About our website
Our website introduces
Funai Zaisan Consultantsʼbusiness activities andtrends, including corporate
and ﬁnancial data, for all
shareholders and investors.
Please visit our site forfurther details.

Seminar Information
The Company hosts a variety of seminars in many locationsin Japan which are presented by highly experienced,
individualistic consultants of Funai Zaisan Consultants.

Tel.+81-3-6439-5800 (main)
0120-313-271(toll free, domestic calls only)

Details are available
on the website.

Examples of recently held seminars◎Earnings enhancement management seminar

http://www.funai-zc.co.jp/◎Cash management enhancement support seminarwith utilization of the SME Finance Facilitation Act◎New inheritance planning seminar

Newsletter for shareholders Vol.15
Full-year Business Summary
for Fiscal Year 2009 (19th period)
January 1 to December 31, 2009

We will remain your best partner over 100 years
for comprehensive individual consulting

Dear Shareholders
I am pleased to present an overview of conditions during the 19th period of theCompany from January 1 to December 31, 2009.
The Japanese economy in the period under review experienced a gradually■ Nationwide Network (50 bases as of December 2009)

weakening under the effects of financial instability centered on the U.S., economic
deceleration, and surging raw materials prices, among other factors. Subsequently, the

Hokkaido, Tohoku■ Funai Zaisan Consultants Co., Ltd. Hokkaido■ Funai Zaisan Consultants Co., Ltd. Sendai■ Funai Zaisan Consultants Co., Ltd. Fukushima■ Funai Zaisan Consultants Tsuchida Management■ Funai Zaisan Consultants Aomori Support■ Funai Zaisan Consultants Asahi Accounting■ Funai Zaisan Consultants Sanbe Accounting

Chugoku, Shikoku■ Funai Zaisan Consultants Co., Ltd. Hiroshima■ Funai Zaisan Consultants Co., Ltd. Tokushima■ Funai Zaisan Consultants Co., Ltd. Takamatsu■ Funai Zaisan Consultants Tottori Support■ Funai Zaisan Consultants Shimane Support

Newsletter for
shareholders Vol.15■ Funai Zaisan Consultants Co., Ltd.

Full-year Business Summary
for Fiscal Year 2009 (19th period)
January 1 to December 31, 2009

Contents
Dear Shareholders

2

Management Principle
and Basic Guidelines

3

Business Contents

4

Business Results for
Fiscal Year 2009 (19th Period)

5Consolidated Financial Data (Summary)

7

Stock Information & Corporate Data

9

1 Funai Zaisan Consultants Co., Ltd.

default of investment bank Lehman Brothers and the ensuing escalation from financial
instability to global financial crisis caused a worldwide recession, with extremely
Kanto, Koushinetsu■ Funai Zaisan Consultants Co., Ltd. Tochigi■ Funai Zaisan Consultants Co., Ltd. Gunma■ Funai Zaisan Consultants Co., Ltd. Saitama■ Funai Zaisan Consultants Co., Ltd. Keiyo■ Funai Zaisan Consultants Co., Ltd. Johoku■ Funai Zaisan Consultants Co., Ltd. Tokyo Ginza■ Funai Zaisan Consultants Co., Ltd. Yokohama■ Funai Zaisan Consultants Co., Ltd. Kawasaki■ Funai Zaisan Consultants Co., Ltd. Nagano■ Funai Zaisan Consultants Masuyama Soken■ Funai Zaisan Consultants MMG■ Funai Zaisan Consultants Niigata Support■ Funai Zaisan Consultants Shonan Support■ Funai Zaisan Consultants Eguchi Management■ Funai Zaisan Consultants Jonan Support

