Financial Results for First Quarter of Fiscal Year Ending
March 31, 2013
(Based on Japanese GAAP)(Translation of Japanese Flash Report, Released on August 9, 2012)
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, 2013
(1) Operating results*Percentage figures shown under sales, operating income, ordinary income, and net income columns indicate year-on-year changes for thoseitems.
(Millions of yen, except for per share figures)

Net Sales

Operating Income

Ordinary Income

1st Quarter of FY ending March 31, 2013

¥2,111 (-0.4%)¥433 (119.3%)¥417 (140.1%)

1st Quarter of FY ended March 31, 2012

¥2,120 (124.5%)¥197 (54.5%)¥173 (74.8%)

Net Income

Net Income per Share(Yen)

Fully Diluted
Net Income perShare(Yen)

1st Quarter of FY ending March 31, 2013¥408 (213.5%)¥1,100.68¥1,100.57

1st Quarter of FY ended March 31, 2012¥130 (33.6%)¥351.10¥351.09(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, 2013¥12,451¥6,74254.1%

FY ended March 31, 2012

¥11,247¥6,463

57.5%

Reference) Equity at term-end: 1st quarter of FY ending March 31, 2013 (as of June 30, 2012): ¥6,742 million
FY ended March 31, 2012 (as of March 31, 2012): ¥6,463 million

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

2nd quarter period

3rd quarter period

FY ended March 31, 2012

-

¥0.00

-

¥350.00¥350.00

FY ending March 31, 2013-

¥400.00¥400.00

FY ending March 31, 2013
¥0.00
(Projections)
Note: There were no revisions to forecast dividends during the quarter.

Year end

Annual total

3. Projections for Consolidated Performance in the Fiscal Year Ending March 31, 2013
(From April 1, 2012 to March 31, 2013) *Percentage figures are indicated year-on year changes for those items.
Net SalesFirst half of FY ending

March 31, 2013

FY ending March 31,2013

Operating Income(Loss)¥- (-%)¥- (-%)¥10,500 (51.7%)¥1,120 (30.1%)(Millions of yen, except for per share figures)
Net Income (Loss) per
Ordinary Income
Share (Yen)(Loss)Net Income (Loss)(Yen)¥- (-%)¥- (-%)¥- (-%)¥1,050 ( 31.3%)¥950 (2.4%)¥2,557.23

Note: There were no revisions to consolidated earnings forecasts.

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 2012: 371,495 shares
March 2012: 371,495 shares
2) Number of treasury stock at the end of period:
June 2012: － shares
March 2012: － shares3) Weighted average number of shares for the first quarter period (April 1 – June 30):
June 2012: 371,495 shares
June 2011: 371,495 shares※Disclosure concerning status of implementation of quarterly review procedure
This quarterly financial results report is exempt from the quarterly review procedure based on the Financial Instruments andExchange Law. At the time of disclosure of this quarterly financial results report, such review procedure for quarterly reports
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 the Company
at the date of publication, and on certain set assumptions that have been deemed reasonable. Actual earnings may vary greatly inaccordance with a wide range of factors. Refer to Item 3, “Qualitative information on consolidated earnings forecasts” on page 4.

