Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
May 13, 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 general meetings of shareholder: June 21, 2022
Scheduled date of dividend payment commencement: June 22, 2022
Scheduled date of securities report submission: June 22, 2022
Supplemental materials for the financial results: Yes
Presentation to explain for the financial results: Yes*Amounts are rounded down to millions of yen.
1.

Consolidated Performance in the Fiscal Year Ended March 31, 2022

(1)

Consolidated Operating Results(Percentage figures indicate year-on-year changes.)
Net Sales

Operating Profit

Profit Attributable to Owners of

Ordinary Profit

ParentMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

71,251

19.5

12,21753.3

12,215

62.3

7,415

73.5

59,632

△18.6

7,912

△52.3

7,524

△53.3

4,274

△59.9

ROA

Operating Income Margin

FY2022
FY2021(Note) Comprehensive income

FY2022: 7,738 millions of yen (93.1%)(Note) Comprehensive income

FY2021: 4,006 millions of yen (△62.3%)
Fully Diluted Earnings per

Earnings per ShareFY2022
FY2021

ROE

Share

yen

yen

%

%

%

152.26152.12

10.8

9.3

17.0

87.73

6.5

5.8

13.3

87.77

Reference) Income on investments based on equity method

FY2022: △23 millions of yen

Reference) Income on investments based on equity method

FY2021: △55 millions of yen(2) Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

Millions of yen%

yen

136,51274,45252.2

1,463.74

69,77352.3

1,368.14

FY2022
FY2021

127,485(Reference)Total Equity

Net Assets per Share

Equity Ratio

FY2022: 71,282 millions of yen

FY2021: 66,627 millions of yen（3）Cash Flows2.

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash
Equivalents at Year-End

Millions of yen

Millions of yen

Millions of yen

Millions of yen

FY2022

17,443△9,386449

29,951

FY2021

4,733

451△1,15021,319Cash Dividends
1st quarter
end
yen

FY2021
FY2022
FY2023(Forecast)

Cash Dividends per Share
2nd quarter 3rd quarter
Year
end
end
end

Annual
Total

Total Dividends

Payout ratio(Consolidated)

Net asset
dividend rate
(Consolidated)

yen

yen

yen

yen

Millions of yen

%

%

-

0.00

-

42.00

42.00

2,047

47.9

3.1

-

21.00

-

23.00

44.00

2,145

28.9

3.1

-

23.00

-

23.00

46.00

-1

27.0

3.

Forecast for Consolidated Financial Results for FY2023 (April 1, 2022 to March 31, 2023)(Percentage figures indicate year-on-year changes.)
Net Sales
Millions of yen

84,000

FY2023Operating Profit％

Millions of yen

17.9

13,300Ordinary Profit％

Millions of yen

9.7

12,800

Profit Attributable to Owners ofEarnings per

ParentShare％Millions of yen

％

yen

4.8

8,300

11.9

170.44※ 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) Changes in accounting policies, estimates and 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:

Yes
None
None
None

(3) Number of outstanding shares (common stock)1) Number of outstanding shares at the end of the period (including treasury stock):
As of March 31, 2022:
48,755,500 shares
As of March 31, 2021:
48,755,500 shares
2) Number of shares of treasury stock at the end of the period:
As of March 31, 2022:
56,644 shares
As of March 31, 2021:
56,644 shares
3) Average number of shares for the period:
As of March 31, 2022:
48,698,856 shares
As of March 31, 2021:
48,698,856 shares

Reference: Overview of Non-consolidated Performance

1. Non-consolidated Performance in FY ended March 31, 2022(from April 1, 2021 to March 31, 2022)（1）Operating Results(Percentage figures indicate year-on-year changes.)
Net Sales

Operating Profit

Profit Attributable to Owners of

Ordinary Profit

ParentMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

59,56341.8

14,30078.4

14,356

79.6

9,284

74.7

42,002

△34.9

8,017

△54.9

7,994

△52.5

5,314

△52.2

FY2022
FY2021

Earnings per ShareFY2022
FY2021

Fully Diluted Earnings per Share

yen

yen

190.65190.47109.12109.07

Total Assets

Net Assets(2) Financial Position

FY2022
FY2021(Reference)Total Equity

Equity Ratio

Net Assets per Share

Millions of yen

Millions of yen%

yen

124,800

74,43259.6

1,527.80

114,729

68,20459.4

1,400.21

FY2022: 74,402 millions of yen

FY2021: 68,188 millions of yen*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
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 forward-looking statements will evermaterialize. Actual financial performance may be significantly different from such expectations due to various
factors.
-2

Accompanying Materials
Contents
1.

Financial Highlits for the Fiscal Year Ended March 31, 2022 .............................................................. 2(1) Business Performance ............................................................................................................................... 2(2) Consolidated Financial Position ................................................................................................................ 5(3) Consolidated Cash Flow ............................................................................................................................ 6(4) Outlook for the Fiscal Year Ending March 31, 2023 ................................................................................. 7
2.

Basic views on the selection of accounting standards .............................................................................. 7

3.

