FY2023 Q1 Financial Results
Ending December 2023

May 12, 2023
Frontier Management Inc.

Table of Contents

Section 1FY2023 Q1 Financial Results

Section 2Our Various Progress1

Section 1

FY2023 Q1 Financial Results

FY2023 Q1 Financial ResultsALL
consolidation

Summary: Frontier Management Group Consolidated- In the Q1 of FY2023, net sales were 119% and operating income was 118%, both YoY increases in both sales and profits, achieving record highs
for the first quarter.
- In the management consulting business, sales declined temporarily in Q4 last fiscal year compared to the previous year, but the effects of theincrease in the number of No. of employeess and the strong performance of new products resulted in record-high quarterly sales.
- Revitalization business maintained its upward trend in the Q4 of FY2022, resulting in a significant 426% YoY increase in sales.
- The M&A advisory business performed well, partly due to the conclusion of two large-scale deals.
- The number of No. of employeess at the end of April 2023 was 356, a net increase of 21 from the end of FY2022. The company plans to have 391
personnels at the end of FY2023.
- Frontier Capital Inc. (FCI) completed payment of JPY 4 Bil. by the end of Q1 (with a final commitment of JPY15 Bil.) and is currently in the processof examining projects in preparation for making an investment.
(JPY Mil.)FY2022

FY2023

Q1Q1

ChangeYoY

FY2023
Forecasts(Feb. 2023)

Rate ofAchievement ofForcast

2,224

2,653+429

119%

10,00027%

Operating income

408

480+72118%

1,20040%

Ordinary income

416

478+63115%

1,20040%

Net income attributable to owners of parent

236

260+24110%

70037%Net sales3FY2023 Q1 Financial Results

Consolidation
w/o FCI

Summary Infrontia Management Group Consolidated

Consolidated financial results for the first quarter of FY2023 on a "Consolidation w/o FCI” basis are record highs for net sales, operating income,ordinary income, and net income for the quarter.

(JPY Mil.)FY2022

FY2023Q1

Q1

ChangeYoY

FY2023
Forecasts(Feb. 2023)

Rate ofAchievement ofForcast

2,224

2,650+426

119%

9,65027%

Operating income

408

580

+172

142%

1,50039%

Ordinary income

416

590+174142%

1,50039%

Net income attributable to owners of parent236371+135

157%

1,00037%

Net sales

4FY2023 Q1 Financial Results

ALLconsolidation

Net Sales by Business‐ Management consulting business: Record high quarterly sales due to continued increase in staff and strong sales of new products‐ Revitalization support business: Maintained an upward trend in the revitalization business in the fourth quarter of FY2022, with sales
exceeding four times the level of the same period of the previous year
‐ M&A Advisory Business: Trends close to the results of the same period of the previous fiscal year, when quarterly net sales recorded a record
high, partly due to the conclusion of a large-scale project‐ Investment business: Focus on sourcing, not yet executed as of Q1(JPY Mil.)

76

2,500
41

3903

2,000
958

1,500
1,000500

379
89

Investment business(0.1% of total,-% YoY)

Other businesses(3% of total, 184% YoY)

M&A advisory business(34% of total, 94% YoY)

Revitalization support business(14% of total, 428% YoY)

1,137

1,293

Management consulting business(49% of total, 114% YoY)0(FY)2022 / 1Q

2023 / 1Q
5FY2023 Q1 Financial Results

Consolidation
w/o FCI

Quarterly Sales Trends by Business (1/2)
The quarterly consolidated net sales figures are all-time highs

2,651(JPY Mil.)

Other businesses

2,500

M&A advisory business
2,225

Revitalization support business

2,027 903

Management consulting business
2,000

1,916

1,849
1,747

1,697
1,625

958
576

1,502

680

659

1,500
1,329

1,100

1,126

1,057
953

933

1,000
824
554

102

126

73

752

121

534

706

254
371

53
64

361

385

374

400

443

1Q

2Q

3Q

4Q

1Q

914

819
374

612

392
347

299500822

811

403

359
314

100

61

1,114

1,035

993

983

1,214

1,160 1,174

358

435

629

513

858

416

49

65

98

138

226

298

30

349

303

325

373

2Q

3Q

4Q

1Q

447

480

509

2Q

3Q

4Q

574

451

449

2Q

3Q

4Q

335

543

214

440

529

504

485

3Q

4Q

1Q

307

76

167

896
649

153

212

203

567

129

89

131

315

104

65

470

472

302

41

52

259

230
99

1,253

757

1,092

859
403

277
40

1,190

379

579

1,311

715

631

1,026

1,137

1,051

1,293

1,173
994

727

0(FY)

