FY2022
Materials for the Briefing on the Financial
Results for Fiscal 2022
February 9, 2023
Future Corporation(Securities code: 4722, TSE Prime)
Copyright © 2023 by Future Corporation

Today’s Presenters

Yasufumi Kanemaru

Yuki Shingu

Yohei Saito

Chairman andPresident Group CEO

Board Director in charge of
IT Consulting Business

Board Director,
Chief Technology Officer

President,
Future Architect, Inc.

President,
Future Architect, Inc.

Copyright © 2023 by Future Corporation

1

Agenda1. Business Advantages and Topics Related to
FY2022
2. Earnings for FY2022

3. Plan for FY2023
Copyright © 2023 by Future Corporation2

1. Business Advantages and Topics Related to
FY2022

Copyright © 2023 by Future Corporation

3

Future’s concept, consistent since day one“Design management and IT”
Provide a 360-degree information design solution that leverages real-time datadetected by sensors
Strategy
ImplemeNew strategy
Verification →→→(hypothesis)
ntation(new hypothesis)

Strategy

Implementation

Verification

Neural net

IT

Neural net

New strategy

Information unit consistent in every phase (real time)
Design minimal information unit
Copyright © 2023 by Future Corporation

4

Future’s personnel, technologies, and intellectual property
supporting business and society
Initiatives aimed at sustainable growth of customers’ business and society as a whole
Accumulated theory and practices are matched to the DX needs of customers and society
Customers’
needs/issues

RetailWholesale

Distribution

ApparelIntellectual
capitalHumancapitalSociety’s
needs/issues

Banking

Technology
IT
personnel

Value cocreation

Logistics
Life
Infrastructure

Manufacturing
EnergyInsurance
Securities

Media Sustainable growth Diversified working
styles Declining birthrate/
aging population

 Women’s
empowerment
 IT personnel

 Labor shortage

 Promotion ofDX Climate change SDGs Applications tailored to specific industries/business (banking, media,
 Future components
distribution, etc.)
 Design and Research and Scientific quality  Intellectual property/
development capability development ability
patents
control methods
 Diversity in human Expertise in both business Recruitment/training ofresources
management and IT
advanced DX personnel
 Ability to apply cutting-edge technology  Understanding of various industries’ operations
Copyright © 2023 by Future Corporation

5

DX initiatives are gaining momentum across all industries andsectors
More and more companies are moving toward digitalization as they revamp
their supply chain and change the way their employees work

RetailWholesale

Banking

Insurance
Securities

Distribution

Real-timeArchitecture
ApparelMedia
Logistics
Basic
infrastructure

Manufacturing
EnergyCopyright © 2023 by Future Corporation

6

Diversity & Inclusion - Create an environment with opportunities* Draftfor everyone
Working styles customizable to individual life stages and personal
situations
Work from anywhereWork flexibly
Percentage of discretionary workers

Location free

Performance-based discretionary workers,
workers with flex hours

97%

Ratio of employees taking
childcare leave

65% 100%● Areas where
employees work

Telework rate
Up to

90%

* As of December 31,
2022

Male Female

Family leave (five times per year)

For nursing and care giving, life events, etc.

Number of days of childcare
leave taken
days
days

56

240

Special leave system

For starting new business, obtaining degrees
and certifications, etc.
Male Female*Create a work environment and promote diversified working styles for employees of the Group as a whole, with the leadership of
Future and Future Architect
Copyright © 2023 by Future Corporation

7

Diversity & Inclusion - Create an environment with opportunities* Draftfor everyone

Third stage (the highest rank) in the “Eruboshi” certification under the Act on Promotion of
Women’s Participation and Advancement in the Workplace.
Fourth place in the general corporate category ofForbes JAPAN WOMEN AWARD 2022 Corporate Division
Forbes JAPAN WOMEN AWARD 2022
Fourth place in the general corporate category
Ranking by specific corporate category• Third place in female employees’ satisfaction withwork opportunities• Second place in top management’s capability to act(companies with 1,001 or more employees)

