[Translation]
October 25, 2012

Consolidated Summary Report of Operating Results for the Third Quarter of Fiscal 2012
(Year ending December 2012) [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: November 13, 2012
Scheduled date for distribution of dividend payments: Creation of supplemental material on quarterly financial results: No
Holding of quarterly results briefing:No(Amount rounded off to million yen)

1. Consolidated Results for the Third Quarter of Fiscal 2012 (January 1, 2012 to September 30, 2012)(1) Consolidated operating results (accumulated total)(Percentages are year-on-year changes)
Net sales

Operating income

Million yen%

Million yen

Ordinary income%

Million yen

Quarterly net income%

Million yen%

3Q, Fiscal 201217,277(1.1)
1,334(40.4)
1,407(39.4)801 (42.4)
3Q, Fiscal 201117,463
5.3
2,237
11.2
2,321
10.7
1,392
26.2
(Reference): Comprehensive income 3Q, Fiscal 2012: 806 million yen (-38.1%) 3Q, Fiscal 2011: 1,301 million yen(−%)

Quarterly net income
per share

Quarterly net income
per share (fully diluted)

Yen

3Q, Fiscal 2012
3Q, Fiscal 2011

Yen

1,774.70
3,048.92––(2) Consolidated financial position
Total assets
3Q, Fiscal 2012
Fiscal 2011

Shareholders’equity ratio

Net assets

Net assets per share

Million yen

Million yen%

Yen

14,415
14,453

11,418
11,41078.4
78.9

25,091.43
24,964.67(Reference) Shareholders’ equity 3Q, Fiscal 2012: 11,296 million yen

3Q, Fiscal 2011:

11,399 million yen

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

Fiscal 2011
Fiscal 2012
Fiscal 2012 (Forecast)

–
–

Yen

Year-end
dividend

Yen

750.00750.00––(Reference): Modification of the projected dividends announces most recently:

Total
Yen

Yen

750.001,500.00

750.001,500.00

No

3. Projected Consolidated Results for Fiscal 2012 (January 1, 2012 to December 31, 2012)(Percentages are year-on-year changes)

Net sales
Full year

Operating income Ordinary income

Net income

Net income per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

24,800

6.5

3,300

12.6

3,330

9.1

1,930

12.5

4,286.68(Reference): Modification of the projected consolidated announced most recently:No[Translation]* Notes(1) Changes in significant subsidiaries in the consolidated cumulative third quarter of the fiscal year under review(Changes in specified subsidiaries that involved changes in the scope of consolidation) : No
New:

- companies(company names)

Exclusion:- companies(company names)(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 third 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 :No2) Change in accounting policies other than item 1) above :No3) Change in accounting estimates :No4) Retrospective restatements :No(4) Number of outstanding shares (common stock)
1)

2)

3)

Total outstanding shares as of the end of the period (including treasury stocks)
3Q, Fiscal 2012:

476,640 sharesFiscal 2011:

476,640 shares

Total treasury stocks as of the end of the period
3Q, Fiscal 2012:

26,408 sharesFiscal 2011:

20,008 shares

Average number of outstanding stocks during the quarter under review (accumulated period for quarter)
3Q, Fiscal 2012:

451,536 shares

3Q, Fiscal 2011:

456,632 shares*Indication of quarterly review procedure implementation status
This quarterly earnings report is exempt from the quarterly review procedures based upon the Financial Instruments and Exchange Act. At thetime 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
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.

[Translation]
 Contents

1. Qualitative information about consolidated operating results for the third 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 nine months 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
4. Supplemental information............................................................................................................................................................... 12(1) Orders received....................................................................................................................................................... 12-1-

[Translation]

