Financial Results for Second Quarter of Fiscal YearEnding March 31, 2015
(Based on Japanese GAAP)(Translation of Japanese Flash Report, Released on August 6, 2013)
Company name: Sun Frontier Fudousan Co., Ltd.
Stock listing: Tokyo Stock Exchange 1st Section
Code number: 8934
URL: http://www.sunfrt.co.jp
Address: 14F, Toho Hibiya Building, 2-2, Yurakucho 1-chome, Chiyoda-ku, Tokyo 100-0006
Representative: Tomoaki Horiguchi, President
Inquiry: Seiichi Saito, Executive Vice president(Phone: +81-3-5521-1301)*Amounts under one million yen have been rounded down.

1. Consolidated Performance in Second Quarter of Fiscal Year Ending March 31, 2015
(1) Operating results*Percentage figures shown under sales, operating income, ordinary income, and net income columns indicate year-on-year changes for those
items.
(Millions of yen, except for per share figures)

Net Sales

Operating Income

Ordinary Income

2nd Quarter of FY ending March 31, 2015

¥11,870 (67.5%)¥3,012 (45.1%)¥2,879(42.5%)

2nd Quarter of FY ended March 31, 2014

¥7,086 (70.0%)¥2,075 (148.7%)¥2,012(154.1%)(Note) Comprehensive income, 2nd quarter of FY ending March 2015: ¥2,662 million (42.3%), 2nd quarter of FY ended March 2014:¥1,871 million (80.0%)

Net Income

Net Income per Share(Yen)

Fully Diluted
Net Income per
Share(Yen)

2nd Quarter of FY ending March 31, 2015

¥2,660 (42.2%)¥62.21－

2nd Quater of FY ended March 31, 2014

¥1,870 (80.0%)¥43.74－(2) Financial Position (at end of the term)(Millions of yen, except for per share figures)

Total Assets

Net Assets

Equity Ratio(%)

2nd Quarter of FY ending March 31, 2015

¥37,156¥20,555

54.6%

FY ended March 31, 2014

¥33,910¥18,469

53.7%(Note) Equity at term-end: 2nd Quarter of FY ending March 31, 2015 (as of September 30, 2014): ¥20,305 million
FY ended March 31, 2014 (as of March 31, 2013): ¥18,219 million

12. Cash Dividends(Yen)
Cash Dividends per Share
1st quarter period

2nd quarter period

3rd quarter period

FY ended March 31, 2014

-

¥0.00

-

¥13.50¥13.50FY ending March 31, 2015

-

¥0.00
-

¥14.00¥14.00FY ending March 31, 2015
(Projections)(Note) Changes from the latest released dividend forecasts:None

Year end

Annual total

3. Projections for Consolidated Performance in the Fiscal Year Ending March 31, 2015
(From April 1, 2014 to March 31, 2015) *Percentage figures are indicated year-on year changes for those items.

Net Sales
FY ending March 31, 2015

¥26,000 (46.3%)

Operating Income(Loss)(Millions of yen, except for per share figures)
Net Income (Loss) per
Net Income
Share (Yen)(Loss)(Yen)¥4,600 (6.0%)¥4,300 (7.0%)¥100.57

Ordinary Income(Loss)¥5,000 (10.3%)(Note) Changes from the latest released performance:None

Reference: Overview of Non-consolidated Performance(1) Significant changes in scope of consolidation during the period (change of specified subsidiaries that lead to a change in thescope of consolidation): None
New Companies: -- Company (Company Name)
Excluded Companies: -- Company (Company Name)(2) Application of accounting methods which are exceptional for quarterly consolidated financial statement: None
(3) Changes in accounting policies, accounting estimates and restatement of corrections
1) Changes caused by revision of accounting standards: None
2) Changes other than those included in 1): None
3) Changes in accounting estimates: None
4) Restatement of corrections: None
(4) Number of shares issued and outstanding (common shares)
1) Number of shares issued and outstanding at the end of the period (including treasury stock):
September 2014: 42,755,500 shares
March 2014: 42,755,500 shares
2) Number of treasury stock at the end of period:
September 2014: 143 shares
March 2014: 100 shares3) Weighted average number of shares for the first quarter period (April 1 – June 30):
September 2014: 42,755,380 shares September 2013: 42,755,500 shares※Disclosure concerning status of implementation of quarterly review procedure
This quarterly financial results report is exempt from the quarterly review procedure based on the Financial Instruments andExchange Law. At the time of disclosure of this quarterly financial results report, such review procedure for quarterly reports
based on the Financial Instruments and Exchange Law had been under development.

