Financial Results for the Fiscal Year Ended March 31,
2022

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

1) Overview of the FY ended March 2022

1-112) Earnings Forecast and Growth Strategy

12-153) Medium-term Management Plan, Business
Progress and New Initiatives

16-274) Corporate Philosophy, Sustainability andBusiness Model

28-425) Reference Materials

43-50

May 13, 2022
Securities Code :8934

Overview of Full-Year Results for the FY
ended March 2022
Real Estate Revitalization Business drove performance. Profits exceeded plan.
(Unit: million yen)

Results

Profit Margin

Year-on-Year

Growth Rate

Full-Year Forecast Progression Rate

Net Sales

71,251-+11,618

19.5%

76,00093.8%

Operating Profit

12,12717.0%+4,21453.3%

12,000101.1%

Ordinary Profit

12,21517.1%+4,691

62.3%

11,500106.2%Net Profit*

7,415

10.4%

+3,140

73.5%

7,400

100.2%* ”Net Profit” represents the profit attributable to owner of parent.

Performance Highlights
1) Year-on-year increase in Real Estate Revitalization Business
contributed to achieving the profit targets

2) Real Estate Service Business grew steadily despite the prolonged
pandemic of COVID-19• The number of units sold in RP Business was 21 (23 in theprevious fiscal year). Sales of four relatively large-scale mid- tolong-term properties in high profit margin drove earnings(segment profit margin 29.2%, +4.9%pt year-on-year).
• The Office Division was working hard in commercialization. Soldas a high-occupancy, high-added-value replanning product.
Maintained high quality and generated high profits even in the
pandemic of COVID-19.

• Despite the prolonged period of the pandemic of COVID-19, businessperformance grew mainly in the brokerage business. Both sales(+15.7% year-on-year) and profit (+9.0% year-on-year) increased fromthe previous fiscal year. That was partly due to the earnings
contribution from the acquired subsidiary.
• In the field of small and medium-sized office buildings in central
Tokyo, each division brought together the expertise cultivatedthrough creativity and ingenuity of each field and developed thebusiness while cooperating. Despite the prolonged pandemic of
COVID-19, we have accumulated achievements that are useful toclients by solving problems.

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1

Trends in Consolidated Results
Operating profit, ordinary profit, and net profit saw a V-shaped recovery fromthe pandemic of COVID-19. Ordinary profit margin improved to 17.1%.
Increased year-end dividend by 2 yen.
(Unit: Million yen)
FY ended
March 2018

FY ended
March 2019

FY ended
March 2020

FY ended
March 2021

FY ended
March 2022

Net Sales

47,46353,291

73,21859,632

71,251

Operating Profit

11,23913,305

16,571

7,912

12,127

Ordinary Profit

10,755

12,813

16,127

7,524

12,215(Ordinary Profit Margin)(22.7%)(24.0%)(22.0%)(12.6%)(17.1%)Net Profit*

7,420

8,783

10,666

4,274

7,415

Earnings per share

167.62 yen

180.35 yen

219.03 yen

87.77 yen

152.26 yen

Dividend per share

33.50 yen

38.50 yen

42.00 yen

42.00 yen

44.00 yen
(Forecast) * 2* "Net Profit" represents the profit attributable to owner of parent.
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* 2 See page 15 for details.

2Trends in Achievement Rate of Disclosed Budget
Ordinary profit continues to steadily achieve the budget at the beginning of the fiscal year.

(million
25,000yen)

120.0%

115.8%

115.2%

20,000106.2%
108.5%

108.6%

107.6%

16,127

15,00010,0008,894

10,000100.0%

15,50012,813
10,755110.0%

12,21514,00011,80011,50090.0%

10,700

7,524

8,200
6,500

5,000

7,100

80.0%

0

70.0%

17/3

18/3

Disclosed budget (L axis)

19/3

20/3

Upward revision (L axis)

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3

Result (L axis)

21/3

22/3

Achievement rate
ratio (R axis)

Trends in Key Management Indicators■ Changes in Ordinary
Profit Margin■ Changes in Equity Ratio■ ROE(Building a Stable Financial Base)(Striving to improve capital efficiency)(Pursuing High-Value-Added Management)
売上高（左軸）Net Sales (L axis)
Ordinary Profit (L axis)
経常利益（左軸）(million yen)

Ordinary Profit Margin (R axis)
経常利益率（右軸）80,000Net Assets (L axis)
純資産（左軸）自己資本比率（右軸）Equity Ratio (R axis)(million yen)

30%

ROE

80,000

80%

20.0%

17.6%
70,00022.7%

70,000

24.0%

17.7%

25%

22.0%

60,00070%

16.8%

60,00017.1%

50,00012.6%

40,00020%

15%30,00053.2%

50,00060%

50.3% 49.6%

15.0%

52.3% 52.2%

10.8%

50%

40,00040%

30,00030%

20,00020%

10,000

10%

10.0%

10%
20,0005%
10,000
0

0%
18/3

19/3

20/3

21/3

0

22/3

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0%
18/3

19/3

20/3

4

21/3

22/3

6.5%

5.0%

0.0%
18/3

19/3

20/3

21/3

22/3

Consolidated Income Statement(Unit: million yen)

Net Sales
Real Estate Revitalization Business
Replanning Business
Rental Buildings Business

Real Estate Service Business
Hotel and Tourism Business
Other Business
Adjustments

Gross Profit (Loss)
Real Estate Revitalization Business
Replanning Business
Rental Buildings and Sub-leases

Real Estate Service Business
Hotel and Tourism Business
Other Business
Adjustments

Selling, General and Administrative
Expenses
Operating Profit (Loss)
Non-operating Income
Non-operating Expenses
Ordinary Profit (Loss)
Extraordinary Income and Loss
Income Tax
Profit Attributable to Non-controlling
Interests
Profit Attributable to Owners of Parent

FY ended FY ended Year-on-year Composition
Ratio
Mar 2021 Mar 2022
Change19.5%
100.0%
59,632
71,251
54.2%
78.0%
36,28455,95833,791
53,834
59.3%
75.1%
2,492
2,124
-14.8%
3.0%
15.7%
10.0%
6,182
7,154
-48.5%
9.6%
13,4196,911-59.8%
2.4%
4,221
1,695
-475
-467
28.3%
100.0%
15,083
19,344
72.6%
81.0%
9,880
17,053
8,971
16,517
84.1%
78.5%
908
535
-41.1%
2.5%
9.4%
18.2%
3,493
3,822
1,343
-1,503-72.0%
0.8%
611
171
-245
-199
7,170

7,216

0.6%

7,912
270
658
7,524
-61
3,224

12,127614
526
12,215
-80
4,726

53.3%
127.2%-20.1%
62.3%
46.6%

-36

-6

-

4,274

7,415

73.5%

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Income Statement Points<Real Estate Revitalization Business>
In the RP Business, we sold four relatively large-scalemedium- to long-term properties. Although thenumber of sales decreased from the previous fiscal
year, both sales and profits increased significantly fromthe previous fiscal year. Gross profit margin was 30.7%,
the same level as before the pandemic of COVID-19.

