Consolidated Financial Results for the First Quarter of
Fiscal Year Ending March 31, 2024
August 9, 2023 released

Company name:
Stock listing:Code number:
URL:
Representative:
Inquiries:

Sun Frontier Fudousan Co., Ltd.
Tokyo Stock Exchange Prime Section
8934
https://www.sunfrt.co.jp/en/
Seiichi Saito, President
Takeshi Hirahara, Executive Officer, General Manager of Corporate Planning Department(Phone: +81-3-5521-1301)
Scheduled date of quarterly securities report submission: August 10, 2023
Scheduled date of dividend payment commencement: Supplemental materials for the financial results: Yes
Presentation to explain for the financial results: Yes (For institutional investors and analysts)*Amounts are rounded down to millions of yen.

1.Consolidated Performance in the First Quarter of Fiscal Year Ending March 31, 2024
(1) Consolidated Operating Results(“¥ ” indicates millions of yen, percentage figures indicate year-on-year changes.)

Net Sales

Operating Profit

Ordinary Profit

Net Income

FY2024/3 1Q ¥ 18,452-19.4%¥ 4,206-36.9%¥ 4,184-37.4%¥3,134-33.2%FY2023/3 1Q-26.6%¥ 6,668-9.2%¥ 6,690-8.1%¥ 4,690-2.3%¥22,903(Note) Comprehensive income: FY2024/3 1Q : 3,168 millions of yen (-35.8%)(Note) Comprehensive income: FY2023/3 1Q : 4,936 millions of yen (0.6%)
Fully Diluted
Earnings per Shareearnings per Share
(yen)
(yen)
FY2024/3 1Q

64.60

64.54

FY2023/3 1Q

96.45

96.36

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio (%)

FY2024/3 1Q¥ 151,056¥ 85,918

54.7%

FY2023/3¥ 152,519¥ 83,965

52.9%(Reference) Equity: FY2024/3 1Q : 82,654 millions of yen(Reference) Equity: FY2023/3: 80,702 millions of yen
2.Cash Dividends
Cash Dividends per Share (yen)
2nd quarter3rd quarter
Year end
end
end
23.00
25.00

Annual Total

FY2024/3
FY2024/3
26.00
26.00
(Forecast)(Note) Changes from the latest released dividend forecast: No.

52.00

FY2023/3

1st quarter
end
-

-1

48.00

3.Forecast for Consolidated Financial Results for FY2024/3 (April 1, 2023 to March 31, 2024)(“¥ ” indicates millions of yen, percentage figures indicate year-on-year changes.)

Net Sales
Full
year

¥83,000

0.3%

Operating Profit¥16,500

10.7%

Ordinary Profit¥16,000

8.7%

Profit Attributable to
Owners of Parent

EPS
(yen)

¥11,000

226.72‐5.3%(Note) Changes from the latest forecast: No.
※ Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changing
scope of consolidation): None
New companies: Excluded companies: (2) Adaption of special accounting practices in the preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, estimates and retrospective restatement
1) Changes in accounting policies due to changes in accounting standard:
2) Changes in accounting policies other than 1) above:3) Changes in accounting estimates:
4) Retrospective restatement:

None
Yes
None
None

(4) Number of outstanding shares (common stock)1) Number of outstanding shares at the endof the period (including treasury stock):

FY2024/3
1Q

48,755,500
shares

FY2023/3

48,755,500
shares2) Number of shares of treasury stock at theend of the period:

FY2024/3
1Q

237,702
shares

FY2023/3

237,169
shares3) Average number of shares for the period(April 1, 2023 to June 30, 2023):

FY2024/3
1Q

48,517,865
shares

FY2023/3
1Q

48,630,896
shares(Note) The increase in the number of shares of treasury stock at the end of the first quarter in FY2024/3 fromthe end of FY2023/3 is due to the free transfer of 533 shares of restricted stock as renumeration held by theformer employees, who resigned themselves during their terms in this period.
※This Summary of Consolidated Financial Results is exempt from audit process by Certified public
accountants or auditors.
※Explanation for appropriate use of forecast and other special matters
Forward-looking statements, such as forecast of consolidated financial performance, stated in thisdocument are based on information currently possessed by the Company as well as certain assumptions
deemed rational. It does not mean that the Company assurances that the contents mentioned in these forwardlooking statements will ever materialize. Actual financial performance may be significantly different fromsuch expectations due to various factors. For further information on assumptions used in forecasts, please
see Page 8, 1. (3) Forward-Looking Statements such as Consolidated Earnings Forecasts.

