Financial Results for First Quarter of
Fiscal Year Ending February 29, 2020
<Reference data>

June 28, 2019
Create and Bring to Life “New Happiness.”

1Q FY2019 Consolidated Results (IFRS)Revenue increased in all business segments including Department Store, Parco, Real Estateand Credit and FinanceBusiness profit increased due to growth of gross profit caused by revenue growth but
operating profit decreased due to increase in other expense
Consolidated performance is generally as planned and Apr forecast is kept unchanged(Millions of yen, %)Fiscal year ending
February 29, 2020

1H

1QResults

YoY
Change% change

Apr forecast

ChangeYoY% change

Gross sales

274,002

4,123

1.5

557,000

9,891

1.8

Revenue

112,482

1,409

1.3

229,000

1,794

0.8

Gross profit

52,167422

0.8

106,300

1,350

1.3

SGA

39,691242

0.6

82,3001,622

2.0

Business profit

12,476181

1.5

24,000(271)(1.1)

Other operating income827(156)(15.9)

1,100(554)(33.5)

Other operating expense

509

229

81.8

1,500(207)(12.2)

Operating profit

12,822(204)(1.6)

23,600(618)(2.6)

Profit attributable toowners of parent

7,447(895)(10.7)

13,800(2,110)(13.3)
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1Q FY2019 Segment Information (IFRS)
Department Store: Revenue increased but profit decreased due to lower margin andincreased system cost
Parco: Revenue and profit increased due to opening of Kinshicho Parco and renovationof existing stores
Real Estate: Revenue and profit increased due to strong performance of Ginza Six andtransfer of tenants around Kobe store to this segment
Other: Driven by J. Front Design & Construction (design & construction business) that
performed well with renovation of department stores, etc.
(Millions of yen, %)First quarter offiscal year ending
February 29, 2020

Business profit
Results

Operating profit

YoY
Change% change

YoYResults

Change% change

Department Store

6,404(270)(4.0)

6,130(720)(10.5)

Parco

2,817

534

23.4

3,408

658

23.9

Real Estate

1,710

145

9.2

1,686

79

4.9

Credit and Finance

781

47

6.4

795

57

7.7

Other848

115

15.7

829

104

14.3

12,476181

1.5

12,794(204)

(1.6)

Total

21Q FY2019 Segment Information (IFRS)
1Q (Mar - May) FY201 analysis of changes inconsolidated business profit / operating profit by segment(Millions of yen）
CreditandRealFinance
EstateDepartment
Store

1Q LY
results

Other Adjustment
Department
StoreParco

ParcoCredit
andReal Finance Other Adjustment
EstateBusiness profit

Operating profit

Up ¥181 mn (1.5%) YoY

Down ¥204 mn (1.6%) YoY

1Q TY
results

1Q LY
results

1Q TY
results3

1Q FY2019 Daimaru Matsuzakaya Department Stores (IFRS)
Department Store sales increased in Mar, Apr and May, driven by continued
robust spending by inbound tourists
Real Estate revenue increased due to strong performance of Ginza Six andUeno Frontier Tower and transfer of tenants around Kobe store
Business profit decreased due to lower margin and increased system cost ofDepartment Store but Real Estate Business increased profit(Millions of yen, %)Department Store BusinessFirst quarter offiscal year ending
February 29, 2020

Results

Gross sales

YoY

Total
Daimaru Matsuzakaya Department Stores

Real Estate BusinessResults

YoY
Change% change

4,456

265

6.3

0.4

4,421

278(275)

(0.8)

2,354

28,594(1)(0.0)

Business profit

5,838(275)

Other operating income92

Other operating expense

Operating profit

Change% change

158,479

321

0.2

Revenue

59,205239

Gross profit

34,433

SGAResults

YoY
Change% change

162,875

585

0.4

6.7

63,566

516

0.8

156

7.1

36,727

(15)

(0.0)

644

12

1.8

29,179

116

0.4

(4.5)

1,710

145

9.2

7,548

(130)

(1.7)

(197)

(68.2)

1(57)(96.6)

94(253)(73.0)

323

200

162.6

269

50.4

349

209

148.6

5,606(672)(10.7)

1,686

79

4.9

7,292(593)

(7.5)
4

1Q FY2019 Daimaru Matsuzakaya Department Stores SGA
In spite of reduction of personnel cost and significant decrease in rent due to applicationof IFRS 16, cost increased due to increased system cost for payment processing in frontof customers and increased promotion cost for strengthening CRM
1Q (Mar - May) of
fiscal year ending
February 29, 2020

Results

ChangeChange(%)

Main causes of changes(Millions of yen)

(Millions of yen)

Personnel

6,220

(137)

(2.1)

Attrition, etc.

Advertising

2,495

226

9.9

Strengthening of new customer strategy tool,
strengthening of cultural events, etc.

Packing anddelivery

41961

17.1

Rise in logistics cost

Rent

119

(4,045)(97.1)

Mainly effect of IFRS 16

Depreciation

5,508

3,393

160.4

Mainly effect of IFRS 16

Operation

3,168798

33.7

Other11,246(182)

(1.6)

Total

29,179116

0.4

Increased system cost for payment processing
in front of customers

5

1Q FY2019 Sales to Inbound Tourists
Tax-free sales in 1Q (Mar - May): ¥17.7 bn, up 21.2% YoY, keeping a high level
Sales share 11.2%, Q’s first double digit. Number of customers up 12.1%.
Average spend per customer up 8.1%
Sales of consumables, mainly cosmetics, up 30%, share 56.9% (up 4.9 points YoY)
<Daimaru Matsuzakaya Department Stores tax-free sales and number of customers>
Sales (millions of yen)

Number of customers (persons)

6*Gross sales basis

Year / Month<Reference> Application of new accounting standards (IFRS 16)

The Group recognized right-of-use assets and lease liabilities at the date of initial application
for leases that it previously classified as operating leases under IAS 17. The lease liabilities
are measured at the present value of outstanding lease payments discounted using thelessee’s incremental borrowing rate at the date of initial application. The right-of-use assets
are measured retrospectively as if IFRS 16 had been applied since the commencement dateof the lease contract.
As a result, in the consolidated statement of financial position on the initial application date,assets and liabilities increased by 210,600 million yen and 225,200 million yen, respectively,
and equity decreased by 14,500 million yen. In the consolidated statement of profit or loss forfiscal year 2019, operating profit increased by approximately 4,600 million yen compared toformer standards before application of IFRS 16 , but its impact on profit is expected to beimmaterial. Compared to former standards, cash flows from operating activities are expected
to increase by approximately 28,000 million yen and cash flows from financing activities areexpected to decrease by the same amount in fiscal year 2019.

7

Websitehttps://www.j-front-retailing.com

Create and Bring to Life
“New Happiness.”

Forward-looking statements in this document represent our assumptions based on information currently available to us and inherently involve potentialrisks, uncertainties and other factors. Therefore, actual results may differ materially from the results anticipated herein due to changes in various factors.