Sun Frontier Fudousan Co., Ltd.

Consolidated Financial Statements for theThird Quarter of the Fiscal Year ending
March 31, 2018
Our goal is to be the real estate company
that customers love and choose over any other worldwide.
Executive Summary Results for the Third Quarter of
FY ending Mar 31, 2018

1 - 10Future activities

1) Business environment

11 - 132) Managial policy

14 - 163) Growth strategies

17 - 404) Reference/Company Overview

41 - 46

February 7, 2018
Stock Code：8934

Summary of the Results for the Third Quarter
Summary of the Third Quarter for Fiscal Year Ending March 31, 2018
For the cumulative third quarter, sales and income marked a record high.
Sales andProfit Ratio

Results

Year on Year
Change(¥ million)

Rate of
ChangeForecast of
FY2018/3

Achievement
Rate

Operating income

33,473
7,507

Ordinary income

7,194

21.5%

+659

+10.1%

10,00071.9%

Net income※

4,906

14.7%

+392

+8.7%

7,000

70.1%

Sales

―

+6,304+23.2%

50,000

66.9%

22.4%

+603

+8.7%

10,50071.5%(※) Net income attributable to owners of parent

Highlights
1) The business performancegoes as planned• For the 3rd quarter, we earned recordhigh sales and profit.
• The replanning business contributed
to the overall results, keeping
ordinary income ratio over 20%.

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

2) Procurement is progressing well.
•••

Procurement for properties to sell in FY2019/3 hasbeen almost finished.
Furthermore, we will procure buildings for rental
to increase the revenue from the rental building
business.
Number of buildings in inventory related toreplanning business at the end of this quarter is
42. Balance of inventory assets increased to 36.0
billion yen. (increased 35.1% compared to thesame period of previous fiscal year.) (Number ofbuildings at the end of December 2016 is 39, worth
26.7 billion yen)13) Increase of capital•••

Between Dec. 2017 and Jan. 2018, capital wasincreased, procuring about 7.1 billion yen.
It was allocated to the development of thehotel brand “Hiyori Hotels & Resorts.”
Our corporate group aims to improve
profitability, maintain the stability of businessadministration, and enhance our corporate
value.

Sun Frontier Fudousan Co., Ltd.

Revenue/Profit Summary
Apr. to Dec. in
the FY ended
Mar 31, 2017

Sales

27,168Apr. to Dec. in
the FY ending
Mar 31, 201833,473Operating income(¥ million)

Apr. to Dec. in
the FY ended
Mar 31, 2017

Apr. to Dec. in
the FY ending
Mar 31, 2018

7

12

377

325

6,534

7,194

6,904

7,507

23,89928,741Non-operating income

22,39927,003Non-operating expenses

Rental Building, Sublease

1,500

1,737

Real Estate Service Business

2,331

2,345

Extraordinary loss/income

0－

Operation Business

786

2,170

Corporate income tax, etc.

2,023

2,296

Other Business

522

707

(1)

(7)

Adjustment

(370)

(490)

11,0394,906

Gross Profit

10,012

4,513

8,127

8,931

7,383

8,220

Rental Building, Sublease

744

710

Real Estate Service Business

1,375

1,424

Operation Business

134

308

Other Business

419

486

Adjustment

(44)

(111)

3,108

3,532

Real Estate Revitalization Business
Replanning Business(including Hotel Development)

Real Estate Revitalization Business
Replanning Business(including Hotel Development)

Selling and general administrative
expenses
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Ordinary income

Profit or loss of Non-controllinginterest

Net income• Gross profit ratio of the third quarter of replanningbusiness (including Hotel Development) is 30.4% (grossprofit ratio of the same period of last fiscal year was
33.0%.)• Operation business and other new businesses are all
expanding smoothly. Total sales grew 2.2 times year on
year to 2.87 billion yen. Gross profit increased 1.4
times year on year to 790 million yen.

2

Sun Frontier Fudousan Co., Ltd.

Consolidated Balance Sheet-Assets(¥ million)
Increase/Decrease(Compared to theend of Mar. 2017)

End of Mar. 2016

End of Mar. 2017

End of Dec. 2017

Current assets

51,36555,19569,483+14,287

Cash and deposits

15,413

16,246

21,930+5,684Inventory assets

32,71436,18645,243+9,057

Breakdown)

27,1895,525－

26,0397,254
2,892

36,0785,530
3,634+10,039(1,723)
+741

3,237

2,762

2,308

(454)

2,718

8,458

10,687+2,228

1,919

7,288

8,439

+1,151Intangible assets

278

562

496

(66)

Investments and other assets

520

608

1,751

+1,14354,08463,65480,170+16,516RP
HotelOverseas, etc.

Other current assets

Noncurrent assets
Property, plant, and equipment

Total assets

While the sale of properties for replanning business progressed, procurement and commercialization progressed too. As a result, the balance of inventory assets
grew 10 billion yen.As one hotel was sold, the balance of inventory assets of the hotels dropped 1.7 billion yen.
Property, plant, and equipment increased about 1.1 billion yen, due to the acquisition of a hotel (about 700 million yen) for increasing the revenue from rents and theprogress of construction of Tabino Hotel Hida-Takayama. Investments and other assets grew about 1.1 billion yen, due to the guarantee money deposited for hotel
development (1 billion yen), etc.
Capital increased 6.22 billion yen through a public offering. (In January, capital grew 930 million yen through a private placement for the over allotment amount.)

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

3

Sun Frontier Fudousan Co., Ltd.

Consolidated Balance Sheet-Liabilities/Equity(¥ million)

End of Mar. 2016

End of Mar. 2017

7,641
3,353
973
3,314
16,29815,055
1,242
23,93930,144(0)30,14454,084

8,281
3,438
802
4,040
19,686
18,626
1,059
27,96835,528157
35,68663,654Current liabilities
Short-term loans payable, etc.
Income taxes payable, etc.
Other current liabilities

Noncurrent liabilities
Long-term loans and bonds
payableOther noncurrent liabilities

Total liabilities
Shareholders’ equity
OthersTotal net assets
Total liabilities and capital
Transition of Equity Ratio
End of Mar. 2016

End of Mar. 2017

End of Dec. 2017

55.7%

56.0%

56.7%

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

Increase/Decrease(Compared to the endof Mar. 2017)

End of Dec. 2017

7,347
1,531
1,883
3,932
27,37725,7291,648
34,72545,37371
45,44580,170(933)(1,906)+1,080(107)+7,691+7,102+588+6,757+9,845(86)+9,758+16,516

Because of the progress of the procurement of properties for replanning business, loans
payable increased by about 5.2 billion yen compared with the end of previous fiscal year
and balance of interest-bearing debt of the end of Dec. 2017 became 27.2 billion yen.