<Real Estate Service Business>
Both sales and profits increased in each business due
to increased opportunities to respond to clients’changing needs and solve their problems in the
pandemic of COVID-19.

<Hotel and Tourism Business>
The Hotel Operation Business posted a loss due to the
opening costs associated with opening three newhotels and the prolonged pandemic of COVID-19.
Sales of properties contributed to the performance inthe previous fiscal year, resulting in the large
reactionary decline.

5Consolidated Balance Sheet - Assets <Cash and deposits> Increased 8.5 billion yen due to progress in conversion to cash, mainly through sales of medium- to long-term RP properties.
<Inventories>

Decreased 8.7 billion yen due to sale, etc., of which, the number of RP projects decreased 7.9 billion yen due to sales
exceeded purchase. The number of hotel projects decreased slightly due to sales progress in HIYORI OCEAN RESORTOKINAWA, etc.

<Non-current assets> Increased 8.2 billion yen due to the purchase of properties for rent income and the progress of hotel property construction.

FY 2020
As ofMarch 31, 2020

FY 2021
As ofMarch 31, 2021

FY 2022
As ofMarch 31, 2022

Other Current assets
Non-current assets

113,842
18,627
91,766
71,35317,0193,395
3,448
16,450110,785
21,50886,087
71,34913,917821
3,189
16,700110,92030,05377,34063,424
13,516220
3,527
25,591+135+8,545-8,747-7,925
-401
-601
+337
+8,891

Property, Plant and Equipment

10,413

10,52818,796+8,268

712

701

572

-128

5,324

5,470

6,222

+752

130,293

127,485

136,512+9,026(Unit: million yen)

Current assets
Cash and deposits
Inventories
Breakdown) RP
Hotel
Overseas, etc.

Intangible assets
Investments and Other assets

Total assets

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Increase/decrease(compared toMarch 31, 2021)

Consolidated Balance Sheet- Liabilities /Equity <Interest-bearing debt>
Increased 3.5 billion yen due to borrowing associated with purchase and construction
progress. Interest-bearing debt balance was 51 billion yen.

<Net assets>

Increased 4.6 billion yen mainly due to profit (7.4 billion yen) despite the paymentof year-end dividend (2 billion yen) and interim dividend (1 billion yen).

Changes of Equity Ratio
End of FY
March 2020

End of FY
March 2021

End of FY
March 2022

49.6%

52.3%

52.2%

FY 2020
As ofMarch 31, 2020

FY 2021
As ofMarch 31, 2021

Current liabilities

18,052

13,358

16,210+2,852

Short-term borrowings, etc.

4,463

5,530

6,874

+1,344

Income Taxes payable, etc.

3,566

901

3,528

+2,627

Other Current liabilities

10,022

6,926

5,807

-1,119Non-current liabilities

47,43144,35445,849+1,495Long-term borrowings and Bonds payable

44,90641,991

44,169+2,178Other Non-current Liabilities

2,525

2,363

1,680

-683

Total Liabilities

65,48357,71262,060+4,347

Shareholders' equity

64,69066,916

71,260+4,343

119

2,856

3,191

+335

Total Net assets

64,80969,77374,452+4,679Total Liabilities and Net assets

130,293

127,485

136,512+9,026(Unit: million yen)

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7

FY 2022
As ofMarch31, 2022

Increase/decrease(compared toMarch 31, 2021)

<Replanning Business>◼ Although the number of sales decreased to 21 units from the same period of(million yen)
the previous fiscal year (23 units), the profit increased due to the sales of
medium- to long-term properties with high-profit margins.
◼ The average business period was 671 days (up 139 days year-on-year). The
60,000policy of the one-year business period (one-year holding period) of ordinary
RP properties remains unchanged.
* In addition to the number of stocks at the end of FY2021 as shown below, there are 8
properties (11.8 billion yen) that have already been contracted for purchase by the endof March,2022.

Replanning Business

33,791

53,834+59.3%

Rental Building Business

2,492

2,124

-14.8%

Segment Profit (Note 1)

9,111

16,262+78.5%

Replanning Business

8,202

15,727+91.7%

908

535-41.1%

Profit Margin

25.1%

29.1%

+4.0%pt

Replanning Business

24.3%

29.2%

+4.9%pt

Rental Building Business

36.4%

25.2%

-11.2%pt

Number of properties purchased

21

21

-

Number of properties sold23

21

-2 cases

54 (Note 2)

54 (Note 2)-

Number of stocks at the end of FY

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8

55,95850,000<Rental Building Business>◼ In the Rental Building Business, sales decreased due to the sale ofmedium- to long-term properties that had been generating rent income.
New properties were purchased for rent income.
FY ended
FY ended
Increase/(unit: million yen)March 2021
March 2022
Decrease
36,28455,958+54.2%Net Sales

Rental Building Business

Net Sales
Segment Profit
Profit Margin

40,00030,00050%40%36,28429.1%
25.1%

20,00010,00060%

16,262
9,111

0

30%
20%
10%
0%

FY endedMarch2021 FYFY ended
March
2022
FY
ended
March
ended
March
2021
2022
(Note 1) “Segment Profit” is calculated by deducting specific costs of each segment,
including interest expenses, sales commission and amortization of goodwill from grossprofit.
(Note 2) Projects of land purchase and development are included.

(Property Management, Building Maintenance, Brokerage, Leasing, Rental Conference Room, Rent Guarantee, etc.)<Property Management / Building Maintenance>◼ The PM business saw a slight decrease in sales and profit partly due to(million yen)increased vacancies affected by the pandemic of COVID-19.
◼ Both sales and profit increased in the BM business due to M&A and an
8,000
increase in entrusted properties.
<Brokerage>◼ Sales and profit increased in Brokerage due to steady progress in winning7,000
referrals from other divisions.
◼ Sales and profit increased in Leasing due to a rebound from the same period
6,000of the previous fiscal year, when office relocation stagnated.
<Rental Conference Room>◼ Sales increased due to enhanced services, but profit decreased slightly due
to increased costs for new store openings and floor expansion.
<Rent Guarantee>◼ Profit Increased due to a decrease in number of delinquent payments in the
pandemic of COVID-19 and an improvement in profit margins.

4,000

Increase/
Decrease

2,000

Net Sales

6,182

7,154

+15.7%

1,000

Segment Profit

3,490

3,803

+9.0%

56.5%

53.2%

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-3.3%pt

9

7,154
6,182

60%

56.5%

53.2%
3,803
3,490

40%

3,000

FY ended
March 2022

Profit Margin

80%

5,000

FY ended
March 2021

(Unit: million yen)

Net Sales
Segment Profit
Profit Margin

20%

0

0%
FY ended March 2021

2021/3期

FY ended March 2022

2022/3期

Operating Results by Business Segment

Hotel and Tourism Business (Hotel Development, Hotel Operation, etc.)<Hotel Development Business>◼ In HIYORI OCEAN RESORT OKINAWA sales, 43 rooms weredelivered (cumulative sales: 202 rooms / total 203 rooms). Posted
segment profit of 230 million yen (Profit margin 9.3%).
<Hotel Operation Business>◼ As tourism demand did not recover, occupancy rates and room
rates were sluggish mainly in urban hotels. Start-up expenses
were recorded for three new hotels in the first and second
quarter of the fiscal year. The fourth quarter also suffered a large
loss due to the impact of Omicron variant.

