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

July 30, 2021

Company name:
Future Corporation
Shares listed on: First Section of Tokyo Stock Exchange
Securities code:4722
URL
https://www.future.co.jp
Representative:
Yasufumi Kanemaru, Chairman and President
Contact:
Shinichi Iwata, Head of Financial & Accounting GroupTEL 03-5740-5724
Scheduled date for filing the quarterly report:
August 12, 2021
Scheduled date for distributing dividend payments:
September 17, 2021
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 Second Quarter of Fiscal 2021 (January 1, 2021 to June 30, 2021)(1) Consolidated operating results (cumulative)(Percentage figures indicate year-on-year changes.)

Net sales

Quarterly profit attributable toowners of parent

Operating income

Million yen%

Million yen%

Million yen%

2Q Fiscal 2021
23,117
4.4
3,746
15.7
2,696
2Q Fiscal 2020
22,135
(0.4)
3,239
(2.9)
2,366
(Note) Comprehensive income
2Q Fiscal 2021: 3,146 million yen (-31.9%) 2Q Fiscal 2020: 4,620 million yen (73.7%)

13.9
11.1

Profit per shareYen

2Q Fiscal 2021
2Q Fiscal 2020

60.94
53.14

(2) Consolidated financial position
Total assets

Net assets

Million yen

2Q Fiscal 2021
Fiscal 2020
(Reference) Shareholders’ equity

Shareholders’ equity ratio
Million yen

51,86740,08549,82338,2282Q Fiscal 2021: 40,085 million yen

Net assets per share

%

Yen

77.3
76.6
Fiscal 2020: 38,175 million yen

905.61862.892. Dividends
Dividends per share (yen)End of the firstquarter dividend

Fiscal 2020
Fiscal 2021

End of the second
quarter dividend

End of the third
quarter dividend

Period-end dividend

Total

Yen

Yen

Yen

Yen

Yen

―
―

20.00
23.00

―

20.00

40.00

―

23.00

46.00

Fiscal 2021 (Forecast)(Note) Revisions from the dividend forecast published most recently: Yes

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

Net sales
Million yen

Profit attributable toowners of parent

Operating income%

Million yen

Full year
48,5009.5
8,000(Note) Revisions from the earnings forecast published most recently: Yes

Profit per share%

Million yen

%

Yen

52.8

5,500

44.9

124.28

* Notes(1) Changes in significant subsidiaries during the quarter under review (changes in specified subsidiaries accompanied by changes in thescope 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: None
2) Change in accounting policies other than item 1) above: None
3) Change in accounting estimates: None
4) Retrospective restatements: None
(4) Number of outstanding shares (common stock)1) Total outstanding shares as of the end of
2Q Fiscal 2021
the period (including treasury shares)
2) Total treasury shares as of the end of the
2Q Fiscal 2021
period3) Average number of outstanding shares
2Q Fiscal 2021
during the period under review

47,664,000 shares Fiscal 2020

47,664,000 shares

3,400,671 shares Fiscal 2020

3,422,611 shares

44,246,241 shares 2Q Fiscal 2020

44,543,772 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 and assumptions
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 Second Quarter of Fiscal 2021 (Year ending December, 2021)

Contents
1. Qualitative Information Regarding Financial Results for the First Quarter under Review........................................................................... 2(1) Explanations for operating results........................................................................................................................................................... 2(2) Explanation on qualitative information about consolidated earnings forecast ........................................................................................ 3
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 six-month period)........................................................................................................................................................................ 6(3) Consolidated quarterly statements of cash flows .................................................................................................................................... 8(4) Notes to quarterly consolidated financial statements .............................................................................................................................. 9(Notes on premise of a going concern) ................................................................................................................................................. 9(Notes on any significant change in shareholders’ equity) ................................................................................................................... 9(Segment information) ......................................................................................................................................................................... 9
3. Supplementary Information ........................................................................................................................................................................ 10
Orders received .......................................................................................................................................................................................... 10-1-

