Information Meeting For Financial
Results For the Second Quarter of FY2013

July 30, 2013
Future Architect, Inc.

Copyright ©2013 by Future Architect, Inc. Japan

Contents
1. Overview of Earnings for the Second
Quarter of FY2013

2. Topics Related to the Second Quarter of
FY2013

3. Future Outlook for the Second half of
FY2013Copyright ©2013 by Future Architect, Inc. Japan1. Overview of Earnings for the Second
Quarter of FY2013

Copyright ©2013 by Future Architect, Inc. Japan

Earnings Highlights from the First Half of FY2013
Future Architect, Inc. which designs management and IT.

1. Consolidated net sales surpassed the original target.
• Consolidated net sales amounted to ¥13,545 million (up 21.7% year-on-year), with
Future Architect and all subsidiaries having posted increased sales.
• Consolidated net sales were 10.6% higher than forecasted, a favorable indicator forachieving the original target for the full year.

2. Improving consolidated income.
• Consolidated operating income was ¥1,570 million (up 116.7% year-on-year) andconsolidated ordinary income stood at ¥1,697 million (up 111.1% year-on-year).
Consolidated net income for the 2nd period of FY2013 also increased to ¥1,037
million (up 123.8% year-on-year) due to an increase in sales.
• Earnings of each subsidiary are improving, and positive operating income wasposted in terms of the combined total of all subsidiaries.

3. Orders received remained robust.
• With consolidated orders received standing at ¥11,777 million (up 38.2% year-onyear), and the consolidated backlog amounting to ¥8,048 million (up 83.1% year-onyear), orders have been steady since last year.

Copyright ©2013 by Future Architect, Inc. Japan-4-

Consolidated Results for the First Half of FY2013
Future Architect, Inc. which designs management and IT.

FY2013Results forthe first half

FY2013
Plan forthe first halfCompared
to plan

FY2012
Results forthe first half

Year-on-yearchangeNet sales

13,545

12,250+10.6%

11,126+21.7%

Operatingincome

1,570

1,340

+17.2%

724+116.7%

11.6%

10.9%

(+0.7pts.)

6.5%(+5.1pts.)

1,697

1,365

+24.4%

804+111.1%

Ordinary income
margin

12.5%

11.1%

(+1.4pts.)

7.2%(+5.3pts.)

Net income

1,037

750

+38.4%

463+123.8%

7.7%

6.1%

(+1.6pts.)

4.2%(+3.5pts.)(Million yen)

Operating income
marginOrdinary
incomeNet income margin

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Trends of Quarterly Consolidated Results
Future Architect, Inc. which designs management and IT.

8000

1600

7000

1400

6000

1200

5000

1000

4000

800

3000

600

2000

400

1000

200

0

0
3Q2011

4Q2011

1Q2012

2Q2012

3Q20124Q2012

1Q2013

2Q2013

Net sales
Orders received
Operating income

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Balance Sheets(Million yen)

Future Architect, Inc. which designs management and IT.

End of Jun. 2013

End of Dec. 2012

ChangeCurrent assets

10,622

9,771

+850

Noncurrent assets

5,824

5,058

+765

Total assets

16,446

14,830+1,616

Current liabilities

3,709

2,747

+961

369

316

+53

Total liabilities

4,078

3,063

+1,014

Total net assets

12,368

11,766

+601

74.3%

78.5%

-4.2pts

Non-current liabilities

Shareholders’ equity ratio

End of Jun. 2013

End of Dec.2012

ChangeMain changes(Million yen)

Current
assets:Noncurrent
assets:Current
liabilities:
Copyright ©2013 by Future Architect, Inc. Japan

Increase in cash and deposits

4,283

4,156

+127

Increase in accounts receivable

3,881

3,523

+358

Increase in merchandise

376

134

+241

Increase in goodwill

952

195

+757

1,218

739

+478

Increase in accounts payable-7-Cash Flows

Future Architect, Inc. which designs management and IT.