Net Sales(million yen)Segment Profit
Profit Margin

16,00040%
13,41930%

12,00020%
8,000

FY ended
March 2021

FY ended
March 2022

Increase/
Decrease

Net Sales

13,4196,911-48.5%

Hotel Development Business

11,3782,548-77.6%

Hotel Operation Business

2,041

4,363

+113.8%Segment Profit

710-1,950-Hotel Development Business

2,216

238

- 89.3%

Hotel Operation Business-1,506-2,188-

Profit Margin

5.3%

-

-

Hotel Development Business

19.5%

9.3%

- 10.2%pt

Hotel Operation Business, etc.

-

-

-

(Unit: million yen)

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10

6,911
10%

5.3%
4,000

0%
710
0

-10%
▲ 1,950-4,000-20%
FY ended
March 2021
FY 2021

FY ended
March 2022
FY 2022(Note 1) “Segment Profit” is calculated by deducting specific costs of eachsegment, including interest expenses, sales commission and amortizationof goodwill from gross profit.

Operating Results by Business Segment

Other Business (Construction Business and Overseas Development Business, etc.)<Construction Business>◼ Profit increased due to the performance of Communication(million yen)

Development Inc., whose shares were acquired through M&A in

5,000

the previous fiscal year. Profit margin also improved.

Net Sales
Segment Profit
Profit Margin

40%

4,221

<Overseas Development Business>

4,000
30%

◼ Both sales and profits declined due to the previous year’s
rebound from the high-rise condominium project in Da Nang,

3,000

Viet Nam (Net sales: 2.57 billion yen, Profit: 0.62 billion yen).

20%(Unit: million yen)

FY ended
Mar 2021

FY ended
Mar 2022

Increase/
Decrease

2,000

13.3%

1,695
10%

Net Sales

4,221

1,695

-59.8%

1,000

562
Segment Profit

562

101

-81.9%

6.0%
101

0
Profit Margin

13.3%

6.0%

-7.3%pt

0%

FYended
ended
March
FY
March
2021
2021

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11

FY
endedMarchMarch
FY ended2022
2022

Earnings Forecast and
Growth Strategy

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12

Business Environment Awareness1. In the global economy, the situation in Ukraine, China’s Zero-COVID-19 Policy, and monetary tightening weighon the economy.
◆Rising food and energy prices are accelerating inflation due to the situation in Ukraine.
◆Interest rates will rise due to the quantitative monetary tightening by raising interest rates and absorbing funds
in Europe and the United States to counter inflation.

2. The Japanese economy is being affected by the Russia-Ukraine crisis while the economic recovery withincoexisting with COVID-19 is being pursued.
◆The Bank of Japan continues to ease its monetary policy despite signs of rising prices such as energy prices.
◆The depreciation of yen is progressing. This is due to the worsening trade balance caused by high crude oil prices, rising distribution
prices, and the widening of the interest rate differentials between Japan and other countries in Europe and the United States.

3. In the central Tokyo office market, needs diversify due to the spread of hybrid work styles within coexistingwith COVID-19.
◆Although the average vacancy rate for central Tokyo offices has been flat and the average rent has continued to
decline, demand has been improving in some areas.
◆Investors’ demand for real estate has been strong, but we need to pay attention to the outlook for interest rates
as global monetary tightening is taking place.
4. In the hotel and tourism market, coexisting with COVID-19 has brought back the movement of people. Travel
demand is recovering.
◆In the tourism market, hotel occupancy rates rose as domestic travel recovered. Inbound travel recovery is yet
to come.
◆There is also a strong willingness to invest in hotels mainly by overseas investors. This is to recover the future
travel demand.
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13

Forecast for the Fiscal Year ending March 31, 2023
Increase/
Decrease

FY ended March2022

FY ending March2023 Forecast

Net sales

71,25184,000+17.9%(1) Real Estate Revitalization Business

55,95856,700+1.3%

Replanning
Rental buildings

53,834
2,124

54,700
2,000

+1.6%
-5.8%

(2) Real Estate Service Business

Adjustments

7,154
6,911
1,695
-467

7,300
18,600
1,900
-500

+2.0%
+169.1%+12.1%-

Gross profit

19,34422,000+13.7%(1) Real Estate Revitalization Business

17,05316,000-6.2%

16,517535

15,500
500

-6.2%
-6.5%

3,822
-1,503
171

3,900
1,800
300

-199

0

+2.0%
+75.4%-

Selling General and Administrative Expenses

7,216

8,700

+20.6%

Operating profit

12,127

13,300+9.7%

Ordinary profit

12,21512,800+4.8%

Profit

7,415

8,300

+11.9%

152.26 yen

170.44 yen+11.9%(Unit: million yen)(3) Hotel and Tourism Business(4) Others

Replanning
Rental buildings(2) Real Estate Service Business(3) Hotel and Tourism Business(4) Others
Adjustments

EPS (Earnings per share)

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14

Key Points in Earnings Forecast<Real Estate Revitalization Business>

・ Sales and profits are almost
unchanged from the previous fiscal
year. The purchased properties
accumulated toward the end of
FY2021 are being developed for salein or after the next fiscal year.

<Hotel and Tourism Business>
・ Plan to sell hotel properties andexpect profit growth.
・ Hotel operations expect occupancy
rates to improve as demand foraccommodation recovers.

<SG & A expenses>
・ Expect an increase in SG & A
expenses based on investment plansof growth strategy including humanresources, DX and marketing.

Dividend Forecast for the Fiscal Year ending
March 2023
Following our basic policy for profit sharing, we are working to benefit our shareholders
comprehensively. In this fiscal year, we have to seek business growth to achieve our financial target
while coexisting with COVID-19 and keeping a close attention to rising interest rates. At the same time,in order to meet the expectations of shareholders who support us while securing internal reserves tomaintain financial stability, we are going to maintain the year-end dividend of 23.0 yen per share. We
expect an interim dividend of 23.0 yen and a year-end dividend of 23.0 yen, for a total of 46.0 yen.

