Consolidated Financial Results for the 1Q of the Fiscal Year Ending December 2022
[Japanese GAAP]May 13, 2022
Listed company name Frontier Management Inc.
Listed Tokyo Stock Exchange
Code number
7038
URL https://www.frontier-mgmt.com/
Representative(Title) Representative Director(Name) Shoichiro Onishi
Executive Officer, Head ofContact person(Title) Company Planning and(Name) Hiroaki Hamada
TEL 03-6862-8335
Administration Department
Scheduled date of
Scheduled date to file Quarterly
May 13, 2022
commencement of dividend Securities Report
payment
Preparation of supplementary material onquarterly financial results: Yes
Quarterly results briefing: Yes(for institutional investors and analysts)(Millions of yen are rounded down)
1.Quarterly consolidated results for FY2022 1Q (January 1, 2022-March 31, 2022)(1)Consolidated Operating Results (Cumulative)
Net sales
JPY Mil.

FY2022 1Q
FY2021 1Q(NOTE)
Comprehensive income

2,224
1,329
FY2022 1Q

Operating income
%
67.4
9.4
241

Net income per share

JPY Mil.

408
93
JPY Mil.

(259.6%)

Ordinary income
%
318.8
△34.0

JPY Mil.

416
99
FY2021 1Q

67

Net income attributableto owners of parent
JPY Mil.
%
236
246.1
68 △31.9

JPY Mil.

(△33.8%)Fully diluted net income per share

JPY
20.77
5.96

FY2022 1Q
FY2021 1Q

%
335.8
△30.7

(Percentages indicate year-on-year changes.)

JPY
20.46
5.87

(2)Consolidated Financial Position
Total assets
FY2022 1Q
End of FY2021
Reference:
Shareholders' equity

FY2022 1Q

Net assets

Equity ratio

JPY Mil.

JPY Mil.

4,876
3,819

2,692
2,454

2,542 JPY Mil.

End of FY2021

%
52.1
63.0
2,407 JPY Mil.

2.Dividend Status
Dividend per share

FY2021
FY2022
FY12/2022 (forecast)End of First Quarter End of second quarter End of the third quarter
Yen
Yen
Yen
0.00
0.00
-

Term end
Yen
10.00
-

(NOTE)Revisions to the most recently announced dividend forecasts: None
We plan to pay a dividend for the year ended December 31, 2022, but we have not yet decided on the expected amount of dividends.

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Total
Yen
10.00
-

3.Forecasts for FY2022 (January 1, 2022 to December 31, 2022)(Percentages indicate year-on-year changes.)
Net sales
JPY Mil.

Full year

7,000

%
21.9

Operating income
JPY Mil.

800

%
59.6

Ordinary income
JPY Mil.

800

%
55.5

Net income attributable to
Net income per shareowners of parent
JPY Mil.

500

%
47.6

JPY
43.88

(NOTE)Revisions to the most recently announced earnings forecasts: None
※ Due to the large fluctuations in performance during the fiscal year depending on the timing of sales of incentive fees in the Financial Advisory Business, ourgroup has made it difficult to calculate the consolidated performance forecast figures for the second quarter (cumulative) and manages the performance forthe year. Therefore, we only announce the results forecast for the full fiscal year.

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※ Notes(1)Changes in significant subsidiaries during the quarter under review (changes in specified subsidiaries accompanied by changes inthe scope of consolidation): Yes
Newly consolidated: 1 company (company name) Celebration Corporation(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.: Yes② 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 theperiod (including treasury stock)

FY2022 1Q

11,428,378 Shares

FY2021

11,418,398 Shares② Number of treasury stock at the end of theperiodFY2022 1Q

25,819 Shares

FY202125,819 Shares③ Average number of shares during the period(quarterly consolidated cumulative period)

FY2022 1Q

11,395,620 Shares

FY2021 1Q

11,469,799 Shares※ 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" on page 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.Overview of Quarterly Financial Results ..................................................................................................................................

2(1) Operating Results ................................................................................................................................................................

2(2) Financial Position ...............................................................................................................................................................

2(3) Future Outlook ..................................................................................................................................................................

3

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

4(1) Balance Sheets ....................................................................................................................................................................

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

6

Statements of Income
1Q Cumulative Period...............................................................................................................................................

6

Statements of Comprehensive Income
1Q Cumulative Period .............................................................................................................................................

7(3) Notes to Quarter Consolidated Financial Statements. 1Q Cumulative Period ...................................................................

8(Going Concern) ..............................................................................................................................................................

