Briefing on Financial Results for
the Second Quarter of FY2019

August 1, 2019
Future Corporation
Copyright ©2019 by Future Corporation

Contents

1. Earnings Results for the First Half of
FY20192. Topics Related to the First Half of FY2019

3. Plan for FY2019

Copyright ©2019 by Future Corporation

1. Earnings Results for the First Half of
FY2019Copyright ©2019 by Future Corporation

1. Earnings Results for the First Half of FY2019(i) Earnings Highlights
Consolidated
earnings results
for the first halfof FY2019

Net sales, operating income, ordinary income andquarterly profit increased.
Net sales:
Operating income:Ordinary income:Quarterly profit
attributable to owners of parent:

IT Consulting &Service

22,215 million yen (16.7% increase)
3,336 million yen (27.7% increase)
3,440 million yen (24.6% increase)
2,130 million yen (4.2% increase)

Segment sales and operating income increased significantly as the net sales andincome of Future Architect and some other companies increased.
Net sales:
18,544 million yen (19.0% increase)
Operating income: 3,308 million yen (25.1% increase)*Refer to Appendix (i)BusinessInnovation
Inter-segment
adjustment
Copyright ©2019 by Future Corporation

Operating results improved owing to the strong performance of eSPORTS,
CodeCamp, and Laiblitz.
Net sales:
3,714 million yen (5.7% increase)
Operating income:-89 million yen (-122 million yen for 1H FY2018)
Net sales:
Operating income:-43 million yen
116 million yen-3-*Refer to Appendix (i)1. Earnings Results for the First Half of FY2019(ii) Analysis of Earnings Results (Net Sales and Operating Income)*Refer to Appendix (ii)

Net sales and operating income were higher than 1H/2H FY2018.
Operating income margin increased from 13.7% (1H 2018) to 15.0%.
(Million yen)

5,000

22,215Net sales

21,18419,000Operating income
4,500

40.0%

Operating income

19,034

4,000

35.0%

Operating income margin

17,265

17,22545.0%

16,427

3,500

3,212

3,336
30.0%

3,000

2,545

2,612

25.0%

2,500

2,000

20.0%

1,937

1,912
1,705
15.0%

1,500

15.2%
13.4%

1,000

11.2%

10.4%

15.0%

13.7%

10.0%

11.1%
5.0%

500

0

2016.1H

2016.2H

2017.1H

2017.2H

Copyright ©2019 by Future Corporation

2018.1H

2018.2H

0.0%

2016.1H

2019.1H-4-

2016.2H

2017.1H

2017.2H

2018.1H

2018.2H

2019.1H

1. Earnings Results for the First Half of FY2019(ii) Analysis of Earnings Results (Orders Received and Order Backlog-IT Consulting & Service)*Refer to Appendix (iii)

The volume of orders remained above the 1H/2H FY2018 level.
The order backlog exceeded the level at the end of 1H FY2018.
Orders received(IT Consulting)

17,912(Million yen)Backlog(IT Consulting)

17,983

17,215

15,126
14,083
11,815

12,232
11,303

10,868

11,898

11,378

9,621
7,537

2016.1H 2016.2H 2017.1H 2017.2H 2018.1H 2018.2H 2019.1H

Copyright ©2019 by Future Corporation

7,520

2016.1H 2016.2H 2017.1H 2017.2H 2018.1H 2018.2H 2019.1H-5-

1. Earnings Results for the First Half of FY2019(ii) Analysis of Earnings Results (Balance Sheets)*Refer to Appendix (iv)

Net assets increased to 30,012 million yen from 28,108 million yen at the end of
December 2018.
(Million yen)

Balance Sheets

Total assets: 38,956
Total assets: 37,240
Liabilities: 8,943
Cash and deposits
13,984

Liabilities: 9,132

Current assets
other than cash anddeposits:
8,648
Property, plant andequipment: 974

