Consolidated Summary Report of Operating Results for the Second Quarter (Interim Period)of Fiscal 2024 (Year Ending December 31, 2024) [Japan GAAP]
July 23, 2024
Company name:

Future Corporation

Listing: Tokyo Stock Exchange

Securities code:

4722

URL: https://www.future.co.jp

Representative:

Yasufumi Kanemaru, Chairman and President

Contact:

Yasukazu Matsushita, Executive Officer

TEL: 03-5740-5724

Scheduled date of filing the semiannual report:

August 14, 2024

Scheduled date for distributing dividend payments:

September 17, 2024

Creation of supplemental material on interim financial results:

No

Holding of financial results briefing:

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

1.

Consolidated Results for the Second Quarter (Interim Period) of Fiscal 2024 (January 1, 2024, to June 30, 2024)(1)

Consolidated operating results (cumulative)(Percentage figures indicate year-on-year changes.)

Net sales

2Q Fiscal 2024
2Q Fiscal 2023
(Note)*EBITDA*

Profit attributable toowners of parent

Operating income

Million yen%

Million yen%

Million yen%

Million yen%

32,954

16.3

7,945

14.7

6,902

9.5

4,864

12.6

9.3

6,926

2.2

6,305

1.5

4,321

(4.4)

28,344Comprehensive income

2Q Fiscal 2024: 2,443 million yen [(53.6)%]
2Q Fiscal 2023: 5,261 million yen [83.4%]
EBITDA = Operating income + Depreciation + Amortization of goodwill
Profit per shareYen

2Q Fiscal 2024

54.91

2Q Fiscal 2023

48.79

(Note) In the third quarter of FY2023, the Company confirmed the accounting treatment for a business combination that had been provisionallyaccounted for. Figures for the interim period of FY2023 have been adjusted to reflect the confirmed accounting treatment.

(2)

Consolidated financial position
Total assets

Shareholders’ equity
ratio

Net assets

Net assets per share

Million yen

Million yen%

Yen

2Q Fiscal 2024

89,05752,13558.5

588.25

Fiscal 2023

66,04351,38777.8

580.10(Reference) Shareholders’ equity

2.

2Q Fiscal 2024: 52,135 million yen
Fiscal 2023: 51,387 million yen

Cash dividends
Dividends per share
End of firstquarter

End of second
quarter

End of third
quarter

End of fiscal year

Total

Yen

Yen

Yen

Yen

Yen

Fiscal 2023

-

20.00

-

20.00

40.00

Fiscal 2024

-

21.00
-

21.00

42.00

Fiscal 2024 (forecast)(Note) Revisions to the most recently announced dividend forecast: None

3.

Projected Consolidated Results for Fiscal 2024 (January 1, 2024 to December 31, 2024)(Percentage figures indicate year-on-year changes.)
Net sales

Full-year

EBITDA

Profit attributable toowners of parent

Operating income

Million yen%

Million yen%

Million yen%

Million yen%

70,20018.3

17,00013.2

14,650

6.9

9,900

7.4

Profit per share
Yen

Full-year

111.76(Note) Revisions to the most recently announced earnings forecast: None

*
(1)

Notes
Significant changes in the scope of consolidation during the period under review: Yes
Newly included: 3 companies (Revamp Corporation and 2 other companies)(Note) For more information, see “(4) Notes to interim consolidated financial statements (Changes in significant subsidiaries during the interim
period under review)” in “2. Interim Consolidated Financial Statements and Major Notes” on page 10 of the appendix.

(2)

Application of accounting treatment particular to the preparation of interim consolidated financial statements: None

(3)

Changes in accounting policies or estimates and retrospective restatements(i) Changes in accounting policies in accordance with revisions of accounting standards: None(ii) Changes in accounting policies other than item 1) above: None(iii) Changes in accounting estimates: None(iv) Retrospective restatements: None(4)

Number of outstanding shares (common stock)(i)

Total outstanding shares as of the endof the period (including treasury
shares)2Q Fiscal 2024

95,328,000 shares Fiscal 2023

95,328,000 shares

Total treasury shares as of the end of
the period

2Q Fiscal 2024

6,700,416 shares Fiscal 2023

6,744,163 shares(iii) Average number of outstanding shares
during the period under review

2Q Fiscal 2024

88,593,206 shares 2Q Fiscal 2023

88,563,124 shares

(ii)

*

This summary of second quarter (interim period) financial results is outside the scope of interim reviews 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 theCompany 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 to various uncertain factors.

