Sun Frontier Fudousan Co., Ltd.

Consolidated Financial Statements for
the First Quarter of the Fiscal Year ending March 2020

We are aiming to be the real estate company of the world’s most
loved, trusted and selected by clients.

1) Overview of the Q1 Results of the Fiscal Year ending March 2020

1 -102) Business Environment

11 -13

3) Current Progress and Future Policies

14 -34

4) ESG Initiatives

35 -41

5) Company Information and Reference Materials

42 -46

August 8, 2019

Stock Code: 8934

Financial Summary for the First Quarter of the YearEnding March 2020
Financial Results for Q1 of FY Ending March 2020

Q1’s Net Sales and Incomes Broke an All-time High
Results

Profit Margin

From the Same Period of
the Previous Fiscal Year

Growth Rate

Full-year Forecast

Progression Rate

Net Sales

32,652 million yen-+ 14,441 million yen+ 79.3%70,000 million yen

46.6%

Operating Income

9,867 million yen

30.2%+ 5,028 million yen+ 103.9%

14,500 million yen

68.0%

Ordinary Income

9,758 million yen

29.9%+ 5,011 million yen+ 105.6%

14,000 million yen

69.7%

Net Income *6,697 million yen

20.5%+ 3,438 million yen+ 105.5%

9,500 million yen

70.5%*"Net Income" represents net income attributable to shareholders of the parent company.

Performance Highlights
2) Steady growth in Operation Business

1) RP Business doubled its Net Sales and Incomes••

In RP Business, sales of buildings significantly increased to 19 buildings (11 more thanthose in the same period of the previous year), and the segment income ratio was
further improved (from 30.5% to 34.8%). Net Sales and Incomes grew about twice,hitting a record high again.

•

Our company’s unique business model to maximize the attractiveness of buildings is•deepened by bringing together the expertise of each division of the company through allprocesses, including purchasing, commercialization and sales, by using repeatedly ouringenuity which was caught the sources of added values from the client’s point of view.
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

1

In Hotel Operation Business, newly opened hotels contributed to earnings and
Net Sales rose as much as 36%. HIYORI Hotel Osaka Namba Ekimae officiallyopened in May, and 12 hotels with 1,625 rooms are in operation in Japan as ofthe end of June. 4 more new hotels (677 rooms in total) are scheduled to open in
the current period.
In Conference Room Rental Business, Vision Center Shinjuku and Kanda opened
as new sites in June. The number of sites has increased to 17 (with 6,100 seats intotal) as of today. We are aiming to expand the business further by launching a
new brand.

Sun Frontier Fudousan Co., Ltd.

Consolidated Income Statement(Unit: 1 million yen)

FY ended March2019
Q1 (April to June)

FY ending March
2020
Q1 (April to June)

Net Sales

18,211

32,652

Real Estate Revitalization Business

16,39430,447

Replanning Business(including Hotel Development)

15,636

29,594

Rental Buildings and Sublease

757

852

Real Estate Service Business

793

844

Operation Business

903

1,277

Other Business

313

335

Adjustment

▲192

▲251

Gross Profit

6,221

11,897

Real Estate Revitalization Business

5,424

11,186

Replanning Business(including hotel development)

5,047

10,827

Rental Buildings and Subease

376

359

Real Estate Service Business

463

544

Operation Business

144

124

Other Business

199

62

Adjustment

▲11

▲19

1,382

2,030

Selling, general and administrative expenses
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

2

FY ended March2019
Q1 (April to June)

FY ending March
2020
Q1 (April to June)

4,839

9,867

Non-operating Income

1928

Non-operating Expenses

111

137

4,747

9,758

-

-

Corporate Income Taxes

1,489

3,062

Non-controlling gain or loss

▲0

▲0

3,258

6,697

Operating Income

Ordinary Income
Extraordinary Gains (losses)

Net Income• RP Business (including hotel development) has a gross profit
margin of 36.6%, a higher level than the last FY’s 34.6%.

• Steady growth was made in new business areas, such as
Operation Business and other business, etc. Total Net Sales
reported a year-on-year increase by 33.7% to ¥1.6 billion. On
the other hand, Gross Profit decreased due to an increase incosts associated with the opening of new hotels and unrealized
losses on a part of Inventory Assets in Overseas Business.

Sun Frontier Fudousan Co., Ltd.

Consolidated Balance Sheet - Assets (Unit: 1 million yen)

FY Ended
March 2018

FY Ended
March 2019

FY EndingMarch 2020
As of
End of June 2019

Increase/Decrease(Compared to
End of March 2019)80,174

97,14998,530+ 1,381

Cash and deposits

23,892

20,257

27,461+ 7,203

Inventory Assets

54,59374,32968,815▲5,514

Breakdown) RP

45,52562,14355,495▲6,647

Hotel

5,291

7,552

8,511

+ 959

Overseas, etc.

3,775

4,634

4,808

+ 174

1,687

2,562

2,253

▲308

11,587

13,74916,019+ 2,269

8,565

9,339

11,435+ 2,095

474

863

825

▲37

2,546

3,546

3,757

+ 211

91,761

110,898

114,549+ 3,650

Current Assets

Other Current Assets

Noncurrent Assets
Property, Plant and Equipment
Intangible Assets
Investments and other Assets

Total Assets

Inventory Assets decreased by 5.5 billion yen in total due to the sale of RP properties and others.
Among them ¥6.6 billion decreased in RP Business projects while ¥900 million increased in Hotel Business projects.

Property, Plant and Equipment increased about 2.1 billion yen due to progress in construction work related to hotel development.
Cash and deposits increased ¥7.2 billion, reflecting steady sales in RP Business projects.

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3

Sun Frontier Fudousan Co., Ltd.

Consolidated Balance Sheet – Liabilities/Equity –(Unit: 1 million yen)

FY Ended
March 2018
Current Liabilities

FY Ended
March 2019

FY EndingMarch 2020
As of
End of June 2019

Increase/Decrease(Compared to
End of March 2019)10,155

12,85914,402+ 1,543

Short-term Loans Payable, etc.

2,716

2,248

2,577

+ 329

Income Taxes Payable, etc.