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

1. Qualitative Information Regarding Financial Results for the First Quarter under Review(1) Explanations for operating results
Consolidated net sales for the first six months were 23,117 million yen, up 4.4% year on year; consolidated operating
income for the period was 3,746 million yen, up 15.7% year on year; and consolidated profit for the period attributableto owners of parent was 2,696 million yen, up 13.9% year on year.
Looking at the economic environment during the first half of the consolidated fiscal year under review, we saw
companies accelerating efforts to drastically change their operations, such as implementing business reforms anddeveloping new digital services. Amid the ongoing COVID-19 pandemic, companies became more aware of challenges
in digital transformation (DX), necessitating a revamping of their supply chains and teleworking, while the need for
information technology and digitalization became greater than ever across all industries and fields. In terms ofindividual lifestyles, the use of information technology became even more widespread as more people shopped via ecommerce sites, enjoyed entertainment and sports on video and online, and took advantage of education and selfdevelopment opportunities via online services. At the same time, outdoor leisure activities such as camping continued
to gain popularity, reflecting changing lifestyles.
Under those conditions, consolidated net sales for the first six-month period increased 4.4% year on year. Consolidated
operating income grew 15.7% year on year. Consolidated profit attributable to owners of parent rose 13.9% year on
year.
Details of the performance of each segment are as follows.
1) IT Consulting & Service Business
Future Architect, Inc. (including the technology division of Future Corporation) saw a steady stream of orders
coming in for DX projects from a wide variety of customers. These included the development of a mission-criticalsystem designed to accelerate digital commerce for the apparel industry as well as the manufacturing industry's
first fully automated system using AI and IoT technology, and the provision of highly effective AI technology to
improve operations in various industries. In addition to that, the company made steady progress with projects thatwould contribute to its medium-term growth, such as a project for introducing next-generation banking systems
to regional financial institutions and projects for reforming mission-critical systems for staffing service providers.
Thanks to these efforts, net sales were up over the same period for the previous fiscal year. The company also saw
a substantial year-on-year increase in operating income as it focused on ensuring quality control to improve
profitability.
Future Inspace, Inc. stably acquired commissioned maintenance and operation projects in cooperation with Future
Architect, Inc. As a result, net sales edged up slightly year on year, but operating income declined due to sluggish
orders for new development projects.
Future One, Inc. recorded a year-on-year decrease in both net sales and operating income as it focused on thereplanning and recovery of system integration (SI) projects for its original packaged 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. rose significantly year on year. It saw an increase in orders
for vulnerability assessment, computer forensics, incident response, and other cyber security-related services todeal with the growing number of cyber attacks, as well as a steady stream of orders for network constructionrelated services designed to improve the ICT environment.
As a result, net sales of the Segment increased to 18,501 million yen (up 2.6% year on year) while operating
income grew substantially to total 3,540 million yen (up 15.6% year on year).
2) Business Innovation Business
Both net sales and operating income of eSPORTS Co., Ltd. rose sharply year on year due to strong demand for
camping, fishing, and other outdoor activities suited to the new lifestyle as well as an increase in the lines ofprivate label products it had been continuously introducing to the market.
CodeCamp Inc. saw net sales jump year on year due to an increase in orders from corporations shifting from grouptraining to online training, but operating income remained flat as a result of prioritizing R&D investments.
Both net sales and operating income of Tokyo Calendar Inc. rose substantially year on year due to stable revenue
from Internet services including Tokyo Calendar Date, growth in magazine and advertising sales, and ongoingcost controls.
Both net sales and operating income of LaiBlitz, Inc. fell year on year due to a decrease in new orders received
from professional baseball clubs, etc.
As a result, both net sales and operating income of the Segment increased to 4,669 million yen (up 12.8% year on-2-

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

year) and 224 million yen (up 7.6% year on year) respectively.

(Notes) Segment result figures mentioned above are before adjustment for intersegmental sales and transfers.
(2) Explanation on qualitative information about consolidated earnings forecast
In light of recent business trends, the Board of Directors decided at a meeting held on July 30, 2021 to revise theearnings forecast for fiscal 2021 (January 1, 2021 to December 31, 2021), which was announced on February 4, 2021
along with the financial results for fiscal 2020. For more information, please refer to the "Notice Regarding Revision
to Full-Year Earnings Forecast, Distribution of Surplus, and Revision of Dividend Forecast" published today.

-3-Consolidated Summary Report of Operating Results of Future Corporation (4722) for the Second 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)

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
Total property, plant and equipment
Intangible assets
Goodwill
Software
Customer-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

Previous consolidated fiscal year
(December 31, 2020)

Second quarter under review(June 30, 2021)

15,110,388
7,884,666
1,000,006
1,075,525
15,775
1,352,733(3,000)26,436,095

18,353,093
6,514,911
1,001,175
957,680
39,567
1,318,079(3,000)28,181,507

1,656,638(1,007,547)
649,091855
2,794,921(2,266,482)
528,438
1,178,384

1,637,318(967,769)
669,549855
2,853,574(2,384,543)
469,030
1,139,435

138,378
1,591,245
416,000
5,361
2,150,985

118,555
1,719,784
312,000
4,865
2,155,205

18,431,595
1,436,115
18,463
250,641(78,881)
20,057,933
23,387,303
49,823,398

19,015,389
1,223,507
8,446
221,881(77,381)
20,391,842
23,686,483
51,867,991-4-

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

Second quarter under review(June 30, 2021)