Certification of women’s participation by the Ministryof Health, Labour and Welfare
Third stage (the highest rank) in Eruboshi certification
Met all requirements of five evaluation items
1. Recruitment
2. Continuous employment
3. Working hours, etc.
4. Percentage of women in managerial positions
5. Diverse career courses

Proportion of new graduatesand mid-career workers

Midcareer49%

New
graduates
51%

4. Percentage of women in
managerial positions

33 years old
on average

Proportion by age

Proportion of men and womenin executive positions

Female
19%
Male
81%

Male
67%

Female33%

Copyright © 2023 by Future Corporation8

Support DX promotion of regional financial institutions and theircontribution to regional revitalization
Shimane Bank adopts Next-Generation Banking System
 Based on know-how gained in the
Fukushima Bank project (operation to be
started in 2024), the system is developedon SBI’s financial cloud in an improved
way and shorter time toward the start ofoperation in 2025

Next-Generation Banking System (conceptual image)Corporate

Next-Generation Banking System
Corporate
IB

Operational application
Consulting(OTC)

Accounting DB

API

Business rule engine
API

Fintech allianceof multiple
sectors

SmartphoneBank(individual IB)

Sales site
app

CORE Bank (data entry)
External API

IndividualReal-time replication

 Expand a network to regional financial
institutions of the SBI Group and bankswith FutureBANK

Semi-self(branch)Integrated data mart

ATM andZengin, etc.

FutureBANK(sales andloan)

Consulting(on-site)

BI, ETL, ledgers

Public cloudMarketing(Headquarters)*

Businessmanagement(Headquarters)

In this project, “Smartphone Bank (individual IB),” “Fintech alliance API,” “External connection for ATMs and Zengin, etc.” and “Public
cloud” are provided by SBI Holdings.

Support more than 30 banks through FutureBANK, with the use of a scientificapproach and technological expertise
Copyright © 2023 by Future Corporation9

Support DX promotion of regional financial institutions andtheir contribution to regional revitalization
Successfully expanding FutureBANK, an external loan-support system,
to allied banks and the Group banks
 Support reginal financial institutions’ external loan
operations and renovate their sales style
Hokkaido

 Supported more than 30 banks across the country
Aomori

Akita

Yamagata

Niigata

Ishikawa

ToyamaFukui Gifu
Tottori
Shimane

Okayama
Hiroshima
KagawaYamaguchi
Fukuoka
Saga

Hyogo

Ehime

Tokushima
Kochi

KyotoShiga

Gunma

NaganoIwate

Miyagi

Fukushima

Tochigi

Saitama

Ibaraki

Yamanashi Tokyo
Kanagawa Chiba

Aichi Shizuoka

Osaka
Mie
Nara
Wakayama

Oita

Nagasaki Kumamoto
MiyazakiKagoshima

Okinawa

Copyright © 2023 by Future Corporation

10

Technology-driven DX/GX for the energy sector
Provide a service based on know-how gained in the DX support project for
NIPPON GAS CO., LTD. (NICIGAS)

Developed a first digital twin
for the gas sector
 The status of LP gas cylinders that 1.2
million customers across the country use is
updated real time, allowing for teleoperationin emergency
 Optimize the overall process frommanufacturing to delivery and security
based on a digital twin Grand Prix of DX Securities 2022* (METI)DX/GX consulting service for theenergy sector
 Support the sector’s DX and GX byleveraging key technology and know-howthat we created with NIPPON GAS CO., LTD.
 Support JAPEX’s DX project for its
medium- to long-term growth Contribute to a paradigm shift of the energy
sector and advancements of regional
economy* Five customers supported by Future were selected out of two companies that won DX Securities 2022 Grand Prix,
31 companies that won DX securities 2022, and 15 DX focus companies

Copyright © 2023 by Future Corporation

11

Found post-COVID-19 gourmet needs using digital analysis, and posted
record-high number of copies of magazines printed
Monthlymagazines

