Long-Term Vision and Mid-Term Management Plan

Background and purpose of formulation

In order for the Sun Frontier Group to achieve sustainable growth while realizing its corporate philosophy over the long term, we have determined that clarifying our strategies and initiatives promptly and consistently under a unified objective will enhance constructive dialogue with the capital markets. Based on this view, in May 2024 we formulated our Long-Term Vision 2035—which outlines our ideal form as a corporate group ten years from now—and a new Medium-Term Management Plan covering the fiscal years ending March 2026 through March 2028, aimed at realizing that vision, while building upon the foundation laid by our previous Medium-Term Management Plan (FY2019/3–FY2025/3).
April 2025 marks the 25th anniversary of our founding. Since our establishment, we have operated under our corporate credo of Altruism. Guided by this principle, we are committed to “protecting all employees, pursuing both material and emotional well-being, working with a spirit of co-creation, contributing to the evolution and development of human society, and realizing a sustainable society.” Even amidst the unprecedented challenges posed by the COVID-19 pandemic, we have remained steadfast in this mission. As a result, we successfully achieved the sales and profit targets set forth in our previous Medium-Term Management Plan in the fiscal year ended March 2025. Looking ahead to our new Medium-Term Management Plan through FY2028/3, we not only aim to achieve the newly established quantitative goals but also strive to grow into a corporate group that can contribute even more significantly to society.

Long-Term Vision 2035

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

Quantitative target We aim to achieve

FY2035/3

Net Sales300 billion yen

Ordinary Profit60 billion yen

Based on the Company policy “compassion”, the Group aims to achieve the Long-Term Vision 2035 and its quantitative targets through realizing the Management Philosophy of “Our mission is to look after every employee and pursue the happiness of both mind and matter. At the same time, to co-create a rich and sustainable society by contributing to the evolution and the development of the human society.”

Roadmap to Long-term Vision 2035

Previous Medium-term Management Plan (Achievements) FY2019/3 to FY2025/3

Basic policy

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

Net sales	103.1 billion yen
Ordinary profit	20.4 billion yen
Ordinary profit	19.8%
ROE	14.7%
Equity ratio	46.8%

Medium-term Management Plan FY2026/3 to FY2028/3

Basic policy

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

Net sales	135 billion yen
Ordinary profit	27 billion yen
Ordinary profit	20%
ROE	14% or more
Equity ratio	Around 45%

Long-term vision 2035

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

Net sales	300 billion yen
Ordinary profit	60 billion yen

Medium-term management plan

Based on our Long-Term Vision 2035, which outlines the ideal form we aspire to become ten years from now, we have formulated a new Medium-Term Management Plan covering the three-year period from the current fiscal year through the fiscal year ending March 2028 (FY2026/3 – FY2028/3). The outline of the plan is as follows:

Basic policy

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

Quantitative target

		March 2025	March 2028(Target)	Growth rate
Profit plan	Net sales	103.1 billion yen	135 billion yen	35.0%
Profit plan	Ordinary profit	20.4 billion yen	27 billion yen	35.0%
Management indicator	Ordinary profit	19.8%	20%
	ROE	14.7%	14% or more
	Equity ratio	46.8%	Around 45%

March 2025
Profit plan	Net sales	103.1 billion yen
Profit plan	Ordinary profit	20.4 billion yen
Financial Target	Ordinary profit	19.8%
	ROE	14.7%
	Equity ratio	46.8%
March 2028(Target)
Profit plan	Net sales	135 billion yen
Profit plan	Ordinary profit	27 billion yen
Financial Target	Ordinary profit	20%
	ROE	14% or more
	Equity ratio	Around 45%
Growth rate
Profit plan	Net sales	35.0%
Profit plan	Ordinary profit	35.0%
Financial Target	Ordinary profit
	ROE
	Equity ratio

Growth strategy

Accelerate growth by diversifying real estate utilization combining development, services and operation, as well as expanding business domain and operation area.
*Bold: Business domain and operation area planned to be expanded from the Current Plan.

Three focus markets	Business model	Business domain	Operation area			Our goal
Office	Development	Renovation	Tokyo		Osaka^※1	Contribute to the realization of a sustainable society by utilizing real estate in resource recycling methods.
		New Construction^※1
		Sale of small-lot (Act on Specified Joint Real Estate Ventures)
	Services	Real Estate Services				Resolve our clients’ concerns from their perspective, for their smile and excitement.
	Operation	Rental conference rooms
Hotels	Development	New Construction	Nationwide			Expand heart-warming and fun hotels nationwide to grow with local communities.
	Development	Renovation
	Operation	Hotel Operation
Residential	Development	New Construction^※1	Vietnam^※2	Tokyo^※2		Provide high quality residential environment full of safety, security and comfort to contribute to the development of nations
	Development	Renovation^※1	New York^※2
	Services	Real Estate Services^※1	Vietnam^※2 New York

※1Business expansion

※2Area expansion

Key Points

Strengthening human resource base

Strengthen recruitment and training to enhance human recourse.
Cultivating human resources as leaders through education and expanding organizations through amoeba division.
Further evolve into a corporate group that attracts human resource with diversity and our values of altruism regardless of age, sex, or nationality.

Manufacturing through clients' point of view and heart-warming services

Manufacturing through clients' point of view

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

Heart-warming services through clients' point of view

Working closely with building owners to improve long-term problem-solving ability.
Improving ability of responding to needs of tenants and service users with care and warmth.
Educate and create an organizational culture to provide heart-warming and enjoyable services that impress hotel guests.

Cooperation and diversification within core business

Cooperation and diversification within core business (flow-type business)

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

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

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

Notice Regarding Long-Term Vision and Medium-Term Management Plan

The Sun Frontier Group formulated its Long-Term Vision toward the fiscal year ending March 2035, along with the next Medium-Term Management Plan, covering the three-year period from the fiscal year ending March 2026 through the fiscal year ending March 2028, on May 10, 2024.

05.10.2024: Announcement of the Long-Term Vision and Formulation of the Next Medium-term Management Plan (106KB)

05.10.2024: The medium-term Management Plan (FY2026/3 to FY2028/3)(4673KB)

Previously, the Group had announced on May 8, 2018, a Medium-Term Management Plan ending in the fiscal year March 2023. We subsequently disclosed a revision to that plan on May 12, 2021.

05.12.2021: Revision of the Medium-Term Management Plan（2765KB）

Inquiries about IR

Sun Frontier Real Estate Co., Ltd. Management Planning Department
Address: 14th Floor, Toho Hibiya Building, 1-2-2 Yurakucho, Chiyoda-ku, Tokyo 100-0006

+81-3-5521-1551

Weekdays 9:30 AM - 6:00 PM JST
(excluding Saturdays, Sundays, and national holidays)

Inquiries about IR

Sustainability

Valuing the spirit of altruism, contributing to the realization of a sustainable society