February 14, 2024
To AllCompany Name Frontier Management Inc.
Representative

Shoichiro Onishi, Representative Director,
President & Executive Officer(Stock code: 7038

The Prime Market ofTokyo Stock Exchange)
Contact

Hiroaki Hamada,
Executive Officer, Head of Company
Planning and Administration Department(TEL．+81-3-6862-8335)

Status of Progress in Plan to Meet the Criteria for Maintaining Listing on TSE Prime Market
Frontier Management Inc. (the “Company”) hereby announces the status of progress as of December 31, 2023 in a plan tomeet the criteria for maintaining listing on the TSE Prime Market (the “Plan”), which the Company submitted to Tokyo Stock
Exchange Inc. and publicly disclosed its content on March 29, 2023. Details are as follows.
1. Progress towards meeting the criteria for maintaining listing
As of the base date of December 31, 2022, the Company did not meet the criteria for “market capitalization of tradableshares” among the criteria for maintaining listing on the Prime Market, but as a result of subsequent improvements based on
the Plan, as of the base date of December 31, 2023, the Company met all criteria for maintaining listing on the Prime Market.

Number ofshareholdersMarket

Number ofcapitalization

shares inof tradable

circulation

sharesPercentageof tradable
sharesDaily
averageAmount oftrading

net assets

value

As of the basedate ofThe
Company’s
conformity
status and its
transition

December 31,

3,421

63,4998.0 billion yen

3,339

69,513800

20,000Conforming

Conforming

55.3%

75 million

3.0 billion

yen

yen

82 million

3.7 billion

yen

yen

20 million

Positive netyen

asset amount

Conforming

Conforming2022
As of the basedate ofDecember 31,

10.6 billion
yen

59.2%

2023
Criteria for maintaining listing
Conformity status as of December31, 2023

10.0 billion
yenConforming

35.0%
Conforming

Note: The Company’s status of conformity is calculated based on the distribution of the Company’s share certificates, etc. as understood by
the Tokyo Stock Exchange as of the base date.

2. Status of implementation and evaluation of efforts to meet listing maintenance criteria (March 2023 - December 2023)
The Company’s basic policy in its efforts to meet the criteria for maintaining its listing is to “aim for further increase inmarket capitalization through continuous profit growth as well as higher stock valuations backed by improved profitability,1such as ROE, and stock liquidity.”
Specific initiatives based on this basic policy were defined as “medium- to long-term expansion of business” and “higherstock valuations through higher profitability and liquidity,” the implementation status of which is as follows.
(1) Medium- to long-term expansion of business(i) In existing businesses, in addition to aggressive personnel hiring, which has been ongoing since the Company waslisted on the stock exchange, the Company has aimed to raise profitability by improving human productivity.
The Company hired a net 34 new employees for the fiscal year ended December 31, 2023, generally as planned, andimplemented measures to improve human productivity and achieved higher profitability.
(ii) In addition to the growth of existing businesses, the Company has been oriented toward discontinuous growththrough new businesses using investment business and its own M&A.
Specific initiatives that the Company took are as follows.
In the investment business, the Company’s subsidiary Frontier Capital Inc. secured funding of 4 billion yen including
the Company’s investment (Frontier Capital plans to raise 15 billion yen in total by increasing its capital in stages
according to the progress of investment), and decided to invest in two companies in December 2023. (See “Capitaland Business Alliance between Frontier Capital Inc., a Consolidated Subsidiary of Frontier Management Inc., andthe Sanritsu Doken Group” announced on December 22, 2023, and “Capital and Business Alliance between Frontier
Capital Inc., a Consolidated Subsidiary of Frontier Management Inc., and ZOO LABO Inc.” Going forward, we willcontinue to examine and scrutinize investment projects with a view to executing investments.
On the other hand, as announced on July 14, 2023 in the “Notice of capital and business alliance with M&A advisory
company in France and issuance of new shares through third-party allotment,” the Company will establish abridgehead to enter growth markets in Europe, the Middle East, and Africa by collaborating with Athema (registeredtrade name: AT Conseil), a French M&A advisory firm, and will accelerate business development in M&A strategy
formulation, candidate search, M&A execution, PMI, hands-on consulting, etc.
(2) Higher stock valuations through higher profitability and liquidity(i) The Company aims to increase stock valuations by improving key profitability indicators such as ROE while
expanding the scale of net sales and profits. To this end, the Company has increased the number of IR briefings andother IR opportunities, and enhanced the quality and quantity of information dissemination, including continuous
disclosure of sustainability information, to increase the “daily average trading value” and promote trading of its stockby major institutional investors (including foreign investors).
Specific initiatives that the Company took are as follows.
In terms of IR activities, for foreign investors, the Company’s Representative Director, Masahiro Matsuoka, isactively holding IR meetings with institutional investors in Singapore and Hong Kong. In addition, the Company
hired an IR manager in November 2023 to expand IR opportunities.
The Company undertakes numerous IR activities. For institutional investors in Japan, the Company’s Corporate
Planning Department holds regular IR meetings, while for individual investors, Shoichiro Onishi, the Company’s
Representative Director is actively engaged in IR activities, such as, appearing on relevant radio programs, providing
information on investor information media (Web and social media), and participating in company information
sessions.
(ii) Sustainability initiatives and their disclosure are as follows.
In its Corporate Governance Report dated September 15, 2023 and on its website, the Company discloses its “TCFDInitiatives” and deepens the discussion on “Human Capital Management” and other issues.
Through these efforts, the Company was able to meet the “market capitalization of tradable shares” as of the base date ofDecember 31, 2023. It will continue to pursue measures that will lead to sustainable growth and medium- to long-term
improvement in corporate value so that it can meet the criteria for maintaining a stable listing.
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