-2

Accompanying Materials
Contents
1. Qualitative information regarding consolidated performance for the first three months ............................4(1) Business Performance .............................................................................................................................4(2) Consolidated Financial Position ..............................................................................................................8(3) Forward-Looking Statements such as Consolidated Earnings Forecasts ................................................8
2． Quarterly Consolidated Financial Statements and Key Notes .................................................................9(1) Consolidated Balance Sheet ....................................................................................................................9(2) Consolidated Statements of Income and Comprehensive Income ........................................................ 11(3) Notes of Consolidated Financial Statements .........................................................................................13(Notes of Assumption of Going Concern) ..................................................................................................13(Notes of Significant Changes in the Amount of Shareholders’ Equity) ....................................................13(Change of Accounting Policies) ................................................................................................................13(Additional Information) .............................................................................................................................13(Segment Information, etc.) ........................................................................................................................15-3

1. Qualitative information regarding consolidated performance for the first three months(1) Business Performance
Forward-looking statements in this document are based on the judgments of the Group as of the end of thefirst quarter of the fiscal year ending March 31, 2024.
During the three months ended June 30, 2023 (hereinafter referred to as the current period), the Japanese
economy continued to recover mainly in personal consumption and capital investment, while theemployment and income environment improved. With regard to the global economy, there were concernsthat the Ukraine problem was prolonged, inflation in various countries remained high, and interest rate hikes
will lead to economic slowdown.
In the real estate market, the average rent in the Tokyo business district (5 Wards of the Central Tokyo:
Chiyoda, Chuo, Minato, Shinjuku and Shibuya) in June was 19,838 yen (unit price per tsubo), down for the
35th consecutive month (total 3,176 yen / 13.8%) from the peak (July 2020), and the average vacancy rate
for the same month was almost unchanged at 6.48% (according to a private research institution). Overall
office market conditions remained weak. At the same time, in the real estate investment market, although thewillingness to invest in institutional investors was generally strong, the outlook remained unpredictable dueto the continued global monetary tightening measures.
In the current period under review, both revenue and profit decreased year on year in Real Estate
Revitalization Business, the core business in the Group, due to a reactionary decline following theconcentration of property sales in the same period of the previous fiscal year. However, this was in line with
the initial plan results in Real Estate Service Business. In Hotel Development Business, the completion of
the sale of one hotel resulted in a significant year-on-year increase in both revenues and earnings. In Hotel
Operation Business, net sales increased and a profit was posted compared with the same period on the backof an increase in travel demands resulting from the Nationwide Travel Subsidy Program and the recovery of
foreign tourists visiting Japan.
As a result, results for the current period under review were as follows: net sales 18,452 million yen (down
19.4% YoY), operating profit 4,206 million yen (down 36.9% YoY), ordinary profit 4,184 million yen (down
37.2% YoY), and profit attributable to owners of parent 3,150 million yen (down 32.8%)
The results of each segment are as follows.
(Real Estate Revitalization Business)
In the Real Estate Revitalization Business, we are engaged in (1) Replanning Business and (2) Rental
Building Business.
(1) In the Replanning Business, all processes from purchase of buildings to revitalization and usage planningand development, tenant placement, management, sales, and subsequent support with building management
are offered as a one stop service. Although sales in the current period under review declined from the same
period of the previous fiscal year, investors continued to have a strong desire to purchase, and sales havebeen steady since entering the second quarter. At the same time, the Group is actively purchasing properties
while monitoring the impact of macroeconomic fluctuations real estate market conditions and financial
policies. In this the end of the period, purchases, including contracted and unsettled properties, progressed
at a pace 20% higher than the level prior to the pandemic of COVID-19. In commercialization, we aim to
make the office of choice in the new normal by responding to hybrid work styles while anticipating changes
in the city, office, and working styles. During the current period, the Company proceeded with thecommercialization of the Set-up Office, which was completed in advance and enabled a significant reduction
in labor, time, and expenses required for tenants to move in and out of the office. Through coordinate withthe leasing division, we promoted attraction of tenants and completed real estate products with high-4

