Consolidated Financial Results for the 1Q of the Fiscal Year Ending December 31, 2021
[Japanese Standard]
May 13, 2021
Listed Tokyo Stock Exchange

Listed company name
Code number
Representative
Contact person

Frontier Management Inc.
7038
URL https://www.frontier-mgmt.com/(Title) Representative Director(Title) Executive Officer,
Head of Company Strategy Department
Scheduled date to file Quarterly May 13, 2021
Securities Report
Preparation of supplementary material onquarterly financial results: Yes
Quarterly results briefing: Yes

Shoichiro Onishi
Junko Koshino

TEL 03-6862-8335

Scheduled date of commencementof dividend payment-(Millions of yen are rounded down)
1Q of the fiscal year ending December 31.2021 (January 1, 2021 to March 31, 2021)(1) Consolidated Operating Results (Cumulative)
Net sales
1Q of FY2021
1Q of FY2020

JPY mil.
1,329
1,214

(NOTE)
Comprehensive income

Operating income
%
9.4
3.4

1Q of FY2021

67

Net income per share
Yen
5.96
8.84

1Q of FY2021
1Q of FY2020

JPY mil.
93
135
JPY mil.

%
△30.7
33.2

(Percentages indicate year-on-year changes.)
Net income attributable
Ordinary income
to owners of parent
JPY mil.
%
JPY mil.
%
△34.0
△31.9
99
68
150
32.5
100
32.7

(△33.8%)

1Q of FY2020

101

JPY mil.

(35.2%)

Fully diluted
Net income per share
Yen
5.87
8.61

(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
JPY mil.
3,213
3,792

1Q of FY2021
End of FY2020
Reference:
Shareholders' equity

Net assets

1Q of FY2021

2,108

Equity Ratio
JPY mil.
2,108
2,448

JPY
mil.

End of FY2020

2,448

%
65.6
64.6
JPY
mil.

2.Dividend Status

FY2020
FY2021
FY2021(Forecast)End of firstquarterYen-

End of second
quarter
Yen
0.00

Dividend per share
End of the third
quarter
Yen
-

0.00

-

Term end

Total

Yen
24.00

Yen
24.00
-

(NOTE) 1. Revisions to the most recently announced dividend forecasts: None
We plan to pay dividends for the fiscal year ending December 31, 2021, but have not yet determined the expected amount.
2. 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 thestock split.

-1-3.Forecasts for the fiscal year ending December 31, 2021 (January 1, 2021 to December 31, 2021)(Percentages indicate year-on-year changes.)
Net income
Net income per
Net sales
Operating income
Ordinary income attributable to owners
shareof parent
JPY
JPY
JPY
JPY
%
%
%
%
Yen
mil.
mil.
mil.
mil.
Full year
6,500
25.2
1,000
72.2
1,007
74.9
693
64.8
60.30
(NOTE)Revisions to the most recently announced earnings forecasts: None
※ Due to the timing of recording sales of incentive fees in the Financial Advisory Business, the Group's performance fluctuates significantly during the fiscal year.
It makes it difficult to calculate consolidated earnings forecasts for the 2nd quarter (cumulative) and managing earnings for the fiscal year. Accordingly, theGroup only announces full-year earnings forecasts.

-2

※ Notes(1)Changes in significant subsidiaries during this period (changes in specified subsidiaries accompanied by changes in the scope of
consolidation): 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
the period (including treasury stock)

FY12/2021 1Q

11,570,000 Shares

FY12/2020

11,555,800 Shares②

Number of treasury stock at the end of
the period

FY12/2021 1Q

225,080 Shares

FY12/2020

63,080 Shares③

Average number of shares during theperiod (cumulative)

FY12/2021 1Q

11,469,799 Shares

FY12/2020 1Q

11,344,802 Shares(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.

※ This financial results report is not subject to the audit by a certified public accountant or an auditing firm.
※ 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 of The
Quarterly 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.

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○Accompanying Materials – Contents
1.Overview of The 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............................................................................................................

6

Statements of Income
1Q Cumulative Period ............................................................................................................................. .................

