quarterly Period Consolidated Statements of Income.
II. First quarter of consolidated fiscal year under review (from January 1, 2013 to March 31, 2013)
1. Amounts of net sales and income or loss by business segment reported(in thousands of yen)

Business segment reported

Amount Stated in
Quarterly Period
Adjustment Consolidated
Financial(Note 2)
Statements(Note 3)

Others(Note 1)

Total

6,246,354

90,8496,337,203—

6,337,203

819

201,657332

201,990(201,990)—

1,060,812

1,127,696

6,448,012

91,1826,539,194(201,990)

6,337,203

44,025

23,107578,428(4,273)574,154

7,192

581,347

IT
Consulting
Business

Package &ServiceBusiness

Corporate
Revitalization
Business

Total(1) Net sales tooutside clients

4,247,980

871,497

1,126,876(2) Inter-segment
sales or transfer

11,522

189,315

Total

4,259,502
511,295

Net sales

Segment
income or loss
Notes:

1. “Others,” a segment that is not included in the business segment reported, which includes Internet-related businesses,
publishing business and securities investment, holding, and management activities.
2. “Adjustment” of segment income or loss of ¥7,192 thousand refers to elimination of inter-segment transactions.
3. Segment income or loss is adjusted with operating income in the Quarterly Period Consolidated Statements of Income.

- 10 -

4. Supplemental information(1)

Orders received(in thousands of yen)

FunctionFirst quarter of previous consolidated fiscal year
(from January 1, 2012
to March 31, 2012)

Orders Rcvd
IT Consulting Business

Orders O/SFirst quarter of consolidated fiscal year under review(from January 1, 2013
to March 31, 2013)

Orders Rcvd

Orders O/S

2,611,241

2,956,177

3,731,572

6,059,985

Package & Service Business

551,272

879,899

698,459

798,809

Others47,343—111,151

33,042

3,209,857

3,836,077

4,541,183

6,891,836

Total- 11 -