Quarterly consolidated financial statements and key notes ...................................................................... 8(1) Consolidated balance sheet........................................................................................................................ 8(2) Consolidated statements of income and comprehensive income ............................................................ 10(3) Consolidated statement of changes in equity .......................................................................................... 12(4) Consolidated statement of cash flows ..................................................................................................... 14(5) Notes to consolidated financial statements .............................................................................................. 15(Notes to assumption of going concerns) ................................................................................................... 15(Change of accounting policies) ................................................................................................................. 15(Segment information, etc.) ........................................................................................................................ 16(Per share information) ............................................................................................................................... 18(Significant subsequent events) .................................................................................................................. 18-1

1. Financial Highlights for the Fiscal Year Ended March 31, 2022
(1) Business Performance
Although the Japanese economy showed signs of recovery after the state of emergency was lifted at the end of
September 2021, the number of people infected with COVID-19 expanded toward the end of the current
consolidated fiscal year due to the impact of the COVID-19 variant. As a result, the business environment
surrounding corporate earnings continued to be severe, particularly in the accommodation and tourism industries.
In the global economy, while the impact of this new variant continues, the rise in raw material prices due to theinvasion of Ukraine by Russia and other factors has spurred a rise in consumer prices. Consequently, there has been
increasing speculation in various countries that monetary easing will be scaled down and monetary tightening will
be implemented. It is necessary to pay attention to fluctuations in financial and capital markets going forward.
Even though the deterioration in the average vacancy rate in the Tokyo business district (5 Wards of the Central
Tokyo: Chiyoda, Chuo, Minato, Shinjuku, and Shibuya), where the Company operates Office Building Business,seems to have bottomed out in December 2021, it has been fluctuating since January (according to a survey by a
private research institution). In addition, the average rent was 20,366 yen (unit price per tsubo), falling for the 20thconsecutive month (total 2,648 yen / approximately 11.5%). The overall office market remained weak. In the realestate investment market, although institutional investors’ demand remains strong, the outlook remains
unpredictable due to the global monetary tightening phase.
Under these business environment the Company is steadily expanding its business based on the medium-term
management plan announced in May 2021. During the consolidated fiscal year under review, even in the pandemicof COVID-19, the Company’s core business, Real Estate Revitalization Business, is resulting in steady sales of realestate due to the progression of commercialization with high-margin and high-quality. Moreover, businessperformance expanded steadily in the Real Estate Service Business. On the other hand, in Hotel Operation Business,losses were recorded in the current consolidated fiscal year due to the impact of the declaration of a state of
emergency and start-up expenses.
As a result, net sales amounted to 71,251 million yen (up 19.5% YoY), operating profit amounted to 12,127 million
yen (up 53.3% YoY), ordinary profit amounted to 12,215 million yen (up 62.3% YoY), and profit attributable toowners of parent amounted to 7,415 million yen (up 73.5% YoY).
Due to partial change in the reportable segment from the beginning of the first quarter ended June 30, 2021, actual
results for the consolidated fiscal year under review and the same period of the previous fiscal year have been
reclassified into the new segment classification. The background and outline of the segment change are as follows.
In November 2020, in order to utilize the know-how in Hotel Operation Business for the “Hotel Development
Business” and enhance profitability in an integrated manner, the Company changed the organizational structure bytransferring Hotel Development Business from Sun Frontier Fudousan Co., Ltd. into Sun Frontier HotelManagement Inc. Accordingly, the business segment will reflect this change and is renamed the reportable segment“Hotel and Tourism Business.” Also, in order to strengthen further the coordination of each business segment in thereal estate services field, the Company consolidated related business segments such as Conference Room Rental
Business and Rent Guarantee Business into “Real Estate Service Business”.
The results of each segment are as follows.
(Real Estate Revitalization Business)
In the Real Estate Revitalization Business, we are engaged in (1) Replanning Business and (2) Rental Building
Business.
(1) In the Replanning Business, all processes from purchase of buildings to planning and development, tenant
placement, sales, and subsequent support are offered in-house. During the fiscal year under review, sales are making-2steady progress against the backdrop of strong investment appetite among investors. On the other hand, theCompany carefully selects and purchases properties while closely monitoring the impact of macroeconomic
fluctuations on real estate market conditions and interest rate trends. In commercialization, we aim to create an
office that can be chosen even in the new normal due to the fitness to a hybrid working style while keeping a close
eye on changes in the city, office and work style. In addition, through coordinating with the leasing brokeragedivision, which has expanded its branch network in central Tokyo and conducts community-based sales activities,
we promoted the attraction of tenants even during the COVID-19 pandemic and made our real estate products highoccupancy with high-added value which then we could sell as products that meet the expectations of a wide rangeof clients in Japan and overseas. As a result, the number of units sold in Replanning Business increased steadily to
21, and both net sales and profit increased significantly compared with the previous fiscal year.
(2) In Rental Building Business, with the aim of building a stable revenue base, we are working to increase rent
income in the medium to long term by utilizing the operational capabilities cultivated in the Real Estate Service
division while maintaining the number of properties in commercialization in Replanning Business. However,compared with the previous fiscal year, both net sales and income decreased due to the sale of mid-to-long termlarge buildings with high utilization rates.
As a result, net sales amounted to 55,958 million yen (up 54.2% YoY) and segment profit amounted to 16,262
million yen (up 78.5% YoY) for the total of Real Estate Revitalization Business.
(Real Estate Service Business)
In the Real Estate Service Business, we are engaged in (1) Property Management Business, (2) Building
Maintenance Business, (3) Sales Brokerage Business, (4) Leasing Brokerage Business, (5) Conference Room
Rental Business, and (6) Rent Guarantee Business.
By bringing together the expertise that each of these business divisions has cultivated in the field, they coordinate
and work with each other on the small and medium-sized office buildings areas of central Tokyo. By also
multiplying in a chain reaction, the expertise cultivated through creating on site, they create added value and workas the basis for creating high profitability in the Replanning Business.
(1) In Property Management Business, the Company has achieved high-occupancy and high-profitability building
management by working with the leasing brokerage division to attract tenants and revise the conditions forappropriate rent. At the same time, we are working with the building maintenance division and the construction
division to quickly support the recovery of building facilities in the event of earthquakes, typhoons, and otherdisasters, thereby providing safe and secure building management for owners and tenants. Although the number ofbuildings under management was maintained, revenue was sluggish due to a decline in occupancy rate. As a result,both net sales and profits declined slightly from the previous fiscal year.
End of March 2020

