Materials for the Briefing on the Financial
Results for the Second Quarter of FY2022
August 3, 2022
Future Corporation(Prime Market of the Tokyo Stock Exchange: 4722)
Copyright © 2022 by Future Corporation

Today’s Presenters

Yuki Shingu

Yohei Saito

Board Director in Charge of IT
Consulting Business

Board Director, Chief Technology
OfficerPresident and Chief Executive Officer,
Future Architect, Inc.

Executive Senior Vice President,
Future Architect, Inc.

Copyright © 2022 by Future Corporation

1

Agenda1. Earnings Results for the First Half of FY2022
2. Topics Related to the First Half of FY2022
3. Plan for FY2022
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2

1. Earnings Results for the First Half of FY2022

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3

1. Earnings Results for the First Half of FY2022(i) Earnings Highlights

Consolidated
earnings results
for the First Halfof FY2022
IT Consulting &ServiceBusiness Innovation
Inter-segment
adjustment

 IT Consulting & Service Business drove sales and profit up
Net sales
25,940 million yen (+12.2%)
Operating income 6,214 million yen (+65.9%)
Ordinary income 6,432 million yen (+65.4%)
Profit
4,517 million yen (+67.5%)
 Sales and operating income were up due to acquisition of various new projects andsteady progress of large projects along with ongoing efforts for strict quality control.

Net sales
Operating income

22,192 million yen (19.9% increase)
6,617 million yen (86.9% increase)*See Appendix-(iv) Sales and operating income declined due to delays in e-commerce product deliveries
and higher costs of imported merchandise due to the weaker yen.

Net sales
Operating income

3,849 million yen (17.6% decrease)-206 million yen (–)

Net sales
Operating income-296 million yen-191 million yen*See Appendix-(iv)Copyright © 2022 by Future Corporation

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1. Earnings Results for the First Half of FY2022(ii) Analysis of Earnings Results(Changes in Net Sales, Operating Income, and Operating Income Margin)
 Net sales increased due to new orders for various projects received from a wide array of customers andsmooth progress in projects beneficial to our medium-term growth.
 The operating income margin rose to 24.0% in FY2022 1H from 20.5% in FY2021 2H as a result of ongoing
efforts to ensure strict quality control.

Net sales

7,000

25,581

25,9406,000

23,174

22,13522,175

23,117
5,000

Operating income(Million yen)
45.0%

6,214

Operatingincome

40.0%

5,254

Operatingincome margin

35.0%

30.0%

3,746

4,000

3,187

25.0%

3,239

24.0%

20.0%

3,000

20.5%
1,995
2,000

13.8%

14.6%

15.0%

16.2%
10.0%

1,000

9.0%

5.0%

0.0%

0

2019.2H

2020.1H

2020.2H

2021.1H

2021.2H

2022.1H

2019.2H

2020.1H

2020.2H

2021.1H

2021.2H

2022.1H

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51. Earnings Results for the First Half of FY2022(ii) Analysis of Earnings Results (Changes in Balance Sheet) Total assets increased by 532 million yen from the previous fiscal year-end mainly due to anincrease in cash and deposits despite a decline in the prices of shares held.

Balance Sheets
Liabilities(Million yen)

Total assets: 54,483

Total assets: 55,015 (+532)

Net assets
Cash and deposits

11,47012,682
20,53022,854

Other current assets■ M ajor C hanges
C as h and depos i t s：

Other current assets

：

- 497

Property, plant and

：

- 22

equipment

Intangible assets：

Investments and otherassetsto profit increase+ 472 Software +580
Customer-related
assets -104

Property, plant andequipment
Intangible assets+ 2,324 Mainly due

Inves t ment s and11,582
1,155
2,138

1,132
2,610

19,078- 1,745 Decline in the market

Total assets：+ 532 Increase in cash

Total liabilities：- 1,211 Income taxes

ot her as s et s

11,08441,801：43,544

貸１

End of December 2021

列2

借２

payable -441

Deferred tax
liabilities -786

17,332
Total net assets

借１

value of otherinvestment securities

貸２

End of June 2022：

+ 1,743 Profit +4,517
Valuation difference on
available-for-salesecurities -1,665

