IR Conference

Financial Results for the Fiscal Year
Ended March 31, 2021
May 28, 2021
JALUX Inc.（TSE #2729）

Financial Results for Year Ended March 31, 2021

【INDEX】
Consolidated Financial Summary

Performance per Operation Segment
Forecasts for the Fiscal Year Ending
March 31, 2022
Sustainable growth of JALUX group-2-

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Financial Results for Year Ended March 31, 2021

Consolidated Financial Summary-3-

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1 Overview of FY2020

Financial Results for Year Ended March 31, 2021

Overview of Basic Policy for Fiscal Year Ended March 31, 2021
ØØ

Defensive
management

Ø
Ø
Ø

Ø

Balancedearnings
structureØØØ

Improved
corporate
governance

Serious impact of COVID-19 (greater than expected by JALUX)
Despite increased net cash from operating activities (from 1.4bn to 3.8bn yen),
net cash from investing activities decreased (from 2.7bn to 0.5bn yen), resulting infree cash flow of 3.2bn yen
In addition to securing long-term loans of 4.0bn yen, commitment lines of credit
were increased with several banks
Repayment of short-term loans reduced interest bearing debt by 0.4bn yen andimproved net DER (from 0.31 to 0.23 times)
Business investment was reduced and a business structure was developed in linewith the growth strategy
Focused on the non-aviation and airport business domains to optimize thebusiness portfolio
Implemented structural reform across JALUX Airport Inc.
Conducted thorough review and reform of current business domains due tosignificant environmental change experienced (diversification of lifestyles, values,
and needs)
Established Innovation Committee and launched company-wide Innovation TeamØ

Enhanced corporate
governanceØ

Developed highprobability growthstrategy to achievesustainable growth Increased the number of independent external
directors to promote diversity
 Decided to establish Nominations and Remuneration
Committee (resolution of Board of Directors)
 Due to the prolonged pandemic, delayed the start of
the Medium-Term Management Plan by one year to
make FY2022 the first fiscal year of the plan-4-

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2 Consolidated P/L (Summary)Financial Results for Year Ended March 31, 2021

（Million yen）

Consolidated P/L(Summary)March 2021

Net sales

144,688

80,346△64,341

55.5

Gross profit

25,84012,518△13,322

48.4

SG&A expenses

21,87015,433△6,436

70.6

Operating profit/Loss

3,969△2,915△6,885

－

768

488

△279

63.6

Ordinary profit/Loss

4,738△2,426△7,164－Extraordinary profit/losses△182△1,184△1,001－

3,081△2,366△5,447

－

17.9

15.6

△2.3

△3.0

△6.3

Non-op. profit/expenses

Profit/Loss attributable to owners ofparentGross profit to net sales ratio

3.3

Ordinary profit to net sales ratio

Year over Year

Year over Year（%）

March 2020①

Net Sales

80,346…

YoY △64,341

Sales in aircraft engine parts (△17,675), sales at airport shops (△15,959),
sales at duty-free shops (△10,538)②

SG&A expenses

15,433…

YoY △6,436

Percentage rent (△2,486), labor cost (△1,861), sales commission (△637)③<Non-op. profit/expenses>

488…

YoY △279

Non-operating income: dividend income(97), subsidies (956)Non-operating expense: loss of equity method investments (△469)④<Extraordinary profit/losses>△1,184…

YoY △1,001

COVID-19 related losses: fixed costs of airport shops during temporary
closure (△726), impairment losses on fixed assets (△325)-5-

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3 Comparison with previous forecasts

Financial Results for Year Ended March 31, 2021

（Million yen）

Comparison with previous
forecasts

Results of March
2021

Forecasts*

Difference

Comparison (％)
94.5%

Net sales

85,00080,346△4,654

Operating profit△3,000△2,91585

Ordinary profit△2,500△2,426

74

Profit attributable to owners of parent△2,100△2,366△266△166.09△187.16△2.93

Earnings per share（yen）※Based on the revision of full-year consolidated earnings forecasts announced on October 30, 2020

【Following expenses reported with the view to structural reforms after COVID-19】
Ø Write down of aircraft components owned by JALUX AMERICAS, Inc. (△477)
Ø Impairment loss of aircraft engines owned by JALUX SINGAPORE PTE. LTD. (△208)
Ø Impairment losses on fixed assets of airport shops (△32)-6-Copyright © JALUX Inc. All Rights Reserved.