occupancy rates and high added value, thereby selling products that meet the expectations of a wide rangeof clients in Japan and overseas. For example, we upgraded the value of properties that used to haveaccommodation equipment and bathrooms in capsule hotels and property for which daylighting was difficult
to set-up offices and sold them as high-capacity, high-profit buildings. However, compared to the same periodof the previous year, when nearly 50% of the sales for the whole year were concentrated, the number of sales
for the current period was halved, resulting in a decrease in net sales and profits. Full-scale sales are expected
to begin in the second quarter of this fiscal year, and full-year net sales sales are expected to increase by 10%
from the previous fiscal year. Sales are currently proceeding smoothly, and there are no changes to the fullyear sales plan. In June 2023, we began selling our newly approved small-lot nursery school in Nerima-ku,
Tokyo, contributing to the lives of local communities and society.
(2) In Rental Building Business, with the aim of building a stable revenue base as a stock business, we will
expand the number of rental buildings properties in Replanning Business and utilize the operational
capabilities we have accumulated in Real Estate Service division to increase rent income over the medium
to long term. Compared with the same period of the previous fiscal year, net sales and profits increased due
to an increase in rent income in line with an increase in inventories, in part due to steady procurement.
As a result, net sales for Real Estate Revitalization Business as a whole decreased by 58.6% YoY to 7,693
million yen, and segment profit decreased by 71.1% YoY to 2,047 million yen.
Based on the concept of “making Tokyo the most friendly city for startups in the world”, the Group is
promoting initiatives to support startups. As part of that initiatives, we coordinated with several venture
capital and start-up support companies to launch the “START-UP FRONTIER TOKYO” project. As a kickoff event for this project, we plan to hold the “FRONTIER PITCH TOKYO for Startups 2023” contest in
September this year under the theme of “Japan's Future Ten Years from Now.” The top companies in thiscontest will be granted free office space managed by the Group for a certain period of time to accelerate thegrowth of start-up companies that will be responsible for future economic growth.
(Real Estate Service Business)
In the Real Estate Service Business, we are engaged in (1) Property Management Business, (2) Building
Maintenance Business, (3) Sales Brokerage Business, (4) Leasing Brokerage Business, (5) Rental
Conference Room Business, and (6) Rent Guarantee Business. Each of these divisions is developing its
business in the office sector in central Tokyo by bringing together the expertise that has cultivated in the fieldand coordinating and working with each other. Also added value is created through a chain-reaction ofexpertise cultivated through originality and ingenuity in the field and this is the foundation for creating highprofitability in the Replanning Business(1) In the Property Management Business, we are increasing the satisfaction of tenants through attentive
property management and supporting owners also by realizing high-occupancy and high-profitability
building management by working with the leasing brokerage division to attract tenants and revising theconditions for appropriate rent. Against a backdrop of weak market conditions, the Company posted yearon-year growth of 24 building increase in number of entrusted buildings, as well as increases in net sales andprofits.
End of June 2021

