Consolidated Summary Report of Operating Results for the First Three Months of Fiscal 2024
(Year Ending December 31, 2024) [Japan GAAP]
April 24, 2024
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:

May 14, 2024

Scheduled date for distributing dividend payments:-

Creation of supplemental material on quarterly financial results: No
Holding of financial results briefing:

Yes (for institutional investors and analysts)(Amount rounded off to million yen)

1.

Consolidated Results for the First Quarter of Fiscal 2024 (January 1, 2024 to March 31, 2024)(1)

Consolidated operating results (accumulated total)
Net sales(Percentage figures indicate year-on-year changes.)

EBITDA*

Profit attributable toowners of parent

Operating income

Million yen%

Million yen%

Million yen%

Million yen%

1Q Fiscal 2024

15,022

7.6

3,730

8.2

3,417

7.8

2,189

(0.2)

1Q Fiscal 2023

13,965

10.8

3,448

(4.6)

3,170

(5.1)

2,193

(8.1)

(Note) Comprehensive income*

1Q Fiscal 2024: 1,690 million yen [(38.4)%]
1Q Fiscal 2023: 2,745 million yen [237.1%]
EBITDA = Operating income + Depreciation + Amortization of goodwill
Profit per shareYen

1Q Fiscal 2024

24.72

1Q Fiscal 2023

24.77

(Note) In the third quarter of FY2023, the Company confirmed the accounting treatment for a business combination that had been provisionallyaccounted for. Figures for the first quarter of FY2023 have been adjusted to reflect the confirmed accounting treatment.

(2)

Consolidated financial position
Total assets

Shareholders’ equity
ratio

Net assets

Net assets per share

Million yen

Million yen%

Yen

1Q Fiscal 2024

87,38851,306

58.7

579.18

Fiscal 2023

66,04351,38777.8

580.10(Reference) Shareholders’ equity
2.

1Q Fiscal 2024: 51,306 million yen

Fiscal 2023: 51,387 million yen

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 2023

-

20.00

-

20.00

40.00

Fiscal 2024

21.00

-

21.00

42.00

Fiscal 2024 (forecast)(Note) Revisions to the most recently announced dividend forecast: None

3.

Projected Consolidated Results for Fiscal 2024 (January 1, 2024 to December 31, 2024)(Percentage figures indicate year-on-year changes.)
Net sales

EBITDA

Profit attributable toowners of parent

Operating income

Million yen%

Million yen%

Million yen%

Million yen%

First six months(accumulated total)

32,100

13.2

7,900

14.1

6,800

7.8

4,600

6.5

Full-year

70,20018.3

17,00013.2

14,650

6.9

9,900

7.4

Profit per share
YenFirst six months(accumulated total)

51.93

Full-year

111.76(Note) Revisions to the most recently announced earnings forecast: Yes

*

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(i) Changes in accounting policies in accordance with revisions of accounting standards: None(ii) Changes in accounting policies other than item 1) above: None(iii) Changes in accounting estimates: None(iv) Retrospective restatements: None(4)

Number of outstanding shares (common stock)(i)

Total outstanding shares as of the endof the period (including treasury
shares)1Q Fiscal 2024

95,328,000 shares Fiscal 2023

95,328,000 shares

Total treasury shares as of the end of
the period

1Q Fiscal 2024

6,744,163 shares Fiscal 2023

6,744,163 shares(iii) Average number of outstanding shares
during the period under review

1Q Fiscal 2024

88,583,837 shares 1Q Fiscal 2023

88,556,048 shares

(ii)

*

This 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 First Quarter under Review ........................................................... 2(1) Explanation of Operating Results ........................................................................................................................................... 2(2) Explanation of the Consolidated Earnings Forecasts and Other Forward-Looking Information ............................................ 3

2.

Quarterly Consolidated Financial Statements and Major Notes.................................................................................................... 4(1) Quarterly consolidated balance sheets .................................................................................................................................... 4(2) Consolidated quarterly statements of income and comprehensive income ............................................................................. 6(First three-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(Segment information) ............................................................................................................................................................ 83.

Supplementary Information ........................................................................................................................................................ 10
Orders received .............................................................................................................................................................................. 10

- 1 -

1.

