Sun Frontier Fudousan Co., Ltd.

Material for the Presentation on Financial Statement for FY ended March 2019

Consolidated Financial Statements for the
Fiscal Year ended March, 2019
We are aiming to be the real estate company of the world’s most
loved, trusted and selected by customers.

1) Overview of Fiscal Year ended March 2019 Results

1-112) Outlook for Fiscal Year ending March 2020

12-143) Business Environment

15-174) Initiatives in this Fiscal Year andFuture Growth Strategies5) Company Information and Reference

Materials

18-39

May 10, 201940-46

Stock Code: 8934

Financial Summary for the Year Ended March 2019
Financial Results for Year Ended March 2019
Sales and Incomes Increased for 8 Consecutive Fiscal Years
Record-breaking Profits and Dividends
From the Previous
Fiscal Year

Results

Growth Rate

Full-year Forecast

Progression Rate

Net Sales

53,291 million yen+ 5,828 million yen+ 12.3%58,000 million yen

91.9%

Operating Income

13,305 million yen+ 2,066 million yen+ 18.4%

12,300 million yen

108.2%

Ordinary Income

12,813 million yen+ 2,058 million yen+ 19.1%

11,800 million yen

108.6%Net Income ※8,783 million yen+ 1,363 million yen+ 18.4%8,200 million yen

107.1%

38.5 yen+ 5.0 yen+ 14.9%34.5 yen111.6%

Dividends per Share(Schedule)(including commemorative dividends of 2 yen)※ “Net Income“ represents net income attributable to shareholders of the parent company.

Performance Highlights•••

1) RP Business maintains high profit margin

2) Steady growth in operation business

RP (Replanning) business continue to boost profits(Segment profit margin rose from 29.7% to 32.1% in this FY.)
Our Company's unique business model has been deepened to maximize theattractiveness of buildings by identifying sources of added value, repeating
creative ingenuity to increase added value from the customer's perspective,
and bringing together specialist knowledge across all processes, including:purchasing, commercialization, and sales.
Purchases for this term (year ending March, 2020) are complete. We will focus
on the purchase of medium and long-term projects to increase rent revenue.

・In the hotel management sector, sales increased 36% and profits grew 51%.
This was driven by improving unit prices and occupancy rates. As of the end of the
fiscal year ended March 2019, 1,401 rooms in 11 hotels were occupied in Japan.
“HIYORI Hotel Osaka Namba " will have its grand opening at the end of May thisyear, and 5 hotels, including those situated in Osaka, are scheduled to open.
・Conference Room Rental Business has expanded to 13 hubs (seating capacity of
4,700 seats) in total as of the end of March 2019. Vision Center is scheduled toopen in Shinjuku in June this year (with a present total seating capacity of 6,000
seats).

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1

Sun Frontier Fudousan Co., Ltd.

Changes in Consolidated Results
Operating Income and Ordinary Income marked record highs for the three consecutive fiscal years and Net
Income also marked a record high.
Dividends increased for 7 consecutive fiscal years, Ordinary Income margin remained high at over 20% levelfor 6 consecutive fiscal years.
Unit: 1 million yen
FY Ended
March 2015

FY Ended
March 2016

FY Ended
March 2017

FY Ended
March 2018

FY Ended
March 2019

Net Sales

27,741

30,62540,39447,46353,291-

Operating Income

5,850

7,387

9,380

11,23913,30525.0%

Ordinary Income

Profit Marginof Net Sales(Ratio of Ordinary
Income)

5,593

7,024

8,894

10,755(20.2%)(22.9%)(22.0%)(22.7%)

12,81324.0%

Net Income ※

5,053

8,157

6,452

7,420

8,783

16.5%

Net Income per Share118.18 yen

190.78 yen

150.92 yen

167.62 yen

180.35 yen

Dividends per Share

16.50 yen

25.00 yen

30.00 yen33.50 yen

38.50 yen-

(Schedule)*“Net Income" represents net income attributable to shareholders of the parent company.

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Sun Frontier Fudousan Co., Ltd.

Consolidated Income Statement(Unit: 1 million yen)

FY Ended March2018

FY Ended March2019

47,46353,291

Real Estate Revitalization Business

40,99745,490Replanning Business(including Hotel Development)

38,64242,507

Rental Buildings and Sublease

2,355

2,983

Real Estate Service Business

3,225

3,179

Extraordinary Gains (losses)

Operation Business

2,898

3,898

Corporate Income Taxes

Other Business

931

1,508

Adjustment

(589)

(784)

Gross Profit

16,26419,192

Real Estate Revitalization Business

13,334

16,048Replanning Business(including hotel development)

12,324

14,712

Rental buildings and Sublease

1,010

1,336

Real Estate Service Business

1,993

1,898

Operation Business

387

476

Other Business

586

829

Adjustment

(37)

(60)

5,024

5,886

Net Sales

Selling and general administrative
expenses
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3

FY Ended March2018

FY Ended March2019

11,23913,305Non-operating Income

1663

Non-operating Expenses

500

555

10,755
0
3,344
(9)
7,420

12,813
0
4,293
1
8,783

Operating Income

Ordinary Income

Non-controlling gain or loss

Net Income• RP business (including hotel development) has a gross profit
margin of 34.6% (31.9% the previous FY)• Steady growth in new business areas such as operation
business and other business, etc. Total Net sales reported a
year-on-year increase of 41% to ¥5.4 billion. Gross Profit
rose 34% to ¥1.3 billion.

Sun Frontier Fudousan Co., Ltd.

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

FY Ended March2017

FY Ended March2018

FY Ended March
2019

Increase/Decrease(Compared to
FY Ended March 2018)55,19580,174

97,149+16,974

Cash and Deposits

16,24623,892

20,257(3,635)Inventory Assets

36,28654,59374,329+19,736

Breakdown) RP

26,03945,52562,143+16,618

Hotel

7,254

5,291

7,552

+2,261

Overseas,etc.

