Financial Results for Third Quarter of Fiscal Year Ending
March 31, 2015
(Based on Japanese GAAP)(Translation of Japanese Flash Report, Released on Febuary 4, 2015)
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: Yasushi Yamada, Operating Officer and Chief of Management Planning Division(Phone: +81-3-5521-1301)*Amounts under one million yen have been rounded down.

1. Consolidated Performance in Third 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

3rd Quarter of FY ending March 31, 2015

¥20,062 (91.2%)¥4,587 (67.5%)¥4,390(66.1%)

3rd Quarter of FY ended March 31, 2014

¥10,492 (73.6%)¥2,738 (96.9%)¥2,643(98.1%)(Note) Comprehensive income, 3rd quarter of FY ending March 2015: ¥3,971 million (57.3%), 3rd quarter of FY ended March 2014:¥2,524 million (60.0%)

Net Income

Net Income per Share(Yen)

Fully Diluted
Net Income per
Share(Yen)

3rd Quarter of FY ending March 31, 2015

¥3,878 (53.8%)¥90.71－

3rd Quarter of FY ended March 31, 2014

¥2,521 (59.8%)¥58.97－(2) Financial Position (at end of the term)(Millions of yen, except for per share figures)

Total Assets

Net Assets

Equity Ratio(%)

3rd Quarter of FY ending March 31, 2015

¥38,177¥21,864

56.4%

FY ended March 31, 2014

¥33,910¥18,469

53.7%(Note) Equity at term-end: 3rd Quarter of FY ending March 31, 2015 : ¥21,525 million
FY ended March 31, 2014 : ¥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

-

FY ending March 31, 2015

-

¥0.00

-

FY ending March 31, 2015
(Projections)(Note) Changes from the latest released dividend forecasts:Yes

Year end

Annual total¥13.50¥13.50¥16.50¥16.503. 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

¥27,500 (54.7%)

Operating Income(Loss)

Ordinary Income(Loss)¥5,600 (23.6%)¥5,400 (24.4%)(Millions of yen, except for per share figures)
Net Income (Loss) per
Net Income
Share (Yen)(Loss)(Yen)¥4,900 (21.9%)¥114.60(Note) Changes from the latest released performance:Yes

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):
3rd Quarter of FY ending March 31, 2015: 42,755,500 shares FY ended March 31, 2014: 42,755,500 shares
2) Number of treasury stock at the end of period:
3rd Quarter of FY ending March 31, 2015: 143 shares
FY ended March 31, 2014: 100 shares3) Weighted average number of shares for the first quarter period (April 1 – June 30):
3rd Quarter of FY ending March 31, 2015: 42,755,372 shares 3rd Quarter of FY ended March 31, 2014: 42,755,472 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 basedon 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) 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 third quarter period, the Japanese economy was on a gentle recovery trend, partially because of theeffects of weak yen and the expansion of the financial measures implemented from the year before last by the government andthe Bank of Japan for getting out of deflation, though it was seen a weekness in a part including the individual consumption.
In the real estate industry, the vacancy rates of urban office buildings keep improving and rents are gently increasing, as
firms are actively expanding their offices and so on. In the real estate investment market, there is the inflow of funds fromoverseas investors in Asia, etc. as well as Japanese investors, because of the favorable fund procurement environment, the yen
depreciation, etc. and the needs for investment especially in urban real estate are high.
In such an environment, our corporate group focuses on the utilization and distribution of small to medium-sized officebuilding in the urban center of Tokyo, and has helped building owners solve various troubles regarding real estate. We create
multifaceted earning opportunities by providing each customer with one-stop services, including proposal and order receipt
for the rental, brokerage of sale, management, maintenance, remodeling, and renovation of buildings; consultation regarding
inheritance, tax affairs, etc.; the insurance for delinquency in rent payment, etc.
Furthermore, we revitalize real estate while adding high additional values, by acquiring relatively vacant buildings byinjecting our own funds and linking a variety of specialized services. We have accumulated the know-how and experience of
restoration of mainly office buildings in 5 cities in the center of Tokyo (Chiyoda, Chuo, Minato, Shinjuku, and Shibuya), bylinking additional values, for example, by creating the optimal use to please local communities and renovating real estate toimprove comfort for occupants, while utilizing our capability of finding tenants based on our familiarity with local areas. As
for procurement, we obtain information on good real estate from leading real-estate companies and trust banks, and also an
increasing number of pieces of information from “Kyoeikai (Co-prosperity Association),” which is our original network ofaffiliates. In addition, our employees make consistent efforts of directly visiting the houses, etc. of building owners and asking
them about their worries, complaints, etc. to solve them, and these efforts have contributed to the direct procurement of realestate. By taking a closer position to suppliers (sellers), we became able to secure real estate more surely, and amid the thriving
real estate market, we were able to procure competitive buildings that would be highly evaluated when renovated.
As a result, our operating results for the third quarter of fiscal year ending March 2015 were as follows:
Sales of ¥20,062 million (up by 91.2% from the same period of the previous fiscal year), operating income of ¥4,587 million(up by 67.5%), ordinary income of ¥4,390 million (up by 66.1%), and net income was ¥3,878 million (up by 53.8%).
The performance of each segment is as follows.

