Full-year Business Summary
for Fiscal Year 2010 (20th period)
January 1 to December 31, 2010

We will remain your best partner over 100 years

Funai Zaisan Consultants Co., Ltd.

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Management Principle

We will remain your best partner over 100 years
Core Values
1. We always put our customers happiness first.
2. We work on all things with modesty, loyalty and in good faith.
3. We value the feelings of consideration and gratitude.
Management Objectives
1. We will contribute to the society by offering optimum solutions
for the preservation of individual asset and corporate value.
2. We aim for the physical and mental wellbeing of our coworkers.
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2011/04/18

Dear Shareholders
I thank you all for your usual support to the Company in its business operation.
I would like to present a business summary for the fiscal year 2010 (20th period) of theCompany from January 1 to December 31, 2010.
Funai Zaisan Consultants Group has long enjoyed broad support from its customers inour completely new field of independent comprehensive asset consulting.
Amid the current economic upheaval, we must do several things in order to preserve as-set and increase its value: we must track the status of the asset; select and provide theappropriate information from the deluge of available data; and offer asset consulting thatis essential to prepare for the future. Property consulting also demands a neutral position.
As an industry-leading independent consulting company, the Group is committed to stable and sustained management, offering comprehensive consulting services to individual
asset owners and corporate executives by utilizing our unrivaled analytical capabilities on
our unrivaled volume of data, to achieve an unrivaled ability to deliver solutions.
We request the continued support and goodwill of our shareholders.

President and Executive OfficerMasazumi Hasumi
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Highlights of Business Results■ Business Results for Fiscal Year 2010 (20th Period)

Although the Japanese economy showed some signs of recovery

fee business by offering high-quality comprehensive consulting ser-during the term under review, the business environment remains

vices, based on our mission of contributing to the society andstagnant, as the dramatic appreciation of the yen and plummetingsupporting the preservation of individual asset and corporate value

prices have worsened the employment situation, resulting in sluggish

by offering optimum solutions, in order to offer one-stop solutions topersonal consumption.

solve a wide range of challenges faced by asset owners and corpo-

In the real estate market, which affects Funai Zaisan Consultants

rate executives nationwide, with our corporate motto We will

Group, the business climate also remains difficult. Although real es-

remain your best partner over 100 years.

tate transactions have recovered year on year in some regions,

As a result of these efforts, our revenues from asset consulting haveprimarily in the metropolitan region, the influx of new business funds

increased year on year, and in the fourth quarter, we completed thehas been limited, and financial institutions remain cautious about realdisposal of real estate held for sale.

estate investment.

Based on the above, operating revenue totaled 5,227 million yen, with

Amid these difficult conditions, Funai Zaisan Consultants Group

operating income of 200 million yen, ordinary income of 160 million(comprised of Funai Zaisan Consultants, five consolidated subsidiar-yen, and net income of 82 million yen.

ies, and one equity-method affiliate) will focus on strengthening its
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32011/04/18■ Highlights of Consolidated Business Results (unit: million yen)

Operating revenue
Ordinary income
Net income of the current period

Fiscal Year 2009 (19th Period)

Fiscal Year 2010 (20th Period)

Forecast for Fiscal Year 2011
(21th Period)

5,408

5,227
160
82

4,840
275
280

(4,245)(4,820)■ Revenue by Segments

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

Fiscal Year 2009 (19th Period)
Amount (Million yen)
Ratio (%)
1,811
33.5
2,376
44.0
1,054
19.5
164
3.0
5,408
100.0

Fiscal Year 2010 (20th Period)
Amount (Million yen)
Ratio (%)
2,379
45.5
1,659
31.7
1,142
21.9
450.9
5,227
100.0

＊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.