Sales of magazines
increased by 37%(up from pre-COVID-19 levels)
Tokyo Calendar
DateTokyo Calendar Night(events)

Marketing Data

2017 to 2019(pre-COVID-19 average)

Integrated data analysis and data linkage platform

2022

Analytics

Launched a sophisticated service for restaurant reservations this fiscal year, linked toexisting services for greater revenue and operating income
Copyright © 2023 by Future Corporation

12

* Draft
Promote DX of the world of sports widely, including soccer and rugby
Increased both revenue and operating income by applying a 3D game creation technology
to the metaverse
Promote DX of the world of sports
Soccer

Rugby

Applied Neilo Inc.’s 3D game creation technology
to the metaverse

JFA
Japan Football
Association(Shimizu)
S-PULSENTT DOCOMOURAYASURed Hurricanes Osaka D-Rocks

Year-on-year increase in net sales and operating
income by 22% and 28% respectively
Net sales

2021

Metaverse space introducing sustainability initiatives

Operating income

2022

2021

2022

3D game with a concept of CO2 emissions reduction
Copyright © 2023 by Future Corporation

13

2. Earnings for FY2022

Copyright © 2023 by Future Corporation

14

(i) Highlights of financial results for FY2022
Fiscal 2022

2022年12月期
Consolidated
連結業績
earnings

 Continuing record-high net sales, operating income and profit
 売上高、営業利益及び当期純利益は前期に引き続き過去最高を更新
from the previous fiscal year

売上高
Net sales
営業利益
OperatingincomeOrdinary income
経常利益
Profit
当期純利益53,738 百万円 ( ＋10.3% )¥53,738 million( +10.3% ))12,229¥12,229百万円
million ( ＋35.9%( +35.9%)¥12,574百万円
million ( ＋35.4%( +35.4%))
12,574¥9,236 million( +45.0% )9,236 百万円 ( ＋45.0% ) Both revenue and operating income increased owing to continued efforts to

IT Consulting &ITコンサルティング＆ServiceBusiness
サービス事業

 多種多様な顧客からの案件獲得と品質管理の徹底を継続し増収増益
acquire projects from variety of customers and strict quality control
売上高
Net
sales
Operating income
営業利益45,593¥45,593百万円
million (＋16.1%( +16.1%))

12,910 百万円 (＋44.6% )¥12,910 million( +44.6% )* Refer to Appendix-(iv) Both revenue and operating profit decreased mainly due to fiercer competition

BusinessInnovation
ビジネス
Business
イノベーション事業
Inter-segment

セグメント間調整
adjustment

 EC通販における市場競争激化、円安・原材料費高騰を主因に減収減益
in the EC market, depreciation of the yen, and rising raw material costs
売上高
Net
sales
Operating income

百万円 ( △13.8%(13.8%)
8,274 million¥8,274decrease)-272 million yen
(-)

営業利益

△ 272 百万円 (

売上高
Net
sales
Operating
営業利益income

△
558
百万円
-558
millionyen-336
million
yen
△
336
百万円

－

)

* Refer to Appendix-(iv)Copyright © 2023 by Future Corporation

15

(ii) Changes in Net Sales, Operating Income, and Operating
Income Margin (from FY2017 to FY2022)
 Revenue increased, due to many new projects from various customers and the steady progress of PJ that may
contribute to a medium- to long-term growth Recorded operating income margin of 22.8% (18.5% in the previous year) due to a continued strict quality control

Net sales

14,00053,73848,69845,389(in millions of yen)

Operating income

45.0%

12,229Operating income
12,000Operating income margin

44,311

40.0%

35.0%

40,21810,0009,000

36,265

30.0%

8,000

25.0%

5,824

6,000

6,523
22.8%

5,235

4,458

18.5%

20.0%

15.0%

4,000

12.3%

14.5%

14.4%

10.0%

11.8%

2,000

5.0%

0.0%

0

2017

2018

2019

2020

2021

2022

2017

2018

2019

2020

2021

2022

Copyright © 2023 by Future Corporation

16

(iii) Year-on-year Changes in Fiscal 2022 Balance Sheet Total assets were 57,857 million yen, up 3,374 million yen from the preceding year mainly due to anincrease in cash and deposits from profit increase, an increase in software investment and an increasein goodwill due to the purchase of a subsidiary, despite a decline in prices of holding stocks.
(in millions of yen)

