Financial Results for the Second Quarterof the Fiscal Year Ending March 31, 2021
October 30, 2020

JALUX Inc.（TSE #2729）

IndexConsolidated Financial Summary… 3Results by Operational Segment… 9Forecasts for the Fiscal Year Ending March 31, 2021

… 16

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Second Quarter of the Fiscal Year Ending March 31, 2021

Consolidated Financial Summary

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Second Quarter of the Fiscal Year Ending March 31, 2021

1. Consolidated P/L (Summary)（Million yen）
Consolidated P/L (Summary)

Apr.-Sep. 2019

Apr.-Sep. 2020

YoYNet sales

74,01739,159▲34,857

52.9%

Gross profit

13,351

5,582▲7,768

41.8%

SG&A expenses

10,981

7,369▲3,61167.1%

Operating profit/loss

2,370▲1,786▲4,157－

Non-op. profit/loss

432165▲26638.3%

Ordinary profit/loss

2,802▲1,621▲4,423－Extraordinary profit/loss▲58▲569▲510－

Profit/Loss attributable to owners of parent

1,710▲1,879▲3,590－Gross profit to net sales ratio

18.0

14.3

▲3.8

Ordinary profit to net sales ratio

3.8▲4.1－YoY（%）<Net Sales> Decrease in: sales of airport shops and duty-free shops, wholesale to duty-free shops, sales of souvenir sweets and lunch boxes,
wholesale of marine products, agricultural products and wine, sales of aircraft-engine parts<SG&A expenses> Decrease in: percentage rent, labor cost, sales commission<Non-op. profit/losses> Non-operating income: dividend income, subsidies; Non-operating expense: loss of equity method investments<Extraordinary profit/losses> COVID-19 related losses: fixed costs of airport shops during temporary closure reported as an extraordinary loss

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Second Quarter of the Fiscal Year Ending March 31, 2021

2. Breakdown of SG&A expenses（Million yen）
Breakdown of SG&A Expenses

Apr.-Sep. 2019

Apr.-Sep. 2020

13,351

5,582▲7,76841.8%

Personnel expenses

3,988

3,003▲985

75.3%

Rent expenses

2,340926▲1,41339.6%

External service fee

815

701

▲113

86.0%

Depreciation

304232▲7276.2%

Packing and transportation expenses

859700

▲158

81.5%

2,674

1,806▲867

67.6%

SG&A expenses

10,981

7,369▲3,611

67.1%

Operating profit

2,370▲1,786▲4,157－Gross profit

Other expenses

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YoY

YoY（%）

Second Quarter of the Fiscal Year Ending March 31, 2021

3. Consolidated B/S（Summary）（Million yen）
Consolidated B/S (Summary)March 31 2020

Sep. 30 2020

YoY

YoY（%）

Current assets

48,76537,351▲11,414

76.6%

Cash and deposits

6,175

7,601

+1,425123.1%

Non-current assets

12,07911,756

▲322

97.3%

Property plant and equipment

5,266

5,103

▲163

96.9%

673

685

+11101.7%

6,138

5,968

▲170

97.2%

60,844

49,107▲11,736

80.7%

Current liabilities

31,704

19,830▲11,874

62.5%

Non-current liabilities

1,093

4,121

+3,027376.8%Net assets

28,04625,156▲2,88989.7%

60,844

49,107▲11,73680.7%

Intangible assets
Investments and other assets
Total assets

Total liabilities and net assets<Assets> Increase: Cash and deposits / Decrease: Account receivables, Inventories<Liabilities> Increase: Long-term loans for securing liquidityDecrease: Account payables, Accrued expenses, Short-term loans payable, Commercial paper<Net assets> Loss attributable to owners of parent, Dividends payment
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Second Quarter of the Fiscal Year Ending March 31, 2021

4. Financial Position（Million yen）
Financial Position

March 31 2020

Sep. 30 2020

YoY

YoY（%）

Total assets

60,844

49,107▲11,736

80.7%

Shareholders’ equity

26,337

23,817▲2,519

90.4%

43.3

48.5

+5.2

14,32912,045▲2,284

0.54

0.50

▲0.04

Shareholders’ equity ratio (%)

Interest bearing debt

Debt/Equity ratio (times)