2,892

3,775

4,634

+859

2,762

1,687

2,562

+874

8,458

11,587

13,749+2,162

7,288

8,565

9,339

+773

Intangible Assets

562

474

863

+388

Investments and other Assets

608

2,546

3,546

+1,00063,654

91,761

110,898+19,137

Current Assets

Other Current Assets

Noncurrent Assets
Property, Plant and Equipment

Total Assets

Inventory Assets increased 19.7 billion yen in total.
Among them ¥16.6 billion was for RP projects. For Hotel business projects did 2.2 billion
Property, plant and equipment increased by approximately 700 million yen. Investments and other assets increased by 1 billion yen due to an increase in"Goodwill" resulting from M & A and an increase in long-term guarantee deposits by the opening of hotels, etc.

Cash and deposits decreased 3.6billion due to a steady increase in purchases of RP projects.
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Sun Frontier Fudousan Co., Ltd.

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

FY Ended March
2018

8,281

10,155

12,859+2,703

3,438

2,716

2,248

(467)

Income Taxes Payable, etc.

802

3,178

2,661

(516)

Other Current Liabilities

4,040

4,260

7,949

+3,688

Noncurrent Liabilities

19,68632,75642,179+9,422Long-term Loans and Bonds Payable

18,62630,86539,751+8,885

Other Noncurrent Liabilities

1,059

1,890

2,428

+537

27,96842,91255,038+12,126

35,52848,75055,900+7,149

157

99

(40)

(139)

Total Net Assets

35,686

48,84955,860+7,010Total Liabilities and Capital

63,654

91,761

110,898+19,137

Current Liabilities
Short-term Loans Payable, etc.

Total Liabilities
Shareholders’ Equity
OthersTransition of Equity Ratio
End of March2017

End of March2018

End of March
2019

56.0%

53.2%

50.3%

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FY Ended March
2019

Increase/Decrease

FY Ended March
2017(Compared to
FY Ended March 2018)

As purchase of RP properties progressed, borrowings increased by approximately 8.4 billion
yen from the end of the previous FY, and the balance of interest-bearing debt is 41.9 billion
yen.
Shareholders‘ equity increased ¥7.1 billion due to recording of Net Income (8.78 billion yen)and payment of year-end dividends of the previous fiscal year (1.63 billion yen Minus).

5

Sun Frontier Fudousan Co., Ltd.

Operating Results by Business Segment

Replanning Business (Replanning (RP) / Hotel development)
FY Ended
March 2018

FY Ended
March 2019

Increase/
Decrease

Net Sales

38,64242,507+10.0%

Segment Income(Note 1)

11,483

13,625+18.7%

Profit Margin

29.7%

32.1%

+2.4%pt

Number of items
purchased

49

47

(2)

Number of properties
sold

35

31

(4)

Number of stocks at
the end of FY

53

69

+16

(Unit of Net Sales & Income: 1 million yen)

◼ Both net sales and profits increased.
◼ Segment profit ratio rose to a record high level of 32.1% as a result of continued
ingenuity in the process of purchasing, commercialization and sales, as well as
direct sales to our customers.
◼ The average business period is 351 days.
◼ Purchasing progressed favorably, with 69 properties in the term-end inventory (63RP business-related properties and 6 hotel business-related properties.)◼ ¥69.6 billion in inventories (RP business-related ¥62.1 billion, hotel businessrelated ¥7.5 billion) *Excluding those related to overseas business

Net Sales
Segment Income
Profit Margin(1 million yen)

50,00050%
42,50740,00030,00038,642

40%

29.7%

32.1%
30%

20,00020%
11,483

13,625

10,000*In addition to the above, there are 10 RP properties for 8.58 billion yen purchased and settled as of theend of April this year.

10%

0

0%
FY Ended March 2018

FY Ended March 2019

(Note 1) ”Segment Income" is calculated by deducting other costs inherent in eachbusiness including Interest expenses, Sales commission, Goodwill amortization etc.
from gross profit.
(Note 2) Including Land Purchase and Development projects in RP inventory

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Sun Frontier Fudousan Co., Ltd.

Operating Results by Business Segment

Rental Building Business (Rental Buildings / Sub-leases)(Unit: 1 million yen)

FY Ended
March 2018

FY Ended
March 2019

Increase/
Decrease

Net Sales
Segment Income
Profit Margin(1 million yen)

3,000

Net Sales

2,355

2,983

+26.6%

Segment
Income

1,010

1,336

+32.3%

Profit Margin

42.9%

44.8%

+1.9%pt

2,500

2,982

2,003

100%

80%

2,000
60%

1,500

◼ Inventory rent income increased as the purchasing of RP
properties progressed. Net sales also grew due to rental
income from the hotel leasing business.

44.8% 1,336

43.1%
1,019

40%

1,000

◼ We aim to focus on purchasing properties for the medium
and long-term RP projects to increase rent revenue.

20%

500

0

0%
FY Ended March 2018

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7

FY Ended March 2019

Sun Frontier Fudousan Co., Ltd.

Operating Results by Business Segment

Real Estate Service Business(Property Management (PM) / Building Maintenance (BM) / Sales brokerage / Rental brokerage)(Unit: 1 million yen)

Net Sales

FY Ended
March 2018

FY Ended
March 2019

3,225

3,179

Increase/
Decrease(1.4%)Net Sales
Segment Income
Profit Margin(1 million yen)

4,000

Segment Income

1,993

1,898

(4.7%)

Profit Margin

61.8%

59.7%

(2.1%pt)

3,200<PM and BM Businesses>

End of March 2017
End of March 2018
End of March 2019

3,225

3,179

61.8%

◼ In PM and BM businesses, we provided customers with added-value services byimproving revenues through changes of conditions for appropriate rents inaddition to meticulous responses to tenants’ needs and the resolutions forproblems of the customers. As a result, PM and BM businesses have contributed
to expansion of the customer and business bases of the whole Group.
Number of PM Managing Buildings and Occupancy Rate

100%

Number of Managing Buildings

362 buildings
372 buildings
373 buildings

Occupancy Rate

96.6%
95.7%
97.6%

<Sales Brokerage and Rental Brokerage>◼ Although the brokerage business saw a decline in both net sales and profits, it
contributed to the earnings of the whole Group in terms of the process ofpurchasing, commercialization and sales, working as driving force to create highadded values from the customers’ viewpoint.

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8

2,400
1,993

80%

59.7%

60%

1,898

1,600

40%

800

20%

0

0%
FY Ended March 2018

FY Ended March 2019

Sun Frontier Fudousan Co., Ltd.