End of June 2022

End of June 2023

Number of
Entrusted Buildings

403 buildings

440 buildings

464 buildings

Occupancy Rate

93.5%

91.8%

90.8%

-5

(2) In the Building Maintenance Business, under the slogan “making Tokyo the most beautiful city in theworld,” we are conducting total maintenance of buildings, including inspections to maintain and manage thebuilding, cleaning to maintain beautiful and comfortable spaces, and renovation construction. We arepromoting cooperation with the Property Management division, taking advantage of high-rise cleaning of
exterior windows and walls using swings, as well as waterproofing construction and exterior wall renovation
construction. In the current period under review, net sales decreased from the same period of the previous
fiscal year due to a decrease in Corona disinfection and cancellations of unprofitable sites. As a result,personnel expenses could not be absorbed, and profits also decreased. However, the total number of buildings
under management increased by nearly 9%(3) In the Sales Brokerage Business, as a part of real estate consulting, we are responding swiftly to inquiries
from Property Management Business and the Leasing Brokerage Business and other divisions. Officedivision works together to support owners managing buildings and expand the customer base. Based on thetrust we have built, we are able to close brokerage deals. Results for the current period under review showeda decline in both net sales and profits due to a reaction to the absence of large-scale projects in the same
period of the previous fiscal year.
(4) In the Leasing Brokerage Business, we provide a service network based in 10 sites, mainly in central
Tokyo, and serve as a convenient consultation window that is close to local building owners. In addition, by
utilizing the needs and changes of tenants quickly acquired at leasing sites in research and proposals for
optimal use of office space, we are creating new value from the customer's point of view in product planningfor the Replanning Business. As a result of an increase in the number of successful contracts, results for thecurrent period under review increased year-on-year, as well as net sales and profits.
(5) In the Rental Conference Room Business, we have provided services that capture the changing times andhave responded flexibly to clients’ needs through close contact with local communities and implemented
flexible proposal-based marketing. Consequently, we were able to capture demand from new clients. In thecurrent period under review, demand for corporate training, seminars, certification tests, and nationwide
academic conferences and events further increased, and orders increased in each rental conference room,
including site, which was newly established after September 2022, and site, where the number of expanded
rooms was increased. As a result, both net sales and profits increased year on yea(6) In the Rent Guarantee Business, we provide services that are close to building owners, such as not only
providing rent guarantees when tenants fall behind in their rent payments, but also providing support for
tenants to vacate their property, thereby easing the burden on building management. “TRI-WINS” a new
brand launched in February 2023, is a “win-win-win” service that resolves the risks and issues faced by bothbuilding owners and tenants and contributes to economic growth and social stability.
Compared with the same period of the previous fiscal year, both revenue and profit decreased due to areactionary decline from the same period of the previous fiscal year, when there were intra-group transactions.
However, both the number of new contracts of guarantee and secondary contracts of guarantee increased due
to an increase in demand from building owners due to an increase in vacant rooms and concerns about thecreditworthiness of tenants.
As a result, the net sales for Real Estate Service Business as a whole increased by 11.6% YoY to 2,665
million yen, and the segment profit decreased by 0.6% YoY to 1,551 million yen..
(Hotel and Tourism Business)
In the Hotel and Tourism Business, we are engaged in (1) Hotel Development Business and (2) Hotel
Operation Business.

-6

(1) Hotel Development Business operations involve the revitalization of existing hotels and thedevelopment of new hotels, which are sold as investment products targeting medium-to long-term earnings
to investors and wealthy individual investors in Japan and overseas. During the period under review, theCompany sold one hotel in April 2023, resulting in year-on-year increases in net sales and earnings. As aresult, the handover of all hotels contracted for sale in August 2022, including the two hotels sold in
October 2022, has been completed. Furthermore, with the sale of these three hotels, we will reinvest in
hotel development, including M&A, and expand our operations in return, focusing on the Tabi-no-Hotelbrand and condominiums. In July 2023, the Group concluded the coordinate Agreement for Regional
Development with the city of Sakata in Yamagata Prefecture. Under this agreement, the two parties jointly
aim to further promote regional development and revitalization. In the Group, we plan to build a hotel inthe central urban area of Sakata City under the theme of “a heartwarming and fun hotel” and with theconcept of “making it the one and only hotel in the world for clients.” As well as the hotel construction
project in Sakata City, we are currently proceeding with hotel development projects in Ishikari City,
Hokkaido and Fujikawaguchiko, Yamanashi Prefecture. Through the hotels developed and managed by theGroup, we aim to increase the number of people who interact with each other and revitalize the local
community. We also aim to create local happiness by creating jobs in the local community.
(2) In Hotel Operation Business, we operate a total of 21 hotels with 2,373 rooms nationwide (as of August
9, 2023). In the period under review, demand for domestic tourism continued to increase on the back of theextension of Nationwide Travel Subsidy Program and an increase in the number of foreign tourists visiting
Japan. Based on the Group’s high-value-added strategies, occupancy rates and average daily rates rose at all
hotels we operate. As a result, net sales increased from the same period of the previous fiscal year, and werecorded a profit. As a new initiative, on June 23, 2023, we began operating serviced apartments “Tabino
Hotel Live Sado” in Sado, Niigata. This serviced apartment was born from the voice of repeat customers of“Tabino Hotel Sado” and is fully equipped with daily necessities so that even a long-term stay customers canstay comfortably. In addition, customers can use the large public bath of “Tabino Hotel Sado” which islocated 2 minutes away on foot, and it is a serviced apartment where you can experience a “heartwarming
and fun hotel” of the Group. Although there were concerns about a decline in domestic tourism demand at
the end of June due to the closure of the Nationwide Travel Subsidy Program in most prefectures, it continues
to be strong due to a further increase in the number of foreign tourists visiting Japan. Thanks to this, thehotels managed by the Group continue to have high occupancy rates and average daily rates.
As a result, net sales for Hotel and Tourism Business as a whole increased by 318.7% YoY to 8,029 million
yen, and segment profit recorded a loss of 2,638 million yen (compared with a loss of 252 million yen in thesame period of the previous fiscal year).
(Other Business)
In Other Business, we are engaged in (1) Overseas Development Business and (2) Construction Business.
(1) In the Overseas Development Business, we have expanded into Southeast Asian countries where growthis expected and have developed real estate mainly for condominiums and houses using Japanese advanced
construction technology. We are developing its business with a focus on providing an experience of Japanesequality to Asian people. In the current period under review, we are promoting condominium management
operations as a stock business and condominium development in Vietnam, resulting in almost flat sales andprofits. The business in Indonesia is under liquidation procedures.
(2) In the Construction Business, renovation planning, repair and reform of commercial buildings, interior
finishing work, and telecommunications work were carried out. Compared with the same period of theprevious fiscal year, earnings increased in net sales due to the continued completion of large-scaleconstruction projects at Group subsidiaries and increased sales of telecommunications construction projects
for offices. However, profits decreased due to an increase in construction projects of lower profit margin.
-7