1. Qualitative information about consolidated operating results for the third quarter of the fiscal year underreview(1) Qualitative information about consolidated operating results
During the first nine months of the current fiscal year, the economic recovery in Japan was partly observed resulting fromreconstruction demand of the Great East Japan Earthquake. However, Japanese economy has still remained in uncertain situation
amid of many issues of concern, including a slowdown of overseas economies caused by European debt problems, the prolonged
strong yen as well as the worsening relations between Japan and China.
Under such circumstances, the Group’s consolidated financial results for the third quarter of the fiscal year ending December
2012 were on about the same level comparing to the corresponding period of the previous year with net sales of 8.0% increaseyear-on year to ¥6,151 million, operating income 0.2% increase year-on-year to ¥609 million, ordinary income 1.1% decreaseyear-on-year to ¥603 million and quarterly net income 5.8% increase year-on-year to ¥337 million. However, in the first ninemonths the Group did not reach the level to cover the decline in earnings for the first half. This is because large projects
completed in the first and second quarter and the third quarter accumulated was the transitional period switching to new projects.
As a result, consolidated net sales for the first nine months decreased 1.1% year-on-year to ¥17,277 million; operating income
decreased 40.4% to ¥1,334 million; ordinary income decreased 39.4% to ¥1,407 million. And net income decreased 42.4% to¥801 million.
Operating results of each business segment are as follows. The operating results of each business segment represent values
before adjustment of internal sales or transfers among segments.
In the IT Consulting Business, sales increased from new clients in the financial sector, such as regional banks, securities
companies and FX online-trade companies, in addition to projects such as system integrations related to industrial reorganization,
large-scale development for manufacturers, development using solutions for retailers, and the establishment of e-commerce
infrastructures.
Furthermore, we have begun to see favorable results from the fields of new service areas, including cloud services for financial
institutions, valued added outsourcing services, and global ERP, which we are promoting as a new growth strategies, as well as
the projects mentioned above. Meanwhile, in the new business such as businesses expansion in Southeast Asia and healthcare
operation, the number of customers we acquired is increasing gradually, although it is still preceded by costs. As a result, net
sales for the period under review decreased 0.4% year-on-year to ¥11,042 million and operating income decreased 36.4% to¥1,294 million.
In the Package & Service Business, Ascendia Inc. saw both sales and profits continue to be steady, supported by strong orders
received and a steady progress of public-related projects. The performance of Future One, Inc. was on a recovery trend following
the second quarter, although the profitability of some projects deteriorated in the first quarter. As a result, net sales were ¥3,148
million, down 0.6%, and operating income stood at ¥116 million, down 15.5%.
In the Corporate Revitalization Business, Uoei Shoten Corporation, which operates grocery supermarkets, expanded individualstores’ sales floor space for products according to their needs and made aggressive efforts for the o-bon sales campaign insummer, as well as striving to ensure a stable gross profit margin using IT. However, net sales decreased 2.9% year-on-year to¥3,375 million and operating income decreased 31.9% to ¥38 million, partly because of an increase in utilities expenses insummer.
(2) Qualitative information about consolidated financial condition(Assets, liabilities and net asset)
Total assets at the end of the third quarter under review were ¥14,415 million, down ¥38 million from the end of the previous
consolidated fiscal year. This was mainly attributable to a decrease in current assets, such as cash and deposits (decrease of ¥889
million from the end of the previous consolidated fiscal year) and short-term investment securities (down ¥699 million), despite
an increase in fixed assets, such as software (increase of ¥355 million from the end of the previous consolidated fiscal year) andinvestment securities (up ¥258 million) we purchased.
Liabilities decreased by ¥45 million from the end of the previous consolidated fiscal year to ¥2,996 million. The decline waschiefly due to a decrease in income tax payable, etc. (down ¥267 million), despite an increase in accounts payable (increase of¥95 million) and other current liabilities.
Net assets were ¥11,418 million, up ¥7 million from the previous fiscal year, primarily reflecting rises in retained earnings(increase of ¥121 million from the end of the previous fiscal year) and minority interests, and an increase in treasury stocks-2-

[Translation](down ¥221 million).
(Analysis of cash flows)
Net cash inflow from operating activities was an inflow of ¥203 million (compared to an inflow of ¥830 million for thecorresponding period of the previous fiscal year), primarily due to the booking of net income before taxes of ¥1,436 million,
despite an increase in accounts receivable of ¥376 million and income tax, etc. paid of ¥891 million.
Net cash outflow from investing activities totaled an outflow of ¥694 million (compared to an outflow of ¥113 million for thecorresponding period of the previous fiscal year), chiefly owing to the purchase of tangible fixed assets in the amount of ¥232
million and the purchase of intangible fixed assets in the amount of ¥392 million.
Net cash outflow from financial activities was an outflow of ¥900 million (compared to an outflow of ¥893 million for thecorresponding quarter of the previous fiscal year), mainly due to purchase of treasury stock of ¥223 million and dividends paid of¥658 million.
As a result of these operating, investing, and financing activities, the balance of cash and cash equivalents at the end of thethird quarter under review was ¥4,136 million.
(3) Qualitative information about consolidated earnings forecast
There is no revision to the earnings forecast for the full fiscal year ending December 2012 that was announced on July 26,
2012.

