FY2023 Financial Results andMedium-Term Management Plan

February 14, 2024

Frontier
Management Inc.
フロンティア・マネジメント株式会社
TSE Prime Market: 7038

Table of Contents

Section 1

FY2023 Financial Results

Section 2

FY2024 Financial Forecasts

Section 3

FY2024-FY2026 Medium-Term Management Plan

Section 4

Corporate Profile

1Section 1

FY2023 Financial Results

FY2023 Financial Results

Summary:
Frontier Management Group Consolidated Financial Statement [Entire Group]

Entire Group- In the consolidated financial results of Frontier Management (FMI) for FY2023, all of net sales, operating income, ordinary income and net
income attributable to owners of parent achieved the initial plan figures and reached record high levels- All three main businesses (Management Consulting, M&A Advisory, and Business Revitalization Support) achieved higher net sales.
- The number of employees at the end of the fiscal year was 369, falling 22 short of the initial plan
- Dividend per share increased sharply to JPY 41, compared with JPY 28 in the previous fiscal year
- FMI's subsidiary, Frontier Capital (“FCI”) concluded two investment contracts at the end of 2023, of which one investment has already been
executed pursuant to the contract)(JPY Mil.)FY2022
Results

FY2023Results

YoY change(amount)

YoY change(ratio)FY2023Rate of
Forecasts
achievement of(Feb.10, 2023)
Forecast

7,915

10,025+2,109127%

10,000

100%

908

1,251

+343

138%

1,200

104%

(11%)

(12%)

(+1%)

－

(12%)

－

921

1,238

+317

134%

1,200

103%

(Ordinary income margin)

(12%)

(12%)

(+1%)

－

(12%)

－

Net income attributable toowners of parent

556

780

+224

140%

700

112%

(Net income margin
attributable to owners ofparent)

(7%)

(8%)

(+1%)

－

(7%)

－

Net sales
Operating income(Operating income margin)
Ordinary income

3

FY2023 Financial Results

Summary: Consolidated Results for Frontier Management Group [Excluding FCI]

Excluding FCI- We continue to disclose our consolidated financial results without FCI, our subsidiary engaged in the investment business. We do this for thefollowing two reasons;・ FCI has an irregular accounting impact on FMI consolidated financial results depending on whether it invests or not in the year and this may
make it difficult to grasp the core performance of the Group・ FMI has announced that it will pay dividend at a payout ratio of 40% to the net income attributable to owners of parent which is calculated
by excluding non-cash items such as the accounting impact of FCI, so that the process of calculating the amount of dividends toshareholders could be explained in an easy-to-understand manner- Looking at "Consolidation excluding FCI," all of net sales, operating income, ordinary income, and net income attributable to owners ofparent surpassed the initial plan
- All of operating income, ordinary income, and net income attributable to owners of parent shot up around 50% year on year
- Net income attributable to owners of parent came to JPY 1,184 million and we set 40% of this amount as the amount of dividend of the year
(JPY Mil.)FY2022 Results FY2023 Results

YoY change(amount)

YoY change(ratio)FY2023
Forecasts(Feb.10, 2023)

Rate ofachievement of
Forecast(Ordinary income margin)

7,898
1,097
(14%)
1,112
(14%)

10,003
1,639
(16%)
1,641
(16%)

+2,106
+542
(+2%)
+529
(+2%)

127%
149%
－
148%
－

9,650
1,500
(16%)
1,500
(16%)

104%
109%
－
109%
－

Net income attributable toowners of parent

748

1,184

+437

158%

1,000

118%

(Net income margin attributableto owners of parent)

(9%)

(12%)

(+2%)

－

(10%)

－

Net sales
Operating income(Operating income margin)
Ordinary income

4

FY2023 Financial Results

Entire GroupNet Sales by Business [Entire Group]- Management Consulting Business: Maintained strong performance due to effect of increased number of staff and growth in order demands- Revitalization Support Business: Achieved record high sales due to strong demand for revitalization support- M&A Advisory Business: Maintained strong performance due to development of organized sales structure and steady completion of large
and medium-sized M&A deals- Investment Business: Signed two investment contracts at the end of December 2023, of which one investment has already been made)(JPY Mil.)248 21

10,000
3

8,000

165

6,000

2,793

4,000
2,000

Investment Business(Component ratio 0.2%, YoY change (ratio) 700%)
Other businesses(Component ratio 2.5%, YoY change (ratio) 150%)

3,023

M&A advisory business(Component ratio 30.2%, YoY change (ratio) 108%)

1,648

Revitalization Support business(Component ratio 16.4%, YoY change (ratio) 274%)

5,084Management Consulting business(Component ratio 50.7%, YoY change (ratio) 117%)

601

4,351

0
(FY)

2022

2023

5

FY2023 Financial Results

Excluding FCI

Quarterly Net Sales Trends by Business [Excluding FCI] (1/2)- Consolidated net sales set a new quarterly record(JPY Mil.)

3,000
Other businesses
M&A Advisory business

2,500

Revitalization Support business

2,000

1,916

1,849

2,027

1,747

1,697

1,625

903

1,502

1,500
1,100

500

2,323
2,276

2,225

Management Consulting business

1,000

2,754

2,651

1,057
933

824

811

822

1,160 1,174

1,126
953 983
752

706

993

1,214

1,114

1,035

1,092

858

819
513

358

416

1,329

859

403 315

1,190
302

230

757

214

472
212

1,253

335

1,311
659

958

259 153 89

576 680
579 129
76

476
663

981

379 370 530 369

307

131

167

203
374 403 534
277
914 435 629
1,2931,2521,2161,323
138 226 298
40
99
1,173
1,137
359 100 61 49
612
1,051
1,026
65 98 65994
104
371 314
121 53896
102 126 73
41
64
52 30
649 715 631 727
509 574 470 451 449 543 440 529 504 485 567
480
447
443
361 385 374 400
349 303 325 373
299

554

347

392 254

0(FY)

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

2015

2016

2017

2018

2019

2020

2021

2022

2023
6

FY2023 Financial Results

Excluding FCI

Quarterly Net Sales Trends by Business [Excluding FCI] (2/2)- The Management Consulting Business maintained a high level of sales with fourth-quarter sales rising year on year
- The M&A Advisory Business maintained a high level of sales with fourth-quarter sales set a new quarterly record- In the Revitalization Support Business, quarterly sales rose year on year
(JPY Mil.)

1,400
Management Consulting business
1,200
1,000

Revitalization Support business
M&A Advisory business

800
600
400

200
0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
(FY)

2015

2016

2017

2018

2019

2020

2021

2022

2023
7

FY2023 Financial Results

Entire Group

Overview of Consolidated Statements of Income [Entire Group]- Net sales, operating income, ordinary income and net income attributable to owners of parent all reached record highs due to sales growththat offset rising personnel expenses due to continued active recruitment and rising outsourcing expenses associated with increase inprojects(JPY Mil.)FY2022 Results
Net sales
Operating expenses
Outsourcing

Personnel
Recruiting
OthersOperating income
Ordinary income
Net income before tax
Net income attributable to owners of parent

Depreciation and amortization
EBITDAFY2023 Results

YoY change(amount)

YoY change(ratio)

7,915
7,007
364
4,770
469
1,403
908
921
868
556
84
992

10,025
8,773
1,039
5,639
406
1,688
1,251
1,238
1,240
780
105
1,356

+2,109+1,766
+675
+868
△62
+285
+343
+317
+372
+224
+21
+364

127%
125%
285%
118%
87%
120%
138%
134%
143%
140%
124%
137%

1,078
45
-

1,629
49
0

+550
+4
-

151%
109%
-

[Reference]
FMI non-consolidated operating income
Cerbrain operating income
Equity in earnings of Athema※The difference between the combined total of FMI non-consolidated operating income and Cerebrain operating income (JPY 1,678 million) and"Consolidation w/o FCI" operating income (JPY 1,639 million) is partly attributable to goodwill amortization (Cerebrain).

