FY2014-2016Medium-term Business Plan■ Financial Targets (FY 2016)Consolidated operating proﬁt■ Financial Target Graph¥50 billionConsolidated operating margin4.2％Consolidated operating proﬁt (OP) and ROEROE 5.8%

㻔㻹㼕㼘㼘㼕㼛㼚㼟㻌㼛㼒㻌㼥㼑㼚㻕

60,000ROE5.8％ROA4.8％

6.050,000Operating cash ﬂows¥130 billion or more䠄㻑䠅

5.0*

40,0004.0OP ¥50 bn(total for FY2014-2016)

30,0003.0■ Capital Investment and Growth Investment (total for FY2014-2016)*¥49.5 billion

20,0002.0Parco Business¥37 billion

10,0001.0Other Businesses¥3.5 billion0Department Store BusinessM&A¥20 billion〔 Total 〕¥110 billion0FY
FYFYFYFYFY2009 2010 2011 2012 2013 2014FY2016(forecast)(forecast)Consolidated operating proﬁtROE*ROE for FY 2011 and FY 2013 is shown inreal terms excluding special factors.

■ Positioning of the FY2014-2016 Medium-term Business PlanPhase for constructing foundations (FY2014‒2016)14Phase of dramatic growth (FY2017-)

Drastically enhancecompetitiveness andproﬁtability as amulti-retailer●Establish a new department store model, and otherwise transform the business model with respect to existing businessesConstruct a businessmodel for growth alongwith regions●Develop real estates in the vicinity of store locations(urban dominant strategy)●Pursue more extensive Group business opportunities●Enhance the Tokyo metropolitan area business through theGinza 6-chome District 10 Redevelopment Project andUeno Store South Wing Rebuilding ProjectPromote omni-channelretailing that leveragesthe strengths ofreal stores●Expand business partner networks,product range and target areas withrespect to Click & Collect and Endless
Aisle services●Build up order fulﬁllment capabilities●Provide the same products, services andinformation as those available throughphysical stores, while creatingan environment to enable access to andfrom customers anytime, anywhere●Further improve management eﬃciency (organizational and workforce structure reform, cost optimization)●Enhance competitiveness by upgrading core technologies●Strengthen networks with local communities●Engage in Group-wide eﬀorts to enhance the appeal ofurban areas with our stores at the core, and achieve growthin line with the development of local communities■ Image of Medium-term Growth◇ Drastically enhance competitiveness and proﬁtability as a multi-retailer■Department Store Business ¥28.5 billion (¥5.5 billion higher than FY2013)¥28.5 billion・Expansion of the upscale market centered on sales tocustomers・Rebuilding of Original Merchandising Business and development of new businesses・Reinforcing of capabilities to serve tourists from overseas■Parco Business ¥13.3 billion (¥1.3 billion higher than FY2013)・Opening of the new building of Fukuoka Parco (fall 2014) and ﬂoor space expansion of the main building (spring 2015)

Daimaru TokyoMatsuzakaya Nagoya・Development of Sendai New Building (tentative name)(spring 2016)¥13.3 billion¥8.2 billionFY 2016 (Target) Consolidated operating proﬁt ¥50 billion・Signiﬁcantly higher proﬁts at four priority stores (Daimaru Tokyo, Kobe and Sapporo and Matsuzakaya Nagoya)・Swift development of Zero Gate business including Nagoya (fall 2014) and Sapporo (spring 2016) projects・Annual renovation of roughly 15% of overall ﬂoor space tailored to shifting and diversifying consumer needs■Other Businesses ¥8.2 billion (¥1.4 billion higher than FY2013)・Credit Business ¥4 billion (¥0.8 billion higher than FY2013)・Staﬃng Service and Commissioned Sales Operations Business ¥1.3 billion (¥0.4 billion higher than FY2013), etc.

Artist's impression of New Building of Artist's impression ofFukuoka Parco (tentative name)Nagoya Zero Gate (tentative name)◇ Forge a business model for growth along with regions (urban dominant strategy)■Ginza 6-chome District 10 Redevelopment■Rebuilding of the South Wing of Matsuzakaya Ueno Store(scheduled to open in November 2016)■Shinsaibashi District Redevelopment(scheduled to open in fall 2017)White Avenue(Daimaru COM Development Inc．）DaimaruShinsaibashi storeMidosujiDotonboriZERO GATESouth wingMain Northbuilding wingStores operatedby DaimaruShinsaibashi storeEast annex toDaimaruShinsaibashi store

ShinsaibashiZERO GATENagahori underground mall(Daimaru COM Development Inc．）Image of external view *Subject to changes.

