Summary of Business Results for the First Quarter of
FY 2007 (January 1 to December 31, 2007)(Consolidated)
Date: May 8, 2007
Company
Stock code
WebsiteContacts

Funai Zaisan Consultants Co., Ltd.
Registered on the TSE Mothers8929
http://www.funai-zc.co.jp
Yoshihito Hirabayashi
Representative Director and CEO
Hisao Nakatsuka
Managing DirectorTEL
03-5321-7020

1. Matters related to the preparation of consolidated quarterly financial data
(1) Basis of preparation of quarterly financial statements: The standards for the preparation ofInterim Financial Statements(2) Changes in accounting treatment compared to the most recent fiscal year: None(3) Changes in the scope of consolidation and application of the equity method: Yes
Consolidated subsidiaries: new, 0; excluded, 1
Affiliates accounted for under the equity method: new, 1; excluded, 0(4) Participation of an independent auditor: Yes
The quarterly financial statements were audited by our auditors in order to obtain their opinions inaccordance with the Tokyo Stock Exchange’s supplementary rules (the standards relating toexpression of opinion regarding quarterly financial statements) to the “Rules on Timely Disclosureof Corporate Information by Issuer of Listed Securities and the Like.”

2. Summary of Results for the First Quarter of FY 2007 (January 1 to December 31,2007)(1) Results of operations
Q1 2007
Q1 2006(Ref.) FY 2006

Operating revenue¥ Million%
6,751
27.4
5,297
211.2
13,756
22.4

Operating income¥ Million%
2,165
113.4
1,014
245.4
1,935
50.7

Ordinary income¥ Million%
2,004
108.3
962
315.3
1,628
46.0

Net Income

Net income Per share

Diluted net income
per share¥ Million%¥Q1 2007
1,205
115.4
22,990.94
21,474.54
Q1 2006
559339.6
21,348.86
20,815.87(Ref.) FY2006
90340.9
17,229.43
16,296.33(Note) 1. The percentages shown for net sales, operating income etc. represent changes fromthe same period in the previous fiscal year.
2. As of November 1, 2006, ordinary shares were split on a two-to-one basis.
Qualitative DataResults of operations
In the first quarter of the current fiscal year (January 1 to March 31, 2007), Japan’s economy
is heading for recovery supported by strong corporate earnings and the increasing trend ofprivate capital investment, despite evidence of weakness in private income and consumption.
In March 2007, the Ministry of Land, Infrastructure and Transport’s report on land pricetrends, based on public disclosure of land values, showed that land prices continue to fall
despite a rising trend in Japan’s three metropolitan areas and the slowing of price decline in
the regions. While average land prices have risen for each region amid the business recovery
and the movement back to the cities centered on the three metropolitan areas and core blocksof regional cities, the general trend has been for steep rises in certain areas to push up prices
for the entire region.
The office vacancy ratio in the metropolises, moreover, is showing a downward trend due tobusiness recovery accompanied by an improvement in office demand and supply. The fall in
empty office ratios in five districts of Tokyo, especially Chiyoda-ku, has been remarkable.

¥Amid this environment, the Funai group (Funai Zaisan Consultants, 10 consolidated
subsidiaries, and 4 equity affiliates) has maintained its strong performance in private andcorporate financial consulting as well as in real estate transactions.
Business development highlights for the first quarter are as follows.
Applications for Advantage Club properties at Ginza and Sugamo under the real estate jointownership scheme amounted to 240 units with an aggregate value of 2.4 billion yen. Since
applications far exceeded the supply of available properties, selling occurred in a favorable
environment, including a lottery.
• On March 31, 2007, the consolidated subsidiary Funai Zaisan Consultants Network
Systems Co., Ltd., established to build a nationwide network for the whole group, mergedwith the Funai group.
As a result of these activities, first-quarter consolidated operating revenue increased 27.4%
year-on-year to 6,751 million yen, ordinary income increased 108.3% to 2,004 million yen, andnet income increased 115.4% to 1,205 million yen.
Operating results by business segment are as follows.
(1) Asset Consulting
Activities in this segment are divided between asset consulting for high net-worth
individuals and corporate consulting for companies.
Operating results for the first quarter are as follows.
In consulting for individuals, revenue focused on consulting related to asset replacementrose 77.8% year-on-year to reach 615 million yen.
In consulting for companies, revenue fell 71.4% year-on-year to 172 million yen due toadjustment following large-scale consulting projects in the previous year.
As a result of these factors, asset consulting revenue fell 17.0% to 788 million yen.
(2) Real estate transactions
In the first quarter, Funai Zaisan sold properties in Advantage Club Ginza and Sugamo(2.4 billion yen revenue from 240 applicants) under its real estate joint ownership scheme
as well as large properties in the center of Tokyo (Jingumae in Shibuya-ku). As a result,real estate transactions rose 41.1 percent to reach 5,616 million yen.
(3) Subleasing
Fifteen subleasing orders were received, one fewer than during the first quarter of FY 2006,
resulting in a 0.4% rise in net sales to 275 million yen.
(4) Others
Income from other segments amounted to 71 million yen, a 23.1% fall year-on-year.

