FY2021 3Q Financial Results
Ending December 2021

November 12, 2021

Frontier Management Inc.
(TSE First Section Code No. 7038)

Table of Contents

Section 1

FY2021 3Q Financial Results

Section 2

Various Progress

Section 3

Corporate Profile1

Section 1

FY2021 3Q Financial Results

FY2021 3Q Financial Results

Summary- Sales increased 11% due to the successful Management Consulting Business, especially in the retail industry which is one of
our strength areas.
- Sales decreased in the Revitalization Support Business, and incomes decreased in the Financial Advisory Business due to thelack of large-scale M&A projects, so the full-year earnings forecast is revised.
- Expenses continued to increase due to aggressive recruitment, which has been strategically ongoing since last year.

(JPY Mil.)FY2021 3Q results

3,495

3,892+397

+11%

5,700

Operating income

116

76-41-35%500

Ordinary income

10985-24-22%

510

Net income

7149-22-31%

340

Net sales

YoY +/-Forecast(as of Nov 12, ’21)

FY2020 3Q results

YoY %3FY2021 3Q Financial ResultsEarnings Forecast Revision- Management Consulting Business• Exceeded forecast due to the positive effects of aggressive recruitment, the continual large-scale client projects, smoothlaunch of Digital Strategy Office and SR/IR Strategy Office.
- Revitalization Support Business• Demand for revitalization support has not expanded more than expected due to the continual emergency loans tocompanies by financial institutions.

- Financial Advisory Business• Large-scale M&A projects expected to be closed during this fiscal year haven’t been closed.
• The trend of concentrating in 4Q continues this fiscal year as well.
- Recruitment• Aggressive recruitment continues for medium-term growth.
• Net increase of employees is expected approximately 30 this fiscal year while initial forecast was 40.
- Impact on Medium-Term Management Plan
• No change this time.
4

FY2021 3Q Financial Results

Net Sales Breakdown
Management Consulting Business:
Revitalization Support Business:
Financial Advisory Business:

Increased 33% due to expanding customers in the retail and logistics industries
which are our strongest areas, and continued large-scale projects.
Decreased because the demand hasn’t reached full scale.
Increased as a result that numerous medium-sized M&A deals closed.

(JPY Mil.)

4,000

3,000

Other Business

4263
1,066

1,020

(1.6% of total, YoY 149.7%)

Financial Advisory Business(27.4% of total, YoY 104.4%)

509
2,000

Revitalization SupportBusiness

730(13.1% of total, YoY 69.7%)

1,000

1,701

2,254

Management ConsultingBusiness(57.9% of total, YoY 132.5%)02020 3Q

2021 3Q

5

FY2021 3Q Financial Results

Quarterly Sales Trends (1/4)-Total- Steady growth in the total of Management Consulting Business and Revitalization Support Business where human resources
are flexibly transferable.
1,697
1,625Others
Financial Advisory Business
Revitalization Suppot Business
Management Consulting Business(JPY Mil.)

1,057
953

933
822

811

752

554
612

392

371
102

126

73

121

53
64

361

385

374

400

1Q

2Q

3Q

4Q

2015

706

443

1Q

52

374
359

314
30

100

61358

435

858

629

416

49

138

65

98

226

298

349

303

325

2Q

3Q

4Q

1Q

447

480

509

2Q

3Q

4Q

2017

574

1Q

470

451

449

2Q

3Q

4Q

2018

472

302

335
131

315
214

167
212

203

104

65

543

1Q

440

2Q

1,311

259

230
99

1,253

757

1,090
403

277
40

859

1,190

896

41373

2016

513
403

1,114

1,035914

534

1,216

1,160 1,174
993

983

819

254

347

299

1,329

1,126

1,100

824

1,502

529

504

487

3Q

4Q

1Q

2019

565

2Q

649

3Q

2020

715

4Q

631

1Q

727

2Q

3Q

2021
6

FY2021 3Q Financial Results

Quarterly Sales Trends (2/4)-Management Consulting Business(JPY Mil.)

896

727

715
649

574

361

385

374

400

447

443

2Q

3Q

2015

4Q

1Q

2Q

509

470

451

449

3Q

4Q

529

565
504

487

4Q

1Q

440

373

349
303

1Q

480

543

631

3Q

2016

325

4Q

1Q

2Q

3Q

2017

4Q

1Q

2Q

2018

1Q

2Q

3Q

20192Q

3Q

2020

4Q

1Q

2Q

3Q

2021
7

FY2021 3Q Financial Results

Quarterly Sales Trends (3/4)-Revitalization Support Business(JPY Mil.)