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1. Earnings Results for the First Half of FY2022(ii) Analysis of Earnings Results (Cash Flows) Cash and deposits up 2,300 million yen boosted mainly by net cash provided by operating
activities of 4,500 million yen(Million yen)

■ Major breakdown of cash flows

Cash Flows

Operating CF

4,540
-997

21,43033-1,252

23,754

Profit before income taxes
Depreciation and amortization of
goodwill
Tax payment
Changes in receivables and payables
Net cash flow
Investing CF

:

6,469

:

556

:
:
:

- 2,403- 82
4,540

Purchase of intangible assets
Purchase of property, plant andequipment
Purchase of securities, etc.
Net cash flow
Financing CF

:

- 825

:

- 52

:
:

- 120
- 997

:

- 1,173

:

- 78

:
:
:

-1
- 1,252:+ 2,324

Dividend payment

End of December
2021

Repayments of finance leaseobligations
Other
Net cash flow

Operating CF

Investing CF

Financing CF

Other

End of June 2022:

Change in cash and cash
equivalents

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1. Earnings Results for the First Half of FY2022(iii) Results by Segment (IT Consulting & Service)
Net sales
FY2021 1H
18,501

Operating income(Million yen)

FY2022 1H
22,192

FY2021 1H
3,540

FY2022 1H
6,617

1

Future Architect, Inc.
Net sales

Operating income

Future Inspace, Inc.
Net sales

FutureOne
Net sales

Operating income

Operating income

YDC Corporation
Net sales

Operating income

dit Co., Ltd.
Net sales

Operating income

 Net sales and operating income increased YoY as a result of orders coming in for various new projects
from a wide range of customers, and the smooth progress in projects along with ongoing efforts forstrict quality control.
 Net sales and operating income increased YoY as a result of steadily acquiring contracts for systeminfrastructure renewal and cloud migration projects from existing customers, in addition to providing
regular maintenance and operation services.
 Net sales declined YoY due to the adoption of the revenue recognition standard, but operating income
increased as a result of steadily working on a large-scale project, ensuring quality, and using industryspecific sales strategies for the company’s original InfiniOne software package to boost orders.
 Both net sales and operating income fell YoY due to a decrease and delay in SI projects despite efforts
to expand the customer base in the logistics field by providing unique know-how to the Group’s
customers.
 Both net sales and operating income decreased YoY due to the adoption of the revenue recognition
standard and declined sales of network equipment despite solid orders received for vulnerability
assessment, computer forensics, incident response, and other cyber security-related
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by Future Corporation

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1. Earnings Results for the First Half of FY2022(iii) Sales Trends by Phase (IT Consulting & Service) We won contracts for a wide variety of new projects for GD. Large-scale projects that would
contribute to our medium-term growth steadily shifted to design and development phases.
(Million yen)Grand design

FY2020 1H

FY2021 1H

FY2022 1H

2,896(16.1%)

3,593(19.4%)

4,435(20.1%)

Design1,634(9.1%)Development

6,486(36.0%)

2,212

6,092

(12.0%)(33.0%)

4,464(20.2%)

Maintenance/Operation

3,721(20.7%)

3,442(18.6%)

7,561(34.2%)

Product sales and other3,277(18.2%)

18,016

18,4743,133(17.0%)

3,755(17.0%)

1,897(8.6%)

22,113Note 1) Total sales are sales to external customers in the IT Consulting & Service Business.
Note 2) “Product sales and other” includes revenue from selection, procurement, and sales of IT equipment, licensing, and other sales.
Note 3) Figures for fiscal 2021 and before are figures prior to the adoption of the Accounting Standard for Revenue Recognition.