(2) Consolidated Financial Position
Total assets(Note: Rounded down to million yen)
Net assets

Equity capitalratio

Net assets pershare¥ Million¥ Million%Q1 200726,620
6,088
22.7
Q1 2006
16,353
4,225
25.8(Ref.) FY 2006
17,6844,829
27.0(Note) As of November 1, 2006, ordinary shares were split on a two-to-one basis.

115,074.72
161,231.80
91,096.96¥

Changes in Financial Position
Total assets at the end of the first quarter were 26,620 million yen, an 8,935 million yen rise yearon-year. This was mainly attributable to a 388 million yen rise in cash and cash deposits, a 5,053
million yen rise in real estate for sale, and a 3,384 million yen rise in purchased loans receivable.

(3) Results of Cash Flows

Q1 2007
Q1 2006(Ref.) FY2006
Cash FlowsNet cash flows
from operating
activities

Net cash flows
from investment
activities¥ million-3,0581,615
2,918¥ million-73-269-4,296

Net cash flows
from financial
activities¥ million
3,510
1,281
1,884

Balance of cash
and cashequivalents at
the end of period¥ million
4,842
6,585
4,463

Cash and cash equivalents (hereafter “funds”) at the end of the first quarter amounted to 4,842
million yen, a rise of 378 million yen year-on-year.
Operating Activities
Net cash used in operating activities amounted to 3,058 million yen, set against a cash gain of
1,615 million yen in the first quarter of FY2006. This was mainly attributable to a 2,065 million
yen rise in net income before income taxes over the previous quarter (a year-on-year rise of 115.3%)
and a 3,491 million yen rise in deposits received from sources such as silent partners, set against
outflows of 4,790 million yen for real estate for sale, a 3,384 million yen rise in purchased loans,and corporate taxes of 517 million yen.
Investing Activities
Net cash used in investing activities amounted to 73 million yen, a 72.8 percent fall year-on-year.
This was mainly attributable to the sum of 68 million yen recovered from sources such as silent
partners set against an outlay of 145 million yen for the acquisition of affiliated companies.
Financing Activities
Net cash gained from financing activities amounted to 3,510 million yen, a 173.9 percent rise yearon-year. This was mainly attributable to a net rise in loans payable of 2,995 million yen
accompanying a rise in real estate for sale, in addition to revenue from a 653 million yen net
increase in bonds and dividend payments of 78 million yen.
As a result of the above, the balance of cash and cash equivalents at the end of the first quarteramounted to 4,842 million yen, a year-on-year rise of 378 million yen.

3. Forecast of Consolidated Results in FY December 2007 (January 1 to December 31,2007)
Operating
Ordinary income
revenue¥ Million¥ Million
Interim
8,000
1,800
FY 2007
15,0002,000(Note) Projected net income per share for the year:
24,803.48 yen

Net income¥ Million
1,100
1,300

Forecasts of Results
Ordinary income in the first quarter has already exceeded the full-year forecast. This is because therevenue from real estate transactions has greatly exceeded that of the pre-term plan.
Future outlooks relating to revenue from asset consulting and subleasing are expected to be in linewith pre-term plans. As regards revenue from real-estate transactions, the stock of real estate forsale at the end of this first quarter is estimated at around 11,000 million yen, and we are making
steady progress producing properties for this fiscal year and the next (ending December 2008). We
are currently reviewing the timing for the sale of properties and the new-form plan for theAdvantage Club joint ownership real estate scheme, which is managed by Funai Zaisan.
Accordingly, at the current time the business outlook for the fiscal year ending December 2007 willremain as forecast in the settlement of accounts released on February 14, 2007.
Concerning revisions to our performance for the year ending December 2007, we will release any
data on progress in asset consulting, real estate transaction planning, and other areas as soon as it
is confirmed.

4. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheet
Previous consolidated
Previous quarter ended on
March 31, 2006

Current quarter ended on
March 31, 2007

financial year
Summary of consolidatedbalance sheet(December 31, 2006)

CategoryNote
NumberAmount (thousand)

Ratio
(%)

Amount (thousand)

Ratio
(%)

Amount (thousand)

Ratio
(%)

AssetsI Current assets
1. Cash and deposits

6,601,626

5,602,611

5,213,882

2. Accounts receivable422,479450,005

408,000

6,637,245

10,998,171

5,944,546

4. Credit bought

670,974

3,929,027

544,553

5. Other current assets

179,154

293,155

417,323△164△966△229

3. Real estates for sale*2

6. Allowance for
doubtful accounts
Total current assets

14,511,315

88.7

21,272,005

79.9

12,528,076

70.8

215,204

1.3

226,9510.9

224,705

1.3

41,3430.3

40,9070.2

44,772

0.3

4,886,909

27.6

II Fixed assets
1. Property, plant andequipment
2. Intangible fixedassets*1

3. Investments andother assets(1) Investment
securities(2) Stocks of affiliatedcompanies(3) Other assets
Total fixed assets
Total assets

1,353,151

232,883

1,586,034

9.7

1,842,582

11.3

16,353,898 100.0

1,187,587

1,053,265

3,732,913

3,675,686

159,756

5,080,257

19.0

157,957

5,348,116

20.1

5,156,387

29.2

26,620,121 100.0

17,684,464

100.0

Previous consolidated
Previous consolidated
quarter ended on March 31,2006

Current consolidated quarter
ended on March 31, 2007

financial year
Summary of consolidatedbalance sheet(December 31, 2006)

Category

Note
NumberAmount (thousand)

Ratio
(%)

Amount (thousand)

Ratio
(%)

Amount (thousand)

Ratio
(%)

(Liabilities)
I Current liabilities
1. Accounts payable
2. Short-term debt
3. Long-term debt
repayable within
one year
4. Bonds
redeemablewithin one year
5. Accrued corporatetax, etc.
6. Other current
liabilities

87,25075,314

88,867*2

3,950,000

2,587,000

2,464,000*2

1,193,000

168,000

794,000

965,000

1,140,000

940,000

450,419

948,053

522,721789,850

839,725

710,820

Total current
liabilities

7,435,520

45.5

5,758,093

21.6

5,520,409

31.2

II Fixed liabilities
1. Bonds
2. Long-term debt
3. Anonymous
association
investment
deposits payable*23,302,500

3,625,000

3,145,000

220,000

3,552,000

94,000251,819

6,507,428

3,098,434

26,99925,263.143,004

133,583

785,138

772,447

133,516

65,666

4. Allowance for
employeeretirement
benefits

27,332

5. Addition toreserve forcompensation toretired directors

124,337

6. Deposits payable

714,722

7. Other fixedliabilities
Total fixed liabilities

Total liabilities(Minority interests)
Minority interests

2,416

4,643,128
12,078,648

28.4
73.9

50,0090.3

14,773,087
20,531,180

55.5
77.1

7,334,394
12,854,803

41.5
72.7

Previous consolidated
Previous consolidated
quarter ended on March31, 2006

Current consolidated quarter
ended on March 31, 2007

financial year
Summary of consolidatedbalance sheet(December 31, 2006)

Category

Note

AmountRatio

Number(thousand)(%)

Amount (thousand)

Ratio
(%)

Amount (thousand)

Ratio
(%)