4 Breakdown of SG&A expenses

Financial Results for Year Ended March 31, 2021

（Million yen）

Breakdown of SG&A Expenses

March 2020

March 2021

Year over Year

Year over Year（%）

Gross profit

25,84012,518△13,32248.4

Personnel expenses

7,951

6,090

△1,861

76.6

Rent expenses

4,538

2,051

△2,48645.2

External service fee

1,653

1,452

△201

87.8

662

555

△107

83.8

Packing and transportation expenses

1,749

1,456

△292

83.3

Other expenses

5,315

3,827

△1,48872.0

SG&A expenses

21,87015,433△6,436

70.6

Operating profit

3,969△2,915△6,885－

Depreciation※Loss due to temporary closure of airport stores (personnel expenses, rent, depreciation ) ¥726 million was recorded as an extraordinary loss
Decrease in SG&A expenses due to△3,332
Ratio rent (△2,346), sales comission (△637), transportation costs (△292)…
①
decrease in sales②

Decrease in SG&A expenses
because of cost reduction efforts③

Decrease in SG&A expenses due totransfer of extraordinary losses※△2,274…

Personnel expenses (△1,304), external services (△201), travel expenses (△287)726…

Personal expenses, rent and depreciation cost during temporary closure (△726)-7-

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5 Consolidated B/S（Summary）

Financial Results for Year Ended March 31, 2021

（Million yen）

Consolidated B/S(Summary)

March 31 2020

Current assets

March 31 2021

48,76540,788△7,977

12,07911,487

△591

6,175

Cash and deposits
Non-current assets

8,466

5,266

Property plant and equipment

4,472

673

Intangible assets

593

6,138

Investments and other assets

6,421

60,844

Total assets

52,27631,704Current liabilities

23,1591,093

Non-current liabilities
Net assets(Net assets attributable to theCompany's shareholders))

Total liabilities and net assets①

Assets52,276…

△8,568②

Liabilities

27,590…

△5,207③

Net assets

24,685…

△3,361

Year over Year

4,431

Year over Year
（%）

2,290

△793
△80

282

△8,568△8,544
3,337

83.6

137.1
95.0
84.9
88.1

104.6
85.9
73.0

405.3

28,046

24,685△3,361

88.0(26,337)(23,465)(△2,872)(89.0)

60,84452,276△8,568

85.9

Increase: Cash and deposits (+2,290) Decrease: sales receivables for aircraft engine parts(△11,118)
Increase: Long-term loans for securing liquidity (+3,335), issuance of commercial paper (+998)
Decrease: Trade payables for aircraft engine parts (△3,803), short-term loans payable (△4,747)
Loss attributable to owners of parent, dividends payment, decrease in non-controlling interest-8-

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6

Financial Results for Year Ended March 31, 2021

Financial Position（Million yen）

Financial Position

March 31 2020

March 31 2021

Year over Year

Year over Year（%）

Total assets

60,84452,276△8,568

85.9

Shareholders’ equity

26,33723,465△2,872

89.0

43.3

44.9

1.6

14,32913,904

△425

0.31

0.23

△0.08

Shareholders’ equity ratio (%)

Interest bearing debt

Debt/Equity ratio (times)

97.0

①

Shareholders’ equity ratio

44.9％

…

Increased 1.6％: Total assets 52,276 (△8,568), shareholders' equity 23,465 (△2,872)②

