April 28, 2017

Consolidated Summary Report of Operating Results for the First 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/
Representative: Yasufumi Kanemaru, Chairman and President
Contact:
Yoshihiko Nakajima, Executive Officer
Tel.: +81-3-5740-5724
Scheduled submit date of quarterly report: May 12, 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 first Quarter of Fiscal 2017 (January 1, 2017 to March 31, 2017)(Percentages are year-on-year changes)(1) Consolidated operating results (accumulated total)
Net sales

Operating income

Million yen%

Million yen

1Q, Fiscal 2017

8,715

1.4

992

1Q, Fiscal 2016

8,597

2.0

1,151

%

(Note) Comprehensive income 1Q, Fiscal 2017: 630 million yen (-14.4%)

Quarterly profit attributableto owners of parent
Million yen(13.8)

612(15.7)

1.7

726

11.8

%

1Q, Fiscal 2016: 736 million yen (2.9%)

Quarterly profit per share(fully diluted)

Quarterly profit per share
Yen

Yen

1Q, Fiscal 2017

13.70

―

1Q, Fiscal 2016

16.25

―

(2) Consolidated financial position
Total assets

Net assets

Shareholders’ equity ratio

Net assets per share

Million yen

Million yen%

Yen

1Q, Fiscal 2017

23,731

17,69873.2

388.36

Fiscal 2016

23,063

17,33175.0

387.04(Reference) Shareholders’ equity

1Q, Fiscal 2017: 17,361 million yen

Fiscal 2016: 17,302 million yen

2. Dividends
End of the first quarter
dividend
Yen
Fiscal 2016―

Fiscal 2017―

End of the second
quarter dividend
Yen

Fiscal 2017
(Forecast)

Dividends per share (yen)End of the third quarter
dividend
Yen

Year-end dividend

Total

Yen

Yen

12.50

―

12.50

25.00

13.00

―

13.00

26.00

(Note) Modification of the projected dividends announced most recently: No
3. Projected Consolidated Results for Fiscal 2017 (January 1, 2017 to December 31, 2017)(% represents change from the previous fiscal year for a “Full year” and changes from the corresponding quarter of the previous fiscal year for “Quarter”)

Net sales

2Q(accumulated)
Full year

Operating income

Profit attributable toowners of parent
Million yen%

Profit per share

Million yen%

Million yen%

17,710

2.8

1,835

(5.3)

1,171

3.7

26.19

36,830

9.4

4,500

23.5

2,735

23.8

61.18

(Note) Modification of the projected consolidated results announced most recently: No

Yen

* Notes(1) Changes in significant subsidiaries in the consolidated first quarter under review (Changes in specified subsidiaries thatinvolved 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 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) Restatements(4) Number of outstanding shares (common shares)
1) Total outstanding shares as of the end of
the period (including treasury shares)
1Q, Fiscal 2017:2) Total treasury shares as of the end of theperiod
1Q, Fiscal 2017:
3) Average number of outstanding shares
1Q, Fiscal 2017:
during the quarter under review(accumulated period for quarter)

: No
: Yes
: No
: No

47,664,000 sharesFiscal 2016:

47,664,000 shares

2,958,872 sharesFiscal 2016:
1Q, Fiscal
2016:

2,958,872 shares

44,705,128 shares

44,705,200 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 andon certain premises the Company judges to be rational. The Company does not intend to guarantee their achievement. Actual results may differ significantly fromforecasts due to various uncertain factors.

 Contents
1. Qualitative information about financial results for the first quarter of the fiscal year under review ................................................ 2
Explanation on operating results...................................................................................................................................................... 2
2. Quarterly Period Consolidated Financial Statements and Related Notes ......................................................................................... 3(1) Quarterly Period Consolidated Balance Sheets ........................................................................................................................ 3(2) Quarterly Period Consolidated Statements of Income and Comprehensive Income................................................................. 5(First quarter of consolidated fiscal year under review) ................................................................................................................... 5(3) Notes to quarterly consolidated financial statements................................................................................................................ 7(Notes regarding the premise of surviving company) ...................................................................................................................... 7(Notes regarding significant change in shareholders’ equity) .......................................................................................................... 7(Changes in accounting policies) ..................................................................................................................................................... 7(Additional information) .................................................................................................................................................................. 7(Segment information) ..................................................................................................................................................................... 8
3. Supplemental information ...............................................................................................................................................................10
Orders received ...............................................................................................................................................................................10-1-

