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Presentation materials on financial results7038Frontier Management Inc.Information and Communications, Services and Others

Financial Results Presentation for the Second Quarter of the Fiscal Year Ending December 2026

For the cumulative second quarter of the fiscal year ending December 2026, consolidated revenue increased 20% year on year to ¥6,944 million, driven by the consolidation of HLJ and the recovery of the M&A advisory business. Operating income turned positive at ¥83 million, compared with an operating loss of ¥10 million in the same period of the previous year, while net income attributable to owners of the parent remained negative at ¥115 million.

Worth reading
38Recurring
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
1173
¥ million
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials on financial resultsSecond quarter of the fiscal year ending December 20266 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥6,944 million+20.0%
Operating profit¥83 million
Ordinary income¥-4 million
Net income¥-115 million
Full-year earnings forecast
Net Sales
¥15,000 million
Operating profit
¥610 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Turnaround support revenue
    Change in amount-418
  • Management consulting revenue
    Change in amount-208
  • M&A revenue
    Change in amount368
  • Personnel expenses, including recruiting costs
    Change in amount194
  • Other expenses
    Change in amount95
  • Subsidiaries and other entities
    Change in amount164
New initiatives
  • Strengthening the sector marketing structure
  • Sales activities focused on growth investments, carve-outs, MBOs and take-private transactions
  • Accelerating collaboration on cross-border deals with Athema and the CFI Group
  • Strengthening information sharing in Europe and Asia in addition to domestic deals
  • Improving workforce quality by stepping up recruitment at all levels and providing professional training
Key KPIsA metric the company considers important as a management benchmark.
  • Number of disclosed deals in the first half of FY20267 Engagements
    Year on year against the same period last year4 deals in the first half of FY2025
  • Number of investments executed in FY20262 Engagements
  • Cumulative number of investments executed9 Engagements
  • Deals awaiting investment execution1 Engagements
  • Deals for which exclusive negotiating rights have been obtained or that are undergoing due diligence2 Engagements
  • Number of countries in which the CFI Group operates20 countries
  • CFI's European ranking25 rank
    Year on year against the same period last year26th in 2024, 23rd in 2023
Segment results
  • Consulting-related businesses
    Net Sales¥2,896 million
    Year-on-year (%)79
  • M&A advisory business
    Net Sales¥1,136 million
    Year-on-year (%)164
  • Investment Business
Market Size / Share
Number of countries in which CFI operates20
CFI's European ranking25
Number of CFI deals76
Number of employees
369 people
As ofEnd of the second quarter of the fiscal year ending December 2026
Change during the period95% of the previous fiscal year-end level
Contents of this document
ItemDetails
Document typePresentation materials on financial results
Fiscal Period CoveredSecond quarter of the fiscal year ending December 2026
Net Sales¥6,944 million (YoY +20.0%)
Operating profit¥83 million
Ordinary income¥-4 million
Net income¥-115 million
Full-year earnings forecastNet Sales ¥15,000 million / Operating profit ¥610 million
Segment resultsSegment Consulting-related businesses / Net Sales ¥2,896 million / Year-on-year (%) 79 / Profit Not disclosed, Segment M&A advisory business / Net Sales ¥1,136 million / Year-on-year (%) 164 / Profit Not disclosed, Segment Investment Business / Net Sales Not disclosed / Year-on-year (%) Not disclosed / Profit Not disclosed
Breakdown of Factors Affecting the ChangeFactors Turnaround support revenue / Change in amount ¥-418 million, Factors Management consulting revenue / Change in amount ¥-208 million, Factors M&A revenue / Change in amount ¥368 million, Factors Personnel expenses, including recruiting costs / Change in amount ¥194 million, Factors Other expenses / Change in amount ¥95 million, Factors Subsidiaries and other entities / Change in amount ¥164 million
Key KPIsIndicator name Number of disclosed deals in the first half of FY2026 / Value 7 Engagements / Year on year against the same period last year 4 deals in the first half of FY2025, Indicator name Number of investments executed in FY2026 / Value 2 Engagements / Year on year against the same period last year Not disclosed, Indicator name Cumulative number of investments executed / Value 9 Engagements / Year on year against the same period last year Not disclosed, Indicator name Deals awaiting investment execution / Value 1 Engagements / Year on year against the same period last year Not disclosed, Indicator name Deals for which exclusive negotiating rights have been obtained or that are undergoing due diligence / Value 2 Engagements / Year on year against the same period last year Not disclosed, Indicator name Number of countries in which the CFI Group operates / Value 20 countries / Year on year against the same period last year Not disclosed, Indicator name CFI's European ranking / Value 25 rank / Year on year against the same period last year 26th in 2024, 23rd in 2023
Number of employees369 people
Market Size / ShareNumber of countries in which CFI operates 20 / CFI's European ranking 25 / Number of CFI deals 76
New initiativesStrengthening the sector marketing structure, Sales activities focused on growth investments, carve-outs, MBOs and take-private transactions, Accelerating collaboration on cross-border deals with Athema and the CFI Group, Strengthening information sharing in Europe and Asia in addition to domestic deals, Improving workforce quality by stepping up recruitment at all levels and providing professional training
Items this document does not state (18)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The increase in consolidated revenue was attributable to the inclusion of HLJ from the beginning of the fiscal year, following its consolidation in the previous year. The improvement in operating income resulted from the recovery of the M&A advisory business, workforce optimization, fixed-cost reductions and productivity improvements following structural reforms, and a narrowing of FCI's loss due to the increase in the number of investments. Net income improved because one-off expenses incurred in the previous year, including the costs of acquiring HLJ and FMI's structural reform costs, did not recur in the current period. However, the company remained in the red due to the tax burden associated with the amortization of goodwill at FCI's investment holdings, among other factors.

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Financial Results Presentation for the Second Quarter of the Fiscal Year Ending December 2026 | Frontier Management Inc. (7038) timely disclosure | Komori