8

FY2023 Financial Results

Entire Group

Overview of Consolidated Balance Sheets [Entire Group]- Current assets increased mainly due to an increase in cash and deposits as a result of capital raising at FCI through third-party allotment(January and February 2023: JPY 3 billion in total)- Non-current assets rose mainly due to the acquisition of Athema shares (July 2023: EUR 8MM)
- Non-current liabilities increased mainly due to an increase in long-term borrowings- Shareholders' equity increased due to an increase in net income attributable to owners of parent(JPY Mil.)End ofDecember 2022

End ofDecember 2023

YoY change(amount)

YoY change(ratio)Current assets

4,276

8,159

+3,884191%

Non-current assets

1,375

2,709

+1,341

198%

Deferred assets

7

5

△2

76%

Total assets

5,658

10,874+5,223

192%

Current liabilities

1,868

2,569

+700

137%

Non-current liabilities

774

1,483

+709

192%

Shareholders’ equity

2,918

3,699

+781

127%

97

3,122

+3,0333,226%

5,658

10,874+5,223

192%

Cash and deposits

3,199

5,838

+2,640183%

Interest-bearing debt

777

1,589

+812

204%

△2,421△4,249△1,828175%

Other net assets
Total liabilities and net assets

Net debt※ Net Debt is calculated as Interest-bearing debt minus Cash and deposits

9

FY2023 Financial Results

Trend in Number of Large-scale Projects- Maintained record-high results for both the number of projects worth JPY100 million or more and the value of projects in both the M&A
Advisory Business and Management Consulting and Revitalization Support businesses
Trend of projects worth JPY 100 Mil. or more(based on number of projects)

Trend of projects worth JPY 100 Mil. or more(based on value)(Projects)(JPY Mil.)

18

4,000

M&A Advisory

16

16

Management Consulting Business/
Revitalization Support Business

14

11

11

10
8

4
2

3

0

3

2

0

0
(FY) 2015

2

2016

1
2017

5

7

6

Revitalization Support Business

2,500
1,635

1,500

2

500

1

420

0
0

2018

2019

2020

2021

2022

2023

(FY) 2015

610
0 208
2016

870

788

416

408

851

150
103

153

2017

1,902
1,455

1,189

1,000
1

3,379

Management Consulting Business/

2,000

10

4

3,500
3,000

12

6

M&A Advisory

2018

2019

2020

2021

2022

2023
10

FY2023 Financial Results

Expanding and Strengthening Solutions- In FY2023, as in the previous year, solution service sales related to SR/IR and ESG support, manufacturing reform implementation support, andDX consulting continued to expand

Net sales trend in each type of new business（JPY Mil.）

2,500

2,000

1,500

D&I Support
GRC(Governance, risk management, compliance)
Cross-border management execution support
DX consulting
Manufacturing reform implementation support
SR/IR and ESG support

1,000

500

（FY）

0

2020

2021

2022

2023
11

FY2023 Financial Results

Investment Results of Frontier Capital Inc. (FCI)- FCI concluded 2 investment contracts in 2023. One investment has already been made pursuant to the contract (ZOO LABO)
Announced on December 22, 2023

• Sanritsu Doken Group is a general contractor involved in maintaining andimproving regional infrastructure, including road and river construction
work, in Fukushima Prefecture.
• FCI will assist through capital participation (minority investment) via an
SPC and will also dispatch several executives to Sanritsu Doken Group.
• FCI will harness the consulting know-how of FMI/FCI to contribute toregional revitalization through enhancement of Sanritsu Doken Group's
corporate value. FCI plans to invest in the Group in March this year.
Company nameHead office
Representative
Number of
employees

Sanritsu Doken Co., Ltd.
Shimogo machi, Minamiaizu-gun District, Fukushima
Hidetoshi Asanuma, Representative Director
140 (Consolidated)

・ General construction business (contract for a complete set
Businessof civil engineering and architectural works)
・ Planning and design of civil engineering and architecturaldescription
works and supervision of construction, etc.
Minamiaizu-gun District (head office), Koriyama-shi,
Offices
Aizuwakamatsu-shi
Group companies Sanritsu Douro Co., Ltd, Sanritsu Enterprise Co., Ltd.

Announced on December 28, 2023

• ZOO LABO supplies high-quality dental technology products to dental
clinics across Japan. It has achieved high productivity by actively
promoting the digitalization of dental laboratory work such as CAD and
CAM.

• FCI will assist through capital participation (minority investment) throughthe acquisition of shares held by the current management team andothers and will also dispatch several executives to ZOO LABO.
• It will support ZOO LABO's further growth and business expansion, aiming
to contribute to the development of the dental industry as a whole. FCI
has already invested in ZOO LABO (December 2023).
Company name ZOO LABO Inc.
Head office

Kawasaki-shi, Kanagawa

Representative Yoshiki Kayoiji, Representative Director
Number of
employees

132

Business
description

・ Production of dental laboratory work
・ Dental laboratory work using CAD and CAM

Offices

Kanagawa (head office), Chiba, Osaka and Fukuoka
12

FY2023 Financial Results

Shareholder Returns: Dividend Policy- As stated in Notice of Revision of Dividend Policy released on December 27, 2022, the Company's dividend payout ratio is targeted at 40% of
net income attributable to owners of parent and the Company determines dividends based on cash-backed gains and losses excluding
accounting gains and losses on FCI that do not involve cash flows and the impact of unrealized losses on investment securities- The as-is payout ratio based on net income attributable to owners of parent of the entire group in FY2023 becomes 60.7%(JPY Mil.)

1,184[Dividends per share]
JPY 1,184 million × 40％÷ number of shares outstanding(11,726,000 shares/excluded treasury stock) ≒ JPY 41

13

FY2023 Financial Results

Results of Previous Medium-Term Management Plan (FY2021-FY2023; announced February 2021)- Targets under the FY2021-FY2023 Medium-Term Management Plan for net sales and ROE were achieved. The operating profit margin target
was not achieved, partly reflecting the startup of FCI activities

Target in the Medium-Term
Management Plan (FY2023)
Net sales

JPY 8.7 billion

FY2023
Consolidated
basis

Summary

JPY 10.0
billion• Target achieved due to active increase inpersonnel (105% of plan level※1), expansion ofsolutions, and increase in consolidated
subsidiaries

Operatingincome margin

20% or more

12.5％

• FMI non-consolidated operating income margin
was 17%• The consolidated operating income margin was
12.5%, falling short of target due to loss
associated with start-up of FCI

ROE※2

20% or more

23.5％

• Target was achieved through steady profit
growth and appropriate capital measures※1 Number of professionals increased to 369 versus FY2023 plan figure of 350※2 ROE = Profit attributable to owners of parent ÷ Shareholders' equity (average)

14

FY2023 Financial Results

Results versus Medium-Term Management Plan (FY2021 - FY2023) Vision- The goals set out in the previous Medium-term Management Plan were mostly achieved

Targets in the Medium-Term
Management Plan
Strive toacceleratevalue andgrowthProvide a
distinguishedsolution

Launchprincipal
investments

Increase of 40 employees a year
Expansion of coverage areas
Recruit experts withmarketing capabilities
DX consulting and other initiatives
Reinforcement ofcross-border consulting
Enhancing collaboration with
regional financial institutions
Growth through in-house M&A
Consulting business with capital

Reinforcing fund businesses※1,2: SA and SD stand for Senior Advisor and Senior Director respectively

Result• Hired around 40 employees a year according to plan
• Recruited experts with good sector coverage
Okino SA※1 (real estate and construction),
Akita SD※2 (automobiles and automotive components),etc.