We are committed to creating an unparalleledcommercial facility with the right concept for Ginzawhich has long attracted a diverse range of visitorsfrom throughout Japan and the entire world and wewill work with other commercial ﬂoor owners tooperate all commercial ﬂoors in an integrated manner.

The south wing will be rebuilt as a high-rise complexfeaturing a Parco store, a cinema complex and sophisticatedoﬃce facilities such that are not currently available in theOkachimachi district, Ueno. This project will breathe new lifeinto the Okachimachi district, which is undergoing manyredevelopments, and contribute to the vitality of the area.

To make us signiﬁcantly more competitive in the Osaka area wherean over-abundance of large commercial facilities increasescompetition, we will move forward with the Shinsaibashi districtredevelopment project which is centered on Daimaru Shinsaibashistore (the main building and north and south wings), and also involvesthe use of real estates and commercial facilities in the district.

◇ Promote omni-channel retailingStrengths ofreal storesVirtualtouch points
ＥＣOFFLINEBlogSeamless accessto and from customers

ON
OLLINE

ＳＮＳEmailmaWith the aim of establishing predominance over the competition inthe mid- to long-term, we will raise the level of customer support ofthe Group centered on retail stores in key urban areas, oﬀerproducts, services and information similarly online and in physicalstores, thus realizing ﬁne-tuned response to our customers byproviding seamless access to and from them anytime, anywhere.

Dramatic growth in 2017 and after15一Group CompaniesDep art ment S tore BusinessDa i maru Matsuzakaya Department Stores Co. Ltd.
•Location: 18-11, Kiba 2-chome, Koto-ku, Tokyo 135-0042•Capital: ¥10,000 million •Investment ratio: 100%http://www.daimaru-matsuzakaya.comDa imaru Osaka Sh i nsa i bash i Store•Location: 7-1, Shinsaibashisuji 1-chome, Chuo-ku, Osaka 542-8501•Phone: +81-6-6271-1231 •Opened (Present location): November 1726Da imaru Osaka Umeda Store•Location: 1-1, Umeda 3-chome, Kita-ku, Osaka 530-8202•Phone: +81-6-6343-1231 •Opened: April 1983Da imaru Tokyo Store•Location: 9-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-6701•Phone: +81-3-3212-8011 •Opened: October 1954Da imaru Kyoto Store•Location: 79, Shijo Takakura, Shimogyo-ku, Kyoto 600-8511•Phone: +81-75-211-8111 •Opened (Present location): October 1912Da imaru Kobe Store•Location: 40, Akashimachi, Chuo-ku, Kobe, H yogo 650-0037•Phone: +81-78-331-8121 •Opened (Present location): April 1927Da imaru Urawa Parco Store•Loca tion: 1st Basement Fl., Urawa Parco, 11-1, H igashitakasago-cho,Urawa-ku, Saitama 330-0055•Phone: +81-48-615-6000 •Opened: October 2007Da imaru Yamash i na Store•Location: 91, Takehana Takenokaido-cho, Yamashina-ku, Kyoto 607-8080•Phone: +81-75-255-7365 •Opened: October 1998Da imaru Suma Store•Location: 2-4, Nakaochiai 2-chome, Suma-ku, Kobe, Hyogo 654-0154•Phone: +81-78-791-3111 •Opened: March 1980Da imaru Ash iya Store•Loca tion: 1-31, Funato-cho, Ashiya, H yog o 659-0093•Phone: +81-797-34-2111 •Opened: October 1980Matsuzakaya Sh izuoka Store•Loca tion: 10-2, Miyuki-cho, Aoi-ku, Shizuoka 420-8560•Phone: +81-54-254-1111 •Opened: November 1932Da imaru Sapporo Store•Location: 7, Nishi 4-chome, Kita 5-jo, Chuo-ku, Sapporo, Hokkaido 060-0005 Matsuzakaya Takatsuk i Store•Loca tion: 2-1, Konyamachi, Taka tsuki, Osaka 569-8522•Phone: +81-11-828-1111 •Opened: March 2003•Phone: +81-72-682-1111 •Opened: November 1979Matsuzakaya Nagoya StoreMatsuzakaya Toyota Store•Location: 16-1, Sakae 3-chome, Naka-ku, Nago ya, Aichi 460-8430•Loca tion: 85-1, Nishimachi 6-chome, Toyota, Aichi 471-8560•Phone: +81-52-251-1111 •Opened: March 1910•Phone: +81-565-37-1111 •Opened: October 2001Matsuzakaya Ueno Store•Location: 29-5, Ueno 3-chome, Taito-ku, Tokyo 110-8503•Phone: +81-3-3832-1111 •Opened: April 1768The Hakata Da i maru, Inc.
•Location: 4-1, Tenjin 1-chome, Chuo-ku, Fukuoka 810-8717•Phone: +81-92-712-8181 •Capital: ¥3,037 million •Investment ratio: 69.9%http://www.daimaru.eo.jp/fukuoka/index.htmlKoch i Da i maru Co., Ltd.
•Loca tion: 6-1, Obiyamachi 1-chome, Kochi 780-8566•Phone: +81-88-822-5111 •Capital: ¥300 m illion •Investment ratio: 100%http://www.kochi-daimaru.eo.jp/The Sh i monosek i Da i maru, Inc.
•Location: 4-10, Takezaki-cho 4-chome, Shimonoseki, Yamaguchi 750-8503•Phone: +81-83-232-1111 •Capital: ¥480 million •Investment ratio: 100%http://shimonoseki.daimaru.co.jp/Tottor i Da i maru Co., Ltd.
•Loca tion: 151, lmamachi 2-chome, Tottori 680-8601•Phone: +81-857-25-2111 •Ca pital: ¥180 m illion •Invest men t ratio: 14%http://www.daimaru-tottori. eo.jp/Parco BusinessParco Space Systems Co., Ltd. (Space engineering and management business)Parco Co., Ltd. (Shopping com p lex business)•Location: Sh ibuya First Place Bldg., 8-16, Shinsen-cho, Shibuya-ku, Tok yo 150-0045•Phone: +81-3-3477-5710 •Capital: ¥34,367 million •Investment ratio: 64.9%•Location: Shibuya Fi『st Place Bldg., 8-16, Shinsen-cho, Shibuya-ku, Tokyo 150-0045•Phone: +81-3-5459-6811 •Capital: ¥490 m illion •Investment ratio: 64.9%Parco {Si ngapore) Pte Ltd (Shoppi ng com p lex business)•Location: 9 Raffles Boulevard #03-02 Millenia Walk, Singapore 039596•Phone: +65-6595-9100 •Capital: S$15 million •Investment ratio: 64.9%Parco-City Co., Ltd. (I nternet-related busi ness)•Location: Shibuya First Place Bldg., 8-16, Shinsen-cho, Shibuya-ku, Tokyo 150-0045•Phone: +81-3-3477-8910 •Ca pital: ¥10 m illion •Investmen t ratio: 64.9%Neuve A Co., Ltd. (Retai l business)● Location: Sh ibuya Firs t Place Bldg., 8-16, Sh insen-cho, Sh ibuya-ku, Tok yo 150-0045•Phone: +81-3-5428-2600 •Capital: ¥490 million •Investment ratio: 64.9%Locations of Parco StoresSapporo ZERO GATE (tentative name)(Scheduled to open in spring 2016)

Sapporo PARCOShinsaibashi ZERO GATEDotonbori ZERO GATEMatsumoto PARCOSendai PARCONagoya ZERO GATE (tentative name)(Scheduled to open in fall 2014)Hiroshima ZERO GATE

Fukuoka PARCO
Shizuoka PARCONagoya PARCOUtsunomiya PARCOOtsu PARCOHiroshima PARCOShintokorozawa PARCOUrawa PARCOKumamoto PARCOIkebukuro PARCOHibarigaoka PARCOTsudanuma PARCOKichijoji PARCOChofu PARCO

Chiba PARCO

Pedi SHIODOME
Shibuya PARCOSibuya ZERO GATEUrban Complexes68Community ComplexesZERO GATE Business

Other StoreUrban Complexes

Sapporo PARCO

Sendai PARCOShizuoka PARCO3-3, Minami 1-jo Nishi, Chuo-ku, Sapporo, HokkaidoB2F-8FOpened: August 24, 1975www.parco-sapporo.com1-2-3, Chuo, Aoba-ku, Sendai, MiyagiB1F-9FOpened: August 23, 2008www.parco-sendai.com6-7, Koyamachi, Aoi-ku, ShizuokaB1F-8FOpened: March 15, 2007www.parco-shizuoka.com

Shibuya PARCOIkebukuro PARCO15-1, Udagawa-cho, Shibuya-ku, Tokyo1-28-2, Minami-Ikebukuro, Toshima-ku, TokyoMain Building: B2F-8FOpened: November 23, 1969

PART1: B1F-9FOpened: June 14, 1973
PART3: B1F-8FOpened: September 10, 1981

Nagoya PARCOHiroshima PARCO

Fukuoka PARCO3-29-1, Sakae, Naka-ku, Nagoya, AichiWest Building: B1F-11FEast Building: B1F-8FOpened: June 29, 198910-1, Hondori, Naka-ku, HiroshimaMain Building: B1F-10FOpened: April 9, 1994New Building: B1F-9FOpened: September 21, 2001www.parco-hiroshima.com2-11-1, Tenjin, Chuo-ku, FukuokaB1F-8FOpened: March 19, 2010www.parco-fukuoka.comCLUB QUATTRO: 4F-5FOpened: June 28, 1988South Building: B1F-10FOpened: November 6, 1998www.parco-nagoya.comP PARCO: B2F-8FOpened: March 10, 1994www.parco-ikebukuro.comZERO GATE: B1F-4FOpened: April 27, 2002From April 16, 2011, it changed its businessformat to a ZERO GATE business.
www.parco-shibuya.comCommunity ComplexesUtsunomiya PARCO

Urawa PARCO

Chiba PARCOTsudanuma PARCOShintokorozawa PARCOHibarigaoka PARCO3-1-1, Baba-dori, Utsunomiya, TochigiB1F-10FOpened: March 20, 1997www.parco-utsunomiya.com11-1, Higashitakasago-cho, Urawa-ku, SaitamaB1F-7FOpened: October 10, 2007www.parco-urawa.com2-2-2, Chuo, Chuo-ku, ChibaB1F-8FOpened: December 1, 1976www.parco-chiba.com2-18-1, Maebaranishi, Funabashi, ChibaA Building: B1F-6FB Building: B1F-6FOpened: July 1, 1977www.parco-tsudanuma.com1-2-1, Midori-cho, Tokorozawa, Saitama
PARCO: B1F-5F
Let s: B1F-4FOpened: June 23,1983www.parco-shintokorozawa.com1-1-1, Hibarigaoka, Nishitokyo, TokyoB1F-5FOpened: October 8, 1993www.parco-hibarigaoka.comKichijoji PARCO

Chofu PARCOMatsumoto PARCOOtsu PARCOKumamoto PARCO1-5-1, Kichijojihoncho, Musashino, TokyoB2F-8FOpened: September 21, 1980www.parco-kichijoji.com1-38-1, Kojima-cho, Chofu, TokyoB1F-10FOpened: May 25, 1989www.parco-chofu.com1-10-30, Chuo, Matsumoto, NaganoB1F-6FOpened: August 23, 1984www.parco-matsumoto.com14-30, Uchidehama, Otsu, Shiga1F-8FOpened: November 2, 1996www.parco-otsu.com5-1, Tetorihoncho, Chuo-ku, KumamotoB1F-9FOpened: May 2, 1986www.parco-kumamoto.comZERO GATE business www.parco.co.jp/group/zerogate/Shibuya ZERO GATE15-1, Udagawa-cho, Shibuya-ku, TokyoB1F-4FOpened: April 16, 2011

Other StoreShinsaibashi ZERO GATEDotonbori ZERO GATEHiroshima ZERO GATE1-9-1, Shinsaibashisuji, Chuo-ku, OsakaB2F-4FOpened: April 13, 20131-8-22, Dotonbori, Chuo-ku, Osaka1F-3FOpened: April 20, 20132-7, Shintenchi, Naka-ku, HiroshimaB1F-14F(Floors that are leased to PARCO: 1F-3F)Opened: October 10, 2013Nagoya ZERO GATE (tentative name)Sapporo ZERO GATE (tentative name)3-28, Sakae, Nagoya, AichiScheduled to open in fall 20143-15-1, Minami 2-jo Nishi, Chuo-ku, Sapporo, HokkaidoB2F-4FScheduled to open in spring 2016

Pedi SHIODOME1-9-1, Higashishinbashi,Minato-ku, TokyoB2F-B1F, 2FOpened: February 16, 2005www.pedi-s.comAs of May 31, 201469