Financial Results for Third Quarter ofFiscal Year Ending February 28, 2023
< Reference data >December 27, 2022
Create and Bring to Life “New Happiness.”

Q3 FY2022 Financial Results< Summary of Q3 (Sep - Nov) consolidated financial results >◆ The degree of recovery varies by business, but progress wasmade in line with the business plan for the fiscal year

◆ Revenue increased mainly due to steady recovery of sales ofDepartment Store Business◆ Profit increased due to an increase in revenue despite anincrease in costs such as variable costs and investment costs

1Q3 FY2022 Consolidated Results (IFRS)Revenue increased mainly due to recovery of domestic sales and duty-free sales inDepartment Store BusinessProfit increased despite an increase in costs including variable costs such as commissions
and utilities expenses and investment costs
Profit decreased in reaction to a decrease in tax expenses last year (¥2.1 bn)(Millions of yen, unless otherwise stated)

Fiscal year
endingFebruary 28, 2023
Gross sales

Q3(September - November)
YoYResults
Amount%245,33726,512)
12.1)

Cumulative Q3(March - November)
YoY
Results
Amount%709,468
93,298)
15.1)

Revenue

87,811

7,665)

9.6)

256,941

19,462)8.2)

Gross profit

42,384

4,160)

10.9)

125,245

17,327)

16.1)

SGA

35,3542,359)

7.1)

104,586

5,552)

5.6)

Business profit

7,029

1,801)

34.5)

20,659

11,776)

132.6)

Other operating income

438

(892)

(67.0)

2,758(229)(7.7)

Other operating expenses

605

(157)

(20.6)

3,317(4,146)(55.6)

Operating profit

6,8621,066)

18.4)

20,10015,693)356.1)

Profit attributable toowners of parent

4,606(1,059)(18.7)

14,76211,093)

302.3)

2

Segment Performance (1) Department Store Business (IFRS)Sales increased steadily partly due to renovations in luxury, etc. and recovery of customer traffic

Business profit increased despite an increase in costs such as commissions, advertising expenses, andinvestment-related costs
Operating profit also increased despite the absence of the subsidy for following business suspension
requests last year (¥0.3 bn)
Revenue

Business profit
50,32846,178Operating profit
2,696

3,079

1,757
1,566

Q3 FY2021
Results

Q3 FY2022
Results

Q3 FY2021
Results

Q3 FY2021
Results

Q3 FY2022
Results

Q3 FY2022
Results(Millions of yen, unless otherwise stated)

Q3 of fiscal year
endingFebruary 28, 2023
Gross sales
Revenue
SGA
Business profit
Operating profit

Q3 (Sep - Nov)
Results
158,993
50,32829,795
3,079
2,696

Cumulative Q3 (Mar - Nov)

YoY
Amount17,636
4,150
1,595
1,513
939

%
12.5
9.0
5.7
96.7
53.4

Results
464,233
151,938
88,205
8,810
6,509

YoY
Amount75,125
19,276
5,936
8,752
9,318

%
19.314.5
7.2－－3

Daimaru Matsuzakaya Department Stores Major Store Sales
Steady sales compared to Oct forecast, mainly in Kobe and Shinsaibashi, where sales of luxury goods arestrong
The speed of recovery of terminal stores improved mainly due to an increase in foot traffic, though slowly
Domestic sales and duty-free sales recovered to a decease of 2.3% and a decrease of 60.5%, respectively,compared to FY2019(%)
Q3 (Sep - Nov) of
fiscal year ending
February 28, 2023

ResultsForecast

ResultsForecast

Shinsaibashi

26.2

17.5

(13.6)(19.6)

Umeda

10.0

7.7

(21.8)(23.4)

Tokyo

25.5

16.3

(16.2)(22.4)

Kyoto

14.4

10.6

(7.0)

(10.1)

Kobe

9.3

5.69.8)6.0)

Sapporo

15.9

13.2

(1.8)

(4.1)

Nagoya

11.1

9.5

(1.9)

(3.3)

Total directly managed stores(comparable stores)

13.5

9.7

(7.7)

(10.7)

Excluding duty-free sales

9.9

7.1

(2.3)

(5.0)

Duty-free sales

518.6

386.8

(60.5)(68.9)

YoY

Comparison to FY2019*Total directly managed stores excludes corporations and head office.
YoY excludes the results of Toyota store and comparison to FY2019 excludes the results of Yamashina, Shimonoseki, and Toyota stores.