Balance Sheets

Total assets: 54,483

Cash and deposits
Current assets

Cash anddeposits
Current assets
Non-current
assetsTotal assets: 57,857 (+3,374)■ Major Changes

20,53013,03012,682

26,652

Securities

Non-current assets

Liabilities
Net assets

11,582

12,18341,801
22,371借１44,82719,022

貸１

End of fiscal 2021

列2

借２

Accounts receivable – tradeand contract assets

貸２

End of fiscal 2022

+ 6,122+ 601+ 1,328- 900- 3,349

Software+ 1,076

Goodwill+ 651

Decline in prices of holding
stocksLiabilities- 4,840+ 348

Net assets+ 3,026

Profit+ 9,236

Dividend payment- 2,756

Valuation difference on
available-for-sale securities- 3,588

Copyright © 2023 by Future Corporation

17

(iv) Cash Flows for Fiscal 2022
millions of Operating CF saw an inflow of 10,174 million yen, Investing CF saw an outflow of 1,009 million yen (inmainlydue
yen)
to investment in a next-generation banking system, and Financing CF saw an outflow of 3,017 million yen due
to payment of dividends, etc. In total, cash and cash equivalents increased by 6,121 million yen year on year

Cash Flows■ Major breakdown of cash flows
Operating CF

10,174-1,009-3,017

21,430-26

27,552

Profit before income taxes:

13,266

Depreciation and amortization of
goodwill:

1,245

Tax payment:- 3,972

Other

:

- 365

:

10,174Purchase of intangible assets:- 1,693

Net increase (decrease) ininvestment securities

:

- 345

Other

:

1,029

:

- 1,009

Dividend payment:- 2,756

Repayments of lease liabilities

:

- 172

Other

:

- 89

:
:

- 3,017:+ 6,121Net
Investing CF

Net
Financing CF

Net

End of fiscal
2021

Operating CF

Investing CF

Financing CF

Other

End of fiscal
2022

Net increase (decrease) in cash
and cash equivalents

Copyright © 2023 by Future Corporation18

(v) IT Consulting & Service Business for Fiscal 2022
Net sales
2021
39,258Operating income(in millions of yen)

2022
45,593

2021
8,925

2022
12,9101

Future Architect
Net sales

Operating income

 Many new projects were acquired from various customers, and a large PJ is well under way Both revenue andoperating income increased as a result of continuing
strict quality control concurrently

Future Inspace Stably acquired commissioned maintenance and operation projects in cooperation with Future Architect, Inc.
Also continued to receive orders for new development projects, resulting in higher net sales and operating
income year on year.

FutureOne

 The company undertook optimization in customizing original package software “InfiniOne,” along with theeffort to strengthen channels with outside sales partners, etc., resulting in a year-on-year increase in revenue
and operating income.

YDC Corporation

 SI projects decreased, among others, despite the efforts to expand the customer base in the logistics field by
providing unique know-how to the Group’s customers, resulting in a year-on-year decrease in revenue andoperating income.

dit Co., Ltd.

 The company received solid orders for vulnerability assessment, incident response, and other cyber securityrelated services. The development of WADJET, an integration analytics platform against cyberattacks, also
proceeded, resulting in a year-on-year increase in net sales and operating income.

