Consolidated Financial Results for the 3Q of the Fiscal Year Ending December 31, 2021
[Japanese GAAP]
November 12, 2021
Listed company name Frontier Management Inc.
Listed Tokyo Stock Exchange
Code number7038
URL https://www.frontier-mgmt.com/
Representative Director, Co-President andRepresentative(Title)(Name) Shoichiro Onishi
Executive Officer
Executive Officer, Head of Company
Contact person(Title)(Name) Hiroaki Hamada TEL 03-6862-8335
Planning and Administration Department
Scheduled date of
Scheduled date to file Quarterly
November 12, 2021
commencement ofSecurities Report
dividend paymentPreparation of supplementary material onquarterly financial results: Yes
Quarterly results briefing: Yes(for institutional investors and analysts)(Amounts are rounded down to the nearest million yen.)
1.Quarterly consolidated results for FY2021 3Q (January 1, 2021-September 30, 2021)(1)Consolidated Operating Results (Cumulative)(Percentages indicate year-on-year changes.)
Net sales
JPY Mil.
3,892
3,495

FY2021 3Q
FY2020 3Q(NOTE)FY2021 3Q
Comprehensive income

Operating income%
11.4
11.1

JPY Mil.
76116

47JPY Mil. (△33.7%)

Ordinary income%
△34.6
△12.8

JPY Mil.
85109

FY2021 2Q%
△21.7
△23.7

Net income attributableto owners of parent
JPY Mil.
%
49 △30.571
96.6
71JPY Mil. (84.9%)

Fully diluted net incomeper share
JPYJPY
4.34
4.28
6.27
6.12

Net income per share
FY2021 3Q
FY2020 3Q(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
End of FY2021 3Q
End of FY2020
Reference:
Shareholders' equity

Net Asset
JPY Mil.
2,923
3,792

FY2021 3Q

2,109JPY Mil.

Equity ratio
JPY Mil.
2,1402,448

End of FY2020

%
72.2
64.6
2,448JPY Mil.

2.Dividend Status
Yearly dividend

FY2020
FY2021
FY2021 (forecast)End of 1Q
JPY-

End of 2Q
JPY
0.00
0.00

End of 3
JPY-

End of period
JPY
24.00
-TotalJPY
24.00-(NOTE) 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.

3.Forecasts for FY2021 (January 1, 2021 to December 31, 2021)(Percentages indicate year-on-year changes.)
Net sales

Full Year

JPY Mil.
5,700%
9.8

Net income
attributable to ownersof parent% JPY Mil.
%340 △19.1△11.4

Operating income

Ordinary income

JPY Mil.
500

JPY Mil.
510%△13.9Net income pershareJPY
29.81(NOTE)Revisions to the most recently announced earnings forecasts: Yes※ 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 3Q

11,418,398Shares

FY202011,555,800Shares② Number of treasury stock at the end of theperiod

FY2021 3Q

25,080Shares

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

FY2021 3Q

11,408,082Shares

FY2020 3Q

11,374,316Shares(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 ofQuarterly Financial Results, (3) Future Outlook" on page 3 of the attached material for the assumptions underlying the forecasts
and notes on the use of the forecasts.

○Accompanying Materials – Contents
1.Overview of Quarterly Financial Results...................................................................................................................................

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

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

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

3

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

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

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

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

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

7(3) Notes to Quarterly Consolidated Financial Statements ......................................................................................................

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

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

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

8(Segment Information) ....................................................................................................................................................

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1.Overview of Quarterly Financial Results(1)Operating Results
During the 3Q of the current fiscal year (from January 1, 2021 to September 30, 2021), Japanese economy continued to face
severe conditions due to the impact of the new coronavirus infectious disease (COVID-19). The outlook is uncertain, as theglobal energy price is rising and there are concerns about the negative impact on the economy, although vaccination will
progress, infectious diseases will be resolved and economic activities will be 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 3Q of the fiscal year were favorable in the Management
Consulting Business, and net sales were JPY3,892,955 K (up 11.4% from the same period of the previous fiscal year). In
addition, personnel expenses increased significantly due to the aggressive recruitment that has been ongoing since last fiscalyear. As a result, operating income was JPY76,217 K (down 34.6%), ordinary income was JPY85,983 K (down 21.7%), andnet income attributable to owners of parent was JPY49,586 K (down 30.5%).
Operating results by segment are as follows.
< Management Consulting Business >Net sales were JPY2,254,006 K (up 32.5%). The positive effect of aggressive recruitment was realized, the continual largescale client projects also contributed, and the smooth launch of Digital Strategy Office, which was established during the fiscalyear, resulted in a significant increase.
< Financial Advisory Business >Net sales were JPY1,066,068 K (up 4.4%). Cross-border M&A deals still continued to be in a difficult situation.
< Revitalization Support Business >Net sales were JPY509,073 K (down 30.3%). Demand for revitalization support had been expected to expand due to theimpact of COVID-19. However, many companies have not faced a tight cash position due to the continual emergency loans tocompanies by financial institutions despite the deterioration in business performance. Demand has not expanded more thanexpected. As a result, net sales decreased compared with the same period of the previous fiscal year.
< Other Business >Net sales were JPY63,807 K (up 49.7%).
(2)Financial Position<Assets>
The Group's assets at end of the 3Q of the current fiscal year were JPY2,923,681 K, decreased JPY869,049 K from the endof the previous fiscal year (JPY3,792,731 K).
This was mainly due to decreases of JPY628,717 K in cash and deposits, and JPY195,923 K in notes and accounts
receivable-trade.
<Liabilities>
The Group's liabilities at end of the 3Q of the current fiscal year were JPY783,597 K, decreased JPY560,535 K from the endof the previous fiscal year (JPY1,344,132 K).
This was mainly due to a decrease of JPY213,829 K in income taxes payable, a decrease of JPY153,930 K in provision forbonuses, a decrease of JPY62,777 K in accounts payable-other, and a decrease of JPY104,138 K in other current liabilities
mainly due to a decrease in accrued consumption taxes.
<Net assets>
The Group's net assets at end of the 3Q of the current fiscal year were JPY2,140,084K, decreased JPY308,514 K from theend of the previous fiscal year (JPY2,448,598 K),
This was mainly due to an increase of JPY49,586 K in net income attributable to owners of parent, which was partially
offset by a decrease in dividends of JPY137,912 K from retained earnings and the purchase of treasury stock of JPY270,080 K.

