❖ Company Information(as of Sep. 1, 2010)■Name of company: Funai Zaisan Consultants Co., Ltd.
■Head office:Aoyama Tower Place 3rd Floor, 8-4-14 Akasaka, Minato-ku, Tokyo 107-0052■Incorporated: September 17, 1991
■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): 101■Business network: 47 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, Hachinohe, Kagoshima, Miyazaki,
Sasebo, Shonan, Shiga, Fukui, Mie, Tottori, Kitakyusyu, Nagaoka,Shimane, Jonan, Saga
■Consolidated subsidiaries:
6 companies including Funai Estate Co., Ltd., Proggest Holdings Co., Ltd.
■Affiliates under equity method: Ukai Co., Ltd.

❖ Notes for Shareholder■Fiscal year: January 1 to December 31■Base date for the determination of shareholders

with year-end dividend entitlements: December 31■Base date for the determination of shareholders
with interim dividend entitlements: June 30■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, shareholders’address changes, repurchaserequests, and such other procedures, as a rule, are filed with the account-administrating
institutions where shareholders have their 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 made with the administrator ofshareholder registry (Mitsubishi UFJ Trust and Banking Corporation).
2. For information on procedures concerning shares recorded in special accounts, shareholders
are requested to contact The Chuo Mitsui Trust and Banking Company, Limited, the accountadministration institution for special accounts. Shareholders are reminded that procedures
cannot be processed by Mitsubishi UFJ Trust and Banking Corporation, which serves as theadministrator of the shareholder registry.
3. Dividends hitherto uncollected by shareholders are paid out by Mitsubishi UFJ Trust andBanking Corporation, Head Office Branch.

We will remain your best partner over 100 years

Funai Zaisan Consultants Co., Ltd.

❖ Executives(as of Sep. 1, 2010)

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

Funai Zaisan Consultants Co., Ltd.

Takeshi MatsuuraDirector, Network Division Manager

Yasuhiko Sato

Outside Director

Haruo Shimada

Outside Director

Kiyoshi Ohno

Outside Director

Hitoshi Komasaka

Outside Representative Auditor

Muneo Harada

Outside Auditor

Takao Kitamura

Outside Auditor

Toshio Honda

Outside Auditor

Hiroaki Rokugawa❖ Stock Overview(as of Jun. 30, 2010)

Number of shares in issue
Number of shareholders

105,705
7,198❖ Major Shareholders (Top 10)
Name
MID Plus Co., Ltd.
Funai Consulting Co., Ltd.
Masazumi Hasumi
Mutsumi Shimada
Baillie Gifford Shin Nippon plc
Hideo Murakami
Baillie Gifford Japan Trust plc
Tomio Sugimura
CACEIS Bank Ordinary Account
JP Morgan Chase Oppenheimer
JASDEC Lending AccountWe will remain your best partner over 100 years

Shares held
11,003
9,132
4,884
2,811
1,672
1,610
1,473
1,062
1,000

Shareholding ratio
10.40
8.63
4.62
2.65
1.58
1.52
1.39
1.00
0.94

1,000

0.94

Business Summary of the first halfof fiscal year 2010 (20th period)
January 1 to June 30, 2010

Newsletter for shareholders

vol. 16

We will remain your best partner over 100 years
for comprehensive individual consulting■Nationwide Network (47 bases as of September 1, 2010)

Dear Shareholders

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 Sanbe Accounting

Newsletter forshareholders Vol.16
Business summary of the first halfof fiscal Year 2010 (20th period)
January 1 to June 30, 2010

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 Shonan Support■Funai Zaisan Consultants Eguchi Management■Funai Zaisan Consultants Jonan SupportChugoku, 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 SupportContents■Funai Zaisan Consultants Co., Ltd.