Net sales

Net sales

Net sales

Net sales

Operating income

Operating income

Operating income

Operating income

Copyright © 2023 by Future Corporation

19

(vi) Changes in Composition of Revenue by Phase(IT Consulting & Service Business)
 GD acquired a wide variety of new projects Large PJ that may contribute to medium- to long-term
growth shifted to a design and development phase(in millions of yen)Grand design

2020

2021

2022

6,063

(17.1%)

7,660(19.6%)

9,544(21.0%)

Design3,244Development

12,768(9.2%)

7,247(36.0%)

6,063

Maintenance and operation(20.5%)

12,606(15.5%)(18.4%)(17.2%)

6,969(17.8%)(32.0%)

8,353

6,111

16,004(35.2%)

Product sales, etc.

35,436

5,861(15.0%)

7,931(17.4%)

Note 1: Total net sales consist of net sales for external customers of the IT Consulting & Service Business.
Note 2: “Product sales, etc.” consist mainly of selection, procurement, and sale of IT equipment, and sale of licenses.
Note 3: Figures before fiscal 2021 are those before the Accounting Standard for Revenue Recognition is adopted.

39,1603,653(8.0%)

45,487

Copyright © 2023 by Future Corporation

20

(vii) Trends in Composition of Revenue by Segment(IT Consulting & Service Business) Finance, distribution, and service grew mainly due to introduction of systems for financial institutions
and renewal of core systems for food wholesalers(in millions of yen)

Service

2020

2021

2022

11,456(32.3%)

13,443(34.3%)

15,643(34.4%)

Distribution

7,192(20.3%)

Finance

Manufacturing

6,418(18.1%)

6,113

8,576

(15.6%)(21.9%)

8,934(19.6%)

5,171(14.6%)

5,197(14.7%)

5,416(13.8%)

11,414(25.1%)

Product sales, etc.

35,4365,610(14.3%)

4,537(10.0%)

39,1604,957(10.9%)

45,487Note 1: Total net sales consist of net sales for external customers of the IT Consulting & Service Business.
Note 2: “Product sales, etc.” consist of selection, procurement, and sale of IT equipment, sale of licenses, and sales for national and regional government offices.
Note 3: Figures before fiscal 2021 are those before the Accounting Standard for Revenue Recognition is adopted.
Copyright © 2023 by Future Corporation

21

(viii) Business Innovation Business for Fiscal 2022
Net sales
2021
9,596

Operating income(in millions of yen)

2022
8,274
2021
413

2022
- 272

1

YOCABITO (formerly eSPORTS)

 Sales fell below expectations due to lower-than-expected winter apparel sales, along with the fiercely competitive
outdoor goods market. The depreciation of the yen and rising raw material costs and logistics costs weighed on profit,
resulting in a year-on-year decrease in net sales and operating income.

Tokyo Calendar Inc.

 Magazine sales grew substantially, and revenue of net service including Tokyo Calendar Date remained steady. Yet, thecompany recorded costs associated with Gourmet Calendar, a new service that started in January 2023, resulting in an
increase in revenue but a decrease in operating income year on year.

CodeCamp

 Despite an uptick in orders from corporate customers from which sales are expected in the next fiscal year, orders fromindividual customers fell in the current fiscal year as more competitors entered the market, resulting in a decrease insales and operating income.

Net sales

Net sales

Net sales

LaiBlitz
Net sales

Operating income

Operating income

Operating income

Operating income

 The company saw an increase in system expansion demand from professional baseball teams that intend to strengthen
their team management, and also introduced FastBiz, a packaged membership management and e-commerce service,
to several sports teams including a rugby team, leading to a year-on-year increase in both net sales and operating
income.
Copyright © 2023 by Future Corporation

22

(ix) Analysis of Net Sales Increase/Decrease for Fiscal 2022
(in millions of yen)

Copyright © 2023 by Future Corporation

23

(x) Analysis of Operating Income Increase/Decrease for
Fiscal 2022
(in millions of yen)

Copyright © 2023 by Future Corporation

24

(xi) Year-end Dividend for Fiscal 2022
 Profit stood at 9.2 billion yen, exceeding the plan of 8.5 billion yen.
 In accordance with the dividend policy of a dividend payout ratio of 35% or higher, the year-end
dividend was raised by 3 yen from the initially planned 17 yen to make it 20 yen per share. The FY2023
annual dividend will be 37 yen per share.

