Consolidated Financial Results for the Third Quarterof the Fiscal Year Ending March 31, 2024
February 8, 2024 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: February 9, 2024
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 Third Quarter of the Fiscal Year Ending March 31, 2024
(1) Consolidated Operating Results (April 1, 2023 to December 31, 2023)(% indicate year-on-year changes)

Net Sales

Operating Profit

Ordinary Profit

Net Income¥ million%¥ million%¥ million%¥ million%

FY2024/3 3Q

62,258-17.4

14,163-3.6

13,902

-3.5

9,744

-5.9

FY2023/3 3Q

75,32822.3

14,69620.9

14,401

20.2

10,354

37.7(Note) Comprehensive income: 3rd Quarter of FY ending March 31, 2024: 10,450 millions of yen (-6.6%)‘3rd Quarter of FY ended March 31, 2023 : 11,187 millions of yen (43.7%)
Net Income per Share

Fully Diluted
Net income per Share¥¥FY2024/3 3Q

200.76200.57

FY2023/3 3Q

213.05212.85(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio¥ million¥ million%

FY2024/3 3Q

172,493

92,53951.4

FY2023/3

152,519

83,965

52.9(Reference) Total Equity: 3rd Quarter of FY ending March 31, 2024 : 88,643 millions of yen
FY ended March 31, 2023
: 80,702 millions of yen
2.Cash Dividends
Cash Dividends per Share (yen)
1 quarter end 2 quarter end
3rd quarter end
Year end¥¥¥¥
FY2023/3
23.00
25.00
FY2024/3
26.00
FY2024/3 (Forecast)
30.00(Note) Changes from the latest released dividend forecast: Yes
st

nd

-1

Annual Total
¥
48.00
56.00

For details of the changes, please refer to “Notice of Revision to Financial Results Forecast for
FY2024/3 and Revision to Dividend Forecast (Increase and Commemorative dividend)” announced
on February 8.
The breakdown of FY2024/3 year-end dividend (forecast): ordinary dividend ¥28.00,
commemorative dividend ¥2.00
3.Forecast for Consolidated Financial Results for FY2024 (April 1, 2023 to March 31, 2024)(% indicate year-on-year changes)

Net Sales¥ million

Operating income%¥ million

Profit Attributable to
Owners of Parent

Ordinary income%

EPS (yen)¥ million%¥ million%¥

16,50012.1

11,600-0.1

238.99Full
79,000-4.6
16,70012.0
year(Note) Changes from the latest released performance: Yes※ 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 3Q

48,755,500
shares

FY2023/3

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

FY2024/3 3Q

202,468
shares

FY2023/3

237,169
shares3) Average number of shares for the period(April 1, 2022 to December 31, 2022):

FY2024/3 3Q

48,538,232
shares

FY2023/3 3Q

48,601,210
shares(Note) The number of treasury shares at the end of the third quarter of the fiscal year ending March 31, 2024
includes 1,194 treasury shares of restricted stock as renumeration held by the former employees
resigning during their terms in this period, 51 shares by purchase of fractional shares, and 35,946
treasury shares deducting disposed of as remuneration of restricted stock.
※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
Earnings per share in the forecast of consolidated financial results for FY2024/3 is calculated based on the
average number of shares for the period, 48,538,232 shares.
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.
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Accompanying Materials
Contents
1. Qualitative information regarding consolidated performance for the first nine months.............................4(1) Business Performance...........................................................................................................................4(2) Financial Position .................................................................................................................................8(3) Forward-Looking Statements such as Forecast for Consolidated Financial Results for FY2023 ........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 to Consolidated Financial Statements ......................................................................................13(Notes to Assumption of Going Concern) ................................................................................................13(Notes to Significant Changes in Shareholders' Equity) ..........................................................................13(Change of Accounting Policies)..............................................................................................................14(Additional Information) ..........................................................................................................................14(Segment Information) .............................................................................................................................15(Revenue Recognition) .............................................................................................................................16(Significant Subsequent Events) ..............................................................................................................16-3

