Consolidated Financial Results for the Second Quarter of Fiscal Year Ending December 31, 2020
[Japanese GAAP]
Listed company name
Code number
Representative

Frontier Management INC.
7038
URL https://www.frontier-mgmt.com/(Title)Representative Director(Name) Shoichiro Onishi
Director and General
Contact person(Title)Manager of Corporate(Name) Yoshiaki Takahashi
Administration Dept.
Scheduled date of
Scheduled date to file Quarterly
August 11, 2020
commencement of dividend
Securities Report
payment
Preparation of supplementary material onquarterly financial results: Yes
Quarterly results briefing: Yes(for institutional investors and analysts)

August 11, 2020
Listed Exchange: Tokyo

TEL 03-6862-8335-(Millions of yen are rounded down)
Second Quarter of the Year Ending December 31, 2020 (January 1, 2020-June 30, 2020)(1) Consolidated Operating Results (Cumulative)(Percentages indicate year-on-year changes.)
Net sales

Operating income

Profit attributable to owners ofparent company

Ordinary income

JPY mil.

%

JPY mil.

%

JPY mil.

%

JPY mil.

Second Quarter of FY2020

2,305

13.5

118

508.3

126

300.5

81

444.6

Second Quarter of FY2019

2,031

△18.6

19

△95.6

31

△93.0

15

△94.6

(NOTE)
Comprehensive
incomeSecond Quarter of
FY202082

Net profit per share

Second Quarter of FY2020

JPY
mil.

(409.2%)

Second Quarter of
FY2019

16

JPY
mil.

%

(△94.2%)

Fully diluted net profit per share

Yen

Yen

14.43

14.05

Second Quarter of FY2019
2.63
2.56
(NOTE) We conducted a 2-for-1 stock split on October 1, 2019. Calculations of "Quarterly net income per share" and "Diluted net income per share" are basedon the assumption that the stock split was implemented at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total assets

Net assets

Equity Ratio

JPY mil.

JPY mil.

%Second Quarter of FY2020

3,039

2,107

69.3

FY12/2019

3,269

Reference: Shareholders'equitySecond Quarter of FY2020

2,185
2,107

JPY
mil.

FY12/2019

66.8
2,185

JPY
mil.

2. Dividend Status
Dividend per share
End of first quarterEnd of second quarterEnd of third quarter

Term end

Total

Yen

Yen

Yen

Yen

Yen

FY12/2019

-

0.00

-

23.00

23.00

FY12/2020-

0.00

FY12/2020 (Forecast)(NOTE) Revisions to the most recently announced dividend forecasts: None
We plan to pay a dividend for the year ended December 31, 2020, but we have not yet determined the expected amount of dividend.

-Forecasts for the fiscal year ended December 31, 2020 (January 1, 2020 to December 31, 2020)(Percentages indicate year-on-year changes.)
Net sales

JPY
mil.

Operating income
%

JPY
mil.

%

Full year
5,300
11.1
800
20.6
(NOTE) Revisions to the most recently announced earnings forecasts: None

Ordinary income

Attributable to owners of
Net income per shareparent company

JPY
mil.

%

JPY
mil.

%

Yen

800

17.8

557

29.7

97.68

※ Notes(1) Changes in significant subsidiaries during this quarter (changes in specified subsidiaries accompanied by changes in the scope of
consolidation): None
(2) Adoption of special accounting methods for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies and changes or restatement of accounting estimates① Changes in accounting policies due to revisions to accounting standards, etc.: None
② Changes in accounting policies other than ①: None
③ Changes in accounting estimates: None
④ Restatement of revisions: None
(4) Number of shares of common stock outstanding① Number of shares issued at the end of the

FY12/2020

period (including treasury stock)

Second Quarter② Number of treasury stock at the end of theperiod③ Average number of shares during theperiod (quarterly consolidated
cumulative period)

FY12/2020
Second Quarter
FY12/2020
Second Quarter

5,752,160 Shares

FY12/2019

31,465

FY12/2019

Shares5,668,989 Shares

FY12/2019
Second Quarter

5,706,000 Shares

4,126

Shares5,701,962 Shares(NOTE) We conducted a 2-for-1 stock split on October 1, 2019. The number of outstanding shares at the end of the period (including treasury shares)
and the number of treasury shares at the end of the period and the average number of shares during the period (cumulative quarterly period) arecalculated as if this stock split had taken place at the beginning of the previous fiscal year.