Net assets:
28,108Intangible assets: 2,583

Investments andother assets:
11,049End of Dec. 2018
Copyright ©2019 by Future Corporation

Cash and deposits
14,269Current assets otherthan cash anddeposits:
9,107
Property, plant andequipment: 1,456

Cash and deposits
Notes and accounts receivable trade
Merchandise and work in process
Property, plant and equipment
Software
Customer-related assets
Goodwill
Investment securities
Lease and guarantee deposits
Other:+ 285:+ 413:+ 71:+ 482
:+ 70
:-104
:-5
:+ 607:-15:-88

Major increase/decrease in assets :+ 1,715

Net assets:
30,012Intangible assets: 2,544

Investments andother assets:
11,578End of June 2019-6-

 Major increase/decrease in
assets Major increase/decrease inliabilities
Current portion of long-term loans
payableCurrent portion of bonds
Accounts payable - other
Income taxes payable
Bonds payable
Long-term loans payable
Deferred tax liabilities (non-current)
Other

:-151
:-36
:+ 81
:-553
:-92
:-216
:+238
:+541

Major increase/decrease in liabilities :-188

1. Earnings Results for the First Half of FY2019(ii) Analysis of Earnings Results (Cash Flows)
Operating CF

2,247*Refer to Appendix (v) Breakdown of cash flows
from operating activities(Million yen)

3,265
Quarterly profit before income taxes
455
Depreciation
Loss on realized foreign currency translation
175
adjustment
Change in notes and accounts receivable - trade -413
221
Other

1H FY2019
Investing CF
1H FY2019-613

Financing CF
1H FY2019

Subtotal
Income taxes paid
Interest/Dividend

3,704-1,52770

CF - Operating activities

2,247 Breakdown of cash flows
from investing activities
Withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Collection of lease and guarantee deposits
Other

75
-425
-272
20
-10

CF - Investing activities-613

 Breakdown of cash flows
from financing activities
Repayments of long-term loans
Repayments of finance lease obligations
Redemption of bonds
Dividends paid
Other

-1,266

Copyright ©2019 by Future Corporation

CF - Financing activities

-7-

-368
-13
-128
-756
-0
-1,266

1. Earnings Results for the First Half of FY2019(iii) Results by Segment (IT Consulting & Service)
Net sales

7,000

18,544

6,000
5,000

3,000
2,000
1,000

Future Architect, Inc.
(including Future Corporation’s Technology Division)

Net sales

Operatingincome1H FY2019

28.0%

Operating income

26.0%(Million yen)

Operating income margin

24.0%
22.0%

4,000

15,5791H FY2018

Operating income*Refer to Appendix (vi)

3,308
2,644
17.0%

20.0%
18.0%

17.8%

16.0%
14.0%

0

12.0%

1H FY2018

1H FY2019• Continuously received orders for next generation system development projects from growth companies
that view IT as a strategic investment necessary for reforming management and operations.
• Carried out projects mainly to build an omni-channel framework in the apparel and distribution
industries, set up next generation content management systems for newspaper publishers, and support
transportation service companies in acquiring adequate information and improving operational
efficiency.

Future Inspace, Inc.
Net sales
Operatingincome• Maintenance and operation service deals for projects completed by Future Architect and new
development orders increased.

YDC Corporation
Net sales
Operatingincome• Net sales and operating income decreased from a year ago as a large deal involving YDC Sonar, asoftware program for analyzing product quality information, was made in the same period a year
ago.

FutureOne
Net sales• Operating income rose significantly due to increased sales of InfiniOne, an original sales
management software package, and other products to relatively larger medium-sized companies.

