Financial Results for First Three Months ofFiscal Year Ending February 28, 2019
<Reference data>

June 28, 2018
Create and Bring to Life “New Happiness.”

1Q FY2018 Consolidated Results (IFRS)Good start of current FY driven by Department Store Business and Real Estate BusinessBusiness profit increased by double digits, operating profit edged up in spite of absence ofgain on sales of real estate recorded in LY
Keep unchanged Apr forecasts for business profit / operating profit / profit attributable toowners of parent(Millions of yen, %)Fiscal year ending
February 28, 2019

1QResults

1H
YoY

Change% change

Apr forecastChange

YoY% change

Gross sales

269,879(5,181)(1.9)

557,000(1,304)(0.2)

Sales revenue

111,073(3,011)(2.6)

234,000(510)(0.2)

Gross profit

51,745319

0.6

106,300

1,312

1.2

SGA

39,449(964)(2.4)

82,000(210)(0.3)

Business profit

12,295

1,283

11.6

24,300

1,522

6.7

Other operating income

983(1,835)(65.1)

1,100(4,586)(80.7)

Other operating expense

280(558)(66.5)

1,400(384)(21.6)

Operating profit

12,99860.024,000(2,680)(10.0)

Profit attributable toowners of parent

8,342(378)(4.3)

15,300(1,015)(6.2)
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1Q FY2018 Segment Information (IFRS)
Department Store Business: Strong sales of urban stores due to active spending by inboundtourists and the affluent
Real Estate Business: Full operation of Ginza Six and Ueno Frontier Tower, transfer oftenants around Kobe store to this segment
Parco Business: Profit was down partly due to absence of reversal of allowance associatedwith Otsu Parco recorded in LY(Millions of yen, %)First three months offiscal year ending
February 28, 2019Business profit

Operating profit

YoYResults

YoY

Change% change

ResultsChange% change

Department Store

6,674924

16.1

6,850(220)

(3.1)

Parco

2,283(524)(18.7)

2,750(747)(21.4)

Real Estate

1,565

1,082

223.5

1,607

1,170

267.3

734(87)(10.7)

738(83)(10.1)

733(282)(27.8)

725(280)(27.8)

12,295

1,283

11.6

12,99860.0Credit and Finance
OtherTotal

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1Q FY2018 Segment Information (IFRS)
1Q FY2018 analysis of changes in consolidated business profit / operating profit by segment(Millions of yen）

RealEstateCreditandFinance

Department
StoreDepartment
Store
Parco

1Q LY
resultsCredit
andRealEstate Finance

Adjustment
Other

Other Adjustment

Parco

Business profit

Operating profit

Up ¥1,283 mn (11.6%) YoY

Up ¥6 mn (0.0%) YoY

1Q TY
results

1Q LY
results

1Q TY
results32

1Q FY2018 Daimaru Matsuzakaya Department Stores (IFRS)
LFL gross sales increased for 15 months in a row driven by spending byinbound tourists and the affluent
Full operation of newly opened Ginza Six and Ueno Frontier Tower
Tenants around Kobe store transferred to Real Estate Business
Strong business profit with two-digit growth in Department Store Business /threefold growth in Real Estate Business, up 30% in total(Millions of yen, %)monthsDepartment
Store ofBusinessFirst three months ofFirst threefiscal year ending fiscal year endingYoY
Results
February 28, 2019 February
28, 2019
Change% change

Total
Daimaru Matsuzakaya Department Stores

Real Estate BusinessResults

YoY
Change% change

Results

YoY
Change% change

Gross sales

158,158

4,649

3.0

4,191

1,618

62.9

162,290

6,228

4.0

Sales revenue

58,966

2,614

4.6

4,143

1,676

67.9

63,0504,250

7.2

Gross profit

34,708

1,043

3.1

2,198

990

82.0

36,742

1,888

5.4

105

0.4

632

(92)

(12.7)

29,063

(132)

(0.4)

SGA

28,595Business profit

6,113

938

18.1

1,565

1,082

224.0

7,678

2,019

35.7

Other operating income

289(1,234)(81.0)

58(199)(77.4)

347(1,433)(80.5)

Other operating expense

123(63)(33.9)

17(287)(94.4)

140(350)(71.3)

Operating profit

6,278

(233)

(3.6)

1,607

1,170

267.7

7,885

936

13.54

1Q FY2018 Daimaru Matsuzakaya Department Stores SGA
In spite of cost rise pressure in many cases, thorough cost control in total
First three months offiscal year ending
February 28, 2019

Results

ChangeChange(%)

Main causes of changes(Millions of yen)

(Millions of yen)

Personnel

6,357

(75)

(1.2)

Personnel structure reform, attrition, etc.

Advertising

2,269

(359)

(13.6)

Absence of promotions for Ginza Six and300th anniversary conducted in LY

Packagingand delivery

358(72)(16.9)

Revision of delivery charges on customers

Rent4,164(287)(6.4)

Closing of Daimaru Urawa Parco, tenantsaround a store placed under fixed-term lease

Depreciation

2,115

19

0.9

Increase in capital expenditures (safety andsecurity, etc.)

Operation

2,370

83

3.6

Operation costs for facilities, computer
systems, etc.

Other

11,428560

5.2

Increase in supplies expenses (utility costs),
etc.

Total

29,063(132)

(0.4)
53

1Q FY2018 Sales to Inbound Tourists
Success of sales floor renovation, acceptance of mobile payments, stronger
promotion to attract inbound tourists
Tax-free sales in 1Q: ¥14.6 bn, up 58.3% YoY, sales share above 9%
Number of customers up 53.2%, sales of cosmetics up 82.3%, luxury up 64.4%,timepieces up 83.0%<Daimaru Matsuzakaya Department Stores tax-free sales and number of customers>

Number of customers

Sales

6Year / Month*Gross sales basis

Websitehttp://www.j-front-retailing.com
http://www.facebook.com/J.FrontRetailing

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 potentialrisks, 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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