※ Quarterly financial results are not subject to quarterly review by certified public accountants or auditing firms.
※ Explanations and other special notes concerning the appropriate use of business performance forecasts(Cautionary Statement with Respect to Forward-Looking Statements)
The earnings forecasts and other forward-looking statements herein are based on information currently available to us andcertain assumptions that we believe to be reasonable, and are not intended to guarantee the achievement of the forecasts.
Actual results may differ materially from the forecast depending on a range of factors. Please refer to "1. Qualitative Information
on Quarterly Financial Results, (3) Explanation of Consolidated Financial Forecasts and Other Forward-Looking Information" onpage 3 of the attached material for the assumptions underlying the forecasts and notes on the use of the forecasts.

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○ Accompanying Materials – Contents
1. Qualitative Information on Results for Second Quarter of Fiscal Year Ending December 31,2020 ......................................

2(1) Management's discussion ..................................................................................................................................................

2(2) Explanation of Financial Position •••.................................................................................................................................

2(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements. ............................................

3

2. Quarterly Consolidated Financial Statements..........................................................................................................................

4(1) Quarterly Consolidated Balance Sheets ............................................................................................................................

4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income. .....

6

Quarterly Consolidated Statements of Income
Second Quarter Consolidated Cumulative Period...................................................................................................

6

Quarterly Consolidated Statements of Comprehensive Income
Second Quarter Consolidated Cumulative Period…………...................................................................................

7(3) Quarterly Consolidated Statements of Cash Flow..............................................................................................................

8(4) Notes to Quarterly Consolidated Financial Statements. ....................................................................................................

9(Notes on Going Concern) ..............................................................................................................................................

9(Notes on Substantial Changes in the Amount of Shareholders' Equity) ........................................................................

9(Additional Information) .................................................................................................................................................

9(Segment Information, etc.) .............................................................................................................................................

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1. Qualitative Information on Results for Second Quarter of Fiscal Year Ending December 31, 2020
(1) Management's discussion
The outlook for the Japanese economy during the second quarter of the current fiscal year (January 1, 2,020 to June 30,2020) is extremely uncertain. While sluggish consumer spending and a decline in corporate capital spending are apparent due
to the consumption tax hike, economic activity has been stagnant due to the impact of restricted travel and voluntary restraints
resulting from the expansion of the new Corona contagious disease (COVID-19), and concerns over the second wave of
infectious diseases continue in the future.
Under such a business environment, our group continued to focus on proposals aimed at resolving corporate issues in an
integrated manner by providing comprehensive services that leverage management consulting, financial advisory, revitalization
support, and other functions.
As a result of the above, our Group's financial advisory business posted sales of JPY2,305,924 k (up 13.5% from the same
period of the previous year) in the second quarter of the current fiscal year. Although sales decreased compared with the same
period of the previous fiscal year due to the impact of the new Corona Virus Infectious Disease (COVID-19), sales were firmin the management consulting business and increased significantly in the regeneration support business. In terms of expenses,
recruitment and personnel expenses increased as a result of aggressive recruitment of personnel more than originally plannedin preparation for management consulting needs and revitalization support needs, which are expected to increase further in the
future. As a result, operating income was JPY118,887 k (up 508.3%), ordinary income was JPY126,294 k (up 300.5%), andprofit attributable to owners of parent was JPY81,809 k (up 444.6%).
Operating results by business are as follows.
<Management Consulting Business>
In the second quarter of the current fiscal year, sales of the Management Consulting Business were 1,052,598 k (up 7.0%
from the same quarter of the previous year). In the second quarter of the current fiscal year, net sales increased compared withthe same period of the previous fiscal year as a result of the expansion of the scope of services provided by the same customer
and the increasing size of projects.
<Financial Advisory Business>
The financial advisory business posted net sales of JPY718,769 k (9.0% decrease from the same quarter consolidated
accumulative period of the previous year) in the second quarter of the current fiscal year. In the consolidated cumulative
second quarter, sales decreased compared with the same period of the previous fiscal year due to factors such as the disruptionof cross-border M&A transactions between domestic companies and overseas companies and delays in advancing due toconstraints on physical movement abroad caused by the impact of the new Corona Virus Infectious Disease (COVID-19).
<Revitalization Support Program>
The business results of the Revitalization Support Business for the second quarter of the current fiscal year were net sales of
JPY500,812 k (up 146.3% from the same quarter of the previous fiscal year). In the consolidated cumulative second quarter,
net sales increased significantly compared with the same period of the previous fiscal year due to the continued strong numberof referral projects from financial institutions from the previous fiscal year and the execution of multiple large-scale projects.
<Other Business>
In the Other Business, net sales decreased 39.2% year on year to JPY33,743 k.
(2) Explanation of Financial Position<Assets>
The Group's assets at the end of the second quarter of the current fiscal year were JPY3,039,600 k (compared with
JPY3,269,111 k at the end of the previous fiscal year), a decrease of JPY229,510 k from the end of the previous fiscal year.
This was mainly due to an increase of JPY56,800 k in investment securities, a decrease of JPY102,470 k in cash anddeposits, and a decrease of JPY206,752 k in notes and accounts receivable-trade.