Copyright © 2022 by Future Corporation

91. Earnings Results for the First Half of FY2022(iii) Sales Trends by Industry (IT Consulting & Service) Sales to the finance, distribution, and service industries grew as a result of introducing
systems to financial institutions and renovating mission-critical systems for food wholesalersand staffing service providers.
(Million yen)
Service

FY2020 1H

FY2021 1H

FY2022 1H

3,970

Distribution

4,995(27.7%)(22.0%)

5,185(28.1%)

6,957(31.5%)

3,840(20.8%)

Finance

2,826(15.7%)

3,639(19.7%)

5,360(24.2%)

Manufacturing

3,075

Product sales and other3,147(17.5%)(17.1%)

2,866(15.5%)

5,473(24.8%)

2,941(15.9%)

18,016

18,4742,702(12.2%)

1,618(7.3%)

22,113Note 1) Total sales are sales to external customers in the IT Consulting & Service Business.
Note 2) “Product sales and other” includes revenue from selection, procurement, and sales of IT equipment, licensing, and other sales.
Note 3) Figures for fiscal 2021 and before are figures prior to the adoption of the Accounting Standard for Revenue Recognition.

Copyright © 2022 by Future Corporation

101. Earnings Results for the First Half of FY2022(iii) Results by Segment (Business Innovation)
Net sales
FY2021 1H
4,669

Operating income(Million yen)

FY2022 1H
3,849

FY2021 1H
224

FY2022 1H-206

1

YOCABITO (formerly eSPORTS)

 Both net sales and operating income declined YoY as sales of outdoor-related products were hit hard by intensifying
competition and the impact of the yen’s rapid depreciation on the cost of sales, although sales of sporting goods
remained on a recovery track due to the resumption of school sports activities, sporting events, etc.

Tokyo Calendar Inc.

 Despite a steady stream of revenue from online services such as Tokyo Calendar Date and sales of monthly magazines,
advertising revenue decreased, and expenses for building a next-generation gourmet platform were incurred, resulting ina YoY increase in net sales but a YoY decrease in operating income.

CodeCamp, Inc.

 Despite an uptick in orders from corporate customers and the growth of CodeCampKIDS for kids, orders from individual
customers declined as more competitors entered the market. The company also invested heavily in advertising,resulting in a YoY drop in net sales and operating income.

LaiBlitz, Inc.

 Net sales and operating income grew YoY as a result of introducing FastBiz, a packaged membership management ande-commerce service, to the soccer industry and launching BARREL ZONE, a sports crowdfunding service.

Net sales

Net sales

Net sales

Net sales

Operating income

Operating income

Operating income

Operating income

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1. Earnings Results for the First Half of FY2022(iv) Analysis of Changes in Net Sales(Million yen)

Copyright © 2022 by Future Corporation

121. Earnings Results for the First Half of FY2022(iv) Analysis of Changes in Operating Income(Million yen)

Copyright © 2022 by Future Corporation13

2-1. Topics Related to the First Half of FY2022
IT Consulting & Service Business
1. Future’s personnel, technologies, and intellectual property supporting business andsociety
2. Companies continue to work on IT-driven business transformation
3. Training services for DX personnel and organization playing a key role in implementing
digital strategies
4. Providing services that leverage synergies with the Business Innovation Business

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Future’s personnel, technologies, and intellectual property
supporting business and society

Initiatives aimed at sustainable growth of customers’ business and society as a whole
Meeting the DX needs of customers and society with years of experience in theory andpractice
Customers’
needs/issues

RetailWholesale

Distribution

ApparelIntellectual capitalDX
personnel

Value cocreation

Logistics
Basic
infrastructure

EnergyManufacturingMedia Sustainable growth Diverse work
styles Women’s
empowerment

 Declining birth rate/
aging population

 IT personnel
development

 Labor shortage

 Promotion of DX Climate change SDGs Applications tailored to specific industries/business (banking, media, distribution, etc.)

