Financial Results for First Quarter of Fiscal Year Ending
March 31, 2015
(Based on Japanese GAAP)(Translation of Japanese Flash Report, Released on August 6, 2013)
Company name: Sun Frontier Fudousan Co., Ltd.
Stock listing: Tokyo Stock Exchange 1st Section
Code number: 8934
URL: http://www.sunfrt.co.jp
Address: 14F, Toho Hibiya Building, 2-2, Yurakucho 1-chome, Chiyoda-ku, Tokyo 100-0006
Representative: Tomoaki Horiguchi, President
Inquiry: Seiichi Saito, Executive Vice president(Phone: +81-3-5521-1301)*Amounts under one million yen have been rounded down.

1. Consolidated Performance in First Quarter of Fiscal Year Ending March 31, 2015
(1) Operating results*Percentage figures shown under sales, operating income, ordinary income, and net income columns indicate year-on-year changes for those
items.
(Millions of yen, except for per share figures)

Net Sales

Operating Income

Ordinary Income

1st Quarter of FY ending March 31, 2015

¥4,661 (105.3%)¥1,026 (268.7%)¥957(274.6%)

1st Quarter of FY ended March 31, 2014

¥2,270 (7.5%)¥278 (△35.7%)¥255(△38.7%)(Note) Comprehensive income, 1st quarter of FY ending March 2015: ¥888 million (250.2%), 1st quarter of FY ended March 2014:¥253 million (△38.0%)

Net Income

Net Income per Share(Yen)

Fully Diluted
Net Income per
Share(Yen)

1st Quarter of FY ending March 31, 2015

¥887 (250.9%)¥20.76－

1st Quater of FY ended March 31, 2014

¥252 (△38.1%)

¥5.91

－

(Note) On October 1, 2013, the Company split each common share into 100 shares. Net Income per Share and Fully Diluted Net Income
per Share are calculated assuming the share split coming into effect at the beginning of the previous consolidated fiscal year.

(2) Financial Position (at end of the term)(Millions of yen, except for per share figures)

Total Assets

Net Assets

Equity Ratio(%)

1st Quarter of FY ending March 31, 2015

¥35,099¥18,780

52.8%

FY ended March 31, 2014

¥33,910¥18,469

53.7%(Note) Equity at term-end: 1st Quarter of FY ending March 31, 2015 (as of June 30, 2014): ¥18,530 million
FY ended March 31, 2014 (as of March 31, 2013): ¥18,219 million

12. Cash Dividends(Yen)
Cash Dividends per Share
1st quarter period

2nd quarter period

3rd quarter period

-

¥0.00

-

¥13.50-¥14.00FY ended March 31, 2014
FY ending March 31, 2015

Year end

Annual total
¥13.5
0

-

FY ending March 31, 2015
¥0.00
(Projections)(Note) Changes from the latest released dividend forecasts:None¥14.003. Projections for Consolidated Performance in the Fiscal Year Ending March 31, 2015
(From April 1, 2014 to March 31, 2015) *Percentage figures are indicated year-on year changes for those items.
Net Sales
FY ending March 31, 2015

¥26,000 (46.3%)

Operating Income(Loss)

Ordinary Income(Loss)¥5,000 (10.3%)¥4,600 (6.0%)(Millions of yen, except for per share figures)
Net Income (Loss) per
Net Income
Share (Yen)(Loss)(Yen)¥4,300 (7.0%)¥100.57(Note) Changes from the latest released performance:None

Reference: Overview of Non-consolidated Performance(1) Significant changes in scope of consolidation during the period (change of specified subsidiaries that lead to a change inthe scope of consolidation): None
New Companies: -- Company (Company Name)
Excluded Companies: -- Company (Company Name)(2) Application of accounting methods which are exceptional for quarterly consolidated financial statement: None
(3) Changes in accounting policies, accounting estimates and restatement of corrections
1) Changes caused by revision of accounting standards: None
2) Changes other than those included in 1): None
3) Changes in accounting estimates: None
4) Restatement of corrections: None
(4) Number of shares issued and outstanding (common shares)
1) Number of shares issued and outstanding at the end of the period (including treasury stock):
June 2014: 42,755,500 shares
March 2014: 42,755,500 shares
2) Number of treasury stock at the end of period:
June 2014: 100 shares
March 2014: 100 shares3) Weighted average number of shares for the first quarter period (April 1 – June 30):
June 2014: 42,755,500 shares June 2013: 42,755,500 shares
On October 1, 2013, the Company split each common share into 100 shares. Net Income per Share and Fully Diluted Net Income
per Share are calculated assuming the share split coming into effect at the beginning of the previous consolidated fiscal year.

