May 10, 2024
Company Name
Representative
Inquiries

Sun Frontier Fudousan Co., Ltd.
Seiichi Saito, President and Representative Director(Stock Code: 8934, TSE Prime Market)
Takeshi Hirahara, Senior Executive Officer, andGeneral Manager of Corporate Planning Department
TEL: 03-5521-1551

Announcement of the Long-Term Vision and
Formulation of the Next Medium-term Management PlanAt the Board of Directors held today, the Company made a resolution regarding the Long-Term
Vision for FY2035/3, which is ten years from now, as well as the next Medium-term Management Planfrom FY2026/3 to FY2028/3 as follows.
1. Background and purpose of formulation
The Group celebrated its 25th anniversary in April this year. Moreover, this fiscal year is the
final year of the current Medium-term Management Plan (revised on May 12, 2021, hereinafter“Current Plan”). In the Current Plan, with the Company policy “altruism” advocated since its
foundation, we have been making efforts to realize the Management Philosophy of “Our mission is
to look after every employee and pursue the happiness of both mind and matter . At the same time, toco-create a rich and sustainable society by contributing to the evolution and the development of thehuman society.” During this period, we encountered the unprecedented headwind of the pandemic of
COVID-19. However, we overcame it and achieved our highest performance in the financial resultsfor FY2024/3 announced today. In addition, we are now in sight of achieving the targets of theCurrent Plan in this fiscal year. In order to achieve sustainable growth while realizing theManagement Philosophy over the long term from this fiscal year, we have decided to quickly clarify
strategies and measures under consistent targets leading to improved dialogue with the capital
markets. Accordingly, we have formulated the Long-Term Vision 2035 as the ideal image to achievein 10 years, and the next Medium-term Management Plan toward the realization of this vision.
2. Overview of the Long-Term Vision 2035
Based on the Company policy “altruism”, the Group aims to achieve the Long-Term Vision2035 and its quantitative targets through realizing the Management Philosophy of “Our mission is tolook after every employee and pursue the happiness of both mind and matter . At the same time, toco-create a rich and sustainable society by contributing to the evolution and the development of thehuman society.”Long-Term Vision 2035
Utilize limited resources to fill the world with smiles and excitement!
Becoming a corporate group that continues to challenge the creation of future value.
Quantitative target
Net Sales 300 billion yen and Ordinary Profit 60 billion yen in FY2035/3.
3. Outline of the next Medium-term Management Plan
Looking backward from the “Long-Term Vision 2035”, our ideal image in 10 years, theoverview of the next Medium-term Management Plan, which is the three years (from FY2026/3 toFY2028/3) following the achievement of the Current Plan in this fiscal year, is as follows.
1)

Basic policy
Work to resolve social issues by promoting cooperation and diversification within core business,
providing manufacturing through clients' point of view and heart-warming services.
1

2)

Quantitative target
FY2025/3(Forecast)

FY2028/3(Target)Net sales

100 billion yen

135 billion yen

35.0%

Ordinary profit

20 billion yen

27 billion yen

35.0%

20%

20%

ROE

10% or more

10% or more

Equity ratio

Around 50%

Around 45%

Growth rate

Profit plan
Ordinary profit margin
Management
indicator

3)

Growth strategy
Accelerate growth by diversifying real estate utilization combining development , services andoperation, as well as expanding business domain and operation area.
*Bold: Business domain and operation area planned to be expanded from the Current Plan.
Three focus
Business
Business domain
Operation area
marketsmodel
RenovationTokyo
New construction
Development
Sale of small-lot
Offices and(Act on Specified Joint RealTokyo
Osaka・Nagoya
storesEstate Ventures)Services
Real Estate Services
Tokyo
Operation
Rental conference rooms
Tokyo
Osaka・Nagoya
New construction
Development
HotelsRenovation
Nationwide
Operation
Hotel operation
New construction
VietnamDevelopment
Renovation
New York
Residential
Tokyo
VietnamServices
Real Estate Services
New York

4)

Key Points
1.
⚫
Strengthening human ⚫
resource base⚫

2.
Manufacturing
through clients' pointof view and heartwarming services

Strengthen recruitment and training to enhance human recourse.
Cultivating human resources as leaders through education andexpanding organizations through amoeba division.
Further evolve into a corporate group that attracts human resource withdiversity and our values of altruism regardless of age, sex, or
nationality.
Manufacturing through clients' point of view⚫ To develop new buildings, hotels, apartments in New York City, andcondominiums in Viet Nam through utilizing the creativity cultivatedby clients’ point of view in Office Replanning and further strengthen.
⚫ Strengthening base of Construction Business through M&A.
Heart-warming services through clients' point of view
⚫ Working closely with building owners to improve long-term problemsolving ability.
⚫ Improving ability of responding to needs of tenants and service users
with care and warmth.
⚫ Educate and create an organizational culture to provide heart-warming
and enjoyable services that impress hotel guests.
2

3.
Cooperation anddiversification withincore business

Cooperation and diversification within core business (flow-type business)⚫ Development of New Construction Business that aims to maintain thelong-term economic value of buildings through the cooperation with
Leasing Management, Property Management and Construction
department.
⚫ Promotion of small-lot real estate property (properties in Osaka, andNagoya in addition to the central Tokyo area)⚫ Development of apartment replanning in New York and condominium
in Vietnam.
Cooperation and diversification within core business (stock-type business)⚫ Provide further variegate service for real estate to solve clients ’problems.
⚫ Increase branches in Tokyo, focus on sub-leases entrusted, andincrease entrusted buildings for Property Management.
⚫ Increase operating area in Rental Conference Room Business⚫ Increase rooms of hotel operation (including M&A)

