Slide 1: Briefing on Financial Results for FY2019
Briefing on Financial Results for FY2019 February 7, 2020 Future Corporation
Slide 2: Contents
Contents 1. Earnings Results for FY2019 2. Topics Related to FY2019 3. Plan for FY2020
Slide 3: 1. Earnings Results for FY2019
1. Earnings Results for FY2019
Slide 4: Earnings Highlights
1. Earnings Results for FY2019 (i) Earnings Highlights Record high net sales, operating income, ordinary income, Consolidated and profit earnings Net sales: 45,389 million yen (12.9% increase) Operating income: 6,523 million yen (12.0% increase） results for Ordinary income: 6,710 million yen (10.9%
Slide 5: Analysis of Earnings Results (Net Sales and Operating Income)
1. Earnings Results for FY2019 (ii) Analysis of Earnings Results (Net Sales and Operating Income) *Refer to Appendix (ii) The growth of net sales and operating income was driven by the performance of companies in the IT Consulting & Service Business. The Business Innovation Business turned around it
Slide 6: Analysis of Earnings Results (Balance Sheets)
1. Earnings Results for FY2019 (ii) Analysis of Earnings Results (Balance Sheets) *Refer to Appendix (iii) Cash and deposits increased 945 million yen thanks to profit growth. Net assets increased 2,187 million yen to 30,296 million yen (shareholders’ equity ratio of 77.6%). Major increase/decreas
Slide 7: Analysis of Earnings Results (Cash Flows)
1. Earnings Results for FY2019 (ii) Analysis of Earnings Results (Cash Flows) Cash and cash equivalents at *Refer to Appendix (iv) the end of the period Operating CF (Million yen) 7,965 14,929 Operating activities 13,908 Change in profit before income taxes :+ 295 :+ 218 5,002 Change in depreciati
Slide 8: Results by Segment (IT Consulting & Service)
1. Earnings Results for FY2019 (iii) Results by Segment (IT Consulting & Service) *Refer to Appendix (v) Net sales Operating income 37,393 7,000 50.0% (Million yen) 45.0% 6,500 6,261 40.0% 32,953 35.0% 6,000 5,651 30.0% 5,500 25.0% 20.0% 5,000 15.0% 17.1% 16.7% 10.0% 4,500 5.0% 4,000 0.0% 2018 2019
Slide 9: Results by Segment (IT Consulting & Service): Sales by Industry
1. Earnings Results for FY2019 (iii) Results by Segment (IT Consulting & Service) (Million yen) Trends of sales by industry Service Distribution Finance Manufacturing 4,676 6,750 6,185 5,134 FY2017 (20.6%) (29.6%) (27.2%) (22.6%) 3,848 6,951 6,239 8,479 FY2018 (15.1%) (27.3%) (24.4%) (33.2%) 5,625 7
Slide 10: Results by Segment (IT Consulting & Service): Sales by Phase
1. Earnings Results for FY2019 (iii) Results by Segment (IT Consulting & Service) (Million yen) Trends of sales by phase Grand design Design Development Maintenance/Operation 3,879 3,635 10,924 4,306 FY2017 (17.1%) (16.0%) (48.0%) (18.9%) 4,289 4,904 11,652 4,673 FY2018 (16.8%) (19.2%) (45.7%) (18.3
Slide 11: Backlog management (IT Consulting & Service)
1. Earnings Results for FY2019 Backlog management (IT Consulting & Service) (1) When making a large, long-term contract, we divide it into two or more parts to manage risk, and treat only the finalized portion as an order received. 200M in total Orders received: Estimate (i): Estimate (ii): 50M 50M
Slide 12: Relationship between backlogs and sales
1. Earnings Results for FY2019 Relationship between backlogs and sales IT Consulting & Service - Changes in backlogs and sales (Quarterly basis) Backlog Net sales (Million yen) (Million yen) 14,000 10,000 Backlog Net sales 9,000 13,000 8,000 12,000 7,000 11,000 6,000 10,000 5,000 4,000 9,000 3,000 8
Slide 13: Results by Segment (Business Innovation)
1. Earnings Results for FY2019 (iv) Results by Segment (Business Innovation) *Refer to Appendix (v) Net sales Operating income (Million yen) 2018 2019 8,088 26 7,357 -146 2018 2019 eSPORTS • Sales of private brand outdoor supplies (e.g., wagons) and fitness-related national brand products were stron
