Financial Results for First Quarter of
Fiscal Year Ending February 28, 2021
<Reference data>

June 29, 2020
Create and Bring to Life “New Happiness.”

FY2020 Consolidated Q1 Results and Q2 Forecast (IFRS)
Q1 gross sales decreased approx. 60% affected by closure of department stores and Parco
stores due to COVID-19, etc.
Q1 operating loss of ¥27.1 bn caused by huge drop in gross profit and impairment losses of¥11.5 bn
Revised down forecasts for H1 sales, business profit, operating profit, profit from Apr forecast(Millions of yen, %)Fiscal yearending
Feb 28, 2021

Q1Results

Q2
YoY

ChangeYoY

Forecast% change

H1Change

Forecast% change

YoY
Change% change

Vs. Aprforecast
ChangeGross sales

113,438(160,564)(58.6)

198,561(73,278)(27.0)

312,000(233,841)(42.8)(125,500)

Revenue

63,459(49,023)(43.6)

76,540(36,641)(32.4)

140,000(85,664)(38.0)(42,000)

Gross profit

21,272(30,895)(59.2)

34,027(18,464)(35.2)

55,300(49,359)(47.2)(27,500)

SGA

25,152(14,539)(36.6)

38,147(3,077)(7.5)

63,300(17,615)(21.8)(17,000)

Business profit(3,879)(16,355)‐(4,120)(15,387)‐(8,000)(31,743)‐(10,500)

Other operating
incomeOther operating
expenses

800

(27)

(3.2)

2,499

(771)

(23.6)

3,300

(797)

(19.5)

2,800

24,024

23,515

‐

1,275

(881)

(40.9)

25,30022,634849.9

22,300Operating profit(27,103)(39,897)‐(2,896)(15,276)‐(30,000)(55,175)‐(30,000)

Profit attributable toowners of parent(20,334)(27,781)‐(3,365)(10,285)‐(23,700)(38,067)‐(22,700)

1Segment Information

FY2020 Q1 Results and Q2 Forecast (IFRS)
Department Store: Expect gradual sales recovery to 30% decrease in Q2 from approx. 60%
decrease in Q1 but continued loss
Parco:
Expect sales recovery to around 20% decrease in Q2 from approx. 60%
decrease in Q1 but continued loss
Expect to post profit in Real Estate, Credit and Finance, etc., but on a consolidated basis, post
loss in both Q1 and Q2(Millions of yen, %)Q1
Fiscal year ending
February 28, 2021

ResultsQ2
YoYForecast

Change % change

H1Vs. Apr
forecast
Forecast% change
Change % change Change

YoY
ChangeYoY(8,700) (20,666)

Business profit
Operating profit‐(5,200)(5,981)‐(3,300)1,400(1,971)(58.5)(1,000)‐92(968)(91.3)(138)(1,107)(88.9)

917(1,176)(56.2)

0(4,120)(15,387)‐(8,000) (31,743)‐(10,500)‐(2,643)(7,092)‐(25,800) (36,380)‐(21,100)(7,535)‐(1,172)(3,629)‐(5,300) (11,165)‐(7,700)380(1,306)(77.4)

619(3,424)(84.7)

1,000(4,729)(82.5)(1,200)Credit and Finance

72(723)(90.9)

7(287)(97.5)

80(1,009)(92.7)

(150)

Other

(174)

(1,003)

‐

603

(575)

(49.6)

429(1,579)(78.6)

(471)

Total

(27,103)(39,897)‐(2,896)(15,276)‐(30,000) (55,175)‐(30,000)

Department Store

(4,870)(11,274)‐(3,829)(9,391)

‐

Parco

443

(2,374)(84.3)(1,043)(3,606)‐(600)

Real Estate

752

(958)

(56.0)

647(1,014)(61.0)

Credit and Finance

132

(649)

(83.1)(40)(319)Other779

(69)

(8.2)

138

Total(3,879)(16,355)‐Department Store(23,156)(29,286)

Parco(4,127)

Real Estate2

Assumptions for Revision of Full Year Earnings Forecast(Differences from Apr Forecast)Gross sales (△¥205 bn vs. Apr forecast) / Revenue (△¥79 bn vs. Apr forecast)・Factor in longer than expected store closure and delay in sales recovery mainly in Department Store and Parco
・Expect Department Store sales to decrease 47% in H1, 14% in H2, inbound sales to be zero in full year
・Factor in a certain degree of easing of conditions of real estate rental income from tenants of Parco in both
H1 and H2