4. OtherFor details of the next Medium-term Management Plan, please refer to the following appendix.

3Sun Frontier Fudousan Co., Ltd

Next Medium-term Management Plan
(FY2026/3～FY2028/3)

May 10, 2024
Securities Code : 8934

Medium-term Management Plan (FY2019/3-FY2025/3)
Review and Progress
Medium-term management plan from FY2019/3 expected to be ended in FY2022/3 was extended by 2 years due to thepandemic of COVID-19. However, it is expected to be achieved in FY2025/3.
Trends in quantitative target

Trends in important management indicator

売上高
Net
Sales

経常利益profit
Ordinary

1,000

Net income
当期純利益

Medium-Term Plan
2 years extension

732

750

1,000
828

24.0%

798

713

22.0%
17.1%

20.0%

596

533

Ordinary
profit margin
経常利益率

40.0%

17.8%

Target 20%
21.9%

20.0%

12.6%

500
0.0%
19/3期
FY2019/3

250

88

161
107

FY2019/3
19/3期

FY2020/3
20/3期

128

75 43

122

74

147116173
119

100.0%

0
FY2021/3
21/3期

FY2022/3
22/3期

FY2023/3
23/3期

FY2024/3
24/3期

FY2025/3(Forecast)
25/3期(予)

自己資本比率Equity ratio

75.0%

50.4%

49.7%

52.3%

52.2%

Target 50% Level

52.9%

48.0%

48.0%

50.0%

1200

Net sales
100 billion yen

Trends in sales and ratio of flow-type businesses andstock-typebusinesses
1000
Real
estate service
不動産サービスHoteloperation
ホテル運営

25.0%
0.0%

Property
sales
物件売却

19/3期
FY2019/3

800

Net sales
53.3 billion yen

Flow type
Business
70%

600

400
Flow type
Business
80%200Stock type
Business
020% FY2019/3
19/3期

20/3期 FY2021/3
21/3期 FY2022/3
22/3期 FY2023/3
23/3期 FY2024/3
24/3期 FY2025/3(Forecast)
25/3期(予)FY2020/3

200
140

20/3期 FY2021/3
21/3期 FY2022/3
22/3期 FY2023/3
23/3期 FY2024/3
24/3期 FY2025/3(Forecast)
25/3期(予)FY2020/3

30.0%

ROE
20.0%

16.8%

17.7%

Target 10% or more
15.3%

14.5%

14.6%

10.8%

Stock type
Business30%
20/3期
FY2020/3

21/3期
FY2021/3

22/3期
FY2022/3

23/3期
FY2023/3

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

24/3期
FY2024/3

25/3期(予)FY2025/3(Forecast)

1

6.5%

10.0%

0.0%
19/3期
FY2019/3

20/3期 FY2021/3
21/3期 FY2022/3
22/3期 FY2023/3
23/3期 FY2024/3
24/3期 FY2025/3(Forecast)
25/3期(予)FY2020/3

Sun Frontier Fudousan Co., Ltd*

Review and Progress of Medium-term Management Plan (FY2022/3FY2025/3)
The total amount of investment is expected to be around 240 billion yen, compared with 220 billion yen planned for these
4 fiscal years. Investment in Office Business was as planned. Investment in Hotel Business was appended aggressively due
to the travel demand recovered rapidly. Project in Overseas Business has started and is scheduled to proceed. Investment
in M&A continuously while probing deals. Expanding investment of digital transformation for business growth.
(100 millions of yen)

2,500(100 millions of yen)

Office Business

2,000

2,000

280

60

250
1,500

200

100

500

70

26.5

20

50

0

0

0
計画
Plan

FY2022/3
22/3期

50

40

150

1,000

Overseas Business

80

120

300

2,000

(100 millions of yen)

Hotel Business

350

FY2023/3
23/3期

Progress
進捗
FY2024/3
24/3期

FY2022/3
22/3期

FY2025/3
25/3期(予)(forecast)(100 millions of yen)
M&A
Toward the creation of business synergies
Continue
toactively consider investment
60

50

35.7

40

FY2023/3
23/3期

FY2024/3
24/3期

FY2022/3
22/3期

FY2025/3
25/3期(予)(forecast)(100 millions of yen)

15.7

30

20
10

FY2022/3
22/3期

FY2023/3
23/3期

進捗
Progress
FY2024/3
24/3期

0Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Progress
進捗

Plan
計画

FY2025/3
25/3期(予)(forecast)

FY2022/3
22/3期

2

FY2024/3
24/3期

FY2025/3
25/3期(予)(forecast)

38.4

40

0
計画
Plan

FY2023/3
23/3期

Digital

50

30

20

Progress
進捗

Plan
計画

Progress
進捗

Plan
計画

FY2023/3
23/3期

FY2024/3
24/3期* The plan is the total investment amountfrom FY2022/3 to FY2025/3. The
investment amount for Office, Hotel,
and Overseas Business are the total ofpurchases and construction. The one for
M&A is the equity amount. The otherone for digital DX is the total of systeminstallation cost and running cost.

FY2025/3
25/3期(予)(forecast)

Sun Frontier Fudousan Co., Ltd

Sun Frontier Philosophy

Company policy

Ｃｒｅｄo

COMPASSION
We believe in helping others, as many as we can,throughout our lives.