Real Estate Revitalization
For revitalizing buildings, we get versed in the market based on our branches’ experience of rental, assess and procure realestate, and start “production” for realizing the optimal use. By injecting and linking each section’s experience, technologies,
and knowledge of planning, building management, construction, etc., we will gestate feasible plans. As we cherish our policy:“The satisfaction of buyers is from the satisfaction of tenants,” we pursue demanded comfort and convenience we grasped
through frequent dialogues with occupants, figure out potential complaints, and solve them in advance, to prevent occupantsfrom moving out and achieve high occupancy rates. We also add values to every aspect of after-sale services, including the
responsive management of hardware and software of buildings, warranty against construction defects, solving owners’ troubles,and meeting new requests.
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 20 buildings (11 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 term, and the procurement of real estate 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 the income
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 special-purpose
company, etc.
As a result of the above activities, sales were ¥17,714 million (up by 129.2% from the same period of the previous fiscal
year) and segment income was ¥4,901 million (up by 79.8%).

Real Estate Brokerage
In the sales brokerage business, we were not able to swiftly respond to the shift from the buyers’ market to the sellers’ market(that is, the steep drop in rate of return) as the market got thriving and competitions were getting fierce, and so the number oforders we received declined. As a result, sales and profits decreased considerably.
In the rental brokerage business, while occupancy rates were improving in the market, we engaged in not only finding
tenants, but also solving various troubles about building managements for building owners. As a result, sales and profits4

increased from the same period of the previous year.
As a result of the above activities, sales were ¥878 million (down by 32.5% from the same period of the previous fiscal
year) and segment income was ¥740 million (down by 26.6%).
Both businesses contribute to the increase in income of the entire corporate group, by procuring and selling our own
properties, finding tenants for buildings that are being renovated, and undertaking building management.

Property Management
In the property management business, we visit tenants on a daily basis to solve hidden complaints beforehand, improve thesatisfaction level of occupants, and then increase the occupancy rates of entrusted buildings. While keeping occupancy rates
high, we have made efforts to increase the number of entrusted buildings, create business opportunities, including the brokerageof sale, the receipt of orders for construction, and the revision to contracts for making rents appropriate, and enhance customer
satisfaction level by promoting rental and attending to tenants carefully while utilizing our familiarity with local areas. We
have also offered continuous services linked with other businesses, as the clients who purchased real estate through ourreplanning or sales brokerage business entrust us with the management of buildings after purchase. As a result, sales and profits
increased from the same period of the previous year.
End of Dec. 2012

End of Dec. 2013

End of Dec 2014

No. of entrusted buildings

177

214

255

Operation rate

94.3%

96.4%

97.2%

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 forenhancing the synergy with existing businesses. As a result, sales and profits increased from the same period of the previous
year.
As a result of the above activities, sales were ¥955 million (up by 17.4% from the same period of the previous fiscal year)
and segment income was ¥417 million (up by 18.0%).

