Financial Results for First Quarter of
Fiscal Year Ending February 28, 2023
<Reference data>

June 30, 2022
Create and Bring to Life “New Happiness.”

Q1 FY2022 Financial Results<Q1 financial summary>◆ Revenue and profits greatly increased due to normalization of
economic activities from April, return of foot traffic, and also
rebound from store closure last year, etc.

◆ In Q1, compared to H1 forecast, revenue was slightly down but
business profit was up as a result of thorough cost management,etc.
◆ Keep full year forecast unchanged from figures released in April inlight of uncertainties in business environment, etc.

1Q1 (Mar – May) FY2022 Consolidated Results (IFRS)Sales greatly improved due to return of foot traffic, recovery of consumption from April, andalso rebound from impact of closure last year
Costs increased partly due to strategic investment and rebound from transfer of fixed costs
but profits increased due to sales improvement
Operating profit increased partly due to rebound from loss on transfer of subsidiary andtransfer of fixed costs last year
(Millions of yen, unless otherwise stated)

Three months
ended May 31, 2022

Results

YoY
Amount%Gross sales

227,16538,925)

20.7)

Revenue

81,905

7,808)

10.5)

Gross profit

40,5467,011)

20.9)

SGA

33,5011,265)

3.9)

Business profit

7,045

5,747)

442.4)

Other operating income

1,260829)

192.0)

Other operating expenses

745(4,805)(86.6)

Operating profit

7,56011,379)－Profit attributable toowners of parent

5,974

9,036)－2

Q1 (Mar – May) FY2022 Segment Information (IFRS)
Department Store:

Both customer traffic and sales steadily recovered
Revenue and profits increased partly due to rebound from closure last year
SC:
Revenue increased excluding impact of transfer of subsidiary
Profits increased partly due to rebound from loss on transfer last year
Developer:
Revenue and profits increased partly due to increase in orders for interior
construction, electrical work, etc. received by PSS
Payment and Finance: Revenue and profits increased due to increase in annual fee income and merchantfees(Millions of yen, unless otherwise stated)

Revenue

Business profit

Operating profit

Three months
ended
May 31, 2022

ResultsDepartment Store48,821)

9,112)

22.9) 2,650)

3,579－ 2,263)

6,242)－SC13,181)(605)(4.4) 2,208)722

48.6 2,880)

3,835)－Developer13,345)

1,705)

14.6)

832)

14

1.7 1,034)

158)

18.1

3,154)

819)35.1) 1,012)

944－ 1,025)

950)－

Payment and Finance

YoY
AmountYoY
Results%

AmountYoY
Results%

Amount%Other

13,375) (2,431) (15.4)

407)

183

81.5451)

258)

133.5

Adjustments(9,962)(790))

－(66)

302

－

(94)

(65)

－

Total

81,905)

7,808)

10.5) 7,045)

5,747

442.4 7,560) 11,379)－3

Q1 (Mar – May) FY2022 Consolidated SGA
Increased ¥1.0 billion in real terms excluding special factors including rebound fromtransfer of fixed costs last year and impact of transfer of subsidiary
Investment costs and costs proportional to sales increased but effect of restructuring(down ¥1.0 billion), etc. contributed(Millions of yen, unless otherwise stated)
Item

Three months
ended
May 31, 2022

Personnel
expenses

11,651(1,026)Advertisingexpenses

2,645

(16)

Packing andtransportationcosts

340(2)

Rent expenses

152(194)

YoY

Major reasons for changes

Depreciation

6,622818)

Operationalcosts

2,061538)

10,0261,145)

33,5011,265)

OtherTotal SGA【Personnel expenses】
・Rebound from transfer of fixed costs last year:Up ¥0.5 billion
・Decrease due to transfer of subsidiary:
Down ¥0.9 billion
・Effect of restructuring:
Down ¥0.6 billion【Depreciation】
・Rebound from transfer of fixed costs last year:Up ¥1.0 billion【Operational costs】
・Cost increase due to investment:

Up ¥0.6 billion【Other】
・Increase in costs proportional to sales:Up ¥0.8 billion
・Rebound from transfer of fixed costs last year:Up ¥0.4 billion
・Impact of rising prices including utilities:
Ｕｐ ¥0.3 billion
・Decrease due to transfer of subsidiary:
Down ¥0.3 billion

