December 22, 2023
For Immediate Release
Company Name Frontier Management Inc.
Representative Shoichiro Onishi, Representative Director,
Co-President and Executive Officer(Stock code: 7038 The Prime Market of theTokyo Stock Exchange)
Contact
Hiroaki Hamada, Executive Officer, Head ofCompany Planning and Administration Department(TEL. +81-3-6862-8335)

Capital and Business Alliance between Frontier Capital Inc., a Consolidated Subsidiary ofFrontier Management Inc., and the Sanritsu Doken Group

Frontier Management Inc. (headquartered in Roppongi, Minato-ku, Tokyo; Shoichiro Onishi and Masahiro
Matsuoka, Representative Directors; hereinafter the “Company”) announces that Frontier Capital Inc.
(headquartered in Roppongi, Minato-ku, Tokyo; Shoichiro Onishi and Masahiro Matsuoka, RepresentativeDirectors; hereinafter “FCI”), a consolidated subsidiary of the Company, has today decided to enter into acapital and business alliance with Sanritsu Doken Co., Ltd. (headquartered in Shimogo-machi, Minamiaizugun, Fukushima; Hidetoshi Asanuma, Representative Director), Sanritsu DouroCo., Ltd. (headquartered inAizuwakamatsu-shi, Fukushima; Hidetoshi Asanuma, Representative Director) and Sanritsu Enterprise Co.,Ltd. (Shimogo-machi, Minamiaizu-gun, Fukushima; Hidetoshi Asanuma, Representative Director) (SanritsuDoken Co., Ltd., Sanritsu DouroCo., Ltd. and Sanritsu Enterprise Co., Ltd. are hereinafter collectively referred
to as the “Sanritsu Doken Group”) together with No. 2 Daishi Hokuetsu Regional Initiatives Investment
Partnership established by Daishi Hokuetsu Bank, Ltd. (headquartered in Higashiborimae-dori, Chuo-ku,Niigata-shi, Niigata; Michiro Ueguri, President) and Daishi Hokuetsu Capital Partners, Ltd. (headquartered inHigashioo-dori, Chuo-ku, Niigata-shi, Niigata; Masanori Kawabe, Representative Director) (hereinaftercollectively with FCI referred to as “FCI, Etc.”). Details are as follows.
The Sanritsu Doken Group is an indispensable entity in the region, having long been a leader in maintaining
and improving infrastructure and disaster prevention, and the Company believes that it has the potential toachieve sustainable growth independently, as there are growing calls for measures to deal with increasingly
severe wind and flood damage and to address aging infrastructure.
The operating environment surrounding the construction industry in which the Sanritsu Doken Group operates
is facing issues such as dealing with various local construction projects, aging personnel and labor shortages,
while reaching a turning point from corrective maintenance to preventive maintenance. FCI has entered into
the capital and business alliance based on its assessment that it can be assured of the realization of the growthpotential of the Sanritsu Doken Group and further improvement in its corporate value, and ultimately regional
revitalization through this, aided by the Frontier Management Group that will harness the know-how it has
cultivated through consulting for numerous local companies and will work together with the Sanritsu Doken
Group to promote management.
1

In the capital and business alliance, FCI, Etc. will take an equity stake in the Sanritsu Doken Group through aspecial purpose company (SPC) established by FCI, Etc.
The Company assumes that Mr. Hidetoshi Asanuma, the representative director and president of each company
in the Sanritsu Doken Group, will assume the position of representative director and chairman of each company
and will continue to manage the companies together with FCI, Etc.
The Company plans to vigorously move forward with the further development of the Sanritsu Doken Groupby dispatching several executive officers, in addition to dispatching a representative director and directors
permanently from FCI, Etc. after concluding a paid consulting contract.)
The investment concept of FCI is to contribute to the revitalization of local economies by supporting theresolution of management issues from a long-term perspective through the investment of human resources,know-how and money in various companies facing management issues. Its approach is not limited to specificindustries, areas or industries.
Unlike general private equity funds, FCI focuses on long-term, sustainable growth from a management
perspective through a variety of investment methods and teams within the group. The Frontier Management
Group companies work together to provide consulting, knowledge and their extensive management personnel
and networks to address the management issues faced by its portfolio companies, thereby helping them achieve
long-term, continuous improvements in corporate value.
Details
1. Overview of Sanritsu Doken Group(1) NameSanritsu Doken Co., Ltd.
843 Numabukuro Otsu, Yunokami Aza, Shimogo-machi Ooaza,(2) Address
Minamiaizu-gun, Fukushima(3) Title and name of representative Hidetoshi Asanuma, Representative Director
General construction business (contract for a complete set of civilengineering and architectural works), planning and design of civilengineering and architectural works and supervision of construction,(4) Business description
sale and contract for sale of materials required for civil engineeringand architectural works, transportation of industrial waste, gravel
extraction and sales(1) NameSanritsu Douro Co., Ltd.
(2) Address
6-62 Yamagamachi, Aizuwakamatsu City, Fukushima(3) Title and name of representative Hidetoshi Asanuma, Representative Director
Paving construction business, civil engineering business, asphalt(4) Business description
mixture wholesale business and electricity sales business(1) Name

Sanritsu Enterprise Co., Ltd.
843 Numabukuro Otsu, Yunokami Aza, Shimogo-machi Ooaza,(2) Address
Minamiaizu-gun, Fukushima(3) Title and name of representative Hidetoshi Asanuma, Representative Director(4) Business description
Wholesale of construction materials and machinery leasing22. ScheduleDecember 22, 2023
December 22, 2023
March 29, 2024 (planned)

Resolutions of the Investment Committee by FCIContract conclusion
Execution of this project

3. Future prospect
The capital and business alliance will have no impact on the consolidated financial results of the Company forthe fiscal year ending December 31, 2023.

<Frontier Capital Inc.>
Company name:

Frontier Capital Inc.

Representative:

Shoichiro Onishi, Representative Director, President, CEO and COO
Masahiro Matsuoka, Representative Director

Head office address: Sumitomo Fudosan Roppongi Grand Tower 43F 3-2-1 Roppongi, Minato-ku, Tokyo
Business description: Execution of investment and management for the purpose of the long-term,
sustainable enhancement of corporate value of portfolio companies
Formation and management of joint investment funds with financial institutions,business companies, etc.
URL:

https://frontier-cptl.com/<Daishi Hokuetsu Bank, Ltd.>
Company name:Daishi Hokuetsu Bank, Ltd.

Representative:

Michiro Ueguri, President (Representative Director)

Head office address: 1071-1, Higashiborimae-dori,7-bancho, Chuo-ku, Niigata-shi, Niigata
Business description: Banking businessURL:

https://www.dhbk.co.jp/<About Daishi Hokuetsu Capital Partners Co., Ltd.>
Company name:Daishi Hokuetsu Capital Partners Co., Ltd.

Representative:

Masanori Kawabe, President and Representative Director

Head office address: 2-1-18 Higashiodori, Chuo-ku, Niigata-shi, Niigata
Business description: Investment(No. 2 Daishi Hokuetsu Regional Initiatives Investment Partnership)Name:

No. 2 Daishi Hokuetsu Regional Initiatives Investment Partnership

Operating company: Daishi Hokuetsu Capital Partners Co., Ltd.
Partnership investor: Daishi Hokuetsu Bank, Ltd.
Investment objective: Support for business succession, start-up, new business development, and regional
revitalization3