Consolidated Summary Report of Operating Results for Fiscal 2021 (Year Ended December 31, 2021)[Japan GAAP]

February 8, 2022

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:
Yasukazu Matsushita, Head of Financial & Accounting GroupTEL 03-5740-5724
Scheduled date of annual general shareholders’ meeting:March 23, 2022
Scheduled date for distributing dividend payments:
March 24, 2022
Scheduled date for filing the securities report:
March 24, 2022
Creation of supplemental material on financial results:
No
Holding of financial results briefing:
Yes (For institutional investors and analysts)(Amount rounded off to million yen)

1.

Consolidated Results for Fiscal 2021 (January 1, 2021 to December 31, 2021)(1) Consolidated financial results
Net Sales
Fiscal 2021
Fiscal 2020

(Note) Comprehensive income(Percentage figures indicate year-on-year changes.)

Operating income

Million yen%

Million yen%

Million yen%

48,69844,311

9.9
(2.4)

9,000
5,235

71.9
(19.8)

6,369
3,795

67.8
(16.7)

Fiscal 2021: 5,880 million yen ((43.9)%)
Net sales

Fiscal 2021
Fiscal 2020

Profit attributable to owners ofparent

Yen

%

%

71.97
42.74

15.9
11.1

18.5
11.8

Fiscal 2021: 30 million yen

Fiscal 2020: (0) million yen

The Company conducted a two-for-one stock split of its common stock on January 1, 2022. Profit per share is computed based on
the assumption that the stock split was conducted at the beginning of the previous fiscal year.

(2) Consolidated financial position
Total assets

Net assets

Million yen

Fiscal 2021
54,483Fiscal 2020
49,823(Reference) Shareholders’ equity Fiscal 2021: 41,801 million yen(Note)

Fiscal 2020: 10,477 million yen (172.5%)

Operating income(Reference) Share of profit (loss) of entities accounted for using equity method(Note)

Profit attributable to owners of parent

Shareholders’ equity ratio
Million yen

41,801
38,228

Net assets per share

%

Yen

76.7
76.6
Fiscal 2020: 38,175 million yen

472.19431.44The Company conducted a two-for-one stock split of its common stock on January 1, 2022. Net assets per share is computed
based on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

(3) Consolidated cash flow position
Net cash provided by (used Net cash provided by (used Net cash provided by (usedin) operating activities
in) investing activitiesin) financing activities
Fiscal 2021
Fiscal 2020

Cash and cash equivalents
at the end of the period

Million yen

Million yen

Million yen

Million yen

9,611
4,452

(1,689)(666)(2,498)(2,708)21,43016,0102. Cash Dividends
Dividends per share
End of the first End of second
quarterquarter
dividend
dividend

Fiscal 2020
Fiscal 2021
Fiscal 2022 (Forecast)(Note)End of third
quarter
dividend

Period-end
dividend

Annualdividends(total)Total

Ratio ofdividends to
net assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

－
－
－

20.00
23.00
15.00

－
－
－

20.00
28.00
15.00

40.00
51.00
30.00

1,769
2,257

46.8
35.4
36.1

5.2
5.6

The Company conducted a two-for-one stock split of its common stock on January 1, 2022. The dividend amount for fiscal 2020and fiscal 2021 is the actual dividend amount before the stock split was conducted.

3. Projected Consolidated Results for Fiscal 2022 (January 1, 2022 to December 31, 2022)
Net SalesFirst six months(accumulated
total)
Full-year(Note)

Dividend
payout ratio(consolidated)(Percentage figures indicate year-on-year changes.)

Profit attributable to ownersof parent

Operating income

Profit per share

Million yen%

Million yen%

Million yen%

Yen

26,50055,500

14.6
14.0

5,000
10,500

33.5
16.7

3,500
7,350

29.8
15.4

39.54
83.03

The Company conducted a two-for-one stock split of its common stock on January 1, 2022. Profit per share in the Projected
Consolidated Results for Fiscal 2022 takes into account the effect of the stock split.

* Notes(1) Changes in significant subsidiaries during the fiscal year under review (changes in specified subsidiaries accompanied by changes in thescope of consolidation): None
(2) 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
(3) Number of outstanding shares (common stock)1) Total outstanding shares as of the95,328,000 shares Fiscal 2020end of the period (including
Fiscal 2021
treasury shares)
2) Total treasury shares as of the end
6,801,478 shares Fiscal 2020
Fiscal 2021of the period
3) Average number of outstanding
shares during the period under
88,509,695 shares Fiscal 2020
Fiscal 2021
review(Note)

95,328,000 shares
6,845,222 shares
88,783,509 shares

The Company conducted a two-for-one stock split of its common stock on January 1, 2022. “Total outstanding shares as of theend of the period,” “Total treasury shares as of the end of the period,” and “Average number of outstanding shares during theperiod under review” are computed on the assumption that the stock split was conducted at the beginning of the previous
fiscal year.

