Sun Frontier Fudousan Co., Ltd.

Financial Results for the Second Quarter of Fiscal YearEnding March 2022
We are aiming to be the real estate company of the world’s
most loved, trusted and selected by clients.

1) Overview of the 2Q Results of FY ending March 2022

1-102) Growth Strategy

11-233) Initiatives in the Fiscal Year under Review

24-364) Reference Materials

37-46

November 9, 2021

Securities Code :8934

Overview of the 2Q Results of FY Ending
March 2022
Net sales and profit grew significantly year-on-year and made steady progress against
the forecast.
(Unit: 1 million yen)
Results

Profit Margin

Year-on-Year

GrowthRate

Full-Year Forecast

Progression Rate

Net Sales

45,326-+13,16140.9%

76,00059.6%

Operating Profit

9,400

20.7%

+3,73365.9%

12,00078.3%

Ordinary Profit

9,285

20.5%

+3,901

72.5%

11,50080.7%

Profit*

5,862

12.9%

+2,402

69.4%

7,400

79.2%

* “Profit” represents net income attributable to shareholders of the parent company.

Performance Highlights
1) Large year-on-year increase in RP Business, driving the company-wide
performance2) Real Estate Service Business expanded to a level higher than before
COVID-19 pandemic• The number of units sold in RP Business was 14 (-1 year-on-year). Sales
and profit increased significantly compared with the same period of theprevious fiscal year partly due to the reaction from the previous year,
driving the company-wide performance. The segment profit margin
remained high (29.7%, +1.5% pt year-on-year).
• The Office Division is making a concerted effort in commercialization.
Completed and sold replanning products with high occupancy and highadded value. Maintained high quality even in COVID-19 pandemic andmade steady progress in sales.

• Despite the prolonged COVID-19 pandemic, performance increased
mainly in the brokerage business. Both sales (+ 28.4% year-on-year) andprofit (+ 30.4% year-on-year) greatly exceeded the previous fiscal year's
level and expanded well beyond the level before COVID-19 pandemic.
• In the the field of small and medium-sized office buildings in central
Tokyo, each division brought together the expertise it has cultivatedthrough the creativity and ingenuity of each field, and developed thebusiness while cooperating, which functioned as a foundation for
creating high profitability in RP Business.

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1

Sun Frontier Fudousan Co., Ltd.

Consolidated Income Statement(Unit: 1 million yen)

FY ended Mar2021
Apr.-Sept.

Net Sales
Real Estate Revitalization Business

Replanning Business
Rental Buildings and Sub-leases
Real Estate Service Business
Hotel and Tourism Business
Other Business
Adjustment

Gross Profit (Loss)
Real Estate Revitalization Business
Replanning Business
Rental Buildings and Sub-leases
Real Estate Service Business
Hotel and Tourism Business
Other Business
Adjustment

Selling, General and
Administrative Expenses
Operating Profit (Loss)
Non-operating Income
Non-operating Expenses

Ordinary Profit (Loss)
Extraordinary Gain (Loss)
Income Taxes
Profit Attributable to Noncontrolling Interests

ProfitFY endingMar-2022
Apr.-Sept.

Income Statement Points

Year-on-year
Change32,16425,691
24,306
1,384
2,942
806
3,018
-293
9,010
7,693
7,151
541
1,632
-842
624
-97

45,32637,47236,404
1,067
3,777
3,300
1,050
-275
12,988
11,51911,222
296
2,063
-678
117
-35

40.9%
45.9%
49.8%
-22.9%
28.4%
309.1%-65.2%
44.1%
49.7%
56.9%
-45.3%
26.4%-81.2%
-

3,343

3,587

7.3%

5,667
87
370
5,384
-5
1,925

9,400
161
276
9,285
-131
3,295

65.9%
84.3%
-25.4%
72.5%
71.1%

-6

-3

-

3,459

5,862

69.4%

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<Real Estate Revitalization Business>
In RP Business, commercialization progressed made steady progressdespite COVID-19 pandemic, and sales progressed favorably. As aresult, the Real Estate Revitalization Business posted sales of 37.4
billion yen (up 46% year-on-year) and gross profit of 11.5 billion yen(up 50% year-on-year), with a gross profit margin of 30.7%, exceeding
the full-year forecast margin (27.2%). This became a major driver ofgrowth in companywide performance.
<Real Estate Service Business>
In addition to generating stable income in each business segment,
profits grew significantly due to the increasing opportunities to solve
problems in COVID-19 pandemic. As a result, the Real Estate Service
Business as a whole posted sales of 3.7 billion yen (up 28% year-onyear) and gross profit of 2.0 billion yen (up 26% year-on-year). The
profit margin was secured at a high level of 55%.
<Hotel and Tourism Business>
The Hotel Operation Business was sluggish due to the impact of the
prolonged state of emergency declared until the end of September andthe cost of three new start-up hotels. The Hotel and Tourism Businessas a whole posted a loss of 670 million yen despite an increase of 3.3
billion yen (up 309% year-on-year) in sales.

2

Sun Frontier Fudousan Co., Ltd.

Consolidated Balance Sheet - Assets <Cash and deposits> Increased by 9.1 billion yen due mainly to progress in sales of RP projects.
Decreased by 9.8 billion yen due mainly to the sale of properties. Of this amount, RP projects decreased by
10.4 billion yen due to progress in sales. Hotel projects increased by approximately 0.8 billion yen due mainly
to progress of construction of newly opened hotels.

<Inventories>

FY ended March
2020

FY ended March
2021(Unit: 1 million yen)

FY ending March 2022
As of End of
September 2021

Increase/Decrease(compared to End of
March 2021)

Current Assets

113,842

110,785

109,129-1,655

Cash and deposits

18,62721,50830,688+9,180Inventories

Other Current Assets

91,766
71,35317,0193,395
3,448

86,087
71,34913,917822
3,189

76,22760,92814,710589
2,213-9,859-10,420
+793
-232
-976

Non-current Assets

16,45016,70024,068+7,367

Property, Plant and Equipment

10,413

10,52817,407+6,878

712

701

660

-40

5,324

5,470

6,000

+529

130,293

127,485

133,197+5,712

Breakdown) RP
Hotel
Overseas, etc.

Intangible Assets
Investments and Other Assets

Total Assets

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3

Sun Frontier Fudousan Co., Ltd.

Consolidated Balance Sheet- Liabilities/Equity <Interest-bearing Debt> Borrowings increased by 0.7 billion yen from the end of the previous fiscal
year to 48.2 billion yen due to property purchase, etc.

<Net Assets>

Changes of Equity Ratio
End of

End of

End ofMarch 2020
March 2021
September 2021
Despite cash dividends paid in the previous fiscal year (-2.0 billion yen),increased by 4.0 billion yen compared to the end of last fiscal year due to
53.0%
49.6%
52.3%
Profit (5.8 billion yen) and other factors.
FY ending March 2022
Increase/Decrease
FY ended MarchFY ended March(compared
to End of
As of End of
2020
2021
(Unit: 1 million yen)March 2021)
September 2021

Current Liabilities

18,052

13,35815,045+1,687

Short-term Borrowings, etc.

4,463

5,530

5,659

+129

Income Taxes Payable, etc.