Operating Results by Business Segment

Operation Business (Hotel management and conference room rental business)(Unit: 1 million yen)

Net Sales
Segment Income
Profit Margin

FY Ended
March 2018

FY Ended
March 2019

2,898

3,898

+34.5%

4,000

326

412

+26.3%

3,500

11.3%

10.6%

(0.7%pt)

3,000

Net Sales
Segment Income
Profit Margin

Increase/
Decrease(1 million yen)

◆ A surge in both Net Sales and Profits

35%

30%
2,898

25%

2,500

<Hotel Operation Business>◼ Existing hotels: “HIYORI Hotel in Maihama”, “Sky Heart Hotel”, and “TheSpring Sunny Hotel”. Their unit prices and occupancy rates have been
growing steadily.
◼ “Tabino Hotel Hida Takayama” newly opened in May last year, and “Tabino
Hotel Sado” did in July last year. The grand opening of “HIYORI Hotel Osaka
Namba” is scheduled for May this year (It partly opened in April.)
A total of five new hotels are scheduled to open during the current fiscal year.

20%
2,000
1,500

◼ The business has expanded to 13 hubs in total as of the end of March 2019.
As for the existing facilities, their floor space is also increasing. The company
was spun-off in April this year. We aim to expand the business further toprovide an infrastructure which supports corporate activities in central Tokyo.
◼ Vision Center Shinjuku is scheduled to open in June this year. In addition, weplan to accelerate the opening of new facilities, focusing on the five wards incentral Tokyo.

9

15%

11.3%
10.6%

10%

1,000

<Conference Room Rental (Space Management) Business>

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3,898

500

326

412

0

5%

0%
FY Ended March 2018

FY Ended March 2019

Sun Frontier Fudousan Co., Ltd.

Operating Results by Business Segment

Others (Rent guarantee, Construction, Overseas Business, etc.)
FY Ended
March 2018

FY Ended
March 2019

Net Sales

931

1,508

+61.9%

Segment Income

566

784

+38.5%

60.8%

52.0%

(8.8%pt)(Unit: 1 million yen)

Profit Margin

Increase/
Decrease(1 million yen)

<Rent Guarantee Business>◼ The number of new and renewed guarantees handled, remain steady,which has led to higher Net Sales and profits. With the major revision of thedebt-related provisions (enforced in 2020), as demand for institutional
guarantees is expected to increase, we will enforce seminars and otherevents for building owners in order to open up new opportunities to create
new added values.

Net Sales
Segment Income
Profit Margin

1600

1,508

100%

1400
80%
1200
1000

60.8%
931

800
600

52.0%
784

60%

40%

566

<Construction Business>◼ Both Net Sales and profits increased by adding the sales of "Kouwa Corporation," 400which became a consolidated subsidiary through M&A. The collaboration with theexisting construction solution business that undertake office renovations and200
renewal, etc. will expand our business because of this M&A.
<Overseas Business>◼ We will contribute to local economic development by providing high quality
0
housings that utilize the quality of Japanese standards and planning in Da Nangin Vietnam and Jakarta in Indonesia.
◼ A 28-story condominium in Da Nang (306 houses)
The framework of “HIYORI Garden Tower” was completed in January this year
and it is now under construction for completion in September.
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10

20%

0%
FY Ended March 2018

FY Ended March 2019

Sun Frontier Fudousan Co., Ltd.

Trends in Key Management Indicators■ Changes in Ordinary Income Ratio■ Changes in Equity Ratio(Unit: 1 million yen) (Pursuing High-Value-Added Management)

60,000(Unit: 1 million yen)

(Building a Stable Financial Base)

60,00030%
売上高
Net Income
Ordinary Income
経常利益
Ratio of ordinary income
経常利益率

80%
Net Assets
純資産

Equity Ratio
自己資本比率55,000

24.4%

70%

24.0%

50,000

22.9%

22.0%

22.7%

25%
50,00020.2%

45,00040,000

53.7%

56.2%

55.7%

56.0%

60%

53.2%
50.3%

20%

50%

40,00030,00035,00015%

40%

30,00020,00030%

10%25,00020%
20,00010,0005%
10%

15,00000%
2014/3

2015/3

2016/32017/3Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

10,0002018/3 2019/3
2019/30%
2014/311

2015/3

2016/32017/3

2018/3

2019/3
2019/3

Sun Frontier Fudousan Co., Ltd.

2) Outlook for Fiscal Year Ending March 2020

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12

Sun Frontier Fudousan Co., Ltd.

Outlook for FY Ending March 2020
FY ended
March 2019

Forecast for
FY 2020.3

Rate of
ChangeNet Sales

53,29170,000+31.4%(1)Real Estate Revitalization Business

45,49052,340+15.1%RP Business (including hotel development)

42,50748,559+14.2%

Rental Building Business

2,982

3,781

+26.8%(2)Real Estate Service Business

3,179+11.6%(3)Operation Business

3,898(4)Other Business

1,508

3,550
6,710
8,479

+462.2%Adjustment Amount▲784▲1,080－Gross Profit

19,192

21,450+11.8%(1)Real Estate Revitalization Business

16,04816,657+3.8%

RP Business (including hotel development)

14,712

15,058+2.3%

Rental Building Business

1,336

1,599

+19.6%(2)Real Estate Service Business

1,898+17.6%+116.8%+72.1%(3)Operation Business476(4)Other Business

829

2,233
760
1,798

Adjustment Amount

▲60

－

－

Selling, general and administrative expenses

5,886

6,950

+18.1%

Operating Income

13,305

14,500+9.1％

Ordinary Income

12,81314,000+9.3％

Net Income

8,783

9,500

+8.2％

Cash Dividends per Share (yen)

38.50

39.50

+2.6％

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13+59.8%

・Our core business is the office building business incentral Tokyo.
・ We will steadily grow the revitalization business towhich the entire company’s force are consolidated.
・ Furthermore, we will also strengthen our stockbusiness, including rental buildings to secure astable revenue structure.
・ We will expand and improve new business areas
such as operation business and other business.
・ Net Sales of hotel operation business andconference room rental business are expected toincrease 2.3 billion yen from the previous FY.
・ Net Sales of overseas and construction solution
businesses are expected to increase by about 7
billion yen from the previous year.

