Sun Frontier Fudousan Co., Ltd.

Consolidated Financial Results for
the Fiscal Year Ended March 31, 2017
Our goal is to be the real estate company
that customers love and choose over any other worldwide.

Executive Summary
Results for the FY Ended Mar 31, 2017

1-13

Financial Forecast
for the FY Ending Mar 31, 2018

14-17

Future Developments
1) Business environment

18-202) Business policy and model

21-313) Growth strategies

32-43（Reference）Company Overview

44-46

May 10, 2017
Stock Code：8934

Highlights of the Whole Financial Year
Summary of the Fiscal Year Ended Mar. 31, 2017
Sales and Ordinary Income Increased for the Sixth Straight Fiscal Year.
Ordinary Income and Dividend has Reached the Highest-ever Level.
40,394※1

Year on Year
Change+ 9,768

Operating income

9,380+ 1,993+ 27.0%8,500

110.4%

Ordinary income

8,894+ 1,869+ 26.6%8,200

108.5%Net income※2
Dividend per
Share

6,452

(1,704)(20.9%)

5,600

115.2%

30.0

+ 5.0

+ 20.0%28.0

107.1%

Results

Sales

Increase Rate

Forecast of
FY 2017

Achievement Rate

+ 31.9%41,00098.5%※1 Million yen, except for per share figures. ※2 Net income attributable to owners of parent ※3 In replanning business , we revitalize aging buildings

1

through renovation and sell with high added-value.

1）Operating and ordinary income
has reached the highest-ever level.

2）Replanning※3 Business is developing
continuously at a high profit margin.

3) Stock-type business is developing well.

• Ordinary income has achieved thehighest-ever level (Previous record
was set 10 years ago on March,
2007)• Dividend forecast per share has
been revised upward from 28 yen
to 30 yen (+ 20% compared toprevious fiscal year.)• As loss previously carried forward
was set off, the tax cost increased
and net income decreased by 1.7
billion yen compared previous
financial year.

• Replanning Business is developing
continuously at a high profit margin.
（Previous 27.8%⇒Current 28.3%）• 3 factors of Revitalization business1. Procurement 2. Commodification
3. SalesBy digging deep in all process anduniting all professional strengths of eachinternal department, we make ingenious
effort to increase the added value andmaximize the attractiveness of thebuilding.

• Segment profit of Stock-type businessplaced in “Other Business” expanded 2.6
times compared to the previous financial
year.
• We acquired Sky Court Hotel Co., Ltd. thehotel management company throughM&A.
• In space rental business, we newly opened
2 branches (Tamachi & Yokohama) on
March 1, which increased the total
number of branches to 6.
• Our 1st original brand hotel “Hiyori Hotel
Maihama ”pre-opened on April 28.

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Sun Frontier Fudousan Co., Ltd.

Changes of the Consolidated Results(¥ 1 Million yen, except for per share figures. )FY Ended
March, 2013

FY Ended
March, 2014

FY Ended
March, 2015

FY Ended
March, 2016

FY Ended
March, 2017

Sales andProfit Ratios

Sales

10,58017,772

27,741

30,62540,394

Operatingincome

2,156

4,531

5,850

7,387

9,380

23.2%

Ordinary income

2,039

4,341

5,593

7,024

8,894

22.0%

Net income※1

2,483

4,020

5,053

8,157

6,452

16.0%

Net Income
per Share

66.50 yen※2

94.03 yen

118.18 yen

190.78 yen

150.92 yen

Dividend per Share

8.50 yen※2

13.50 yen

16.50 yen

25.00 yen

30.00 yen

－

－

20%up

※1 Net income attributable to owners of parent※2 Since the company conducted a 1:100 stock split of common stocks on October 1, 2013,
1/100 is used to calculate dividend per share for ease of reference.
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

2

Sun Frontier Fudousan Co., Ltd.

Changes of Sales & Ordinary Income & Employees
Sales and income are growing steadily. Employees are also increasing stably.
（People）（¥ Million）

50,00048,150

Sales

500

Ordinary Income
Number of Employees

40,39440,00035,25430,62530,00026,87020,00016,73010,000027,741

70

84

96
7,760

52
5,003
24 1,771 3,588791
2 0 681140 377 501
1

2000/3

2001/3

2002/3

2003/3

2004/3

1,437
2005/3

134

125
8,289

152

141

2007/3

2008/3

139
4,289

3,474

2006/3

181

14,469142

6,346

2009/3

2010/3

206

199

276

223

6,923
799

2011/3

2012/3

2,039

4,341

5,593

300

200

17,772

10,580

541

329

400

7,024

8,894 1000
2013/3

2014/3

2015/3

2016/32017/3(3,776)(10,000)(100)(20,000)
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

(17,794)

3(200)

Sun Frontier Fudousan Co., Ltd.

Changes of Key Performance Indicators(¥Million）
45,000

ROE

Sales

40,00035,00030%

35,000

24.4%

30.9%

23.6%

(¥Million）
40,00080%

Equity Ratio

22.9%
20.2%

70%

68.5%

25%

22.0%

56.2%

30,000

55.7%

56.0%

60%

19.3%

24.7%

20%

30,00025,000

19.6%
20%

Net Assets

Ordinary Income to Sales Ratio

35%

25%

30%

Ordinary Income

ROE(Converted by effective tax
rate as simulation※）

24.5%（Financial stability is being built.）（Conducting high value-added management.

（Utilizing capital efficiently. ）40%■Equity ratio■Change of ordinary income ratio■Change of ROE

53.7%

50%

25,00015%

21.0%

20,00040%

15,00030%

10,000

20%

5,000

10%

20,000

15%

16.3%

16.3%

17.2%

17.2%
10%

15,00010%

10,000

5%
5%

5,000

0

0%
2013/3

2014/3

2015/3

2016/32017/32017/32017/3
2013/3 2014/3 2015/3 2016/3 2017/3

0%02017/3
2013/3 2014/3 2015/3 2016/3 2017/3

0%※ Calculated by effective tax rate･･･It is a trial calculation on the assumption that our company is taxed at effective tax rate (30.86% for FY Ended March, 2017)
while the influence of tax burden reduction which is a result of the tax loss carried forward is eliminated.
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

4

Sun Frontier Fudousan Co., Ltd.

