FY2014-2016Medium-term Business PlanBecome a True Multifaceted Retailerby Improving the Foundations for GrowthJ. Front Retailing is planning to complete the Ginza 6-chome District 10Holdings and Forest. Thereby we will improve corporate value and generateRedevelopment Project in 2016 and open the south wing of Matsuzakaya Uenofunds for growth in 2017 and beyond.

store, which is being rebuilt, in 2017.

In addition, using the Group s management resources, we will work to build theTherefore, during the period from FY 2014 to 2016, in anticipation of progressfoundations of the business model, which places stores at its core and allows usin 2017 and beyond, we will further advance our eﬀorts to establish a newto grow along with local communities (Urban Dominant Strategy), and to promotedepartment store model while meeting a wide range of customer needs andomnichannel retailing. They are expected to grow in the medium- and long-term.

drastically enhancing the Group s competitiveness and proﬁtability byWe will also actively address M&A and business alliance with externalstrengthening our eﬀorts as a multifaceted retailer including Parco, StylingLifeorganizations to broaden our business as a multifaceted retailer.

FY 2016 targetFY 2016 targetFY 2016 targetConsolidated operating incomeROEROA¥50 billionFY 2014 - 2016FY 2014 - 2016Operating cash ﬂowsCapital investment / growth investment¥130 billion or more◇Operating income / ROE4.8%5.8%¥110 billionOperating income

ROEROE 8.0%（Millions of yen）

90,0009.08.980,000

5.820,000

7.05.85.3

50,00040,00030,0008.07.2

70,00060,000

2.614

5.0
3.02.82.0

10,0000

6.04.03.6
2.3（%）

1.0FY
FY2008 2009FY
2010FY
2011FY
2012FY
2013FY
2014FY
2015FY
2016FY2017(forecast) (forecast) and beyond0.0◇Drastically enhance competitiveness and proﬁtability of each business and spread business wingsDepartment Store BusinessParco Business■Establish a new department store model and clarify store strategies■Enlarge and newly develop Parco storesWe will accelerate our initiatives to establish a new department storemodel with the aim of creating attractive stores favored by a wide rangeof customers and a highly proﬁtable business model. Each store willidentify the needs of local market and customers and implement thestore strategy to become more competitive in the local area.

After Fukuoka Parco opened the new building (fall 2014) andincreased the ﬂoor area of the main building (spring 2015), wewill develop Sendai New Annex (tentative name), the secondstore in the Sendai area, aiming to open in spring 2016.

《Four key stores》Matsuzakaya Nagoya, Daimaru Tokyo, Daimaru Sapporo and Daimaru Kobe■Develop wealthy consumer marketsWe will provide extensive values including not just traditional merchandise categoriesbut services to wealthy consumer markets, which will be broadened in the future.
Using the Otokuisama Gold Card, which was converted into a credit card, as a strongtool, we will ﬁnd new customers mainly among the new rich in urban areas.

■Better meet the demand from inbound tourists■Expand Zero Gate businessFollowing the opening of Nagoya Zero Gate last year, we aim to developseven or more stores in Sapporo (spring 2016) and other areas during theperiod for the current Medium-term Business Plan by promoting speedydevelopment that meets commercial demands in urban areas.

■Actively renovate storesParco will renovate around 15% of its retail spaceevery year and always provide fresh information thatmeets changing and diversifying consumer needs toattract more customers and increase sales.

We will actively serve foreign tourists to Japan, which are considerablyincreasing in number recently, and strengthen the measures to attractthem by expanding our range of products and services and using digitalmeasures and foreign media in an eﬀort to boost sales to foreign tourists.

M&A / allianceDaimaru Tokyo storeIn April 2015, the Company announced a capital and businessalliance with Senshukai Co., Ltd., and in May, Senshukai wasconverted into an associate accounted for using equity method(investment ratio: 22.62%). We will strengthen our departmentstore s original merchandising using their product developmentcapabilities and expand our e-commerce business sales andearnings using their expertise in e-commerce operations.

