Values and Vision

Value Creation

Management Strategy

Sustainability

Governance

Data

Values and Vision

History – Tradition (Foundation ⇒ Birth of Department Store)

History of Overcoming Changes

1743

Opened Edo store at Odenmacho 3-chome,Edo. (Closed in 1910)

1757

fabric and fancy goods wholesale store, respectively.

Built Kiba Villa near Hanei Bridge at Kiba
4-chome, Fukagawa, Edo and set up ashrine of Han-ei Inari in one corner of theproperty. (Still present on the premises ofDaimaru Core Building)

The long paths of their 300 and 400 years of histories were uneven.

1787Daimaru and Matsuzakaya that were founded as a kimono fabric store and a kimono

They converted to department store operators 100 years ago after overcoming a
number of crises and expanding their stores.
By having consistent values and continuing to respond to the changing times,
they embody “sustainability.”

Daimaru

1717

Shimomura Hikoemon Shokei openeda kimono fabric store “Daimonjiya” inFushimi, Kyoto. (Foundation of Daimaru)

1726

Edo store achieved the highest sales inJapan as a kimono fabric dealer.

1837

The Oshio Rebellion broke out. Daimaru
escaped burning at the hands of mobs
due to its reputation as a philanthropic
merchant.

1728

1908

Newly built and opened Kobe branch at
Motomachi 4-chome, Kobe.

1912

1737

Japanese traditional puppet show

bunraku “Osaka Hanjoki”

1611

1805

Matsuzakaya

1875

1913

Revised and registered the trademark.

Achieved the highest sales in the Japanese retailindustry. (Consecutively from H2 1960 to H2 1968)

1920

1964

Established “Kabushiki Kaisha Daimaru
Gofukuten” with a capital of ¥12 mn.

1736

Changed the trade to a silk and cotton kimono
fabric retailer.

1740Became a kimono fabric purveyor to the Owari
Tokugawa clan.

1745

Opened a purchasing office in Muromachi Nishikikoji, Kyoto.

1768

Acquired Matsuzakaya in Ueno, renamed it“Ito Matsuzakaya” and entered into Edo.

Opened Ito Bank (predecessor of formerTokai Bank) in Chayamachi Kado, Nagoya.

1983

1997

1928

Changed the company name to “KabushikiKaisha Daimaru.”

2003

Sapporo store opened.

2007

Integrated management with Matsuzakaya Holdings Co., Ltd.
Established a holding company J. Front Retailing Co., Ltd.

2009

The north wing of Daimaru Shinsaibashi store opened.

2010

Merged with Matsuzakaya Co., Ltd. and Daimaru Matsuzakaya
Department Stores Co. Ltd. was founded.

2011

Daimaru Umeda store reopened with increased floor space.

Kobe store (hit by the Great Hanshin-Awaji
Earthquake in 1995) was restored and made its
grand opening.

1999

Fully launched management reform (storebased sales reform and gaisho reform).
(Next year, HR reform and back-office reform
were launched.)

1900S

The north wing of Daimaru Shinsaibashi
store opened

2000S
1957

Designated cattleya as a symbol flower.

1972

Nagoya store built a north wing.

1991

Nagoya store built a south wing and opened“Matsuzakaya Museum.”

Opened a department store

Nagoya store built a new south wing

1907

2003

1910

2006

Reorganized Ueno store into “Goshi Kaisha
Ito Gofukuten.”
Established “Kabushiki Kaisha Ito
Gofukuten” with a capital of ¥0.5 mn.
Opened a department store in Sakaemachi,
Nagoya.

1917

Completed the new main building of Uenostore.

1923

Reopened Osaka store (Nipponbashisuji).
(Relocated to Tenmabashi in 1966 andclosed in 2004)

1924

Ginza store opened

6

Signed an exclusive contract with Givenchy.

1927

Acquired a kimono fabric store Ebisuya
and entered into Osaka.

1881

1961

First implemented a weekly holiday system inthe department store industry.

Ueno store was used as the headquarters ofimperial army during the Ueno war.

Opened a kimono fabric and fancy goods wholesale
store in Chayamachi, Nagoya.

Launched private label men’s clothing “Trojan.”

Umeda store opened in Osaka Terminal Building“Acty Osaka.” Adopted a new CI and created anew logo.

1868

1659

Signed an exclusive contract with ChristianDior. Japan’s first partnership with a foreign
designer.