Management Philosophy

MissionFuture Image

VisionOur mission is to look after every employee and pursue thehappiness of both mind and matter. At the same time, to cocreate a rich and sustainable society by contributing to theevolution and the development of the human society.
Our vision is to become the most appreciated visionary
company that fully utilizes limited resources and continues
the challenges to create new values.
1. Work For Your colleagues

Course of Action

Value

2. Do The Right Thing
3. Absolute Proactiveness4. Do it immediately, do it definitely,
do it until success

5. Stay Humble, Thankful,
And Respectful
6. Always Work Creatively
7. Be GENBA-Centric
8. Be Open-Minded Cheerful
and Wonderful

The Value and the Course of Action shared by all employees, the Core of our
Corporate Culture
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3

Sun Frontier Fudousan Co., Ltd

Sustainability Management
Sustainability Vision

The Group's sustainability website → https://www.sunfrt.co.jp/en/sustainability/

We will contribute to the realization of a sustainable society through our business activities, respecting the heart of altruism that is ourcompany policy.
Important
Challenges

Social issues to besolvedEnvironmental Protection

Small and mediumsized buildings thatcan still be used if
their value increases
are being demolished= Waste of resources

Regional Revitalization

Revitalization of theregional economy

Related
SDGs

Main Measures

Targets (KPIs)■ Extension of healthspan of realestate・ Economic lifespan extended by 30% or more
・ Occupancy rate of buildings over 30 years old: 90% or more・ Continuation of management after the sale of replanning properties: 90% or more・ Reduce CO2 emissions by an average of 12% or more compared to building reconstruction
work
・ Carbon offset 100%
• Reduce greenhouse gas emissions by 22% from fiscal 2022 levels by 2030 and achievecarbon neutrality by 2050

■ "Energy conservation" and"Reduction of environmental
impact“ through real estate
revitalization■ Create buildings, offices,and spaces that are motivating
and creative and contributeto economic growth・ Establish "Sun Frontier Wellness Score (SWO)," an in-house standard for the revitalizationof real estate that takes well-being into consideration and increase the ratio of newly supplied
replanning properties that exceed SWO to at least 30% in fiscal 2023, 50% in fiscal2025 and
70% in fiscal 2030.
・ Conduct tenant satisfaction survey (Company-owned properties)

Human Resource
Development

Response todevastating natural
disasters■ Disaster prevention andmitigation through regional
cooperation

・ Provide set-up offices with emergency supplies or installation space
At least five lots by fiscal 2023, and at least 20 lots by fiscal 2023
・ Posting disaster prevention information on a dedicated website: 100% in fiscal 2023
(Company-owned properties)

Decrease in theworking-age
population (decreasein the real labor
force) due to thedeclining birthrate
and aging population,and elimination of thegender gap■ Respect for and utilization ofdiversity■ Create a workplace with
"Job satisfaction,""creativity" and “growth
opportunities"• Increase the ratio of female managers to at least 12% by April 2025
・ Ratio of training hours to designated working hours: 12% or more・ Increase the amount of ordinary profit per hour compared to the previous year

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4

Sun Frontier Fudousan Co., Ltd

Long-term vision 2035

Utilize limited resources to fill the world with smiles and excitement!
Becoming a corporate group that continuing to challenge and create future value.

FY2035/3

Net Sales 300 billion yen
Ordinary Profit 60 billion yen

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5

Sun Frontier Fudousan Co., Ltd

Road Map for the next Medium-term Management
Plan

Long-term vision
2035

Next Medium-termManagement Plan
FY2026/3 to FY2028/3

Extant Medium-termManagement Plan
FY2019/3 to FY2025/3

Utilize limited resources to fill the world with smiles andexcitement!
Becoming a corporate group that continues to challenge
the creation of future value.

Basic policy
Work to resolve social issues by promoting cooperationand diversification within core business, providing
manufacturing through clients' point of view and heartwarming services.

Basic policy
Providing “a place where people gather andcommunicate with each other, and create social
development and happiness for people”

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6

Net sales

300 billion yen

Ordinary profit

60 billion yen

Net sales

135 billion yen

Ordinary profit

27 billion yen

Ordinary profit margin

20%

ROE

10% or more

Equity ratio

Around 45%

Net sales

100 billion yen

Ordinary profit

20 billion yen

Ordinary profit margin

20%

ROE

10% or more

Equity ratio

Around 50%

Sun Frontier Fudousan Co., Ltd

Basic Policy for next Medium-term Management Plan
Work for resolving social issues by promoting cooperation and diversification within corebusiness, providing manufacturing through clients' point of view and heart-warming services.

Flow typeSpecified joint real estateBusinesses ventures

New Building
Development Business

Sales Brokerage and Leasing
Brokerage Business
Property Management Business
Building Maintenance BusinessSub-leases Business
Rent Guarantee Business

Replanning Business

Stock type
Businesses

New York Apartments
Replanning Business

Rental Conference RoomBusiness
Vietnam Apartments
Development Business

Hotel Operation Business
Hotel Development
Business

Base of human resource

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7

Sun Frontier Fudousan Co., Ltd

Quantitative Plan for the next Medium-term Management Plan
Continuing high profitability and growth even after achieving the current medium-term plan.
Invest more actively in business while maintaining financial discipline and develop business with highcapital efficiency.
FY2028/3 Plan
Net sales

135 billion yen

Ordinary profit

27 billion yen

Profit Plan

Management
indicator

Net
sales
売上高

20%

Ordinary profit margin
ROE

10% or more

Equity ratio

Around 45%

Ordinary
profit
経常利益

300 billion yen

135 billion yen
100 billion yen
60 billion yen

27 billion yen

20 billion yen

FY2025/3
25/3期
Forecast
予想

FY2028/3
28/3期
Target目標

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FY2035/3
35/3期
Target目標

8

Sun Frontier Fudousan Co., LtdGrowth Strategies in the Next Medium-Term Management Plan
Diversify the use of real estate by combining development and services, and expand business domains and areas and accelerate growthThree markets
to focus

Businessmodel

Business domain

Area

Our goal

Tokyo

Contribute to the realization ofa sustainable society by
utilizing real estate in resource
recycling methods.