Kyushu, Okinawa

Kinki

Tokai, Hokuriku■ Funai Zaisan Consultants Co., Ltd. Fukuoka■ Funai Zaisan Consultants Co., Ltd. Nagasaki■ Funai Zaisan Consultants Co., Ltd. Kumamoto■ Funai Zaisan Consultants Co., Ltd. Okinawa■ Funai Zaisan Consultants Kagoshima Support■ Funai Zaisan Consultants Sasebo Support■ Funai Zaisan Consultants Miyazaki Support■ Funai Zaisan Consultants Kitakyushu Support■ Funai Zaisan Consultants Saga Support■ Funai Zaisan Consultants Co., Ltd. Kyoto■ Funai Zaisan Consultants Co., Ltd. Osaka■ Funai Zaisan Consultants Co., Ltd. Hyogo■ Funai Zaisan Consultants Co., Ltd. Nara
■ Funai Zaisan Consultants Nishioka■ Funai Zaisan Consultants Shiga Support■ Funai Zaisan Consultants Hirose■ Funai Zaisan Consultants Co., Ltd. Kanazawa■ Funai Zaisan Consultants Co., Ltd. Shizuoka■ Funai Zaisan Consultants Co., Ltd. Nagoya■ Funai Zaisan Consultants Uesaka CPA■ Funai Zaisan Consultants Mie Support■ Funai Zaisan Consultants Kimura Keiei Brain

hostile business conditions continuing also in Japan.
The look back at international economies suggests that the global economy has since
been gradually bottoming out, thanks to efforts at financial system stabilization andeconomic stimulus implemented by governments in the major economies after thefinancial crisis. In the Japanese economy, too, rising exports and rebounding personal
consumption continue, with signs that the economy is bottoming out.
Worsening employment and deflation are continuing concerns, however, centered on
industrialized countries, and proof of a self-sustaining economic recovery has yet to

President

Masazumi Hasumi

emerge.
Amid these unprecedented difficult conditions, Funai Zaisan Consultants Groupremains committed to its mission to create solid trust and permanent relationships asa consulting partner who achieves peace of mind and security for clients by providing
solutions to their diverse problems. Furthermore, the Company works to augment its
earning power by approaching clients with sincerity and offering consulting servicesof the highest quality.
We request the continued support and goodwill of our shareholders.

Newsletter for shareholders Vol.15 2

Management Principle and Basic Guidelines

Business Contents
Comprehensive Asset Consulting for Individuals

Management
Principle

Basic Guidelines

At Funai Zaisan Consultants Group, we have made it our mission
as consulting partners to achieve peace of mind and security forclients by providing solutions for clientsʼ varied problems, and tocreate solid trust and permanent relationships.

In order to achieve the peace of mind and security that client seek, we at Funai Zaisan
Consultants Group have as consulting partners established the following new guidelines.

1 Self-respect and self-perception as professionals
In order to create civic and economic environments where clients can live securely and happily,
we act on a basis of self-respect and self-perception as professionals toward the attainment of this goal.
* To be a professional means, at all times, (i) to assume the perspective of the client; (ii) to update oneʼs knowledge; (iii) to be ready for new challenges;(iv) to work on problem solutions with loyalty and in good faith; (v) to be a person of faculty and action who inspires in clients the wish for a long-term relationship.

2 Taking responsibility for contributing to client interests
We perceived the purpose and opportunity that clients give us as a proof of their trust. We focus on our contribution
to the interests of the client and take responsibility for our conduct and the results in achieving it.

3 Mutual understanding and creation of orchestration
We endeavor to deepen mutual understanding with everyone who we work with, mutually respect the otherʼ s uniquenessand value preferences, enhance communication, and create “orchestration.”* Orchestration refers to a condition that enables top-flight performance by having people bring to bear their special characteristics

For individual asset owners we offer a range of property-related problem solutions with
inheritance planning as the cornerstone. As our main offerings, “100-year asset consulting”
advises individual asset owners on asset preservation for the long term with a planninghorizon of two to three generations forward, and to enable the retention of a substantial
estate to pass on to the next generation, “10 (Ichimaru) consulting” aims to ensure a 10 percent
yield on inheritance taxable asset.