3,566

901

3,468

+2,567

Other Current Liabilities

10,022

6,926

5,917

-1,009Non-current Liabilities

47,43144,35444,334-20

Long-term Borrowings and Bonds
Payable44,90641,991

42,593+602

Other Non-current Liabilities

2,525

2,363

1,740

-622

Total Liabilities

65,48357,712

59,380+1,667

Shareholders' Equity

64,69066,91670,731+3,814

119

2,856

3,086

+230

Total Net Assets

64,80969,77373,817+4,044

Total Liabilities and Net Assets

130,293

127,485

133,197+5,712OthersCopyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

4

Sun Frontier Fudousan Co., Ltd.

Operating Results by Business Segment

Real Estate Revitalization Business(Replanning and Rental Buildings)<Replanning Business>◼ The number of units sold was 14, the same level as the same periodof the previous year (15 units).
◼ Average business period was 712 days (plus 180 days year-on-year)
due to the impact by the sales of three cases of medium-to longterm properties. Excluding that, it was 578 days (+46 days year-onyear). There has been no change to our business policy of targetinga period of one year from purchase to sales.
◼ Inventory related to RP business at the end of the period: 49 cases.
<Rental Building Business>◼ We will strive to increase rent income in the medium-to long-term
to build a stable revenue base as a stock business.

(Unit: 1 million Yen)

Net Sales
Replanning Business
Rental Building Business

Segment Profit (Note 1)
Replanning Business
Rental Building BusinessProfit Margin
Replanning Business
Rental Building Business

Number of properties purchased
Number of properties soldNumber of stocks at the End of FY

FY ended
March 2021
Apr. to Sept.

FY endingMarch 2022
Apr. to Sept.

Increase/
Decrease

25,691
24,30637,47236,404+45.9%+49.8%

1,384
7,262
6,721

1,067
11,138
10,842-22.9%+53.4%+61.3%

541
28.3%
27.7%

296
29.7%
29.8%

-45.3%+1.5%pt+2.1%pt

39.1%
7
15

27.8%
9
14

52 (Note 2)

49 (Note 2)-11.4% pt-1 cases-3 cases

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5(1(Millions
million yen)
of

yen)

売上高
Net Sales
Segment Profit
セグメント利益
Profit Margin
利益率

40,00037,47260%
50%

30,00040%

25,691
20,000

29.7%

28.3%

11,13810,000

7,262

30%
20%
10%

0

0%
FY ended
March 2021
2021/3期
Apr. to Sept.

4-9月

FY2022/3期
ending March 2022
Apr. to Sept.

4-9月(Note 1) “Segment Profit” is calculated by deducting specific costs of each segment,
including interest expenses, sales commission and goodwill depreciation expensefrom gross profit.
(Note 2) Projects of land purchase and development are included.

Sun Frontier Fudousan Co., Ltd.

Operating Results by Business Segment

Real Estate Service Business(Property Management, Building Maintenance, Sales Brokerage, Leasing Brokerage, Rental Conference Room, Rent Guarantee, etc.)<PM/BM>◼ The PM business saw a slight decrease in sales and profit due to anincrease in vacancies caused by COVID-19 pandemic.
(1 million yen)
◼ Both sales and profit increased in BM business due to rebound from theprevious year’s decline in orders and increase in M&A and entrusted
4,000
properties.
<Sales Brokerage/Leasing Brokerage>◼ Sales and profit increased in Sales Brokerage due to steady progress in winningreferrals from other divisions.
◼ Sales and profit increased in Leasing Brokerage due to rebound from the same
3,000
period of the previous year, when office relocation stagnated.
<Rental Conference Room>◼ Sales increased due to the thorough implementation of community-based andflexible proposal-based sales, capturing the limited demand for COVID-19
damages, but profits decreased slightly due to the opening of new sites.
<Rent Guarantee>◼ Both sales and profit increased due to a steady increase in the number of new
guarantee and re-guarantee transactions due to an increase in the number ofvacancies for COVID-19 pandemic and credit concerns among tenants.

FY ended
March 2021
Apr. to Sept.

FY endingMarch 2022
Apr. to Sept.

Net Sales

2,942

3,777

+28.4%

Segment Profit

1,632

2,130

+30.4%

Profit Margin

55.5%(Unit: 1million Yen)

56.4%

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Increase/
Decrease+0.9%pt

6

売上高
Net
Sales
Segment
Profitセグメン…
ProfitMargin
利益率
80%

3,777

2,942

60%
56.4%

55.5%

2,130
2,000

40%

1,632

1,000

20%

0

0%
FY ended March 2021
2021/3期
Apr. to Sept.

4-9月

FY ending March 2022

2022/3期
Apr. to Sept.
4-9月

Sun Frontier Fudousan Co., Ltd.

Operating Results by Business Segment

Hotel and Tourism Business (Hotel Development, Hotel Operation, etc.)<Hotel Development Business>◼ With sale of HIYORI Ocean Resort In Okinawa, 25 lots were delivered (1 million yen)(cumulative sales: 184 lots/203 lots in total). Posted Segment incomeof 200 million yen (Profit margin: 14.8%).
4,000<Hotel Operation Business>◼ Three new hotels opened in the first half of the fiscal year underreview, but during this period occupancy rates and room rates weresluggish, particularly for urban hotels, due to the self-restraint on
tourism under the declaration of a state of emergency. A loss wasrecorded due to start-up expenses for three new hotels.

売上高
Net Sales
Segment Profit
セグメン…
Profit Margin
利益率
40%
3,300

3,000

30%

2,000

20%

FY ended
March 2021
Apr. to Sept.

FY endingMarch 2022
Apr. to Sept.

Increase/
Decrease

806

3,300

+309.1%

Hotel Development Business

0

1,398

-

Hotel Operation Business, etc.

806

1,902

+136.0%

Segment Profit

-867

-970

-

Hotel Development Business

-62

207

-

Hotel Operation Business, etc.

-805

-1,177-

Profit Margin

-

-

-

Hotel Development Business

-

14.8%

-

Hotel Operation Business, etc.

-

-

-

(Note 1) “Segment Profit” is calculated by deducting specific costs of eachsegment, including interest expenses, sales commission and goodwill
depreciation expense from gross profit.

7

Sun Frontier Fudousan Co., Ltd.

(Unit: 1 million yen)

Net Sales

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1,000

10%

806

0
-1,000

0%

-867

-970

-2,000-10%-20%FY ended
March 2021
2021/3期
Apr. to Sept.

4-9月期

FY
ending March 2022
2022/3期
Apr. to Sept.

4-9月期

Operating Results by Business Segment

Other Business (Construction Business and Overseas Development Business, etc.)<Construction Business>(Millionsof◼ Both sales and profit increased due to the addition of the(1 million yen)
performance of Communication Development Inc., whose shares yen)
3,500
were acquired through M&A in the previous fiscal year.

<Overseas Development Business>◼ Substantial decrease in both sales and profits from the same periodof the previous fiscal year was recorded due to the absence of theresults of the high-rise condominium project in Da Nang, Viet Nam(Net sales: approximately 2.38 billion yen, profit: 0.53 billion yen),which was added to the operating results in the same period of theprevious fiscal year.

(Unit: 1 million yen)

Net Sales
Segment Profit
Profit Margin

FY ended
March 2021
Apr. to Sept.

FY endingMarch 2022
Apr. to Sept.

