～

Step Up a Gear for Change ～Presentation of Results for First Six Months of
Fiscal Year Ending February 28, 2023

October 11, 2022
YOSHIMOTO Tatsuya
President and Representative Executive Officer
J. Front Retailing Co., Ltd.

Create and Bring to Life “New Happiness.”Today’s Agenda

III. Overview of H1 FY2022 Results
III. H2/Full FY2022 Forecast
III. Progress of Medium-term Business Plan

1

Overview of H1 FY2022 Results (IFRS)

2Consolidated PL (IFRS)Sales significantly increased but recovery was slower than expected due to 6th and 7th waves
of COVID-19
Cost control succeeded; business profit, operating profit, profit attributable to owners of parent
were all above forecast
Paid interim dividend of ¥15 per share, up ¥1 YoY, as planned at beginning of year
(Millions of yen, unless otherwise stated)

First six months offiscal year ending
February 28, 2023

Q１

Q２

H1

Gross sales

227,165

20.7)

236,96413.3)

464,130

16.8)

vs. April
forecast(27,870)

Revenue

81,90510.5)

87,223

4.8)

169,1297.5)(9,871)Gross profit

40,54620.9)

42,31517.0)

82,861

18.9)(3,639)SGA

33,501

3.9)

35,730

5.7)

69,232

4.8)(5,768)Business profit

7,045

442.4)

6,584

179.5)

13,629272.9)

2,129)

Other operating income

1,260

192.0)

1,059(13.5)

2,320

40.0)

1,320)

Other operating expenses

745(86.6)

1,966

70.9)

2,712

(59.5)

712)

Operating profit

7,560

－

5,677

133.6)

13,237－2,737)

Profit attributable toowners of parent

5,974

－

4,181

291.6)

10,155－

4,155)(Interim) 15 (Yen)1)

Dividend per share (Yen)

ResultsYoY %ResultsYoY %Results

YoY %3

Segment Performance (1) Department Store (IFRS)
Recovery was slower than expected due to 6th and 7th waves of COVID-19

SGA: Positively affected by restructuring and control of advertising expenses, repair expenses,
etc. during periodBusiness profit was ¥1.2 billion above forecast, operating profit was only ¥0.3 billion above
forecast due to impairment losses
Revenue
120,000

Business profit (loss)
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
△1,000△2,000101,610100,000

86,48480,00060,00040,00020,0000
H1
FY20212021年度H1
FY2021Results
上期実績
Results

2022年度H1 FY2022
上期実績
Results

Operating profit (loss)
6,000

5,731

3,813

4,000
2,000
0

△4,566△2,000△1,507△4,000△6,000H1
FY20212021年度Results
上期実績

H1
FY20212021年度Results
上期実績

H12022年度
FY2022
Results
上期実績

H1
FY2022
2022年度Results
上期実績(Millions of yen, unless otherwise stated)

First six months offiscal year ending
February 28, 2023

Q1

Q2

H1

Gross sales

148,11429.0

157,12518.2

305,239

23.2

vs. April
forecast(12,161)

Revenue

48,81222.9

52,797

12.9

101,61017.5(4,690)SGA

28,616

12.3

29,793

4.2

58,4108.0(3,090)Business profit

2,650

－

3,080

－

5,731

－

1,231)

Operating profit

2,263

－

1,550

－

3,813

－

313)

ResultsYoY %ResultsYoY %Results

YoY %4

Daimaru Matsuzakaya Department Stores Major Store Sales
Sales decreased 15.4% in H1 compared to FY2019, decrease in sales excluding inbound sales
recovered to 6.2% in Q2
Sales of Kobe store that has strong regular customers were above FY2019 level;
domestic sales of Shinsaibashi, Sapporo, Nagoya stores recovered
Tokyo and Umeda stores that highly depend on foot traffic are relatively slow to recover, which requires(%)
separate measures
Fiscal year ending
February 28, 2023

vs. FY2021

vs. FY2019

Q1
Results

Q2
Results

H1
Results

Q1
Results

Q2
Results

H1
Results

Shinsaibashi

56.0

31.4

41.6

(34.6)(19.8)(27.3)

Umeda

57.0

2.6

23.3

(32.0)(30.2)(31.0)

Tokyo

50.8

33.7

41.6

(29.9)(27.3)(28.6)

Kyoto

23.8

14.3

18.7

(16.2)(12.5)(14.3)

Kobe

43.9

24.8

33.4

5.1)

11.8)

8.5)

Sapporo

29.8

32.2

31.0

(11.0)