Financial Consulting for Corporate
Our “Services for corporate rehabilitation, financial structure strengthening, and corporate realestate” aim to enhance the financial status of corporations by performing a status analysis,plan development, and providing support in the plan execution. Furthermore, our“Transaction services” associated with enhancing the financial status comprise real estateappraisal and sale, enterprise evaluation, and M&A support.
Our “Business succession and capital policy services” provide a review of company stock
evaluation, help enhance the management succession environment including with regard to
financials and shareholders, and provide support for the succession to company stock
holdings and management of the subject company while promoting business growth anddevelopment and maintaining employment.

Real Estate Solution Consulting

in a cooperative effort such as under a musical conductor and as opposed to a solo act.

4 Compliance awareness and the practice thereof
We commit to ethics of the highest standards and act on the basis of a universal sense of social goodand with a high awareness of legal adherence.

5 Continuous improvement and innovation
In the world of today, where swift changes in social environments call for novel management plans,
we continuously endeavor to enhance and innovate the services we provided to clients.
3 Funai Zaisan Consultants Co., Ltd.

Real estate solution consulting helps clients with their asset formation through the “real-estate
joint ownership program,” which comprises the selection of objects out of a flood of realestate information, conclusion of a partnership agreement under the Real Estate Specified
Joint Enterprise Law, joint ownership of yield-generating real estate, and distribution of thegenerated yields. We also offer a “consulting on yield-generating real estate in central urban
locations,” which consists of integrated support ranging from object selection to acquisitionand subsequent follow-up.

Newsletter for shareholders Vol.15 4

Business Results for Fiscal Year 2009 (19th Period)
Business Results

Earnings Estimates for the Next Fiscal Year

The Japanese economy in the term under review came underconsulting partner who achieves peace of mind and security for

For the fiscal year to December 2010, the Group expects consolidated operating revenue of 6,553 million yen, operating income ofintense pressure from financial instability caused by the U.S.

clients by providing solution to their diverse problems. Based on

696 million yen, ordinary income of 693 million yen, and net income of 645 million yen.

subprime loan problem which combined with a rapidly

theses management principles, without depending on real estate

deteriorating business climate. However, signs are emerging thatsales, the Group has worked with the focus on increasing its fee

the global economy is bottoming out, thanks to the economic

business by providing consulting services of the highest quality.

stimulus measures in each country. Also in Japan exports andAs a result, revenues from real estate transactions and from asset

production are beginning to recover. Moreover, in the real estate

consulting displayed a gradual recovery, with revenue from asset

market, which strongly affects Funai Zaisan Consultants Group, in

consulting in the 4th quarter rising above plan. However, theSeptember sales of new condominiums in the metropolitan area

rebound could not offset the slump in the first and second quarters,posted the first increase in 25 months over the number posted inleaving final results significantly below target. Moreover, due to athe same month a year earlier, indicating that the market has

valuation loss of 2,491 million yen charged in accordance with thebottomed out.

Accounting Standard for Inventory Valuation in connection with real

Amid these difficult conditions, Funai Zaisan Consultants Groupestate transactions, a substantial operating loss resulted.

(comprised of Funai Zaisan Consultants, seven consolidated

Based on the above, consolidated operating revenue totaled 5,408

subsidiaries, and two equity-method affiliates) remains committed

million yen, with an operating loss of 3,686 million yen, ordinary loss

to its mission to create solid trust and permanent relationships as aof 4,245 million yen, and net loss of 4,820 million yen.

Policies for the Next Fiscal Year
Objective forthe next fiscal year

Objective forthe next fiscal year

Objective forthe next fiscal year

Upgrade the quality and quantity of

Prov id e s er v ices of high a d d e d v alu e

Develop additional business routes

asset consulting mandates andthrough cooperation between consultantsby establishing new businesspursue ordinar y income fromand specialists such as tax attorneys,

operations.

consulting revenues.

accountants, and social insurance

１

2

3

and labor consultants.

■Highlights of Consolidated Business Results (unit: million yen)
Fiscal Year 2008 (18th Period)

Fiscal Year 2009 (19th Period)

Forecast for Fiscal Year 2010 (20th Period)

15,269

5,408

6,553

Ordinary income

947(4,245)693

Net income of the current period

47(4,820)645

Revenue

Foster imagination and energy to present
and execute propositions that positively impress clients.