〇• Encouraged efforts to tap into DX consulting demandthrough establishment of Digital Strategy Department• Assigned experts to Europe and ASEAN• Recruited from financial institutions and took on moretrainees〇• Formed capital and business alliance with Celebrain
Corporation (subsidiary)• Formed capital and business alliance with Athema (equitymethod affiliate)• Launched investment business through establishment of FCI
Fully operational from 2024△
15

Section 2

FY2024 Financial Forecast

FY2024 Financial Forecasts

Full-year Forecast Summary [Entire Group]

Entire Group- Our FY2024 forecasts are consolidated net sales of JPY 13.0 billion (up 30% YoY), consolidated operating income of JPY 1.6 billion (up 29%),
consolidated ordinary income of JPY 1.5 billion (up 27%), net income attributable to owners of parent of JPY 1.0 billion (up 28%), and numberof employees at end of year of 439- Consolidated operating income will increase 30% due to 14% operating income increase (excluding FCI) and FCI deficit decrease(JPY Mil.)FY2022 Results

FY2023 Results

FY2024 Financial
Forecasts

5,741

7,915

10,02513,000+2,975130%

Operating income

501

908

1,251

1,620

+368

129%

(Operating income margin)

(9%)

(11%)

(12%)

(12%)

(+0%)

－

Ordinary income

514

921

1,238

1,570

+331

127%

(Ordinary income margin)

(9%)

(12%)

(12%)

(12%)

(+0%)

－

Net income attributable toowners of parent

338

556

780

1,000

+219

128%

(Net income attributable toowners of parent margin)

(6%)

(7%)

(8%)

(8%)

(+0%)

－

Number of employees at endof fiscal year

255

335

369

439

+70

119%

(67%)

(58%)

(53%)

(54%)

(+1%)

－

FY2021 Results
Net sales(Personnel expense ratio)※Number of employees at end of fiscal year does not include number of employees at FCI's investees

YoY change(amount)

YoY change(ratio)17

FY2024 Financial Forecasts

Full-year Forecast Summary [Consolidation Excluding FCI]

Excluding FCI- FY2024 forecasts excluding FCI are net sales of JPY 11.8 billion (up 18% YoY), operating income of JPY 1.8 billion (up 14%), and net income
attributable to owners of parent of JPY 1.3 billion (up 13%)
- Since FMI will focus on hiring professional personnel and strengthening corporate functions, operating income growth is moderate(JPY Mil.)FY2021 Results

FY2022 Results

FY2023 Results

FY2024 Financial
Forecasts

5,741

7,898

10,003

11,800+1,796

118%

Operating income

501

1,097

1,639

1,870

+230

114%

(Operating income margin)

(9%)

(14%)

(16%)

(16%)

(△0%)

－

Ordinary income

514

1,112

1,641

1,860

+218

113%

(Ordinary income margin)

(9%)

(14%)

(16%)

(15%)

(△0%)

－

Net income attributable toowners of parent

338

748

1,184

1,340

+155

113%

(Net income attributable toowners of parent margin)

(6%)

(9%)

(12%)

(11%)

(△0%)

－

Number of employees at endof fiscal year

255

324

356

418

+62

117%

(67%)

(58%)

(53%)

(54%)

(+1%)

－

Net sales(Personnel expense ratio)

YoY change(amount)

YoY change(ratio)18

FY2024 Financial Forecasts

Personnel Plan
- An increase of 70 personnel across the FMI Group is planned in FY2024. In FY2024, there will be a particular focus on increasing personnel in
the Revitalization Support Business and M&A Advisory Business alongside a continued increase of personnel in the Management Consulting
Business(Persons)

500
450
400

Celebrain
セレブレイン
FCIManagement, other
管理・その他
M&A Advisory business
M&Aアドバイザリー事業

335

350

Revitalization Support business
再生支援事業300

Management Consulting
経営コンサルティング事業
business
255

23
11
44

41

59

55

19

250
200
150

62
23

73

47

26

100
50

369
26
13
43

439
33
21
47

133

183

202

218

2022

2023

2024

0
(FY)

2021

※FCI is expected to make one consolidated investment in FY2024 but the personnel plan reflects FCI personnel on a non-consolidated basis

Plan

19

FY2024 Financial Forecasts

Background to FY2024 Operating Income Growth Forecast- FMI's profit on a non-consolidated basis will increase due to growing demand for revitalization support and expansion of the digital consulting
field. Operating income on a consolidated basis is also expected to expand significantly with the full-scale operation of FCI's investment
business from the previous year (assuming that investment is made in one consolidated investment project in the fourth quarter of FY2024)(JPY Mil.)

＋

＋

1,620

＋

※See the Medium-term Business Plan for details of FCI's profit expansion20

FY2024 Financial Forecasts

Growing Demand for Revitalization Support and Development of System to Meet Them
- We will work to further strengthen the system to meet growing demand for revitalization support

Growing demand for support evident
in rise in number of bankruptcies(Projects)

15,00010,000Strengthening of system to meet demand and business expansion

Division(%)
Number of bankruptcies

35

YoY change (ratio)

30

Rapid increase in bankruptcies(bankruptcies following slump insales, labor shortages, zero-interest
loans with no collateral, etc.)

8,517 8,164 8,376

20
8,497

8,036 8,354 7,809
6,015

5,000

25

6,376

15
10

Organizational structure

Expansion of sales
Financialpersonnel at 2 sites ininstitutions
Tokyo and Osaka
Salespersons
Strengthening if
in charge collaboration with financial
institutions across Japan

FY20238
persons

FY2024
10

Revitalization
businessrelated
divisions

FY202385
persons

FY2024120

persons

5
0
-5
-10
-15
-20

0

Initiative-25

Strengthening of both
revitalization consulting
and M&A capabilities

Persons※※Number of personnel in revitalization business-related and M&A advisory divisions

2015 2016 2017 2018 2019 2020 2021 2022 2023
(year)

Source: Teikoku Databank21

FY2024 Financial Forecasts

Expansion of Digital Consulting- On the assumption of increased digitalization, the digital consulting market is expected to expand

Strengthening of system to meet demandand business expansion

Expansion of Digital and IT Consulting Market
CAGR(2021-2027)(JPY Bil.)

Over 1,500

1,600

1,200
1,000

Approx.
950.0

800

35

Business consulting in
the digital domain

25%

IT consulting

200

2021 2022 2023 2024 2025 2026 2027

(Year)

22

20
10

16
9

5
0

400

Number of personnel expected
to increase by more than 30%

25
15

600

0

(Persons)

30
Business consulting in▲4%other domains

1,400

Number of Personnel in Digital Divisions

2021

2022

2023

2024

(FY)

6%
Focusing on sales expansion/operational reform
support to expand domain of business valueenhancement using digital technology(e.g. sales expansion in e-commerce business)

Source: Prepared by Frontier Management based on data from IDC Japan
Note: IT consulting deals mainly with the development of IT systems, whereas digital-related business consulting deals with business using digital technologies.

