Slide 1: Briefing on Financial Results for FY2018
Briefing on Financial Results for FY2018 February 8, 2019 Future Corporation Copyright ©2019 by Future Corporation
Slide 2: Contents
Contents 1. Earnings Results for FY2018 2. Topics Related to FY2018 3. Plan for FY2019 Copyright ©2019 by Future Corporation
Slide 3: 1. Earnings Results for FY2018
1. Earnings Results for FY2018 Copyright ©2019 by Future Corporation
Slide 4: Earnings Highlights
1. Earnings Results for FY2018-(i) Earnings Highlights Record-high net sales, operating income, ordinary income and profit Consolidated Net sales: 40,218 million yen (10.9% increase) earnings results Operating income: 5,824 million yen (30.6% increase) for FY2018 Ordinary income: 6,052 million yen (
Slide 5: Analysis of Earnings Results (Net Sales and Operating Income)
1. Earnings Results for FY2018- *Refer to Appendix (ii) (ii) Analysis of Earnings Results (Net Sales and Operating Income) The operating income margins of companies in IT Consulting & Service and Business Innovation Businesses have improved 10,000 (FY2017) to 14.5% Operating income margin increased
Slide 6: Analysis of Earnings Results (Orders Received and Order Backlog)
1. Earnings Results for FY2018- *Refer to Appendix (iii) (ii) Analysis of Earnings Results (Orders Received and Order Backlog) The orders received and order backlogs of companies in IT Consulting & Service Business increased, hitting record highs (Million yen) Orders Order received 36,810 36,810 bac
Slide 7: Analysis of Earnings Results (Balance Sheets)
1. Earnings Results for FY2018- *Refer to Appendix (iv) (ii) Analysis of Earnings Results (Balance Sheets) Owing to increased profit and the collection of accounts receivable due to winning a lawsuit, cash and deposits increased by 4,505 million yen Net assets increased 3,619 million yen to 28,108 m
Slide 8: Analysis of Earnings Results (Cash Flows)
1. Earnings Results for FY2018- *Refer to Appendix (v) (ii) Analysis of Earnings Results (Cash Flows) Year-end balance Operating CF (Million yen) of cash, etc. 13,984 13,908 7,952 7,965 Operating activities 9,478 Change in profit before income taxes : +1,344 Change in depreciation : -38 Change in
Slide 9: Results by Segment (IT Consulting & Service)
1. Earnings Results for FY2018- *Refer to Appendix (vi) (iii) Results by Segment (IT Consulting & Service) Net sales Operating income (Million yen) 32,953 32,953 29,739 5,656 5,651 4,777 2017 2018 2017 2018 Future Architect, Inc. • Increase in sales to customers engaging in distribution or apparel b
Slide 10: IT Consulting & Service - Sales Analysis by Industry
1. Earnings Results for FY2018- (iii) Results by Segment (IT Consulting & Service) - Sales Analysis (Million yen) Trends of sales by industry Service Distribution Financial Manufacturing 2016 4,630 5,989 4,607 3,585 (24.6%) (31.8%) (24.5%) (19.1%) 2017 4,676 6,750 6,185 5,134 (20.6%) (29.6%) (27.2%)
Slide 11: IT Consulting & Service - Sales Analysis by Phase
1. Earnings Results for FY2018- (iii) Results by Segment (IT Consulting & Service) - Sales Analysis (Million yen) Trends of sales by phase Grand design Design Development Maintenance/operation 2016 4,454 2,021 9,139 3,197 (23.7%) (10.7%) (48.6%) (17.0%) 2017 3,879 3,635 10,924 4,306 (17.1%) (16.0%)
Slide 12: Results by Segment (Business Innovation)
1. Earnings Results for FY2018- *Refer to Appendix (vi) (iv) Results by Segment (Business Innovation) Net sales Operating income (before goodwill amortization) (Million yen) 2017 2018 43 43 7,357 7,357 6,774 -119 Operating income (after goodwill amortization) 2017 2018 -146 -363 -146 2017 2018 -363
Slide 13: Analysis of Changes in Net Sales