419:17:08

Consolidated Financial Data (Million of yen, rounded down to the nearest million)
Consolidated Balance Sheet
Term
Item

PreviousCurrent
Fiscal Year ended Fiscal Year ended
Dec. 31, 2009

Dec. 31, 2010

AssetsTerm
ItemPrevious
Current
Fiscal Year ended Fiscal Year ended
Dec. 31, 2009

Dec. 31, 2010

Liabilities

Current assets

3,420

2,047

Current liabilities

2,946

1,763

Cash and deposits

951

1,374

Fixed liabilities

2,308

1,513

Accounts receivable

403

388

Total liabilities

5,255

3,276

Real estate held for sale

1,604

0

Purchased receivables

275

238

Shareholders equity

1,352

1,434

Deferred tax assets1̶Common stock

1,030

1,030

193

83

Capital surplus

1,104605

(8)

(37)

Retained earnings

(283)

(200)

3,021

2,451

Treasury stock

(499)

̶

210

177

(165)

(212)

OthersAllowance for doubtful accounts
Fixed assets
Tangible fixed assets
Intangible fixed assets
Investments and other assets
Total assets

Net assets

Evaluation and conversion difference

662

487

(165)

(212)

2,148

1,786

Total net assets

Unrealized gain on securities

1,187

1,222

6,442

4,498

Total liabilities and net assets

6,442

4,498

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Consolidated Income Statements
TermItemConsolidated Cash Flows

Previous
Fiscal Year ended
Dec. 31, 2009

Current
Fiscal Year ended
Dec. 31, 2010

Revenue
Operating cost
Gross operating (loss) income
SG&A
Operating (loss) income
Non-operating revenue
Non-operating expenses
Ordinary (loss) income
Extraordinary income
Extraordinary loss

5,408
7,098
△1,6901,996△3,68642601△4,245
328
228

5,227
3,498
1,728
1,528
200
125216012087

Net (loss) income before income taxes and minority
interests before loss distribution to anonymous association△4,145192

Loss distribution to anonymous association
Net (loss) income before income taxes and minority interests
Total income taxes
Net income (loss)△111△4,033786△4,820△7200
11882TermItem

Previous
Fiscal Year ended
Dec. 31, 2009

Current
Fiscal Year ended
Dec. 31, 2010

Cash flow from operating activities

708

1,890

Cash flow from investing activities

2,153

282

Cash flow from financing activities△5,339△1,745

Change in cash and equivalents△2,477427

3,424

9479471,374

Cash and equivalents at start of year

Cash and equivalents at end of the year6

19:17:08

Highlights of Business Results■ Forecast for Fiscal Year 2011 (21st Period: Consolidated)

Demand for our asset consulting services is recovering compared toand changes in property rents.

the latter half of the previous term, in part because revenues per asset

We plan for other revenue of 36 million yen, based on our forecasts ofare trending downward as a result of the slumping real estate market.

brand-licensing fees from area companies and partners.

In the fiscal year ending December 2011, we expect to achieve reve-

Turning to expenditures, we expect to see the benefits from our active

nue from consulting of 2,280 million yen, by offering more specialized

revisions to our organizational structure and expenses in the previous

comprehensive asset and financial consulting services.

term. In the fiscal year ending December 2 0 1 1, our policy will be to

Although we have focused our offerings of real estate to our custom-

concentrate on limiting our fiscal investments to Advantage Club, iners on our real estate joint ownership scheme, we plan on revenue

which we acquire inventory assets with quick turnaround, such as reve-from real estate transactions of 1,504 million yen, because we expect

nue-earning properties for our customers.

the downward trend in transactions in the real estate market to contin-

Based on the above, in the fiscal year ending December 2011, we forecast

ue for some time.

consolidated operating revenue of 4,840 million yen, with consolidat-

We expect revenue from sublease of 1,020 million yen, based on oured operating income of 300 million yen, consolidated ordinary income

forecasts of termination of sublease contracts for part of properties inof 275 million yen, and consolidated net income of 280 million yen.

our real estate joint ownership scheme, a higher rate of tenant moves,
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2011/04/18■ Policies for Fiscal Year 2011 (21st Period)

As part of our efforts to improve our financial structure, complete the consolidation and reorganization of the Group,and remain a leading company in the asset consulting industry,In the next fiscal year, we will:
To turn our unrivaled volume of data (*1)
Utilize our unrivaled analytical capabilities (*2)
Into an unrivaled ability to deliver solutions (*3)(*1) The enhancements to our internal infrastructure, including our consultant support site, have enabled us to collect asset-related data acrossindustries.
(*2) The synergy from unifying our consulting for business owners and our consulting for individual asset owners has enabled us to conduct
comprehensive analysis.
(*3) We will tailor our sales to our customers needs as an independent comprehensive asset consulting company.
819:17:09