As a result, sales in net sales increased 20.4% YoY to 368 million yen and sales in segment profit decreased
8.1% YoY to 33 million yen.
The Group is promoting sustainability management under the vision of “contributing to the realization of asustainable society through our corporate activities while taking care of the Company policy (Credo).” In thecurrent period under review, in June 2023, we posted on our sustainability website the progress of specificmeasures and KPIs based on the Key Issues (materiality). In the fiscal year ended March 31, 2023, weachieved 12 of the 13 targets (four of which are measures to be implemented in the fiscal year ended March
31, 2024). In addition, as one measure that does not set KPIs, we are strengthening activities in coordination
with the local community, such as aiming to acquire SDGs partner certification for the local government at
each hotel. At the same time, in June 2023, we began information disclosure based on the TCFD*
Recommendations and began consolidated reporting of greenhouse gas emissions (Scope1, 2), aiming tofurther improve the level of information disclosure. In July 2023, Aozora Bank, Ltd. recognized the Group's
initiatives to solving social issues through its business activities, and Aozora Bank, Ltd. entered into a
positive impact finance agreement based on the Aozora ESG Framework Loan, the first of its kind. We willcontinue to promote sustainability activities through our operations with the aim of resolving the three key
issues of environmental protection, regional revitalization, and human resource development.
*TCFD：Task Force on Climate-related Financial Disclosures(2) Consolidated Financial Position
Total assets at the end of the current consolidated fiscal year amounted to 151,056 million yen (down 1.0%
compared with the end of the previous fiscal year), liability amounted to 65,137 million yen (down 5.0%
compared with the end of the previous fiscal year), and net assets amounted to 85,918 million yen (up 2.3%
compared with the end of the previous fiscal year).
The decrease in total assets was mainly due to an increase of 3,032 million yen in real estate for sale, 128
million yen in real estate for sale in process, and 195 million yen in land, offset by a decrease of 4,409 million
yen in cash and time deposits and 507 million yen in deferred tax assets.
The decrease in liabilities was mainly due to an increase of 4,805 million yen in current portion of long-termborrowings, offset by a decrease of 1,113 million yen in income taxes payable, and a decrease of 5,908
million yen in long-term borrowings.
The increase in net assets was mainly due to the recording of 3,134 million yen in profit attributable toowners of parent, which offset the year-end dividend payment of 1,216 million yen.
Equity ratio increased 1.8% from the same period of the previous fiscal year to 54.7%(3) Forward-Looking Statements such as Consolidated Earnings Forecasts
There are no changes to the forecasts for the fiscal year ending March 31, 2024 announced on May 12, 2023.