Renovation
Business domain expansion

Development

New construction
Area expansion

Sale of small-lot

OfficeTokyo(Act on Specified Joint Real Estate Ventures)Services

Real Estate Services

Operation

Rental conference rooms

Osaka, Nagoya
Tokyo

Tokyo

Area expansion

Osaka, Nagoya

Resolve our clients’ concerns
from their perspective, fortheir smile and excitement.

New construction
Development

Hotel

Renovation
Operation

Expand heartwarming and fun
hotels nationwide to grow withlocal communities.

Nationwide

Hotel operation
Area expansion

Business domain expansion

New construction

VietnamDevelopment

Residential
Services

Renovation

New York

Real Estate Services

Vietnam
New York

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9

Tokyo

Provide high quality residential
environment full of safety,
security and comfort tocontribute to the developmentof nations.

Sun Frontier Fudousan Co., Ltd

Insight for Business Environment

Number of Corporations by Prefecture and Number of Office
Buildings in Tokyo's 23 wards
In Tokyo concentrated many companies, demand renovation and rebuilding suppressed waste of resources remains highin while small and medium-sized buildings continue to age.
Tokyo 23 cities with 9,410 buildings
都道府県別法人数
上位10都道府県
Top 10Prefectures in Numberof Corporations

Small-to-Medium-Sized Buildings(Total floor area: 300 to 5,000 tsubo)

8,644 buildings
東
Tokyo

京

大
Osaka

阪

愛
Aichi

知

119,564

千Chiba

107,704

Old Seismic Building Codes:
115 buildings (15%)

55
50
45

153,694

北 海 道
Hokkaido
葉60

Old Seismic Building Codes:
2,132 buildings (25%)

184,363130,108766 buildings

65

223,407

埼
玉
Saitama(Total floor area: Over 5,000 tsubo)

70575,234

神 奈 川Kanagawa

Large-sized Buildings

75

20 years old or more:
7,509 buildings(87%)

Age ofBuildings built for more than 20 years : buildings
478 buildings(62%)

40
35
30
25
20

兵
Hyogo

庫

94,013

福岡Fukuoka

83,562静岡Shizuoka

76,981

15
Buildings built for less than 20 years :1,135 buildings (13%)

Buildings built for less than 20 years :288 buildings (38%)

10
5
0

800
Source: Compiled by the Company based on the National Tax Agency‘s“Number of Corporations by Prefecture”.

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600

400

200

00

200

Number of buildings

400

600

800

Source : Created by us based on "Tokyo 23 cities Office Pyramid 2023 (based on the number ofbuildings)" (Xymax Real Estate Institute)

10

Sun Frontier Fudousan Co., Ltd

Insight for Business Environment

Transfer of Tokyo Area and Japanese Population
While the population of Japan is decreasing, the population of Tokyo is increasing as more people are moving into the Tokyo area.
(Thousand people)

Ratio of Tokyo population to Japanese population (estimate)

60(Thousand people)

50
40

160

Tokyo Area

17.0%

30
20
10

Population in Tokyo
Population of Japan
Population of Tokyo as a percentage of the population of Japan140
Osaka Area

15.0%

120
Nagoya Area

0

100

13.0%

-10

12.6%
80

-20
60

-30

9.5%

-40

9.8%

10.3%

10.6%

11.1%

11.4%

11.7%

11.9%

11.0%

9.0%

40
-50

Local Area

7.0%

20

-60

12

-70

13

13

14

14

14

14

14

13

0

5.0%

2000 2005 2010 2015 2020 2025 2030 2035 2040
Source: Compiled by the Company based on Tokyo Metropolitan
Government statistics - "Population of Tokyo (Estimate).”Source: Prepared by the Company based on Statistics Bureau, Ministry of Internal Affairs andCommunications, "Number of New Residents by Address Before and After"

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11

Sun Frontier Fudousan Co., Ltd

Insight for Business Environment

Marketability in small-lot real estate property
Promote commercialization of small-lot real estate properties in major cities. Make proposals meeting needs of investors throughout Japan.
There are more than 12 million households nationwide ofpotential customers in small-lot real estate properties
Classification(Net Financial Assets Held byHouseholds)

Super wealthy individuals

105 trillion yen(90,000 households)

Wealthy individuals

259 trillion yen(1.395 million households)(500 million yen or more)(100 million yen or more
Less than 500 million yen)

Quasi wealthy
individuals(50 million yen or more)
Less than 100 million yen)

258 trillion yen(3.254 million households)

Upper mass individuals(30 million yen or more)
Less than 50 million yen)

332 trillion yen(7.263 million households)

Mass population

678 trillion yen(4,213.2 households)(Less than 30 million yen)More than
12 million
households

23 wards of Tokyo

Source: Prepared by the Company based on Nomura
Research Institute "wealthy individuals Pyramid"

