Slide 1: Materials for the Briefing on the Financial Results for FY2020
Materials for the Briefing on the Financial Results for FY2020 February 8, 2021 Future Corporation (First Section of the Tokyo Stock Exchange: 4722) Copyright © 2021 by Future Corporation
Slide 2: Today's Presenters
Today’s Presenters Yasufumi Kanemaru Yuki Shingu Yohei Saito Chairman and President Board Director Board Director, Chief Group CEO President, Technology Officer Future Architect, Inc. Copyright © 2021 by Future Corporation 2
Slide 3: Agenda
Agenda 1. Earnings for FY2020 2. Topics Related to FY2020 3. Plan for FY2021 Copyright © 2021 by Future Corporation 3
Slide 4: 1. Earnings for FY2020
1. Earnings for FY2020 Copyright © 2021 by Future Corporation 4
Slide 5: Earnings Highlights
1. Earnings for FY2020 (i) Earnings Highlights Net sales were comparable to the level for the previous year, while operating Consolidated income, ordinary income, and profit attributable to owners of parent all decreased earnings Net sales 44,311 million yen ( 2.4% decrease) Operating income 5,235 m
Slide 6: Analysis of Earnings Results (Net Sales and Operating Income)
1. Earnings for FY2020 (ii) Analysis of Earnings Results (Net Sales and Operating Income) *Refer to Appendix (ii) Declines in both net sales and operating income for the first time since FY2016 Operating income margin decreased by 2.6 percentage points year on year (Million yen) Net sales 7,000 Oper
Slide 7: Analysis of Earnings Results (Balance Sheets)
1. Earnings for FY2020 (ii) Analysis of Earnings Results (Balance Sheets) *Refer to Appendix (iii) Total assets increased from 39,039 million yen at the end of December 2019 to 49,823 million yen ○Increase/decrease in assets Balance Sheets (Million yen) Increase/decrease in assets: ＋10,784 (Major it
Slide 8: Analysis of Earnings Results (Cash Flows)
1. Earnings for FY2020 (ii) Analysis of Earnings Results (Cash Flows) *Refer to Appendix (iv) ○Breakdown of cash flows from operating activities Operating CF 4,452 (Million yen) Profit before income taxes: 5,530 Depreciation: 1,102 Increase (decrease) in inventories: 255 Decrease (increase) in notes
Slide 9: Results by Segment (IT Consulting & Service)
1. Earnings for FY2020 (iii) Results by Segment (IT Consulting & Service) *Refer to Appendix (v) Net sales Operating income (Million yen) 37,393 35,488 6,261 4,900 FY2019 2019年 FY2020 2020年 2019年 FY2019 2020年 FY2020 Future Architect, Inc. ・Net sales decreased, mainly due to curtailment of investment
Slide 10: Results by Segment: Sales Trends by Industry
1. Earnings for FY2020 (iii) Results by Segment (IT Consulting & Service) (Million yen) Sales trends by industry Service Distribution Finance Manufacturing 3,848 6,951 6,239 8,479 FY2018 (15.1%) (24.4%) (33.2%) (27.3%) 5,625 7,688 6,126 8,123 FY2019 (20.4%) (27.9%) (22.2%) (29.5%) 6,616 6,743 6,120
Slide 11: Results by Segment: Sales Trends by Phase
1. Earnings for FY2020 (iii) Results by Segment (IT Consulting & Service) (Million yen) Sales trends by phase Grand design Design Development Management/ Operation 4,289 4,904 11,652 4,673 FY2018 (16.8%) (19.2%) (45.7%) (18.3%) 4,149 4,014 14,351 5,048 FY2019 (15.1%) (14.6%) (52.0%) (18.3%) 5,365 3,
Slide 12: Results by Segment (Business Innovation)
1. Earnings for FY2020 (iii) Results by Segment (Business Innovation) *Refer to Appendix (v) Net sales Operating income (Million yen) 8,908 2019年 FY2019 2020年 FY2020 8,088 462 26 FY2019 2019年 FY2020 2020年 eSPORTS ・Net sales increased as training gear grew atop an increase in demand for indoor traini
Slide 13: Analysis of Changes in Net Sales
1. Earnings for FY2020 (iv) Analysis of Changes in Net Sales (Million yen) ＋61 Other -1,904 +820 -55 IT Consulting & Business Adjustments Service Innovation 45,389 44,311 (-2.4%) FY2019 FY2020 Copyright © 2021 by Future Corporation 13