・ RP gross profit margin is set on the assumptionthat rents remain flat with the current market
environment.
31.9% for the year ended March 201834.6% for the year ended March 2019
⇒ 31.0% for the year ending March 2020
・ 800 million yen expected from RP Sales
commission is included.
(580 million yen in fiscal year Ended March 2019)

・ Dividends are expected to increase by 1.0 yen
to 39.5 yen.
Sun Frontier Fudousan Co., Ltd.

Basic Policy on Profit Sharing
Our Group 's basic policy is to: (1) strive providing long-term and stable profit returns to shareholders, (2) secure investment funds to proactively
challenge the hotel business and overseas business for future growth, and at the same time (3) contribute to shareholders' interests
comprehensively by taking into account the stability of financial resources.
The year ended March 2019: dividends per share are to be 38.50 yen (a common dividend of 36.50 yen and a commemorative dividend of 2.0 yen)
The year ending March 2020: dividends per share is expected to be 39.50 yen, which is increased for 8 consecutive fiscal years.
FY ended March 2016

Year ended March 2017

Year ended March 2018Year ended March 2019Year ending March 2020
(Forecast)

Net Income per Share

190.78 yen

150.92 yen

167.62 yen

180.35 yen

195.07 yen

Cash Dividends per Share

25.00 yen

30.00 yen33.50 yen

Dividend Payout Ratio

13.1%

19.9%

20.0%

21.3%

20.2%

Reference dividend payout ratio

19.3%

20.9%

-

-

-

(After the effective tax rate)(Cash dividends per share)

Cash Dividends per Share

40yen

Net Income per Share

35yen

190.78yen

30yen
25yen

30.00yen

38.50 yen
(Schedule)(Commemorative dividends of 2
yen included)

Changes in Net Income and Dividends per Share
38.50yen33.50yen

25.00yen

167.62yen

180.35yen

39.50 yen

39.50yen(Net income per share)

210yen195.07yen

180yen150yen150.92yen

20yen

240yen120yen

15yen

90yen

10yen

60yen

5yen

30yen

0yen

FY ended March 2016

FY ended March 2017

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FY ended March 201814

FY ended March 2019

FY ending March 2020
（Forecast）

0yen

Sun Frontier Fudousan Co., Ltd.

2) Business Environment

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15

Sun Frontier Fudousan Co., Ltd.

Business Environment
1．While the global economy is slowing, the risk of a rapid decline has eased and growth will continue to slow down for the time
being.
◆The IMF lowered 3 times in a row its forecast to 3.3% for world economic growth in 2019 by total -0.6 points, showing a
decelerating trend.
◆Attention should be paid to risks of a global economic downturn, such as the intensifying trade friction between the United States
and China and the slowing of economic growth in China and Europe.
◆Attention should also be paid to political turmoil stemming from the rise of global populism and Brexit from EU.
2．Although the Japanese economy continues to grow at a moderate pace, the outlook remains uncertain due to the impact of the
global economy.
◆While the Japanese economy continues to expand for the longest time after the end of World War II, its environment maintains a
sense of caution due to the slowing growth of the world economy.
◆The number of foreign visitors to Japan in 2019 keeps on renewing its record high, and the number of repeat visitors also has
been increasing remarkably.
◆Attention should be paid to the effects of the consumption tax hike to 10% from 8% scheduled in October and fluctuations infinancial and capital markets.
3．The market for office buildings in central Tokyo continues to be brisk on the back of solid demand from brisk corporate earnings.
◆Rent hikes are expected to continue for some time as demand for office space remains firm due to steady economic growth andthe expansion of shared offices.
◆The vacancy rate is in the lowest level for the first time in 28 years since 1991. There is a sense of bottoming out, but demands foroffice spaces continue.
◆Financial institutions' lending attitudes toward real estate have become somewhat cautious, and trading transactions have been
declining, thus attention should be paid to the future trend.
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16

Sun Frontier Fudousan Co., Ltd.

Trends in Office Rents and Vacancy Rates
The five wards in the central Tokyo
(%)

(yen)

Average rent (yen/tsubo)

Average Rent in April 201921,279 yen
increasing for 64 consecutive
months(+ 31.3% from the bottom)

Average vacancy rate (%)

Peak of the vacancy rate
June 2012
Vacancy rate of 9.43%

Peak of the vacancy
rate August 2003
Vacancy Rate of
8.57%

Bottom of the average
rent
October 2004
17,526 yen

Peak of the average
rentAugust 2008
22,901 yen

Bottom of the average
rent
December 201316,207 yen

Bottom of the vacancy
rate
November 2007
Vacancy rate of 2.49%

Average vacancy ratein April 2019

1.70%
Improved by 7.73% pt
in 6 years and 10 months*Source: Prepared by Our Company based on Miki Shoji’s "Office Reports". Office buildings with a standard floor space of 100 tsubo or more in 5 wards of central Tokyo are surveyed.

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17

Sun Frontier Fudousan Co., Ltd.

3) Initiatives in FY Ended March 2019 and
Future Growth Strategies
Our Belief~ Not for profit, but for trust~Business is a competition of usefulness.
How many people can we be of service to?

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18

Sun Frontier Fudousan Co., Ltd.

Progress pf Medium-Term Management Plan

Outline of Medium-Term Management Plan
for FY Ending March 2023
Basic Policy: Development of Business Focusing on Urban Areas and Growth Markets<Three Policies>
1. To deepen and expand “office building business in central Tokyo”
which has strong influences
2. To focus on growth markets of “hotels and Asia”

To achieve stable growth over the medium to longterm, we will strengthen creation and management ofreal estate value and build our firm revenue structure
based on “both Flow and Stock business”

3. To actively utilize M&A to accelerate a growth of our company<Quantitative Target>
Fiscal Year ending March 2023

Changes over the Most Recent 7 Years and Targets for FY 2023
(1 million yen)

100,000■Net Sales

10 Years to FY Ending 2023.3■Ordinary Income

100,000

90,000Net Sales

100 billion yen

80,00070,00070,000Ordinary Income

20 billion yen

60,00053,29150,000Net Income
Capital Adequacy
Ratio
Ratio of Ordinary
Income14 billion yen

47,46340,39440,00027,741 30,625

30,00050% or more

20,00010,00020% or more

17,772
10,5802,039

4,341 5,593

0

7,024

12,813 14,000
8,894 10,755
Stage 2020/3

20,000Stage 2023/3(Forecast)
2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3
2021/3*・・・2022/3(Forecast)
2023/3Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

19

Sun Frontier Fudousan Co., Ltd.