3,178

2,661

3,194

+ 532

Other Current Liabilities

4,260

7,949

8,630

+ 681

32,75642,17939,430▲2,748Long-term Loans and Bonds Payable

30,86539,751

37,273▲2,477

Other Noncurrent Liabilities

1,890

2,428

2,157

▲270

42,91255,03853,833▲1,20548,75055,90060,720+ 4,820

99

▲40

▲4

+ 35

Total Net Assets

48,84955,86060,716+ 4,855

Total Liabilities and Capital

91,761

110,898

114,549+ 3,650

Noncurrent Liabilities

Total Liabilities
Shareholders’ Equity
OthersTransition of Equity Ratio
End of March 2018 End of March 201953.2%

End of June 2019

50.3%

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

52.9%

As sales of RP properties progressed, borrowings decreased by approximately 2.1 billion
yen from the end of the previous fiscal year, and the balance of interest-bearing debt was
39.8 billion yen.
Retained Earnings increased by 4.8 billion yen as a difference between Quarterly Net
Income (+ ¥6.69 billion) and year-end dividend payment (▲ 1.87 billion yen).

4

Sun Frontier Fudousan Co., Ltd.

Operating Results by Business Segment

Replanning Business (Replanning (RP) / Hotel Development)(Unit: 1 million yen)

FY ended
March 2019
April to June

FY endingMarch 2020
April to June

Increase/
Decrease(1 million yen)

30,000Net Sales

15,636

29,594+ 89.3%

Segment Income

4,769

10,305+ 116.1%

30.5%

34.8%

+ 4.3% pt(Note 1)

Profit Margin
Number of items
purchased

13 cases

14 cases

Net Sales
Segment Income
Profit Margin
29,59425,00050%

20,000+ 1 case

34.8%

8 casesNumber of stocks at
the end of Q1

58 cases

19 cases
64 cases(Note 2)

+ 11 cases+ 6 cases◼ Both Net Sales and Income surged. The attractiveness of buildings was maximized by
identifying sources for added values through each process of purchasing, commercializationand sales, and by repeatedly using our ingenuity. The segment profit margin remained at a highlevel of 34.8%.

10,305

10,0005,000◼ Purchasing progressed favorably, with 64 properties in term-end inventory (55 RP Businessrelated properties and 9 Hotel Business-related properties). ¥64 billion in inventories (¥55.4
billion for RP Business-related and ¥8.5 billion for Hotel Business-related).
*Excluding those related to Overseas Business*In addition to the above, there are 17 RP properties of ¥16.7 billion which were purchased, settled andcontracted by the end of July.

5

30%

30.5%

◼ The average business period was 406 days (+ 55 days from the previous year). Althoughcommercializing efforts to increase the level of rents for buildings have caused the prolonged
business period, they resulted in the high profit margin in sales.

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

40%

15,63615,000

Number of properties
sold

60%

4,769

20%

10%

0

0%
FY ended March
2019
April to June

FY ending March
2020
April to June

(Note 1) "Segment Income" is calculated by deducting specific costs of each segment,
including interest expenses, sales commission and goodwill depreciation expense from
Gross Profit.
(Note 2) Projects of Land Purchase and Development are included in RP inventory.

Sun Frontier Fudousan Co., Ltd.

Operating Results by Business Segment

Rental Building Business (Rental Buildings / Sub-leases)
FY ended
March 2019
April to June

FY endingMarch 2020
April to June

Net Sales

757

852

+ 12.6%

Segment Income

379

359

▲5.2%

50.1%

42.2%

▲7.9% pt

(Unit: 1 million yen)

Profit Margin

Increase/
Decrease

Net Sales
Segment Income
Profit Margin(1 million yen)

1,000

100%

852
800

757

75%

600
50.1%
◼ Inventory rent income increased as the purchasing of RP properties
progressed. Rent revenue increased due to successful efforts to400

attract tenants in the sub-leases business◼ We aim to focus on purchasing properties for the medium and longterm RP projects to increase rent revenue.

50%
42.2%

379

359
25%

200

0

0%
FY ended March 2019 FY ending March 2020
April to June
April to June

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6

Sun Frontier Fudousan Co., Ltd.

Operating Results by Business Segment

Real Estate Service Business(Unit: 1 million yen)

FY ended
March 2019
April to June

(Property Management (PM) / Building Maintenance (BM)/ Brokerage / Leasing)

FY endingMarch 2020
April to June

Increase/
Decrease(1 million yen)

Net Sales
Segment Income
Profit Margin

1,000

788

Net Sales

844

100%

+ 7.1%

844
Segment Income
Profit Margin

459

544

+ 18.5%

58.2%

64.4%

+ 6.2% pt

800◼ In PM and BM businesses, we provide our clients with high added value
services by meticulously taking care of tenants, solving any and all problemsof our clients as well as improving revenues from building management. Thus,
our PM and BM businesses have expanded the tenant and business bases ofthe building owners in central Tokyo and contributed to the revenue of thewhole group.

80%
64.4%

600

<PM and BM Businesses>

788

58.2%
544

60%

459
400

40%

200

20%

0

0%

[Number of PM Managing Buildings and Occupancy Rate]
End of June 2017
End of June 2018
End of June 2019

[Number of Managing Buildings][Occupancy Rate]

369 buildings
381 buildings
374 buildings

95.9%
95.9%
97.6%

<Brokerage and Leasing>◼ Both Net Sales and Income increased compared to the same period of theprevious year. The brokerage business has contributed to the revenue of thewhole group, working as driving force to create high added values from theclient’s point of view in terms of the process of purchasing, commercializationand sales.
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

7

FY ended March 2019 FY ending March 2020
April to June
April to June
Sun Frontier Fudousan Co., Ltd.

Operating Results by Business Segment

Operation Business (Hotel Management and Conference Room Rental Business)
FY ended
March 2019
April to June

FY endingMarch 2020
April to June

Net Sales

903

1,277

+ 41.5%

Segment Income

133

108

▲18.9%

1,200

14.8%

8.5%

▲6.3% pt

1,000

(Unit: 1 million yen)

Profit Margin

Increase/
Decrease(1 million yen)

1,400

Net Sales
Segment Income
Profit Margin
40%
1,277

30%
903

<Hotel Operation Business>◼ Net Sales saw a 36% increase. Sales of Tabino Hotel Hida-Takayama and Tabino
Hotel Sado which opened last year were main reasons for the increase. On theother hand, Segment Income decreased because of the start-up expenses of
HIYORI Hotel Osaka Namba Ekimae (opened in May) and Osaka Honmachi Hotel(scheduled to open in October).
◼ HIYORI Hotel Osaka Namba Ekimae, that opened in late May showed steady
growth in unit price of guest rooms and occupancy rate, which will make asignificant contribution to our revenue in the future.

