Financial Results for Third Quarter ofFiscal Year Ending February 28, 2021
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December 28, 2020
Create and Bring to Life “New Happiness.”

Q3 FY2020 Consolidated Results (IFRS)
Department Store was gradually recovering but came to a standstill partly due to 3rd wave of COVID-19
Parco, Real Estate, etc. covered the deficit of Department Store, thereby achieving profit in Q3 alone

Department Store sales remain uncertain but full year forecast in Oct is left unchanged because thoroughcost reduction and improvement of performance of the Group including Parco are expected(Millions of yen, %)Three months ended
November 30, 2020
YoY
Results
Change % change

Nine months ended
November 30, 2020
YoY
Results
Change % change

Gross sales

212,760(81,798)(27.8)

532,350(308,050)(36.7)

Revenue

83,228(52,874)(38.8)

230,699(131,068)(36.2)

Gross profit

37,398(13,056)(25.9)

96,849(58,264)(37.6)

SGA

35,758

(830)

(2.3)

94,959(22,544)(19.2)

Business profit

1,640(12,226)(88.2)

1,890(35,720)(95.0)

Other operating income

1,179(2,416)(67.2)

4,871(2,821)(36.7)

Other operating
expenses

666(4,927)(88.1)

25,246

16,987

205.7

Operating profit

2,153(9,714)(81.9)(18,483)(55,525)－Profit attributable toowners of parent

679(5,950)(89.8)(15,632)(36,629)

ー

Fiscal year ending
February 28, 2021

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Q3 FY2020 (Sep - Nov) Segment Information (IFRS)
Department Store: Sales of big ticket items mainly to affluent people in Japan recovered significantly but
sales of volume zone items remained sluggish
Parco:
Achieved profit despite cost increase due to acceptance of Shinsaibashi north wing
asset and opening of Shinsaibashi PARCO
Real Estate:
Achieved profit despite percentage decrease due to sales decrease
Credit and Finance: Posted operating loss due to a change in accounting method for annual membership fee
and an increase in upfront costs for new cards
Other:
Greatly affected by a decrease in reaction to special demand for J. Front Design &Construction to renovate Shinsaibashi store last year
(Millions of yen, %)Three months ended
November 30, 2020

Business profit

Operating profit

YoY

YoYResults

Change% change

ResultsChange% changeDepartment Store(942)(9,135)－(729)(4,181)－Parco917)(1,165)(55.9)

1,025)(3,239)(76.0)

1,121)(451)(28.7)

962)

(498)

(34.0)

Credit and Finance

(17)

(826)

－(0)

(816)

－Other761)(998)(56.7)

1,003)(1,206)(54.6)

Adjustments

(200)

351)

－(108)

227)－Total

1,640)(12,226)(88.2)

2,153)(9,714)(81.9)

Real Estate2

Q3 FY2020 (Sep - Nov) Daimaru Matsuzakaya Department Stores (IFRS)
Department Store sales decreased in the latter half of the quarter due to high temperature in
November and effect of 3rd wave of COVID-19
Real Estate was affected by transfer of 32 properties including Ueno FT and BINO to Parco
In total, Daimaru Matsuzakaya Department Stores achieved both business profit andoperating profit in Q3 alone(Millions of yen, %)Department Store
Real Estate
Three months
ended
YoY
YoY
November 30, 2020 Results
Results
Change % change
Change % change

Total Daimaru Matsuzakaya
Department Stores
YoYResults
Change % change

Gross sales

117,556)(35,598)(23.2)

2,724(1,717)(38.7)

120,239 (37,295)(23.7)

Revenue38,253)(16,895)(30.6)

2,724(1,722)(38.7)

40,935 (18,598)(31.2)

Gross profit

24,680)(8,540)(25.7)

1,096(1,053)(49.0)

25,736(9,572)(27.1)

SGA

25,330)

96)

0.4)

291

(285)

(49.4)

25,581

(169)

(0.7)