Increase/
Decrease

3,018

1,050

-65.2%

596

86-85.5%

19.8%

8.3%

-11.5%

3,000

売上高
Net
Sales
Segment
Profitセグメン…
ProfitMargin
利益率
3,018

30%

2,500
2,000

19.8%
20%

1,500

1,050

1,000

8.3%

500
86

0
4-9月期

8

10%

596

FY ended
March 2021
2021/3期
Apr. to Sept.

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40%

0%

FY2022/3期
ending March 2022
Apr. to Sept.

4-9月期
Sun Frontier Fudousan Co., Ltd.

Trends in Key Management Indicators■ Changes in Ordinary Profit Margin(百万円）(1 million yen)

■ Changes in Equity Ratio(1(百万円）million yen)

(Pursuing High-Value-Added Management)
売上高（左軸）Net Sales (L axis)

80,000(Building a Stable Financial Base)

80,00030%80%
純資産（左軸）Net Assets (L axis)

経常利益（左軸）
Ordinary Profit (L axis)

Equity Ratio (R axis)
自己資本比率（右軸）経常利益率（右軸）
Ordinary Profit Margin (R axis)

70,000

24.0%
22.0%

22.7%

70,00070%

60,000 56.0%

60%

25%
22.0%

60,000

20.5%

53.2%

52.3%

53.0%

50.3%

20%
50,00050,00050%
49.6%

40,00015%

30,00012.6%

40,00040%

30,00030%

20,00020%

10,00010%

10%
20,0005%
10,00000%
2017/3

18/3

19/3

20/3

21/3

0

22/3

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0%
2017/3

9

18/3

19/3

20/3

21/3

22/3

Sun Frontier Fudousan Co., Ltd.

Interim Dividends for Shareholder Return
Interim dividends will be paid to meet the expectations of shareholders and enhance
opportunities for profit returns.
The Company has been paying a lump-sum dividend of surplus once a year at the end of each fiscal year, but interim
dividends will be paid from the fiscal year under review (ending March 31, 2022) to enhance opportunities for profit
returns to shareholders.

Trends in Net Profit per Share and Dividends per Share
50円
33.50 yen
167.62 yen

38.50 yen

42.00 yen

Dividends per Share
1株当たり配当金

42.00 yen

'18/3

200円

180.35 yen
87.77 yen

0円

42.00 yen
151.95 yen

219.03 yen

Net Profit per Share
1株当たり当期純利益

'19/3

'20/3

'21/3

Interim
Dividends
21.00 yen

100円

0円

(Forecast)'22/3(予想)

Effective Date of Interim Dividends: December 7, 2021 (Tuesday)
Basic Policy for the Profit Returns to Shareholders
1. Strive for providing long-term and stable profit returns to shareholders
2. Secure investment funds to aggressively take on the challenge for future growth
3. Maintain the stability of financial base

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10

Sun Frontier Fudousan Co., Ltd.

Growth Strategy

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11

Sun Frontier Fudousan Co., Ltd.

Business Environment Awareness1. The Japanese economy is on a gradual recovery track due to progress in vaccination, despite the prolonged
stagnation caused by the COVID-19 pandemic.
As the number of new infections plummeted due to the spread of vaccinations, the state of emergency was lifted, and COVID19 pandemic is now under control.
Economic activity is normalizing, but turn-out has not yet fully returned, and it will take time for the tourism andaccommodation industries to recover.
Some manufacturing industries have been affected by the shortage of semiconductor supplies and the disruption of supply
chains due to the spread of infection in Southeast Asia.
2. As the global economy is recovering from the effects of the COVID-19 pandemic, the movement toward decarbonization
is growing.
The IMF has lowered its global economic outlook for 2021 to 5.9%, expressing concern about supply restrictions due to thereemergence of the COVID-19 infection.
There is concern that rising energy prices will cause inflation in the global economy as action towards decarbonization
intensifies.
The U.S. Federal Reserve Board has decided to start tapering in recognition of economic recovery amid concerns over supply
restrictions and inflation.

3. The office building market in central Tokyo is still weak despite a slowdown in the pace of deterioration due to theconvergence of the COVID-19 pandemic.
Office vacancy rate has risen for 19 concecutive months due to cost reductions and changes in work style, but it is beginningto pause.
The COVID-19 pandemic has converged, and a hybrid model that incorporates the benefits of coming to the office andteleworking is being explored.
As the environment of low interest rates due to monetary easing measures continues, demands for real estate remain highand real estate prices are rising.
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12

Sun Frontier Fudousan Co., Ltd.

Trends in Office Vacancy Rates and Rents
In Five Central Wards of Tokyo
(%)

(yen)

Average rent
(yen/tsubo)

Averagevacancy rate(%)

Average rent
In September 2021
20,858 yen(-74 yen MoM)

Peak average rent
August 2008
22,901 yen

Average vacancy ratein September 2021
6.43%(+ 0.12% pt MoM)
Peak vacancy rate
June 2012
Vacancy rate: 9.43%

Peak average rent
July 2020
23,014 yen

Peakvacancy rate
August 2003
Vacancy rate:
8.57%
Bottom of average
rent
October 2004
17,526 yen

Bottom of averagerent
In December 201316,207 yen

Bottom of vacancy
rate
November 2007
Vacancy rate: 2.49%

Bottom of vacancy
rate
February 2020
Vacancy rate: 1.49%* Source: Compiled by the Company based on Miki Shoji's "Office Report.”
Office buildings with a standard floor area of 100 tsubo or more in five central wards of Tokyo are covered.
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13

Sun Frontier Fudousan Co., Ltd.

Long-Term Trends
in Office Vacancy Rate and Rent
(Yen)
(円)

Average
rent
平均賃料

(％)

Vacancy rate
空室率50,00045,00010

9.01

44,193

9

8.12

8.08
40,0008

6.43

35,00030,0009 years

9 years

25,0006

10 years

5

22,20622,186

7

20,85820,00016,2073.77

15,00010,0004

17,577

3

3.17
2.65

2

1.79

5,000

0

1.55
0.394 years

3 years

4 years

10

Source: Compiled by the Company based on Miki Shoji's "Office Report"
Target officebuildings with a standard floor area of 100 tsubo or more in five central wards of Tokyo are covered.
出典：三鬼商事「オフィスレポート」を基に当社作成。都心5区の基準階100坪以上のオフィスビルが対象
Figures for 2020 and earlier are taken as of December of each year. Figures for 2021 are as of September.
2020年以前の数値は各年12月時点のものを抽出。2021年の数値は9月時点のもの

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14

Sun Frontier Fudousan Co., Ltd.

Age Distribution of Office Buildingsin Tokyo’s 23 Wards
Tokyo 23 wards

buildings

Small and medium-sized

Large-sized(Total floor area: 300 to 5,000 tsubo)(Total floor area: Over 5,000 tsubo)755 buildings

8,563 buildings
Old seismic code:
2,167 buildings(25%)

Old seismic code:

128 buildings (17%)

Over 20 years old:

Over 20 years old:

425 buildings

(87%)

(56%)

Age of buildings

7,486 buildings

Less than
20 years old:

Less than
20 years old:

1,077 buildings

330 buildings

(13%)

(44%)

Number of buildings
Source: Compiled by the Company based on "Tokyo 23 Wards Office Pyramid 2021 (based on number of buildings)" (Xymax Real Estate Institute)

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15

Sun Frontier Fudousan Co., Ltd.