Toward the profit structure
Based on both “Flow business" and "Stock business"

Image of Net Sales's growth in 4 years from now
FY ended March 2019
Rental Conference Rooms・Rent Guarantee, etc.

Flow business1.48 billion yen Accumulation 2.98 billion yen

43.7 billion yen
Total Net sales

Rental Building

in longer term

Stock business9.5 billion yen

53.2 billion yen 9.5 billion yen

Hotel Management

2.98 billion yen

PM・BM

2.11 billion yen

FY ending March 2023

Rental Conference Rooms・Rent Guarantee, etc.

4 billion yen

Rental Building

5 billion yen（About 2.7 times）
Flow business73 billion yen

Total Net sales
100 billion yen

Stock business

About 1.8 times

27 billion yen

Accumulation
in longer term

PM・BM

27 billion yen

4 billion yen(About 2.7 times)
Hotel Management
14 billion yen（About 4.7 times）

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

20

Sun Frontier Fudousan Co., Ltd.

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

office building business

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

Vietnam and Indonesia

To deepen and expand

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

and develop their peripheral services
21

Sun Frontier Fudousan Co., Ltd.

Expansion of Core Business- To deepen and expand office building business -Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

22

Sun Frontier Fudousan Co., Ltd.

1) Expansion of Core Business

Deepen and Expand the Office Building Business

Office building business Net sales target for the year ending March 2023: 80 billion yen<Replanning Business>
We aim to deepen and expand our building revitalization business by specializing in small and medium-sized
office buildings in central Tokyo and also take on the challenge of new construction work.

<Real Estate Service Business (Rental Brokerage, Property Management, etc.)>
Being kind and polite, contributing to building owners with specialized services unparalleled by our competitors.
By repeatedly delivering solutions to their small concerns, we deepen our bonds with them to become a trusted
real estate partner with whom clients feel free to consult on any topics.
Our strength lies in a customer base of office building owners in central Tokyo.

<Rental Conference Room and Coworking Space business>
Leveraging our experience to add value of office buildings we are rapidly expanding the sharing business such asconference room rental business that make use of vacant space and idle time.

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

23

Sun Frontier Fudousan Co., Ltd.

Create differentiated value added

Structure of Office Building Business1.
2.

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

Fund-Raising Advisory

Asset Consulting

Rent Guarantee

Construction Planning

Rental Brokerage

Sales Brokerage

Acquisition of
Property

Building Management

2

Real Estate
Revitalization
Value added
products

1 Real Estate Utilization
To be a partner to solve difficulties from the customer's
perspectives

Customers (Building owners, assets owners and wealthy individual)
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

24

Sun Frontier Fudousan Co., Ltd.

Review of the Previous Fiscal Year

Our Replanning Business Drives Performance
Four Sources of High Added ValueNet Sales and Return on Cost of RP Business
45,00052.9％

Net Sales
売上高60%

Return on Cost (after deducting sales

40,000

対原価利益率（販売手数料控除後）
commissions)
43.9％

47.4％

50%

40.5％

35,00040.3％

30,0001. “Creativity” to plan from the customer's point of view,
realize their ideals and true needs and differentiate ourservices with quality and high design from others.

40%

30.2％

25,0002. “Humanity of PM managers” who can cooperate withexisting tenants, have good causes and present thetenants business visions which they can agree with inorder to increase the value of real estate.

30%
20,00015,00020%

3. “Ability of tenant mediation” to specialize in thecentral Tokyo and close to the area in order to provide
familiar and professional services which result in steadyand quick improvement of profitability of the buildings.

10,00010%
5,000
02014/3期
2016/3期
2014/3 2015/3期
2015/3
2016/3 2017/3期
2017/3 2018/3期
2018/3 2019/3期
2019/30%

4. “Speedy revitalization” realized by the teamwork of
our staff members beyond departments who sharecommon values and work together.

*Return on cost = (Gross Profit)/(Cost of Sales)
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

25

Sun Frontier Fudousan Co., Ltd.

Replanning Case: A building for Investment in Hacchobori

Real Estate Revitalization for All Stages of LifeWe are currently leasing one of our buildings as a whole to a nursery school management company. The nursery school occupies
B1 to the 4th floor, and a children's facility for elementary school students is located on the 5th floor. On the 6th floor there is acancer patient support facility. The businesses are collaborating to support all stages of life. We have regenerated the building thatare needed by local communities.
Original design

Real estate revitalization (Replanned)
6FL _

6FL _
rooftop premium garden
Patient support facility

OfficeAfter-school facilities

OfficeNursery school

Officechange of use
conversion

Nursery school

OfficeNursery school

1FL _Nursery school

Office

Roads

1FL _

Storage warehouse andunderfloor storage

BeforeParking area

Roads

*Playroom

officeAfter*StairCopyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

26*Appearance

Sun Frontier Fudousan Co., Ltd.

Replanning Case: A building for Investment in Akihabara“Creativity” to Differentiate Properties withHigh Quality and Design
A dynamic office space with 4-metre-high ceilings in classy buildings furnished with granite.
Purpose built offices that serve as a base for software and IT venture companies to expand
their businesses.
Appearance

1F After

8F After

8F After

A new style of work with motivating interior
Reborn as a spacious room with a ceiling of 4m high
1F Before

Expansion of houses andoffices from the terrace(8F)Conversion of theparking area on 1F
into an office

OfficeOffices and houses

Terrace

Premium Office

OfficePremium Office

OfficePremium Office

OfficePremium Office

OfficePremium Office

OfficePremium Office

OfficeRich lighting. Cozy designed officePremium Office

Real estate revitalization (replanned)

Reception space with a sense of dignity
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Roads

27

OfficeParking
area

Roads

Original design

Sun Frontier Fudousan Co., Ltd.

Rental Brokerage

Expanding Our Network Focused on Local
Communities in Central Tokyo
1． Specialized in small and medium-sized
office buildings in central Tokyo
We have 11 hubs, mainly in central Tokyo.
Because we have close ties with the local
community, and can better utilise local
knowledge, careful tenant placement is ourstrength.