Matsuzakaya Nagoya storeFukuoka ParcoNagoya Zero GateCatalogs of Senshukai◇Build the foundations of the business model for growing along with local communities■Redevelop the Ginza 6-chome District 10(Scheduled to open in November 2016)We strive to create a new commercial facility suitedfor Ginza, which has visitors from all over the world,and we will operate all commercial ﬂoors in anintegrated manner with other commercial ﬂoor owners.

■Rebuild the south wing of Matsuzakaya Ueno store

ShinsaibashiZero Gate

White Avenue(Daimaru COM Development)MainSouthCommercial complex(Daimaru COM Development)Open in spring 2015(Under development)●denotes the stores operatedby Daimaru Shinsaibashi store.

NagoyaZero Gate

MainSouthNagoya WestParco

Hisaya-odoriDaimaruShinsaibashiNorthMatsuzakayaNagoyaOtsu-doriNorthShinsaibashisujiWe will rebuild the south wing of Ueno store into ahigh-rise complex consisting of Parco, a cinema complexand sophisticated oﬃce facilities, all of which are new inthe Ueno Okachimachi area, to draw new crowds.

Crysta Nagahori (Daimaru COM Development)Midosuji(Scheduled to open in fall 2017)■Areas we consider redeveloping: Shinsaibashi area / Nagoya areaIn order to drastically strengthen competitiveness in increasingly competitive areas, we will moveforward with the realization of redevelopment projects, which are centered on our departmentstores in the areas and involves the use of the surrounding real estates and commercial facilities.

EastNagoyaParco MidiSouth◇ Promote omnichannel retailingStrengths ofreal storesVirtualtouch points
ＥＣOFFLINEBlogSeamless accessto and from customers

ONLINEＳＮＳEmailWith the aim of establishing predominance over thecompetition in the mid- to long-term, we will raise the levelof customer support of the Group centered on retail storesin key urban areas, oﬀer products, services and informationsimilarly online and in physical stores, thus realizingﬁne-tuned response to our customers by providingseamless access to and from them anytime, anywhere.