Trends in annual dividend per share*

37.0 yen

40.0

Dividend

120 .0 %35.0

Dividend payout ratio

100 .0 %

30.0

80.0%

25.5 yen
25.0

20.0

19.5 yen

20.0 yen

60.0%

46.8%
15.0

38.3%

40.0%

35.4%

35.4%
20.0%

10.0

5.0

0.0%

2019

2020

2021

* The Company conducted a two-for-one stock split of its common stock on January 1, 2022.
The annual dividend amount before 2021 is calculated by taking into consideration the effect of the stock split.

2022 (Forecast)

Copyright © 2023 by Future Corporation25

3. Plan for FY2023

Copyright © 2023 by Future Corporation

26

(i) Full-year Earnings Outlook in FY2023 Plan(in millions of yen)

2023年
FY2023full-year
plan
通期計画

2022年
FY2022full-year
result
通期実績

Net sales
売上高59,50053,738Operating income
営業利益(Operating
incomemargin)（営業利益率）13,80012,229(23.2%)(22.8%)

親会社株主に帰属するProfitattributable to
当期純利益
owners of parent(Net income margin)（当期純利益率）

9,660(16.2%)**

9,236(17.2%)

2023年
1H
FY2023
plan
上期計画

2022年
1H
FY2022
result
上期実績

10.7%

28,30025,940

9.1%

12.8%

6,600

6,214

6.2%

(23.3%)(24.0%)

4,620

4,517

(16.3%)(17.4%)

YoY
前年比change

* *

4.6%

YoY
前年
change同期比

2.3%* Profit for FY2022 includes an extraordinary gain of 512 million yen (732 million yen on a pre-tax basis) on sale of investment securities.
Excluding the above extraordinary income from the FY2022 full-year results, the year-on-year change in profit in the FY2023 full-year plan
will be 10.7%.
Copyright © 2023 by Future Corporation

27

(ii) Trends in Net Sales and Operating Income in FY2023 Plan(in millions of yen)

Operating income

Net sales

40.0%

14,00 059,50053,73813,800Operating income
Operating income margin

12,22935.0%

12,00 048,69845,38944,311

10,00 0

30.0%

9,000

8,000

25.0%

6,523
22.8%

6,000

5,235

23.2%
20.0%

4,000

18.5%
15.0%

2,000

14.4%
11.8%
0

2019
2019年

2020
2020年

2021
2021年

2022
2022年

2023
(forecast)
2023年（予）

10.0%

2019

2020

2021

2022

2023 (forecast)

Copyright © 2023 by Future Corporation

28

(iii) Dividends in FY2023 Plan The FY2023 annual dividend will be 40 yen per share (interim dividend of 20 yen and year-end
dividend of 20 yen, consolidated dividend payout ratio of 36.7%.)

Trends in annual dividend per share*
45.0

120 .0 %40.0 yen

Dividend

37.0 yen

40.0

Dividend payout ratio

100 .0 %

35.0

80.0%

30.0

25.5 yen
25.0

20.0

60.0%

19.5 yen

20.0 yen
46.8%

15.0

38.3%

40.0%

35.4%

35.4%

36.7%
20.0%

10.0

5.0

0.0%

2019

2020

2021

2022 (Forecast)* The Company conducted a two-for-one stock split of its common stock on January 1, 2022.
The annual dividend amount before 2021 is calculated by taking into consideration the effect of the stock split.