1959

Opened a cotton wholesale store
Kamedana in Odenmacho, Edo.

Exterior of Ueno store in 1772

1953

Opened new three-story reinforced wooden
Kyoto store on Shijodori Street (presentlocation) as a department store.

Opened the first “Dyeing Laboratory &Hygienic Laboratory” (present Consumer
End-Use Research Institute) in thedepartment store industry in Osaka store(present Shinsaibashi store).

Opened Nagoya store at Honmachi 4-chome, Nagoya andused the name “Daimaruya” for the first time. (Closed in1910)

1800S

Ito Ranmaru Sukemichi opened a kimono
fabric and fancy goods wholesale store inHonmachi, Nagoya.

Established “Kabushiki Goshi Kaisha Daimaru
Gofukuten” with a capital of ¥0.5 mn.

1922

Opened Osaka store “Matsuya” in Shinsaibashisuji,
Osaka and began cash sales at fixed prices. (Presentlocation of Shinsaibashi store)

Distributed to all stores the hanging scrolls with thestore creed of “Service before Profit” on it.
Completed the construction of the new Kyoto flagshipstore in Funaya-cho, Higashinotoin, Kyoto.

1907

Nagoya store built a new south wing and became
one of the largest department stores in Japan.
Established a holding company Matsuzakaya
Holdings Co., Ltd.

2007Integrated management with The Daimaru, Inc.
Established a holding company J. Front
Retailing Co., Ltd.

2010

Merged with The Daimaru, Inc. and Daimaru
Matsuzakaya Department Stores Co. Ltd. wasfounded.

2011“Keicho Kosode” from the Matsuzakaya
Collection was designated as a national
important cultural property.

7Values and Vision

Value Creation

Management Strategy

Sustainability

Governance

Data

Values and Vision

History – Innovation (Reorganization ⇒ Portfolio Transformation)

2017

Future Created by Heterogeneity

FY2017-FY2021 Medium-term Business Plan started.
Voluntarily adopted the International Financial ReportingStandards (IFRS).
Transferred the business of JFR Online Co. Ltd.

Changes in the times are more and more accelerated.
The landscape rapidly changed when the bubble economy burst in the 1900s and there was an urgent need for industry
reorganization.
In such a situation, Daimaru and Matsuzakaya Holdings integrated management to expand each other’s strength andachieve regrowth.
Furthermore, we converted Parco into a consolidated subsidiary in 2012 and converted it into a wholly owned subsidiaryin 2020 to expand our retail wing.
The full-scale fusion of disparate cultures is just beginning.

GINZA SIX opened.
Transitioned to a Company with Three Committees(Nomination, Audit and Remuneration Committees).
Transferred shares of Forest Co., Ltd.

2014

FY2014-FY2016 Medium-term Business Plan started.
Became affiliated with Rakuten R-Point Card service.
Fukuoka PARCO opened a new building.
Invested in Cool Japan Fund.

Ueno PARCO_ya opened.
Ueno Frontier Tower opened.
JFR PLAZA Inc. was dissolved and liquidated.

2018

Accepted purchase of own shares by Senshukai Co., Ltd.

2015

Increased floor space of the main building ofFukuoka PARCO.
Acquired a 22.6% stake in Senshukai Co., Ltd. andconverted it into an equity method associate.
Shanghai New World Daimaru Department Storeopened.
Decided to rebuild the main building of Daimaru
Shinsaibashi store.
Decided to rebuild Shibuya PARCO.

Established J. Front Retailing Co., Ltd. inSep 20072007

Phase of business integration and reorganization

The Daimaru, Inc. and Matsuzakaya Holdings Co., Ltd.
integrated management and established J. Front RetailingCo., Ltd.

2008

Dimples’ Co., Ltd. absorbed Daimaru Sales AssociatesCo., Ltd.

JFR Service Co., Ltd. absorbed Daimaru Lease & ServiceCo., Ltd.

FY2017FY2021

FY2016FY2021

Medium-term Business Plan

Reached a basic agreement with Shanghai Xin Nan
Dong Project Management Co., Ltd. and Shanghai
New World Co., Ltd. to provide technical support
and cooperation in opening and operating a newdepartment store in Huangpu District, China.

