May 12, 2021
FOR IMMEDIATE RELEASE
Company name: Sun Frontier Fudousan Co., Ltd.
Representative: Seiichi Saito,
President and Representative Director(Stock Code: 8934, TSE First Section)
Inquiries: Takeshi Hirahara,
Executive Officer and General Manager
of Corporate Planning Department
TEL: 03-5521-1551

Notice Regarding Revision of Medium-term Management Plan
Sun Frontier Fudousan Co., Ltd. (the "Company") announced today that the Company has revised its mediumterm management plan for the fiscal year ending March 31, 2023, which was announced on May 8, 2018, in lightof the impact of the recent spread of the COVID-19.
1. Background of the revision
The Company is promoting a five-year medium-term management plan from the fiscal year ended March 2019
to the fiscal year ending March 2023. In the fiscal year ended March 31, 2019, the first year for medium-term
management plan, and the fiscal year ended March 31, 2020, the Company's business performance had been
growing steadily with progress exceeding the plan. However, the business environment surrounding the Company
changed significantly due to the impact of the spread of COVID-19 infections from the beginning of 2020. Against
this backdrop, our Company has developed its business based on the three management policies of "thoroughprevention of infection outbreak and continuation of business," "financial stability," and "concentration of resources
for the ‘revitalization and utilization of real estate’ our core business." Based on these policies, the Company has
quickly captured on-site trends and customer feedback, worked on its ability to resolve client’s problems, anddeveloped its business.
Although the spread of COVID-19 is yet to be resolved, it is expected that the global economy will hit a bottomand return to a recovery path by next year, with the spread of vaccines and the continuation of large-scale fiscal
measures and monetary easing in each country. Taking into account these changes in the business environment andthe new state of "post COVID-19," we decided that it was necessary to revise the timing of achievement in mediumterm management plan in order to re-establish a sustainable growth trajectory starting from the fiscal year ended
March 2021, which was affected by the COVID-19 outbreak.
2. Overview of the revision(1) Period
The fiscal year ending in medium-term management plan will be extended for two years to the fiscal year endingin March 2025, but the financial target in the medium-term management (net sales 100 billion yen, ordinary profit
20 billion yen, profit attributable to owners of parent 14 billion yen) will stay the same since we believe this target
to be a passing point of the continuous growth of the company and aim to establish the “standing on both feet offlow and stock” profit structure.

1March 2021
(Results)
59.6 billion yen

March 2025(Target)
100 billion yen

Ordinary profit (loss)7.5 billion yen

20 billion yen

Current Net Income

4.2 billion yen

14 billion yen

Ratio of Ordinary Income

12.6%

20.0% or more

Equity Ratio

52.3%

50.0% level

ROE

6.5%

10.0% or more

Net sales
Financial
TargetManagement
Indicator(2) Basic policy
Providing "places where people gather and communicate with each other, and create social development
and happiness for people"<Office Business>•Contribute to carbon neutrality by reducing the waste of non-renewable resources through“Revitalization”•Focus on "Central Tokyo," "Small and Medium size," and "Office Building," and capture diversifying needs ina clients' point of view that is on-site consistent
Contribute to creating prosperous towns for the future by utilizing new fields including digital technology<Hotel Business>•Provide safe and soothing time and space, creating the best smiles and making people's minds healthy and rich<Overseas Business>•Provide comfort to the people in Asia, together with our partners•
Improve the quality of housing for local residents and contribute to the urban development by specializing indevelopment, sales, management and mediation of housing (condominiums)(3) Key points
Points to be Strengthened to Capture the Changing Times and Upgrade Business and Management■ ESG

Based on our corporate philosophy of “contributing to the lasting prosperity of humankind,plants and animals on the earth, by reducing the waste of non-renewable resources” wewill take into account the perspectives that contribute to the resolution of social andenvironmental issues more than ever before in our business development and conduct corporate
governance to become a model company for society.

■ DigitalWe will establish the Digitalization Promotion Office and focus on utilizing new technologies,
responding quickly to changes, and reforming our business model.

■ Cash flow

Under the policy of" “continuation of business” "in the COVID-19 outbreak, we have been
focusing on cash and deposits. We will strengthen the creation of cash by effectively investingin business and systematically collecting funds.

2

(4) Investment Plan (Fiscal Year Ending March 31, 2022 - Fiscal Year Ending March 31, 2025)
Systematically invest in each business, digitalization and M&A, recovering through growth<Office Business>
・ Aim for business growth while collecting investment at a constant turnover rate through systematic procurementand development.
<Hotel Business>
・Complete the hotels under construction and aim to achieve profitability operating the existing hotels and theopening hotels on schedule. At the same time, recover from the sale of the existing hotels and operate themeffectively.
<Overseas Business>・ Continuously and systematically invest in condominium development projects for the future.
<Digitalization>
・ Actively invest in digitalization for operational efficiency and business support and expansion.
<M&A>・ Strategically invest in peripheral businesses and growing fields to expand existing businesses.
(Unit: billion yen)

OfficeBusiness

Hotel
Business

Overseas
BusinessDigitalization

72.8

21.8

0.6

Investment amount

200

78

Amount collected

182.8

5.8

2.5

Balance at the End of
March 2025

90236.1

3. Other
For more information on medium-term management plan, please visit here.
Please refer to https://www.sunfrt.co.jp/en/ir_info/ir_prospects/

3Total investment

Balance at the End of
March 2021

3M&A5