6

Statements of Comprehensive Income
1Q Cumulative Period ............................................................................................................................. .................
(3)Notes to Quarterly Consolidated Financial Statements.

7
8(Going Concern)................................................................................................................................................

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

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

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

8(Significant Subsequent Events)............................................................................................................................. ..........

8-4

1. Overview of The Quarterly Financial Results(1) Operating Results
During the 1Q of the current fiscal year (January 1, 2021 to March 31, 2021), the economy remained in a difficult situation
due to the impact of the new coronavirus infection (COVID-19). The outlook is extremely uncertain, although it is expected that
infectious diseases will converge due to the spread of vaccines and economic activities will become 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 1Q of the current fiscal year were; net sales were JPY1,329,051
k (9.4% up from the same quarter of the previous fiscal year) due to the strong performance of the management consulting
business. In addition, personnel expenses and recruitment expenses increased due to aggressive recruitment. As a result, operating
income was JPY93,707 k (30.7% down), ordinary income was JPY99,335 k (34.0% down), and profit attributable to owners ofparent was JPY68,392 k (31.9% down).
Operating results by business were as follows;<Management Consulting Business>
The results of the Management Consulting Business for the 1Q of the current fiscal year were net sales of JPY630,568 k(30.0% up). In the 1Q, we achieved a significant increase due to the effects of aggressive personnel increases.
<Financial Advisory Business>
The results of the Financial Advisory Business were net sales of JPY471,688 k (16.9% up). Cross-border M&A deals between
domestic companies and overseas companies remained challenging, but by focusing on M&A deals between domestic companies,
sales increased compared with the same quarter of the previous year.
<Revitalization Support Business>
The results of the Revitalization Support Business were net sales of JPY211,804 k (29.0% down). The number of large-scale
projects decreased compared with the same quarter of the previous fiscal year. However, the number of referral projects fromfinancial institutions remained strong from the previous fiscal year and remained at a high level.
<Other Business>
The results of the Other Business were net sales of JPY14,990 k (45.7% down).
(2) Financial Position<Assets>
The Group's assets at the end of the 1Q of the current fiscal year were JPY3,213,641 k (compared with JPY3,792,731 k at theend of the previous fiscal year), decreased JPY579,090 k from the end of the previous fiscal year.
This was mainly due to decreases of JPY494,876 k in cash and deposits, JPY56,697 k in accounts and notes receivable, andJPY30,548 k in deferred tax assets.
<Liabilities>
The Group's liabilities at the end of the 1Q of the current fiscal year were JPY1,104,917 k (compared with JPY1,344,132 k at
the end of the previous fiscal year), decreased JPY239,214 k from the end of the previous fiscal year.
This was mainly due to an increase of JPY500,000 k in short-term borrowing, a decrease of JPY381,751 k in provision forbonuses, a decrease of JPY220,753 in income taxes payable, a decrease of JPY63,918 k in accounts payable-other, and a decreaseof JPY51,488 k in accounts payable.
<Net assets>
The Group's net assets at the end of the 1Q of the current fiscal year were JPY2,108,723 k (compared with JPY2,448,598 k at
the end of the previous fiscal year), decreased of JPY339,875 k from the end of the previous fiscal year.
This was mainly due to an increase in profit attributable to owners of parent of JPY68,392 k, which was partially offset by adecrease in dividends of JPY137,912 k from retained earnings and the purchase of treasury stock of JPY270,080 k.

-5(3) Future Outlook
There is no change in the full-year consolidated earnings forecast from the announcement on February 9, 2021.