Market Size in Tokyo
Number of Corporations and Demographics
Top 10 Prefectures in Number of Corporations
Tokyo
東
京
Osaka
大
阪
Kanagawa
神 奈 川
Aichi
愛
知
Saitama埼
玉Hokkaido
北 海 道
Chiba
千
葉
Hyogo
兵
庫
Fukuoka福岡Shizuoka静岡575,234

223,407
184,363
153,694130,108
119,564
107,704
94,01383,562
76,981
出典：国税庁「都道府県別法人数等の状況」を基に当社作成
Source: Compiled by the Company based on the National
Tax Agency‘s “Number of Corporations by Prefecture”.

Trends in Tokyo’s Population as Percentage of the Japanese Population (forecast)(Thousands)

東京都人口Tokyo’s population

日本人口Japanese population

Tokyo’s population as a percentage of the Japanese population
東京人口が日本人口に占める割合

160,000

25.0%

140,000
20.0%

120,000
100,000

15.0%

80,00060,00040,000

9.5%

9.8%

10.3%

10.6%

11.1%

11.4%

11.7%

11.9%

12.6%

10.0%
5.0%

20,000012,064

12,577

13,15913,515

13,85013,97913,93813,754

13,458

2000

2005

2010

2015

2020

2025

2030

2035

2040

(Year)
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0.0%

Source : Compiled by the Company based on the statistics of Tokyo, "Population of Tokyo (estimation)"

16

Sun Frontier Fudousan Co., Ltd.

Growth Strategy-Strengths of Medium-term Management Plan
and Our Business Model-

Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

17

Sun Frontier Fudousan Co., Ltd.

Basic Policy and Growth Strategy
in Medium-term Management Plan
Basic Policy
Providing "places where people gather and communicate with each other, and createsocial development and happiness for people"

Growth Strategy
OfficeDeepen and expand the Office Building Business

Hotel

Create services that go beyond satisfaction and excitementwith a sharp concept

Overseas

Expand housing-related business in Vietnam

M&A

Invest in peripheral businesses to expand the current
business and invest in start-ups in growth fields

Key Points

ESG

Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Digital18

Cash flow
Sun Frontier Fudousan Co., Ltd.

Progress in Medium-term Management Plan

Net sales
売上高

（億円）
1,200

(100 million yen)

Ordinary profit
経常利益

FY ending March 2022
Apr. to Sept. Result

FY ending March 2022
Forecast

FY ending March 2025
TargetNet sales

45.3 billion yen

76 billion yen

100 billion yen

Ordinary profit

9.2 billion yen

11.5 billion yen

20 billion yen

Net profit

5.8 billion yen

7.4 billion yen

14 billion yen

Ordinary profit ratio

20.5%

15.1%

20%

Equity ratio

53.0%

50% level

50% level

-

10.8%

10% or more

ROE

Net profit
当期純利益

1,000

1,000
800
600

760

732
596

533

400
200

128
88

161
107

FY2019年3月期
ended Mar 20192020年3月期
FY
ended Mar 2020

75 44

0
Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

2021年3月期
FY
ended Mar 2021

19

115

200
140
74

（予）(forecast)
2022年3月期
FY
ending Mar 2022
・・・

・・・

FY ending
Mar 2025 (forecast)（予）
2025年3月期

Sun Frontier Fudousan Co., Ltd.

Strategy in Office Building Business
Provide services to solve every problem in clients, mainly in the five wards of central Tokyo

RP
12

13

11

Of the total number of RPs over 430 properties,
80% are located in the five wards of central
Tokyo and its adjacent wards.
* As of the end of September 2021

Leasing A network of nine community-based branches
Brokerage Ginza, Kanda, Nihonbashi, Kodenmacho, Kojimachi,
Shinjuku, Shibuya, Gotanda, Hamamatsucho

20
68

120

PM

41

More than 80% of 403 entrusted propertiesare located in the five wards of central Tokyo.
* As of the end of September 2021

44

BM

11

Of the 197 buildings under comprehensive
management, 85% are located in the five wardsof central Tokyo. * As of the end of September 2021

Rent
80% of the 646 new contracts were in the five
Guarantee central wards of Tokyo.
* Results for FY ended March 2021

7

Rental22 of the 23 sites are located in the five
Conference wards of central Tokyo.
Room* As of the end of September 2021/One site in Yokohama* The numbers on the columns in the map are the cumulative number of RPs.
Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

20

Sun Frontier Fudousan Co., Ltd.

Strengths in Office Building Business
Solve various problems by in-house manufacturing from purchase to development,
occupancy, sales and support, and by understanding the client’s intentions in detail.

1. Real Estate Utilization
To be a partner to solve difficulties from our client’s point of view

Fundraising Consulting

Asset consulting

Rent guarantee

Construction planning

Property management

Leasing brokerage

Sales brokerage

Property
purchase

2. Real Estate
Revitalization
Building
development ofvalue chain

Property
sales

Clients (Building owners, asset holders, and wealthy individuals)
1. Real estate utilization: Get close to clients at the site and solve problems. Capture the source of added value
from clients’ voices.
2. Real estate revitalization: Reflect our expertise to increase asset value and the needs we have identified inrevitalized buildings to increase their value and sell them.
Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

21

Sun Frontier Fudousan Co., Ltd.

Business Model of Replanning Business
Renovate office buildings that require large-scale repairs due to declining occupancy rate
into high-value-added-real estate demanded by society through renovation from theclient’s point of view
Step 1: Purchase
force

•
•

Purchase low-occupancy •and non-occupantbuildings using various
routes and methods

Aging degradation
Earthquake
resistance anxiety
Violation of legal
compliance, etc.

Step 2 : Replanning

Leasing force

The community-based branch network makesbuildings highly operational. It functions as theclosest point of contact for clients who canconsult with us about anything.

Buildings that meet theneeds of tenants=

・ Full occupancy ・ Improved
income ・ Stable income

Sales force

Work closely with wealthyclients to meet their mostchallenging needs andexceed their expectations.

・ Real estatetransactions
・ Assetmanagement
・ Inheritancemeasures, etc.

Office to Accelerate Growth

Unlike regular office interiors for rent, offices are rented out with highly-designed interior work donein the reception and reception room setups and office areas, and with some of the equipment andfixtures pre-installed.

Set-up
OfficeBenefits

Highly profitable buildingssought by owners

Step 4:Creativity

Design offices from the clients' point ofview office and carry out the repair work.
Carry out repair work in pursuit of safety
and security.

Set-up Office

Step3:

1. Reduce the burden on
management

2. Immediately available after
relocation

3. Reduce financial burden
on tenants

4. Improve recruitment, motivation,and productivity

Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

22

Step 5: Management skills
Maintain high occupancy rates,
provide stable profits to building
owners, and provide high-quality
services to tenant.

Sun Frontier Fudousan Co., Ltd.

Continue High Profitability in Office Building
Business
Despite the impact of market conditions, the Replanning Business maintains a highprofit margin and have the ability to recover and continue to grow.

● Replanning Business maintains high profit margin
70,00060,00050,00030.1% 29.9%

31.9%

40.0%

34.6% 33.4%

30.8%
27.2%

25.3%

35.0%
30.0%
25.0%

40,00020.0%
30,00015.0%
20,000
RP Sales
ＲＰ売上

10.0%

10,000

5.0%

0

ＲＰ売総
RP Gross profit

ＲＰ売総利益率
RP Gross profit margin

0.0%
'15/3

’16/3

’17/3

’18/3

’19/3

● Real Estate Service Business continues to grow steadily
3,500
3,000

2,573

BM
ＢＭ
PM
ＰＭ

2,000

’22/3 2Q

3,029

2,559

2,208

1,820

1,785

1,500

賃貸仲介
Brokerage

Leasing

1,000

Sales
売買仲介

500

Brokerage

2,147

2,500

滞納賃料保証Rent guarantee’21/3

In addition to Sales Brokerage, Leasing Brokerage, and PM, the Company has
added BM, Rent Guarantee, and Rental Conference Room to its services, steadily
increasing its stock business earnings.

