[Translation]
July 25 2013

Consolidated Summary Report of Operating Results for the Second Quarter of Fiscal 2013
(Year ending December 2013) [Japan GAAP]
Company name:

Future Architect, Inc.

Shares listed on: First Section of Tokyo Stock Exchange
Security code number 4722
Website: http://www.future.co.jp/
Representative:

Yasufumi Kanemaru, Chairman and CEO

Contact:

Yoshihiko Nakajima, Executive OfficerTel.:+81-3-5740-5724

Scheduled submit date of quarterly report: August 13, 2013
Scheduled date for distribution of dividend payments: September 24, 2013
Creation of supplemental material on quarterly financial results:

Yes

Holding of quarterly results briefing:

Yes (for institutional investors and securities analysts)(Amount rounded off to million yen)

1. Consolidated Results for the Second Quarter of Fiscal 2013 (January 1, 2013 to June 30, 2013)(1) Consolidated operating results (accumulated total)(Percentages are year-on-year changes)
Net sales
Million yen

Operating income%

Million yen

Ordinary income

Quarterly net income%

Million yen%

Million yen%

2Q, Fiscal 2013
13,545
21.7
1,570
116.7
2Q, Fiscal 2012
11,126(5.5)
724(55.5)
Note: Comprehensive income 2Q, Fiscal 2013: 1,087 million yen (126.9%)
2Q Fiscal 2012: 479 million yen (-52.6%)

1,697
804

111.1
(53.0)

1,037
463

123.8
(56.8)

Quarterly net income
per share

Quarterly net income
per share (fully diluted)

Yen

Yen

2Q, Fiscal 2013
23.20–
2Q, Fiscal 2012
10.26–
Note: Effective July 1, 2013, the Company conducted a 1:100 split of each share of its common stock. Net income pershare was calculated on the assumption that the stock split was conducted at the beginning of the previous consolidated
fiscal year.
(2) Consolidated financial position
Total assets
Million yen

Net assets
Million yen

Shareholders’equity ratio

Net assets per share%

Yen

2Q, Fiscal 201316,446
12,36874.3
274.03Fiscal 2012
14,83011,76678.5
258.65(Reference) Shareholders’ equity
2Q, Fiscal 2013: 12,228 million yen
Fiscal 2012: 11,645 million yen
Note: Effective July 1, 2013, the Company conducted a 1:100 split of each share of its common stock. Net assets per
share were calculated on the assumption that the stock split was conducted at the beginning of the previous consolidated
fiscal year.

[Translation]
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

Year-end
dividend

Yen

Total
Yen

Yen

Fiscal 2012–
750.00–750.001,500.00
Fiscal 2013–
750.00Fiscal 2013 (Forecast)–
7.50–
Note: Modification of the projected dividends announced most recently: No
Effective July 1, 2013, the Company conducted a 1:100 split of each share of its common stock. Year-end dividend forfiscal 2013 (forecast) reflects the said stock split.
3. Projected Consolidated Results for Fiscal 2013 (January 1, 2013 to December 31, 2013)(Percentages are year-on-year changes)

Net sales
Million yen%

Operating income Ordinary income

Net income

Million yen

Million yen%

Million yen%

Net income per share%

Yen

Full year
25,700 10.0
3,200 65.4
3,250 57.9
1,800 54.1
40.34
Note: Modification of the projected consolidated results announced most recently: No
Effective July 1, 2013, the Company conducted a 1:100 split of each share of its common stock. Net income per sharefor the projected consolidated results for fiscal 2013 reflects the said stock split.

[Translation]* Notes(1) Changes in significant subsidiaries in the consolidated second quarter under review (Changes in specified
subsidiaries that involved changes in the scope of consolidation): No(2) Application of special accounting for the preparation of quarterly consolidated financial statements: Yes
Income taxes and payables are calculated by appropriately estimating the legal effective tax rate after the adoption oftax effect accounting which is to be assessed upon net income before taxes of the consolidated fiscal year including theconsolidated second quarter under review and multiplying such estimated legal effective tax rate to the net income
before taxes of the previous consolidated quarter.
(3) Change in accounting policies or estimates and retrospective restatements
1) Change in accounting policies in accordance with revision of accounting standards: Yes2) Change in accounting policies other than item 1) above: No3) Change in accounting estimates: Yes4) Retrospective restatements: No

Note: For details, please refer to “Change in accounting policies or estimates and retrospective restatements” on page 3 of theaccompanying material of the quarterly earnings report.