-6

2. Quarterly Consolidated Financial Statements(1) Balance Sheets(Thousands of yen)
End of previous fiscal year
(As of December 31, 2020)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Operational investment securities
OthersAllowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings, net
Tools, furniture, and fixtures, net
Total property, plant and equipment
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 noncurrent assets
Total assets-7

End of 1Q of current fiscal year
(As of March 31, 2021)

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

1,404,223
905,947595
164,996△15,0672,460,695

198,844
19,951
218,795

192,362
18,907211,269

11,043102
11,1459,927
102
10,02956,80037,127211,126
224,236
39,228568,518
798,459
3,792,731

56,80039,215211,162
193,688
30,780531,646
752,945
3,213,641

(Thousands of yen)
End of previous fiscal year
(As of December 31, 2020)
Liabilities
Current liabilities
Accounts payable
Short-term borrowings
Accounts payable-other
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
OthersTotal current liabilities
Long-term liabilities
Asset retirement obligations
Total noncurrent 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 adjustment
Total other accumulated comprehensive income
Total net assets
Total liabilities and net assets-8

End of 1Q of current fiscal year
(As of March 31, 2021)

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

7,918
500,000
83,994
7,833
123,984
298,927
1,022,658

82,257
82,257
1,344,132

82,25982,259
1,104,917

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

164,062
835,753
1,426,507△328,243
2,098,080

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

10,643
10,643
2,108,723
3,213,641

(2) Statements of Income and Comprehensive Income
Statements of Income(1Q Cumulative Period)(Thousands of yen)
1Q of previous fiscal year
(January 1, 2020
to March 31, 2020)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Equity in earnings of affiliates
Insurance dividend income
Reversal of allowance for doubtful accounts
Foreign exchange gains
OthersTotal non-operating income
Non-operating expenses
Interest expenses
Charges for stock compensation
Foreign exchange losses
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 profit
Net profit attributable to owners of parent-9

1Q of current fiscal year
(January 1, 2021
to March 31, 2021)

1,214,321
460,843
753,477
618,185
135,292

1,329,051
492,256
836,795
743,087
93,707

19
3,064
968
12,790640
17,483

31
2,087
1,125
565
3,382
661
7,854

12
1,918
256
2,186
150,588

6
1,963
256
2,226
99,335150,588

99,335393
49,80250,196
100,392
100,392393
30,54830,942
68,392
68,392

Statements of Comprehensive Income(1Q Cumulative Period)(Thousands of yen)
1Q of previous fiscal year
(January 1, 2020
to March 31, 2020)
Net profit
Other comprehensive income
Foreign currency translation adjustment
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 interests-10

1Q of current fiscal year
(January 1, 2021
to March 31, 2021)

100,392

68,392

819
819
101,211△1,340△1,34067,052

101,21167,052--

(3)Notes to Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not applicable.
(Significant Changes in Shareholders' Equity)
Not applicable.
(Additional Information)(Accounting Estimate of the Impact of Infectious Disease of the 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 the spread of the new Corona Virus Infectious Disease(COVID-19).
(Segment Information)I.
1Q of the previous fiscal year (from January 1, 2020 to March 31, 2020)
Disclosure is omitted because the business segments of the Group are a single segment.
II.

1Q of the current fiscal year (from January 1, 2021 to March 31, 2021)
Disclosure is omitted because the business segments of the Group are a single segment.

(Significant Subsequent Events)(Issuance of new shares for restricted stock compensation)
On March 25, 2021, the Board of Directors resolved to issue new shares (the "Issuance of New Shares") for restricted stockcompensation, and the allotment procedure was completed on April 15, 2021.
1.Summary(1) Allotment Date

April 15, 2021

(2) Class and number of shares issued

19,998 shares of the Company’s common stock(3) Issue price

JPY1,802 per share(4) Total issue amountJPY 36,036,396(5) Persons and number of persons eligible for share

3 directors (excluding outside directors) of the Company

allocation, and number of shares to be allotted

19,998 shares
The Company has submitted a securities registration statement(6) Others

pursuant to the Financial Instruments and Exchange Act for theissuance of new shares.