The new Medium-term Business Plan started. (Mar)Transferred all shares of Neuve A Co., Ltd. (Jun)
Daimaru Matsuzakaya Department Stores Co. Ltd.
absorbed Daimaru Matsuzakaya Sales Associates
Co. Ltd. (Sep)

Daimaru Kyoto Store Gion Machiya opened
in Nov 2016

The main building of Daimaru Shinsaibashi
store made its grand opening in Sep 2019

2022

2019

Established a CVC fund JFR MIRAI CREATORS Fundjointly with Ignition Point Venture Partners Inc. (Oct)SAN-A Urasoe West Coast PARCO CITY opened. (Jun)

Acquired a 50.8% stake in XENOZ Co., Ltd. andconverted it into a subsidiary. (Nov)

Kinshicho PARCO opened. (Mar)Daimaru Umeda store reopened withincreased floor space in Mar 20112010

The Daimaru, Inc. and Matsuzakaya Co., Ltd.
merged into Daimaru Matsuzakaya Department
Stores Co. Ltd.
J. Front Design & Construction Co., Ltd. absorbedDHJ Co., Ltd.
The Daimaru Tomonokai, Inc. absorbed Matsuzakaya
Tomonokai Co., Ltd. to form Daimaru Matsuzakaya
Tomonokai Co., Ltd.

2011

“Keicho Kosode” from the Matsuzakaya Collection was
designated as a national important cultural property.
Daimaru Umeda store reopened with increased floor
space.

FY2023Medium-term Business Plan

Transferred all shares of a consolidated subsidiary J.
Front Foods Co., Ltd. (Feb)

Dimples’ Co., Ltd. spun off Daimaru Matsuzakaya
Sales Associates Co. Ltd.

Integrated the information systems of The Daimaru,
Inc. and Matsuzakaya Co., Ltd.

The north wing of Daimaru Shinsaibashi store opened.

FY20142021

Increased a stake in Parco Co. Ltd. to 65% through
TOB and converted it into a consolidated subsidiary.

Daimaru Design & Engineering Co., Ltd., Daimaru MokkoCo., Ltd., Matsuzakaya Seiko Co.,Ltd. and Refex Japan,Inc. merged into J. Front Design & Construction Co., Ltd.

Matsuzaka Service Co., Ltd. was renamed JFR ServiceCo., Ltd.

Phase of promoting the portfoliotransformation

2012

Established JFR PLAZA Inc. through joint investment
with StylingLife Holdings Inc.

Daimaru Credit Service, Inc. was renamed JFR CardCo., Ltd.

Restaurant Peacock Co., Ltd. absorbed Shoei Foods
Co., Ltd. to form J. Front Foods Co., Ltd.

Phase of changing the businessstructure

Acquired a 33.2% stake in Parco Co., Ltd. andconverted it into an equity method associate.

Daimaru Tokyo store completed phase 1 of relocationand expansion.

2009

GINZA SIX opened in Apr 2017

Phase of building
foundations

Medium-term Business Plan

2007

8

Invested in Scrum Ventures.

The new main building of Daimaru Shinsaibashi
store opened. (Sep)

Daimaru Tokyo store completed phase 2 of expansion.

New Shibuya PARCO opened. (Nov)Commenced TOB to convert Parco Co., Ltd. into awholly owned subsidiary. (Dec)2013

Sold all shares of Peacock Store Ltd., which
operated a supermarket business, to Aeon Co., Ltd.
Acquired a 70.52% stake in Forest Co., Ltd. andconverted it into a consolidated subsidiary.

GENTA was created in the north wing ofMatsuzakaya Nagoya store in 2016

Partially transferred shares of Dimples’ Co., Ltd. (Feb)2023

Established J. Front City Development Co., Ltd. (Mar)Invested in Financie, Inc. (Apr)2020

Daimaru Matsuzakaya Department Stores Co.
Ltd. absorbed The Shimonoseki Daimaru, Inc. andconverted it into a directly managed store. (Mar)Converted Parco Co., Ltd. into a wholly owned
subsidiary. (Mar)
Suspended the current Medium-term Business
Plan and began to formulate a new Medium-term
Business Plan.
Transferred the Real Estate Business of Daimaru
Matsuzakaya Department Stores Co. Ltd. to ParcoCo., Ltd. (Sep)
Shinsaibashi PARCO opened in the north wing ofShinsaibashi store. (Nov)