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
Not applicable-3-

[Translation]

3. Quarterly Period Consolidated Financial Statements(1) Quarterly Period Consolidated Balance Sheets
Previous consolidated
fiscal year
(December 31, 2011)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Short-term Investment securities
Merchandise and finished goods
Work in process
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Other
Accumulated depreciation
Other, net
Total tangible fixed assets
Intangible fixed assets
Goodwill
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-4-(in thousands of yen)
Consolidated third quarter
under review(September 30, 2012)

5,076,449
2,770,586
701,110
126,890
54,9281,357,981
448,566(7,364)
10,529,150

4,186,528
3,348,506
1,800
150,461
66,3891,362,490
633,358(4,372)
9,745,161

3,077,281(2,654,607)
422,673
122,868
1,549,422(1,308,490)
240,931
786,474

3,095,943(2,709,746)
386,196
122,868
1,791,103(1,423,597)
367,506
876,571

145,464
386,794
22,063554,322

207,228
742,582
22,101
971,912

1,523,639
1,119,817(60,043)2,583,414
3,924,210
14,453,360

1,781,963
1,098,654(58,999)
2,821,618
4,670,103
14,415,264

[Translation](in thousands of yen)
Consolidated second quarter
under review(September 30, 2012)

Previous consolidated
fiscal year
(December 31, 2011)
Liabilities
Current liabilities
Accounts payable
Short-term borrowings
Long-term borrowings due within one year
Income tax payable, etc.
Reserve for bonuses
Reserve for quality assurance
Reserve for loss on projects
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, translation adjustments, etc.
Net unrealized gain (loss) on available-for-salesecurities
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets-5-644,020
32,327
16,000590,481106,269
65,3594,200
1,257,508
2,716,167

739,259
30,429−323,209
107,00918,252
2,697
1,447,979
2,668,837

309,408
16,899326,307
3,042,475

314,880
13,011
327,892
2,996,729

1,421,815
2,495,772
8,661,248(1,171,668)
11,407,167

1,421,815
2,495,772
8,782,442(1,393,328)
11,306,701(1,483)

1,858(6,017)(7,501)
11,22011,410,885
14,453,360(11,595)(9,737)
121,570
11,418,535
14,415,264

[Translation](2) Quarterly Period Consolidated Statements of Income and Comprehensive Income (First nine months period)

17,463,904
10,755,240
6,708,664(in thousands of yen)First nine months of theconsolidated fiscal year underreview(from January 1, 2012
to September 30, 2012)17,277,641
11,132,645
6,144,995

224,139
2,283,892
52,576
31,37389,867
142,953
1,646,233
4,471,036
2,237,628

204,5022,532,172
96,052
21,26480,422
158,879
1,717,608
4,810,901
1,334,094

2,072
18,79042,463

3,509
21,992−

197

20,30024,762
88,28532,80178,604

1,424
−
1,706
939
4,069
2,321,844

1,395
1,647
−
1,799
4,841
1,407,857

First nine months of the previous
consolidated fiscal year
(from January 1, 2011
to September 30, 2011)
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
Amortization of goodwill
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Amortization of negative goodwill
Equity in income of non-consolidated subsidiaries &
affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission for purchase of treasury stock
Foreign-exchange losses
Other
Total non-operating expenses
Ordinary income-6-[Translation]

First nine months of the previous
consolidated fiscal year
(from January 1, 2010
to September 30, 2010)
Extraordinary income
Gains on sale of investment securities
Gains on sale of fixed assets
Reversal of reserve for quality assurance
Compensation for damages received
Gain on negative goodwill
Total extraordinary income
Extraordinary losses
Losses on disposal of fixed assets
Losses on sale of investment securities
Losses on devaluation of investment securities
Litigation expenses
Effects due to application of accounting standard for
asset retirement obligations
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 ownersof the parent company
Comprehensive income attributable to minority interests-7-(in thousands of yen)First nine months of theconsolidated fiscal year underreview(from January 1, 2011
to September 30, 2011)

160,290203
38,27594,945–
293,715––––
75,20975,20920,346
1,349
2,580
−

−
−
1,275
44,000252,519−30,000306,7962,308,764
916,531
1,392,233−
1,392,233−
1,392,233

1,666
46,942
1,436,124
626,450809,674
8,332
801,341
8,332
809,674(83,163)(7,143)

3,735(5,674)30(1,689)(90,276)
1,301,956(3,628)806,045

1,301,956

799,105−

6,939

[Translation](3) Quarterly Period Consolidated Statements of Cash FlowsFirst nine months of the previous
consolidated fiscal year
(from January 1, 2011 to September
30, 2011)(in thousands of yen)First nine months of theconsolidated fiscal year underreview(from January 1, 2012
to September 30, 2012)

Cash flows from operating activities
Net income before taxes (quarterly period)
Depreciation and amortization
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
Earned interest and dividends
Interest expenses