(8.6)

(9.8)

Nagoya

16.1

14.0

15.0

(6.4)

(1.1)

(3.7)

Total
directly managed stores(comparable stores)

31.8

19.3

25.0

(18.1)(12.8)(15.4)

Excluding inbound

31.0

17.1

23.5

(8.7)

(6.2)

(7.4)

*Total is on a comparable store basis. (Comparison to FY2019 excludes Yamashina, Shimonoseki, and Toyota stores.)5

Gaisho Sales Are Steadily Growing
Sales from gaisho customers continued strong, driving domestic sales, already increased
10.4% compared to FY2019
Brisk spending by young people, sales share of customers in their 20s to 40s of total gaisho
share increased to 29.7%
Daimaru Matsuzakaya Department Stores
Changes in credit sales(H1)

Daimaru Matsuzakaya Department Stores
Share of credit sales by age (%)(Millions of yen)

100,000

Aged 50 or above

Aged under 50

100%

24.2

28.4

29.7

75.8

71.6

70.3

H1
2020

H1
2021

H1
2022

50,0000%0H1FY2019H1
FY2020H1
FY2021

H1
FY20226

Daimaru Matsuzakaya Department Stores SGA Analysis (IFRS)H1 FY2022
SGA analysis

・Effect of restructuring △¥1.6 bn
・Increase largely due to merger with Daimaru Matsuzakaya
Sales Associates on Sep 1 of LY (¥4.2 bn)
・Increase in reaction to transfer of fixed costs during business
Operational
suspension LY (¥0.4 bn)
costs
・Increase in bonuses resulting from business recovery (¥0.4 bn)

Rent
expenses△ 18

Ad expenses
28
523
3,361
Packing andtransportation
costs

697

Operational
costs
△ 349
△
233
△ 1,817△ 1,239

Depreciation

984

Depreciation(Millions of yen)Rent
Ad expenses △ 642
expenses
△ 150
11
46

Other SGA

Packing andtransportation
costs

Personnel
expenses

Other SGA

・Increase in system investment (¥0.3 bn)

Personnel
expenses

48,33255,800・Decrease largely due to merger with Daimaru Matsuzakaya
Sales Associates on Sep 1 of LY (△¥4.3 bn)
・Effect of restructuring △¥0.4 bn
・Increase in reaction to transfer of fixed costs during businesssuspension LY (¥0.9 bn)
・Increase in commissions due to sales increase (¥1.1 bn)
・Increase in supplies expenses partly due to rising prices ofutilities (¥0.5 bn)
・Repairs expenses due to increased investment (¥0.2 bn)

52,669¥3,131 million below April forecast

Up 4,337 million YoY(Down ¥6,244 million from 2019)

H1 LY
Results【Fixed costs transferred due to business suspension】(H1 LY) ¥2.29 billion
Personnel expenses ¥0.35 billion,
depreciation 0.99 billion, other (outsourcing
expenses, etc.) 0.93 billion, etc.

H1 TY
Results

April
Forecast
7Segment Performance (2) SC Business (IFRS)Revenue decreased due to remaining effect of exclusion of Neuve A from consolidation throughshare transfer at end of June last year
As a result of efforts to reduce cost and SGA, business profit increased but fell short of April
forecast
Operating profit was a little above forecast due to recording of subsidies related to COVID-19
in entertainment business
Revenue
30,00026,764

Business profit

25,000Operating profit

4,006

5,000

26,6546,000

20,000

4,861

5,000

4,000

4,000

2,721

3,000

15,000

3,000
2,000

10,000

2,000

1,000

5,000
0

1,000
0

0
H1
FY20212021年度Results
上期実績

H1
FY2022
2022年度Results
上期実績

456

H1
FY20212021年度Results
上期実績

H1
FY2022
2022年度Results
上期実績

H1
FY2022
2022年度Results
上期実績

H1
FY20212021年度Results
上期実績(Millions of yen, unless otherwise stated)

First six months offiscal year ending
February 28, 2023

Q1

Q2

H1

Gross sales

60,01819.0)

59,82413.9)

119,842

16.4)

vs. April
forecast(12,435)

Revenue

13,181(4.4)

13,4733.8)

26,654(0.4)(2,101)

SGA

1,818

(41.0)

2,044

(8.6)

3,862

(27.4)(637)

Business profit

2,208

48.6)

1,797

45.5)

4,006

47.2)

(745)

Operating profit

2,880

－

1,981

40.4)

4,861

965.7)

37)

