Consolidated Summary Report of Operating Results for the First Quarter of Fiscal 2021
(Year Ending December, 2021) [Japan GAAP]

April 28, 2021
Shares listed on: First Section of Tokyo Stock Exchange
https://www.future.co.jp

Company nameSecurity code number:

Future Corporation
4722

Representative:

Yasufumi Kanemaru, Chairman and President

Contact:

Shinichi Iwata, Head of Financial & Accounting GroupURL

TEL 03-5740-5724

Scheduled date for filing the quarterly report:

May 14, 2021

Scheduled date for distribution of dividend payments:-

Creation of supplemental material on quarterly financial results:
Holding of financial results briefing:No
No(Amount rounded off to million yen)

1. Consolidated Results for the First Quarter of Fiscal 2021 (January 1, 2021 to March 31, 2021)(1) Consolidated operating results (cumulative)(Percentage figures indicate year-on-year changes.)

Net sales
1Q Fiscal 2021
1Q Fiscal 2020

(Note) Comprehensive income

Operating income

Million yen%

11,083
11,027

1Q Fiscal 2021: 122 million yen (-91.1%)

Profit per share
1Q Fiscal 2021
1Q Fiscal 2020

Million yen

2.9
(7.6)

(1,242)
1,147

1Q Fiscal 2020: 1,380 million yen (-28.8%)

%

8.3
7.9

Yen

Total assets

Net assets

Million yen

Million yen

Shareholders’ equity ratio

End of the firstquarter dividend-

Yen

Net assets per share%

48,444
37,46649,82338,228
1Q Fiscal 2021: 37,400 million yen

2. Dividends

Fiscal 2020
Fiscal 2021
Fiscal 2021 (Forecast)

%

1,702
1,654

28.09
25.67

(2) Consolidated financial position
1Q Fiscal 2021
Fiscal 2020
(Reference) Shareholders’ equity

Million yen

0.5
1.6

Quarterly profit attributable toowners of parent

77.2
76.6
Fiscal 2020: ¥ 38,175 million

Dividends per share (yen)End of the second End of the third
Year-end dividend
quarter dividend quarter dividend
Yen

20.00

-

21.00

-

Yen

Yen

845.39862.89

Total

Yen

Yen

20.00

40.00

21.00

42.00

(Note) Revisions from the dividend forecast published most recently: none

3. Projected Consolidated Results for Fiscal 2021 (January 1, 2021 to December 31, 2021)(Percentage figures indicate year-on-year changes)

Net salesFirst six months(accumulated total)
Full year

Operating income

Quarterly profit
attributable to owners ofparentProfit per share

Million yen%

Million yen%

Million yen%

Yen

22,000

(0.6)

2,900

(10.5)

1,980(16.3)

44.75

47,500

7.2

7,150

36.6

4,800

26.5

108.50(Note) Revisions from the dividend forecast published most recently: none

* Notes(1) Changes in significant subsidiaries during the quarter under review (changes in specified subsidiaries accompanied by changes inthe scope of consolidation): none
(2) Application of accounting treatment particular to the preparation of quarterly consolidated financial statements: none
(3) Change in accounting policies or estimates and retrospective restatements
1) Change in accounting policies in accordance with revision of accounting standards
2) Change in accounting policies other than item 1) above
3) Change in accounting estimates
4) Retrospective restatements(4) Number of outstanding shares (common stock)1) Total outstanding shares as of the end of
1Q Fiscal 2021
the period (including treasury shares)
2) Total treasury shares as of the end of the
1Q Fiscal 2021
period3) Average number of outstanding stocks
1Q Fiscal 2021
during the period under review: None: None: None: None47,664,000
Fiscal 2020
shares3,423,029
Fiscal 2020
shares44,241,384
1Q Fiscal 2020
shares47,664,000
shares3,422,611
shares44,711,469
shares*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 the Company andassumptions the Company considers as reasonable, and the Company does not promise to achieve any of them. Actual results may differ significantly
from forecasts due to various uncertain factors.