FY2013 results
for the first half

FY2012 results
for the first half

1,638
-1,072
-488

-22
-256
-584

+1,661-815+95

Effect of exchange rate changes on cash
and cash equivalents

27

0

+27

Increase (decrease) in cash and cash
equivalents

105

-862

Cash and cash equivalents at beginning of
the period

4,184

5,526

Cash and cash equivalents at end of thequarterly period

4,290

4,663

(Million yen)
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities

Main changes(Million yen)

Operating CF: Net income before taxes
Increase (decrease) in notes andaccounts payable-trade
Investing CF: Purchase of property, plant andequipment
Purchase of intangible assets
Purchase of investments in subsidiaries

Copyright ©2013 by Future Architect, Inc. Japan-8-

ChangeFirst half of
FY2013
1,647First half of
FY2012
832

Change

277

85

+192

-192

-39

-152

-121

-321

+199

-999

-64

-934

+814

Results by Segment

Future Architect, Inc. which designs management and IT.

FY2013 results
for the first half

FY2012 results
for the first half

Year-on-yearchange13,545

11,126+21.7%IT Consulting
Package & Service
Corporate Revitalization
Other
Adjustments

9,321
2,148
2,257
182
-365

7,068
1,992
2,249
100
-285

+31.9%+7.8%+0.3%+81.6%–

Operating Income

1,570

724

+116.6%

IT Consulting

1,388
127
46
-6
14

754
10
32
-89
16

+84.1%–+42.5%––(Million yen)

Net Sales

Package & Service
Corporate Revitalization
Other
Adjustments
Copyright ©2013 by Future Architect, Inc. Japan-9-

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

Orders received(Million yen)BacklogFirst half of
FY2013First half of
FY2012Year-on-yearchangeFirst half of
FY2013First half of
FY2012Year-on-yearchangeIT Consulting Business

9,652

7,035

+37.2%

6,929

3,552

+95.1%

Package & Service
Business

1,932

1,380

+40.0%

1,096

831+31.8%

Other

192

107

+78.7%

22

11+104.3%

Total

11,7778,523+38.2%

8,048

4,395

+83.1%

Trends of orders received (excluding those in Other)Trends of backlog (excluding that in Other)

Copyright ©2013 by Future Architect, Inc. Japan- 10 -

2Q2013

1Q2013

4Q2012

3Q2012

2Q2012

1Q20124Q2011

3Q2011

2Q2011

1Q2011

2Q2013

1Q2013

4Q2012

3Q2012

2Q2012

1Q20124Q2011IT Consulting
Package &Service
Total

3Q2011

2Q2011

1Q2011IT Consulting
Package &ServiceTotal

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

Increase in sales
 Business reform projects commenced for several new customers.
 IT support services premised on medium- to-long-term partnerships
continued/expanded with existing clients.
 New service models, including SKYBANK (financial cloud), medical cloud, and theglobal ERP service also advanced.

Increase in profits With the expansion in orders received since the previous year, the consultant
utilization rate rose.
 With sales increasing, the selling, general and administrative expense ratio
declined.
 Periodic inspection of projects for which there was concern over quality was
conducted to reliably manage progress and implement necessary measures.
Copyright ©2013 by Future Architect, Inc. Japan- 11 -

Sales Analysis of IT Consulting Business: non-consolidated (1/2)
Future Architect, Inc. which designs management and IT.

Trends of sales by industry

Non-consolidated

Fiscal year

First halfof 2012

27.8%

30.5%

26.0%

Secondhalf of
2012

26.4%

23.7%

28.1%

23.9%

16.8%

26.6%

First halfof 2013Service

Copyright ©2013 by Future Architect, Inc. Japan

Distribution

Financial- 12 -

15.7%

21.8%

32.7%

Manufacturing

million yen

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

Non-consolidated

Trends of sales by phase
Fiscal year

First halfof 2012

24.6%

Secondhalf of
2012

23.8%

First halfof 2013

12.9%

31.8%

41.9%

17.7%

44.0%

15.3%

13.0%

Grand design

Design

2.9%

15.8%

15.5%

37.5%

Development

Maintenance/
operation

1.1%

Others2.2%

million yen

Note: Since phase classification was reviewed and the maintenance/operation and others phase was divided into two separate phases, data for2012 are different from figures of past materials.
Copyright ©2013 by Future Architect, Inc. Japan- 13 -

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

ERP packages for mid-size companies and SMEs (FutureOne)
 Sales of sales management licenses and cloud accounting licenses increased.
 Profit margins for projects improved due to the enhancement of progress
management and the quality management of mid-size projects.
 Sales of the software maintenance service increased, leading to an improved income
margin.

