Summary of Consolidated Business Results for the Second Quarter of FY 2010
(January 1 to June 30, 2010)
Date: August 3, 2010
Company

Funai Zaisan Consultants Co., Ltd.

Registered on the TSE Mothers

Stock code
Representative8929
Masazumi Hasumi President
Kasahara Koichiro
Contact
deputy general manager, Administrative DivisionTEL
03-6439-5800
Planned release date of quarterly financial report: August 3, 2010
Supplemental Explanatory Material Prepared: None
Results Briefing Held: Yes

URL http://www.funai-zc.co.jp/

1. Consolidated Business Results for the Second Quarter of FY 2010 (January 1 to June 30, 2010)(1) Consolidated Results of operations(Note: Rounded down to million yen)
(The percentages shown for Revenue, Operating Income etc. represent changes from the same period in the previousfiscal year.)
Revenue
Operating income
Ordinary income
Net income％ ¥ Million％ ¥ Million％ ¥ Million％¥ Million
Q2 20102,017-10.8
212―
188―
119―
Q2 20092,261-71.7-806―-1,193―-1,765―
Net income Per share¥
1,133.42-16,699.05

Q2 2010
Q2 2009

Diluted net income per share¥――(2) Consolidated Financial PositionTotal assets
Q22010FY2009(Reference) Shareholders' Equity

Net assets

Equity capital ratio

Net assets pershare¥ Million¥ Million％¥5,596

1,200

21.5

11,358.81

6,442

1,187

18.4

11,232.80

Q2 2010: ¥1,200 million

Full Year 2009: ¥1,187 million

2. Dividend Results
Date of issue

End of Q1¥Dividend per Share
End of Interim
End of Q3
Fiscal Year End¥¥¥0.00
750.00―0.00

FY ended Dec.2009―
FY ended Dec.2010―
FY ending Dec.2010―(projected)
Note: Revision of the dividend forecast in the second quarter of FY2010: None

750.00

Annual¥750.00750.003. Forecast of Consolidated Financial Performance for FY Ending December 2010
(January 1 to December 31, 2010)(Percentage figures represent the change from the previous fiscal year.)
Net income
Revenue
Operating income
Ordinary income
Net income
per share％％％ ¥ Million％¥ Million¥ Million¥ Million¥―――
Full year
5,508
1.8497471
427
4,039.54
Note: Revision of the consolidated results forecast in the second quarter of FY2010: None4. Other(1) Changes in major subsidiaries during the period: None(Note) Indicates whether there was any change in a specific subsidiary related to a change in the scope ofconsolidation during the subject accounting period.
(2) Adoption of simplified accounting procedures or accounting procedures specific to the preparation of quarterly
financial statements: None(Note) Indicates whether simplified accounting procedures or special accounting procedures in the preparationof the consolidated quarterly financial statements were applied.
(3) Changes in accounting principles, procedures or reporting methods used in preparation of these quarterly
financial statements
i. Changes in accounting principles applied: None
ii. Other changes: None(Note) Indicates whether there were any changes in accounting principles and procedures or reporting methods,
related to the preparation of the consolidated financial statements, noted in “Significant Changes
Fundamental to the Preparation of Financial Statements.”(4) Ordinary shares issued
i. Ordinary shares issued at end of period (including treasury stock)
Q2 2010: 105,705
Full Year 2009: 110,584
ii. Treasury stock issued at end of period
Q2 2010: None
Full Year 2009: 4,879
iii. Average number of outstanding shares during the period
Q2 2010: 105,705
Q2 2009: 105,705*Indication regarding the status of quarterly review procedures
The quarterly review procedures under the Financial Instruments and Exchange Act of these financial statements
were being conducted at the time of disclosure.

*Appropriate use of these results forecasts and other items
The above forecasts are based on judgments made in accordance with information available at the time thesematerials were prepared, and contain numerous uncertainties. Changing conditions and other factors may cause
actual results to differ from the results in these forecasts.