Slide 14: Analysis of Changes in Net Sales
1. Earnings Results for FY2019 (v) Analysis of Changes in Net Sales (Million yen) +731 0 -0 Other Adjustments Business +4,439 Innovation IT Consulting & Service 45,389 (+12.9%) 40,218 FY2018 FY2019 Copyright © 2020by Future Corporation - 13 -
Slide 15: Analysis of Changes in Operating Income
1. Earnings Results for FY2019 (vi) Analysis of Changes in Operating Income (Million yen) -3 -80 +172 Other Adjust Business ments +610 Innovation IT Consulting & Service 6,523 5,824 (+12.0%) FY2018 FY2019 Copyright © 2020by Future Corporation - 14 -
Slide 16: 2. Topics Related to FY2019
2. Topics Related to FY2019 1. Customers in Diversified Industries 2. Acquisition of Repeat Orders 3. SG Holdings Co., Ltd. 4. OK Store 5. Provision of Strategic Cloud Services 6. Companies in IT Consulting & Service Business 7. eSPORTS 8. Tokyo Calendar Inc. 9. CodeCamp 10. LaiBlitz
Slide 17: Customers in Diversified Industries
2. Topics Related to FY2019 Customers in Diversified Industries Contributed to corporate value enhancement through the use of data on real- time architecture. Newly acquired infrastructure clients such as railway and real estate companies. Insurers Banks Distributors/ Railway Retailers Securitie
Slide 18: Acquisition of Repeat Orders
2. Topics Related to FY2019 Acquisition of Repeat Orders Received orders for system reviews from previous customers for whom Future built core systems in the past. These orders amounted to 1 to 4 billion yen. 2005 2010 2015 2020 Peripheral areas Leading apparel Core system of the core maker system
Slide 19: SG Holdings - Further Strengthened Strategic Partnerships
2. Topics Related to FY2019 SG Holdings Co., Ltd. ‐ Further Strengthened Strategic Partnerships • Strove to eliminate a labor shortage, an urgent issue for the distribution industry, with the use of technology and cultivate professionals, aiming to further strengthen existing strategic partnerships.
Slide 20: SG Holdings - Smart Logistics R&D and AI Education
2. Topics Related to FY2019 SG Holdings Co., Ltd. ‐ Further Strengthened Strategic Partnerships Selected to be part of the R&D project under the Cabinet Office’s “Smart Logistics Service of the Strategic Innovation Creation Program.” Manual Eliminate labor unloading shortages Labor shortage Excess
Slide 21: OK Store - Supported the Realization of a Logistics Strategy
2. Topics Related to FY2019 OK Store - Supported the Realization of a Logistics Strategy Built a platform system for the implementation of OK Store’s logistics strategy. Self-directed logistics No excessive inventory Optimized the costs of supply chain logistics Ordinary temperature warehous
Slide 22: Provision of Strategic Cloud Services
2. Topics Related to FY2019 Provision of Strategic Cloud Services Provided cloud services incorporating business knowledge, know-how, etc. relating to technologies and specialized areas including the use of open sources. Distributors/ Media ・・・ Apparel Banks companies Retailers companies 2017-2018
Slide 23: Companies in IT Consulting & Service Business
2. Topics Related to FY2019 Companies in IT Consulting & Service Business Operating income of companies in the IT Consulting & Service Business increased steadily and is no longer dependent on one profitable company (i.e., Architect). IT Consulting & Service ‐ Composition ratio of operating income
Slide 24: eSPORTS
Started to control unit product costs. Delivery charge hike Many large- sized Net competitors The contribution margin is sales Fiercer price improving although there are many competition negative elements such as deflation and price hikes. 2014 2015 2016 2017 2018 2019 Visualized unit costs and cont
Slide 25: Tokyo Calendar Inc.