800
20%
600

14.8%

400

8.5%

10%

<Conference Room Rental Business>◼ Vision Center Shinjuku and Kanda newly opened in June. The number of thesites has expanded to 17 in total as of today. We will further accelerate thepace of opening new facilities especially in the five wards of central Tokyo.

200◼ We launched a smart conference room brand, “Vision Room,” which areequipped with an automatic entry/exit function and others. We will make thebrand more compact and flexible, which is easier to open than the existing
brands, aiming for further business expansion.

0

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8

133

108
0%

FY ended March 2019
April to June

FY ending March 2020
April to June

Sun Frontier Fudousan Co., Ltd.

Operating Results by Business Segment

Others(Rent Guarantee, Construction and Overseas Business, etc.)
FY ended
March 2019
April to June

FY endingMarch 2020
April to June

Net Sales

303

335

+ 10.3%

Segment Income

192

41

▲78.5%(Unit: 1 million yen)

Increase/
Decrease(1 million yen)

400

Profit Margin

63.3%

12.3%

▲51.0% pt

Net Sales
Segment Income
Profit Margin
100%
335

300

303

75%

63.3%
<Rent Guarantee Business>◼ The number of new and renewed guarantees handled, remained steady,which has led to higher Net Sales and Income. With the major revision ofdebt-related provisions (to be enforced in 2020), as demand forinstitutional guarantees is expected to increase, we will enforce seminars
and other events for building owners, which will develop new opportunities
to expand our client base and create new added values.

200

192

50%

<Construction Business>100◼ Both Net Sales and Income increased by adding the sales of "Kouwa
Corporation," which became a consolidated subsidiary through M&A in January.

12.3%

25%

41

<Overseas Business>◼ Unrealized losses of certain assets we hold in Indonesia were recognized,

0

considering their current profitability.
◼ Interior finishing work is under way for completion of a condominium project,
HIYORI Garden Tower in Da Nang in November.

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

90%
FY ended March 2019

FY ending March 2020

April to June

April to June

Sun Frontier Fudousan Co., Ltd.

Trends in Key Management Indicators■Changes in Ordinary Income Ratio■Changes in Equity Ratio(Pursuing High-Value-Added Management)(Building a Stable Financial Base)(Unit: 1 million yen)
70,000

29.9%
30%

売上高
Net Income
Ordinary Income
経常利益
Ratio of ordinary income
経常利益率(Unit: 1 million yen)

60,000

22.9%

22.7%
22.0%

70%

full-year forecast

24.0%

60,00080%

純資産
Net Assets
Equity Ratio
自己資本比率25%

50,00050,000 20.2%

56.2%

55.7%

56.0%

60%
53.2%
50.3%

20%

52.9%
50%

40,00040,00040%

15%30,00030%

30,00010%
full-year forecast

20,00020%
20,0005%

10,00010%

0%02015/3

2016/32017/3

2018/3Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

2019/3

10,0002019/62020/30%
2015/310

2016/32017/3

2018/3

2019/3

2019/62020/3

Sun Frontier Fudousan Co., Ltd.

2) Business Environment

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11

Sun Frontier Fudousan Co., Ltd.

Business Environment
1． While the global economy is slowing, the risk of a rapid decline has eased and slow growth will continue for the time being.
◆The IMF has lowered its forecast for world economic growth in 2019 4 times in a row to 3.2%, which shows a strong decelerating trend.
◆With the trade friction between the United States and China and the slowing economic growth in China and Europe, a downward risk of world
economy is smoldering.
◆Attention also should be paid to the impacts on the real economy which are caused by of the political turmoil, such as the deteriorating relation
between Japan and Korea and the Brexit.

2． Although the Japanese economy continues to grow at a moderate pace, the outlook remains uncertain due to the impact of the global economy.
◆While the Japanese economy continues to expand for the longest time after the end of World War II, its environment maintains a sense of
caution due to the slowing growth of the world economy.
◆The number of foreign visitors to Japan keeps renewing its record high. This good trend has continued since the visa requirements for Chinese
citizens were eased in January.
◆Attention should be paid to the effects of the consumption tax hike scheduled in October, changes in the FRB’s monetary policy, and the trendof exchange rate (strong yen).
3． As for the office building market in central Tokyo, its vacancy rate is in the historically low level and the demands for office spaces still continue.
◆Rent hikes are expected to continue modestly as demand for office space remains firm due to steady corporate performance and the increase ofshared offices and others.
◆The vacancy rate is in the lowest level for the first time in 28 years since 1991. It is showing a sign of bottoming out, but the demands for officespaces still continue.
◆Attention should be paid to the future trend because financial institutions’ lending attitudes toward real estate have become cautious and sometrading transactions have been declining.

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12

Sun Frontier Fudousan Co., Ltd.

Trends in Office Rents and Vacancy Rate in the 5wards of central Tokyo
(%)

(Yen)

Average rent (yen/tsubo)

The average rent
in June 2019
21,518 yen
Increase for 66 consecutive
months(+ 32.8% from the bottom)

Average vacancy rate (%)

Peak of the vacancy rate
9.43%
June 2012
Peak ofthe average rent
22,901 yen
August 2008
Peak ofthe vacancy rate
8.57%
August 2003
Bottom ofthe average rent
16,207 yen
December 2013
Bottom ofthe average rent
17,526 yen
October 2004

Bottom ofthe vacancy rate
2.49%
November 2007

The average vacancy ratein June 20191.72%
7.71% points improved in 7 years*Source: Prepared by our company based on Miki Shoji’s "Office Reports.“ Subjects are office buildings with a standard floor space of 100 tsubo or more in the 5 wards in Central Tokyo.

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

13

Sun Frontier Fudousan Co., Ltd.

3) Current Progress and Future Policies
Our Belief~ Not for profit, but for trust ~Business is a competition of usefulness.
How many people can we be of service to?

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14

Sun Frontier Fudousan Co., Ltd.