4

Daimaru Matsuzakaya Department Stores SGA Analysis (IFRS)
Increased ¥2.6 bn mainly due to soaring utilities expenses and an increase in investmentrelated and other costs as well as an increase in personnel expenses, commissions, andadvertising expenses for outside event planning, etc. resulting from business recovery
Restructuring such as review of personnel expenses and outsourcing and return of leased
properties resulted in a decrease of ¥0.9 bn
・Increase in bonuses (¥0.5 bn)
・Increase in overtime and staffing costs (¥0.2 bn)
・Increase due to shift to insourcing (¥0.4 bn)
・Effect of restructuring (down ¥0.7 bn)

415
438
Ad
expenses
Personnel
expenses

25,353(Millions of yen)・Increase in system investments

39

△(24)
24

Rent
Packing andtransportation expenses
costs

59

111

Depreciation

Operational
costs

501
Other SGA

・Increase in outside event planning,
ad expenses

・Increase in commissions due to sales increase (¥0.4 bn)
・Increase in supplies expenses mainly due to rising utilities expenses (¥0.3 bn)
・Increase in costs due to store investments (¥0.2 bn)
・Decrease due to shift to insourcing (down ¥0.4 bn)
・Effect of restructuring (down ¥0.1 bn)

26,892Up ¥1,539 million YoY
Q3 LY
Results

Q3 TY
Results

5

Segment Performance (2) SC Business (IFRS)Revenue increased, though slowly, mainly due to renovations and strengthening of promotions in stores
Business profit and operating profit increased despite an increase in utilities expenses, etc.
¥1.5 bn of easing of conditions was eliminated in cumulative Q3, and ¥1.8 bn is expected to be eliminatedin the current fiscal year
Revenue

Business profit
13,402

12,580Operating profit

1,715

1,997

1,555
1,647

Q3 FY2021
Results

Q3 FY2022
Results

Q3 FY2021
Results

Q3 FY2021
Results

Q3 FY2022
Results

Q3 FY2022
Results(Millions of yen, unless otherwise stated)

Q3 of fiscal year
endingFebruary 28, 2023
Gross sales
Revenue
SGA
Business profit
Operating profit

Q3 (Sep - Nov)
Results
62,90813,402
2,031
1,715
1,997Cumulative Q3 (Mar - Nov)

YoY
Amount
7,380
822
174
160
350

%
13.3
6.5
9.3
10.3
21.2

Results
182,751
40,057
5,893
5,721
6,858

YoY
Amount24,243)712)(1,283)
1,444)
4,754)

%
15.3)
1.8)
(17.9)
33.8)
226.0)

6

PARCO Major Store Tenant Transaction Volume
Shibuya and Shinsaibashi PARCO continued to perform well, and recently duty-free transaction volume isalso increasing
Ikebukuro and Nagoya PARCO recovered to the same level as the plan in Q3 partly due to renovations
The pace of recovery in provincial stores such as Sendai and Hiroshima PARCO remains slow
(Millions of yen, unless otherwise stated)

Fiscal year ending
February 28, 2023

YoY
Q1

Q2

Comparison to FY2019
Q3

Q1

Q2

Q3

Sendai PARCO

25.7

17.0

13.6

(19.7)(16.0)(9.1)

Urawa PARCO

4.9

12.3

10.4

(9.6)

(6.6)

(5.3)

Ikebukuro PARCO

47.0

24.2

26.2

(28.4)(25.5)(16.5)

Shibuya PARCO

62.6

21.2

25.3

－－－

Chofu PARCO

25.5

15.2

9.3

(11.6)

(5.1)

(5.3)

Nagoya PARCO

18.0

13.1

18.1

(26.5)(22.4)(18.9)

Shinsaibashi PARCO

56.7

13.0

22.1

－－－

Hiroshima PARCO

13.8

16.2

3.2

(26.2)(19.9)(18.9)

Fukuoka PARCO

11.5

13.4

13.5

(21.1)(19.8)(3.9)

Total all stores

21.3

14.4

13.4

(11.1)

(5.3)

(0.6)

Total comparable stores

21.3

14.4

13.4

(21.7)(18.1)(13.1)*Comparable stores: Comparison to FY2019 excludes the results of Shibuya PARCO, Shinsaibashi PARCO, Utsunomiya PARCO, andKumamoto PARCO.

7

Segment Performance (3) Developer Business (IFRS)Revenue increased due to an increase in construction orders received by J. Front Design & Construction forrenovation works at department stores
Profit decreased mainly due to the closure of Dotonbori ZG and the absence of gain on sale of fixed assets
last year, but progress was made as planned
Project in Fukuoka Tenjin area will be considered, in addition to development in Nagoya and Shinsaibashi
Business profit

Revenue

Operating profit
1,298

1,070

14,231
12,707809

762

Q3 FY2021
Results

Q3 FY2022
Results

Q3 FY2021
Results

Q3 FY2022
Results

Q3 FY2021
Results

Q3 FY2022
Results(Millions of yen, unless otherwise stated)

Q3 of fiscal year
endingFebruary 28, 2023
Gross sales
RevenueSGA
Business profit
Operating profit

