Sun Frontier Fudousan Co., Ltd.
Business Report
Shareholder Newsletter 2022
Fiscal Year Ended March 31, 2022

Stock Code: 8934

T o o ur Sh ar e h olde r s
Summary of The 23rd Business Year
The Real Estate Revitalization Business Led
the Signiﬁcant Recovery in Earnings, andOur Company is on a Growth Track Again.
We hope that things are going well with all of our shareholders, andwould like to express our sincere gratitude for your continued patronage.
In addition, we would like to express our heartfelt condolences to those
who have been aﬀected by the infection with COVID-19 and to those
who have been aﬀected by the spread of COVID-19, and we would liketo express our sincere appreciation to all medical professionals.
In the business environment surrounding our group in the 23rd term,
the omicron variant spread worldwide from the beginning of 2022, andthe situation was unpredictable. In addition, the rise in raw material
prices due to the Russian invasion of Ukraine has spurred an increase in
prices, and monetary easing measures have been downsizing and monetary tightening has been adopted worldwide. While paying close attention to such market trends, our group has taken thorough measures toprevent the spread of the novel coronavirus, and all employees haveworked together to resolve customer problems. In particular, in the oﬃce
business division, we promoted the sales of renovated properties thatwere turned into high-performance and high-value-added buildings incollaboration with all divisions. As a result, it signiﬁcantly drove thegroup's earnings. Thus, both net sales and ordinary income recovered
signiﬁcantly, 19.5% and 62.3%, respectively, and we were able to return
to a growth track.

Increasing term-end dividends
In December of last year, we paid an interim dividend to enhance

opportunities for medium- to long-term return of proﬁt toshareholders. Furthermore, we increased the term-end dividend by 2
yen from the initial forecast of 21 yen to 23 yen, and the annual
dividend, including the interim dividend, was 44 yen. We willcontinue to strive for a long-term and stable return of proﬁts and toincrease the entire group's corporate value to meet our shareholders'
expectations and be worthy of their support.

Aspiring to achieve sustainable growth basedon the Medium-term Management Plan

Our group is currently implementing a medium-term management
plan with the term ending March 2025 as its ﬁnal year. With "provide
the world with a place where people can gather, communicate witheach other, and create social development and people’s happiness"
as our basic policy, we are working to resolve social issues throughour business, and we have set quantitative targets of net sales of
100 billion yen, an ordinary income of 20 billion yen, and a net
income of 14 billion yen.
Moreover, we have set the ESG perspective as one of our priorities. Taking the opportunity of our transition to the TSE Prime Market
in April this year, we have formulated a Sustainability Vision as a
guideline for contributing to the realization of a sustainable society
and improving corporate value over the medium to long term. The
key issues of the Sustainability Vision are environmental protection,
regional revitalization, and human resource development. Since its
founding, the group's corporate philosophy has been to "minimize
the waste of non-reproducible resources and contribute to thelasting prosperity of humankind, animals, and plants on the Earth."Thus, we have been developing business activities that contribute to
the sustainability of society, and we will further promote speciﬁc
initiatives in line with our Vision and key issues in the future. Furthermore, in June of this year, we transitioned into a company with anaudit and supervisory committee to further strengthen governanceand enhance management ﬂexibility. Through these measures, ourgroup will achieve sustainable growth.
(See P.3-6 for details.)

Sticking to our main policies under any circumstances

We aim to be the world's most loved and selected real estate company in any environment based on our main policy, "we seek trust,
not proﬁt, and we keep on changing. We resolve problems from thecustomer's perspective to meet their expectations and more!"

Front row, from left: Seiichi Saito, President and Tomoaki Horiguchi, Chairman
Back row, from left: Mitsuhiro Ninomiya, Director; Yasushi Yamada,Managing Director; Izumi Nakamura, Executive Vice President; and Kenji Honda, Director

01

Sun Frontier Fudousan Co., Ltd. Business Report

We would like to ask our shareholders for their continued supportand encouragement.
June, 2022
Sun Frontier Fudousan Co., Ltd.

