Consolidated Summary Report of Operating Results for the First Quarter of Fiscal 2022
(Year Ending December 31, 2022) [Japan GAAP]

April 27, 2022

Company name:
Future Corporation
Shares listed on: First Section of Tokyo Stock Exchange
Securities code:
4722 URL https://www.future.co.jp
Representative:
Yasufumi Kanemaru, Chairman and President
Contact:
Yasukazu Matsushita, Head of Financial & Accounting GroupTEL 03-5740-5724
Scheduled date for filing the quarterly report:
May 13, 2022
Scheduled date for distributing dividend payments:－Creation of supplemental material on quarterly financial results: No
Holding of financial results briefing:No(Amounts rounded off to million yen)

1.

Consolidated Results for the First Quarter of Fiscal 2022 (January 1, 2022 to March 31, 2022)(1) Consolidated operating results (cumulative)
Net sales
1Q Fiscal 2022
1Q Fiscal 2021

(Note) Comprehensive income(Percentage figures indicate year-on-year changes.)

Operating income

Profit attributable to owners of parent

Million yen%

Million yen%

Million yen%

12,605
11,083

13.7
0.5

3,341
1,702

96.2
2.9

2,386
1,242

92.0
8.3

1Q Fiscal 2022: 814 million yen (565.2%)

1Q Fiscal 2021: 122 million yen ((91.1)%)

Profit per shareYen

1Q Fiscal 2022
1Q Fiscal 2021

26.96
14.05

(Notes) 1. The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020)
and relevant ASBJ regulations from the beginning of the first quarter of the current fiscal year, and each figure for the firstquarter of the fiscal year ending December 31, 2022 is the figure after applying the accounting standard and relevant ASBJ
regulations.
2. The Company conducted a two-for-one stock split of its common stock on January 1, 2022. Profit per share is computed basedon the assumption that the stock split was conducted at the beginning of the previous fiscal year.
(2) Consolidated financial position
Total assets

Net assets

Million yen

Shareholders’ equity ratio
Million yen

Net assets per share%Yen

1Q Fiscal 2022
52,19741,440
79.4
Fiscal 2021
54,48341,801
76.7(Reference) Shareholders’ equity 1Q Fiscal 2022: 41,440 million yen
Fiscal 2021: 41,801 million yen

468.12472.19(Notes) 1. The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020)
and relevant ASBJ regulations from the beginning of the first quarter of the current fiscal year, and each figure for the firstquarter of the fiscal year ending December 31, 2022 is the figure after applying the accounting standard and relevant ASBJ
regulations.
2. The Company conducted a two-for-one stock split of its common stock on January 1, 2022. Net assets per share is computed
based on the assumption that the stock split was conducted at the beginning of the previous fiscal year.
2. Cash Dividends
Dividends per share
End of the first quarter
dividend

Fiscal 2021
Fiscal 2022
Fiscal 2022 (forecast)End of the second
quarter dividend

End of the third quarter
dividend

Period-end dividend

Total

Yen

Yen

Yen

Yen

Yen

－
－

23.00

－

28.00

51.00

15.00

－

15.00

30.00

(Notes) 1. Revisions to the most recently announced dividend forecast: None
2. The Company conducted a two-for-one stock split of its common stock on January 1, 2022. The dividend amounts for fiscal
2021 are the actual dividend amounts before the stock split was conducted.

3. Projected Consolidated Results for Fiscal 2022 (January 1, 2022 to December 31, 2022)
Net salesFirst six months(accumulated
total)
Full-year(Note)(Percentage figures indicate year-on-year changes.)

Profit attributable to ownersof parent

Operating income

Profit per share

Million yen%

Million yen%

Million yen%

Yen

26,50055,500

14.6
14.0

5,000
10,500

33.5
16.7

3,500
7,350

29.8
15.4

39.54
83.03

Revisions to the most recently announced earnings forecast: None

* Notes(1) Changes in significant subsidiaries during the quarter under review (changes in specified subsidiaries accompanied by changes in thescope of consolidation): None
(2) Application of accounting treatment particular to the preparation of quarterly consolidated financial statements: None
(3) Changes in accounting policies or estimates and retrospective restatements
1) Changes in accounting policies in accordance with revisions of accounting standards: Yes
2) Changes in accounting policies other than item 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatements: None
(Note)For more information, please see “(3) Notes to quarterly consolidated financial statements (Changes in accounting policies)”in “2. Quarterly Consolidated Financial Statements and Major Notes” on page 8 of the appendix.