Small-lot real estate properties
・ Nursery school

・ Educational and medical malls
・ Commercial buildings
・ Office buildings
・ Land, etc.
Provide wide varieties of properties

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NagoyaOsaka and Kobe

12

In addition to 23 wards of Tokyo, there arevarious candidate properties for small-lot
products in major cities and surrounding
areas such as Nagoya, Osaka and Kobe. We
could provide them meeting the needs ofinvestors nationwide
Sun Frontier Fudousan Co., Ltd

Recognition of the business environment

Overseas Markets (the U.S., Vietnam)
Supplying Japan's high-quality residential real estate in the United States (New York) and Vietnam (Danang), where
population growth and high growth rates continue
While the population of Japan is decreasing, the population of theUnited States continues to increase, and there is a high possibility ofcontinued housing demand.
(millions ofpeople)In contrast to Japan, where the growth rate is flat, the U.S. has avery high growth rate, has many jobs, and is expected to continue
to have a high demand for real estate.
(billions ofdollars)

Demographics (the U.S., Japan)

Trends in GDP (the U.S., Japan)

400
United StatesJapan

30,000300

United StatesJapan

20,000200

10,000

100

0

0
1980

1985

1990

1995

2000

2005

2010

2015

2020

1980

2025

Da Nang is the third largest city in Vietnam. The population
exceeded 1 million in 2017 and has continued to increase sincethen, and high housing demand is expected in the future.
(thousands ofpeople)

1985

1990

1995

2000

2005

2010

2015

2020

2025

Although the GDP of Vietnam is lower than that of Japan, the growthrate is higher than that of Japan, and Vietnam is considered to have ahigh potential for future.
Trends in GDP (Vietnam, Japan)(billions ofdollars)

Population trends in Danang

1,500

VietnamVietnum

Japan

6,000
1,000
4,000
500

2,000

0

0
1980

1985

1990

1995

2000

2005

2010

2015

2020

2025

1980

1985

1990

1995

2000

2005

2010

2015

2020

Source: IMF World Economic Outlook database (prepared by the Company)

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13

Sun Frontier Fudousan Co., Ltd

Recognition of the business environment

Demand recovery and growth potential in the hotel
market

The recovery in travel demand has been remarkable, and both the number of foreign visitors to Japan and their spending
are expected to further expand in the future.
(millions ofpeople)Trends in Domestic Travel Spending by
Japanese(trillion yen)

30

Overnight
宿泊旅行

Trends in Number of Foreign Visitors to Japan andForeign Visitor Consumption70

One day trip
日帰り旅行

trip

Number of
訪日外客数
foreign visitors

Spending
消費額200,000

60

60
160,000

25

20
20

21

21

22

22

50

21

18
17

120,000

40
31 32

15

29

30

10
10

25

24

9

80,00020
20
1340,000

5

10
4

4
0

0

0

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Compiled by the Company based on the Japan Tourism Agency's Travel and Tourism
Consumption Trend Survey "Domestic Travel Spending of Japanese"

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0
2014

14

2016

2018

2020

2022

2024

2026

2028

2030

Source: Compiled by the Company based on the JNTO Statistics on the Number of Foreign Visitors
to Japan and the government's targets for the number of foreign visitors to Japan and the amountof consumption

Sun Frontier Fudousan Co., LtdFocus points for the Next Medium-term Management
Plan
１Strengthening humanresource base•••Strengthen recruitment and training to enhance human recourse.
Cultivating human resources as leaders through education and expanding organizations through amoeba division.
Further evolve into a corporate group that attracts human resource with diversity and our values of altruism
regardless of age, sex, or nationality

Manufacturing through clients' point of view•

２
Manufacturing
through clients' pointof view and heartwarming services•

To develop new buildings, hotels, apartments in New York City, and condominiums in Viet Nam through utilizing thecreativity cultivated by clients’ point of view in Office Replanning and further strengthen.
Strengthening base of Construction Business through M&A.

Heart-warming services through clients' point of view•••

Working closely with building owners to improve long-term problem-solving ability.
Improving ability of responding to needs of tenants and service users with care and warmth.
Educate and create an organizational culture to provide heart-warming and enjoyable services that impress hotel
guestsCooperation and diversification within core business (flow-type business)•３
Cooperation anddiversification withincore business••

Development of New Construction Business that aims to maintain the long-term economic value of buildings
through the cooperation with Leasing Management, Property Management, and Construction department.
Promotion of small-lot real estate property (properties in Osaka and Nagoya in addition to the central Tokyo area)
Development of apartment replanning in New York and condominium in Vietnam.

Cooperation and diversification within core business (stock-type business)••••

Provide further variegate service for real estate to solve clients’ problems.
Increase branches in Tokyo, focus on sub-leases entrusted, and increase entrusted buildings for Property
Management.
Increase operating area in Rental Conference Room Business
Increase rooms of hotel operation （including M&A).

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

15

Sun Frontier Fudousan Co., Ltd

Human Resource Development
Desired image of humanresources

Human resources with both "the heart of altruism" and "frontier spirit"

Human Resources Development Policy
Develop human resources who can develop new fields with a frontier spirit toward the realization of a sustainable
and affluent society together with colleagues who share values of altruism.
We aim to realize a society that can be passed down to future generations by fostering human resources who have the kindness
to care for others around them and the strength to maintain personal integrity, and boldly take on challenges in areas where they
have no experience. To this end, the pillars of our human assets are exploration, curiosity, self-motivation, autonomy, andrespect for and utilization of diversity.