President

Seiichi Saito

Consolidated Performance Highlights<Contents>(Fiscal Year Ended March 31, 2022)

Net Sales

71.2 billion yen
up 19.5 % year over year

Operating Income

12.1 billion yen
up 53.3 % year over year

Ordinary Income

12.2 billion yen
up 62.3 % year over year

To Our Shareholders

01

Medium-termManagement Plan

03

Transition to a Company with
an Audit and Supervisory
Committee

0４

Sustainability Policy

0５

Sustainability Activities

0６

Business Topics
Oﬃce Building Business

07

Income Attributable to Owners of Parent Company

Change, Endeavor, andCreation in Each Business

１０

up 73.5 % year over year

Shareholder Special Beneﬁt

11

7.4 billion yen

Results Information

Key Performance Indicators
Ordinary Income Margin Equity Ratio

ROE

Financial Highlights by Segment

13

Financial Highlights

14

Corporate Information

Back Cover

17.1% 52.2 % 10.8 %Sun Frontier Fudousan Co., Ltd. Business Report02Med ium- te r m Man ag em ent Pl an
Contributing to the Resolution of Social Issues Through the Achievement of the Medium-Term Management Plan
Our group has been working on a medium-term management plan with its ﬁnal year set as the term ending
March 2025. Amid changes in the business environment due to the spread of the novel coronavirus andthe transition to the "new normal," we were able to ﬂexibly change ourselves and return to a growth track.
As per our basic policy, we will upgrade all businesses according to our priorities and work to solve social
issues by achieving our goals.

■ Basic policy
Provide a place where people can gather, communicate with each other, and create social development and people's happiness.
Oﬃce Business・"Revitalization" contributes to carbon neutrality by reducing the waste of non-reproducible resources.
・Focusing on "urban centers," "small and medium-sized buildings," and "oﬃce buildings," we will capture thediversifying needs of our customers from a consistent on-site perspective.
・Contributing to the development of cities that will continue to prosper into the future by utilizing digitaltechnology and other new technologies.

Hotel Business・To provide security, healing time and space, to bring out the best smiles, and to restore and enrich people's minds.

Overseas Business・To make Asian people happy, together with fellow Asian people.
・Specializing in the development, sale, management, and brokerage of residential properties (condominiums),
we contribute to the development of the city by improving the quality of housing for local residents.

■ Points to focus on
Points to focus on to upgrade the business and management to catch up with the changing times(1)ＥＳＧ (2)Digital(3)Cash ﬂow

Quantitative targets
Term ended March 2025
Net Sales

100 billion yen

Ordinary Income

20 billion yen

Net Income*

14 billion yen

Ordinary Income Margin 20% or more
Equity Ratio

50% level

ROE

10% more(billion yen)
120

NEW

■ Net Sales ■ Ordinary Income ■ Net Income*

100
80
60

20

71.2
59.6

53.3

0

12.8

100

84

73.2

40

*Income Attributable to Owners of Parent Company

03(4)Marketing

8.8

2019.3

Sun Frontier Fudousan Co., Ltd. Business Report

16.1
10.7
2020.3

7.5 4.4
2021.312.2

7.4

2022.3

12.8

20
8.3

2023.3 (target) …

142025.3 (target)Transition to a Company with an Audit and Supervisory Committee
Enhance Management Supervision Functions and Strengthen Corporate GovernanceWith the approval of the 23rd Ordinary General Meeting of Shareholders held on June 21, 2022, our group has
transitioned from a company with a board of auditors to a company with an audit and supervisory committee.
A company with an audit and supervisory committee is a stock company's institutional design made possible by theamendments to the Companies Act in June 2014. Instead of having a board of auditors, the company sets up an audit
and supervisory committee dominated by outside directors to strengthen the auditing and supervision function of theboard of directors.
Unlike conventional corporate auditors, directors who are members of the audit and supervisory committee are
directors with voting rights at the board of directors. In a company with an audit and supervisory committee, the person
in charge of auditing has more substantial authority than in a company with a board of auditors, which enables thecompany to enhance its auditing and supervisory function and to strengthen its corporate governance.
Before June 21, 2022

On and after June 21, 2022

Company with a board of auditors

Company with an audit and supervisory committee

General meeting of shareholders

General meeting of shareholders

Appointment/
dismissal

Appointment/
dismissal

Board of directors

Board of auditors

Directors

Full-time auditor

Appointment/
dismissal

Appointment/
dismissal

Board of directors
Directors

Audit and supervisory committee
Directors

Have voting rights

Outside directors

Audit

No voting rights

Have voting rights

Outside audit andsupervisory board members

Outside directors

Have voting
rightsAudit andsupervision

Outsidedirectors

Have voting
rightsHave voting rights

No voting rights

Have voting rights

By changing this corporate structure, our group aims to further improve management transparency and fairness,enable swift management decisions by delegating important business execution decisions, and maximize
sustainable corporate value.
Sun Frontier Fudousan Co., Ltd. Business Report04

Sust ain ability Polic y
We have formulated the Sustainability Vision as a guideline for contributing to the realization of a sustainable
society and improving corporate value over the medium to long term.