Dear Shareholders

2

Business Results for the First Halfof Fiscal Year 2010 (20th Period)3

Topics4Consolidated Financial Data for
the First Half of Fiscal Year 2010(Summary)

5

Kyushu, Okinawa

Stock Information & Corporate Data Back cover■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 SupportKinki■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 HiroseTokai, Hokuriku■Funai Zaisan Consultants Co., Ltd. Kanazawa■Funai Zaisan Consultants Co., Ltd. Shizuoka■Funai Zaisan Consultants Co., Ltd. Nagoya■Funai Zaisan Consultants Co., Ltd. Fukui Chuo
■Funai Zaisan Consultants Mie Support

I would thank you all for your usual support to the Company in its business
operation.
I am pleased to present a business summary for the first half of fiscal year
2010 (20th period) of the Company from January 1 to June 30, 2010.
The Japanese economy in the period under review has shown signs ofturnaround albeit at a modest pace, driven by the external demand mainlyin Asian markets, while the peak of the financial instability appeared tohave passed. Our business environment, however, remained tough due
primarily to still stagnant employment situation as well as weak personal
consumption.
The look back at international economies suggests that the global
economy has shown gradual recovery, thanks primarily to respective
governments’ stimulus policy packages, though a part of the global
economy has not yet got rid of further downside risk.
In the real estate market which strongly affects the business of Funai Zaisan
Consultants Group, investment appetite remains solid mainly among
wealthier private investors, in limited areas of the metropolitan region,
where real estate transactions are gradually picking up.
Under such business environment, the Group as a group of asset/financial
consulting professionals, is offering the best to its clients in need ofcomprehensive asset management service through consulting on asset
succession including inheritance planning and that on financial planningincluding investment portfolio rearrangement, along with consulting on
corporate rehabilitation and M&A.
We request further support of our shareholders.

President

Masazumi Hasumi

12Business Results for the First Half of Fiscal Year 2010 (20th Period)

Review Of Operations

Strategies of Funai Zaisan Consultants GroupTopics❖ Business Results
The Japanese economy in the period under review remained

from the same period in the previous year in which real estate market

unpredictable as both employment situation and personal

was in a dysfunctional state. However, the environment surrounding

consumption remained weak, despite its being on a recovery track

real estate transactions is still stagnant as disposal of real estate held

mainly in manufacturing sectors thanks to the recovery trend infor sale is delayed until the 3rd quarter or beyond.

exports as supported by economic growth in the emerging markets.

Based on the above, first-half consolidated operating revenue

Under such economic environment, appetite for investment in the

totaled 2,017 million yen (down 10.8% year-on-year), with anreal estate market which strongly affects Funai Zaisan Consultants

operating income of 212 million yen (compared with 806 million yen

Group is solid mainly among wealthier private investors, albeit inoperating loss for the same period of the previous year), an ordinary

limited areas primarily in the metropolitan region, where real estate

income of 188 million yen (compared with 1,193 million yen ordinarytransactions are gradually revitalized.

loss for the same period of the previous year), and a net income ofThanks primarily to an increase in larger businesses from wealthier

119 million yen (compared with 1,765 million yen net loss for theclients, the Group’s asset consulting revenues significantly improved

same period of the previous year).

❖ Highlights of Consolidated Business Results (unit: million yen)First Half of Fiscal Year 2008
(18th Period)First Half of Fiscal Year 2009(19th Period)First Half of Fiscal Year 2010
(20th Period)

Forecast for Fiscal Year 2010
(20th Period)

Operating revenue

7,998

2,261

2,017

5,508

Ordinary income

840(1,193)

188

471

Net income of the current period

465(1,765)119427❖ Revenue by Segments

Revenue from asset consulting
Revenue from real estate transactions
Revenue from sublease
Other revenue
Total

First Half of Fiscal Year 2009
Amount (Million yen)
Ratio (%)
853
37.7
881
39.0
499
22.1
27
1.2
2,261
100.0

First Half of Fiscal Year 2010
Amount (Million yen)
Ratio (%)
1,200
59.5
209
10.4
583
28.9
23
1.2
2,017
100.0

We are developing a nationwide network alignedwith a strong sense of unity, to become consultingprofessionals.
We are training consulting professionals
nationwide
Under the initiative of Funai Zaisan Consultants headquarters, a training
system was launched targeting consultants under the Group network, withthe aim to develop professionals in asset and financial consulting on anationwide basis. Under these strategies, the whole Group is committed
to providing high quality comprehensive asset management service toindividual asset owners throughout the country, and addressing tocustomer needs.