Interest bearing debt

13,904…

Decreased 425: As a result of increase in long-term loans (+3,335) and commercial
paper (+998), decrease in short-term loans③

Debt/Equity ratio

0.23times…

Improved △0.08points: As a result of decrease in interest bearing debt (△425) andincrease in cash and deposit (+2,290)-9-

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7 Consolidated Cash Flows（Summary）

Financial Results for Year Ended March 31, 2021

（Million yen）

Consolidated Cash Flow

March 2020

March 2021

Year over Year

Cash flows from Operating Activities

1,488

3,825

2,337

Cash flows from Investing Activities△2,744

△592

2,152

Free Cash Flows△1,255

3,233

4,489

1,418

△917

△2,335

Cash flows from financing Activities①

C/F from Operating
Activities: (+)＋3,825…

Net loss before adjustment of taxes (△3,611), collection of account receivables foraircraft engine parts (11,688), payment of account payables (△3,724)②

C/F from Investing
Activities:

△592

…

Purchase of fixed assets (△618)

Free Cash Flows(＋3,233)…

C/F from Operating Activities (3,825) + C/F from Investing Activities (△592)= Free Cash Flows (3,233)

C/F from Financing
Activities:

△917

…

Net reduction in loans payable (△1,267), issuance of commercial paper(998), dividends payment (△632)

③

-10-

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8

Financial Results for Year Ended March 31, 2021

Performance trends from FY2012 to FY2020（Million yen）

Net Sales
Ordinary profit/loss(△)

185,726

141,50285,937

99,837

Net Sales

Ordinary
profit/loss
(△)

1,247
FY2012

1,766

FY2013

143,217

112,717
3,937

4,222

FY2015FY2016

153,404
5,166

144,688
5,094

4,738

80,3462,684

FY2014FY2017FY2018FY2019FY2020△2,426

Previous medium-term management plan

Current medium-term management plan-11-

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9Financial Results for Year Ended March 31, 2021

ROE / ROA / Dividends
ROE

15.0
10.0

11.7
5.8

6.7

13.6

ROA
12.8

12.9

12.2

15.0

7.3

10.0

5.0
0.0

5.0
0.0

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

-5.0

-9.5

-10.0

3.8

FY12

5.5

FY13

7.5

FY14

9.6

9.7

FY15

FY16

11.1

FY17

9.6

FY18

8

FY19

-5.0

FY20
-4.3

-10.0

Dividends per Share (FY2009～FY2020）

40

記念配当

Commemorative dividends

5

15
5

15

20

50

55

65

（Yen per share）

50

25

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020-12-

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Financial Results for Year Ended March 31, 2021

Performance per Operational Segment-13-

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10 Net Sales by Segment

Financial Results for Year Ended March 31, 2021

（Million yen）

Net Sales by Segment

Year over Year

Year over Year（%）

March 2020

March 2021

Aviation & Airport

48,81928,640△ 20,179

58.7

Life service

13,095

13,979884

106.8

Retail

57,625

20,296△ 37,328

35.2

Food & Beverage

26,574

17,857△ 8,716

67.2

Eliminations△1,426

△427

999

-

△64,341

55.5

80,3

Total

144,688

80,346※Breakdown by segment is the amount before elimination of internal transactions-14-

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11 Sales composition ratio of Segment

Financial Results for Year Ended March 31, 2021

（Million yen）

144,688
48,81945%

13,095

7%

57,625
26,57480,34628,64013,97920,296
17,857

34%
14%

March2020■Aviation & Airport

36%
17%
25%
22%

March2021■Life service■Retail■Food & Beverage※Sales including inter-segment transaction
Ø Aviation & Airport：Ø Life Service：

Ø Retail：Ø Food & Beverage：

The demand of aircraft engine maintenance has sign of recovery, while the demand of its
manufacturing significantly declined because of lowering engine's production
Largely steady real estate business and insurance business, growing demand for hygiene
products related to COVID-19
Domestic passenger traffic is recovering but partially offsets due to the re-spread of COVID-19
infection; Significant reduction of international flights affected our duty-free business
Decreasing demand for restaurants and travel affected businesses such as marine products, wines,
souvenir snacks, and lunch boxes-15-