End of March 2021

End of March 2022

Number ofManaging Buildings

392 buildings

397 buildings

421 buildings

Occupancy Rate

98.6%

94.4%

91.5%

(2) In the Building Maintenance Business, we are promoting business based on our strengths in cleaning high places
using swings for exterior windows and exterior walls, waterproofing work, and exterior wall repair work. In theprevious fiscal year, we acquired 100% of shares in Japan System Service Inc., another company in the same
industry, in an effort to strengthen the foundation of its cleaning business in central Tokyo. In the fiscal year underreview, both net sales and profits increased significantly compared with the previous fiscal year, as a result of arebound from a decrease in orders from clients due to the impact of COVID-19, as well as an increase in entrusted
properties and the addition of sales and profits from Japan System Service Inc.
-3

(3) In the Sales Brokerage Business, as part of its real estate consulting, we are responding swiftly to inquiries fromother divisions, including Property Management Business and Leasing Brokerage Businesses. The office building
business division works together to support building owner’s building management, and based on the trust we havebuilt, we are able to close brokerage deals. As a result of the above, both net sales and profit for the fiscal year underreview increased compared with the previous fiscal year.
(4) In the Leasing Brokerage Business, we provide a service network based in 11 sites, mainly in central Tokyo,
and serve as a convenient consultation window that is close to local building owners. We are also creating the clients’point of view’s new values for Replanning Business in the product planning by reflecting the needs and changes oftenants that we have obtained quickly in the field of tenant leasing. Both net sales and profit increased in the fiscal
year under review due to a rebound from the previous fiscal year when tenant relocation stagnated due to the impact
of COVID-19.
(5) In the Conference Room Rental Business, although the need for meeting rooms remains limited due to theimpact of COVID-19, we have provided services that capture the changing times and have responded flexibly toclients’ needs through close contact with local communities and implemented flexible proposal- based marketing.
Consequently, we were able to capture demand from new clients. As a result, although both net sales and profit
increased compared with the previous fiscal year, profit significantly decreased due to the impact of new
construction and closing of sites.
(6) In Rent Guarantee Business, we provide services that are close to building owners, such as not only providing
rent guarantees when tenants fall behind in their rent payments, but also providing support for tenants to vacate
their property, thereby easing the burden on building management. During the pandemic of COVID-19, the numberof new guarantee and re-guarantee transactions remained steady as a result of an increase in building owners’
consultations due to an increase in vacancies and concerns about credit from tenants. As a result, although net sales
decreased slightly from the previous fiscal year, profit increased.
As a result, net sales for the total of Real Estate Service Business amounted to 7,154 million yen (up 15.7% YoY)
and segment profit amounted to 3,803 million yen (up 9.0% YoY).
(Hotel and Tourism Business)
In the Hotel and Tourism Business, we are engaged in (1) Hotel Development Business and (2) Hotel Operation
Business.
(1) In the Hotel Development Business, we sold out all rooms of the condominium hotel HIYORI OCEANRESORT OKINAWA, and completed the delivery of 43 rooms during the fiscal year under review (total 203
rooms of which 1 were non-pre-sale). In the fiscal year under review, both net sales and profit decreased
significantly due to a reaction to the addition of sales and profit from deliveries of 159 rooms in the previous
fiscal year.
(2) The Hotel Operation Business operates a total of 20 hotels (2,859 rooms). During the fiscal year under review,
the Company recorded a loss despite an increase in net sales due to a significant decline in occupancy rate andunit prices, mainly for hotels in urban areas caused by voluntary restraint on tourism under the declaration of astate of emergency, and the recording of start-up expenses for newly-opened hotels.
As a result, net sales for total of Hotel and Tourism Business amounted to 6,911 million yen (down 48.5% YoY)
and segment loss amounted to 1,950 million yen compared with the previous fiscal year (segment profit was 710
million yen).

