FY2022 Q2 Financial Results
Ending December 2022

August 12, 2022

Frontier Management Inc.

Table of Contents

Section 1

FY2022 Q2 Financial Results

Section 2Our Various Progress

Section 3Corporate Profile1

Section 1

FY2022 Q2 Financial Results

FY2022 Q2 Financial Results

Summary: Management consulting and M&A remained strong following 1Q- Maintained strong performance in the management consulting business due to increased staff and new products (SR/IR, DX, HR).
- In the M&A business, steady progress was made in the establishment of large-and medium-sized M&A deals.
- The number of employees largely achieved the initial plan for FY2022. Hiring seniors to strengthen relationships with financial institutions and promote investment
businesses.
- As of 2Q, it had achieved its full-year operating income target of 68%, but the full-year forecast has remained unchanged at this time
• The company plans to expand and relocaThe number of M&A orders has been maintained at a record high level, but we speculate both the upside and thedownside can be.
• te offices in Tokyo and Osaka in response to the increase in personnel, and costs will be recorded after 3Q.
• Conservatively assessed investment securities and posted a valuation loss (extraordinary loss: JPY53 Mil. ).
- Increase the dividend payout ratio target from 30% to 40% in order to enhance returns to shareholders and expand the shareholder base.
(JPY Mil.)FY2021
2Q results

Net sales

YoY change(amount)

FY2022
2Q results

YoY change(ratio)

FY2022
Forecasts(Announced on Feb. 10, 2022)

Achievement rate

2,582

3,972

1,390

154%

7,00057%

Operating income74543

469

733%

80068%Ordinary income

81556

475

682%

80070%Net Income

51277

226544%50055%
3

FY2022 Q2 Financial Results

Net Sales by Business Segment (Cumulative)- Management consulting business:- Revitalization support business:- M&A advisory business:

Maintain strong performance with increased staff and new products (SR/IR, DX, HR).
Needs for revitalization support did not materialize.
Successful establishment of organizational structure, ongoing steady conclusion of large-andmedium-sized projects.

(JPY Mil.)
4,500
4,000

82

3,500

1,537

3,000

39

2,500
2,000806

1,500378(2% of total, 210% YoY)

M&A advisory business(39% of total, 191% YoY)

Revitalization Support Business(4% of total, 44% YoY)

Management Consulting Business

2,188

1,000

(55% of total, 161% YoY)

1,357

500
0166

Other Business(FY)

2021 2Q

2022 2Q

4FY2022 Q2 Financial Results

Quarterly Sales Trends (1/2)- Record sales achieved in the second quarter

2,225

Other
M&A advisory business
Revitalization Support Business

1,849Management Consulting Business

1,747

1,697

1,625958

1,502659
1,329(JPY Mil.)

1,100

1,126

1,057953

933824554(FY)

126

73

254
121

371

53
64

361

385

374

400

443

1Q

2Q

3Q

4Q

1Q

2015

752
612

392
347

299
102

822

811

52

819
706

314
30

374
359
100

61

914
534

358

435

629

513

858

416

49

65

98

226

298

349

303

325

2Q

3Q

4Q

1Q

447

480

509

574

2Q

3Q

4Q

1Q

2017

451

449

2Q

3Q

4Q

2018

335

543

1Q

440

214
212

2Q

504

485

203

3Q

4Q

1Q

2019

567

2Q

3Q

2020

89
76

167

896
529

153

131

315

649

579

1,311

259

104

65

470

472

302

230
138

99

757

1,092

859
403

277
40

1,190

41373

2016

403

1,114

1,035

993

983

1,214

1,160 1,174

1,253715

4Q

631

1Q

1,026

1,137

1,051

727

2Q

3Q

2021

4Q

1Q

2Q

2022
5

FY2022 Q2 Financial Results

Quarterly Sales Trends (2/2)

YoY 2Q of sales by business
Management consulting business YoY 145%
M&A advisory business YoY
173%
Revitalization support business YoY
46%- The management consulting business achieved record sales in thesecond quarter.
(JPY Mil.)

1,200
Management Consulting Business
Revitalization Support Business

1,000

M&A advisory business80060040020001Q(FY)

2Q3Q

2015

4Q

1Q

2Q

3Q

2016

4Q

1Q

2Q

3Q

2017

4Q

1Q

2Q

3Q

2018

4Q

1Q

2Q

3Q

2019

4Q

1Q

2Q

3Q

2020

4Q

1Q

2Q

3Q

2021

4Q

1Q

2Q

2022
6

FY2022 Q2 Financial Results

Weekly changes in the total amount of orders received, which will be net sales for the fiscal year under review- Significantly higher than previous years.
※M&A and other incentive fees reflect fixed or highly definite deals.
(JPY Mil.)