22

FY2024 Financial Forecasts

Strengthening overseas structure- We will increase our overseas representatives and alliance partners, focusing on the US and Europe

Development ofcross-border advisory network
Expanding alliance partners andnetwork to provide cross-borderconsulting and M&A services
mainly in Europe, the US and
ASEANStrengthening of overseas sites
Developing European market
through Paris branch
Assigning representatives andrecruiting local talent at sites allover
the world
Singapore

Business expansion
through teamwork inJapan and overseas

Optimal advisory structure
for closely supporting clients
Forming the optimal team ofexperts both in Japan and atoverseas sites, to provide clientswith optimal solutions

23

FY2024 Financial Forecasts

Value of Orders Received in M&A Advisory Business- The value of orders received in the M&A Advisory Business at the end of last year is around 14% higher than the value of orders received ayear earlier when we received our largest ever project. Moreover, cross-border projects accounted for more than 60% of the total value

Trends in Value of Orders※ at End of Period in M&A Advisory Business and Net Sales(JPY Mil.)

3,500

3,000

Value of orders at end of period (domestic projects)
期末受注額（国内案件）

3,054

期末受注額（クロスボーダー案件）
Value of orders at end of period (cross-border projects)

2,356

2,500
2,125
2,000

Share of cross-border projects
62.7%

2,776 2,792

売上高
Net sales

1,922

1,881

1,600 1,581
1,500

1,742
1,356 1,352

2019

2020

1,949

+14 %

1,711

1,674

1,413

2,152

2,141

2,126 2,106

1,981 1,990

1,353

1,133
1,000
500
0
(FY)

2018
1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2021
2Q

3Q

4Q

1Q

2022
2Q

3Q

4Q

1Q

※Orders are based on net sales excluding outsourcing expenses and project referral fees. In some cases, contracts are not concluded for high probability projects.
Share of cross-border projects in the total value of M&A orders is shown from the third quarter of 2023 (cross-border project means that either the customer or thecounterparty in the negotiation is a foreign company)

2023
2Q

3Q

4Q

1Q

2Q

3Q

4Q
24

FY2024 Financial Forecasts

Weekly Trend in Total Value of Orders Received which will be Recognized
as Revenue during Current Fiscal Year [Excluding FCI]

Excluding FCI- Most recently, the value of orders received is comparable to the FY2023 level when we concluded a contract for our largest ever project(JPY Mil.)

Weekly Trend in Total Value of Orders Received which will be Recognized as Revenue (Net Sales※) during Current Fiscal Year

2023

9,000
8,000

2022

7,000

6,000

2021

5,000

2020
2019

4,000
3,000

2024

2,000
1,000

0
Finalized

Week 49

Week 45

Week 41

Week 37

Week 33

Week 29

Week 25

Week 21

Week 17

Week 13

Week 9Week 5

Week 1※Net sales exclude outsourcing costs and project referral fees.

25Section 3

FY2024-2026
Medium-Term Management PlanChapter 1 Frontier Management's Vision

Table of Contents

Chapter 2 Market Opportunities and Growth Strategies

Chapter 3 Strengthening of Frontier Management's Organization
Chapter 4 Plan Figures and Shareholder Return Policy

27

Chapter 1 Frontier Management's Vision

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

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

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

29

Frontier Management's Vision

Vision andValues- Global independent professional firm that provides optimal
services according to the business characteristics of clients andsupports the delivery of results that will enhance corporate value

Frontier Management's Values-

Pursuing the essence
Committed to the delivery of results
Leveraging diversity
Seeing the broader picture30

Outline of Growth Strategy- Improve corporate value by strengthening and nurturing the value creation
capabilities of our clients' management resources and delivering results in theform of the creation of new growth businesses
Ability to combine diverse expertise
Our Features

Outline of
Growth Strategy

Main points
forenhancing
corporate
value

Fully integrated
specialist services

Executives withhands-on CxOexperience

Strengthening andnurturing the value
creation capabilities ofcompanies' management
resources

Investment
capabilities

Creating new
growth businesses

31

1

Businessstrategies andstrengthening oforganization

Consulting and M&A advisory business:
Focus on solutions for strengthening and nurturing the value creation
capabilities of management resources- Provide fully integrated support for the formulation of business portfolio strategies, M&A
activities, and PMI- Improve productivity through hands-on support for digitalization- Develop full-spec support capabilities for revitalization projects spanning revitalization plan
formulation, hands-on support , investment and dispatch of CxO- Strengthen the global competitiveness of clients through fully integrated support for mid-cap
cross-border M&A deals and PMI- Support the formation of a leadership team and the development of executives to drive future
growth in accordance with management strategies

2

Investment business (FCI): Step up investment and establish new fund

- Strengthen investment business that will increase involvement in the delivery of results- FCI: Step up investment in local core companies and realize dramatic growth of investees- Establish new fund for new business creation

3

Strengthening of organization: Achieve discontinuous growth throughquantitative expansion, improvement of productivity and M&A- Hire 200 additional employees over the 3-year period (non-consolidated basis). Diversify
recruiting methods and achieve both quantitative expansion and greater efficiency- Significantly improve operational productivity through sophistication of knowledge DB,
generative AI, and BPO- Actively undertake M&A/alliances with companies with potential synergies
32

Chapter 2 Market Opportunities and Growth Strategies

FY2024-2026 Medium-Term Management Plan

Social Issues and Management Challenges Faced by Japanese Companies
Social issues are becoming even more complex. We will focus on the management challenge that Japanese companies are
falling behind the rest of the world financially
Increasingly complex social issues and management challenges facing Japanese companies
Increasingly complex social issues

Advance of
globalization andcomplex crises(polycrises)

Changes in thecompetitiveenvironment due todigitalization

Population decrease
and aging, rigid
labor market

GradualerosionManagement challenges faced by Japanese companies

Growing need to review businessportfolio and develop executives（includes overseas business）

Demands for the creation of
profitability through new growthbusinesses

Japanese companies are falling behind
the rest of the world financially34

FY2024-2026 Medium-Term Management Plan

Social Issues and Management Challenges Faced by Japanese Companies- Comparison of Listed Companies in Japan and US, Japanese companies are lagging behind
The market capitalization of Japanese companies is much smaller than the market capitalization of their US counterparts, Japanese companies
also show no business expansion compared to the past

Changes on US and Japanese stock markets (market capitalization is market capitalization excluding GAFAM)

Number of listed companies

Market capitalization of listed companies (excluding GAFAM)（Companies）

10,000Japan(End of 2023)
US: 5,704 companies
Japan: 3,935 companies

US

5,000

（B$）
10.0

（JPY Bil.)(End of 2023)

Japan（Right axis）
US: USD 6,835 million
US（Left axis）(Approx. JPY 960 billion)

Japan: JPY 220 billion

1,500

1,000

5.0
13 times than1990 level500

0.9 times
than 1990 level

0

1990

1995

2000

2005

2010

2015

2023 Year0.0＊Data in 2000 and 2001 aren’t exist

1990

1995

2000

2005

2010

2015

Source: Prepared by Frontier Management based on data from WEF and SPEEDA.
Note: Figure for Japan is the combined market capitalization of stocks listed on the Tokyo Stock Exchange and the Osaka Exchange (abolished), while the figure for the US is the combined market capitalizationof stocks listed on the NYSE and Nasdaq.