-4

(Other Business)
In Other Business, we are engaged in (1) Overseas Development Business and (2) Construction Business.
(1) In Overseas Development Business, we have expanded into Southeast Asian countries where growth is expected
and has developed real estate mainly for condominiums and houses using Japanese advanced construction
technology. We are developing its business with a focus on providing Asian people with experience of Japanesequality. In the fiscal year under review, the Company recorded a loss due to a significant decrease in net sales due
to a reaction to the addition of sales of high-rise condominium project in Da Nang, Viet Nam in the previous fiscal
year.
(2) In the Construction Business, renewal planning, repair and reform of commercial buildings, interior finishing
work, and telecommunications work were carried out. In the fiscal year under review, as a result of the addition ofCommunication Development Inc., which the Company acquired 100% of the shares in the previous fiscal year,
profits increased significantly despite a decrease in net sales.
As a result, net sales for the total of Other Business amounted to 1,695 million yen (down 59.8% YoY) andsegment profit amounted to 101 million yen (down 81.9% YoY).
“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020 hereinafter referred
to as the “Revenue Recognition Accounting Standard”), etc. has been applied from the beginning of the threemonths ended June 30, 2021.
Moreover, as a result of the application of Revenue Recognition Accounting Standard, net sales in the Construction
Business of the “Other Business” segment increased by 17 million yen in the current consolidated fiscal year.
(2) Consolidated Financial Position
Total assets at the end of the current consolidated fiscal year amounted to 136,512 million yen (up 7.1% YoY),
liability amounted to 62,060 million yen (up 7.5% YoY), and net assets amounted to 74,452 million yen (up 6.7%
YoY.)
The increase in total assets was mainly due to increase of 8,544 million yen in cash and time deposits, 621 million
yen in real estate for sale, 5,886 million yen in property plant and equipment buildings (net amount), 3,225
million yen in land and 729 million yen in guarantee deposits, despite a decrease of 9,348 million yen in realestate for sale in process.
The main factors for the increase in liabilities were due to an increase of 1,344 million yen in current portion of
long-term borrowings, an increase of 2,627 million yen in income taxes payable and an increase of 2,178 million
yen in long-term borrowings, despite a decrease of 425 million yen in unpaid consumption tax included in current
liabilities and others and a decrease of 685 million yen in long-term guarantee deposits included in non-current
liabilities and others.
The increase in net assets was mainly due to the recording of 7,415 million yen in profit attributable to owners ofparent, despite the payment of 2,047 million in year-end dividends and 1,023 million yen in interim dividends.
Equity ratio decreased 0.1 percentage points to 52.2%.

-5

(3)Consolidated Cash Flows
Cash and cash equivalents (hereinafter called, “funds”) at the end of the current fiscal year increased by 8,632
million yen from the beginning of the fiscal year to 29,951 million yen as a result of an increase of 17,443 million
yen of funds provided by operating activities, a decrease of 9,386 million yen of funds provided by investing
activities, and an increase of 449 million yen of funds provided by financing activities.
Cash flows for the fiscal year under review and their factors are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was 17,443 million yen compared with a net cash provided by operating
activities was 4,733 million yen in the previous fiscal year. This was mainly due to profit before income taxes of
12,135 million yen, income from a decrease in inventories of 7,874 million yen and depreciation of 1,632 million
yen, despite corporate income taxes payments of 2,460 million yen and expenditures of 776 million yen due to adecrease in trade payables.
(Cash flows from investing activities)
Net cash outflow provided by investing activities was 9,386 million yen compared with net cash provided byinvesting activities was 451 million yen in the previous fiscal year. This was mainly due to cash outflow of 530
million yen for the payments into time deposits, outflow of 319 million yen in purchase of property, plant andequipment, and outflow of 221 million yen in payments of guarantee deposits, while there was provision of 1,574
million yen in proceeds from withdrawal of time deposits. This was mainly due to cash outflow of 8,484 million
yen in purchase of property, plant and equipment, 822 million yen in payments of guarantee deposits and 183
million yen in payments into time deposits, despite the provision of 271 million yen in proceeds from withdrawalof time deposits.
(Cash flows from financing activities)
Net cash provided by financing activities was 449 million yen compared with net cash used of 1,150 million yen in
the previous fiscal year. This was mainly due to the fact that there were 20,661 million yen in proceeds from issuanceof bonds and 3,070 million yen in dividends paid by the parent company, but there were 24,183, million yen inproceeds from long-term borrowings.
(Sources of capital and liquidity of funds)
The main demand for funds in our business activities is purchase in inventory assets, which is related to Real Estate
Revitalization Business. Purchase in inventory assets is provided by long-term borrowings from financial
institutions secured by individual inventory assets and funds acquired through operating activities. As a basic policy,
the inventory asset is to be sold within one year, and borrowings is to make a lump sum repayment at the time ofsale of the inventory assets, while taking into account the monthly scheduled repayment and liquidity of funds is
sufficiently secured.
(Reference) Cash Flows-Related Indicators
FY Ended FY Ended FY Ended
March 31, March 31, March 31,
2018
2019
2020
Equity ratio
53.2
50.3
49.6
Equity ratio at market value
62.2
52.0
30.7
Interest-bearing debt to cash flow ratio
Interest coverage ratio
Equity Ratio: Equity/Total assets
Equity Ratio at Market Value: Market Capitalization/Total assets-6