1. Earnings Results for FY2018- (v)Analysis of Changes in Net Sales (Million yen) ＋582 ＋158 0 Adjustments Business +3,213 Other Innovation IT Consulting & Service 36,265 40,218 (+10.9%) 2017 2018 Copyright ©2019 by Future Corporation - 12 -
Slide 14: Analysis of Changes in Operating Income
1. Earnings Results for FY2018- (vi) Analysis of Changes in Operating Income (Million yen) +35 +239 +217 Other Adjustments Business Innovation +873 IT Consulting & Service 5,824 4,458 (+30.6%) 2017 2018 Copyright ©2019 by Future Corporation - 13 -
Slide 15: 2. Topics Related to FY2018
2. Topics Related to FY2018 1. Construction of Next-generation System 2. The Mainichi Newspapers Group 3. Future AI 4. New orders received from regional banks 5. Group Synergy 6. CodeCamp Inc. 7. LaiBlitz, Inc. 8. Tokyo Calendar Inc. Copyright ©2019 by Future Corporation
Slide 16: Construction of Next-generation System
2. Topics Related to FY2018- (i) Construction of Next-generation System • Constructed large-scale next-generation systems for a variety of businesses and industries • Provided support for corporate reforms using real-time architecture Banks Distirbutors/ Securities Retailers firms Next-generation sy
Slide 17: The Mainichi Newspapers Group
2. Topics Related to FY2018- (ii) The Mainichi Newspapers Group • As an IT strategy partner, Future provided support for a 145-year-old company’s largest-ever reform – Maximized the value of content using real-time architecture • Content first • Strategically distributing or sending digital and pape
Slide 18: Future AI
2. Topics Related to FY2018- (iii) Future AI • “Future AI” generating results in a short-period of time – Took the initiative in operational verification and practical realization, regardless of the type of business or industry – Designed next-generation models through collaboration between human an
Slide 19: Future AI - Cutting-edge research
2. Topics Related to FY2018- (iii) Future AI • Used “Future AI” also in the field of cutting-edge research – Joint research with Osaka University and FunPep Co., Ltd., a bio-venture company, aiming for commercialization – Social contribution also using AI, taking advantage of our experience in build
Slide 20: New Orders Received from Regional Banks
2. Topics Related to FY2018- (iv) New Orders Received from Regional Banks • Integrated business-support and lending-support systems covering sales activities and lending operations in general • Provided support for financial institutions’ reforms, taking advantage of real-time architecture – New ord
Slide 21: Group Synergy
2. Topics Related to FY2018- (v) Group Synergy • Future Architect provided total design of next-generation logistics with the efficient use of YDC’s logistics know-how • Contributed to implementing real-time operations and improving operational efficiency and productivity Strategy Technology × solut
Slide 22: CodeCamp
2. Topics Related to FY2018- (vi) CodeCamp • Amid the current situation where companies are focusing on digital strategies, CodeCamp developed and offered new courses (e.g., IT literacy enhancement and skill improvement courses) for the cultivation of personnel who can earn money • Expanded the scop
Slide 23: LaiBlitz
2. Topics Related to FY2018- (vii) LaiBlitz • Expanded services for professional baseball teams – Provided the Fukuoka SoftBank Hawks with Fastmotion, an AI tracking system – Analyze fielding and base running through the digitization of high- resolution camera images – Contributed to the SoftBank Ha
Slide 24: Tokyo Calendar
