Consolidated Financial Results for the First Quarterof the Fiscal Year Ending March 31, 2023

August 10, 2022 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
Seiichi Saito, President
Takeshi Hirahara, Executive Officer, General Manager of Corporate Planning Department(Phone: +81-3-5521-1301)
Scheduled date of dividend payment commencement: Scheduled date of quarterly securities report submission: August 12, 2022
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 the Fiscal Year Ending March 31, 2023
(1) Consolidated Operating Results(“¥” indicates millions of yen, percentage figures indicate year-on-year changes.)

Net Sales

Operating income

Ordinary income

The 1st Quarter of FY
ending March 31, 2023
¥22,903-26.6%¥6,668-9.2%¥6,690-8.1%
The 1st Quarter of FY
ending March 31, 2022
¥31,213128.3%¥7,340250.3%¥7,277272.8%(Note) Comprehensive income: 1st Quarter of FY ending March 31, 2023: 4,936 millions of yen (0.6%)
1st Quarter of FY ended March 31, 2022: 4,906 millions of yen (364.6%)
Fully Diluted
Net income
Net income per Share
Net income per Share
(Yen)
(Yen)
The 1st Quarter of FY
ending March 31, 2023
¥4,690
-2.3%
96.45
96.36
The 1st Quarter of FY
ending March 31, 2022
¥4,802287.7%
98.61
98.56(2) Consolidated Financial Position
Total Assets

The 1st Quarter of FY ending March 31, 2023

Net Assets¥136,686

Equity Ratio (%)¥78,11754.8%

FY ended March 31, 2022

¥136,512¥74,452
52.2%(Reference) Total Equity: 1st Quarter of FY ending March 31, 2023 (as of June 30, 2022): 74,850 millions of yen: FY ended March 31, 2022 (as of March 31, 2022):
71,282 millions of yen
2. Cash Dividends
Cash Dividends per Share (yen)stnd
1 quarter
2 quarter
3rd quarter
Year
Annual Total
end
end
end
end
FY ended March 31, 2022
21.00
23.00
44.00
FY ending March 31, 2023
FY ending March 31, 2023 (Forecast)
23.00
23.00
46.00
(Note) Changes from the latest released dividend forecast: No.
3. Forecast for Consolidated Financial Results for FY2023 (April 1, 2022 to March 31, 2023)(“¥” indicates millions of yen, percentage figures indicate year-on-year changes.)

Net Sales

Operating income

Ordinary income

Full
year
¥84,000
17.9% ¥13,300
9.7%¥12,800(Note) Changes from the latest released performance: No.
1

4.8%

Profit Attributableto Owners of
Parent¥8,30011.9%

Net Income
per share(yen)

170.67

※ Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changing scopeof 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 principles, procedures and presentation methods
1) Changes in accounting policies due to changes in accounting standard:Yes2) Changes in accounting policies other than 1) above:None3) Changes in accounting estimates:
None4) Retrospective restatement:
None(4) Number of outstanding shares (common stock)1) Number of outstanding shares at the end of the period (including treasury stock):
The 1st Quarter of FY ending March 31, 2023 (as of June 30, 2022) 48,755,500 shares
FY ended March 31, 2022 (as of March 31, 2022)
48,755,500 shares
2) Number of shares of treasury stock at the end of the period:
The 1st Quarter of FY ending March 31, 2023 (as of June 30, 2022): 200,444 shares
FY ended March 31, 2022 (as of March 31, 2022):
56,644 shares
3) Average number of shares for the period:
FY ended March 31, 2023 (as of March 31, 2023):
48,630,896 shares
FY ended March 31, 2022 (as of March 31, 2022)::
48,698,856 shares(Note) The number of shares of treasury stock at the end of 1st Quarter of FY ending March 31, 2023 includes the numberof shares purchased to grant restricted shares, based on the decision made by the Board of Directors at the board meeting
held on May 13, 2022.
*This Summary of Consolidated Financial Results is not subject to review processes under the Financial Instruments
and Exchange Act.
*Explanation for appropriate use of forecast and other special matters
Forward-looking statements, such as forecast of consolidated financial performance, stated in this document are basedon information currently possessed by the Company as well as certain assumptions deemed rational. It does not meanthat the Company assurances that the contents mentioned in these forward-looking statements will ever materialize.
Actual financial performance may be significantly different from such expectations due to various factors. For further
information on assumptions used in forecasts, please see Page 7, 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(1) Business Performance(2) Consolidated Financial Position(3) Forward-Looking Statements such as Consolidated Earnings Forecasts
2.Quarterly Consolidated Financial Statements and Key Notes(1) Consolidated Balance Sheet(2) Consolidated Statements of Income and Comprehensive Income(3) Notes to Consolidated Financial Statements(Notes to Assumption of Going Concern)(Notes on Significant Changes in the Amount of Shareholders' Equity)(Change of Accounting Policies)(Additional Information)(Segment Information, etc.)