Basic Policy for Profit Sharing
1) Strive to provide long-term and stable shareholder return2) Secure investment funds for future growth3) Maintain the stability of financial base
We are working to contribute to the overall benefit of our shareholders.
FY ended March 2020 FY ended March 2021 FY ended March 2022

FY ending March 2023
(Forecast)

Earnings per Share

219.03 yen

87.77 yen

152.26 yen

170.44 yen

Dividend per Share

42.00 yen

42.00 yen

44.00 yen

46.00 yen

Dividend Payout Ratio

19.2%

47.9%

28.9%

27.0%

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15

Medium-term Management Plan

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16

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

Growth strategy
OfficeDeepen and expand the Office Business

Hotel

Create a Services that go beyond satisfaction and excitementwith a sharp concept

Overseas

Expand housing-related business in Viet Nam

M&A

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

Key Points

ESG

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Digital17

Cash flow

MarketingMedium-term Management PlanFY ended March 2022
Results(100 million yen)

1,200
1,000

Net Sales
Ordinary Profit

FY ending March 2023
Forecast

FY ending March 2025
TargetNet sales

71.2 billion yen

84 billion yen

100 billion yen

Ordinary profit

12.2 billion yen

12.8 billion yen

20 billion yen

Net Profit

7.4 billion yen

8.3 billion yen

14 billion yen

Ordinary profit
margin

17.1%

15.2%

20%

Equity ratio

52.2%

50% level

50% level

ROE

10.8%

10% or more

10% or more

1,000

Net Profit

840

800
600

732

712
596

533

400
200

0

128

FY 2019
19/3

161
88

200
107

FY 2020
20/3

122

75 44
FY 2021
21/3

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FY 2022
22/3

18

74

128

83

FY 2023
23/3 (Forecast)140

FY 2025
25/3 (Forecast)Medium-term Investment Plan (FY ended March 2022 – FY ending March 2025)
Overseas Business

Hotel Business

Office Business
Balance at the end of
March 2021

72.8 billion yen

Balance at the end of
March 2021

21.8 billion yen

Balance at the end of
March 2021

0.6 billion yen

Investment amount

200 billion yen

Investment amount

7 billion yen

Investment amount

8 billion yen

Amount collected

182.8 billion yen

Amount collected

5.8 billion yen

Amount collected

2.5 billion yen

Balance at the end of
March 2025

23 billion yen

Balance at the end of
March 2025

6.1 billion yen

Balance at the end of
March 2025

90 billion yen

Plan procurement and development to achieve business growth while
recovering investments at a constant turnover rate.
Refocus on purchasing properties while holding back during the
confusion caused by the pandemic of COVID-19.
Make sound investments in short-term, medium- to long-term, andnew construction development.

Complete the hotels under construction. Aim to achieve
profitability in operating existing hotels. Collect funds throughthe sale of land and buildings, operating them effectively.
Planned hotel completed. Sell, collect, and reinvest.

Continuously and systematically invest in
condominium development projects for the future.
Land acquisition procedure is in progress for the next
development projects.

Digitalization 3 billion yen
Continue to actively invest in data-driven management

M&A 5 billion yen
Systematically invest in peripheral businesses and growth areas to expand existing businesses

Building database
Developing drone image
analysis AI

Diversification and customer
expansion to create businesssynergies

Generate free cash flow
Ensuring positive free cash flow through systematic investment and recovery
Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

19

Business Progress and New Initiatives

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20

Replanning Business

Create High Added Value and Contribute toBusiness Growth
The sale of four buildings, which we have worked on over the mid- to longterm, contributed to our business performance.
Purchased five new mid- to long-term buildings for the future.
"Creativity," which has captured the new needs for the
pandemic of COVID-19, offers replanning to a high added
value building.

Even in the pandemic of COVID-19, we take advantage
of "leasing power" to sell our properties as highoccupancy and high-profit buildings.

Sources of "leasing power"
Local branch network to flexibly
respond to clients’ problems

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

21

Replanning Business

Completed New Office Buildings
Completed new buildings of "+ SHIFT", a refined brand thattranscends conventional concepts and seeks a rich work
style for a new era"+ SHIFT NOGIZAKA" opened in April 2021.

"+ SHIFT KANDA" opened in August 2021.

8-11-26 Akasaka, Minato-ku, Tokyo
1-minute walk from Nogizaka Station on Tokyo Metro Chiyoda Line
13-story building with a total floor area of 1,308.40 square meters

4-7 Kandaiwamoto-cho, Chiyoda-ku, Tokyo
2-minute walk from Iwamoto-cho Station on Toei Subway Shinjuku Line
8 floors above ground and 1 basement floor building with a total floor areaof 1,045.67 square meters

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

22

Specified Joint Real Estate Ventures

Strengthen Initiatives for Small-lot Real Estate Property
Sell a nursery school, a medical and educational mall that contribute to the lives of local
communities as small-lot products.
Thanks forthe saleNo. 3 Setagaya Ward New Authorized Nursery School
5-52-11 Matsubara, Setagaya-ku, Tokyo
5-minute walk from Higashi-matsubara Station on
Keio Inokashira Line
8-minute walk from Meidaimae Station on Keio Lineand Keio Inokashira Line
3-story building with a total floor area of 524.86
square meters
Attractive as an ESG investment that contributes tosolving the shortage of authorized nursery school
Contributing to the development of Setagaya Ward,an easy-to-care town

No. 4 Ota Ward New Medical and Educational Mall

Now on sale

2-28-4 Kitamagome, Ota-ku, Tokyo
2-minute walk from Magome Station on Toei Subway
Asakusa Line
3-story building with a total floor area of 1,327.25
square meters
A new mall with the theme of "medical care andeducation" in which after-school childcare, English
conversation school, etc. enter as tenants, centeredon a drugstore with a large medical corporation anda dispensing pharmacy that has strengths in
hemodialysis.

We are also promoting the fifth commercialization project!
Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

23◆ Business model for small-lot real estate products① Acquisition ofReal Estate

Voluntary
partnership② Co-ownership
Interest Investment③ Leasing
RevenueManaging Partner④ Investment
Investors
Dividend
Building Owners

Attractiveness to investors (building owners)① Sun Frontier Fudousan Co., Ltd. selects properties suitable forsmall-lot ownership② Can make small investments in real estate and earn profits (dividends)◆ Ability to design defferentiated products to be selected
Appeal points reflecting clients' needs in line with market conditions
Stable income
from long-term
fixed leasetenants

Newly-built
properties thatare safe for longterm ownership

Reliable tenants
who contribute to
the communityConference Room Rental BusinessOpening New Stores and Expanding Floor Spaceto Meet Customer Needs
Developing various services to meet the needs of Coexist with COVID-19 and post COVID-19.
Fully compatible with web conferencing and online distribution as work styles change and diversify.
August 18, 2021
Vision Center Nishi Shinjuku Opened
On January 14, 2022, floor space in the building increased.
Due to popular demand, the floor space will be expanded
again in May 2022.
5-minute walk from the south exit
and west exit of JR Shinjuku
Station, and 1-minute walk from
Exit 7 of the underground passageof Shinjuku Station on Tokyo Metroand Toei Subway

January 14, 2022
Vision Center Tamachi Opened
with Additional Floor Space

February 25, 2022
Vision Center Yokohama
Expanded and Opened

2-minute walk from JR Tamachi
Station
1-minute walk from Toei Subway
Mita Station