Realized High Level ROE while Keeping the High Equity Ratio

25%

The ROE of Top 25 Companies of Market Capitalization Ranking■ Correlation Diagram of Equity Ratio and ROE
Regarding the Top 25 Companies in Market Capitalization Rankingof Real Estate Sector (non-residence)

Company
1
2
3
4
5
6

Our Company（FY 2017/3）

20%

7
8
9

R

Our Company（FY2017/3）
Converted by effective tax rate

o 15%

10
11

E

12

(
%

13

)

10%

14
15
16
17
18
19
20
21
22
23
24

5%

0%
0%

20%

40%
Equity Ratio（％）

60%

80%

25

Sun FrontierTOSEIRAYSU<AEON delight
Hulic
NIPPON KANZAI
Nomura Real Estate
Holdings
Kyoritsu Maintenance
UNIZO Holdings
Company
Sumitomo Realty &Development
AEON MALLNTT Urban
Development
Mie Kotsu Group
Holdings
TOKYU FUDOSANHOLDINGS
Keihanshin Building
Tokyo Tatemono
Mitsui Fudosan
MITSUBISHI ESTATE
TOC
PARCO
HEIWA REAL ESTATEDAIBIRU
Kabuki Za
TOKYO RAKUTENCHI
Showa Aircraft
Industry
Average（Notincluding Sun
Frontier）

19.6%
13.5%
12.4%
11.6%
10.4%
10.3%

Ordinary
Income Ratio
56.0%
22.0%
33.8%
17.0%
74.5%
19.0%
63.5%
5.9%
29.7%
23.8%
64.7%
6.4%

10.2%

29.5%

12.8%

9.5%

38.4%

7.2%

9.5%

11.7%

26.2%

8.8%

20.7%

17.4%

8.3%

33.8%

17.2%

8.0%

20.3%

18.5%

7.7%

25.0%

4.7%

6.7%

20.0%

6.9%

6.2%
6.2%
6.1%
5.4%
5.2%
5.1%
4.6%
3.6%
3.1%
2.8%

52.4%
24.2%
35.6%
28.5%
61.1%
47.1%
33.3%
42.2%
41.2%
68.6%

32.0%
12.0%
11.6%
14.4%
28.0%
4.5%
18.1%
21.4%
12.7%
13.6%

2.1%

51.2%

4.6%

7.4%

39.6%

14.8%

ＲＯＥ

Equity Ratio※1 Data of other companies are based on the brief financial results of FY2017/2(Data of our company is based on FY2017/3) The classifications of Real Estate Company (non-housing) are specified in Kaisha Shikiho.
※2 ROE is calculated by dividing the net income by equity capital at the end of the fiscal year. (Data of our company is the average value of fiscal year.)
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

5

Sun Frontier Fudousan Co., Ltd.

Fiscal Year Ended March 31, 2017

Revenue / Profit Summary
FY Ended
Mar 31, 2016

FY Ended
Mar 31, 2017

Sales

30,62540,394

Real estate revitalization

26,83535,369Replanning Business

24,54633,635

Rental Building Business

2,144

1,717

145

17

Brokerage Business

1,537

Property Management Business(¥ million)
Apr. to Mar. in
FY Ended
Mar 31, 2016

Apr. to Mar. in
FY Ended
Mar 31, 2017

7,387

9,380

Non-operating income

2515

Non-operating expenses

389

501

Ordinary Income

7,024

8,894

1,314

Extraordinary loss/income

1,245

0

1,483

1,707

Corporate income tax, etc.

115

2,444

769

2,003

Income(loss) attributable
to non-controlling interests

(2)

(2)

10,95913,700Net Income

8,157

6,452

Real estate revitalization

8,640

10,994

Replanning Business

7,377

10,065

Rental Building Business

1,117

937

Both sales and gross income of replanning businessincreased greatly. Profit margin is hovering at a high leveland driving the entire business performance.

Other businesses

145

(8)

Brokerage Business

1,314

1,082

Property management

675

750

Other Businesses

328

872

3,572

4,319

Other Revitalization Business

Other businesses

Gross Profit

Selling and generaladministrative expenses

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Operating Income

Rental building business and sales brokerage business isdecreasing.
Hotel operation and space rental business of stock-typebusiness expanded well. Sales and profit increased by 2.6
times than previous year.
As the tax loss carryforward was set off by expanded
profit, there is a reversal of 1.2 billion deferred tax
assets , therefore tax cost increased.

6

Sun Frontier Fudousan Co., Ltd.

Consolidated Balance Sheet-Assets(¥ million)

End of Mar. 2015

End of Mar. 2016

End of Mar. 2017

Increase/decrease(from the end of
Mar. 2016)

Current assets

37,45251,36555,195+3,830Cash and deposits

12,686

15,413

16,246+832

Inventory assets

23,48032,71436,186+3,472

Breakdown） RP
Hotel
Overseas, etc.

22,3401,140－

27,1895,525－

26,0397,254
2,892(1,150)+1,728+2,892Other current assets

1,285

3,237

2,762

(474)

2,971

2,718

8,458

+5,740

2,483

1,919

7,288

+5,368Intangible assets

76

278

562

+284

Investments and other assets

412

520

608

+87

40,42454,08463,654+9,570Noncurrent assets
Property, plant, andequipment

Total assets

Increased by 1.7 billion yen for hotel business and increased by 2.8 billion yen for overseas business. On the other hand,decreased by 1.1 billion yen in replanning business (Sales: 30 properties , procurement: 30 properties.)
Deferred tax assets decreased by 1.2 billion yen. Advanced payment increased by 1 billion yen(deposits of purchase
contract for replanning business)
Increased by 5 billion yen by acquiring hotel land in September for long-term hold.
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

7

Sun Frontier Fudousan Co., Ltd.

Consolidated Balance Sheet-Liabilities/Equity(¥ million)

End of Mar.
2015

End of Mar.
2016

End of Mar.
2017

3,550

7,641

8,281

+639

1,004

3,353

3,438

+84

221

973

802

(170)

2,324

3,314

4,040

+725

14,172

16,298

19,686+3,388Long-term loans and bonds
payable12,98815,055

18,626+3,571Other noncurrent liabilities

1,183

1,242

1059

(182)

17,72323,93927,968+4,02822,69330,14435,528+5,383

8

(0)

157

+157

Total net assets

22,70130,14435,686+5,541

Total capital and liabilities

40,42454,08463,654

9,570

Current liabilities
Short-term loans payable, etc.

Income taxes payable, etc.
Other current liabilities
Noncurrent liabilities

Total liabilities
Shareholders’ equity
OthersChange of Equity Ratio
End of Mar. 2015

End of Mar. 2016

End of Mar. 2017

56.2%

55.7%

56.0%

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Increase/decrease(compared to the endof Mar. 2016)

Loans payable by replanning business decreased by 1 billion yen,
however, loans payable by hotel business increased by 4.6 billion yen,interest-bearing debt is 22 billion yen.
Retained earnings (5.38 billion yen)increased as difference of net
income (＋6.45 billion yen) and dividend payment (▲1.06 billion yen).

8

Sun Frontier Fudousan Co., Ltd.

Performance ofReplanning Business(¥ million)

FY Ended
Mar 31, 2016

FY Ended
Mar 31, 2017

24,54633,635+37.0%

Segment income(Note1)

6,831

9,502

+39.1%

Profit margin

27.8%

28.3%

+0.4%pNo. of procuredbuildings

34

30

(4)

No. of sold buildings

24

30

+6

No. of buildings instock as of the end of
the term

38(Note2)

+6

Sales

44

Sales

Increase/decrease

Segment Income

40,000

Profit Margin50%
33,63540%

32,00024,00024,54622,036

27.8%

28.2%

30%

22.1%

20%

16,000■ In order to create high added values, we spend about one year to build in
worth and appeal in the eyes of the user into the product in order to turn it
into a product with maximum value. We then proceed to propose sales to alimited group of customers.
■ While making ingenious efforts towards commodification and procurement,
direct sales to our customers also increased. As a result, profit margin
maintains at a high level.
■ Percentage of direct sales to our customers increased from 37.5% to 43.3%.
■ The average business period for selling the 30 properties is 310 days (except
for middle-term revitalization projects).
■ The stocks of revitalization property at the end of FY 2017 are 44 buildings(6 ofwhich are hotel business related and 5 of which are overseas business).
Properties worth is 36.1 billion yen (7.2 billion of which is hotel business and2.8 billion yen of which is overseas business).
※ Other than above, there are also 18 buildings for revitalization business worth 13.1 billion
yen which are procured and contracted at the end of April.
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

(¥ million)

9

9,502

8,000

10%

6,831
4,879

0%

0
2015/3

2016/32017/3(Note1) “Segment income” is calculated by subtracting various expenses ofrespective businesses from gross profit on sales. Various expenses
include interest paid, sales commission and goodwill amortization, etc.
(Note2) Land procurement and development cases are also included in theinventory of revitalization business.