OperatingincomeCopyright ©2019 by Future Corporation-8-

1. Earnings Results for the First Half of FY2019(iii) Results by Segment (IT Consulting & Service) - Sales Analysis(Million yen)

Trends of sales by industry
Service
1H FY2017

1H FY2018

2,157(19.6%)

1,769(14.5%)

2,668(19.4%)

1H FY2019

3,461(31.5%)

3,356(27.5%)

2,650(24.1%)

Finance

Manufacturing

2,726(24.8%)

4,234

2,830
(23.2%)

3,692(26.8%)

Distribution(34.8%)

2,916(21.2%)

4,496(32.6%)

Note 1)Figures for FY2017 reflect aggregate numbers combining the sales of Future Architect, Future Inspace and YDC.

Note 2)

Figures for FY2018 and FY2019 reflect aggregate numbers combining the sales of Future, Future Architect, Future Inspace and YDC.

Note 3)Figures for procured goods and the maintenance thereof are not included.

Copyright ©2019 by Future Corporation-9-1. Earnings Results for the First Half of FY2019(iii) Results by Segment (IT Consulting & Service) - Sales Analysis(Million yen)

Trends of sales by phase
Grand design
1H FY2017

1H FY2018

Development

2,606

1,224

5,094

2,070

(23.7%)(11.1%)(46.3%)(18.8%)

1,924

2,879

5,251

(15.8%)(23.6%)(43.1%)

1,957

1H FY2019

Design(14.2%)

2,180(15.8%)

7,044(51.2%)

Maintenance/Operation

2,134(17.5%)

2,591(18.8%)

Note 1)Figures for FY2017 reflect aggregate numbers combining the sales of Future Architect, Future Inspace and YDC.

Note 2)

Figures for FY2018 and FY2019 reflect aggregate numbers combining the sales of Future, Future Architect, Future Inspace and YDC.

Note 3)Figures for procured goods and the maintenance thereof are not included.

Copyright ©2019 by Future Corporation- 10 -

1. Earnings Results for the First Half of FY2019(iv) Results by Segment (Business Innovation)*Refer to Appendix (vi)

Operating income

Net sales(Million yen)

3,714

3,513

1H FY2018

1H FY2019

-89
-122

1H FY2018eSPORTSNet sales

Operatingincome1H FY2019• Sales of private brand outdoor supplies (e.g., wagons) and fitness-related national brand products werestrong.
• Operating income improved as strategic product purchasing activities led to an increase of the grossmargin ratio.

Tokyo Calendar Inc.
Net sales
Operatingincome• The numbers of page views, video views and magazines sold increased, and services such as “Tokyo
Calendar Date” generated larger net sales and income.
• Advertising revenues underperformed the target figures.

CodeCamp Inc.
Net sales
Operatingincome• Net sales and operating income increased due to steadily increased monthly orders for the online
programming course targeting individuals.
• Strengthened collaboration with partner companies such as correspondence course providers.

LaiBlitz, Inc.
Net sales• Net sales and operating income increased year-on-year due to the acquisition of a new customer, aprofessional baseball team.

OperatingincomeCopyright ©2019 by Future Corporation- 11 -

1. Earnings Results for the First Half of FY2019(v) Analysis of Changes in Net Sales(Million yen)+200
+2,964

Business Innovation

0

+15

Other

Adjustments

IT Consulting &Service

22,21519,034(+16.7%)

1H FY2019

1H FY2018
Copyright ©2019 by Future Corporation- 12 -

1. Earnings Results for the First Half of FY2019(vi) Analysis of Changes in Operating Income(Million yen)

+32

-0

+27

Other

Adjustments

Business Innovation+664
IT Consulting &Service

3,336

2,612

(+27.7%)

1H FY2018

1H FY2019

Copyright ©2019 by Future Corporation- 13 -

2. Topics Related to the First Half of FY2019
1. Customers in Diversified Industries
2. SG Holdings Co., Ltd.
3. Wacoal Corp.
4. Regional Banks
5. ORBIS Inc.
6. Recruitment Strategies
7. Growth of Operating Income Margin of IT Consulting & Service Business
8. eSPORTS
9. LaiBlitz, Inc.
10. CodeCamp Inc.
Copyright ©2019 by Future Corporation

2. Topics Related to the First Half of FY2019

Customers in Diversified Industries• Receiving orders from new customers, became an IT business partner in diversified industries.
• Contributed to corporate value enhancement through the utilization of data on a real-timearchitecture.