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1. Qualitative information regarding consolidated performance for the first three months(1) Business Performance

Matters concerning the future in this document are those judged by the Group as of the end of the first quarterof the fiscal year ending March 31, 2023.
During the three months ended June 30, 2022, the Japanese economy showed signs of recovery, particularlyin personal consumption and capital investment, as restrictions on economic and social activities eased while
the impact of COVID-19 subsided. As for the global economy, there are concerns about stagflation causedby the prospect for the prolonged Ukraine issue, inflation and interest rate hikes in various countries, and theeconomic slowdown stemming from the lockdown in Shanghai, China.
In the real estate market, the average rent for June in the Tokyo Business District (5 wards of Central Tokyo:
Chiyoda, Chuo, Minato, Shinjuku, and Shibuya) was 20,273 yen (unit price per tsubo), down for the 23rdconsecutive month (total 2,741 yen / approximately 12%). The average vacancy rate for the same monthmostly remained flat at 6.39% according to a survey by a private research institution, and the overall officemarket remained weak. Meanwhile in the real estate investment market, although institutional investors’
demand remains high, the outlook remains unpredictable due to the global monetary tightening phase.
During the three months ended June 30, 2022, the Group’s core business, the Real Estate Revitalization
Business, achieved high profitability and high-quality commercialization. As a result, sales of real estate forsale were steady, and sales in the Real Estate Service Business continued to show stable performance. In the
Hotel Operation Business, which has been greatly affected by the pandemic of COVID-19, sales are on arecovery trend against the backdrop of increased demand due to the easing of restrictions on economic andsocial activities.
As a result, net sales amounted to 22,903 million yen (down 26.6% YoY), operating profit amounted to 6,668
million yen (down 9.2% YoY), ordinary profit amounted to 6,690 million yen (down 8.1% YoY), and profit
attributable to owners of parent amounted to 4,690 million yen (down 2.3% YoY).
The results of each segment are as follows.
(Real Estate Revitalization Business)
In the Real Estate Revitalization Business, we are engaged in (i) Replanning Business and (ii) Rental
Building Business.
(i) In the Replanning Business, we are performing all processes in-house, from purchasing buildings toplanning renovations, tenant placement, sales and after-sales support. Sales in the current consolidated
fiscal year were steady due to strong investor enthusiasm. As for purchases on the other hand, the Group
proactively selects properties while monitoring the impact of macroeconomic fluctuations on the realestate market and interest rate trends. In commercialization, we aim to create offices that fit a hybrid
working style and are sought-after even in the new normal, while anticipating changes in urban areas,
offices and work styles. Through coordination with the leasing brokerage division, the Group promoted
the attraction of tenants even during the COVID-19 pandemic and finished real estate products withhigh occupancy rates and high added value, thereby selling products that meet the expectations of awide range of clients in Japan and overseas. In the Real Estate Revitalization Business in New York,
we sold a commercialized property for the first time in order to meet the needs of our clients who wish
to diversify their asset portfolios. In the Replanning Business, including this property in New York, thenumber of buildings sold increased by 2 year-on-year to 10. However, sales of relatively large-scale
properties owned over the medium to long term decreased year-on-year. As a result, year-on-year net
sales and profits decreased. However, throughout all quarterly net sales and profits for the segment, the4

first quarter of the fiscal year under review marked the third highest level just behind the same periodof the previous fiscal year.
(ii) In the Rental Building Business, to build a stable revenue base as a “stock business”, the Group will
aim to increase rent income over the medium to long term by utilizing the operational capabilities
accumulated in the real estate service division while increasing the number of rental buildings in the
Replanning Business. Both net sales and profit were at the same level year-on-year.
As a result, net sales in the Real Estate Revitalization Business as a whole amounted to 18,582 million yen(down 32.3% YoY) and segment profit amounted to 7,087 million yen (down 13.9% YoY).
(Real Estate Service Business)
In the Real Estate Service Business, we are engaged in (i) Property Management Business, (ii) Building
Maintenance Business, (iii) Sales Brokerage Business, (iv) Leasing Brokerage Business, (v) Conference
Room Rental Business, and (iv) Rent Guarantee Business.
Each of these operating divisions is developing its businesses in the area of small to medium-sized officebuildings in central Tokyo by gathering their expertise and working together. This is also the foundation
for generating high profitability in the Replanning Business by creating added value through a chain
reaction of expertise cultivated through originality and ingenuity in the field.
(i) In the Property Management Business, the Company has achieved high-occupancy and highprofitability building management by raising the satisfaction level of tenants through attentive property
management, working with the leasing brokerage division to attract tenants, and working to revise theconditions for appropriate rents. As a result of growth in the number of managing buildings, both net
sales and profits increased year-on-year.
End of June 2020

End of June 2021

End of June 2022

Number of Managing
Buildings

397 buildings

403 buildings

440 buildings

Occupancy Rate

97.9%

93.5%

91.8%

(ii) In the Building Maintenance Business, the Group is promoting collaboration with the property
management division with its strength in high-rise cleaning of exterior windows and walls using
swings, waterproofing work and exterior wall renovation work. As the number of new managing
properties increased, both net sales and profits increased year-on-year.
(iii) In the Sales Brokerage Business, as part of our real estate consulting services, we are responding
quickly to requests for consultation from clients in other divisions such as the Property Management
Business and Leasing Brokerage Business. The office building business division worked together tosupport building owners manage their buildings and succeeded in concluding sales brokerage contracts
based on the trust it has built up. As sales brokerage towards investors in Japan and abroad were strong,
both net sales and profits increased year-on-year.
(iv) In the Leasing Brokerage Business, we have developed a service network based in 11 sites, mainly incentral Tokyo, which functions as a window for consultation close to the local building owners. We
are creating a new sense of value from our clients’ perspective for product planning in the Replanning
Business by reflecting tenants’ needs and changes quickly learned at tenant leasing sites in researchand proposals for optimal use of office space. Net sales increased year-on-year while profits remainedat the same level as the previous fiscal year.
5(v) In the Conference Room Rental Business, we have been able to capture continuous use and thedemands of new customer segments by providing services that respond to the changing times andthoroughly implementing flexible proposal sales to meet clients’ needs through close ties with local
communities. Demand for corporate trainings and seminars recovered as restrictions on economic andsocial activities eased. As a result, both net sales and profits increased year-on-year.
(vi) In the Rent Guarantee Business, when rent arrears occur, we provide services tailored to building
owners not only with rent guarantee, but also support until the lease is surrendered, easing the senseof burden in building management. Consultations from building owners increased due to the increaseof vacant rooms and tenant credit concerns, caused by the outbreak of COVID-19. As a result, thenumber of new guarantees handled increased, and both net sales and profits increased year-on-year.
As a result of the above, net sales in the Real Estate Service Business as a whole amounted to 2,387 million
yen (up 15.9% YoY) and segment profit amounted to 1,561 million yen (up 24.6% YoY).
(Hotel and Tourism Business)
In the Hotel and Tourism Business, we are engaged in (i) Hotel Development Business and (ii) Hotel
Operation Business.
(i) In the Hotel Development Business, while we recorded sales of certain lots of the condominium hotel“HIYORI OCEAN RESORT OKINAWA” in the same period of the previous year, we did not haveany sales of Hotel Development Business properties in the current period, and both net sales and profits
decreased year-on-year.
(ii) In the Hotel Operation Business, “Shijo Kawaramachi Onsen Sora Niwa Terrace Kyoto” and “Shijo
Kawaramachi Onsen Bettei Kamogawa” opened in June during the fiscal period under review, and weoperate a total of 22 hotels (2,993 rooms). Demand for domestic tourism has been on a recovery trend
due to the easing of restrictions on economic and social activities leading to an increase of theoccupancy rate and room unit prices. As a result, net sales increased and the amount of loss decreased
year-on-year.
As a result of the above, net sales in the Hotel and Tourism Business as a whole amounted to 1,917 million
yen (up 42.4% YoY) and the segment loss amounted to 252 million yen (compared with segment loss of
584 million yen in the same period of the previous fiscal year).
(Other Business)
In Other Business, we are engaged in (i) Overseas Development Business and (ii) Construction Business.
(i) In the Overseas Development Business, we have expanded into Southeast Asian countries where
growth is expected. We are developing real estate mainly for condominiums and houses using Japaneseadvanced construction technology and are focusing on providing Asian people with a firsthandexperience of Japanese quality. In the current period of the fiscal year under review, although sales
increased as condominium management revenue in Viet Nam increased, a loss was recorded due to aloss on valuation of inventories in Indonesia.
(ii) In the Construction Business, the Group is engaged in renewal planning, repair and reform, interior
finishing work and telecommunications work for commercial buildings. Although sales decreased due
to less construction work, profit increased mainly because a subsidiary that recorded a loss in theprevious fiscal year restored profitability.