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12 Aviation & Airport

Financial Results for Year Ended March 31, 2021

（Million yen）

Aviation & Airport

Year over Year

Year over Year（%）

March 2020

March 2021

Net sales

48,81928,640△20,179

58.7

Operating profit/loss

1,449

205

△1,244

14.2

Ordinary profit/loss

1,437

△618

△2,055-※1 Net sales and Operating profit including inter-segment transaction※2 Operating profit/loss before allocating common expense

Remarks【Factors of the decrease in sales】
Ø Aircraft engine parts business remained sluggish
ü - maintenance demand decline has partially bottomed out
and signes of recoveredü -manufacturing demand significantly declined because oflowering engine's production【Factors of the decrease in operating income】
Ø Write down of aircraft components owned by overseas
subsidiaries due to sluggish demand for aircraft parts【Factors of the decrease in ordinary income】
Ø Overseas airport operation business in Lao PDR and Myanmar:
recorded loss of affiliated companies due to significant decline offlight48,81928,6401,437△ 618
March 2020

March 2021

-16-

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13 Life Service

Financial Results for Year Ended March 31, 2021

（Million yen）

Life Service

March 2021

Net sales

13,095

13,979884

106.8

Operating profit/loss

1,283

1,307

24

101.9

Ordinary profit/loss

759

902

143

118.9

※1 Net sales and Operating profit including inter-segment transaction※2 Operating profit/loss before allocating common expense

Year over Year

Year over Year（%）

March 2020

Remarks【Factors of the increase in sales/operating income】

13,095

Import and sales of hygiene products on growingØ Machinery&：
Materials
demand13,979Ø Insurance

Remaining steady; insurance sales to overseas： travelers decreased while group insurance
increased
Decreased facility management due to decline ofØ Real estate
March 2020：

airport users. Partial cancellation of subleases.
Generally strong through the development

consultants and leasing brokerage business【Factors of the increase in ordinary income】

March 2021

Temporal increase in dividend income-17-

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14 Retail

Financial Results for Year Ended March 31, 2021

（Million yen）

RetailMarch 2021

Net sales

57,625

20,296△37,328

35.2

Operating profit/loss

2,308△2,554△4,862-

Ordinary profit/loss

1,900△2,289△4,190-※1 Net sales and Operating profit including inter-segment transaction※2 Operating profit/loss before allocating common expense

Remarks【Factors of the decrease in sales/operating income】

Ø Airport
shops『BLUE SKY』

57,625

Ø Duty-free
shops『JAL DUTYFREE』

20,296

March 2020

Year over Year

Year over Year（%）

March 2020

Domestic passenger traffic is recovering but partially offset： due to the re-spread of COVID-19 infection.

Narita airport : Continued closure of all the 10 storesFirst half : Generally all stores closed： Second half : Narita airport : Some stores reopened with

Ø Duty-freewholesaleØ Mail order：Ø Food gifts：

shorter hours
Almost all clients still closed： (+) Online sales, mainly in gourmet products and beauty &health products going well due to the demand of Stay-athome consumption(+) Increased demand for year-end gifts and new-year dishes【Factors of the increase in ordinary income】
Ø Non： Subsidies for temporary closure of airport shops
op.profitØ Extraordinary ： Fixed costs of airport shops during temporary closure
lossesMarch 2021

-18-

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15 Food＆Bevarage

Financial Results for Year Ended March 31, 2021

（Million yen）

Food & Beverage

March 2021

26,574

17,857△8,716

67.2

Operating profit/loss

846

△125

△971

-

Ordinary profit/loss

347

△533

△881

-

Net sales※1 Net sales and Operating profit including inter-segment transaction※2 Operating profit/loss before allocating common expense