 Design & development
capability

Human capital

Insurance
Securities

Technology

 Future components

Society’s
needs/issues

Banking R&D capability

 Scientific quality
control methods

 Expertise in both business management  Recruitment/training of advanced
and ITDX personnel
 Ability to apply cutting-edge technology

 Intellectual property/
patents
 Diversity in humanresources Understanding of various industries’ operations

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Companies continue to work on IT-driven business transformation
More and more companies are moving toward digitalization as they revamp their overall
supply chains and change the way their employees work
DX initiatives are gaining momentum across all industries and sectors

RetailWholesale

Banking

Insurance
Securities

Distribution

Real-timeArchitecture
Media

ApparelLogistics
Basic
infrastructure

EnergyManufacturing

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Training services for DX personnel and organization playing a
key role in implementing digital strategies
We leverage the Future Group’s knowledge and know-how in working closely withcustomers to help them build and expand their in-house DX capability
Track record since day one
From strategy toimplementation
Trinity of innovation
360-degree support
Neutral position

Work together tohelp build in-housecapability
Offense: Highadded value
Defense: Higher
efficiency

Management

DX personnel/
organization

Gain skills, accumulateknowledge
Establish organization,
improve agility
Operations

Future Group’s consulting services help companies optimize
their operations from within
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Providing services that leverage synergies with the Business
Innovation Business*DraftTurning Future Architect’s intellectual property into solutions for YOCABITO
Platform that supports brick-and-mortar stores and e-commerce business
Infrastructure system for retailers that have both brickand-mortar stores and e-commerce sales channels

Customer touch points

We built an infrastructure system covering the core operations of the retail and distribution
industry, including ordering, purchasing, inventory management, shipping, and sales, as well as
master data on products, stores, and suppliers, and provided it to YOCABITO as a solution.

Service recipients

Master data

In-house EC

Receivables

Purchasing
RetailInfrastructure

Net sales

Customers

StoresInventory

Turn intellectual
property into
solutions

OrdersApparelDepartment
storesProvide services
Other specialized
retailersExternal malls

Strengthen customer touchpoints at both brick-andmortar stores and EC sites

OMO strategy platform combining brick-and-mortar
stores and EC sites

Built a platform with functions necessary for implementing YOCABITO’s OMO strategy
and provided it as a solution to accelerate OMO strategy for the retail and distribution industry

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*Draft

2-2. Topics Related to FY2022
Business Innovation Business1. Tokyo Calendar Inc. First-half average sales of monthly magazines hit a record high(up 7% YoY), and sales of Tokyo Calendar Date were also thehighest ever (up 7% YoY).
2. LaiBlitz, Inc.

Focusing on R&D to develop AI-based video analysis andmetaverse technologies
Sales increased as a result of expanding operations from sports toentertainment.

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Record-high average sales of monthly magazines in the first half, up 7% YoY
Sales of Tokyo Calendar Date also hit a record high, up 7% YoY
As the number of people dining out dwindles due to the pandemic (currently still 40% below the2019 level), the company conducted thorough digital data analysis and marketing to promote its
services by accurately targeting users with a desire to eat out in a safe and clean environment andusers with a desire to go out on a date, a major motivation for eating out.

Userbehavior

Trendanalysis

Digital marketing
platform

Monthlymagazines
Sales up 7%

Tokyo Calendar
Date
Sales up 7%
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*Draft
Focusing on R&D to develop AI-based video analysis and metaverse technologies
Sales increased as a result of expanding operations from sports to entertainment.
Applying AI-based video analysis to winter sports
Snowboard halfpipe

Ski jumping

Speed/height/rotations

R&D of metaverse technologies to be applied tovarious industries

Figure skating

Trajectory/posture

Tourism

EC

Game

Education

Live events/entertainment

Virtual offices

Jump height/distanceYoY increase in net sales and operating income,
18% and 115% respectively
Net sales

FY2021 1H

FY2022 1H

Operating income

FY2021 1H

FY2022 1H

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3. Plan for FY2022

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3. Plan for FY2022(i) Full-year Operating Forecast(Million yen)

InitialFull-year
forecast
forecast
for FY2022 for FY2022

Rate ofchangeResults for
FY2022 1H

Rate ofprogress(vs. revised
forecast)(released
Feb. 8)(revised Jul.
28)

