Financial Results for the Third Quarter ofFiscal Year Ending February 28, 2022
<Reference data>

December 28, 2021
Create and Bring to Life “New Happiness.”

Q3 FY2021 Consolidated Results (IFRS)Sales were on an improvement trend mainly due to the recovery of foot traffic after the termination of thestate of emergency
Turned into operating profit in cumulative Q3 due to the recovery of sales and cost reduction. Full year
forecast unchanged
In anticipation of the adoption of the consolidated taxation system in the next fiscal year, tax expenses
decreased by ¥2.1 billion in Q3(Millions of yen, unless otherwise stated)

Q3(Sep - Nov)
YoY
Results
Change % change

Cumulative Q3(Mar - Nov)
YoY
Results
Change % change

Gross sales

221,1997,227)

3.4)

623,348

88,740)

16.6)

Revenue

80,146(3,082)(3.7)

237,479

6,780)

2.9)

Gross profit

38,224826)

2.2)

107,918

11,069)

11.4)

SGA

32,995(2,763)(7.7)

99,034

4,075)

4.3)

Business profit

5,228

3,588)

218.8)

8,883

6,993)

369.9)

Other operating income

1,330151)

12.7)

2,987

(1,884)(38.7)

Other operating
expenses

76296)

14.4)

7,463

(17,783)(70.4)

Operating profit

5,796

3,643)

169.1)

4,407

22,890)－

Profit attributable toowners of parent

5,6654,986)

733.8)

3,669

19,301)－

Fiscal year ending
February 28, 20221

Q3 (Sep - Nov) FY2021 Segment Information (IFRS)
Department Store:

Increased profit due to the recovery of volume zone sales and cost reduction as well as
strong sales of high-priced items

SC:

Decreased sales due to the transfer of Neuve A but increased profit thanks to openingof Shinsaibashi PARCO and cost reduction

Developer:

Decreased sales due to an absence of the construction of Shinsaibashi last year but
increased profit due to sale of assets

Payment and Finance: Increased profit due to an increase in annual membership fee and the recovery ofmerchant transaction volume(Millions of yen, unless otherwise stated)

Three months ended
November 30, 2021 Results

Revenue

Business profit

Operating profit

YoY

YoY

YoY

Change % change

Results

Change % changeResults

Change % change－1,7571,565)

813.1)

1,555982) 171.2)

1,647631)

62.1)

(5.8)

1,070

149)

16.3)

1,298586)

82.2)

641)

27.4)

649666)－664664)－Other14,446) (2,172)(13.1)

322(222) (40.9)

328

(348)

(51.5)

Adjustments(8,746)876)－64308)－99543)－80,146) (3,082)

(3.7)

5,228

3,588) 218.8)

5,796

3,643)

169.1)

Department Store 46,178)

1,322)

2.9)

1,566

SC12,580) (2,973)(19.1)Developer

12,707)(777)

2,978)

Payment and FinanceTotal

1,703)2Q3 (Sep - Nov) FY2021 Daimaru Matsuzakaya Department Stores (IFRS)Both customer traffic and sales continued to improve after the termination of the state ofemergency
Increased profit significantly in Q3 and turned into business profit in cumulative Q3
Increased profit due to the subsidy of ¥300 million received for following temporary closure
requests (other operating income) as well as sales increase and cost reduction(Millions of yen, unless otherwise stated)

Fiscal year ending
February 28, 2022

Q3 (Sep - Nov)
Results

Cumulative Q3 (Mar - Nov)

YoY
Change % change

Results

YoY
Change % change

Gross sales

129,0028,763)

7.3)

354,373)

57,444)

19.3)

Revenue

42,353

1,418)

3.5)

121,627)

12,444)

11.4)

Gross profit

27,167

1,431)

5.6)

75,045)

10,845)

16.9)

SGA

25,353

(228)

(0.9)

73,686)7,401)

11.2)

Business profit

1,813

1,659)－1,359)3,443)－

Other operating income

689370)115.9)

1,672)(958)(36.4)

Other operating
expenses26943)