Sun Frontier Fudousan Co., Ltd.

Performance ofRental Building Business
FY Ended
Mar 31, 2016

FY Ended
Mar 31, 2017

Sales

2,144

1,717

Segment
income1,096

883(¥ million)

Profit margin

51.1%

51.4%

Increase/decrease(¥ million)(19.9%) 2,500(19.4%)

2,000

80%

1,839
1,717

1,500

1,000

53.7%

51.1%
987

51.4%

60%

1,096
883

40%

500

20%

0

0%
2015/3Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

100%

2,144

+0.3％p Because medium-sized buildings operated overmedium and long-term were sold in the 1stquarter of FY2017, both sales and profits
decreased.

Sales
Segment Income
Profit Margin

10

2016/32017/3

Sun Frontier Fudousan Co., Ltd.

Performance ofBrokerage Business
FY Ended
Mar 31, 2016

FY Ended
Mar 31, 2017

Sales

1,536

1,314

(14.5%)

Segment
income

1,312

1,082

(17.5%)

Profit margin85.4%(¥ million)

82.4%

Increase/decrease

Sales
Segment Profit
Profit Margin(¥ million)(3.1%p)

2,000

84.6%

1,239

< Rental brokerage>■ Focusing on the 5 wards of central Tokyo, with the strength provided
by rental brokerage based on community sales, we put our efforts
into “problem resolution from the view of customers”. As a result,the synergistic effect with other departments become higher andboth sales and profits increased.
■ In the process of commercializing the revitalized property, The
planning ability from the tenant’s perspective become a driving force
for improvement in added value and early high occupancy rate. It
also contributed a lot for the profit of whole company.

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

11

82.4%

1,536

1,500

< Sales brokerage>■ Unable to recover from the downturn caused by the strong –yen trend
and the stagnation of the market in the first half of the year, both sales
1,000
and profits decreased compared to previous fiscal year.

85.4%

100%

1,312

75%
1,314
1,082

1,047

50%

500

25%

0

0%
2015/3

2016/32017/3

Sun Frontier Fudousan Co., Ltd.

Performance ofProperty Management Business(¥ million)

Sales
Segment
incomeProfit margin

FY Ended
Mar 31, 2016

FY Ended
Mar 31, 2017

Increase/
Decrease

1,483

1,707

+15.1%

675
45.5%

787
46.1%

+16.5%(¥ million)

2,000

1,600

276

92.9%

End of Mar. 2016

333

95.5%

End of Mar. 2017

362

96.6%

1,200

60%
44.9%

45.5%

46.1%
787

800

675

40%

595

400

20%

0

0%

<Building maintenance business>■ Growth of PM’s entrusted property affected the growth of BM’s
entrusted property and spot case, both sales and profit increasedby more than 20%.

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

80%

1,483
1,325

【Changes in the number of managing properties and occupancy rate】
No. of properties Occupancy rate
End of Mar. 2015

100%
1,707

+0.6%p<Property management business>■ Both sales and profit increased.
■ No. of managing properties : 362 (29 more properties, 8.7%
increase compared to the same period of the previous year)■ Occupancy rate: 96.6% (up by 1.1%)

Sales
Segment Income
Profit Margin

12

2015/3

2016/32017/3

Sun Frontier Fudousan Co., Ltd.

Performance of Other Business(Rent guarantee, construction solutions, space rental, hotel operation, etc.)
FY Ended
Mar 31, 2016

FY Ended
Mar 31, 2017

Sales

770

2,003

Segment
income329

853+159.0%

42.7%

42.6%

(0.2%p)(¥ million)

Profit margin

Increase/decrease(¥ million)+160.0% 2500

< Rent guarantee business>■ By holding seminars for building owners and cooperating companies andendeavoring in quick risk assessment for guarantee, the guarantee system got
spread.. Therefore, sales increased by 25% and profits increased by 36%.

2,003

80%

1500

1000

<Space Rental Business>■ Users are increasing steadily based on repeaters and referrals.
Both sales and profits increased remarkably.
(In FY Ended March, 2017, sales were 410 million yen, segment income
was 126 million yen.)

500

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

100%

2000

<Construction solution business>■ As a result of specializing in the commodification of revitalized buildings,
internal transaction increased greatly. As external matters decreased
accordingly, sales decreased but profits increased.

< Hotel Operations>■ Occupancy rate of “SPRINGSUNNY Hotel Nagoya Tokoname”
remains at a high level of about 95% and average daily rate isimproving remarkably as well. Both sales and profit increased
greatly.
■ From January, the sales and profits of “Sky Court Hotel Co., Ltd. ”
were also added. Demonstrated a favorable trend(FY Ended March, 2017 sales were 920 million yen, segment income was
178 million yen.)

Sales
Segment Income
Profit Margin

60%
38.9%

42.7%

897

853

770

349

42.6%

20%

329

0

0%
2015/313

40%

2016/32017/3

Sun Frontier Fudousan Co., Ltd.

Financial Forecast
for the Fiscal Year Ending March, 2018

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

14

Sun Frontier Fudousan Co., Ltd.

Financial Result Forecast
for Fiscal Year Ending March, 2018
FY2017/3

Forecast of
FY2018/3

Rate of
Change40,39450,000+23.8%（1）Real Estate Revitalization Business

35,63643,716+22.7%

Replanning Business（Including Hotel Development）

33,63541,400+23.1%

Rental Building Business

1,868

2,171

+16.2%（2）Real Estate Service Business

3,042

3,060

+0.6%

（3）Operation Business

1,330

2,530

+90.1%（4）Other Businesses

689

1,095

+58.8%

Adjustment

(304)

(401)

－

Gross Profit

13,70016,200+18.2%（1）Real Estate Revitalization Business

11,027

13,006+17.9%

Replanning Business Part
（Including Hotel Development）

10,012

11,900+18.9%

Rental Building Business Part

971

1,071

+10.3%（2）Real Estate Service Business

1,913

2,170

+13.4%（3）Operation Business

221

418

+89.3%（4）Other Businesses

539

605

+12.0%SGA Expenses

4,319

5,700

+32.0%

Operating income

Net income

9,380
8,894
6,452

10,50010,0007,000+11.9％+12.4％+8.5％

Substantial incurred tax rate

27.45％－－Cash Dividends per Share (Yen)

30.00

32.00

+6.7％

Sales

Ordinary income

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

15

・Office Building Business in Tokyo is our corebusiness.
・In this core business, we are developing therevitalization business where the power of whole
company is mobilized.
・Furthermore, we are enhancing the stock-typebusiness, working toward a stable profit structure.