02023 Year35

FY2024-2026 Medium-Term Management Plan

Social Issues and Management Challenges Faced by Japanese Companies- Low Profitability and Business Portfolios of Japanese Companies

Japanese companies have lower profit margins than their US counterparts, and a breakdown shows that half have an
operating margin of less than 10%
Some might say that low profit business portfolio diversification is a drag on the growth of listed companies

Average operating margin of Japanese companies(Listed companies with market capitalization of
10 billion US dollars or more)

Operating margin distributionin all business segments※(Listed companies with market capitalization of
10 billion US dollars or more)

(%)

100

25
21.8

20% or higher

20
15

24.1%
48.0%

14.2

10

From 10% to less than 20%

27.5%

From 5% to less than 10%

23.4%

5
Less than 5%

0100

Japan (114 companies)

US (572 companies)

Source: Prepared by Frontier Management based on data from FactSet
Note: Extracted business segments of companies whose most recent market capitalization is 10 billion US dollar or more and whose
operating margin in the most recent fiscal year was between -100% and 100%.

25.0%

26.7%

12.0%
13.3%

Japan

US

114 companies,
448 segments

572 companies,
1,205 segments
36

FY2024-2026 Medium-Term Management Plan

Social Issues and Management Challenges Faced by Japanese Companies- Need for Dispatch or Development of Executives

In Japan, most of CEOs have no experience at other companies. In addition, there are few people with “management” experience.
These characteristics of Japan's labor market lead to demand for the dispatch and development of executives or demand forhands-on consulting
Attributes of CEOs newly appointed in 2022
Ratio of internallypromoted CEOs

Professional experienceat other companies

Skills held by CEOs in 2019（％）
100

Externally recruited CEOs

80

8.2%
(24)

91.8%
(268)

90
70

70

No

61.3%
(179)

38.7% Yes
(113)

Internally promoted CEOs

60

63

50
40

39

46
39

30
20

15

10
0
Source: (Left) Independent survey conducted by Frontier Management of more than 290 companies that had a changeof president in 2022 identified through Nikkei Value Research(Right) Prepared by Frontier Management based on data provided by Commercial Law Review

13
3Management

Overseas

BUsiness

Corporateplanning

Sales

HR
management
and generalaffairs

Finance

Legal affairs

37

FY2024-2026 Medium-Term Management Plan

Frontier Management' Growth Strategies
Management challenges faced by Japanese companies

Growing need to review businessportfolio and develop executives(includes overseas business)

Operating divisions

Sophistication of hands-on, fully integrated solutions

BtoB/BtoC Consulting

Hands-on support for DX

Digital Strategy

Priority
themes ineach business

Cross-border Consulting
Corporate Value Strategy
Management Executive Support
M&A advisory

Celebrain

Frontier
Management's
Features

Demands for the creation of
profitability through new growthbusinesses

Fully integrated
specialist services

Hands-on support for new businesses

Dispatch of CxO depending on client's growth phase
Full-spec revitalization support(from plant formulation to hands-on consulting/investment)
Regional revitalization support
Support at every stage from business portfolio strategy
to M&A and PMI
Fully integrated support for mid-cap, cross-border M&A and PMI

Investment Business• Strengthen
investment in local
core companies• Venture investment
aimed at new
business creation

HR strategy, executive development, reform of organizational culture

Executives with handson CxO experience

Investment capabilities

Ability to combine diverse expertise38

FY2024-2026 Medium-Term Management Plan

Consulting and M&A Advisory Business- Strengthen Solutions: DX Hands-on Support
We will improve our clients' profitability and productivity through hands-on support from the management reform phase through to digitalstrategy and digital operations reform phases

Hands-on support for DX
Digital strategy reform phase

Management
reform phase

Support forbusiness growthand sales
expansion

Support for DX of
business baseSupport forenhancement ofdigital assets

Digital operations reform phase

Business growthstrategy/Marketing DX strategy

Sales and marketing
process reform

Implementation ofmarketing measures

Design of customer experience/
UI for realizing strategy

Development of datautilization platform

Support for big data analysis

Creation of new digital business

DX_PMO

Corporate DX strategy

Corporate process reformEnterprise system reform

UX/DX organizational design

IT organizational reformBPO (CoE/SSC)

Dispatch of CDO/DX
human resources

Adoption of AI anddigital technologies/
Development of governance39

FY2024-2026 Medium-Term Management Plan

Consulting and M&A Advisory Business- Strengthen Solutions: Full-spec Revitalization Support
We will provide full-spec revitalization support including not only formulation of revitalization plan, dispatch of CxO and hands-on consulting
but also investment

FMI's revitalization support total package
Formulation ofrevitalization plan, etc.

Dispatch of CxO andhands-on consulting

Revital Fund

Emergency responseLP• Understanding of content
of profit/loss plan
• Discussion ofrevitalization scheme• BDD and FDD• Formulate a businessrevival plan

Search for sponsor
and FA

Investment

Fully-integrated support

DD and plan
formulation

Turnaround manager

Financial
institutions

FMI

Investment

GP

Dispatched as CxOFinancial
institutions
LP
investment

Investment

Targetcompany

Targetcompany

Targetcompany✓ Support for management
reform in revitalization phase✓ Flexible hands-on support

Investment limited
partnership (LPS)

Targetcompany

Targetcompany

Targetcompany40

FY2024-2026 Medium-Term Management Plan

Consulting and M&A Advisory Business- Strengthen Solutions: Support for Regional Revitalization
We will leverage our regional financial institution network to contribute to regional revitalization by realizing the sustainable growth of local
core companies

Major management challenges
faced by local core companies

Frontier Management's support structure

Frontier
Management
Inc.

Network ofregional financial
institutions

Action to address
management challengesof local core companies

Shortage of executives

Realignment of business portfolio
for growth
Low productivity

Solutions provided• Development and introduction of
executives• Dispatch of CxO• Hands-on support for DX• Investment in local core companies• Business matching across areas

Regional economic decline

Solve challenges faced by local corecompanies and deliver results in theform of sustainable growth
Contribute to regional revitalization
41

FY2024-2026 Medium-Term Management Plan

Consulting and M&A Advisory Business- Strengthen Solutions: Mid-cap, Cross-border M&A and PMI
We will gather information on attractive M&A deals around the world and support cross-border M&A and PMI , with emphasis on mid-cap
targets
Representativein Europe

Paris

CFI

Athema

CFI
Representativein North America

Shanghai

Local partner firm

VietnamSingapore

New YorkJapan
Representativein ASEAN

Local partner firm

Development of structure enabling amassing of information from around the world in Japanand development PMI after acquisitions
Provision of attractive mid-cap, cross-border M&A opportunities to Japanese and overseas companies
Consulting team
M&A advisory team Fully integrated support including PMI
Consideration of
M&A strategy

Execution of
M&A

Preparation forcompletion of
acquisition

PMI and hands-on
consulting

Representative
Partner firm
42

FY2024-2026 Medium-Term Management Plan

Consulting and M&A Advisory Business- Strengthen Solutions: Executive Development and Organizational Culture Reform
We will also further strengthen solutions in terms of HR strategy, executive development and organizational culture reform, in collaboration
with Celebrain

Fully integrated solutions for realization of management strategies-in collaboration with Celebrain

Management
strategy

Growing interest in
human capital due todisclosure requirements

Formulation of
HR and humancapital strategy

M＆A andexternal collaboration
Business operations
and executives
Organizational culture