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-7-84.1%

Second Quarter of the Fiscal Year Ending March 31, 2021

5. Consolidated Cash Flow（Summary）（Million yen）
Consolidated Cash Flow

Apr.-Sep. 2019

Apr.-Sep. 2020

YoY

Cash Flow from Operating Activities

6,661

4,731

▲1,930Cash Flow from Investing Activities▲1,670▲489+1,181

Cash Flow from Financing Activities▲4,142▲2,811+1,331

4,990

4,242

▲748

Free Cash Flow

• C/F from Operating Activities:(-) Pretax net loss for the six-month period, Payments of trade payables and accrued expenses(+) Trade receivables collection• C/F from Investing Activities:(-) Purchase of assets: Renovation of airport shops, System investment• C/F from Financing Activities:(-) Dividends payment, Repayment of short-term loans, Redemption of the commercial paper(+) Increase in long-term loans

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Second Quarter of the Fiscal Year Ending March 31, 2021

Results by Operational Segment

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Second Quarter of the Fiscal Year Ending March 31, 2021

6. Net Sales by Segment（Million yen）

Note: Sales including inter-segment transaction
Net Sales by Segment

Apr.-Sep. 2019

Apr.-Sep. 2020

Aviation & Airport

24,207

15,395▲8,811

63.6%

Life Service

6,557

6,987+430

106.6%

Retail30,415

8,812▲21,603

29.0%

Food & Beverage

13,6108,114▲5,495

59.6%

Eliminations

▲772

▲151

Total

74,01739,159▲34,857

52.9%

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YoY

YoY（%）

Second Quarter of the Fiscal Year Ending March 31, 2021

7. Sales Composition Ratio by Segment（Million yen）
*Sales including inter-segment transaction

74,017
24,207
6,557
30,41532%
9%39,15941%

15,395
6,987
8,812
8,114

18%
13,610Apr.-Sep. 2019

39%
18%
22%
21%

Apr.-Sep. 2020

■Aviation & Airport ■ Life Service ■ Retail■ Food & Beverage• Aviation & Airport : Maintenance demand decreased due to decline in global air traffic, delay in aircraft parts production: Steady insurance business, Demand for hygiene products• Life Service: Impacts on airport shops and duty-free shops due to the significant decline of air-passengers and• Retailinbound travelers• Food & Beverage : Significant decrease in demand of hotels, restaurants, and transport-related retailers

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Second Quarter of the Fiscal Year Ending March 31, 2021

8. Aviation & Airport（Million yen）
Aviation & Airport

Apr.-Sep. 2019

Apr.-Sep. 2020

24,207

15,395▲8,811

63.6%

Operating profit/loss*2705101

▲604

14.4%

Ordinary profit/loss

730

▲329

▲1,060－Net sales*1*1 Net sales and Operating profit including inter-segment transaction*2 Operating profit/loss before allocating common expense

24,207730705

YoY

YoY（%）

Remarks

 Decreased aircraft engine parts sales for heavy industry due toglobal decline of maintenance demand, delay in aircraft parts

15,395production
 Inventory write-down in JALUX AMERICAS, Inc.

101

 Overseas airport operation business in Lao PDR and Myanmar:
decreased equity income of affiliated companies due to decline▲ 329
Apr.-Sep. 2019

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of flight

Apr.-Sep. 2020-12-Second Quarter of the Fiscal Year Ending March 31, 2021

9. Life Service（Million yen）
Life ServiceApr.-Sep. 2019

Apr.-Sep. 2020

Net sales*1

6,5576,987+430

106.6%

Operating profit/loss*2575

633+57110.1%

Ordinary profit/loss

325445+119

136.7%*1 Net sales and Operating profit including inter-segment transaction*2 Operating profit/loss before allocating common expense

6,557

575

Apr.-Sep. 2019

Apr.-Sep. 2020

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·Real Estate :Decreased facility management due to decline ofairport users
Temporary closure of elderly day-care services·Insurance :Remaining steady; insurance sales to overseas
travelers decreased while group insurance
increased·Machinery& Materials :Import and sales of hygiene products on growing