298

230
214

226

212

203

126

131

121

102

100735364

2Q

3Q

2015

4Q

1Q

2Q

3Q

2016

986152
30

1Q

167

4Q

41

1Q

2Q

3Q

2017

4Q

104

1Q

2Q

138

65

65
49

99

40

1Q

2Q

3Q

2018

4Q

3Q

2019

4Q

1Q

2Q

3Q

2020

4Q

1Q

2Q

3Q

2021
8

FY2021 3Q Financial Results

Quarterly Sales Trends (4/4)-Financial Advisory Business(JPY Mil.)

914
859
757
629

612
554

534

513

392
371347403

416

3Q

2015

4Q

1Q

2Q

3Q

2016

4Q

315

277

254

2Q

403

358

314

299

1Q

359

374

472

435

1Q

2Q

3Q

2017

4Q

1Q

2Q

3Q

2018

4Q

1Q

2Q

3Q

2019

4Q

1Q

2Q

335

302

3Q

2020

259

4Q

1Q

2Q

3Q

2021
9

FY2021 3Q Financial Results

Received Orders Progress- Trending beyond previous fiscal year.
(JPY Mil.)

6,000

FY20215,500

FY2020

5,000
4,500

F2019

4,000
3,500
3,000
2,500
2,000

1,500
1,000
500
0End

49 wk

45 wk

41 wk

37 wk

33 wk

29 wk

25 wk

21 wk

17 wk

13 wk

9 wk

5 wk

1 wk

10

FY2021 3Q Financial Results

PL Overview- Personnel expenses increased due to aggressive recruitment.
(JPY Mil.)FY20203Q results

FY2021
3Q results

YoY %Net sales

3,495

3,892+11%

Operating expenses

3,379

3,816+13%

Outsourcing

153

124-19%Personnel

2,367

2,805+19%

Recruitment

174

181+4%

Others683

705+3%

Operating income

116

76-35%

Ordinary income

10985-22%Net income before tax

109

85-22%Net income

7149-31%

Depreciation and amortization28

27- 6%EBITDA

139

114-18%

Number of employees (person)

223

254

+14%+438

11FY2021 3Q Financial Results

BS Overview- Current assets decreased due to decreases in cash & deposits and accounts receivable.
- Current liabilities decreased due to decreases in provision for bonuses and income taxes paid.
- Shareholders' equity decreased due to dividend payments, etc.

(JPY Mil.)End of December 2020

End of September 2021

Current assets

2,994

2,176

-818

Fixed assets

798

747-52

Total assets

3,792

2,923-870

Current liabilities

1,261

701-561

Fixed liabilities

8282+0Shareholder equity

2,436

2,099-338

Other net assets

1140+28

3,792

2,923-870

1,899

1,270-629----1,899-1,270+629

Total liabilities andnet assets
Cash and deposits
Interest-bearing debt
Net Debt

YoY +/-

12

Sales Trend in New Products in Management Consulting Business- Steady growth in Digital Strategy Office and SR/IR Strategy Office established in June this fiscal year.

14SR/IR Strategy Office
DX Strategy Office51
215(JPY Mil.)

21Q

2Q

3Q

2021
13

FY2021 3Q Financial Results

Number of Front Employees TrendOthers
Financial Advisory
12Consultant for Management and Revitalization(Number of employees)

13141355

1415506160

1357

1462565382(End of)

4Q
2019

93

1Q

102

2Q
2020

Note: "Others" refers to employees who are dedicated to marketing, etc.

116

119

3Q

4Q

133

1Q

147

2Q

156

3Q

2021
14

FY2021 3Q Financial Results

Large-Scale Project Trends- In Management Consulting Business, large-scale projects more than JPY100 Mil steadily increased and contributing to incomes.
- In Financial Advisory Business, large-scale projects which had been the driving force behind earnings decreased.

Large-Scale Project Trends (number basis)

Large-Scale Project Trends (value basis)(Number of projects)

7(JPY Mil.)

1,000

Management Consulting Business6

Revitalization Support Business

6

Financial Advisory Business

55

5Management Consulting Business

900

Revitalization Support Business

800

Financial Advisory Business

700
4500

33222102015

012016

2017

02018

707

610

02019

420

416

408

300

12020

0 0
2021
3Q

100

150

208

200

10 0783

400

20788

600

43870

153

144

00 00002015

2016

2017

2018

2019

00 02020

2021
3Q
15

Section 2

Various Progress

Various Progress

Recruitment- Continued aggressive recruitment to achieve 300-400 employees which is the critical mass of independent firms.
- Expected net increase of 32 employees and achieved 80% of targeted 40 in FY2021.
Steady progress

Number of employees at EOFY
350
267

153(FY)

238

227(Employees)

159

172

153

165

249

254

259

177
194

206

216

221

226

32

33

33

33

End of SEP

As of NOV

2021

2021+offered

122

129

144

124

133

148

31

30

28

29

32

2933

2014

2015

2016

2017

2018

2019

2020

2021 Plan

・・・

2023 Plan

End of MAR End of JUN2021202117Various Progress

Recruitment by Position- Recruited more high talented professionals (Managing Directors / Senior Directors) in FY2021 to strengthen theorganizational functions.