Outsourced development and regional business (Ascendia)
 Operation and maintenance services for new clients were expanded in cooperation
with Future Architect.
 System development services for the group of existing clients also increased.
 Income margin declined due to increases in recruitment and training expenses andoutsourcing costs for some projects.

Copyright ©2013 by Future Architect, Inc. Japan- 14 -

Result by Segment(Corporate Revitalization Business-Uoei Shoten Corporation)

Future Architect, Inc. which designs management and IT.

Operating income sustained Positive operating income was posted at all stores in the first half under review.
 New services, including in-store sushi kitchen, and the direct purchase of materials
from fishing ports were developed.
 Selling, general and administrative expenses were reduced mainly due torationalization of advertising and utility expenses and a reduction of logistics cost.

Copyright ©2013 by Future Architect, Inc. Japan- 15 -

2. Topics Related to the Second
Quarter of FY2013

Copyright ©2013 by Future Architect, Inc. Japan

Measures for 2013

~ From materials of the Briefing on Financial Resultsfor FY2012 (February 8, 2013) ~Future Architect, Inc. which designs management and IT.

1.
2.

Project quality enhancement
Improvement of subsidiariesʼ
earnings
3. Acceleration of new services
expansion

Copyright ©2013 by Future Architect, Inc. Japan- 17 -

1. Project Quality Enhancement
Future Architect, Inc. which designs management and IT.

• Integrated management of administrative work at all project
phases Request
management
 Change management

 Incident management
 Release management

 Ticket registration/update Ticket list

Operation andmaintenanceDefinitions ofrequirements

FutureNASA

ReleaseDesign/development/test Progress
management Issue management

 Version management
 Source change
management
 Bug management

 Gantt chart

1. Project Quality Enhancement

Future Architect, Inc. which designs management and IT.

• Visualization of the number of failures, as well as an analysis of bug
causes occurred.
• Scientific analysis and quality control of all projects through integrated
management based on unified indicators

Copyright ©2011 by Future Architect, Inc. Japan- 19 -

1. Project Quality Enhancement ~ Actual Operations in the First Half ~Future Architect, Inc. which designs management and IT.

January Course in mobile university entrance examinations for the educational
service industry
January EC mail order websites and logistics centers for convenience store
operators
March

SKYBANK: Business support cloud service for regional banks

March

Business plan systems for the logistic services industry

March

Route management systems for the logistic services industry

April

Integrated master (product) system for the food manufacturingindustry

May

Financing support system for regional banks

June

General collective approval system for the food manufacturingindustry

June

Performance infrastructure system for the educational service industry

Copyright ©2013 by Future Architect, Inc. Japan- 20 -

2. Improvement of Subsidiaries’ earnings
Future Architect, Inc. which designs management and IT.

 Net sales of subsidiaries for the first half under review
6000
5000
4000

LSC
TC
Uoei
NCG (T)BTS
NCG (S)
Ascendia
FutureOne

3000
2000
1000
0
(Million yen)First half of 2012

Copyright ©2013 by Future Architect, Inc. JapanFirst half of 2013- 21 -

2. Improvement of Subsidiaries’ earnings
Future Architect, Inc. which designs management and IT.

 Results of subsidiaries for the first half under review (year-on-year change)(Sales growth rate)(Thailand)

0

Copyright ©2013 by Future Architect, Inc. Japan(Profit growth rate)- 22 -

3. Acceleration of New Services Expansion
Future Architect, Inc. which designs management and IT.

Global Services Rollout
System Maintenance Services

Global services
rollout
Support for
operation andmaintenance

Smart systemservices

Component
development

ERP introduction

Cloud services

Smart System Services
Application Cloud Services

System Integration Services
Package Integration Services

Support forplanning andevaluation
Plan and designof Grand design

Application & IT Consulting
Business Innovation Consulting

Existing
businesses

New services

Copyright ©2013 by Future Architect, Inc. Japan- 23 -

Future Architect, Inc. which designs management and IT.