FY Ended
March 31,
2021
52.3
36.9
10.0
9.4

FY Ended
March 31,
2022
52.2
37.5
2.9
39.1

Interest-Bearing Debt to Cash Flow Ratio: Interest-bearing debt/Cash flows from operating activities
Interest Coverage Ratio: Cash flows from operating activities/Interest expenses(4) Outlook for the Fiscal Year Ending March 31, 2023
In response to the spread of COVID-19, countries are searching for policies to coexist with COVID-19. In Japan,
despite the lifting of the state of emergency, the number of people infected with COVID-19 continues to fluctuate,
and the environment remains unpredictable for the settlement of COVID-19. In addition, the rise in raw material
prices due to the invasion of Ukraine by Russia and other factors have spurred price increases, and monetary easing
has been curtailed and monetary tightening has been strengthened in various countries. Therefore, it is necessary tocontinue to pay attention to fluctuations in the financial markets.
Against this backdrop, in the office building market in central Tokyo, while the average vacancy rate seems to havestopped declining, the average rent has continued to decline. Moreover, the improvement in vacancy rate was largely
due to the effects of tenant attraction campaigns such as the revision of lease application conditions and free rent
(rent exemption period) and the office market as a whole remains weak. In addition, although the low interest rateenvironment has continued, it is necessary to pay more attention to developments and the impact of financial
markets.
As a result, the Company forecasts consolidated financial results for the fiscal year ending March 31, 2023 to be
84,000 million yen in net sales (up 17.9% YoY), 13,300 million yen in operating profit (up 9.7% YoY), 12,800
million yen in ordinary profit (up 4.8% YoY) and 8,300 million yen in profit attributable to owners of parent (up11.9% year on year).
The impact of the spread of COVID-19 since the beginning of 2020 has significantly changed the businessenvironment in which the Company operates. Against the backdrop of these changes in the business environment
and the shift to a new state (new normal), the Company reviewed the medium-term management plan in May 2021
in order to re-establish a sustainable growth path. The quantitative target (net sales 100 billion yen, ordinary profit
20 billion yen, profit attributable to owners of parent 14 billion yen) set forth in this plan has not changed, and thefinal year has been extended for two years to the year ending March 2025. Basic policy is set to provide “places
where people gather and communicate with each other, and create social development and happiness for people.”
We will redefine the value of the place where people gather amid the great changes in values with the pandemic of
COVID-19, and solve new social issues through offices and hotels.
2. Basic views on the selection of accounting standards
Our policy is to prepare consolidated financial statements for Japanese GAAP for the time being, taking into accountcomparability of consolidated financial statements over time and comparability among companies.
With regard to the application of IFRS, we intend to take appropriate measures in consideration of various situationsin Japan and overseas.

-7

3. Quarterly consolidated financial statements and key notes(1) Consolidated balance sheet(Unit: million yen)
As of March 31, 2021

As of March 31, 2022

21,50830,053

1,532

945

13,601
72,282

14,22262,934

157

100

46
1,693
(36)
110,785

83
2,603
(21)
110,920

2,851
(855)
(6)
1,989
6,821
2,016
(291)
(7)
1,717
10,528

11,489(3,609)(3)
7,876
10,046
1,800
(921)
(6)
872
18,796

552
149
701

408
164
572

3,997
973
500
(1)
5,470
16,700127,485

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

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
Accumulated depreciation
Accumulated impairment
Buildings (net amount)
Land
Other
Accumulated depreciation
Accumulated impairment
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

(Unit: million yen)
As of March 31, 2021

As of March 31, 2022

1,634
5,530
901
197

1,345
30
6,874
3,528
191

52

73

53
4,988
13,35839
4,126
16,21041,991
11
56
2,295
44,35457,712

44,1696
68
1,605
45,84962,06011,965
6,445
48,573(67)
66,916

11,965
6,445
52,917(67)
71,260

2

3

(292)

19

(289)

22

16
3,129
69,773
127,48530
3,139
74,452
136,512

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(2) Consolidated statements of income and comprehensive income
Consolidated statement of income(Unit: million yen)
For the year ended
March 31,2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Penalty income
Foreign exchange gains
Subsidy income
Other
Total non-operating income
Non-operating Expenses
Interest expenses
Loss on investments based on equity method
OthersTotal non-operating expenses
Ordinary profit
Extraordinary income
Gain on bargain purchase
Settlement money
Other
Total extraordinary income
Extraordinary loss
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Settlement money
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent-10

For the year ended
March 31,2022

59,63244,54915,083
7,170
7,912

71,251
51,907
19,344
7,216
12,127

43
0
33
154
38
270

35
0
200
86
215
77
614

502
55
99
658
7,524

446
23
56
526
12,215

1
1

115
144
0
260

0
5
51
6
63
7,462
3,295
(70)
3,224
4,238
(36)
4,274

0
20
65
254
340
12,135
4,812
(85)
4,726
7,408
(6)
7,415

Consolidated Statement of Comprehensive Income(Unit: million yen)
For the year ended
March 31,2021
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 year ended
March 31,2022