1,028,501
3,320
1,306,849
764,400
257,487
61,646
13,285
3,041,342
6,476,832

1,077,453
1,410,565
1,074,626
237,336
52,091
23,3072,643,276
6,518,656

351,613
4,615,063
151,138
5,117,815
11,594,648

350,093
4,757,219
156,568
5,263,881
11,782,538

4,000,000
21,33325,150,606(2,235,662)
26,936,278

4,000,000
26,644,391(2,221,059)
28,423,331

11,229,849

11,643,906(4,185)
13,485
11,239,149
53,32338,228,750
49,823,398

6,646
11,568
11,662,121
40,085,452
51,867,991

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
Total current liabilities
Non-current liabilities
Asset retirement obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Shareholders’ equity
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Total accumulated other comprehensive income
Valuation difference on available-for-salesecurities
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-Consolidated Summary Report of Operating Results of Future Corporation (4722) for the Second Quarter of Fiscal 2021 (Year ending December, 2021)(2) Consolidated quarterly statements of income and comprehensive income(First six-month 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
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of shares of subsidiaries and associates
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Total income taxes
Profit(Comprehensive income attributable to)
Quarterly profit attributable to owners of parent
Quarterly profit attributable to non-controlling interests(in thousands of yen)First six months of the previous First six months of the consolidated
consolidated fiscal year
fiscal year under review(from January 1, 2020
(from January 1, 2021
to June 30, 2020)
to June 30, 2021)
22,135,781
23,117,551
12,739,861
12,720,091
9,395,920
10,397,460-6-257,746
2,354,403
275,274
278,484
192,237
249,1712,549,468
6,156,785
3,239,134

283,170
2,797,401
332,118
254,301
154,191
156,054
2,673,939
6,651,176
3,746,283

417
71,697535
107,708

9,340

15,0701,191
3,530
86,176

264
19,072
142,651

198
198
3,325,11245
45
3,888,890

93,27893,278

6,376
974
7,351

3,418,390
1,026,278
2,392,112

16,263
16,2633,879,9781,156,405
2,723,573

2,366,987
25,1252,696,479
27,094

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

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 profit(Comprehensive income attributable to)
Quarterly profit attributable to owners of parent
Quarterly profit attributable to non-controlling interests-7-

First six months of the previous
consolidated fiscal year
(from January 1, 2020
to June 30, 2020)

First six months of the consolidated
fiscal year under review(from January 1, 2021
to June 30, 2021)

2,227,841
(188)
187

414,056
10,832447

330(2,364)2,228,170
4,620,282

422,972
3,146,545

4,595,157
25,125

3,119,451
27,094

Consolidated Summary Report of Operating Results of Future Corporation (4722) for the Second Quarter of Fiscal 2021 (Year ending December, 2021)(3) Consolidated quarterly statements of cash flows(in thousands of yen)

Cash flows from 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 sales of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sale of shares of subsidiaries andassociates
Decrease (increase) in notes and accounts receivable– tradeDecrease (increase) in inventories
Increase (decrease) in accounts payable – trade
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of securities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Purchase of intangible assets
Proceeds from sales of shares of subsidiaries andassociates
Purchase of investment securities
Proceeds from sales of investment securities
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Proceeds from sales of golf club membership
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of long-term loans payable
Repayments of finance lease obligations
Redemption of bonds
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Purchase of treasury shares
Cash dividends paid
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 the beginning of the period
Cash and cash equivalents at the end of the period-8-First six months of the previous
consolidated fiscal year
(from January 1, 2020
to June 30, 2020)

First six months of the consolidated
fiscal year under review(from January 1, 2021
to June 30, 2021)

3,418,390
523,366

3,879,978463,706(1,636)(1,500)8,169
209
405,903(72,114)
198(20,151)(9,555)
10,022(108,244)
45(9,340)(15,070)(93,278)-(974)
16,263-(6,376)518,216

1,369,755(648,858)(262,761)(138,485)
3,647,979
72,114(283)(998,421)
2,721,389

94,053
48,951(261,618)
5,459,284
109,486(45)(729,173)
4,839,553(111,383)(252,631)(102,251)
100,000(106,565)(332,741)-

13,200(50,000)
99,900(15,874)