・ Replanning Gross Profit Ratio is projected as
below at the assumption that the situation ofmarket will remain the same and the rent
remains stable.
FY Ended March, 2016: 30.1％
FY Ended March, 2017：29.8％⇒FY Ending March, 2018: 28.7％
・ 900 million yen of sales commission is
projected(In FY Ended March, 2017, it was 360 million yen )・ About 60 staff will be increased.

・ As the tax loss carryforward was set off by
expanded profit, , tax burden ratio become
an efficient rate (30.86%).
・Dividend increased by 2 yen, 32 yen is
projected.
Sun Frontier Fudousan Co., Ltd.

About the Change of the Report Segment
For the vision of stable growth of medium and long term,
we are enhancing the stock-type business of real estate service business and operation.
From the FY Ending March, 2018, we changed the division and name of the reporting segments.

Segments before Change（FY 2017/3）
Replanning

Replanning
Hotel Development

Real Estate Securitization
Rental Building
Overseas

Property# Management
Business

Sales Brokerage
Rental Brokerage
Property
Management

Property Management

Sublease

Building MaintenanceHotel Development
Real Estate Securitization
Rental Building
Sublease

New
Real Estate
Service Business

Sales Brokerage
Rental Brokerage
Property Management

Building MaintenanceNew
Operation Business

Rent Guarantee

Others※Real Estate
Revitalization
Business

Hotel Operation
Space Rental

Construction Solutions

Rent Guarantee

Hotel Operation

Construction Solutions

Space Rental

Others※Introduction Fee

Stock-type Business

Brokerage
Business

Replanning

Reporting Segments

Reporting Segments

Real Estate
Revitalization
Business

Segments after Change（FY 2018/3 ~）Introduction Fee
Lease Charge Income

Lease Charge Income

Overseas

OthersOthers※The "others” segment is the business segment not included in the report.
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

16

Sun Frontier Fudousan Co., Ltd.

Basic Policy Concerning Profit Distribution
Our company has a fundamental policy of returning profits to shareholders on a long-term and stable basis, while
securing the investment capital for hotel business and overseas business to take on challenges aggressively for thegrowth of the future. At the same time, in consideration of the stabilization and enhancement of finance, we endeavor tocontribute to the benefit of shareholders comprehensively.
FY2013/3

FY2014/3

FY2015/3

FY2016/3

FY2017/3

FY2018/3(Forecast)

Net Income per Share

66.50 yen※

94.03 yen

118.18 yen

190.78 yen

150.92 yen

163.72 yen

Dividend per Share

8.50 yen※

13.50 yen

16.50 yen

25.00 yen

30.00 yen

32.00 yen

Dividend Payout Ratio

12.8%

14.4%

14.0%

13.1%

19.9%

19.5%

（1株当たり配当金）
Dividend Payout Ratio for Reference（Converted by effective tax rate）

22.1%

23.3%

19.7%

19.3%

20.9%

－

※ Since the company conducted a 1:100 stock split of common stocks on October 1, 2013, 1/100 is used to calculate dividend per share for ease of reference.

Trend of Net Income and Dividend per Share（Dividend per Share）

40 yenDividend per Share
30 yen190.78 yen

Net Income per Share

25.0 yen

94.03 yen

66.50 yen
10 yen13.5 yen

240 yen

32.0 yen（Forecast）

118.18 yen

20 yen30.0 yen（Income per Share）

150.92 yen

180 yen163.72 yen

FY2013/3

150 yen
120 yen
90 yen16.5 yen

60 yen8.5 yen0 yen

210 yen

30 yenFY2014/3

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

FY2015/3

FY2016/3

17

FY2017/3

FY2018/3

0 yen（Forecast）

Sun Frontier Fudousan Co., Ltd.

Future Developments
1) Business environment2) Business policy and model3) Growth strategies

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

18

Sun Frontier Fudousan Co., Ltd.

Business Environment
The global
economycontinues to growmoderately, but
the uncertainty
regarding its
future isincreasing.

The improvement of U.S. share prices and employment is driving the economic growth concerning advanced countries, while theeconomy of emerging nations is showing signs of recovery from decelerating economy which is concerning. Global economy
focused on advanced countries is expected to keep on growing at a moderate pace continuously.

Financingenvironment
remainsfavorable.

As BOJ is continuing the monetary easing policy and long-term interest rate is declining, attitudes towards lending to realestate businesses are still positive while some financial institutions are showing a negative stance toward apartment loans.

Due to the emergence of populism and the introverted national particularism, there is an uncertainty for the economic policies of
the United States, uneasiness about finance for the Brexit and slowdown of emerging countries’ economic growth rate, theheightening of geopolitical risks, etc. The outlook for a global recovery is getting much more uncertain.

Aiming at increasing the country's nominal GDP to 600 trillion in 2020, the government of Japan put together all the growthstrategies up to now to enhance economy. Through working-style reform, active social participation by women and relaxation offinancing regulation, the government is promoting the Dynamic Engagement of All Citizens and strengthening the virtuous cycleof growth and allocation.

Against the background of the graying of society and a good financing environment, for small and medium-sized buildings incentral Tokyo which our company is focusing on, the dynamism of purchase demand is still growing as there are high needs ofinheritance countermeasures and asset management.
Working towards the realization of Japan as a tourism nation, the government is working on the amendment of Inns and Hotels
Act. The number of foreign tourists to Japan reached about 24 million and 30 thousand in 2016, lack of accommodation
became an urgent issue. Trends of tourists to Japan is shifting from very inexpensive tour travelers to individual travelers. The
consumption demand is also changing from “shopping” to “experiencing”.

Demandsupply balancein central officebuilding market
is tight.

Supported by positive business performance, needs for offices in central Tokyo is high and stable. The average vacancy
rate in five wards of central Tokyo remained at a low level, but there will be a big supply of newly-built buildings in 2018.
Therefore there is only a little increase in average rent.
Focusing on office buildings in good locations in central Tokyo, the demand for office relocation in the information andcommunication industry as well as the human resource and real estate businesses is growing. Thus negotiation for raising
rent of tenant recruitment and contract renewal is increasing. However, room for lowering the cap rate of internal realestate is very small, discretion towards investment decisions is required.

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

19

Sun Frontier Fudousan Co., Ltd.

Changes in office Rent and Vacancy Ratein 5 Wards of Central Tokyo
Average rent [yen/tsubo]

Average vacancy rate [%]Average rent in Mar.

18,730 yen

increased forconsecutive 39 months(+15.6% fromthe bottom value)

（％）

（円）

Peak of vacancy rate
Jun. 2012
Vacancy rate: 9.43%

Peak of vacancy rate
Aug. 2003
Vacancy rate: 8.57%

Vacancy rate in Mar.

3.60%

Bottom of average
rentOct. 2004
17,526 yen

Improved 5.83% during thelast 4 years and 9 months

Bottom vacancy rate
Nov. 2007
Vacancy rate: 2.49%

Bottom average
rentDec. 201316,207 yen※Source：Created based on Miki Shoji’s “Office Report.” Graph reflects office buildings within the 5 wards of Tokyo of which have a standard floor area of
100 tsubo (roughly 331 square meters) or larger.
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

20

Sun Frontier Fudousan Co., Ltd.