Net income: up 4.9 billion yen, dividend payment: down 1.28 billion yen, capital:
up 6.22 billion yen (up 930 million yen for a private replacement in Jan.)

4

Sun Frontier Fudousan Co., Ltd.

Performance ofReplanning Business(Replanning (RP)/ Hotel Development)
Apr. to Dec. in
the FY ended
Mar 31, 2017

Apr. to Dec. in
the FY ending
Mar 31, 2018

22,39927,003+20.6%

Segment income (Note1)

6,996

7,734

+10.6%

Profit margin

31.2%

28.6%

(2.6%pt)

No. of procured
properties

23

31

+8

No. of sold properties

16

23

+7

45(Note2)

47(Note2)+2(¥ million)
Sales

No. of properties in stock
as of the end Dec.

Increase/
Decrease Sales and profit grew
 As we are keeping on making ingenious efforts towards procurement,commercialization and sales, as well as direct sales to our customers,
profit margin of Replanning Business excluding Hotel Development
maintains at a high level of 30.6%.
 The average business period for selling revitalized properties is 349 days
(Hotel development excluded)
 Procurement progressed substantially, and the number of properties ininventory is 47 (42 for replanning business and 5 for hotel business.)
 Balance of inventory assets is 41.6 billion yen (36.0 billion yen of which is
replanning business, 5.5 billion yen of which is hotel business.)※Overseas business excluded.
※We have also procured 12 pieces of RP real estate worth 10.1 billion yen asof the end of Jan.
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

5(¥ million)

30,000

Sales
Segment Income
Profit Margin60%
27,00325,00050%

22,39920,00015,00040%
31.2%

10,000
6,996

28.6%

7,734

30%

20%

5,000

10%

0

0%
FY2017/3

Apr. to Dec.

FY2018/3

Apr. to Dec.

(Note1) “Segment income” is calculated by subtracting various expenses ofrespective businesses from gross profit on sales. Various expenses
include interest paid, sales commission and goodwill amortization, etc.
(Note2) Land procurement and development cases are also included in theinventory of replanning business.

Sun Frontier Fudousan Co., Ltd.

Performance ofRental Building Business(Rental Building / Sublease)(¥ million)

Apr. to Dec. in
the FY ended
Mar 31, 2017

Apr. to Dec. in
the FY ending
Mar 31, 2018

1,500

1,737

Sales
Segment
incomeProfit margin

744
49.6%

710
40.9%

Increase/
Decrease+15.8%(¥ million)

2,000

1,500

1,500

60%
49.6%

 Sales grew, because the revenue from rents increased due tothe rise in the balance of inventory assets.

40.9%

1,000

 On the other hand, the ratio of buildings that have manyvacant units suited for the replanning business is high. As the744

ratio of cost, including depreciation, to sales increased, profit
dropped.
 In Aug. 2017, we acquired an existing hotel in front of Toyama

80%
1,737

(4.5%)(8.7%pt)

Sales
Segment Income
Profit Margin

40%

710

500

20%

0

0%

Station as fixed assets, for the purpose of increasing therevenue from rents.
 We will concentrate on the expansion of the business withbuildings to be owned for a long period of time for as stock
type business, in addition to flow type business.
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

6

FY2017/3

Apr. to Dec.

FY2018/3

Apr. to Dec.
Sun Frontier Fudousan Co., Ltd.

Performance ofReal Estate Service Business(Sales Brokerage/ Rental Brokerage / Property Management(PM) / Building Maintenance(BM))
Apr. to Dec. in
the FY ended
Mar 31, 2017

Apr. to Dec. in
the FY ending
Mar 31, 2018

Sales

2,331

2,345

+0.6% 3,000

Segment
income

1,375

1,424

+3.6%

Profit margin

59.0%

60.7%

+1.7%pt(¥ million)

Increase/
Decrease(¥ million)

2,400＜Sales Brokerage Business/Rental Brokerage Business ＞
1,800
 The sales and profit of the brokerage business declined, but it served
as the driver for the creation of high added value from the viewpoint ofour customers in the processes of procurement, commercialization,and sale of PR real estate, and contributed to the revenue of the entire
corporate group.
＜PM Business/BM Business＞
 In the PM and BM businesses, we steadily increased managing
properties, and offered services with high added value, including
meticulous tenant management and solving our customer’s troubles.
As a result, sales and income rose, contributing to the growth of thebusiness of real estate services.
【Variations in the number of managing properties buildings for PM andoccupancy rate】
No. of managing properties Occupancy rate
End of Dec. 2015
315
96.3%
End of Dec. 2016
356
96.5%
End of Dec. 2017
369
95.5%
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

7

Sales
Segment Income
Profit Margin

100%

2,345

2,331

80%

60.7%
59.0%
1,375

60%

1,424

1,200

40%

600

20%

0

0%
FY2017/3

Apr. to Dec.

FY2018/3

Apr. to Dec.
Sun Frontier Fudousan Co., Ltd.

Performance ofOperation Business(Hotel Management / Space Rental)(¥ million)

Sales
Segment
incomeProfit margin

Apr. to Dec. in
the FY ended
Mar 31, 2017

Apr. to Dec. in
the FY ending
Mar 31, 2018

786

2,170

Increase/
Decrease+176.0%134264+96.2%

17.1%

12.2%

(5.0%pt)＜Hotel Management Business＞
 Both sales and profit grew significantly, thanks to the effects of M&A
of “Sky Court Hotel Co., Ltd.” at the end of year before last year andothers.
 For “Hotel Sky Court” and “Spring Sunny Hotel”, both occupancy rate
and average spending per customer were healthy.
 “Hiyori Hotel Maihama” keeps second rank in the popular hotel
section in a target area based on the word-of-mouth evaluation in aleading hotel booking website.
＜Space Rental (Rental Conference Room) Business＞
 By the 3rd quarter, we have newly opened 4 facilities in Nihonbashi,
Yaesu, Nagata-cho, and Hamamatsu-cho, and the total number offacilities reached 9. In May 2018, a co-working space is to be openedin Yuraku-cho.
 Both sales and profit grew considerably, due to the steady increase of
repeat users and introductions, and the favorable performance of
newly-established rental rooms.

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

8(¥ million)

2,500

Sales
Segment Income
Profit Margin

50%
2,170

2,000

40%

1,500

30%

1,000
786

20%

17.1%
12.2%

500

264

10%

134
0%

0
FY2017/3

Apr. to Dec.

FY2018/3

Apr. to Dec.
Sun Frontier Fudousan Co., Ltd.