2015

2016

2017

1Q

2018

1Q

2Q

2019

2Q

3Q

20204Q

1Q

2Q

3Q

2021

4Q

1Q

2Q

3Q

2022

4Q

1Q
2023
6

FY2023 Q1 Financial Results

Consolidation
w/o FCI

Quarterly Sales Trends by Business (2/2)‐Management consulting business recovered to an upward trend, achieving record-high quarterly sales‐In the M&A advisory business, sales were close to the record high recorded in the same period of the previous fiscal year.
‐The Revitalization Support Business maintained an upward trend in net sales against the backdrop of the heightened demand for revitalization
support observed in the Q4 of FY2023 and achieved record-high net sales for the quarter.
(JPY Mil.)
1,400
Management consulting business
Revitalization support business

1,200

M&A advisory business
1,000

800

600

4002000(FY)

1Q

2Q

3Q

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

3Q

2022

4Q

1Q
2023

7

FY2023 Q1 Financial ResultsALL
consolidation

Outline of consolidated PL

Net sales, operating income, EBITDA, ordinary income, net income attributable to owners of the parent company, all record highs for Q1(JPY Mil.)FY2022

FY2023

Q1Q1Change

YoYNet sales

2,224

2,653+429

119%

Operating expenses

1,816

2,173+357120%

Outsourcing

105267+162254%

Personnel

1,337

1,415+78106%

Recruiting

9082

△990%

Others284

408+124144%

Operating income

408480+72118%

Ordinary income

416

478

+63115%

Net income before Tax

416

478

+63115%

Net income attributable to owners of parent

236

260+24110%

Depreciation and amortization

1116+5140%

EBITDA

419

496+77118%
8FY2023 Q1 Financial Results

Consolidation
w/o FCI

Consolidated PL Profile(JPY Mil.)FY2022

FY2023

Q1Q1ChangeYoYNet sales

2,224

2,650+426

119%

Operating expenses

1,816

2,070+254

114%

Outsourcing

105273+168259%

Personnel

1,337

1,348+12101%

Recruiting

9075△1583%

Others284371+87131%

Operating income

408580+172142%

Ordinary income

416590+174142%

Net income before Tax

416

589+174142%

Net income attributable to owners of parent

236

371+135

157%

Depreciation and amortization

1116+5140%

EBITDA

419596+177142%
9FY2023 Q1 Financial ResultsALLconsolidation

Outline of consolidated BS

Increase in current assets and other net assets mainly due to an increase in cash from payment to FCI (capital increase through third-party allotment)
The increase in short-term borrowings is temporary due to annual bonus, dividend, and tax payments.
(JPY Mil.)End of December

End of March

2022

2023

ChangeYoY

Current assets

4,276

7,593

+3,318178%

Fixed assets

1,375

1,185

△190

86%

76

△094%

Total assets

5,658

8,785+3,127

155%

Current liabilities

1,868

2,048+180

110%

Fixed liabilities

774736△3895%

2,918

2,876

△4399%

97

3,124+3,028

3,221%

Total liabilities and net assets

5,658

8,785+3,127155%

Cash and deposits

3,199

5,851+2,652

183%

Interest-bearing debt

777

1,242+465

160%△2,421△4,608△2,188190%

Deferred assets

Shareholders' equity
Other net assets

Net Debt

10

FY2023 Q1 Financial Results

Trends in the number of large-scale deals in the M&A advisory businessIn the M&A advisory business, two large-scale projects contributed to Q1 sales

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

Projects worth JPY 100 Mil. or more (value basis)(Projects)(JPY Mil.)
1,800

11121,600

10

1,400
1,200

8

1,000

6536003222112015

2016

20172018

2019

2020

2021

2022

2023

788
615

610
420

400
2082000(FY)

870

800

44

1,6350(FY)2015

1QNOTE)The number and amount of large-scale projects are recorded in the period from January to December of each fiscal year.
The consulting business is scheduled to be disclosed in the full-year results due to the long-term project.