Average rent

Vacancy rate

Peak ofaverage rent
Aug. 2008
22,901 yen

2) Business Policy and Model“Not for profit, but for trust.”
We change, not you. We resolve difficulties fromour customers’ point of view.

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

21

Sun Frontier Fudousan Co., Ltd.

Sun Frontier’s Vision and Policies
VisionAs professionals in real estate utilization, our goal is to be
the company that customers love and choose the most in
the world.

Customers

Building owners, asset holders, and the wealthy

Core
Business

Real estate revitalization and utilization

Policies

Strategies

To focus on people rather than property
Solve any real estate related difficulties from the perspecitve of
our customers
CentralTokyo

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

OfficeStrength

Tenant Finding
Capability

Real Estate
Revitalization
Capability

Operation Capability
22

Sun Frontier Fudousan Co., Ltd.

Business Introduction
Office Buildings
Real Estate Revitalization Business

Real Estate Services Business
Rental Brokerage Sales Brokerage
Property Management
Building Maintenance
Rent Guarantee
Construction Solutions
Rental Conference Room and Small
OfficeRe-planning
Building Rental
Real Estate Securitization

Hotel

Overseas

Hotel Possession and Operation
Development, Revitalization and Sales
M&A for Hotel and Operating Company

Hotel and Housing Developments in Vietnam
Urban Housing and Serviced Apartment inIndonesia
Attract investment from Taiwan to Tokyo

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

23

Sun Frontier Fudousan Co., Ltd.

Real Estate Revitalization and the Cycle of Added Value① In vertical real estate utilization business, we survey and solve difficulties by listening to customers’ concerns.
② In horizontal real estate revitalization business, first, we put together the know-how and customer needs
learned from the process above. Then we apply this knowledge to renovate used buildings we purchased and transformthem into high value-added products. After this, we sell the products to customers.

Fund –Raising Consulting

Asset Consulting

Rent Guarantee

Construction Planning

Building Management

Rental Brokerage

Sales Brokerage

Acquisition of
Property②

Real estate
revitalization

Chain Value-added Products① Real Estate Utilization

To research how to solve customers’ troubles at the site,and offer solutions

Customers (Building owners, asset owners, and wealthy people)
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

24

Sun Frontier Fudousan Co., Ltd.

Participative Management of All Employees Based on Core Principles
Change and Challenge ～Sun Frontier Management 3 Core Contents～
1. Mental management based on our ethos and philosophy• We have upheld altruism since the establishment of ourcompany.
• By cleaning our office and reading the philosophy booklet
every morning we become a group that shares the value ofmaking others happiness our own happiness.
• Aiming at offering much greater happiness to customers, we
contribute to the actualization of a rich society.
2. Management among all employees’ participation based on theaccounting for each section• By developing and diffusing the accounting system for eachdivision (Amoeba management), we enhance employees'
profit awareness and promote the business operation
involving all employees with the management perspective.
3. Business management from the customers’ viewpoint• We listen to customers’ requests carefully, handle and solve
even minor troubles, without rushing anyone.
• We change ourselves to meet our customers’ needs, making
efforts to challenge new things, create and advance.
• Through internal collaboration of different sections, we createhigh added values that are linked to one another.

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

25

Businessmanagement
based on theperspective ofcustomers

Mentalmanagement
based on our
ethos andphilosophy

Management among
all employees’
participation based on
the accounting foreach section

Employees play major roles.
Resonant business administration.
Sun Frontier Fudousan Co., Ltd.

3 main functions of branch office net
focusing on central Tokyo

1. Specializing in central Tokyo
10 footholds in the wards of Chiyoda, Chuo, Minato,
Shinjuku, Shibuya, and Yokohama City. Witha rental team of 72 members and a management
team of 79 members*, we draw out the needs from
customers and excel at finding tenants for officebuildings by utilizing our familiarity with local
areas. (*includes temporary and part-time workers)
2. Building owners' customer service
We solve various problems of customers.
We not only do tenant recruitment, but also listen
to customers and help them with internal
cooperation.

3. Promotion of “Efficient building
business application”
To meet the rapid change of environment, westarted building revitalization business. As
additional loans from financial institutions isconditional on company creditworthiness andstable profitability of property, we lease the wholebuilding and sublease it to other tenants and act asan agent for various services from renewal
construction to building operation. With thepowerful trinity of owners, banks and ourcompany, we revitalize the building.
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Key Areas

Ueno
Akihabara

Ikebukuro
Kudan

Kojimachi

Nihonbashi

AoyamaGinza
Shimbashi

Akasaka

Ebisu

Hamamatsu-choNew

GotandaYokohama

Tokyo

Toranomon

Shibuya26

HQ in
HibiyaImperial
PalaceShinjuku

Kanda(

ShinagawaIndicates the main target areas of our branches.)

Sun Frontier Fudousan Co., Ltd.

Area of Property Management We are Entrustedwith and Number of Clients is Increasing Steadily
Changes in Occupancy Rate and Area under Our Property Management
100％

96.3％

700,000(As of Apr. 2017)

About 75% of our managing properties aged 20 years or above.
97.23％

Occupancy rate of managing properties(㎡)

700,516600,000

500,000

95％
400,000

Entrusted
area

300,000

95.6%

90％

(As of Apr. 2017)

200,000

100,000

Average occupancy rate of middlesized buildings in 23 wards in Tokyo
85％

0

'08/1

'08/7

'09/1

'09/7

'10/1

'10/7

'11/1

'11/7

'12/1

'12/7

'13/1

'13/7

'14/1

※Source: the occupancy rate of middle‐sized buildings in 23 wards in Tokyo
was produced by our company based on "Market Data Rent and Vacancy" of Sanko Estate Co., Ltd.

'14/7

'15/1

'15/7

'16/1

'16/7

'17/1

Note: Occupancy rate of buildings under management of Property Management Section
In the 4th quarter of fiscal year 2014, as important tenants moved to larger offices, some units become vacant. Thus occupancy
rate declined temporarily at the end of the term. Later, tenants have been moving in steadily, occupancy rate got recovered.
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

27

Sun Frontier Fudousan Co., Ltd.

Our strength is Building operation“One price for one building" products of optimal location in central Tokyo.
We draw out buildings’ market value and real estate value which haven’t been noticed yet withexcellent quality and attractive features from continuous research on customer’s perspective,then sell buildings to asset holders and wealthy people at an appropriate price.
After the sale, the heart-warming follow up will lead to deep trust and profit opportunities forstock business.

Sales Brokerage

AssetsConsulting

RenewalConstruction

Plan & Design

Rental Guarantee

Building
Maintenance

Building
Management &Operation

Rental Brokerage

Sale of revitalized
property

Menu of after-sale services

Revitalization Business and Rental Building Operation Business
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

28

Sun Frontier Fudousan Co., Ltd.