Recruitment by Position
FY2020by November FY2021 (including offered)Managing Director / SeniorDirector
10%

Managing Director / SeniorDirector
26%

Director / Associate Director /Director / Associate Director /Associate

Associate

90%

74%

18

Various Progress

Recruitment by Segment- Focus on recruitment of consulting with growth trends.

Recruitment Composition
FY2020by November FY2021 (including offered)

OthersOthers8%

9%

Revitalization

Revitalization12%

16%
Consulting
Financial
Advisory
19%

57%

Financial

Consulting

Advisory64%

15%

19Various Progress

M&A Deals in FY2021 3Q- Increased in the projects for the sale of businesses of large enterprises to private equities.
- The number of publications on our website was 17 from January to September 2021 (12 in the same period of the previous year).
No.

Month①

August②③④⑤

AugustBuyer
Kabushiki Kaisha
Shinshifuku Nakanishi

Foot Locker, Inc. (US)

SellerOctober

October

FA services related to the tender offerfrom Nakanishi to ONLY.

MBO projects

Text Trading Co., Ltd.

Sell-side support related to theacquisition of Text Trading by FootLocker.

Cross-border deals

FA services related to the acquisition of
ATTOWAVE by Uniden Holdings

Cross-border deals

FA services related to the transfer ofSojitz Corporation/Anjelica Co.,Angelica shares held by Sojitz to WITHLtd.
Holdings held by T Capital Partners

Nippon Mirai Capital Co.,
Hitachi, Ltd.
Ltd.

Red: Companies where we advised.

Characteristics

ONLY corporation

September Uniden Holdings Co., Ltd. ATTOWAVE CO., LTD. (Korea)

T-Capital Partners Co.,
Ltd./ WITH Holding Co.,Ltd.

SummaryFA services related to the sale of theradiation measurement equipment
business and the industrial X-ray CT
equipment business by Hitachi, Ltd.

Large enterprise carve-out, buyer PE

Large enterprise carve-out, buyer PE20Various Progress

Financial Advisory Business Backlog- Large-scale M&A projects expected to be closed during this fiscal year haven’t been closed.
- New orders are robust, and backlog remains at a high level.
- 5 projects’ backlog is more JPY100 Mil each.
(JPY Mil.)

2,500
Backlog at end of quarter
2,000

1,500

1,000

500

0
FY20191Q

FY2020
2Q

3Q

4Q

1Q

FY2021
2Q

3Q

4Q

1Q

2Q

3Q
21

Section 3

Corporate Profile

Corporate Profile

Background of Establishment
Representative Director

Representative Director

Shoichiro Onishi

Masahiro Matsuoka•After registering as an attorney with the Tokyo Bar
Association in 1992 (44th term), joined the law firmof Okuno & Partners and was appointed as apartner in 1997.
•Engaged in the corporate reorganization
proceedings of Japan Lease, Life Co., Ltd., and The
Taisei Fire & Marine Insurance Co., Ltd. as anacting trustee or other capacity.

•After working at Nomura Research Institute, Ltd.
and Barclays Bank PLC, joined UBS Securities
Japan Ltd, and was subsequently appointed
concurrently as Head of Equity Research andManaging Director in 1999.
•Engaged as an equity analyst with the retailindustry for a total of 10 years.

JoinedJoinedIndustrial Revitalization Corporation Japan
OnishiEngaged in turnaround projects as an auditor in Mitsui
Mining Co., and a director in Kanebo, Ltd. and The Daiei, Inc.

MatsuokaEngaged in the turnaround projects of Kanebo, Ltd. and The
Daiei, Inc. as a director.

Jointly established in 200723Corporate Profile

VisionContribute to enhancing corporate value and building a sustainable society by gathering wisdomfrom the world and solving complex corporate issues as a group of experts with diverse
backgrounds.
Background of our professionals
OthersLegal Counsel

1%

2%

Certified Public

Accountant / Tax
Business Companies

Accountant

19%

10%

Financials Institutions

Consultant / Analyst

22%

46%
As of the end of September 2021
24

Corporate Profile

BusinessProviding a wide range of services in response to corporate issues at all stages.

• Business analysis and strategy
formulation• Business due diligence• Medium-Term Management Plan,Management, Finance, andBusiness Strategy• M&A deal advisory

ManagementConsulting• Post M&A consulting• Business succession consulting

M&AAdvisory• PMO management support• Execution support, including
CXO dispatch• Support for collaboration withequity holders• Management reforms under
turnaround situations• Support for business and financial
restructuring

Management
Execution Support• Stakeholder Interest Adjustment Support

Business
Revitalization25

Corporate Profile

Customer Segments
Providing services to diverse industries.