Slide 14: Analysis of Changes in Operating Income
1. Earnings for FY2020 (v) Analysis of Changes in Operating Income (Million yen) ＋435 Business Innovation -1,360 -16 -346 IT Consulting & Service Other Adjustments 6,523 5,235 (-19.8%) FY2019 FY2020 Copyright © 2021 by Future Corporation 14
Slide 15: 2-1. Topics Related to FY2020: IT Consulting & Service
2-1. Topics Related to FY2020 IT Consulting & Service 1. High level of support from customers in many diverse industries 2. Initiatives for provision of next-generation banking systems for regional financial institutions 3. Initiatives for realizing SG Holdings Co., Ltd.’s digital strategies 4. Stra
Slide 16: High Level of Support from Customers in Many Diverse Industries
High Level of Support from Customers in Many Diverse Industries Grand design from customer promoting business reforms Strong orders for renewal of core systems from customers in various industries who are conscious of the 2025 Digital Clif Principle order trends in the second half Real estate Retail
Slide 17: Initiatives for Provision of Next-Generation Banking Systems
Initiatives for Provision of Next-Generation Banking Systems for Regional Financial Institutions Provide next-generation banking systems based on new concepts that pursue optimal systems from the ground-up to realize management strategy and operational changes at regional financial institutions and
Slide 18: Initiatives for Realizing SG Holdings' Digital Strategies
Initiatives for Realizing SG Holdings Co., Ltd.’s Digital Strategies Deepen strategic partnership. Merge IT and logistics platforms and work on solving logistics issues confronting the industry using expertise in logistics and IT (i)Address driver shortages (ii) Address rapid expansion (iii) Radical
Slide 19: Strategic Investment in Human Resource Acquisition and Training System
Strategic Investment in Human Resource Acquisition and Training System While some companies are holding back on hiring due to COVID-19, aggressively conduct recruitment activities for new graduates and mid-career hires Status of Hiring by Future and Future Architect ■Mid-career hires ■New graduate h
Slide 20: Increasing Value by Stimulating Communication
Increasing Value by Stimulating Communication Form a consulting group with high quality inputs and outputs in various forms, including knowledge, culture, IP, and technology ・Study groups ・ Explanation of DX and BPR through FUTURE ・Open Projects/Group INSIGHT SEMINAR company exchanges ・Participation
Slide 21: 2-2. Topics Related to FY2020: Business Innovation
2-2. Topics Related to FY2020 Business Innovation １．eSPORTS ２．CodeCamp ３．LaiBlitz Copyright © 2021 by Future Corporation 21
Slide 22: eSPORTS
Respond quickly to ways to enjoy leisure time in step with new lifestyles and changes in demand ～ Expanded product line-up and strengthened PR to develop in-house outdoor brands, achieving 140% growth year on year ～ Trend status • High design performance Products • Light but highly functional Outdoo
Slide 23: CodeCamp
Sales and operating income both increased sharply as the spread of COVID-19 drove increasing need for people to study at home and for corporations to provide online training. Corporate ・New customer acquisition customers ・Increase sales to existing customers Net sales CAGR: approx. Operating Four ye
Slide 24: FASTLIVE
Using data analysis technology to further accelerate the “scientific approach to sport” ～ Providing data analysis systems for handball and the FASTLIVE online spectator service ～ Operating income Score analysis Athlete data analysis 170% Analysis of inputted game scores Grasping athlete conditioning