Environmental Improvement Policy
Create a work environment that provides "job satisfaction," "creativity," and "growth opportunities." Create a "cocreation" organization in which all employees set their own goals, work toward those goals with enthusiasm, andcontinue to create new value based on mutual trust.

Human Resources
Development Policy

A corporate culture that encourages challenge and growth

Creativity

A corporate culture that envisions the future and aims to create new value

Growth opportunity

A corporate culture that stimulates the desire to learn and works toward high goals

Measures•

Respect for andutilization of diversity•

Environmental
Improvement Policy•

Creating a workplacewith motivation,
creativity, and growth
opportunities

Job satisfaction•

Key Points

Creation of a work environment suited to each
employee's life stage and provision of flexible
training opportunities
Cultivating Ameba leaders for businessdiversification and organizational expansion
Establish training programs for the next generation
leaders, improve support systems for external
training, and increase the ratio of training hours todesignated working hours to 10% or more.
Use of DX, improvement of business processes andindividual capabilities, and year-on-year increase inordinary profit per hour

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16

Strengthening thehuman resource base
Manufacturingfrom the perspective ofcustomers
and heart-warming services
Promotion ofcore business tie-ups anddiversification

Basic Policies of thenext Medium-Term
Management Plan

Working to resolve
social issues bypromoting corebusiness tie-ups anddiversification throughcustomer-oriented
manufacturing andheart-warming services

Sun Frontier Fudousan Co., Ltd

Business Structure

Diversification of Flow-type Business and Expansionof Stock-type BusinessAs we expand our business areas,
we will diversify our flow-type businesses and increase the sales ratio of our stock-type businesses.
1600
FY2028/3 targets

Net sales
FY3 / 28 Plan
Net sale
135 billion yen

135 billion yen

FY2025/3 1400
forecasts

Growth Enhancement Properties Sales
Business

Net sales

FY2025/3 forecasts 1200

Net sales

100 billion
100 billion
yenyen

30 billion yen

・ NY Apartment Replanning Business・ New Building Construction Business・ Specified Joint Real Estate Ventures

1000

Flow-type
Businesses
65%

20 billion yen
800

Flow-type
Businesses
70%

Continued Growth Properties Sales
Business
600

57 billion yen

・ Replanning Business・ Hotel Development Business・ Apartment Development Business in Vietnam

400

50 billion yen

Growth Promotion Operation Business

25 billion yen
Stock-type
Businesses
30%

14 billion yen200

Customer Expansion Real Estate Services
Business

16 billion yen

23 billion yen

0

25/3期
FY2025/3
forecast
予想

・ Hotel Management Business

26/3期
FY2026/3
plan
計画

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

27/3期
FY2027/3
plan
計画

Stock-type
Businesses
35%

・ Rental Conference Room Business・ Real Estate Service Business・ Construction Solutions Business

28/3期
FY2028/3
plan
計画

17

Sun Frontier Fudousan Co., Ltd

Business Strategy

Expanding the Business Base and Customer Base of
Stock-Type BusinessAccelerate growth of stock-type businesses and strengthen the stable earnings base of the Group as a whole
Number of hotel rooms(Tsubo)(Room)

6,000

Operating area of rental conference
rooms

20,00010,000

2,000
0

5
0

0
FY2024/3 FY2025/3

FY2028/3(Forecast)(Targets)

FY2024/3 FY2025/3

FY2028/3

FY2024/3 FY2025/3

FY2028/3(Forecast)(Targets)(Forecast)(Targets)

In addition to promoting business in the Tokyo
area, planning to expand business in the Kansaiarea

Promote development and M&A,
aiming for 10,000 rooms

Number of buildings managed underproperty management(Building)

600(Building)Number of buildings under contract for
maintenance

FY2028/3(Forecast)(Targets)

3,856

4,200

2,500

0

0
FY2024/3 FY2025/3

5,000

270

200

0

Number of rental guarantee contracts
in arrears(Cases)

5,000

239

250

Strengthening community-based branch network incentral Tokyo
Further improve our ability to solve customer
problems

400

400

500

13

10

6,500

5,000

493

12

10,000

3,200

540

16
15

15,0003,099

Number of leasing management
branches

16,000

6,000
4,000

(Store)FY2024/3 FY2025/3(Forecast)

FY2028/3(Targets)

Increase the number of entrusted buildings in central
Tokyo with the aim of increasing the number of entrusted
buildings to 1,000 by 2035

Aiming to “Make Tokyo the Most Beautiful City in theWorld,“ increase the number of entrusted buildings
for cleaning, sanitation and safety

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18

FY2024/3 FY2025/3

FY2028/3(Forecast)(Targets)

Specializing in Rent Guarantee Business forcommercial buildings
Focusing on new acquisitions and contract growth

Sun Frontier Fudousan Co., Ltd

Allocation of funds

Aggressive Investment for Future Business Growth
Actively invest in growing fields while paying attention to the capital cost, focusing on the profitability and turnover of each business．
Total investment in the next Medium-term Management Plan (FY2026/3-FY2028/3): will be 310 billion yen【Cumulative capital income】【Cumulative capital expenditure】

Short-term
Replanning

100 billion yen

Continue to actively invest in small and medium-sized buildings in
the five central wards of Tokyo

Mid- to long-term
Replanning

50 billion yen

Invest in buildings that can be developed on a relatively largescale

New construction
development

30 billion yen

Expanding investment in New Construction Business with ourcultivated technologies

Loans

NY Apartments
Replanning

20 billion yen

Increase investment to expand business in high-growth markets

Cash and deposits

Small-lot real estate
properties

21 billion yen

Promotion of commercialization in Kansai and other regions inaddition to Tokyo

Hotel development

70 billion yen

Aggressively invest to increase the number of operating rooms to
11,000 by 2035

Vietnam
Apartment
development

9 billion yen

Investment in Da Nang, where high growth potential and housing
demand are expected

Other
M&A

10 billion yen

Actively use to accelerate business growth and create synergies

Dividend

12 billion yen

Increase dividends in line with profit growth and return toshareholders

Business proceedsfrom sales etc. of
properties

322 billion
yen

Business growth
Investment

310 billion
yen
Return toshareholders* From FY3 / 25 to end-FY3 / 27, conversion of convertible bonds into shares is expected to progress at the end of each fiscal year, resulting in increased number of shares issued and outstanding.