Qualitative Information Regarding Financial Results for the First Quarter under Review(1) Explanation of Operating Results
Looking at the economic environment during the first three 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 creating new digital services using generative AI,
etc., despite global uncertainty and in an economic environment where ongoing inflation and increases ininterest rates are expected in Japan. Companies are increasing productivity and efficiency as initiatives toaddress the enforcement of the Act on the Arrangement of Related Acts to Promote Work Style Reform andlabor shortages, reviewing overall supply chains and accelerating the use of IT in areas related to ESG and
the SDGs, so lively IT investment continues in all sectors and fields. In terms of individual lifestyles, the useof IT-driven services, such as shopping at e-commerce sites, enjoying entertainment and sports on video andonline, and accessing education and self-development services online, has become common, and various
related services are being created.
Working against this backdrop, as a result of making progress with large-scale projects that will contributeto medium- to long-term growth, net sales for the first three months of the current fiscal year totaled 15,022
million yen (up 7.6% year on year), operating income was 3,417 million yen (up 7.8% year on year), andprofit attributable to owners of parent came to 2,189 million yen (down 0.2% year on year) because anegative corporate tax adjustment that increased in association with a review of future subtracted temporary
differences in the same period of the previous fiscal year, was not present this term.
Details of the performance (net sales and operating income) of each segment are as follows.
(i)

IT Consulting & Service Business
Future Architect Inc. (including the Technology Division of Future Corporation) acquired and promoted
a wide variety of customer projects, including projects to promote customer DX and realize greater
work efficiency, such as support for the building of a data management platform to manage data
centrally in a convenience store supply chain, and the introduction of a logistics DX platform combining
a WMS (Warehouse Management System) and AI solution and cloud type warehouse control system
for globally developing logistics companies. With regard to projects using intellectual property that willcontribute to the Company’s medium- to long-term growth, we made steady progress with projects tointroduce next-generation banking systems to regional financial institutions. The first of these is at the
final integration test phase toward release this fiscal year and the second bank is at the development
and test phase. In addition, a project to introduce GlyphFeeds, a content management system (CMS)
for media, a project to introduce FutureApparel, a core platform system for apparel, and others aremaking steady progress. As a result, both net sales and operating income increased year on year. In
addition, we are planning the release of multiple large-scale projects during the fiscal year under review,
so we are strengthening the quality control system further.
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 andoperation services, but hiring costs increased. As a result, net sales increased but operating income
decreased year on year.
At Future One, Inc., although new orders increased due to the deployment of industry-specific sales forthe steel industry, etc., in sales of its original InfiniOne software package, the company’s key product,
due to the impact of large-scale development projects peaking out, both net sales and operating income
decreased year on year.
At YDC Corporation, in addition to the traction of building a SmartFactory that realizes thedigitalization of factory management by using data through DX consulting, etc., for customers centeredon the manufacturing industry, profitability increased as a result of appeals on value to customers
through the execution of DX projects so both net sales and operating income increased year on year.
At dit Co., Ltd., although the sales ratio of security services such as cyber defense exercises and security
consulting increased, orders received did not increase significantly, and hiring costs continued to occur,
resulting in a decline in both net sales and operating income.
As a result, the segment saw both net sales and operating income increase to reach 13,041 million yen(up 6.5% year on year) and 3,533 million yen (up 4.5% year on year) respectively.