2023 (forecast)

Copyright © 2023 by Future Corporation

29

Appendix

Copyright © 2023 by Future Corporation30

Appendix-(i) Earnings (Comparative Analysis)(in millions of yen)

FY2022
2022年
full-year
result
通期実績

Comparedwith projection
業績予想比
Projection
as adjusted
2022年
Changeusing revised FY2022
増減率
業績修正後予想
results(%)(Releasedon July 30)（7/30公表値）

YoY change
前年同期比

2021年
FY2021
実績
results

Change
増減率(%)

Net sales
売上高53,73855,500-3.2%

48,698

10.3%

営業利益

12,22912,000

1.9%

9,000

35.9%

(営業利益率)(22.8%)(21.6%)

親会社株主に帰属する

9,236

8,500

(17.2%)(15.3%)

Operating income(Operating income margin)

Profit attributable to
当期純利益
ownersof parent(Net
incomemargin)(当期純利益率)(18.5%)

8.7%

6,369

45.0%

(13.1%)

Copyright © 2023 by Future Corporation31

Appendix-(ii) Balance Sheets(in millions of yen)
Total assets
Current assets
Cash and deposits

End of FY2022
57,857
38,83526,652End of FY2021
54,48332,112
20,530Change (%)+ 3,374+ 6,723+ 6,122

8,549

7,220

+ 1,329

1,000
2,634
19,022
1,078

1,900
2,462
22,371
1,155

- 900
+ 172
- 3,349
- 77

4,320

2,148

+ 2,172

Software +1,076, Goodwill +651

12,856768
13,03017,697
1,371
12,682- 4,841
- 603
+ 348

Decline in share prices of cross-shareholdings

2,877

2,404

+ 473

2,280

2,215

+ 65

Deferred tax liabilities

2,682

4,278

- 1,596

Other liabilities

5,191

3,785

+ 1,406

44,827
37,68341,801
31,078+ 3,026+ 6,605

7,123

10,711- 3,588

21

12

+9

End of FY2022
21.3%
21.7%
77.5%

End of FY2021
15.2%
17.0%
76.7%

Change
6.1%
4.7%
0.8%

Notes and accounts receivable –trade, and contract assets
Securities
Other current assets
Non-current assets
Property, plant and equipment
Intangible assets (including
goodwill)
Investment securities
Other non-current assets
Total liabilities
Accounts payable – trade,
Accounts payable – other
Income taxes payable

Total net assets
Shareholders’ equity
Valuation difference on availablefor-sale securities
Other net assets
Return on equity (ROE)
Return on assets (ROA)
Shareholders’ equity ratio

Major changes

Increase in profit
Contract assets recognized in conjunction withadoption of the Accounting Standard for Revenue
Recognition
Decrease in short-term securities

Decrease due to fluctuations in market value of crossshareholdings
Contract liabilities recognized in conjunction withadoption of the Accounting Standard for Revenue
Recognition
Increase in retained earnings
Decrease due to fluctuations in market value of crossshareholdings

Copyright © 2023 by Future Corporation

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Appendix-(iii) Cash Flows(in millions of yen)
Net cash provided by (used in) operating activities

2022

10,174

2021

9,611

Change (%)+ 563

Profit before income taxes

13,266

9,185+ 4,081

Depreciation and amortization of goodwill

1,245- 1,021300- 3,972356- 1,009- 1,769- 1,268
- 509

1,146
- 298
796
- 1,449231- 1,689- 1,022
- 40
0

+ 99
- 723
- 496
- 2,523
+ 125
+ 680
- 747
- 1,228
- 509

2,537

- 627

+ 3,164- 3,017- 2,756
- 172
0
- 89

- 2,498- 1,902
- 142
- 450
-4

- 519
- 854
- 30

Effect of exchange rate changes on cash and cash
equivalents

- 26

-3

- 23

Net increase (decrease) in cash and cash equivalents

6,121

5,419

+ 702

Cash and cash equivalents at the beginning of theperiod21,43016,010+ 5,420

Cash and cash equivalents at the end of the period

27,552

21,430+ 6,122

Non-cash gains and losses other than depreciation
Changes in receivables and payables
Tax payment
Other
Net cash provided by (used in) investing activities
Purchase of fixed assets (tangible and intangible)
Purchase of investment securities
Purchase of shares of subsidiary’s stock
Other
Net cash provided by (used in) financing activities
Dividend payment
Repayments of lease liabilities
Purchase of additional shares of subsidiary’s stock
Other