Weekly changes in the total amount of orders that will become net sales (net sales*) for the fiscal year under review

6,000
5,500

FY20225,000

FY20214,500

FY20204,000

FY2019

3,500
3,000
2,500

2,000
1,500
1,000500
0Fixed49th week

45th week

41st week

37th week

33rd week

29th week

25th week

21st week

Week 17

13th week

9th week

The fifth week

First week

* Net sales exclude subcontracting costs and introduction fees from net sales.

7

FY2022 Q2 Financial Results

PL Overview- Although personnel expenses have increased due to continued aggressive recruitment, both sales and profits have reachedthe highest level since listing as a cumulative 2Q(JPY Mil.)FY2021
2Q results

FY2022
2Q results

YoY change(ratio)

Net sales(Internal Celebrain JPY174 Mil.)

2,582

3,972

Operating expenses

2,508

3,429

Outsourcing costs, etc.

81

204

Personnel expenses

1,830

2,436

Recruitment costs

112

214

Other expenses

484

575

Operating income(Internal Celebrain JPY21 Mil.)

74543

733%

Ordinary income

81556

682%

Current net income for the quarter
before income taxes and minority
interests

81503

616%

Quarterly income attributable toowners of parent

51277

544%

154%

Record high since listing in
the first half of the year

8FY2022 Q2 Financial Results

BS Overview- Total assets increased mainly due to an increase in cash and deposits and an increase in goodwill (JPY289 Mil.) following the acquisition ofCelebrain shares.
- Total liabilities increased due to borrowings in consideration of the cost of capital when establishing Frontier Capital.
- Despite the payment of dividends, total net assets increased due to an increase in quarterly net income attributable to owners of the parent.
(JPY Mil.)End of Dec. 2021

End of June 2022

YoY change (amount)

Current assets

2,998

4,439+1,441

Fixed assets

821

991+170

Total assets

3,819

5,436+1,617

Current liabilities

1,282

1,912+630

Fixed liabilities

82789+707

2,397

2,628+231

54

107+54

Total liabilities andnet assets

3,819

5,436+1,617

Cash and deposits

1,784

3,545+1,761-

1,347+1,347△1,784△2,198△414

Shareholders' equity
Other net assets

Interest-bearing debt
Net Debt

9Section 2

Our Various ProgressOur Various Progress

Aggressive hiring strategy- Continue measures to strengthen recruitment of outstanding human resources to strengthen the organizational foundation- Achieved generally the initial plan for FY2022 (taking into account recruitment and retirement plans as of July 1, 2022)
Number of employees at End of Fiscal Year
Frontier Capital
Celebrain

362
1221354
Celebrain

350

24Tokyo Stock
Exchange First
Section Listing
TSE Mothers
Listing(Name)

329*(YoY change)

153(FY)

2014

153

165

177

+8%

-11%+8%+7%

2016

2017

2018

2019

159

172+4%

2015* The number of employees as of July 1, 2022 includes informal retirees227255+28%+12%

2020

2021

330+29%350+6%

2022 As of 2022 Plan 2023 Plan
July 1[NOTE] The "2022 Plan" is the personnel plan at the beginning of the fiscal year, and the "2023 Plan" is the personnel plan in the medium-term management plan announced in February 2021.

11

Our Various Progress

Management Consulting Business growth- Acquisition of projects in the Management Consulting Business reached a record high since listing(Number)Number of Management Consulting Business Projects Acquired

140117120941008071645360

5957

6367656370
577862788264

40200(FY)

2018

1Q

2019

2Q

3Q

4Q

1Q

2020

2Q

3Q

4Q

1Q

2021

2Q

3Q

4Q

1Q

2022

2Q

3Q

4Q

1Q

2Q
12

Each Progress

Strong start of new businesses- Continuous growth of new business strategies

Sales of New Businesses(JPY Mil.)

350
300
250
200
150
100500(FY)

2021 1Q

2Q

3Q

4Q

2022 1Q

2Q

13

Our Various Progress

Number of large-and medium-sized projects recorded as sales in the M&A advisory business- The number of large-scale and medium-sized projects in cumulative Q2 is on par with the number of projects for the fullyear of 2021.
Number of projects booked as sales
Number of medium-sized projects (from ¥50 million to ¥100 million)

Six Months
Cumulative
total

Number of large-scale projects (¥100 million or more)

11610
63

10

57(Number)

33(FY)

2015

2016

45220172018* Net sales exclude subcontracting costs and project introduction fees from net sales.