- 2 -(ii) Business Innovation BusinessAs part of its management reform initiatives, YOCABITO Co., Ltd., has improved gross margins bymanaging individual products and setting strategic selling prices through the use of digital platforms,
which it has promoted since last fiscal year, and reduced logistics costs by improving the efficiency oflogistics. In addition, as a result of promoting the clearance of apparel products while thoroughlymanaging sales on an item-by-item basis, net sales decreased year on year, but operating loss decreased.
Although sales in the media business fell short of expectations, in addition to Tokyo Calendar Inc.’srevenue from internet services such as Tokyo Calendar Date trending steadily, net sales decreased, but
operating income increased year on year due to improved work efficiency and cost reductions.
In addition to projects introducing FastBiz, a membership management and e-commerce package for
sports teams, to several professional baseball teams, LaiBlitz Inc. also started rolling the package out
to professional soccer teams. Although sales increased, the generation of costs related to the launch of
the esports business incurred, resulting in an increase in net sales but a decrease in operating income
year on year.
CURIOSITY Inc., has made steady progress in store design for overseas luxury brands such as jewelry
and watches. CURIOSITY Inc. was newly consolidated from the second quarter of the previous fiscal
year and its results will make a full-year contribution from the current fiscal year.
As a result, the segment saw both net sales and operating income increase year on year, with net sales
totaling 1,972 million yen (up 13.8% year on year) and an operating loss of 38 million (up from an
operating loss of 175 million yen for the same period last year).
Operating loss under adjustments which post income and expenses of Future Corporation’s holding
company functions and eliminations of intersegment transactions in the reporting segment, was 86
million yen, a decrease of 82 million yen year on year (an operating loss of 4 million yen for the same
period last year). This was mainly due to the recognition of the Company’s expenses related to theacquisition of Revamp Corporation.
(2) Explanation of the Consolidated Earnings Forecasts and Other Forward-Looking Information
At a meeting of the Board of Directors held on April 24, 2024, it was decided to revise the earnings forecasts
for the fiscal year ending December 2024 (January 1, 2024 to December 31, 2024) disclosed when thefinancial results for the fiscal year ended December 2023 were announced on February 6, 2024, based onrecent performance trends and other factors. For details, please refer to “Notice Concerning a Revision to
the Consolidated Earnings Forecasts for the First Six Months (Accumulated Total) and Full-Year”
announced on April 24, 2024.

- 3 -

2.

Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheets(in millions of yen)First quarter of the current
consolidated fiscal year
(March 31, 2024)

Previous consolidated
fiscal year
(December 31, 2023)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade, and contract
assetsSecurities
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 -28,01528,131

10,195

10,936

200
1,160
31
4,637
(3)
44,237

1,426
17
5,303
(2)
45,811

1,869(1,317)552
0
3,115(2,648)
466
1,020

1,933
(1,387)546
0
2,514(1,996)
517
1,065

1,083
3,370
90
1,135
4
5,684

18,866
3,545
68
1,104
10
23,595

13,770
1,205
0
126
(1)
15,10221,806
66,043

15,307
1,383
55
175
(5)
16,915
41,57687,388

Previous consolidated
fiscal year
(December 31, 2023)
Liabilities
Current liabilities
Accounts payable – trade
Current portion of long-term borrowings
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
Long-term borrowings
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-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 5 -(in millions of yen)First quarter of the current
consolidated fiscal year
(March 31, 2024)

1,096
1,604
2,582
277
103
38
5,140
10,842

1,665
2,856
2,523
1,481
1,440
111
11
5,508
15,599

357
3,324
132
3,813
14,65617,143
355
2,847
136
20,482
36,0824,000
8441,537(2,201)
43,4214,000
84
41,955(2,201)
43,838

7,938
(2)
30
7,966
51,38766,043

7,435
0
31
7,467
51,30687,388

(2) Consolidated quarterly statements of income and comprehensive income(First three-month period)

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
Share of profit of entities accounted for using equity
methodExchange gain
Other
Total non-operating income
Non-operating expenses
Loss on investments in investment partnerships
Financial fees
Other
Total non-operating expenses
Ordinary income
Profit before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit(Breakdown)
Profit attributable to owners of parent(in millions of yen)First three months of the previous First three months of the current
consolidated fiscal year
consolidated fiscal year
(From January 1, 2023
(From January 1, 2024
to March 31, 2023)
to March 31, 2024)
13,96515,022
7,315
7,730
6,650
7,292

- 6 -

143
1,534
72
230
61
338
72
190
21
813
3,480
3,170

163
1,714
81
230
101
296
112
242
47
884
3,874
3,417

10

15

2
5
18

36
6
58

15
0
16
3,172
3,172
1,268
(288)
979
2,193

11
220
4
235
3,240
3,240
1,307
(256)
1,051
2,189

2,193

2,189

(in millions of yen)First three months of the previous First three months of the current
consolidated fiscal year
consolidated fiscal year
(From January 1, 2023
(From January 1, 2024
to March 31, 2023)
to March 31, 2024)
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 -