Medium-term Management Plan

We aim for steady achievements and sustainable growth.
As we go ahead with our strategy for the fiscal year ending March 2023,
we aim for not a temporal achievement but for“steady achievements with profitability, safety and growth”
followed by “sustainable and steady growth”.
<Basic policy>
Development of Business Focusing on Urban Areas and Growth Markets<Three Policies>① To deepen and expand “office building business in central Tokyo”
which has strong influences② To focus on growth markets of “hotels and Asia”③ To actively utilize “M&A” to accelerate a growth of our company<Quantitative Target>
Fiscal Year ending March 2023

(1 million yen)

100,000

Net Sales

100 billion yen

80,000Ordinary Income

20 billion yen

60,000Net Income
Capital Adequacy
Ratio
Ratio of Ordinary
Income14 billion yen
50% or more
20% or more

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

40,000To achieve stable growth over the medium to longterm, we will strengthen creation andmanagement of real estate value and build ourfirm revenue structure based on

Changes over the Most Recent 7 Years and Targets for FY 2023

Net
売上高

Ordinary
経常利益

Sales

Income100,000

70,00053,29140,39447,46327,741 30,625

20,00017,772
14,00020,000 10,580
10,755 12,813
8,894
4,341 5,593 7,024
2,039
0Stage 2020/3
Stage 2023/3
2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 (Forecast)
2020/3 2021/3・・・・2022/3 (Forecast)
2023/315

Sun Frontier Fudousan Co., Ltd.

Q1 Review

Progress significantly ahead of full-year forecasts
The number of buildings sold in RP Business is ahead of schedule compared with the full-year sales plan. In
addition, Profit Margin is further improved and thus, Net Sales and Incomes nearly doubled to renew theirrecord high.
[Ordinary Income] Changes of Annual Forecast and 1Q Progress[Replanning Business] Changes return on cost
60%

Full-year Forecast
Q1 Progression Rate
Q1 Result

Return On Cost (after deducting sales commissions)

55%

50.6%

50.7%

50%

49.6%
44.8%

45.0%

53.9%

42.9%

45%
Q１ Resultfirst quarter results

40%

38.4%

35%

37.3%

first quarter results

32.7%

30%
25%
20%

24.9%
1H

2H

2015/3

1H

2H

2016/3

1H

2H

2017/3

1H

2H

2018/3

1H

2H

1Q

2019/3 2020/3

The results of the First Quarter are ahead of the full-year plan, preparing for possible market fluctuations
We will concentrate on the management to realize both growth and stability by managing risks as well asbold challenges and thus by developing our capacity not to grow in short-time but to improve the valuesof real estate substantially for a long-term period.
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

16

Sun Frontier Fudousan Co., Ltd.

Business Policy

Focusing on the central Tokyo area and small and medium-sized office buildings,
we continuously keep refining our company's unique strengths.

Our business begins with “solving problems from the clients’ point of view.”=> We focus on the business area where we can exert our influence and keep on refining our strength togrow the business and make it highly profitable.
20 years of
establishment

10 years of
establishment
early stage ofestablishment

Securitizat
ion of realestateBrokerage

RentalBuilding

Office Building
Business In
Building
Central Tokyo
RentalPM

Replanning

Brokerage

Office Building
Business In
Central Tokyo

Constructi
onPM

LeasingRent
guarantee

RentalAssetsBuilding

consulting

Office Building
Constructi
Business In
on
Central TokyoSub

Leasing
Sub

Leasing

Securitizat Replanningion of real
Brokerage
estatePMBM

Leasing
rentalconference

room

Rent
guarantee

Leasing We will find and thoroughly refine business areas where we have strong influence in new
businesses such as hotel and overseas which we are working on now.
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

17

Sun Frontier Fudousan Co., Ltd.

Business Policy

To achieve a firm revenue structure based on“both Flow (short term and high returns) and Stock (long-term and accumulation) Businesses”
Image of Net Sales’ growth Years in 4 years from now
RentalConference Rooms ・Rent Guarantee, etc.
1.48 billion yen

FY ended March 2019
Total Net
Sales 53.2
billion yen

Hotel Management
2.98 billion yen

Rental Building
2.98 billion yen

Stock

9.5 billion
yen
PM・BM (*)
2.11 billion yen

FY ending March 2023

RentalConference Rooms ・Rent Guarantee, etc.
4 billion yen (about 2.7 times）

Rental Building
5 billion yen

Stock

Total Net Sales
100 billion yen
About 1.8 times

27 billion yen
Hotel Management(About
2.8 times)

PM・BM
4 billion yen

14 billion yen(about 4.7 times)*PM: Property Management
BM: Building Maintenance

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18

Sun Frontier Fudousan Co., Ltd.

Growth Strategies of 'Four Arrows'
1) Expansion of Core
Business

office building business

2) Hotel BusinessTo develop accommodation hotels
for tourism and business3) Overseas
Development

Vietnam and Indonesia

To deepen and expand

To expand the existing businesses4) M&A
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

and develop their peripheral services
19

Sun Frontier Fudousan Co., Ltd.

Expansion of Core Business～To deepen and expand office building business～

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

20

Sun Frontier Fudousan Co., Ltd.

1) Expansion of Core Business
To Deepen and Expand the Office Building Business

For Office Building Business, Net Sales target for FY ending March 2023: 80 billion yen<Replanning Business>
We aim to deepen and expand our Building Revitalization Business by specializing in small andmedium-sized office buildings in central Tokyo and improving our capacity to generate added values.
We will also challenge new construction business.
<Real Estate Service Business (Leasing, Property Management, etc.)>
Being kind and polite, contributing to building owners with specialized services unparalleled by ourcompetitors. By repeatedly delivering solutions to their small concerns, we deepen our bonds withthem to become a trusted real estate partner with whom our clients feel free to consult on any
topics.
Our strength lies in a client base of office building owners in central Tokyo.
<Conference Room Rental Business>
Leveraging our expertise and experiences to improve added values of office buildings, we are rapidly
expanding the sharing business, such as conference room rental business that utilize vacant spaces
and idle times.

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

21

Sun Frontier Fudousan Co., Ltd.

To create differentiated added values

Consistent Office Building Business① In vertical real estate utilization business, we survey and solve difficulties by listening to our client’s concerns.
② In horizontal real estate revitalization business, we put together our know-how and the our client’s needs learned
from the process above. We apply this knowledge to transform the existing buildings that we purchased into higher
value products, and then to re-sell them.

Fund-Raisin Advisoy

Asset Consulting

Rent Guarantee

Construction Plannng

Property Management

Leasing

Brokerageacquisitionof property②
Real Estate
Revitalization
Value added
products① Real Estate Utilization
To be a partner to solve difficulties from our client’s
perspectives

Clients (Building owners, Asset owners and Wealthy individuals)
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

22

Sun Frontier Fudousan Co., Ltd.

