March 29, 2023
To AllCompany Name
Representative

Contact

Frontier Management Inc.
Shoichiro Onishi,
Co-President & Executive Officer(TSE Prime Market Code No. 7038)
Hiroaki Hamada,
Executive Officer, Head of Company
Planning and Administration Department(TEL．+81-3-6862-8335)

Plan for Compliance with the TSE Prime Market's Listing Maintenance Standards
As of December 31, 2022, Frontier Management Inc. (hereafter the “FMI”) are no longer in compliance with the listing
maintenance standards of the TSE Prime Market. Accordingly, FMI have prepared a plan to comply with the listing
maintenance standards as shown below.
Notation
1. Compliance with our listing maintenance standards and the planning period
Our compliance with the TSE Prime Market's listing maintenance standards as of December 31, 2022 is as follows, and"Market capitalization of outstanding shares" does not meet the standards.
FMI believe that measures should be implemented in the medium to long term, rather than in the short term, in order toincrease our corporate value and achieve stable stock valuations. As shown in the table below, FMI will pursue various
initiatives to ensure that the market capitalization of secondary shares meets the listing maintenance standards by the end ofDecember 2025.
Number of

Outstanding shares

Outstanding stock

Daily average

Market capitalization

ratio

Trading value

63,499 units

8 billion yen

55.3%

75 million yen

20,000 units

10 billion yen

35.0%

20 million yen

Outstanding sharesshareholders
Our situation

3,421 Number of(as of the record date)personnel

Listing maintenance

800 Number ofstandards

personnel

Planning period

Net assets

3 billion yen
Net assets
Positive amountEnd of Dec. 2025

2. Basic Policies, Issues, and Details of Initiatives for Compliance with Listing Maintenance Standards
The market capitalization of the outstanding shares, which is an item that failed to meet the listing maintenance standards,
is calculated by "Market capitalization" multiplied by "Distributed stock ratio." Our "Distributed share ratio" meets thestandards.
Going forward, in addition to sustained earnings growth, FMI aim to further increase our "market capitalization" by raising
equity valuations against the backdrop of improved profitability in ROE and other areas and improved equity liquidity.
To this end, FMI will pursue a variety of initiatives based on the basic policy of "earnings growth and rising stock
valuations," and aim to achieve a steady compliance with the listing maintenance standards.
For details, please refer to the attached "Plan for Compliance with TSE Prime Market Listing Maintenance Standards."

Plan for Compliance with the TSE Prime Market's Listing
Maintenance Standards

March 29, 2023
Frontier Management Inc.
(TSE Prime Market Code No. 7038)

1 Awareness of Current Situation and Response Policies

Table of Contents

2 Indicator Analysis for Specific Initiatives
3 Specific Initiatives for Compliance with Listing Maintenance Standards

1

1 Awareness of Current Situation and Response Policies

1 Awareness of Current Situation and Response Policies

1-1 Compliance with our listing maintenance standards and the planning period
The following table shows our compliance with the listing maintenance standards of the prime market as of December 31, 2022 (record date).
Although five of the six items in the listing maintenance standards have been met, the market capitalization of secondary shares was 8 billion yen, which did not meetthe standard (10 billion yen or more). We will take various measures to meet the listing maintenance standards by the end of December 2025 with respect to the criteria
for the market capitalization of outstanding shares.

Our situation(as of the record date)Listingmaintenancestandards
Items that did notmeet the standard

Number ofshareholders

Outstanding
sharesOutstanding
sharesMarketcapitalization

3,421 Number of
personnel

63,499 units

8 billion yen

55.3%

75 million yen

3 billion yen

800 Number of
personnel

20,000 units

10 billion yen

35.0%

20 million yen

Net asset value ispositive

Outstanding
shares
Ratio

Daily averageTrading value

Net assets〇3

1 Awareness of Current Situation and Response Policies

1-2 Policy for Compliance with Listing Maintenance Standards
Market capitalization, which is an item that failed to meet the listing maintenance standards, is calculated by "Market capitalization" multiplied by "Ratio of shares incirculation." Our "Ratio of shares in circulation" has already met these standards as shown on the previous page. Going forward, in addition to sustained earnings
growth, we aim to further increase our "market capitalization" by raising equity valuations against the backdrop of improved profitability in ROE and other areas andimproved equity liquidity.

