Financial Results for First Quarter of
2024年2月期
FiscalYear Ending第1四半期決算
February 29, 2024
<Reference data>

June 28, 2023
Create and Bring to Life “New Happiness.”

Q1 FY2023 Financial Results<Q1 Financial Summary>◆ Revenue and profits increased as Japan reclassified COVID-19
as a Class 5 disease similar to seasonal influenza, and arecovery in foot traffic and consumption is occurring including
an increase in the number of foreign tourists visiting Japan.

◆ Q1 progress against the 1H forecast was largely as expected,
both in terms of revenue and profits.
◆ No change in 1H an FY forecasts from those announce in April.
Following the reorganization on March 1, 2023, real estate has beentransferred from PARCO CO., LTD. to J. Front City Development Co., Ltd.
As a result, results have been retroactively adjusted as if the transfer took placeat the beginning of the first quarter of the fiscal year ended February 28, 2023.
2/15

Q1 (Mar – May) FY2023 Consolidated Results (IFRS)Revenue increased in all businesses, including the mainstay
department store business.
Despite higher energy costs and other expenses, business profit,
operating profit, and quarterly profit all increased in the consolidatedresults.
(Millions of yen, unless otherwise stated)
Three months
ended May 31,2023

YoYResults
Amount%Gross sales

263,818

36,653

16.1

Revenue

93,456

11,551

14.1

Gross profit

45,831

5,285

13.0

SGA

36,0002,499

7.5

Business profit

9,831

2,786

39.6

Other operating income

1,061

(199)

(15.8)

Other operating
expenses723(22)(2.9)

Operating profit

10,169

2,609

34.5

Profit attributable toowners of parent

6,397

423

7.1

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Q1 (Mar – May) FY2023 Segment Information (IFRS)(Millions of yen, unless otherwise stated)

RevenueThree months
ended
May 31, 2023

Business profit

YoY

Operating profit

YoY

Results

YoY

Results
Amount%Results
Amount%Amount%Department Store54,161 5,349

11.0

4,859 2,209

83.4

4,504

2,241

99.0

SC

14,137 1,089

8.3

2,484

203

8.9

3,148

196

6.6

Developer

16,753 3,276

24.3

1,384

625

82.3

1,615

653

67.8

3,236

82

2.6

732(280) (27.7)

686(339)(33.1)

Other13,420

45

0.3

47669

16.8

703

252

55.9

Adjustments(8,253) 1,709－(105)(39)－(487)(393)－

93,456 11,551

14.1

39.6 10,169

2,609

34.5

Payment and FinanceTotal

9,831 2,786

4/15

Segment Performance (1) Department Store Business (IFRS)Both sales and customer numbers grew due to continued strong demand forhigh-end products as well as an increase in the number of domestic tourists
and foreign visitors to Japan.
Business profit improved steadily despite an increase in expenses such as
costs proportional to sales and utility costs.
(Millions of yen, unless otherwise stated)

Three months ended
May 31, 2023

Q1 (March - May)
YoYResults

Amount%Gross sales

169,692

21,578

14.6

Revenue

54,161

5,349

11.0

Gross profit

35,206

3,940

12.6

SGA

30,3461,730

6.0

Business profit

4,859

2,209

83.4

Other operating income

84(98)(53.8)

Other operating
expenses439(131)(22.9)

Operating profit

4,504

2,241

99.0

5/15

Daimaru Matsuzakaya Department Stores Major Store Sales
Total sales for directly managed stores declined -4.0% compare to FY2019, but werehigher if duty-free sales are excluded.
Shinsaibashi, Kobe, and Nagoya stores continued to perform well. Terminal stores also(%)
improved significantly.
Three months ended
May 31, 2023d

YoY
Total

vs. FY2019

Excl. dutyfree sales

Total

Excl. dutyfree sales

Shinsaibashi

34.4

11.2

(12.1)

23.8

Umeda

20.5

15.0

(18.0)(13.2)

Tokyo

35.7

28.1

(4.9)

(6.4)

Kyoto

15.6

8.7

(3.1)

(1.6)

Kobe

8.9

8.3

14.5

15.5

Sapporo

16.4

10.8

3.6

10.0

Nagoya

10.7

9.8

3.6

6.5

Total directly managedstores (comparable stores)*

16.8

11.1

(4.0)

1.7Duty-free sales

399.5―(47.4)―*FY2019 comparisons exclude Yamashina, Shimonoseki, and Toyota stores.

6/15

Daimaru Matsuzakaya Department Stores Duty-free sales
Q1 results recovered to approx. 50% of the FY2019 level, and May results recovered toapprox. 60% on a single-month basis.
Progress exceeded the Q1 forecast.
Two-thirds of the Sales by region came from visitors not from mainland China. Goingforward, visitors to Japan, including from mainland China, are expected to increase as thenumber of flights and other factors recover.
Sales comparison by region (Total 100)

Sales compared to the pre-COVID-19 period(FY2018-2019)

20,00017,500Q1 FY2023
15,00012,50010,0007,500

FY20195,000
2,50000
Q2 2022

Q3 2022

Q4 2022

FY2022-2023

FY2018-2019

Q1 2023(Millions of yen, unlessotherwise stated)*FY2019 ratios exclude Yamashina, Shimonoseki, and Toyota store results.