5. Quarterly Consolidated financial statements(1) Quarterly Consolidated balance sheet（Thousands of yen）
Current 2nd quarter ended
June 30, 2010

Previous consolidated
financial year Summary of
consolidated balance sheet(December 31, 2009)

AssetsCurrent assets
Cash and deposits

423,857

951,396

Accounts receivable

615,555

403,186

Real estate for sale

1,502,331

1,604,399

249,855

275,282

Other current assets

49,275

195,523

Allowance for doubtful accounts-11,150-8,8072,829,724

3,420,980

200,773

210,839

Goodwill

532,015

613,990

OthersTotal intangible fixed assets

44,124

48,535576,139

662,526

Bonds bought

Total current assets
Fixed assets
Tangible fixed assets
Intangible fixed assets

Investments and other assets
Investment Securities

1,796,137

1,931,392

Stocks of affiliated companies

45,627

67,973

Other assets

147,996

149,210

1,989,760

2,148,576

2,766,673

3,021,941

5,596,398

6,442,921

Accounts payable

80,53862,274

Short-term debt

825,600

850,000

Bonds redeemable within one year

760,000

1,370,000

Accrued corporate tax, etc.

110,365

Allowance for bonus payable

11,53925,559－Other reserves
Other current liabilities

49,742

110,525

701,218

528,397

Total current liabilities

2,539,004

2,946,756

Bonds

795,000

1,195,000

Long-term deposits payable
Allowance for employee retirement benefits

225,568

264,479

Total Investment and other assets
Total fixed assets
Total assets
Liabilities
Current liabilities

Fixed liabilities

39,241

34,772

Addition to reserve for compensation toretired directors

115,109

107,052

Long-term security deposits payable

681,791

707,496

1,856,710

2,308,801

4,395,715

5,255,558

Total fixed liabilities
Total liabilities

（Thousands of yen）
Current 2nd quarter ended
June 30, 2010

Previous consolidated
financial year Summary ofconsolidated balance sheet(December 31, 2009)

Net Assets
Shareholders’ equity
Common stock

1,030,817

1,030,817

Capital surplus

605,035

1,104,154

Retained earnings-163,623－-283,431-499,119

1,472,229

1,352,420-271,546-165,057-271,546-165,057

1,200,683

1,187,363

5,596,398

6,442,921

Treasury stock
Total shareholders’ equity
Evaluation and conversion difference
Unrealized gains on securities
Totalevaluation
andconversion
difference
Total net assets
Total liabilities and net assets

(2) Quarterly Consolidated income statements (2nd Quarter YTD)
（Thousands of yen）
First half ended
June 30, 2009First half ended
June 30, 2010

Revenue
Consulting Revenue
Sales of real estate
Revenue

1,380,235

1,808,331

881,510

209,161

2,261,746

2,017,493

Operating cost
Operating cost

801,177

870,060

Cost of sales of real estate

1,097,764

176,023

Operating cost

1,898,941

1,046,083

Gross operating profit

362,804

971,409

SG&A

1,169,190

758,640

Operating income(loss)-806,385

212,768

3,220

227

Dividends received

1,224

Investment profit on equity method

13,803

10,449－Insurance premium refunded cancellation

15,549Other non-operating income

3,528

1,404

Non-operating income

37,326

12,080Interest paid

44,12017,070Investment loss on equity method

364,255

11,641Other non-operating expenses
Non-operating expenses

16,409424,785

8,083
36,795-1,193,844

188,053

177,42613,773－－

38,151

191,199

38,151158

Non-operating income
Interest received

Non-operating expenses

Ordinary income(loss)
Extraordinary profit
Gain on sale of investment securities
Gain on change in equity
Gain on sale of affiliated companies’ securities
Extraordinary profit－

Extraordinary loss
Loss on retirement of fixed assets
Loss on sales of investment securities

33,53180－

Loss on valuation of investment securities
Extraordinary loss

781
34,471

2,380
2,461

-1,037,116

223,744

Current net income before profit(loss) distribution toanonymous association (pre-tax)
Dividends distribution from anonymous association-3,456-4,231-1,033,660

227,975

27,353－27,426

Income taxes-correction
Deferred income(loss) taxes
Current income(loss) taxes

704,159
731,513-825
108,167-1,765,173

119,808

Current net income(loss) before taxes
Current income taxes

Net income(loss)

81,566

(2) Quarterly Consolidated income statements (2nd Quarter Results of FY2010)（Thousands of yen）
Previous 2nd quarter ended
June 30, 2009