(Reference) Overview of non-consolidated results
Non-consolidated Results for Fiscal 2021 (January 1, 2021 to December 31, 2021)(1) Non-consolidated operating results
Net sales
Fiscal 2021
Fiscal 2020

(Percentage figures indicate year-on-year changes.)

Operating revenue

Operating income

ProfitMillion yen%

Million yen%

Million yen%

Million yen

%

7,532
5,393

39.7
25.4

2,860
3,460

(17.3)(27.8)

4,989
4,709

5.9
(17.2)

3,708
4,146

(10.6)(23.6)

Profit per share
yen

Fiscal 2021
Fiscal 2020
(Note)

41.90
46.71

The Company conducted a two-for-one stock split of its common stock on January 1, 2022. Profit per share is computed based on
the assumption that the stock split was conducted at the beginning of the previous fiscal year.

(2) Non-consolidated financial position
Total assets
Fiscal 2021
Fiscal 2020

Net assets

Net assets per share

Million ye%yen

43,467
41,11835,46834,11381.6
83.0

400.66385.54(Reference) Shareholders’ equity Fiscal 2021: 35,468 million yen(Note)

Shareholders’ equity ratio

Million ye

Fiscal 2020: 34,113 million yen

The Company conducted a two-for-one stock split of its common stock on January 1, 2022. Net assets per share is computed
based on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

* This summary of annual financial results is outside the scope of auditing 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 to be reasonable, and the Company does not promise to achieve any of them. Actual results may differ significantly from forecasts due tovarious uncertain factors.

Contents
Contents......................................................................................................................................................................................................... 1
1. Overview of Operating Results and Other.................................................................................................................................................... 2(1) Overview of operating results for Fiscal 2021 ........................................................................................................................................ 2(2) Overview of the financial position for fiscal 2021 .................................................................................................................................. 3(3) Overview of cash flows for fiscal 2021 .................................................................................................................................................. 3(4) Future outlook......................................................................................................................................................................................... 4(5) Dividend policy and dividends for the current and next year.................................................................................................................. 5
2. The Future Group ......................................................................................................................................................................................... 6
3. Basic Approach to Selection of Accounting Standards ................................................................................................................................ 6
4. Consolidated Financial Statements and Major Notes ................................................................................................................................... 7(1) Consolidated balance sheets ................................................................................................................................................................... 7(2) Consolidated statements of income and comprehensive income ............................................................................................................ 9(3) Consolidated statements of changes in net assets ................................................................................................................................. 11(4) Consolidated statements of cash flows ................................................................................................................................................. 13(5) Notes to consolidated financial statements ........................................................................................................................................... 15(Notes on premise of a going concern) ............................................................................................................................................... 15(Segment information) ....................................................................................................................................................................... 15(Per share data) ................................................................................................................................................................................... 17(Significant subsequent events) .......................................................................................................................................................... 17
5. Other .......................................................................................................................................................................................................... 18

1. Overview of Operating Results and Other(1) Overview of operating results for Fiscal 2021
(Overview of the fiscal year under review)
Consolidated results of the Group for the fiscal year under review (January 1, 2021 to December 31, 2021) were as
follows:
Net sales
48,698 million yen (up 9.9% year on year)
Operating income
9,000 million yen (up 71.9% year on year)
Profit attributable to owners of parent
6,369 million yen (up 67.8% year on year)

During the fiscal year under review, we saw companies implementing management innovation, including operational
reform and development of new digital services more actively. Companies became more aware of challenges indigital transformation (DX) in response to COVID-19 countermeasures, etc., necessitating a revamping of their
supply chains and teleworking, while the efforts to adopt information technology and digitalization were accelerated
across all industries and fields.
In terms of individual lifestyles, the use of IT-driven services, such as shopping at e-commerce sites, enjoying
entertainment and sports on video and online, and accessing education and self-development services online, havespread widely. At the same time, camping and other outdoor leisure activities continued to be popular.
In these circumstances, thanks to steady orders received for DX projects, etc., strict quality management andemphasizing appropriate value, consolidated net sales, operating income, and profit attributable to owners of parent
all stood at a record high.
Details of the performance (net sales and operating income) 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 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 energy industry's first
fully automated system using AI and IoT technology, and the development of digital infrastructure using our
proprietary AI technology for the retail and logistics industries. In addition to that, the Company made steadyprogress with projects that would contribute to its medium-term growth, such as a project for introducing nextgeneration banking systems to regional financial institutions and projects for reforming mission-critical systems
for staffing service providers and wholesalers. Thanks to these efforts, net sales were up over the same period
for the previous fiscal year. The company also saw a sharp increase in operating income, mainly due to strict
quality control and revenue management, and the pursuit of value of its IT systems.
Future Inspace, Inc. stably acquired commissioned maintenance and operation projects in cooperation with
Future Architect, Inc., and continued to receive orders for new development projects. As a result, net sales andoperating income increased year on year.
Future One, Inc., undertook optimization in customizing “InfiniOne,” its original package software, whilestrengthening channels with outside sales partners, etc. As a result, its net sales and operating income increased
year on year.
YDC Corporation endeavored to expand its customer base in the logistics field by providing unique know-how
to the Group’s customers. However, due to a decrease in SI projects, net sales and operating income decreased
year on year.
Both net sales and operating income of dit Co., Ltd. rose year on year. The company received favorable orders
for vulnerability assessment, computer forensics, incident response, and other cyber security-related services, aswell as a steady stream of orders for network construction-related services designed to improve the informationand communications technology (ICT) environment.
As a result, net sales of the segment increased to 39,258 million yen (up 10.6% year on year) and operating
income grew substantially to 8,925 million yen (up 82.1% year on year).
(2) Business Innovation BusinesseSPORTS Co., Ltd. made active investment in online sales of outdoor products which make outdoor activities
more enjoyable, resulting in an increase in sales mainly of its private brand QUICKCAMP. However, net sales
grew but operating income fell on a year-on-year basis because of temporary expenses including those forrenovating the infrastructure system of its EC site and fees incurred from changing the corporate name fromeSPORTS Co., Ltd. to YOCABITO CO., LTD. in March 2022.
-2-