5-minute walk from JR Tokaido
Line/Keihin Tohoku
Line/Yokosuka Line/Sagami
Railway Main Line Yokohama
Station (West Exit)

Convenient location with easy
access to Shinkansen and airport
Total 26 rooms / 8 to 360 seats

Great access not only from Tokyo
but also from other regions.
Total 7 rooms / 24 to 288 seats

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

5-31-19 Shiba, Minato-ku, Tokyo 108-0014
Round Cross Tamachi, 2nd and 4th floors(Reception: 4th floor)
https://www.visioncenter.jp/tamachi/

Great access not only from
Tokyo but also from otherregions.
Total 15 rooms / 6 to 245 seats
2-5-15 Kitasaiwai, Nishi-ku, Yokohama-shi, Kanagawa 1600023
Premier Yokohama Nishiguchi Building, 3rd and 4th floors(Reception: 3rd floor)
https://www.visioncenter.jp/yokohama/Nihonbashi

Yurakucho

Tokyo

Hibiya Hamamatsucho

Kanda

24

Tamachi

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Nagatacho

To Haneda airport

ShinagawaTotal of 19 sites in operation

Yotsuya

Shinjuku

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

Yokohama

・ Weekly / monthly rental Order Made Space: 6 sites

Ueno◆Vision Center Network

・ Hourly rental Vision Center: 9 sites

Hotel and Tourism Business

Four New Hotels Completed as Planned
June 2021
OPEN

HIYORI Chapter Kyoto
Tribute Portfolio Hotel

June 2021
OPEN

341 Shimizu-cho, Kawaramachidori Nijo-agaru, Nakagyo-ku,
Kyoto-shi, Kyoto
4-minute walk from Kyoto
Municipal Subway Tozai Line
Kyoto Shiyakusho Station

Tabi no Hotel Lit Miyakojima

July 2021
OPEN

596 Hirara Nishizato, Miyakojima,
Okinawa
About 14 minutes from Miyako
Airport by car
4-minute walk from Nishisatodori
Iriguchi.

Total 203 guest rooms
Total 111 guest rooms
Completed in February 2022
Pre-opening scheduled for June
2022

Shijo Kawaramachi Onsen Sora Niwa Terrace Kyoto/ Bettei Kamogawa

Tabi no Hotel Lit Matsumoto
1-4-5 Fukashi, Matsumoto-shi, Nagano

4-minute walk from Ojoguchi Exit of
Matsumoto Station by train
1-minute walk from Matsumoto Bus
Terminal by bus
11 minutes from Nagano Expressway
Matsumoto Interchange by car
Total 176 guest rooms

Highly convenient for both business and leisure
We will strengthen the development of "Tabino Hotel"
series.

Tabino Hotel Sado

“Bettei Kamogawa” Delux Twin

“Sora Niwa Terrace Kyoto” Double Room

Tabino Hotel Hida-Takayama
324 Inari-cho, Kawaramachi-dori Shijo-sagaru 2chome, Shimogyo-ku, Kyoto-shi, Kyoto
1-minute walk from Hankyu Dentetsu Kyoto
Kawaramachi Station
Sora Niwa Terrace Kyoto 102 rooms / Bettei
Kamogawa 32 rooms

Tabino Hotel Kashima

Rooftop “Sora Niwa Terrace” with a panoramic view of Higashiyama

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Tabino Hotel Kurashiki Mizushima

25

New business
Implementing drone surveys of exterior walls. Greatly reduced survey time.
Conventional exteriorwall survey

Exterior drone inspection② AI automatically marks abnormal areas in the image① The drone's camera
Image shooting

Underdevelopment③ Image analysis
Developing
image analysis
AI tools!

Scaffold
installation
requiredNo scaffolding
requiredInvestigation costs

Up to 80% reduction
in research cost*

Life cycle
High cost

Life cycle
cost reduction④ Final confirmationby the analyst
Workload will be
drastically reducedwith an AI tool

⑤ Report delivery* Comparison with Consultative Survey

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

26

Strengthen DX and Marketing
Accelerate aggressive investment in DX, support operational efficiency and strategy,
and create business
Operational efficiency and strategic support using data infrastructureData-driven management
Build the master database

Create new businesses using digital technology(Drone business is the first.)
Research on emerging technologies related to real estateDX, a combination of ourexpertise and digital* Emerging technologies: local 5G, metaverse / NFT, STO / blockchain, BCP-DX, etc.

Strengthen marketing and enhance the social recognition and value of the corporate brandStrengthen owned media (web and blog) and events
Collaboration between Office Business, Hotel and Tourism Business,
and Overseas Business

Strengthen adopted brand and ensure active employee participation
Strengthen and foster group-wide marketing

Integrated marketing
Build awareness andunderstanding of the corporate
brand

Enhance organizational andbrand power through marketingand human resource
development

Contribute to solving social issues through sustainable growth by raising awareness andexpanding the customer base
Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

27

Corporate Philosophy and Sustainability

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

28

Ideal System
Company policy

Altruism

Management
principle

We contribute to the prosperity of humankind and society with theaim of protecting all employees and pursuing both material andspiritual happiness in a spirit of coexistence.

Corporatephilosophy

We improve our knowledge, skills, and personality with enthusiasm
through our work. By concentrating on utilizing and distributing realestate stocks, we reduce the waste of non-renewable resources. Thatleads to the lasting prosperity of humankind and flora and fauna on
the earth.

VisionWe aim to be the real estate company of the world’s most loved andselected by clients as a professional in real estate utilization!

Major policy

Pursue trust, not profit.
Change yourself, solve problems in clients' point of view, and exceed
expectations!

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

29

Sustainability
Sustainability Vision
We will contribute to the realization of a sustainable society throughbusiness activities while respecting the heart of altruism, theCompany policy.

Materiality (Important Issues)
Important issues

VisionEnvironmental
protection

Increase environmental sustainability
by significantly reducing waste andgreenhouse gas emissions, as afrontier of Real Estate Revitalization
Business

Regional
revitalization■Create buildings, offices, and spaces with “jobsatisfaction” and “creativity” that contribute toCreate sustainable growth of regional
economic growtheconomies through offices, hotels,■ Prevent and mitigate disaster through regional
and tourism, as a frontier forcooperation
sustainable regional revitalization■ Solve regional issues through community
activation and creation

Human
resource
development

Spread the concept of "altruism" thatis indispensable for realizing asustainable society, as a frontier ofphilosophy management

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Policy■ Extend the life and health of real estate■ Energy conservation and reduction ofenvironmental impact by Real Estate
Revitalization Business■ Expanded use of renewable energy■Createworkplaces with job satisfaction, creativity
and growth opportunities■ Respect and utilize diversity■ Disseminate information on philosophy
management to foster next-generation managers

30

Mainly relevant SDGs
AFFORDABLE AND
CLEAN ENERGY

CLIMATE ACTIONRESPONSIBLE
CONSUMPTION
AND PRODUCTIONDECENT WORK AND
ECONOMICGROWTH

INDUSTRYINNOVATION AND
INFRASTRUCTURE

SUSTAINABLE CITIESAND COMMUNITIEQUALITYEDUCATIONGENDER EQUALITY

PARTNERSHIPS FOR
THE GOALSBusiness area
Contribute to solving social issues through real estateutilization, the core businessRealization of A Sustainable Society

Environmental
Protection

Office Business

Human Resource
Development

Hotel Business

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Shima Yume Project

31

Regional
Revitalization

Overseas BusinessBusiness Model

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

32

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

RP
12

14

11

*As of the end of March 2022

Leasing
Brokerage

A community-based network ten branches

PM

More than 80% of the 421 entrusted
properties are located in the five cities ofcentral Tokyo. *As of the end of March 2022

BM

Of the 203 buildings under comprehensive
management, 85% are located in the five cities
of central Tokyo. *As of the end of March 2022

Rent
Guarantee

Of the 652 new contracts signed, 90% are in thefive wards of central Tokyo.