20406080

Mainland China

Hong Kong

TaiwanS. Korea

ThailandSingapore

Malaysia

Other regions

100

7/15

Q1 (Mar – May) FY2023 Daimaru Matsuzakaya Department Stores SGA
The year-on-year increase in SGA was mainly due to higher expenses resulting
from increased sales and higher utility costs.
SGA was held down to approx. 1.4 billion yen compared to FY2019 due in partto the effects of structural reforms.
(Millions of yen, unless otherwise stated)

Item

Personnel
expensesThreemonths
ended
May 31,2023

7,219

YoY

vs. FY2019

0

Major reasons for YoY changes

1,044【Personnel expenses】
・Living allowance

Advertisingexpenses

2,500

217

Packing andtransportation
costs

265

(43)

(154) 【Advertising expenses】

Depreciation

5,196

(142)

(304)

8

Operational
costs

2,841

18(255)

Other9,480

1,604(1,829)

27,503

1,654(1,491)

Total SGA・Advertising and sales promotion
・Event planning and decorations【Other】
・Costs proportional to sale・Utility expenses
・Outsourcing expenses＋140＋80＋100＋330＋260＋110

8/15

Segment Performance (2) SC Business (IFRS)Sales continued to improve due to a recovery in foot traffic and an increase in store visits
by foreign visitors to Japan.
In addition to the effect of increased revenues, there was also a rise in business andoperating profits due to a gain on sales of assets and other factors.
(Millions of yen, unless otherwise stated)

Three months ended
May 31, 2023

Q1 (March - May)
YoYResults

Amount%Gross sales

69,467

9,296

15.4

Revenue

14,1371,089

8.3

Gross profit

4,736

608

14.7

SGA

2,252

405

21.9

Business profit

2,484

203

8.9

Other operating
incomeOther operating
expenses

814

56

7.4

150

63

72.5

Operating profit

3,148

196

6.6
9/15

PARCO Major Store Tenant Transaction Volume
Strong performance of Shibuya/Shinsaibashi PARCO was driven by the effect fromincreased foreign visitors to Japan.
Total store transaction volume increased by 2.8% compared to FY2019. Total comparable
stores improved to -10.7% from -15.0% in the prior fiscal year.
(Millions of yen, unless otherwise stated)

Three months ended May 31,2023

YoY

vs. FY2019

Results

Results

Sendai PARCO

18.2

(5.0)

Urawa PARCO

9.2(1.3)

Ikebukuro PARCO

18.0(15.5)

Shibuya PARCO

62.6

―

Chofu PARCO

9.1

(3.5)

Nagoya PARCO

8.5(20.3)

Shinsaibashi PARCO

52.7－Hiroshima PARCO

7.5(20.6)

Fukuoka PARCO

26.1(0.5)

Total stores

15.6

2.8

Total comparable stores*

20.4(10.7)*Comparable stores: Excludes Tsudanuma PARCO for year-on-year comparisons and Shibuya PARCO,
10/15
Shinsaibashi PARCO, Utsunomiya PARCO, Kumamoto PARCO and Tsudanuma PARCO for FY2019 comparisons.

Segment Performance (3) Developer Business (IFRS)Revenue increased at J. Front Design & Construction due to orders for largescale construction work.
Operating profit also increased due to a gain on sales of interest in real estate,etc.
(Millions of yen, unless otherwise stated)

Three months ended
May 31, 2023

Q1 (March - May)
YoYResultsAmount%

Gross sales

16,753

3,562

27.0

Revenue

16,753

3,276

24.3

Gross profit

3,182

890

38.8

SGA

1,797

264

17.3

Business profit

1,384625

82.3

Other operating
incomeOther operating
expenses

2310(0.2)

0(28)(97.1)

Operating profit

1,615

653

67.8

11/15

Segment Performance (4) Payment and Finance Business (IFRS)Revenue increased due to growth in transaction volume at department stores andexternal member stores.
Profits decreased due to a rise in bad debt write-offs, higher investment expenses forexpanding the business base, and an increase in personnel costs, etc.
(Millions of yen, unless otherwise stated)

Three months ended
May 31, 2023

Q1 (March - May)
YoYResults

Amount%Gross sales

3,236

82

2.6

Revenue

3,236

82

2.6

Gross profit

3,236

82

2.6

SGA

2,504

363

16.9

Business profit732(280)(27.7)

Other operating
incomeOther operating
expenses12(2)(13.6)

58

57－Operating profit

686

(339)

(33.1)

12/15

Consolidated Balance Sheet（IFRS）
Despite investment promotion mainly in the Developer business, total assets
decrease by 0.6 billion yen from the end of the previous fiscal year.
Financial health was strengthened by repaying interest bearing debt asplanned.
(Millions of yen, unless otherwise stated)
Total assets

Interest-bearing debt

Equity attributable to ownersof parent

1,120,953

1,120,320

Ratio of equity attributableto owners of parent

32.4 %

32.1%(633)＋0.3pt413,949(15,244)

Leaseliabilities
164,825～ ～End of Feb 2023

End of May 2023

398,705
Lease
liabilities
158,417363,011359,385＋3,626(8,836)
Bonds andborrowings
249,123

Bonds andborrowings
240,287

End of Feb 2023

End of May 2023

End of Feb 2023

End of May 2023

13/15

Consolidated Statement of Cash Flow（IFRS）
Operating cash flow was up by 11 billion yen YoY, mainly due to increased profits.
Even with investments mainly in the Developer business, Investing cash flowwas 2.2 billion yen due to proceeds from asset sales.
Free cash flow was 21 billion yen, an increase of 16.4 billion yen from theprevious year.
(Millions of yen, unless otherwise stated)
Operating CF

Investing CF

Free CF

Financing CF
Balance of cashand deposits

21,06818,856End of Feb2023
7,821

39,8744,667
2,211＜＋5,365＞

40,678＜(1,710)＞～(3,154)＜＋11,035＞

End of May2023＜＋16,401＞＜ ＞Figures in brackets represent YoY changes＜＋804＞

Q1 Results for FY ending Feb 2023
Q1 Results for FY ending Feb 2024

(18,589)(20,299)

14/15

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.

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