Up ¥1.0 billion in real terms ← Excluding special factors (up ¥0.2 billion due to transfer of fixed costs and transfer of subsidiary)4Consolidated BS (IFRS)
Total assets decreased ¥8.2 billion from end of previous fiscal year partly due to gradual rightsizing of cash and deposits
Interest-bearing liabilities (excluding lease liabilities) reduced ¥7.3 billion from end of previous
fiscal year partly due to redemption of CPs
Ratio of equity attributable to owners of parent was up 0.4 points from end of previous fiscalyear due to increase in retained earnings
Total assets

1,192,907

Interest-bearing liabilities

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

1,184,667

29.8%

29.4%

(8,240)＋0.4 pts

502,109
Lease
liabilities
184,394～ ～Feb 28, 2022

May 31, 2022

488,795(13,314)

Leaseliabilities
178,365

352,701

350,368＋2,333(7,285)
Bonds/
borrowings
317,715

Bonds/
borrowings

Feb 28, 2022

May 31, 2022

310,430

Feb 28, 2022

May 31, 2022

5(Millions of yen)Consolidated CF (IFRS)
Operating CF was ¥7.8 billion, up ¥10.2 billion YoY, to which profit recovery greatly contributed
Secured free CF of ¥4.6 billion due to change in some investment plans as well as increase inoperating CF
Reduced cash and deposits, which were reserved for COVID-19 measures, ¥13.8 billion fromend of previous fiscal year
Operating CFInvesting CFFree CF

Financing CF

Feb 28, 2022 May 31, 20227,821

93,278

4,667＜(18,006)＞(583)(2,401)(2,925)＜(229)＞

79,441～(3,154)(5,326)＜＋10,222＞

Balance of cashand deposits＜＋9,993＞＜(13,837)＞(18,589)
Figures in angle brackets represent YoY changes.

(Millions of yen)

Results for three months ended May 31, 2021
Results for three months ended May 31, 20226

Q1 (Mar - May) FY2022 Daimaru Matsuzakaya Department Stores (IFRS)
Customer traffic and sales improved due to return of foot traffic and sales measures as wellas robust spending by affluent people
SGA increased YoY partly due to rebound from transfer of fixed costs last year but
thoroughly managed costs during the period

Both business profit and operating profit were above H1 forecast(Millions of yen, unless otherwise stated)

Fiscal year ending
February 28, 2023

Q1 (March - May)
Results

YoY
Amount%Gross sales

135,383

31,563)

30.4)

Revenue

44,884

8,618)

23.8)

Gross profit

28,6406,381)

28.7)

SGA

25,8493,170)

14.0)

Business profit

2,7903,209)－Other operating income35318)

5.4)

Other operating expenses434(2,640)(85.9)

Operating profit

2,7095,867)－7

Daimaru Matsuzakaya Department Stores Domestic Sales Trends (vs. FY2019)
Domestic sales (excluding duty-free sales) greatly improved along with customer traffic from April
Decrease in total domestic sales was in 8% range in Q1, recovered to 3% range in May
Of domestic sales, credit sales increased in 7% range in Q1, cash sales excluding duty-free sales also
improved gradually
Monthly domestic sales (% change)(%)

Total domestic sales

Credit sales

Cash sales excluding duty-free sales

20

15.2
15
105

4.6

2.4

0

(3.7)
(5)

(10.6)(10)(10.6)(11.4)(15)(17.8)(20)
March(16.6)
April*Comparison of total comparable stores excluding corporate sales and head office(excluding Yamashina, Shimonoseki, and Toyota stores)

May

8

Daimaru Matsuzakaya Department Stores Major Store Sales
Domestic sales of Shinsaibashi and Kobe stores were above FY2019 level,
those of Sapporo store also improved to FY2019 level

Revenue of terminal stores (Tokyo, Umeda) increased YoY but slowlyContinue to aim to further strengthen key categories including luxury(%)

Three months ended
May 31, 2022

YoY

vs. FY2019

Total

Domestic

Total

Domestic

Shinsaibashi

56.0

52.4

(34.6)

11.3)

Umeda

57.0

57.3

(32.0)(24.5)

Tokyo

50.8

50.5

(29.9)(26.9)

Kyoto

23.8

23.4

(16.2)

(9.5)

Kobe

43.9

42.45.1)

6.6)

Sapporo

29.8

29.7

(11.0)(0.8)

Nagoya

16.1

16.1

(6.4)

(3.1)