633325·-13-

YoY（%）

Remarks

6,987445

YoY

demand in Japan

Non-op. profit : Increase in dividend income

Second Quarter of the Fiscal Year Ending March 31, 2021

10. Retail（Million yen）
Apr.-Sep. 2019

Apr.-Sep. 2020

Net sales*1

30,415

8,812▲21,603

29.0%

Operating profit/loss*2

1,491▲1,458▲2,949－Ordinary profit/loss

1,301▲1,409▲2,711－Retail*1 Net sales and Operating profit including inter-segment transaction*2 Operating profit/loss before allocating common expense

YoYYoY（%）

Remarks·30,415·「BLUE SKY｣

Haneda airport : Reopened except some stores
Narita airport : Continued closure of all the 10 stores

Duty-free shops:

Narita & Haneda airport : Almost all stores still closed

Airport shops:「JAL DUTYFREE｣

1,491
1,301
Apr.-Sep. 2019

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8,812

·

Duty-free wholesale:Almost all clients still closed·Mail Order:

Online sales, mainly in gourmet products, going well due tothe demand of Stay-at-home consumption▲ 1,458·

Food gifts:

Increase in online sales of department stores due toincreasing demand for private consumption as well as
Mother’s day and summer gift

▲ 1,409

Apr.-Sep. 2020-14-·

Non-op.profit:·

Extraordinary losses: Fixed costs of airport shops during temporary closure

Subsidies for temporary closure of airport shops

Second Quarter of the Fiscal Year Ending March 31, 2021

11. Food & Beverage（Million yen）
Food & Beverage

Apr.-Sep. 2019

Apr.-Sep. 2020

13,6108,114▲5,495

59.6%

Operating profit/loss*2558▲187▲746－

Ordinary profit/loss

312▲402▲714－Net sales*1*1 Net sales and Operating profit including inter-segment transaction*2 Operating profit/loss before allocating common expense

Marine :Decreased sales of fish processed to be eaten raw and otherproducts

processed marine products
Decreased sales of Thonglor Nihon Ichiba in Thailand

13,610·8,114
588·

Agricultural :Sales of red peppers to mass retailers remaining steadyproducts

Decreased sales of okra due to high transportation cost

Wine :

Decreased wholesale to hotels and restaurants
Increased sales to new clients such as mass retailers▲ 187

Apr.-Sep. 2019

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YoY（%）

Remarks·312

YoY·▲ 402

Processed:

Decreased in-flight meal sales

foods/ Food

Decreased sales of souvenir sweets and lunch boxes formanufacturertransport-related retailers
Increased sales to new clients such as mass retailers

Apr.-Sep. 2020

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Second Quarter of the Fiscal Year Ending March 31, 2021

Forecasts for Fiscal YearEnding March 31, 2021

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Second Quarter of the Fiscal Year Ending March 31, 2021

12. Forecasts for the Fiscal Year Ending March 31, 2021
（Million yen）

（Published figures）
Previous announcement

Revised forecast

Increase/decrease

Rate of change

Net sales

110,00085,000▲25,000▲22.7%

Operating profit/loss▲2,200▲3,000▲800－

Ordinary profit/loss▲1,900▲2,500▲600－

Profit/loss
attributable to owners of parent▲1,200▲2,100▲900－

Earnings per share（yen）▲94.91▲166.09▲71.18－

Revised consolidated earnings forecast

JALUX has announced the revision of its forecasts for the fiscal year ending March 31, 2021 above. Global economic conditions
are still uncertain as COVID-19 pandemic has not restored and seems to be long-standing. It is assumed that negative impactsof COVID-19 on aviation and airport business domains will continue for full-year.

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Second Quarter of the Fiscal Year Ending March 31, 2021

13. Performance trends（Million yen）
Net Sales

Ordinary profit

185,726
141,50289,082

1,656

85,937

1,247

99,837

1,766

143,217

153,404

144,688

112,71785,000

2,684

4,222

3,937

5,166

5,094

4,738

▲ 2,500
March 2012 March 2013 March 2014 March 2015 March 2016 March 2017 March 2018 March 2019 March 2020

Previous medium-term management plan

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March 2021(E)Current medium-term management plan-18-

Second Quarter of the Fiscal Year Ending 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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Second Quarter of the Fiscal Year Ending March 31, 2021