Sun Frontier Fudousan Co., Ltd.

Supplementary Materials for
the Financial Briefing Session ofthe Fiscal Year ended March 2019
Description of the Two Segments
To Achieve the Medium-Term Management Plan
(which completes in the Fiscal Year ending March 2023)

1) Results and Forecasts of the Two Segments

1-5

May 11, 2019

Stock Code: 8934

1) Results and Forecasts of the Two Segments- Replanning Business- Operation Business

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This document is quoted from page 13

Growth Capacity for The Two Segments
FY ended
March 2019

FY endingMarch 2020

Rate ofChange(Forecast)

Net Sales

53,29170,000+31.4%(1)Real Estate Revitalization Business

45,49052,340+15.1%

RP Business (including hotel development)

42,50748,559+14.2%

Rental Building Business

2,982

3,781+26.8%(2)Real Estate Service Business

3,179+11.6%(3)Operation Business

3,898(4)Other Business
Adjustment Amount

1,508
▲784

3,550
6,710
8,479
▲1,080+462.2%－Gross Profit

19,192

21,450+11.8%(1)Real Estate Revitalization Business

16,04816,657+3.8%

RP Business (including hotel development)

14,712

15,058+2.3%

Rental Building Business

1,336

1,599

+19.6%(2)Real Estate Service Business

1,898

2,233760
1,798+17.6%(3)Operation Business476(4)Other Business
Adjustment Amount829▲60

Selling, general and administrative expenses+72.1%+59.8%－+116.8%－5,886

6,950+18.1%

Operating Income

13,305

14,500+9.1％

Ordinary Income

12,81314,000+9.3％

Net Income

8,783

9,500+8.2％

Cash Dividends per Share (yen)

38.50

39.50

+2.6％

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2▪︎ We will expand and improve new business areas
such as operation business and other business.
▪︎ Net Sales of hotel operation business andconference room rental business are expected toincrease 2.3 billion yen from the previous FY.

▪︎ RP gross margin is set on the assumption thatrents are flat with the current market
environment.
31.9% for FY ended March 201834.6% for FY ended March 2019
⇒ 31.0% for FY ending March 2020

▪︎ including 800 million yen expected from RP Salescommission( 580 million yen in FY ended March 2019)

Sun Frontier Fudousan Co., Ltd.

Operating Results by Business Segment

Replanning BusinessCurrently, RP sales for the fiscal year ending March 2020 is conservatively set due to various factors such as developmentsof the operation business and the overseas business due to the sale the condominium in Vietnam in addition to increasing
uncertainty in the market. We aim to expand rent income over the medium term and transform our profit structure to deal
with market fluctuations.
FY ended March 201742.5 billion
yen

48.6 billion
yen

Sold Cost of RP Property

26.3 billionyen

27.8 billionyen

33.5 billion
yen(Profit Margin)44.5 billion
yen

26 billion
yenContinued
holding45.5 billion
yenContinued
holding62.2 billion
yencarryoverYear-end Inventory of RP properties

45.8 billion
yen

14.7 billion
yen (35%)

carryoverAcquisition and Construction Costs
during the period

12.3 billion
yen (32%)

FY ending March 2020（Forecasts)

Sale in the next year

RP Gross Profit

Sale during the fiscal year

38.6 billion
yenSale in the next year

Sales of RP Property

Sale during the fiscal year

FY ended March 2019

Sale in the next year

FY ended March 2018

Continued
holding

15.1 billion
yen (31%)
40 to 50billion yen
70 to 80billion yen【 Potential Latent Gains on year-end RP inventories (※) 】
Assumed Profit Margin: 25%

8.7 billionyen

15.2 billion
yen

20.7 billion
yen

Assumed Profit Margin: 30%

11.1 billion
yen

19.5 billionyen

26.6 billion
yen(※) Profit on sale of the year-end RP inventories at the above profit margin
Potential Latent Gain = Year-end Inventory/(1 – Profit Margin) – Year-end Inventory
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Operating Results by Business Segment

Operation Business
FY ended March 2018

FY ended March 2019

2,898

3,898

Hotel Operation Business

2,178

Conference Room Rental
Business(Unit: million yen)

Net Sales

FY ending March
2020 (forecast)

Increase/Decrease

6,710+72.1%

2,981

5,320

+78.4%

719

916

1,390

+51.7%

387

476

760

+59.7%

Hotel Operation Business

201

323

570

+76.5%

Conference Room Rental
Business

185

153

190

+24.2%

13.4%

12.2%

11.3%

－

Hotel Operation Business

9.2%

10.8%

10.7%

－Conference Room Rental
Business

25.9%

16.7%

13.7%

－*

Gross Profit

Gross Profit Margin*Including Hotel Operations Business, Sado Business, etc.

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Disclaimer

The forecasts in this document are based on assumptions and beliefs in light of theinformation currently available. The actual results may differ from these forecasts due
to changes in risks, uncertainties and economic conditions. Our Group does notguarantee the accuracy of these forecasts.
This information is subject to change without notice.
The purpose of this document is to provide information that can be used as areference in making investment decisions. It is not intended to solicit investment.
Our Company will not be responsible for any damages arising out of the use of thisdocument.

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