Sustainability Vision
We will contribute to the realization of a sustainable society through our business activities
while respecting the heart of altruism, the Company policy.
On that basis, we have set three key issues to work on to achieve the Sustainability Vision. In the future, we willdevelop speciﬁc measures for each of the three key issues, which are environmental protection, regional
revitalization, and human resources development.
Important issue

Environmental
protection

Regional
revitalization

Human
resourcesdevelopment

VisionPolicyIncrease environmental
sustainability by signiﬁcantly
reducing waste and greenhouse gas emissions, as afrontier of Real Estate
Revitalization Business▶Extend the life and health of realestate▶Energy conservation and reductionof environmental impact by Real
Estate Revitalization Business▶Expanded use of renewable energy

Create sustainable growth ofregional economies throughoﬃces, hotels, and tourism, asa frontier for sustainableregional revitalization▶Create buildings, oﬃces, and spaces
with“job satisfaction”and“creativity”that contribute toeconomic growth▶Prevent and mitigate disasterthrough regional cooperation▶Solve regional issues throughcommunity activation and creation

Spread the concept of"altruism" that is indispensable
for realizing a sustainable
society, as a frontier ofphilosophy management▶Create workplaces with job
satisfaction, creativity, and growth
opportunities▶Respect and utilize diversity▶Disseminate information on
philosophy management to foster
next-generation managers

Related SDGs

*Please refer to the release, https://www.sunfrt.co.jp/en/pdf/20220329_en.pdf

The Company will announce its Sustainability Goals (KPIs), state of progress, and ESG-related data on
its website under "Sustainability”https://www.sunfrt.co.jp/en/sustainability/ sequentially.

05

Sun Frontier Fudousan Co., Ltd. Business Report

Sust ain ability Ac tivit i es
Started Activities to Support the People of Ukraine
We support the Japan YMCA Alliance in aiding Ukrainians visiting Japan.
We have opened Ukraine Café HIMAWARI, a place for interaction and learning, at our art oﬃce, A
YOTSUYA, for Ukrainians who are evacuating to Japan through YMCA. Together with YMCA, we are goingto support the people of Ukraine.

Open event: Parent-child craft workshop

Participants enjoying conversation and cooking at the networking party

Children enjoying mural art

Art oﬃce“A YOTSUYA”(Shinjuku-ku, Tokyo)

Registered as a Barrier-Free Mind Support Company in Tokyo
Tokyo has been promoting the concept of a Barrier-Free Mind to encourage community
development where everyone can move smoothly and enjoy various activities. Based on thisconcept, the city takes necessary actions not only to improve facilities, but also to consider society
and the environment where everyone can participate equally.
Our company supports the concept of Barrier-Free Mind and was registered as a supporting
company after application and examination.
Sun Frontier Fudousan Co., Ltd. Business Report06

Oﬃce Bu ildi ng B us i nes s

B u s in e s s T op i c s

Business Models for Oﬃce Building Businesses(1)Real Estate Utilization

Fundraising Consultation

Assets Consulting

Rent Guarantee

Construction Planning

Property
purchase

Property Management

Sales Brokerage

Leasing Brokerage(1) Real estate utilization : Get close to our 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
in revitalized buildings to increase their value and sell them.

(2)
Real estate
revitalization
Building
developmentof value chain

To be a partner to solve diﬃculties
from our client’s point of view

Our clientsContributing to
Resolving Social Issues

Contributing to the Realization of a Sustainable Society by Reducing
Greenhouse Gas Emissions and Waste Through the Real Estate
Revitalization Business

Through the real estate revitalization business (Replanning ® business), we acquire and sell oﬃce buildings that requirelarge-scale repairs and have a declining occupancy rate through changing them into high-value real estate by renovating themand attracting tenants. It is a sustainable ESG business that curbs the wasting of resources and contributes to the lasting
prosperity of humankind, animals, and plants on the Earth.
For a building that is more than 30 years old, renovation would signiﬁcantly reduce greenhouse gas emissions and waste
generation compared to rebuilding for the next 50 years.
（t-CO2）
8,000

Comparison of CO2
emissions over 50 years
6,399

6,000

19.1% decrease
5,179

5,000
4,000

Comparison of resource
input over 50 years
3,991

3,000

4,000
2,000
0

（kg/m2）

Rebuilding

Refurbishment

40.9％ decrease
2,357（kg/m2）
1,000
800

400

1,000

200
Rebuilding

Refurbishment

801

49.3％ decrease

600

2,000

0

Comparison of waste
generation over 50 years

0406

Rebuilding

Refurbishment<Prerequisites and evidence> In the case of an oﬃce building that is 30 years old and approximately 3,000 m2, the degree of environmental contribution over 50 years (the useful life of the SRC oﬃce) is estimated based on the LCA tool*of the Architectural Institute of Japan.
・ Rebuilding: Rebuilding every 35 years ・ Refurbishment: Renovation without destroying aging buildings (long-life buildings)*Calculated in collaboration with the ERS Corporation using the Architectural Institute of Japan's "LCA Tool for Buildings Ver 5.0 ̶Evaluation Tool for Dealing with Global Warming, Resource Consumption, and Waste"