19.3)

3,610)(15,126)(80.7)

Operating profit

2,233

1,986)

801.6)(578)

17,613)－3

Daimaru Matsuzakaya Department Stores Domestic Sales Trends
Domestic sales excluding duty-free sales greatly improved following the recovery of customer
traffic
Sales of luxury and high-priced items were strong but the recovery of spending on volume
zone items was slow
Recovered to a decrease of 7% level compared to FY2018 when there was no impact of theconsumption tax rate change
FY2021 monthly domestic sales (% change)（％）

vs. FY2020

20.0

vs. FY2019

vs. FY2018

15.3

15.9

6.6

2.8

10.0

0.0

(0.1)
(7.3)

(10.0)(7.7)(15.3)(20.0)(30.0)(40.0)(36.6)
SepOct

Nov*Comparable store basis: Comparison to FY2019 excludes Shimonoseki and Toyota storesComparison to FY2018 excludes Yamashina, Shimonoseki, and Toyota stores

4

Daimaru Matsuzakaya Department Stores Major Store Sales
Sales of directly managed stores (on a comparable basis) steadily improved but slightly below forecast

Sales of Kobe and Nagoya stores that have a strong loyal customer base including gaisho customers
increased beyond expectations
Sales of Tokyo and Umeda stores, which were delayed in recovering, are currently improving mainly due
to an increase in train ridership(%)

Comparison to FY2020
Fiscal year ending
February 28, 2022

Comparison to FY2019

Results

Forecast

Cumulative Q3
results(Mar - Nov)

Shinsaibashi

13.128.7)

36.0(31.5)(21.5)(43.2)

Umeda

3.87.9)8.8(28.9)(26.0)(39.2)

Tokyo

9.511.7)

22.9(33.3)(31.9)(44.3)

Kyoto

1.16.7)

14.1(18.7)(13.9)(24.8)

Kobe

10.8(1.7)

21.10.4)(9.3)(12.3)

Sapporo14.018.0)

22.2(15.3)(12.3)(25.9)

Nagoya6.45.0)23.2(11.7)(12.7)(14.7)

Total
directly managed stores

7.38.5)19.9(18.9)(17.7)(28.2)

Q3 (Sep - Nov)

Q3 (Sep - Nov)
Results

Forecast

Cumulative Q3results(Mar - Nov)

*Total is on a comparable store basis (Comparison to FY2019 excludes Shimonoseki and Toyota stores).

5Q3 (Sep-Nov) FY2021
Daimaru Matsuzakaya Department Stores SGA
Personnel expenses increased but outsourcing expenses decreased due to the merger of a subsidiary
Decreased YoY due to thorough restructuring and cost control in spite of an increase in variable cost due tosales increase
Reduced ¥4.2 billion compared to FY2019 in real terms, if excluding the impact of the absence of aspecial factor (a decrease of ¥4.1 billion)(Millions of yen)
Item

Three months
ended
Nov 30, 2021

Personnel
expenses

6,723

1,297)

4,589)

Advertisingexpenses

2,0860)(874)

Packing andtransportation
costs

336

(12)

(151)

Rent expenses

7246)

(5)

Depreciation

5,367

(31)

(376)

Operational costs

2,712

(43)

(212)

Other

8,053

(1,485)(3,105)25,353(228)(132)

Total SGAYoYchangevs. FY2019

Main reasons for changes【Comparison to last year】
・Impact of the merger of Daimaru Matsuzakaya Sales Associates
Personnel expenses: Up ¥1.8 billion Other: Down ¥1.8 billion【Comparison to FY2019】
・Personnel expenses:
Increased in reaction to a decrease (¥4.1 billion) due to therevision of retirement benefit plan in FY2019
・Advertising expenses: Digitalization, streamlining efforts
・Depreciation: Impact of increased efficiency of investment andthe transfer of Real Estate to Parco・Other: Decreased controllable cost, decreased commissions(420) in real terms