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<Liabilities>
The Group's balance of liabilities at the end of the second quarter of the current fiscal year was JPY932,090 k (comparedwith JPY1,083,769 k at the end of the previous fiscal year), a decrease of JPY151,679 k from the end of the previous fiscal
year.
This was mainly due to an increase of JPY250,002 k in short-term loans payable, a decrease of JPY269,263 k in accrued
bonuses to directors and corporate auditors, and a decrease of JPY141,277 k in income taxes payable.<Net assets>
The balance of net assets of the Group at the end of the second quarter of the current fiscal year was JPY2,107,510 k(compared to JPY2,185,341 k at the end of the previous fiscal year), a decrease of JPY77,830 k from the end of the previous
fiscal year.
This was mainly due to the recording of profit attributable to owners of parent of JPY81,809 k for the second quarter of thecurrent fiscal year and the disposal of treasury stock of JPY75,438 k as restricted stock compensation (a decrease of JPY54,577
k in treasury stock and an increase of JPY20,860 k in capital surplus), which increased. On the other hand, there was a decrease
in retained earnings due to dividends of JPY131,143 k and the acquisition of treasury stock of JPY111,784 k.
<Cash Flows>
Cash and cash equivalents (hereinafter referred to as "funds") at the end of the second quarter of the current fiscal year
decreased by JPY102,470 k from the end of the previous fiscal year to JPY1,630,765 k.
The status of each cash flow and its factors in the second quarter of the current fiscal year are as follows.
(Cash flows from operating activities)
Net cash used in operating activities was JPY61,647 k (net cash used of JPY519,838 k in the same quarter of the previous
fiscal year). This was mainly due to an increase of JPY126,294 k in quarterly profit before income taxes and a decrease of
JPY206,694 k in notes and accounts receivable-trade, and a decrease of JPY260,381 k in provision for bonuses and
JPY133,130 k in income taxes paid.
(Cash flows from investing activities)
Net cash used in investing activities was JPY56,803 k (net cash used of JPY97,660 k in the same quarter of the previous
fiscal year). This was mainly due to purchase of investment securities of JPY56.800 k.
(Cash flows from financing activities)
Net cash provided by financing activities was JPY15,948 k (net cash used of JPY67,631 k in the same quarter of theprevious fiscal year). This was mainly due to a net increase in short-term loans payable of JPY250,002 k and a decrease in cash
dividends paid of JPY129,193 k and purchase of treasury stock of JPY111,784 k.
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information
There is no change in the full-year consolidated earnings forecast from the consolidated earnings forecast announced on
February 13, 2020.
In the first half of the fiscal year, the impact of the new Corona Virus Infectious Disease (COVID-19) limited our ability tophysically move abroad. As a result, cross-border M&A deals between domestic companies and foreign companies weresuspended or delayed. The goal of a 200-person workforce at the end of the fiscal year was achieved ahead of schedule at theend of June, and despite a large burden of personnel and recruitment costs, we achieved a significant year-on-year increase inprofits.
In the second half of the fiscal year, we expect earnings to grow due to the growing need for the revitalization support business
we operate and the need for the management consulting business amid the prospect of an increase in the number of companies
experiencing worsening business results. In addition, we expanded our personnel structure ahead of schedule during the first halfof the fiscal year, enabling us to capture more needs. In the financial advisory business, which had not made good progress inthe first half of the fiscal year, consultations on carve-out projects (selling companies' non-core businesses and non-core
subsidiaries to other companies) are increasing recently, and we expect a certain degree of recovery in the second half of the
fiscal year.
With regard to the status of infectious diseases of the new coronaviral infectious disease (COVID-19), we assume that thecurrent status will continue at least within the fiscal year. After factoring in the impact of these conditions, we believe that ourearnings forecasts will be broadly equivalent to the consolidated earnings forecasts announced on February 13, 2020 due to theforegoing expectations. In the event that it becomes necessary to revise the earnings forecast in the future, the Company plans topromptly disclose the information.
With the relocation of the head office in the previous fiscal year, we have enhanced the IT environment and security, thereby-3-creating an environment in which operations can be fully executed in remote work. The balance between business execution andremote work in our offices is adjusted while closely monitoring the spread of the infectious diseases of the new Corona Virus(COVID-19). In any event, the impact on our business execution system is minimal even when there are restrictions on goingout.