CodeCamp, Inc. saw an increase in orders received from corporations by capturing their demand for shiftingfrom group training to online training, offset by a decrease in individual orders due mainly to the entry ofcompetitors. The company also made active investment for curriculum development and advertisement toenhance recognition, resulting in a decrease in net sales and operating income year on year.
Both net sales and operating income of Tokyo Calendar Inc. rose year on year significantly due to stable revenue
from Internet services including Tokyo Calendar Date, growth in magazine and advertisement sales, and efforts
to monetize investment and convert it into profit more effectively.
Both net sales and operating income of LaiBlitz, Inc. were unchanged from the previous fiscal year. This wasdue to a decrease in sales for existing customers, despite the efforts to provide various sports-related data and avideo management service which resulted in an acquisition of new customers.
As a result, this segment’s net sales increased to 9,596 million yen (up 7.7% year on year) but operating income
fell to 413 million yen (down 10.7% year on year).
(Note) Segment results mentioned above are before adjustment for intersegmental sales and transfers.
(2) Overview of the financial position for fiscal 2021
Assets, liabilities and net assets
The following is the analysis of financial position for the fiscal year under review.
Assets54,483 million yen (up 9.4% year on year)
Liabilities
12,682 million yen (up 9.4% year on year)
Net assets
41,801 million yen (up 9.3% year on year)
The following is the analysis of financial position for the fiscal year under review.
1) Assets
Current assets were 32,112 million yen on a consolidated basis at the end of the fiscal year under review, up
5,676 million yen from the preceding year, and non-current assets amounted to 22,371 million yen, down 1,015
million yen, with total assets standing at 54,483 million yen, up 4,660 million yen. The main factors included a
decline in the market price of investment securities in investments and other assets (down 734 million yen),offset mainly by an increase in cash and deposits (up 5,419 million yen) that was boosted by increase in profit
and an increase in short-term securities (up 899 million yen).
2) Liabilities
Current liabilities were 7,906 million yen at the end of the fiscal year under review, up 1,429 million yen fromthe preceding year, and non-current liabilities were 4,775 million yen, down 342 million yen. Hence, total
liabilities came to 12,682 million yen, up 1,087 million yen. The main factors included a decrease in deferred tax
liabilities (down 336 million yen year on year) due to a decline in the market price of investment securities held,
offset by an increase in income taxes payable (up 1,451 million yen) due to a substantial increase in profit before
income taxes.
3) Net assets
Net assets were 41,801 million yen at the end of the fiscal year under review, up 3,572 million yen from thepreceding year. The main factors included a decrease in valuation difference on available-for-sale securities(down 517 million yen), offset by an increase in retained earnings (up 4,149 million yen).
During the second quarter of the current consolidated fiscal year, the Company acquired additional shares in its
consolidated subsidiary, CodeCamp, Inc. As a result, capital surplus became a negative value after it was
reduced by 369 million yen, so the negative value was deducted from retained earnings.
(3) Overview of cash flows for fiscal 2021
The following is the analysis of the Group’s consolidated cash flows for the fiscal year under review.
1) Cash flows from operating activities
Net cash from operating activities saw an inflow of 9,611 million yen in total (compared with an inflow of 4,452
million yen in the previous fiscal year), chiefly due to the posting of profit before income taxes of 9,185 million
yen and depreciation of 1,018 million yen, despite income taxes paid amounting to 1,449 million yen.