Revitalization Case ①～”licensed day care center” building in Ningyocho～

An Office Building Was Converted intoa Societally Important Day Care Center
Appearance After

Interior Before

Interior After

Warm floor for babies less than 1-year old
is made of lots of Hinoki wood.
Good location near 3 stations and 4 lines.
Entrance Before

Interior After

Entrance After【Property outline】

Location: Tomizawa-cho, Nihonbashi, Chuo-ku, Tokyo
Structure: Steel reinforced concrete, 4 stories above
ground and 1 basement storey.
Date of completion: 1986
Purposes of use: Office, garage, warehouseparking lot.
Site area: 306.94 m2 (92.84 tsubo)
Floor space: 852.46 m2 (257.86 tsubo)

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

29

1. Purchased a head office building.
2. From the local features and social
needs, we set the projectsignificance as “Rehabilitation of
Women and Decline in the
Number of Children on the Waiting
List.” Then we invited a tenant,a licensed day care center into thebuilding.
3. Converted the office building intoa day care center.
4. Utilized the governmental subsidy
on the facilities maintenance andoperation.
5. As a property which has a 30-year
fixed-term lease tenant and could
contribute to society, we sold it towealthy people.
Sun Frontier Fudousan Co., Ltd.

Revitalization Case ②

Pre-setup Office to Meet Tenant Needs.
For our pre-setup office, we install interior decoration before tenant’s moving in by determining their needs.
Relying on the local features and our familiarity with the area, we make the best use of property for a highquality project.
＜Case①＞One profitablebuilding in Nishi-Shinbashi

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

＜Case②＞One profitablebuilding in Akihabara

30＜Case③＞One profitablebuilding in Ginza

Sun Frontier Fudousan Co., Ltd.

Important News about Our Active Efforts
in the FY Ended March, 2017
Year

4/1
4/25

2016

CSR

Overseas
Business

9/29

Hotel Business

10/7

Expansion of
Current
Business

11/25

CSR

12/1

Overseas
Business

12/1

Ｍ＆Ａ

12/15

Others

1/5

Overseas
Business

3/1
4/3

Offered a donated course in the Kyoto University Graduate School ofManagement.

Hotel
Opened first domestic hotel “Sunny Hotel Nagoya Tokoname” (194 rooms).
Business

8/1

2/1
2017

News

MM/DD Category

Expansion of
Current
Business
Expansion of
Current
Business
Expansion of
Current
Business

4/28

Hotel Business

5/8

Overseas
Business

While expanding current
business steadily, we also
made progress as planned in
growth strategy.

Opened first overseas hotel “The Blossom City”(45 rooms) in Da Nang.
Acquired land at Shijo Kawaramachi as noncurrent assets.
Established subsidiary “Sun Frontier Community Arrangement Co., Ltd. ” withthe purpose of planning and management business for hostels andguesthouses.
Provided sponsorship to a Japanese Language Course in the University of
Danang, Vietnam
Opened first serviced apartment “Kyo Serviced Apartment”(90 rooms) inJakarta.
Acquired 100% issued shares of Sky Court Hotel Co., Ltd. , 4 hotels (564 rooms)
of it are under our management now.
Were selected as one of the issues to compose the index “JPX-Nikkei Mid andSmall Cap Index” .
Started construction of urban detached house “CASA EMERALD GANDARIA” (9houses) in Jakarta.
Opened “Planetyze Hostel” for foreign visitors to Japan.

2016.10.21 Mr. Horiguchi
giving speech at Kyoto University

2016.11.25 Signing Ceremonyat Danang University

Opened rental offices “Vision Center Tamachi” and ”Vision Center Yokohama.”
Opened new branch Gotanda Branch.

Opened first hotel of orignal hotel brand “Hiyori Hotels & Resorts”, “Hiyori Hotel
Maihama” (80 rooms).
Started construction of condominium of “HIYORI Garden Tower.”

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

31

2017.4.3 Members of
New Gotanda Branch

Sun Frontier Fudousan Co., Ltd.

3) Growth Strategies
Establish the base of flow
and increase stocks～Standing on our two feet, “flow” and “stocks”～
・・・New information for “Stock Type Business”

・・・New information for “Flow Type Business”

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

32

Sun Frontier Fudousan Co., Ltd.

Four-pronged Strategy for Future Growth
1) Existing
Business Expansion

Development and Expansion of
Office Business

Inbound
City-tourism Hotel

2) Hotel Business3) M&A

Stock Acquisition,

Capital Participation, Business AllianceIndonesia & Vietnam

4) Overseas
Business Expansion
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

33

Sun Frontier Fudousan Co., Ltd.

With the strength of “Real Estate Revitalization andUtilization”, we enhance the stock type business bycommunicating with customers closely.

■Replanning Business■Hotel Development Business■City-type Condominium
Business(Overseas)

Investment Business

Revitalization & Development of Real Estate
which Creates the Value of People and Society

Flow-type Business

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

■Rental Building Business■Hotel Operation Business■Space Rental Business■Sublease Business

Attentive Building Service Agency
Fee Business■Sales Brokerage Business■Rental Brokerage Business■Construction Solution Business－To bring smiles to our customers’ faces
and touch their hearts－

Stock-type Business

Customer Problem Resolution Business－Close Advisor－

Heart-warming Operation

34－Competitive Building Management－■Property Management Business■Building Maintenance Business■Rent Guarantee Business■Lease Business

Sun Frontier Fudousan Co., Ltd.

Original Hotel Brand

Launch of New Brand “HIYORI HOTELS & RESORTS”
The original hotel brand “HIYORI HOTELS & RESORTS” is developed and managed by our company. Targeting at
middle and upper classes as inbound city-tourism hotels under this brand, we are aiming at creating heartwarming hotels. Hotels under this brand will provide Japanese style hospitality “Omotenashi” and customers allover the world can enjoy the stay at the hotel peacefully and pleasantly. Through our service, customers canalso experience the atmosphere and culture which he/she could only experience in a very local place. The firsthotel under this brand “Hiyori Hotel Maihama” opened on April 28, 2017.
Pillow Bar

First Original Brand Hotel

Lobby＜「Logo of HIYORI HOTELS & RESORTS＞”Hiyori Hotel Maihama”
Ryukyu Tatami
Twin Room

Newly Opened
on April 28, 2017
Breakfast BuffetHigh Class Amenity
Family Room

Entrance

Appearance

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

35

The brand logo is designed with a motifof a Japanese flower to express theheartofJapanese
hospitality,“Omotenashi”. The simple and modern
image of traditional Japanese flower
represents the fusion of tradition andinnovativeness of “HIYORI HOTEL”. The
flower motif will be changed according
to the grade of hotel, and HIYORI
HOTELS & RESORTS is aiming at
becoming a comprehensive hotel brandthat will cover a wide variety of grades.

Sun Frontier Fudousan Co., Ltd.

Concept and Development of Hotel Business－Inbound City-tourism Hotel－“Heart-warming
Hotel”
テーマ“心温かいホテル”＜List of Domestic Hotel＞
StatusOpen（Plan）

Brand
―

Hotel Name No. of
Location Rooms

１. Hotel which grows continuously with the staffs’ attention to thecustomer’s viewpoint.
２. Hotel which cherishes the local culture and history, and canreclaim its appeal.
３. Hotel where one can enjoy high quality and exclusive service.