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
Previous fiscal year
(As of Dec. 31, 2019)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Operational investment securities
OthersAllowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings, net
Tools, furniture, and fixtures, net
Total property, plant and equipment
Intangible assets
Software
OthersTotal intangible assets
Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Lease deposits
Deferred tax assets
OthersTotal investments and other assets
Total noncurrent assets
Total assets-4-(Thousands of yen)
End of current consolidated
second quarter(As of Jun. 30, 2020)

1,733,235
695,233
56,394113,966△13,651
2,585,177

1,630,765
488,480
56,017
145,377△11,4902,309,150

218,677
28,326
247,003206,878
23,866
230,745

14,640102
14,742

12,474102
12,57629,871
211,086
174,9106,318
422,187
683,933
3,269,111

56,80034,174211,074
131,048
54,031
487,128
730,450
3,039,600

Previous fiscal year
(As of Dec. 31, 2019)
Liabilities
Current liabilities
Accounts payable
Short-term borrowings
Accounts payable-other
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
OthersTotal current liabilities
Long-term liabilities
Asset retirement obligations
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Paid-in Capital
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Other accumulated comprehensive income
Foreign currency translation adjustment
Total other accumulated comprehensive income
Total net assets
Total liabilities and net assets-5-(Thousands of yen)
End of current consolidated
second quarter(As of Jun. 30, 2020)

18,631
92,783
158,336
511,547
25,098
195,120
1,001,516

36,836250,002
66,692
17,058251,165
16,216211,862
849,834

82,25382,253
1,083,769

82,25582,255932,090

158,137
808,967
1,206,655△613
2,173,146

161,599
833,290
1,157,321△57,820
2,094,391

12,194
12,1942,185,341
3,269,111

13,11913,1192,107,510
3,039,600

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income(Second Quarter Consolidated Cumulative Period)(Thousands of yen)Previous second quarter
consolidated cumulative period(Jan. 1, 2019 to Jun. 30, 2019)

Current second quarter
consolidated cumulative period(Jan. 1, 2020 to Jun. 30, 2020)

2,031,699
879,129
1,152,569
1,133,025
19,5442,305,924
933,135
1,372,788
1,253,901
118,887