4,238

7,408

(0)
(230)
(231)
4,006

0
329
330
7,738

4,054
(47)

7,727
11

(3) Consolidated statement of changes in equity
For the fiscal year ended March 31, 2021
(Unit: million yen)
Shareholders’ equity

Balance at beginning of
the period
Changes during period
Dividends of surplus
Profit attributable toowners of parent
Change in ownershipinterest of parent due totransactions with non-controlling interests
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of theperiodShare capital

Capital surplus

11,965

6,445

Retainedearnings

46,347

Treasury shares

Total
shareholders’equity(67)

64,690(2,047)(2,047)

4,274

4,274

(0)

(0)

-

(0)

2,226

-

2,226

11,965

6,445

48,573(67)

66,916

Accumulated other comprehensive income
Total
Valuation
Foreign currency accumulated Share acquisition Non-controlling Total net assets
difference onrightsinterests
translation
otheravailable-foradjustment
comprehensive
sale securities
incomeBalance at beginning of
the period
Changes during period
Dividends of surplus
Profit attributable toowners of parent
Change in ownershipinterest of parent due totransactions with non-controlling interests
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of theperiod

3

(73)

(69)

11

177

64,809(2,047)
4,274
(0)

(0)

(219)

(219)

4

2,952

2,737

(0)

(219)

(219)

4

2,952

4,963

2

(292)

(289)

16

3,129

69,773-12

For the fiscal year ended March 31, 2022
(Unit: million yen)
Shareholders’ equity

Balance at beginning of
the period
Changes during period
Dividends of surplus
Profit attributable toowners of parent
Change in ownershipinterest of parent due totransactions with non-controlling interests
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of theperiodShare capital

Capital surplus

11,965

6,445

Retainedearnings

48,573

Treasury shares

Total
shareholders’equity(67)

66,916(3,071)(3,071)

7,415

7,415
-

-

-

4,343

-

4,343

11,965

6,445

52,917(67)

71,260

Accumulated other comprehensive income
Total
Valuation
Foreign currency accumulated Share acquisition Non-controlling Total net assets
difference onrightsinterests
translation
otheravailable-foradjustment
comprehensive
sale securities
incomeBalance at beginning of
the period
Changes during period
Dividends of surplus
Profit attributable toowners of parent
Change in ownershipinterest of parent due totransactions with non-controlling interests
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of theperiod

2

(292)

(289)

16

3,129

69,773(3,071)
7,415
-

0

311

312

14

9

335

0

311

312

14

9

4,679

3

19

22

30

3,139

74,452-13

(4) Consolidated statement of cash flows(Unit: million yen)
For the year ended
March 31,2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors(and other officers)
Increase (decrease) in provision for fulfillment ofguarantees
Increase (decrease) in provision for share-based
remuneration
Interest and dividend income
Subsidy income
Interest expenses
Settlement money
Loss (gain) on investments based on equity method
Loss on retirement of non-current assets
Gain on bargain purchase
Settlement money
Decrease (increase) in trade receivables
Increase/decrease (increase) in inventories
Increase (decrease) in trade payables
Other
SubtotalInterest and dividends received
Interest paid
Income taxes (paid) refund
Proceeds from subsidy income
Settlement money paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payments of guarantee deposits
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
Proceeds from share issuance to non-controllingshareholders
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents-14

For the year ended
March 31,2022

7,462
1,346
51
110
18
(19)

12,135
1,632
65
78
(14)
(8)

(27)

21

2

(13)

16

11

(44)
(154)
502
55
5
(2,688)4,377(1,509)1,486
10,99348(497)(5,964)
154
4,733

(35)
(215)
446
(144)
23
20
(115)
254
496
7,874
(776)
(1,381)
20,35435(447)(2,460)215(254)
17,443

(530)
1,574
(319)
3
(25)
(221)
(30)
451

(183)
271
(8,484)
5
(48)
(822)
(123)
(9,386)(564)
19,990(21,461)(2,046)30
24,183(20,661)(3,070)

3,000

6

(67)
(1,150)

(39)
449

(110)