2,987

Rental

貸会議室
conference room

’20/3

0
'15/3

’16/3

’17/3

Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

’18/3

’19/3

23

’20/3

’21/3

’22/3 2Q

Sun Frontier Fudousan Co., Ltd.

Initiatives in the Fiscal Year under Review

Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

24

Sun Frontier Fudousan Co., Ltd.

Replanning Business Initiatives Case 1
Converting gyms into offices, creating highly profitable buildings with versatility and scarcity
One profitable building in Shinjuku Ward (36 years old)

BeforeAfter
Replanning
Construction

Sports gym

Appearance

Appearance

Entrance

BeforeFront road

OfficeSports gym

6F

Sports gym

5FSports gym

4F

Sports gym

After

Entrance

Creativity
Office6F

Office5F

Office

4F

3F

Office3F

Studio2F

Office2F

Studio and restaurants

1F

Office1F
B1F
B2F

TenantLeasing

Front road

StudioB1F

Studio *StudioB2FStudio ** B1F and B2F are different studio operatingcompanies from before replanning.

Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

25

Converted gyms with special
facilities (shower, dressingroom) which only gains limited
tenants to a highly versatile
officeLeasing force
Utilizing rare studio facilities tolease to new studio operatingcompanies

Sun Frontier Fudousan Co., Ltd.

Replanning Business Initiatives Case 2
Refurbished into high-quality, high-design buildings and sold to overseas investors as investment real estate
One profitable building in Minato Ward (36 years old)

BeforeAfter

Appearance

Appearance

Replanning
Construction
SOHO

EV Hall

EV Hall

Entrance

Before Residence

7F

Residence

6F

Office5F

OfficeFront road

Entrance

After

SOHO

7F

SOHO

6F

Office

5F

4F

Office4F

Office3F

Office3F

Office2F

Office2F

Office1F

OfficeParking lot

TenantLeasing

1F

Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Front road26

OfficePurchase force

Sales force

Acquiring long-lived buildings fromowners, replanning them into highoccupancy office buildings, andselling them to overseas investors
in Taiwan

Sun Frontier Fudousan Co., Ltd.

Replanning Business

Flexible office meeting needs
Choose your office fashionably
Proposing "Rich Working Styles" for a New Eraof Diversification◆ Features of flexible offices
POINT 1

Easy entry and exit under a monthly contract

POINT 2The hidden costs are all inclusive and one price!

POINT 3

Resident community manager! Look forward to networking!

An office that you can rent by the week

◆ Flexible Office Line up+SHIFT NOGIZAKA
1-minute walk from Nogizaka Station, 8-11-26
Akasaka, Minato-ku+SHIFT KANDA
4-minute walk from Akihabara Station, 4-7,
Kandaiwamotocho, Chiyoda-ku

A YOTSUYA
6-minute walk from Yotsuya Station, 2-8
Yotsuya Honshiocho, Shinjuku-ku

LIT
2-minute walk from Bakurocho Station 2-24-9
Higashi-Nihonbashi, Chuo-ku
Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

27

Sun Frontier Fudousan Co., Ltd.

Replanning BusinessInitiatives to Carbon Neutral
Contributing to the realization of carbon neutral by offsetting CO2
emissions from replanning construction with J-credit derived fromrenewable energy resources
What is the J-Credit System?

カーボン･オフセット
Carbonoffset imageイメージイラスト

Carbon Offset

0
CO2 emissions from
RP construction
ＲＰ工事によるCO
2排出量

J-credit
ＪクレジットNet 0 CO2 emissions

Mechanism of carbon offset by J-credit derived from renewable energy
J-credit creator

J-credit buyers
Fund

Offset CO2 emissions
from renewal construction
with J-credit

J-credit

Renewalconstruction
Sun Frontier’s
revitalized building

Biomass power generation at paper mills

A system in which the national
government certifies the reduction
or absorption of CO2 and othergreenhouse gases through theintroduction of renewable energy
and forest management as"credits."

What is Carbon Offset?
An initiative to offset CO2 (carbon),which is generated no matter how
much effort is made in daily lifeand corporate activities, with the
reduction of other places createdby the absorption of CO2 by forests
and the renewal of energy-saving
facilities.

Transforming Replanning Business into a more sustainable ESG-related business bycontributing to the everlasting prosperity of human beings, plants and animals on the earth
by reducing the use of non-renewable resource
Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

28

Sun Frontier Fudousan Co., Ltd.

Conference Room Rental Business

New Vision Center Sites Open
Developing various services to meet coexisting with COVID-19 and post COVID-19 needs
Fully compatible with web conferencing and online distribution as working styles change
and diversify
August 18, 2021

January 14, 2022

Vision Center Nishi Shinjuku OpenVision Center Tamachi Renewal Open

5-minute walk from the south or west exit of JR
Shinjuku Station
Tokyo Metro / Toei Subway "Shinjuku Station"
1-minute walk from exit 7 of the undergroundpassage2-minute walk from Tamachi Station
1-minute walk from Toei Subway Mita Station.

Great access not only from Tokyo but also fromother regions

Total 26 rooms, 8 seats-360 seats

Convenient location with convenient access toshinkansen and airport

Total 7 rooms, 24 seats -288 seats
5-31-19 Shiba, Minato-ku, Tokyo 108-0014
Round Cross Tamachi, 2nd and 4th floors (reception: 4th floor)
https://www.visioncenter.jp/tamachi/

1-22-2 Nishi Shinjuku, Shinjuku-ku, Tokyo 160-0023
Shinjuku Sanei Building, 1st and 7th floors (reception: 1st floor)
https://www.visioncenter.jp/nishishinjuku/

Nihonbashi

Yurakucho

Tokyo

TamachiHibiya Hamamatsucho

Kanda

Nagatacho

Shinagawa・ Monthly rental offices (Vision Works, Vision Office): 4 sites

Yotsuya

Yokohama

・ Weekly / monthly rental Order Made Space: 6 sites

Shinjuku

・ Hourly rental Vision Center: 13 sites

Ueno

New Vision Center sites

Total of 23 sites
To Haneda airport

Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

29

Sun Frontier Fudousan Co., Ltd.

