Consolidated Financial Results for the 1H of the Fiscal Year Ending December 31, 2021
(Japanese GAAP)
August 12, 2021
Frontier Management Inc.
Listed Tokyo Stock Exchange7038
URL https://www.frontier-mgmt.com/(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
August 12, 2021
commencement of dividend Securities Report
payment
Preparation of supplementary material onquarterly financial results: Yes
Quarterly results briefing: Yes(for institutional investors and analysts)
Listed company name
Code number
Representative(Millions of yen are rounded down)
Quarterly consolidated results for the 2Q of the fiscal year ending December 31, 2021 (January 1, 2021 to June 30, 2021)(1) Consolidated Operating Results (Cumulative)(Percentages indicate year-on-year changes.)
Net sales

Operating income

Net income attributable toowners of parent

Ordinary income

JPY mil.

%

JPY mil.

%

JPY mil.

%

JPY mil.

%2Q of FY2021

2,58212.0

74

△37.6

81

△35.3

51

△37.62Q of FY2020

2,305

13.5

118508.3

126300.581444.6(NOTE)
2Q of FY2021
Comprehensive income49JPY mil. (△40.4%)

Net profit per share

2Q of FY2020

82

JPY mil.

(409.2%)

Fully diluted net profit per share
Yen

Yen

2Q of FY2021

4.46

4.40

2Q of FY2020

7.21

7.02(NOTE)We conducted a 2-for-1 stock split on January 1, 2021. Calculations of "Quarterly net income per share" and "Diluted net income per share" are based on
the assumption that the stock split was implemented at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total assets

Net assets

Equity Ratio

JPY mil.

JPY mil.

%2Q of FY2021

3,2742,11564.2

End of FY2020

3,792

2,44864.6

Reference:
Shareholders' equity

2Q of FY2021

2,101

JPY mil.

End of FY2020

2,448

JPY mil.

2.Dividend Status
Dividend per share
End of first quarterEnd of second quarterEnd of the third quarter

Yen

Yen

Yen

Yen

Yen

FY2020

-0.00

-

24.00

24.00

FY2021-0.00---

FY2021 (Forecast)

Term end

Total(NOTE)1.1. Revisions to the most recently announced dividend forecasts: None
2.We plan to pay a dividend for the fiscal year ending December 31, 2021, but we have not yet determined the expected amount.
3.We conducted a 2-for-1 stock split on January 1, 2021. The actual amount of dividends for the fiscal year ending December 31, 2020 is before the stocksplit.

-1-3.Forecasts for the fiscal year ending December 31, 2021 (January 1, 2021 to December 31, 2021)(Percentages indicate year-on-year changes.)
Net sales

Full year

Operating income

Ordinary income

Net income attributable toNet income per shareowners of parent

JPY mil.

%

JPY mil.

%

JPY mil.

%

JPY mil.

%

Yen

6,500

25.2

1,000

72.2

1,007

74.9

693

64.8

60.30

(NOTE)Revisions to the most recently announced earnings forecasts: None-2-※ Notes(1) Changes in significant subsidiaries during the quarter (changes in specified subsidiaries accompanied by changes in the scope ofconsolidation): None
(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.: None
② 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)

FY2021 2Q

11,403,558 Shares

FY202011,555,800

Shares

② Number of treasury stock at the end of theperiod

FY2021 2Q

25,080 Shares

FY202063,080Shares③ Average number of shares during the period(cumulative)

FY2021 2Q

11,418,641 Shares

11,337,979

Shares

FY2020 2Q(NOTE)We conducted a 2-for-1 stock split on January 1, 2021. The numbers of the above ①, ② and ③ during the period are calculated on theassumption that the stock split was implemented at the beginning of the previous fiscal year.

※ 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. Overview of Quarterly
Financial Results, (3) Future Outlook" on page 3 of the attached material for the assumptions underlying the forecasts and noteson the use of the forecasts.

-3-○Accompanying Materials – Contents1.Overview of Quarterly Financial Results.................................................................................... ...............................................

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

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

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

32. Quarterly Consolidated Financial Statements ..........................................................................................................................

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

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

6Statements of Income
2Q Cumulative Period ..............................................................................................................................................

6Statements of Comprehensive Income
2Q Cumulative Period ........................................................................................................ ......................................

7(3) Statements of Cash Flows ...........................................................................................................

8(4) Notes to Quarterly Consolidated Financial Statements .................................................................................................. ...

9(Going Concern) ........................................................................................................................................... ...

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

9(Additional Information) .................................................................................................................................................

9(Segment Information) ................................................................................................................................................... .