8(Significant Changes in Shareholders' Equity) ................................................................................................................

8

Changes in Accounting Policies. .......................................................................................................................................

8(Additional Information) ..................................................................................................................................................

8

Segment Information. ......................................................................................................................................................

8(Significant Subsequent Events) ......................................................................................................................................

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1.Overview of Quarterly Financial Results(1)Operating Results
During the 1Q of the current fiscal year (from January 1, 2022 to March 31, 2022), Japanese economy remained in a severe
situation due to the impact of the spread of the infectious diseases of the new Corona Virus (Omicron strain). The outlook is
uncertain, as the spread of infectious diseases is expected to converge due to the application of priority measures such as
prevention of epidemics and promotion of vaccination, and economic activities are expected to normalize. In this situation, thedownside risk of the economy is expanding due to the beginning of Russia's invasion of Ukraine and the implementation of
economic sanctions by each country against Russia.
Under such a company environment, our group continued to focus on proposals and execution to resolve corporate issues on
a one-stop basis by providing comprehensive services utilizing management consulting, financial advisory, revitalization
support, and other functions.
As a result of the above, our Group's financial results for the first quarter of the fiscal year under review were favorable in
the Management Consulting Business and the Financial Advisory Business, and net sales were JPY2,224,878K (up 67.4% fromthe same quarter of the previous fiscal year). In terms of profits, operating income was JPY408,404K (up 335.8%), ordinary
income was JPY416,064K (up 318.8%), and profit attributable to owners of parent was JPY236,713K (up 246.1%).
Operating results by business are as follows.
< Management Consulting Business >The business results of the Management Consulting Business for the first quarter of the current fiscal year were net sales of
JPY1,136,693K (up 80.3%). In the first quarter of the current fiscal year, in addition to the effects of increased personnel
through active recruitment, the enhancement and expansion of consulting services, including those related to SR/IR, DX, andpersonnel affairs, contributed to a significant increase in sales compared with the same quarter of the previous fiscal year.
< Financial Advisory Business >The financial advisory business posted net sales of JPY958,450K for the first quarter of the current fiscal year (up 103.2%).
In the first quarter of the fiscal year under review, several large-scale projects were completed, resulting in a significant
increase in sales compared with the same quarter of the previous fiscal year.
< Revitalization Support Business >The business results of the Revitalization Support Business for the first quarter of the current fiscal year were net sales of
JPY88,682K (down 58.1%). Due to the continuation of emergency loans to companies by financial institutions, the need forrevitalization support continued to not expand, and net sales decreased compared with the same quarter of the previous year.
< Other Business >For the first quarter of the fiscal year under review, the other business recorded sales of JPY41,052K (up 173.9%).
(2)Financial Position<Assets>
The Group's assets at the end of the first quarter of the current fiscal year were JPY4,876,198K (compared with
JPY3,819,274K at the end of the previous fiscal year), an increase of JPY1,056,923K from the end of the previous fiscal year.
This was mainly due to an increase of JPY682,521K in cash and deposits and JPY297,432K in goodwill.
<Liabilities>
The Group's balance of liabilities at the end of the first quarter of the current fiscal year was JPY2,183,541K (compared with
JPY1,365,207K at the end of the previous fiscal year), an increase of JPY818,333K from the end of the previous fiscal year.
This was mainly due to an increase of JPY500,000K in short-term loans payable, JPY357,557K in long-term loans payable,
JPY98,738k in provision for directors' bonuses, and JPY283,567K in other current liabilities due to an increase in deposits
received and accrued consumption taxes, and a decrease of JPY283,582K in provision for bonuses and JPY174,490K inincome taxes payable.

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<Net assets>
The Group's net assets at the end of the first quarter of the current fiscal year were JPY2,692,656K (compared with
JPY2,454,066K at the end of the previous fiscal year), an increase of JPY238,589K from the end of the previous fiscal year.
This was mainly due to the recording of profit attributable to owners of parent of JPY236,713K, the recording of stock
subscription rights of JPY48,739K, and the recording of non-controlling interests of JPY42,064K in the first quarter of thecurrent fiscal year, which increased, but decreased due to the payment of dividends of JPY113,925K from retained earnings.
(3)Future Outlook
There is no change in the full-year consolidated earnings forecast from the consolidated earnings forecast announced on
February 10, 2022.