Business profit(650)(8,635)

－805

(767)

(48.8)

154(9,404)(98.4)

Other operating income202)

(17)

(8.0)

117

(758)

(86.6)

319(776)(70.8)

Other operating expenses

115)(4,763)(97.6)

111(877)(88.8)

226(5,640)(96.1)

Operating profit(563)(3,890)

－811

(649)

(44.4)

247(4,540)(94.8)
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Department Store Sales Trend (Directly Managed Stores)
Down 23.2% vs FY2019, down 24.1% vs FY2018 in Q3 alone (Sep to Nov), coming to asomewhat standstill
Sales to affluent customers in Japan (gaisho) are steady, mainly for big ticket items, up 6.5%
for luxury, up 9.3% for art in Q3 alone
However, inbound sales were down 96.6% in Q3 alone, remaining almost disappeared
FY2020 Daimaru Matsuzakaya Department Stores
monthly all store sales (% YoY)

(%)

0.0
vs FY2019

vs FY2018(10.0)(20.0)(30.0)(40.0)(50.0)(60.0)(70.0)(80.0)(90.0)

MarAprMayJunJulAug

SepOctNov4

Sales of Each Major Department Store
Sales of stores with a high rate of loyal customers such as Kyoto, Kobe and Nagoya
stores are relatively improving
Tokyo and Umeda stores continue to be affected by a decrease in the number of people whouse trains and work in offices
Sales of stores with a high rate of inbound sales such as Shinsaibashi and Sapporo storesremain sluggish but Shinsaibashi store shows a recovery trend due to opening of luxury
boutiques and Shinsaibashi PARCO(% YoY)
Total nine months

Fiscal year ending
February 28, 2021

Q1 results(Mar - May)Q2 results(Jun – Aug)Q3 results(Sep - Nov)

Shinsaibashi(79.9)(52.2)(39.7)(57.9)

Umeda(72.6)(28.3)(31.5)(44.1)

Tokyo(76.0)(48.1)(39.0)(54.7)

Kyoto(58.9)(24.4)(19.6)(34.1)

Kobe(63.4)(10.5)(9.5)(27.8)

Sapporo(66.4)(25.8)(25.7)(39.4)

Nagoya(58.7)(17.9)(17.1)(30.8)

Total directly
managed stores(64.1)(26.9)(23.2)(38.2)*Gross sales basis(Mar - Nov)

5

Q3 FY2020 (Sep-Nov)
Daimaru Matsuzakaya Department Stores SGA
Increased in reaction to ¥4.1 bn decrease in personnel expenses due to revision of retirement
benefit plan last year
Meanwhile, decreased depreciation by reducing investments and reviewed all expense items
including advertising expenses, outsourcing expenses and travel and transportation expenses(Millions of yen)
Item

Threemonths
ended
Nov 30, 2020

Personnelexpenses

5,4263,266)

Increased in reaction to ¥4.1 bn decrease in personnel
expenses due to revision of retirement benefit plan last year

Advertisingexpenses

2,086(878)

Cost reduction measures against sales decrease

Rent expenses

26(32)

Decrease in internal rent expenses due to transfer of Real
Estate Business to Parco

Depreciation

5,398(451)

Decreased due to investment reduction and transfer of Real
Estate Business to Parco

Operationalcosts

2,755(268)

Decrease in computer system costs

Other

9,538(1,667)

25,581(169)

Total SGAYoYchange

Main reasons for changes

Decrease in commissions, outsourcing expenses, supplies
expenses, travel and transportation expenses, etc.

6Shinsaibashi PARCO opened on November 20
Though opened in 3rd wave of COVID-19, sales are exceeding targets
Sales are strong particularly on 1st/2nd floors “Luxury” and “Mode” and 6th floor“Japan Culture”
Synergy is generated, for example, young people are spending more in adjacent
Daimaru Shinsaibashi store

TM & © TOHO CO., LTD.

7

Websitehttps://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.