Sun Frontier Fudousan : Financial Results for the Fiscal Year Ended March 31, 2022

Financial Results for the Fiscal Year Ended March 31, 2022

We are aiming to be the real estate company of the

world's most loved, trusted and selected by clients.

1) Overview of the FY ended March 2022	1-11
2) Earnings Forecast and Growth Strategy	12-15
3) Medium-term Management Plan, Business	16-27	May 13, 2022
Progress and New Initiatives
4) Corporate Philosophy, Sustainability and	28-42
Business Model
		Securities Code :
5) Reference Materials	43-50
		8934

Overview of Full-Year Results for the FY ended March 2022

Real Estate Revitalization Business drove performance. Profits exceeded plan.

	Results	Profit Margin	Year-on-Year	Growth Rate
Net Sales	71,251	-	+11,618	19.5%
Operating Profit	12,127	17.0%	+4,214	53.3%
Ordinary Profit	12,215	17.1%	+4,691	62.3%
Net Profit*	7,415	10.4%	+3,140	73.5%

• "Net Profit" represents the profit attributable to owner of parent.

	(Unit: million yen)
Full-Year Forecast	Progression Rate
76,000	93.8%
12,000	101.1%
11,500	106.2%
7,400	100.2%

Performance Highlights

• 1. Year-on-yearincrease in Real Estate Revitalization Business contributed to achieving the profit targets
• The number of units sold in RP Business was 21 (23 in the previous fiscal year). Sales of four relatively large-scale mid- to long-term properties in high profit margin drove earnings (segment profit margin 29.2%, +4.9%pt year-on-year).
• The Office Division was working hard in commercialization. Sold as a high-occupancy,high-added-value replanning product. Maintained high quality and generated high profits even in the pandemic of COVID-19.

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

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

1

Trends in Consolidated Results

Operating profit, ordinary profit, and net profit saw a V-shaped recovery from the pandemic of COVID-19. Ordinary profit margin improved to 17.1%.

Increased year-end dividend by 2 yen.

(Unit: Million yen)

		FY ended	FY ended	FY ended	FY ended	FY ended
		March 2018	March 2019	March 2020	March 2021	March 2022
	Net Sales	47,463	53,291	73,218	59,632	71,251
	Operating Profit	11,239	13,305	16,571	7,912	12,127
	Ordinary Profit	10,755	12,813	16,127	7,524	12,215
	(Ordinary Profit Margin)	(22.7%)	(24.0%)	(22.0%)	(12.6%)	(17.1%)
	Net Profit*	7,420	8,783	10,666	4,274	7,415
	Earnings per share	167.62 yen	180.35 yen	219.03 yen	87.77 yen	152.26 yen
	Dividend per share	33.50 yen	38.50 yen	42.00 yen	42.00 yen	44.00 yen
						(Forecast) * 2
	* "Net Profit" represents the profit attributable to owner of parent.
			* 2 See page 15 for details.
Copyright © 2022 Sun Frontier Fudousan Co., Ltd. All Rights Reserved.	2

Trends in Achievement Rate of Disclosed Budget

Ordinary profit continues to steadily achieve the budget at the beginning of the fiscal year.

(million yen)							120.0%
20,000				115.2%	115.8%		110.0%
					106.2%
	108.5%	107.6%	108.6%	16,127
15,000				15,500			100.0%
			12,813
			14,000		12,215
		10,755	11,800
10,000					11,500	90.0%
8,894
10,700
		10,000			7,524
	8,200
					7,100
5,000					6,500		80.0%
0							70.0%
	17/3	18/3	19/3	20/3	21/3	22/3

Disclosed budget (L axis)		Upward revision (L axis)		Result (L axis)		Achievement	rate	(R axis)

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

3

Trends in Key Management Indicators

■ Changes in Ordinary	■ Changes in Equity Ratio	■ ROE
Profit Margin	(Building a Stable Financial Base)	(Striving to improve capital efficiency)
(Pursuing High-Value-Added Management)

Net Sales (L axis)

Ordinary Profit (L axis)

(million yen)

Ordinary Profit Margin (R axis)

80,000

70,000

22.7% 24.0% 22.0%

60,000

50,000

17.1%

40,00012.6%

30,000

20,000

10,000

0

18/3 19/3 20/3 21/3 22/3

								Net Assets (L axis)
		(million yen)				Equity Ratio (R axis)
30%		80,000										80%
25%		70,000										70%
		60,000										60%
		53.2%	50.3%		52.3% 52.2%
20%						49.6%
	50,000						50%
15%		40,000										40%
10%		30,000										30%
5%		20,000										20%
	10,000										10%
0%		0										0%
		18/3	19/3	20/3	21/3	22/3

ROE
20.0%
17.6%	16.8%	17.7%
15.0%
				10.8%
10.0%
5.0%			6.5%
0.0%
18/3	19/3	20/3	21/3	22/3

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

4