Specified Joint Real Estate Ventures

Strengthen Initiative for Small-lot Real
Estate Property

Sold out "Setagaya newly-built licensed nursery school", No.3 small-lot real estate property
owned by Act on Specified Joint Real Estate Ventures
Began soliciting investors for No.4 property, "Ota Ward new medical and educational mall"◆ Business model for small-lot real estate products

No.3 Setagaya Ward newly-built
licensed nursery school

1. Acquisitionof real estate

5-52-11 Matsubara, Setagaya-ku, Tokyo
5-minute walk from Higashi-matsubara Station,
Keio Inokashira Line
8-minute walk from Meidaimae Station on the
Keio Line and Keio Inokashira Line
Total floor area of three floors: 524.86 square
metersAttractive as an ESG investment that contributes
to solving the shortage of licensed nursery schools
Contributing to the value of Setagaya being a“childcare-friendly town"

2. Co-ownership
Interest Investment

3. Leasing
RevenueManaging Partner

4. Investment
Dividend

Investor
Building owners

Appeal 1. Sun Frontier Fudousan Co., Ltd. selects properties suitable for small-lot ownership
2. Can invest in real estate from a small amount and obtain profits (dividends)
3. Expected to reduce the amount of inherited property

No.4 Ota Ward new medical andeducational mall
2-28-4 Kitamagome, Ota-ku
2-minute walk from Toei Subway Asakusa Line Magome
StationTotal floor area of three floors: 1,327.25 square meters
A new mall with the theme of "medical care andeducation" in which after-school childcare, English
conversation school, etc. enter as tenants, centered on adrugstore with a large medical corporation and adispensing pharmacy that has strengths in hemodialysis.

Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Voluntary partnership30

As a professional in real estate utilization, we will continue todevelop attractive small-lot real estate products by combining
our know-how in the revitalization and utilization of realestate that we have cultivated over 20 years

We are also promoting the No.5 commercialization project!
Sun Frontier Fudousan Co., Ltd.

Hotel and Tourism BusinessBusiness Models for Hotel Business Growth
Increase added value by developing and acquiring some properties in addition to operating revenues, andaim for growth through synergies with sales revenues<Hotel Business Model Case>

Land・ Hotel development
model case

Land

Management
Sale and purchase
Owner

Development Construction

Company
Sun Frontier
Hotel Management

Company

Management

Sun Frontier
Hotel Management

Acquisition andopening(Room)
3,000

Numberof rooms

Spring Sunny H Nagoya Tokoname Station

194

2016.4

AcquiredOwn

4 Sky Heart Hotels (excluding Shimonoseki)564

2016.12AcquiredLending and leasing

2,000

Hiyori Hotel Maihama

80

2017.4

Newly
constructed

Sold leaseback

1,500

Sado Resort Hotel Azuma

57

2018.4

Acquired

Own

1,000

Tabino Hotel Hida Takayama

80

2018.5

Newly
constructed

Own (leased land)

500

Sky Heart Hotel Shimonoseki

105

2018.6

AcquiredOwn

0

Lending and leasing

Tabino Hotel Sado111

2018.7

Newly
constructed

Hiyori Hotel Osaka Namba Station

224

2019.5

Newly
constructed

Lending and leasing
Lending and leasing

Courtyard by Marriott Osaka Honmachi

193

2019.10

Newly
constructed

Hiyori Hotel Tokyo Ginza EAST

135

2019.12

Newly
constructedOwn

2020.2

Newly
constructed

Lending and leasing

2020.4

Newly
constructed

Own (leased land)
Sold leaseback*Tabino Hotel Kurashiki Mizushima
Tabino Hotel Kashima

155
194

HIYORI Ocean Resort Okinawa

203

2021.2

Newly
constructed

Hotel Osado

74

2021.4

Acquired

Own
Own (leased land)

HIYORI Chapter Kyoto

2032021.6

Newly
constructed

Tabino Hotel Lit Miyakojima

111

2021.6

Newly
constructed

Own

176

2021.7

Newly
constructed

Lending and leasing

134

2022
SpringUnder
construction

Own

Tabino Hotel Lit Matsumoto
Kyoto Shijo Kawaramachi

Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Purchase

Lease
Contract

Owner

Sun Frontier
Hotel Management

Hotel name and location

StatusSell

Company

Number of operating hotel rooms 2,859

Company
Sun Frontier
Hotel Management

2,993

2,295

2,500

1,898
1,191
758

838

'17/3

'18/3

'19/3

'20/3

'21/3

'22/3 (forecast) '23/3 (forecast)

After development, is operated after development, sold, and then leased back is
operated. 9% of the total number of hotel rooms of 2993

Percentage of hotel rooms by type9%

(Total number of rooms 2,993 rooms)

27%

Own
Own (leased land)
Lending and leasing

48%

16%

Sold leaseback* HIYORI Ocean Resort Okinawa is scheduled to be sold out this season.

31(As of November 2021)

Sun Frontier Fudousan Co., Ltd.

Hotel and Tourism Business

Hotel Operation Focuses on Creating
Enthusiastic Fans

Continuing initiative to create enthusiastic fans by creating
services that exceed expectations from the clients' point of view
Hotel brand development
Running

Under construction
Sado (Chigusa)

Own brand

Joint operation

Sado (Aikawa Oura)

Tabino Hotel Lit
MatsumotoOpened on July 15, 2021

Sado (Aikawakabuse)

Matsumoto

Upper Class

Upper ClassHIYORI Ocean Resort Okinawa

Courtyard by Marriott Osaka Honmachi

HIYORI Chapter Kyoto

Hotel Osado
Kyoto Shijo Kawaramachi Hotel

KashimaTakayama

Onna, Okinawa

Co-brand

Sado Resort Hotel Azuma

HIYORI Chapter Kyoto
Tribute portfolio Hotel
opened on June 18, 2021

Kyoto Nijo
Kyoto Shijo

Miyako Island(under construction)

Upper Middle Class

Budget Class

MaihamaHiyori Hotel Maihama

Spring Sunny H Nagoya Tokoname Station

NaritaHiyori Hotel Osaka Namba Station
Hiyori Hotel Tokyo Ginza EAST

Shimonoseki

Koiwa
Tokoname

Ginza

HakataKurashiki Mizushima

Osaka Honmachi
Osaka Namba

Tabino Hotel Lit
Miyakojima
Opened on June 25, 2021
Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

32

Kawasaki

Economy Class
Tabino Hotel Hida Takayama

Budget Class

Tabino Hotel Sado

Sky Heart Hotel Narita

Tabino Hotel Kurashiki Mizushima

Sky Heart Hotel Koiwa

Tabino Hotel Kashima

Sky Heart Hotel Kawasaki

Tabino Hotel Lit Miyakojima

Sky Heart Hotel Hakata

Tabino Hotel Lit Matsumoto

Sky Heart Hotel Shimonoseki

Sun Frontier Fudousan Co., Ltd.

New Business

Cooperation in Core Business Operations to
Promote Digitalization
Collaboration with SENSYN ROBOTICS Inc. for core business management Digitaltransformation aimed at improving the productivity and work style of the real estate industry

X
Develop remote management collaboration tools in the areas of construction, property management and building management by
combining field knowledge about central Tokyo and small and medium-sized office buildings with "SENSYN 360", a cloud application
capable of managing field information operated by SENSYN ROBOTICS with 360 ° panoramic VR.
Cloud application that canmanage in panoramic VR

Central Tokyo and small
and medium-sized officebuildings
Field knowledge

X

SENSYN 360

Joint development
Remote management
Collaboration
Tools

Aiming to significantly reduce cost and time for exterior wall surveys through joint development of an AI system
Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

33

Sun Frontier Fudousan Co., Ltd.

Our ESG Initiatives
Aiming to Sustainable Growth and Improvement of Corporate Value
over the long-term through our initiatives emphasized ESG

Environment

 We revitalize buildings without destroying them. We develop the Real Estate Revitalization Business, which grows
in harmony with the environment (revitalized buildings: 438 buildings.)
 We operate a circulation market of furnished offices with an aim to reduce waste materials generated by officerelocation.
 We promote the reduction of energy consumption at the buildings we manage in Property Management Business,
utilizing the Energy-saving Subsidy and others.
 Introduction of environmentally friendly electric power services in replanning buildings
Cumulative number of installations: 12 renewable energy power plants and 7 forest-based J-credit “Mori no
Denki.”
 Carbon offset by allocating J-credits CO2 generated during the replanning construction.