15一■Group CompaniesDep art ment S tore Bus inessDa i maru Matsuzakaya De pa rtment Stores Co. Ltd.
•Location: 18-11, Kiba 2-chome, Koto-ku, Tokyo 135-0042•Capital: ¥10,000 million •Investment ratio: 100%http://www.daimaru-matsuzakaya.comDa imaru Osaka Sh i nsa i bash i Store•Location: 7-1, Shinsaibashisuji 1-chome, Chuo-ku, Osaka 542-8501•Phone: +81-6-6271-1231 •Opened (Present location): November 1726Da imaru Osaka Umeda StoreLocation: 1-1, Umeda 3-chome, K ita-ku, Osaka 530-8202•Phone: +81-6-6343-1231 •Opened: April 1983●Da imaru Tokyo Store•Location: 9-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-6701•Phone: +81-3-3212-8011 •Opened: October 1954Da imaru Kyoto Store•Location: 79, Shijo Takakura, Shimogyo-ku, Kyoto 600-8511•Phone: +81-75-211-8111 •Opened (Present location): October 1912Da imaru Kobe Store•Location: 40, Akashimachi, Chuo-ku, Kobe, H yogo 650-0037•Phone: +81-78-331-8121 •Opened (Present location): April 1927Da imaru Urawa Parco Store•Loca tion: 1st Basement Fl., Urawa Parco, 11-1, H igashitakasago-cho,Urawa-ku, Saitama 330-0055•Phone: +81-48-615-6000 •Opened: October 2007Da imaru Yamash i na Store•Location: 91, Takehana Takenokaido-cho, Yamashina-ku, Kyoto 607-8080•Phone: +81-75-255-7365 •Opened: October 1998Da imaru Suma Store•Location: 2-4, Nakaochiai 2-chome, Suma-ku, Kobe, H yogo 654-0154•Phone: +81-78-791-3111 •Opened: March 1980Da imaru Ash iya Store•Loca tion: 1-31, Funato-cho, Ashiya, H yogo 659-0093•Phone: +81-797-34-2111 •Opened: October 1980Matsuzakaya Sh i zuoka Store•Loca tion: 10-2, Miyuki-cho, Aoi-ku, Shizuoka 420-8560•Phone: +81-54-254-1111 •Opened: November 1932Da i maru Sapporo StoreLocation: 7, Nishi 4-chome, Kita 5-jo, Chuo-ku, Sapporo, Hokkaido 060-0005 Matsuzakaya Takatsuk i Store•Loca tion: 2-1, Konyamach i, Takatsuki, Osaka 569-8522•Phone: +81-11-828-1111 •Opened: March 2003•Phone: +81-72-682-1111 •Opened: November 1979Matsuzakaya Nagoya StoreMatsuzakaya Toyota Store•Location: 16-1, Sakae 3-chome, Naka-ku, Nago ya, Aichi 460-8430•Loca tion: 85-1, Nishimachi 6-chome, Toyota, Aich i 471-8560•Phone: +81-52-251-1111 •Opened: March 1910•Phone: +81-565-37-1111 •Opened: October 2001Matsuzakaya Ueno Store•Location: 29-5, Ueno 3-chome, Taito-ku, Tokyo 110-8503•Phone: +81-3-3832-1111 •Opened: April 1768●The Hakata Da i maru, Inc.
•Location: 4-1, Tenjin 1-chome, Chuo-ku, Fukuoka 810-8717•Phone: +81-92-712-8181 •Capital: ¥3,037 million •Investment ratio: 69.9%http://www.daimaru.eo.jp/fukuoka/index.htmlKoch i Da i maru Co., Ltd.
•Loca tion: 6-1, Obiyamachi 1-chome, Kochi 780-8566•Phone: +81-88-822-5111 •Capital: ¥300 million •Inves tment ratio: 100%http://www.kochi-daimaru.eo.jp/The Sh i monosek i Da i maru, Inc.
•Location: 4-10, Takezaki-cho 4-chome, Shimonosek i, Yamaguchi 750-8503•Phone: +81-83-232-1111 •Capital: ¥480 million •Investment ratio: 100%http://shimonoseki.daimaru.co.jp/Tottor i Da i maru Co., Ltd.
•Loca tion: 151, lmamachi 2-chome, Tottori 680-8601•Phone: +81-857-25-2111 •Ca pital: ¥180 million •Investment ratio: 14%http://www.daimaru-tottori. co.jp/

Parco BusinessParco Co., Ltd. (Shopping com p lex business)• Location: Sh ibuya First Place Bldg., 8-16, Sh insen-cho, Sh ibuya-ku, Tokyo 150-0045•Phone: +81-3-3477-5710 •Capital: ¥34,367 million •Investment ratio: 64.9%Parco Space Systems Co., Ltd. (Space engineering and management business)•Location: Shibuya Fi『st Place Bldg., 8-16, Shinsen-cho, Shibuya-ku, Tokyo 150-0045•Phone: +81-3-5459-6811 •Capital: ¥490 million •Inves tment ratio: 64.9%Parco (Si ngapore) Pte Ltd. (Shoppi ng com p lex business)Location: 10 Anson Road #09-05/06 International Plaza Singapore 079903•Phone: +65-6595-9100 •Capital: S$15 million •Investment ratio: 64.9%Parco-City Co., Ltd. (Internet-related busi ness)•Location: Shibuya First Place Bldg., 8-16, Shinsen-cho, Shibuya-ku, Tokyo 150-0045•Phone: +81-3-3477-8910 •Ca pital: ¥10 m illion •Investment ratio: 64.9%●Neuve A Co., Ltd. (Retai l business)•Location: Shibuya First Place Bldg., 8-16, Shinsen-cho, Shibuya-ku, Tokyo 150-0045•Phone: +81-3-5428-2600 •Capital: ¥490 million ● Invest ment ratio: 64.9%Share Information