125

Increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

For the year ended
March 31,2021

For the year ended
March 31,2022

3,924
17,394
21,3198,632
21,31929,951(5) Notes to consolidated financial statements(Notes to assumption of going concerns)
Not applicable.
(Change of accounting policies)
1. Application of accounting standards for revenue recognition“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) was applied at the
beginning of the three months ended June 30, 2021 and so revenue is recognized in the amount expected to bereceived in exchange for the promised goods or services at the time when control of the goods or services istransferred to the customer.
Consequently, if the event that control over goods or services related to renewal planning, repair and renovation
work for commercial buildings, telecommunications work, contracted interior construction work for large,
medium, and small facilities, etc., is transferred to customers over a certain period of time, revenue will berecorded over a certain period of time as performance obligations to transfer goods or services to customers are
fulfilled.
The application of the said accounting standard is in accordance with the transitional treatment provided in theproviso to Paragraph 84 of the Revenue Recognition Accounting Standard, but there is no impact on the balanceat beginning of the period of retained earnings. As a result of the application of the said accounting standard, net
sales in current consolidated fiscal year increased by 17 million yen and operating profit, ordinary profit andprofit before income taxes each increased by 3 million yen. Moreover, “notes and accounts receivable – trade”
that was included in “current assets” in the Consolidated Balance Sheet of the previous fiscal year, has been
included in “Notes, Account receivable and contract assets” from the current consolidated fiscal year.
2. Application of accounting standards for fair value measurement“Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019. Hereinafter referred
to as “Fair Value Measurement Accounting Standard”) was applied at the beginning of the first quarter ended
June 30, 2021 and so in accordance with the transitional treatment set forth in Paragraph 19 of the Fair Value
Measurement Accounting Standard, and Paragraph 44-2 of the “Accounting Standard for Financial Instruments”(ASBJ Statement No. 10, July 4, 2019), the new accounting policies set forth in the said accounting standard will
be applied in the future.
Moreover, there is no impact on the Consolidated Financial Statements.

-15

(Segment information, etc.)[Segment Information]
1. Overview of Reportable Segments
The reportable segments of the Company are the constituent units of the company group for which separate
financial information is available and which are subject to periodic review by the Board of Directors in order todetermine the allocation of management resources and evaluate performance.
The head office formulates comprehensive strategies for each type of product and service and conducts businessactivities.
Accordingly, the Company consists of three reportable segments: “Real Estate Revitalization Business”, “RealEstate Service Business”, and “Hotel and Tourism Business”, which are defined by the product and service
segments established by the head office.
“Real Estate Revitalization Business” is engaged in Replanning Business and Rental Building Business. “RealEstate Service Business” is engaged in Property Management Business, Building Maintenance Business, Sales
Brokerage Business, Leasing Brokerage Business, Conference Room Rental Business, and Rent Guarantee
Business. “Hotel and Tourism Business” is engaged in Hotel Development Business and Hotel Operation
Business.
2. Method for calculating the amount of sales, profit or loss, assets, liabilities and other items for each reportablesegment
The method of accounting for the reportable segments is the same as that described in “Significant basis for
preparation of consolidated financial statements” in the Annual Securities Report. Profit for the reportablesegment is based on recurring profit.
3. Information on net sales and profit for each reportable segment
For the year ended March 31, 2021
(Unit: million yen)

Reportable segments
Real Estate Real Estate Hotel and
Revitalization Service
Tourism
Business
Business
Business

Total

Other
(Note 1)

Total

Note 1.

Amount on The
consolidated
Adjustment
financial(Note 2)statement(Note 3)

Net sales
Net sales to external
36,261
5,730
13,41955,411
4,221
59,632
59,632
customers
Internal sales or
23
452
475
(0)
475
(475)
transfers
Subtotal
36,284
6,182
13,41955,886
4,221
60,107(475)
59,632
Segment profit (loss)
9,111
3,490
710
13,312562
13,874(6,349)7,524
Segment assets
73,6281,784
26,893102,306
1,563
103,870
23,615
127,485
Segment liabilities
38,437
2,588
10,701
51,727282
52,0105,702
57,712OthersDepreciation
1,054
36
151
1,242
16
1,259
87
1,346
Amortization of
2
59
62
48
110
110
goodwillInterest expenses
349
0
90
439
439
63
502
Income(loss) on
investments based on
(55)
(55)
equity method
Increase in Property,
plant and equipment
74
167
173
415
81
496
31
528
and intangible assets“Other” segment is a business segment that is not included in the reportable segment and includes Overseas Development Business
and Construction Business.
Note 2. Details of the “Adjustment” are as follows:(1) Adjustment in segment profit of negative 6,349 million yen includes elimination of intersegment transactions of negative 0-16

million yen and company-wide expenses of negative 6,349 million yen not allocated to each reportable segment. Company-wide
expenses are mainly selling, general and administrative expenses that are not attributable to reportable segments.
(2) Adjustment in segment assets of 23,615 million yen include eliminations of intersegment transactions of negative 17,297 million
yen and company-wide assets of 40,913 million yen that are not allocated to each reportable segment. Company-wide assets consist
mainly of surplus operating funds (cash and time deposits and marketable securities) and administration department’s assets that do
not belong to any reportable segment.
(3) Adjustment in segment liabilities of 5,702 million yen include elimination of intersegment transactions of negative 90 million yen
and company-wide liabilities of 5,792 million yen that are not allocated to each reportable segment.
(4) Adjustment of depreciation under the “Others” of 87 million yen includes depreciation of company-wide assets not allocated toeach reportable segment of 87 million yen.
(5) Adjustment of income(loss) on investments based on equity method in the “Others” of negative 55 million yen includes
income(loss) on investments based on equity method of negative 55 million yen related to company-wide assets not allocated toeach reportable segment.
(6) Adjustment of increase in property, plant and equipment and intangible assets under the “Others” of 31million yen includes the
31million yen increase in property, plant and equipment and intangible assets related to company-wide assets not allocated to eachreportable segment.
Note 3. Segment profit is reconciled to ordinary profit in the consolidated statement income.