Changes in external
environment

HR PMI

Executive
development and
HR development

Celebrain's
support areas

Reform oforganizational
cultureGrowing demand for new
HR design in connection
with M&A
Shortage of managementhuman resources43

FY2024-2026 Medium-Term Management Plan

Investment Business - Strengthening Policy- Whilst strengthening the Consulting and M&A advisory business, we plan to establish new funds with diverse investment policies

Consulting and M&A advisory business

Hands-onconsulting

Investment BusinessBusiness
succession andregional
revitalization

CxO dispatch

Business
revitalization
Revitalization
support

M&A

Strengthening the profitability of local core companies
and supporting the creation of new growth businesses

VentureFCINanto Capital joint fund
New Revital Fund

New

New
New fundSupporting the creation of
new growth businesses

44

FY2024-2026 Medium-Term Management Plan

Investment Business - FCI's Growth Strategy- FCI will continue to identify and implement investment projects that will contribute to regional revitalization, etc

Investment
concept

To contribute to the revitalization of local economies by
supporting the resolution of management issues from along-term perspective through the investment of
human resources, know-how and money in various
companies facing management issues. This approach is
not limited to specific industries, areas or industries.
• Supports sustainable improvement in corporate value
through medium- and long-term investment

Portfolio strategy formedium- and long-term expansion
Expansion into newindustrial domains
Application of know-how
gained in industries alreadyinvested in to other industries

Value
enhancementof existing
investments

New
investments

Existing
investments• Provides hand-on support through resident
Characteristics
consultants and provides management executives

FY2024 targets• Also actively considering non-consolidated
investment projects (minority investments)

Example (2): Dental technology→ Healthcare

Expansion into new
business domains• Excels at developing and implementing businessstrategies• Aiming for early implementation of one consolidated
investment (majority investment)

Example (1): Civil engineering andconstruction → Infrastructure

Expansion of value chain within
industries already invested inContribution toregional revitalization

Expansion into new regions
Regional expansion of existing
investment for the purpose ofregional revitalization

45

Chapter 3 Strengthening of Frontier Management's Organization

FY2024-2026 Medium-Term Management Plan

Acceleration of Value and Growth and Improvement of Productivity- We achieved our goal of accelerating value and growth through active recruitment. Going forward, our priorities are (1) diversification ofrecruitment methods and (2) creation of a comfortable workplace environment

Number of Frontier Management group employees

Future priorities(Persons)

500

450

FCI

400

Celebrain

350

335

300
250
200

227

Diversification ofrecruitment methods

FMI

257

177

150

Creating a comfortableworkplace environment

Achieved goal of accelerating value and growthPlan to continue increasing number of personnel
going forward

100
50
0

369

2019

2020

2021

2022

2023

2026

(FY)

47

FY2024-2026 Medium-Term Management Plan

Diversification of recruitment methods- FMI formed a cross-functional recruitment and development team to deploy diverse recruitment methods and carry out a continual review of
the recruitment process
We will also seek to reduce recruitment costs by bringing recruitment in-house through direct recruitment and encouraging use of Celebrain

Use of agentsContinuous review ofrecruitment process

Formation ofcross-functional
recruitment anddevelopment team

BeforePromotion of referrals andrecruitment of alumni
Deployment of FMI's own
recruitment staff and implementationof direct recruitment
Utilization of Celebrain's HR
development capabilities

An increase in the recruitment of
new graduates

Experts

Inexperiencedhuman
resourcesNew
graduates48

FY2024-2026 Medium-Term Management Plan

Creating a Comfortable Work Environment
We will hold "DE&I Promotion Committee" meetings across the Group. With reference to the ideas raised here, we will create a work
environment in which importance is attached to "growth opportunities for realizing career vision" and "diverse working styles according tolifestyle."

Growth opportunities
for realizing career vision

Diverse working styles
according to life style

System of support for transfer between
departments(enhancement of internal DX, consolidation ofoperations, external resource utilization)

Productivity improvement

Participation in cross-departmental
practice teams

Flextime system

Work at various locations in Japan andoverseas

Remote working system

Enhancement of HR training system

Training related to DE&I

Establishment of Working Style Reform
Promotion Section

Babysitter subsidies and partner childcare
centers

Living support for non-Japaneseemployees

Medical checkups for all employees

49

FY2024-2026 Medium-Term Management Plan

Strengthening of M&A and Alliances
We will actively undertake M&A/alliances with companies with potential synergies to strengthen our capabilities and accelerate the growth of
the FMI Group

PurposeReinforcement
domains

Revitalization support

Hands-on consulting/
CxO dispatch

M&A advisory

Expansion of structure forfull-spec revitalization
supportExpansion of DX hands-on
supportExpansion of mid-cap, crossborder M&A

Launch of Revital Fund incollaboration with financial
institutions

Enhancement of DX
consulting resources
External collaboration in
cutting edge technology
domains

Strengthening of crossborder network throughcollaboration with overseas
consulting and M&A firms(including CFI)

50

Chapter 4 Numerical Targets and Shareholder Return Policy

FY2024-2026 Medium-Term Management Plan

Targets in the Medium-Term Management Plan
- We plan to achieve net sales of JPY 16 billion and ordinary income of JPY 3.2 billion, excluding FCI, by FY2026. FCI's consolidated investment
projects will also contribute to profit, and the ordinary income of the entire group will expand to JPY 3.5 billion
Targets in the Medium-Term Management Plan

(JPY Bil.)

350
35
300
30

20%

Ordinary income margin

14%

250
25

14%

14%
12%

11%

200
20

16%

150
15

7.0

16.0

50
5
(FY)

4.7

4.8

5.2

5.7

2018

2019

2020

2021

FCI (Entire Group)
FCI(連結)Excluding FCI
除FCI連結

7.9

18%
13%
8%

10.0

-2%
-7%

2022

FY20232023

Ordinary income margin(Entire Group)

経常利益率(ALL連結)

2026
Plan

Ordinary income margin(Excluding FCI)

経常利益率(除FCI連結)(JPY Bil.)
FY2026

Net sales

10.0

23.0

Ordinary income

1.2

3.5

Net income※

0.8

2.4

3%

Net sales

100
10

0

15%

12%

9%

Entire Group(%)

Excluding FCI
FY2023(JPY Bil.)
FY2026

Net sales

10.0

16.0

Ordinary income

1.6

3.2

Net income※

1.2

2.3

※Net income above means net income attributable to owners of parent.

[Conditions]• Entire group means consolidated income or loss of all group companies including FCI and its consolidated investees. Excluding FCI means consolidated income or loss excluding FCI and its consolidated investees.
• FCI is expected to make one consolidated investment in FY2024. FCI will consider consolidated investments in FY2025 and FY2026 as well but these are not included in the plan.
• With respect to Athema in which we hold a 40% stake, we have the option to acquire an additional 20% stake but our income projections do not reflect exercise of this option.