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 and thecooperation 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 ¥514 million (down by 20.8% from the same period of theprevious fiscal year) and segment income was ¥255 million (up by 1.4%).
(2) Qualitative information on consolidated financial position
As of the end of the third quarter of this consolidated fiscal year, total assets were 38,177 million yen (up by 12.6% fromthe end of the previous consolidated fiscal year) and liabilities were 16,313 million yen (up by 5.6%). The main reason for theincrease in total assets was that cash and deposits increased 1,618 million yen and inventory assets increased 2,445 million
yen. The main reason for increase in liabilities was that long-term loans payable increased 1,522 million yen, although
corporate bonds decreased 795 million yen.
Net assets were 21,864 million yen (up by 18.4%). The main reason for the increase in net assets was posting 3,878 million
yen in quarterly net income, despite 577 million yen being paid out for year-end dividends.
(3) Qualitative information on consolidated earnings forecasts
We are revising the values announced on May 9, 2014 with regard to performance for the fiscal year ending
March 2015. For details of these revisions, please refer to the report that we are presenting today, “Notice ofRevisions to the Projected Consolidated Performance for the Fiscal Year Ending March 2015, and Revision of
Dividend Forecasts”.

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 3Q of FY ending
March 31, 2015(as of December 31, 2014)

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

12,798,471
416,979
4,123,949
17,032,353
18,200928
740,082549,888△17,716
35,663,137

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

937,588
1,232,143
17,674
2,187,406

9,375
2,331
11,706

3,750
27,39731,147

9,575
283,351△5,402
287,524
2,464,013
33,910,433－
300,438△4,902295,535
2,514,090
38,177,227

FY ended March 31, 2013(as of March 31, 2013)(Thousands of yen）
End of 3Q of FY ending
March 31, 2015(as of December 31, 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

639,821
147,500
40,0001,018,280
133,10956,537
15,00021,3008,443
1,355,894
3,435,886

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

340,000
11,348,660
93,535
1,095,068
12,877,263
16,313,149

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
10,259,642△174
21,518,447

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

2,251
5,246
7,497
338,132
21,864,077
38,177,227

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）
3Q of FY ended
March 31, 2014
(April 1-December 31, 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

3Q of FY ending
March 31, 2015
(April 1-December 31, 2014)

10,492,890
5,894,088
4,598,802
1,859,965
2,738,837

20,062,447
13,209,428
6,853,018
2,265,246
4,587,772

2,674
367
1,977
2,800
3,265
11,083

5,609
385
508
5,080
3,082
14,66594,513
11,694106,208
2,643,713

180,654
31,290211,944
4,390,493

79
79

14,017
14,017

105
1,796
1,901
2,641,891
239,660△119,313
120,346
2,521,544
2,521,544

637
637
4,403,872
326,525
110,799
437,325
3,966,547
88,132
3,878,414

Quarterly Consolidated Statements of comprehensive income(Thousands of yen）
3Q of FY ended
March 31, 2014
(April 1-December 31, 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

3Q of FY ending
March 31, 2015
(April 1-December 31, 2014)

2,521,544

3,966,547

△293
1,488
3,442
2,524,693

502
4,753
5,255
3,971,802

2,524,693-

3,883,670
88,132

(3) 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 Third Quarter of Fiscal Year Ended March 31, 2014 (April 1, 2013 – Decenber 31, 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)7,729,018 1,300,890
814,025 9,843,934 648,955 10,492,890
10,492,890－
Reporting segment

Sales
Segment
2,725,718 1,009,297
353,919 4,088935 252,171 4,341,106 △1,602,269
2,738,837
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, △1,602,269 thousand yen, includes △1,696,783 thousand yen incompany-wide expenses that are not allocated to reporting segments and 94,513 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.
II Third Quarter of Fiscal Year Ending March 31, 2015 (April 1, 2014 – December 31, 2014)
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)
17,714,323
878,205
955,684 19,548,212 514,234 20,062,447
20,062,447－
Reporting segment

Sales
Segment
4,901,436
740,860
417,539 6,059,836 255,719 6,315,555 △1,727,782
4,587,772
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, △ 1,727,782 thousand yen, includes △ 1,908,437 thousand yen incompany-wide expenses that are not allocated to reporting segments and 180,654 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 applicable11