9Values and Vision

Value Creation

Management Strategy

Sustainability

Governance

Data

Values and Vision

Sustainability Management

Realization of decarbonized society

Creating Shared ValueSustainability Management

Promotion of circular economy

Priority Tasks to be

The Group has encountered a number of crises over its 300 and 400 years ofhistory. Every time we have faced these situations, we have returned to our Corporate
Credo “Service before Profit” and “Abjure All Evil and Practice All Good” and carriedout business activities honestly while responding to changes in customers andsociety quickly. We firmly believe this is what has led us to our current management.
Companies cannot develop without coexistence with society. Currently it is essential
for the management to paint the vision of what the company should be in the future,
which will have a prominent presence in a society, from a longer-term perspective. Itis evident that we cannot conduct business activities looking away from issues suchas the environment, society and human rights. We think we will be able to obtaina framework for sustainable management for future growth by incorporating theconcept of sustainability for the solution of these issues into our corporate strategies
and business strategies.
Based on the Corporate Credo and with sustainability at the core of management,
we will strive to solve social issues through business activities to achieve both socialvalue and economic value.

Addressed by the Group

Promotion of diversity & inclusion
Realization of work-life integration

7Group Vision

With People, withLocal Communities, with Environment
Corporate vision and value delivery

Produce fulfilling lifestyles and create uniquecommunities to coexist with local communities

Management strategy / business strategy

10Practice CSV (Creating Shared Value)
using the Group’s strengths

Realization of decarbonized societyManagement of theentire supply chain
Promotion of diversity & inclusion

Realization of customersʼ
healthy/safe/secure life
Realization ofwork-life integration

Promotion of
circular economy
Coexistence withlocal communities

High

Very highImpact on J. Front Retailing Group

Questionnaire survey of stakeholders (4,250 persons), interview with management

Selected 100 social issues that areexpected to have a signiﬁcant impact
on the environment and society

Hearings on important tasks
from the stakeholder's perspective

Prepared materiality map

Evaluated the Groupʼs strengths and impact
Extracted important tasks for the Group

Selected 25 items based on the Groupʼs initiatives, ESG guidelines, benchmark
companies (organizational governance, human rights, labor practices, environment,
fair business practices, community, etc.)2018 Selected 5 materialities

Propose Well-Being Life as
the goal of the Group Vision throughnew value creation

J. Front Retailing Group materiality map

Process for identifying materialities

Recognized environmental and social issues
Listed materiality candidates

Create and Bring to Life
“New Happiness.”
Sustainability Policy

We have identified materialities to promote sustainability management
and realize Well-Being Life, which is the goal of the Group Vision.
As a result of considering environmental issues, changes in theexternal environment due to COVID-19 and other reasons, the balance
between existing materialities, and furthermore, contribution to SDGs,
we newly added “promotion of circular economy” and “realization ofcustomers’ healthy/safe/secure life.”
With regard to existing materialities, in response to the growing
awareness of decarbonization in Japan and abroad, we revised “contributionto a low-carbon society” to “realization of decarbonized society.” In addition,in consideration of the social background, we also revised “promotion ofdiversity” to “promotion of diversity & inclusion” and “realization of work-lifebalance” to “realization of work-life integration.”
Going forward, by clarifying both risks and opportunities with respect to theseven materialities, we will create business opportunities in each materiality,
while responding to risks, and aim to realize social value and economic value
simultaneously based on the concept of CSV (Creating Shared Value).

High

Integrate corporate strategy /business strategy with sustainability
management

Coexistence with local communities

Impact on stakeholders

CorporateCredo

Abjure All Evil andPractice All Good

Materialities

Very highBring to Life

“New Happiness.”

Servicebefore Profit

Realization of customers’ healthy/safe/
secure life(Important Tasks)Create andDirection of the Road Ahead

Management of the entire supply chain

Reviewed from the perspectives of changes in the external
environment surrounding environmental issues, changes due to
COVID-19 and the Groupʼs materialities“Contribution to a low-carbon society”“Management of the entire supply chain”“Coexistence with local communities”“Promotion of diversity”“Realization of work-life balance”
Discussed by the Management Meetingand the Board of Directors

Discussed andidentiﬁed
Discussed by the Management Meetingand the Board of Directors

2021 Added 2 materialities and updated 3 items“Realization of decarbonized society”“Promotion of circular economy”“Management of the entire supply chain”“Promotion of diversity & inclusion”“Realization of work-life integration”“Realization of customersʼ healthy/safe/secure life”“Coexistence with local communities”*Newly added materialities are shown in red.

11