Future Innovation : Consolidated Financial Results for the Three Months Ended March 31, 2021

Note : This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results

for the Three Months Ended March 31, 2021

[Japanese GAAP]

May 14, 2021

Company name: Future Innovation Group, Inc.

Stock exchange listing: Tokyo and Fukuoka

Code number: 4392

URL: http://www.figinc.jp/

Representative: MURAI Yuji, President and CEO

Contact: KIBE Kazuhisa, Director and Managing Executive Officer, Manager of President's Office

Phone: [phone]

Scheduled date of filing quarterly securities report: May 14, 2021

Scheduled date of commencing dividend payments: -

Availability of supplementary explanatory materials on quarterly financial results: Available

Schedule of quarterly financial results briefing session: Not scheduled

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Three Months Ended March 31, 2021 (January 1, 2021 - March 31, 2021)

(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit		Ordinary profit		Profit attributable to
					owners of parent
	Three months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
	March 31, 2021	2,993	18.8	200	-	210	-	132	-
	March 31, 2020	2,518	(6.9)	(60)	-	(37)	-	(166)	-

(Note) Comprehensive income: Three months ended March 31, 2021: ¥188 million [-%] Three months ended March 31, 2020: ¥(157) million [(-)%]

	Basic earnings	Diluted
	earnings
	per share
	per share
Three months ended	Yen	Yen
March 31, 2021	4.53	4.46
March 31, 2020	(5.80)	-

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of March 31, 2021	15,884	8,359	51.7
As of December 31, 2020	15,294	8,311	53.4

(Reference) Equity: As of March 31, 2021: ¥8,211 million As of December 31, 2020: ¥8,167 million

2. Dividends

				Annual dividends
		1st quarter-end	2nd quarter-end		3rd quarter-end	Year-end	Total
		Yen	Yen		Yen	Yen	Yen
Fiscal year ended		-	0.00		-	5.00	5.00
December 31, 2020
Fiscal year ending		-
December 31, 2021
Fiscal year ending
December 31, 2021			0.00		-	5.00	5.00
(Forecast)

(Note) Revision to the forecast for dividends announced most recently: None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2021 (January 1, 2021 - December 31, 2021)

(% indicates changes from the previous corresponding period.)

							Profit attributable	Basic earnings
	Net sales		Operating profit	Ordinary profit	to owners of
		per share
							parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	11,000	6.4	500	-	468	-	294	73.8	10.15

(Note) Revision to the financial results forecast announced most recently: None

* Notes:

1. Changes in significant subsidiaries during the period under review: None (Changes in specified subsidiaries resulting in changes in scope of consolidation):

Newly included: - (

), Excluded: - (

)

1. Accounting methods adopted particularly for the preparation of quarterly consolidated financial statements: None
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 1. Changes in accounting policies due to the revision of accounting standards: None
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None
4. Total number of issued and outstanding shares (common shares)
5. 1. Total number of issued and outstanding shares at the end of the period (including treasury shares):

March 31, 2021:	31,084,515 shares
December 31, 2020:	31,084,515 shares
2) Total number of treasury shares at the end of the period:
March 31, 2021:	1,918,270 shares
December 31, 2020:	1,918,220 shares
3) Average number of shares during the period:
Three months ended March 31, 2021:	29,166,277 shares
Three months ended March 31, 2020:	28,766,343 shares

• These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
• Explanation of the proper use of financial results forecast and other notes
  The earnings forecasts and other forward-looking statements herein are based on information currently available and certain assumptions that the Company regards as reasonable, and are not intended as a guarantee that the Company will achieve these targets. Actual results may therefore differ materially from these statements for various reasons.

(1) Quarterly Consolidated Balance Sheets

			(Million yen)
		As of December 31, 2020	As of March 31, 2021
Assets
Current assets
Cash and deposits	2,341	1,773
Notes and accounts receivable	2,200	2,699
Investments in leases	1,898	1,942
Inventories	1,840	2,239
Other	205	180
Allowance for doubtful accounts	(25)	(31)
Total current assets	8,461	8,804
Non-current assets
Property, plant and equipment
Land	1,709	1,709
Other, net		2,496	2,670
Total property, plant and equipment		4,206	4,379
Intangible assets
Goodwill	406	389
Other		446	429
Total intangible assets		852	819
Investments and other assets
Investment securities	574	675
Deferred tax assets	135	154
Long-term accounts receivable	886	886
Other	192	188
Allowance for doubtful accounts	(15)	(25)
Total investments and other assets		1,774	1,880
Total non-current assets		6,833	7,079
Total assets	15,294	15,884

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			(Million yen)
		As of December 31, 2020	As of March 31, 2021
Liabilities
Current liabilities
Notes and accounts payable	963	1,498
Short-term borrowings		1,625	1,633
Current portion of bonds payable	316	316
Current portion of long-term borrowings		811	754
Income taxes payable	223	100
Accrued consumption taxes		83	89
Provision for bonuses for directors (and other	51	215
officers)
Provision for product warranties		21	23
Other	628	543
Total current liabilities		4,725	5,174
Non-current liabilities

Bonds payable

Long-term borrowings

Provision for retirement benefits for directors (and other officers)

33		33
1,926	2,003
78		71

Retirement benefit liability	107	110
Deferred tax liabilities		89	109
Other	22	21
Total non-current liabilities		2,257	2,349
Total liabilities		6,983	7,524
Net assets
Shareholders' equity
Capital stock		2,000	2,000
Capital surplus	3,839	3,839
Retained earnings		2,739	2,725
Treasury shares	(455)	(455)
Total shareholders' equity		8,123	8,109
Accumulated other comprehensive income
Valuation difference on available-for-sale securities		45	99
Foreign currency translation adjustment	(0)	2
Total accumulated other comprehensive income		44	101
Share acquisition rights		126	131
Non-controlling interests		17	16
Total net assets		8,311	8,359
Total liabilities and net assets		15,294	15,884

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