-3-2) Cash flows from investing activities
Net cash from investing activities saw an outflow of 1,689 million yen (compared with an outflow of 666
million yen in the previous fiscal year), chiefly due to the posting of purchase of securities of 1,102 million yen,purchase of property, plant and equipment of 274 million yen, and purchase of intangible assets of 748 million
yen, offset mainly by proceeds from redemption of securities of 200 million yen and proceeds from collection oflease and guarantee deposits of 276 million yen.
3) Cash flows from financing activities
Net cash from financing activities saw an outflow of 2,498 million yen (compared with an outflow of 2,708
million yen in the previous fiscal year), mainly reflecting cash dividends paid of 1,902 million yen and purchaseof shares of subsidiaries not resulting in change in scope of consolidation of 450 million yen.
4) Cash and cash equivalents at the end of the period
Cash and cash equivalents at the end of the fiscal year under review stood at 21,430 million yen, with anincrease of 5,419 million yen resulting from operating, investing and financing activities.
(4) Future outlook
The Group’s earnings forecast for the fiscal year ending December 31, 2022 is as follows.
Net sales
55,500 million yen (up 14.0% year on year)
Operating income
10,500 million yen (up 16.7% year on year)
Profit attributable to owners of parent
7,350 million yen (up 15.4% year on year)
In the medium to long term, corporate needs such as for IT investment are expected to continue increasing, driven by
the 2025 Digital Cliff and the need to respond to economic and social issues such as changes in work styles,
including remote working, as well as ESG factors and SDGs.
The Group will strive to accurately grasp the needs of companies promoting these management reforms through IT,
then leverage Group synergies to provide active and multilateral support in an effort to gain even further support from
customers in many and diverse industries.
Furthermore, by making effective use of intellectual property and conducting flexible strategic investments including
M&As as the Group, we will evolve our business model and achieve further growth from the next fiscal year onward.
In addition, the Group will also invest in its business foundation with a view to the future, such as continuous
personnel recruitment and training and R&D. In tandem with this, the Group will strengthen its governance bystrengthening internal communication within the Group and further improving the accuracy of its quality
management.
Noteworthy events in each business segment are as follows.
(1) IT Consulting & Service Business
Future Architect, Inc. has seen an increase in orders for grand designs from customers implementing
management reforms and core system renewals from diverse industries conscious of the advancement of DX.
The company will strive to steadily implement these projects while continuing to capture new orders fromcompanies that have investment needs.
It will also strengthen its provision of insights in IT in the form of a “next-generation banking system,” which
will contribute to solving long-standing issues for the regional financial institution sector, and to bolster its
initiatives aimed at medium- to long-term growth, such as supporting the realization of digitally sophisticatedcorporate strategies as a whole. Furthermore, it will enhance its organizational capabilities as a leader of the next
generation through emphasizing the acquisition of excellent talented people, investment in training, quality
control and project management.
YDC Corporation will strive to enhance its services from the provision of AI-driven quality control systems tobusiness reform consulting in the area of development design to meet DX demand in the manufacturing sector.
In addition, the company will further leverage Group synergies by delivering unique solutions to the Group’s
customers which have been cultivated in design, manufacturing, and logistics areas of the manufacturing sector.
Future One, Inc. will strive to expand orders by strengthening channels such as the Group’s network andcollaboration with external sales partners to provide its original software package “InfiniOne,” which is one ofits strengths. At the same time, it will strengthen the quality control system and enhance its organizational
capabilities for securing a more stable profit.
dit Co., Ltd. will strive to address customer’s needs for vulnerability assessment, computer forensics, incident
response, and other cyber security-related services by strengthening security-related consulting and theeducation-related business in addition to conventional services in order to acquire new customers.
-4-(2) Business Innovation Business
In March 2022, eSPORTS Co., Ltd. will change the corporate name to YOCABITO CO., LTD. which contains
the sound of a new key word YOKA, a Japanese word for “leisure,” representing the company’s willingness toprovide selected products and services that reflect customers’ requirements. To that end, eSPORTS Co., Ltd.
will make use of both real and IT capabilities for further growth, with a flagship store “YOCABITO-outdoor
things,” a store centered on QUICKCAMP brand camp gear and outdoor apparel that will be opened in the cityof Gifu in Gifu Prefecture on March 18, 2022, and the renovated infrastructure system of its EC site.
Tokyo Calendar Inc. will strengthen online services in pursuit of profit growth by further improving promotional
proposals for corporate customers, promoting the sales of digitally designed fee-based content, as well as
starting a new digital platform that unifies media and online services.
CodeCamp, Inc. will strengthen sales activities in the corporate sector and effectively address the needs forsemi-order training (a Japanese term that means some parts can be made to order) for corporate customers, while
enhancing the seminar curriculum for users aiming to become IT engineers and web designers and providing
career-building support specialized in technology, to acquire more users.
LaiBlitz, Inc. aims to increase revenue growth by introducing a membership management and EC package“FastBiz” across the entertainment and regional community areas, and starting a new fan service platform thatenables the provision of multi-dimensional fan services in the sports and entertainment areas.
(5) Dividend policy and dividends for the current and next year
The Company determines its dividend by comprehensively taking into account the state of its accounting period
profit and loss, cash flows and treasury stock purchasing while placing shareholder return as its priority management
issue and securing a proper level of internal reserves for the organization to continue growing in a sustainable
manner.
The Company plans to apply a dividend payout ratio standard of at least 35% of consolidated earnings.
Under the above-mentioned policy, we plan to pay a total dividend of 28.00 yen per share as a year-end dividend
from surplus. The full fiscal year dividend comprising the year-end dividend and the previously paid interim dividend
is expected to be 51.00 yen per share (consolidated dividend payout ratio of 35.4%).
We plan to pay an annual dividend of 30.00 yen per share (year-end dividend of 15.00 yen and interim dividend of
15.00 yen, consolidated dividend payout ratio of 36.1%) as a dividend from surplus for the next fiscal year.
The Company conducted a two-for-one stock split of its common stock on January 1, 2022. The dividend amount for
fiscal 2022 is the dividend amount after the stock split was conducted.