Ueno
AkihabaraNew

Ikebukuro

Kanda

Kodenma-cho

Kudan

Nihonbashi

Shinjuku
Kojimachi

2．Courtesy extended to our clients have cometo trust and we have become “the partner for
their real estate”.
We are their trustworthy point of contact toconsult and solve any of their problems.

Tokyo

Imperial
PalaceShibuya

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

Ginza

AoyamaShinbashi

Toranomon

Ebisu

Akasaka

3．We have understood tenant needs andsignificantly contributed to full occupancy ofthe properties of revitalization business.
4．Windows to purchase properties forrevitalization business.
We have often purchased buildings directlyfrom our customers through the consultationon their problems of inheritance and aging
buildings.

HibiyaHead
OfficeGotandaPlannedHamamatsucho

Shinagawa

Yokohama
are locations of the core branches.
are locations of new branches.
Appearance of Kodenmacho branch

28

Hamamatsucho branch (to open)

Sun Frontier Fudousan Co., Ltd.

Property Management

Area and Occupancy Rates of Buildings
entrusted by PM
100%

98%

96%

97.9%

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

800,000(As of March 31, 2019)

97.8%

700,000(As of April 1, 2019)

Operating rate of our PM entrusted
properties

600,000

94%

92%

500,000
Average occupancy rate of medium-sizedbuildings in 23 wards in Tokyo

400,000<2018 PM Client Rankings>

90%

Top Companies in terms of
Number of Contracted Owners *

88%

86%

Approximately 84% of our PM entrusted properties are more than 20 years
old and so, we consult our clients about renovation and replacement to prove
our strengths, “abilities to solve comprehensive problems regarding realestate.”300,000
2018

2017

1

Vortex

690

606

2

Xymax

495

422

3 Sun Frontier Fudousan

271

268

4

Japan Property Solutions

178

170

5

Ken Corporation

130

130

84%

200,000

100,000

0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2009/3
2010/3
2011/3
2012/3
2013/3
2014/3
2015/3
2016/32017/3
2018/3
2019/3*Source: Our research based on “Monthly Office Market Research Report" by Sanko Estate Co., Ltd., for average occupancy rate of medium-sized buildings in Tokyo 23 wards in Tokyo.
*Operating rate: (Total operating area)/(Total lent available area). Operating rates and contracted areas include those of our RP properties.
*Source: “PM Client Ranking is based on the November 2018 issue, “Monthly Property Management".
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

29

Sun Frontier Fudousan Co., Ltd.

Conference Room Rental Business

Expanding the Sharing Business to Utilize Space
Our purpose is “to contribute to the Japanese economy as infrastructure, supporting
corporate activities in central Tokyo“ and to pursue the purpose we have spun off
conference room rental business for further business expansion.

Established Sun Frontier Space Management Co., Ltd.

The number of seats will be 6000 in
June this year!

*VO Kanda

Rental conference room (Vision Center): 9 sites*VO Kanda ANNEX

Rrental offices (Vision Office): 3 sites
Kanda

Nihonbashi

Coworking (Vision Works): 2 sites*VC Tokyo Nihonbashi*VO Shinjuku*VC Tokyo Eki Mae
Shinshuku

Tokyo*VC Nagatacho*VW Tokyo
Yurakucho
Nagatacho*VC Yaesu South Exit
*VC Yaesu Central Entrance

VC Yokohama to haveadditional floors in April

Hamamatsucho*VC Yokohama
Shinagawa*VW Tokyo Yurakucho

Tamachi*VC Hamamatsucho

Yokohama*VC Tokyo Yurakucho*VC Tamachi

appearance ofthe building

appearance ofthe building

VC Shinjuku to Open in June(planned)*The seat number of meeting rooms for rent is calculated using the school format (threeseat per desk).
Seats allocated in a square shape are calculated for the rooms to which the school format
can not be applied.

Our sharing business will be expanded to 45 sites in total by the end of March 2023
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

30

Sun Frontier Fudousan Co., Ltd.

The Hotel Business
Proactive Expansion into Growth Markets

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

31

Sun Frontier Fudousan Co., Ltd.

2) The Hotel Business
Proactive Expansion into Growth Markets

We are aiming to have 5,000 rooms in operation by FY ending March 2023.
Taking advantage of the increasing volume of visitors to Japan, we are expanding into urban andregional tourism areas.
<Theme> Warm-Hearted Hotels

1.
2.
3.

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

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

Hotels provide a high quality, comfortable and personal service by warm-hearted employees who
work from the guests’ viewpoint.
<Two Strategies to Increase the Number of Operating Rooms>
1) Our flagship hotel brand "HIYORI HOTELS & RESORTS" is developed from a vacant lot.
We are aiming to become a well-known brand among upper brands.
2) Utilizing revitalization, M&A, and brand change, we will increase the number of guest rooms in a
flexible way to respond to diverse needs and markets.
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

32

Sun Frontier Fudousan Co., Ltd.

"HIYORI Hotels & Resorts" flagship hotel brand2nd Hotel of “HIYORI Hotel" brand is ready to open
The warm-hearted hotel, nearest to Kansai Airport.

'HIYORI HOTEL OSAKA NAMBA’ TO OPEN.
A new hotel is going to open in front of the station, 38 minutes away by the Nankai Rapit Express from Kansai International Airportand 2 minutes away on foot from Namba Station's ticket gate.
The grand opening of a total of 224 rooms is scheduled in May when the SAKURA building is due to be completed. The hotel will befully equipped with an Italian restaurant run by a famous chef and a cafe serving freshly baked bread. The guest rooms are spaciousand luxurious by design to provide guests with the most comfortable experiences.

Following our theme, "A warm-hearted hotel", the entire staff will welcome guests with heartwarming hospitality that will
make guests think "I want to see that member of staff again." and "I want to stay again.
SAKURA Building

MOMIJI Building

Grand Open in May

Pre-Open in April

Our international staff welcomes you with a spirit of hospitality.

All rooms feature tatami flooring (Family Twin).

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

33

The image of a café
to serve freshly baked bread

Sun Frontier Fudousan Co., Ltd.