07

Sun Frontier Fudousan Co., Ltd. Business Report

Real Estate
Revitalization Case

Luxury Oﬃce Building of the Highest Quality and Sophistication
Overlooking Shinjuku Gyoen National Garden

Recreating a High-Quality Modern Space Where Employees and Visitors Get Together
in the Same Place with Excitement～ Gran First Shinjuku Gyoen ～The property has undergone a large-scale full renovation of over 1,000 tsubo (3305.78 m 2 ), including enlargement. All
rental ﬂoors from the 1st to 9th ﬂoors have been remodeled as oﬃce areas (equipped with furniture for reception) tocreate a space full of openness in a high-quality, modern atmosphere.
The spacious free-address lounge is designed with plenty of room to encourage communication between employees. In
the oﬃce area, wood-grain furniture and interiors create a comfortable and calm atmosphere, creating a space where
workers and visitors can naturally relax.

Before Acquisition and After Renovation

LoungeStairwellon the 1st
floor

Rooftop

Before

After

After

Before Stairwell on the 1st ﬂoor

After 1F

After: Stairwell→2nd ﬂoor (extension)

Before

After

After

Sun Frontier Fudousan Co., Ltd. Business Report08B u siness To p ics

Examples of Real
Estate Utilization

Oﬃce Building Business

We Have Carefully Selected Real Estate in Central Tokyo,
Proposing New Forms of Security and Value～ Strengthening Initiatives Concerning Small-Lot Real Estate Products ～The real estate in central Tokyo worth billions of yen have been divided into pieces worth 1 million yen each. These are prime
pieces of real estate which allow for diﬀused ownership with the management and operation being taken care of by ourcompany, and as these are small properties, it is easy to distribute assets and divide up the estate.

■ New Licensed Nursery School in Setagaya Ward
Product design that contributes to the development of Setagaya Ward as a town easy to raise children. As a product for
helping solve the social problem of the shortage of licensed nursery schools, it was well received by investors and sold out.

Floor
3F
2F
1F

TenantLicensed
nurseryschool■ New Medical and Educational Mall in Ota Ward
A newly constructed mall with the theme of medical care and education. Both medical care and education are solid social
infrastructures and are not easily aﬀected by economic conditions, so these products are expected to generate stable earnings
over the long term.

Floor
3F

Tenant(1) English conversation school for
after-school care(2) Gymnastics classroom anddaycare for children

2F

Medical corporation

1F

Dispensing pharmacy and drug store

Please refer toour homepage
for small-lot realestate products.

09

Sun Frontier Fudousan Co., Ltd. Business ReportB u s in e s s T o pi c s

Changes, Challenges, and Creativity in Each Business<Real Estate Services: Rental Conference Room>Opening of Vision Center and Promotion of
Floor Expansion<Regional Revitalization>

The Vision Center has been working to expand its services suited for

In March 2022, the company held a grand opening of Sado Outdoor

and video streaming. Thanks to the favorable reception of Vision

Island in Niigata Prefecture, where regional revitalization projects are

the changing and diversifying workstyles, including online meeting
Center Nishi-Shinjuku, which opened in August 2021, the ﬂoor

space was expanded in January 2022 and further expanded in May.
The ﬂoor space of Vision Center Tamachi and Vision Center Yokohama were also increased in January and February, respectively.

Opening of Sado Outdoor Base

Base, a comprehensive outdoor activity base on the Sadogashima

underway. In addition to a general tourist information center, a tour
sales counter, an outdoor shop, and a rental booth, it is equipped withshowers, changing rooms, cafes, and rest areas to support adventure
tourism, which allows tourists to enjoy outdoor experience.

<Hotels & Tourism><Digital: Exterior Wall Inspection>

HIYORI Ocean Resort, which was being sold as a condominium

In collaboration with SENSYN ROBOTICS, Inc., the company iscompany will continue to provide smiles to visitors and aim toitems required for wall surface inspection by drones. The Building

HIYORI Ocean Resort Okinawa Sold Out

hotel subdivided into units, was sold out in December 2021. The
realize a resort hotel that provides happiness.

Enjoy an extraordinary relaxing time with a view of the beautiful
emerald green sea.

Developing AI Software with SENSYN ROBOTICS, Inc.

developing AI software that signiﬁcantly reduces the number of work
Standards Act was revised in April 2022, making it possible to conduct
regular inspections of speciﬁed buildings (set forth in Article 12) bydrones. In December 2022, a national license was granted for drone
operation, following which the use of drones has been expanding.