1. Qualitative information regarding consolidated performance for the first nine months(1) Business Performance
Forward-looking statements in this document are based on the judgments of the Group as of the end of thethird quarter of the fiscal year ending March 31, 2024.
During the nine months ended December 31, 2023 (hereinafter, the current period), the Japanese economy
continued to recover due to improvements in the employment and income environment and corporate
earnings. Although there are concerns about the outlook for the global economy due to persistently highpolicy interest rates in various countries, the slowdown in the Chinese economy, and geopolitical risks,
expectations are rising that U.S. policy interest rates will be lower and that the U.S. economy will make asoft landing.
In the real estate market, the average rent for December in the Tokyo Business District (5 wards of Central
Tokyo: Chiyoda, Chuo, Minato, Shinjuku, and Shibuya) increased for the first time in 41 months to 19,748
yen (unit price per tsubo), but the average vacancy rate remained almost unchanged at 6.03% (according toa private research institution). The office market was generally weak due to the promotion of remote workin the pandemic of COVID-19 and the impact of an increase in vacant floor space resulting from thecompletion of a new building, etc. However, following the classification change of COVID-19 to Category
5, demand is expected to recover further due to a recognition of the significance of offices, and downward
pressures on average rents are expected to ease. In the real estate investment market, demand for investmentin profitable, high-occupancy mid-sized office buildings continues to be firm among wealthy individuals inJapan and overseas, despite overseas institutional investors with cautious investment stance on investment
in offices. In addition, strong investment demand for hotels has continued due to the recovery of tourism
demand.
In Real Estate Revitalization Business, our core business in the Group, both net sales and profits declined
in reaction to the sale of a large project in the same period of the previous year, but profit margin maintained
a high level and continued to be a strong driver of overall performance. Real Estate Service Business
continued to perform well. In Hotel Development Business, net sales decreased in reaction to the sale oftwo hotels in the same period of the previous fiscal year, but profits increased from the sale of one hotel at
a higher profit margin in this period. In Hotel Operation Business, net sales and profits increased year on
year due to the “Nationwide Travel Subsidy Program” and the transition of COVID-19 to a Category 5
disease. Also, as the yen depreciated due to the difference in interest rates between Japan and other countries,
the recovery in numbers of both domestic and foreign tourists has led to a further increase in tourism
demands.
As a result, net sales amounted to 62,258 million yen (down17.4% YoY), operating profit amounted to 14,163
million yen (down3.6% YoY), ordinary profit amounted to 13,902 million yen (down3.5% YoY) and profit
attributable to owners of parent amounted to 9,744 million yen (down5.9% 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 Replanning Business, we provide a one stop, integrated real estate service that includes everythingfrom the purchase of buildings, renovation and utilization planning, construction work, leasing, rent
guarantee services, management, sales, and building management. Although market competition was
intense in the current period, purchase operations progressed at a faster pace than planned due to thestrengthening of cooperation among office divisions and purchasing systems. We will continue to-4strengthen our purchase operations in preparation for commercialization and sales in the coming fiscal
year. In property sales, the number of properties sold decreased by 1 from the same period of the previous
fiscal year to 20, but a high profit margin of 30% was maintained. In commercialization, while
maintaining cooperation with each department of the Office Division, we reflected the real needs ofclients in our products, leveraged our community-based leasing capabilities, added value as highoccupancy, high-value-added real estate, and sold them to clients in Japan and overseas. Also, we willcontinue to focus on purchase and sales of properties in New York in the United States and we havestarted to sell Compass Sakurashinmachi (international academy) as the nineth small-lot project in orderto respond to clients' asset portfolio diversification needs. Results for the current period declined in both
net sales and profits due to a year-on-year decline in sales of large-scale projects.
(ii) In Rental Building Business, with the aim of building a stable revenue base as a stock business, we are
expanding the number of rental building properties in Replanning Business and utilizing the operational
capabilities we have accumulated in Real Estate Service division to increase rent income over the medium
to long term. Results for the current period increased from the same period of the previous year in both
net sales and profits due to an increase in the number of properties held as inventories.
As a result, net sales amounted to 39,037 million yen (down17.9% YoY) and segment profit amounted to
11,620 million yen (down20.6% YoY) in total for the Real Estate Revitalization Business.
(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) Rental
Conference Room Business, and (vi) Rent Guarantee Business.
(i) In Property Management Business, we will increase the satisfaction of tenants through property
management that meets the needs of the clients. At the same time, by working together with our leasing
brokerage division to attract tenants and revising conditions for appropriate rents, we are able to support
the high-occupancy and high-profitability building management that owners want. In the current period,
the number of entrusted buildings increased by 37 buildings compared to the same period in the previous
year, and the occupancy rate improved by 2.9%pt. As a result, both net sales and profits increased year
on year.
End ofDecember 2021