※Appropriate use of projections for performance, other notes
The projections for performance in this report contain forward-looking statements based on information available to the Company
at the date of publication, and on certain set assumptions that have been deemed reasonable. Actual earnings may vary greatly inaccordance with a wide range of factors. Refer to Item 3, “Qualitative information on consolidated earnings forecasts” on page 5.

2

Table of Contents of Appendix
1. Qualitative Information Concerning Consolidated Business Performance for the Quarter Under Review ............... 4(1) Qualitative information on consolidated operating results ..................................................................................... 4(2) Qualitative information on consolidated financial position .................................................................................... 5(3) Qualitative information on consolidated earnings forecasts ................................................................................... 5
2. Summary Information (Notes) ................................................................................................................................... 6(1) Significant changes in scope of consolidation during the period............................................................................ 6(2) Application of accounting methods which are exceptional for quarterly consolidated financial statements ......... 6(3) Changes to accounting policies/ changes to accounting estimates/ restatements ................................................... 6
3. Consolidated Financial Statements............................................................................................................................. 7(1) Quarterly consolidated balance sheets .................................................................................................................... 7(2) Quarterly consolidated statements of income and quarterly consolidated statements ofcomprehensive income ......................................................................................................................................... 9(3) Quarterly Consolidated Cash Flow Statement ......................................................................................................... 10(4) Notes to quarterly financial statements ................................................................................................................. 11(Notes regarding the conditions of going business) ............................................................................................. 11(Notes in the case of major changes in shareholders’ equity) .............................................................................. 11(Segment information, etc.) .................................................................................................................................. 113

1. Qualitative Information Concerning Consolidated Business Performance for the Quarter Under Review(1) Qualitative information on consolidated operating results
In this consolidated second quarter period, the Japanese economy was on a gentle recovery trend, partially because of theeffects of weak yen and the financial measures implemented from last year by the government and the Bank of Japan forgetting out of deflation, though it was seen in slightly slowness to recover from tumble by the reaction of last minute surge
in demand with the consumption tax increase.
In the real estate industry, due to the aggressive demand for expansion from businesses, the vacancy rate in the urban
office building market continued to improve, with rents beginning to slowly increase as well. The real estate investment
market is thriving with new investment funds from foreign investors in Asia, etc. in addition to domestic investors.
Especially, the investment needs for central Tokyo real estate are growing steadily, as the infrastructure development for
the Tokyo Olympics is expected.
In this situation, our corporate group has kept specializing in the utilization and distribution of small and medium-sized
office buildings in the urban center of Tokyo, and engaged in solving real estate-related troubles of building owners. We
have created a variety of earning opportunities by providing each client with one-stop integrated services, including
brokerage for sale and purchase, finding tenants, building management, maintenance, construction planning for everythingfrom minor reforms to major renewals, inheritance and tax advice, and delinquent rent guarantees.
Furthermore, by combining and linking together this variety of specialized services, we have worked onreal estate revitalization with high added value. We have accumulated renovation know-how and experienceespecially for office buildings in the 5 central cities of Tokyo (Chiyoda, Chuo, Minato, Shinjuku, and Shibuya
Wards), by combining our local knowledge and ability to find tenants with optimization of the purpose toplease the local community, maximization of the attractiveness of each building, and renewal of real estate
while emphasizing “beauty and atmosphere,” etc. In addition, the amount of procurement steadily increased,because all employees joined hands to diversify procurement routes, for example, by procuring real estatein the efforts for solving the troubles of building owners.
As a result, our operating results for the second quarter of fiscal year ending March 2015 were as follows:
Sales of ¥11,870 million (up by 67.5% from the same period of the previous fiscal year), operating income of ¥3,012 million(up by 45.1%), ordinary income of ¥2,879 million (up by 42.5%), and net income was ¥2,660 million (up by 42.2%).
The performance of each segment is as follows.