ITOthers

1%
Finance

Retail and10%

wholesale16%

6%
Infrastructure
9%

Restaurant andservices

Industrial goods23%

manufacturers
24%

Consumer-productproducers11%
Result of FY2020
26

Corporate Profile

History
FY2007

Established.

FY2011

Established a subsidiary in China (Frontier Management (Shanghai) Inc.).

FY2012Opened a branch in Singapore to strengthen cross-border M&A.

FY2014Opened branches in Nagano and Osaka to realize community-based
management support services.

FY2017FY2018FY2019FY2020Opened a branch in New York to strengthen cross-border M&A.
Launched fund business to provide funding support services to customers.
Invested in the first fund project.
Listed on TSE Mothers Section.

Opened a branch in Nagoya to expand the service territory.
Relocated the headquarter to current location (Roppongi, Minato-ku, Tokyo).
Listed on TSE 1st Section.
27

Corporate Profile

Board of Directors and Organizational Chart
Corporate Strategy Department

Management Consulting Department

Management Execution Support Department
Representative
Directors

Financial Advisory Department

Industrial Research Department

Business Development Department

Company Planning and Administration Department

28

Contributions to the benefit of clients- We work for the benefit of our clients by enhancing corporate value.

ManagementPhilosophy

Contributions to the benefit of stakeholders- By offering well balanced solutions, we work for the benefit of business owners
and managers, employees, business partners, customers, creditors, and otherstakeholders.

Contributions to society- We contribute to society by raising the value (goods & services) provided by ourclient companies.

29

Corporate Profile

Corporate Information
Company Overview

Business Descriptions

Company Name
Established
ListedFrontier Management Inc.
January 4, 2007

1. Management Consulting

First Section of the Tokyo Stock Exchange (Code Number : 7038)

2. M&A Advisory

Location

Sumitomo Fudosan Roppongi Grand Tower 41F, 3-2-1 Roppongi,
Minato-ku, Tokyo

3. Management Executive Support

TEL/FAX<TEL>+81-3-6862-5180 (general) <FAX>+81-3-6862-8611

4. Business Revitalization SupportWebsite

https://www.frontier-mgmt.com

Officers, etc

Co-president, Representative
Co-president, Representative

Shoichiro Onishi
Masahiro Matsuoka

Director of the Board
Outside Director of the Board
Outside Director of the Board

Yoshiaki Takahashi
Kazuhito Osugi
Keiko Unotoro

Audit & Supervisory (full-time)
Audit & Supervisory (part-time)
Audit & Supervisory (part-time)

Takeshi Umemoto
Kazuhiko Shimokobe
Nobumichi HattoriSenior Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer

Toshi Mitsuzawa
Sumio Nishizawa
Akinori Nishida
Masaya Yajima
Shinji Hikoe
Hitoshi Kuriyama
Tomohiro Murata
Hiroaki Hamada

254 (consolidated)

as of end of September 2021

No. of employees
BranchGroup Companies
Associatedcompany

Osaka, Nagoya, Nagano, Singapore, New York
Frontier Management (Shanghai) Inc. (Wholly owned)
FCD Partners Inc.

Professional Composition Ratio
OthersLegal

2%Counsel2%

BusinessCompanies
19%✓ Composed of experts tomanagement such as legal
counsel, CPA, tax accountant,consultants, industry analysts,
Certified Public
and persons involved in banking,Accountant / Tax
enterprises and others.
✓ Form the best team of experts
Accountant
to each customer’s challenge
12%and propose comprehensivesolutions.

Consultant /Financials

AnalystInstitutions

43%

22%

As of end of September 2021

30

Handling of this material- This document contains forward-looking statements, plans for the future, and management objectives
related to us. These forward-looking statements are based on current assumptions about future eventsand trends, and there can be no assurance that such assumptions will always be accurate. A number offactors could cause actual results to differ materially from those described in this document. Forwardlooking statements such as earnings forecasts and other projections contained in this release arebased on information available at this time and assumptions that management believes to me
reasonable, and do not constitute guarantees of future performance. Actual results may differ
materially from those expectations due to various factors.
- Unless otherwise indicated, the financial data presented herein is presented in accordance withaccounting principles generally accepted in Japan.
- Regardless of the occurrence of future events, we will not necessarily revise the forward-looking
statements that have already been made, except as required by disclosure rules.
- Information about companies other than ours relies generally on publicly available information.

©2021 Frontier Management Inc. All rights reserved. The copyright of this material belongs to Frontier Management Corporation.
31

© 2021 Frontier Management Inc.