ResultsYoY %ResultsYoY %Results

YoY %8

Segment Performance (3) Developer Business (IFRS)In spite of reaction to J. Front Design & Construction’s large scale construction last year, revenue increased
due to increase in orders received by PSS
Revenue was below forecast largely due to J. Front Design & Construction’s delay in construction caused by
COVID-19
Revenue decreased partly due to withdrawal of Dotonbori ZERO GATE but each profit item was above
forecast due to reduction of SGA
Business profit

Revenue
30,00025,7372,000

25,821

25,00020,00015,00010,0005,000
0Operating profit
2,000

1,726

1,500

1,500

1,000

1,000

500

500

0
2021年度H1
FY2021
上期実績
Results

2022年度H1
FY2022
上期実績
Results

1,807

1,786

2021年度H1
FY2021Results
上期実績

H1
FY2022
2022年度Results
上期実績

1,552

0
2021年度H1
FY2021
上期実績
Results

2022年度H1
FY2022
上期実績
Results(Millions of yen, unless otherwise stated)

First six months offiscal year ending
February 28, 2023

Q1

Q2

H1

Gross sales

13,345(9.9)

12,476(11.5)

25,821(10.7)

vs. April
forecast(2,479)

Revenue

13,345

14.6)

12,476(11.5)

25,821

0.3)(2,479)

SGA

1,561

(2.7)

1,620

(4.5)

3,182

(3.6)

(818)

Business profit

832

1.7)

719

(20.7)

1,552(10.1)

552)

Operating profit

1,034

18.1)

751

(19.3)

1,786

(1.2)

786)

ResultsYoY %ResultsYoY %Results

YoY %9

Segment Performance (4) Payment and Finance Business (IFRS)
Increase in commissions due to increase in transaction volume of external merchants as well as increase inannual fee income contributed
Business profit and operating profit were above forecast due to efforts to reduce SGA though it slightly
increased YoY
Transaction volume per account continued to increase, driven by strong performance of gaisho’s
Otokuisama Card
Business profit

Revenue
7,000
6,000
5,000

1,831

2000

6,314
4,953

4,000
3,000
2,000

Operating profit

1500

1500

1000

1000

500

476

506

500

1,000
0

0
H12021年度
FY2021Results
上期実績

H1
FY20212021年度Results
上期実績

H1
2022年度FY2022
Results
上期実績

1,853

2000

0

H1
FY2022
2022年度Results
上期実績

H1
FY20212021年度Results
上期実績

H1
FY2022
2022年度Results
上期実績(Millions of yen, unless otherwise stated)

First six months offiscal year ending
February 28, 2023

Q1

Q2

H1

Gross sales

3,154

35.1)

3,160

20.7

6,314

27.5

vs. April
forecast
68)

Revenue

3,154

35.1)

3,160

20.7

6,314

27.5

68)

SGA

2,141

(5.5)

2,340

5.9

4,482

0.1

(416)

Business profit

1,012

ー

819

100.8

1,831

284.6

483)

Operating profit

1,025

ー

828

92.1

1,853

265.7

508)

ResultsYoY %ResultsYoY %Results

YoY %10

Segment Performance (5) Other (IFRS)Revenue decreased because core business Daimaru Kogyo struggled due to shortage ofsemiconductors and Dimples’ was excluded from consolidation
SGA reduced due to exclusion of Dimples’ from consolidation, Daimaru Kogyo improved
profitability

35,000649

700

31,45730,000Operating profit

Business profit

Revenue
600

26,67725,000500

20,000400

15,000300

10,000

200

5,000

100

900
800
700
600
500
400
300
200
100
0

492

0

0
H1
FY20212021年度Results
上期実績

H1
FY2022
2022年度Results
上期実績

2021年度H1
FY2021
上期実績
Results

2022年度H1
FY2022
上期実績
Results

769

439

H1 FY2022
2022年度Results
上期実績

2021年度H1
FY2021
上期実績
Results(Millions of yen, unless otherwise stated)

First six months offiscal year ending
February 28, 2023

Q1

Q2

H1

Gross sales

13,697(12.4)

13,694(19.6)

27,391(16.2)

vs. April
forecast(409)

Revenue

13,375(15.4)

13,301(15.0)

26,677(15.2)(1,523)

SGA

5,848

8.9)

4,438

(20.0)

10,286

(5.8)

(114)

Business profit

407

81.5)

241

(9.9)

649

31.8)

(151)

Operating profit451

133.5)

318

29.2)

769

75.0)

49)