Performance of

Other Business(Rent Guarantee / Overseas Business, etc.)
Apr. to Dec. in
the FY ended
Mar 31, 2017

Apr. to Dec. in
the FY ending
Mar 31, 2018

Sales

522

707

+35.5%

Segment
income419

486+16.0%

80.2%

68.7%

(11.6%pt)(¥ million)

Profit margin

Increase/
Decrease＜Rent guarantee business＞
 We have been keeping on making efforts in improving the awareness ofguarantee system by holding seminars for building owners and cooperatingcompanies. As a result, cases of new guarantee and guarantee renewal are
increasing steadily, therefore both sales and profit increased about 30% as
well.

(¥ million)

1,000

Sales
Segment Income
Profit Margin

100%

80.2%

800

80%
707 68.7%

600

400

60%

522

486
419

40%

＜Overseas Business＞
 Accelerate the development in Southeast Asia which is growing
continuously.
①Danang, the Biggest City in Central Vietnam

200

20%

0

0%

・Owning and operating our first overseas hotel “The Blossom City”
・Construction for “Hiyori Garden Tower”, high-rise urban apartment
house of 28 floors and 306 units has started in June, 2017.
②Jakarta, Capital of Indonesia

FY2017/3

・Promotion of construction of urban condominiums
・Owning and operating Serviced Apartment “Kyo Serviced Apartment”.
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

9Apr. to Dec.

FY2018/3

Apr. to Dec.
Sun Frontier Fudousan Co., Ltd.

Valiation of Key Performance Indicators◆Transition of ordinary income ratio(¥ million)

50,00040,00035,00024.4%30%Forecast
for FY2018/3

45,000

売上高
Sales
経常利益
Ordinary Income
Ordinary Income Ratio
経常利益率
22.9%

20.2%

(¥ million)

45,000
25%

22.0%

20%

35,00080%

純資産
Net Assets
Equity Ratio
自己資本比率70%

40,000

21.5%

53.7%

56.2%

55.7%

56.0%

56.7%

15%

25,00040%

25,00020,00020,000
Forecast
for FY2018/3

15,00010,000

10%30%

15,00020%
10,000

5%

10%

5,000

5,000

2014/3 2015/3 2016/3 2017/3 2017/12
2018/3Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

60%
50%

30,00030,000050,000◆Transition of Equity ratio

0%

0

10

2014/3 2015/3 2016/3 2017/3 2017/12
2018/30%

Sun Frontier Fudousan Co., Ltd.

Future Developments
1) Business Environment2) Managial Policy3) Growth Strategies

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

11

Sun Frontier Fudousan Co., Ltd.

Business Environment
1. The global economy has been recovering, and is estimated to grow 3.9% (up 0.2% year on year) in 2018.
◆

According to IMF, economic growth was accelerated globally in 2017, exceeding forecasts especially in Europe and
Asia.

◆

It is estimated that the reform of the U.S. tax systems will invigorate economic activities, while the economic
growth in China will gradually become gentle.

◆

We pay attention to the risk that economic growth will become sluggish, due to the rise of protectionism aroundthe world and the unexpected, sudden tightening of monetary policies.

2. The Japanese economy is expected to recover gently, as the environments of employment and income are improving.
◆

The real growth rate of the Japanese economy increased for the 7th consecutive quarter. It is underpinned byfavorable equipment investment and foreign demand.

◆

The number of foreign visitors to Japan and their consumption amount marked a record high. The consumption
amount exceeded 4 trillion yen for the first time.

◆

We need to pay attention to the uncertainties of overseas economies, the fluctuations in the financial and capital
markets, and geopolitical risks of North Korea, etc.

3. The urban office building market is still thriving, because demand is healthy thanks to good corporate performance.
◆ Average rent is slightly rising, and vacancy rate is low. Demand can be considered to remain healthy.
◆

Although we have some concerns over the office supply volume this year, but it is expected that the demandsupply balance will remain relatively good.

◆

For J-REIT, the funds for investment trust with monthly distribution have excess outflow, but the performance ofeach company is healthy as a whole.

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

12

Sun Frontier Fudousan Co., Ltd.

Changes in office Rent and Vacancy Ratein 5 Wards of Central Tokyo
Averagerent [yen/tsubo]
平均賃料（円/坪）（％）

Averagevacancy rate [%]平均空室率（％）(yen)

Average rent in Dec., 201719,173 yen

increased for consecutive 4
years (+18.3 % fromthe bottom value)
Peak of vacancy rate
Jun. 2012
Vacancy rate: 9.43%

Peak of average rent
Aug. 2008
22,901 yen

Peak of vacancy rate
Aug. 2003
Vacancy rate: 8.57%

Bottom average rent
Dec. 201316,207 yen

Bottom average rent
Oct. 2004
17,526 yen

2002

2003

2004

2005

2006

2007

2008

Vacancy rate in Dec., 2017

3.12%

Bottom vacancy rate
Nov. 2007
Vacancy rate: 2.49%

Improved 6.31% by 5.5 years

2009

2010

2011

2012

2013

2014

2015

2016

2017

※Source: Created based on Miki Shoji’s “Office Report.” Graph reflects office buildings within the 5 wards of Tokyo of which have a standard floor area of
100 tsubo (roughly 331 square meters) or larger.
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

13

Sun Frontier Fudousan Co., Ltd.

2) Managerial Policy

Not for profit, but for trust.
We change, not you. We resolve difficulties fromour customers’ point of view.

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14

Sun Frontier Fudousan Co., Ltd.

Sun Frontier’s Vision and Policies
VisionAs professionals in real estate utilization, our goal is to be“the company that customers love and choose the most in
the world.”

Customers Building owners, asset holders, and wealthy individualCore
Business

Real estate revitalization and utilization

Policies Not for profit, but for trust.

To focus on people rather than property
Solve any real estate related difficulties from theperspective of our customers

Strategies

CentralTokyo

OfficeStrength

TenantFinding
Capability

Real Estate
Revitalization
Capability

Operation Capability
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

15

Sun Frontier Fudousan Co., Ltd.

Business Contents
Office Buildings
Real Estate Revitalization Business
Re-planning(RP)Building Rental
Real Estate Securitization

Real Estate Services Business
Rental Brokerage / Sales Brokerage
Property Management(PM) / Building
Maintenance(BM)Construction Planning / Interior Design
Asset Consulting
Rent Guarantee
Rental Conference Room and Small Office

Overseas

Hotel

Hotel Management and Housing Developments
in Vietnam
Hotel Management and Detached House
Developments in Indonesia
Attract investment from Taiwan to Tokyo

Hotel Possession and Operation
Hotel Development, Revitalizationand Sales

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

16

Sun Frontier Fudousan Co., Ltd.