52

FY2024-2026 Medium-Term Management Plan

Medium-Term Management Plan: Ordinary Income Forecast (Entire Group）- The FY2026 ordinary income forecast for the entire group is JPY 3.5 billion, based on projections that the ordinary profit of FMI and Celebrain
will increase by JPY 1.5 billion and JPY 0.1 billion respectively from the FY2023 level, that FCI will also achieve profitability, with a profit
contribution of JPY 0.4 billion and that FCI's consolidated investees will also make a profit contribution of JPY 0.4 billion- As a result of the consolidated investments and non-consolidated investments that FCI will make between now and 2026, monetization of
the investment business through the dispatch of management executives to investees is expected to be achieved to some extent at an FCI
non-consolidated level

Breakdown of Ordinary Income Growth from FY2023 to FY2026（JPY Bil.）

40
35

+0.4

30

+0.1

25
20

▲0.1

+0.4

+1.5

3.5

15
10
5
0

1.2
FY2023

FMI

Celebrain※Other includes anticipated goodwill amortization in connection with FCI's investments

FCI(non-consolidated)

FCI(Consolidated
invests)

Others※

FY2026plan
53

FY2024-2026 Medium-Term Management Plan

Personnel Plan
- We will continue actively recruiting, with a planned increase of 200 personnel on an FMI non-consolidated basis

Personnel Plan in FY2026(Persons)

700
600

セレブレイン
Celebrain

620

FCI (non-consolidated)
FCI(単体)

50
40

FMI

500
369
26

400
300

13

530

200

330

100

Increase on 200
Personnel on an FMI
non-consolidated basis

0

2018

2019

2020

2021

2022

2023

[Assumption]
FCI is expected to make one consolidated investment in FY2024 but the personnel plan reflects FCI personnel on a non-consolidated basis

2026

(FY)

Plan

54

FY2024-2026 Medium-Term Management Plan

Long-term Business Portfolio Expansion- We will incorporate cross-border M&A and investment businesses that require a great deal of capital into the portfolio, aiming for a further
leap in growth potential and profitability

Current business portfolio

ProfitabilityHigh

Key: Size ofcircle represents
scale of profit

M&A advisory

Dispatch of
CxO

M&A
AdvisoryHigh

Consulting(including handson support)

Consulting(including hands-on
support)MediumFuture business portfolio

Profitability

Crossborder
M&A
Advisory+
PMI

Key: Size ofcircle represents
scale of profit

Investment
Business

MediumRevitalization
support

Dispatch of CXORevitalization
supportInvestment business is very
volatile in terms of profitability
and time to profitability

Short term

Medium termLong termTime toprofitability(size of capitalneeded)Short term

Medium termTime toLong term profitability
55

FY2024-2026 Medium-Term Management Plan

Main KPI (FY2026) and Shareholder Return Policy

Entire Group's ordinary income

Consolidated ordinary income
margin excluding FCI
ROE※1

JPY 3.5 billion or more
[Shareholder Return Policy]

20% or more
Maintain at least 30%

Reference: WACC※2 of 8% at end of 2023

Number of consolidated
employees (excluding FCI's
consolidated investments)

620 or more

Investment business
Number of investments andamount of investment

8 (2 consolidated investments)
JPY 15 billion

Number of CxOs dispatched* While the goal is two consolidated investments, only one
is factored into the numerical plan targets• Our basic policy is to continue to pay stabledividends, while securing the retained earnings
necessary to expand our future business andstrengthen our management structure.

• Our dividend payout ratio is targeted at 40% of
net income attributable to owners of parent and
we determine dividends based on cash-backed
gains and losses excluding gains and losses on
FCI that do not involve cash flows and the impactof unrealized losses on investment securities

50 or more/year※1 ROE = Net income attributable to owners of parent ÷ Shareholders' equity (average)※2 WACC is our weighted average cost of capital. Calculated based on risk free rate of 0.75% and market risk premium of 6% and assuming our beta value is 1.2 andwe have zero interest-bearing debt.

56Section 4

Corporate Profile

Corporate Profile

Background to Establishment of Frontier Management
Shoichiro Onishi

Masahiro Matsuoka

Representative Director,
President and Executive Officer

Director of the Board• Registered as attorney and joined law offices of Okuno &Partners
Appointed as a partner in 1997

• Acted as trustee representative, etc. in corporate
reorganization of Nippon Lease Co., Ltd., LIFE Corporation
and Taisei Fire and Marine Insurance Company, Limited• Joined UBS Securities Japan Ltd. after working at Nomura
Research Institute, Ltd. and Barclays Bank PLC
Appointed concurrently as Head of Equity Research andManaging Director in 1999
• Worked as securities analyst focusing on distribution
industry for more than 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 200758

Corporate Profile

History
2007
2011

2012
2014
2017

2018
2019

2020
2022

2023

Established the Company
Established a Chinese subsidiary (Frontier Management (Shanghai) Inc.)
Opened the Singapore Branch to strengthen cross-border M&A
Opened the Nagano Branch and the Osaka Branch to realize community-based management
support services

Opened the New York Branch to strengthen cross-border M&A
Launched the fund business to provide financial support services to customers
Made investments in first fund projects
Listed on TSE Mothers Section
Opened the Nagoya Branch to expand the service area
Listing switched to the TSE First Section

Formed a capital and business alliance with Celebrain Corporation
Established Frontier Capital Inc.
Shifted to the TSE Prime Market
Formed a capital and business alliance with Athema, a French firm
providing M&A advisory services

59Corporate Profile

Organizational Chart for Directors
Frontier Management Inc.
Consumer Strategy & Operation Department
Industrial Strategy & Operation Department
Professional Service Department
Value Creation Platform Department

Representative Director, President andExecutive Officer

SHOICHIRO ONISHI

Representative Director

Director of the Board

MASAHIRO MATSUOKAManagement Executive Support Department
M&A Advisory Department

Marketing Division
Business Development Department
Industry Research Department
Company Planning and Administration
Department

Branches

Director of the Board, Deputy
President and Executive Officer

TADAAKI KOMORI

Director of the Board

MASAO NISHIHARA

Outside Director of the Board Outside Director of the Board

KAZUHITO OSUGIKEIKO UNOTORO

Subsidiaries and Affiliates

Osaka
BranchNagoyaBranchFrontier Management(Shanghai) Inc.

Frontier Capital Inc.

Fukuoka
BranchSingapore
BranchCelebrain Corporation

FCD Partners Inc.

New York
BranchParis
BranchAthema60

Corporate Profile

Our Business and Services

Overall PictureManagement
Consulting• Business analysis and strategy
formulation• Business due diligence (BDD)• Medium-term business plans andmanagement, finance, and businessstrategies• Support for drafting/reform of DX
strategy• Support for corporate value
improvement- SR/IR strategy and responses to activist
shareholders- ESG/SDGs strategies and climate change
actions- Promotion of diversity and inclusion (D&I)• Support in implementing plans• Support for governance, complianceand risk management

Management
Executive Support• Management execution support
including dispatch of CxO• Domestic and overseas PMI support
based on hands-on approach• Support for management reforms forbusiness revitalization

M&A Advisory

Management
Consulting

M&A
Advisory• M&A deal advisory (including crossborder M&As)- Drafting of strategies, preparation of longlists,
and approach of target companies- Corporate valuation- Support for contract negotiations and closing• Post M&A consulting (PMI)• Business succession consulting

Management
Executive
SupportBusiness
Revitalization

Investment

投資事業• Investment and management executive
aiming for enhancing long term andsustainable customer’s corporate value• Investment fund development andoperation with financial institutions orcompanies

Business
Revitalization• Support for rehabilitation procedures• Emergency PMO management
support• Support for business and financial
restructuring• Support for the adjustment ofinterests among stakeholders
61

Corporate Profile

Frontier Management's Characteristics: Diverse Customer Groups
Providing services to companies in diverse industries(Breakdown of projects)

