October 13, 2023
To AllCompany Name

Frontier Management Inc.

Representative

Shoichiro Onishi,
Co-President & Executive Officer(TSE First Section Code No. 7038)

Contact

Hiroaki Hamada,
Executive Officer, Head of Company
Planning and Administration Department(TEL．+81-3-6862-8335)

Notice of Change in Shareholder Benefit Program (Expansion)
Frontier Management Inc. (hereinafter "FMI") has resolved at the Board of Directors meeting held today to change(expand) the shareholder benefit program, and hereby announce it as follows.
Notation
1. Purpose of the change to the shareholder benefit programFMI thank our shareholders for their day-to-day support, and since June 2021 FMI have been offering shareholder benefits
through the Frontier Management Premium Benefit Club. The shareholder reward points system will be changed with the aimof increasing the attractiveness of our investment in stocks and returning profits to shareholders who hold our shares over themedium to long term.
2. Target shareholders
From 2023 onwards, shareholders who hold one unit (100 shares) or more at the end of December and June every year
3. Changes in shareholder benefit program
Shareholder gift points will be presented in accordance with the number of shares held and the number of years theshareholder has continuously held, as shown in the Shareholder Benefit Point Table. The list of shareholders as of December
31, 2023, is applicable.
Shareholder Benefit Point Table (1 point ≒ ¥1) * Underlined where the change was madeNumber of shares held

Holding for less than 3 years (A)Continuous holding for 3 years or more (B)Twice a year

Twice a year(the end of December and the end of June)(the end of December and the end of June)100 ～199 shares

1000 points

1100 points(A)+ 100 points

200 ～299 shares

2500 points

3000 points(A)+ 500 points

300 ～399 shares

2500 points

3000 points(A)+ 500 points

400 ～499 shares

2500 points

3000 points(A)+ 500 points

1500 ～

599 shares

6500 points

8000 points(A)+ 1500 points

600 ～699 shares

6500 points

8000 points(A)+ 1500 points

700 ～799 shares

6500 points

8000 points(A)+ 1500 points

800 ～899 shares

6500 points

8000 points(A)+ 1500 points

900 ～999 shares

10,000 points

13,000 points(A)+ 3000 points

1,000 ～

1999 shares

14,000 points

18,000 points(A)+ 4000 points

2,000 More than shares

40,000 points

50,000 points(A)+10,000 points

Exercise conditions: From 2023 onward, each shareholder shall be listed as a shareholder holding one unit (100 shares) or morein the shareholder register on the last day of December and the last day of June each year.
Carry-over conditions: Only if the same shareholder number is listed in the shareholder register two or more times
consecutively on the last day of the following June and on the last day of December (up to three times). If theshareholder number is changed by the vesting date on the last day of June and the last day of December, theshareholder benefit points will expire.
Long-term holdings: "Continuous holdings (B) for three years or more" must be recorded at least seven consecutive times withthe same shareholder number in the shareholder register on the last day of June and December of each year.
In the case of shareholders on the last day of December 2023, shareholders must be listed in the same shareholder
register on the last day of December and June of each year, counting from the last day of December 2020, withthe same shareholder number.
(NOTE) The number of points is the number of points awarded for one time.
(Shareholder Benefit Point Table before change)
Number of shares held

End of June

December 31

100 ～199 shares

1000 points

1000 points

200 ～299 shares

1500 points

1500 points

300 ～399 shares

2000 points

2000 points

400 ～499 shares

2500 points

2500 points

500 ～599 shares

3000 points

3000 points

600 ～699 shares

3500 points

3500 points

700 ～799 shares

4000 points

4000 points

800 ～899 shares

4500 points

4500 points

900 ～999 shares

5000 points

5000 points

5500 points

5500 points

1,000 More than shares
4. Information on replacement method, etc.

FMI plan to send a shareholder incentive letter to target shareholders. For details, please refer to the relevant guide.
Questions and inquiries regarding Frontier Management Premium Benefit Club
Frontier Management Premium Benefit Club Help Desk
TEL:0120-980-965 hours: 9:00 a.m. to 5:00 p.m. (excluding Saturdays, Sundays and holidays)2

[Reference] FMI’s Shareholder Returns
FMI return profits to shareholders through the "distribution of surplus" and the "shareholder benefit program."① Dividends of surplus;
Regarding our dividend policy, as announced on December 27, 2022, the dividend payout ratio is set at 40% of consolidated
net income (net income attributable to owners of the parent), excluding consolidated subsidiary Frontier Capital Inc. ("FCI"),in light of our consolidated results of operations, financial position, economic conditions, and other factors.
In the "Consolidated Earnings Forecast for the Fiscal Year Ending December 31, 2022 (January 1, 2023 to December 31,2023)" in the "Consolidated Financial Results for the Fiscal Year Ending December 31, 2022 [Japanese GAAP](Consolidated)" announced on February 10, 2023, net income attributable to owners of parent for the Fiscal Year Ending
December 31, 2023 is expected to be 700 million yen. However, as described on page 19 of the "Financial Results for the Fiscal
Year Ending December 31, 2022" on our website on the same date, net income attributable to owners of parent excluding FCI
is expected to be 1 billion yen.
Accordingly, our total year-end dividend is calculated by multiplying net income attributable to owners of the parent of ¥1billion excluding FCI by a dividend payout ratio of 40% in accordance with the above dividend policy.
The year-end dividend for the fiscal year ended December 2023 will be announced after the results for the fiscal year ended
December 2023 are finalized.
② Shareholder special benefit plan
FMI offer shareholder benefits through the Frontier Management Premium Benefit Club.
FMI recently expanded our shareholder special benefit point program with the aim of increasing the attractiveness of ourinvestment in stocks and returning profits to shareholders who hold our shares over the medium to long term.
Going forward, FMI will continue to expand our benefit program, including the introduction of special benefit products thatare attractive to shareholders.

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