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19

Sun Frontier Fudousan Co., Ltd

Shareholders Return
Basic Policy for Shareholder Return①Strive to provide long-term and stable shareholder return②Secure investment funds for future growth③Maintain the stability of financial base（ yen）

100

140.0%

With the exception of keeping dividend in FY2021/3,
we increased dividend for 12 years.
Grow the business and increase cash dividend continuously.

120.0%

80

66.0

Cash dividends in 2Q end
中間※１

58.0

Cash dividends per share
期末60

100.0%

Dividend payout ratio
配当性向※２

38.5

40

30.0

42.0

42.0

44.0

80.0%

48.0

60.0%

33.5

25.0
20

13.5
14.0%

3.5

16.5

28.9%

8.5
20.0%
12.8%

14.4%

40.0%

47.9%

14.0%

21.3%

21.1%

19.2%

20.1%

20.0%

23.6%

13.1%

0

0.0%
FY2012/3
12/3期 FY2013/3
13/3期 FY2014/3
14/3期 FY2015/3
15/3期 FY2016/3
16/3期 FY2017/3
17/3期 FY2018/3
18/3期 FY2019/3
19/3期 FY2020/3
20/3期 FY2021/3
21/3期 FY2022/3
22/3期 FY2023/3
23/3期 FY2024/3
24/3期 FY2025/3
25/3期 FY2026/3
26/3期 FY2027/3
27/3期 FY2028/3
28/3期（forecast） （forecast）※１ Interim dividend started from FY2022/3※２ Dividends are anticipated in expectation of the progress of conversion of CB to stocks at the end of each period from FY25/3 to the end of FY27/3.

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

20

Sun Frontier Fudousan Co., Ltd

Simulation of Balance Sheet
Expand total assets by investing more aggressively for future business growth while maintaining financial discipline(100 millions of yen)

4,000

Other assets
その他資産

Fixed assets
固定資産

Inventories
棚卸資産

Net assets *
純資産※

Other
その他負債

Interest-bearing
有利子負債

liabilities

Cash and deposits
現預金liabilities

3,000

3,200
380

2,200
2,000

1,410

420
950

1,000

2,350

290

170

1,380

1,500
1,080
400

330

0

FY3 (forecast)/ 25 e25/3期
FY2025/3

FY3 / 28e
28/3期
FY2028/3(forecast)
FY2028/3(forecast)

Equity ratio

Equity ratio48%

Around 45%* From FY2025/3 to end-FY2027/3, conversion of convertible bonds into shares is expected to progress at the end of each fiscal year.
Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

21

Sun Frontier Fudousan Co., LtdTrends for Each Indicator and Initiatives for ROE
Improvement
Ordinary Profit Margin

Total Capital Turnover

Enhance added value in clients' pointof view and evolve and grow highly
profitable businesses.

Equity Ratio

× Increase efficiency by shortening
business period and increasing stockbusiness sales.
Ordinary
Profit
経常利益率
Margin

70.0%

60.0%

56.2%
52.3%

50.4%

52.2%

50.0%

52.2%
48.1%

× Maintain financial soundness
while promoting investment
and accelerating business.
Total
Capital
総資本回転率
Turnover＝Improving ROE

自己資本比率Equity Ratio

ROE
ROE

26/3期
FY2026/3

28/3期
FY2028/3

54.3%
50.1%
52.9%

49.7%

48.0%

46.8%

40.0%

48.0%

42.3%

30.0%
24.0%

22.0%

21.8%

20.0%

17.1%

16.8%

17.7%

20.0%

17.8%

12.6%

10.0%

15.3%

14.5%

14.6%

23/3期
FY2023/3

24/3期
FY2024/3

25/3期
FY2025/3

10.8%
6.5%
0.0%

19/3期
FY2019/3

20/3期
FY2020/3

21/3期
FY2021/3

22/3期
FY2022/3

27/3期
FY2027/3（Forecast)

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

22

Sun Frontier Fudousan Co., LtdImprove PBR by the initiatives for ROE Improvement

ROE (left axis)

ROE(左軸)

20.0%

16.8%

株主資本コスト(左軸)
Costof Equity (left axis)

PBR(右軸）PBR(right axis)（ ｔｉｍｅｓ）

20.0

17.7%
15.3%

15.0%

14.5%

14.6%

15.0

10.8%
10.0%

10.0
7.3%

7.3%

7.3%

7.3%

7.4%

7.4%

6.5%

5.0%

1.03

0.62

0.71

5.0

0.72

1.01

0.77

0.0%

0.0
FY2019/3
19/3期

FY2020/3
20/3期

FY2021/3
21/3期

FY2022/3
22/3期

FY2023/3
23/3期

FY2024/3
24/3期

FY2025/3
25/3期（Forecast)

FY2026/3
26/3期

FY2027/3
27/3期

FY2028/3
28/3期※Cost of Equity is calculated by Ｃａｐｉｔａｌ Ａｓｓｅｔ Ｍｏｄｅｌ. Cost of Equity will be around 7 to 8%.