26
7,007
1,158
6,603
1,306
16,103

32
4,302
968
2,161
2,644
10,108

461
2,848
801
4,110
31,536

373
2,071
256
2,701
126,294

31,536126,294655
15,85916,51515,021
15,021623
43,861
44,48581,80981,809Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Equity in earnings of affiliates
Insurance dividend income
Reversal of allowance for doubtful accounts
OthersTotal non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
OthersTotal non-operating expenses
Ordinary income
Current net income for the quarter before income taxes
and minority interests
Income taxes
Income taxes-deferred
Total income taxes
Net profit
Net profit attributable to owners of parent-6-

Quarterly Consolidated Statements of Comprehensive Income(Second Quarter Consolidated Cumulative Period)(Thousands of yen)Previous second quarter
consolidated cumulative period(Jan. 1, 2019 to Jun. 30, 2019)

Current second quarter
consolidated cumulative period(Jan. 1, 2020 to Jun. 30, 2020)

15,02181,8091,225
1,225
16,247924
924
82,734

16,247

82,734--

Net profit
Other comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Quarterly comprehensive income(Comprehensive income attributable to)
Quarterly comprehensive income attributable toowners of the parent
Quarterly comprehensive income attributable to noncontrolling interests-7-(3) Quarterly Consolidated Statements of Cash Flows(Thousands of yen)Previous second quarter
consolidated cumulative period r(Jan. 1, 2019 to Jun. 30, 2019)

Current second quarter
consolidated cumulative period(Jan. 1, 2020 to Jun. 30, 2020)

31,536126,294

9,830

19,296△7,007△4,302

Net cash provided by (used in) operating activities
Current net income for the quarter before income taxes
and minority interests
Depreciation and amortization
Share of profit (loss) of entities accounted for using
equity method (△: profit)
Increase (decrease) in accrued bonuses
Increase (decrease) in provision for directors' bonuses(△)
Increase (decrease) in allowance for doubtful accounts(△)
Interest income
Interest expenses
Decrease (△) in notes and accounts receivable-trade
Decrease (△) in operational investment securities
Increase (△) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other (△)
OthersSubtotalInterest received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flow from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Cash flow from investing activities
Cash flow from financing activities
Net increase (△) in short-term borrowings
Purchase of treasury stock
Cash dividends paid
Proceeds from exercise of stock options
Cash flow from financing activities
Effect of exchange rate change on cash and cash
equivalents
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS
Cash and cash equivalents at beginning of period
Period-end balance of cash and cash equivalents△416,708△260,381△6,603△2,161△109,158△26
461
519,842314△158,129△47,461△79,377△262,48826△467△256,908△519,838△32
373
206,694376
18,211△26,367
2,810
71,93032△480△133,130△61,647

1,248△56,800△3-△97,660△56,803△75,034△10,102△13,772

74,999△80△142,550△67,631250,002△111,784△129,193
6,924
15,948516

32△684,614△102,470

2,116,453
1,431,839-8-△8,882

1,733,235
1,630,765

(4) Notes to Quarterly Consolidated Financial Statements(Notes on the Going Concern)
Not applicable.
(Notes on Substantial Changes in the Amount of Shareholders' Equity)
Not applicable.
(Additional Information)(Accounting Estimate of the Impact of Infectious Disease of the New Corona Virus (COVID-19))
With respect to the status of infectious diseases of the new Corona Virus (COVID-19), the Company makes accounting
estimates, such as the recoverability of deferred tax assets, based on currently available information, assuming that current
conditions will continue at least within the fiscal year.
As a consequence, we are not aware of any material impact on the valuation of our accounting estimates; however, due tothe highly uncertain impact of the spread of the new Corona contagious disease (COVID-19), our financial condition andresults of operations may be impacted depending on the future.
(Segment information, etc.)[Segment Information]
Previous Second Quarter (From January 1, 2019 to June 30, 2019)
Disclosure is omitted because the business segments of the Group are a single segment.
Current Second Quarter (From January 1, 2020 to June 30, 2020)
Disclosure is omitted because the business segments of the Group are a single segment.

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