Rented―In operation

Apr. 2016

In operation―

Original

Kawasaki200＜Domestic Hotel＞

In operation―

Original

Koiwa

105

In operation―

Original

Narita100

In operation―

Original

Hakata159

In operation

Apr. 2017

Original

Maihama80

Underconstruction

Jul. 2017

Other
Company

Kofu

190

In planApr. 2018

Original

Takayama

80

In plan

1st half of 2018

Original

In plan

1st half of 2018

Original

In plan

1st half of 2018 Undecided Narita Airport

In plan

2nd half of 2018

Original

In plan

1st half of 2019

Original

988
190
924

In operation
Under construction
In plan & preparation

Total No. of Rooms 2,102

Sado
Iwaki

Kofu
Takayama

Maihama

Shijo Kawaramachi
Kyoto

Narita Airport

Honmachi Osaka

Ginza-higashi
HakataCollaborative Tokoname

NaritaKoiwa

Tokoname

Kawasaki（Note）Schedule & scale are still being planned, may change in future.
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

36

Iwaki

150

194

Ginza-higashi 137
Sado

115
210

Honmachi
193
Osaka
Shijo
Kawaramachi 189
Kyoto

Together with collaborative brand “SPRINGSUNNY”, in main cities
and sightseeing cities, our own original brand hotel “HIYORI
HOTELS & RESORTS” is also in progress.

Collaborative
brand

Original
brand

36
36

Sun Frontier Fudousan Co., Ltd.

Acquired Hotel Management Company“Sky Court Hotel Co., Ltd.” through M&A.
On December 1, 2016, our company acquired 100% issued shares of Sky Court Hotel Co., Ltd. which isoperating 4 hotels mainly located in Tokyo and adjacent prefectures. This acquisition was conducted
through our subsidiary, Sun Frontier Hotel Management Inc. The location and grade of each hotel is very
suitable for accommodating inbound tourists and individual foreign tourists. From now on, we will try ourbest to boost customers’ satisfaction by increasing the added value of each hotel. Also, we will strive toimprove the profitability and make contributions for the growth and development of our company.

Introduction of 4 Hotels
Hotel Sky Court Kawasaki■Location：Kawasaki-shi, Kanagawa-ken■Rooms： 200■Site area： 1,175.09 m 2（355.46 tsubo）■Floor space： 4,463.67 m 2（1350.26 tsubo）

Hotel Sky Court Koiwa

Hotel Sky Court Narita■Location：Edogawa-ku, Tokyo■Rooms： 105■ Site area： 717.34 m 2（216.99 tsubo）■ Floor space： 2,759.01 m 2（834.60 tsubo）■Location：Narita-shi, Chiba-ken■Rooms：100■ Site area： 10.734.70 m 2（3,247.25 tsubo）■ Floor space： 2,137.66 m2（646.64 tsubo）

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

37

4 buildings 564 rooms
in total.
Operation Started
in December 2016

Hotel Sky Court Hakata■Location：Fukuoka-shi, Fukuoka-ken■Rooms：159■ Site area： 808.09 m 2（244.44 tsubo）■ Floor space： 3,383.79 m 2（1,023.59 tsubo）

Sun Frontier Fudousan Co., Ltd.

Expansion of existing business～Rental Conference Room and Rental Office business～
Two branches will be newly opened, increasing the total number to 6.
Rental Office (Vision Center)

Rental Conference Room （Vision Center)
Vision Center Tokyo

Vision Center Tamachi

Vision Office Kanda

Vision Office Shinjuku

Vision Office Kanda
ANNEX

Newly opened
on March 1, 2017

Vision Center Yokohama

Newly opened
on March 1, 2017

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

After “Vision Center Tokyo” started in April 2015, it became
profitable in just half a year and customers are increasing steadily.
Under the introduction from the leasing section, subsequentcases in good locations are also progressing well.
“Vision Center Tamachi” and “Vision Center Yokohama” opened in
March, 2017 as the 5 th and 6 th branches.
In addition, 3 other branches are also under planning.

38

Sun Frontier Fudousan Co., Ltd.

Expansion of existing business

Guest House for Foreign Tourists to Japan“Planetyze Hostel” was newly opened
Appearance

Newly opened on
February 13, 2017

Planetyze Hostel【Overview 】
A d d r e s s ：2-24-9 Higashi-nihonbashi,
Chuo-ku, Tokyo, JapanS t r u c t u r e ：Steel-reinforced building,
10 stories above ground
Year of Completion ：1987 (30 years)

B u i l d i n g U s e ：Budget Hotel (Guest House)
S i t eA r e a ：109.45 m2 (33.10 tsubo)F l o o r S p a c e ：784.65 m2 (237.35 tsubo)C o m p o s i t i o n ：Floor 1 reception desk & cafe & bar

Dormitory

Hostel converted from office building

Community Space at entrance

Four-minute walk from Higashi Nihonbashi Station (Toei Asakusa Line)(Along the Yasukuni-dori Street)“Planetyze Hostel,” an accommodation facility for foreign visitors
to Japan, opened on February 13, 2017 in Higashi-nihonbashi,
Chuo-ku, Tokyo. The hostel is run through means of joint
management with Travelience Inc. We have formed an alliancewith Travelience Inc. which is providing an online guidebook aimed
at westerner tourists.
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

39

Floor 2 office
Floor 3 ～ Floor 10 accommodation
C a p a c i t y ：104
R o o m T y p e ：Twin Room & Double Room &Dormitory Type Room with Bunk Bed
A m e n i t i e s ：Free Wi-Fi in the entire building, cafe
& bar, coin laundry, laundry drier
L a n g u a g e ：Japanese, English, French, Chinese,
Portuguese and Thai language.

【Operating System of the Hostel】
O w n e r : Sun Frontier Fudousan Co., Ltd
C o n s i g n o r : Sun Frontier Community Arrangement
Co., Ltd. （Wholly owned subsidiary.）

C o n s i g n e e : Travelience Inc.

Sun Frontier Fudousan Co., Ltd.

Overseas expansion - Two directions -We will develop new investment
products, hone our operation ability
to operate hotels, and play a role inreceiving investments from wealthypeople in Asia.

Produced by the Cartographic Research Lab University of Alabama
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

40

Sun Frontier Fudousan Co., Ltd.

Overseas Development

Concept and Development of Outbound Business
Concept "To Realize the Happiness of Everyone in Asia with People who Share the Same Values.”
Developing our outbound business in rapidly-growing cities in South-East Asia and contributing to the happiness and prosperity of
the local people there.

Projects in Vietnam
Interior decoration of first overseas hotel“The Blossom City”

StatusOpen

Location /Use

Scale

In operation

Aug. 2016

Danang Hotel“The Blossom City”

45 rooms

Under
construction

1st half of
2019

DanangCondominium
Residence“Hiyori Garden
Tower”

306 houses

In planUndecided

Danangcommercial complex

Hotel・SA156 rooms+Residence 229
houses+Shop

Opened on
Aug, 2016

Projects in Indonesia
StatusOpen

Location /Use

Scale

All sold

Jakartadetached house

5 housesUnder
construction

Sep. 2017

Jakartadetached house“CASA EMERALDGANDARIA”

9 houses

In operation―

Jakarta Residence+SA“Kyo Serviced
Apartment”

90 rooms

Bath RoomNight View

(Note）”SA”･･･Serviced apartment. Fully furnished apartment available for monthly
stay, providing all the hotel-like service.
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

41

Sun Frontier Fudousan Co., Ltd.