(4) Number of outstanding shares (common stock)1) Total outstanding shares as of the endof the period (including treasury
2Q Fiscal 2013:
stocks)2) Total treasury stocks as of the end of
2Q, Fiscal 2013:
the period
3) Average number of outstanding
2Q, Fiscal 2013:
stocks during the quarter underreview(accumulated period for quarter)

47,664,000
shares3,040,800
shares44,727,079
sharesFiscal 2012:
Fiscal 2012:
2Q, Fiscal 2012:

47,664,000
shares2,640,800
shares45,219,525
sharesNote: Effective July 1, 2013, the Company conducted a 1:100 split of each share of its common stock. The above numbers
relating to shares were calculated on the assumption that the said stock split was conducted at the beginning of the previous
consolidated fiscal year.

* Indication of quarterly review procedure implementation status
This quarterly earnings report is exempt from the quarterly review procedures based upon the Financial Instruments and ExchangeAct. At the time of this document's release, review procedures for the quarterly financial statements under the Financial Instruments
and Exchange Act had not been completed.

* Points to note about the proper use of projections, and other noteworthy events
1. Projected results
The above projection, representing our best estimate based on information currently available to us, incorporates uncertain factors.
For details of the preconditions used in making the above-mentioned forecast and other relevant matters, refer to “Qualitative
Information on the Consolidated Results Forecast” on page 3 of the accompanying material of the quarterly earnings report.

2. Stock split
At its Board of Directors meeting held on May 30, 2013, the Company resolved to conduct a stock split and adopt a unit share system.
Based on the resolution, the Company split each share of its common stock into 100 shares, and set the share-trading unit at 100
shares, effective July 1, 2013. As for dividend and consolidated earnings forecasts for fiscal 2013 following the stock split and theadoption of the unit share system, please refer to the relevant items.

 Contents

1. Qualitative information about consolidated operating results for the second quarter of the fiscal year under review ...................... 2(1) Qualitative information about consolidated operating results ................................................................................................... 2(2) Qualitative information about consolidated financial condition ............................................................................................... 2(3) Qualitative information about consolidated earnings forecast .................................................................................................. 3
2. Matters related to summary information (notes) ................................................................................................................................. 3(1) Changes in significant subsidiaries in the consolidated first quarter under review ................................................................... 3(2) Application of special accounting for the preparation of quarterly consolidated financial statements ..................................... 3(3) Change in accounting policies or estimates and retrospective restatements ............................................................................. 3
3.

Quarterly Period Consolidated Financial Statements ...................................................................................................................... 4(1) Quarterly Period Consolidated Balance Sheets......................................................................................................................... 4(2) Quarterly Period Consolidated Statements of Income and Comprehensive Income (First half period) .................................... 6(3) Quarterly Period Consolidated Statements of Cash Flows........................................................................................................ 8(4) Notes on the going-concern assumption ................................................................................................................................. 10(5) Notes on significant changes to shareholders’ equity ............................................................................................................. 10(6) Segment information .............................................................................................................................................................. 11(7) Significant subsequent events ................................................................................................................................................. 12

4. Supplemental information............................................................................................................................................................... 13(1) Orders received ....................................................................................................................................................................... 13-1-