-5-2. The Future GroupThe Group (the Company and its related companies) has introduced a holding company structure, and consists of 19
consolidated subsidiaries and four equity-method affiliates as of December 31, 2021.
The Company, as a holding company, establishes the Group’s growth strategy, monitors management of the Group
companies, and provides specialty services to these companies. Details of the business segments of the Group and how
major related companies in charge are positioned in the relevant segment are as follows.
(IT Consulting & Service Business)
In this business, the Group helps clients solve problems, by sharing management issues with them from a managerial
perspective, understanding the essence of the clients’ businesses and establishing information systems for them using
advanced IT.
Company nameBusiness activities
Provision of IT consulting services from an objective andFuture Architect, Inc. (subsidiary)
independent standpoint by using leading-edge information
technology
Additional development as well as maintenance and operation
Future Inspace, Inc. (subsidiary)
services for projects primarily developed by Future Architect,
Inc.
Provision of IT consulting services, including a solution for
YDC Corporation (subsidiary)
integrating and analyzing quality information, mainly tocustomers in the manufacturing business
Development, sales and maintenance of mission-criticalpackaged software for sales management, production
Future One, Inc. (subsidiary)
management, accounting and other processes as well as
provision of cloud-based services
Development, sales and maintenance of and support for software
Micro CAD Co., Ltd. (subsidiary)
packages for managing intellectual property, and consigned
development of design control systems for manufacturers
Security consulting and sales of products for forensic services,
dit Co., Ltd. (subsidiary)
network operations and security
Provision of management consulting services to create
Innovation Laboratory, Inc. (subsidiary)innovation
Development and sales of and support for cloud-based logistics
Logizard Co., Ltd. (affiliate)
and inventory management software (warehouse management
system or WMS)
(Business Innovation Business)
In this business, the Group provides original services using IT and creates business innovations.
Company nameeSPORTS Co., Ltd. (subsidiary)Tokyo Calendar Inc. (subsidiary)
CodeCamp, Inc. (subsidiary)
LaiBlitz, Inc. (subsidiary)Business activities
Sales of sports, outdoor and fitness gear on the Internet
Publication of the magazine “Tokyo Calendar,” provision of
information using websites and smartphone applications, andservices including reservations for tables at restaurants
Online and offline educational service including operation of theonline programming school “CodeCamp”
Development of software related to sports and entertainment andoperation of online services

Among affiliated companies engaged in businesses that are not included in the two businesses mentioned above, such as
investing in, as well as holding and managing securities, the main companies are as follows:- Major affiliated company
Future Investment Corp. (subsidiary)
3. Basic Approach to Selection of Accounting Standards
Taking into consideration the comparability of consolidated financial statements among enterprises, the Group prepares
consolidated financial statements under Japanese GAAP.
The Company intends to apply International Financial Reporting Standards (IFRS) appropriately in consideration of
circumstances inside and outside of Japan.
-6-

4. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheets(in thousands of yen)Previous consolidated fiscal year
(December 31, 2020)

Consolidated fiscal year underreview(December 31, 2021)

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

20,530,178
7,220,890
1,900,000
1,230,418
9,170
1,224,838(3,000)32,112,496

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

1,685,850(1,003,036)
682,813855
2,969,468(2,497,933)
471,535
1,155,203

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

10,157
1,915,529
208,000
4,411
2,138,098

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

17,697,514
1,175,386
19,289261,717(75,881)
19,078,025
22,371,328
54,483,824

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-7-

(in thousands of yen)Previous consolidated fiscal year
(December 31, 2020)

Consolidated fiscal year underreview(December 31, 2021)

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

913,259－
1,491,869
2,215,692
243,914
34,388－3,007,706
7,906,829

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

350,118
4,278,335
147,176
4,775,629
12,682,459

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

4,000,000－
29,299,691(2,221,327)
31,078,364

11,229,849(4,185)
13,485
11,239,149
53,32338,228,750
49,823,398

10,711,892
1,692
9,415
10,723,000－

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-8-41,801,365
54,483,824

(2) Consolidated statements of income and comprehensive income(in thousands of yen)

44,311,243
26,245,588
18,065,655

Consolidated fiscal year underreview(from January 1, 2021 to
December 31, 2021)
48,698,549
26,144,669
22,553,880