■Revenue by Segments (unit: million yen)
Fiscal Year 2008 (18th Period)

Fiscal Year 2009 (19th Period)

AmountRatio (%)

AmountRatio (%)

Revenue from property consulting

3,192

20.9

1,811

33.5

Revenue from real estate transactions

10,755

70.4

2,376

44.0

Revenue from sublease

1,103

7.3

1,054

19.5

218

1.4

164

3.0

15,269

100.0

5,408

100.0

Other revenue
Total
5 Funai Zaisan Consultants Co., Ltd.

Target further growth and development as an independent comprehensive property
and finance consulting company for individual asset owners and business owners.

Newsletter for shareholders Vol.15 6

Financial Statements

Consolidated Financial Data (Summary) (Million of yen, rounded down to the nearest million)
Consolidated Income Statements

Consolidated Balance Sheet
Term
Item

Current
Previous
Fiscal Year ended Fiscal Year ended
Dec. 31, 2008

Dec. 31, 2009

AssetsCurrent assets

12,241

3,420
951

365

403

Real estate held for sale

5,984

1,604

Purchased receivables

688

275

Deferred tax assets

432

1

Others

242

193

(4)

(8)

Accounts receivable

Allowance for doubtful accounts
Fixed assets
Tangible fixed assets
Property, plant and equipment

3,500

−

Non-operating revenue

1,480

1,370

Non-operating expenses

173

25

−

110

677

528

4,220

2,308

2,565

1,195

Long-term deposits payable

688

264

Bonds redeemable within one year
Accrued corporate taxes
Other reserves
OthersFixed liabilities
Bonds

214

107

Long-term lease and security deposits

707

707

11,152

5,255

Total liabilities

5,783

1,352

662

Common stock

1,030

1,030

3,753

2,148

Capital surplus

1,104

1,104

1,066

1,931

Retained earnings

4,147

(283)

Treasury stock

(499)

(499)

Evaluation and conversion difference

166

(165)

Unrealized gain on securities

166

(165)

Total net assets

5,950

1,187

Total liabilities and net assets

17,102

6,442

2,299

67

Deferred tax assets

150

0

Others236

149

Total assets

17,102

6,442

Gross operating (loss) income
SG&A
Operating (loss) income

Ordinary (loss) income
Extraordinary income
Extraordinary loss

Loss distribution to anonymous association

(118)

(111)

Net (loss) income before income taxes
and minority interests

279(4,033)

Income taxes

717
(466)
(18)
47

81
705
−
(4,820)

Deferred income taxes
Minority interests
Net (loss) income

Term
Item

Previous
Current
Fiscal Year ended Fiscal Year ended
Dec. 31, 2008

Dec. 31, 2009

Cash flow from operating activities

2,238

708

Cash flow from investing activities(2,174)

2,153

Cash flow from financing activities(2,534)(5,339)Change in cash and equivalents(2,470)(2,477)

Cash and equivalents at start of year

5,895

3,424

Cash and equivalents at end of year

3,424

947

Consolidated Statement of Shareholdersʼ Equity

Net assets
Shareholdersʼ equity

Shares in affiliates

7 Funai Zaisan Consultants Co., Ltd.

Long-term debt repayable within one year

Addition to reserve for compensation of retired directors

849(4,145)

850

107

29

160

1,006

130

38

Net (loss) income before income taxes and minority
interests before loss distribution to anonymous association