20162017

1502018

20192020103
2021

2022

2023

1Q

11

FY2023 Q1 Financial Results

ALLconsolidation

Aggressive personnel expansion strategy
Continue measures to strengthen recruitment of talented personnel to strengthen the foundations of the organization

Trends in the number of No. of employeess at the end of the period
TSE
Prime
Frontier Capital Inc.
Celebrain Corporation

1st Sectionof the TSE

335

341

356

391

1321

11
19

13
21305

307

322

2023

2023

2023

1Q

End of Apr.

ForcastTSE
Mothers

Number ofpersonnel

153(Change from theprevious year)

(FY)

2014

153

165

177

+8%

-11%

+8%+7%

201620172018

2019

159

172+4%

2015

227

255+28%+12%

2020

2021

+19%

2022

※In the medium-term management plan announced in February 2021, the number of No. of employees at the end of the fiscal year under plan for 2023 was 350

12Section 2

Our Various ProgressOur Various Progress

Strengthening the personnel system
Further enhance solutions and coverage
Tomohide SanoManaging Director Corporate Strategy Department,
Digital Strategy Division

Recruitment for Digital Business Expansion[Background]
Joining Sony System Design Inc. (currently Sony GlobalSolutions Inc.), Accenture Japan Ltd, IBM Japan, Ltd. andothers and joined Frontier Management Inc in 2023.

Masahiro Akita

Senior Director Corporate Strategy Department,
Enterprise-Value Creation Division andIndustry Research Department

Former securities analyst in the automotive andautomotive parts industries[Background]
After Aisin Seiki Co., Ltd. (currently Aisin Seiki Corporation), hejoined Credit Suisse Securities (Japan) as a senior analyst andjoined Frontier Management Inc. in 2023.

Strengthening of the Group's overall organizational management structure
Shogo Magome

Masakazu Nakamura

Strengthening the Frontier Management Group'smanagement organization structure

Deputy General Manager of Administration DivisionManaging Director Company Planning Division[Background]
Joined Tohmatsu Deloitte Consulting Co., Ltd. (now ABeamConsulting Ltd.) and and transferred to Deloitte ToucheTohmatsu (now Deloitte Touche Tohmatsu LLC), throughmultiple operating companies and joind Frontier Management
Inc, in 2023.

Managing Director Frontier Capital Inc.

Establishing Internal Controls at Frontier Capital Inc.
[Background]
After joining Sumitomo Corporation, he served as head of
administrative departments at several group companies andjoined Frontier Capital Corporation in 2023.

14

Our Various Progress

Expanding and strengthening solutions
New solutions grew steadily in 2023, growing by 195% YoY in the third quarter
Progress of New Businesses Launched in 2020-2022(JPY Mil.)600

D&I support business
Cross-border Management Executive Support Division

500

Manufacturing Re-engineering Division
Digital Strategy Division

400

Enterprise-Value Creation Division (IR/SR)
Governance/Risk/Compliance (GRC) Office

300

200

1000(FY)

2021 1Q

2022 1Q

2023 1Q

15

Our Various Progress

Increasing need for revitalization support
Overview of revitalization support projects, for which needs have been increasing since the second half of 2022

Revitalization M&A Financial Advisory❖Comprehensive foodservice company

Sales: JPY 10 Bil., No. of employees: 700, Capital: JPY 50 Mil.
-Financial DD/-Support for Financial Institutions❖ Electric companies

Sales: non-disclosure, No. of employees: non-disclosure, TTL Assets: JPY 10 Bil.
-Support for succession to sponsors❖Major livestock companies

Sales: JPY40 Bil., No. of employees: 250, Capital: JPY 20 Mil.
-Support for selection of sponsors-Support for sale of overseas business

