[Translation]
June 29, 2020
To whom it may concern
Company name: J. FRONT RETAILING Co., Ltd.
Representative: Tatsuya Yoshimoto, President(Securities code: 3086, First Section of the Tokyo
Stock Exchange and Nagoya Stock Exchange)
Inquiries: Hajime Inagami, Senior General Managerof Investor Relations Promotion Division, Financial
Strategy Unit
(TEL: +81-3-6895-0178 (from overseas))

Notice Regarding Revisions to Earnings Forecasts and Dividend Forecasts
J. FRONT RETAILING Co., Ltd. (the “Company”) hereby announces that it has revised its
consolidated earnings forecasts and dividend forecasts for the first six months ending August 31,
2020 and for the fiscal year ending February 28, 2021 from those announced on April 10, 2020. Thedetails are provided below.
Revision to earnings forecasts
Revision to the consolidated earnings forecasts for the six months ending August 31, 2020 (fromMarch 1, 2020 to August 31, 2020)
Gross sales

Sales revenue

Business profit

Operating profit

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Previous forecasts (A)437,500

182,000

2,5000

Revised forecasts (B)312,000

140,000(8,000)(30,000)

Change (B-A)(125,500)(42,000)(10,500)(30,000)(28.7)(23.1)––

545,841

225,664

23,74325,175

Profit before tax

Profitattributable toowners ofparent

Basic earnings
per share

Millions of yen

Millions of yen

Yen

Percentage of change (%)(Reference)
Actual earnings results of thesecond quarter of the previous
fiscal year (The six months ended
August 31, 2019)

Previous forecasts (A)(1,500)(1,000)(3.82)

Revised forecasts (B)(33,000)(23,700)(90.51)

Change (B-A)(31,500)(22,700)––

23,96014,367

Percentage of change (%)(Reference)
Actual earnings results of thesecond quarter of the previous
fiscal year (The six months ended
August 31, 2019)

1/4

54.89

Revision to the consolidated earnings forecasts for the fiscal year ending February 28, 2021 (fromMarch 1, 2020 to February 28, 2021)
Gross sales

Sales revenue

Business profit

Operating profit

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Previous forecasts (A)1,010,000

411,000

17,00012,000

Revised forecasts (B)805,000

332,000(7,000)(30,000)

Change (B-A)(205,000)(79,000)(24,000)(42,000)(20.3)(19.2)––

1,133,654

480,62145,36340,286

Profit before tax

Profitattributable toowners ofparentBasic earnings
per share

Millions of yen

Millions of yen

Yen

Percentage of change (%)(Reference)
Actual earnings results of theprevious fiscal year (The fiscal year
ended February 29, 2020)

Previous forecasts (A)

8,700

5,000

19.10

Revised forecasts (B)(35,900)(26,000)(99.30)Change (B-A)(44,600)(31,000)––

37,161

21,251

Percentage of change (%)(Reference)
Actual earnings results of theprevious fiscal year (The fiscal year
ended February 29, 2020)

81.19*1. Of sales revenue, sales from purchase recorded at the time of sale (shoka shiire) of the“Department Store Business” and “Other (Daimaru Kogyo)” have been converted into grossamount and the net amount of sales of the “PARCO Business” into tenant transaction volume(gross amount basis) to calculate gross sales.
2. Business profit is obtained by subtracting cost of sales and selling, general and administrative
expenses from sales revenue. Operating profit is obtained by adding other operating income toand subtracting other operating expense from business profit.
Reason for the revision
The Company has revised the earnings forecast for the current fiscal year from the previous
forecast (announced on April 10, 2020) based on (1) financial results for the three months ended
May 31, 2020 and (2) future business outlook.
(1) Financial results for the three months ended May 31, 2020
In the consolidated financial results for the three months ended May 31, 2020, consolidated sales
revenue dropped significantly, down 43.6% year on year, mainly due to requests from the nationaland local governments to refrain from going outside and temporarily close shops to prevent thespread of the novel coronavirus disease (COVID-19), and especially for the Department Store andPARCO Businesses, the impact of temporarily closing shops and shortening operating hours for along period of time, a reduction in spending by foreign tourists visiting Japan and stagnation indomestic spending after the previous earnings forecast (announced on April 10, 2020) wascalculated.
Under these circumstances, business profit turned into a loss despite efforts to curtail investments
and reduce expenses from those initially planned, and operating profit and profit attributable to2/4