9-4-1. Overview of Quarterly Financial Results(1) Operation Results
During the 2Q of the current fiscal year (January 1, 2021 to June 30, 2021), the economy remained in a severe situation due
to the impact of the new coronavirus infectious disease (COVID-19). The outlook is highly uncertain, as the fourth state ofemergency was announced in several regions, , although it is expected that infectious diseases will converge due to the spreadof vaccines and economic activities will become normalized.
Under such a business environment, our Group continued to focus on proposals aimed at resolving corporate issues in an
integrated manner by providing comprehensive services that leverage management consulting, financial advisory, revitalization
support, and other functions.
As a result of the above, our Group's financial results for the 2Q of the current fiscal year were; net sales were JPY2,582,299
k (up 12.0% from the same quarter of the previous fiscal year) due to the strong performance of the management consultingbusiness. In addition, personnel expenses and recruitment expenses increased due to aggressive hiring. As a result, operating
income was JPY74,174 k (down 37.6%), ordinary income was JPY81,671 k (down 35.3%), and profit attributable to owners ofparent was JPY51,025 k (down 37.6%).
Operating results by business were as follows.
<Management Consulting Business>
Net sales were JPY1,357,782 k (up 29.0%). The positive effect was realized due to increase in the number of employees, andthe scope of customers expanded including the retail industry and the logistics industry, which are our strengths, and thecontinuation of large-scale client projects also contributed. As a result, sales increased significantly compared with the same
period of the previous fiscal year.
<Financial Advisory Business>
Net sales were JPY806,813 k (up 12.2%). Although the situation remains severe for cross-border M&A deals between
domestic and overseas companies, a large number of medium-sized M&A deals between domestic companies achieved toconclude. As a result, sales increased compared with the same period of the previous fiscal year.
<Revitalization Support Business>
Net sales were JPY378,470 k (down 24.4%). Although the need for revitalization support was expected due to the impact of
the COVID-19 spread, emergency loans to companies by banks have continued. Many companies have not faced a cash flow
tightening, and the need for revitalization support has not expanded more recently than expected. As a result, sales declined
compared with the same period of the previous fiscal year.
<Other Business>
In the Other Business, net sales were JPY39,231 k (up 16.3%).
(2) Financial Position<Assets>
The Group's assets were JPY3,274,407 k, decreased JPY518,323 k from the end of the previous fiscal year.
This was mainly due to decreases of JPY227,933 k in cash and deposits and JPY264,435 k in notes and accounts receivable.
<Liabilities>
The Group's liabilities were JPY1,159,140 k, decreased JPY184,992 k from the end of the previous fiscal year.
This was mainly due to an increase of JPY500,000 k in short-term loans payable, a decrease of JPY271,424 k in accrued
bonuses, a decrease of JPY210,453 k in income taxes payable, and a decrease of JPY114,494 k mainly in accrued consumption
taxes.

-5-<Net assets>
The Group's net assets were JPY2,115,267 k, decreased JPY333,331 k from the end of the previous fiscal year.
This was mainly due to an increase of JPY51,025 k in profit attributable to owners of parent, a decrease of JPY137,912 k individends from retained earnings and the purchase of treasury stock of JPY270,080 k.
<Cash Flows>
Cash and cash equivalents (hereinafter referred to as "Cash") at the end of the 2Q of the current fiscal year decreased byJPY227,933 k from the end of the previous fiscal year to JPY1,671,167 k.
The status of each cash flow and its factors in the 2Q of the current fiscal year are as follows.
Cash flows from operating activities
Net cash used in operating activities was JPY318,645 k (net cash used of JPY61,647 k in the same quarter of the previous
fiscal year). This was mainly due to an increase of JPY81,671 k in quarterly profit before income taxes and a decrease ofJPY264,704 k in notes and accounts receivable-trade, and a decrease of JPY270,424 k in accrued bonuses, a decrease ofJPY45,056 k in notes and accounts payable-trade, a decrease of JPY62,237 k in accounts payable-other, and income taxes paidof JPY203,896 k.
Cash flows from investing activities
Net cash used in investing activities was JPY5,824 k (net cash used of JPY56,803 k in the same quarter of the previous fiscalyear). This was mainly due to purchase of tangible fixed assets of JPY4,977 k.
Cash flows from financing activities
Net cash provided by financing activities amounted to JPY94,165 k (net cash provided of JPY15,948 k in the same quarterof the previous fiscal year). This was mainly due to an increase of JPY500,000 k in short-term loans payable and a decrease of
JPY270,080 k in purchases of treasury stock and JPY137,836 k in dividends paid.
(3) Future Outlook
There is no change in the full-year consolidated earnings forecast from the announced on February 9, 2021.