3) Growth Strategy
To increase “flow type business” andexpand the “stock type business”－To strengthen the earning foundation －Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

17

Sun Frontier Fudousan Co., Ltd.

Flow type business and Stock type business■Replanning business(RP)■Hotel development business■Urban condominium business(overseas)

Investment business

Revitalization and developmentof real estate that would
create the value of people and society

Flow type business■Sales brokerage business■Lease brokerage business(LM)■Construction solution business

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

－To please and impress customers－■Rental building business■Hotel operation business■Space rental business■Sublease business
Stock type businessFee businessBusiness of solving troubles fromthe viewpoint of customers－Close consultant－Warm-hearted operation
Warm-hearted
operation－To
please and impress
customers－

Meticulous
building
operation
Meticulous
building
operation－Competitive building management－－Competitive building management－■Property management business(PM)■Building maintenance business(BM)■Rent guarantee business■Lease business18

Sun Frontier Fudousan Co., Ltd.

Sales growth of the stock type businessin the coming 5 years
Theme: To contribute to society by utilizing real estate and spaces in buildings
We put importance on the needs of customers, make them happy and improve convenience, andcreate high added value, to increase customers.

Term ending Mar. 2023

Term ending Mar. 2018
Rent
Space Guarantee
rentalSpace
rentalRentalbuildings

Rent
Guarantee

Rentalbuildings

16 billion
yen
About
Hotel
operation 2.3 times

7 billionyen
operation
Hotel

PM
BM

PM

BM
※ The forecast for sales growth is from the current plan, and may be revised in the future.
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

19

Sun Frontier Fudousan Co., Ltd.

Analysis of the Current Situation (1)Variations in revenue from rental buildings and occupancy rate
(medium and long-term RP and hotels in operation)

Revenue from lease (right axis)
賃貸ビル収入（右軸）Occupancy rate (left axis)
稼働率（左軸）(¥ million)

100%

400

350
95%
300

90%

250

200
85%
150

80%

1Q

2Q

3Q

FY2014/3
2014/3期

4Q

1Q

2Q

3Q

FY2015/3
2015/3期

4Q

1Q

2Q

3Q

FY2016/3
2016/3期

4Q

1Q

2Q

3Q

FY2017/3
2017/3期

4Q

1Q

2Q

3Q

100

FY2018/3
2018/3期※Revenue from rental buildings: Rents from RP real estate owned for a medium/long period of time and hotels in operation※Occupancy rate: Total Area Occupied / Total Area for Rental; 3 month weighted average
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

20

Sun Frontier Fudousan Co., Ltd.

Analysis of the Current Situation (2)Variations in the occupancy rate and area of buildings
managed by PM
Area managed by PM

100％

PM受託面積(right axis) （右軸）(㎡)

Occupancy rate of medium-sized

Occupancy rate of real estate

PM受託物件の稼働率
managed by PM (left（左軸）axis)

東京23区中型ビルの稼働率
buildings in 23 wards of （左軸）Tokyo (left axis)

800,000

96.7%(as of the end of Jan.
2018)

Occupancy rate of real estate
managed by PM

98％

700,000

96％

600,000

94％

95.7%

(as of the end of Jan.
2018)

Average occupancy rate of mediumsized buildings in 23 wards of Tokyo92％

500,000
400,000

90％

300,000

88％

200,000

86％
84％

As about 75% of real estate managed by PM are over 20 years old,
we received inquiries about repair and replacement of assets,meaning we are exerting the comprehensive capability of solving
problems, which is our strength.

100,000

1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q
FY2009/3

FY2010/3

FY2011/3

FY2012/3

FY2013/3

FY2014/3

FY2015/3

FY2016/3

FY2017/3

0

FY2018/3※Source: The average occupancy rate of medium-sized buildings in 23 wards of Tokyo was calculated by our company with reference to “Monthly Report on Office Market Surveys” by Sanko Estate.
※Occupancy rate: Total Area Occupied / Total Area for Rental; Occupancy rate and managed area include those of real estate subject to our RP.
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

21

Sun Frontier Fudousan Co., Ltd.

Analysis of the Current Situation (3)Variations in the revenue from rents for real estate
managed by PM and the number of tenants(¥ million)

Total rents per year for real estate managed by PM (left axis)
受託物件のテナント総賃料の年額換算（左軸）35,000(companies/tenants)
4,500

Number of tenants (right axis)
テナント数（右軸）

4,000
30,0003,500
25,000

3,000

2,500

20,0002,000
15,0001,500

10,000

1Q

2Q

3Q

4Q

1Q

FY2014/3
2014/3期

2Q

3Q

FY2015/3
2015/3期

4Q

1Q

2Q

3Q

FY2016/3
2016/3期

4Q

1Q

2Q

3Q

FY2017/3
2017/3期

4Q

1Q

2Q

3Q

1,000

FY2018/3
2018/3期※Total rents per year: The total amount of rents converted to a yearly amount from the amount which tenants of real estate managed by PM were claimed at the end of each quarter※Number of tenants: The number of tenants of real estate managed by PM (as of the end of each quarter)

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

22

Sun Frontier Fudousan Co., Ltd.

Analysis of the Current Situation (4)Variations in the guarantee fee and the number of contracts
in rent guarantee business(No. ofcontracts)

Cumulative number of contracts (left axis)(¥ million)

Advance payment of guarantee fees (right axis)

4,000

700

3,500

600

3,000

500

2,500
400
2,000
300
1,500
200

1,000

100

500
0

1Q

2Q

3Q

4Q

1Q

FY2014/3
2014/3期

2Q

3Q

FY2015/3
2015/3期

4Q

1Q

2Q

3Q

4Q

1Q

FY2016/3
2016/3期

2Q

3Q

FY2017/3
2017/3期

4Q

1Q

2Q

3Q

0

2018/3期
FY2018/3※Advance payment of guarantee fees: Balance of advances for the guarantee contract as of the end of a quarter
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

23

Sun Frontier Fudousan Co., Ltd.

Analysis of the Current Situation (5)Variations in the occupancy rate and thenumber of guests of hotels(guests)

120,000

Number of hotel guests (left axis)
宿泊人数（左軸）

100,000

Hotel occupancy rate (right axis)
ホテル稼働率（右軸）In Apr. 2017,
Hiyori Hotel
Maihama opened

100%

87.5%

In Jan. 2017, we started
operating
４ Hotel Sky Courts（Kawasaki, Koiwa,
Narita, and Hakata)80,00080%

60%

60,00040,000In Dec. 2015,
Spring Sunny Hotel
Nagoya-Tokoname
opened40%

20,000

0

3Q

4Q

1Q

2016/3期
FY2016/3

2Q

3Q
FY2017/3
2017/3期

4Q

1Q

2Q

3Q

20%

FY2018/3
2018/3期※Hotel occupancy rate = Total number of occupied guest rooms / Total number of available guest rooms; 3 month weighted average
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

24

Sun Frontier Fudousan Co., Ltd.