ResultsYoY %ResultsYoY %Results

YoY %11

Consolidated BS (IFRS)
Total assets decreased ¥31.8 billion compared to previous year end partly due toreduction of cash and deposits
Interest-bearing liabilities decreased ¥37.8 billion compared to previous year end
partly due to repayment of bonds, borrowings, etc.
Ratio of equity attributable to owners of parent recovered to more than 30%
Total assets

Interest-bearing liabilities

Equity attributable toowners of parent
Ratio of equity
attributable toowners of parent

1,192,907△31,872

1,161,035

30.8 %

29.4%＋1.4pt502,109
Lease
liabilities
184,394～ ～Feb 28, 2022

(Millions of yen)

Aug 31, 2022

△37,828464,281Leaseliabilities
175,395

Bonds/
borrowings
317,715

Bonds/
borrowings
288,886

Feb 28, 2022

Aug 31, 2022

350,368

Feb 28, 2022

357,041＋6,673

Aug 31, 202212

Consolidated CF (IFRS)Net cash provided by operating activities increased ¥7.7 billion YoY partly due to returning to
profit before tax
Net cash used in investing activities increased ¥1.4 billion YoY due to renovation
investment by SC BusinessFree CF was positive at ¥18.6 billion, up ¥6.2 billion YoY due to increase in net cash
provided by operating activities
Operating CF

Investing CF

Free CF

Financing CF

Balance of
cash and deposits
123,450

64,92917,261

24,991＜△1,454＞＜＋7,730＞△ 4,867 △ 6,321

12,393＜△29,298＞＜＋6,276＞

Figures in angle brackets represent YoY changes.

Results Q2 FY ended Feb 28, 2022
(Millions of yen)

18,669＜△58,521＞△ 17,962△ 47,260

Results Q2 FY ending Feb 28, 2023

13

H2/Full FY2022 Forecast (IFRS)

14

Business Environment Awareness◆ Accelerating move to push forward economic activities
based on living with COVID-19◆ Sweeping relaxation of restrictions on inbound tourists
such as lifting cap on entry numbers◆ Accelerating inflation, paying close attention to its impact
on economy and consumer spending

15

Consolidated PL Forecast (IFRS)Revised down gross sales forecast for H2, mainly for the Department Store, by ¥17.0 billion considering thesituation in H1
Revised up business profit and operating profit forecasts by amount increased above forecast in H1 throughfurther cost reduction
Plan to pay year-end dividend of ¥16 per share, up ¥1 YoY, resulting in annual dividend of ¥31, up ¥2 YoY(Millions of yen, unless otherwise stated)

H2
Fiscal year ending
February 28, 2023

Forecast

Full year

YoY %vs. April
forecast

Forecast

vs. April
forecastYoY %Gross sales

510,869

9.0)(17,131)975,000

12.6)(45,000)

Revenue

176,870

1.6)(14,130)

346,000

4.4)(24,000)

Gross profit

85,1388.9)(3,362)

168,000

13.6)(7,000)SGA

74,7676.7)(3,233)144,000

5.8)(9,000)Business profit

10,370

28.6)

(130)

24,000104.8)

2,000)

Other operating income

1,479(84.3)

(21)

3,800

(65.7)

1,300)

Other operating expenses

1,587(76.3)

87)

4,300(67.9)

800)

Operating profit

10,262

(4.7)

(238)

23,500150.5)

2,500)

Profit attributable toowners of parent

5,844

(7.5)

344)

16,000270.2)

4,500)(Year-end) 16(Yen) 1)0)(Annual) 31

(Yen)

2)

0)

4.5
2.6

(RD)

Dividend per share (Yen)ROE(%)ROIC(%)

3.3(RD) 1.4

1.2(RD) 0.2(RD)16

Segment Performance Forecast (1) Department Store Business
Gaisho will continue strong; for inbound sales, expect a certain growth but carefully estimate
spending by middle class
Actively make “offensive” investments but further control costs totally
Revenue
250,000
200,000

190,739

209,600

14,00011,90012,00010,000150,000

8,000
6,000

100,000

4,000

50,000

1,798

2,000

0

0

2021年度FY2021
実績
Results

Operating profit

Business profit

2022年度FY2022予想
Forecast

2021年度FY2021
実績
Results

10,000
8,000
6,000
4,000
2,000
0
△2,000△4,000△6,0002022年度FY2022予想
Forecast

9,100△4,5942021年度FY2021
実績
Results

2022年度FY2022予想
Forecast(Millions of yen, unless otherwise stated)

