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Earnings presentation materials7038Frontier Management Inc.Information and Communications, Services and Others

Third-Quarter Financial Results Briefing Materials for the Fiscal Year Ending December 2026

For the nine months ended September 2026, consolidated revenue increased and operating income and ordinary income turned profitable, due to HLJ's contribution following its consolidation, the recovery of the M&A advisory business and cost reductions from structural reforms. However, the full-year earnings forecast was revised downward because of weak performance in the restructuring business and delays in the closing of M&A transactions.

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Contents of this document

Earnings presentation materialsThird quarter of the fiscal year ending December 20265 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥10,007 million+114.0%
Operating profit¥153 million
Ordinary income¥20 million
Net income¥-141 million
Full-year earnings forecast
ALL consolidated
Net Sales
¥13,200 million
Operating profit
¥-225 million
Ordinary income
¥-420 million
Profit attributable to owners of the parent
¥-550 million
Consolidated excluding FCI
Net Sales
¥7,550 million
Operating profit
¥-230 million
Ordinary income
¥-245 million
Profit attributable to owners of the parent
¥-265 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¥-614 million
  • Management consulting revenue¥-383 million
  • M&A advisory revenue¥376 million
  • Personnel expenses, including recruiting costs¥304 million
  • Other expenses¥253 million
  • Subsidiaries and other entities¥307 million
  • Non-Operating Income and Expenses¥85 million
New initiatives
  • Strengthening end-to-end due diligence and post-merger integration services for mid-cap companies, including the establishment of an M&A Strategy Office
  • Strengthening cross-border support partnerships with CFI and Athema
  • Strengthening recruitment and training in the management consulting business
  • Acquiring investment opportunities focused on regional areas through FCI and promoting roll-ups of portfolio companies
  • Strengthening HLJ's digital marketing, multilingual capabilities and customer touchpoints
Key KPIsA metric the company considers important as a management benchmark.
  • EBITDA¥591 million
    Year-on-year (%)280
  • Number of investments executed (fiscal 2026)3 cases
  • Cumulative number of investment transactions10 cases
  • Investment pipeline2 cases
  • Headcount (excluding HLJ)350 people
Segment results
  • Consulting-related businesses
    Net Sales¥4,259 million
    Year-on-year (%)81
  • M&A advisory business
    Net Sales¥1,350 million
    Year-on-year (%)139
  • Investment Business
Number of employees
Number of Employees350 people
ChangeDown 10% from the end of the previous fiscal year
Contents of this document
ItemDetails
Document typeEarnings presentation materials
Fiscal Period CoveredThird quarter of the fiscal year ending December 2026
Net Sales¥10,007 million (YoY +114.0%)
Operating profit¥153 million
Ordinary income¥20 million
Net income¥-141 million
Full-year earnings forecastALL consolidated Net Sales ¥13,200 million / Operating profit ¥-225 million / Ordinary income ¥-420 million / Profit attributable to owners of the parent ¥-550 million / Consolidated excluding FCI Net Sales ¥7,550 million / Operating profit ¥-230 million / Ordinary income ¥-245 million / Profit attributable to owners of the parent ¥-265 million
Segment resultsSegment Consulting-related businesses / Net Sales ¥4,259 million / Year-on-year (%) 81 / Profit Not disclosed, Segment M&A advisory business / Net Sales ¥1,350 million / Year-on-year (%) 139 / Profit Not disclosed, Segment Investment Business / Net Sales Not disclosed / Profit Not disclosed
Breakdown of Factors Affecting the ChangeFactors Turnaround support revenue / Amount ¥-614 million, Factors Management consulting revenue / Amount ¥-383 million, Factors M&A advisory revenue / Amount ¥376 million, Factors Personnel expenses, including recruiting costs / Amount ¥304 million, Factors Other expenses / Amount ¥253 million, Factors Subsidiaries and other entities / Amount ¥307 million, Factors Non-Operating Income and Expenses / Amount ¥85 million
Key KPIsIndicator EBITDA / Value ¥591 million / Year-on-year (%) ¥280 million, Indicator Number of investments executed (fiscal 2026) / Value 3 cases / Year on year against the same period last year Not disclosed, Indicator Cumulative number of investment transactions / Value 10 cases / Year on year against the same period last year Not disclosed, Indicator Investment pipeline / Value 2 cases / Year on year against the same period last year Not disclosed, Indicator Headcount (excluding HLJ) / Value 350 people / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees 350 people / Change Down 10% from the end of the previous fiscal year
New initiativesStrengthening end-to-end due diligence and post-merger integration services for mid-cap companies, including the establishment of an M&A Strategy Office, Strengthening cross-border support partnerships with CFI and Athema, Strengthening recruitment and training in the management consulting business, Acquiring investment opportunities focused on regional areas through FCI and promoting roll-ups of portfolio companies, Strengthening HLJ's digital marketing, multilingual capabilities and customer touchpoints
Items this document does not state (19)
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 backlogMarket Size / ShareKey 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 company cited HLJ's full-year contribution following its consolidation from the previous year, the recovery of the M&A advisory business, a focus on priority sectors and transaction themes, reductions in personnel expenses and other fixed costs through structural reforms, and a decrease in one-off expenses incurred in the same period of the previous year as reasons for the increase in revenue and improvement in earnings. The reasons for revising the full-year forecast were weak performance in the restructuring business and delays in the closing of M&A transactions.

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Third-Quarter Financial Results Briefing Materials for the Fiscal Year Ending December 2026 | Frontier Management Inc. (7038) timely disclosure | Komori