Net sales

55,50055,500-25,94046.7%

Operatingincome10,50012,000+14.3%

6,214

51.8%

7,350

8,500

+15.6%

4,517

53.1%

(operating
income margin)
Profit attributableto owners ofparent(18.9%)(13.2%)(21.6%)(15.3%)(24.0%)(17.4%)(profit margin)

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3. Plan for FY2022(ii) Changes in Net Sales and Operating Income(Million yen)

Operating income

Net sales

12,00012,00 055,50048,69845,389Operating income
10,00 024.0%

Operating income margin
9,000

44,311

22.0%

21.6%

40,218
8,000

20.0%

6,523
6,000

18.5%

5,824

18.0%

5,235
16.0%

4,000

14.5%

14.4%

14.0%

2,000

12.0%

11.8%
0

2018

2019

2020

2021

2022 (Forecast)

10.0%

2018

2019

2020

2021

2022 (Forecast)

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3. Plan for FY2022(iii) Dividends

 Interim dividend is finalized at 17 yen per share, up 2 yen from the initially planned 15 yen
 Year-end dividend will also be increased by 2 yen from the initially planned 15 yen to make it 17
yen, for an annual total of 34 yen

History of annual dividend per share*
40.0

120 .0 %Dividend

34.0 yen

35.0

Dividend payout ratio

100 .0 %

30.0

80.0%

25.5 yen
25.0

19.5 yen

20.0

16.0 yen
15.0

34.9%

20.0 yen

60.0%

46.8%
38.3%

40.0%

35.4%

35.4%
20.0%

10.0

5.0

0.0%

2018

2019

2020

2021

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

2022 (Forecast)

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Appendix

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26

Appendix-(i) Analysis of Earnings Results(Comparison of Results)
Compared with projected results(Million yen)

YoY comparison

Results for
FY2022 1H

FY2022 plan
(revised Jul. 28)

Rate of change

Results for FY2021

Rate of change

Net sales

25,94055,500-23,117+12.2%

Operatingincome6,214

12,000+14.3%

3,746+65.9%

Profit attributable toowners of parent

4,517

8,500

+15.6%

2,696+67.5%(operating income
margin)(profit margin)(24.0%)(17.4%)(21.6%)(15.3%)(16.2%)(11.7%)

Copyright © 2022 by Future Corporation27

Appendix-(ii) Balance Sheets
ChangeMajor changes

End of Jun. 2022

End of Dec. 2021

Total assets
Current assets
Cash and deposits
Notes and accounts receivable –trade, and contract assets
Securities

55,01533,93922,85454,48332,112
20,530

6,988

7,220

- 232

1,500

1,900

- 400

Non-current assets
Property, plant and equipment
Intangible assets(including goodwill)

21,075
1,132

22,371
1,155- 1,296
- 23

2,610

2,138

+ 472 Software +580

Investment securities

15,834

17,697- 1,863

Total liabilities
Current liabilities
Accounts payable – trade
Income taxes payable

11,470
7,463
1,147
1,774

12,682
7,906
913
2,215

- 1,212
- 443
+ 234
- 441

Non-current liabilities

4,006

4,775

- 769

3,491

4,278

- 787

43,544
34,46941,801
31,078+ 1,743+ 3,391 Increase in retained earnings

9,046

10,711- 1,665(Percentage)

End of Jun. 2022

End of Dec. 2021

Shareholders’ equity ratio

79.1

76.7

(Million yen)

Deferred tax liabilities
Total net assets
Shareholders’ equity
Valuation difference on availablefor-sale securities+ 532+ 1,827+ 2,324 Increase in profit

Fluctuations in market value of crossshareholdings

Decrease due to fluctuations in market value ofcross-shareholdings

Decrease due to fluctuations in market value ofcross-shareholdings

Change＋ 2.4

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Appendix-(iii) Cash Flows(Million yen)