Year over Year

Year over Year（%）

March 2020

Remarks【Factors of the decrease in sales/operating income】
Demand for eating out declined. Wholesale ofØ Marineproducts

26,574：processed marine products for restaurants decreased.
Extension of the state of emergency in Thailand
affected Thonglor Nihon Ichiba in the country

17,857

Ø Agricultural
products

Ø Wine(+) Sales of paprika wholesale to retail stores are： going well. Imports of okra and tomatoes decreased
due to soaring air transportation costs

Domestic wholesale sales were sluggish due to a

： decline in demand for eating out. (+) Increased sales
to new clients such as retail stores

March 2020

Decreased wholesale sales of souvenirs and bentoØ Processed
foods/Food ： boxes for transport-related retailers. (+) Increased
manufacturer
sales to new clients such as retail stores

March 2021

-19-

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16 Impact of COVID-19 on Forecasts

Financial Results for Year Ended March 31, 2021

The next medium-term
management plan is scheduled to
be a three-year plan with the fiscal
year ending March 31, 2023 as thefirst year.

-20-

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Financial Results for Year Ended March 31, 2021

Forecasts for the Fiscal Year Ending March 31, 2022

-21-

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17 《COVID-19 Impact Matrix for JALUX Group》

Financial Results for Year Ended March 31, 2021

( The spread of COVID-19⇒ greatly restricted movement and contact of people)

Large

Small

ImpactＡ

AviationandAirportBusiness

Ｂ(Including positive impact)＜Aviation＞
Ø Small and medium-sized aircraft (domestic) parts
business
Ø Early aircraft retirement ⇒ business opportunities＜Aviation＞
Ø Large aircraft (international flight) parts
businessØ Overseas airport operation business (inLao PDR and Myanmar)Ø Overseas Engine Leasing Business＜Airport＞
Ø Airport shops 「BLUE SKY」
Ø Duty-free shops 「JAL DUTYFREE」
Ø Domestic Duty-free wholesaleØ Wholesale of bento boxes at airport

Ｄ①Wholesale business for retail industry (real shops)⇒ increasing demand for home shoppingØ Food wholesale business for department stores(midyear gift, year-end gift)Ø Regional Revitalization and 6th Industrial Project(= providing local high-quality products to large
consumption area)
Ø JALUX Fair (⇒ Increasing at supermarkets)Ø Agricultural business②E-commerce businessØ 「JAL Shopping」 (⇒ Increasing home shopping)Ø "JAL Furusato Nozei” hometown tax service(⇒ Strengthen retail e-commerce business throughDX (Digital Transformation) introduction③Life Service
Ø Real estate businessØ Insurance businessØ Road-related machinery & materials businessＣ

Nonaviation
andairportbusiness

Impact①Restaurants and hotels
Ø Marine productsØ WineØ Wholesale of souvenirs and bento
boxes for transport-related retailers
Ø (non-airport) bento production
business

Market Expansion Strategies
of businesses having beenlessaffected by COVID-19-22-

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18 ”BLUE SKY” Airport Stores: 5-Year Trend
Net sales
23,4201,297

Operating profit/loss
25,067

24,343(Million yen)

22,629

1,529
1,091

6,669

FY2017FY2018FY2019FY2020△1,677

Number of persons using Haneda and Narita airports(Thousand people)

Post-COVID-19 strategy
1. Radically reform business structure
2. Gain competitive advantage
Ø Flatten out the organization to shareimportant data such as purchase, sales,and product compositions
Ø Implement the PDCA cycle in a timely
and speedy manner to improvebusiness performance(1) Thorough use of store sales data

341
FY2016

Financial Results for Year Ended March 31, 2021

FY2016FY2017FY2018FY2019FY2020

HanedaAirport

81,73588,532

85,487

81,707

19,713

NaritaAirport

37,24938,962

41,23839,5413,050

Ø Product optimization ⇒ Improvecustomer satisfaction
Ø Purchase optimization ⇒ Reduce losses
Ø Personnel optimization ⇒ Improve(assignment and shifts) productivity(2) Rationalization efforts⇒ Close some stores(78 stores operating across 27 airports)