End ofDecember 2022

End ofDecember 2023

Number of
Entrusted
Buildings

413 buildings

457 buildings

494 buildings

Occupancy
Rate

90.8%

90.8%

93.7%

In Building Maintenance Business, under the slogan of “making Tokyo the most beautiful city in theworld,” we are engaged in projects such as inspections, cleaning, renovation work and surveys tomaintain and manage buildings. Using our strengths in glass cleaning and exterior wall cleaning andrepair work, we are collaborating with each department of the Office Division. Results decreased year
on year in both net sales and profits mainly due to a decrease in facility disinfection work related to
COVID-19 and cancellations of unprofitable sites.
(iii) In Sales Brokerage Business, as part of our real estate consulting, we are working to quickly respond toinquiries from clients in other divisions, including Property Management Business and Leasing
Brokerage Business. The Office Division worked together to support building owners manage their
(ii)

-5

buildings and expand its customer base, and it is using the trust it has built up to win brokerage contracts.
Both net sales and profits declined due to the conclusion of large-scale deals in the same period of theprevious fiscal year.
(iv) In Leasing Brokerage Business, we utilize tenant needs and changes that we have quickly learned atleasing sites in our research and proposals for the optimal use of office space, leading to the creation ofa new sense of value from our clients' perspective in Replanning Business product planning. In addition,
we have entered two new entrustment contracts in our sub-lease operations, which are working to resolve
the problems of local building owners. Both net sales and profits increased year on year due to steady
performance in leasing.
We also opened the Shimbashi office in January and the Ikebukuro office in February, running a service
network of 12 sites in the main central Tokyo area. We will continue to contribute to the local community
by providing information centers for consultation close to building owners.
(v) In Rental Conference Room Business, an increasing number of companies have resumed group training
programs, and rental conference room demand has increased. Through services that respond to clients’requests, both new and repeat customers have increased. In November, we opened the Vision Center
Shinjuku Minds Tower, bringing the total number of operations to 14 sites, 6,091 tsubo. Including Vision
Center Shimbashi, which is scheduled to open in February, the total operating floor space is expected toreach approximately 6,500 tsubo. We will continue to accelerate site expansion centered on our central
Tokyo operations. Results increased year on year in both net sales and profits due to an increase in orders
resulting from the new conference room opening and the floor space expansion in 8 facilities.
(vi) In Rent Guarantee Business, through our brand “ TRI-WINS”, we provide services tailored to building
owners for all processes from tenant screening at offices and stores, rent guarantee, building surrenderlawsuits, and eviction. Compared to general guarantee services, this brand expands the range of services.
It is a win-win-win service that solves the risks and issues faced by both building owners and tenants
and contributes to economic growth and social stability. The stable progress of the credit guarantee
business as main pillar continued, resulting in firm performance of net sales and profit.
As a result, net sales amounted to 7,766 million yen (up19.4% YoY) and segment profit amounted to 4,272
million yen (up17.2% YoY) in total for the Real Estate Service Business.
(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 Hotel Development Business, net sales decreased year on year due to the sale of two hotels in thesame period of the previous fiscal year, but profits increased significantly due to the sale of one
condominium hotel lot and one hotel. In addition to the capital return from the sale of hotels, funds
raised through the issuance of convertible bonds, for which payment was completed on October 6, 2023,
will be used to reinvest in hotel development, including M&A, with a focus on the Tabi no Hotel brandand hotel condominiums, and expand our operations. At present, there are 10 hotels with 1,355 rooms
under planning in various parts of the country, and together with the hotels in in operation, there will be
39 hotels with 4,464 rooms.
(ii) In Hotel Operation Business, we currently operate a total of 29 hotels (3,109 rooms). During the current