-6-2. Quarterly Consolidated Financial Statements(1) Balance Sheets(Thousands of yen)
End of previous fiscal year
(As of December 31, 2020)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Operational investment securities
OthersAllowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings, net
Tools, furniture, and fixtures, net
Total property, plant and equipment
Intangible assets
Software
OthersTotal intangible assets
Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Lease deposits
Deferred tax assets
OthersTotal investments and other assets
Total noncurrent assets
Total assets-7-

End of 2Q of current fiscal year
(As of June 31, 2021)

1,899,100
962,644
1,364
146,795△15,633
2,994,271

1,671,167
698,209
1,205
161,274△14,759
2,517,097

198,844
19,951
218,795

202,480
17,586220,066

11,043102
11,145

8,837
102
8,939

56,80037,127211,126
224,236
39,228568,518
798,459
3,792,731

56,80040,335
212,019
194,443
24,705528,304
757,3103,274,407

(Thousands of yen)
End of previous fiscal year
(As of December 31, 2020)
Liabilities
Current liabilities
Accounts payable
Short-term borrowings
Accounts payable-other
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Allowance shareholder benefit program
OthersTotal current liabilities
Long-term liabilities
Asset retirement obligations
Total noncurrent liabilities
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 adjustment
Total other accumulated comprehensive income
Stock acquisition right
Total net assets
Total liabilities and net assets-8-

End of 2Q of current fiscal year
(As of June 31, 2021)

59,407
147,912228,587505,7361,000
319,230
1,261,874

14,630500,000
99,30018,134
235,312
4,767
204,735
1,076,879

82,257
82,257
1,344,132

82,26082,2601,159,140

163,530
835,220
1,496,027△58,1632,436,614

164,571553,657
1,409,140△36,575
2,090,793

11,984
11,9842,448,598
3,792,731

10,273
10,273
14,2002,115,267
3,274,407

(2) Statements of Income and Comprehensive Income
Statements of Income(2Q Cumulative Period)(Thousands of yen)
2Q of previous fiscal year
(January 1, 2020
to June 30, 2020)
Net sales
Cost of sales
Gross profit
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
OthersTotal non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Charges for stock compensation
OthersTotal non-operating expensesOrdinary income
Current net income for the quarter before income taxes
and minority interests
Income taxes
Income taxes-deferred
Total income taxes
Net profit
Net profit attributable to owners of parent-9-

2Q of current fiscal year
(January 1, 2021
to June 30, 2021)

2,305,924
933,135
1,372,788
1,253,901
118,887

2,582,299
1,016,441
1,565,857
1,491,683
74,174

32
4,302
968
2,161
2,644
10,108

60
3,208
1,125
874
3,415
1,647
10,330

373
2,071
256
2,701
126,294

613
1,963
256
2,833
81,671

126,294

81,67162343,861
44,48581,80981,809853
29,79330,64651,02551,025

Statements of Comprehensive Income(2Q Cumulative Period)(Thousands of yen)
2Q of previous fiscal year
(January 1, 2020
to June 30, 2020)
Net profit
Other comprehensive income
Foreign currency translation adjustment
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 interests- 10 -

2Q of current fiscal year
(January 1, 2021to June 30, 2021)

81,80951,025924
924
82,734△1,710△1,71049,31482,73449,314--(3) Statement of Cash Flow(Thousands of yen)
2Q of previous fiscal year
(January 1, 2020
to June 30, 2020)
Net cash provided by (used in) operating activities
Current net income for the quarter before income taxes
and minority interests
Depreciation and amortization
Share of investment (loss) of entities accounted forusing equity method (△: profit)
Charges for stock compensation
Increase (decrease) in accrued bonuses
Increase (decrease) in provision for directors' bonuses(△)
Increase (decrease) in allowance for doubtful accounts(△)
Increase (decrease) in accrued shareholder benefit
programInterest income
Interest expenses
Decrease (△) in notes and accounts receivable-trade
Decrease (△) in operational investment securities
Increase (△) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other (△)
OthersSubtotalInterest received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flow from investing activities
Purchase of property, plant and equipmentPurchase of investment securities
Payment by 差入 of lease deposits
Cash flow from investing activities
Cash flow from financing activities
Net increase (△) in short-term borrowings
Purchase of treasury stock
Cash dividends paid
Proceeds from exercise of stock options
Cash flow from financing activities
Effect of exchange rate change on cash and cash
equivalents
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 11 -

2Q of current fiscal year(January 1, 2021
to June 30, 2021)

126,294

81,671

19,296

17,879△4,302△3,208349△260,381

37,518△270,424△8,882△1,000△2,161

△874-

4,767

△32
373
206,694376
18,211△26,367
2,461
71,93032△480△133,130△61,647△60
613
264,704
159△45,056△62,237△138,437△113,98260△826△203,896△318,645△56,800△3△56,803△4,977△847△5,824250,002△111,784△129,193
6,924
15,948500,000△270,080△137,836
2,082
94,16532

2,371△102,470△227,933

1,733,235
1,630,765

1,899,100
1,671,167

(4)Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Significant Changes in Shareholders' Equity)
Not applicable.
(Additional Information)(Accounting Estimate of the Impact of Infectious Disease of the 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)
Previous 2Q (January 1, 2020 to June 30, 2020)
Disclosure is omitted because the business segments of the Group are a single segment.
Current 2Q (January 1, 2021 to June 30, 2021)
Disclosure is omitted because the business segments of the Group are a single segment.

- 12 -