(4) Number of outstanding shares (common stock)1) Total outstanding shares as of theend of the period (including
1Q Fiscal 2022
treasury shares)
2) Total treasury shares as of the end
1Q Fiscal 2022of the period
3) Average number of outstanding
shares during the period under
1Q Fiscal 2022
review(Note)

95,328,000 shares Fiscal 2021

95,328,000 shares

6,801,478 shares Fiscal 2021

6,801,478 shares

88,526,522 shares 1Q Fiscal 2021

88,482,769 shares

The Company conducted a two-for-one stock split of its common stock on January 1, 2022. “Total outstanding shares as of theend of the period,” “Total treasury shares as of the end of the period,” and “Average number of outstanding shares during theperiod under review” are computed on the assumption that the stock split was conducted at the beginning of the previous
fiscal year.

* This summary of quarterly financial results is outside the scope of quarterly 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 the Company 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 tovarious uncertain factors.

(Change in the way yen amounts are reported)
The figures for accounts and other items presented in the Company's quarterly consolidated financial statements were previously stated in thousands of yen, buteffective from the first quarter of the current fiscal year and the first three months of the current fiscal year these amounts are now stated in millions of yen. The
figures for the previous fiscal year and the first three months of the previous fiscal year are also presented in millions of yen for ease of comparison.

Contents
Contents......................................................................................................................................................................................................... 1
1. Qualitative Information Regarding Financial Results for the First Quarter under Review........................................................................... 2
Explanation of Operating Results ................................................................................................................................................................. 2
2. Quarterly Consolidated Financial Statements and Major Notes ................................................................................................................... 4(1) Quarterly consolidated balance sheets .................................................................................................................................................... 4(2) Consolidated quarterly statements of income and comprehensive income ............................................................................................. 6(First three-month period) .................................................................................................................................................................... 6(3) Notes to quarterly consolidated financial statements .............................................................................................................................. 8(Notes on premise of a going concern) ................................................................................................................................................. 8(Notes on any significant change in shareholders' equity).................................................................................................................... 8(Changes in accounting policies).......................................................................................................................................................... 8(Segment information) ......................................................................................................................................................................... 9
3. Supplementary Information ........................................................................................................................................................................ 10
Orders received .................................................................................................................................................................................. 10