(Shareholders’ Equity)
I Capital stock

805,817

4.9II Capital surplus

875,266

5.3

III Paid-in capital

2,576,302

15.8△32,145△0.2

4,225,240

25.8

16,353,898

100.0

IV Unrealized gains onsecurities
Total shareholders’equity
Total liabilities,
minority interests andshareholders’ equity(Assets)
I Capital adequacy
1. Common stock
2. Capital surplus
3. Paid-in capital
Total capital adequacy

805,8173.0

875,266

805,817

4.6

3.3

875,266

4.9

3,995,698

15.0

2,869,314

16.2

5,676,781

21.3

4,550,398

25.7

354,5141.4

224,175

1.3

354,5141.4

224,175

1.3

57,6440.2

55,0870.3

6,088,941

22.9

4,829,661

27.3

26,620,121

100.0

17,684,464

100.0

II Evaluation andconversion
difference
1. Unrealized gains
on securities
Total evaluation andconversion difference
III Minority interests
Total assets

Total liabilities andassets

(2) Quarterly consolidated income statements
Previous consolidated financial year
Previous consolidated quarter

Current consolidated quarter

Summary of consolidated income

January 1 to March 31, 2006

January 1 to March 31, 2007

statements
January 1 to December 31, 2006

Category

Note
NumberAmount (thousand)

Percentage(%)

Amount (thousand)

Percentage(%)

Amount (thousand)

Percentage(%)

I Operating income
1. Operatingincome

1,316,689

2. Sales of realestates

3,981,107

1,134,847
100.0

5,616,203

3,887,453

73.4

3,552,396

1,410,343

5,297,796

4,247,696
6,751,050

100.0 9,508,682

13,756,379

100.0

II Operating cost
1. Operating cost

592,968

2. Cost of sales ofreal estates

3,294,484

Gross operating
profitIII SG&A*1

Operating profit

1,913,076

440,400
3,992,79759.1 7,977,325

9,890,402

71.9

26.6

2,758,252

40.9

3,865,977

28.1

395,517

7.4

593,0798.8

1,930,621

14.0

1,014,825

19.2

2,165,172

32.1

1,935,355

14.1

9,245

0.0

IV Non-operating
income1 .Interest received

74

2,546

917

175

68

4,981

2. Dividends
received
3. Othernon-operating
incomeV Non-operating
expenses

1,759

1. Interest paid

30,49530,104

116,380

2. Bond issue costs

16,28926,52933,0793. Investment loss
on equity
method

1,058

4. Othernon-operating
expenses

6,406

Ordinary income

2,008

0.0

1,714

4,330

0.1

77,891

54,251

962,5831.0

18.2

30,222

3,346

87,046

164,749

2.5

2,004,753

29.7

79,306

315,8122.3

1,628,788

11.8

VI Extraordinary
profit1. Gain fromallowance for
doubtful debts
rebate2. Profit fromequityfluctuation

1,063
1,127

0.0
616

0.0

1,744

3. Otherextraordinary
profit

5,261

0
4,198

Previous consolidated
Current consolidated

financial year

Previous consolidated quarter

quarter

Summary of consolidated

January 1 to March 31, 2006

January 1 to March 31,

income statements

2007

January 1 to December 31,
2006

Category

Note
NumberAmount (thousand)

Percentage

Amount(%)(thousand)

Percentage

Percent
Amount (thousand)

(%)

age
(%)

VII Extraordinary loss
1. Loss on disposition of fixed
assets
2. Loss from sales of stocks ofaffiliated companies
3. Appraisal loss on
investment and securities

*2438
5,158

35,021
2,880

4. Other extraordinary loss

5,158

0.1

Current quarter net income
before taxes before loss
distribution to anonymous
association

3,319

0.0

2,001,434

29.7

Loss distribution toanonymous association

129,388959,169

18.1

Current income taxes△45,340

2,065,035

10.7

△1.2

30.6

943,388442,938

Net income

1,469,639△168,126△63,601

Minority interests

1.1

△0.9

Current quarter net income
before taxes

Deferred income taxes

164,410397,597
2,104
559,468

7.5

0.0
10.6

△85,817

1,637,766

11.9

751,710857,571

12.7

2,462

0.0

7,182

0.0

1,205,001

17.9

903,028

6.6△24,154

727,555

5.3