Analysis of the Current Situation (6)Variations in the number of seats of rental conference
rooms and the number of customer corporations（seats）
4,000

Number of seats (left axis)
座席数（左軸）（corporations/clients）

Number of customer corporations (right axis)
利用法人数（右軸）

1,600

3,500

1,400

3,000

1,200

2,500

1,000

2,000

800

1,500

600

1,000

400

500

200

0

1Q

2Q

3Q

4Q

2017/3期
FY2017/3

1Q

2Q

3Q

0

2018/3期
FY2018/3※Number of seats: The number of seats of rental conference rooms as of the end of each quarter
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

25

Sun Frontier Fudousan Co., Ltd.

Target Fields
We communicate with real estate markets, and actively operate our businessin four business fields where demand will grow.

1. Rise in theinternational
position of Tokyo

2. Utilization of surplus
money and expanding
investment funds

3. Business targetedat visitors to Japan

4. Asia region which
are growing rapidly

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

26

Sun Frontier Fudousan Co., Ltd.

Four-pronged Strategy for Future Growth
1) Existing

Development and Expansion ofBusiness Expansion

Office Building Business

Inbound2) Hotel Business

City-tourism Hotel
Stock Acquisition,3) M&A

Capital Participation, Business Alliance4) Overseas
Business Development

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

Vietnam & Indonesia
27

Sun Frontier Fudousan Co., Ltd.

Real estate revitalizing case (1) First in Minato-ku- Shibaura Riverside A building for investment -Creation of waterfront space by combining buildings
and a canalAppearance

BeforeAppearance

After

1st floor Before

1st floor After

1. Purchase of a building thatsatisfies the old aseismic
standards
2. Aseismic reinforcement
while existing tenants stay
3. The purpose of use of thefirst floor changed from aparking area to a restaurant
through enlargement work
4. A walkway built inside thepremises to access thecanal-side esplanade.
Refreshing space created byconstructing a stair-likebench
5. Sale to a wealthy individual【Property Outline】■ Location: Shibaura, Minato-ku, Tokyo■ Structure: 7-story reinforced concrete building
with a flat roof
■ Date of completion: 1976 (42 years old)
■ Purpose of use: office, apartment, shop
■ Land area: 306.55㎡（92.73 tsubo）■ Gross floor area: 1339.99㎡（405.34 tsubo）
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

The connection with the canal was actualized by reaching an agreement among thegovernment and private sectors and the local community.

28

Sun Frontier Fudousan Co., Ltd.

- A building for investment in Nishi-shimbashi -Real estate revitalizing case (2)To cancel excess of floor area ratio, and create a spacewith openness【After revitalizing】【Before revitalizing】

The floor of the 9th
floor dismantled

OfficeOfficeOfficeOfficeOfficeOfficeOfficeOfficeOfficeOfficeOfficeOfficeGarbage collection
point installed

OfficeShop

Road

OfficeOfficeShop

Road

Indoor After

Appearance

After【Property Outline】■ Location: Nishi-shimbashi, Minato-ku, Tokyo■ Structure: 9-story reinforced concrete building
with a flat roof
■ Date of completion: 1988 (30 years old)
■ Purpose of use: office, shop
■ Land area: 174.46㎡（52.77 tsubo）■ Gross floor area: 1,855.28㎡（349.37 tsubo）
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Office space on the 8th floor after the dismantlement of 9th floor area29

1. The parking area wastransformed into a shop.
We purchased a building
whose floor area ratio isexcessive.
2. The floor slab of the 9th
floor was dismantled
while tenants stayed.
Floor area was reduced,
to correct floor area ratio.
3. A ceiling height of over
5.4 m was secured on the
8th floor. A space with
openness was created.
4. Sale to repeat customers
Sun Frontier Fudousan Co., Ltd.

Expansion of the existing business

The space rental service of the sharing
business is offered at a total of 9 facilities【Purposes of use of rental
conference rooms】
Meetings, seminars,
lectures, exhibitions,
examinations, training,briefing, party, etc.

Rental conference room (Vision Center)・・・5 facilities (2,759 seats)
Rental office (Vision Office)・・3 facilities（19 rooms）
Co-working (Vision Works)・・・・１ facility

5 rooms

Kanda⑦ Vision CenterTokyo-Nihonbashi

Strengthening of
the sharing
business

8 rooms⑨ Vision Center
Nagata-cho

Nihonbashi

Tokyo② Vision Office Kanda④ Vision Office Kanda
ANNEX⑧ Vision CenterTokyo Annex

Nagata-cho
Shinjuku

Hamamatsucho

573 seats③ Vision Office Shinjuku

Tamachi

Shinagawa6 rooms

676 seats
747 seats

424 seats

Yokohama⑥ Vision Center
Yokohama

339 seats⑤ Vision Center
Tamachi⑩ Vision Center
Hamamatsu-cho※The number of seats of rental conference rooms was calculated assuming the school format (table for three).
In the case of rooms that cannot adopt the school format, the number of seats of a square table was calculated.

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

30

Under the introduction from LM and PM businessdivisions, which have good sense for the market ofcentral Tokyo, many following projects at good
locations were launched. In May and June 2017, we
opened 2 facilities in vicinity of Tokyo Station, andmade them profitable on a single month basis in ashort period of time. We also opened them in Nagatacho and Hamamatsu-cho in August, and increased
the floor area of Vision Center Tokyo Annex inNovember.

Sun Frontier Fudousan Co., Ltd.

Hotel business

Variations in the number of foreign visitors to Japanand their consumption amountThe number of foreign visitors to Japan exceeded 10 million for the first time in 2013, and has skyrocketed, due to the yen
depreciation, the relaxation of requirements for visas, the improvement in income levels in Asia, etc. It reached 28.69 million in2017, and their consumption amount exceeded 4 trillion yen.
The government of Japan set the goals of increasing the number of foreign visitors to Japan to 40 million by 2020 and 60 million
by 2030, and boosting their consumption amount to 8 trillion yen by 2020 and 15 trillion yen by 2030.