6

As a result of the above, net sales in the Other Business amounted to 306 million yen (down 34.8% YoY)
and the segment profit amounted to 36 million yen (up 134.5% YoY).
(2) Consolidated Financial Position

Total assets as of June 30, 2022 amounted to 136,686 million yen (up 0.1% YoY), liabilities amounted to58,568 million yen (down 5.6% YoY) and net assets amounted to 78,117 million yen (up 4.9% YoY).
The increase in total assets was mainly due to an increase of 5,274 million yen in cash and deposits and anincrease of 2,670 million yen in real estate for sale, despite a decrease of 8,856 million yen in real estate forsale in process.
The main factors for the decrease in liabilities were a decrease of 2,074 million yen in current portion of longterm borrowings, a decrease of 1,579 million yen in income taxes payable and a decrease of 905 million yen
in long-term borrowings, despite an increase of 592 million yen in accounts payable - trade.
The increase in net assets was mainly due to the recording of 4,690 million yen in profit attributable to ownersof parent, despite the payment of 1,121 million yen in year-end dividends.
Equity ratio decreased 2.6 percentage points to 54.8%.
(3) Forward-Looking Statements such as Consolidated Earnings Forecasts

As for the results for the fiscal year ending March 31, 2023, there are no changes to the forecast figuresannounced on May 13, 2022.

7

2. Quarterly Consolidated Financial Statements and Key Notes(1) Consolidated Balance Sheet(Unit: million yen)
As of March 31, 2022
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

8

As of June 30, 2022

30,05335,327945

1,226

14,22262,934

16,89354,077

100

188

83
2,603
(21)
110,920

83
3,328
(14)
111,111

7,876
10,046872
18,796

7,760
10,046
1,189
18,996

408
164
572

391
189
581

4,726
1,036
460
(0)
6,222
25,591
136,512

4,700
874
421
(0)
5,996
25,574
136,686

(Unit: million yen)
As of March 31, 2022
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

9

As of June 30, 2022

1,345
30
6,874
3,528
191

1,938
30
4,800
1,948
111

73

17

39
4,126
16,21035
4,666
13,54744,1696
68
1,605
45,84962,06043,2646
72
1,677
45,02058,568

11,965
6,445
52,917(67)
71,26011,965
6,445
56,486(217)
74,679

3

3

19

167

22

170

30
3,139
74,452
136,51230
3,237
78,117
136,686

(2) Consolidated Statements of Income and Comprehensive Income

Consolidated Statement of Income(Unit: million yen)
For the three months
ended June 30, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Foreign exchange gains
Subsidy income
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 andassociates
Gain on bargain purchaseTotal extraordinary income
Extraordinary loss
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

10

For the three months
ended June 30, 2022

31,213
21,906
9,306
1,965
7,340

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

7
45
11
64

10
111
36
9
167

104
23
127
7,277

126
19
145
6,690

-

101

78
78

101

0
0
7,356
2,473
82
2,556
4,800
(1)
4,802

6,792
1,852
161
2,014
4,777
87
4,690

Consolidated Statement of Comprehensive Income(Unit: million yen)
For the three months
ended June 30, 2021
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

11

For the three months
ended June 30, 2022

4,800

4,777

(0)

(0)

106
106
4,906

159
158
4,936

4,899
6

4,838
98

(3) Notes to Consolidated Financial Statements(Notes to Assumption of Going Concerns)
Not applicable.
(Notes on Significant Changes in the Amount of Shareholders’ Equity)
I For FY2022 1Q (April 1, 2021 to June 30, 2021)
1. Dividend paid
Resolution

Type of shares

Total dividends(million yen)