1. Qualitative information about financial results for the first quarter of the fiscal year under review
Explanation on operating results
Consolidated net sales of the Group for the first quarter were ¥8,715 million, up 1.4% from the corresponding period of
the previous fiscal year and operating income was ¥992 million, down 13.8%. Quarterly profit attributable to owners ofparent decreased 15.7% year-on-year to ¥612 million.
The details of the performance of each business segment are as follows.
(i) IT Consulting & Service Business
Future Architect Inc. has been in the development phase of financial cloud computing services (SKYBANK) for orders
received in the end of the last year from an urban bank and a major regional bank based in a metropolitan area, andreceived project orders from several new clients including major companies in the retail, the newspaper, and the logistics
industries. Meanwhile, due to the settlement of the development of a large-scale project, both net sales and operating
income decreased year on year.
YDC Corporation, a company newly consolidated since the quarter under review, performed strongly in its systemdevelopment subcontracting business and license sales business for the manufacturing industry, which contributed toconsolidated net sales and operating income.
FutureOne Inc.’s net sales and operating income significantly improved year on year because the number of new projectorders increased year on year and development went well.
Consequently, net sales of this segment for the first quarter stood at 7,482 million yen, up 17.0% year-on-year, and its
operating income amounted to 1,088 million yen, down 8.6% year-on-year.
(ii) New Media & Web Service BusinesseSPORTS Co., Ltd. posted an increase in net sales mainly contributed by the sale of private brand training goods andequipment such as flat benches and indoor exercise bikes, while operating income leveled off due to an increase in fees
associated with sales and marketing.
Tokyo Calendar Inc. posted a significant year-on-year increase in sales for web advertisement thanks to the growing
number of monthly page views that steadily increased from 30 million at the end of last year to 35 million in March.
CodeCamp Inc. posted an increase in net sales year on year contributed by CodeIncubate, a newly-established engineer
training program for people thinking about a career change, and TORAKAJI, a business development specialist training
program. However, operating loss remains due mainly to a front-load investments.
Consequently, this segment recorded sales of 1,285 million yen, up 20.4% year-on-year, and operating loss amounted to
108 million yen against that of ¥88 million yen a year earlier.
Notes: Segment business results stated in the paragraphs above are before adjustment 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 Business; and 2) recording business outsourcing service fees and group growth subsidies received fromindividual Future Group companies as income under segment income adjustments. In addition, from the first quarter of the
fiscal year under review, the Group integrated “IT Consulting Business” and “Package & Service Business” into “ITConsulting & Service Business.” Year-on-year changes were calculated for comparison upon adjusting the values for theprevious fiscal year’s first quarter cumulative period for the revised reporting segment categorization and measurement
methods.

-2-2. Quarterly Period Consolidated Financial Statements and Related Notes(1)

Quarterly Period Consolidated Balance Sheets(in thousands of yen)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

11,761,815
4,242,997
1,800
796,354
59,435
197,714
1,549,740
554,818(5,022)-3-

Consolidated first quarter
under review(March 31, 2017)19,159,655

8,292,721
5,354,866
1,800
833,535
140,712328,521
1,577,636
1,153,320(5,007)
17,678,106

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

1,060,001(828,618)
231,3835,430
1,991,656(1,732,136)
259,519496,333

350,312333,201
18,855702,369

1,706,792
559,026
18,4492,284,267

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

1,749,412
1,310,788
165,066
110,145(62,322)
3,273,090
6,053,691
23,731,798

(in thousands of yen)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-4-Consolidated first quarter
under review(March 31, 2017)866,932
795,562
883,527
197,318
90,593
1,863
35,763
1,586,389
4,457,951

902,1286,000
787,693398,625
715,30970,9348,800
1,949
1,821,803
4,713,244

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

1,014,500
290,631
14,594
1,319,725
6,032,969

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

1,421,815
2,507,763
14,856,551(1,499,494)
17,286,635

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

65,482(1,020)10,49874,959337,233
17,698,828
23,731,798

(2)Quarterly Period Consolidated Statements of Income and Comprehensive Income(First quarter of consolidated fiscal year under review)(in thousands of yen)

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
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Total non-operating expenses
Ordinary income
Extraordinary losses
Loss on sales of shares of subsidiaries and associates
Loss on change in equity
Total extraordinary losses-5-First quarter of previous
consolidated fiscal year
(from January 1, 2016
to March 31, 2016)
8,597,363
5,195,064
3,402,299

First quarter of consolidated
fiscal year under review(from January 1, 2017
to March 31, 2017)
8,715,408
5,253,667
3,461,741