Sun Frontier Fudousan Co., Ltd. Business Report10Shareholde r S pe c ial B eneﬁt
To Become the Only Hotel in the World for Our Guests

Please Come and Experience the "Warm-hearted Hotels" Operated by our Group.
We would like to express our gratitude to our shareholders for their continued support, and we have implemented ashareholder special beneﬁt program in order to deepen their understanding of the business development of our Group and toencourage them to hold our shares over the medium to long term.

Details of Shareholder Benefits

How to Use●

Please make a reservation by contacting the following
hotel by phone or from the oﬃcial website. Hotel prices
change daily, but you can pay at the hotel with the best
rate available that day.
(Please note that this coupon can be used only if you call us in advance toinform us that you will be using the shareholder beneﬁts.)●

For Hiyori Ocean Resort Okinawa, HIYORI Chapter Kyoto
Tribute Portfolio Hotel and Courtyard by Marriott Osaka
Honmachi, you do not need to be a hotel guest to use theservice at the restaurants and retail stores.
(At Shijo Kawaramachi Onsen Bettei Kamogawa, guests can also use Kyoto
Kappo Higashiyama during their stay.)●

There is no limit to the number of discount coupons thatcan be used at one time.
(Please refer to the back of the discount coupon for other points to note whenusing the discount coupon.)

Number of stocks held

Holding
period100 shares or more
and less than 300－

300 shares or more
and less than 500－

500 shares or more
and less than 1,000

1,000 shares or more

Discount coupon
worth 1,000 yen

1
1
2

－

1,000 shares or more
500 shares or more
and less than 1,000

NumberDetails of
the special oﬀers of coupons

Discount coupon
worth 5,000 yen

44

3 years
or longe

8

Applicable Hotels● Shijo Kawaramachi Onsen Sora

Niwa Terrace Kyoto
Shijo Kawaramachi Onsen Bettei
Kamogawa

324, Inaricho, 2-chome, Shijosagaru,
Kawaramachi-dori, Shimogyo-ward,
Kyoto City, Kyoto

Shijo Kawaramachi Onsen Sora Niwa Terrace Kyoto

Tel: 075-352-4000

Shijo Kawaramachi Onsen Bettei Kamogawa

Tel: 075-352-4002●Hiyori Ocean Resort Okinawa

1055-1 Nakadomari, Onna, Kunigami
District, Okinawa

Tel: 098-965-1600●Kasugazaki Onsen Hotel Oosado

288-2 Aikawa Kabuse, Sado City,
Niigata

Tel: 0259-74-3300●Sado resort hotel Azuma●HIYORI Chapter Kyoto Tribute

Portfolio Hotel

341 Kiyomizu, Nijo-agaru,
Kawaramachi Street, Nakagyo-ku,
Kyoto City, Kyoto

Tel: 075-221-3220●Courtyard by Marriott Osaka

Honmachi

2-3-7 Minamihonmachi, Chuo-ku,
Osaka-shi, Osaka

Tel: 06-6266-5580●Ginza Open-air Bath, Hiyori HotelTokyo Ginza EAST

1-2-13, Shintomi, Chuo-ku, Tokyo

Tel: 03-3555-1230●Hiyori Hotel Maihama

2-25-8 Higashino, Urayasu City, Chiba

Tel: 047-390-7300

548-1, Aikawa Oura, Sado City,
Niigata

Tel: 0259-74-0001

11

Sun Frontier Fudousan Co., Ltd. Business Report●Hiyori Hotel Osaka Namba

3-1-2 / 3-2-1 Nambanaka,
Naniwa Ward, Osaka City, Osaka

Tel: 06-6643-5280●Tabino Hotel lit Matsumoto

1-4-5 Fukashi, Matsumoto City,
NaganoTel: 0263-39-5050●Tabino Hotel lit Miyakojima

596 Hirara Nishizato, Miyakojima City,
Okinawa

Tel: 0980-75-3100●Spring Sunny Hotel●Tabino Hotel Hida-Takayama

13-1 Matsunoki, Takayama City,
Gifu

Tel: 0577-36-1220●Tabino Hotel Kashima

1-64-36, Hiraizumi-higashi, Kamisu City,
IbarakiTel: 0299-95-5990●Tabino Hotel Kurashiki

Mizushima

4-25, Nishitokiwa-cho, Mizushima,
Kurashiki City, Okayama

Tel: 086-444-2190

Near Nagoya Tokoname Station

3-174-1 Shinkaicho, Tokoname City,
Aichi

Tel: 0569-36-1600●Tabino Hotel Sado

113-12 Chikusa, Sado City, Niigata

Tel: 0259-58-8020

Please refer toour homepage
for more
information on
available hotels.

Reservation

Shijo Kawaramachi Onsen Sora Niwa Terrace Kyoto

Sora Niwa Terrace Kyoto

Shijo Kawaramachi Onsen Bettei Kamogawa

Bettei Kamogawa

075-352-4000
075-352-4002

Located in the Shijo Kawaramachi area, where the largest shopping district in Kyoto is spread, it
is a one-minute walk from the intersection of Shijo-dori and Kawaramachi-dori main streets, andaround the area there are long-established department stores such as Takashimaya Kyoto andDaimaru Kyoto, shopping districts with a rich history that have helped develop Kyoto culture, as
well as many restaurants. It is truly the center of Kyoto. New Japanese hot spring resorts, withtwo diﬀerent styles, are born here.

[Features]
1. A large natural hot spring bath with a private hot spring

Appearance of Shijo Kawaramachi Onsen
Sora Niwa Terrace Kyoto and Bettei Kamogawa▶

2. The roof top Sora Niwa Terrace boasting the panorama of Higashiyama
3. Activities that add color to your stay in Kyoto, such as the“Mizuhiki craft (artistic
knot-tying)”experience
Shijo Kawaramachi Onsen Sora Niwa Terrace Kyoto

The guest rooms are inlayed with a texture with a motif of the gentle ﬂow of the
Kamogawa River and the ﬂoating ﬂower with the traditional Japanese design of Kyoto. The
rooms are compact and easy to use, and the ﬂooring is made of Ryukyu tatami mats where
one can take oﬀ your shoes and relax from their trip. For breakfast, guests can enjoy thescenery of Higashiyama from the Sora Niwa Terrace rooftop while enjoying the Sora Niwa
Tamatebako, a lunch box ﬁlled with Kyoto vegetables delivered to their room.
Shijo Kawaramachi Onsen Bettei Kamogawa

All of 32 rooms are equipped with private hot spring open-air baths, and a special spacethat allows you to enjoy an extraordinary luxurious stay. All the rooms face theHigashiyama side, and the rooms above the 2nd ﬂoor have their own terrace. In therooms on the 1st ﬂoor, there is a waterfall that ﬂows along the wall, allowing guests torelax while indulging in the expression of the water feature and the sound of the ﬂowing
water. For breakfast and dinner, please enjoy an authentic Kyoto cuisine to your heart's
content at Kyoto Kappo Higashiyama.
Location: 324, Inaricho, 2-chome, Shijosagaru, Kawaramachi-dori, Shimogyo-ward, Kyoto
Access: 1-minute walk from Kyoto Kawaramachi Station of Hankyu Railway
4-minute walk from Gion-Shijo Station of Keihan Main Line
10 minutes by taxi from JR Kyoto Station
Total number of guest rooms:
102 in Shijo Kawaramachi Onsen Sora Niwa Terrace Kyoto
32 in Shijo Kawaramachi Onsen Bettei Kamogawa
Adjunct facilities:
A large natural hot spring bath with a jacuzzi, and the rooftop Sora Niwa Terrace▲ View from the rooftop Sora Niwa Terrace▲ A deluxe twin room of Bettei Kamogawa equippedwith a private terrace in all rooms above the 2nd
ﬂoor, as well as an open-air bath with a private hotspring in all rooms.

Sun Frontier Fudousan Co., Ltd. Business Report12

P e rfo rm a n c e Inf or m a t i on

Real Estate Revitalization Business
Net Sales

Segment Income(￥ million)
60,00055,95836,28425.1%

30,00020,00002021.329.1%
16,26230

2022.3

Segment Income

15

1,000

60

4,221

45

0

30

562
2021.3

56.5%
3,490

53.2%
3,803

1,695
6.0%
101
2022.302022.315
0

In the overseas development business, sales andproﬁt decreased signiﬁcantly as we posted sales
and proﬁt from a high-rise condominium project in
Da Nang, Vietnam in the previous term. In theconstruction business, although sales decreased,
proﬁts increased signiﬁcantly and proﬁt margins
improved due to the addition of the results ofCommunication Development Inc., for which we
acquired a 100% stake in the previous term.

9.6 %Sales: 6,911 million yen
Down 48.5% year on year

12,000

12

8,000

40

4,000

6,000
2,000
0

0

-2,000In the real estate service business, our company is developing
our business in central Tokyo's medium-to-small sized oﬃce
building ﬁeld by combining the expertise of various parties andworking together. It is the foundation for creating highproﬁtability in the replanning business by creating added value
by combining the innovation cultivated through originality andingenuity on site, in a chain. In the property managementbusiness, the number of consigned buildings increased
signiﬁcantly, and the building maintenance business, brokeragebusiness, and rent guarantee business grew steadily. In theconference room rental business, the company proceeded withthe reconstruction of the base for the next term.

Hotel and Tourism
Business

Other Business

10
5.3%

Sales: 1,695million yen
Down 59.8%
year on year

6,911

8
6
4
2

710
△1,9502021.32022.30-2

In the hotel development business, the units of HIYORI Ocean Resort
Okinawa were sold out. Although the delivery of a total of 43 units
was completed in the current term, both sales and proﬁt decreased
signiﬁcantly as we posted sales and proﬁt from 159 units in theprevious term. The hotel management business operated a total of 20
hotels (2,859 rooms). During the current term, the occupancy rate andaverage spending per guest room were extremely low, mainly in hotels
located in urban areas, due to the impact of the voluntary restraint of
tourism under the state of emergency, and although sales increased, aloss was recorded due to the start-up costs for newly opened hotels.

Real Estate
Revitalization
Business

2.4%

Real Estate Service
Business

Replanning BusinessLeasing/RP Buildings
Leasing/Fixed Assets
Sales Brokerage BusinessLeasing Brokerage Business

Real Estate
Service Business

Property Management Business
Building Maintenance Business
Subleasing Business10.0 %

Conference Room Rental Business
Rent Guarantee Business

Sales: 7,154 million yen
Up 15.7% year on year

Hotel andTourism Business

Real Estate
Revitalization
Business

Hotel Development Business
Hotel Operation BusinessLeasing/Hotels

Other Business78.0 %

Sales: 55,958 million yen
Up 54.2% year on year

Proﬁt Margin

Segment Income

（%）
14

60

20
2021.3

Net Sales(￥ million)
13,41914,00010,000Composition of Sales by Segment
（%）

13.3%

80

2,000

0

Proﬁt Margin

3,000
2,000

6,182

4,000

（%）
100

7,154

1,000

(￥ million)
6,000

4,000

6,000

Proﬁt Margin

3,000

Other Business

5,000

Segment Income(￥ million)
8,000

5,000

In the replanning business, the number of properties soldremained steady at 21 (23 in the previous term). The sales offour relatively large properties held for the medium/longterm at high proﬁt margins contributed to the performance inthe current term. In terms of commercialization, our company
aims to create oﬃces that will continue to be chosen in the
new normal environment by adapting to hybrid workstyles
while anticipating changes in towns, oﬃces, or workstyles.
Although the business period has been prolonged due to theextended time required for leasing because of the novel
coronavirus pandemic, our company maintains its policy tocomplete commercialization within one year.

Net Sales

Net Sales

7,000
45

9,111

10,000（%）
60

Hotel and Tourism Business

Real Estate Service BusinessProﬁt Margin

50,00040,000Ove r v i ew of Res pect i v e Seg m ent

Overseas Business
Construction Business

Total
Sales: 71,251 million yen
Up 19.5% year on year

The“Segment Incomes”in results of each business are calculated by subtracting speciﬁc expenses, such as interest paid, sales commission, goodwill amortizing, etc. from gross proﬁt.

13

Sun Frontier Fudousan Co., Ltd. Business ReportP e rfo rm a n c e Inf o r ma t i on

Fin ance Hi g hl ig ht s

■ Net Sales■ Ordinary Income・Ordinary Income Margin(￥ million)(￥ million)
80,00073,21870,00060,00050,00016,00014,00012,00010,00040,0002019.32020.3Net Income

2021.302022.3（￥）219.03
180.35

10,666152.26

8,783
87.77

4,000

7,415

2019.32020.32021.3240(￥ million)
140,000

200

120,000

160
120
80

4,274

2,000

2022.3

Interest-bearing Debts

40,00030,00020,00049,3710.75

0.76

2019.32020.380,000

17.1
10

7,524

47,5232019.3

Total Assets

2020.32022.32021.300127,485

136,512110,898
50.3
55,86040,00020,000Equity Ratio

Net Assets

130,293

60,000

0

（％）
100
80

49.6

52.3

64,80969,77352.2

60

74,45240
20

2019.32020.32021.32022.30■ Return on Equity（ROE※2）
ROE

D/E Ratio(￥ million)
60,00042,002100,000

40■ Interest-bearing Debts・D/E Ratio*1

50,000

12.6

20■ Total Assets, Net Assets, Equity Ratio

Net Income per Share

6,000

0

12,215

12,8132,000■ Net Income・Net Income per Share

8,000

22.0

4,000

10,00010,00030

6,000

20,000(￥ million)
12,00024.0

16,1278,000

30,0000Ordinary Income Margin（％）

18,00071,251
59,63253,291

Ordinary Income

51,0760.71

0.72

2021.32022.3(times)
1.5

（%）
30

1.0

20

0.5

10

0

0

16.8

17.7
10.8
6.5

10,00002019.32020.32021.32022.3*1 D/E ratio is calculated by interest-bearing debts /equity capital, and is an indicator of ﬁnancial soundness.
*2 ROE is calculated by net income/equity capital (average of year beginning and ending)× 100, and is an indicator for capital eﬃciency.