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2.Quarterly Consolidated Financial Statements(1)Balance Sheets(Thousands of yen)
The previous fiscal year
(As of December 31, 2021)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Notes, accounts receivable and contract assets
Operational investment securities
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible assets
Buildings, net
Tools, furniture and fixtures, net
Net property, plant and equipment
Intangible fixed assets
Software
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Investments in affiliates
Lease deposits
Deferred tax assets
Other
Total investments and other assets
Total fixed assets
Total assets-7-

The 1Q of current fiscal year (Asof March 31, 2022)

1,784,218
1,073,376
9,837
147,710△16,9362,998,206

2,466,740
1,227,370
23,256
170,937△26,536
3,861,768

193,854
14,473208,328

186,846
13,359200,205

11,267102
11,36910,212
297,432102
307,747

56,80043,633
212,055
277,356
11,524
601,370821,068
3,819,274

57,09645,459214,901
183,383
5,636
506,476
1,014,430
4,876,198

(Thousands of yen)
The previous fiscal year
(As of December 31, 2021)
Liabilities
Current liabilities
Accounts payable
Short-term borrowings
Current portion of long-term debt
Accounts payable
Income taxes payable
Accrued bonuses
Provision for directors' bonuses
Provision for shareholder benefit program
Other
Total current liabilities
Fixed liabilities
Long-term debt
Asset retirement obligations
Total long-term liability
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 adjustments
Total accumulated other comprehensive income
Stock subscription rights
Stock acquisition rightNon-controlling shareholders' equity
Total net assets
Total liabilities and net assets-8-

The 1Q of current fiscal year
(As of March 31, 2022)

45,424
94,699259,633
553,014
7,079
323,095
1,282,944

58,668500,000
40,292
118,726
85,142
269,431
98,738
4,175
606,662
1,781,836

82,26282,262
1,365,207

317,265
84,440401,7052,183,541

178,723558,745
1,696,822△36,575
2,397,717

180,600
569,687
1,819,610△36,575
2,533,323

9,380
9,380
46,9692,454,066
3,819,274

9,216
9,216
48,73959,312
42,064
2,692,656
4,876,198

(2)Statements of Income and Comprehensive Income(Statements of Income)(1Q Cumulative Period)(Thousands of yen)
1Q of previous fiscal year
(1 January 2021
to March 31, 2021)
Net sales
Cost of sales
Gross income
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
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expense
Charges for stock compensation
Other
Total 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
Diluted net income
Quarterly net income attributable to non-controllingshareholders
Quarterly income attributable to owners of parent-9-

1Q of current fiscal year
(January 1, 2022
to March 31, 2022)

1,329,051
492,256
836,795
743,087
93,7072,224,878
797,962
1,426,916
1,018,511
408,404

31
2,087
1,125
565
3,382
661
7,854

40
1,825
1,802
3,935
809
8,413

6
1,963
256
2,226
99,335695
58753
416,064

99,335416,064

393
30,54830,942
68,392

69,339105,446
174,786
241,277-

4,564

68,392

236,713

(Statements of Comprehensive Income)(1Q Cumulative Period)(Thousands of yen)
1Q of previous fiscal year
(1 January 2021
to March 31, 2021)
Net income
Other comprehensive income
Foreign currency translation adjustments
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 shareholders- 10 -

1Q of current fiscal year
(January 1, 2022
to March 31, 2022)