IT

1%

Other

9%

Retail and wholesale
16%

Finance

12%

Infrastructure

Restaurant and services

7%

17%

Consumer goods manufacturers
6%
Industrial goods manufacturers
32%

FY2023 Results

62Corporate Profile

Frontier Management's Characteristics: Provision of optimal solutions through combination ofdiverse expertise
Main domain: ✓Our main capabilities and solutions

Sector-specificconsulting

Companies'
management agenda※
Optimized businessportfolio

Capability-specificconsulting(DX, cross-border, corporate
value enhancement strategy,
etc.)✓
Improvement ofreturns※Based on Tokyo Stock Exchange data

Investment

✓

✓

✓

✓

Operational reformDX

Marketing reform

DX

M&A
Revitalization consulting Dispatch of CxORevitalization consulting
Medium- and long-term value enhancement
Revitalization FA
through investment + CXO dispatch
Revital Fund investment + CxO dispatch

Cross-border consulting
M&A strategy

Strengthening
the organization

Enhancing governance

Strengthening ofshareholder returns

Dispatch of CxO✓Revitalization consulting

CxO dispatch

✓

✓

✓

Human capital management consultin

GRC consulting

Dispatch of CXOInvestment in human capitalStrengthening of IR

Revitalization
SupportGrowth strategy consulting

Investment in growth

Sustainability measures

M&A Advisory

Operational reform

M&A

PMI

Personnel system design

Sustainability measures consulting

Review of
response tocapital markets

✓

✓

✓

Sophistication of capital cost management
Investor engagement

FMI provides best solutions
for customer by combining
our various expertise

Strategic delisting through MBO[FMI's framework combining diverse expertise ]Company-wide offsite meetings, company-wide study groups,
system of interdepartmental transfer system, practice teams
63

Corporate Profile(Reference) Creating a Comfortable Workplace Environment- Enhancement of HR Training System
We will continue to develop a training system that enables diverse human resources to grow as professionals

Off-JTOJTManager orsupervisor

Dispatch of CxO
to clients

Support for
self-improvement
Support for
acquisition ofqualification

Secondment tooverseas locations
and partnercompanies

language learning
supportProject OJTSupport forparticipation inseminars

OthersIn-house/Utilization of external resources
Compliance training
Management training

Harassment

Skillsdevelopmenttraining
Mid-career
training

New graduate
training

Insider trading

Unconscious biais
Online training(Udemy, etc.)

Antisocial forces
Information security

64

Corporate Profile(Reference) Creating a Comfortable Workplace Environment- Further Improvement of Productivity
We will further improve productivity through measures such as enhancing internal DX, pooling knowledge across the company, consolidating
operations, and utilizing external resources

Marketing

SFA/CRM

Enhancement ofinternal DX

Centralization of information andenhancement of sales

Project execution

Accumulation of knowledge

Knowledge database andgenerative AI

Improvement of searchability and centralization of
relevant information

Communication app and project management app
Improvement of productivity of sales activities and project execution

Pooling of
knowledge acrosscompany
Consolidation ofoperations andutilization of
external resources

Talentmanagement
database
Visualization ofinternal skill map

Cross-departmental practice teams

Improvement of productivity and quality of sales activities and project execution

BPO and research/practice teams (Japan and overseas)
Improvement of productivity through division of labor in areas
such as research and slide preparation

65

Corporate Profile

AthemaThe Company formed a capital and business alliance with Athema, a French firm providing M&A advisory services,in July 2023. We are conducting activities with the FMI Paris branch to step up project development
Examples of sectors covered

Corporate Profile
Company name

Athema (Registered trademark: AT Conseil)

Established

2001

Representative

Antema SAS(Representative of Antema SAS: Jean-Marc Teurquetil)

Address

Paris, France

Number of
employees

16 (As of January 1, 2024)

Business
description

Provides M&A advisory services mainly to clients in the
manufacturing, IT, business services, food and beverages, retail,energy, real estate, aviation, healthcare and life science sectors.

Automobile

Food andbeverages

Sectors covered by Jean-Marc
Teurquetil, 6 directors with industry
insights and 6 senior advisors with astrong customer network

Retail andconsumer goods

Jean-Marc Teurquetil's background
•
•
•
•
•

Has expertise in advisory services for the aviation, logistics, food &beverages and PE funds
Engaged in derivatives business at Credit Lyonnais for 7 years
Became general manager of BNP FinanceAppointed as president of independent brokerage firm Aurel Leven in
1996 and sold to Cantor Fitzgerald in 2006
Established Athema and currently engaged in M&A advisory services

IT software

Healthcare andlife science

Energy66

Corporate Profile

Celebrain Corporation
In 2022, FMI Celebrain concluded a capital and business alliance with Celebrain. Celebrain expands HR consulting business by utilizing FMI
network
Human Resources segments covered

Corporate Profile
Company name

Celebrain Corporation

Established

2000

Representative

Koji Takagi, Representative Director, President
Atsuko Takahashi, Representative Director, Vice President

Address

2-11-1, Nagatacho, Chiyoda-ku, Tokyo

Number of
employees

26 (As of December 1, 2023)

Business
description

•
•
•
•
•

Human Resources Strategy Consulting
Human development and training
Human Resources technology
Human Resources investigation and evaluation
Recruiting professionals

HR Strategy
Consulting• Human resources and organization strategy
consulting (e.g. Reconstruction of thepersonnel system)

IPO・M&A
Consulting• The personnel system integration andcompany policy revision along with M&A
and IPO

HR
Technology

Recruiting
Professionals

Human development
And Training• Optimized talent management system withvarious HR application and software• Finding suitable CxO and professionals forthe company• Establishing human training system,
organizing business skills training anddeveloping e-learning applications

67

Corporate Profile

Frontier Capital Inc.
FCI was established in 2022. Based on the business concept of contributing to regional revitalization, FCI invests
in local core businesses and provides them with capital through joint funds
Business Concept

Corporate Profile
Company name Frontier Capital Inc.
Established

2022
Shoichiro Onishi, Representative Director, President, CEO and COO
Masahiro Matsuoka, Representative Director

Address

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

Number of
employees

23※ (As of December 1, 2023)

Verifyinginvestments

Business
description• Screening• Decision on policy

Makinginvestments• Project
negotiations• DD

Enhancing
value

Exit

• Business execution • M＆A• IPO• Strategy
implementation• Formation and management of joint investment funds withfinancial institutions, business companies, etc.

Common issues facedby regional areas• Execution of investment and management for the purpose of thelong-term, sustainable enhancement of corporate value of
portfolio companies

Common issues faced
by individual companies

Representative

Business environment
perception
Management executive
difficulties (uneven
distribution of people)

Low productivity(uneven distributionof technology)
Insufficient alliancesacross areas (uneven
distribution ofbusiness)
Decline of regional
areas as a result of
shrinking population,etc.

Economic stagnation
caused by COVID-19
pandemic

Our role

Contribution toregional revitalization
Realizing the sustainable growthof local core companies by
providing long-term solutions to
issues faced by industries,
areas, sectors, etc.

"True" business reforms
through long-term
investment/Realization of IPO
Deployment/ development ofprofessionals/ management
executives (people matching)
Matching of businessacross areas

Sophistication andmatching of technologies

Credit enhancement
as listed company

FCI
Partnercompanies

GP investment※Including loaned employees from FMI

Joint funds

Provision of capital
Dispatch of humanresources, etc.

Investees68© 2024 Frontier Management Inc.