Real Estate Revitalization
As for the replanning business, we determined target buyers at the stages of procurement and commercialization, pursued
not only rate of return, but also “values” suited for target clients, including the locational characteristics and rarity of each
property, stability as assets, and merits regarding taxation. Through these efforts, we sold 11 buildings (6 buildings in thesame period of the previous year). As a result, sales and profits increased significantly from the same period of the previous
year. We also engaged in the commercialization of real estate to be sold in this second half, and the procurement of realestate to be sold in the next term or later.
As for the rental building business, sales and profits increased from the same period of the previous year, because theincome from rents of the real estate to be revitalized increased.
In the real estate securitization business, etc., sales and profits increased from the same period of theprevious year, because of the income from the sale of real estate for joint investment held by a specialpurpose company, etc.
As a result of the above activities, sales were ¥10,526 million (up by 96.9% from the same period of the previous fiscal
year) and segment income was ¥3,323 million (up by 55.8%).

Real Estate Brokerage
In the sales brokerage business, although the number of contract properties decreased and caused asignificant drop in sales and profits with market conditions making competition more fierce, acquisition andsales of replanning properties and acting as the contact for building maintenance contracts contributed
greatly to the income of the Group as a whole.
In the rental brokerage business, sales and profits increased from the same period of the previous year, as we kept
solving various troubles regarding building management for building owners. In addition, we made efforts for attracting
tenants for our real estate and the ones that are being commercialized, contributing to the profits of the entire corporategroup.
As a result of the above activities, sales were ¥498 million (down by 27.7% from the same period of the previous fiscal
year) and segment income was ¥408 million (down by 30.8%).

4

Property Management
In the property management business, we maintained high operation rate, by increasing entrusted buildings for creating
business opportunities of sale, purchase, construction, renovation, etc., promoting lease by utilizing our local knowledge,
and improving satisfaction level by attending to tenants carefully. In addition, we kept offering services in cooperation withrelated sections, such as undertaking the management of real estate purchased by our clients in the replanning and sales
brokerage businesses, in order to develop longer, deeper relationships with clients. As a result, sales and profits increased
from the same period of the previous year.
End of Sep. 2012

End of Sep. 2013

End of Sep 2014

No. of entrusted buildings

174

204

243

Operation rate

94.5%

96.2%

96.8%

As for the building maintenance business, we made efforts to improve our earning system by refraining from receiving
unprofitable orders by bidding and increasing transactions in cooperation especially with the property management section
for enhancing the synergy with existing businesses. As a result, sales and profits increased from the same period of theprevious year.
As a result of the above activities, sales were ¥634 million (up by 17.5% from the same period of the previous fiscal
year) and segment income was ¥285 million (up by 21.7%).

Other Businesses
As for the construction solution business, although the number of replanning transactions increased, theratio of in-company transactions also increased, and consequently sales and profits decreased considerablyfrom the same period of the previous year.
In the delinquent rent guarantee business, we concentrated on the popularization of new product plans in the market andthe cooperation with affiliated companies, and so the number of transactions was healthy. Consequently, sales and profits
increased from the same period of the previous year.
As a result of the above activities, sales were ¥211 million (down by 58.5% from the same period of theprevious fiscal year) and segment income was ¥142 million (down by 20.5%).
(2) Qualitative information on consolidated financial position
As of the end of the first quarter of this consolidated fiscal year, total assets were 37,156 million yen (up 9.6% from theend of the previous consolidated fiscal year) and liabilities were 16,601 million yen (up 7.5%). The main reason for theincrease in total assets was that cash and deposits increased 700 million yen and inventory assets increased 2,643 million
yen. The main reason for increase in liabilities was that corporate bonds increased 391 million yen and long-term loans
payable increased 816 million yen.
Net assets were 20,555 million yen (up 11.3%). The main reason for the increase in net assets was posting 2,660 million
yen in quarterly net income, despite 577 million yen being paid out for year-end dividends.
(3) Qualitative information on consolidated earnings forecasts
As for the results for the term ending March 2015, the forecasted values announced on May 9, 2014 have not been revised.