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1. Qualitative information concerning consolidated business performance for the quarter under review(1) Qualitative information on consolidated operating results
In this consolidated first quarter, the Japanese economy continued to see a return of production and consumption
along with the reconstruction demand from the Great East Japan Earthquake, but with the long-term financial
uncertainty in Europe the global economy continued to slow. As a result, the future remains unclear.
In the real estate industry, the rental costs for office buildings in central Tokyo that have been continually decreasing
since 2008 seem to have bottomed out and the real estate investment market has seen increased activity with obvious
need for the upper class to invest in central Tokyo property. These are signs of a gradual recovery.
In this circumstance, the Group has been expanding with downstream and midstream businesses as the main target,
including property management, brokerage for sale and rental, and realty, as well as improving our approach to ownersof buildings in central Tokyo in our property utilization operations. Our real estate revitalization operations focusedon acquisitions and sales of small and medium properties on a scale of several hundred million yen, which are veryliquid in the marketplace. In the real estate service business, we included the needs for sales and purchasing,construction and revitalization that arise from acting as a rentals intermediary by increasing the assets undermanagement in the property management business, in order to create a variety of new business opportunities.
As a result, our operating results for the first quarter of the fiscal year ending March 2013 were as follows:sales of ¥2,111 million (down by 0.4% from the same period of the previous fiscal year), operating income of ¥433
million (up by 119.3%), and ordinary income of ¥417 million (up by 140.1%). Net income was ¥408 million (up by213.5%).
Business performance by segment is as follows.
Real Estate Revitalization
In the replanning business, we focused on acquisition and sales of properties while carefully observing whether themarket has bottomed out. For the 5 cities in central Tokyo in particular, short-term projects were carefully considered
and 4 buildings were purchased. With effort put into the commercialization process for repairs and acquiring tenants,
rapid revitalization with high occupancy rate as made possible and 2 buildings were sold. As a result, despite sales
decreasing compared to the same period of the previous year, segment profitability increased.
In the rental building business, we worked on switching to rental buildings with medium-term competitiveness andincreasing purchasing capital for new replanning properties by selling 4 rental buildings in May of last year (1 building
was purchased in the same month), therefore income from rents decreased compared to the same period of the previousyear.
As a result of the above activities, sales were ¥1,345 million (down by 21.9% from the same period of the previous
fiscal year) and segment income was ¥426 million (up by 33.7%).
Real Estate Brokerage
In our sales brokerage business, we continued efforts to strengthen the customer base as well as seeking to improvesuccess rates for properties introduced from other sections, financial institutions and tax accountants. With the realestate investment market recovering, the number and size of properties handles both increased which caused anincrease in sales and profit compared to the same period of the previous year.
In the rental brokerage business, we focused on approaches to building owners. Collaborating with other sections,the issues faced in building operations by owners were solved in an effort to increase fee income, including that forrelated operations.
As a result of the above activities, sales were ¥317 million (up by 72.5% from the same period of the previous fiscalyear) and segment income was ¥274 million (down by 72.1%).
Property Management
In the property management business, we continued encouraging commissions for maintenance and operations ofoffice buildings, while working on creating business opportunities from the construction, repair and sales opportunities
that arose. In order to increase the utilization rate of commissioned properties, rental marketing was improved alongwith working on improving customer satisfaction for property tenants through attentive customer service, in order toprevent tenants vacating.
The building maintenance operations carried out by K.K. Yubi and its two subsidiaries which were acquired during
the previous financial year focused on increasing the number of properties handled through cooperation with existing
operations, especially the property management division. By focusing on their specialization of cleaning elevatedareas, efforts were made to increase their profitability ratio.
As a result of the above activities, sales were 286 million yen (up by 168.0% from the same period of the previousyear) and segment income was 110 million yen (up by 41.2%).
Other Businesses
In the construction planning field, we worked on construction management for building repairs, focusing on“comprehensive relocation planning” service which solves various problems involved in moving offices, including
layout proposals, interior design, and restoration.
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In the delinquent rent guarantee business, we focused on discovering latent customer needs through proposing new
product plans in addition to the existing menu of services, leading to a steady growth in new guarantee contracts.
As a result of the above activities, sales were 162 million yen (up by 52.3% from the same period of the previousyear) and segment income was 82 million yen (up by 75.9%).
(2) Qualitative information on consolidated financial position
At the end of the first quarter of this consolidated accounting period, total assets were 12,451 million yen (10.7%increase from the end of the previous year) and liabilities were 5,709 million yen (19.3% increase). The main reason
for the increase in total assets was a 1,384 million yen increase in inventory assets despite a 108 million yen decreasein cash and deposits. The main reason for the increase in liabilities was a 1,091 million yen increase in current
portion of long-term loans payable, despite a 101 million yen decrease in long-term loans payable.
Net assets were 6,742 million yen (4.3% increase). The main reason for the increase in net assets was 408 million
yen of quarterly net income, despite 130 million yen of dividends paid.
(3) Qualitative information on consolidated earnings forecasts
The estimated values for the results of the financial year ending March 31, 2013 have not changed from thoseannounced on May 10, 2012.
2. SUMMARY INFORMATION （NOTES）(1) Significant changes in scope of consolidation during the period:None(2) Application of accounting methods which are exceptional for quarterly consolidated financial statements:
None(3) Changes to Accounting Policies/ Changes to Accounting Estimates/ Restatements
Changes to Accounting Estimates and Changes to Accounting Policies Difficult to Differentiate
Following changes in the Corporation Tax Act, the Company and domestic subsidiaries will, as of this first quarter
consolidated accounting period, change the method for depreciation based on the revised Corporation Tax Act for allproperty, plant and equipment acquired from April 1, 2012 onwards.
There will be a minor impact on the operating income, ordinary income and income before income taxes andminority interests for the first quarter of this consolidated accounting period.
(4) Additional Information
Transfer of Noncurrent Assets
At the board meeting held on June 26, 2012, the Company decided to transfer the following noncurrent assets, andentered into a contract the same day.
1) Reason for Transfer
In order to optimize the Company’s portfolio of rental building assets, property held, including noncurrent assets,
is periodically changed, and this time the following noncurrent assets were transferred.
2) Nature of Assets Subject to Transfer
The Following Buildings and Lands
Name and Location of AssetBook Value (thousand yen)(*)

Current State1,553,408

Rental Building

Name: Chuo Dairoku Kannai
Building Location: Yokohama, Kanagawa(*) The book value is the value as of June 30, 2012.

