July 28 2017

Consolidated Summary Report of Operating Results for the Second Quarter of Fiscal 2017
(Year ending December 2017) [Japan GAAP]
Company name:

Future Corporation

Shares listed on: First Section of Tokyo Stock Exchange
Security code number 4722
Website: http://www.future.co.jp/hd
Chairman and CEO:Yasufumi Kanemaru, Chairman and President

Contact:

Yoshihiko Nakajima, Executive OfficerTel.:+81-3-5740-5724

Scheduled submit date of quarterly report: August 10, 2017
Scheduled date for distribution of dividend payments: September 21, 2017
Creation of supplemental material on quarterly financial results:

No

Holding of quarterly results briefing: Yes (for institutional investors and securities analysts)(Amount rounded off to million yen)

1. Consolidated Results for the Second Quarter of Fiscal 2017 (January 1, 2017 to June 30, 2017)(Percentages are year-on-year changes)(1) Consolidated operating results (accumulated total)
Net sales
Million yen

Quarterly profit
attributable to owners ofparentOperating income% Million yen%

Million yen

%

1,487
1,129

31.7
(5.7)

2Q, Fiscal 201717,265
0.2
1,912
(1.3)
2Q, Fiscal 2016
17,225
1.1
1,937
(7.5)
(Note) Comprehensive income 2Q, Fiscal 2017: 1,405 million yen (15.1%)
2Q, Fiscal 2016: 1,220 million yen (-4.3%)
Quarterly profit per
share
Yen

2Q, Fiscal 2017
2Q, Fiscal 2016

33.26
25.26

(2) Consolidated financial position
Total assets
Million yen

2Q, Fiscal 2017
Fiscal 2016
(Reference) Shareholders’ equity

Net assets
Million yen

24,28918,411
23,063
17,331
2Q, Fiscal 2017: 18,122 million yen

Shareholders’equity ratio

Net assets per share
%

Yen

74.6
405.3775.0
387.04
Fiscal 2016: 17,302 million yen

2. Dividends
Dividends per share (yen)End of the first End of the second End of the third
quarter dividend quarter dividend quarter dividend
Yen

Yen

Yen

Fiscal 2016
12.50
Fiscal 2017
13.00
Fiscal 2017 (Forecast)(Note) Modification of the projected dividends announced most recently: No

Year-end
dividend

Total
Yen

Yen

12.50

25.00

13.00

26.00

3. Projected Consolidated Results for Fiscal 2017 (January 1, 2017 to December 31, 2017)(Percentages are changes from the previous fiscal year for a “Full year”)

Net sales
Million yen

Operating income%

Million yen%

Profit attributable toowners of parent
Million yen

Profit per share%

Yen

Full year
36,830
9.4
4,500
23.5
2,735
23.8
(Note) Modification of the projected consolidated results announced most recently: No

61.18

* Notes(1) Changes in significant subsidiaries in the consolidated second quarter under review (Changes in specified
subsidiaries that involved changes in the scope of consolidation): Yes

New: 1 company (company name) YDC Corporation

Excluding: - companies (company names)(2) Application of special accounting for the preparation of quarterly consolidated financial statements: No(3) Change in accounting policies or estimates and retrospective restatements
1) Change in accounting policies in accordance with revision of accounting standards: No2) Change in accounting policies other than item 1) above: Yes3) Change in accounting estimates: No4) Retrospective restatements: No(4) Number of outstanding shares (common stock)1) Total outstanding shares as of the endof the period (including treasury
2Q, Fiscal 2017:
shares)2) Total treasury shares as of the end of
2Q, Fiscal 2017:
the period
3) Average number of outstanding
2Q, Fiscal 2017:
stocks during the quarter underreview(accumulated period for quarter)

47,664,000
shares2,958,872
shares44,705,128
sharesFiscal 2016:
Fiscal 2016:
2Q, Fiscal 2016:

47,664,000
shares2,958,872
shares44,705,166
shares* This quarterly financial results report is not subject to quarterly review procedures.
* Points to note about the proper use of projections, and other noteworthy events
The earnings forecasts and other information concerning the future contained in these materials are based on
information currently obtained by the Company and on certain premises the Company judges to be rational. The
Company does not intend to guarantee their achievement. Actual results may differ significantly from forecasts due tovarious uncertain factors.

 Contents

1. Qualitative information about consolidated operating results for the second quarter cumulative period of the fiscal year underreview ............................................................................................................................................................................................... 2(1) Explanation on operating results............................................................................................................................................... 2(2) Explanation on qualitative information about consolidated earnings forecast .......................................................................... 2
2.

Quarterly Period Consolidated Financial Statements and Related Notes ........................................................................................ 4(1) Quarterly Period Consolidated Balance Sheets......................................................................................................................... 4(2) Quarterly Period Consolidated Statements of Income and Comprehensive Income ................................................................. 6(First half period) ..................................................................................................................................................................... 6(3) Quarterly Period Consolidated Statements of Cash Flows ....................................................................................................... 8(4) Notes to quarterly consolidated financial statements .............................................................................................................. 10(Notes regarding the premise of surviving company) ............................................................................................................. 10(Notes regarding significant change in shareholders’ equity) ................................................................................................. 10(Changes in accounting policies) ............................................................................................................................................ 10(Additional information)......................................................................................................................................................... 10(Segment information)............................................................................................................................................................ 11

3. Supplemental information............................................................................................................................................................... 12
Orders received ............................................................................................................................................................................... 12-1-

1. Qualitative information about consolidated operating results for the second quarter cumulative period of
the fiscal year under review(1) Explanation on operating results
Consolidated net sales of the Group for the first six months were ¥17,265 million, up 0.2% from the corresponding period of
the previous fiscal year and operating income was ¥1,912 million, down 1.3%. Quarterly profit attributable to owners of parent
increased 31.7% year-on-year to ¥1,487 million.
(i) IT Consulting & Service Business
Future Architect Inc. saw sales growth in new large-scale projects ordered by retailers, newspaper companies, and logistics
companies, while it worked on the development of financial cloud computing systems to support customer relations and lending
activities in multiple banks in the Tokyo metropolitan area, as well as the project for renewing transaction systems in a foreign
currency trading company. However, the company underwent a year-on-year decline both in net sales and operating income
overall because of the completion of a project which had accounted for a significant portion of net sales in the same period of
fiscal 2016.
FutureOne Inc. marked significant growth in both net sales and operating income year-on-year, attributable to a boost in
license sales of in-house package software to external partners, as well as the launch of projects ordered from a larger number of
medium-sized companies, compared with the same period of the previous fiscal year.
As a result, the IT Consulting and Service Business posted net sales of ¥14,288 million (up 14.7% year-on-year), andoperating income of ¥2,050 million (up 2.4% year-on-year).
(ii) New Media & Web Service BusinesseSPORTS Co., Ltd. posted a 13.8% increase year-on-year in net sales, due mainly to sales of private brand products centeredon outdoor goods and fitness training products, whereas operating income declined due to factors including lower gross profit
margin and increased transport costs.
Tokyo Calendar Inc. saw a boost in net sales from web-based advertisement with a surge in monthly page views from 30
million as of December 31, 2016 to 40 million as of June 30, 2017, resulting from the effectiveness of in-house video content. In
addition, sales in magazines gained momentum in the second quarter under review. As a consequence, the company posted a
35.6% increase year-on-year in net sales, contributing to a reduction in net loss.
CodeCamp Inc. logged a 41.1% increase year-on-year in net sales, attributed to continued growth in sales of online
programming education services, and strong sales performance in engineer cultivation and employment assistance programs forjob seekers. However, upfront investments in recruitment of personnel, advertisement expenses, etc. kept the company at an
operating loss.
As a result, the New Media & Web Service Business posted net sales of ¥3,088 million (up 18.7% year-on-year) and an
operating loss of ¥175 million (against a loss of ¥152 million a year earlier).
(Note) Segment business results stated in the paragraphs above are before adjustment for internal sales and transfers among
segments.
Effective April 1, 2016, the Company shifted to a holding company structure to realign its organizational platform.
Accordingly, starting from the second quarter of the previous fiscal year, we migrated to a method of: 1) recording, as costs
under segment income adjustment, Group operation costs which were previously included in the costs of the IT Consulting
Business; and 2) recording business outsourcing service fees and group growth subsidies received from individual Future Group
companies as income under segment income adjustments. In addition, from the first quarter of the fiscal year under review, theGroup integrated “IT Consulting Business” and “Package & Service Business” into “IT Consulting & Service Business.”
Year-on-year changes were calculated for comparison upon adjusting the values for the previous fiscal year’s second quarter
cumulative period for the revised reporting segment categorization and measurement methods.
(2) Explanation on qualitative information about consolidated earnings forecast
Forecasts for consolidated earnings results for the full fiscal year ending December 2017 remain unchanged
from those announced in the Consolidated Summary Report of Operating Results for the First Quarter as of-2-

April 28, 2017.

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2. Quarterly Period Consolidated Financial Statements and Related Notes(1) Quarterly Period Consolidated Balance Sheets
Previous consolidated
fiscal year
(December 31, 2016)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Deferred tax assets
Accounts receivable - other
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
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-(in thousands of yen)
Consolidated second quarter
under review(June 30, 2017)

11,761,815
4,242,997
1,800
796,354
59,435
197,714
1,549,740
554,818(5,022)
19,159,655

8,989,879
4,746,837
1,800
855,017
311,007
241,657
1,461,624
1,211,499(5,018)17,814,304

855,840(674,904)
180,935
5,430
1,840,179(1,618,314)
221,864
408,230

1,034,928(804,182)
230,7455,430
2,460,481(1,744,582)
715,898
952,074

350,312333,201
18,855702,369

1,565,961
838,265
17,8582,422,085

1,409,923
1,168,231
191,330
89,011(64,950)
2,793,545
3,904,145
23,063,800

1,706,996
1,204,322
141,721109,239(61,422)
3,100,856
6,475,016
24,289,321

Previous consolidated
fiscal year
(December 31, 2016)
Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term loans payable
Accounts payable - other
Income taxes payable
Provision for bonuses
Provision for quality assurance
Provision for loss on projects
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital 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
Non-controlling interests
Total net assets
Total liabilities and net assets-5-(in thousands of yen)
Consolidated second quarter
under review(June 30, 2017)866,932
795,562
883,527
197,318
90,593
1,863
35,763
1,586,389
4,457,951

679,207
6,000
1,417,545
288,208
185,431
39,9607,600
1,926,719
4,550,673

1,000,000
259,509
15,097
1,274,607
5,732,558

1,013,000
298,226
16,4201,327,647
5,878,320

1,421,815
2,507,763
14,802,799(1,499,494)
17,232,883

1,421,815
2,507,763
15,731,100(1,499,494)
18,161,184

63,691402
5,798
69,892
28,466
17,331,242
23,063,800

50,15987(89,205)(38,958)
288,775
18,411,001
24,289,321

(2) Quarterly Period Consolidated Statements of Income and Comprehensive Income(First half period)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Directors’ compensations
Salaries and bonuses
Training expenses
Research and development expenses
Depreciation
Recruiting expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Total non-operating expenses
Ordinary income-6-First half of the previous
consolidated fiscal year
(from January 1, 2016
to June 30, 2016)
17,225,656
10,501,832
6,723,824(in thousands of yen)First half of the consolidated
fiscal year under review(from January 1, 2017
to June 30, 2017)17,265,055
10,239,028
7,026,026

192,385
2,043,355
162,462
120,675
37,112
145,723
2,084,688
4,786,402
1,937,421

221,696
1,906,975
193,735
170,837
33,288
188,9222,398,091
5,113,547
1,912,478

1,355
31,873605
57,754133,099

57,22452,318

11,984102,438

7,110
250,8883,709
136,020
139,729
1,900,130

3,312
3,312
2,160,055

(in thousands of yen)First half of the consolidated
fiscal year under review(from January 1, 2017
to June 30, 2017)

First half of the previous
consolidated fiscal year
(from January 1, 2016
to June 30, 2016)
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on change in equity
Loss on valuation of investment securities
Loss on sales of shares of subsidiaries and associates
Total extraordinary losses
Quarterly profit before income taxes
Income taxes
Quarterly profit(Profit attributable to)
Quarterly profit attributable to owners of parent
Quarterly profit (loss) attributable to non-controllinginterests
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
Quarterly comprehensive income(Comprehensive income attributable to)
Quarterly comprehensive income attributable to ownersof parent
Quarterly comprehensive income (loss) attributable tonon-controlling interests-7--76,71076,7101,270
18,885808
20,963
1,879,166
754,852
1,124,314