1. Qualitative Information Regarding Financial Results for the First Quarter under Review
Explanation of Operating Results
Looking at the economic environment during the first three months of the current fiscal year, we saw companies
actively harnessing the power of IT to change their operations, such as promoting digital transformation (DX),
implementing business reforms, and developing new digital services, despite global uncertainty. As companies
implement teleworking as part of their workplace reform efforts and revamp their overall supply chains, they are
racing toward digitalization. More and more companies across all industries and fields have been moving toward DX
since last fiscal year. In terms of individual lifestyles, the use of IT-driven services, such as shopping at e-commercesites, enjoying entertainment and sports on video and online, and accessing education and self-development services
online, have spread widely. At the same time, camping and other outdoor leisure activities continued to be popular.
Working against this backdrop, we won various types of contracts from customers in a wide range of industries andmade steady progress with projects that would contribute to medium-term growth. As a result, consolidated net sales
for the first three months totaled 12,605 million yen (up 13.7% year on year), operating income was 3,341 million
yen (up 96.2% year on year), and profit attributable to owners of parent came to 2,386 million yen (up 92.0% year onyear).
Details of the performance (net sales and operating income) of each segment are as follows.
(1) IT Consulting & Service Business
Future Architect, Inc. (including the technology division of Future Corporation) built digital infrastructures forthe retail and logistics industries using its proprietary AI technology, such as full digitalization of forms with the
AI-OCR technology. The company also worked on strategic projects as it continued to receive a steady streamof orders from a wide variety of customers. These included the development of a fully automated system using
AI and IoT technology in the energy industry as well as a mission-critical system designed to accelerate digitalcommerce for the apparel industry, and the revamping of customers’ IT infrastructures. In addition to that, thecompany made steady progress with projects that would contribute to medium-term growth, including a project
introducing next-generation banking systems to regional financial institutions and projects aimed at renovating
mission-critical systems for staffing service providers and wholesalers. The company also continued to
implement strict quality control. As a result, it enjoyed a year-on-year increase in net sales and a sharp increasein operating income.
Future Inspace, Inc. steadily acquired contracts for system infrastructure renewal and cloud migration projects
from existing customers, in addition to providing regular maintenance and operation services. As a result, net
sales and operating income increased year on year.
Future One, Inc. saw a year-on-year decline in net sales due to the adoption of the revenue recognition standard,
but its operating income increased year on year as a result of steadily working on a large-scale project that had
been ongoing since last year, ensuring quality, and improving the control of other projects.
YDC Corporation endeavored to expand its customer base in the logistics field by providing unique know-how
to the Group’s customers. However, due to a decrease in SI projects, net sales and operating income decreased
year on year.
Both net sales and operating income of dit Co., Ltd. declined year on year due to procurement delays for its
network construction-related service components caused by semiconductor shortages, although the company
received solid orders for vulnerability assessment, computer forensics, incident response, and other cybersecurity-related services.
As a result, net sales of the segment increased to 10,882 million yen (up 22.0% year on year) and operating
income grew substantially to 3,505 million yen (up 117.1% year on year).
(2) Business Innovation Business
YOCABITO CO., LTD. focused on switching to a new e-commerce infrastructure system and opening aflagship store in the face of significant delays in the delivery of products from overseas, growing competition foroutdoor-related products, and a lull in demand. As a result, both net sales and operating income declined year on
year.
CodeCamp, Inc. enjoyed an uptick in orders from corporate customers and the growth of CodeCampKIDS for
kids, but orders from individual customers declined as more competitors entered the market. The company also
made active investment for curriculum development and advertisement to enhance recognition, resulting in adecrease in net sales and operating income year on year.

-2-Tokyo Calendar Inc. saw a steady stream of revenue from its online services such as Tokyo Calendar Date aswell as growth in advertising revenue due to the enhanced quality of corporate promotions, resulting in year-onyear increases in net sales and operating income.
LaiBlitz, Inc. saw both net sales and operating income increase year on year after focusing on using FastMotion,
its sports video analysis technology, for winter sports and introducing FastBiz, a packaged membershipmanagement and e-commerce service, to the soccer and entertainment industries.
As a result, the segment saw net sales decrease to 1,774 million yen (down 18.4% year on year) on top of an
operating loss of 67 million yen (down from an operating income of 100 million yen for the same period lastyear).
(Note) Segment results mentioned above are before adjustment for intersegmental sales and transfers.

-3-

2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheets(in millions of yen)Previous consolidated fiscal year
(December 31, 2021)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
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
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-First quarter of the current
consolidated fiscal year
(March 31, 2022)

20,5307,220

20,176
-

-

7,137

1,900
1,230
9
1,224
(3)
32,112

2,000
1,385
8
894
(3)
31,600

1,685(1,003)682
0
2,969(2,497)
471
1,155

1,755
(1,028)726
02,950(2,513)
436
1,164

10
1,915
208
4
2,138

7
2,135
156
5
2,304

17,697
1,175
19
261
(75)
19,07822,371
54,483

15,714
1,176
52
260
(75)
17,12820,59752,197(in millions of yen)Previous consolidated fiscal year
(December 31, 2021)
Liabilities
Current liabilities
Accounts payable – trade
Accounts payable – other
Income taxes payable
Provision for bonuses
Provision for quality assurance
Other
Total current liabilities
Non-current liabilities
Asset retirement obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
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-First quarter of the current
consolidated fiscal year
(March 31, 2022)

913
1,491
2,215
243
34
3,007
7,906

1,272
1,077
977
1,063
40
2,499
6,931

350
4,278
147
4,775
12,682

358
3,301
164
3,825
10,7574,000
29,299(2,221)
31,0784,000
30,511(2,221)32,29010,7111
9
10,72341,801
54,483