2) The Hotel Business
Proactive Expansion into Growth Markets

Large-scale hotels to open one after anotherin FY Ended March 2020
open inofbusiness 2019To
October 2019

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

Sky Heart Hotel Premier Kurashiki Mizushima
To open in
February 2020

*Location: Chuo-ku, Osaka City, Osaka Prefecture*Structure: Steel structure, partially reinforced concrete
structure
17-story building with one basement*Number of guest rooms: 193 rooms*Site area: 754.75 m2 (228.31 tsubo)*Total floor space: 8,194.32 m2 (2,478.78 tsubo)

Appearance

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

To open in
December 2019

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

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

Sky Heart Hotel Premier Kashima

To open in
March 2020

*Location: Chuo-ku, Tokyo*Structure: 11 stories reinforced concrete structure*Number of guest rooms: 135 rooms*Site area: 551.38 m2 (166.79 tsubo)*Total floor space: 3,725.0 m2 (1,126.81 tsubo)

Appearance

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

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

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

34

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

Sun Frontier Fudousan Co., Ltd.

2) The Hotel Business
Proactive Expansion into Growth Markets“HIYORI Ocean Resort Okinawa” Project in progress
Location on a hill with a beautiful view
Hotel Exterior Perthof the(distantsea view)

Hotel Appearance

To open in September 2020
Condominium Hotel with 204 rooms

Model guest room

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

A Basin extending from thelobby to the sea

35

All rooms are suites with a terrace
with an ocean view

Sun Frontier Fudousan Co., Ltd.

2) The Hotel Business
Proactive Expansion into Growth Markets

List of hotels under operation and development
Ongoing Development to equip 5,000 guest rooms in FY Ending March 2023

No. ofRooms

StatusOpen (Plan)

Brand

In
operation

Apr. 2016

Collaborative

Tokoname

194<Domestic Hotels>In
operation―

Original

Kawasaki200

In operation

1,501 roomsIn
operation―

Original

Koiwa

105

1,005 roomsIn
operation―

Original

Narita100

669 rooms

In
operation―

Original

Hakata159

In
operation

Apr. 2017

Original

Maihama

80

Rented―In
operation―

Original

Sado (Azuma)

57

In
operation

May 2018

Original

Hida-Takayama

80

In
operation―

Original

Shimonoseki

105

In
operation

July 2018

Original

Sado (Chigusa)

111

Under
Construction

May 2019

Original

Namba, Osaka

224

Under
Construction

Oct.. 2019

Original

Honmachi, Osaka

Under
Construction

Dec.. 2019

Original

Ginza-higashi

Under
Construction

Feb. 2020

Original

Mizushima

Under
Construction

Mar. 2020

Original

Kashima

Under
Construction

Sep. 2020

Original

Onna, Okinawa

204

In planDec. 2020

Original

Kyoto Nijo

205

In planApr. 2021

Original

Miyako Island120

In planApr. 2022

Original

Kyoto Shijo

134

In planDec. 2022

Original

Ishigaki Island

210

Under construction
In plan

3,175 rooms

Total*As of May 10, 2019*"Running" is the total of "OPERATING" and "RENTING" in theright table.
* Only the MOMIJI building of Osaka Namba is added to“OPERATING.”

Sado (Chigusa)
Sado (Azuma)

ToyamaOnna, Okinawa

Kashima

Kyoto Nijo
Kyoto Shijo
MaihamaIshigaki
IslandMiyako Island

Osaka Honmachi
Osaka Namba
NaritaMizushima

Koiwa

Shimonoseki

Ginza-higashi
HakataTokoname
In operation or in lease

Kawasaki

193
135
155
194

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

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

210

Other Company Toyama

To open in this FY

Takayama

Hotel Name Location

36*Only the MOMIJI building (100 rooms) is pre-opening. With the completion of SAKURA Building(124 rooms) at the end of May, the hotel will officially open.

Sun Frontier Fudousan Co., Ltd.

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

To be completed

in September 2019

Completed in January after 623 days
construction without accidents

There are seven direct flights a weekfrom Narita Airport to Da Nang and also
seven direct flights a week from KansaiInternational Airport
There are 24 direct flights a week from
China.
There are 247 direct flights a week from
Korea.

Planned Appearance
on completion

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

Model Room (living room)

37

This is the area where many companies
are willing to expand business and aresort which attracts many visiotors
from Asia.

Sun Frontier Fudousan Co., Ltd.

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

<M&A and Business Acquisition Results>
Year

Company name and business name

Overview of Business

1

2010

Sonomamma (just as it is) Office !

Specialized sites for furnished offices

2

2012

Yubi (Current SF Building Maintenance)

Building maintenanceVision Center and Vision OfficeRental conference rooms and offices

3
4

2016

Hotel AU Tokoname(Currently Spring Sunny Hotel Nagoya Tokoname)

RelatedperipheralbusinessHotel

5

Sky Court Hotel(Currently SKY HEART Hotel)

Hotel

6

Hotel Azuma

Long-established ryokan (Sado Island)

VIP Nangoku (Currently SKY HEART Hotel Shimonoseki)

Hotel

8

Okesa Kanko Taxi

Taxi and sightseeing bus (Sado Island)

9

Kouwa Corporation

Interior finishing work for offices

Sado Biyori

Information site on Sado Island

7

2018

Conference
room rental
business

FacilityHotel
operation

Regeneration,
development,
construction
and operation ofreal estateArchitecture &construction
Residential
Management

2019
10

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

38

Sun Frontier Fudousan Co., Ltd.

Regional Revitalization Business
Project in progress on Sado Island< We Will Energize Sado Island through Tourism! >When rural areas are energized, so Japan as a whole will be. As the number of foreign visitors to Japan rapidly increases,
spurred by a fascination (culture, history, nature, meals, hot springs, hospitality, etc.) that Japan is proud of, we will take on
the challenge of regional revitalization projects that focus on the attractiveness and features unique to regions, in particular
the regions that possess the "Wonderfulness of Japan". The first will be Sado, where we are familiar with.

Sun Frontier Sado
Hotel BusinessTransportation
Infrastructure Project

Hotel Azuma

Highlight Finding
Project

Tourism and Travel
Business

Kanko
Oyasuminokoro

Okesa Kanko Taxi

Web Advertising
Business

Travel Agency

Sado Biyori

Rental Car Business

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

39

Sun Frontier Fudousan Co., Ltd.

5) Company Information and Reference Materials

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

40

Sun Frontier Fudousan Co., Ltd.