6Q3 (Sep-Nov) FY2021 PARCO (IFRS)SC Business kept revenue at the same level as last year thanks to opening of Shinsaibashi
PARCO, increased profit due to cost reduction (Operating costs and SGA)Developer Business increased profit due to an absence of transfer related expenses
recorded last year and sale of some assets
Parco, on an non-consolidated basis, significantly increased business profit and operating(Millions of yen, unless otherwise stated)
profit, respectively
Three months ended
November 30, 2021

SC BusinessResults

Developer Business

YoY
Results
Change % change

Total Parco

YoY
Change % change

Results

YoY
Change % change

Gross sales

55,528397)

0.7)

2,08180)

4.0)

57,610477)

0.8)

Operating revenue

12,563174)

1.4)

2,08180)

4.0)

14,644254)

1.8)Operating costs

9,157

(153)

(1.6)

871

(250)

(22.3)

10,028(403)(3.9)

Operating gross profit

3,406328)

10.6)

1,210330)

37.4)

4,616657)

16.6)

SGA

1,849(504)(21.4)

611102)20.0)

2,460(403)(14.1)

Business profit

1,556831) 114.7)598227)

61.4)

2,155

1,059)

96.7)

Other operating income

304

(228)

(42.8)

476457)－781229)

41.5)

Other operating
expenses

21226)

14.2)

31(236)(88.4)

243(211)(46.3)

Operating profit

1,648577)

53.9)

1,044922)

752.2)

2,692

1,498)

125.5)
7

PARCO Major Store Tenant Transaction VolumeTransaction volume of Shibuya and Shinsaibashi was strong due to new opening effectComparable stores were on a recovery trend since October but sale of services, etc. struggled
Urawa and Ikebukuro, which are urban complexes, Nagoya, which is partly closed due to renovation, andsome other stores are rearranging their floors(%)

Comparison to FY2020
Fiscal year ending
February 28, 2022

Q3 results(Sep - Nov)

Cumulative Q3results(Mar - Nov)

Comparison to FY2019
Q3 results(Sep - Nov)

Cumulative Q3
results(Mar - Nov)

Sendai PARCO

(6.9)

9.4

(20.0)(28.3)Urawa PARCO

(6.6)

13.4

(14.2)(14.9)

Ikebukuro PARCO

(7.5)

12.4

(33.8)(41.9)

Shibuya PARCO11.1)

40.3113.3)

308.8)

Nagoya PARCO

(8.4)

13.3

(31.4)(33.6)

Shinsaibashi PARCO349.5)－－－

Hiroshima PARCO

(5.4)

5.5

(21.3)(29.3)

Fukuoka PARCO

(0.9)

19.2

(15.3)(24.9)

Total0.6)

20.5(12.4)(19.0)

Comparable stores

(4.7)

13.4

(22.7)(28.4)*Comparable stores: Comparison to FY2020 excludes Shinsaibashi PARCO and the 1st basement and cinema complex of PARCO_ya Ueno.
Comparison to FY2019 excludes Shibuya PARCO, Utsunomiya PARCO and Kumamoto PARCO in addition to the above.

8Appendix

9<Reference>

Daimaru Matsuzakaya Department Stores Results(Retroactive adjustments due to the merger of Daimaru Matsuzakaya Sales Associates)

Impact in H1: Gross sales increased ¥140 million, business profit decreased ¥60 million,operating profit increased ¥190 million
No impact in and after H2
Fiscal year ending
February 28, 2022

(Millions of yen)

Q1
(Mar - May)

Q2
(Jun - Aug)

H1
H1

Before retroactive
adjustment

ImpactGross sales

103,889)

121,628)

225,517)225,371)

147)

Revenue

36,335)43,084)79,420)79,273)147)

Gross profit

22,248)25,616)47,864)47,878)(13)

SGA

22,725)25,653)

48,379)48,332)

47)

Business profit

(477)

(37)

(514)

(454)

(60)

Other operating income342)

891)

1,233)

982)

250)

Other operating expenses

3,081)

257)

3,339)

3,340)(1)

Operating profit(3,216)595)(2,620)(2,812)191)

10

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.