-8

2． Quarterly Consolidated Financial Statements and Key Notes(1) Consolidated Balance Sheet(Unit: million yen)
As of March 31, 2023
AssetsCurrent assets
Cash and time deposits
Notes, accounts receivable, and contract
assetsReal estate for sale
Real estate for sale in process
Costs of uncompleted construction
contracts
Supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings (net amount)
Land
Other (net amount)
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-9

As of June 30, 2023

42,016

37,606

1,625

1,542

19,78160,254

22,81460,382

57

72

87
2,080
-18
125,886

82
2,136
-22
124,615

9,528
10,117764
20,4109,445
10,312816
20,574

343
472
815

327
534
861

3,210
2,033
173
-11
5,406
26,633
152,519

3,037
1,526
453
-12
5,004
26,440151,056

(Unit: million yen)
As of March 31, 2023
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (andother officers)
Provision for fulfillment of guarantees
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Provision for share-based remuneration
Other
Total non-current liabilities
Total liabilities
Net Assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive
incomeShare acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets-10

As of June 30, 2023

2,106
50
5,442
1,699
237

1,972
50
10,248
585
138

73

20

22
6,731
16,36323
5,764
18,80350,1705
83
1,930
52,19068,55344,2613
86
1,981
46,333
65,137

11,965
6,445
62,289-270
80,43011,965
6,445
64,208-270
82,348

2

2

269

303

271

306

30
3,233
83,965
152,51930
3,233
85,918151,056

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income(Unit: million yen)
For the three months
ended June 30, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of shares of subsidiaries andaffiliates
Total extraordinary income
Extraordinary loss
Loss on retirement of non-current assets
Total extraordinary loss
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit/loss attributable to non-controllinginterests
Profit attributable to owners of parent-11

For the three months
ended June 30, 2023

22,903
14,384
8,519
1,850
6,668

18,452
12,146
6,306
2,099
4,206

10
111
45
167

21
78
25
125

126
19
145
6,690

128
18
147
4,184

101

-

101

-

6,792
1,852
161
2,014
4,777

23
23
4,161
524
503
1,028
3,132

87

-1

4,690

3,134

Consolidated Statement of Comprehensive Income(Unit: million yen)
For the three months
ended June 30, 2022
ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests-12

For the three months
ended June 30, 2023

4,777

3,132

-0

0

159
158
4,936

35
35
3,168

4,838
98

3,169
-0

(3) Notes of Consolidated Financial Statements(Notes of Assumption of Going Concern)
Not applicable.
(Notes of Significant Changes in the Amount of Shareholders’ Equity)
I For FY2023/3 1Q (April 1, 2022 to June 30, 2022)
1. Dividend paid
Resolution

Type of shares

Annual General
Meeting of
Shareholders,June 21, 2022

Common shares

Total dividends(million yen)

Dividends per share
(yen)

1,121

23.00

Record date

Effective date

Source ofdividends

March 31, 2022

June 22, 2022

Retained earnings

Note: The total amount of dividends decided at the Annual General Meeting of Shareholders on June 21, 2022 includes dividendsof 1 million yen for the Company’s shares held by the trust account of the Employee Stock Ownership Plan (J-ESOP).

2. Dividends for which the record date is during FY2023/3 1Q and the effective date is after the last day of
FY2023/3 1Q
Not applicable.
II For FY2024/3 1Q (April 1, 2023 to June 30, 2023)
1. Dividend paid
Resolution

Type of shares

Board of Directors,
May 16, 2023

Common shares

Total dividends(million yen)

Dividends per share
(yen)

1,216

25.00

Record date

Effective date

Source ofdividends

March 31, 2023

June 28, 2023

Retained earnings

Note: The total amount of dividends decided at the Board of Directors on May 16, 2023 includes dividends of 3 million yen for
the Company’s shares held by the trust account of the Employee Stock Ownership Plan (J-ESOP).

2. Dividends for which the record date is during FY2024/3 1Q and the effective date is after the last day of
FY2024/3 1Q
Not applicable.
(Change of Accounting Policies)(Change in Translation Method for Revenue and Expenses of Foreign Subsidiaries)
Revenue and expenses of foreign subsidiaries were previously translated into Japanese yen at the spot
exchange rate as of the date the foreign subsidiary closes their books. However, from the beginning of
the first three months ended June 30, 2023, the Company has changed to a method of translating revenue
and expenses into Japanese yen at the average exchange rate during the period. This change was madein order to mitigate the effect of temporary fluctuations in foreign exchange rates on the profits andlosses of the Group’s subsidiaries and more appropriately reflect the performance of foreign subsidiaries
on the consolidated financial statements. The impact on the profits and losses of foreign subsidiaries is
expected to become more important due to the expansion of overseas operations amid the increasing
range of exchange rate fluctuations caused by the increasingly complex international situation in recent
years.
As the effect of this change is insignificant, it has not been applied retroactively.
(Additional Information)
Transactions of Delivering the Company’s Own Shares to Employees etc. through Trusts
The Company conducts transactions to deliver its own shares through trust for the purpose of employee
welfare.
(i) Overview of transaction-13