1. Qualitative information about consolidated operating results for the second quarter of the fiscal year underreview(1) Qualitative information about consolidated operating results
The Group posted net sales of ¥13,545 million for the first six months of the consolidated fiscal year under review, up 21.7%
from the previous year, operating income of ¥1,570 million, up 116.7%, and ordinary income of ¥1,697 million, up 111.1%. Net
income was ¥1,037 million, up 123.8%.
For the first six months of the fiscal year under review, due to strong orders received and sales, net sales increased andoperating income and loss improved substantially from the corresponding period of the previous fiscal year in all businesssegments.
The performance details of each segment, which represent values before adjusting for internal sales or transfers among
segments, are as follows.
In the IT Consulting Business, sales increased because multiple projects of new customers started and we were able tocontinuously win orders for projects from existing clients. Additionally, we began to provide cloud computing services forfinancial institutions (SKYBANK), and made steady progress in new service models, such as the medical cloud service, and theintroduction service for global ERP.
As for its businesses in Southeast Asia, sales of three subsidiaries totaled ¥613 million, up 154.4% from the previous fiscal
year, because their continued sales promotion activities bore fruit. Meanwhile, they posted an operating loss of ¥59 million in
total, failing to turn into the black, but the loss itself decreased.
As a result, net sales of this segment were ¥9,321 million for the first six months, up 31.9% from a year earlier, and operating
income was ¥1,388 million, up 84.1%.
In the Package & Service Business, Future One, Inc. posted an increase in license sales, and improved profitability of its
projects due to progress in the implementation of measures for stepping up project management, in which it had been engaged
since last year. Ascendia Inc. saw a sales rise as orders received remained steady, but its profit margin dropped due to increases in
outsourcing costs for some projects and recruitment costs, such as training expenses.
Consequently, net sales of this segment were ¥2,148 million for the first six months, up 7.8% from a year earlier, and operating
income was ¥127 million, up 1,091.4%.
In the Corporate Revitalization Business, Uoei Corporation, which operates a grocery supermarket, rose from a year ago
posting an increase in sales and a decrease in operating costs thanks to reduced logistics costs and optimized advertisingexpenses, as well as water, fuel and light expenses. Furthermore, Uoei launched new attempts including expansion of in-store
sushi kitchen and direct purchase of fish at fishing ports.
As a result, net sales of this segment were ¥2,257 million for the first six months, up 0.3% from a year earlier and operating
income was ¥46 million, up 42.5%.
(2) Qualitative information about consolidated financial condition(Assets, liabilities and net asset)
Total assets at the end of the first six months under review increased by ¥1,616 million from the end of the previous
consolidated fiscal year to ¥16,446 million. The main underlying factors were increases in notes and accounts receivable(increase of ¥358 million from the end of the previous consolidated fiscal year), as well as merchandise and finished goods(increase of ¥241 million) and goodwill (increase of ¥757 million).
Liabilities were ¥4,078 million, up ¥1,014 million, primarily due to increases in accounts payable (increase of ¥478 million)
resulting from rises in procurement of goods for sale and outsourcing cost, and other current liabilities (increase of ¥240 million).
Net assets were ¥12,368 million, up ¥601 million, primarily due to an increase in retained earnings (increase of ¥700 million).
(Analysis of cash flows)
Net cash from operating activities accounted for an inflow of ¥1,638 million for the first six months under review (compared
to an outflow of ¥22 million a year ago), mainly due to the posting of net income before taxes of ¥1,647 million, and an increasein notes and accounts payable-trade of ¥277 million, despite payment of income and other taxes of ¥515 million.
Net cash used in investment activities totaled ¥1,072 million (compared to an outflow of ¥256 million a year ago), due mainly
to purchase of property, plant and equipment totaling ¥192 million, purchase of intangible assets of ¥121 million, and payment of¥999 million for the purchase of investments in subsidiaries resulting in change in scope of consolidation.

-2-

Net cash outflow from financial activities was ¥488 million (compared to an outflow of ¥584 million for the corresponding
quarter of the previous fiscal year), mainly due to purchase of treasury stock of ¥148 million and dividends paid of ¥339 million.
As a result of these operating, investment, and financial activities, the balance of cash and cash equivalents at the end of thesecond quarter under review was ¥4,290 million.
(3) Qualitative information about consolidated earnings forecast
The Company will make no revision to the earnings forecast for the full fiscal year ending December 2013 that it announced
on April 25, 2013.

2. Matters related to summary information (notes)(1) Changes in significant subsidiaries in the consolidated first quarter under review
Not applicable(2) Application of special accounting for the preparation of quarterly consolidated financial statements
Income taxes and payables are calculated by appropriately estimating the legal effective tax rate after the adoption of tax effectaccounting which is to be assessed upon net income before taxes of the consolidated fiscal year including the consolidated
second quarter under review and multiplying such estimated legal effective tax rate to the net income before taxes of the previous
consolidated quarter.
(3) Change in accounting policies or estimates and retrospective restatements
Changes in accounting policies that are difficult to distinguish from changes in accounting estimates(Changes in depreciation method)
In accordance with the revision of the Corporation Tax Act of Japan, the depreciation method of the Company and its
domestic consolidated subsidiaries for property, plant and equipment acquired on or after January 1, 2013 has been changed tothe method under the revised act from the first quarter of the fiscal year under review.
The impact of this change on profit and loss for the first six months under review is immaterial.

