October 27 2017

Consolidated Summary Report of Operating Results for the Third 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: November 13, 2017
Scheduled date for distribution of dividend payments: Creation of supplemental material on quarterly financial results:

No

Holding of quarterly results briefing: No(Amount rounded off to million yen)

1. Consolidated Results for the Third Quarter of Fiscal 2017 (January 1, 2017 to September 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

%

2,407
1,555

54.7
(10.8)

3Q, Fiscal 2017
26,500
3.3
3,284
25.0
3Q, Fiscal 2016
25,645(0.6)
2,626(17.6)(Note) Comprehensive income 3Q, Fiscal 2017: 2,303 million yen (37.0%)
3Q, Fiscal 2016: 1,681 million yen (-8.9%)
Quarterly profit per
share
Yen

3Q, Fiscal 2017
3Q, Fiscal 2016

53.85
34.80

(2) Consolidated financial position
Total assets
Million yen

3Q, Fiscal 2017
Fiscal 2016
(Reference) Shareholders’ equity

Net assets
Million yen

24,86518,741
23,063
17,331
3Q, Fiscal 2017: 18,423 million yen

Shareholders’equity ratio

Net assets per share
%

Yen

74.1
412.1175.0
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 third 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
3Q, Fiscal 2017:
shares)2) Total treasury shares as of the end of
3Q, Fiscal 2017:
the period
3) Average number of outstanding
3Q, Fiscal 2017:
stocks during the quarter underreview(accumulated period for quarter)

47,664,000
shares2,958,872
shares44,705,128
sharesFiscal 2016:
Fiscal 2016:
3Q, Fiscal 2016:

47,664,000
shares2,958,872
shares44,705,153
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 third quarter cumulative period of the fiscal year underreview ............................................................................................................................................................................................... 2(1) Explanation on operating results............................................................................................................................................... 2(2) Explanation on qualitative information about consolidated earnings forecast .......................................................................... 3
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 nine months period) ........................................................................................................................................................ 6(3) Notes to quarterly consolidated financial statements ................................................................................................................ 8(Notes regarding the premise of surviving company) ....................................................................................................................... 8(Notes regarding significant change in shareholders’ equity) ........................................................................................................... 8(Changes in accounting policies) ...................................................................................................................................................... 8(Additional information) ................................................................................................................................................................... 8(Segment information) ...................................................................................................................................................................... 9

3. Supplemental information............................................................................................................................................................... 10
Orders received ............................................................................................................................................................................... 10-1-

1. Qualitative information about consolidated operating results for the third quarter cumulative period of
the fiscal year under review(1) Explanation on operating results
Consolidated net sales of the Group for the first nine months were ¥26,500 million, up 3.3% from the corresponding period of
the previous fiscal year and operating income was ¥3,284 million, up 25.0%. Quarterly profit attributable to owners of parent
increased 54.7% year-on-year to ¥2,407 million.
(i) IT Consulting & Service Business
Future Architect, Inc. is in a period of converting old projects to new projects. Although the company experienced ayear-on-year decline both in net sales and operating income, it started many new projects with apparel companies, supermarkets,news media, logistics companies, etc. It also received orders to develop systems that support customer relations and lending
activities from multiple banks, mainly in the Tokyo metropolitan area, started to develop those systems, and increased sales
generated by projects with Forex brokers and online securities companies.
YDC Corporation showed strong performance in system development centered on the manufacturing business under entrusted
contracts and license sales of in-house manufactured goods, boosting the net sales and operating income of the IT Consulting &Service Business.
FutureOne Inc. marked significant growth in both net sales and operating income year-on-year, which is attributable to therenewal of in-house manufactured packages as the InfiniOne series, an increase in the number of project orders it received byfocusing on medium-sized companies with sales of 5 billion yen to 10 billion yen as target customers, and related developmentthat was carried out smoothly.
Micro CAD Co., Ltd. showed strong performance in sales of intellectual property management software to new customers andservices provided to manufacturers.
As a result, the IT Consulting and Service Business showed a year-on-year increase in both sales and operating income,posting net sales of ¥21,772 million (up 19.4% year-on-year), and operating income of ¥3,407 million yen (up 22.6%
year-on-year).
(ii) New Media & Web Service BusinesseSPORTS Co., Ltd. posted a 11.7% increase year-on-year in net sales, due to strong sales of private brand products centeredon outdoor goods and fitness training products, whereas operating income declined due to factors including a lower gross profit
margin resulting from increasingly fierce price competition affected by bad weather in the summer and increased transport costs.
Tokyo Calendar Inc. saw a surge in monthly page views from 30 million as of December 31, 2016 to 45 million as of
September 30, 2017, and gained momentum in sales of magazines during and after the second quarter under review, resulting
from implementation of content strategies focusing on men and women aged 30 to 49 in urban areas and a strengthened
framework enabling the creation of in-house video content. Because the company posted increased sales from both web-based
and magazine advertisements, with a 33.4% increase year-on-year in net sales, as well as operating income for three months inthe third quarter, its accumulated net loss decreased compared with the same period of the previous year.
CodeCamp Inc. logged a 40.0% 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. Due to upfront investments in service development and advertisement expenses, etc., the company continued tosustain an operating loss. However, the operating loss is showing a decreasing trend from the third quarter.
As a result, the New Media & Web Service Business showed a year-on-year increase in net sales and a reduction in operating
loss, posting net sales of ¥4,913 million (up 17.6% year-on-year) and an operating loss of ¥224 million (against a loss of ¥259
million a year earlier).
(Note) Segment business results stated in the paragraphs above are before adjusting 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-2-