Revitalization consulting❖ Restaurant companies

Sales: JPY 10 Bil., No. of employees: 600, Capital: JPY 100 Mil.
-Formulation of business revitalization plans-Support for financial institutions-Support for risk management❖ Automotive Parts Manufacturing Companies (2)Sales: JPY 5 Bil., No. of employees: 200, Capital: JPY 50 Mil.
Sales: JPY 4 Bil., No. of employees: 200, Capital: JPY 300 Mil.
-Investment fund management support,-Management execution support-Advice on revitalization measures❖ Electric companies

Sales: Non-Disclosure, No. of employeess: Non-Disclosure, TTL Assets: JPY 4 Bil.
-Support for succession to sponsors-Support for management execution❖ Textile companies

Sales: JPY 5 Bil., No. of employees: 300, Capital: JPY 300 Mil.
-Support for formulation of business strategies-Revisions to the medium-term management plan
-Support for implementation-Support for responses to financial institutions

16

Our Various Progress

Progress of the Investment Business
Following the investment in January 2023 from three anchor investors and four ordinary investors for a total of JPY 2.6 Bil., in February theCompany completed the payment from Joyo Bank, Ltd. and Tokai Tokyo Financial Holdings, Inc. for a total of JPY 4 Bil. in fundraising. Final
procurement of JPY 15 Bil. is expected on a commitment basis. Currently focusing on sourcing investments.

Classification

Investor
Frontier Management Inc.

AnchorInvestor

Paid-up capital
contribution

Planned amountof additional
investment

Total amount ofinvestment

JPY 1 Bil.

JPY 500 Mil.

JPY 1.5 Bil.

JPY 3 Bil.

JPY 10.5 Bil.

JPY 13.5 Bil.

JPY 4 Bil.

JPY 11 Bil.

JPY 15 Bil.

JAPAN POST BANK Co.,Ltd.
The Bank of Fukuoka, Ltd.
The Bank of Yokohama, Ltd.
Saitama Resona Bank, Ltd.
Daishi Hokuetsu Bank, Ltd.

GeneralInvestors

The Hokuriku Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Joyo Bank, Ltd.
Tokai Tokyo Financial Holdings, Inc.
Total17Our Various Progress

Sustainability Initiatives
Following the decision on our sustainability policy in November 2022, we are currently in the process of formulating KPI and have begun
implementing measures that can be undertaken
Electricity at our head office in Roppongi was switched to green power in
September 2022.We will continue our efforts to achieve net zero CO2emissions by 2030.

Apr. 2023 Began applying for B Corp* certification*B Corp(B Corporation) is an internationally recognized certification system by B
Lab of non-profit organizations in the United States. Under strict evaluation,companies with high public interest that take the environment and society into
consideration are given.

Frontier Management Domestic Sites CO2 Emissions Transition(t-CO2)100.0

長野支店(左軸)

大阪支店(左軸)

六本木本社(左軸)

従業員1人当たり(右軸)105.9(t-CO2)
0.6

96.5

0.5

80.0

0.5

77.4
0.4

0.4

60.0

0.3

0.3
40.0

0.2

20.0

0.1

0.0
(FY)

0.0
2020

2021

2022

※Nagoya Branch and Fukuoka Branch are not disclosed and therefore are not calculated.
18

Our Various Progress

Consolidation
w/o FCI

Weekly changes in the sum of orders received
Continue to exceed the previous year in FY2023

Weekly changes in the total amount of orders that will become net sales* for the fiscal year under review(JPY Mil.)7,500

In 2022

7,000
6,500
6,000

In 2021

5,500
5,000

In 2020

In 2023

4,500

In 2019

4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0Fixed49th week

45th week

41st week

37th week

33rd week

29th week

25th week

21st week

17th week

13th week

9th week

5th week

1st week* Net sales exclude outsourcing costs and project referral fees.

19Our Various Progress

Order backlog in M&A advisory business
The order backlog, which temporarily fell in the Q4 of FY2022, also showed a recovery trend in the Q1 of FY2023(JPY Mill.)

M&A Advisory Business: Order Backlog at End of Period and Sales

3,500

Order backlog

3,000

Sales (Actual)

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

*The figures for the order backlog are recorded as Net sales excluding outsourcing expenses and project referral fees.

1Q

2022
2Q

3Q

4Q

1Q2023
2Q

3Q

4Q

1Q

20© 2023 Frontier Management Inc.