Cost of sales (△¥32.2 bn vs. Apr forecast) / SGA (△¥22.8 bn vs. Apr forecast)・Department Store will significantly reduce investment, further reduce SGA more than ¥10 bn by reducing
controllable costs
・Transferred fixed costs incurred during closure (cost of sales of ¥3.9 bn, SGA of ¥7.3 bn) to other expenses

Other operating income (+¥3 bn vs. Apr forecast)・Employment Adjustment Subsidy is expected to be approx. ¥2 bn in the entire Group and planned to berecorded in Q2

Other operating expenses (+¥21 bn vs. Apr forecast)・ Fixed costs of ¥11.2 bn incurred during closure (cost of sales, SGA) are recorded under other expenses
・Impairment losses of ¥11.5 bn are recorded in Department Store, Parco, Neuve A, etc. due to decline in earnings

Interest-bearing liabilities (+¥131.5 bn vs. Apr forecast)・Already collected funds via commercial papers and borrowings to increase cash on hand
3

FY2020 Consolidated Full Year Forecast (IFRS)
A certain degree of impact of COVID-19 is expected to remain on gross sales of mainly
Department Store and Parco in H2
Expect to prevent consolidated operating loss in H2 via thorough cost reduction mainly in
Department Store
Decreased interim dividend compared to last year in light of earnings but plan to keep yearend dividend at last year’s level(Interim dividend and year-end dividend are respectively ¥9 and ¥18 per share) (Millions of yen, %)H1

H2

Full year

Fiscal year
endingFeb 28, 2021

Forecast

Gross sales

312,000 (233,841)(42.8) (125,500) 493,000(94,812)(16.1)(79,500) 805,000(328,654)(29.0) (205,000)

Revenue

140,000(85,664)(38.0)(42,000) 192,000(62,956)(24.7)(37,000) 332,000(148,621)(30.9)(79,000)

Gross profit

55,300(49,359)(47.2)(27,500) 81,500(20,794)(20.3)(19,300) 136,800(70,153)(33.9)(46,800)

SGA

63,300(17,615)(21.8)(17,000) 80,500

(175)

(0.2)

(5,800) 143,800(17,790)(11.0)(22,800)

Business profit(8,000)(31,743)‐(10,500)

1,000(20,619)(95.4)(13,500)(7,000)(52,363)‐(24,000)

Other operating
incomeOther operating
expenses3,300(797)(19.5)

2,800

500(4,066)(89.0)

200

3,800(4,863)(56.1)

3,000

25,30022,634849.0

22,3001,500(9,574)(86.5)(1,300)26,80013,06095.1

21,000Operating profit(30,000)(55,175)‐(30,000)

0(15,111)‐(12,000)(30,000)(70,286)‐(42,000)

Profit attributable toowners of parent(23,700)(38,067)‐(22,700)(2,300)(9,184)‐(8,300)(26,000)(47,251)‐(31,000)

YoY
Change% change

Vs. Aprforecast
ChangeYoY
Forecast

Change% change

Vs. Aprforecast
ChangeYoY
Forecast

Change% change

Vs. Aprforecast
Change4

Segment Information

FY2020 Full Year Forecast (IFRS)
Department Store: Expect to generate both business profit and operating profit throughadditional cost reduction measures in H2
Parco:
Expect to continue to post loss, though smaller, due to easing of conditionsof real estate rent and sluggish performance of entertainment business
Other:
Expect to post profit in Daimaru Kogyo, J. Front Design & Construction, etc.
(Millions of yen, %)H1
Fiscal year ending
February 28, 2021

Forecast

Vs. Aprforecast% change Change

YoYChange

Department Store

H2(8,700) (20,666)

Forecast

Full year

YoY
Change% change

Vs. Aprforecast
ChangeForecast

Vs. Aprforecast% change Change

YoY
Change‐(5,200)1,700(12,794)(88.3)(6,300)(7,000)(33,461)‐ (11,500)

Business profit

Parco(600)(5,981)‐(3,300)(700)(3,900)‐(4,600)(1,300)(9,882)‐(7,900)Real Estate

1,400(1,971) (58.5)(1,000)(100)(1,092)

‐

(600)

1,300

(3,064) (70.2)(1,600)Credit andFinance

92(968) (91.3)(138)

