Financial Results for Third Quarter ofFiscal Year Ending February 29, 2020
<Reference data>

December 26, 2019
Create and Bring to Life “New Happiness.”

3Q FY2019 Consolidated Results (IFRS)Revenue increased in all business segments excluding Department Store, i.e. Parco,
Real estate, Credit and Finance and Other
Profit increased significantly because gross profit increased due to revenue increase andSGA largely decreased in Department Store
Recovery of top line after tax hike may be slower than expected and keep unchanged Oct
forecasts by taking measures(Millions of yen, %)Fiscal year ending
February 29, 2020Three months ended November 30, 2019

Results

YoY
Change% change

Nine months ended November 30, 2019

Results

YoY
Change % change

Gross sales

294,558

27,98910.5

840,400

26,721

3.3

Revenue

136,10229,70127.9

361,767

28,1598.4

Gross profit

50,454358

0.7

155,113

66

0.0

SGA

36,588(4,155)(10.2)

117,503(3,919)(3.2)

Business profit

13,866

4,513

48.2

37,610

3,985

11.9

Other operating income

3,595

2,737

318.8

7,692

5,180

206.2

Other operating expenses

5,5935,017

870.5

8,259

5,975

261.6

Operating profit

11,867

2,232

23.2

37,042

3,189

9.4

Profit attributable toowners of parent

6,629

462

7.5

20,997(1,080)

(4.9)
1

3Q FY2019 (Sep-Nov) Segment Information (IFRS)
Department Store: Business profit significantly increased due to cost reduction but operating
profit decreased due to loss on retirement of north wing, etc.
Parco: Revenue largely increased due to sales of reserve floor area of Shibuya Parco andoperating profit largely increased due to redevelopment compensation income, etc.
Real Estate: Revenue increased but profit decreased due to cost increase associated withtransfer of north wing of Shinsaibashi store to Real Estate Business
Other: Driven by large growth due to renovation work of north wing of Shinsaibashi store
by J. Front Design & Construction(Millions of yen, %)Three months
ended
November 30, 2019

Business profit

Operating profit

YoY

YoY

Results

Change % change

Results

Change % change

Department Store

8,193

4,121

101.2

3,452(521)(13.1)

Parco

2,082

172

9.0

4,264

1,832

75.3

Real Estate

1,572(87)(5.2)

1,460(170)(10.5)

809

(82)

(9.2)

816

(77)

(8.6)

1,759

1,117

173.8

2,209

1,682

319.3

13,866

4,513

48.2

11,867

2,232

23.2

Credit and Finance

OtherTotal

2

3Q FY2019 (Sep-Nov) Daimaru Matsuzakaya Department Stores (IFRS)
Department store sales were sluggish in October and November in reaction to last-minutebuying in September before tax hikeReal Estate increased revenue due to strong performance of Ginza Six and Ueno FT, newprojects and transfer of tenants around department stores to this segment
Business profit largely increased in Department Store due to SGA reduction but
decreased in Real Estate due to cost increase associated with transfer of north wing, etc.
Three months
ended
November 30, 2019

Department Store BusinessResults

YoY
Change % change

Real Estate BusinessResults

YoY
Change % change(Millions of yen, %)Total
Daimaru Matsuzakaya
Department Stores
YoY
Results
Change % change

Gross sales

153,154 (1,678)

(1.1)

4,441

113

2.6

157,534 (1,567)(1.0)

Revenue

55,148(270)

(0.5)

4,446

165

3.8

59,533(106)(0.2)

Gross profit

33,220(298)(0.9)

2,149(59)(2.7)

35,308

(359)

(1.0)

25,234 (4,737)(15.8)

576

27

5.0

25,750 (4,710)(15.5)

Business profit

7,985

4,438

125.1

1,572

(87)

(5.2)

9,558

4,352

83.6

Other operating income

219

173

368.2

875

783

844.4

1,095

956

684.4

Other operating expenses

4,878

4,745-

988

867

713.8

5,866

5,612-

Operating profit

3,327

(133)

(3.9)

1,460

(170)

(10.5)

4,787

(304)

(6.0)
3SGA

Department Store Same-Store Sales Trend(comparison to before and after tax hike in 2014)Last-minute consumption, mainly of big-ticket items, in September before consumption tax
hike increased more than 30%, unchanged from before the previous tax hike
Reactionary decline in October immediately after tax hike remains unchanged from last time
when factoring in impact of typhoon (down 2.3 points)
Expect further growth in December and beyond but concerned about slow recovery ofconsumption by middle-income group in Japan
Daimaru Matsuzakaya Department Stores monthly same-store sales trend (% YoY)
40.0(%)

36.2
32.8

30.0
20.0
10.00.02.1
1.1

1.0
-1.5

5.1
1.2

3.6
0.2

5.6
-3.5

7.4
0.6

-0.5
-7.8
-7.8

-10.0
-20.0

-4.6

-2.8

-0.4

-1.6

-0.1

2.5
-1.0

-1.3

2014
2019

-15.3
-18.9

-30.0

4
*Months in parentheses are the months of 2014.

3Q FY2019 (Sep-Nov) Sales to Inbound Tourists
Tax-free sales in 3Q (Sep-Nov) were ¥13.8 bn, slightly down 0.5% YoY
Sales share was 9.0%, unchanged from LY, number of customers down 0.7%,
average spend per customer up 0.2%, remaining roughly flat
Sales of consumables, mainly cosmetics, up 0.7%, sales of general products down 2.1%
(Millions of yen)

<Daimaru Matsuzakaya Department Stores tax-free sales and number of customers>

8,000(People)

120,000
Sales (Millions of yen)

No. of customers (People)

7,000
100,000
6,000
80,0005,000
4,000

60,0003,000
40,0002,000
20,0001,000
005*Gross sales basis

3Q 2019 (Sep-Nov) Daimaru Matsuzakaya Department Stores
SGA, Other Operating Income, Other Operating Expenses
SGA: Reduction in personnel expenses due to changes in HR-related systems, etc. contributed to increase in business profit
3Q 2019results(¥Million)

YoYchange(¥Million)

Main reasons for changes

Personnel expenses

2,160(4,280)

Retirement benefit expenses (abolition of lump-sum transfer allowance and Second Life
Support Pension) down 4,128, etc.

Advertising expenses

2,964

418

58(4,204)

Mainly impact of IFRS 16

Depreciation

5,849

3,483

Mainly impact of IFRS 16

Operational costs

3,023253

Total SGA

25,750(4,710)ItemRent expenses

Sales promotion for opening Shinsaibashi store, app, new customer strategy, etc.

Computer system costs up 191, etc.

Other operating income and other operating expenses:
One-time costs associated with changes in HR-related systems and construction work of north wing of Shinsaibashi store

Main components of“other operating income”
Real Estate Business compensation income

3Q 2019
results(¥Million)

666

Main components of“other operating expenses”
Loss on retirement/disposal of fixed assets(north wing of Shinsaibashi store, etc.)

3Q 2019
results(¥Million)

2,241

Expansion of voluntary early retirement program

994

Revision of retirement benefit plan

870

Contribution for Shinsaibashi subway stationpassage construction

966

Cost of demolition work of part of north wing of
Shinsaibashi store

536
6Website

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

Create and Bring 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.