No. of foreign visitors to Japan and their consumption amount(10,000 visitors)(billion yen)

7,000

15,000Consumption amount

6,000

No. of foreign visitors to Japan

14,000

6,000

12,000

5,000
4,000

4,000
2,869

3,000

1,973

2,000
1,000
0

16,000

621

835

1,036

813

1,084

1,416

2011

2012

2013

10,000
8,000

8,000

2,403

6,000
4,416

1,341
3,477

4,000

3,747

2,000

2,027

0
2014

2015

2016

2017

・・・

2020

・・・

2030

※Source: Produced by our company with reference to the documents released by Japan National Tourism Organization※The dotted line represents an estimate.
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

31

Sun Frontier Fudousan Co., Ltd.

Hotel Business

Theme “Heart-warming Hotel”【Features】
1. Hotel which grows continuously with the staffs’ attention
to the customer’s viewpoint.
2. Hotel which cherishes the local culture and history, andcan reclaim its appeal.
3. Hotel where one can enjoy high quality and exclusive
service.

＜List of Domestic Hotel＞＜Domestic Hotel＞
In operation
Under construction
In plan & preparation

Total No. of Rooms

1,253
327
773

Sado (Kanai)
Sado (Azuma)

2,353

Toyama※ As of Dec. 31, 2017
※ Hotels “in service” include hotels “in operation,”“rented,” and “being renovated” in the redframe of the right table.

Iwaki

HidaTakayama

Shijo Kawaramachi,
Kyoto
Honmachi, Osaka

Maihama
Narita Airport

Nanba, Osaka

NaritaKoiwa
Ginza-higashi

HakataTokoname

KawasakiNo. ofRooms

StatusOpen (Plan)

Brand

Rented――In
operation

Apr. 2016

Collabora
Tokoname
tive

194

In
operation―

Original Kawasaki

200

In
operation―

Original Koiwa

105

In
operation―

Original Narita

100

In
operation―

Original Hakata

159

In
operation

Apr. 2017

Original Maihama

80

Rented―Other
Company Toyama

210

Revitalizing―

Original

Sado (Azuma)

55

Under
Construction

Apr. 2018

Original

Hida-Takayama

81

Under
Construction

Jul. 2018

Original

Sado (Kanai)111

In planJun. 2019

Original Nanba, Osaka

224

Under
Construction

Aug. 2019

Original Ginza-higashi

135

In planSep. 2019

Original Honmachi, Osaka

193

In planJun. 2021

Original Shijo Kawaramachi, Kyoto

146

In planTBD

TBD

Hotel Name Location
Iwaki

Narita Airport

150

210

(Note) Schedule & scale are still being planned, may change in future.
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

32

Sun Frontier Fudousan Co., Ltd.

Brand structure of hotels we operate
Collaborative hotel brand“Spring Sunny Hotels & Resorts”

Our hotel brand “Hiyori Hotels & Resorts”

Collaborative brand with the
Spring Group in China（In operation: Tokoname)

Established in
Dec. 2017

Sky Court Hotel
Acquired the existing hotel chain
through M&A.
(In operation: Kawasaki, Narita, Koiwa, Hakata)（Planning phase:
Shijoukawaramachi, Kyoto)※Another brand is being discussed.

（In operation: Maihama)（Under construction: Ginza-higashi
and Osaka-honmachi)（Planning phase: Osaka-Namba）（Under construction: Takayama
and Sado)

Upper

Upper middle

EconomyBudget30,000-50,000 yen

15,000-25,000 yen

8,000-12,000 yen

Up to 10,000 yen

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

33

Sun Frontier Fudousan Co., Ltd.

New casual brand of Hiyori Hotels & Resorts

Debut of “TABINO HOTEL”
On Dec. 6, 2017, we launched the new brand “TABINO HOTEL,” targeting active travelers, as part of＜Brand logo＞

our hotel brand “Hiyori Hotels & Resorts.” In the spring of 2018, we plan to open the first hotel in“Hida-Takayama,” Gifu Prefecture, and the second hotel in “the Sado Island” Niigata Prefecture. We will
focus on rural areas that possess buried cultures, history, and attractive nature, and engage in the
hotel business for vitalizing regions under the theme of each region’s attractive features.

Tabino Hotel Sado

Tabino Hotel Hida-Takayama

Lobby

Appearance

Open-air bath

【Property Outline】■ Location: Takayama-shi, Gifu Prefecture■ Structure: 2-story wooden building with a zinc-coatedsteel roof
■ To be opened in Apr. 2018
■ Number of guest rooms： 81■ Land area: 2,421.34㎡（732.45 tsubo）■ Gross floor area: 1,848.11㎡（559.05 tsubo）
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Big bath【Property Outline】■ Location: Chigusa, Sado-shi, Niigata Prefecture■ Structure: 5-story steel-framed building with a flat roof
■ To be opened in Jul. 2018
■ Number of guest rooms： 111■ Land area: 3,010.07㎡（910.54 tsubo）■ Gross floor area: 2,998.00㎡（907.11 tsubo）

34

Sun Frontier Fudousan Co., Ltd.

Introduction of hotels underdevelopment＜Developed and run by our group＞
Ginza-Higashi
Appearance＜Run by our group＞
Namba, Osaka

Our first hotel in Ginza【Property Outline】

Appearance Location: Chuo-ku, Tokyo

Twin-tower hotel 1 min. on foot from“Namba Station” of the Nankai Line
【Property Outline】
 Location: Naniwa-ku, Osaka-shi, Oska Structure: 11-story reinforced concrete building Structure: (Northern premises) 10-story steelframed building with one basement,(Southern premises) 9-story steel-framed building
with one basement

 To be opened in Aug. 2019
 Number of guest rooms： 135 rooms Land area: 551.38㎡（166.79 tsubo）

 To be opened in Jun. 2019

 Gross floor area: 3,725.00㎡（1,126.81 tsubo）

 Number of guest rooms： 224 rooms Land area: 1,281.4㎡（387.62 tsubo）
 Gross floor area: 6,784.41㎡（2,052.28 tsubo）

Shijo Kawaramachi,
Kyoto

Urban sightseeing hotel at a good
ｌocation along the Kawaramachi Street

Rooftop terrace for enjoying
the landscape of Kamogawa

Honmachi, Osaka
Appearance【Property Outline】

High-rise hotel, 3 min. on foot from
“Honmachi Station” of the Midosuji Line
【Property Outline】

 Location: Shimogyo-ku, Kyoto-shi, Kyoto

 Location: Chuo-ku, Osaka-shi, Osaka Structure: 9-story reinforced concretebuilding with one basement
 To be opened in Jun. 2021

 Structure: a 17-story steel-framed (partiallyreinforced concrete) building with one
basement Number of guest rooms： 146 rooms

 To be opened in Sep. 2019 Land area: 871.70㎡（263.68 tsubo）

 Number of guest rooms： 193 rooms Gross floor area: 6,617.83㎡（2,001.89 tusbo）

 Land area: 754.75㎡（228.31 tsubo）
 Gross floor area: 8,194.32㎡（2,478.78 tsubo）

Guest room with an open-air bath
※ The photos, schedule, scale, etc. are based on the current plan, and they may be changed.
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

35

Sun Frontier Fudousan Co., Ltd.