Consolidated Summary Report of Operating Results of Future Corporation (4722) for the First Quarter of Fiscal 2021 (Year ending December,
2021)

Contents
1. Qualitative Information Regarding Financial Results for the First Quarter under Review .................................................... 2
Explanations for Operating Results........................................................................................................................................ 2
2. Quarterly Consolidated Financial Statements and Main Notes .............................................................................................. 4(1)

Quarterly Consolidated Balance Sheets .......................................................................................................................... 4(2)

Consolidated quarterly statements of income and comprehensive income ..................................................................... 6(First quarter of the consolidated fiscal year) ................................................................................................................. 6(3)

Notes to quarterly consolidated financial statements ...................................................................................................... 7(Notes on premise of a going concern) ........................................................................................................................... 7(Notes on any significant change in shareholders’ equity).............................................................................................. 7(Segment information).................................................................................................................................................... 7

3. Supplementary Information ................................................................................................................................................... 8
Orders received ...................................................................................................................................................................... 8-1-

Consolidated Summary Report of Operating Results of Future Corporation (4722) for the First Quarter of Fiscal 2021 (Year ending December,
2021)

1. Qualitative Information Regarding Financial Results for the First Quarter under Review
Explanations for Operating Results
Consolidated net sales for the first quarter under review were 11,083 million yen, up 0.5% year on year; consolidated operating
income for the period was 1,702 million yen, up 2.9% year on year; consolidated profit for the period attributable to owners ofparent was 1,242 million yen, up 8.3% year on year.
The economic environment remained uncertain in the first quarter under review due to the impact of the spread of novel
coronavirus (COVID-19) infections. Meanwhile, corporate demand for investment in digital transformation (DX) in areas, suchas operational improvement, management reforms and new workstyle promotion applying digital technologies, basically stayedstrong. The demand has been burgeoning in broader industrial categories. Furthermore, new lifestyles, including personaltraining at home, self-enlightenment on the Net and enjoying outdoor activities, have been taking root.
Under those conditions, consolidated net sales for the first quarter under review increased 0.5% year on year. Consolidated
operating income grew 2.9% year on year. Consolidated profit attributable to owners of parent rose 8.3% year on year.
Details of the performance of each segment are as follows.
1)

IT Consulting & Service BusinessNet sales of Future Architect, Inc. (including the technology division of Future Corporation) decreased slightly from theprevious fiscal year in which development projects were concentrated. However, projects for promoting digital strategies
progressed steadily at companies highly motivated to make investment. Furthermore, newly contracted ground design projects
advanced smoothly, as demonstrated by the launch of a project for introducing next-generation banking systems to regional
financial institutions and the progress achieved in projects for reforming mission-critical systems for staffing service providers.
Consolidated operating income increased due to the prevention of the emergence of unprofitable projects with thoroughgoing
quality management as well as the control of outsourcing expenses and other costs.
Future Inspace, Inc. stably acquired commissioned maintenance and operation projects in cooperation with Future Architect,Inc. As a result, both net sales and operating income of Future Inspace came to levels roughly equal to figures a year earlier.
Net sales of Future One, Inc. were almost unchanged from the previous fiscal year. Operating income of Future One decreased
year on year, reflecting replanning in a system integration (SI) project for its original package software for sales management.
Both net sales and operating income of YDC Corporation declined year on year, due to a decrease in SI projects.
Both net sales and operating income of dit Co., Ltd. increased year on year with a continued favorable trend in orders received
in connection with the construction of networks for preparing the ICT environment.
As a result, net sales of the Segment decreased slightly to 8,922 million yen (down 1.9% year on year), and operating incomeof the Segment increased to1,614 million yen (up 4.3% year on year).
2)

Business Innovation Business

Both net sales and operating income of eSPORTS Co., Ltd. grew sharply year on year led by sales at major shopping malls, inaddition to the sustained favorable sales of products for outdoor activities, including solo camp as a new way to spend time tospare.
Both net sales and operating income of CodeCamp Inc. grew substantially, reflecting the expansion of orders received forcareer-changing programs for engineers, in addition to a sustained increase in demand for online courses among companies
and individuals.
Both net sales and operating income of Tokyo Calendar Inc. remained unchanged from the previous fiscal year, because of
stable sales of magazines and Internet services including Tokyo Calendar Date.
Both net sales and operating income of LaiBlitz, Inc. fell year on year due to factors, including a decrease in new orders
received from professional baseball clubs.

-2-

Consolidated Summary Report of Operating Results of Future Corporation (4722) for the First Quarter of Fiscal 2021 (Year ending December,2021)
As a result, both net sales and operating income of the Segment increased substantially to 2,175 million yen (up 12.0% year onyear) and 100 million yen (up 48.6% year on year) respectively.
(Note)

Segment result figures mentioned above are before adjustment for intersegmental sales and transfers.