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 the IT Consulting Business and the Package & Service Business into the IT Consulting & Service Business.
Year-on-year changes were calculated for comparison upon adjusting the values for the previous fiscal year’s third 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 Second Quarter as ofJuly 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 third quarter
under review(September 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

8,441,663
5,495,136
792,113272,856
350,821
1,373,205
1,263,332(3,259)17,985,869

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

1,313,679(819,181)
494,4975,430
2,294,454(1,763,540)
530,9131,030,842

350,312333,201
18,855702,369

1,425,130
1,133,646
17,614
2,576,391

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

1,694,415
1,207,180
150,016
283,271(62,427)
3,272,457
6,879,691
24,865,561

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 third quarter
under review(September 30, 2017)866,932
795,562
883,527
197,318
90,593
1,863
35,763
1,586,389
4,457,951

803,226
6,000
892,073564,317
729,455
35,342
1,000
1,654,290
4,685,705

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

1,011,500
353,360
73,2081,438,068
6,123,774

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

1,421,815
2,507,763
16,070,165(1,499,494)
18,500,250

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

7,346
806
(85,064)(76,911)
318,448
18,741,787
24,865,561

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

25,645,531
15,716,794
9,928,736(in thousands of yen)First nine months of theconsolidated fiscal year underreview(from January 1, 2017
to September 30, 2017)
26,500,180
15,633,455
10,866,725

285,782
3,116,758
230,989
248,82160,816200,603
3,158,167
7,301,939
2,626,797

327,065
2,824,706
294,201
250,224
52,765
266,764
3,566,398
7,582,126
3,284,599

1,655
32,11543,593886
60,405130,035
95,154

12,64290,006

7,832
294,313

5,768
171,881
177,650
2,539,153

5,263
5,263
3,573,649

First nine months of the previous
consolidated fiscal year
(from January 1, 2016
to September 30, 2016)
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 nine months of the previous
consolidated fiscal year
(from January 1, 2016
to September 30, 2016)
Extraordinary income
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and associates
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-(in thousands of yen)First nine months of theconsolidated fiscal year underreview(from January 1, 2017
to September 30, 2017)

399
196,651
197,051

106,480
106,480

1,270
143,881808
145,959
2,590,245
1,042,459
1,547,786

3,680,129
1,229,566
2,450,563

1,555,904(8,117)

2,407,347
43,215(5,422)(511)
140,195(300)(36,547)
589(90,738)(20,016)

133,961
1,681,747(146,713)
2,303,850

1,696,175

2,260,543(14,427)

43,306

(3) 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 rateby 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 thetaxable 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. Third quarter of the previous consolidated fiscal year (from January 1, 2016 to September 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 tooutside18,078,722
clients
Inter-segment
sales or
160,582transfer
Total

Corporate
Revitalization
Business

4,177,048

3,389,760 25,645,531

Adjustment(Note 2)25,645,531-

25,645,531

166,770-

166,770(166,770)-

3,395,791 25,812,301-

25,812,301(166,770)

25,645,531

6,030

4,177,205

Total

-

157

18,239,304

Others(Note 1)

Total

Amount on
Quarterly Period
Consolidated
Statements ofIncome (Note 3)

Segment income
2,779,870 (259,077)
33,135 2,553,928 (15,849) 2,538,079
88,7182,626,797(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. Third quarter of consolidated fiscal year under review (from January 1, 2017 to September 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)

21,613,610

4,886,570

26,500,180-

26,500,180-

26,500,180

158,676

26,701

185,377-

185,377(185,377)-

21,772,287

4,913,271

26,685,558-

26,685,558(185,377)

26,500,180

Segment income
3,407,788(224,922)
3,182,866(33,846)
3,149,019
135,580
3,284,599(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.

-9-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 third quarter cumulative period of the previous fiscal year is prepared and disclosed
based on the revised 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. Supplemental information
Orders received

Segment

First nine months of the previous consolidated
fiscal year
(from January 1, 2016 to September 30, 2016)
Orders received
Order backlog(in thousands of yen)First nine months of the consolidated fiscal year
under review(from January 1, 2017 to September 30, 2017)
Orders received
Order backlog

IT Consulting &Service Business

17,625,774

7,624,387

22,352,051

10,670,407

New Media & Web
Service Business

545,701

195,549

823,854

255,580

18,171,475

7,819,937

23,175,906

10,925,987

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

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