Source: Ministry of Land, Infrastructure, Transport and Tourism;
Airport Management Status Survey-23-

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19 ”JAL DUTYFREE” Duty-Free Stores: 5-Year Trend

Financial Results for Year Ended March 31, 2021

Net sales

9,167

740

Operating profit/loss
12,847

11,088(Million yen)

Considerable time needed forrecovery of global air passenger
demand10,843

According to a July 2020 report by theInternational Air Transportation
Association (IATA), global air
passenger demand is expected toreturn to 2019 levels in 2024

1,412

1,073

854
305

FY2016FY2017FY2018FY2019FY2020△766
Number of inbound tourists(Thousand people)
Inbound

FY2016FY2017FY2018FY2019FY202024,82329,772

31,626

27,768242(1) Ongoing cost reduction efforts① Full-time secondments② Relocation of personnel toBLUE SKY after COVID-19(2) Inbound tourism from East
Asia (the main customer base)① Expected to recover earlier than
the global inbound tourism
marketSource: Japan National Tourism Organization (JNTO);
Japan Tourism Statistics-24-

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20 Non-Aviation and Airport Business Domains

Financial Results for Year Ended March 31, 2021

Driving initiatives in non-aviation and airport business domains to reduce concentration
risk and achieve growth strategy
Regional Revitalization and Agribusiness Industry Projects
Ø Made policy decision to focus on the food business where the JALUX Group has built up significant
management resources over many yearsØ Through partner strategies with local governments and leading retail businesses, the Group is
engaged from many perspectives in businesses that are directly linked to sustainability andsustainable development of local economies through foodØ Growth strategy = (Product lineup) × (Retail store lineup)
1. Expansion of product lineup  Partner strategy with local governments(E.g., Comprehensive partnership agreement with “Food Valley Tokachi” inObihiro City, Hokkaido)
2. Expansion of retail store lineup  Partner strategy with retail businesses(E.g., Collaboration and cooperation with National Supermarket Association ofJapan)

Enhanced retail e-commerce businesses through digital transformation (DX)Ø Actively adopting digital technologies and improving the sophistication of understanding andanalyzing consumer trends through e-commerce sites, including the “JAL Shopping” mail-orderbusiness and JAL Hometown Tax service “JAL FURUSATO NOZEI” enabling diversion of taxes toselected hometowns, with the aim of increasing value-added for customers and rapidly growing thesize of businesses-25-

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21 Forecasts for the Fiscal Year Ending March 31, 2022

Financial Results for Year Ended March 31, 2021

Premise for the business forecasts
Ø We assume that the severe business environment will remain unchanged as the spread of the COVID-19 continues
Ø Regarding vaccination, which is the key to ending COVID-19, the first thing to note is that securing the quantity of vaccine isprogressing. Second, we assume that the progress of vaccination will move from confusion to expediting and that there will
be a recovery trend toward the end of the fiscal yearØ Passengers on domestic flights will begin to recover from Q2 onward, while the trend of international passenger traffic ishighly uncertain(Published figures)Consolidated Earnings Forecasts（Million yen）

March 2021

March 2022 (E)Year over Year

Year over Year(％)

110,000（Rf）+29,654136.9％Net sales

80,346

Operating profit/loss△2,915300（Rf）+3,215-

Ordinary profit/loss△2,426

200

2,626

-

Ordinary profit/loss△2,366

100

2,466

-

さ

Profit/loss
attributable to owners ofparent [EPS]（yen）

7.91△187.16195.07-Since the beginning of the fiscal year ended March 31, 2022, "Accounting Standard for Revenue Recognition" (ASBJ* Statement No. 29, March 31, 2020) and“Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No.30, March 26, 2021) have been adopted. Ordinary profit, profit
attributable to owners of parent, and earnings per share are expected based on this standard. *The Accounting Standards Board of Japan.