Topics
Seminars and Publications

New Asset Club: Bussola
Lead you to the future,guide you to the wealth

Asset ClubBussola

These include seminars to commemorate new publications; seminars
for ADVANTAGE CLUB members; seminars on revisions to the tax
system; our new publication, Property Owners Who Will Fail andProperty Owners Who Will Survive in the Next Three Years; and ourpamphlet, Preparing for the Coming Era of High Taxation.

We have started a members-only club to help people enrich theirfutures and lives, through workshops on three types of assets: money,
health, and family. On February 7, we held an inaugural event tocommemorate the club's founding. The event featured a guest lecture
by Mr. Ozawa, president of Ozawa-Syuzou Co., Ltd., a sake brewerywith 300 years of history, and famed for its Sawanoi brand of sake.
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2011/04/18

Consultant Support Site
Improvements to our internal infrastructure have enabled us to collect asset-related data across industries.

Messages from the company president Masazumi
Hasumi to employees
Employee Forum
A place for discussions between employees

Online Notices
FAQ[Categories]
Real estate, civil law, taxes, others[New Content][Weekly Rankings by Ratings][Weekly Rankings by Views]

Templates and Manuals
PC rescue, agreements
basic asset reports, internal applications
templates, others

Case Study Forums[Categories]
Real estate, civil lawtaxes, others[New Content][Weekly Rankings by Ratings][Weekly Rankings by Views]

Resources and Links
Plans and proposal sheets
Workshop materials (internal)
Seminar materials (for customers)
Orchestration conference materialsOthers
Useful links

10

19:17:14

Corporate Data
■ Company Information(as of Feb. 28, 2011)■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): 98■Business network: 47 locations throughout Japan (including head office)Hokkaido, Sendai, Fukushima, Tochigi, Gunma, Saitama, Keiyo,Tokyo, Yokohama, Kawasaki, Kanazawa, Nagano, Shizuoka, Nagoya,Kyoto, Osaka, Hyogo, Nara, Hiroshima, Takamatsu, Tokushima,Fukuoka, Nagasaki, Kumamoto, Okinawa, Mito, Kumagaya,Yonezawa, Wakayama, Hachinohe, Miyazaki, Shiga, Fukui, Mie,Tottori, Kitakyusyu, Nagaoka, Shimane, Jonan, Saga
■Consolidated subsidiaries:
5 companies including Funai Estate Co., Ltd., Proggest Holdings Co., Ltd.
■Affiliates under equity method: Ukai Co., Ltd.

■ Executives(as of Mar. 25, 2011)

Chairman

Hideo MurakamiPresident and Executive Officer

Masazumi Hasumi

Managing Director and Executive Officer

Hisao Nakatsuka

Outside Director

Haruo Shimada

Outside Director

Keiji Watanabe

Outside Representative Auditor

Muneo Harada

Outside Auditor

Takao Kitamura

Outside Auditor

Toshio Honda

Outside Auditor

Hiroaki Rokugawa

11■ Nationwide Network［48 bases as of February 2011］

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Chugoku, Shikoku

Hokkaido, Tohoku■Funai Zaisan Consultants Co., Ltd. Kanazawa■Funai Zaisan Consultants Co., Ltd. Shizuoka■Funai Zaisan Consultants Co., Ltd. Takamatsu■Funai Zaisan Consultants Co., Ltd. Nagoya■Funai Zaisan Consultants Tottori Support■Funai Zaisan Consultants Shimane Support■Funai Zaisan Consultants Co., Ltd. Fukui Chuo
■Funai Zaisan Consultants Mie Support

19:17:15■Funai Zaisan Consultants Co., Ltd. Sendai■Funai Zaisan Consultants Co., Ltd. Fukushima

Tokai, Hokuriku■Funai Zaisan Consultants Co., Ltd. Hiroshima■Funai Zaisan Consultants Co., Ltd. Tokushima