~ Meguro Revenues Building ~- A Case of Replanning -Conversion of a whole building into a licensed nurseryschool that meets local needs
We are currently leasing one of our buildings as a whole to a nursery school management company. We attracted asocially conscious tenant to a building which is located within two-minute walk from the nearest station andrevitalized it to the building needed by the local community, securing stable profits over the long term.
The population in Meguro Ward is growing every year, and its birthrate is higher than the national average. There isa high need for childcare in the area. This is an example of revitalization to meet local needs.
After

Before▲nursery[Before]

3FL _

1FL _

[After]officenursery school

officenursery school

office▲Toilet for infantsRoads

nursery school

Change of use of office buildings to childcare facilities (conversion)
At the same time, large-scale external wall repairs and ELV and staircase
installation were carried out.

▲entrance

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

23▲kitchen

Sun Frontier Fudousan Co., Ltd.

- Leasing Business -Expanding Our Network Focused on Local
Communities in Central Tokyo
1.

2.

3.

4.

Specialized in small and medium-sized office buildings incentral Tokyo
We have expanded to 12 branches mainly in central
Tokyo (+ 2 branches year-on-year).
We are good at careful tenant placement by having close
ties with the local communities and utilizing our local
knowledge.
Shinjuku

Courtesy extended to our clients have come to trust andwe have become “the partner for their real estate
management.”
Shibuya
We are their trustworthy point of contact to consult andEbisu
solve any of their problems.

Akihabara

Ikebukuro

Kodenma-cho

Kanda

Kudan

Nihombashi
Tokyo

Kojimachi
Hibiya Head
OfficeAoyamaAkasaka

Toranomon

Ginza

ShimbashiNew

We have understood our tenants’ needs and significantly
contributed to full occupancy of the properties ofReplanning business.

MeguroHamamatsucho

GotandaWindows to purchase properties for revitalization
business.
We have often purchased buildings directly from ourclients through consultation on their problems ofinheritance and aging buildings.

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Ueno

Shinagawaare locations of the core branches.
are locations of new branches.

Yokohama
Hamamatsucho tenant building appearance

24

Sun Frontier Fudousan Co., Ltd.

- Property Management Business -Floor Space and Occupancy Rates of Buildings
Entrusted by PM
100%

98.1%

Entrusted floor area (Right Axis)
Occupancy rate entrusted assets (Left Axis)
occupancy rate in the 23 wards of Tokyo (Left Axis)

800,000(As of the end of July 2019)98.4%(As of July 1, 2019)

98%

700,000

Operating rate of our PM entrusted
properties

96%

600,000

94%

500,000

Average occupancy rate of medium-sizedbuildings in 23 wards in Tokyo

92%

400,000

90%

Top Companies in Terms of Number ofContracted Owners*

88%

86%

300,000<2018 PM Client Rankings>

Our strength, “abilities to solve comprehensive problems regarding real estate” isexerted when to receive many consultation from our clients about their building
renovation and replacement due to approximately 85% of their entrusted properties to
our PM are more than 20 years old and so.

2018

2017

1

vortex

690

606

2

Xymax

495

422

3 Sun Frontier Fudousan Co., Ltd.

271

268

4

Japan Property Solutions

178

170

5

Ken Corporation

130

130

84%

200,000

100,000

0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

March 2009

March 2010

March 2011 March 2012 March 2013 March 2014

March 2015 March 2016 March 2017 March 2018 March 2019 March 2020

*Source: Our research based on "Monthly Office Market Research Report" by Sanko Estate Co., Ltd., for the average occupancy rates of medium-sized buildings in 23 wards in Tokyo.
*Operating rate: (Total operating area)/(Total lent available area).
*Source: PM Client Ranking is based on the November 2018 issue, "Monthly property management."
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

25

Sun Frontier Fudousan Co., Ltd.

- Conference Room Rental Business -Expanding the sharing business to utilize space
Our business objective is “to contribute to the Japanese economy as infrastructure, supporting cooperate
activities in central Tokyo.”
Rental conference room (Vision Center)
Rental Office (Vision Office)Coworking (Vision Works)

・・・ 10 sites

VO Kanda
Vo Kanda ANNEX

・・・ 4 sites

New

Smart Conference Room (Vision Rooms)

VC Tokyo Nihombashi

Kanda
Nihombashi

VC Shinjuku
Shinjuku

VC Tokyo Ekimae●VC Shinjuku

VC Yaesu South ExitTokyo

VC Nagatacho

VC Kanda

VR Nihombashi Kayabacho・・・ 3 sites

New

New

Vo Shinjuku

VR Yaesu Central Entrance
Yurakucho
Nagatacho

VW Tokyo Yurakucho
Hamamatsucho

VC Yokohama
Shinagawa
Yokohama

VC Tokyo Yurakucho
VR Hamamatsucho

Tamachi

VC Tamachi

VC Hamamatsucho◆ We newly launched VC Shinjuku and VC Kanda in June and a new management brand, "Vision
Rooms" in August, making the total number of the sites 17 with 6,100 seats.
◆ We plan to expand the number to 45 by the end of March 2023.

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

26●VC Kanda*The seat number of rental conference rooms is
calculated, using the school format (three-seat per desk.)
Seats allocated in a square shape are calculated for therooms to which the school format cannot be applied.

Sun Frontier Fudousan Co., Ltd.

The Hotel Business
Proactive Expansion into Growth Markets

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

27

Sun Frontier Fudousan Co., Ltd.

2) The Hotel Business
Proactive Expansion into Growth Markets<Theme> Warm-Hearted Hotels
1.
2.
3.

Hotels that grow by their employees
Hotels that grow by listening to their customers
Hotels that grow and fit in with the community

Self-reliance, Cooperation with others andCorporate Social Responsibility
We will continue togrow every day withthese three important factors

Hotels provide a warm, high quality, comfortable and personal service by kind employees who
work from the guests’ viewpoint.