-26-

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22 Forecasts for FY2021：Net Sales by Segment

Financial Results for Year Ended March 31, 2021

（Million yen）

Year over Year

Year overYear(％)

43,000+14,360

150.1%

13,97914,000+21100.2%

Retail20,29633,000+12,704

162.6%

Food & Beverage

17,85721,000+3,143117.6%

Eliminations△427△1,000

△573

Total

80,346

110,000+29,654

Net Sales by Segment

March 2021

March 2022

Aviation & Airport

28,640Life service

136.9%

Note: Sales including inter-segment transaction

Ø Aviation&AirportØ Life service
Ø RetailØ Food&Beverage: Expect recovery in the maintenance business of aircraft engine: Expect relatively unchanged year over year
: Expect recovery in the domestic airport store business with increasing
domestic passenger: Expect recovery as easing restrictions on movement and contact.
Driving initiatives in non-aviation and airport business-27-

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23 Forecasts for FY2021：Aviation & Airport

Financial Results for Year Ended March 31, 2021

（Million yen）

Aviation & Airport

Year over Year

Year overYear(％)

43,000+14,360

150.1%

205

900

+695

439.0%

△618

100

+718

－

March 2021

March 2022

28,640Net sales ※1
Operating profit/loss△※2

Ordinary profit/loss※1 Net sales and Operating profit including inter-segment transaction※2 Operating profit/loss before allocating common expense
Remarks

43,00028,640900

Ø Expect recovery in the aircraft parts sales in themaintenance100Ø Profit increase in the absence of one-time write down ofused aircrafts in FY2020
Ø Equity in earnings of affiliates from the overseas airport
operation business is not expected to recover significantly△ 618
March 2021

March 2022

-28-

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24 Forecasts in 2022：Life Service

Financial Results for Year Ended March 31, 2021

（Million yen）

March 2021

March 2022

Net sales ※1

13,97914,000+21100.2%

Operating profit/loss ※2

1,307

1,100

△207

84.2%

902

600

△302

66.5%

Ordinary profit

Year over Year

Year overYear(％)

Life Service※1 Net sales and Operating profit including inter-segment transaction※2 Operating profit before allocating common expense

13,979Remarks

14,000Ø Expect relatively unchanged YoY in the real estate businessØ Expect flat YoY in the insurance service business

1,307

Ø Expect to Increase sales and rationalization in the road-

1,100

related machinery & materials businessØ Decrease in profit in reaction to the one-time dividend

600
March 2021

income and business generated in the previous fiscal year

March 2022

-29-

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25 Forecasts in 2022：Retail

Financial Results for Year Ended March 31, 2021

（Million yen）

Year over Year

Year overYear(％)

33,000+12,04

162.6%△2,554△500+2,054－△2,289△1,000+1,289－March 2021

March 2022

Net sales ※1

20,296

Operating profit/loss ※2
Ordinary profit/loss

Retail※1 Net sales and Operating profit including inter-segment transaction※2 Operating profit/loss before allocating common expense

Remarks

Ø The business of “JAL DUTYFREE” shops remain difficult
since passenger recovery on international flights take timeØ Expect to get out of red in the “BLUE SKY” domestic

33,000

airport store business due to the recovery in domestic

20,296

passenger trafficØ Expect a profit increase in “JAL Shopping” by developing△ 500△ 2,289△ 2,554

March 2021

products meeting the increasing demand for home
shopping Ex) JAL Lounge Curry△ 1,000

Ø Expect a profit increase due to business expansion andMarch 2022

growth of the ”JAL FURUSATO NOZEI” hometown tax
service-30-

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26 Forecasts in 2022：Food & Beverage

Financial Results for Year Ended March 31, 2021

（Million yen）

Year over Year

Year overYear(％)