Current 2nd quarter ended
June 30, 2010

659,929

853,886

Revenue
Consulting Revenue
Sales of real estate
Revenue813,120

51,295

1,473,050

905,182

Operating cost
Operating cost

411,452

428,860

Cost of sales of real estate

1,070,164

57,399Operating cost

1,481,616

486,260-8,566418,921

SG&A

412,777

410,126

Operating income(loss)-421,344

8,794Interest received

427－

Dividends received

320

Investment profit on equity method

820

9,600
－

Gross operating profit/loss

Non-operating income

Insurance premium refunded cancellation

15,549

－

106

763

17,224

10,363

Interest paid

19,40010,449Investment loss on equity method

216,383

7,161

Other non-operating expenses
Non-operating expenses

9,618
245,402

1,566
19,177-649,521-18

Extraordinary profit
Gain on change in equity

13,773－Extraordinary profit

13,773－－80－

Other non-operating income
Non-operating income
Non-operating expenses

Ordinary income(loss)

Extraordinary loss
Loss on retirement of fixed assets
Loss on sales of investment securities
Extraordinary loss
Current net income before profit(loss) distribution toanonymous association (pre-tax)
Dividends distribution from anonymous association
Current net income(loss) before taxes
Current income taxes
Income taxes-correction
Deferred income(loss) taxes
Current income(loss) taxes
Net income(loss)

28,031
28,03180-663,780-99-1,157-3,114-662,622

3,014

833
－

7,723
81,566800,934

2,863

801,768

92,152-1,464,390-89,137

(3) Consolidated quarterly cash flow
（Thousand of yen）
First half ended
June 30, 2009First half ended
June 30, 2010

Cash flow from operating activities
Income(loss) before income taxes and minority
interests-1,033,660

227,975

Depreciation

28,386

20,531

Amortization of goodwill

82,041

81,975

1,1282,343-7,244

4,468-105,304

8,057－-60,783

Income from interest and dividends-4,444-10,676

Interest paid

44,12017,070364,255

11,641781

2,380-143,895－－-38,151

158

80-12,368-212,369

999,048

102,068

31,88925,426-37,510

18,263-47,399-25,705-13,649-12,611-206,427-60,093

222,576
384,561

Change in provisions for doubtful accounts(negative indicates decrease)
Decrease in reserve for retirement benefits(negative indicates decrease)
Decrease in reserve for directors' retirement
benefits(negative indicates decrease)
Increase in other reserves

Equity in losses of affiliates (negative indicateincrease)
Loss on revaluation of investments in securities(negative indicate increase)
Gain on sales of investment securities (negativeindicate increase)
Gain on sales of stocks of affiliates (negativeindicate increase)
Loss on retirement of fixed assets
Increase in accounts receivable (negative indicateincrease)
Decrease in real estate for sale (negative indicatesincrease)
Decrease in other current assets (negativeindicate increase)
Decrease in accounts payable (negative indicatesdecrease)
Decrease in lease and guarantee deposits received(negative indicates decrease)
Decrease in long-term deposits received (negativeindicates decrease)
OthersSubtotalInterest and dividends received

17,044

10,676

Interest paid

-46,847-18,713

Income tax (paid) refund
Cash flow from operating activities-123,166-213,061

83,161
459,686

（Thousand of yen）
First half ended
June 30, 2009First half ended
June 30, 2010

Cash flow from investing activities
Payments for putting of time deposits-114,000

Proceeds from repayment of time deposits
Payment for purchase of intangible fixed assets

1,107,874

4,000-11,032-3,095

Payment for purchase of tangible fixed assets-314

Proceeds from sale of tangible fixed assets
Proceeds from sale of investment securities

11,448-3,015－－

Proceeds from sales of stocks of affiliates

365,503－

Collection of loans receivable

100,000

48,856－

63,412
1,522,892

1,200
73,315

1,021,333-24,400-3,500,000－

Payment for redemption of corporate bonds-590,000

Dividends paid
Others-79,278-14,213-1,010,073－

OthersCash flow from investing activities
Cash flow from financing activities
Decrease in short-term loans payable (negativeindicates decrease)
Repayment of long-term debt

Cash flow from financing activities

25,368-22,067-3,162,158-1,056,541-1,852,327-523,539

Cash and cash equivalents at beginning of term

3,424,778

947,396

Cash and cash equivalents at end of term

1,572,451

423,857

Decrease in cash and cash equivalents (negativeindicates decrease)