Fiscal year ending
February 28, 2023

H2
Forecast

Full year

YoY %vs. April
forecast

Forecast

YoY %vs. April
forecast

Gross sales

338,460

9.9(9,640)643,700

15.8(21,800)

Revenue
SGA
Business profit
Operating profit

107,989
61,989
6,168
5,286

3.6
3.8
86.6
－

(8,711)(3,011)
168)
286)

209,600
120,400
11,900
9,100

9.9
5.8
561.7
－

(13,400)(6,100)1,400)
600)
17

Daimaru Matsuzakaya Department Stores Major Store Sales Forecast
Renovate sales floors in flagship stores to strengthen luxury, watch categories
Factored in inbound sales of ¥12.0 billion in H2 (¥5.3 billion in H1) partly due to relaxation ofentry restrictions
Tokyo store will expand high-end watches, Umeda store will also expand watches and(Millions of yen, unless otherwise stated)
introduce Nintendo OSAKA
Fiscal year ending
February 28, 2023

vs. FY2021

vs. FY2019

Q3
Forecast

Q4
Forecast

H2
Forecast

Q3
Forecast

Q4
Forecast

H2
Forecast

Shinsaibashi

17.5

18.7

18.2

(19.6)

0.2(10.0)

Umeda

7.7

8.9

8.4

(23.4)(20.6)(21.9)

Tokyo

16.3

15.0

15.6

(22.4)(16.1)(19.1)

Kyoto

10.6

11.2

10.9

(10.1)

(3.7)

(6.7)

Kobe

5.6

6.4

6.0

6.0)

12.6)

9.5)

Sapporo

13.2

20.4

17.0

(4.1)

(5.0)

(4.6)

Nagoya

9.5

7.4

8.3

(3.3)

8.1)

2.5)

Total
directly managed stores(comparable stores)

9.7

10.1

9.9

(10.7)

(3.2)

(6.8)

Excluding inbound

7.1

5.8

6.4

(5.0)

0.4)

(2.1)

*Total is on a comparable store basis. (Comparison to FY2019 excludes Shimonoseki and Toyota stores.)18

Daimaru Matsuzakaya Department Stores SGA Analysis (IFRS)H2 FY2022
SGA analysis(Millions of yen)・Increase in bonuses resulting from business recovery (¥1.1 bn)
・Increase due to shift to insourcing (¥0.9 bn, outsourcing expenses decreased)

Personnel
expenses
1,229

Packing andtransportation
costs
Depreciation
△ 24
△ 82
325
△ 368
509

Ad expenses

53,812

Rent
expenses

Other

1,045
△1,034

Other

△328
318

Packing and
Personneltransportation
expenses
costs
△ 389
Depreciation
△ 271
△ 27
△ 82
△ 742

Operational
costs

828

Rent
expenses

Ad expenses

Operational
costs

・Increase in commissions due to sales increase (¥0.8 bn)
・Increase in supplies expenses partly due to rising prices ofutilities (¥0.2 bn)
・ Repairs expenses due to increased investment (¥0.2 bn)
・Decrease in outsourcing expenses partly due to shift toinsourcing (△¥0.9 bn)

59,10056,230¥2,870 million below April forecast

Up ¥2,418 million YoY(Up ¥58 million from 2019 *)H2 LYResults*Figures for H2 2019 include a decrease of ¥4.1 billion in retirement
benefit expenses resulting from extension of retirement age.

H2 TY
Forecast

April
Forecast
19

Segment Performance Forecast (2) SC Business (IFRS)Expect effect of renovation underway in flagship stores and improvement of relaxing of conditions for tenants
Ensure that business profit will increase in H2 but operating profit is expected to decrease due to absence ofsubsidies recorded last year
Revenue
60,000Business profit
55,26352,556

5,616

6,000

Operating profit
7,000

5,000

40,0004,000

30,0003,000

20,000

2,000

2,000

10,000

1,000

1,000

0

3,844

5,000
4,000
3,000

FY2022
2022年度Forecast
予想

2,055

0

0
2021年度FY2021
実績
Results

6,193

6,000

50,0002021年度FY2021Results
実績

FY20212021年度Results
実績

2022年度FY2022
Forecast
予想

FY2022
2022年度Forecast
予想(Millions of yen, unless otherwise stated)

Fiscal year ending
February 28, 2023

H2
Forecast

YoY %Full year
vs. April
forecast

Forecast

YoY %vs. April
forecast

Gross sales

130,09012.0)(5,121)

249,932

14.0)(17,556)