21,000+3,143117.6%

△125

800

+925

－

△533

200

+733

－

March 2021

March 2022

Net sales ※1

17,857

Operating profit/loss ※2
Ordinary profit/loss

Food & Beverage※1 Net sales and Operating profit including inter-segment transaction※2 Operating profit/loss before allocating common expense

17,857

Remarks

21,000Ø Expect to increase the demand gradually from restaurants
and hotels

800

△ 533
March 2021

Ø Strengthen wholesale to supermarkets, a non-aviation andnon-airport business area. Ex)JALUX fair200

Ø Expect to discover, develop, and expand sales of local
products by promoting the Regional Revitalization andAgribusiness Industry Projects

March 2022

-31-

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Financial Results for Year Ended March 31, 2021

Sustainable growth of JALUX group-32-

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27 Basic Strategy and Sustainable Growth

Financial Results for Year Ended March 31, 2021

≪Positioning “Accelerate Innovation” and “Promote Sustainability” as two key
management strategies while targeting business recovery in the short term and sustainablegrowth in the medium to long term≫“Accelerate Innovation”
Ø Accelerate initiatives in domains derived or merged from existing businesses
Ø Actively adopt and utilize digital technologies  JAL Shopping, JAL Hometown
Tax, etc.
Ø Take on the challenges of open innovation (have already invested in food-related
venture business investment funds)
Building of an innovation system:
1. Establish an Innovation Promotion Committee to reflect the intentions of management
2. Form a company-wide Innovation Team with a focus on young members to generate a wide
range of innovation ideas  Pursue opportunities for new business investment“Promote Sustainability”
Ø Work on solving environmental and social issues, target sustainable growth for
the Group, and promote sustainability management to realize a prosperous
society<Five key material issues (materialities)>
Many interviews were held internally and externally, and key issues were analyzed,
discussed, and determined, from the perspectives of stakeholder expectations anddemands, and their impact on the Group
-33-

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28 JALUX Group Materiality (Key Sustainability Issues)

Financial Results for Year Ended March 31, 2021

The JALUX Group is committed to solving a range of environmental and social issues throughcorporate activities while realizing sustainable society and continually improving corporate value.
Incorporating sustainability perspectives into management and business strategies, it will also
drive sustainability management in order to realize a prosperous society.

-34-

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29 Materiality (Key Issues)

Financial Results for Year Ended March 31, 2021

Address global climate change and realize a recycling-oriented
society

Related SDGs

To realize carbon neutrality by 2050 and recycling-oriented society across the entire supply chain
as initiatives towards global environmental issues, we are working to collaborate withstakeholders in all business domains of the JALUX Group.

Contribute to local communities and realize a prosperous future
We aim to develop and grow together with local communities through expanding nationwide
network, delivering regional products to more consumers than ever and helping create
sustainable production systems throughout Japan.

Solve social issues through food businesses
Leveraging the strengths of the JALUX Group in developing businesses across the entire supply
chain, from raw material procurement and production to distribution and sales, we endeavor tosolve food-related social issues surrounding food safety, food loss and waste, recycling andupcycling, ethical consumption, and sustainable food supply in each phase.

Respect human rights, develop human resources, and promote
diversity and inclusion
We respect human rights in all our corporate activities. We also work to develop our diverse
human resources to enable each of them to reach their full potential and create new value.

Build foundations that earn the trust of all stakeholders
We strive to pursue transparency in corporate management and do our best to provide safe,
high-quality products and services with sincerity backed by a commitment to compliance.

-35-

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Financial Results for Year Ended March 31, 2021

Caution Regarding Forward-Looking Statements
This document contains forward-looking statements based on information available tothe company at the time of disclosure and certain assumptions that management
believes to be reasonable. JALUX makes no assurances as to the actual results and/or
other outcomes, which may
differ substantially from those expressed or implied by such forward-looking
statements
due to various factors including changes in economic conditions in key markets, both inJapan and overseas, and foreign exchange rate fluctuation.
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