period, Seifutei (11 rooms), a ryokan overlooking Mt. Bandai in Aizu, joined the Group in November.
In December, SKY HEART Hotel Narita, which is operated by the Group, underwent a major renovation,and reopened as Tabino Hotel EXpress Narita. In addition, five hotels in the Kansai area (612 rooms),
including Joytel Hotel Namba Doutonbori, were added to the Group through M&A transactions inJanuary. During the current period, due to the continued expansion of domestic tourism demand and theeffects of recovery of inbound tourism, occupancy rates and average daily rates continued to rise basedon the Group's high added value strategies. As a result, both net sales and profits increased significantly-6year on year.
As a result, net sales amounted to 14,352 million yen (down30.6% YoY) and segment profit amounted to
4,018 million yen (up175.4% YoY) in total for the Hotel and Tourism Business.
(Other Business)
In Other Business, we are engaged in (i) Overseas Development Business and (ii) Construction Business.
(i) In Overseas Development Business, the Company has entered the Vietnamese market, where growth isexpected, and we are expanding our business including condominium development. In October, theCompany acquired a land for condominium development in Danang which is the biggest city in middle
of Vietnam. This project will start the construction in Spring. We will contribute to the development oflocal communities by providing high-quality housing to the people of Vietnam using Japan's advanced
construction technology. Results for the current period showed a year-on-year decrease in both net sales
and profits.
(ii) In Construction Business, we are engaged in renewal planning, repair and renovation of commercial
buildings, interior finishing work and telecommunications construction, etc. Both net sales and profits
for the current period increased year on year in due to the sales of large-scale construction projects byGroup companies.
As a result of the above, net sales amounted to 1,786 million yen (up45.4% YoY) and segment profit
amounted to 203 million yen (up13.1% YoY) in total for Other Business.
The main initiatives of the quarter are as follows.
The Group’s Health and Productivity Management Declaration states that “Sun Frontier Fudousan iscommitted to protecting all employees, achieving material and spiritual happiness, and initiatives tomaintaining and improving the health of its employees.” Based on this declaration, we were recently
certified as a Fiscal 2023 “Tokyo Sports Promotion Company.” We will continue to promote themaintenance and improvement of the mental and physical health of our employees through various activities.
At the Japan-Vietnam Economic Forum “Comprehensive Strategic Partnership for Peace and Prosperity in
Asia and the World,” held to commemorate the 50th anniversary of the establishment of diplomatic relations
between Japan and Vietnam, the Group entered into a memorandum of understanding with Dong A
University in Da Nang City, Vietnam, on “Mutual Support and Cooperation for Providing Educational and
Employment Opportunities in Japan to Young Vietnamese People.” With the conclusion of this MOU, we
will work toward further development of Japan and Vietnam by deepening mutual understanding throughpeople-to-people and cultural exchanges, and further strengthening the human resource development thatcan create a bright future for both countries.
In response to a request from the Tokyo Stock Exchange in March 2023 regarding “Action to Implement
Management that is Conscious of Cost of Capital and Stock Price”, the Group disclosed its current status,
policies and targets, and initiatives for realizing management that is conscious of the cost of capital andstock prices following a resolution by the Board of Directors. With the exception of the fiscal year ended
March 2021, when profits temporarily declined due to the impact of the pandemic of COVID-19, the Group
has achieved ROE that exceeds the cost of shareholders’ equity every year. We will continue to improve
ROE, PBR, and corporate value by expanding and deepening each business based on the three key issuesof “environmental protection,” “regional revitalization,” and “human resource development” undersustainability management. A specific initiative is to speed up the PDCA cycle for measures that will be thedriver of ROE improvement. At the same time, we will enhance dialogue with investors on the progress ofmeasures to improve ROE and strive to further improve capital efficiency.

