Sumitomo Real Estate Sales Group at a Glance Business Overview by bigpoppamust


									Sumitomo Real Estate Sales Group at a Glance

                                                                    Business Overview                                Revenue from Operations (Note)/
                                                                                                                     Operating Income (Fiscal 2008)

                                              The brokerage business constitutes a major pillar of our
      Brokerage                               Group’s activities. It offers brokerage services to cus-
                                              tomers who are buying and selling real estate, with a fo-
                                              cus on existing condominiums and single-family hous-
                                              es. Our “Property Listing First” (Butsumoto Shugi)
                                              policy is a key characteristic of our brokerage business
                                              and offers a large number of properties for sale. It en-
                                              sures that we can provide a prompt and accurate re-                  Revenue
                                              sponse to our customers’ diverse needs.                              from Operations

                                              We sell entrusted properties such as new condominium                 Revenue
                                                                                                                   from Operations
      Consigment                              units and single-family houses on behalf of our clients.
                                              Such consigned properties are sourced from a wide

      Sales                                   range of enterprises. Sumitomo Realty & Development
                                              Co., Ltd., the 8th largest supplier of new condominiums
                                              in Japan in 2007, is the main consignor to this business.                                       5.4%

                                              We own and lease office buildings and condominiums                   Revenue
                                                                                                                   from Operations
      Property                                which are located within the central business district
                                              and the densely populated Tokyo Metropolitan Area.

      Leasing                                 The property leasing business is less prone to seasonal
                                              fluctuations, which allows us to maintain steady reve-
                                              nues from operations.                                                                           6.6%

                                              Our subsidiary enterprises, Well Yokohama Co., Ltd. and              Revenue
                                                                                                                   from Operations
      Sales                                   Step Investment Co., Ltd. operate in real estate sales
                                              businesses such as the sale of newly developed housing,
                                              the upgrading of existing properties, and sales of land.
                                              We also utilize our directly-managed brokerage office                                         Income
                                              network to secure ongoing procurement and sales of                                              1.8%

                                              In addition to the 4 business types outlined above, we               Revenue
                                                                                                                   from Operations
      Others                                  also provide support services for administrative activi-
                                              ties related to mortgages and loans for real estate trans-

   Note: Revenue breakdown by business segment is calculated using revenue from operations excluding intersegment transactions of our consolidated group.

10 Sumitomo Real Estate Sales Co., Ltd.
         Revenue from Operations and                            Subsidiary and Affiliates,
         Operating Income Margin                                Number of Offices,                                Positioning and Strategy
  Revenue from Operations Operating Income Margin               Assets, Number of Employees

(Millions of Yen)                                        (%)   Subsidiary:                     Our retail business accounts for approximately 90% of the
60,000                                51,932 52,904       60    Sumitomo Real Estate Sales     overall brokerage business. We directly own and manage all
                             44,717                               (N.Y.), Inc.                 of our retail business offices, which provide nationwide high-
          36,104 39,921                                        Number of Brokerage Offices:    quality services to our customers. We continue to position the
40,000                           35.5     37.8     36.3 40      238                            retail business as the main driver for the further growth of
               28.8                                            Assets:                         the Group and we plan to expand our operations accordingly.
20,000                                                    20    ¥10.6 billion                     In our wholesale business we will strive for further growth
                                                               Number of Employees:            through vigorous sales and marketing campaigns, and also
                                                                2,281                          via the acquisition of consignment arrangements for real es-
      0    2004      2005     2006    2007    2008         0                                   tate sales from public agencies.

(Millions of Yen)                                        (%)   Subsidiaries:                   As a great amount of replacement demand arises from our
 8,000                                        7,120       40    Step Associates Co, Ltd.       consignment sales, we achieve significant synergies with
           6,465              6,459 6,454                       Sumitomo Real Estate Sales     our brokerage business.
 6,000                                                    30      (N.Y.), Inc.                    Our business strategy is to improve profitability by en-
                                                               Assets:                         hancing the quality of our consignment sales properties,
 4,000         18.1              17.9     18.8     17.3 20
                                                                ¥2.0 billion                   and to improve sales efficiency to cope with the uncertain
                                                               Number of Employees:            future prospects of the new condominium market.
 2,000                  9.0                               10    434

      0    2004      2005     2006    2007    2008         0

(Millions of Yen)                                        (%)   Subsidiary:                     We have secured a high operating income margin through
                                                                Step Properties Co., Ltd.      our efficient operations in the property leasing business.
 3,000     2,613
                     2,439            2,556 2,633         75
                              2,399                            Affiliate:                      We will continue to focus on maintaining and improving
                                                                Roppongi First Building        the efficiency of operations by fully utilizing existing assets
 2,000                  48.5     49.6     55.3            50      Co., Ltd.                    to their maximum potential, rather than by expanding the
                                                               Assets:                         number of such assets. The brokerage and consignment
 1,000                                                    25    ¥55.2 billion                  sales divisions are the core components of our business and
                                                               Number of Employees:            we are therefore determined to concentrate our operating
                                                                10                             resources in these areas.
      0    2004      2005     2006    2007    2008         0

(Millions of Yen)                                        (%)   Subsidiaries:                   Our main concept in the sales business is to maximize syn-
10,000                                8,798               20
                                                                Well Yokohama Co., Ltd.        ergies with our brokerage business to more effectively con-
                     6,911                    7,907             Step Investment Co., Ltd.      tribute to the Group’s revenue growth. Unlike brokerage and
 7,500                                    14.0            15   Assets:                         consignment sales, which are fee-based businesses, the
                            4,886                               ¥5.6 billion                   sales business entails greater risks because the company
 5,000     3,701        10.0 8.7                          10   Number of Employees:            holds the assets prior to sale. Therefore, we intend to main-
               6.5                                 5.2          19                             tain a steady pace of expansion rather than try to achieve
 2,500                                                     5                                   rapid growth of this business.

      0    2004      2005     2006    2007    2008         0

(Millions of Yen)                                        (%)   Subsidiary:                     This additional business supplements our main real estate-
 1,250                                1,136              100    Step Loan Partners Co., Ltd.   related activities. We will aim to further strengthen collabo-
            926                951                             Assets:                         ration within the Group, to ensure the stable growth of the
 1,000                888                                 80    ¥6.9 billion                   existing businesses.
               54.8                              746
   750                  45.9                              60   Number of Employees:
                                 47.4     64.4     42.1         33
   500                                                    40

   250                                                    20

      0    2004      2005     2006    2007    2008         0

                                                                                                                        Sumitomo Real Estate Sales Co., Ltd. 11

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