Market capitalization = Market capitalization × Ratio of shares outstanding

Basic Policy

Earnings growth and rising stock valuations<Medium-to long-term expansion of business>••

As an issue
Specific actions

In existing businesses, we aim to raise profitability by improving human productivity, in addition toaggressively hiring personnel, which has been continuing since listing.
In addition to growth in existing businesses, we will aim to achieve discontinuous growth throughinvestment businesses and new businesses using our own M&A.

<Increase in stock valuations due to improvement in profitability andliquidity>••

While working to expand sales and earnings, we aim to raise equity valuations by improving key
profitability indicators, such as ROE (which emphasizes the ratio of operating income to net sales and net
sales per employee).
We will increase the average daily trading value and promote the trading of our shares by major
institutional investors (including foreign investors) by expanding IR opportunities such as increasing thenumber of IR briefings and enhancing the quality and quantity of information dissemination, such ascontinuously disclosing sustainability information.

4

1 Awareness of Current Situation and Response Policies

1-3 Outlook for Market Capitalization of Outstanding Shares Based on Simulation ofPerformance
Our market capitalization is expected to achieve the listing maintenance standard of ¥10 billion from fiscal 2024 to fiscal 2025, based on the continuation of theaverage sales growth rate over the last five years and PER as of the record date.
[Simulation assumptions] ※As sales of Frontier Capital (FCI) vary greatly depending on the investment project, only the assumed amount of operating profit and loss is directly reflected.
Net sales: Figures for fiscal 2023 are published budgets. The growth rate from fiscal 2024 onward uses 12% as a conservative figure based on CAGR (CAGR) of 15.3% for the five years after our listing(fiscal 2018-2022).
Operating income: FY2023 is the announced budget. From fiscal 2024 onward, we will estimate that the operating income margin will improve by 1 percentage point per year, from 15% in fiscal 2023. We will
incorporate ▲ of ¥150 million in fiscal 2024 and ¥0 in fiscal 2025 as FCI projected operating income/loss.
Net income: 66.7% of operating income forecast in the FY2023 budget.
Others: Calculated without factoring in non-continuous income increases such as investment business and M&A.

Operating income(Billions of yen)

Change in operating profit

2520201515101295020222022(Actual)2023
2023(Budget)2024
2024(Estimate)2025
2025(Estimate)

Net sales (Billions of yen)*
Excluding FCI

7896108

121

Operationg profit (billion yen)

9121520Net Income (Billions of yen)571013ROE(%)

19212528

EPS (yen)

48

6187119※Number of shares issued: 11,468,478 shares outstanding 55.3% * Calculated from the closing price on December 30, 2022
※The above revenues are estimates based on CAGR and other factors, and do not represent our medium-term management plan for fiscal 2024 and beyond.

52 Indicator Analysis for Specific Initiatives

2 Indicator Analysis for Specific Initiatives

2-1 Correlations between profitability (ROE) and equity valuation (PBR)PBR is calculated in (ROE-i)/ (COE-i) and is affected by the level of ROE. (COE is the cost of equity, i is the perpetual growth rate)
In the management consulting/M&A advisory sector to which we belong, ROE is also a key variable for PBR.
Based on the above, we consider ROE to be a key management indicator and aim to increase equity valuations by aiming for continuous improvement.
As shown in the performance simulation on page 5, ROE is expected to continue rising.

PBRWithROE
1816Company B
1412

PBR (times)••••

R² = 0.9153

108Company ECompany A

Frontier Management

6Company FCompany CCompany D

42Company G

Company H

0-20-1001020304050ROE(%)
Comparative analysis of eight companies assumed to be us and our comparable companies.
Using the most recent financial indicators for the fiscal year ended March 31, 2023 and the closing stock price as of March 27, 2023

7

2 Indicator Analysis for Specific Initiatives

2-2 Correlation between percentage of shares held by foreign corporations and equity valuation(PBR・PER)• Stock valuations tend to be influenced by the volume of trading by major institutional investors (including foreign investors).
• As one important indicator, the correlation between the percentage of shares held by foreign corporations and share valuation is shown below.
• The sectors in which we belong are affected by the level of foreign ownership in both PBR・PER.
• Our shareholding ratio of foreign corporations, etc. is 3.1% (as of the end of December 2022), which is currently low compared to other companies in the sameindustry.

PERPercentage of Shares Held by Foreign Corporations

PBRPercentage of Shares Held by Foreign Corporations
185016Company B

451440
Frontier ManagementPER (times)

R² = 0.6125
108Company DCompany A

Company C

6Frontier Management

3512PBR (times)

Company B

R² = 0.7376

3025Company E
20Company C

15Company E

4Company A

Company DCompany GCompany F

10Company F
5Company H

2Company G

0000

10203040

50102030405060

60

Percentage of shares held by foreign corporations (%)

Comparative analysis of eight companies assumed to be us and our comparable companies.
Using the most recent financial indicators for the fiscal year ended March 31, 2023 and the closing stock price as of March 27, 2023

Percentage of shares held by foreign corporations (%)

8

2 Indicator Analysis for Specific Initiatives

2-3 Correlation between Percentage of Shares Held by Foreign Corporations and Average Daily Trading Value••••

Bulk trading of illiquid stocks may affect the market price of the stocks.
For this reason, major institutional investors avoid the risk of holding illiquid stocks and prefer to hold liquid stocks.
Even in the sectors in which we belong, the volume of the average daily trading value is correlated with the level of the percentage of shares held by foreigncorporations.
Our average daily trading value is at a low level of 75 million yen (fiscal 2022 average), and we believe a strategy to increase the level is necessary.

With the percentage of shares held by foreign corporations1DayAverageTrading value
70

R² = 0.8952

Percentage of shares held by foreign corporations (%)

6050Company B

Company A

4030Company D

20Company C

Company E

Company F

10 Company G
Company H

Frontier Management00204060

80100120140

Average daily trading value (billion yen)Comparative analysis of eight companies assumed to be us and our comparable companies. Using financial indicators for the most recent fiscal year ended March 31, 2023

9

3 Specific Initiatives for Compliance with Listing
Maintenance Standards

3 Specific Initiatives for Compliance with Listing Maintenance Standards

Challenges and Specific Initiatives (Reprinted)<Medium-to long-term expansion of business>••

In existing businesses, we aim to raise profitability by improving human productivity, in addition toaggressively hiring personnel, which has been continuing since listing.
In addition to growth in existing businesses, we will aim to achieve discontinuous growth through investment
businesses and new businesses using our own M&A.

<Increase in stock valuation due to increase in profitability and liquidity>••

While working to expand sales and earnings, we aim to raise equity valuations by improving key profitability
indicators, such as ROE (which emphasizes the ratio of operating income to net sales and net sales peremployee).
We will increase the average daily trading value and promote the trading of our shares by major institutional
investors (including foreign investors) by expanding IR opportunities such as increasing the number of IR
briefings and enhancing the quality and quantity of information dissemination, such as continuously
disclosing sustainability information.

11

3 Specific Initiatives for Compliance with Listing Maintenance Standards

3-1 Medium-to long-term expansion of business Aggressive personnel recruitment strategy
In addition to aggressive personnel recruitment that has continued since the listing, we aim to raise profitability by improving human productivity.

Listed on the First
Section of the Tokyo
Stock Exchange

On the Mothers section ofthe Tokyo Stock
Exchange

Transition to TSE Prime

Trends in the number of employees at the end of the period

335
227

Number of personnel(Change from theprevious year)

153

159

172+4%

2015

177

153

165

+8%

-11%+8%+7%

2016

2017

2018

2019

+28%

255

+19%
+12%

(FY)

2014

2020

2021

2022

2023

2024

2025

12

3 Specific Initiatives for Compliance with Listing Maintenance Standards

3-2 Medium-to long-term business expansion Aggressive development of new businesses and improvement ofproductivity
Improving productivity

Aggressive development of new businesses
We will continue to create new businesses that respond flexibly to changes in the global
environment, with the aim of achieving sustainable growth for the Group.
Theme
Revitalizati Strategy
Business strategy
onBusiness
Revitalization

Marketing

M&A
FAS/ Finance/
Tax service

Personnel Affairs
HR Strategy/
Human ResourceDevelopment•Strengthen marketing to large companies•Improve marketing efficiency by promoting cross-divisional sales (cross-selling)•Promotion of division of labor within the team of operations

OtherESG/PMO/
Risk/Others

Specialized firm

IT firm

HR firm

FAS firm

Strategy firm

L a r g e f

Area of future frontier management

IT system
IT Strategicplanning /Systemdevelopment

We aim to increase sales per employee by continuing to promote the following
specific measures that we have already taken.

Net sales(JPY Mil.)

1Sales per employeeHigh simulation※

35
30
25C l

20
M i d d l ei e n t s i z e

Area of current frontier management

1510
5

S m a ll

Frontier Management
Areas at startup

0(FY)

2021

2022

2023

2024

2025

※Sales from 2024 onward are calculated according to the simulation on page 5, and the number of
employees is estimated based on the estimated number of front employees at the end of the fiscal yearexcluding the management division.

133 Specific Initiatives for Compliance with Listing Maintenance Standards

3-3 Medium-to Long-Term Business Expansion of Businesses Secure Launch of Investment Businesses as NewBusinesses
We will accelerate corporate expansion through the new business of Frontier Capital Corporation, a new investment subsidiary established in April 2022.

Frontier Management Group to date(Prior to investing by FCI)

New Frontier Management Group(After investing by FCI)
Consolidated

Frontier Management(FMI)

Consolidated

Frontier Management(FMI)

Frontier Capital(FCI)

Frontier Capital(FCI)

Invested company①
Invested company②Invested company③EquitymethodApplicatio
nCelebrain Corp.

Celebrain Corp.

Development Investment
Advisory
Shanghai Co., Ltd.

Development Investment
Advisory
Shanghai Co., Ltd.

FCD Partners*Not all FCI investees are consolidated under FMI

Equity method
Application

FCD Partners

14

3 Specific Initiatives for Compliance with Listing Maintenance Standards

3-4 Increase in stock valuations due to improved liquidity

Response to Foreign Investors• We will hire a full-time IR manager for bilingual and strengthen theEnglish-language disclosures that we have already started. (during fiscal
2023)2022Year12Composition of Frontier Management Shareholders at the End ofthe Month
Foreign Juridical Person,…

Foreign investor• We will periodically launch IR for oversea investors, including foreign
investors, with our CEO and full-time IR personnel. (Singapore-based
IR meeting completed in March 2023/Planned IR successivelythereafter)• We will further strengthen our sustainability initiatives and disclosures.
(See next page-page 16)

Shoichiro Onishiand Masahiro
Matsuoka,
37.8%
Other, 52.2%

Response to domestic investors• We will strengthen domestic and overseas IR briefings and individualvisits for institutional investors. (A IR briefing for institutional investors
was planned in November 2022, and plans to continue in fiscal 2023)• We will actively participate in IR events for retail investors. (Planningstarted in fiscal 2023)

Officers, etc.,
6.5%

Other corporations,
0.3%
Treasury stock,…

Ratio of outstanding shares 55.3%

15

3 Specific Initiatives for Compliance with Listing Maintenance Standards

3-5 Measures to raise stock valuations Sustainability
As ESG initiatives become essential, we will continue to communicate our efforts to contribute to the sustainability of society.

In 2022
September

OctoberNovember December

In 2023January

February

MarchAprilMayJuneJuly

AugustFormulation of basic policy, promotion system, andmateriality

Overallsustainability

Establishment of the Sustainability Promotion Committee started

Formulation of sustainability KPI (under discussion)Began applying for B Corp certification

Human capitalmanagement

DE&I Promotion Committee started activities

Joined the Human Capital Management Forum
Electricity used at Roppongi head office switched to greenpower
Develop and implement a KPI for CO2 emissions net-zero in 2050TCFD response
Calculation of emissions of in-house Scope1, 2

To join TCFD forums16

© 2023 Frontier Management Inc.