-3-

3.

Quarterly Period Consolidated Financial Statements(1) Quarterly Period Consolidated Balance Sheets
Previous consolidated
fiscal year
(December 31, 2012)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Short-term investment securities
Merchandise and finished goods
Work in process
Accounts receivable-other
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent 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 noncurrent assets
Total assets-4-(in thousands of yen)
Consolidated second quarter
under review(June 30, 2013)

4,156,343
3,523,351
30,129134,677
33,597
1,358,569
153,662
387,026(6,034)
9,771,322

4,283,934
3,881,942
6,575
376,255
62,584
1,348,861
152,995
513,383(4,409)10,622,123

3,110,805(2,740,590)
370,214
122,868
1,840,525(1,448,329)
392,195
885,279

3,251,288(2,770,038)
481,250
109,474
1,919,426(1,506,062)
413,363
1,004,088

195,332
836,883
21,817
1,054,032

952,500
800,455
23,756
1,776,712

1,907,516
1,035,870
172,157
61,063(57,052)
3,119,554
5,058,866
14,830,189

1,993,694
900,335
145,267
59,445(54,793)
3,043,949
5,824,750
16,446,874

Previous consolidated
fiscal year
(December 31, 2012)
Liabilities
Current liabilities
Accounts payable
Short-term borrowings
Accounts payable-other
Income tax payable, etc.
Reserve for bonuses
Reserve for quality assurance
Reserve for loss on projects
Reserve for office transfer expenses
Other reserves
Other
Total current liabilities
Non-current liabilities
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets-5-(in thousands of yen)
Consolidated second quarter
under review(June 30, 2013)

739,873
30,283516,697535,959
116,997
11,275
13,50035,342–
747,736
2,747,663

1,218,198
73,457597,716
616,755
131,424
10,131
24,400–3,674
1,033,458
3,709,217

304,006
12,269316,276
3,063,940

357,730
11,778369,508
4,078,726

1,421,815
2,495,772
9,151,020(1,393,328)
11,675,279

1,421,815
2,495,772
9,851,179(1,540,983)
12,227,783

612(30,532)(29,920)
120,890
11,766,249
14,830,189

49,205(48,924)280
140,083
12,368,148
16,446,874

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Officers’ remuneration
Salaries and bonuses
Employee training expenses
Research & development expenditures
Depreciation
Recruitment expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in income of non-consolidated subsidiaries &
affiliates
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission for purchase of treasury stock
Other
Total non-operating expenses
Ordinary income-6-First half of the previous
consolidated fiscal year
(from January 1, 2012
to June 30, 2012)
11,126,485
7,142,614
3,983,871(in thousands of yen)First half of the consolidated
fiscal year under review(from January 1, 2013
to June 30, 2013)
13,545,437
8,660,952
4,884,484

136,228
1,770,803
79,334
9,168
53,010100,167
1, 110,437
3,259,150
724,720150,264
1,507,845
88,071
32,95051,306
134,406
1,349,466
3,314,311
1,570,173

2,715
21,776984
24,29034,424

24,216–22,85081,76670,414
9,037
128,943

351
1,647
227
2,226
804,261

248
1,005
411
1,665
1,697,451

(in thousands of yen)First half of the consolidated
fiscal year under review(from January 1, 2013
to June 30, 2013)

First half of the previous
consolidated fiscal year
(from January 1, 2012
to June 30, 2012)
Extraordinary income
Gain on sale of investment securities
Gain on negative goodwill
Gain on change in equity
Total extraordinary income
Extraordinary loss
Loss on disposal of noncurrent assets
Loss on devaluation of investment securities
Impairment loss
Litigation expenses
Other
Total extraordinary losses
Net income before taxes (quarterly period)
Income taxes
Income before minority interests
Minority interests in income
Quarterly net income
Minority interests in income
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of associates
accounted for using equity method
Other comprehensive income
Quarterly comprehensive income(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to minority interests-7-–75,209–75,20966,418–3,099
69,517–1,275–
44,0001,666
46,942
832,528
359,827
472,701
8,908
463,7928,908
472,701

105,816–
13,813––
119,630
1,647,338
593,787
1,053,551
15,7181,037,832
15,7181,053,551