Major changes
Increase in revenue due to an increase in profit before income
taxes

Increase in tax payment due to higher profit

Investments in next-generation banking system
Investments in a healthcare company
Acquisition of Neilo Inc.
Proceeds from sale of holding stocks +1,432, redemption of shortterm investment securities +1,800

Increase in dividend payment due to dividend increase- 85

Copyright © 2023 by Future Corporation

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Appendix-(iv) Results by segment(in millions of yen)

2022

2021

YoY change

Net sales

53,73848,698

10.3%

IT Consulting & Service

45,59339,258

16.1%

Business Innovation

8,274

9,596

-13.8%

Other

428

286

49.7%

Adjustments

- 558

- 443

-

Operating income

12,229

9,000

35.9%

IT Consulting & Service

12,910

8,925

44.6%

Business Innovation

- 272

413

-

Other

- 72

262

-

Adjustments

- 336

- 600

Copyright © 2023 by Future Corporation

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Appendix-(v) Trends in EBITDA for the past five years(in millions of yen)

Operating income
13,430EBITDA

12,22910,146
9,000

7,172
5,824

2018

7,526
6,524

6,377
5,235

2019

2020

2021

2022

Copyright © 2023 by Future Corporation

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Appendix-(vi)-1 Interpretation of order backlog(IT Consulting & Service Business)(1) For the purpose of risk control of long-term, large-scale projects, only a fixed amount of a
project, on which a contract has been signed, is recognized as an order received.
▼ 3Q-end▼ Year-end▼ 1Q-end▼ 2Q-end▼ 3Q-end

Project A
Phase 1 (completed)
25M

Phase 2 (fixed)
25M

Orders received for thisfiscal year are 25M.

Phase3

Project B
Phase 1 (fixed)
50M

Phase2Phase3(2) Out of orders fixed, amounts unrealized in accordance with the percentage of completion
method are totaled as the amount of order backlog.
Back orders of the current fiscal year = back orders of the previous fiscal year +orders received in the current fiscal year − revenue (on a percentage ofcompletion method/completed contract method)
Copyright © 2023 by Future Corporation

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Appendix-(vi)-2 Relationship between order backlog and net
sales

Trends in Order Backlog and Net Sales (IT Consulting & Service Business)(On a quarterly basis)(Millions of yen)

18,00018,000Order backlog

Net sales

16,00016,00014,00014,00012,00012,00010,00010,000

8,000

8,000

6,000

6,000

4,000

4,000

2,000

2,000

0

3Q 2019

4Q 2019

1Q 2020

2Q 2020

3Q 2020

4Q 2020

1Q 2021

2Q 2021

3Q 2021

4Q 2021

1Q 2022

2Q 2022

3Q 2022

4Q 20220• As referred to in Interpretation of Order Backlog on the previous page, the order backlog at year end and future net
sales are not necessarily related to each other.
• The Company adopted the Accounting Standard for Revenue Recognition, etc. in presenting orders for which thecontract term begins after January 2022.

Copyright © 2023 by Future Corporation

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Consolidated Summary Report of Operating Results, Supplementary
Materials, Materials for the Briefing on the Financial Results and otherIR materials are also available on the Company’s website.
https://www.future.co.jp/investor_relations/Contact: Investor Relations, Future Corporation
Phone: 03-5740-5724
FAX : 03-5740-5820
E-mail : ir@future.co.jp
This material contains forward-looking statements based on currently available information. Such information may change depending on future developmentsin the Japanese economy and the IT service industry, etc. Therefore, please be advised that the Company does not guarantee or promise its accuracy.
Since the values presented in this material are based on values managed in thousands of yen in the Consolidated Summary Report of Operating Results andother documents and converted to millions of yen, total amounts and valuation differences may differ in some cases. For details of valuations, please refer tothe Consolidated Summary Report of Operating Results separately.
Copyright © 2023 by Future Corporation

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