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(2) Consolidated Financial Position
Total assets at the end of the current consolidated fiscal year amounted to 172,493 million yen (up13.1%
compared with the end of the previous fiscal year), liability amounted to 79,954 million yen (up16.6%
compared with the end of the previous fiscal year), and net assets amounted to 92,539 million yen (up10.2%
compared with the end of the previous fiscal year).
The increase in total assets was mainly due to an increase of 7,727 million yen in cash and deposits andan increase of 13,750 million yen in real estate for sale in process, which offset a decrease of 3,464 million
yen in real estate for sale and a decrease of 618 million yen in deferred tax assets.
The decrease in liabilities was mainly due to an increase of 5,421 million yen in the current portion of
long-term borrowings and an increase of 9,999 million yen in bonds payable, offset by a decrease of 3,756
million yen in long-term borrowings and a decrease of 1,242 million yen in advances received included inother current liabilities.
The increase in net assets was mainly due to the recording of 9,744 million yen in profit attributable toowners of parent, which offset the year-end dividend payment of 2,481 million yen.
Equity ratio decreased by 1.5% from the same period of the previous fiscal year to 51.4%.
(3) Forward-Looking Statements such as Consolidated Earnings Forecasts
As for the results for the fiscal year ending March 31, 2024, we revised the forecast figures announced
on May 12, 2023. For details of the revision, please refer to “Notice of Revision to Financial Results
Forecast for FY2024/3 and Revision to Dividend Forecast (Increase and Commemorative dividend)”
announced today.
Our group issues the 1st Series Unsecured Convertible Bonds on October 6 and started the businessalliance with Advantage Advisors Co., Ltd. (“Advantage Advisors”).
Our corporate group has consistently upheld “Altruism” and has contributed to the realization of asustainable society by expanding 3 fields of business which are “Office Business” that aims to conduct
urban development through the revitalization and efficient use of existing real estate, “Hotel and Tourism
Business” that is tied to the promotion of regional development, and “Overseas Business”. In order toexpand and deepen each business, we executed a business alliance agreement with Advantage Advisors Co.,
Ltd. and working on (i) the provision of know-how for various efforts and the steady implementation of
measures therefor, (ii) the search for M&A partner candidates, and the enhancement of the examination
process and PMI, (iii) the expansion of sales networks by utilizing the diversified networks of Advantage
Advisors, (iv) the establishment of business models and enhanced marketing, and (v) the improvement of
productivity and efficiency, etc. To realize the management philosophy and increasing corporate value, wewill receive a lot of support from Advantage Advisors and keep growing.

-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 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 December 31, 2023

42,01649,743

1,625

1,861

19,78160,254

16,31774,004

57

67

87
2,080
-18
125,886

95
3,094
-23
145,160

9,528
10,117764
20,4109,545
10,366
1,031
20,943

343
472
815

550
597
1,147

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

3,387
1,415
452
-13
5,241
27,333
172,493

(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
Bonds payable
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 December 31, 2023

2,106
50
5,442
1,699
237

2,202
1,085
10,863
1,580
135

73

61

22
6,731
16,363

41
5,552
21,52450,1705
83
1,930
52,19068,553

9,999
46,413
3
94
1,917
58,43079,954

11,965
6,445
62,289-270
80,43011,965
6,460
69,552-233
87,744

2

2

269

896

271

898

30
3,233
83,965
152,51930
3,866
92,539172,493

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income(Unit: million yen)
For the nine months ended For the nine months ended
December 31, 2022
December 31, 2023
Net sales
Cost of sales
Gross profit
Selling general and administrative expenses
Operating profit
Non-operating income
Interest income and dividends
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investments based on equity method
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
Impairment loss
Other
Total extraordinary loss
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-1175,32854,844
20,483
5,787
14,69662,25841,638
20,6206,457
14,163

37
75
83
196

60
53
39
154

354
101
34
490
14,401

389
14
11
414
13,902

101

-

101

-

27
27
14,475
3,686
326
4,013
10,462
107
10,35425
0
25
13,876
3,471
614
4,086
9,790
46
9,744

Consolidated Statement of Comprehensive Income(Unit: million yen)
For the nine months ended For the nine months ended
December 31, 2022
December 31, 2023
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

10,462

9,790

-0

0

725

659

725

659

11,187

10,45011,041
145

10,37178

(3) Notes of Consolidated Financial Statements(Notes of Assumption of Going Concern)
Not applicable.
(Notes of Significant Changes in the Amount of Shareholders’ Equity)
For FY2023/3 3Q (April 1, 2022 to December 31, 2022)
1. Dividend paid
Resolution
Annual General
Meeting of
Shareholders
June 21, 2022
Board of Directors
November 10, 2022

Type ofsharesTotal amount of
Per share
dividends
Dividends (yen)(millions of yen)

Record date

Effective date

Source ofdividends

March 31, 2022

June 22, 2022

Retainedearnings

Commonshares

1,121

23.00

Commonshares1,118

23.00 September 30, 2022 December 6, 2022

Retainedearnings

Note: 1. 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. The total amount of dividends decided at the Board of Directors held on November 10, 2022, includes dividends of 1 million yen for the Company's shares heldby the trust account of the Employee Stock Ownership Plan (J-ESOP).