Insurance

Banks

Distributors/
Retailers

Real-timearchitecture
Logistics/
Servicecompanies

Apparelcompanies

Copyright ©2019 by Future Corporation- 15 -

Securities
firms

Media
companies

2. Topics Related to the First Half of FY2019

Reasons Why Future Is Chosen by Customers in Diversified Industries

Issues recognized by customers

Future’s value

Desire to create new value

Technologist group oriented
toward management reform rather
than mere digitization

Competition with platformers

Distributed real-time architecture
adopting the world’s mostadvanced technologies

Desire to achieve zero-based
reforms in line with the AI/IoT era

Abundant knowhow regarding
different industries

Copyright ©2019 by Future Corporation- 16 -

2. Topics Related to the First Half of FY2019

SG Holdings Co., Ltd. ‐ Further Strengthened Strategic Partnerships• Strengthened existing strategic partnerships and utilized technology tosolve an urgent issue in the logistics industry (i.e., elimination of labor
shortages).

Strengthening of strategic
partnerships(i) Automatically enter data on delivery
slips using AI(ii) Improve the efficiency of driver
operations“Size/Weight”
spaceWith noise

With printed
characters(iii) Improve efficiency and promote laborsaving measures through R&D
AI

With crossout• Save labor for entering data on slips byrealizing more precise data entry than manualentry (99.8% or more)

Copyright ©2019 by Future Corporation

E-signature

IoT

Delivery task list

• Promote paperless operations and measures
to improve the efficiency of collection anddelivery operations by allowing drivers toutilize mobile information devices- 17 -

Robotics• Improve the operational efficiency and acceleratelabor-saving measures of group companies
through R&D

2. Topics Related to the First Half of FY2019

Wacoal Corp. ‐ Provide New Services Using an Omni-channel Approach••

Build an omni-channel framework enabling the unified management of product andcustomer information, aiming to maintain deeper, wider and longer relationships
with customers.
Contribute to the provision of new services by utilizing data managed through anomni-channel approach.

Inventory
Contribute to
new services

Unified management

3D body scanner

Omni-channel
strategy for
Wacoal

+Products

Customers

Unified management of product information
Quantification of product information

Unified management of customer information
Accumulation of body measurement information

Copyright ©2019 by Future Corporation- 18 -

AI-basedrecommendations

2. Topics Related to the First Half of FY2019

Expanded Services for Regional Banks•Continuously received new orders from regional banks - 30 banks in total nationwide.

•

Reform the system to provide total support for the business targeting corporations.
–Utilize AI for lending operations (3 banks), and improved the functions for supporting corporate
consultation

Corporate customers

Banks

FutureBANKFunctions for supporting
consultation

Sales
promotion

Business succession, M&A,
business matching, etc.

Selfassessmentof ratings

Examinationof deals

Integrated DB for public relations andlending operations

AI for lending
Loan Reviw alert,
signs of window
dressing, etc.

Copyright ©2019 by Future Corporation

Contract
execution- 19 -

Postexecution
management

2. Topics Related to the First Half of FY2019

ORBIS Inc. - AI Has Entered the Phase of Creating Effects
 Application content “Personal AI Makeup Adviser”• Highly precise online judgment of personal colors and facial proportions using AI

Take aphoto

Judgment/
Analysis

Product
presentation

Personal color judgment using
four quadrants representing
the images of four seasons

Total number ofdownloads
1.98 million
Cumulative number ofdiagnoses
0.76 million(4/1-7/24 Actual) Deep learning technology provided by Future• About 90% of base color judgments made using AI are the same as those made byprofessional stylists specializing in color.