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23

Sun Frontier Fudousan Co., Ltd

Driver to improve ROE
Keep employees in high engagement through Sun Frontier Philosophy and Ameoba Management. Promoting Businessby the style of “All join to Management”.

ROE

売上高
Net
Profitmargin
純利益率

Real
Estate
不動産
Revitalization
再生事業
Business

Improvement of
manufacturing ability

P. 15

Fulfill properties for sale

P. 9

Enhancement of leasing
abilityP. 18

Site supervision andconstruction schedulemanagement

P. 15

Enhancement proposal
ability

P. 15

Customer growthP. 18

Service Enhancements

P. 9

Growth into a highly profitable
高収益事業への成長
business

RevPAR Improvements

P. 15

Developmentof high added value
高付加価値な開発

Expansion of
manufacturing ability

P. 15

Allocation of appropriate
適正な投資配分
investment

Aggressive investment inBusiness

P. 19

Verification of postinvestment returns

P. 19

Dividends based on profit
growthP. 20

Shorteningof the business period
事業期間の短縮

総資本
Total
asset
turnover
回転率

Real
Estate不動産
Services
サービス事業
Business

Hotel
and
ホテル・
Tourism
観光事業
Business

自己資本
Financialleverage
比率

Capital
資本政策
policyIncrease ratio of stock business
利益率・資産効率の高い
with high profit margin and asset
ストックビジネス比率向上
efficiency

Stableshareholder return
安定的な株主還元

Amoeba management

P. 19

Sun Frontier Philosophy

Improvement of purchaseability

Continuation and maintenance of
高収益事業の維持継続
highly profitable businesses** Amoeba management is the registered trademark of KYOCERA Corporation.

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

24

Sun Frontier Fudousan Co., Ltd

Sun frontier’s Strength
Create a good corporate climate and culture based on the two wheels of Philosophy andAmoeba Management to realize our Management philosophy.
Realization of the Management philosophy
Corporate climate and culture
Management among all employees’participation(1) Management based on the hearts of people (2) Culture that values challenges

Amoeba management *Philosophy(1) Realization of all-employee participatory
management(2) Development of human resources withmanagement awareness(3) Market-based divisional accounting system(1) The heart of altruism(2) Being right as a person(3) Absolute proactivity
By philosophy,
even as the Group's businesses diversify and various
employees work, it is possible to create a corporate
culture that transcends the boundaries of businesses
and enables each and every employee to connect witheach other across the organization and to co-create
ambitious goals.

What is Ameba Management?
A process in which all members of an organization
participate in management through the use of adivisional accounting system by functional small groups(ameba). Management status of each division can be
grasped even in the midst of business expansion* Amoeba management is the registered trademark of KYOCERA Corporation.

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

25

Sun Frontier Fudousan Co., Ltd

Strengthening IR Activities
By expanding IR activities, we aim to make more conversation with capital market actively.
IR activities
Presentation of financial
results

Held every quarter by President Representative
Director, Seiichi Saito.

Website for on-demand broadcast (including Q&A)
https://www.sunfrt.co.jp/ir_info/ir_doc/on-demand.html

Individual IR meetings

Conducted individually as needed.
(mainly handled by IR staff).

FY2024/3: 68 times (FY2023/3: 61 times)

Property visit

A hotel visit(Hiyori Hotel Maihama) held on July 12, 2023 for sell-side analysts and institutional investors.

Web sites for investors

FISCO: https://web.fisco.jp/platform/companies/0893400

Investor briefings

Participated in a seminar for individual investors hosted by the Securities Analysts Association of Japan (To be held on March 12, 2024 at the
Nikkei Kayabacho Conference Room)

Disclosed materials
Financial Results

Disclose Japanese and English version simultaneously.
Disclose Chinese version within a week after Japanese.

Website (IR Library)

IR Presentation

Disclose Japanese, English version and Chinese version
simultaneously.

Annual Securities Report

Disclose Japanese and English version.

Japanese: https://www.sunfrt.co.jp/ir_info/
English: https://www.sunfrt.co.jp/en/ir_info/ir_doc/annual_securities_report/

Notice of General
Meeting of Shareholders

Disclose Japanese and English version.

Japanese: https://www.sunfrt.co.jp/ir_info/annual_general_meeting/English: https://www.sunfrt.co.jp/en/ir_info/annual_general_meeting/Anaylist Report

FISCO 、 Shared Research

Japanese: https://www.sunfrt.co.jp/ir_info/
English: https://www.sunfrt.co.jp/en/ir_info/

Japanese: https://www.sunfrt.co.jp/ir_info/ir_doc/statement-of-accounts/
English: https://www.sunfrt.co.jp/en/ir_info/ir_doc/statement-of-accounts/
Chinese: https://www.sunfrt.co.jp/ch/ir_info/ir_doc/

Shareholder benefit program
OutlineDiscount coupons for hotels operated by our group companies based on the number and period of shares held.

Details and facilities
available for use

Shareholder benefit program website
https://www.sunfrt.co.jp/ir_info/stockholder_benefit_plan/

Copyright © 2024 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

26

Sun Frontier Fudousan Co., Ltd

Sun Frontier Fudousan Co., Ltd

Thank you for your continued support.
◆ 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 removal 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