FY2022 1H

ChangeFY2021 1H- 299＋ 2,590 Increase in profit before income taxes
＋ 93

4,540
6,469
556

4,839
3,879
463

Non-cash gains and losses other thandepreciation

- 300

- 135

Changes in receivables and payables

28- 2,403
- 997
400
- 52
- 825
- 1,252- 1,173
- 78

1,251
- 729
- 194
-2
- 106
- 332
- 1,406
- 884
- 68

0

- 450

34

3

+ 31

2,324

3,242

- 918

21,43016,010+ 5,420

23,754

19,253+ 4,501

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization of goodwill

Tax payment

Cash flows from investing activities
Purchase and redemption of securities
Purchase of property, plant and equipment
Purchase of intangible assets

Cash flows from financing activities
Dividend payment
Repayments of finance lease obligations
Purchase of additional shares of subsidiaries

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 theperiodCash and cash equivalents at the end of theperiodMajor changes- 165- 1,223- 1,674- 803+ 402 Proceeds from redemption of securities
+ 54
- 493
+ 154
- 289
- 10
Purchase of additional shares of a consolidated+ 450 subsidiary (CodeCamp, Inc.)

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Appendix-(iv) Results by Segment
FY2022 1H

FY2021 1H

YoY change

25,94023,117+12.2%IT Consulting & Service

22,192

18,501+19.9%

Business Innovation

3,849

4,669

-17.6%

Other

194

112

-

Adjustments

-296

-166

-

6,214

3,746

+65.9%IT Consulting & Service

6,617

3,540

+86.9%

Business Innovation

-206

224

-

-4

39

-

-191

-57

-

(Million yen)

Net sales

Operating income

Other
Adjustments

Copyright © 2022 by Future Corporation30

Appendix-(vi)-1 Recognition of Backlog (IT Consulting & Service)(1) For risk management purposes, we only recognize the part of a large-scale, long-term project that has
been finalized (i.e., the contract has been signed) as an order received.
▼ End of 3Q▼ End of year

▼ End of 1Q▼ End of 2Q▼ End of 3Q

Project A
Phase 1(completed)
25M

Phase 2 (finalized)
25M

The amount of orders received
for the current year is 25M.

Phase 3

Project B
Phase 1 (finalized)
50M

Phase 2Phase 3

(2) Amounts of finalized orders for which sales have not been realized based on the percentage-ofcompletion method are aggregated as an order backlog.
Order backlog for the current year = Order backlog for the previous year + Orders
received for the current year − Sales (recognized by percentage-of-completion orcompleted-contract method)

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Appendix-(vi)-2 Relationship between Backlogs and Sales(Millions of yen)
18,000IT Consulting & Service – Changes in backlogs and sales(Quarterly basis)
Order backlog

18,000Net 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

•
•

2019 1Q

2019 2Q

2019 3Q

2019 4Q

2020 1Q

2020 2Q

2020 3Q

2020 4Q

2021 1Q

2021 2Q

2021 3Q

2021 4Q

2022 1Q

2022 2Q

Due to how we recognize backlog, as explained on the previous page, the order backlog at the end of the period does
not necessarily correlate with future net sales.
Orders for which the contract term begins after January 2022 are presented by applying the Accounting Standard for
Revenue Recognition, etc.

0

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32

The summary report of operating results, supplementary materials,
briefing material and various other IR materials are also available
on the Company’s website.
https://www.future.co.jp/investor_relations/
Investor Relations, Future Corporation
TEL: 03-5740-5724
FAX: 03-5740-5820
E-mail: ir@future.co.jp
This material contains future forecasts made based on currently available information. These forecasts may change depending on the future direction of theJapanese economy and the IT service industry. It should be noted that the Company does not guarantee or promise the accuracy of these forecasts.
In this material, the figures in the summary report of operating results, etc. that are indicated in units of a thousand yen are stated in units of a million yen.
Hence, a disparity may be found in some of the totals and differences. For detailed figures, please refer to the summary report of the operating results.
Copyright © 2022 by Future Corporation

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