2.Purpose and reason of issuanceAt the board of directors meeting held on February 9, 2021, in order to increase the linkage between performance of theCompany and compensation of Directors other than Outside Directors (“Eligible Directors”), and to make the compensation
plan more conducive to the achievement of short-term performance targets, achievement of medium- to long-term performancetargets, and the continuous enhancement of corporate value, the Company has decided to newly pay single-fiscal-year
performance-based compensation that is linked to the level of achievement of a single-fiscal-year performance target (cashbonus and stock-based compensation A) and medium-to long-term performance-based compensation that is linked to the levelof achievement of management targets for a medium-term management plan, the degree of enhancement of corporate value,
and the like (stock-based compensation B). Both of the stock-based compensation A and stock-based compensation B will be
paid in the form of restricted stock for the purpose of further promoting the sharing of value with shareholders as well as
strengthening incentives with the aim of achieving management targets for the medium-term management plan and enhancing
corporate value (“Plan”).
In addition, at the 14th Ordinary General Meeting of Shareholders held on March 25, 2021, it was approved that the total
amount of shares of the Company’s common stock issued or disposed of as the stock-based compensation A to be paid to the
Eligible Directors under the Plan is not more than JPY100,000,000 per annum, that the total number thereof is not more than
40,000 shares per annum, that and the total amount of shares of the Company’s common stock issued or disposed of as the-11stock-based compensation B is not more than JPY50,000,000 per annum, that the total number thereof is not more than 20,000
shares per annum, and that the shares of the Company’s common stock are issued or disposed of without requiring paymentof money or tender of property contributed in kind, and allow them to hold such shares.
Based on voluntary deliberations and reports by the Compensation Advisory Committee, it was resolved to grant 19,998
shares of common stock, for a total amount of JPY36,036,396, to the three (3) Eligible Directors based on the compensationbase amount in accordance with their position as the stock remuneration B (medium-term performance-based) under the Plan.
(Issuance of Stock Compensation-Type Stock Options (Stock Acquisition Rights))
The Company has resolved at the Board of Directors meeting held on March 25, 2021, the allotment of stock compensationtype stock options (hereinafter the "stock acquisition rights") to executive officers and employees in accordance with theprovisions of Articles 236, 238 and 240 of the Companies Act.
1.Reasons
The objective is to further increase the motivation and morale to contribute the Company’s business performance and tofurther increase our corporate value.
2.Outline(1) Allotment date
April 13, 2021
(2) Category and number of eligible persons for allotment
5 executive officers of the Company
10 employees of the Company(3) Number of stock acquisition right to be issued
349 pieces(4) Paid-in amount for the stock acquisition rights
JPY184,200 per stock acquisition right (JPY1,842 per share)
The person to be allotted the stock acquisition rights shall offset the same amount of the credit against the Company
and the debt of the payment amount to be paid for stock acquisition rights.
(5) Class and number of shares to be acquired upon exercise of stock acquisition rights
34,900 shares of the Company’s common stock (100 shares per stock acquisition rights)(6) Amount to be paid upon exercise of stock acquisition rights
JPY100 per stock acquisition right (JPY1 per stock)(7) Capital and capital reserve to be increased due to issuance of shares upon exercise of stock acquisition rights① The amount of capital to be increased due to the issuance of shares upon the exercise of stock acquisition rights shallbe a half of the maximum amount of the capital increase, calculated in accordance with Article 17, Paragraph 1 of theOrdinance on Company Accounting, and any fraction of less than one (1) yen arising there from shall be rounded up.
② The amount of capital reserve to be increased due to the issuance of shares upon the exercise of stock acquisitionrights shall be the amount of capital to be increased provided for in above from the maximum amount of capitalincrease, set forth in above.
(8) Exercise period of stock acquisition rights
March 26, 2022 to March 25, 2026
Provided, however, that in the event the last day of the exercise period falls on a day off of the Company, the previous
business day shall be the last day of the exercise period.
(9) Restriction on acquisition of stock acquisition rights by transfer
Acquisition of stock acquisition rights by transfer shall be subject to approval by a resolution of the Board of Directorsof the Company.
(Cancellation of Treasury Stock)
The Company has resolved at the meeting of the Board of Directors held May 13, 2021, the cancellation of treasury stock
pursuant to Article 178 of the Company Act as follows;
1.Reasons
Promoting the ratio of shares in circulation, expanding shareholder returns, and reducing concerns about future dilution.
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2.Description(1) Class of shares to be cancelled:(2) Number of shares to be cancelled:

Common stock
200,000 shares (1.7% of issued shares prior to cancellation)(3) Cancellation date:

May 31, 2021-13