523,668
5,035,431
329,016
1,250,513
487,720571,394
425,377
417,135
39,6453,750,700
12,830,603
5,235,052

571,7855,589,566
282,480
1,096,647
609,605
601,342366,341
466,098
39,645
3,929,944
13,553,457
9,000,423

791
184,834

1,740
229,531－
3,651
14,681
203,958

30,777－29,605
291,655

285

218

703
－
989
5,438,020

－
2,012
2,231
9,289,846－
93,31893,318

6,376
974
7,351

－
－
683
683
5,530,655

23,49388,575－
112,069
9,185,128

Previous consolidated fiscal year
(from January 1, 2020 to
December 31, 2020)
Net Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Directors’ compensations
Salaries and bonuses
Other salaries
Rents
Training expenses
Research and development expenses
Depreciation
Recruiting expenses
Amortization of goodwill
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
Share of loss of entities accounted for using equity
methodForeign exchange losses
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
Amortization of goodwill
Loss on change in equity
Total extraordinary losses
Profit before income taxes-9-(in thousands of yen)

1,632,872
49,441
1,682,313
3,848,342

Consolidated fiscal year underreview(from January 1, 2021 to
December 31, 2021)
2,898,014(109,816)
2,788,198
6,396,930

3,795,019
53,3236,369,836
27,094

6,631,516(4,772)339(517,957)
5,878
238

1,713
6,628,796
10,477,138(4,308)(516,148)
5,880,782

10,423,815

5,853,688

53,32327,094Previous consolidated fiscal year
(from January 1, 2020 to
December 31, 2020)
Income taxes – current
Income taxes – deferred
Total income taxes
Profit(Breakdown)
Profit attributable to owners of parent
Profit attributable to non-controlling interests
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
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 10 -

(3) Consolidated statements of changes in net assets
Previous consolidated fiscal year (from January 1, 2020 to December 31, 2020)(in thousands of yen)
Shareholders’ equity
Capital stock
Balance at the beginning of
the period

1,421,815

Capital surplus
2,525,165

Retainedearnings

Total
shareholders’equityTreasury shares

23,232,499(1,493,579)

25,685,901

Changes of items during theperiodDividends from surplus(1,823,893)(1,823,893)

Profit attributable toowners of parent

3,795,019

3,795,019

Purchase of treasury
shares
Disposal of treasury
shares(757,744)(757,744)

15,661

36,994

21,333

Transfer to capital stockfrom capital surplus

2,525,165

Transfer to capital stockfrom retained earnings

53,019(2,525,165)－(53,019)－

Net changes of items
other than shareholders’equityTotal changes of items
during the period

2,578,184(2,503,831)

1,918,106(742,083)

1,250,376

Balance at the end of theperiod4,000,000

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

26,936,278

Total accumulated other comprehensive income

Balance at the beginning of
the period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges4,598,333

586

Foreigncurrencytranslation
adjustment
11,432

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets4,610,352－

30,296,254

Changes of items during theperiodDividends from surplus(1,823,893)

Profit attributable toowners of parent

3,795,019

Purchase of treasury
shares(757,744)

Disposal of treasury
shares36,994

Transfer to capital stockfrom capital surplus－

Transfer to capital stockfrom retained earnings－

Net changes of items
other than shareholders’equity6,631,516(4,772)

2,052

6,628,796

53,323

6,682,119

Total changes of items
during the period

6,631,516(4,772)

2,052

6,628,796

53,3237,932,495

Balance at the end of theperiod11,229,849(4,185)

13,485

11,239,149

53,32338,228,750- 11 -

Consolidated fiscal year under review (from January 1, 2021 to December 31, 2021)(in thousands of yen)
Shareholders’ equity
Capital stock
Balance at the beginning of
the period

4,000,000

Capital stock
21,333

Capital stock

Capital stock

25,150,606

Capital stock(2,235,662)

26,936,278

Changes of items during theperiodDividends from surplus(1,902,884)(1,902,884)

Profit attributable toowners of parent

6,369,836

6,369,836

Purchase of treasury
shares

(267)

(267)

14,602

44,984

Disposal of treasury
shares30,381

Purchase of shares of
consolidated subsidiaries(51,715)(317,866)－(21,333)

4,149,085

14,334

4,142,086

4,000,000－

29,299,691(2,221,327)

31,078,364(369,582)

Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end of theperiodTotal accumulated other comprehensive income

Balance at the beginning of
the period

Valuationdifference on
available-forsale securities

Deferred gains
or losses onhedges

11,229,849(4,185)

Foreigncurrencytranslation
adjustment
13,485

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets

11,239,149

53,32338,228,750

Changes of items during theperiodDividends from surplus(1,902,884)

Profit attributable toowners of parent

6,369,836

Purchase of treasury
shares(267)

Disposal of treasury
shares44,984Purchase of shares of
consolidated subsidiaries
Net changes of items
other than shareholders’equity△369,582(517,957)

5,878(4,069)(516,148)(53,323)(569,471)