※Disclosure concerning status of implementation of quarterly review procedure
This quarterly financial results report is exempt from the quarterly review procedure based on the Financial Instruments andExchange Law. At the time of disclosure of this quarterly financial results report, such review procedure for quarterly reports
based on the Financial Instruments and Exchange Law had been under development.

※Appropriate use of projections for performance, other notes
The projections for performance in this report contain forward-looking statements based on information available to theCompany
at the date of publication, and on certain set assumptions that have been deemed reasonable. Actual earnings may vary greatly inaccordance with a wide range of factors. Refer to Item 3, “Qualitative information on consolidated earnings forecasts” on page 3.

2

Table of Contents of Appendix
1. Qualitative Information Concerning Consolidated Business Performance for the Quarter Under Review ............... 4(1) Qualitative information on consolidated operating results ..................................................................................... 4(2) Qualitative information on consolidated financial position .................................................................................... 5(3) Qualitative information on consolidated earnings forecasts ................................................................................... 5
2. Summary Information (Notes) ................................................................................................................................... 6(1) Significant changes in scope of consolidation during the period............................................................................ 6(2) Application of accounting methods which are exceptional for quarterly consolidated financial statements ......... 6(3) Changes to accounting policies/ changes to accounting estimates/ restatements ................................................... 6
3. Consolidated Financial Statements............................................................................................................................. 7(1) Quarterly consolidated balance sheets .................................................................................................................... 7(2) Quarterly consolidated statements of income and quarterly consolidated statements ofcomprehensive income ......................................................................................................................................... 9(3) Notes to quarterly financial statements ................................................................................................................. 11(Notes regarding the conditions of going business) ............................................................................................. 11(Notes in the case of major changes in shareholders’ equity) .............................................................................. 11(Segment information, etc.) .................................................................................................................................. 113

1. Qualitative Information Concerning Consolidated Business Performance for the Quarter Under Review(1) Qualitative information on consolidated operating results
In this consolidated first quarter period, the Japanese economy was on a gentle recovery trend, as corporate profits andemployment situations improved, partially because of the effects of the financial measures implemented from last year by
the government and the Bank of Japan for getting out of deflation.
In the real estate industry, the vacancy rate in the urban office building market showed a clear trend of improvement,
recovering rents. On the other hand, the real estate investment market is thriving with new investment funds from foreign
investors in Asia, etc. in addition to domestic investors. Especially, the investment needs for urban real estate are growing
rapidly, as the infrastructure development for the Tokyo Olympics is expected.
In this situation, our corporate group has kept specializing in the utilization and distribution of small and medium-sized
office buildings in the urban center of Tokyo, and engaged in solving real estate-related troubles of building owners. We
have created a variety of earning opportunities by providing each client with one-stop integrated services, including
brokerage for sale, purchase, and lease, building management, construction planning, delinquent rent guarantee.
Our in-house service sections exchanged their wisdoms from the viewpoint of clients, linked and marshaled theirexpertise, based on the opportunities and trust developed through our efforts for solving clients’ troubles. Through thisactivity, we have renovated real estate with the chain of additional values. We have accumulated renovation know-how andexperience especially for office buildings in the 5 cities in Tokyo (Chiyoda, Chuo, Minato, Shinjuku, and Shibuya Wards),
by combining our local knowledge, abilities to grasp the trends of tenants, optimize the use of purpose, maximize theattractiveness of each building, renew real estate while emphasizing “beauty and atmosphere,” etc. In addition, the amountof procurement steadily increased, because all employees joined hands to diversify procurement routes, for example, byprocuring real estate in the efforts for solving the troubles of building owners.
As a result, our operating results for the first quarter of fiscal year ending March 2015 were as follows:
Sales of ¥4,661 million (up by 105.3% from the same period of the previous fiscal year), operating income of ¥1,026
million (up by 268.7%), and ordinary income of ¥957 million (up by 274.6%). Net income was ¥887 million (up by
250.9%).
The performance of each segment is as follows.

Real Estate Revitalization
As for the replanning business, we determined target buyers at the stages of procurement and commercialization,
pursued not only rate of return, but also “values” suited for target clients, including the locational characteristics and rarityof each property, stability as assets, and merits regarding taxation. Through these efforts, we sold 6 buildings (3 buildingsin the same period of the previous year). As a result, sales and profits increased significantly from the same period of theprevious year. We also engaged in the commercialization of real estate to be sold in this term, and the procurement of realestate to be sold in the next term or later.
As for the rental building business, sales and profits increased from the same period of the previous year, because theincome from rents of the real estate to be revitalized increased.
In the real estate securitization business, etc., sales and profits increased from the same period of the previous year,
because of the income from the sale of real estate for joint investment, etc.
As a result of the above activities, sales were ¥4,030 million (up by 168.4% from the same period of the previous fiscal
year) and segment income was ¥1,225 million (up by 222.1%).