Social Promotion of management and development of human resources in accordance with social responsibility. Creationof a system in which diverse human resources can play active roles. (As of the end of September 2021: Female
employees 37.0% and Foreign employees 14.3%)
 In our Real Estate Revitalization Business, we promote the revitalization of buildings to meet the social needs(resolving lack of authorized nursery school).
 Under the slogan, “Cheer up Japan!” we develop Regional Revitalization Business from the aspect of tourism.
 We go ahead with the introduction of the drone technology to accelerate the innovation in the real estate industry.

Governance When we acquire properties, we clarify their possible risks, improve their legal compliance and correct shoddy
workmanship on them through the process of commercialization and then turn the properties into a real estate
stock with high social values and sell them.
 We have improved our monitoring function for the corporate management by appointing 5 independent outside
directors out of 12 directors.

Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

34

Sun Frontier Fudousan Co., Ltd.

Sustainability Committee Established
Aiming to contribute to the realization of a sustainable society and to increase corporate
value over the medium to long term by vigorously promoting activities that contribute to
the resolution of social issues based on Management Principle and Corporate Philosophy
Board of Directors
Report and presentation

Internal Audit
OfficeInstructions

ReportAppointment and removal

President
Representative Director

Established on October 1, 2021

Sustainability Committee

Supervision and instructions

Internal audit

The Sustainability Committee was established tostrengthen the ESG / SDGs perspective, to enhance
the level of sustainability activities that are integrated
with the realization of the Management Principle andthe practice of Corporate Philosophy, and toincorporate them into the organization as activities
that balance the creation of social and economic value.

Executive Officer
Association

All Divisions
Asset
Management
Division

Entrusted
AssetManagement
Division

Business
Promotion
Division

Select the Prime Market and comply with the revised
Corporate Governance Code, including TCFD-based
disclosure

Administration
Division

Sustainability Promotion Office
Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

35

Sun Frontier Fudousan Co., Ltd.

New Market Segment: Prime Market
We will strive to achieve sustainable growth and enhance corporate value over the
medium- to long-term, while maintaining a high standards of governance and focusing on
constructive dialogue with our investors.
Listing MaintenanceStandard

Prime Market Standard

Compliance Status of
the Company

Number of shares incirculation

20,000 units or more○

Market capitalization ofoutstanding shares

10 billion yen or more○

35% or more○

Ratio of outstanding shares

Average daily trading value

Trading value

2020/12/25
Announcement of newmarket segments

Select Prime Market○

20 million yen or more
2021/4/7
CGC Revision

As of June 30, 2021, the Company
met the listing maintenancestandard for the Prime Market.

2022/1/11
2021/12/30
Last day to select a
new market segment

2021/6/30
Transition dateRelease of the list of
new market segments

2022/4/4
SimultaneousTransition date

Selection period 9/1 - 12/30

Prime Market
Concept◆ Market capitalization suitable for investment by many institutional investors (liquidity)◆ Constructive dialogue with investors with a higher level of governance◆ Proactive efforts to achieve sustainable growth and enhance corporate value over the medium- to long-term

Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

36

Sun Frontier Fudousan Co., Ltd.

Reference Materials

Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Sun Frontier Fudousan Co., Ltd.

Estimation of Environmental
Contribution

ESG initiatives

Real Estate Revitalization Business that Conserves Limited Resources
and Coexists with the Environment [E]● Comparison of resource input over 50 years＜Prerequisites and Basis＞

Renovation
Plan
改修案

2,104

Assuming a 30-year-old, approximately 3,000 square
meter office building. Estimating environmental
contribution over 50 years (the service life of an SRC
building) based on the Architectural Institute of Japan
LCA tool (*).

Rebuilding
建替案
Plan

2,030

40.9% reduction

0

500

156

97
150

1,725

1,000

1,500

2,000

2,500

3,000

3,500

● Comparison of waste generation over 50 years

85

4,000

Kg / ㎡

49.3% reduction

Renovation
Plan
改修案

162

50

84

110

Rebuilding: If the building is to be rebuilt every 35
years
Renovation: Revitalization of aging buildings without
demolishing them (long life buildings)
Standard: Assuming a 30-year-old unrenovatedbuilding*Architectural Institute of Japan, “LCA Tool for
Buildings Ver.5.0 - Assessment Tool for Measuresagainst Global Warming, Resource Consumption andWaste” (Japanese only)
Estimated with the help of ERC, Inc.

Rebuilding
建替案
Plan
0

100

89

53

600

700

246

323
200

New
Building
新築

300

400

Rebuilding
建替

500

Repair修繕

Renovation
改修● Comparison of CO ₂ emissions over 50 years
Renovation

改修案
Plan

893

Standard*
標準※

480

1,711

703

458

800

kg/㎡

19.1% reduction

463

2,592

47

249

Demolition
解体

89

412

3,520

48

0

1,000

2,000

3,000

New
新築
Building

Repair修繕

Renovation
改修

Maintenance
維持管理

4,000

5,000

Abandonment
廃棄

Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

6,000
Energyエネルギー

38Compared to the proposed reconstruction andstandard building◼ Resource input:◼ Amount of waste
generated:

1,182t reduction◼ CO₂ emissions:3,660t-CO₂ reduction

4,899t reduction

7,000

kg-CO2/㎡

Sun Frontier Fudousan Co., Ltd.

ESG initiatives

Contributing to the Revitalization of Communities
and Society [S]Promoting recycling for optimal applications that meet social needs
Converting into nursery schools to meet the needs of the rapidly growing population
After

BeforeOriginally was abuilding for office

BeforeAfter

Originally a store
and workshop
Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Abundant use of solid wood

39

Equipped with multi-functional toilets

Sun Frontier Fudousan Co., Ltd.

ESG initiatives

Regional Revitalization Business [S] -Project in progress on Sado Island<We will energize Sado Island through tourism!>
When rural areas are energized, so Japan as a whole will be. As the number of visitors to Japan rapidly increases, spurred by fascination(culture, history, nature, food, hot spring, hospitality and others) that Japan is proud of, we will take on the challenge of regional
revitalization projects that focus on the attractiveness and features unique to regions, in particular the regions that possess the“Wonderfulness of Japan.” The first will be Sado, where we are familiar with. Moreover, Osado was included starting April 2021 and will
even revitalize the community more.

Sun Frontier Sado Inc.
Hotel Business
Tabino Hotel Sado

Hotel AZUMATransportation Infrastructure
Project

Okesa Kanko Taxi

Hotel Osado

Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Highlight Finding Project
Anaguchi-tei(Café & Restaurant)

Kigaruni Rent a
Car

40

Tourism and Travel
Business
Happy Sado
TravelWeb Advertising
Business

Sado Biyori

DONDEN
Highland Lodge

Sun Frontier Fudousan Co., Ltd.

ESG initiatives

Our Initiatives for Governance [G]In our Company, we have an idea of “right humanity” as judgement criterion for all of our
executives and employees to execute business assignments. We endeavor to strengthen oursystem of governance to ensure the execution.