○ Contents
1.

Qualitative Information Regarding Financial Results for the Interim Period under Review ......................................................... 2
Explanation of Operating Results .................................................................................................................................................... 2

2.

Interim Consolidated Financial Statements and Major Notes ....................................................................................................... 4(1) Interim consolidated balance sheets ........................................................................................................................................ 4(2) Interim consolidated statements of income and comprehensive income ................................................................................. 6(First six-month period) .......................................................................................................................................................... 6(3) Interim consolidated statements of cash flows........................................................................................................................ 8(4) Notes to interim consolidated financial statements ............................................................................................................... 10(Notes on premise of a going concern) ................................................................................................................................. 10(Changes in significant subsidiaries during the interim period under review) ...................................................................... 10(Notes on any significant change in shareholders’ equity) ................................................................................................... 10(Notes on segment information) ........................................................................................................................................... 103.

Supplementary Information ........................................................................................................................................................ 12
Orders received .............................................................................................................................................................................. 12

- 1 -

1.

Qualitative Information Regarding Financial Results for the Interim Period under Review
Explanation of Operating Results
Looking at the economic environment during the interim period of the fiscal year under review, we saw
companies continue to actively harness the power of IT to change their operations, such as promoting digitaltransformation (DX), implementing business reforms, and creating new digital services using generative AI,
etc., despite global uncertainty and an economic environment of ongoing inflation, trend of a weaker yen,
and anticipation of higher interest rates in Japan. Companies are increasing productivity and efficiency as
initiatives to address the enforcement of the Act on the Arrangement of Related Acts to Promote Work Style
Reform and labor shortages, reviewing overall supply chains and accelerating the use of IT related toinitiatives on ESG and the SDGs, so lively IT investment continues in all sectors and fields. In terms ofindividual lifestyles, the use of IT such as in shopping at e-commerce sites, enjoying entertainment and sports
on video and online, and accessing education and self-development services online, has become common,and various related services are being created.
Working against this backdrop, as a result of making steady progress with large-scale projects that willcontribute to medium- to long-term growth, including the completion of introducing the next-generationbanking system, which will serve as the foundation for future banking services, to the first bank, net sales
for the interim period of the current fiscal year totaled 32,954 million yen (up 16.3% year on year), operating
income was 6,902 million yen (up 9.5% year on year), and profit attributable to owners of parent came to4,864 million yen (up 12.6% year on year).
Details of the performance (net sales and operating income) of each segment are as follows.
(i)

IT Consulting & Service Business
Future Architect, Inc. (including the Technology Division of Future Corporation) launched ademonstration test to improve the efficiency of loan support operations by incorporating generative AI
into the loan support system Future Bank, installed in 30 regional financial institutions nationwide. It
also provided solutions that contribute to solving industry issues using the Company’s AI technology,
such as realizing labor savings and operational efficiency in inspection works of loading and unloading
operations in logistics centers using the Company-developed AI-OCR Future EdgeAI. In addition, it
acquired and advanced a wide variety of customer projects, including projects to promote customer DX
and improve operational efficiency. With regard to projects using intellectual property that willcontribute to the Company’s medium- to long-term growth, the first bank to which the next-generationbanking system was introduced under the project began stable operations on July 16, 2024, with thesecond bank continuing to be steady in the development and test phase. In addition, a project tointroduce GlyphFeeds, a content management system (CMS) for media, a project to introduce
FutureApparel, a core platform system for apparel, and others are making steady progress. As a result,both net sales and operating income increased year on year.
Future Inspace, Inc. performed steadily in development for system infrastructure renewal and cloud
migration projects from existing customers, in addition to the provision of regular maintenance andoperation services. As a result, net sales and operating income increased year on year.
At Future One, Inc., although new orders increased due to the deployment of industry-specific sales forthe steel industry, etc., in sales of its original InfiniOne software package, the company’s key product,
due to the impact of large-scale development projects peaking out, both net sales and operating income
decreased year on year.
At YDC Corporation, in addition to the traction of building a SmartFactory that realizes thedigitalization of factory management by using data through DX consulting, etc., for customers centeredon the manufacturing industry, the highlighting of value to customers through the execution of DX
projects contributed to higher sales. But due to the impact of increased hiring costs reflecting active
investment, including human assets, and a higher software amortization burden, net sales increased but
operating income decreased year on year.
At dit Co., Ltd., although sales of security services such as cyber defense exercises and security
consulting increased, orders received in product sales decreased, and advertising costs and costs from
active investment in hiring grew, resulting in a decline in both net sales and operating income year on
year.
Revamp Corporation has been performing steadily, receiving new orders for projects in the healthcare
area in addition to existing projects in the management marketing business that support private equity- 2 -funds and management practices. Its DX business, which provides consulting for mission-criticalsystem renewals and company-wide structural reform, is generally progressing as planned. The
Company has included the earnings of Revamp Corporation from the second quarter of the current
consolidated fiscal year.
As a result, the segment saw both net sales and operating income increase to reach 28,436 million yen(up 16.4% year on year) and 6,719 million yen (up 2.0% year on year), respectively.
(ii) Business Innovation Business
YOCABITO Co., Ltd. saw a decrease in net sales year on year under the continuous severe competitionin the outdoor and apparel markets. Operating loss, however, decreased due to improved gross margin
from the change into an integrated management system covering purchasing to product listing and ecommerce sales, setting of strategic selling prices for each product, and advancement of sales promotion
measures.
At Tokyo Calendar, Inc., net sales and operating income increased year on year due to the progress of
cost reduction measures, in addition to the continuous steady advertising sales in the media businessand revenue from internet services such as Tokyo Calendar Date.
LaiBlitz, Inc., in addition to the smooth transition to the development phase of projects introducing
FastBiz, a membership management and e-commerce package for sports teams, to multiple teams,
received orders for esports business projects, increasing net sales and operating income year on year.
CURIOSITY Inc. continues to be steady in both sales and profits, mainly against the backdrop of thesteady progress in multiple large-scale store designs for overseas luxury brands such as jewelry andwatches. The company was newly consolidated from the second quarter of the previous consolidated
fiscal year and its results will make a full-year contribution from the current fiscal year.
As a result, the segment saw an increase in both net sales and operating income year on year, with net
sales totaling 4,535 million yen (up 14.2% year on year) and operating income of 245 million (up froman operating loss of 310 million yen for the same period last year).
Operating loss under adjustments which post income and expenses of Future Corporation’s holding
company functions and eliminations of intersegment transactions in the reporting segment, was 34
million yen, a decrease of 100 million yen year on year (an operating income of 66 million yen for thesame period last year). This was mainly due to the recognition of the Company’s expenses related tothe acquisition of Revamp Corporation.
(Note) Segment results mentioned above are before adjustment for intersegmental sales or transfers.

- 3 -

2.

Interim Consolidated Financial Statements and Major Notes(1) Interim consolidated balance sheets
Previous consolidated fiscal year
(December 31, 2023)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade, and contract
assetsSecurities
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
Technology-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- 4 -(in millions of yen)Interim period of the current
consolidated fiscal year
(June 30, 2024)

28,01531,76010,195

11,044

200
1,160
31
4,637
(3)
44,237

1,014
18
2,795
(1)
46,6301,869(1,317)552
0
3,115(2,648)
466
1,020

1,969
(1,422)547
0
2,633(2,070)
562
1,110

1,083
3,370
90
1,135
4
5,684

11,623
3,672
10,5201,072
1026,89913,770
1,205
0
126
(1)
15,10221,806
66,043

12,818
1,471
133
(5)
14,41742,42789,057

Previous consolidated fiscal year
(December 31, 2023)
Liabilities
Current liabilities
Accounts payable – trade
Current portion of long-term borrowings
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
Long-term borrowings
Asset retirement obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
CapitalCapital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 5 -(in millions of yen)Interim period of the current
consolidated fiscal year
(June 30, 2024)

1,096
1,604
2,582
277
103
38
5,140
10,842

1,275
2,856
2,132
2,569
430
114
6
4,815
14,200

357
3,324
132
3,813
14,656

16,429
355
5,823
114
22,72236,9224,000
8441,537(2,201)
43,4214,000
14644,630(2,186)
46,590

7,938
(2)
30
7,966
51,38766,043

5,506
5
33
5,545
52,13589,057

(2) Interim consolidated statements of income and comprehensive income(First six-month period)

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
Dividend income
Share of profit of entities accounted for using equity
methodExchange gain
Gain on sale of investment securities
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investments in investment partnerships
Financial fees
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Profit before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit(Breakdown)
Profit attributable to owners of parent

Interim period of the previous
consolidated fiscal year
(From January 1, 2023,
to June 30, 2023)
28,344
14,692
13,651(in millions of yen)Interim period of the current
consolidated fiscal year
(from January 1, 2024,
to June 30, 2024)
32,954
17,052
15,902

308
3,124
154
469
385
680
185
490
68
1,479
7,346
6,305

386
3,838
171
518
474
600
496
576
275
1,661
8,999
6,902

160

162

15

67

31
9
216

101
145
57
534

0
13
0
15
6,506

55
53
220
0
329
7,107

6,506
2,139
46
2,185
4,321

107
107
7,215
2,417
(66)
2,350
4,864

4,321

4,864

- 6 -

Interim period of the previous
consolidated fiscal year
(From January 1, 2023,
to June 30, 2023)(in millions of yen)Interim period of the current
consolidated fiscal year
(from January 1, 2024,
to June 30, 2024)

922
8
9

(2,432)
7
3

(0)

-

940
5,261

(2,420)
2,443

5,261

2,443

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- 7 -(3) Interim consolidated statements of cash flows(in millions of yen)Interim period of the current
consolidated fiscal year
(from January 1, 2024,
to June 30, 2024)

Interim period of the previous
consolidated fiscal year
(From January 1, 2023,
to June 30, 2023)
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 investments in investment partnerships
Foreign exchange losses (gains)
Loss (gain) on sale of investment securities
Financial fees
Decrease (increase) in notes and accounts receivable –trade and contract assets
Decrease (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 refund (paid)
Cash flows from operating activities
Cash flows from investing activities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Purchase of investment securities
Proceeds from sale of investment securities
Payments for investments in capital
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Other
Cash flows from investing activities
Cash flows from financing activities
Repayments of short-term loans payable
Proceeds from long-term borrowings
Repayments of long-term loans payable
Repayments of finance lease obligations
Cash dividends paid
Other
Cash flows from financing activities
Effect of exchange rate changes on cash and cash
equivalents

- 8 -

6,506
552
68
(1)
27
16
(34)
(161)
0

7,215
767
275
(1)
152
10
(31)
(165)
55

(15)

(67)

13
(56)
-

53
(101)
(252)
220

(1,000)

82

58
(90)
(241)
(993)
207
4,856
161
(0)
(3,426)
1,591

158
(99)
(480)
(127)
(1,691)
5,972
162
(52)
(14)
6,068

100
(57)
(898)
-

(220)
(495)
(1)

(1,410)(19,021)

(2)
(140)
(9)

(70)
298
(234)
(129)

4

10

1
(2,412)

46(19,817)

(117)
(3)
(96)
(1,771)(1,988)20,000(714)(102)(1,771)(220)
17,191

34

103

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at end of period(2,775)27,552
24,776

- 9 -

3,544
28,21531,760(4) Notes to interim consolidated financial statements(Notes on premise of a going concern)
Not applicable.
(Changes in significant subsidiaries during the interim period under review)
During the interim period of the current consolidated fiscal year, the Company acquired all of
Revamp Corporation’s shares. Therefore, it has included Revamp Corporation and one of its
subsidiaries in the scope of consolidation and has made one of its affiliates an equity-method affiliate.
(Notes on any significant change in shareholders’ equity)
Not applicable.
(Notes on segment information)[Segment information]
I

Interim period of the previous consolidated fiscal year (from January 1, 2023 to June 30, 2023)
1. Information on the amounts of net sales, and profit or loss by reportable segment(in millions of yen)Amount statedin interim
Adjustments consolidated
financial(Note 2)statements(Note 3)

Reportable segments
Other(Note 1)IT Consulting& ServiceBusiness

BusinessInnovation
Business(1) Sales to outsideclients

24,391

3,913

28,30440

28,344-

28,344(2) Intersegment
sales or transfer

34

58

93

214

307

(307)

-

Total

24,425

3,971

28,397254

28,652(307)

28,344

Segment profit (loss)

6,590

(310)

6,280

(40)

6,239

66

6,305

Total

Total

Net sales(Notes)

1.
2.
3.

2.

“Other” is a segment for operations not included in reportable segments. The segment covers an operation businessof a handball team, and investment in, holding of, and management of securities.
Adjustments to segment profit (loss) represent the amount of intersegment transactions eliminated, and income andexpenses of the holding company excluding the technology segment.
Segment profit (loss) is adjusted with operating income in interim consolidated financial statements.

Information on the amounts of impairment losses or goodwill, etc. of non-current assets byreportable segment(Significant change in the amount of goodwill)In the Business Innovation Business segment, the Group has acquired CURIOSITY inc.,making it a consolidated subsidiary. The increase in goodwill due to this event was 846 million
yen during the interim period of the previous consolidated fiscal year. The amount of goodwill
concerned reflects a significant revision of the initial allocation of acquisition cost due to thefinalization of the provisional accounting treatment for the business combination.

- 10 -II Interim period of the current consolidated fiscal year (from January 1, 2024 to June 30, 2024)
Information on the amounts of net sales, and profit or loss by reportable segment(in millions of yen)Amount statedin interim
Adjustments consolidated
financial(Note 2)statements(Note 3)

Reportable segments
Other(Note 1)Total

IT Consulting& ServiceBusiness

BusinessInnovation
Business(1) Sales to outsideclients

28,396

4,451

32,847

107

32,954-32,954(2) Intersegment
sales or transfer

40

84

124

234

359

(359)

-

Total

28,436

4,535

32,972341

33,314(359)

32,954

Segment profit (loss)

6,719

245

6,964

(27)

6,936

(34)

6,902

Total

Net sales(Notes)1.
2.
3.

“Other” is a segment for operations not included in reportable segments. The segment covers an operation businessof a handball team, and investment in, holding of, and management of securities.
Adjustments to segment profit (loss) represent the amount of intersegment transactions eliminated, and income andexpenses of the holding company excluding the technology segment.
Segment profit (loss) is adjusted with operating income in interim consolidated financial statements.

- 11 -

3.

Supplementary Information
Orders received(in millions of yen)

Category

Interim period of the previous consolidated
Interim period of the current
fiscal year
consolidated fiscal year
(from January 1, 2023, to June 30, 2023) (from January 1, 2024, to June 30, 2024)
Orders received

Order backlog

Orders received

Order backlog

IT Consulting & Service Business

27,026

16,74130,45518,721Business Innovation Business

2,264

1,377

2,279

1,322

29,29018,11832,73420,044

Total

Category

First quarter of the current consolidated
fiscal year
(from January 1, 2024, to March 31, 2024)
Orders received

Order backlog

Second quarter of the current
consolidated fiscal year
(from April 1, 2024, to June 30, 2024)
Orders received

Order backlog

IT Consulting & Service Business

14,882

18,522

15,57318,721Business Innovation Business

1,343

1,847

935

1,322

16,22520,36916,50820,044Total- 12 -