Tomato Bank Ltd.
http://www.tomatobank.co.jp/

NEWS RELEASE

Tuesday, March 19, 2013

Concerning operation of the new sales and financing support
system “SKYBANK”• We will start operation of “SKYBANK,” the new sales/financing support system from
Friday, March 22, 2013.
• We will reinforce our sales capability by making sales and financing operations more
efficient and sophisticate through the use of the new system.

Tomato Bank is the first financial institution to introduce “SKYBANK” in Japan.

We love humans. – Tomato Bank
Copyright ©2013 by Future Architect, Inc. Japan- 24 -

Future Architect, Inc. which designs management and IT.

Wide-ranging cloud support for strategic (informational) solutions for banking operations
The main menu is provided by the Company, and the option menu is provided jointly by
the Company and its partners
Creditrisk

Operationalrisk

Financialanalysis
Collateralappraisal

Main menu*

PersonalIB

Administrative
supportSales promotion

BPO

Corporate
IB

Consultation andproposals
for corporations

Consultation andproposals
for individuals

Sales ofassetsin custody

Credit rating/Self-assessment

Loans

Contract-related
office work

Mobile terminal

Integrated
DB

Accounting
softwarelinkage

Solutions
Productivity
analysis

Business management
Earnings
management

BIE-mail andgroupware

Copyright ©2013 by Future Architect, Inc. Japan

Internetconnection- 25 -

Accounting
systemadapterABC
Personnel
and salaries
Cost
management

Management
portal forSMEs

3. Outlook for the second half of
FY2013Copyright ©2013 by Future Architect, Inc. Japan

Full-year Forecasts for FY2013

Future Architect, Inc. which designs management and IT.

Year-on-yearchangeFull-year
forecast for
FY2013

FY2013Results for the
first half

Achievement
rate

Full-year
results for
FY2012

Net sales

25,70013,54552.7%

23,353+10.0%

Operatingincome

3,200

1,570

1,935

12.5%

11.6%

49.1%

+65.4%

3,250

1,697

2,057

Ordinary income
margin

12.6%

12.5%

52.2%

Net income

1,800

1,037

1,167

7.0%

7.7%

57.7%

(Million yen)

Operating income
marginOrdinary
incomeNet income margin

Copyright ©2013 by Future Architect, Inc. Japan- 27 -

8.3%

8.8%

5.0%

(Full-year
forecast)+57.9%+54.1%

Measures for the Second Half of 2013
Future Architect, Inc. which designs management and IT.

Steady approaches to achieve original targets
for the full fiscal year

• Execution of three measures– Project quality enhancement– Improvement of subsidiariesʼ earnings– Acceleration of the expansion of new services• M&As– Taking in M&A deals, following the eSPORTS deal

• Expansion in Asia
– Expansion into Southeast Asia and China following NCG

Copyright ©2013 by Future Architect, Inc. Japan- 28 -

Reference

Copyright ©2013 by Future Architect, Inc. Japan

eSPORTS
Future Architect, Inc. which designs management and IT.

 We won “Sports and Outdoor Category Grand Prize” of Rakuten Ichiba for the second
straight year.

Rakuten shop of eSPORTS (http://www.rakuten.ne.jp/gold/esports/)
Copyright ©2013 by Future Architect, Inc. Japan- 30 -

Trends of B to C-EC Market Size
Future Architect, Inc. which designs management and IT.

Hundredsof millionsof yen90,000

3%

2.83%

2.5

77,88080,00066,96070,00060,89060,00084,5902.46%

253,4402.08%

50,0001.5

1.79%

40,0001.52%

30,0001

20,0000.5
10,000002007
EC market size

2008

2009

2010

2011

Ratio of the amount of electronic commerce transactions to the total amount of transactions

Source: the Ministry of Economy, Trade and Industry, “FY 2011 Research on Infrastructure Development in Japan’s Information-based
Economy Society (E-Commerce Market Survey)”
Copyright ©2013 by Future Architect, Inc. Japan- 31 -

Future Architect, Inc. which designs management and IT.

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

Copyright ©2013 by Future Architect, Inc. Japan- 32 -