Sales of monthly magazines +21% Total sales (Number of monthly active users) 3.2 million users +12% +3% Before renewal After renewal +18% +22% Sales - Online services Tokyo Tokyo Calendar Calendar Select +103% Tokyo Calendar +78% Date The use of marketing platforms accelerated the integration of old
Slide 26: CodeCamp
Rate of increase in the volume of Number of lecture attendees orders from individuals Increased by about 3,000 attendees each in the past ¥400,000,000 30000 two years and about 5,000 in 2019. Increased about 40% year on year in the past ¥350,000,000 two years and 72% year on year in 2019. 25000 ¥300
Slide 27: LaiBlitz: Growth of sales and profit
¥600,000,000 Growth of sales and profit ¥500,000,000 Increased sales and profit steadily, achieving a ¥400,000,000 10% profit margin. ¥300,000,000 ¥200,000,000 ¥100,000,000 ¥0 2017 2018 2019 Going forward, will conduct IoT business in the primary sector and smart city IoT business, as well as sports
Slide 28: 3. Plan for FY2020
ne es FUTURE 3. Plan for FY2020
Slide 29: Changes in Sales and Operating Income, and Plan
3-1. Numerical Plan for FY2020 (i) Changes in Sales and Operating Income, and Plan 12,000 45.0% Net sales Operating income (Million yen) 40.0% 10,000 Operating income 48,300 35.0% Operating income margin 45,389 8,000 30.0% 40,218 7,200 36,265 6,523 25.0% 33,653 6,000 5,824 20.0% 4,458 4,000 3,642 15
Slide 30: Numerical Plan for FY2020
3-1. Numerical Plan for FY2020 (Million yen) Annual Results for YoY Plan for 1H Results for YoY plan for FY2019 comparison FY2020 1H FY2019 comparison FY2020 Net sales 48,300 45,389 6.4% 23,020 22,215 3.6% Operating income 7,200 6,523 10.4% 3,195 3,336 -4.2% (Operating income (14.9%) (14.4%) (13.9%)
Slide 31: Dividends
3-2. Dividends FY2019 year-end dividend: Scheduled to pay an ordinary dividend of 18 yen per share and a commemorative dividend of 3 yen per share to celebrate the company’s 30th anniversary. FY2020 dividend: Scheduled to pay an ordinary dividend of 40 yen per share (interim dividend of 20 yen/year-
Slide 32: Appendix
ne es FUTURE
Slide 33: 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. Innovation Laboratory, Inc. Future Corporation eSPORTS Co., Ltd. (Holding company) Tokyo Calendar Inc. Business CodeCamp, Inc. Innovation
Slide 34: Analysis of Results (Comparison of Results)
Appendix. - (ii) Analysis of Results (Comparison of Results) (Million yen) Compared with projected Year-on-year comparison results Results for Annual plan for Results for FY2019 Change Change FY2019 FY2018 Net sales 45,389 43,500 +4.3% 40,218 +12.9% Operating income 6,523 6,400 +1.9% 5,824 +12.0% (O
Slide 35: Balance Sheets
Appendix. - (iii) Balance Sheets (Million yen) End of Dec. 2019 End of Dec. 2018 Change Current assets 24,725 22,632 +2,092 Non-current assets 14,314 14,608 -294 Total assets 39,039 37,240 +1,798 Current liabilities 6,552 6,148 + 404 Non-current liabilities 2,190 2,983 -793 Total liabilities 8,742 9
Slide 36: Cash Flows
Appendix. - (iv) Cash Flows (Million yen) FY2019 FY2018 Change Cash flows from operating activities 5,002 7,695 -2,963 Cash flows from investing activities -1,856 -1,199 -657 Cash flows from financing activities -2,118 -2,333 + 214 Effect of exchange rate changes on cash and cash equivalents -6 -2 -
Slide 37: Results by Segment
Appendix. - (v) Results by Segment (Million yen) (Million yen) FY2019 FY2018 YoY comparison Net sales 45,389 40,218 +12.9% IT Consulting & Service 37,393 32,953 + 13.5% Business Innovation 8,088 7,357 + 9.9% Adjustments -91 -91 - Operating income 6,523 5,824 +12.0% IT Consulting & Service 6,261 5,65
Slide 38: Investor Relations contact
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: 03-5740-5724 FAX: 03-5740-5820 E-mail:ir@future.co