Data collection
Labeling
Model construction/
Learning
Definition andimprovement of precision

Copyright ©2019 by Future Corporation- 20 -

2. Topics Related to the First Half of FY2019

Mid-career Recruitment Strategies
 Organize our events more actively••

Gained more job applicants directly, rather than through agents, by organizing our events
more actively and reaching potential job applicants.
In the case of events in which employees are introduced and which are held at places with anice atmosphere, participants feel highly satisfied.

EventsEmployee introduction event
Consultation/Technology study meeting
Holiday seminar
Holiday (1 day) screening meeting
Agent conference

Copyright ©2019 by Future Corporation- 21 -

2. Topics Related to the First Half of FY2019

New Graduate Recruitment Strategies
 The number of new graduate engineers increased• The ratio of engineers increased while over 100 employees were hired every year.
• Created points of contact with engineering personnel by holding tech events anddisplaying exhibitions at AI-related academic conferences.
18%

35%

Scheduled tojoin the company
in 2020

Joined the company
in 2019

 Held competitive programming contests

Persons who passed
the programming
screening• Held programming contests twice in the past for students with advanced programming skills.
• Future has become more widely recognized by competitive programmers(*).
(*)Participants in programming competitions

Copyright ©2019 by Future Corporation- 22 -

2. Topics Related to the First Half of FY2019

IT Consulting & Service Business ‐ Growth of Operating Income Margin IT Consulting & Service Business• Future Architect and Future Inspace maintained high operating income margins.
• FutureOne and Micro CAD improved their operating income margins.
Changes in operating
income margin

Future Architect, Inc.
Future Inspace, Inc.
YDC Corporation

20%

FutureOne
Micro CAD Co., Ltd.
(Note)

02016.FY2017.FY

2016.FY
Operating income
margin of
IT Consulting & Service
Copyright ©2019 by Future Corporation

15.7%

Note: YDC’s figure 2019.1H
for FY2016 represents the percentage calculated
2018.FY
based on a non-consolidated basis.

2017.FY

2018.FY

16.1%- 23 -

17.1%

2019.1H
17.9%

2. Topics Related to the First Half of FY2019eSPORTS - Product Strategies and Marketing Self-developed
products••

 Sales of products
purchased

Increased exposure and recognition bystrengthening PR.

Participated in eventson a larger scale

•

Sales
increased 150% YoY

Appearance in magazines
through press releases
for the media

Gross profit ratio
increased 2%•

Obtain superior products preferentially andcontinuously by strengthening relationships
with suppliers.

•

Sales promotion linked to PR of national
brands, and strategic inventory purchase in
anticipation of exposure.

•

Cost reduction by positioning hot selling
products as regular products.

Launched well-designed new products, andmade products more newsworthy throughcollaborative product development.

Active customer communication utilizing social media proactively (followers increased tenfold in half ayear).

Copyright ©2019 by Future Corporation- 24 -

2. Topics Related to the First Half of FY2019

LaiBlitz - Expansion of Business Domain and Entry into Other Industries
 Sports Collaboration with Future Architect, Inc.

••

Set up the Yomiuri Giants’ fan club and ecommerce sites.
Expanded this business as a businessdomain, in addition to strengthening theteam.

Developed an application for store operations of
ZEN-NIPPON SHOKUHIN.
Adopted system technologies, which are used for
professional baseball teams, in other industries.

Enabled management to browse data from outside,
and allowed store personnel to share knowhow.

Services provided to fans utilizing a team strategy
system, “Future Fastball”

 Set up e-commerce service platforms

Developed “FastBiz” for members and e-commerce
solutions
Copyright ©2019 by Future Corporation•

LaiBlitz rebuilt a core system supporting thesales management of the e-commerce site ofeSPORTS, a group company that received
awards for various online shopping malls.

•

Conducted R&D to provide e-commerce platform
services.