－Hotel business for developing a region

Acquired the business of running “Hotel Azuma”
Establishment of Sun Frontier Sado Co., Ltd.

“Hotel Azuma,” the closest inn to sunset

On Nov. 22, 2017, we established “Sun Frontier Sado Co., Ltd.,”

events, Japanese drums, folk crafting, etc., reeling in sightseers

Hotel Azuma was established as the Japanese-style restaurant“Azuma” in the old Aikawa-machi in 1925. It has been popular as
the closest inn to sunset, because it is located at thewesternmost part of the mountain area in northern Sado
cordillera. The sunset on the Sea of Japan viewed from the openair bath or guest room is picturesque. In the lawn garden with anarea of 7,000 tsubo (23,100 m2), there are the epitaph of the
haiku poet Seishi Yamaguchi, Iwatsuka Tumulus, etc. In addition,
you can enjoy walking along the promenade reaching theseashore.

from inside and outside Japan, and energizing the economy ofAppearance

which conducts the project for vitalizing the region in Sado-shi,
Niigata Prefecture. On Jan. 10, 2018, this company took over thebusiness of “Hotel Azuma,” a Japanese-style inn.
We will strive to vitalize the region and produce a model for theentire Japan, by spotlighting local cultures, foods, and nature,promoting the development of the traffic network, sports

Sado.

Sunset viewed from a guest
room/open-air bath

【Corporate profile】
 Name: Sun Frontier Sado Co., Ltd.
 Location: 1-5-2 Yuraku-cho, Chiyoda-ku, Tokyo Representative: Tomoaki Horiguchi, Representative
Director / President

To be renewed
and opened
in Apr. 2018

【Outline of Agatsuma】

 Main businesses: To own, lease, manage, and run
hotels, commercial facilities, sporting facilities, etc.

■ Location: Aikawaohura, Sado-shi, Niigata Prefecture■ Number of guest rooms: 55

 Capital: 100 million yen (100% invested by Sun Frontier
Fudousan Co., Ltd.)■ Land area: 23,916.00 ㎡ （7,234.59 tsubo）■ Gross floor area: 6,435.22 ㎡（1,946.65 tsubo）

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

36

Sun Frontier Fudousan Co., Ltd.

Overseas expansion

Concept "To Realize the Happiness of Everyone in Asia with
People who Share the Same Values.”
With services and quality based on Japanese specs, we will meet the growing demand for housing andaccommodation, and contribute to economic growth in each region.

Projects in Vietnam
StatusOpen

Location /Use

Scale

In
operation

Aug. 2016

Danang Hotel“The Blossom City”

45 rooms

DanangUnder
1st half ofCondominium Residence
construction
2019“Hiyori Garden Tower”
In planUndecided

Danangcommercial complex

1. To promote wealthy people outside Japan to invest inTokyo. To lead the energy of Asia growth to Tokyo, andcontribute to the growth of Japan.

(Sun Frontier Fudousan Taipei, Hong Kong, Shanghai, Singapore, etc.)

306 houses
Sun Frontier
Fudousan Taiwan(Founded in 2013)

Hotel・SA 156 rooms+Residence 229
houses+Shop

Projects in Indonesia
StatusOpen

Danang

Location /Use

Scale

Jakartadetached house

5 houses

Under
Undecided
construction

Jakartadetached house“CASA EMERALD GANDARIA”

9 housesIn
operation

Jakarta Residence+SA“Kyo Serviced Apartment”

90 rooms

All sold(Note）”SA”･･･Serviced apartment. Fully furnished apartment available for monthly
stay, providing all the hotel-like service.
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Jakarta37

2. To make inroads into large cities inSoutheast Asia, which are growing
rapidly and to contribute to thehappiness of local people withoutbound services(Vietnam, Indonesia, etc.)

Sun Frontier Fudousan Co., Ltd.

Danang, Vietnam, Project No.2

- High-rise Urban Apartment House Project -Danang was chosen to be the host of 2017 Asia-Pacific Economic Cooperation (APEC) summit and is gaining worldwide
attention. We established “Sun Frontier Vietnam” as an overseas subsidiary in 2015. Beside the first overseas hotel “TheBlossom City” opened in August, 2016, the high-rise urban apartment house project as our 2nd project, "HIYORI Garden
Tower" has started construction in June, 2017.
Bldg. No. 2
High-rise urban apartment house「HIYORI Garden Tower」

Effect Drawing (Appearance)

Construction for 306 units
started in June, 2017

Mockup (Bedroom)
Direct flights from Narita/Kansai Airport toDanang went into service (Narita: 1 flight per
day / Kansai: 4 flights per week.)
60 direct flights per week from China.
134 direct flights per week from Korea.
Danang is an area that many companies
want to help develop, while gathering
worldwide attention as a fascinating resort
area.
It is only a 10-minute drive from Danang

High-rise apartment of 28 floors

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

Mockup (Living Room) 2017年３月10日 起工式の様子

38

Airport to the city center, and a 15-minutedrive to a beautiful beach where there aremany hotels. Located at an optimal placewith very convenient access.

Sun Frontier Fudousan Co., Ltd.

Jakarta, Indonesia- Urban Housing & Serviced Apartment In Mar. 2016, the local affiliate “Sun Frontier Indonesia” launched the business of building and selling urban housing in theurban center of Jakarta, the capital of Indonesia, and various projects are ongoing.
Bldg. No.3 Serviced Apartment

Bldg. No.2 City Type Ready-built House“Kyo Serviced Apartment”“CASA EMERALD GANDARIA”
Effect Drawing
All houses have a pool

Effect Drawing (Interior)

9 houses underconstruction

Operation started
on Dec. 2016

Appearance

Internal pool

<Logo Mark>Serviced Apartment with 90 rooms

Effect Drawing (Appearance)

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

39

Sun Frontier Fudousan Co., Ltd.