We are aiming to have 5,000 rooms in operation by FY ending March 2023.
Taking advantage of the increasing number of visitors to Japan, we are expanding into urban andregional tourism areas.
<Two Strategies to Increase the Number of Operating Rooms>
1 Our flagship hotel brand "HIYORI HOTELS & RESORTS" is developed from a vacant lot.
We are aiming to become a well-known brand among upper brands.
2) Utilizing revitalization, M&A, and brand change, we will increase the number of guest rooms in a
flexible way to respond to diverse needs and markets.
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

28

Sun Frontier Fudousan Co., Ltd.

- Hotel Business A warm-hearted Hotel” located 2-minute walk from Namba Station on the Nankai Line, convenient for both sightseeing and businessGrand opening of HIYORI Hotel Osaka Namba Ekimae
The hotel is located at the most convenient place for both sightseeing and business just in front of Namba Station on the
Nankai line, only a 38-minute train ride from Kansai International Airport on Limited Express rapi:t. As many foreign visitors
come to Japan for the purpose of sightseeing in Kansai and Osaka areas, we have multilingual staff members to offer the guests
a comfortable stay at the hotel.
We also have many artistic decorations which express images of Japanese hospitality here and there in the hotel building.The
SAKURA Building has a path with a series of torii gates made of natural wood while the MOMIJI Building has a tasteful entrance
decorated with natural stones in the motif of Mt. Fuji and the moon. In the outdoor garden there are natural stones and trees
which present the Japanese seasonal beauty, such as cherry blossoms, autumn leaves and so on. With this warm and relaxing
atmosphere, we welcome our gests to offer them the most comfortable stay.
SAKURA Building
MOMIJI Building

Our staff welcomes you with warmest hospitality.

An artistic decoration in the motif of Mt. Fuji and the moon

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

29

A path with the image of torii

All rooms feature tatami flooring (Family Twin).

Sun Frontier Fudousan Co., Ltd.

- Hotel Business -Large-scale hotels to open one after anotherin this fiscal year
open inofbusiness 2019To
October 2019

Courtyard by Marriott Osaka Honmachi
International brand hotel in central Osaka[Outline of property]

Sky Heart Hotel Premier Kurashiki Mizushima
To open in
February 2020

*Location: Chuo-ku, Osaka City, Osaka Prefecture*Structure: Steel structure, partially reinforced concrete
structure
17-story building with one basement*Number of guest rooms: 193 rooms*Site area: 754.75 m2*Total floor space: 8,194.32 m2

Appearance

A restaurant by a famous chef, a fitness gym, alarge public bath and an open-air bath areavailable.

To open in
December 2019

HIYORI Hotel Ginza Higashi
Our Company 's first hotel development project in
the Ginza area
[Outline of property]

Appearance*Location: Kurashiki City, Okayama Prefecture*Number of guest rooms: 155 rooms

Sky Heart Hotel Premier Kashima
To open in
March 2020

*Location: Chuo-ku, Tokyo*Structure: 11 stories reinforced concrete structure*Number of guest rooms: 135 rooms*Site area: 551.38 m2*Total floor space: 3,725.0 m2

Appearance

An open-air bath and a large public bathoverlooking Ginza and Sky Tree are located on
the top floor.

(Note) The schedule and scale are based on current plans and may be changed in the future.

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

30

Appearane*Location: Kamisu City, Ibaraki Prefecture*Number of guest rooms: 194 rooms

Sun Frontier Fudousan Co., Ltd.

- Hotel Business -Sold out of the registration for “the second sale” of
HIYORI Ocean Resort Okinawa
Hotelappearance
Pertha (distant
Locationon a hill withbeautiful view of the sea
view)

Hotel appearance

Scheduled to open in September 2020
Condominium Hotel with 204 rooms

model room

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

There are an indoor pool, an openair bath and also a gym

a basin running from the lobby to the sea

31

All rooms are suites has a terrace
with an ocean view

Sun Frontier Fudousan Co., Ltd.

- Hotel Business -List of hotels under operation anddevelopment
Ongoing Development to equip 5,000 guest rooms in FY Ending March 2023
Open (Plan)

In operation

April 2016

SSH Nagoya Tokoname

194

1,625rooms

In operation-

Sky Heart Hotel Kawasaki

200

1,220rooms

In operation-

Sky Heart Hotel Koiwa

105

In operation-

Sky Heart Hotel Narita

100

In operation-

Sky Heart Hotel Hakata

159

In operation

April 2017

Hiyori Hotel Maihama

80

Renting-Toyama210

In operation-

Azuma Sado

57

In operation

May 2018

In operation-

In operation
In operation<Domestic Hotels>

Running
Under construction
Planning

330rooms

3,175rooms

Total*As of August 8, 2019*"Running" is the total of “In operation" and “Renting" in theright table.

Sado (Chigusa)
Sado (Azuma)

KashimaTakayama
Kyoto Nijo
Kyoto Shijo

Ishigaki
IslandMaihamaOsaka Honmachi
Osaka Namba

Miyako Island

NaritaMizushima
Shimonoseki

Koiwa
Ginza Higashi

HakataTokoname
In operation or in lease

Kawasaki

Under construction or planning

Hotel Name Location

Tabino Hotel Takayama

80

Sky Heart Hotel Shimonoseki

105

July 2018

Tabino Hotel Sado111

May 2019

Osaka Namba Ekimae

To open in this FY

ToyamaOnna, Okinawa

No. ofRooms

Status224

To open in this FY

Under
construction

October 2019

Osaka Honmachi

Under
construction

December
2019

Ginza Higashi

Under
construction

February 2020

Kurashiki Mizushima

Under
construction

March 2020

Ibaraki Kashima

Under
construction

September
2020

Onna, Okinawa

204

Under
construction

December
2020

Kyoto Nijo Kawaramachi

205

Under
construction

April 2022

Kyoto Shijo Kawaramachi

134

Planning

April 2021

Miyako-jima

120

Planning

December
2022

Ishigaki Island

210

193

135
155
194

*The schedule and scale are based on the current plans and may be changed in the future.

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

32

Sun Frontier Fudousan Co., Ltd.

3) Overseas Business
PJ in progress in Da Nang, Vietnam<Philosophy:"To provide a happy residential environment to people in Asia with our good neighbors">
Providing high-quality housing with sophisticated quality and planning in accordance with the Japanese standards, we will contribute toeconomic development by meeting the growing demand for housing in the region.
No.2 High-rise condominium PJ 'HIYORI Garden Tower'
Night view of Da Nang

To be completed
in November 2019

Completed in January and currently
interior finishing is under construction.

There are seven direct flights a week from
Narita Airport to Da Nang and also sevendirect flights a week from KansaiInternational Airport
There are 247 direct flights a week from
Korea.
There are 24 direct flights a week from China.
Planned Appearance
on completion

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Model Room (living room)

33

This is the area where many companies arewilling to expand business and a resort
which attracts many visiotors from Asia.

Sun Frontier Fudousan Co., Ltd.

4) M&A
To Expand Existing Businesses and Improve Peripheral Services
Accelerate the growth of peripheral businesses by expanding optimal services in line with changes in theenvironment through the introduction of human resources, technologies and platforms in our Group.

<M&A and Business Acquisition Results>
Year

Company name and business name

Overview of Business

①

2010

Sonomamma (just as it is) Office !

Specialized sites for furnished offices

②

2012

Yubi (Current SF Building Maintenance)

Building maintenanceVision Center and Vision OfficeRental conference rooms and offices③

Hotel AU Tokoname(Currently Spring Sunny Hotel Nagoya Tokoname)④

Conference
room rental
business

Hotel

Relatedperipheralbusiness

2016
Sky Court Hotel (Currently Skyheart Hotel)

Hotel

Sado Resort Hotel Azuma

Long-established ryokan (Sado Island)

VIP Nangoku (Currently Sky Heart Hotel Shimonoseki)

Hotel

⑤
⑥

⑦

2018

Okesa Kanko Taxi

Facility

2019

Regeneration,
development,
construction
and operation ofreal estateArchitecture &construction

Taxi and sightseeing bus (Sado Island)

⑧
⑨

Hotel
operation

Kouwa Corporation

Interior finishing work for offices

Sado Biyori

Information site on Sado Island

Residential
Management⑩=> Raise employees’ spirit, motivate them, and revitalize the business by sharing and disseminating the Philosophy
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

34

Sun Frontier Fudousan Co., Ltd.

4) ESG initiatives

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

35

Sun Frontier Fudousan Co., Ltd.

ESG initiatives of Sun Frontier GroupWe will actively promote ESG activities through our business to achieve sustainablegrowth and long-term improvement in our corporate value.

Environment

We revitalize old buildings without destroying them in our Real Estate Revitalization Business, which grows
in harmony with the environment. Utilizing existing real estate stocks, we make efforts to extend the usefullife of real estate and improve their quality.
(377 buildings were revitalized as of the end of June 2019.)
We have opened and managed a furnished office distribution market, “Sonomanma (Just like that!) Office”
since 2010.
We have succeeded in reducing waste materials born from office relocation.

SocialIn our Real Estate Revitalization Businss, we promote the revitalization of buildings for purpose of themost suitable utilization that meets the needs of local communities and society, such as nurseryschools, restaurants, etc.
The countryside has rich tourism resources, including beautiful scenery with full of nature, cultural
assets, original food and others.
Under the slogan, “Cheer up Japan!” we develop Regional Revitalization Business from the aspect of
tourism, building new hotels as a main pillar, utilizing old houses, and discovering new tourism
resources. (We have started it first in Sado Island.)We have established “Nomination and Compensation Committee” as a voluntary advisory body to theGovernance

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Board of Directors in order to improve of objectivity and transparency of the procedures regarding
election and dismissal of the directors and their compensations.
We have improved its monitoring function for the management by appointing 2 outside directors to 2
members out of 3 directors of the committee.
We decided to invite 1 outside director (to be added) and 1 outside auditor at the shareholders’ general
meeting in June. We have 5 independent outside directors out of 10 directors of the board tostrengthen our corporate governance.

36

Sun Frontier Fudousan Co., Ltd.

ESG initiatives of Sun Frontier Group (E)Revitalization of old buildings without destroying them
Development of Real Estate Revitalization Business in Harmony
with the Environment
Our initiatives for Environment through real estate revitalization
We improve their environmental performance through renovation of buildings and equipment
Many of the buildings purchased in Revitalization Business are 20 to 30 years old and they often have old andinefficient facilities equipped. We revitalize those buildings by installing the latest air conditioning systems andLED lighting and renovating their restrooms, and so we reduce their failure risk after sales and, at the sametime, we promote energy saving of the buildings.
[Renovation of air conditioning system]
Removal of oldindoor units

Renewal of theindoor unit

[Renewal to LED lighting]Renewal of the totalheat exchanger

Old lighting(Fluorescent)Renewal to LED
lighting[Example] – a building in Meguro Ward -[Example] – a building in Chiyoda ward -Our Real Estate Revitalization Business is a business in harmony with environment where we don’t simply scrap and build (ierebuild) old buildings, but identify their potential to revitalize them as highly profitable and functional offices buildings so that
we can minimize waste of fossil resources and increase resource productivity.
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

37

Sun Frontier Fudousan Co., Ltd.

ESG initiatives of Sun Frontier Group

Contribution to the Revitalization of Local
Communities and Society [S]We promote the revitalization of buildings for the most suitable utilization thatmeets the needs of society
We identify the needs for childcare services in the areas with a rapidly growing population and convert an old office building into a nurseryschool (We have done it in 5 buildings).
After

BeforeOriginally built for office use

In industry-government-academia cooperation we create a recreational waterfront space where local people can get together.
BeforeAfter

We changed the usage of the first floor from a parking lot to a restaurant and connected it with a boardwalk along the canal,
which creates an attractive waterfront scenery.
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

38

Sun Frontier Fudousan Co., Ltd.

ESG Initiatives of the Sun Frontier GroupRegional Revitalization Business ～Project in progress on Sado Island ～ (S)<We will energize Sado Island through tourism!>
When rural areas are energized, so Japan as a whole will be. As the number of foreign visitors to Japan rapidly
increases, spurred by fascination (culture, history, nature, food, hot springs, hospitality, etc.) that Japan is proud of,
we will take on the challenge of regional revitalization projects that focus on the attractiveness and features uniqueto regions, in particular the regions that possess the “Wonderfulness of Japan.” The first will be Sado, where we arefamiliar with. We have already created over 100 employments.

Sun Frontier Sado Inc.
Hotel
Business

Transportation
Infrastructure Project

Hotel AZUMAHighlight Finding
Project

Tourism and Travel
Business

Kanko
Oyasumidokoro

Okesa Kanko Taxi

Web Advertising
Businesstravel agency

Sado Biyori

Rental Car
Business

Tabino Hotel
Sado
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

39

Sun Frontier Fudousan Co., Ltd.

ESG initiatives of Sun Frontier Group

Enhancement of our Governance System (G)In our company, all executives and employees hold an idea of “right humanity” as their businessphilosophy. Based on this idea, we have implemented the following measures to enhance thesystem.

We have established Nomination and Compensation Committee
We have established “Nomination and Compensation Committee” as a voluntary advisory body to the Board of
Directors in order to improve of objectivity and transparency of the procedures regarding appointment and removalof the directors and their compensations.
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 compliancewith laws and regulations at the time of their sale.
When we acquire properties, we make a comprehensive business judgement, considering not only theirprofitability but their key risks, environmental impact, compliance and others. We have also established ourthree-step checking system to identify risks in a broad context not only by our departments in charge but incooperation with legal and audit departments. As for sale of the existing buildings which are disqualified, we
first make them qualified enough to meet legal compliance requirements and sell them.

We conduct a monthly training on compliance.
We give all the employees a monthly 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 trade,” “prevention of tradeswith antisocial forces,” “information management,” etc. We will devote ourselves to sound business operation.
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

40

Sun Frontier Fudousan Co., Ltd.

Enhancement of our Governance System

Increase outside directors as board members (G)We decided to add 1 outside director to our board of directors in order to enhance our corporate governance at the general
meeting in June. Our outside directors have been selected from those who have abundant experience and knowledge in various
fields and who can fulfill their roles and responsibilities in improving our corporate value over the medium to long term.

Takahara Toshio(Outside Director)
・He has a track record of business expansion and a wealth of experience as the manager of Unicharm Corporation.
・He supervises our management in details from an independent standpoint from our management team who actually executes the operation, and gives us unbiased, shrewd andeffective advice in the decision-making process by the Board of Directors.

Kubo Yukitoshi (Outside Director)
・He is a former head of listing screening at the Tokyo Stock Exchange, a certified public accountant, and has extensive expertise and experience in the Financial Instruments andExchange Act, Companies Act and finance.
・He gives us unbiased and shrewd advice and suggestions as a leading expert on governance and disclosure for a listed company, from an independent standpoint from ourmanagement team who actually executes the operation.

Okubo Kazutaka (Outside Director)
・As a certified public accountant, he is well-versed in corporate auditing and has held various posts, such as a manager of an auditing firm, a member of many civil service groups ofintellectuals, and an executive of several groups in the business community, and has a wealth of insight and experience in such fields as risk management, compliance, CSR andregional revitalization.
・He gives us useful advice and suggestions for the management of our company and supervises it for the sustainable improvement of our corporate value.

Moriya Koichi (Outside Auditor)
・As a lawyer, he has extensive experience in real estate and financial fields, and gives us shrewd advice for the enhancement of our legal compliance system.
・He also has extensive experience as an outside director of Tamura Corporation and Samantha Thavasa Japan Limited.

Tanaka Hidetaka (Outside Auditor)
・He is a U.S. certified public accountant and has extensive overseas business experience.
・Utilizing his rich expertise in the financial industry, his experience as head of overseas subsidiaries of the Industrial Bank of Japan, and his deep insight in such fields as ESG, hegives us objective and shrewd advice for our future overseas development and management in general, including ESG disclosure suggestions he will continue to develop ourcompany 's expertise in the future.Our company will use its audit system from an objective standpoint in relation to overall management including overseas business development
and ESG disclosure.
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

41

Sun Frontier Fudousan Co., Ltd.

5) Company Information and Reference Materials

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

42

Sun Frontier Fudousan Co., Ltd.

Sun Frontier’s Corporate philosophy
Company policy
Altruism

Corporate Philosophy
With a vision to protect all employees and to pursue both spiritual and material happiness.
At the same time, we will contribute to the prosperity of humankind and society with aspirit of symbiosis.
<Corporate Mission Statement>

Three Major Policies
1. Altruism rather than selfishness.
2. To follow the right things.
3. Absolute proactivity.

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

43

Sun Frontier Fudousan Co., Ltd.

Vision and Policy
VisionClients
Core Business

PolicyStrategy

As “professionals of real estate utilization”
we aim to be “the real estate company” of the world’s most
loved, trusted and selected.
Building owners, asset holders, wealthy individuals
Real estate revitalization and utilization
・Not for profit, but for trustl
To solve problems from the clients’ perspective
・To focus on people rather than property
・One-stop solutions to any and all problems
CentralTokyo

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

OfficeStrength44

Tenantmediation

Real estate
revitalization

Effective operation
creativity

Sun Frontier Fudousan Co., Ltd.

Changes in Net Sales, Ordinary Income, andNumber of Employees
Both Net Sales and Ordinary Income remained strong.
The number of employees is steadily increasing.

(1 million yen)

70,000(number of people)

70,000650

売上高
Net Income
60,000700600

Ordinary Income
経常利益53,291

Employee
従業員

48,15050,00047,463500

522

40,39440,00030,62530,00026,87027,741
206

20,0002

681

10,000
1
0

1,771
52
24

0 140

70

3,588
377 501

84
5,003
791

96

16,730134 125

7,760
1,437

152

141

142 139

8,289 6,346

10,580

4,289

3,474

541

329
300

276

14,000223

4,341 5,593

200

12,813

17,772

6,923(3,776)

Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

199

181

14,469(10,000)(20,000)

400

380

35,254

7,024

8,894 10,755

100

799 2,0390(Forecast)(100)(17,794)

45(200)
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 Lsting

November 19, 2004 (Jasdaq Stock Exchange)
February 26, 2007 (First Section of Tokyo Stock Exchange)

Capital Stock ※11,965 million yen

Representative

Tomoaki Horiguchi, President

Number of Consolidated
522 full-time employees (939 including part-timers and temporary workers)
Employees ※Average Age of
Employees※

33.5 years old(※ As of June 30, 2019)

Real estate revitalization

Business Profile:

Real estate Services

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

Hotel development and management
Accounting Month
Listed Market

March
Tokyo Stock Exchange, First Section (Code number: 8934)

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46

Sun Frontier Fudousan Co., Ltd.

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Sun Frontier Fudousan Co., Ltd.

◆ 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 Exchange Act,
Building Lots and Buildings Transaction Business Act, the Listing Rules for the Tokyo Stock Exchange and other related 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 : http://www.sunfrt.co.jp/
Mail : ir-contact@sunfrt.co.jp