Slide 25: 3. Plan for FY2021
3. Plan for FY2021 Copyright © 2021 by Future Corporation 25
Slide 26: Full-year Operating Forecast
3. Plan for FY2021 ①Full-year Operating Forecast (Million yen) Plan for Results for Plan for Result for YoY change YoY change FY2021 FY2020 FY2021 1H FY2020 1H Net sales 47,500 44,311 7.2% 22,000 22,135 -0.6% Operating income （operating income 7,150 5,235 36.6% 2,900 3,239 -10.5% margin) (15.1%) (11
Slide 27: Changes in Net Sales and Operating Income
3. Plan for FY2021 ②Changes in Net Sales and Operating Income (Million yen) Net sales 売上高 47,500 Operating income 12,000 45.0% 45,389 44,311 Operating income 40.0% 40,218 10,000 36,265 Operating income margin 35.0% 8,000 30.0% 7,150 6,523 25.0% 6,000 5,824 5,235 20.0% 4,458 4,000 15.0% 14.5% 14.4% 1
Slide 28: Dividends
3. Plan for FY2021 ③Dividends FY2020 year-end dividend is planned to be 20 yen. The annual dividend is planned to be 40 yen (as originally planned). For FY2021, the Company plans to pay a dividend of 42 yen per share (interim dividend 21 yen, year-end dividend 21 yen). Yen ¥45 120.0% ¥42 Dividend ¥4
Slide 29: Appendix
Appendix Copyright © 2021 by Future Corporation 29
Slide 30: Appendix-① Future GROUP
Appendix-①Future GROUP Future Architect, Inc. Future Inspace, Inc. YDC Corporation IT Consulting & Service FutureOne, Inc. Micro CAD Co., Ltd. dit Co., Ltd. Innovation Laboratory, Inc. Future Corporation (Holding company) eSPORTS Co., Ltd. Tokyo Calendar Inc. Business CodeCamp, Inc. Innovation LaBli
Slide 31: Appendix-② Analysis of Earnings Results (Comparison of Results)
Appendix-② Analysis of Earnings Results (Comparison of Results) (Million yen) Compared with projected results Year-on-year comparison Results for Plan for FY2020 Rate of change Results for FY2019 Rate of change FY2020 (revised plan) Net sales 44,311 44,000 ＋0.7% 45,389 -2.4% Operating Income 5,235 5
Slide 32: Appendix-③ Balance Sheets
Appendix-③Balance Sheets (Million yen) End of Dec. 2020 End of Dec. 2019 Change Current assets 26,436 24,725 ＋1,710 Non-current assets 22,387 14,314 +9,073 Total assets 49,823 39,039 +10,784 Current liabilities 6,476 6,552 - 75 Non-current liabilities 5,117 2,190 +2,927 Total liabilities 11,594 8,74
Slide 33: Appendix-④ Cash Flows
Appendix-④Cash Flows (Million yen) FY2020 FY2019 Change Cash flows from operating activities 4,452 5,002 -549 Cash flows from investing activities -666 -1,856 +1,189 Cash flows from financing activities -2,708 -2,118 -589 Effect of exchange rate changes on cash and cash 3 -6 + 9 equivalents Increase
Slide 34: Appendix-⑤ Results by Segment
Appendix-⑤ Results by Segment （Millions of Yen） 2020 2019 YoY change Net sales 44,311 45,389 -2.4% IT Consulting & Service 35,488 37,393 - 5.1% Business Innovation 8,908 8,088 ＋10.1% Other 61 0 － Adjustments -147 -91 － Operating income 5,235 6,523 -19.8% IT Consulting & Service 4,900 6,261 -21.7% Bu
Slide 35: Appendix-⑥-1 Recognition of Backlog (IT Consulting & Service)
Appendix-⑥-1Recognition of Backlog （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 Estimate① Estimate② 50M 50M 100M Period-end (2) Each co
Slide 36: Appendix-⑥-2 Relationship between Backlogs and Sales
Appendix-⑥-2 Relationship between Backlogs and Sales IT Consulting & Service – Changes in backlogs and sales Order backlog (Quarterly basis) Net Sales (Millions of Yen) (Millions of Yen) 14,000 10,000 Order backlog Net Sale 9,000 12,000 8,000 10,000 7,000 6,000 8,000 5,000 6,000 4,000 4,000 3,000 2,
Slide 37: Investor Relations contact and IR materials
The summary report of operating results, supplementary materials, briefing material and other various IR material 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.