owners of parent became significant losses due to the recording of impairment loss, etc. (¥11.5
billion on a consolidated basis) by some businesses and stores.
(For details regarding the financial results for the three months ended May 31, 2020, please refer tothe consolidated financial results and the supplementary materials on financial results disclosed
today.)(2) Future business outlook
Regarding the future business outlook, with the exception of some stores, all stores gradually
started to resume operations from the middle of May and resumed normal operations from themiddle of June. However, because it is difficult at this time to predict when the spread of COVID-19
will be brought under control and when consumption will recover, these revisions were calculated
based on information available to the Company at the time this notice was released.
Specifically, the revisions were calculated under the assumption that the number of customers
visiting stores (excluding foreign tourists visiting Japan), sales and lease revenue from shops will
gradually recover in the second quarter and throughout the fiscal year based on a sales structure at all
stores in the mainstay Department Store and PARCO Businesses that incorporates all possible
measures to ensure the safety and security of customers and employees.
As a result, although consolidated sales revenue is expected to recover in the second quarter toapproximately 70% of the revenue in the corresponding period of the previous fiscal year and in thesecond half to about 80% of the revenue in the corresponding period of the previous fiscal year
(excluding the impact of sales of reserve floor space in the PARCO Business in the previous fiscalyear), sales revenue and all of the profit items are expected to be significantly lower than thepreviously announced figures.
To establish a system for securing necessary funds as preparation in case the impact of COVID-19
is greater than expected, the Company has curtailed investments, reduced expenses and increased
accumulated cash on hand, as well as taken measures such as increasing the amount of credit lines
for fund raising.
Depending on the actual impact of COVID-19, trends in consumption and other factors, theseforecasts may change significantly. The Company will consider the future trends of operating results,
and if it is decided that the forecasts must be revised again, this information will be promptlydisclosed.

Revision to dividend forecasts
Annual dividends
First quarterend

Second quarterend

Third quarterend

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Previous forecasts(announced on April 10,2020)–––––

Revised forecasts

–

9.00

–

18.00

27.00

18.00

–

18.00

36.00

Actual results of thecurrent fiscal year
Actual results of theprevious fiscal year (Thefiscal year ended February
29, 2020)––

Reason for the revision
Although the forecast of cash dividends for the fiscal year ending February 28, 2021 was yet to be
determined in the previously announced forecast, the Company has announced the forecast forannual dividends reflecting these revisions to the earnings forecasts.
3/4

The Company’s basic policy is to return profits appropriately in accordance with a targeted
consolidated dividend payout ratio of 30% or more while striving to provide a stable dividend, withthe aim of maintaining and enhancing the Company’s sound financial standing while keeping profit
levels, future capital investment, free cash flow trends and other such factors in consideration.
For the earnings forecast for the current fiscal year, as indicated on the preceding page, profit
attributable to owners of parent is expected to become a significant loss in the first half, mainly inthe first quarter, and throughout the fiscal year due to the impact of the spread of COVID-19.
However, in the second quarter and thereafter, the Company will steadily promote efforts to foster arecovery in and secure business results and reform our business structure, with the safety andsecurity of customers and employees as our highest priority, and achieve sustainable improvement incorporate value.
Given this unprecedented challenging operating environment, business outlook and financial
position, the forecast for the interim dividend is ¥9 per share, a decrease of ¥9 from the previous
fiscal year, from the standpoint of ensuring stable operations, and the forecast for the year-end
dividend is ¥18 per share, the same as in the previous fiscal year, from the standpoint of providing
stable dividends to shareholders. Accordingly, the forecast for annual dividends is ¥27 per share (¥36
for the previous fiscal year).

(Caution regarding forward-looking statements)
The forward-looking statements, including earnings forecasts, contained in this document are basedon information currently available to the Company as of the date of this release and on certain
assumptions deemed to be reasonable by the Company. Actual business and other results may differ
due to various factors.
END

4/4