3,811(5,487)

601

217,918

1,767(327,620)

16,354
1,500(194,261)(8,692)(40,710)(8,000)(3,320)(68,124)--(450,000)(758,502)(938,056)(1,753,961)(884,844)(1,406,289)

1,665

3,702

641,473
14,929,901
15,571,374

3,242,705
16,010,388
19,253,093

Consolidated Summary Report of Operating Results of Future Corporation (4722) for the Second Quarter of Fiscal 2021 (Year ending December, 2021)(4) Notes to quarterly consolidated financial statements(Notes on premise of a going concern)
Not applicable.
(Notes on any significant change in shareholders’ equity)
During the second quarter of the current consolidated fiscal year, the Company acquired additional shares of its
consolidated subsidiary, CodeCamp Inc. As a result, capital surplus became a negative value after it was reduced
by 369,582 thousand yen, so the negative value was deducted from retained earnings.
(Segment information)[Segment information]
I First six months of the previous consolidated fiscal year (from January 1, 2020 to June 30, 2020)
1. Information on the amounts of net sales, and profit or loss by reportable segment(in thousands of yen)
Reportable segments
Other(Note 1)

Adjustments(Note 2)

Amount stated inquarterly
consolidated
financialstatements(Note 3)

IT Consulting& ServiceBusiness

BusinessInnovation
Business(1) Sales to outsideclients

18,016,416

4,119,345

22,135,761

20

22,135,781—

22,135,781(2) Inter-segment
sales or transfer

14,241

19,75733,999—33,999(33,999)—

18,030,657

4,139,103

22,169,761

20

22,169,781(33,999)

22,135,781

Total

Total

Net sales

Total

Segment profit (loss)
3,061,727
209,178
3,270,906(10,620)
3,260,285(21,151)
3,239,134(Notes) 1. “Other” is a segment for operations not included in reportable segments. The segment covers investment in, holding of, andmanagement of securities.
2. Adjustments for segment profit (loss) represent the amount of intersegment transactions eliminated, and income and expenses of theholding company (excluding its technology division).
3. Segment profit (loss) is adjusted with operating income stated in quarterly consolidated financial statements.

II First six months of the consolidated fiscal year under review (from January 1, 2021 to June 30, 2021)
1. Information on the amounts of net sales, and profit or loss by reportable segment(in thousands of yen)
Reportable segments
Other(Note 1)

Adjustments(Note 2)

Amount stated inquarterly
consolidated
financialstatements(Note 3)

IT Consulting& ServiceBusiness

BusinessInnovation
Business(1) Sales to outsideclients

18,474,074

4,637,914

23,111,989

5,562

23,117,551—

23,117,551(2) Inter-segment
sales or transfer

27,34731,96059,308

107,433

166,742(166,742)—

18,501,422

4,669,875

23,171,298

112,995

23,284,293(166,742)

23,117,551

Total

Total

Net sales

Total

Segment profit (loss)
3,540,210
224,978
3,765,189
39,044
3,804,233(57,949)
3,746,283(Notes) 1. “Other” is a segment for operations not included in reportable segments. The segment covers investment in, holding of, andmanagement of securities.
2. Adjustments for segment profit represent the amount of intersegment transactions eliminated, and income and expenses of the holding
company (excluding its technology division).
3. Segment profit is adjusted with operating income stated in quarterly consolidated financial statements.

-9-Consolidated Summary Report of Operating Results of Future Corporation (4722) for the Second Quarter of Fiscal 2021 (Year ending December, 2021)

3. Supplementary Information
Orders received

Category(in thousands of yen)First six months of the previous
consolidated fiscal year
(from January 1, 2020 to June 30, 2020)

First six months of the consolidated
fiscal year under review(from January 1, 2021 to June 30, 2021)

Orders received

Orders received

Order backlog

Order backlog

IT Consulting & Service Business

15,921,402

10,428,710

20,612,413

11,654,844

Business Innovation Business

1,039,501

335,636

1,122,501

453,384

16,960,904

10,764,347

21,734,914

12,108,228

Total

Category

IT Consulting & Service BusinessBusiness Innovation Business
Total

First quarter of the consolidated
fiscal year under review(from January 1, 2021 to March 31, 2021)

Second quarter of the consolidated
fiscal year under review(from April 1, 2021 to June 30, 2021)

Orders received

Orders received

Order backlog

Order backlog

9,445,176

10,045,676

11,167,237

11,654,844

584,399

516,287

538,101

453,384

10,029,576

10,561,964

11,705,338

12,108,228- 10 -