Ratio of outside Officers 41.7% ratio of outside Directors 33.3%
Operate an equal Board of Directors where everyone can speak freely. Promote a sound Board of Directors with broad
knowledge, experience, and variety. In addition, they will attend important meetings such as the Executive Committee toensure the soundness of management.

We have established Nomination and Compensation Committee
We have established the Committee as a voluntary advisory body to the Board of Directors. The majority of the committee
members are outside directors to ensure sound management of the Company.
We have ensured our risk management at the time of acquisition of properties and our compliance with laws andregulations at the time of their sale
We make a comprehensive business judgement, considering not only their profitability but also their risks, environmental
impacts, compliance and others. We have also established a checking system to identify risks in a broad context not only by
our departments in charge but in cooperation with legal and audit departments. As for sale of the pre-owned buildings
which are disqualified, we first make them qualified enough to meet legal compliance requirements and market them.

We conduct a monthly training on compliance
We give all the employees training on compliance in order to establish an efficient system of legal compliance. The training
has a broad range of themes, such as “prevention of insider trades,” “prevention of trades with antisocial forces,”“information management,” etc. to promote sound business operation.
Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

41

Sun Frontier Fudousan Co., Ltd.

ESG initiatives

Effective Corporate Governance System [G]Outside Directors and Outside Audit & Supervisory Board Members are expected to return theirwide-ranging knowledge and experience to the Board of Directors and play a role in improving
corporate value. We promote a balanced corporate management and corporate governance system
based on our expertise and experience in each field.
Expertise and experience (skill matrix) * Up to 5 main items are listed.

Job title

Name
Corporate
management

Real estate

Accounting/
Finance

Legal/Compliance/Risk Mangement

HR/Labor/HR
Development

IT/Digital

CSR/ ESG/
Sustainability

M&A

Chairman Representative
Director

Tomoaki Horiguchi●●

President representative
director

Seiichi Saito

●

●

●

Executive Vice President

Izumi Nakamura

●

●

●

●

Senior Managing Director

Yasushi Yamada

●

●

●

●

Director

Mitsuhiro Ninomiya●●

Director

Kenji Honda●●(Outside) Director

Toshio Takahara●●(Outside) Director

Yukitoshi Kubo●●

(Outside) Director

Kazutaka Okubo●●

Full-time Auditor

Kouichi Shinada

●

●

●

●

●

(Outside) Auditor

Koichi Moriya

●

●

●

●

(Outside) Auditor

Hidetaka Tanaka

●

●

●

●
●

●

42

●

●
●

●

Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

●●●

Overseas

●

●
●

●
●

●

●

●

●

●

Sun Frontier Fudousan Co., Ltd.

Changes from the Past and Present Location
Grow by changing, challenging and creating new values with the Sun Frontier spiritLong-Term Performance

売上（百万）Net Sales (million yen)

120,000
100,000

18.5%

80,000

24.4%

13.2%

14.0%

47,46440,39527,741 30,626

26,871
16,731
1,771

3,588

5,004

24.0%

25.0%

22.0%

20.0%

53,292

59,632

15.1%
12.6%

4,290

6,924

15.0%
10.0%

17,772

14,469

7,761

30.0%

76,00011.5%

35,25540,000681

22.0% 22.7%

20.2%

19.3%

12.6%

48,15020,00022.9%

73,21815.8%

60,000

Achieved sustained high profits
持続的に高収益を実現

GlobalFinancial
Crisis

23.5%
20.8%

20.6% 21.3%

COVID-19
Crisis

経常利益率
Ordinary Income Ratio

5.0%

10,5810

0.0%‘01/3 ‘02/3 ‘03/3 ‘04/3 ‘05/3 ‘06/3 ‘07/3 ‘08/3 ‘09/3 ‘10/3 ‘11/3 ‘12/3 ‘13/3 ‘14/3 ‘15/3 ‘16/3 ‘17/3 ‘18/3 ‘19/3 ‘20/3 ‘21/3 ‘22/3 ‘21/3 ‘22/3 ‘25/3

2001 to 20092010 to 20202021 ~

Basic construction of Replanning Business

Evolution and expansion of Replanning Business

Deepening and diversifying of
Replanning Business

Replanning business

Set-up office
Hotel
Rental space
Overseas

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43

Sun Frontier Fudousan Co., Ltd.

Management Principle, Corporate
Philosophy and Vision
Flexibly change plans and strategy looking ahead for life coexisting with COVID-19 and post
COVID-19. Management Principle, Corporate Philosophy, Vision and Major Policy stays unchanged.

Management Principle:
To protect all employees and pursue physical and mental well-being, while the same time contributing to theprosperity of mankind and society with a spirit of symbiosis.

Corporate Philosophy:
We will improve our knowledge, skills, and personality through our work, and by concentrating on theutilization and distribution of real estate stocks, and then reduce the waste of non-renewable resources, andcontribute to the everlasting prosperity of human beings, plants and animals on the earth.

Vision:We aim to become the company loved and chosen by customers the most in the world as real estate
professionals!

Major Policy:“Not for profit, but for trust”.
Change ourselves, solve problems in clients' point of view, and exceed expectations!
Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

44

Sun Frontier Fudousan Co., Ltd.

Corporate Profile
Company Name

Sun Frontier Fudosan Co., Ltd.

Location of Head Quarters 2-2, Yurakucho 1-chome, Chiyoda-ku, Tokyo
Date of Foundation

April 8, 1999

Date of Listing

February 26, 2007 (First Section of Tokyo Stock Exchange)

Capital Stock *11,965 million yen

Representative

Tomoaki Horiguchi, Chairman
Seiichi Saito, President

Number of Consolidated
Employees *Average Age of
Employees*

679 full-time employees (1,197 including part-timers and temporary workers)
35.7 years old

Real estate revitalization
Business Profile

Real estate services

Real estate management, brokerage, construction
planning, non-payment guarantee, operation ofrental buildings, asset consulting

Hotel development and management
Accounting Month
Listed Market

March
Tokyo Stock Exchange, First Section (Code number: 8934)(*As of now, the end of September 2021)

Copyright © 2021 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

45

Full-time directors
From the left in the front row : Seiichi Saito, President and Representative Director ; Tomoaki
Horiguchi, Chairman and Representative Director.
From the left in the back row: Mitsuhiro Ninomiya, Director; Yasushi Yamada, Senior Managing
Director; Izumi Nakamura, Executive Vice President; Kenji Honda, Director.

Sun Frontier Fudousan Co., Ltd.

Sun Frontier Fudousan Co., Ltd.

We will appreciate your further supports.
◆ The purpose of this document is to provide information that can be used as a reference, not for soliciting or promoting you

to purchase a specific product. Please make your decision by your own discretion and responsibility when you make an
investment. If you want to purchase shares of our Company, please contact securities companies.
◆ The information provided in this document is not necessarily in compliance with the Financial Instruments and ExchangeAct, the Building Lots and Buildings Transaction Business Act, the Listing Rules for the Tokyo Stock Exchange and otherrelated laws and regulations.
◆ Forward-looking statements included in this document do not guarantee future performance.
◆ Although we have made every effort to ensure the contents of this document, we can not guarantee their accuracy or
certainty. Please note that they are subject to change or cancellation without notice.

<Inquiries about this document>
Sun Frontier Fudousan Co., Ltd. IR Desk
Phone : +81-3-5521-1551
URL : https://www.sunfrt.co.jp/
Mail : ir-contact@sunfrt.co.jp