20
69

Of the total number of RPs over 440
properties, 80% are located in the five wardsof central Tokyo and adjacent wards.

124

41

46
11

Ginza, Kanda, Nihonbashi, Kodemmacho, Kojimachi,
Shinjuku, Shibuya,Gotanda,Hamamatsucho, Yokohama*Results for FY 2022

7

Rental18 of the 19 sites are located in the five cities
Conference of central Tokyo.
Room*As of the end of March 2022/One site in Yokohama* The numbers on the columns in the map are the cumulative number of RPs.
Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

33

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

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

Fundraising Consulting

Asset consulting

Rent guarantee

Construction planning

Property management

Leasing brokerage

Sales brokerage

Property
purchase

2. Real Estate
Revitalization
Building
development ofvalue chain

Propertysales

Our clients
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 inrevitalized buildings to increase their value and sell them.
Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

34

Business Model for Replanning Business
Renovate those office buildings with declining occupancy rates and in need of large-scale
repairs into high-value-added real estate that is sought after by society through therenovation from the “clients’ point of view.”

Low-occupancy and lowprofit buildings
・ Aging degradation
・ Earthquake
resistance anxiety
・ Violation of legal
compliance, etc.

Creativity

Leasing power

Design offices in clients'
point of view and carryout renovation and repair
work in pursuit of safety
and security.

A community-based branch
network keep the building inhigh occupancy and becomesthe closest contact point for
any kind of consultation.

Buying power

Rent guarantee

Purchase of lowoccupancy and nonoccupancy buildings
using various routes andmethods.

Encourage tenants tomove into the building andguarantee stable income
for the owner in the eventof rent arrears.

Clients =Building owners

Sales force

Management

Stay close to clients of asset
holders and meet needs
with high levels of difficulty
beyond expectation.

Provide high-quality
services, maintain highoccupancy rate, andstabilize building
revenues.

・ Asset management, inheritancemeasures, etc.

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

35

High-occupancy andhigh-profit buildingssought by owners
・ Full occupancy
・ Improve
income andexpenditure
・ Stable income

Replanning BusinessAccelerate the Growth of Tenant Companies
Set-up offices focusing on the clients' point of view accelerate business growth.
Set-up office

An office that differs from the interior of a normal rental office in that it has a
reception area, reception room, and other facilities, as well as highly designoriented interior construction in the office area, with some facilities and fixtures
already installed.

Set-up office
Four benefits

Save laborNo need for tasks such as devising
office interiors or selecting interior
decorators, greatly reducing thetime and effort of managers.

Office interiors with a high level ofdesign, with a focus on creativity,
functionality, and a variety of usage
scenarios, improve the recruitment of
human resources, employee
motivation, and office productivity.

available
justafter relocation

Reducemanagement
burdenImproveproductivity

Client =Tenant company

Improve
recruitment,
motivation, andproductivity

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Shorten the
periodReducefinancialburden36

No need for any work other thanwiring and moving, significantly
shortening the relocation period
and increasing the net available
period by shortening theconstruction period for interior
finishing and restoration.

ReduceburdenSignificantly reduced costs foroffice interiors and others.
Tenants do not have to accountfor interior decoration assets.

Replanning Business

Create both Customer Value and Social ValueContribute to the resolution of social issues through contributions to our clients' businesses.
Contribute to the business growth ofbuilding owners and tenant companies
through Replanning Business.

=
Reduce the waste of non-reproducible
resources and contribute to the prosperityof humankind, plants and animals on theearth.

Comparison of resource input over 50 years(kg / ㎡)

3,991

3,000

6,399

2,357

19.1% ↓

6,000

2,000

5,179

1,000

5,000

0
Rebuilding
建替
New bldg
新築

Clients’
value

7,000

40.9% ↓

4,000

Comparison of CO ₂ emissions over 50 years(t-CO ₂)

Renovation
改修

Rebuilding
建替

Renovation
改修

Repair
修繕

Comparison of waste generation over 50 years(kg / ㎡)

4,000

3,000

801

49.3% ↓

800

2,000
600

406

400

Economic
value

Social
value

1,000

200
0
Rebuilding
New bldg

新築

建替

Rebuilding

建替

0

Renovation

改修

RepairRenovation

修繕

改修

Demolition

解体

Standard
標準
New新築
bldg
Maintenance

維持管理

Renovation
改修

Repair
修繕 Renovation改修
Disposal
Energy

廃棄エネルギー<Assumptions and rationale> Assuming a 30-year-old office building of approximately 3,000 square meters, the environmental contribution over a 50-year period (the service life of SRC office buildings) was
estimated based on the Architectural Institute of Japan's LCA Tool (*).
・ Rebuilding: “In the case of rebuilding every 35 years” ・ Renovation: "Regeneration without destroying old buildings (long-life buildings)" ・ Standard: "Assuming a 30-year-old unrenovated building"*Architectural I "LCA Tool for Buildings Ver5.0 - Evaluation Tool for Global Warming, Resource Consumption and Waste Management”, estimated with the cooperation of Engineering Research Institute of Japan.

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

37

Continue High Profitability in Office
Building Business● Replanning Business maintains high segment profit margin

Despite the impact of market conditions, the Replanning Businessmaintains a high profit margin and have the ability to recover andcontinue to grow.