Corporate Data
Company Name
Head office address
Established
Stock listing

Sun Frontier Fudousan Co., Ltd.
Toho Hibiya Building, 1-2-2 Yurakucho, Chiyoda-ku Tokyo
April 8, 1999
November 19, 2004 (Jasdaq Stock Exchange)
February 26, 2007 (First Section of Tokyo Stock Exchange)

Capital Stock ※11,965 million yen

Representative

Tomoaki Horiguchi, President

Number of Consolidated
522 full-time employees (850 including part-timers and temporary workers)
Employees ※Average Age of
Employees※

33.6 years old(※ As of March 31, 2019)

Real estate revitalization

Business Profile:

Real estate Services

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

Hotel development and management

Accounting Month
Listed Market

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

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

41

Sun Frontier Fudousan Co., Ltd.

Corporate History
1999

Foundation of Sun Frontier Co., Ltd. (20th years anniversary in April 2019)

2000

Company name changed to Sun Frontier Fudousan Co., Ltd.

2001

Replanning ※ Business (real estate revitalization) started

2004

Shares registered over the counter with the Japan Securities Dealers Association (Currently JASDAQ) (5 years and 7
months after the company was founded)

2007

Listed on the First Section of the Tokyo Stock Exchange (2 years and 3 months after JASDAQ listing)2012

Yubi Co., Ltd. (Currently SF Building Maintenance Co., Ltd.) became a consolidated subsidiary through M & A

2013

Established a local subsidiary (Tokyo Yoko Real Estate Co., Ltd.) in Taiwan

2015

Established Sun Frontier Hotel Management Co., Ltd. (for hotel management business)
Established a local subsidiary (SUN FRONTIER VIETNAM CO., LTD.) in Vietnam
Acquired rental conference room and office business2016

Origin of the company name
name
Sun

Pioneer of frontier

I named our company Sun Frontier,wishing “just as the sun shines its lightequally on all every day for thehappiness of human kind and society,we could shine all the people with ourlove and also we want to live a strong
and bright life. To this end, we strive to
be a company that never ceases to beambitious, dream, challenge andpioneer.”

Established a local subsidiary (PT.SUN FRONTIER INDONESIA) in Indonesia
Opened the first overseas hotel "The Blossom City" in Da Nang, the largest city in central Vietnam
Skycourt Hotel Co., Ltd. (Currently SKY HEART Hotel Co., Ltd.) becomes a consolidated subsidiary through M & A
Opened “HIYORI Hotel Maihama, " the first hotel of our own brand HIYORI

2017

Started construction of 'HIYORI Garden Tower,’an urban high-rise condominium in Da Nang, Vietnam
Established Sun Frontier Sado Co., Ltd., starting regional revitalization business2018

Opened “Tabino Hotel Hida Takayama” and "Tabino Hotel Sado"
Established Sun Frontier Okinawa Co., Ltd., starting construction of "HIYORI Ocean Resort Okinawa"“HIYORI Hotel Maihama” won the 2019 OZmall Award, ranked at the top of Japan word of mouth ranking of the year

2019

Established Sun Frontier Space Management Co., Ltd. a spin-off of the rental conference room business
Opened “HIYORI Hotel Osaka, Namba” the 2nd hotel of our flagship HIYORI brand* “Replanning" is a registered trademark of Sun Frontier Fudosan Co., Ltd..
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

Tomoaki Horiguchi, President

42

Sun Frontier Fudousan Co., Ltd.

Sun Frontier’s Corporate philosophy
Company policy
Altruism

Corporate Philosophy
With a vision to protect all employees and pursue mental and material happiness,
we will contribute to prosperity of human kinds and society with a mindset of
cohabitation.
<Corporate Mission Statement>

Three Major Policies
1. Altruism rather than selfishness
2. To follow the right things.
3. Absolute proactivity.
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

43

Sun Frontier Fudousan Co., Ltd.

Vision and Policy
As “professionals of real estate utilization"
we aim to be “the real estate company” of the world's most
loved, trusted and selected.

VisionCustomerCore Business

PolicyStrategy

Building owners, asset holders, wealthy individualReal estate revitalization and utilization
Not for profit, but for trust
To solve problems from the customer's perspective
To focus on people rather than property

Central Tokyo

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OfficeStrength44

Tenantmediation

Real estate
Effective
revitalization operation

Sun Frontier Fudousan Co., Ltd.

Changes in Net Sales, Ordinary Income andNumber of Employees(1 million yen)

Both Net Sales and Ordinary Income remained strong.
The number of employees is steadily increasing.

60,000(People)600
53,291

48,15050,00047,463

522

500

売上高
40,00040,394

経常利益

400
35,254

従業員

30,62530,00026,87020,000

0

134

199

206

16,73096

10,00027,741

125

152

141

380
300

276

223
200

181

14,469
142

1,771
84
52 70
681 140
8,289 6,346
24
7,760
3,474
5,003
210
3,588
791 1,437
377 501

329

17,772

139

10,580
6,923
4,341

4,289
541

799

5,593

7,024

8,894

12,813
10,755

100

2,039
0

2000/3 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 2019/3(3,776)(10,000)(20,000)
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

(100)(17,794)

45(200)
Sun Frontier Fudousan Co., Ltd.

Steep Increase of Foreign Visitors to Japan
Since the volume of foreign visitors exceeded 10 million in 2013, it has increased rapidly because therequirements for issuing visas have been eased and their income levels have improved. In 2018, the volume
of foreign visitors finally exceeded 30 million.
The government has set a target of 40 million by 2020 and 60 million by 2030.
(10,000 people)

Number of Foreign Visitors to Japan

6,000

5,000

6,000

Annual volume offoreign visitors
exceeded 30 million
for the first time.

4,000

4,000

3,119
2,869

3,000

2,403
1,973

2,000

1,341
1,000

622

836

1,036

0
2011年
2011

2012年
2012

2013年
2013

2014年
2014

2015年
2015

2016年
2016

2017年
2017

2018年
2018

…

2020年
2020

…

2030
2030

Source: Prepared by Our Company based on materials released by the Japan National Tourism Organization (JNTO).
Copyright © 2019 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.

46

Sun Frontier Fudousan Co., Ltd.

We will appreciate yourfurther supports.

Sun Frontier Fudousan Co., Ltd.

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

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