Total changes of items
during the period(517,957)

5,878(4,069)(516,148)(53,323)

3,572,614

Balance at the end of theperiod10,711,892

1,692

9,415

10,723,000－

41,801,365- 12 -

(4) Consolidated statements of cash flows(in thousands of yen)Previous consolidated fiscal year
(from January 1, 2020 to
December 31, 2020)

Consolidated fiscal year underreview(from January 1, 2021 to
December 31, 2021)

5,530,655
1,102,489
39,64559,371

9,185,128
1,018,096
128,220(3,000)18,912(3,971)(241,519)(185,625)
285
703(13,573)(27,258)(13,285)(231,272)
218(30,777)683(3,651)－－
2,012(6,376)(93,318)－(866,170)(974)
23,493722,845

255,882(276,946)
30,686
189,228
428,632
5,985,976
185,511(650)(1,718,302)
4,452,534(148,287)(115,242)
182,203
29,181
126,224
10,827,579
233,044(353)(1,449,220)
9,611,049

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
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 change in equity
Foreign exchange losses (gains)
Loss (gain) on sale of shares of subsidiaries andassociates
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable– tradeDecrease (increase) in inventories
Increase (decrease) in accounts payable – trade
Increase (decrease) accounts payable – other
Decrease (increase) in other assets
Increase (decrease) in other liabilities
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities- 13 -

(in thousands of yen)Previous consolidated fiscal year
(from January 1, 2020 to
December 31, 2020)

Consolidated fiscal year underreview(from January 1, 2021 to
December 31, 2021)(100,091)－(121,165)(433,260)－(1,102,251)
200,000(274,542)(748,721)(43,330)－

13,200－(110,000)
99,940(17,518)

19,078(40,000)
3,811(15,986)

12,166－
3,125(666,802)

276,427
19,9543,000(1,689,361)(11,472)(108,505)(8,000)(3,320)(142,824)－－(758,502)(1,822,078)(2,708,558)(450,000)(268)(1,902,303)(2,498,717)

3,312
1,080,486
14,929,901
16,010,388(3,180)5,419,790
16,010,388
21,430,178

Cash flows from investing activities
Purchase of securities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Proceeds from sale of shares of subsidiaries andassociates
Proceeds from liquidation 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 sale of golf 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- 14 -

(5) Notes to consolidated financial statements(Notes on premise of a going concern)
Not applicable.
(Segment information)
Segment information
1. Overview of reportable segments
The reportable segments of the Group are constituent units of the Company for which separate financial
information can be obtained, and the Board of Directors examines such information on a regular basis todetermine the allocation of management resources and evaluate business performance.
The Group defines the classification of business segments by comprehensively taking into account main
services, solutions, customers and markets, and has two reportable segments: the IT Consulting & Service
Business and Business Innovation Business.
The business operations of the two reportable segments are as follows:
Reportable segments
IT Consulting & Service BusinessBusiness Innovation BusinessBusiness operations
In this business, the Group helps clients solve problems, by sharing
management issues with them from a managerial perspective,
understanding the essence of the clients’ businesses and establishing
information systems for them using advanced IT.
In this business, the Group provides original services using IT and
creates business innovations.

2. Methods of calculating net sales, income or loss, assets, liabilities, and other items by reportable segment
The accounting method applied to the above-mentioned business segments is a method in accordance withthe accounting policy applied to the preparation of the consolidated financial statements.
Income of reportable segments is based on operating income.
Intersegment sales and transfers are based on market prices.
Reportable segments
IT Consulting & Service BusinessBusiness Innovation BusinessBusiness operations
In this business, the Group helps clients solve problems, by sharing
management issues with them from a managerial perspective,
understanding the essence of the clients’ businesses and establishing
information systems for them using advanced IT.
In this business, the Group provides original services using IT and
creates business innovations.

- 15 -

I First nine months of the previous consolidated fiscal year (from January 1, 2020 to September 30, 2020)
3. Information on the amounts of net sales, profit or loss, assets, liabilities, and other items by reportablesegment
Previous consolidated fiscal year (from January 1, 2020 to December 31, 2020)(in thousands of yen)
Reportable segments

Other(Note 1)

Adjustments(Note 2)

Amount stated in
the financial
statements(Note 3)

IT Consulting& ServiceBusiness

BusinessInnovation

35,436,246

8,868,369

44,304,616

6,626

44,311,243－

44,311,243

52,08640,562

92,64854,833

147,481(147,481)

－

Total

35,488,333

8,908,932

44,397,265

61,45944,458,725(147,481)

44,311,243

Segment profit(loss)

4,900,852

462,481

5,363,333(21,088)5,342,245(107,193)

5,235,052

Segment assets

20,135,778

3,329,151

23,464,929

4,303,691

27,768,621

22,054,777

49,823,398

966,692

44,244

1,010,937

1,034

1,011,972

90,517

1,102,489

39,645－39,645－39,645－39,645462,394

139,646

602,041

12,209614,250

44,339658,589

Net sales
Sales to outsideclients
Intersegment sales
or transfer

Total

Total

Other items
Depreciation
Amortization of
goodwill
Increase inproperty, plant andequipment andintangible assets(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 to segment profit (loss) and segment assets represent the amount of intersegment transactions eliminated and income,expenses and assets of the holding company excluding the technology segment.
3. Segment profit (loss) is adjusted with operating income in consolidated financial statements.