Revenue
SGA
Business profit
Operating profit

28,609
4,886
1,610
1,332

10.9)
24.0)
43.4)
(16.7)

265)
276)
(140)
(468)

55,263
8,748
5,616
6,193

5.2)
(5.5)
46.1)
201.3)(1,837)
(361)
(886)
(431)

20

Segment Performance Forecast (3) Developer Business (IFRS)
J. Front Design & Construction, which will renovate hotels and department stores, and PSS are expected toincrease revenue and profits
In total, revenue will increase but profits will decrease due to increase in upfront development expenses for
medium-term growthBusiness profit

Revenue
60,00056,52450,6333,500

50,0003,000

40,0002,500

30,00020,0003,134Operating profit
5,000

2,586

4,711
3,609

4,000

2,000

3,000

1,500

2,000

1,000

10,000

1,000

500

0

0
FY20212021年度Results
実績

FY2022
2022年度Forecast
予想

0
2021年度FY2021
実績
Results

FY2022
2022年度Forecast
予想

FY20212021年度Results
実績

2022年度FY2022予想
Forecast(Millions of yen, unless otherwise stated)

Fiscal year ending
February 28, 2023

H2
Forecast

YoY %Full year
vs. April
forecast

Forecast

YoY %vs. April
forecast

Gross sales

30,70323.3)

1,203)

56,524

5.1)(1,276)

Revenue
SGA
Business profit
Operating profit

30,703
4,235
1,034
1,823

23.3)
28.0)
(26.6)(37.2)

1,203)
(165)
34)
223)

56,524
7,417
2,586
3,609

11.6)
12.2)
(17.5)(23.4)(1,276)(983)
586)
1,009)

21

Segment Performance Forecast (4) Payment and Finance Business (IFRS)
Commission income from department stores and external merchants, which are improving performance, is
expected to continue to increase
Likely to achieve operating profit of more than ¥3.0 billion, which is target level under medium-term plan, thisfiscal year
Business profit

Revenue
12,79914,00012,00011,037

3,271

3,500
3,000

Operating profit
3,000

10,000

2,500

8,000

2,000

6,000

1,500

1,500

4,000

1,000

1,000

2,000

500

500

0

0
2021年度FY2021
実績
Results

2,500

1,906

2,000

FY20212021年度Results
実績

2022年度FY2022予想
Forecast

3,301

3,500

1,970

0
2022年度FY2022予想
Forecast

FY20212021年度Results
実績

FY2022
2022年度Forecast
予想(Millions of yen, unless otherwise stated)

Fiscal year ending
February 28, 2023

H2
Forecast

Full year

YoY %vs. April
forecast

Forecast

YoY %vs. April
forecast

Gross sales

6,485

6.6)

(104)

12,79916.0(36)

Revenue
SGA
Business profit
Operating profit

6,485
5,045
1,440
1,448

6.6)
8.4)
0.7)
(1.0)

(104)
(102)
(2)
2)

12,799
9,527
3,271
3,301

16.0
4.3
71.6
67.6

(36)
(518)
481)
510)

22

Segment Performance Forecast (5) Other (IFRS)
Daimaru Kogyo factors in continued shortage of semiconductors but it is expected to increase revenue andprofits in full year due to improvement of profitability
Other as a whole is expected to decrease revenue and profits partly because effect of exclusion of Dimples’
from consolidation will remain until H2
Revenue
70,000Operating profit

Business profit
1,400

61,75560,00051,747

1,400

1,252

1,000

50,0001,000

40,000800

30,000600

600

20,000400

400

10,000

200

200

0

0

0
2021年度FY2021
実績
Results

FY2022
2022年度Forecast
予想

1,199

1,200

1,200
769

2021年度FY2021Results
実績

866

800

FY2022
2022年度Forecast
予想

FY20212021年度Results
実績

2022年度FY2022
Forecast
予想(Millions of yen, unless otherwise stated)

Fiscal year ending
February 28, 2023

H2
Forecast

YoY %Full year
vs. April
forecast

Forecast

YoY %vs. April
forecast

Gross sales

25,879(20.9)(2,621)

53,270(18.5)(3,030)

Revenue
SGA
Business profit
Operating profit

25,070
9,969
120
97

(17.3)(2.9)(84.2)(87.2)(3,630)
269)
(180)
(83)

51,747
20,255769
866(16.2)(4.4)(38.6)(27.7)(5,153)
155)
(331)
(34)