Operating cost

Short-term debt

34

Others

5,408
7,098(1,690)1,996(3,686)42
601(4,245)
328
228

62

45

71

15,26911,399
3,869
2,084
1,785
45
883
947
357
1,144

94

Accounts payable

Allowance for employee retirement benefits

71

Dec. 31, 2009

2,946

210

Land

Dec. 31, 2008

6,931

Current liabilities

Previous
Current
Fiscal Year ended Fiscal Year ended

Term
Item

Revenue257

2

Investment securities

Dec. 31, 2009

3,021

17

Investments and other assets

Dec. 31, 2008

4,860

Vehicles and transportation equipment

Intangible fixed assets

Previous
Current
Fiscal Year ended Fiscal Year ended

Liabilities

4,532

Cash and deposits

Term
Item

Consolidated Cash Flows

Shareholdersʼ equity
Jan. 1 ‒ Dec. 31, 2009

Balance at the start of the period

Evaluation and conversion difference

Common stock Capital surplus Retained earnings Treasury stock

1,030

1,104

4,147

(499)

Total shareholdersʼ
equity5,783

Unrealized gain
on securities

166

Total evaluation andconversion difference

166

Minority
interests

Total
net assets

−

5,950

Changes during the period

(158)

(158)

(158)

Net (loss) income for the period(4,820)(4,820)(4,820)

Increase due to reduction
in equity-method affiliates
Changes during the period in items
other than shareholdersʼ equity (net)

547

547

547

Dividends from surplus

Total
Balance at the end of the period

(331)

(331)

−

(331)

−

−

(4,431)−(4,431)

(331)

(331)

−

(4,762)

1,030

1,104

(283)

(499)

1,352

(165)

(165)

−

1,187

Newsletter for shareholders Vol.15 8

Stock Information & Corporate Data
■Stock Overview(as of Dec. 31, 2009)

Number of shares in issue

110,584

Number of shareholders

8,084

Treasury stock

4,879

Number of shares excluding treasury stock

105,705■Major Shareholders (Top 10)
Name

Shares held

Shareholding ratio

MID Plus Co., Ltd.

11,003

10.41

Funai Consulting Co., Ltd.

9,132

8.64

Masazumi Hasumi

4,709

4.45

Mutsumi Shimada

2,030

1.92

Baillie Gifford Shin Nippon plc

1,672

1.58

Hideo Murakami

1,522

1.44

CACEIS Bank Ordinary Account

1,500

1.42

Baillie Gifford Japan Trust plc

1,473

1.39

Nippon Life Insurance Company

960

0.91

HSBC Bank plc ‒ Clients UK Tax Treaty

947

0.90

* Shareholding ratio is calculated net of treasury stock (4,879 shares).

■Notes for Shareholder■

Name of company: Funai Zaisan Consultants Co., Ltd.

Fiscal year: January 1 to December 31■■

Base date for the determination of shareholders
with year-end dividend entitlements: December 31

Head oﬃce:
18F, Shinjuku NS Bldg. 2-4-1, Nishishinjuku, Shinjuku-ku, Tokyo, 163-0818■

Incorporated: September 17, 1991■

Base date for the determination of shareholders
with interim dividend entitlements: June 30■

Capital stock: 1030.81 million yen■

Line of business:
Comprehensive individual asset consulting,ﬁnancial consulting for corporate, and real estate solution consulting■

Number of employees (Group): 108■

Business network: 50 locations throughout Japan (including head oﬃce)
Hokkaido, Sendai, Fukushima, Tochigi, Gunma, Saitama, Keiyo,
Johoku, Tokyo, Yokohama, Kawasaki, Kanazawa, Nagano, Shizuoka,
Nagoya, Kyoto, Osaka, Hyogo, Nara, Hiroshima, Takamatsu, Tokushima,
Fukuoka, Nagasaki, Kumamoto, Okinawa, Mito, Kumagaya, Yonezawa,
Wakayama, Niigata, Hachinohe, Kagoshima, Miyazaki, Sasebo, Shonan,
Shiga, Fukui, Mie, Tottori, Kitakyusyu, Nagaoka, Shimane, Jonan,
Yamagata, Saga■

Consolidated subsidiaries:
7 companies including Funai Estate Co., Ltd., Proggest Holdings Co., Ltd.

■Aﬃliates under equity method:
4 companies including Nippon Investors Securities Co., Ltd.,
Kawaguchiko Ukai Co., Ltd.