Q3 (Sep - Nov)
Results
14,231
14,231
1,686809
762

Cumulative Q3 (Mar - Nov)

YoY
Amount
1,533)
1,524)
123)
(261)
(536)

%
12.1)
12.0)
7.9)
(24.4)(41.3)

Results
40,05340,053
4,869
2,361
2,549

YoY
Amount(1,552)
1,608)
4)
(436)
(557)

%
(3.7)
4.2)
0.1)
(15.6)(17.9)

8

Segment Performance (4) Payment and Finance Business (IFRS)Revenue increased mainly due to an increase in annual fees, recovery of transaction volume atdepartment stores and outside merchants

Both business profit and operating profit increased despite cost increase resulting fromacquiring and system investments
Business profit

Revenue

Operating profit
1,099

1,086

3,395
2,978664

649

Q3 FY2021
Results

Q3 FY2022
Results

Q3 FY2021
Results

Q3 FY2021
Results

Q3 FY2022
Results

Q3 FY2022
Results(Millions of yen, unless otherwise stated)

Q3 of fiscal year
endingFebruary 28, 2023
Gross sales
Revenue
SGA
Business profit
Operating profit

Q3 (Sep - Nov)
Results
3,395
3,395
2,295
1,099
1,086

Cumulative Q3 (Mar - Nov)

YoY
Amount417)
417)
(34)
450)
422)

%14.0)
14.0)
(1.4)
69.3)
63.4)

Results
9,709
9,709
6,778
2,931
2,940

YoY
Amount
1,778)
1,778)(28)
1,806)
1,769)%22.4)
22.4)(0.4)
160.4)
150.9)

9

Segment Performance (5) Other (IFRS)Revenue decreased due to the exclusion of Dimples’ from consolidation,
wholesale business (Daimaru Kogyo) performed well in its automotive department
SGA decreased ¥0.4 bn due to the impact of Dimples’, other companies also curbed costs
Profit continued to increase due to an increase in revenue of wholesale business
Revenue
14,446

Operating profit

Business profit

42442338738814,124328322

Q3 FY2021
Results

Q3 FY2022
Results

Q3 FY2021
Results

Q3 FY2021
Results

Q3 FY2022
Results

Q3 FY2022
Results(Millions of yen, unless otherwise stated)

Q3 of fiscal year
endingFebruary 28, 2023
Gross sales
Revenue
SGA
Business profit
Operating profit

Q3 (Sep - Nov)
Results
14,464
14,1244,559
387423Cumulative Q3 (Mar - Nov)

YoY
Amount(1,502)
(322)
(480)
65)
95)

%(9.4)
(2.2)
(9.5)
20.4)
29.1)

Results
41,85640,802
14,846
1,037
1,193

YoY
Amount(6,779)(5,102)(1,109)223)
426)%(13.9)(11.1)
(7.0)
27.3)
55.4)

10

Consolidated BS (IFRS)
Total assets decreased ¥25.1 bn from the end of the previous fiscal year mainly due to adecrease in the balance of cash and deposits
Interest-bearing liabilities decreased ¥61.4 bn from the end of the previous fiscal year mainlydue to repayments of bonds and borrowings
Ratio of equity attributable to owners of parent increased ¥7.4 bn from the end of the previous
fiscal year
Total assets

Interest-bearing liabilities

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

1,192,907

1,167,723

30.6%

29.4%

△25,184(25,184)＋1.2 pts

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

Nov 30, 2022

440,648△61,461(61,461)

Bonds/borrowings
317,715

Feb 28, 2022

Leaseliabilities
168,248357,770

350,368＋7,402Bonds/borrowings
272,400

Nov 30, 2022

Feb 28, 2022

Nov 30, 2022

11(Millions of yen)Consolidated CF (IFRS, Mar – Nov)
Net cash provided by operating activities was ¥46.7 bn due to profit recovery
Net cash used in investing activities was ¥11.8 bn mainly due to store renovations and digital
investments
Net cash used in financing activities was ¥75.0 bn due to repayments of interest-bearing
liabilities made to reduce cash and deposits
Operating CF

Investing CFFree CF

Financing CF

46,799Feb 28, 2022 Nov 30, 2022

37,14334,92628,996
28,997(3,727) >><< △3,727< ＋9,656 >Balance ofcash and deposits

93,278(42,321) >><<△42,321△ 8,146(8,146)△(11,873)
11,873<< ＋5,929＋5,930 >>△ 32,682(32,682)

53,456～<<△39,822(39,822) >>Cumulative Q3 of FY ended Feb 28, 2022

Cumulative Q3 of FY ending Feb 28, 2023△
75,003(75,003)
Figures in angle brackets represent YoY changes.
(Millions of yen)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.