23

Consolidated BS Forecast (IFRS)
By reducing balance of cash and deposits to pre-COVID-19 levels, total assets are expected
to decrease ¥62.9 billion YoYInterest-bearing liabilities (excluding lease liabilities) are expected to be ¥260.0 billion,
achieving target under medium-term plan a year ahead of schedule
Ratio of equity attributable to owners of parent is expected to be 31.7%, up 2.3 points YoY
Total assets

Interest-bearing liabilities

Equity attributable toowners of parent
Ratio of equity
attributable toowners of parent

1,192,907△62,90731.7 %

1,130,000

29.4 %＋2.3pt502,109
Lease
liabilities
184,394～ ～Feb 28, 2022
(Millions of yen)

Feb 28, 2023

Bonds/
borrowings
317,715

Feb 28, 2022

△82,109

420,000
Lease
liabilities
160,000

350,368＋7,632358,000

Bonds/
borrowings
260,000

Feb 28, 2023

Feb 28, 2022
22年2月末Feb 28, 2023
23年2月末24

Consolidated CF Forecast (IFRS)Net cash provided by operating activities is expected to increase ¥7.1 billion YoY partly due tosignificant increase in profit before tax
By promoting active investment in key categories, etc., net cash used in investing activities
is expected to increase ¥18.7 billion YoYFree CF is expecting to be positive at ¥33.0 billion, down ¥11.5 billion YoY due to increase ininvestment
Operating CF

Investing CF

Free CF

Financing CF

Balance of
cash and deposits
93,27849,86657,00044,57733,000＜△18,711＞＜＋7,134＞△ 5,289

31,000＜△14,808＞＜△11,577＞＜△62,278＞△ 24,000

Figures in angle brackets represent YoY changes.
(Millions of yen)

Results FY ended Feb 28, 2022

△ 80,392△ 95,200

Forecast FY ending Feb 28, 2023

25

FY2021 - FY2023

Progress of Medium-term Business Plan

26

Turning Point of Medium-term Business Plan

● FY2022 is a year for stepping up a gear to shift from“defense” to “offense”● Strengthen investment to increase added value ofreal stores and accelerate digitization● Also promote initiatives for regrowth for FY2024 andbeyond27

Establishment of Developer Business Company＜Business concept＞

Development of multi-purpose buildings that
contribute to increasing value of 7 cities with retail at its core
Transfer Parco/Developer Business to developer business company through company split
Ensureproperbusinessmanagement

Strengthen
management

EnsureproperdecisionmakingEnsureproperorganization
andpersonnel

Improveability topromotestrategies【Roles to fulfill】
Sapporo(in front of station)
Kobe(Motomachi)
Fukuoka(Tenjin) Strengthen role in drawing customers using
retail performance and know-how

Kyoto(Karasuma)
Tokyo(Ikebukuro/Ueno)
Nagoya(Sakae)Osaka(Shinsaibashi) Diversify facility functions including noncommercial ones and strengthen ability tomeet needs for use in the area
 Evolve by incorporating concept andtechnologies of Web 3 into Developer28

Initiatives to Grow Developer Business
Development projects that will lead to medium- to long-term growth for 2024 and beyond will
be realized one after another

NagoyaSakae

Osaka
Shinsaibashi＋

Rendering of “(tentative name) Nishiki 3-chome District 25 project”(Scheduled to open in 2026)

Rendering of “(tentative name) Shinsaibashi project”(Scheduled to complete in 2026)

Large-scale project in Tenjin area, Fukuoka will finally start29

For Full Recovery

Department Store ー Promote Digitization Centering on App
Customer touch points via app steadily expanded and deepened andsophistication of CRM made substantial progress
Sales via app (¥100 million)
2,100

1,800

2,000

1,600

1,900

Number of active app users(1,000 people)

1,400

1,800
1,200

1,700
1,600

1,000

1,500

800

1,400

600

1,300
400

1,200

200

1,100
1,000

0
Aug
31, 2021
21年8月末Feb 28, 2022 22年8月末
Aug 31, 2022
22年2月末Aug
31, 2021
21年8月末Feb 28, 2022 22年8月末
Aug 31, 2022
22年2月末Promote strengthening of customer base and sophistication of data utilizationin conjunction with private label cards

30Department Store ー Promote Digitization Centering on App
Customer touch points via app steadily expanded and deepened andsophistication of CRM made substantial progress《 Utilization of logistic regression analysis 》

Purpose: To find potential customers

Customer
data
Purchase
data

Universal
purchaseprediction
model

DWH

《 Gaisho staff 》

Approach to eachcustomer by staff《 Non-buying potential customer 》

Onlinebehavior data

MA mail distribution《 MA mail 》《 Utilization of MA mail 》 Purpose: Approach according to customer response data