■

General meeting of shareholders: In late March■

Administrator of the shareholder registry:
Mitsubishi UFJ Trust and Banking Corporation
Contact:
Mitsubishi UFJ Trust and Banking Corporation, Stock Transfer Agency Department
7-10-11, Higashisuna, Koto-ku, Tokyo, 137-8081
Tel. 0120-232-711 (toll-free)■

Account administrator for special accounts:
The Chuo Mitsui Trust and Banking Company, Limited
Contact:
The Chuo Mitsui Trust and Banking Company, Limited, Stock Transfer Agency Department
2-8-4, Izumi, Suginami-ku, Tokyo, 168-8507
Tel. 0120-78-2031 (toll-free)■

Stock exchange listings: TSE Mothers■

Public announcements: Please refer to the Funai Zaisan Consultants website

For reference:
1. Due to the dematerialization of share certificates, shareholdersʼ address changes, repurchase requests, andsuch other procedures, as a rule, are filed with the account-administrating institutions where shareholders havetheir accounts (securities companies, etc.). Shareholders are requested to contact their account holding
securities company, etc., for information. Shareholders are reminded that application filings cannot be madewith the administrator of shareholder registry (Mitsubishi UFJ Trust and Banking Corporation).
2. For information on procedures concerning shares recorded in special accounts, shareholders are requested tocontact The Chuo Mitsui Trust and Banking Company, Limited, the account administration institution for special
accounts. Shareholders are reminded that procedures cannot be processed by Mitsubishi UFJ Trust and Banking
Corporation, which serves as the administrator of the shareholder registry.
3. Dividends hitherto uncollected by shareholders are paid out by Mitsubishi UFJ Trust and Banking Corporation, Head Office Branch.

■Number of Shares by Category

Securities firms:
15 0.18%

Financial institutions:
1,903 1.72%

Foreigner shareholders:
22 0.27%

Other Japanese companies:
99 1.22%

Securities firms:
1,501 1.35%

Foreigner shareholders:
7,581 6.85%

Individuals / others:
7,939 98.20%

Other Japanese companies:
23,827 21.54%

Individuals / others:
75,772 68.51%

Note: 4,879 shares held in the name of the Company are included in “Individuals / others.”
9 Funai Zaisan Consultants Co., Ltd.

(as of Dec. 31, 2009)■

Information concerning the administrator of the shareholder registry of the Company effective from March 27, 2010.

■Number of Shareholders by Category
Financial institutions:
9 0.11%■Company Information■Executives(as of Dec. 31, 2009)

Chairman

Hideo Murakami

President

Masazumi Hasumi

Managing Director

Hisao Nakatsuka

Managing Director, Individual Asset Consulting 1st Division Manager

Takahiko Makino

Director, Individual Asset Consulting 3rd Division Manager

Tetsuo Akiyama

Director, Corporate Financial Consulting Division Manager

Seiki Noda

Director, Individual Asset Consulting 2nd Division Manager

Masayuki Yagi

Director, Real Estate Division Manager

Ken Matsuura

Director, Network Division Manager

Yasuhiko Sato

Outside Director

Haruo Shimada

Outside Director

Kiyoshi Ohno

Outside Director

Hitoshi Komasaka

Outside Representative Auditor

Takao Kitamura

Outside Auditor

Toshio Honda

Outside Auditor

Hiroaki Rokugawa

Shareholder Reward System
Eligible are shareholders with continuing shareholdings*
who may choose either of

A Ukai Co., Ltd., dinner voucher (¥20,000 value), or
B Ukai Choice Beef (sukiyaki grade) (¥20,000 value)* Shareholders with continuing shareholdings:
Shareholders with continuing shareholdings are persons who as ofthe end of December 2009 are shareholders of Funai Zaisan Consultants
who have been holding two or more shares of the Company without interruption
since the end of December 2007.
・ Information on how to order the free loyalty gift for continuing shareholders

will be mailed in late March 2010.

Newsletter for shareholders Vol.15 10