Human asset out of human resources
In the times of global structural change and historic transformation,
consultants are playing vital roles in helping clients to come up withsolutions for various problems, by fully appreciating the interests of asset
owners and corporate executives under the principle of customer comes
first. We believe it is the Group’ s mission to create human asset out ofhuman resources by training consultants capable of providing practicalsolutions based on an adequate grasp of clients’ needs.

＊The above forecasts are based on the information available as of the preparation of this document, involving some uncertainty.
Actual business results might prove different from these forecasts, depending on the changes in business conditions.

34

Consolidated Financial Data for the First Half of Fiscal Year 2010 (Summary)(Million of yen, rounded down to the nearest million)

Consolidated Balance Sheet
Term
Item

Consolidated Income Statements
PreviousFirst Half of Current
Fiscal Year ended Fiscal Year ended
Dec. 31, 2009

Jun. 30, 2010

AssetsTerm
ItemPreviousFirst Half of Current
Fiscal Year ended Fiscal Year ended
Dec. 31, 2009

Jun. 30, 2010

Liabilities

3,420

Current assets

2,829

Cash and deposits

951

423

Accounts receivable

403

615

Real estate held for sale

1,604

1,502

Purchased receivables

275

249

OthersAllowance for doubtful accounts
Fixed assets
Tangible fixed assets
Intangible fixed assets
Goodwill
OthersInvestments and other assets

195

49

(8)

(11)

3,021

2,766

210

200

662

576

613

532

48442,148

1,989

1,931

1,796

Shares in affiliates

67

45

Others149

147

Total assets

6,442

5,596

Investment securities

2,946

2,539

Accounts payable

6280

Short-term debt

850

825

1,370

760

Accrued corporate taxes

25

110

Allowance for employee bonuses―

11

Other reserves

110

49

Others

528

701

2,308

1,856

1,195

795

Long-term deposits payable

264

225

Allowance for employee retirement benefits

34

Addition to reserve for compensation of retired directors
Long-term lease and security deposits

Current liabilities

Bonds redeemable within one yearFirst Half ofFirst Half ofPrevious Fiscal Year Current Fiscal Year
(Jan. – Jun. 2009)(Jan. – Jun. 2010)

Revenue

2,261

2,017

Cost of sales

1,898

1,046

362

971

SG&A

1,169

758

Operating (loss) income

(806)

212

Gross operating income

Non-operating revenue

37

12

Non-operating expenses

424

36

Ordinary (loss) income(1,193)188

39

Extraordinary income

191

38

107

115

Extraordinary loss

34

2707

681

5,255

4,395

Net (loss) income before income taxes and minority interests
before loss distribution to anonymous association(1,037)

223

Loss distribution to anonymous association

(3)

(4)

Shareholders’ equity

1,352

1,472

Common stock

1,030

1,030

Net (loss) income before income taxes and minority interests(1,033)

227

Capital surplus

1,104605

Income taxes

2727

Retained earnings

(283)

(163)

Treasury stock

(499)

―

Income taxes-correction―

81(165)(271)

Deferred income taxes

704

(0)

(165)

(271)

Total income taxes

1,187

1,200731

108

Total net assets
Total liabilities and net assets

6,442

5,596

Net (loss) income(1,765)

119

Fixed liabilities
Bonds

Total liabilities
Net assets

Evaluation and conversion difference
Unrealized gain on securities

5Term
Item

Consolidated Cash Flows
Term
Item

First Half ofFirst Half ofPrevious Fiscal Year Current Fiscal Year
(Jan. – Jun. 2009)(Jan. – Jun. 2010)

Cash flow from operating activities

(213)

459

Cash flow from investing activities

1,522

73

Cash flow from financing activities(3,162)(1,056)

Change in cash and equivalents(1,852)(523)

Cash and equivalents at start of year

3,424

947

Cash and equivalents at end of the first half of year

1,572

423

6