96,564
1,006,294
19,43753,16318,36470,616986,245
2,250,686
1,151,612

109,292
949,795
25,243
91,764
21,72090,9601,180,424
2,469,201
992,540

1,137
698

350
575

38,892

36,203

4,984
45,7132,730
39,8591,874
27,45429,3281,167,996

1,780
14,494
16,274
1,016,124

808
1,270
2,078

–
–
–

(in thousands of yen)First quarter of previous
consolidated fiscal year
(from January 1, 2016
to March 31, 2016)
1,165,917
443,819722,098

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 toowners of parent
Quarterly comprehensive income attributable to noncontrolling interests-6-

First quarter of consolidated
fiscal year under review(from January 1, 2017
to March 31, 2017)
1,016,124
391,018
625,106

726,416

612,566(4,317)

12,540(13,072)–
27,187

4,702(1,097)
4,785

73(3,292)

14,188736,287

5,097
630,204

737,806

617,632(1,519)12,571

(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 of taxeffect accounting profit before income taxes of the consolidated fiscal year and then multiplying the effective tax rate by thequarterly 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.

-7-

(Segment information)
Segment information
I. First quarter of the previous consolidated fiscal year (from January 1, 2016 to March 31, 2016)
1. Amounts of net sales and income or loss by business segment reported(in thousands of yen)Amount on
Quarterly Period
Adjustment Consolidated
Statements of(Note 2)
Income(Note 3)

Reportable segments
IT
New Media
Corporate
Consulting& Web
Revitalizati& Service
Serviceon BusinessBusiness
Business

Total

Other
(Note 1)Total

Net sales
Net sales to outside
6,345,855 1,068,279 1,183,229 8,597,363
clients
Inter-segment sales
49,09010
2,091
51,192or transfer
Total

6,394,946 1,068,289 1,185,321 8,648,556

Segment income(loss)

1,190,497(88,479)

15,282 1,117,300-

8,597,363-

8,597,363-

51,192(51,192)--

8,648,556(51,192)

8,597,363(7,428)1,109,872

41,7401,151,612(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. First quarter of consolidated fiscal year under review (from January 1, 2017 to March 31, 2017)
1. Amounts of net sales and income or loss by business segment reported(in thousands of yen)

Reportable segments

Amount on Quarterly

Other(Note 1)

Adjustment Period Consolidated
Statements of Income(Note 2)IT
New Media
Consulting& Web& Service
ServiceBusiness
Business

Total

7,432,986 1,282,422

8,715,408-

8,715,408-

8,715,408

3,482

52,738-52,738(52,738)-

Total

7,482,242 1,285,905

8,768,147-

8,768,147(52,738)

8,715,408

Segment income(loss)

1,088,312 (108,202)

980,110(23,992)

956,118

36,422992,540

Total(Note 3)

Net sales
Net sales tooutside clientsInter-segment
sales or transfer

49,255(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.
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 fromindividual Future Group 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 and-8-strengthen 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 a single segment renamed “IT Consulting & Service Business.”
This resulted in changes in segment income for the first quarter of the fiscal year under review compared with thecalculation with the former method: a decrease of ¥22,481,000 in “IT Consulting & Service Business” and¥8,762,000 in “New Media & Web Service Business,” and an increase of ¥31,243,000 in segment income
adjustments.
The segment information for the first quarter of the previous fiscal year is prepared and disclosed based on therevised 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. Information about losses from impairment of non-current assets by reportable segment, goodwill, etc.
(Material changes in the amount of goodwill)
For the IT Consulting & Service Business segment, the Company has acquired shares of YDC Corporation andtransformed this company into its subsidiary. As a result of this transaction, the amount of goodwill has increased to878,054,000 yen in the first quarter under review.
For the New Media & Web Service Business segment, the Company has acquired shares of Matchalarm Inc. andtransformed this company into its subsidiary. As a result of this transaction, the amount of goodwill has increased to545,754,000 yen in the first quarter under review.

-9-3. Supplemental information
Orders received(in thousands of yen)Segment

First quarter of previous consolidated fiscal year
(from January 1, 2016
to March 31, 2016)

Orders received
IT Consulting & Service

Order backlog

First quarter of consolidated fiscal year under review(from January 1, 2017
to March 31, 2017)

Orders received

Order backlog

5,302,313

7,033,794

8,265,770

10,764,747

New Media & Web Service
Business

166,491

108,951

214,805

179,937

Total

5,468,805

7,142,746

8,480,575

10,944,684

Business(Notes) Orders received include adjustments for exchange rate fluctuations.

- 10 -