Basic Policy for Profit Distribution
The basic policy of our corporate group is to comprehensively contribute to the benefit of shareholders by (1) striving toreturn profits to shareholders stably on a long-term basis, (2) securing investment funds for actively conducting the hoteland overseas businesses for future growth, and (3) improving the stability of finance.
Through the capital increase executed in Dec. 2017 and Jan. 2018, the number of outstanding shares rose from42,755,500 to 48,755,500, and net income per share is estimated to grow 4.8% from the end of the previous term to158.11 yen.
2018/3
2015/3
2016/32017/3
2013/3
2014/3(Forecast)
Net income per share

66.50 yen※

94.03 yen

118.18 yen

190.78 yen

150.92 yen

158.11 yen

dividends per share

8.50 yen※

13.50 yen

16.50 yen

25.00 yen

30.00 yen

32.00 yenpayout ratio

12.8%

14.4%

14.0%

13.1%

19.9%

19.5%

Payout ratio for reference

22.1%

23.3%

19.7%

19.3%

20.9%

－

(after considering effective tax rate)※ Our company carried out 100-for-1 stock split for common shares on Oct. 1, 2013. Accordingly, the dividend per share divided by 100 is shown for easy comparison.

Changes in Earnings and dividends per share(Dividends per share)

40 yen30 yenDividends per share
Earnings per share
118.18 yen

20 yen
10 yen0 yen

190.78 yen

25.0 yen

94.03 yen
66.50 yen

13.5 yen30.0 yen150.92 yen(Net income per share)

240 yen

32.0 yen

180 yen158.11 yen

150 yen
120 yen
90 yen16.5 yen

60 yen8.5 yen
2013/3210 yen

30 yen2014/3Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

2015/3

2016/340

2017/3

2018/3(Forecast)

0 yen

Sun Frontier Fudousan Co., Ltd.

4) Reference

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

41

Sun Frontier Fudousan Co., Ltd.

Business Structureof Office Buildings Business1. In vertical real estate utilization business, we survey and solve difficulties by listening to customers’ concerns.
2. In horizontal real estate revitalization business, first, we put together the know-how and customer needs learned fromthe process above. Then we apply this knowledge to renovate used buildings we purchased and transform them intohigh value-added products. After this, we sell the products to customers.

②

Fund –Raising
Consulting

Asset Consulting

Rent Guarantee

Construction
Planning

Building
Management

Rental Brokerage

Sales Brokerage

Acquisition of
Property

Real estate
revitalization
Added value
linked products① Real Estate Utilization

To research how to solve customers’ troubles at the site,and offer solutions

Customers (Building owners, asset owners, and wealthy people)
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

42

Sun Frontier Fudousan Co., Ltd.

Three roles of the branch network
specializing in the urban center
Target regions

1. To specialize in the introduction of tenants to the ownersof small to medium-sized office buildings in the urban

Ueno

centerAkihabara

We are operating 10 branches in Chiyoda, Chuo, Minato,
Shinjuku, Shibuya, and Shinagawa Wards and Yokohama. 84

Ikebukuro

members of the rental team and 105 members of theKoujimachi

administration team* finds tenants by utilizing their familiarity

Kanda

Kudan

Nihonbashi

with local information while specializing in the introduction andmanagement of tenants for owners. (*Fixed-term, part-time, andImperial
Palacetemporary workers)

2. To deal with the needs for solving troubles from theviewpoint of owners

Shinjuku
AoyamaIn addition to introducing tenants, we offer consulting services
for solving troubles for owners, and meet a variety of needs
related to real estate by marshalling our sections.

Tokyo

HibiyaHeadquarters

Toranomon
Shimbashi

Shibuya

3. To procure real estate for Real Estate Revitalization

Ginza

Akasaka
Ebisu

Business

GotandaThrough discussions with owners, we rent their buildings in a

Hamamatsu-cho
Shinagawalump. Or We directly buy buildings when owners encounter
inheritance, their buildings deterioration or they become tired of

Yokohama

management of buildings.
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

43

represents the major area coveredby a branch

Sun Frontier Fudousan Co., Ltd.

Variations of Sales / Ordinary Income /Number of Employees(¥ million)
50,00040,000

Sales and ordinary income grew for 6 terms in a row.
Number of Employees is also increasing stably.
売上高
Sales
経常利益
Ordinary Income
Number of Employees
従業員数40,39435,25430,62527,741276

26,87020,000050,00048,15030,00010,000(People)16,730

84

96

134

70
7,760
52
5,003
3,474
24 1,771 3,588
1,437
791
2 0 681377 501
140
1

125
8,289

14,469141 142

152
6,346

206

181
139
4,289

199

223

6,923
799

2,039

4,341

5,593

400

300

200

17,772

10,580

541

329

500

7,024

8,894 10,000 100

02000/3 2001/3 2002/3 2003/3 2004/3 2005/3 2006/3 2007/3 2008/3 2009/3 2010/3 2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3(Forecast)▲3,776▲100▲10,000▲20,000
Copyright © 2018 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

▲17,794

44▲200
Sun Frontier Fudousan Co., Ltd.

Efforts for Creating Corporate Culture
Cleaning every morning

Morning assembly at the headquarters

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

Reading the philosophy pocketbook
together every morning

Morning assembly of all
employees every Monday

New employee training in which the president gives a lecture

45

Sun Frontier Fudousan Co., Ltd.

Company Overview
Name

Sun Frontier Fudousan Co., Ltd.

Head Office

1-2-2 Yurakucho, Chiyoda-ku Tokyo

Established

April 8, 1999

Date of listing
CapitalNovember 19, 2004 (JASDAQ Securities Exchange)
February 26, 2007 (The first section of the Tokyo Stock Exchange）¥11,965 million(As of the end of Jan., 2018)

Representative

President: Tomoaki Horiguchi

Employees*

Full-time employees: 368 (Including part-time employees: 680)

Average Age*

32.8 years old(*As of the end of Jan., 2018)

Revitalization of real estateBusiness

Real Estate Service

Brokerage,management, construction planningfor real estate, compensation for rent in arrears
Rental building operation, consultancy for assets

Head Office : Hibiya, Chiyoda-ku, Tokyo

Hotel Development and operation
Settlement Month March
Listed in

The first section of the Tokyo Stock Exchange (Code Number: 8934)

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

46

Sun Frontier Fudousan Co., Ltd.

Disclaimer

Sun Frontier Fudousan Co., Ltd.

This reference material is intended for providing information, not for soliciting or promoting you
to purchase a specific product. When you invest, please do so based on your own judgment
and responsibility. If you want to purchase the shares of our company, please contact securities
companies.
The information included in this material may not follow the Financial Instruments andExchange Act, the Building Lots and Buildings Transaction Business Act, the regulations for thecompanies listed in Tokyo Stock Exchange, etc.
This reference material mentions our future business performance, but it does not guarantee
the performance.
This reference material was produced carefully, but we do not guarantee the accuracy andcertainty of its contents. In addition, the contents may be changed or deleted without notice.
We appreciate your understanding.

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