For the year ended March 31, 2022
Note 1.
Amount on The
consolidated
Adjustment
financial(Note 2)statement(Note 3)
(Unit: million yen)

Reportable segments
Real Estate Real Estate Hotel and
Revitalization Service
Tourism
Business
Business
Business

Total

Other
(Note 1)Total

Net sales
Revenue fromcontracts with
51,644
5,447
6,797
63,8891,690
65,58065,580
customers
Other income
4,301
1,255
114
5,671
5,671
5,671
Net sales to external
55,946
6,703
6,911
69,561
1,690
71,251
71,251
customers
Internal sales or
12
450
462
5
467
(467)
transfers
Subtotal
55,958
7,154
6,911
70,023
1,695
71,719(467)
71,251
Segment profit (loss)
16,262
3,803(1,950)18,115
101
18,217(6,001)
12,215
Segment assets
70,812
1,941
29,809102,563
1,029
103,592
32,919136,512Segment liabilities
37,3883,049
13,78954,226
192
54,4197,640
62,060
OthersDepreciation
829
40
657
1,527
11
1,539
93
1,632
Amortization of
17
17
61
78
78
goodwillInterest expenses
283
1
119
404
404
41
446
Income(loss) on
investments based on
(23)
(23)
equity method
Increase in Property,
plant and equipment
4,568
107
3,842
8,517
1
8,518
14
8,533
and intangible assets“Other” segment is a business segment that is not included in the reportable segment and includes Overseas Development Business
and Construction Business.
Note 2. Details of the “Adjustment” are as follows:(1) Adjustment in segment profit of negative 6,001 million yen includes elimination of intersegment transactions of negative 2
million yen and company-wide expenses of negative 5,999 million yen not allocated to each reportable segment. Company-wide
expenses are mainly selling, general and administrative expenses that are not attributable to reportable segments.
(2) Adjustment in segment assets of 32,919 million yen include eliminations of intersegment transactions of negative 19,189 million
yen and company-wide assets of 52,109 million yen that are not allocated to each reportable segment. Company-wide assets consist
mainly of surplus operating funds (cash and time deposits and marketable securities) and administration department’s assets that do
not belong to any reportable segment.
(3) Adjustment in segment liabilities of 7,640 million yen include elimination of intersegment transactions of negative 97 million yen
and company-wide liabilities of 7,737 million yen that are not allocated to each reportable segment.
(4) Adjustment of depreciation under the “Others” of 93 million yen includes depreciation of company-wide assets not allocated toeach reportable segment of 93 million yen.
(5) Adjustment of income(loss) on investments based on equity method in the “Others” of negative 23 million yen includes-17income(loss) on investments based on equity method of negative 23 million yen related to company-wide assets not allocated toeach reportable segment.
(6) Adjustment of increase in property, plant and equipment and intangible assets under the “Others” of 14 million yen includes the
14 million yen increase in property, plant and equipment and intangible assets related to company-wide assets not allocated to eachreportable segment.
Note 3. Segment profit is reconciled to ordinary profit in the consolidated statement income.

(Per share information)
For the year ended March For the year ended March
31,2021
31,2022
1,368.14
1,463.74
87.77
152.2687.73
152.12

Net assets per share (yen)Earnings per share (yen)Fully diluted earnings per share (yen)Note 1. Basis for calculation of earnings per share and fully diluted earnings per share is as follows.
(“¥” indicates millions of yen, except for per share figures.)

Earnings per share
Profit attributable to owners of parent
Amount not attributable to common shareholders
Profit attributable to owners of parent related to common shares
Average number of common shares
Fully diluted earnings per share
Adjustment of profit attributable to owners of parent
Common shares increase(including Share acquisition rights)
Outline of dilutive shares not included in the calculation of fully
diluted earnings per share because they have no dilutive effectNote 2. Basis for calculation of net assets per share is as follows.

For the year ended March
31,2021

For the year ended March
31,2022¥4,274¥4,274
48,698,856¥7,415¥7,415
48,698,856

20,021¥16

45,267¥30-(“¥” indicates millions of yen, except for per share figures.)
For the year ended March
31,2021¥69,773¥3,145¥16¥3,129¥66,627

For the year ended March
31,2022¥74,452¥3,169¥30¥3,139¥71,282

Total net assets
Amount of deduction from total net assets
Share acquisition rights
Non-controlling interests
Net assets at year end available to common shares
Number of common shares used for the calculation of net assets per
48,698,856¥48,698,856
shareNote 3. The Company’s shares held by the trust account of the Employee Stock Ownership Plan (J-ESOP) are included in weighted average
number of shares for the period in common shares and treasury shares deducted in the calculation of the total number of outstanding
shares at the end of the fiscal year under review. The weighted average number of shares for the period of the Company’s shares heldby the trust account is 56,500 shares for the previous fiscal year and 56,500 shares for the current fiscal year. The number of shares atthe end of the fiscal year is 56,500 shares for the previous fiscal year and 56,500 shares for the current fiscal year.

(Significant subsequent events)
Not applicable.

-18