12,568(5,523)48,557(32,097)(673)

17,2156,371
479,072

33,675
1,087,226

472,066

1,068,033

7,006

19,193

(3) Quarterly Period Consolidated Statements of Cash FlowsFirst half of the previous
consolidated fiscal year
(from January 1, 2012
to June 30, 2012)
Cash flows from operating activities
Net income before taxes (quarterly period)
Depreciation
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in reserve for bonuses
Increase (decrease) in reserve for quality assurance
Increase (decrease) in reserve for loss on projects
Increase (decrease) in reserve for office transfer expenses
Earned interest and dividends
Interest expenses
Loss (gain) on change in equity
Equity in losses (earnings) of subsidiaries & affiliates
Gain on negative goodwill
Loss on disposal of noncurrent assets
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Litigation expenses
Decrease (increase) in accounts receivable
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other
SubtotalInterest and dividends received
Interest paid
Income and other taxes
Litigation expenses
Net cash provided by (used in) operating activities

832,528
113,267–(2,968)(9,582)(40,814)(4,200)–(24,491)351–(34,424)(75,209)––1,275
44,000(165,649)(39,968)
85,374(112,566)
566,922
24,866(433)(569,795)(44,000)(22,440)-8-(in thousands of yen)First half of the consolidated
fiscal year under review(from January 1, 2013
to June 30, 2013)
1,647,338
177,338
13,813(3,883)4,512(1,144)
10,900(35,342)(25,275)248(3,099)(24,216)–
105,816(66,418)––(104,671)(30,685)
277,917
185,979
2,129,128
25,675(248)(515,716)–
1,638,838

(in thousands of yen)First half of the consolidated
fiscal year under review(from January 1, 2013
to June 30, 2013)

First half of the previous
consolidated fiscal year
(from January 1, 2012
to June 30, 2012)
Cash flows from investing activities
Purchase of short-term investment securities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Proceeds from sales of investment securities
Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Purchase of shares in affiliates
Payments for deposits and guarantee
Proceeds from collection of deposits and guarantees
Proceeds from transfer of business
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayment of long-term borrowings
Proceeds from payment by minority shareholders
Purchase of treasury stock
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the quarterly period-9-(201,196)
400,464(39,851)(321,287)(1,211)–––(192,833)(121,484)(12,500)
98,904(64,435)(999,367)(56,833)(4,524)
22,3768,240
1,500(256,758)–(945)
153,088–
2,400(1,072,739)(2,441)(38,721)24,021(223,307)(343,578)(584,028)

(243)
–
–
(148,660)(339,174)(488,078)

308

27,816(862,917)
5,526,311
4,663,393

105,837
4,184,672
4,290,510

(4) Notes on the going-concern assumption
Not applicable.
(5) Notes on significant changes to shareholders’ equity
Not applicable.

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(6) Segment information
I. Second quarter of the consolidated fiscal year (from January 1, 2012 to June 30, 2012)
1. Amounts of net sales and income or loss by business segment reported
Segment reported

Net sales(1) Net sales tooutside clients(2) Inter-segment
sales or transfer
Total

IT
Consulting
Business

Package &Corporate
Service Revitalization
Business
Business

7,042,268

1,734,250

26,309258,350

7,068,578

1,992,601

Total

2,249,205 11,025,724
708

Others(Note 1)

100,761 11,126,485–

11,126,485

285,369(285,369)–

100,761 11,411,855(285,369)

11,126,485

285,369

2,249,914 11,311,094

Total(in thousands of yen)Amount on
Quarterly
PeriodAdjustment
Consolidated(Note 2)
Statementsof Income(Note 3)–

Segment income
754,418
10,69132,313
797,423(89,439)
707,983
16,736
724,720or loss
Notes: 1. “Others,” a segment not included in the business segment reported, include Internet-related businesses, publishing businessand securities investment, holding, and management activities.
2. “Adjustment” of segment income or loss of ¥16,736 thousand refers to elimination of inter-segment transactions.
3. Segment income or loss is adjusted with operating income in the Quarterly Period Consolidated Statements of Income.

II.