65(775)(92.3)(1,405)157(1,744) (91.7)(1,543)

Other

900

(1,193) (57.0)

0550(2,282)(80.6)(1,200)1,450(3,476) (70.6)(1,200)Operating profit

Total(8,000) (31,743)‐ (10,500)

1,000(20,619)(95.4) (13,500)(7,000)(52,363)‐ (24,000)

Department Store(25,800) (36,380)‐ (21,100)

1,400(5,645)(80.1)(5,600)(24,400)(42,025)‐ (26,700)

Parco(5,300) (11,165)‐(7,700)(800)(5,757)‐(4,400)(6,100)(16,923)‐ (12,100)

1,000(4,729) (82.5)(1,200)(300)(1,296)‐(600)

700(6,025) (89.6)(1,800)Credit andFinance80(1,009) (92.7)(150)70(749)(91.5)(1,400)150(1,758) (92.1)(1,550)

Other

420

(1,588) (79.1)

(480)

540

(2,151)(79.9)(1,140)960(3,740) (79.6)(1,620)‐ (30,000)

0(15,111)‐ (12,000)(30,000)

Real Estate

Total(30,000) (55,175)(70,286)‐ (42,000)

5FY2020 Consolidated SGA Q1 Results and Q2 Forecast (IFRS)Transferred fixed costs incurred by closure of Department Store, Parco, etc. toother operating expenses in Q1(Millions of yen, %)Q1
Fiscal year ending
February 28, 2021

Q2
YoYResults

ChangeH1
YoY% change

Forecast

ChangeYoY% change

Forecast

Change% change

Vs. Aprforecast
ChangePersonnel expenses

10,832(4,355)(28.7)

14,667

(610)

(4.0)

25,500(4,964)(16.3)(4,100)Advertising expenses

1,609(1,447)(47.4)

2,290(263)(10.3)

3,900(1,710)(30.5)(1,300)

Packing andtransportation costs

326(198)(37.6)

1,073(132)(11.0)

1,400(329)(19.1)

0

Rent expenses

252(335)(57.0)

547(101)(15.6)

800(436)(35.3)(200)

Depreciation

4,333(2,905)(40.1)

6,866(1,456)(17.5)

11,200(4,361)(28.0)(4,600)Operational costs

1,282

(933)

(42.1)

2,017

(97)

(4.6)

3,300

(1,029)(23.8)(1,400)

Other

6,514

(4,367)(40.1)

10,685

(416)

(3.8)

17,200(4,783)(21.8)(5,400)

Total

25,152(14,539)(36.6)

38,147(3,077)(7.5)

63,300(17,615)(21.8) (17,000)<Components of fixed costs transferred to other operating expenses>
Q1 results

Q1 results(2,073)

Personnel expenses(1,124)

Depreciation(3,085)

Depreciation(2,017)

Rent expenses(31)

Rent expenses(16)

Other(814)Other(2,130)(7,319)Cost

SGA

Personnel expenses(3,972)

6

FY2020 Consolidated SGA Full Year Forecast (IFRS)Expect SGA to decrease over ¥15 bn from April forecast excluding technical factors oftransfer of fixed costs
YoY increase in personnel expenses in H2 includes reaction to one-time decrease of ¥4.1 bnin retirement benefit expenses
Expect depreciation to decrease due to transfer of fixed costs incurred by store closure,investment reduction, etc.
(Millions of yen, %)H1

Fiscal year ending
February 28, 2021

Forecast

H2

ChangeVs. AprYoY
forecast

Forecast

Full year

ChangeVs. Apr
YoY
forecast

Forecast

ChangeVs. AprYoY
forecast

Personnel expenses

25,500(4,964)(4,100)28,6002,185(1,600)54,100(2,780)(5,700)Advertising expenses

3,900(1,710)(1,300)5,600(519)(300)

9,500(2,229)(1,600)

Packing andtransportation expenses

1,400(329)01,700(234)(200)

3,100(564)(200)

Rent expenses

800(436)(200)

1,000(153)(30)

1,800(589)(230)

Depreciation

11,200(4,361)(4,600)13,600(1,440)(2,100)24,800(5,801)(6,700)Operational costs

3,300(1,029)(1,400)

5,100

134

(400)

8,400

(896)

(1,800)Other

17,200(4,783)(5,400)24,900(145)(1,170)42,100(4,929)(6,570)Total

63,300(17,615)(17,000)