Real Estate Brokerage
In the sales brokerage business, we strengthened our efforts to take on property introductions from internal departments
and financial institutions, etc. However, sales and profits declined considerably, because the number of orders and the scaleof transactions decreased from the same period of the previous year.
In the rental brokerage business, sales and profits increased from the same period of the previous year, as we kept
solving various troubles regarding building management for building owners. In addition, we made efforts for attracting
tenants for our real estate and the ones that are being commercialized, contributing to the profits of the entire corporategroup.
As a result of the above activities, sales were ¥222 million (down by 22.9% from the same period of the previous fiscal
year) and segment income was ¥177 million (down by 26.0%).

Property Management
In the property management business, we maintained high operation rate, by increasing entrusted buildings for creating
business opportunities of sale, purchase, construction, renovation, etc., promoting lease by utilizing our local knowledge,
and improving satisfaction level by attending to tenants carefully. In addition, we kept offering services in cooperation
with related sections, such as undertaking the management of real estate purchased by our clients in the replanning andsales brokerage businesses, in order to develop longer, deeper relationships with clients. As a result, sales and profits
increased from the same period of the previous year.
4End of Jun. 2012

End of Jun. 2013

End of Jun. 2014

No. of entrusted buildings

165

190

242

Operation rate

94.4%

95.7%

97.3%

As for the building maintenance business, we made efforts to improve our earning system by refraining from receiving
unprofitable orders by bidding and increasing transactions in cooperation especially with the property management section
for enhancing the synergy with existing businesses. As a result, sales and profits increased from the same period of theprevious year.
As a result of the above activities, sales were ¥307 million (up by 13.0% from the same period of the previous fiscal
year) and segment income was ¥143 million (up by 27.3%).

Other Businesses
As for the construction solution business, we restructured organizational and personnel systems for enhancing thesynergy with other sections, and concentrated on in-company transactions, including real estate revitalization.
Consequently, sales and profits decreased considerably from the same period of the previous year.
In the delinquent rent guarantee business, we concentrated on the popularization of new product plans in the market andthe cooperation with affiliated companies, and so the number of transactions was healthy. Consequently, sales and profits
increased from the same period of the previous year.
As a result of the above activities, sales were ¥101 million (down by 51.4% from the same period of theprevious fiscal year) and segment income was ¥70 million (down by 10.1%).
(2) Qualitative information on consolidated financial position
As of the end of the first quarter of this consolidated fiscal year, total assets were 35,099 million yen (up 3.5% from theend of the previous consolidated fiscal year) and liabilities were 16,319 million yen (up 5.7%). The main reason for theincrease in total assets was that inventory assets increased 1,929 million yen, although cash and deposits decreased 637
million yen. The main reason for increase in liabilities was that corporate bonds increased 395 million yen and long-termloans payable increased 762 million yen, although income tax payable decreased 227 million yen.
Net assets were 18,780 million yen (1.7% increase). The main reason for the increase in net assets was posting 887
million yen in quarterly net income, despite 577 million yen being paid out for year-end dividends.
(3) Qualitative information on consolidated earnings forecasts
As for the results for the term ending March 2015, the forecasted values announced on May 9, 2014 have not beenrevised.

5

2. Summary Information (Notes)(1) Significant changes in scope of consolidation during the period
Not applicable.
(2) Application of accounting methods which are exceptional for quarterly consolidated financial statements
Not applicable.
(3) Changes to accounting policies/ changes to accounting estimates/ restatements
Not applicable.

63. Consolidated Financial Statements*Amounts under one thousand yen have been rounded down.

(1) Quarterly Consolidated Balance Sheets(Thousands of yen）
FY ended March 31, 2014(as of March 31, 2014)ASSETS
Current assets
Cash and deposits
Accounts receivable-trade
Real estate for sale
Real estate for sale in process
Supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

7

End of 1Q of FY ending
March 31, 2015(as of June 30, 2014)

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

10,542,722
286,2812,839,259
17,819,493
889
745,662
485,608△13,264
32,706,652

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

911,757
1,232,598
14,996
2,159,352

9,375
2,331
11,706

7,500
5,736
13,236

9,575
283,351△5,402
287,524
2,464,013
33,910,433

9,060
216,744△5,402
220,4032,392,992
35,099,644

FY ended March 31, 2013(as of March 31, 2013)
LIABILITIESCurrent liabilities
Accounts payable-trade
Short-term loans payable
Current portion of bonds
Current portion of long-term loans payable
Income taxes payable(Thousands of yen）
End of 1Q of FY ending
March 31, 2014(as of June 31, 2013)

411,085
347,500
17,014642,360
266,448

382,830
200,000
57,014
728,360
38,468Provision for bonuses
Provision for directors' bonuses
Construction warranty reserve
Provision for loss on guarantees for rent
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Other
Total noncurrent liabilities
Total liabilities

87,49920,00034,8006,561
1,190,179
3,023,449

52,2955,000
40,40011,512
1,302,516
2,818,397

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

1,513,732
10,878,320
319
1,108,288
13,500,659
16,319,057

NET ASSETS
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity

8,387,211
2,871,767
6,958,425△121
18,217,283

8,387,211
2,871,767
7,268,961△121
18,527,819

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

2,158
609
2,767
250,000
18,780,587
35,099,644

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of comprehensive income
8Quarterly Consolidated Statements of Income(Thousands of yen）

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Interest on refund
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Provision for loss Office transfer expenses
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in profit
Net income

Quarterly Consolidated Statements of comprehensive income

9

1Q of FY ended
March 31, 2014
(April 1-June 30, 2013)
2,270,265
1,399,396
870,869
592,443
278,425

1Q of FY ending
March 31, 2015
(April 1-June 30, 2014)
4,661,649
2,907,441
1,754,207
727,746
1,026,461

548
243
1,818
92
2,703

1,499
242
345
2,520
210
4,818

23,554
2,052
25,606
255,52155,736
18,29674,033
957,246

-

6,674
6,674

2,006
2,006
253,515
24,461△23,908
553
252,962
252,962525
525
963,394
72,6662,994
75,660887,734
887,734(Thousands of yen）
1Q of FY ended
March 31, 2014
(April 1-June 30, 2013)
Consolidated quarterly statements of comprehensive income
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests(3) Notes to quarterly financial statements(Notes regarding the conditions of going business)
Not applicable.
(Notes in the case of major changes in shareholders’ equity)
10

1Q of FY ending
March 31, 2015
(April 1-June 30, 2014)

252,962

887,734

△586
1,302
715
253,678

409
115
525
888,259

253,678-

888,259-

Not applicable.
(Segment information, etc.)
I First Quarter of Fiscal Year Ended March 31, 2014 (April 1, 2013 – June 30, 2013)
1. Information concerning sales and income or loss amount by reporting segment(Thousands of yen)
Quarterly
consolidated
Other
Adjustment
inocme/loss
businessTotalamounts
Real Estate Real Estate Property
statement
Total(Note 1)
(Note 2)
Revitalization Brokerage Management
amount(Note 3)
1,501,776
288,466
272,019 2,062,262 208,003 2,270,265
2,270,265－
Reporting segment

Sales
Segment
380,530
239,323
112,920 732,774 77,992 810,767
278,425△532,342
income(loss)
Notes: 1. The classification “other business” refers to business segments that are not included in reporting segments, andincludes construction solution business and delinquent rent guarantee business, etc.
2. The segment income adjustments amount, △532,342 thousand yen, includes △555,896 thousand yen incompany-wide expenses that are not allocated to reporting segments and 23,554 thousand yen in adjustment
amounts for interest expense. The company-wide expenses are mainly selling, general and administrative
expenses that are not allocated to reporting segments.
3. Segment income (loss) is adjusted with operating incomes calculated in consolidated quarterly statements ofincome.
2. Information on impairment of non-current assets and goodwill etc. for each reporting segment
Not applicable.
II First Quarter of Fiscal Year Ending March 31, 2015 (April 1, 2014 – June 30, 2014)
1. Information concerning sales and income or loss amount by reporting segment(Thousands of yen)
Quarterly
consolidated
Other
Adjustment
inocme/loss
businessTotalamounts
Real Estate Real Estate Property
statement
Total(Note 1)
(Note 2)
Revitalization Brokerage Management
amount(Note 3)4,030,653
222,453
307,376 4,560,484 101,164 4,661,649
4,661,649－
Reporting segment

Sales
Segment
1,225,816
177,063
143,770 1,546,650 70,137 1,616,788
1,026,461△590,326
income(loss)
Notes: 1. The classification “other business” refers to business segments that are not included in reporting segments, andincludes construction solution business and delinquent rent guarantee business, etc.
2. The segment income adjustments amount, △590,326 thousand yen, includes △646,063 thousand yen incompany-wide expenses that are not allocated to reporting segments and 55,736 thousand yen in adjustment
amounts for interest expense. The company-wide expenses are mainly selling, general and administrative
expenses that are not allocated to reporting segments.
3. Segment income (loss) is adjusted with operating incomes calculated in consolidated quarterly statements ofincome.
2. Information on impairment of non-current assets and goodwill etc. for each reporting segment
Not applicable.
(Important Subsequent Events)
Not applicable11