The plan provides the Company's shares to employees of the Company who meet certain requirements
based on the share benefit regulations established by the Company in advance. The Company will grant
points to employees who satisfy certain conditions at the end of the fiscal year, and when they acquire theright to receive benefits, the Company shares corresponding to the granted points will be delivered. The
shares to be granted to employees are acquired in the future with the money set in trust in advance andmanaged separately as trust assets. The total amount method is applied to the Employee Stock Ownership
Plan (J-ESOP) in accordance with the “Practical Solution on Transactions of Delivering the Company’s
Own Shares to Employees etc. through Trusts” (ASBJ PITF No. 30, March 26, 2015).
(ii) Own shares remaining in the trust
The book value of the Company's shares remaining in the trust (excluding the amount of incidental
expenses) is included in net assets. The book value and number of shares of the treasury shares as of June30, 2023 were 157 million yen and 128,300 shares.

-14

(Segment Information, etc.)
Segment Information
I For FY 2023/3 1Q (April 1, 2022 to June 30, 2022)
1. Information on net sales and profit and disaggregation of revenue for each reportable segment(Unit: million yen)
Reportable segment
Real Estate Real Estate
Revitalization
ServiceBusiness
Business
Net sales
Revenue fromcontracts withcustomers
Other revenue(Note 2)
Net sales to externalcustomers
Internal sales ortransfers between
segments

Hotel andTourism
Business

Subtotal

Other(Note 1)

Total

18,078

1,782

1,880

21,741305

22,046

499

326

31

857

-

857

18,577

2,109

1,911

22,598305

22,903

5

278

6

289

0

290

Subtotal

18,582

2,387

1,917

22,887306

23,193

Segment profit (loss)

7,087

1,561

-252

8,395

36

8,432

Notes:1. The “Other” segment is a business segment that is not included in the reportable segment and includes the Overseas
Development Business, Construction Business, etc.
2. Other income is rental income, etc., based on ASBJ No. 13 “Accounting Standard for Lease Transactions”.

2. The difference between the total amount of the report segment's profit or loss and the amount recorded in
the Consolidated Statement of Income and the main content of the difference (matters related to thedifference adjustment)(Unit: million yen)
ProfitAmountReportable segment total

8,395

Profit in the “Other” category

36

Elimination of intersegment transactions-3

Corporate expenses (Note)-1,737

Ordinary profit in the consolidated statement of income

6,690

Note: Corporate expenses are mainly general and administrative expenses not attributable to the reportable segment.

3. Information on impairment loss or goodwill of fixed assets for each reportable segment
Not applicable.

-15

II For FY2024/3 1Q (April 1, 2023 to June 30, 2023)
1. Information on net sales and profit and disaggregation of revenue for each reportable segment(Unit: million yen)
Reportable segment
Real Estate Real Estate
Revitalization
ServiceBusiness
Business
Net sales
Revenue fromcontracts withcustomers
Other revenue(Note 2)
Net sales toexternal customers
Internal sales ortransfers between
segments

Hotel andTourism
Business

Subtotal

Other(Note 1)

Total

7,089

2,039

7,985

17,115368

17,484

598

337

32

968

-

968

7,688

2,377

8,018

18,084368

18,452

4

287

11

303

0

303

Total

7,693

2,665

8,029

18,388368

18,756

Segment profit

2,047

1,551

2,638

6,237

33

6,270

Notes: 1. The “Other” segment is a business segment that is not included in the reportable segment and includes the Overseas
Development Business, Construction Business, etc.
2. Other income is rental income, etc., based on ASBJ No. 13 “Accounting Standard for Lease Transactions”.

2. The difference between the total amount of the report segment's profit or loss and the amount recorded in
the Consolidated Statement of Income and the main content of the difference (matters related to thedifference adjustment)(Unit: million yen)
ProfitAmountReportable segment total

6,237

Profit in the “Other” category

33

Elimination of intersegment transactions-11

Corporate expenses (Note)-2,074

Ordinary profit in the consolidated statement of income

4,184

Note: Corporate expenses are mainly general and administrative expenses not attributable to the reportable segment.

3. Information on impairment loss or goodwill of fixed assets for each reportable segment
Not applicable.

-16