2. Topics Related to FY2018- (viii) Tokyo Calendar • The net sales of a matching service “Tokyo Calendar Date” increased 62% year-on-year – Absorbed and merged Matchalarm Inc. in April 2018 – Strengthened services using monthly magazines, websites and events • Further increase in Web users and sales
Slide 25: 3. Plan for FY2019
3. Plan for FY2019 Copyright ©2019 by Future Corporation
Slide 26: Major strategy
3-1.Major strategy Improvement in abilities to handle changes, and entrepreneurship IT Consulting & Service • Focus more on providing all consultants with AI education, and accelerate short-term performance-oriented assessment • Provide customers with leading-edge designs that use AI, regardless of
Slide 27: Numerical Plan for FY2019
3-2. Numerical Plan for FY2019 (Million yen) Annual Annual Plan for Results plan for results for YoY 1H for 1H YoY FY2019 FY2018 FY2019 FY2018 Net sales 43,500 40,218 +8.2% 20,880 19,034 +9.7% Operating income 6,400 5,824 +9.9% 2,920 2,612 +11.8% (Operating (14.7%) (14.5%) (14.0%) (13.7%) income mar
Slide 28: Dividends
3-3. Dividends Scheduled to pay an ordinary year-end dividend of 17 yen per share, an increase of 2 yen, for FY2018 Scheduled to pay an ordinary dividend of 36 yen and a commemorative dividend of 3 yen for FY2019 45 (Yen) 95.0% 40 Dividends Dividend payout ratio 39 85.0% 35 32 75.0% Interim: 18 yen
Slide 29: Appendix
Appendix. Copyright ©2019 by Future Corporation
Slide 30: Future GROUP
Appendix - (i) Future GROUP Future Architect, Inc. Future Inspace, Inc. IT Consulting YDC Corporation & Service FutureOne, Inc. Micro CAD Co., Ltd. dit Co., Ltd. Future Corporation (Holding company) eSPORTS Co., Ltd. Tokyo Calendar Inc. Business CodeCamp, Inc. Innovation LaiBlitz, Inc. TrexEdge, Inc
Slide 31: Analysis of Results (Comparison of Results)
Appendix - (ii) Analysis of Results (Comparison of Results) (Million yen) Compared with projected Year-on-year comparison results Annual Annual plan for Annual results results for Change Change FY2018 for FY2017 FY2018 Net sales 40,218 37,900 6.1% 36,265 10.9% Operating income 5,824 5,170 12.7% 4,45
Slide 32: Orders Received and Backlog by Segment
Appendix - (iii) Orders Received and Backlog by Segment (Million yen) Orders received Backlog YoY YoY 2018 2017 2018 2017 change change IT Consulting & Service 35,128 29,209 +5,918 11,898 9,621 +2,277 Business Innovation 1,682 1,188 +493 322 235 +86 Total 36,810 30,398 +6,412 12,221 9,857 +2,363 Not
Slide 33: Balance Sheets
Appendix - (iv) Balance Sheets (Million yen) End of Dec. 2018 End of Dec. 2017 Change Current assets 22,911 19,218 +3,693 Non-current assets 14,523 13,303 +1,219 Total assets 37,435 32,522 +4,912 Current liabilities 6,148 5,558 +590 Non-current liabilities 3,178 2,475 +702 Total liabilities 9,326 8,
Slide 34: Cash Flows
Appendix - (v) Cash Flows (Million yen) 2018 2017 Change Cash flows from operating activities 7,695 2,459 +5,506 Cash flows from investing activities -1,199 -3,537 +2,338 Cash flows from financing activities -2,333 -1,209 -1,123 Effect of exchange rate changes on cash and cash equivalents -2 4 -6 In
Slide 35: Results by Segment
Appendix - (vi) Results by Segment (Million yen) (Million yen) 2018 2017 YoY Net sales 40,218 36,265 +10.9% IT Consulting & Service 32,953 29,739 +10.8% Business Innovation 7,357 6,774 +8.6% Adjustments -91 -248 – Operating income 5,824 4,458 +30.6% IT Consulting & Service 5,651 4,777 +18.3% Busines
Slide 36: IR materials and contact information
The summary report of operating results, supplementary materials, briefing materials and other various IR materials are also available on the Company’s website. https://www.future.co.jp/investor_relations/ Investor Relations, Future Corporation Tel: +81-3-5740-5724 FAX: +81-3-5740-5820 E-mail: ir@fu