2. Dividends for which the record date is during FY2023/3 3Q and the effective date is after the last day of
FY2023/3 3Q.
Not applicable.
3. Significant changes in the shareholders' equity
Based on the resolution of Board of Directors meeting held on May 13, 2022, the Company purchased
143,800 treasury shares. The Company also disposed of 35,464 treasury shares with a due date of July 21,
2022 as a remuneration of restricted shares. As a result, treasury shares increased by 112 million yen
during the nine months ended December 31, 2023, and stands at 180 million yen as of the end of theperiod.
For FY2024/3 3Q (April 1, 2023 to December 31, 2023)
1. Dividend paid
Resolution
Board of Directors
May 16, 2023
Board of Directors
November 9, 2023

Type ofsharesCommonsharesCommonsharesTotal dividends Dividends per(millions of yen) share (yen)Record date

Effective date

March 31, 2023

June 28, 2023

1,216

25.00

1,265

26.00 September 30, 2023 December 5, 2023

Source ofdividends
Retainedearnings
Retainedearnings

Note: 1. 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. The total amount of dividends decided at the Board of Directors held on November 9, 2023, includes dividends of 3 million yen for the Company's shares heldby the trust account of the Employee Stock Ownership Plan (J-ESOP).

2. Dividends for which the record date is during FY2023/3 3Q and the effective date is after the last day of
FY2023/3 3Q.
Not applicable.
3. Significant changes in shareholders' equity
Not applicable.

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(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 made inorder to mitigate the effect of temporary fluctuations in foreign exchange rates on the profits and lossesof the Group’s subsidiaries and more appropriately reflect the performance of foreign subsidiaries on thequarterly 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
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 treasury shares were 157 million yen
and 128,300 shares as of the end of the previous fiscal year, and 157 million yen and 128,300 shares asof December 31, 2023.

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(Segment Information, etc.)
I For FY 2023/3 3Q (April 1, 2022 to December 31, 2022)
1. Information on net sales and profit for each reportable segment(Unit: million yen)
Reportable segment
Real Estate Real Estate Hotel and
Revitalization Service
Tourism
Business
Business BusinessNet sales
Revenue from contracts
with customers
Other revenue(Note 2)
Net sales to externalcustomers
Internal sales or transfers
between segments
Subtotal
Segment profit

Subtotal

Other(Note) 1

Total

44,364

4,943

20,55969,867

1,216

71,084

3,173

974

97

4,244

-

4,244

47,537

5,917

20,656

74,112

1,216

75,328

13

587

23

624

11

636

47,550

6,505

20,68074,736

1,228

75,965

14,638

3,646

1,459

19,743179

19,923

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

19,743

Profit in the “Other” category

179

Elimination of intersegment transactions

24

Corporate expenses (Note)-5,546

Ordinary profit in the consolidated statement of income

14,401

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 FY2024/3 3Q (April 1, 2023 to December 31, 2023)
1. Information on net sales and profit for each reportable segment(Unit: million yen)
Reportable segment
Real Estate Real Estate Hotel and
Revitalization Service
Tourism
Business
Business BusinessNet sales
Revenue from contracts
with customers
Other revenue(Note 2)
Net sales to externalcustomers
Internal sales or transfers
between segments
Total
Segment profit

Other(Note) 1

Total

Total

36,2806,113

14,221

56,614

1,768

58,383

2,750

1,026

98

3,875

-

3,875

39,031

7,139

14,31960,4901,768

62,258

6

626

32

665

17

683

39,037

7,766

14,352

61,155

1,786

62,941

11,620

4,272

4,018

19,911

203

20,114

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

19,911

Profit in the “Other” category

203

Elimination of intersegment transactions-25

Corporate expenses (Note)-6,186

Ordinary profit in the consolidated statement of income

13,902

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.
(Revenue Recognition)
Breakdown of revenue from contracts with customers is as stated in the “Notes to Consolidated Financial
Statements (Segment Information, etc.)”.
(Significant Subsequent Events)
Not applicable.

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