Total directly managed stores

31.8

31.0

(18.1)(8.7)*Total is the total of comparable stores excluding corporate sales and head office.
(YoY excludes Toyota store, vs. FY2019 excludes Yamashina, Shimonoseki and Toyota stores.)9Q1 (Mar – May) FY2022 Daimaru Matsuzakaya Department Stores SGA
Major reasons for increase are rebound from transfer of fixed costs last year (¥2.2 billion), investment, andsales improvement
Though some items increased due to rising prices, total was controlled with thorough cost management
Reduced ¥3.1 billion from FY2019 partly due to effect of restructuring on personnel expenses, outsourcing
expenses, etc.
(Millions of yen, unless otherwise stated)

Item

Threemonths
ended
May 31, 2022

Personnelexpenses

7,2191,920)

1,044)

Advertisingexpenses

2,28343)(209)

Packing andtransportation
costs

30824)(111)

Rent
expenses59

YoY38)

vs.
FY2019(78)

Depreciation

5,338868)(162)

Operationalcosts

2,823518)

(273)

Other

7,817

(239)

(3,354)

Total SGA

25,8493,170)(3,145)Major reasons for YoY changes【Personnel expenses】
・Absorption of DMSA, streamlining of services
outsourced to other companies in the Group:Up ¥2.0 billion
・Rebound from transfer of fixed costs last year:Up ¥0.3 billion
・Effect of restructuring:
Down ¥0.4 billion【Depreciation】
・Rebound from transfer of fixed costs last year:Up ¥1.0 billion【Operational costs】
・Rebound from transfer of fixed costs last year:
・Cost increase due to investment:

Up ¥0.3 billion
Up ¥0.2 billion【Other】
・Increase in costs proportional to sales:Up ¥0.9 billion
・Rebound from transfer of fixed costs last year:Up ¥0.5 billion
・Impact of rising prices including utilities:
Ｕｐ ¥0.3 billion
・Absorption of DMSA, streamlining of services
outsourced to other companies in the Group: Down ¥2.0 billion

10Q1 (Mar - May) FY2022 Parco (IFRS)SC Business increased profits due to improvement of operating revenue, entertainment
subsidies, and rebound from loss on transfer last year
Developer Business decreased revenue partly due to closure of Dotonbori ZG but increased
operating profit partly due to cancellation of lease
Parco, on non-consolidated basis, increased both business profit and operating profit(Millions of yen, unless otherwise stated)

Three months
ended
May 31, 2022

SC BusinessResultsYoY
AmountDeveloper BusinessResults%

Total Parco

YoY
Amount%Results

YoY
Amount%Gross sales

60,018

11,043)

22.5)

1,725

(310)

(15.2)

61,743 10,733)

21.0)

Operating revenue

13,167

1,754)

15.4)

1,725

(310)

(15.2)

14,892

1,444)

10.7)

Operating costs

9,145

1,237)

15.6)

784

(93)

(10.6)

9,930

1,145)

13.0)

Operating gross profit

4,021517)

14.7)

940

(217)

(18.7)

4,962300)

6.4)

SGA

1,81427)1.5)514(94)(15.5)

2,329(67)(2.8)

Business profit

2,206490)

28.5)426(123)(22.4)

2,632366)

16.2)

Other operating income758639) 537.1)

224134)147.8)

983774)368.8)

Other operatingexpenses

87(2,923)(97.1)

279)

45.2)

114(2,915)(96.2)

Operating profit

2,877

4,051)

－623

3)

0.4)

3,5014,054)－11

Parco Stores Monthly Tenant Transaction Volume Trends (vs. FY2019)
Decreased by double digits on comparable store basis but customer traffic and tenant transaction volume
greatly improved from April
Recovered to 7% range decrease in total all stores including Shibuya and Shinsaibashi PARCO andto 1% range decrease in total urban complexes
Strive to strengthen revenue with strategic investment in flagship stores in addition to strong performance of
Shibuya and Shinsaibashi
Q1 monthly tenant transaction volume (% changes vs. FY2019)(%)
All stores

5

Comparable stores(2.3)

0Urban complex group

(1.4)

(5)

(7.4)
(7.0)

(10)

(14.3)(15)(18.9)(20)(18.3)(18.1)(25)(29.3)(30)
MarchAprilMay*Total urban complex group excludes the results of Shintokorozawa PARCO, Tsudanuma PARCO, Hibarigaoka PARCO, Matsumoto PARCO, Utsunomiya
PARCO, and Kumamoto PARCO.
*Total comparable stores excludes the results of Shibuya PARCO, Shinsaibashi PARCO, the 1st basement and cinema complex of PARCO_ya Ueno,
Utsunomiya PARCO, and Kumamoto PARCO.

12

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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.