Dividends per
share (yen)Record date

Effective date

Source ofdividends

Annual General
Meeting ofCommon shares
2,047
42.00 March 31, 2021 June 23, 2021 Retained earnings
Shareholders,June 22, 2021
Note: The total amount of dividends decided at the Annual General Meeting of Shareholders on June 22, 2021 includes dividends of 2
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 FY2022 1Q and the effective date is after the last day of
FY2022 1Q
Not applicable.
II For FY2023 1Q (April 1, 2022 to June 30, 2022)
1. Dividend paid
Resolution

Type of shares

Total dividends(million yen)

Dividends per
share (yen)Record date

Effective date

Source ofdividends

Annual General
Meeting ofCommon shares
1,121
23.00 March 31, 2022 June 22, 2022 Retained earnings
Shareholders,June 21, 2022
Note: The total amount of dividends decided at the Annual General Meeting of Shareholders on June 21, 2022 includes dividends of 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 1Q and the effective date is after the last day of
FY2023 1Q
Not applicable.
(Change of Accounting Policies)(Application of Accounting Standard for Fair Value Measurement)“Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31,
June 17, 2021, hereinafter referred to as “Fair Value Measurement Implementation Guidance”) will beapplied from the beginning of the period under review, and in accordance with the transitional treatment
set forth in Paragraph 27-2 of the Fair Value Measurement Implementation Guidance, the new accounting
policies stipulated in the Fair Value Measurement Implementation Guidance will be applied into the future.
The application of this accounting standard will have no impact on the consolidated financial statements
for the period under review.
(Additional Information)(Accounting Estimates for the Impact of the Spread of COVID-19 Infections)
There have been no material changes to assumptions regarding the impact of the spread of COVID-19
infections described in the “Significant Accounting Estimates” in the Annual Securities Report for theprevious fiscal year.
(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
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.
12

The Company will grant points to employees who satisfy certain conditions at the end of the fiscal
year, and when they acquire the right 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 futurewith the money set in trust in advance and managed separately as trust assets.
The total amount method is applied to the Employee Stock Ownership Plan (J-ESOP) in accordancewith 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 ofJune 30, 2022 were 67 million yen and 56,500 shares.
(Accounting Treatment and Disclosure with the Application of the Group Tax Sharing System)
The Company and certain consolidated domestic subsidiaries shifted from the consolidated taxation system
to the group tax sharing system effective from the first quarter of the fiscal year ending March 31, 2023.
Accordingly, the accounting treatment and disclosure of corporate tax, local corporate tax and tax effectaccounting are based on the “Treatment of the Accounting and Disclosure under the Group Tax Sharing
System” (ASBJ PITF No. 42, August 12, 2021, hereinafter “PITF No. 42”). Based on Paragraph 32 (1) of
PITF No. 42, there is deemed to be no effect on the consolidated financial statements for the period underreview due to the change in accounting policies resulting from the application of PITF No. 42.

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(Segment Information, etc.)[Segment Information]
I For FY 2022 1Q (April 1, 2021 to June 30, 2021)
1. Information on net sales and profit 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 toexternalcustomers
Internal sales
or transfers
betweensegments

Hotel andTourism
Business

Subtotal

Other(Note 1)

Total

26,588

1,820

1,318

29,727469

30,196

858

129

28

1,016

-

1,016

27,447

1,949

1,346

30,743469

31,213

3

110

-

114

-

114

Subtotal

27,450

2,060

1,346

30,857469

31,327

Segment profit(loss)

8,235

1,252

(584)

8,903

15

8,918

Notes

1.
The “Other” segment is a business segment that is not included in the reportable segment and includes theOverseas 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 recordedin the Consolidated Statement of Income and the main content of the difference (matters related to thedifference adjustment)(Unit: million yen)
ProfitAmountReportable segment total

8,903

Profit in the “Other” category

15

Elimination of intersegment transactions

0

Corporate expenses (Note)(1,641)

Ordinary profit in the consolidated statement of income

7,277

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.

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II For FY2023 1Q (April 1, 2022 to June 30, 2022)
1. Information on net sales and profit (loss) for each reportable segment and revenue decomposition
information(Unit: million yen)
Reportable segment

Other(Note 1)

Total

Real Estate
Revitalization
Business

Real Estate
ServiceBusiness

Hotel andTourism
Business

Subtotal

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

Total

18,582

2,387

1,917

22,887306

23,193

Segment profit (loss)

7,087

1,561

(252)

8,395

36

8,432

Net sales
Revenue fromcontracts withcustomers
Other revenue(Note 2)
Net sales to externalcustomers
Internal sales ortransfers between
segments

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 recordedin 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