-3-

Consolidated Summary Report of Operating Results of Future Corporation (4722) for the First Quarter of Fiscal 2021 (Year ending December,
2021)

2. Quarterly Consolidated Financial Statements and Main Notes(1)

Quarterly Consolidated Balance Sheets(in thousands of yen)Previous fiscal year
(December 31, 2020)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Securities
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

First quarter under review(March 31, 2021)

15,110,388
7,884,666
1,000,006
1,075,525
15,775
1,352,733(3,000)16,811,732
6,617,276
1,001,764
1,048,892
13,866
1,245,179(3,000)26,436,095

26,735,712

1,656,638(1,007,547)

1,657,219(987,946)

649,091

669,272855
2,794,921(2,266,482)

855
2,840,921(2,322,781)

528,438

518,139

1,178,384

1,188,267

Intangible assets
Goodwill
Software
Customer-related assets
Other

138,378
1,591,245
416,000
5,361

128,466
1,644,584
364,000
5,099

Total intangible assets

2,150,985

2,142,150

18,431,595
1,436,115
18,463
250,641(70,001)

16,780,050
1,436,925
19,734
219,390(78,131)

Total property, plant and equipment

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-

20,057,933

18,377,969

23,387,303

21,708,387

49,823,398

48,444,099

Consolidated Summary Report of Operating Results of Future Corporation (4722) for the First Quarter of Fiscal 2021 (Year ending December,
2021)(in thousands of yen)Previous fiscal year
(December 31, 2020)

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
Other

First quarter under review(March 31, 2021)

1,028,501
3,320
1,306,849
764,400
257,487
61,646
13,285
3,041,342

1,341,687
1,096
891,456
556,040
949,31355,287
98,7652,699,381

Total current liabilities

6,476,832

6,593,028

Non-current liabilities
Asset retirement obligations
Deferred tax liabilities
Other

351,613
4,615,063
151,138

351,625
3,871,275
161,179

Total non-current liabilities

5,117,815

4,384,081

Total liabilities

11,594,648

10,977,109

Shareholders’ equity
Shareholders’ equity
Capital stock
Capital surplus
Retain earnings
Treasury shares

4,000,000
21,33325,150,606(2,235,662)

4,000,000
21,33325,509,223(2,235,662)

26,936,278

27,294,894

Total accumulated other comprehensive income
Valuation difference on available-for- sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment

11,229,849(4,185)
13,485

10,082,945
11,66011,461

Total accumulated other comprehensive income

11,239,149

10,106,067

53,32366,02838,228,750

37,466,990

49,823,398

48,444,099

Total shareholders’ equity

Non-controlling interests
Total net assets
Total liabilities and net assets-5-Consolidated Summary Report of Operating Results of Future Corporation (4722) for the First Quarter of Fiscal 2021 (Year ending December,
2021)
(2)

Consolidated quarterly statements of income and comprehensive income(First quarter of the consolidated fiscal year)(in thousands of yen)First quarter of theprevious fiscal year
(January 1, 2020
to March 31, 2020)
11,027,828

Net salesFirst quarter under review(January 1, 2021
to March 31, 2021)
11,083,977

Cost of sales

6,420,629

6,213,041

Gross profit

4,607,199

4,870,936

121,641

141,989

Salaries and bonuses

1,173,572

1,405,456

Training expenses

48,28860,334

Research and development expenses

136,766

125,018

Depreciation

94,73053,342

Selling, general and administrative expenses
Directors’ compensations

Recruiting expenses

104,676

78,404

Other

1,272,669

1,303,632

Total selling, general and administrative expenses

2,952,345

3,168,178

1,654,854

1,702,758

339

313

Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Foreign exchange gains

34

46

6,953

11,070

-

5,013

Other

1,878

10,633

Total non-operating income

9,206

27,077

132

27

Non-operating expenses
Interest expenses
Foreign exchange losses
Total non-operating expenses
Ordinary income

941

-

1,074

27

1,662,986

1,729,808

-

6,376

Extraordinary income
Gain on sale of shares of subsidiaries and associates
Total extraordinary income
Profit before income taxes
Total income taxes
Profit-6,376