2019

51

1

2020

2021

2022 2Q
14

Our Various Progress

Order backlog in M&A advisory business- New orders are robust, and the order backlog is at the highest level since listing.

M&A Advisory Business Year-end Order Backlog(JPY Mil.)

3,000
2,500
2,000
1,500
1,000
5000(FY)

2018
1Q

2019
2Q

3Q

4Q

1Q

2020
2Q

3Q

4Q

1Q

2021
2Q

3Q

4Q

※"Order backlog" is calculated for projects with a high degree of certainty, but there are cases where contracts do not result.

1Q

2022
2Q

3Q

4Q

1Q

2Q
15

Our Various Progress

Masao Nishihara was appointed as our full-time advisor.
- Promoting Further Strengthening of Our Financial Institutions Sales

Masao Nishihara
Full-time Advisor
Career summary
Apr.
Jul.
Jul.
Jul.
Aug.
Jun.
Aug.

1975
2004
2007
2008
2009
2013
2022

Joined the Ministry of FinanceDirector-General of the Inspection Bureau of the Financial Services Agency
Director General of the Supervisory Bureau
Secretary-General of Executive Bureau, Securities and Exchange Surveillance Commission
Senior Managing Director, Organization for Promoting Urban Development
Vice Chairman and Senior Managing Director, Regional Banks Association of Japan
Advisor, Frontier Management Inc. (current)

Academic Background

Graduated from the University of Tokyo, Faculty of Law

16

Our Various Progress

Frontier Management Sustainability Initiatives- Starting this year, Frontier Management's sustainability initiatives will be communicated.
2022
Sep.

Oct.

Nov.

Dec.

2023
Jan.

Feb.

Mar.

Initiatives

Sustainability

Roppongi Head Office
Switch to green power

TCFD response
Considering joining TCFD
Forum

Human capital

A Sustainability Promotion Committee will be established and operated as aproject.

Basic Policy
Promotion Structure
Materiality
Determined after theBoard of Directors

・Established D&I
Promotion Committee
・To consider joining
related organizations

Incorporation into the Code of Conduct, Guidelines, and Evaluation System

Disclos
ed onwebsite

Establishment after identification of materiality
Incorporation into and improvement of the Code of Conduct, Guidelines, andEvaluation System

Disclosed in
Corporate
Governance
ReportReview and improvement of internal systems, etc.

17Our Various Progress

Revision of Dividend Payout Ratio Targets- Review the dividend payout ratio target from 30% to 40% in order to enhance returns to shareholders and expand the shareholder base
- For the fiscal year under review, we plan to determine the amount of dividends to be paid by taking into account the valuation loss on
investment securities, which is a non-cash expense.
50%
45%
40%

Dividend payout ratio

30%143131

Cash dividends paid

35%27%

160

31%

33%

138

40％

34%

120
10025%

80

20%

15%

14060

4340
10%
20

5%0%

0

FY2018FY2019FY2020

FY2021

FY202218

Section 3

Corporate Profile

Corporate Profile

Background of Establishment
Representative Director

Representative Director

Shoichiro Onishi

Masahiro Matsuoka•After registering as an attorney with the Tokyo Bar
Association in 1992 (44th term), joined the law firm ofOkuno & Partners and was appointed as a partner in1997.
•Engaged in the corporate reorganization proceedingsof Japan Lease, Life Co., Ltd., and The Taisei Fire &Marine Insurance Co., Ltd. as an acting trustee orother capacity.

•After working at Nomura Research Institute, Ltd. andBarclays Bank PLC, joined UBS Securities Japan Ltd,and was subsequently appointed concurrently as
Head of Equity Research and Managing Director in1999.
•Engaged as an equity analyst with the retail industry
for a total of 10 years.

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

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

Jointly established in 200720

Corporate ProfileBusiness
Management Consulting

M&A Advisory◆ Business analysis and strategy formulation◆ Business due diligence (BDD)◆ Medium-term business plans andmanagement, finance, and business strategies◆ 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, compliance and 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 for businessrevitalization◆ M&A deal advisory (including cross-border
M&As)✓ Drafting of strategies, preparation of longlists, andapproach of target companies✓ Corporate valuation

ManagementConsulting

M&AAdvisory

Management
ExecutiveSupportBusinessRevitalization✓ Support for contract negotiations and closing◆ Post M&A consulting (PMI)◆ Business succession consulting

Business Revitalization◆ Support for rehabilitation procedures◆ Emergency PMO management support◆ Support for business and financial restructuring◆ Support for the adjustment of interests among
stakeholders

21Corporate Profile

Customer Segments
Providing services to diverse industries.