9,131
4
14
9,150
41,44052,197

(2) Consolidated quarterly statements of income and comprehensive income(First three-month period)(in millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Directors’ compensations
Salaries and bonuses
Training expenses
Research and development expenses
Depreciation
Recruiting expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of shares of subsidiaries and associates
Gain on sales of investment securities
Total extraordinary income
Profit before income taxes
Total income taxes
Profit(Breakdown)
Profit attributable to owners of parent
Profit attributable to non-controlling interests

First three months of the previous First three months of the current
consolidated fiscal year
consolidated fiscal year
(from January 1, 2021
(from January 1, 2022
to March 31, 2021)
to March 31, 2022)
11,083
12,605
6,213
6,261
4,870
6,344

-6-

141
1,405
60
125
53
78
1,303
3,168
1,702

133
1,425
78
165
102
150
947
3,003
3,341

0
0

0
－

11

18

5
10
27

3
3
26

0
0
1,729

0
0
3,367

6
－
6
1,736
480
1,255

－
42
42
3,409
1,022
2,386

1,242
12

2,386
-

(in millions of yen)

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 ofparentComprehensive income attributable to non-controllinginterests

First three months of the previous First three months of the current
consolidated fiscal year
consolidated fiscal year
(from January 1, 2021
(from January 1, 2022
to March 31, 2021)
to March 31, 2022)-7-(1,146)15
0(1,579)
2
4

(2)

0

(1,133)122(1,572)
814

109

814

12

－

(3) Notes to quarterly consolidated financial statements(Notes on premise of a going concern)
Not applicable.
(Notes on any significant change in shareholders' equity)
Not applicable.
(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Group has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March
31, 2020) and relevant ASBJ regulations effective from the beginning of the first quarter of the current fiscal
year, and it now recognizes revenue at the time the control of promised goods or services is transferred to thecustomer at the amount expected to be received upon exchange of said goods or services.
Accordingly the Group conducted the principal-versus-agent assessment and found that it met the definition of
the agent in some of the IT Consulting & Service Business segment’s maintenance and operation services.
Hence the Group now recognizes revenue as the net amount.
For sales of the Group's software licenses as well as server equipment and other products that come withmaintenance services, the Group now recognizes revenue from contracts in which it does not have a
performance obligation to be fulfilled over time, such as maintenance services, at the time of sales, andrecognizes revenue from contracts that come with maintenance services over the contract term during which theGroup has a performance obligation, separately from contracts for sale of goods.
In addition, the Group previously recognized coupons it issued and points paid to other companies in its ecommerce and mail-order business as selling, general and administrative expenses, but now recognizes revenue
by deducting these items from net sales. The Group also previously deducted shipping fees paid by customers
from selling, general and administrative expenses, but now recognizes them as revenue since the shipping
service is included in the performance obligation to provide products and reports shipping fees paid for theservice as cost of sales instead of selling, general and administrative expenses as it previously did.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations is subject
to the transitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard for Revenue
Recognition. The cumulative effect of the retrospective application, assuming the new accounting policy had
been applied to periods prior to the start of the first quarter of the current fiscal year, was added to or subtracted
from the opening balance of retained earnings of the first quarter of the current fiscal year, and thus the new
accounting policy was applied from such opening balance. However, in accordance with the method provided
for in paragraph 86 of the Accounting Standard for Revenue Recognition, the new accounting policy was notapplied retrospectively to contracts for which almost all revenue amounts were recognized using the previous
treatment prior to the beginning of the first quarter of the current fiscal year.
As a result, net sales, cost of sales, and selling, general and administrative expenses for the first three months ofthe current fiscal year respectively decreased by 482 million yen, 181 million yen, and 204 million yen.
Operating income, ordinary income, and profit before income taxes also decreased by 96 million yen. The
opening balance of retained earnings increased by 64 million yen.
Due to the application of the Accounting Standard for Revenue Recognition, etc., "notes and accounts receivable– trade," which were included in "current assets" in the consolidated balance sheet for the previous fiscal year,
are included in "notes and accounts receivable – trade, and contract assets" effective from the first quarter of thecurrent fiscal year. In accordance with the transitional treatment prescribed in paragraph 89-2 of the AccountingStandard for Revenue Recognition, no reclassification has been made to the prior year’s consolidated financial
statements to conform to the new presentation method.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Group has applied the "Accounting Standard for Fair Value Measurement" (ASBJ Statement No. 30, July 4,2019) and relevant ASBJ regulations from the beginning of the first quarter of the current fiscal year, and it hasapplied the new accounting policy provided for by the Accounting Standard for Fair Value Measurement, etc.
prospectively in accordance with the transitional measures provided for in paragraph 19 of the AccountingStandard for Fair Value Measurement, and paragraph 44-2 of the “Accounting Standard for Financial
Instruments” (ASBJ Statement No. 10, July 4, 2019). The effect of this change on the quarterly consolidated
financial statements is immaterial.