2,236,765
736,1131,500,652

1,129,243

1,487,115(4,928)13,536(15,456)(1,753)
114,116(18,166)(11)(94,927)

(395)

4,282

96,5101,220,825(108,822)
1,391,829

1,229,157

1,378,263(8,332)

13,566

(3) Quarterly Period Consolidated Statements of Cash Flows(in thousands of yen)First half of the consolidated
fiscal year under review(from January 1, 2017
to June 30, 2017)

First half of the previous
consolidated fiscal year
(from January 1, 2016
to June 30, 2016)
Net cash provided by (used in) operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for quality assurance
Increase (decrease) in provision for loss on projects
Interest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using
equity method
Loss (gain) on change in equity
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sales of shares of subsidiaries andassociates
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxed paid
Net cash provided by (used in) operating activities-8-

1,879,166
201,301643(38,423)
7,105(33,228)
3,709

2,236,765
254,605(10,271)(11,887)(50,633)
5,737(58,359)
3,312(57,224)(52,318)

1,270
18,885(76,710)-808-

1,130,070

209,787(158,279)(103,602)
132,654
2,984,857
33,230(3,709)(1,238,116)
1,776,262(31,067)(433,782)(368,794)
1,616,382
78,134(3,321)(1,283,388)
407,806

(in thousands of yen)First half of the consolidated
fiscal year under review(from January 1, 2017
to June 30, 2017)

First half of the previous
consolidated fiscal year
(from January 1, 2016
to June 30, 2016)
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Payments for sales of shares of subsidiaries resulting inchange in scope of consolidation
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Other
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Repayments of long-term loans payable
Purchase of treasury stock shares
Cash dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net 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-(103,508)(19,657)(3,891)
100,000(308,509)(423,274)(35,536)(299,900)
91,160-(1,681,201)(3,770)-(6,703)376
2,400(34,755)(19,515)
106,825
3,545(2,566,404)(18,000)(66)(603,050)(61,922)(683,039)(1,500)(558,771)(49,210)(609,481)(5,285)(3,856)

1,053,182
9,757,026
10,810,208(2,771,936)
11,761,815
8,989,879

(4) Notes to quarterly consolidated financial statements(Notes regarding the premise of surviving company)
Not applicable.
(Notes regarding significant change in shareholders’ equity)
Not applicable.
(Changes in accounting policies)(Change in the method of calculating tax expenses)
Formerly, tax expenses were calculated by making a rational estimate of an effective tax rate after the application oftax-effect accounting profit before income taxes of the consolidated fiscal year and then multiplying the effective tax rate by
the quarterly profit before income taxes. From the first quarter of the fiscal year under review, the Company began employing
the same method as used at the end of the fiscal year. The change aims to more accurately reflect tax expenses corresponding
to the quarter in response to the adoption of the consolidated taxation system, with the Company as the taxable parent
company.
As the impact of this change is slight, the change has not applied retrospectively.
(Additional information)(Application of “Implementation Guidance on Recoverability of Deferred Tax Assets”)
The Company has applied “Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26,
issued on March 28, 2016) from the first quarter of the fiscal year under review.
(Adoption of consolidated taxation system)
From the first quarter of the fiscal year under review, the Company and some of its consolidated subsidiaries have adopted
the consolidated taxation system with the Company as the taxable parent company.

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(Segment information)
I. Second quarter of the previous consolidated fiscal year (from January 1, 2016 to June 30, 2016)
1. Amounts of net sales and income or loss by business segment reported(in thousands of yen)
Reportable segments
New
Media
& Web
ServiceBusiness

IT
Consulting& ServiceBusiness
Net sales
Net sales tooutside12,355,259
clients
Inter-segment
sales or
98,426transfer
Total

Corporate
Revitalization
Business

2,601,582

2,268,814 17,225,656

Adjustment(Note 2)

17,225,656-

17,225,656

102,218-

102,218(102,218)-

2,272,449 17,327,874-

17,327,874(102,218)