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(3)Future Outlook
The consolidated earnings forecast announced on February 9, 2021 is revised. For details, please refer to the "Notice ofRevision of Consolidated Earnings Forecast " announced today (November 12, 2021).

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2.Quarterly Consolidated Financial Statements(1)Balance Sheets(Thousands of yen)
The previous fiscal year
(As of December 31, 2020)
AssetsCurrent assets
Cash and depositsNotes and accounts receivable
Operational investment securities
OthersAllowance for doubtful accounts
Total current assets
Fixed assets
Tangible assets
Buildings (net)
Tools, furniture, and fixtures (net)Total tangible assets
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 fixed assets
Total assets-4-The 3Q of current fiscal year
(As of September 30, 2021)

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

1,270,382
766,721957
153,502△15,139
2,176,424

198,844
19,951
218,795

200,407
16,028
216,435

11,043102
11,145

12,322
102
12,42456,80037,127211,126
224,236
39,228568,518
798,459
3,792,731

56,80041,852
212,027
189,086
18,630518,396
747,257
2,923,681

(Thousands of yen)
The previous fiscal year
(As of December 31, 2020)
Liabilities
Current liabilities
Accounts payable
Accounts payable-other
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Provision for shareholder benefit program
OthersTotal current liabilities
Fixed liabilities
Asset retirement obligations
Total fixed 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 adjustments
Total other accumulated comprehensive income
Stock acquisition right
Total net assets
Total liabilities and net assets-5-

The 3Q of current fiscal year
(As of September 30, 2021)

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

32,225
85,134
14,757
351,806
2,319
215,092
701,335

82,257
82,257
1,344,132

82,261
82,261
783,597

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

165,127
563,277
1,407,701△36,575
2,099,531

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

9,967
9,967
30,5842,140,084
2,923,681

(2)Statements of Income and Comprehensive Income(Statements of Income)(3Q Cumulative Period)(Thousands of yen)
3Q of previous fiscal year
(January 1, 2020
to September 30, 2020)
Net sales
Cost of sales
Gross income
Selling, general and administrative expenses
Operating Income
Non-operating income
Interest income
Equity in earnings of affiliates
Insurance dividend income
Income from insurance claim
Reversal of allowance for doubtful accounts
Foreign exchange gains
OthersTotal non-operating income
Non-operating expenses
Interest expense
TSE market change expense
Charges for stock compensation
Foreign exchange loss
OthersTotal non-operating expenses
Ordinary income
Current net income for the quarter before income taxes
and minority interests
Income taxes
Income taxes-deferred
Total income taxes
Net income
Net income attributable to owners of parent-6-

3Q of current fiscal year
(January 1, 2021
to September 30, 2021)

3,495,604
1,466,300
2,029,303
1,912,777
116,526

3,892,955
1,587,480
2,305,474
2,229,257
76,217

57
5,915
968
72
2,266
3,677
12,958

96
4,724
1,125
493
4,124
2,649
13,214667
17,3761,361
256
19,661
109,823

1,228
1,963
256
3,448
85,983

109,823

85,983

1,006
37,42338,43071,393
71,393

1,247
35,15036,39749,58649,586

(Statements of Comprehensive Income)(3Q Cumulative Period)(Thousands of yen)
3Q of previous fiscal year
(January 1, 2020
to September 30, 2020)
Net income
Other comprehensive income
Foreign currency translation adjustments
Total other comprehensive income
Quarterly comprehensive income(Comprehensive income attributable to)
Quarterly comprehensive income attributable toowners of the parent
Quarterly comprehensive income attributable to noncontrolling shareholders-7-

3Q of current fiscal year
(January 1, 2021
to September 30, 2021)

71,39349,586368
368
71,761△2,016△2,01647,57071,76147,570--(3)Notes to Quarterly Consolidated Financial Statements(Going Concern)
Not applicable.
(Significant Changes in Shareholders' Equity)
Not applicable.
(Additional Information)(Accounting Estimate of the Impact of spread of COVID-19)
There have been no material changes in the assumptions described in (additional information) in the previous fiscal year's
financial statements in the accounting estimates related to the impact of spread of COVID-19.
(Segment Information)
Previous 3Q (January 1, 2020 to September 30, 2020)
Disclosure is omitted because the business segments of the Group are a single segment.
Current 3Q (January 1, 2021 to September 30, 2021)
Disclosure is omitted because the business segments of the Group are a single segment.

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