2011/04/18■Funai Zaidan Consultants Hokkaido Support■Funai Zaisan Consultants Tsuchida Management■Funai Zaisan Consultants Aomori Support■Funai Zaisan Consultants Sanbe Accounting

Kanto, Koushinetsu

Kyushu, Okinawa■Funai Zaisan Consultants Co., Ltd. Tochigi■Funai Zaisan Consultants Co., Ltd. Fukuoka■Funai Zaisan Consultants Co., Ltd. Gunma■Funai Zaisan Consultants Co., Ltd. Nagasaki■Funai Zaisan Consultants Co., Ltd. Kumamoto■Funai Zaisan Consultants Co., Ltd. Okinawa■Funai Zaisan Consultants Co., Ltd. Saitama■Funai Zaisan Consultants Co., Ltd. Keiyo■Funai Zaisan Consultants Co., Ltd. Tokyo Ginza■Funai Zaisan Consultants Miyazaki Support■Funai Zaisan Consultants Kitakyushu Support■Funai Zaisan Consultants Saga Support■Funai Zaisan Consultants Co., Ltd. Yokohama■Funai Zaisan Consultants Co., Ltd. Nagano■Funai Zaisan Consultants Co., Ltd. Kawasaki■Funai Zaisan Consultants Masuyama Soken■Funai Zaisan Consultants Co., Ltd.

■Funai Zaisan Consultants MMG■Funai Zaisan Consultants Eguchi Management■Funai Zaisan Consultants Jonan SupportKinki■Funai Zaisan Consultants Co., Ltd. Kyoto■Funai Zaisan Consultants Nishioka■Funai Zaisan Consultants Co., Ltd. Osaka■Funai Zaisan Consultants Shiga Support■Funai Zaisan Consultants Co., Ltd. Hyogo■Funai Zaisan Consultants Hirose■Funai Zaisan Consultants Co., Ltd. Nara

12Stock Information■ Stock Overview(as of Dec. 31, 2010)

Number of shares in issue

105,705

Number of shareholders

6,933■ Major Shareholders (Top 10)
Name■ Number of Shareholders by Category
Financial institutions:
0.06%

Overseas companies and others:
140.20%

4Securities firms:
190.27%
Other Japanesecompanies:
88
1.27%

Shares held

Shareholding ratio

MID Plus Co., Ltd.

11,003

10.40

Funai Consulting Co., Ltd.

9,132

8.63

Masazumi Hasumi

5,075

4.80

Mutsumi Shimada

3,478

3.29

Hideo Murakami

1,706

1.61

Baillie Gifford Shin Nippon plc

1,672

1.58

Baillie Gifford Japan Trust plc

1,473

1.39

5,864

JP Morgan Chase Oppenheimer
JASDEC Lending Account

1,250

1.18

Other Japanese companies:
23,23021.98%

Tomio Sugimura

1,230

1.16

Sayumi Aoyagi

1,000

0.94

Individuals / others:
6,808
98.20%■ Number of Shares by Category
Financial institutions:
600
0.57%

Securities firms:
1,524
1.44%
Overseas companies
and others:
5.54%

Individuals / others:
74,48770.47%

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2011/04/18■ 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, repurchase requests, andsuch 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 bemade with 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
to contact 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.

Shareholder Reward System
Eligible are shareholders with continuing shareholdings*
who may choose either ofUkai Co., Ltd., dinner voucher (¥20,000 value), or
Ukai Choice Beef (sukiyaki grade) (¥20,000 value)* Shareholders with continuing shareholdings are persons who as of the end ofDecember 2010 are shareholders of Funai Zaisan Consultants who have been holding
two or more shares of the Company without interruption since the end of December
2008.
* Our continuing shareholders program will end with the shipment of these products.
■Information on how to order the free loyalty gift for continuing shareholders will
be mailed in late March 2011.
■For inquiries, please contact Investor Relations at +81-3-6439-5824.

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

http://www.funai-zc.co.jp/
We will remain your best partner over 100 years

Funai Zaisan Consultants Co., Ltd.

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