70,000

40.0%

32.4%

60,00027.8%
50,000

28.2%

30.0%

35.0%

31.2%

29.2%
30.0%
24.3%

22.1%

25.0%

40,00020.0%
30,00015.0%
売上高
Net sales

20,000

10.0%

Segment
セグメント利益
10,000profitセグメント利益率
Profit margin
0

5.0%
0.0%
'15/3

’16/3

’17/3

’18/3

● Real Estate Service Business continues to grow steadily
4,000
Rental
貸会議室
conference room

Rent
滞納賃料保証guarantee

3,000

BM
BM
PM
PM

2,330

2,491

'15/3

’16/3

2,508

2,821

’19/3

’20/3

’21/3

’22/3

In addition to Sales Brokerage, Leasing Brokerage, and PM, the Company has
added BM, Rent Guarantee, and Rental Conference Room to its services, steadily
increasing its stock business earnings.
3,803
3,408
3,206
2,829

2,000

Leasing
賃貸仲介

Brokerage
1,000
Sales
売買仲介
Brokerage
Sub leases0
サブリース
referral fees, etc.
紹介手数料他

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

’17/3

’18/3

38

’19/3

’20/3

’21/3

’22/3

Business Models for Hotel Business Growth
Increase added value by developing and acquiring some properties in addition to operating revenues, and aim for growth throughsynergies with sales revenues.
<Hotel Business Model Case>

Land・ Hotel development
model case

Land

Management

Sell

Purchase

Owner

Development Construction

Company

Company

Sun Frontier
Hotel Management

Sun Frontier
Hotel Management

Hotel name and location

NumberAcquisition and openingof rooms

Management

Purchase

Lease
contract

Owner

Sun Frontier
Hotel Management

Status(Room)
3,000

Spring Sunny H Nagoya Tokoname Station

194

2016.4

Acquired

Own

2,500

4 Sky Heart Hotels (excluding Shimonoseki)564

2016.12AcquiredLending and leasing

2,000

Hiyori Hotel Maihama

80

2017.4

Newly constructed

Sold leaseback

1,500

Sado Resort Hotel Azuma

57

2018.4

Acquired

Own

1,000

Tabino Hotel Hida Takayama

80

2018.5

Newly constructed

Own (leased)

500

Sky Heart Hotel Shimonoseki

105

2018.6

Acquired

Own

0

Tabino Hotel Sado111

2018.7

Newly constructed

Lending and leasing

Hiyori Hotel Osaka Namba Station

224

2019.5

Newly constructed

Lending and leasing

Courtyard by Marriot Osaka Honmachi

193

2019.1

Newly constructed

Lending and leasing

Hiyori Hotel Tokyo Ginza EAST

135

2019.12

Newly constructed

Own

Tabino Hotel Kurashiki Mizushima

155

2020.2

Newly constructed

Lending and leasing

Tabino Hotel Kashima

194

2020.4

Newly constructed

Own (leased)

HIYORI Ocean Resort Okinawa

203

2021.2

Newly constructed

Sold leaseback*Hotel Osado

74

2021.4

Acquired

Own

HIYORI Chapter Kyoto

2032021.6

Newly constructed

Own (leased)

Tabi no Hotel Lit Miyakojima

111

2021.6

Newly constructed

Own

Tabi no Hotel Lit Matsumoto

176

2021.7

Newly constructed

Lending and leasing

Sora Niwa Terrace Kyoto / Bettei Kamogawa

1342022.6

Newly constructed

Own

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Sell

Company

Number of Operating Hotel Rooms

Company
Sun Frontier
Hotel Management

2,859

2,993

'22/3

'23/3

2,295
1,898
1,191
758

838

'17/3

'18/3

'19/3

'20/3

'21/3

(Forecast)

The company’s model is to operate the hotel after development, sell it and lease it
back, and 9% of the 2,993 hotel rooms have been achieved.

Percentage of hotel rooms by type9%

（Total number of hotel rooms: 2,993）

27%

Own
保有
保有(借地）Own (leased)
Lending and leasing
賃借リース

48%

16%

Sold leaseback
売却済リースバック（As of May 2022）

39

Hotel and Tourism Business

Focus on Creating Enthusiastic Fans
Continue efforts to create enthusiastic fans by creating services that exceed expectations fromthe clients’ point of view.
Brand development

Luxury Class
Shijo Kawaramachi Onsen Bettei
Kamogawa
HIYORI OCEAN RESORT OKINAWA

Sado (Chigusa)
Sado (Aikawa Oura)

Upper Class

Upper Middle Class

Sado (Aikawa Kabuse)

Kasugazaki Onsen Hotel Osado

HIYORI Hotel Tokyo Ginza East

Sado Resort Hotel AZUMAHIYORI Hotel Maihama

HIYORI Chapter Kyoto

HIYORI Hotel HIYORI Hotel Osaka
Namba Ekimae

Shijo Kawaramachi Onsen Soraniwa
Terrace Kyoto

Tabi no Hotel Lit Matsumoto

COURTYARD BY MARRIOTT Osaka
HonmachiTabi no Hotel Lit Miyakojima

Matsumoto
Onna,
Okinawa

Kyoto Shijo

MiyakoIslandTakayama

Kashima
Maihama

Kyoto Nijo

Spring Sunny H Nagoya Tokoname
EkimaeNaritaShimonoseki

Koiwa
Tokoname

HakataKurashiki
Mizushima

Osaka
Honmachi

Ginza
Kawasaki

Osaka Namba

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

40

Economy Class

Budget ClassDONDEN Highland Lodge Natural Resort
Sado

SKY HEART Hotel Narita

Tabino Hotel Sado

SKY HEART Hotel Koiwa

Tabino Hotel Hida-Takayama

SKY HEART Hotel Kawasaki

Tabino Hotel Kashima

SKY HEART Hotel Hakata

Tabino Hotel Kurashiki Mizushima

SKY HEART Hotel Shimonoseki

Business Model of Overseas BusinessContributing to the development of local communities by creating client's joy andhappiness through the creation of new businesses.
A total business that includes acquisition of land, development and construction, delivery after completion, and management and mediation.

Acquireland

Development
Construction

Completion
DeliveryManageUrban
Develop
ment

Contribute to future performance through systematic andcontinuous development efforts
China
Hanoi

Land
acquisition

Development
Land
acquisition

Laos

Completiondelivery
Development

Land
acquisition

Hai PhongHue

ThailandCompletiondeliveryCambodia

Development

CompletiondeliveryVietnamHo Chi Minh

Rooted in the local community in Vietnam, we work together with local partners to ensure high construction quality,a safe, organized, and beautiful construction site.

Next project in progress!
Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Da Nang City
Hoi An41

Regional Revitalization Business “Island Dream Project”
SADO OUTDOOR BASE

<We will energize Sado Island through tourism!>

Sado Outdoor Base

When rural areas are energized, so Japan as a whole will be. As the number of visitors to Japan rapidly
increases, spurred by fascination (culture, history, nature, food, hot spring, hospitality and others) thatJapan is proud of, we will take on the challenge of regional revitalization projects that focus on theattractiveness and features unique to regions, in particular the regions that possess the “Wonderfulness ofJapan.” With the addition of Osado in April 2021 and the Sado Outdoor Base in December 2021, the area
will be further revitalized.