3) Summary of Partner in Transfer
3 individuals and 3 asset management companies
Specific names are being withheld at the request of the transferees.
There are no notable financial, personal or business relationships existing between the transferees and the Company.
4) Time of Transfer
Date for Property Transferral: September, 2012 (Planned)5) Transfer Value
2,040,000 thousand yen4

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, 2012(as of March 31, 2012)

End of 1Q of FY ending
March 31, 2013(as of June 30, 2012)ASSETS
Current assets
Cash and deposits

3,912,155

3,803,173

Accounts receivable-trade287,204

309,233Operational investment securities

180,000

180,000

Real estate for sale57,143659,644

1,633,325

1,878,085

Real estate for sale in process
Trust beneficiary right of real estate for sale in process

542,572

Work in process construction

6,500

Supplies

1,116

Deferred tax assets

166,669

52,284

Other

287,131200,733

Allowance for doubtful accounts△8,577△9,7896,521,551

7,617,053

Buildings

2,176,800

2,176,800

Accumulated depreciation△275,890△294,673

Buildings, net

1,900,909

1,882,127

Vehicles

11,29013,654

Accumulated depreciation△9,440△9,417

1,849

4,236

Land

1,936,846

1,936,846

Other64,693

66,229△54,885△55,877

9,808

10,351

3,849,414

3,833,562

445,701

433,293

5,542

3,906

451,243437,200

Deferred tax assets

11,067

147,633

Other

423,790425,370

Allowance for doubtful accounts△9,107△9,107

Total investments and other assets

425,749

563,896

4,726,408

4,834,659

11,247,959

12,451,712

Total current assets
Noncurrent assets
Property, plant and equipment

Vehicles, net

Accumulated depreciation
Other, net
Total property, plant and equipmentIntangible assets
Goodwill
Other
Total intangible assets
Investments and other assets

Total noncurrent assets
Total assets5

(Thousands of yen）
FY ended March 31, 2012(as of March 31, 2012)

End of 1Q of FY ending
March 31, 2013(as of June 30, 2012)

LIABILITIESCurrent liabilities
Accounts payable-trade

265,393

205,198

Current portion of bonds

54,00054,000Current portion of long-term loans payable

234,907

1,326,569

Income taxes payable

22,97135,963

Provision for bonuses

45,056

11,499Construction warranty reserve

3,635

3,845

Provision for loss on guarantees for rent

5,251

5,705

747,369

861,967

1,378,585

2,504,750

2,957,050

2,855,974

448,643

348,492

3,405,693

3,204,467

4,784,279

5,709,217

5,515,443

5,515,443

947,6141,226,488

6,463,057

6,741,931

Valuation difference on available-for-sale securities

622

563

Total accumulated other comprehensive income

622

563

Total net assets

6,463,679

6,742,495

Total liabilities and net assets

11,247,959

12,451,712

Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Other
Total noncurrent liabilities
Total liabilities

NET ASSETS
Shareholders' equity
Capital stock
Retained earnings
Total shareholders' equity
Accumulated other comprehensive income6(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of comprehensive income
Quarterly Consolidated Statements of Income(Thousands of yen）
1st Quarter of FY ended
March 31, 2012
(April 1– June 30, 2011)

1st Quarter of FY ending
March 31, 2013
(April 1– June 30, 2012)

Net sales

2,120,950

2,111,909

Cost of sales1,492,659

1,159,070

Gross profit

628,291

952,838

Selling, general and administrative expenses

430,685

519,560

Operating income

197,605

433,278

Interest income

101399Dividends income

240

243

Non-operating income

Subsidy income

845

Interest on refund

2,173

Gain on disposal of unpaid dividend

2,063

Other

241

233

4,820

1,721

Interest expenses

23,605

15,412

Other

5,126

2,498

Total non-operating expenses

28,731

17,911

173,694

417,088

Total non-operating income
Non-operating expenses

Ordinary income
Extraordinary income
Gain on sales of noncurrent assets

339

Total extraordinary income

339

Extraordinary loss
Loss on sales of noncurrent assets

73

Loss on derivatives cancellation

41,510Loss on valuation of membership26

Total extraordinary losses

41,51099

Income before income taxes and minority interests

132,522416,989

2,088

30,241

Income taxes-current
Income taxes-deferred△22,149

Total income taxes
Income before minority interests
Net income

7

2,088

8,092

130,433

408,897

130,433

408,897

Quarterly Consolidated Statements of comprehensive income(Thousands of yen）
1st Quarter of FY ended
March 31, 2012
(April 1– June 30, 2011)
Net income(loss) before gain / loss of minority interests

1st Quarter of FY ending
March 31, 2013
(April 1– June 30, 2012)

130,433

408,897

Valuation difference on available-for-sale securities

△85

△58

Total other comprehensive income

△85

△58

130,348

408,839

130,348

408,839

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent8