4th J. Front Retailing Co., Ltd. ESG Presentation
December 2, 2021

Today’s Agenda■Promotion of Sustainability Management
YOSHIMOTO Tatsuya
Director, President and Representative Executive Officer, J. Front Retailing Co., Ltd.

■Materiality Initiatives
HIRANO Hidekazu
Managing Executive Officer, Senior Executive General Manager of Management Strategy Unit
J. Front Retailing Co., Ltd.

■Specific Circular Economy Initiative “AnotherADdress”
TABATA Ryuya
Head of AnotherADdress Business, DX Promotion Division, Management Strategy Headquarters
Daimaru Matsuzakaya Department Stores Co. Ltd.

■Current State and Challenges of the Company’s Governancefrom an Independent Outside Director’s Perspective
SATO Rieko
Outside Director, J. Front Retailing Co., Ltd.

■Q & A Session

Promotion of Sustainability Management

YOSHIMOTO Tatsuya
Director, President and Representative Executive Officer3

What Is Sustainability Management JFR Aims for?

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(1) Management based on the Corporate Credo and the Group Vision (always giving priority tomanagement for the benefit of society), which are the starting points(2) Management that always considers risk reduction for stakeholders based on theSustainability Policy(3) Management that identifies new signs of growth as a company from materiality issues(environmental and social initiatives)
Management that achieves social value and economic value at the same time (trade-on)

Service before profit / Abjure all evil and practice all goodSustainability Management and “Well-Being Life”
・ Well-Being Life is the goal of the Group Vision.
・ Well-Being Life is to realize the mental wealth, physical wealth, social wealth andenvironmental wealth of all people as well as material wealth and economic wealth.
・JFR will use JFR's uniqueness and JFR's strength to realize Well-Being Life.

3“Well-Being Life” and 7 Materiality Issues
・Added the “promotion of circular economy” and the “realization of customers’
healthy/safe/secure life” to existing materiality issues.
・Every effort to address materiality issues will lead to the realization of Well-Being Life.

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Materiality Initiatives

HIRANO Hidekazu
Managing Executive Officer
Senior Executive General Manager of Management Strategy Unit

“Well-Being Life” and 7 Materiality Issues
・Added new materiality issues: the “promotion of circular economy” and the “realization ofcustomers’ healthy/safe/secure life.”
・Realize Well-Being Life, which is the goal of the Group Vision, by promoting sevenmateriality issues.

NEWNEW

２

“Risk Reduction” and “Creation of Business Opportunities”
in 7 Materiality Issues

３・Promote efforts in each materiality issue in terms of both "risk reduction" and the "creation ofbusiness opportunities."
・For the creation of business opportunities (CSV), integrate the solutions of economic andsocial issues to achieve corporate growth.
・For risk reduction, promote efforts to minimize social risks.

Sustainability
management

Corporate strategies /business strategies

Service before profit / Abjure all evil and practice all good

Creation of business
opportunities
Integrate the solutions ofeconomic and social issues
to achieve corporate growth

Risk reduction

7materiality
issuesMinimize risks in socialissues

4Energy Policy for Carbon Neutrality
Realization of Decarbonized Society

2030 KGI

Riskreduction

Lead a decarbonized society and create a global
environment for future generations

Ongoing efforts● Reduced Scope 1 and 2 emissions by 32.0% in FY2020 comparedto the SBT base year (FY2017)● Revised up Scope1 and 2 emission reduction target to be achieved
by FY2030 to 60% from 40% (compared to FY2017)● Clarified management’s responsibility for climate change issues
by adding Scope1 and 2 emission reduction targets to officer
remuneration indicators● Share of renewable energy in FY2020: 10.3%

Share of renewable energy(up 6.3% compared to FY2019)and othersFuture efforts
Scope 1 and 2 emission reduction through the use of renewable energy, energy saving, and energy
creation● Share of renewable energy: 40% in 2023, 60% in 2030
● Rate of replacement with LED and share of EVs in corporate fleets: 100% in 2025
● Establishment of a scheme for in-house generation and consumption of renewable energy
in collaboration with new power companies● Effective information disclosure in line with the frameworks for climate-related information
disclosure, such as the TCFD recommendations*1 and ISSB*2*1 Final report of the Climate-related Financial Disclosure Task Force*2 International Sustainability Standards Board formed by the IFRS Foundation

5Reduce Scope 3 in Collaboration with Suppliers
Management of the Entire Supply Chain

2030 KGI

Realize decarbonization throughout the supply chain
created together with suppliers

Scope 3 emission reduction targets



Ongoing efforts● Reduced Scope 3 emissions by 5.0% in FY2020(10,000 t)

2020

2030

5.0% reduction

40% reduction(vs. FY2017)(vs. FY2017)(compared to FY2017)● Started to approach suppliers to reduce Scope 3 emissions(Daimaru Matsuzakaya Department Stores)● Received third-party assurance for waste generation andwater usage in FY2020
and others

Riskreduction(FY)Future efforts
Scope 3 reduction in the supply chain in collaboration with suppliers● Share Scope 3 emission reduction targets and measures with suppliers(planned to hold briefing sessions for suppliers in April 2022)● Strengthen reduction of food waste and plastic waste(Reduce waste generation by 15% in FY2023 compared to FY2019)● Understand the actual status of logistics and start to study ways to streamline in collaboration
with suppliers
and others

Realize Well-Being That Protects the Human Rights
and Health of Workers along the Supply Chain

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Management of the Entire Supply Chain

2030 KGI

Together with suppliers,
realize Well-Being that protects the human rights andhealth of workers along the supply chainOngoing efforts● Conducted assessment of suppliers to disseminate the JFR Principles of Action for Suppliers● Launched human rights due diligence initiatives
・Identified human rights risks, expanded the Human Rights Policy, and conducted “assessment”● Promote understanding through human rights educationand others

Risk
reduction



Future efforts
Disseminate the Principles of Action and reduce human rights risks in the supply chain in
collaboration with suppliers● Continue to conduct “assessment” of and “human rights due diligence” on suppliers● Share assessment results and have dialogue with suppliers● Disclose assessment results to the public (planned to disclose on the website in February 2022)
and others

Create New Business Opportunities by Promoting
Circular Economy

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Promotion of Circular Economy

2030 KGI

Realize a sustainable global environment for the future
and corporate growth throughthe promotion of circular economy

Ongoing efforts● Launched fashion subscription business AnotherADdress● Strengthen the reduction of food waste and plastic waste● Recycle clothing and cosmetic containers through ECOFF

Overview of the circular economy the Group aims to create(Collected 934 t in total up to H1 FY2021)● Opened CHANEL & moi – Les Ateliers, which specializes
in product care and repair● Conducted a sustainability-themed whole-building project
CYCLEand others

Creation ofbusiness
opportunities



Future efforts Monetize circular economy and recycling● Strengthen sharing business by expanding AnotherADdress and developing new businesses● Participate in plastic waste recycling business, etc. in collaboration with national and local
governments and a diverse range of companies● Increase the recycling rate by rebuilding the collection scheme of ECOFF and consider monetization
through resaleand others

Well-Being Life Proposed for Customers

8Realization of Customers’ Healthy/Safe/Secure Life

2030 KGI

Creation ofbusiness
opportunities

Realize a future-oriented Well-Being Life that satisfies
the mind and body of customers and create safe,
secure, and resilient stores

Ongoing efforts● Opened a healthcare mall Welpa in Shinsaibashi PARCO in November● Contactless communication using digital technologies
・ Live commerce・ Virtual events for gaisho customers● Invite shops that carry wellness and ethical products, holdethical eventsand othersWelpa

Future efforts Monetize Well-Being Life

● Create customer touch points with consideration for safety and security by expanding OMO (OnlineMerges with Offline) shopping● Strengthen hybrid entertainment (live + digital) that satisfies mind and body
● Strengthen the offering of products certified for food safety and environmental protection
and others

9Make Local Areas Attractive with Stores at the Core
Coexistence with Local Communities

2030 KGI

Together with local people and centered on stores,
create prosperous future-oriented communities
in which people gather

Ongoing efforts● Opened Shinsaibashi PARCO and BINO Sakae in 2020 through area development● Expand chisan-chisho (local production for local consumption) throughcollaboration with local communities and the use of websites
・Project for coexistence with local communities Think LOCAL
Shinsaibashi PARCO(Daimaru Matsuzakaya Department Stores)

・Crowdfunding BOOSTER (PARCO)● Industry-academia partnership agreements to revitalize local communities
and others

Creation ofbusiness
opportunities

and others

Future efforts
Store development and thereby local area development to increase revenue● Redevelopment of District 25, Nishiki 3-chome, Naka-ku, Nagoya through local area development(planned to open in 2026)● Redevelopment of 3 key areas: Shinsaibashi, Fukuoka, and Nagoya● Collaboration with local farmers and companies and the use of websites such as crowdfunding forchisan-chisho
and others

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Revitalize the Organization by Realizing Diversity
Promotion of Diversity & Inclusion

2030 KGIRealize a highly diverse society in which everyone
recognizes each other’s diversity and flexibly
demonstrates his/her individuality

Ongoing efforts● Share of women in management positions in FY2020 by promoting women’s empowerment:19.9% (consolidated)● Increased the share of female Directors to improve oversight function through diversity (25%)● Created new systems and strengthen employee training to promote an understanding of LGBT
● Employment rate of disabled people by promoting the employment of disabled people: 2.66%

Creation ofbusiness
opportunities

Target share of women in management positions



Future efforts Increase revenue by realizing diversity● Launch a Women's Empowerment Promotion Project with a focus on corporate culture, systems,and education to promote women's empowerment (planned for March 2022)● Make relevant systems known and continue to strengthen awareness raising and training topromote an understanding of LGBT
● Expand occupational fields for elderly empowermentand others11

Increase Productivity by Realizing Flexible Work Styles
Realization of Work-Life Integration

2030 KGI

Realize the Well-Being Life of employees and theirfamilies through new work styles for the future thatrealize diversity and flexibility Ongoing efforts● Improved and expanded systems related to flexible work styles that allow employees towork anytime, anywhere● Turnover rate due to childcare and family care: 1.1% (consolidated)● Men’s childcare leave usage rate: 18.8% (consolidated)● Formulated J. Front Retailing Health Declaration
Creation ofbusiness
opportunities

J. Front Retailing telework systems



Future efforts Increase productivity by promoting new work styles● Further expand telework systems● Reduce overtime, promote the use of paid leave● Develop and flexibly operate childcare and family care systems● Design and conduct an employee satisfaction survey (planned for FY2022)
and others

FY2020 Results and Targets of Materiality Issues (1)12

FY2020 Results and Targets of Materiality Issues (2)13Specific Circular Economy Initiative“AnotherADdress”
TABATA Ryuya
Head of AnotherADdress Business
DX Promotion Division, Management Strategy Headquarters
Daimaru Matsuzakaya Department Stores Co. Ltd.

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Background
Subscription business "AnotherADdress"[Promotion of circular economy]
・Departure from mass production, consumption and disposal→Business model transition from a linear economy to a circular economy
Initiative to recycle resources[Response to customers’ new values]
・Increasing awareness of environmental issues and changes in consumer behavior(“shift from ownership to sharing”)
・Possibility of market expansion and business development[Promotion of diversity & inclusion]・Creation of opportunities for highly motivated employees, regardless of generation orgender
・Realization of business through alliances with external partners and the sharing ofvalues2Service Overview

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Launched "AnotherADdress" in March 2021
Subscription-type fashion service that allows a customer tofreely rent 3 pieces from sophisticated brands

SophisticatedbrandsFreely select3 piecesfor a monthfor ¥11,880(including tax)

Can exchange

Can buyrented items

Free shipping
and returns
No cleaning
required

Business Concept
Business concept based on circular economy

Merger of intrinsic value of fashion and simple life4

Resonance with Customers
Business focused on customers’ new values[Customer feedback]I experienced the economic bubble and my 10-square-meter closet isalways flooded with clothes, which has made me feel uncomfortable
recently. The subscription service that allows me to enjoy a variety ofclothes without adding to my wardrobe is attractive at my age.
(50s, Tokyo)(According to the washable program questionnaire), it was very helpful toknow there are various techniques to take care of clothes and make themlast longer. I support AnotherADdress because I agree with the idea ofincreasing the life of clothes.
(20s, Tokyo)

I always select passable clothes to buy so that I can mix and match them.
This service expanded my clothing options and made my commuting
more pleasant. In addition, it is also convenient that I can rent the clothes
to wear only occasionally such as formal attire.
(40s, Fukuoka)

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Sustainable Partners6Co-creation with partners that promote sustainable initiatives
Logistics(3PL company)

Cleaning and repair(Delivery company)(Cleaning company)(Delivery company)(Repair company)

Recycling(Recycling company)

We have decided to join AnotherADdress because we support their efforts. The cleaning industry still has problems
with environmental considerations. While jointly researching and developing organic cleaning solutions and others, wewould like to change the cleaning industry itself. (Mr. Mogi, Representative Director, BARREL Inc.)
We felt that it is very meaningful for a department store that has "sold" fashion to work on this business. Only adepartment store could attract these brands. This initiative is very new to the industry. We will support it as a recycling
partner. (Mr. Iwamoto, Co-Founder, Japan Environment PLANning)Current State and Challenges of the Company’s Governancefrom an Independent Outside Director’s Perspective

SATO Rieko, Director26

Agenda1. The Company’s Governance Initiatives
2. Future Challenges

3. Roles of Independent Outside Directors

The Company’s Governance Initiatives

3■ From establishing and developing systems to ensuringhigh effectiveness Agenda setting and discussion with a focus on the Groupstrategies from a medium- to long-term perspective to enhance
corporate value Agenda setting and discussion on current challenges andcountermeasures amid the severity of business management in
the distribution industry
 Creation of opportunities to strengthen cooperation between
executive members and Outside Directors*Monthly holding an expanded executive session attended by President, etc.

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Future Challenges■ Expectations and challenges
 Optimization of business portfolio and humanresources policy to support its realization*Development of new business models, response to digital shifts, etc.

 To accelerate transformation

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Roles of Independent Outside Directors

5■ Expected roles
 To curb runaway
 To support positive and decisive management decisions■ Stance
 To freely give opinions without considering what management wants*Unconstrained by past bonds and background