Please refer to our homepage for the detailed financial information.

Sun Frontier Fudousan Co., Ltd. Business Report14

Co rp o rate In for matio n
Sh are I n f orma tio n

Shareholder Memo

Total number of authorized shares

91,200,000

Total number of shares issued

48,755,500

Number of shareholders

Fiscal year

From April 1 to March 31 of the following year

Date of record

March 31Annual shareholder June
meeting

11,895

Announcement
listing method■ Major Shareholders (Top 10)
Shareholder name(As of March 31, 2022)

Number of shares held Shareholding Ratio*1

Electronic public notice (the Company homepage)

If an electronic public notice is not possible due to accident or any otherunavoidable circumstances, the notice will be published in the Nihon Keizai Shimbun.

Shareholder registry Mizuho Trust and Banking Co., Ltd. 1-3-3 Marunoichi, Chiyoda-ku, Tokyo
Administrator

Houon

17,957,500

36.83

The Master Trust Bank of Japan, Ltd.

3,932,000

8.06

Location for handling Security Agency Department. Mizuho Trust and Banking Co., Ltd.
this businessTomoaki Horiguchi

3,016,100

6.19

Company Overview

S Kawagoe Co., Ltd

1,566,400

3.21

Custody Bank of Japan, Ltd.

1,516,600

3.11

THE BANK OF NEW YORK MELLON

1,015,900

2.08

STATE STREET BANK AND TRUST

493,740

1.01(Account in trust)(Account in trust)
140044

COMPANY 505103
Keiko Horiguchi

416,500

0.85

SSBTC CLIENT OMNIBUS ACCOUNT

401,137

0.82

NORTHERN TRUST CO.(AVFC) SUB A/C

394,722NON TREATY

0.8１*1 Numbers displayed are rounded oﬀ to the second decimal place.
Shareholding ratio is calculated by subtracting the treasury stock(144 shares).
The calculation for shareholding ratio includes the 56,500 shares of ourcompany held by Mizuho
Trust & Banking as a trust account according to the Japanese Employee
Stock Ownership Plan (J-ESOP).

■ Breakdown of Shareholders (by share number)
Financial institutions 12.9%
Other,
domestic corporations
40.8%

Individuals,
other
24.7%

Foreigners
19.4%

Securities ﬁrms 2.2%

Contact address[Number for inquiries only]

0120-288-324

Name

Sun Frontier Fudousan Co., Ltd. (Code number: 8934)

Branches

Ginza, Nihonbashi, Kodenmacho, Kanda, Kojimachi,
Hamamatsucho, Shinjuku, Shibuya, Gotanda, Yokohama

Headquarters Toho Hibiya Building, 1-2-2, Yurakucho, Chiyoda-ku, Tokyo
100-0006
Tel.03-5521-1301 https://www.sunfrt.co.jp

Capital

Number of
employees
Executives
As of June21, 2022¥11,965 million

696 (consolidated)
Executive
Chairperson

Tomoaki Horiguchi

Executive Vice
President

Izumi Nakamura

Seiichi Saito*2
President
Executive Oﬃcer
Izumi Nakamura*2
Vice President
Executive Oﬃcer
Yasushi Yamada
Mitsuhiro Ninomiya Senior Executive Yasushi Yamada*2
Oﬃcer
Kenji Honda
Executive Oﬃcer Mitsuhiro Ninomiya*2
Kazutaka Okubo
Executive Oﬃcer Kenji Honda*2
Keiichi Asai

Executive President Seiichi Saito

Managing Director
Director
Director

Outside Director
Outside Director

Director (Audit andShinichi Tominaga
Supervisory Board Member)

Executive Oﬃcer Shuhei Oda
Executive Oﬃcer Kenji Wakao

Outside Director (Audit and Tsuneko Murata
Supervisory Board Member)

Executive Oﬃcer Midori Kaneko
Executive Oﬃcer Hiroyuki Takekawa

Outside Director (Audit and Hidetaka Tanaka
Supervisory Board Member)

Executive Oﬃcer Kentaro Kawanishi
Executive Oﬃcer Takeshi Hirahara*2 This means combined postwith the director position.

SF Building Support Inc.
Principal
Consolidated SF Building Maintenance Co., Ltd.
Sun Frontier Space Management Co., Ltd.
Subsidiaries
SF Engineering Inc.
Sun Frontier Hotel Management Co., Ltd.
Sky Heart Hotel Co., Ltd.