IT2%

Others8%

Retail andFinancewholesale24%

9%
Infrastructure
10%

Restaurant andIndustrial goods

services18%
manufacturers
21% Consumer-productproducers8%
Result of FY2021
22

Corporate Profile

History
FY2007FY2011FY2012

Establishment
Established a Chinese subsidiary (Frontier Management (Shanghai) Inc.)
Opened a branch in Singapore to strengthen cross-border M&A

FY2014Opened the Nagano and Osaka Branches to realize
community-based management support services

FY2017

New York Branch opened to strengthen cross-border M&A
Launched fund business to provide funding support services to customers

FY2018FY2019Listed on TSE Mothers section
Investment made in the first project of the fund
Opened the Nagoya Branch to expand the service territory
Relocated to current location (Roppongi, Minato-ku, Tokyo)

FY2020Changed to TSE First Section

FY2022

Capital and business alliance with Celebrain Corporation (Our ownership ratio is 60%)
Established Frontier Capital Inc.
Transitioned to the TSE Prime Market23

Corporate Profile

Organizational Chart for Directors
Frontier Management Inc.
Corporate Strategy Department
Management Consulting Department
Management Executive Support Department
M&A advisory Department

RepresentativeDirector

Corporate Sales Department
Industry Research Department

Business Development Department
Company Planning and Administration Department

BranchGroup Companies / Associated Companies

Osaka
BranchNagoyaBranchFrontier Management(Shanghai) Inc. (100%subsidiary)Singapore
BranchNew York
BranchCelebrain Corporation

Frontier CapitalInc.
FCD Partners Inc.

(Joint Venture Company with theDevelopment Bank of Japan)

24

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

Management
Philosophy

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

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

25

Corporate Profile

Corporate Information
Company Overview

Business Descriptions

Company Name

Frontier Management Inc.

EstablishedJanuary 4, 2007

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

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

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

Websitehttps://www.frontier-mgmt.com

Officers, etc

Representative Director,
Co-President and Executive Officer
Representative Director,
Co-President and Executive Officer

Shoichiro Onishi

Director of the Board
Deputy President and Executive Officer

Tad Komori

1. Management Consulting
2. M&A Advisory<FAX>+81-3-6862-8611

3. Management Executive Support
4. Business Revitalization Support
Professional Composition Ratio

Masahiro Matsuoka

Outside Director of the Board
Outside Director of the BoardKazuhito Osugi
Keiko Unotoro

Statutory Auditor
Auditor
AuditorTakeshi Umemoto
Kazuhiko Shimokobe
Nobumichi Hattori

Senior Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Executive Officer

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

No. of employees

321(consolidated)

as of end of June 2022

BranchOsaka Branch
Nagoya Branch
Singapore Branch
New York BranchGroup Companies

Frontier Management (Shanghai) Inc.
Frontier Capital Inc.
Celebrain Corporation

AssociatedCompanies

FCD Partners Inc.

Business
Companies
19%

Financials
Institutions
22%

OthersLegal1%Counsel1%✓ Composed of experts tomanagement such as legal
counsel, CPA, tax accountant,consultants, industry analysts,
Certified Publicand persons involved in banking,Accountant / Tax
enterprises and others.
✓ Form the best team of experts toAccountant
each customer’s challenge and12%
propose comprehensivesolutions.

Consultant /Analyst
45%

As of end of December 2021

26

Handling of this material◆ This material contains forward-looking statements, plans for the future, and management objectives related to us. These forward-looking
statements are based on current assumptions about future events and trends, and there can be no assurance that such assumptions will always
be accurate. A number of factors could cause actual results to differ materially from those described in this document.
◆ Unless otherwise indicated, the financial data presented herein is presented in accordance with accounting principles generally accepted inJapan.
◆ Regardless of the occurrence of future events, we will not necessarily revise the forward-looking statements that have already been made,except as required by disclosure rules.
◆ Information about companies other than ours relies generally on publicly available information.

©2022 Frontier Management Inc. All rights reserved. The copyright of this material belongs to Frontier Management Corporation.

27

© 2022 Frontier Management Inc.