- 25 -

2. Topics Related to the First Half of FY2019

CodeCamp - Steady Growth and New Measures Rate of increase in the volume oforders from individuals
The volume of orders has increased byabout 1.4 times in the last 2 years, but
may increase even more this year.

 New measures
Started to give lectures in collaboration with U-CAN• Provided more people with programming education
as a lifetime learning experience in collaboration
with U-CAN.

Actual2H forecast
2016

2017

2018

2019

 Cumulative number of users
Collaborated with CLARK Memorial International
High School. Started providing programming
education support for high school students• Strengthened support for educational institutions’programming/technology education, considering that
programming education will become mandatory forhigh schools in and after 2022

Increased by 3,000 users every year until
last year, but has already reached 3,000
users increase this year.

23,84020,55817,183

Actual2H forecast
2016

Copyright ©2019 by Future Corporation

2017

2018

2019

- 26 -

3. Plan for FY2019

Copyright ©2019 by Future Corporation

3-1. Numerical Plan for FY2019(i) Changes in Sales and Operating Income, and Plan
Net sales

Operating income

12,00045.0%(Million yen)

43,50040.0%

Operating income

40,21810,000Operating income margin

36,26535,29335.0%

33,653
8,000

30.0%

6,400

25.0%

5,824

6,000

20.0%

4,869
4,458
3,642

4,000

15.0%

14.5%

10.0%

12.3%

13.8%
2,000

14.7%

10.8%
5.0%

0

2015

2016

Copyright ©2019 by Future Corporation

2017

2018

0.0%

2015

2019 (Plan)- 28 -

2016

2017

2018

2019 (Plan)

3-1. Numerical Plan for FY2019(ii) Plan Progress Rate

(Million yen)

Annual plan for
FY2019Results for
1H FY2019

Progress Rate

Net sales:

43,50022,215

51.1%

Operating income

6,400

3,336

(14.7%)(15.0%)

52.1%

4,355

2,130

(10.0%)(9.6%)(Operating income margin)

Profit attributable toowners of parent(Profit margin)

Copyright ©2019 by Future Corporation- 29 -

48.9%

3-2. Dividends
FY2019 interim dividend: An ordinary dividend of 18 yen per share, an increase of
1 yen
FY2019 year-end dividend: Scheduled to pay an ordinary dividend of 18 yen and acommemorative dividend of 3 yen to celebrate the company’s 30th anniversary
(Yen)
21

18
17

Ordinary:
18 yenCommemorative:
3 yen

15
13

13

2017 - Interim2017 - Year-end

Copyright ©2019 by Future Corporation2018 - Interim2018 - Year-end- 30 -

2019 - Interim

2019 - Year-end (Plan)Appendix.

Copyright ©2019 by Future Corporation

Appendix. - (i) Future GROUPIT Consulting& Service

Future Architect, Inc.
Future Inspace, Inc.
YDC Corporation
FutureOne, Inc.
Micro CAD Co., Ltd.
dit Co., Ltd.

Future Corporation(Holding company)
BusinessInnovation

Future Investment, Inc.

Copyright ©2019 by Future Corporation- 32 -eSPORTS Co., Ltd.
Tokyo Calendar Inc.
CodeCamp, Inc.
LaiBlitz, Inc.
TrexEdge, Inc.

Appendix. - (ii) Analysis of Results (Comparison of Results)(Million yen)Compared with projected results

Year-on-year comparison

Results for
1H FY2019

Plan for 1H FY2019

ChangeResults for 1H FY2018

ChangeNet sales

22,21520,880

6.4%

19,034

16.7%

Operatingincome

3,336

2,920

2,612

(15.0%)(14.0%)

14.3%

27.7%

2,130

2,037

2,045

(9.6%)(9.8%)

4.6%(Operating income
margin)Profitattributable toowners of parent(Profit margin)

Copyright ©2019 by Future Corporation- 33 -(13.7%)(10.7%)

4.2%

Appendix. - (iii) Orders Received and Backlog by Segment(Million yen)Orders received
1H FY2019

IT Consulting & Service
Business Innovation

Total

1H FY2018

Backlog
YoY change

1H FY2019

YoY change

17,983

17,215+767

11,37811,303

+74

815

1,029

-214

317

518

-201

18,79918,245+553

11,695

11,822-126

Note 1: eSPORTS is not included in the above table because it does not engage in order-based production.