Second quarter of the consolidated fiscal year (from January 1, 2013 to June 30, 2013)
1. Amounts of net sales and income or loss by business segment reported
Segment reported

Net sales(1) Net sales tooutside clients(2) Inter-segment
sales or transfer
Total

IT
Consulting
Business

Package &Corporate
Service Revitalization
Business
Business

9,299,357

1,808,187

22,255

340,638

9,321,612

2,148,825

Total

2,255,564 13,363,109
1,916

364,8112,257,481 13,727,920

Others(Note 1)

Total

182,328 13,545,437(in thousands of yen)Amount on
Quarterly
PeriodAdjustment
Consolidated(Note 2)
Statementsof Income(Note 3)–

13,545,437

365,476(365,476)–

182,994 13,910,914(365,476)

13,545,437

665

Segment income
1,388,797
127,372
46,034 1,562,204(6,342) 1,555,862
14,3101,570,173
or loss
Notes: 1. “Others,” a segment not included in the business segment reported, include Internet-related businesses, publishing businessand securities investment, holding, and management activities.
2. “Adjustment” of segment income or loss of ¥14,310 thousand refers to elimination of inter-segment transactions.
3. Segment income or loss is adjusted with operating income in the Quarterly Period Consolidated Statements of Income.
4. In the first six months of the consolidated fiscal year under review, the Company acquired all shares in eSPORTS andincluded it in the scope of consolidation. As a result, goodwill of other business segments increased ¥799,135 thousand.

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(7) Significant subsequent events(Stock split and adoption of the unit share system)
In accordance with the resolution of the Board of Directors meeting held on May 30, 2013, the Company conducted a stock
split and adopted the unit share system on July 1, 2013.
1. Purposes of the stock split and the adoption of the unit share system
In response to the “Action Plan for Consolidating Trading Units” announced by Japanese Stock Exchanges, the Company
conducted a stock split in the 1:100 ratio and adopted a unit share system which sets a share-trading unit of 100 shares. The
aim is to increase convenience and liquidity in the securities market on which its shares are listed. There is no effective change
in the investment units due to the stock split and the adoption of the unit share system.
2. Outline of the stock split(1) Stock split method
With June 30, 2013 (effectively Friday, June 28, as June 30, 2013 fell on a non-business day of the Administrator of
Shareholder Registry) as the record date, each of the Company’s common shares held by shareholders whose names werestated or recorded in the latest Registry of Shareholders on the record date were split at a ratio of 1:100.
(2) Share increase due to the stock split
Total number of issued shares before the stock split:

476,640 shares(ii) Increase in number of shares due to the stock split:(i)

47,187,360 shares(iii) Total number of issued shares after the stock split:

47,664,000 shares(iv) Total number of authorized shares after the stock split:

189,376,000 shares(3) Schedule of the stock split(i)

Public notice date of the record date:

Friday, June 14, 2013(ii) Record date:

Sunday, June 30, 2013(iii) Effective date:

Monday, July 1, 2013

(4) Adjustment of share option exercise priceIn accordance with the stock split, the exercise price per share of the Company share option was adjusted effective July 1,
2013 as follows.
Share options issued based on resolution of the Ordinary General Meeting of Shareholders held on March 24, 2005.
Exercise price before adjustment:

65,205 yen per share

Exercise price after adjustment:

653 yen per share

3. Adoption of the unit share system(1) Number of shares constituting one unit
The Company adopted the unit share system, setting the number of shares to constitute a share-trading unit at 100.
(2) Schedule for the establishment of the unit share system
Effective date: Monday, July 1, 2013
4. Others
Based on the assumption that the stock split was conducted at the beginning of the previous consolidated fiscal year, net
income per share for the first six months of the previous consolidated fiscal year, and that for the first six months of theconsolidated fiscal year under review are as follows.
Net income per shareFirst six months of the previous consolidated fiscal year:

10.26 yenFirst six months of the consolidated fiscal year under review:23.20 yen- 12 -

4. Supplemental information(1) Orders received

Segment

First half of the previous consolidated
fiscal year
(from January 1, 2012 to June 30, 2012)
Orders received
Backlog(in thousands of yen)First half of the consolidated fiscal year
under review(from January 1, 2013 to June 30, 2013)
Orders received
Backlog

IT Consulting Business

7,035,693

3,552,577

9,652,772

6,929,808

Package & Service Business

1,380,380

831,444

1,932,439

1,096,099

107,642

11,130

192,328

22,7408,523,716

4,395,152

11,777,540

8,048,648

OthersTotal- 13 -