Sun Frontier Sado Inc.
Hotel Business・ CafeTransportation Infrastructure
Project

Tabino Hotel Sado

・ Tap room

Okesa Kanko Taxi

Highlight Finding Project
Anaguchi-tei(Café & Restaurant)

・ Item rental

・ Rental bicycles

Tourism and Travel
Business

Web Advertising
Business
Sado Biyori

Happy Sado
TravelKigaruni Rent a Car

New

Hotel AZUMAApril 2021

Hotel Osado

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

New
Vacation Rental Le BlueDONDEN Highland Lodge

Sado Outdoor Base

Video "The Sea of Clouds from the
DONDEN Highland Lodge"

Video "Adventure Island SADO"

Sado SAWANE

42

December 2021

Reference Materials

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

43

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

Five wards
average rent
(yen/tsubo)

Five wards
average vacancy
rate (%)

Average rent
In March 2022

Peak average rent
In August 2008
22,901 yen

20,366 yen(down 52 yen MoM)
Average vacancy rate
In March 2022

6.37%
(down 0.04% pt MoM)
Peak vacancy rate
June 2012
Vacancy rate: 9.43%

Peak average rent
July 2020
23,014 yen

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

Bottom of average
rent
December 201316,207 yen

Bottom of vacancy
rate
November 2007
Vacancy rate: 2.49%

Bottom of vacancy
rate
February 2020
Vacancy rate: 1.49%* Source: Compiled by the Company based on Miki Shoji's "Office Report.”
Office buildings with a standard floor area of 100 tsubo or more in five central cities of Tokyo are covered.
Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

44

(Yen)

Long-term Trends
in Office Vacancy Rate and Rent
(Yen)
50,00045,000(％)
10

Average rent
平均賃料
(L axis)(左軸)

44,193
8.08

9.01

Vacancy rate
空室率
(R axis)
(右軸)

9

8.12

40,000835,000

7

6.37
6.33

30,00025,0005

22,18620,00021,99920,366
4

17,577

16,2073.77

15,000

6

3

3.17
2.65

10,000

2

1.79
1.55

5,000

1

0.39
0

0

Source: Compiled by the Company based on Miki Shoji's "Office Report"
Target office buildings with a standard floor area of 100 tsubo or more in five central cities of Tokyo are covered.
Figures for 2021 and earlier are taken as of December of each year.

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

45

Age Distribution of Office Buildingsin Tokyo’s 23 Wards
Solving social issues through the revitalization and utilization of aging small-to- medium-sized buildings
Tokyo 23 wards 9,378 buildings

Small and medium-sized(Total floor area: 300 to 5,000 tsubo)75

Large-sized

70(Total floor area: Over 5,000 tsubo)

65

8,620 buildings

758 buildings

60

Old seismic code:
2,132 buildings (25%)

Old seismic code:
122 buildings (16%)

55
50
45

20 years old or more:

20 years old:40

7,523 buildings

440 buildings

35

（87％）

（58％）

Age of buildings

30

25
20
15

Less than 20 years old:

Less than 20 years old:

10

1,097 buildings (13%)

318 buildings (42%)

5
0

800

600

400

200

00

200

400

600

800

Number of buildings

Source : Created by us based on "Tokyo 23 cities Office Pyramid 2022 (based on the number of buildings)" (Xymax Real Estate Institute)

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

46

Market Size and Number of Corporations
in Tokyo

Contributing to the development of society and the happiness of people in Tokyo,
a city where people and companies gather(Thousand people)

Ratio of Tokyo population to Japanese population (estimate)Tokyo’s population
東京都人口Japanese population 東京人口が日本人口に占める割合
Tokyo’s population as a percentage of the Japanese population
日本人口160,000

25.0%

140,000
20.0%

120,000
100,000

15.0%

80,00060,00040,000

10.6%

10.3%

11.1%

11.4%

11.7%

11.9%

12.6%

9.5%

9.8%

12,064

12,577

13,15913,515

13,85013,97913,93813,754

13,458

2000
2000年

2005
2005年

2010
2010年

2015
2015年

2020
2020年

2025
2025年

2030
2030年

2035
2035年

2040
2040年

10.0%
5.0%

20,0000

0.0%(Year)
Source: Compiled by the Company based on Tokyo Metropolitan Government statistics - "Population of Tokyo (Estimate).”Top 10 Prefectures in Number of Corporations
Tokyo
東
京
Osaka
大
阪
Kanagawa
神 奈 川
Aichi
愛
知
Saitama埼
玉Hokkaido
北 海 道
Chiba
千
葉
Hyogo
兵
庫
Fukuoka福岡Shizuoka静岡575,234
223,407
184,363

153,694130,108
119,564
107,704
94,01383,562
76,981
Source: Compiled by the Company based on the National Tax Agency‘s “Number of Corporations by Prefecture”.

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

47

Population Movement in the Three Major
Metropolitan Areas and Local Areas
The past economic crisis was the starting point for the number of people moving into the Tokyo area to increase.
（Ten thousand people）

40

First peak of population
inflow (1961)

20

Net Inflow

10Second peak of
population inflow（1987）

Tokyo area

30

Third peak of population
inflow（2007）

Fourth peak of
population inflow（2019）

Osaka area
Nagoya area

0
(10)
(20)
(30)
Oil crisis(40)

Collapse of bubble economy

Local area

Global financial
crisisCOVID-19
crisis

(50)
(60)
(70)

Source: Compiled by the Company based on "Number of people moving in by place of residence before the move and number ofpeople moving out by place of residence after the move" from the Statistics Bureau of the Ministry of Internal Affairs andCommunications.

Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

48

Transition and Present
Change, challenge and create new value with the Sun Frontier Spirit

100,000

OrdinaryNet
売上高120,000

COVID19 Crisis

経常利益率
Income Ratio

Sales

20.6% 21.3%

20.8%
18.5%

80,00024.4%

GlobalFinancial
Crisis

23.5%

22.9%

22.0% 22.7%

100,000

24.0%

14.0%

13.2%
48,15084,000

20.2%

19.3%

12.6%

73,21853,292
47,46440,39530,626
27,741

11.5%

35,25540,00026,871
16,731

20,000
5,004
681 1,771 3,588

14,4697,761

4,290 6,924

25.0%

22.0%

15.8%
60,000

30.0%

20.0%

71,251
20.0%

59,632

15.0%

17.1%
12.6%

10.0%

17,772
10,581

5.0%

0

0.0%
01/3 02/3 03/3 04/3 05/3 06/3 07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3 25/3
(Forecast)(Forecast)2001 to 20092010 to 2020

2021～

Basic construction of Replanning Business

Evolution and expansion of Replanning Business

Deepening and diversifying theReplanning Business

Replanning business
Set-up office
Hotel
Rental space
Overseas

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49

Corporate Profile
Company Name

Sun Frontier Fudosan Co., Ltd.

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

April 8, 1999

Date of Listing

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

Capital Stock *11,965 million yen

Representative

Tomoaki Horiguchi, Chairman
Seiichi Saito, President

Number of Consolidated
Employees *Average Age of
Employees*

696 full-time employees (1,228 including part-timers and temporary workers)
36.2 years old

Real estate revitalization
Business Profile

Real estate service

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

Hotel and tourism
Accounting Month
Listed Market

March
Tokyo Stock Exchange Prime (Code number: 8934)

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

(*As of the end of March 2022)

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50

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

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

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