Copyright ©2019 by Future Corporation

1H FY2018- 34 -

Appendix. - (iv) Balance Sheets(Million yen)

End of June 2019

End of Dec. 2018

ChangeCurrent assets

23,376

22,632+744

Non-current assets

15,57914,608+971

38,95637,240+1,715Current liabilities

5,919

6,148

-228

Non-current liabilities
Total liabilities

3,024

2,983

+40

8,943

9,132

-188

Total net assets

30,012

28,108+1,904

76.8%

75.2%

Total assets

Shareholders’ equity ratio

Mainchanges(Million yen)

Current assets:
Non-current
assets:Current liabilities:
Non-current
liabilities:
Net assets:

Copyright ©2019 by Future Corporation

Cash and deposits
Notes and accounts receivable - trade
Property, plant and equipment
Intangible assets (including goodwill)
Investment securities
Current portion of long-term loans payable
Deferred tax liabilities
Retained earnings
Valuation difference on available-for-salesecurities- 35 -End of June 2019
End of Dec. 201814,26913,984
6,647
6,234
1,456
974
2,544
2,583
9,864
9,257
9
161
2,471
2,233
21,6105,840

20,2395,438

Change
+285
+413
+482
-38
+607
-151
+238
+1,370+401

Appendix. - (v) Cash Flows
1H FY2019

1H FY2018

ChangeCash flows from operating activities

2,247

4,431

-2,184

Cash flows from investing activities

-613

-526

-86

Cash flows from financing activities-1,266

-599

-667

-7

-6

-0

360

3,299

-2,939Cash and cash equivalents at the beginning of the period

13,9089,478+4,430Cash and cash equivalents at the end of the period

14,26912,778+1,491

1H FY2019

1H FY2018

Change(Million yen)

Effect of exchange rate changes on cash and cash equivalents
Increase (decrease) in cash and cash equivalents

Mainchanges

Operating CF:

Profit before income taxes

3,265

3,126

+138

Decrease (increase) in notes and accounts
receivable - trade
Change in inventories

-413

61

-474

3

-10

+13

Investing CF:

Purchase of property, plant and equipment

-425

-103

-322

Financing CF:

Repayment of long-term loans
Dividends paid

-368
-756

‐
-579

-368
-176

(Million yen)

Copyright ©2019 by Future Corporation- 36 -

Appendix. - (vi) Results by Segment(Million yen)

1H FY2019

1H FY2018

22,21519,034+16.7%IT Consulting & Service

18,544

15,579+19.0%

Business Innovation

3,714

3,513

+5.7%

-43

-59

-

Operating income

3,336

2,612

+27.7%IT Consulting & Service

3,308

2,644

+25.1%

-89

-122

-

1

2

-44.4%

11688+31.6%(Million yen)

Net sales

Adjustments

Business Innovation
Other
Adjustments

Copyright ©2019 by Future Corporation- 37 -YoY

The summary report of operating results, supplementary materials, briefing materials
and other various IR materials are also available on the Company’s website.

https://www.future.co.jp/investor_relations/
Investor Relations, Future CorporationTel:+81-3-5740-5724
FAX:+81-3-5740-5820
E-mail: ir@future.co.jp

This material contains future forecasts made based on currently available information. These forecasts may change 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 material, the figures in the summary report of operating results, etc. that are indicated in units of thousand yen are stated in units of million yen. Hence, a disparity
may be found in some of the totals and differences. For detailed figures, please refer to the summary report of operating results.

Copyright ©2019 by Future Corporation- 38 -