80,500(175)(5,800)143,800(17,790)(22,800)

7Daimaru Matsuzakaya Department StoresFY2020 Q1 Results and Q2 Forecast (IFRS)Sales decreased 60% in Q1 affected by temporary closure and reduced business hours due
to COVID-19, etc.
Transferred fixed costs of ¥7.5 bn (of which SGA was ¥6.6 bn) incurred during closure toother expenses in Q1
Record Umeda and Toyota stores’ impairment losses of ¥9.7 bn in Q1 and Employment
Adjustment Subsidy of ¥1.2 bn in Q2(Millions of yen, %)Fiscal year ending
February 28, 2021

ResultsQ1Q2

H1

YoYForecast
Change % change

YoY
Change % change（単位：百万円、％）Forecast

YoY
Change % change

Vs. Apr forecast
Change % change

59,596 (103,279)
56,913 (101,566)(63.4)(64.1)

116,303
112,586(46,191)(45,556)(28.4)(28.8)

175,900
169,500(149,469)(147,122)(45.9)(46.5)(77,300)(75,200)(30.5)(30.7)

Revenue

25,143(38,423)(60.4)

45,156(18,037)(28.5)

70,300(56,459)(44.5)(28,800)(29.1)

Gross profit

13,069(23,658)(64.4)

25,530(11,565)(31.2)

38,600(35,223)(47.7)(18,500)(32.4)

SGA

16,873(12,306)(42.2)

28,026(2,087)(6.9)

44,900(14,392)(24.3)(12,800)(22.2)

Business profit(3,804)(11,352)‐(2,495)(9,477)‐(6,300)(20,830)‐(5,700)‐

Other operating
incomeOther operating
expenses

667

573

610.0

1,332

(1,217)(47.7)

2,000(643)(24.3)

1,700

566.7

18,164

17,815

‐

435

197

82.7

18,60018,013‐17,000‐Operating profit(21,302)(28,594)‐(1,597) (10,890)‐(22,900)(39,485)‐(21,000)‐

Profit(15,099)(19,968)‐(1,600)‐(16,700)(27,667)‐(14,800)‐

Gross sales[Of which: Department Store](7,697)8

Daimaru Matsuzakaya Department Stores

FY2020 Full Year Forecast (IFRS)Revised department store sales forecast to recover to only 70-plus % of last year’s level in Q2
and 80-plus % in H2
Expect SGA to decrease ¥4.7 bn from Apr forecast in H2 in spite of reaction to decrease inretirement benefit expenses last year
Expect to ensure both business profit and operating profit in H2 but not enough to cover loss
(Millions of yen, %)in H1
Fiscal yearending
Feb 28, 2021

H1Forecast

H2

YoY
Change% change

Vs. Aprforecast
ChangeFull year

YoY

Forecast
Change% change（単位：百万円、％）
Vs. AprVs. Aprforecast
ChangeForecast

YoY
Change% change

forecast
Change175,900 (149,469)
169,500 (147,122)(45.9) (77,300)(46.5) (75,200)

289,200
279,900(41,582)(42,047)(12.6)(13.1)(41,400)(39,400)

465,100
449,400(191,052)(189,169)(29.1) (118,700)(29.6) (114,600)

Revenue

70,300(56,459)(44.5) (28,800)

111,300(15,826)(12.4)(16,600)

181,600(72,286)(28.5)(45,400)

Gross profit

38,600(35,223)(47.7) (18,500)

59,500(12,587)(17.5)(11,000)

98,100(47,810)(32.8)(29,500)

SGA

44,900(14,392)(24.3) (12,800)

58,100850

1.5(4,700)103,000(13,543)(11.6)(17,500)

Business profit(6,300)(20,830)‐(5,700)1,400(13,436)(90.6)(6,300)(4,900)(34,267)‐(12,000)

Other operating
incomeOther operating
expenses

2,000(643)(24.3)

1,700

200(1,286)(86.5)

02,200(1,930)(46.7)

1,700

18,60018,013‐17,000700(7,653)(91.6)(600)

19,30010,359115.8

16,400Operating profit(22,900)(39,485)‐ (21,000)

900(7,069)(88.7)(5,700)(22,000)(46,555)‐(26,700)

Profit(16,700)(27,667)‐ (14,800)(200)(4,811)‐(3,900)(16,900)(32,478)‐(18,700)

Gross sales[Of which: Department Store]9

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

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.