Danang, Vietnam, Project No.2

~ High-rise urban apartment house project ~Danang was chosen to be the host of 2017 Asia-Pacific Economic Cooperation (APEC) summit and is gaining worldwide
attention. We established “Sun Frontier Vietnam” as an overseas subsidiary in December, 2015. Beside the first overseas hotel“The Blossom City” opened on July, 2016, we are preparing for the high-rise apartment project as our 2nd project. Project No.3
is also in progress.
Bldg. No. 2
High-rise apartment building「HIYORI Garden Tower」
Effect Drawing(Appearance)
High-rise
condominiumof 28 floors

Effect Drawing （Interior）

Construction for306 flats
will start in March, 2017

March 10, 2017 Groundbreaking
Ceremony
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

42

Direct flights from Narita Airport toDanang went into service.
14 direct flights per day from China.
8 direct flights per day from Korea.
Danang is an area that many
companies want to help develop,
while gathering worldwide attention
as a fascinating resort area.
It is only a 10-minute drive from
Danang Airport to the city center, anda 15-minute drive to a beautiful
beach where there are many hotels.
Located at an optimal place with very
convenient access.

Sun Frontier Fudousan Co., Ltd.

Jakarta, Indonesia~ Urban Housing & Serviced Apartment ~We established “Sun Frontier Indonesia” as an overseas subsidiary.
We are progressing projects in central Jakarta.
Bldg. No.3 Serviced Apartment“Kyo Serviced Apartment”

Bldg. No.2 City Type Ready-built House“CASA EMERALD GANDARIA”
Sep. 2017 ～9 houses will becompleted successively

Appearance

Internal pool

Operation started
on Dec. 2016

Effect Drawing （Appearance）
Effect Drawing（Interior）＜Logo Mark＞

Serviced Apartment with 90 rooms

完成予想パース
全戸プール完備
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

43

Sun Frontier Fudousan Co., Ltd.

（Reference）About Our Core Business

Revitalization BusinessWe purchase the building with a low occupancy rate that needs renovation, then we plan and design the facade andentrance, we renovate the interior well as pre-setup office, we set green roof garden on the roof, not to mention the facility
modification such as air conditioner, water supply equipment and elevator, etc.. By realizing the optimal utility to match theneeds of people and society, we sell the properties to investors and the wealthy.

1 billion yen

The average business period of this financial year is about 10 months④
Facilities・Interior
Entrance・Common Elements
Exterior Wall・Planting, etc.

0.5 billion yen①

Cost
0.5 billion yen
rent income
25 million yen

0.25 billion yen③

Max Occ② Revitalization Construction Cost

0.25 billion yen
Cost

Return5%

0.5 billion yen③ Rent Income

Return5%

50 million yen

Occupancy Rate100％

Occupancy rate 50％

Renovate design, specification and facilities
To increase the value by leasing activities
which are based on good sense of local market.

20-Year-Old Building
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Gross Income

44

Sun Frontier Fudousan Co., Ltd.

（Reference）About Hotel Business

Trends in the number of foreign visitors to Japan by country
The number of foreign visitors to Japan in 2016 was 24,030,000 (year-on-year rate +21.8%).
Considering the ratio of total visitors to overall population, the number of Chinese visitors to Japan is
expected to increase more. We will continue to expand our business by developing inbound city-tourism
hotels targeting visitors to Japan.
Trends in the number of foreign visitors to Japan by country
Changes in the number and consumptionof Foreign Visitors to Japan（Ten thousand People）（Billion Yen）

2,403

4,000
3,500

1,973

2,500

3,747

1,341

2,000

1,036

3,477

836

1,500

2,500

2,000

3,000

1,500

1,000

622
2,027

1,000

500

813

1,084

500

1,416

Nation2016

Increase
Total visitors
Population
ratio torate
（million） population
（％）

1

China

4,993,689 6,372,948+27.62

1,378.98

0.55%

2

Korea

4,002,095 5,090,302+27.1950.82

12.02%

3

Taiwan3,677,075 4,167,504+13.3423.55

21.23%

4 Hong Kong

1,524,292 1,839,189+20.667.36

30.00%

5USA

1,033,258 1,242,702+20.27323.980.46%

6

Thailand796,731

901,458+13.14

68.98

1.57%

7

Australia

376,075

445,237+18.39

24.36

2.19%

8

Malaysia

305,447

394,262+29.08

31.72

1.49%

9 Singapore

308,783

361,804+17.17

5.59

7.77%

10 Philippines

268,361

347,860+29.62104.200.40%

19,737,409 24,039,053+21.797,206.31

0.40%

Total

0

2015

0
2011

2012

2013

2014

2015

※Source：Created from documents released fromJapan National Tourist Organization and Tourism Agency.
Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

2016※Source: Created from documents released from Japan National Tourists Organization.
※Source: Population is calculated from IMF 「World Economic Outlook Databases」(Version April, 2015)45

Sun Frontier Fudousan Co., Ltd.

Company Overview
Name
Head Office
Established

Stock Listing
CapitalRepresentative
Employees
Average Age: Sun Frontier Fudousan Co., Ltd.
Toho Hibiya Building (Hibiya Chanter) 14F:
2-2, Yurakucho 1-chome, Chiyoda-ku, Tokyo 100-0006: April 8, 1999
: First Section of the Tokyo Stock Exchange
on February 26, 2007 (Stock code 8934): ¥8,387 million: President, Tomoaki Horiguchi
Full-time staff 352 Consolidated(605 including temporary and part-time staff): 31.8 (as of April 30, 2017)

Main Group
Companies

SF Building Support Inc.
Sun Frontier Real Estate Investment Advisors Inc.
: Yubi Inc.
Sun Frontier Fudousan Taiwan Co., Ltd.
Sun Frontier Hotel Management Inc.
Settlement Month : MarchBusinesses
1. Real Estate Revitalization Business

Replanning Business/ Rental Building Business

2. Real Estate Services Business

Rental Brokerage/ Property Management/ Building Maintenance/ Sales
Brokerage/
Construction Solution / Rent Guarantee

3.Hotel development and operation
Investment, development, operation

Copyright © 2017 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

46

Sun Frontier Fudousan Co., Ltd.

Disclaimer

Sun Frontier Fudousan Co., Ltd.

This reference material is intended for providing information, not for soliciting or promoting you topurchase a specific product. When you invest, please do so based on your own judgment andresponsibility. If you want to purchase the shares of our company, please contact securities companies.
The information included in this material may not follow the Financial Instruments and Exchange Act,
the Building Lots and Buildings Transaction Business Act, the regulations for the companies listed inTokyo Stock Exchange, etc.
This reference material mentions our future business performance, but it does not guarantee theperformance.
This reference material was produced carefully, but we do not guarantee the accuracy and certainty of

its contents.
In addition, the contents may be changed or deleted without notice.

We appreciate your understanding.

<Sun Frontier Fudousan IR Desk>
Phone: +81-3-5521-1551
URL: http://www.sunfrt.co.jp/en/
Mail: ir-contact@sunfrt.co.jp