5

2. Summary Information (Notes)(1) Significant changes in scope of consolidation during the period
Not applicable.
(2) Application of accounting methods which are exceptional for quarterly consolidated financial statements
Not applicable.
(3) Changes to accounting policies/ changes to accounting estimates/ restatements
Not applicable.

63. Consolidated Financial Statements*Amounts under one thousand yen have been rounded down.

(1) Quarterly Consolidated Balance Sheets(Thousands of yen）
FY ended March 31, 2014(as of March 31, 2014)ASSETS
Current assets
Cash and deposits
Accounts receivable-trade
Real estate for sale
Real estate for sale in process
construction in process
Supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

7

End of 2Q of FY ending
March 31, 2015(as of September 30, 2014)

11,180,325
285,2313,213,910
15,515,223－
791
748,356
515,005△12,425
31,446,419

11,880,791
231,718
4,457,056
16,915,755
304
689
752,936
397,540△12,700
34,624,093

919,303
1,232,679
12,7992,164,782

950,184
1,232,143
18,8122,201,140

9,375
2,331
11,706

5,625
25,22230,847

9,575
283,351△5,402
287,524
2,464,013
33,910,433

8,546
297,226△4,878300,8942,532,881
37,156,975

FY ended March 31, 2013(as of March 31, 2013)(Thousands of yen）
End of 2Q of FY ending
March 31, 2015(as of September 30, 2014)

LIABILITIESCurrent liabilities
Accounts payable-trade
Short-term loans payable
Current portion of bonds
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Construction warranty reserve
Provision for loss on guarantees for rent
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Other
Total noncurrent liabilities
Total liabilities

411,085
347,500
17,014642,360
266,448
87,49920,00034,8006,561
1,190,179
3,023,449

440,719
347,500
57,014
1,131,080
183,410
100,959
10,00028,149
10,114
1,211,492
3,520,440

1,157,986
10,201,660
306
1,057,505
12,417,457
15,440,906

1,509,479
10,529,280
937
1,041,611
13,081,307
16,601,748

NET ASSETS
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity

8,387,211
2,871,767
6,958,425△121
18,217,283

8,387,211
2,871,767
9,041,335△174
20,300,140

1,749
493
2,242
250,000
18,469,526
33,910,433

2,042
3,043
5,086
250,000
20,555,227
37,156,975

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets8(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of comprehensive income
Quarterly Consolidated Statements of Income(Thousands of yen）
2Q of FY ended
March 31, 2014
(April 1-September 30, 2013)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Interest on refund
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Provision for loss Office transfer expenses
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in profit
Net income

9

2Q of FY ending
March 31, 2015
(April 1-September 30, 2014)

7,086,505
3,808,712
3,277,792
1,201,969
2,075,822

11,870,792
7,349,475
4,521,317
1,509,234
3,012,082

1,770
367
1,977
1,000
1,820
6,935

3,217
385
504
2,520
482
7,109

52,435
9,153
61,5892,021,168

114,134
25,200139,334
2,879,857-

14,017
14,017

83
1,796
1,879
2,019,288
181,778△32,680
149,098
1,870,190
1,870,190

550
550
2,893,324
236,299△3,082233,2172,660,107
2,660,107

Quarterly Consolidated Statements of comprehensive income(Thousands of yen）
2Q of FY ended
March 31, 2014
(April 1-September 30, 2013)
Consolidated quarterly statements of comprehensive income
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

10

2Q of FY ending
March 31, 2015
(April 1-September 30, 2014)

1,870,190

2,660,107

△308
1,488
1,179
1,871,370

293
2,550
2,843
2,662,951

1,871,370-

2,662,951-

(3) Quarterly Consolidated Cash Flow Statement
2Q of FY ended
March 31, 2014
(April 1,2013-September 30, 2013)(Thousands of yen）
2Q of FY ending
March 31, 2015
(April 1,2014-September 30, 2014)