68,392

241,277△1,340△1,34067,052△163△163
241,11467,052

236,549-

4,564

(3)Notes to Quarter Consolidated Financial Statements(Going Concern)
Not applicable.
(Significant Changes in Shareholders' Equity)
Not applicable.
(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition)
The Company adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020,
hereinafter referred to as the "Accounting Standard for Revenue Recognition") from the beginning of the first quarter of thecurrent fiscal year and recognized revenue when control of promised goods or services is transferred to customers in an
amount that is expected to be received in exchange for those goods or services.
With regard to the application of the revenue recognition accounting standards, etc., in accordance with the transitional
treatment stipulated in the provisions of Article 84 of the Revenue Recognition Accounting Standard, the cumulative effectof retrospectively applying a new accounting policy prior to the beginning of the first quarter of the current fiscal year is tobe added or deducted from retained earnings at the beginning of the first quarter of the current fiscal year and a new
accounting policy is to be applied from the beginning of the current fiscal year. However, there is no cumulative effect to be
added or deducted from retained earnings at the beginning of the first quarter of the current fiscal year.
There is also no impact on the Company's profit and loss for the first quarter of the current fiscal year.
Due to the adoption of revenue recognition accounting standards, the "Notes and accounts receivable-trade," which waspresented in "Current assets" in the consolidated balance sheets for the previous fiscal year, is now included in "Notes andaccounts receivable-trade and contract assets" from the first quarter of the fiscal year under review. In accordance with thetransitional treatment set forth in paragraph 89-2 of the Revenue Recognition Accounting Standard, no reclassifications havebeen made to the prior period under the new presentation method.
(Application of Accounting Standard for Calculation of Fair Value)
The Accounting Standard for Calculation of Fair Value (ASBJ Statement No. 30, July 4, 2019, hereinafter referred to as
the "Accounting Standard for Calculation of Fair Value") and other standards were applied from the beginning of the firstquarter of the current fiscal year, and in accordance with the transitional treatment stipulated in paragraph 19 of the
Accounting Standard for Calculation of Fair Value and paragraph 44-2 of the Accounting Standard for Financial Instruments(ASBJ Statement No. 10, July 4, 2019), the new accounting policy stipulated by the Accounting Standard for Calculation of
Fair Value will be applied in the future. There is no impact on the quarterly consolidated financial statements for the firstquarter of the current fiscal year.
(Additional Information)(Accounting Estimate of the Impact of spread of COVID-19)
There have been no material changes in the assumptions described in (additional information) in the previous fiscal year's
financial statements in the accounting estimates related to the impact of the spread of the new Corona Virus Infectious
Disease (COVID-19).
(Segment Information)
I Previous 1st Quarter (From January 1, 2021 to March 31, 2021)
Disclosure is omitted because the business segments of the Group are a single segment.
II 1st Quarter Under Review (From January 1, 2022 to March 31, 2022)
Disclosure is omitted because the business segments of the Group are a single segment.

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(Significant Subsequent Events)(Establishment of a Subsidiary)
At a meeting of the Board of Directors held on February 10, 2022, we resolved to establish a subsidiary uponcommencement of a new business and established it on April 1, 2022.
(1)Purpose of Incorporation
Over the past few years, the global society has undergone major changes. Japanese companies are also required toreform their business models, such as responding to environmental issues such as carbon neutrality, responding to
productivity improvements such as digitization, responding to the revitalization of local economies, which are facing
issues such as the declining birthrate and aging population and business succession issues, and responding to the aftersales
covid-19.
We have decided to establish an investment company that will enable us to make medium-to long-term investments
involving the dispatch of management personnel in order to resolve such important corporate issues and solve social
issues.
The newly established investment subsidiary does not invest for the purpose of short-term return on investment, butrather directly invests funds raised in common stock or class shares from financial institutions and operating companies
with the aim of enhancing corporate value over the long term. This will enable the company to grow by reforming thebusiness model of the investee company and reorganizing the industry over the medium to long term.
In addition to the Investment Company, in principle, the Investment Company's portfolio companies are also assumed
to be subject to our consolidated accounting. Accordingly, we anticipate that the size of our group will be much larger
than it is now, and we believe that accelerating the scale expansion of our group while significantly strengthening ourinvestment business will also contribute to enhancing our shareholder value.
(2)Overview of Subsidiaries①

Name

Frontier Capital Inc.

②

Address

2-1, Roppongi 3-chome, Minato-ku, Tokyo

Job Title/Name ofRepresentative Director, Co-President Shoichiro Onishi
Representative Director, Co-President Masahiro Matsuoka③④

Representative
Description of Businesses

Representative Director, Senior Managing Director Yasuo Horikoshi
Investment business involving the dispatch of management personnel
500 million yen(Note 1) We will invest a total of 1 billion yen, with 500 million yen as common stockand 500 million yen as additional paid-in capital.

⑤

Paid-in Capital(Note 2) We plan to raise funds totaling 20 billion yen from financial institutions,operating companies, etc. that have agreed with the purpose of establishing a
new subsidiary, but the amount to be included in shareholders' equity has notbeen determined.

⑥

Date of Incorporation

April 1, 2022⑦

Fiscal year end

December 31

Major shareholders andFrontier Management Inc. 100%
(NOTE)We plan to issue common stock or class shares to financial institutions and⑧

percentage of sharesoperating companies that have agreed with the purpose of establishing a new
subsidiary, but we hold a majority of the voting rights.
Capital relationship

Listed companies and the⑨companies concerned
Relationship with

Personnel
relationship

It is our subsidiary.
Shoichiro Onishi and Masahiro Matsuoka, our Representative
Directors, will also serve as Representative Directors of therelevant companies.

Business

There is no business relationship with us because we have notrelationshipcommenced operations.

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