Extract target customers

Distribute mailIdentify customers who
opened or clicked mailApproach each of
identified customers

Sales from customers acquired using data

¥1.03 billion (H1 2022)

31

Data Analysis and Utilization via JCDP
Analyze customer buying patterns of Daimaru Shinsaibashi store and Shinsaibashi PARCO
that adjoin each other in Shinsaibashi area
Average spend per customer who bought in both stores is twice average spend per
customer who bought in either of them
Daimaru Shinsaibashi store(Thousands of yen) Average spend per customer
500(Thousands of yen)

Shinsaibashi PARCO
Average spend per customer

150

2.2
times

2.7
times

0

0
百貨店のみでBoughtin only
購買 Store
Department

両店舗でBought in購買
bothstoresPARCOのみでBoughtin only
購買
PARCO

両店舗で
Boughtin
both購買storesExpand sales synergy by increasing customers buying in both stores*JCDP stands for J. Front Retailing Customer Data Platform (former LTS-Hub)*Data were extracted during the period from December 1, 2020 to April 30, 2022.

32

Real/Digital Concept for New Value Creation
Create new space using digital technologies at the Group level while taking advantage of real stores
Realize coexistence and development with local communities in the way only the Group can, also using data

The Group’s unique new value creation in key areas<Customer creation (community) / space creation>
Department
Store

Web 3

PARCO

Creation of experience value
using strength of real world

Metaverse

Facilities developed by
Developer Business

JCDP

33

Promotion of Trial of Metaverse (Example)
Opened a virtual store Virtual Daimaru
Matsuzakaya in Metaverse New York

Sold summer gourmet foodin Metaverse space

Staff avatars first served customers
in Metaverse

In Metaverse space, customers can freely walk around the store, pick up 3D
food models to check the shape of the product, see details in virtual catalog,
and purchase the product. More than 600 gourmet items were lined up.

In Virtual Daimaru Matsuzakaya store, an employee influencer
NOZAKI Mizuho welcomed customers as avatar. Part-timers working
in Metaverse who have experience in serving customers virtually andare knowledgeable about products were first hired.

34

Development of Digital Human Resources
Develop human resources who contribute to customer-driven management and businessmodel transformation
Raise digital literacy across the Group and foster culture in which data and digitaltechnologies are utilizedCore digital human resources(Data analyst + Digital designer)

FY2024FY2030100

1,000peoplepeople35

Establishment of CVC Fund
Actively leverage innovative business models and technologies of startup
companies
Promote creation of new businesses and transformation/innovation of existing
businesses in the Group
J. Front Retailing

VC (partner)
Management/
know-howInvestment

Investment
Capital gain

CVC fundStartupStartupStartup36

Promotion of Human Capital Management via CVC
Contribute to creating new businesses as well as
developing human resources and reforming culture
by actively appointing young employees
Businessseeds
Explore business seeds outside the Group
Combine with business seeds and ideas
outside the Group

Develop managerial talents andentrepreneurial human resources

CVC
Human
resources

Corporate
cultureStimulate spontaneous motivation
Promote new challenges

Approximately

4,800

employees are expected to participate(Total until FY2030)

Produce "human resources that lead transformation"

37

Management Restructuring (Lowering of Break-Even Point)
Original target under current Medium-term Business Plan was to reduce fixed costs ¥10.0
billion or more
Reduction is progressing more than planned in both 1st and 2nd years, expected to be ¥12.6
billion in total for 3 years
Progress of reduction of fixed costs (consolidated)(¥100 million)
0

FY2021Results

FY2022
Forecast

FY2023
Forecast△43
Total for3 years

△50

△53
△100

△¥12.6 bn
△30

△150

Restructuring (cost reduction) will enter a new phase in next
medium-term plan by introducing new accounting system
38

Step Up a Gear for Change

R＆D ＋ D＆I

Research & Development

Diversity & Inclusion

F＆R
Full recovery & Regrowth39

Sustainability Management and Value Creation
Practice of Corporate Credo ＝ CSV
Financial
capitalHumancapitalManufactured
capitalIntellectual
capitalSocialrelationshipcapitalNaturalcapitalOrganization ability

Opportunity

Management strategy

Risk

GovernanceImproveinformation
disclosure

Socialvalue

×Economic
value

Strengthen
engagement

Sustainable growth and medium- to long-term corporate value creation40

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

Create andBring to Life
“New Happiness.”

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