Consolidated fiscal year under review (from January 1, 2021 to December 31, 2021)(in thousands of yen)
Reportable segments

Net sales
Sales to outsideclients
Intersegment sales
or transfer

Other(Note 1)

Adjustments(Note 2)

Amount stated in
the financial
statements(Note 3)

IT Consulting& ServiceBusiness

BusinessInnovation

39,160,621

9,521,722

48,682,343

16,205

48,698,549－

48,698,549

98,211

74,372

172,584

270,472

443,056(443,056)－
48,698,549

Total

Total

Total

39,258,833

9,596,094

48,854,927

286,678

49,141,606(443,056)

Segment profit

8,925,021

413,037

9,338,058

262,630

9,600,689(600,266)

9,000,423

Segment assets

23,518,208

3,521,522

27,039,731

4,518,041

31,557,772

22,926,051

54,483,824

Other items
Depreciation
935,665
64,115
999,780
5,127
1,004,908
13,1881,018,096
Amortization of
128,220－
128,220－
128,220－
128,220
goodwill
Increase inproperty, plant and859,141
162,048
1,021,189
19,016
1,040,206
99,9611,140,167
equipment andintangible assets(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 to segment profit and segment assets represent the amount of intersegment transactions eliminated and income,expenses and assets of the holding company excluding the technology segment.
3. Segment profit is adjusted with operating income in consolidated financial statements.

- 16 -

(Per share data)
Previous consolidated fiscal year
(from January 1, 2020 to December
31, 2020)

Consolidated fiscal year under review(from January 1, 2021 to December
31, 2021)

Net assets per share¥431.44¥472.19
Profit per share¥42.74¥71.97(Notes) 1. Diluted profit per share is not recorded because there are no potential shares.
2. The Company conducted a two-for-one stock split of its common stock on January 1, 2022. Net assets per share and profit per
share are computed based on the assumption that the stock split was conducted at the beginning of the previous fiscal year.
3. Profit per share is calculated based on the following:
Previous consolidated fiscal year
(from January 1, 2020 to December
31, 2020)

Consolidated fiscal year under review(from January 1, 2021 to December
31, 2021)

3,795,019

6,369,836－－

3,795,019

6,369,836

88,783,509

88,509,695

Profit per share
Profit attributable to owners of parent(thousands of yen)Amount not available for commonshareholders to common shares (thousands ofyen)Profit attributable to owners of parent related
to common stock (thousands of yen)
Average number of outstanding shares
during the period under review (share)(Significant subsequent events)(Stock split and partial amendment to the Articles of Incorporation in accordance with the stock split)
The Company conducted a two-for-one stock split of its common stock on January 1, 2022 in accordance with aresolution at a Board of Directors meeting held on November 24, 2021.
(1) Purpose of stock split
The purpose is to establish a more favorable investment environment, enhance liquidity of our shares andexpand our investor base by reducing the amount per investment unit.
(2) Overview of stock split
1) Method of splittingWith December 31, 2021 (December 30 in effect, because the aforementioned day was the holiday of theshareholder registry administrator) as the record date, one common share held by shareholders who areshown on the shareholder register as of the end of that date will be split into two shares.
2) Increase in number of shares by split
Total number of shares outstanding before stock split
Increase in number of shares by stock split
Total number of shares outstanding after stock split
Total number of shares authorized after stock split
3) Schedule for split
Date of public notice of record date
Record date
Effective date

47,664,000
47,664,000
95,328,000
378,752,000

December 15, 2021
December 31, 2021
January 1, 2022

4) Effect on per share information
The effect on per share information is described in the relevant section.

- 17 -

5. Other
Orders received(in thousands of yen)
Category

Previous consolidated fiscal year
(from January 1, 2020 to December 31,
2020)

Consolidated fiscal year under review(from January 1, 2021 to December
31, 2021)

Order received

Order received

Order backlog

Order backlog

IT Consulting & Service Business

32,429,029

9,516,505

41,280,255

11,636,139

Business Innovation

2,337,378

502,759

2,246,086

306,826

34,766,407

10,019,264

43,526,342

11,942,966

Total

Category

IT Consulting & Service BusinessBusiness Innovation
Total

Third quarter of the consolidated fiscal
year under review(from July 1, 2021 to September 30,
2021)

Fourth quarter of the consolidated
fiscal year under review(from October 1, 2021 to December
31, 2021)

Order received

Order received

Order backlog

Order backlog

12,834,470

14,192,969

7,833,371

11,636,139

497,930

329,558

625,655

306,826

13,332,401

14,522,528

8,459,026

11,942,966- 18 -