17,225,656

3,634

2,601,739

Total

-

157

12,453,685

Others(Note 1)

Total

Amount on
Quarterly Period
Consolidated
Statements ofIncome (Note 3)

Segment
2,001,213 (152,976)
23,722 1,871,959 (11,446) 1,860,512
76,9081,937,421
income (loss)(Notes)1. “Others,” segments not included in the reportable segments, include securities investment, holding, and management
activities.
2. Adjustment of segment income (loss) represents the amount of inter-segment transactions eliminated and income andexpenses of the holding company.
3. Segment income (loss) is adjusted with operating income in the Quarterly Period Consolidated Statements of Income.
II. Second quarter of consolidated fiscal year under review (from January 1, 2017 to June 30, 2017)
1. Amounts of net sales and income or loss by business segment reported(in thousands of yen)
Reportable segments
IT Consulting& ServiceBusiness
Net sales
Net sales tooutsideclients
Inter-segment
sales ortransfer
Total

New Media& Web
ServiceBusiness

Others(Note 1)

Total

Total

Amount on
Quarterly Period
Consolidated
Statements ofIncome (Note 3)

Adjustment(Note 2)

14,189,580

3,075,474

17,265,055-

17,265,055-

17,265,055

98,511

12,836111,348-111,348(111,348)-

14,288,092

3,088,311

17,376,403-

17,376,403(111,348)

17,265,055

Segment
2,050,155(175,349)
1,874,805(29,664)
1,845,140
67,337
1,912,478
income (loss)(Notes)1. “Others,” segments not included in the reportable segments, include securities investment, holding, and management
activities.
2. Adjustment of segment income (loss) represents the amount of inter-segment transactions eliminated and income andexpenses of the holding company.
3. Segment income (loss) is adjusted with operating income in the Quarterly Period Consolidated Statements of Income.

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2. Matters related to changes in reportable segments(Changes in reportable segments)(1) Effective April 1, 2016, the Company shifted to a holding company structure to realign its organizational platform.
Accordingly, starting from the second quarter of the previous fiscal year, we migrated to a method of: 1) recording, as
costs under segment income adjustment, Group operation costs previously included in the costs of the IT Consulting
Business; 2) recording business outsourcing service fees and group growth subsidies received from individual FutureGroup companies as income under segment income adjustment.
Using the opportunity of making YDC Corporation a consolidated subsidiary, the Company reviewed the
management structure to take advantage of the holding company structure introduced during the previous period andstrengthen collaboration among the IT-related business subsidiaries. Therefore, from the first quarter of the fiscal year
under review, the former “IT Consulting Business” and “Package & Service Business” have been consolidated into asingle segment renamed “IT Consulting & Service Business.”
The segment information for the second quarter of the previous fiscal year is prepared and disclosed based on therevised reportable segment categorization and calculation methods.
(2) As of September 7, 2016, the Group sold all the shares of Uoei Corporation that were formerly categorized into the“Corporate Revitalization Business.” As a result, the segment was excluded from the reportable segments from thefirst quarter of the fiscal year under review.
3. Information about losses from impairment of non-current assets by reportable segment, goodwill, etc.
(Material changes in the amount of goodwill)
For the IT Consulting & Service Business segment, the Company has acquired shares of YDC Corporation and transformed
this company into its subsidiary. As a result of this transaction, the amount of goodwill has increased to 831,841,000 yen at
the end of the second quarter under review.
For the New Media & Web Service Business segment, the Company has acquired shares of Matchalarm Inc. andtransformed this company into its subsidiary. As a result of this transaction, the amount of goodwill has increased to518,466,000 yen at the end of the second quarter under review.

3. Supplemental information
Orders received

Segment

First half of the previous consolidated fiscal
year(from January 1, 2016 to June 30, 2016)
Orders received
Order backlog(in thousands of yen)First half of the consolidated fiscal year underreview(from January 1, 2017 to June 30, 2017)
Orders received
Order backlog

IT Consulting &Service Business

11,815,229

7,537,306

15,126,496

10,868,882

New Media & Web
Service Business

321,216

133,652

560,020279,298

12,136,445

7,670,958

15,686,516

11,148,180

Total(Note) Orders received include adjustments for exchange rate fluctuations.

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