540
4
7

(503)
3
1

(0)

-

551
2,745

(498)
1,690

2,745

1,690

-

-

(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.
(Segment information)[Segment information]
I

I. First three months of the previous consolidated fiscal year (from January 1, 2023 to March 31,
2023)
Information on the amounts of net sales, and profit or loss by reportable segment(in millions of yen)Amount statedin quarterly
Adjustments consolidated
financial(Note 2)statements(Note 3)

Reportable segments
Other(Note 1)IT Consulting& ServiceBusiness

BusinessInnovation
Business(1) Sales to outsideclients

12,231

1,710

13,941

23

13,965-

13,965(2) Intersegment
sales or transfer

12

22

34

97

131

(131)

-

Total

12,243

1,732

13,976120

14,097(131)

13,965

Segment profit (loss)

3,381

(175)

3,206

(31)

3,174

(4)

3,170

Total

Total

Net sales(Note)

1.
2.
3.

“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.
Adjustments to segment profit (loss) represent the amount of intersegment transactions eliminated, and income andexpenses of the holding company excluding the technology segment.
Segment profit (loss) is adjusted with operating income in quarterly consolidated financial statements.

II First three months of the current consolidated fiscal year (from January 1, 2024 to March 31, 2024)
1. Information on the amounts of net sales, and profit or loss by reportable segment(in millions of yen)Amount statedin quarterly
Adjustments consolidated
financial(Note 2)statements(Note 3)

Reportable segments
Other(Note 1)IT Consulting& ServiceBusiness

BusinessInnovation
Business(1) Sales to outsideclients

13,022

1,943

14,96655

15,022-

15,022(2) Intersegment
sales or transfer

18

28

47

117

164

(164)

-

Total

13,041

1,972

15,014172

15,187(164)

15,022

Segment profit (loss)

3,533

(38)

3,495

8

3,504

(86)

3,417

Total

Total

Net sales(Note)

1.
2.
3.

“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.
Adjustments to segment profit (loss) represent the amount of intersegment transactions eliminated, and income andexpenses of the holding company excluding the technology segment.
Segment profit (loss) is adjusted with operating income in quarterly consolidated financial statements.

- 8 -

2.

Information on assets by reportable segment(Significant increase in assets due to acquisition of subsidiary companies)
In association with the acquisition of Revamp Corporation in the “IT Consulting & Services
Business” segment, that company and one of its subsidiaries have been included in the scope of
consolidation and one of its affiliates has become an equity-method affiliate. As a result,segment assets increased by 10,376 million yen in the first quarter of the current consolidated
fiscal year compared to the end of the previous consolidated fiscal year.

3.

Information on impairment loss or goodwill of fixed assets by reportable segment(Significant variations in goodwill)
In association with the acquisition of Revamp Corporation in the “IT Consulting & Services
Business” segment, that company and one of its subsidiaries have been included in the scope of
consolidation and one of its affiliates has become an equity-method affiliate. The increase ingoodwill due to this event was 17,830 million yen during the first quarter of the current
consolidated fiscal year. Goodwill is a tentatively calculated amount because the allocation of
acquisition costs had not been completed as of the end of the first three months of theconsolidated fiscal year under review.

- 9 -

3.

Supplementary Information
Orders received(in millions of yen)

Category

First three months of the previous
consolidated fiscal year
(From January 1, 2023
to March 31, 2023)
Orders received

IT Consulting & Service BusinessBusiness Innovation Business
Total

Category

Order backlog

First three months of the current
consolidated fiscal year
(From January 1, 2024
to March 31, 2024)
Orders received

Order backlog

14,415

16,29014,882

18,522

721

767

1,343

1,847

15,137

17,058

16,22520,369Fourth quarter of the previous
consolidated fiscal year
(From October 1, 2023
to December 31, 2023)
Orders received

Order backlog

First quarter of the current consolidated
fiscal year
(From January 1, 2024
to March 31, 2024)
Orders received

Order backlog

IT Consulting & Service Business

11,055

16,663

14,882

18,522Business Innovation Business

1,185

1,592

1,343

1,847

12,241

18,256

16,22520,369Total- 10 -