2,308,764
166,042(3,783)(11,623)(67,446)−(20,862)
1,424

1,436,124
196,717(4,035)(687)(47,107)(1,502)(25,502)
1,395

Equity in income (losses) of subsidiaries and affiliates(197)(20,300)

Gain on negative goodwill
Compensation for damages received
Gains (losses) on sale of fixed assets
Losses on disposal of fixed assets
Gains (losses) on sale of investment securities
Gains (losses) on valuation of investment securities
Litigation expenses
Effects due to application of accounting standard for
asset retirement obligations
Increase (decrease) in accounts receivable
Increase (decrease) in inventories
Increase (decrease) in accounts payable
Other
SubtotalInterest and dividends received
Interest paid
Income and other taxes
Litigation expenses
Net cash provided by (used in) operating activities−(94,945)(203)
20,346(158,940)
2,580−(75,209)
−
−
−
−
1,275
44,000252,519−(9,732)(52,973)
76,499(176,531)
2,230,935
21,643(1,664)(1,420,551)−
830,363(376,270)(23,709)
24,342(14,947)
1,114,581
25,860(1,477)(891,083)(44,000)
203,881-8-

[Translation]

First nine months of the previous
consolidated fiscal year
(from January 1, 2011
to September 30, 2011)
Cash flows from investing activities
Proceeds from withdrawal of time deposits
Purchase of short-term investment securities
Proceeds from redemption of securities
Purchase of tangible fixed assets
Proceeds from sale of tangible fixed assets
Purchase of intangible fixed assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from redemption of investment securities s
Payments for execution of asset retirement obligations
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
Payment for long-term loans receivable
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-(in thousands of yen)First nine months of theconsolidated fiscal year underreview(from January 1, 2012
to September 30, 2012)

30,000−−(130,568)
4,389(98,828)−
228,270
1,500(3,800)−(201,196)
400,464(232,936)−(392,207)(180,100)−−(1,211)−(64,435)−(160,091)
14,695−−
1,400(113,033)(56,833)(5,724)
31,581(2,002)8,240
2,250(694,110)−(32,000)−−(861,937)(893,937)(2,422)(40,075)
24,021(223,307)(658,251)(900,036)(6,253)482(182,861)
5,153,036
4,970,175(1,389,783)
5,526,311
4,136,528

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

- 10 -

[Translation](6) Segment information
I. Third quarter of the previous consolidated fiscal year (from January 1, 2011 to September 30, 2011)
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

11,086,660

2,847,837

4,464

319,152

11,091,124

3,166,989

Total

3,473,566 17,408,064
831

324,4483,474,398 17,732,512

Others(Note 1)

Total

55,840 17,463,904(in thousands of yen)Amount on
Quarterly
PeriodAdjustment
Consolidated(Note 2)
Statementsof Income(Note 3)–

17,463,904

346,623(346,623)–

78,015 17,810,528(346,623)

17,463,904

22,175

Segment income
2,035,147
137,637
55,953 2,228,738(8,943) 2,219,794
17,834
2,237,628
or loss
Notes: 1. “Others,” a segment not included in the business segment reported, include Internet-related businesses and securities
investment, holding, and management activities.
2. “Adjustment” of segment income or loss of ¥17,834 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.

Third quarter of the consolidated fiscal year (from January 1, 2012 to September 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

11,005,160

2,749,020

37,041

399,867

11,042,201

3,148,887

Total

3,374,543 17,128,724
737

437,645

3,375,281 17,566,369

Others(Note 1)

Total

148,917 17,277,641(in thousands of yen)Amount on
Quarterly
PeriodAdjustment
Consolidated(Note 2)
Statementsof Income(Note 3)–

17,277,641

438,311(438,311)–

149,582 17,715,952(438,311)

17,277,641

665

Segment income
1,294,451
116,300
38,097 1,448,849 (141,354) 1,307,495
26,5981,334,094
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 ¥26,598 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.

- 11 -

[Translation]

4. Supplemental information(1) Orders received

Segment(in thousands of yen)
Third quarter of the previous consolidated Third quarter of the consolidated fiscal year
fiscal year
under review(from January 1, 2011 to September 30,(from January 1, 2012 to September 30,
2011)
2012)
Orders received
Backlog
Orders received
Backlog

IT Consulting Business

10,740,854

4,325,152

12,052,847

4,606,839

Package & Service Business

3,171,458

1,020,679

2,749,252

1,185,546

55,1205,877

205,790

61,122

13,967,433

5,351,709

15,007,889

5,853,508

OthersTotal- 12 -