1,662,986

1,736,185

507,508

480,694

1,155,478

1,255,490

1,147,804

1,242,785

7,673

12,704(Comprehensive income attributable to)
Quarterly profit attributable to owners of parent
Quarterly profit attributable to non-controlling interests
Other comprehensive income
Valuation difference on available-for- sale securities

225,317(1,146,904)

Deferred gains or losses on hedges(81)

15,846

Foreign currency translation adjustment
Share of other comprehensive income of entities accounted for using equity
method

155

443

50

(2,466)

225,442(1,133,081)

1,380,920

122,409

1,373,247

109,704

7,673

12,704

Total other comprehensive income
Quarterly profit(Comprehensive income attributable to)
Quarterly profit attributable to owners of parent
Quarterly profit attributable to non-controlling interests-6-Consolidated Summary Report of Operating Results of Future Corporation (4722) for the First Quarter of Fiscal 2021 (Year ending December,
2021)
(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.

First quarter of the previous fiscal year (January 1, 2020 to March 31, 2020)
1.

Information on the amounts of net sales, and profit or loss by reportable segment(in thousands of yen)
Reportable segments
IT Consulting &Service BusinessBusinessInnovation

Total

Other (Note 1)

Total

Adjustment(Note 2)

Amount stated in quarterly
consolidated financial
statements (Note 3)

Business

Net sales(1) Sales to outside

9,088,159

1,939,669

11,027,828-

11,027,828-

11,027,828

6,351

2,255

8,606

-

8,606

(8,606)-

Total

9,094,510

1,941,925

11,036,435-

11,036,435(8,606)

11,027,828

Segment profit (loss)

1,548,056

67,526

1,615,583(3,384)

1,612,198

42,655

1,654,854

clients(2) Inter-segment
net sales ortransfer(Notes) 1.

“Other” is a segment for operations not included in reportable segments. The segment covers investment in, holding

2.

Adjustments for segment profit (loss) represent the amount of intersegment transactions eliminated, and income andof, and management of securities.
expenses of the holding company (excluding its technology division).
3.

Segment profit (loss) is adjusted with operating income stated in quarterly consolidated financial statements.

II. First quarter under review (January 1, 2021 to March 31, 2021)
1.

Information on the amounts of net sales, and profit or loss by reportable segment(in thousands of yen)
Reportable segments
IT Consulting &Service BusinessBusinessInnovation

Total

Other (Note 1)

Total

Adjustment
2.

Amount stated in quarterly
consolidated financial
statements (Note 3)

Business

Net sales(1) Sales to outside

8,916,006

2,164,318

11,080,324

3,653

11,083,977-

11,083,977

6,881

10,715

17,597

27,33344,930(44,930)-

Total

8,922,887

2,175,033

11,097,921

30,987

11,128,908(44,930)

11,083,977

Segment profit (loss)

1,614,200

100,361

1,714,562(5,420)1,709,141(6,383)

1,702,758

clients(2) Inter-segment
net sales ortransfer(Notes) 1.

“Other” is a segment for operations not included in reportable segments. The segment covers investment in, holdingof, and management of securities.

2.

Adjustments for segment profit (loss) represent the amount of intersegment transactions eliminated, and income andexpenses of the holding company (excluding its technology division).

3.

Segment profit (loss) is adjusted with operating income stated in quarterly consolidated financial statements.

-7-

Consolidated Summary Report of Operating Results of Future Corporation (4722) for the First Quarter of Fiscal 2021 (Year ending December,
2021)

3. Supplementary Information
Orders received
Category

IT Consulting & Service BusinessBusiness Innovation Business
Total

Category

IT Consulting & Service BusinessBusiness Innovation Business
Total

First quarter of the previous fiscal year
(January 1, 2020 to March 31, 2020)

First quarter under review(January 1, 2021 to March 31, 2021)

Orders received

Orders received

Order backlog

Order backlog

7,956,502

11,392,066

9,445,176

10,045,676

589,320

408,086

584,399

516,287

8,545,823

11,800,153

10,029,576

10,561,964

Fourth quarter of the previous fiscal year
(October 1, 2020 to December 31, 2020)

First quarter under review(January 1, 2021 to March 31, 2021)

Orders received

Orders received

Order backlog

Order backlog

9,446,585

9,516,505

9,445,176

10,045,676

720,184

502,759584,399

516,287

10,166,770

10,019,264

10,029,576

10,561,964-8-