2,019,288
86,091
24,816△3,750△4,060△7,5007,165
4,227△3,003△2,13852,43572,071△3,454,400
380,411
133,668△ 694,675
2,134△54,123△74,883△ 821,548

2,893,324
236,3163,750△248
13,459△10,000△6,6503,553△3,602
114,134△14,01783,517△2,853,680
6,134
125,782591,773
3,153△109,091△317,419
168,416△1,859,772
1,353,142△7,563△20,341△ 534,535△2,059,768
2,036,625
64,930△48,432
17,19854,031△113,570△ 48,987

70,0003,500,000△1,393,600△360,073△12,950
1,803,376
1,459
448,752
9,991,433
10,440,185

4,610,000△3,793,660
389,767△8,507△575,845△52
621,702
1,055
742,186
9,401,600
10,143,787

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses
Increase (decrease) in construction warranty reserve
Increase (decrease) in provision for loss on guarantees for rent
Increase (decrease) in Provision for office transfer
Interest and dividends income
Interest expenses
Loss (gain) on sales of noncurrent assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Net decrease (increase) in restricted cash
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Refund of investment securities
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period11(4) Notes to quarterly financial statements(Notes regarding the conditions of going business)
Not applicable.
(Notes in the case of major changes in shareholders’ equity)
Not applicable.
(Segment information, etc.)
I Second Quarter of Fiscal Year Ended March 31, 2014 (April 1, 2013 – September 30, 2013)
1. Information concerning sales and income or loss amount by reporting segment(Thousands of yen)
Quarterly
consolidated
Adjustment
Other
inocme/loss
Totalamountsbusiness
Real Estate Real Estate Property
statement
Total(Note 2)
(Note 1)
Revitalization Brokerage Management
amount(Note 3)
5,347,151
688,8556
540,547 6,576,555 509,950 7,086,505
7,086,505－
Reporting segment

Sales
Segment
2,133,220
589,536
234,421 2,957,179 179,128 3,136,307 △1,060,484
2,075,822
income(loss)
Notes: 1. The classification “other business” refers to business segments that are not included in reporting segments, andincludes construction solution business and delinquent rent guarantee business, etc.
2. The segment income adjustments amount, △1,060,484 thousand yen, includes △1,112,920 thousand yen incompany-wide expenses that are not allocated to reporting segments and 52,435 thousand yen in adjustment
amounts for interest expense. The company-wide expenses are mainly selling, general and administrative expenses
that are not allocated to reporting segments.
3. Segment income (loss) is adjusted with operating incomes calculated in consolidated quarterly statements ofincome.
2. Information on impairment of non-current assets and goodwill etc. for each reporting segment
Not applicable.
II Second Quarter of Fiscal Year Ending March 31, 2015 (April 1, 2014 – September 30, 2014)
1. Information concerning sales and income or loss amount by reporting segment(Thousands of yen)
Quarterly
consolidated
Other
Adjustment
inocme/loss
businessTotalamounts
Real Estate Real Estate Property
statement
Total(Note 1)
(Note 2)
Revitalization Brokerage Management
amount(Note 3)
10,526,013
498,121634,926 11,659,061 211,731 11,870,792
11,870,792－
Reporting segment

Sales
Segment
3,323,740
408,239
285,307 4,017,288 142,493 4,159,781 △1,147,698
3,012,082
income(loss)
Notes: 1. The classification “other business” refers to business segments that are not included in reporting segments, andincludes construction solution business and delinquent rent guarantee business, etc.
2. The segment income adjustments amount, △1,147,698 thousand yen, includes △1,261,833 thousand yen incompany-wide expenses that are not allocated to reporting segments and 114,134 thousand yen in adjustment
amounts for interest expense. The company-wide expenses are mainly selling, general and administrative expenses
that are not allocated to reporting segments.
3. Segment income (loss) is adjusted with operating incomes calculated in consolidated quarterly statements of income.
2. Information on impairment of non-current assets and goodwill etc. for each reporting segment
Not applicable.
(Important Subsequent Events)
Not applicable12