-8-

(Segment information)
Segment information
I. First three months of the previous consolidated fiscal year (from January 1, 2021 to March 31, 2021)
1. Information on the amounts of net sales, and profit or loss by reportable segment(in millions of yen)
Reportable segments
Other(Note 1)

Adjustments(Note 2)

Amount stated inquarterly
consolidated
financialstatements(Note 3)

IT Consulting& ServiceBusiness

BusinessInnovation
Business

8,916

2,164

11,0803

11,083－

11,083

6

10

17

27

44

(44)

-

Total

8,922

2,175

11,09730

11,128(44)

11,083

Segment profit(loss)

1,614

100

1,714

(5)

1,709

(6)

1,702

Net sales(1) Sales to outsideclients(2) Intersegment
sales or transfer

Total

Total

(Notes) 1. “Other” is a segment for operations not included in reportable segments. The segment covers investment in, holding of, andmanagement of securities.
2. Adjustments to segment profit (loss) represent the amount of intersegment transactions eliminated, and income and expenses of theholding company excluding the technology segment.
3. Segment profit (loss) is adjusted with operating income in quarterly consolidated financial statements.

II. First three months of the current consolidated fiscal year (from January 1, 2022 to March 31, 2022)
1. Information on the amounts of net sales, and profit or loss by reportable segment(in millions of yen)
Reportable segments

Net sales(1)
Sales tooutside clients(2)
Intersegment
sales or transfer
Total

Other
(Note 1)

Adjustments(Note 2)

Amount stated inquarterly
consolidated
financialstatements(Note 3)

IT Consulting& ServiceBusiness

BusinessInnovation
Business

10,833

1,765

12,5987

12,605－

12,605

48

9

58

81

139

(139)

－

10,882

1,774

12,65688

12,745(139)

12,605

Total

Total

Segment profit
3,505
(67)
3,437
(14)
3,422
(81)
3,341
(loss)(Notes) 1. “Other” is a segment for operations not included in reportable segments. The segment covers investment in, holding of, andmanagement of securities.
2. Adjustments to segment profit (loss) represent the amount of intersegment transactions eliminated, and income and expenses of theholding company excluding the technology segment.
3. Segment profit (loss) is adjusted with operating income in quarterly consolidated financial statements.

-9-3. Supplementary Information
Orders received

Category(in millions of yen)First three months of the previous
consolidated fiscal year
(from January 1, 2021
to March 31, 2021)
Orders received

IT Consulting & Service BusinessBusiness Innovation Business
Total

Category

Business Innovation Business
Total

Orders received

Order backlog

9,445

10,045

12,50813,311

584

516

697

439

10,02910,561

13,206

13,750Fourth quarter of the previous
consolidated fiscal year
(from October 1, 2021
to December 31, 2021)
Orders received

IT Consulting & Service Business

Order backlog

First three months of the current
consolidated fiscal year
(from January 1, 2022
to March 31, 2022)

First quarter of the current
consolidated fiscal year
(from January 1, 2022
to March 31, 2022)

Order backlog

Orders received

Order backlog

7,833

11,636

12,50813,311

625

306

697

439

8,459

11,942

13,206

13,750- 10 -