December 26, 2019
For Immediate Release
Company Name: PARCO CO., LTD.
Company Representative: Kozo Makiyama
President, Representative Executive Officer
Stock code: 8251 (TSE 1st Section)
Inquiries: Mika Kusakawa
Senior Manager, Public Relations and Investor Relations Team(Telephone: 03-3477-5710)

Announcement Concerning Revision of Dividend Forecast for Fiscal Year EndingFebruary 29, 2020 and Elimination of Shareholder Rewards System

PARCO CO., LTD. (the “Company”) hereby announces that the Board of Directors resolved, at its
meeting held today, to (i) revise its dividend forecast for the fiscal year ending February 29, 2020, so that
the Company will not pay a year-end dividend for the fiscal year ending February 29, 2020 or acommemorative dividend for the 50th anniversary of PARCO (the “Commemorative Dividend”), and (ii)eliminate its shareholder rewards system, subject to the completion of the tender offer conducted by J.
FRONT RETAILING Co., Ltd. (the “Tender Offeror”) for the Company’s common shares (the “CompanyShares”) as stated in the “Announcement of Opinion in Support of Tender Offer for Our Shares to be
Conducted by J. FRONT RETAILING Co., Ltd., a Controlling Shareholder, and Recommendation for OurShareholders to Tender Their Shares in Tender Offer” (the “Company Announcement of Opinion”),
separately announced today (such tender offer, the “Tender Offer”).

1. Reason for Revision of Dividend Forecast and Elimination of Shareholder Rewards System
At a Board of Directors meeting held today, the Company resolved to express its opinion in support ofthe Tender Offer and to recommend that the Company’s shareholders tender their Company Shares in theTender Offer. The above resolution by the Board of Directors was adopted under the premise that theTender Offeror intends to make the Company into a wholly-owned subsidiary of the Tender Offeror
through the Tender Offer and a series of subsequent procedures and that the Company Shares will bedelisted (for further information, please refer to the Company Announcement of Opinion).
The Company’s basic policy has been to maintain the stable payment of dividend. However, if theCompany were to make payments of dividend for which the record date is February 29, 2020, after thesettlement of the Tender Offer, financial differences could arise between shareholders who tendered their1

Company Shares and those who did not tender their Company Shares in the Tender Offer. Therefore, inthe interests of ensuring fairness for all shareholders, the Board of Directors resolved, at its meeting held
today, subject to the completion of the Tender Offer, to revise its dividend forecast for the fiscal year
ending February 29, 2020, so that the Company will not pay a year-end dividend for the fiscal year
ending February 29, 2020 or the Commemorative Dividend.
For the same reason, the Board of Directors resolved, at its meeting held today, to eliminate its
shareholder rewards system subject to the completion of the Tender Offer.

2. Details of Revisions(1) Revisions to Dividend Forecast

Annual Dividend per Share
Second quarter-end

Fiscal year-end

Full-Year

13 yen26 yenPrevious Forecasts(ordinary dividend(ordinary dividend(announced on Aprilof 12 yen)of 24 yen)

8, 2019)(Commemorative(Commemorative

Dividend of 1 yen)

Dividend of 2 yen)

0 yen

13 yen(ordinary dividend(ordinary dividendof 0 yen)of 12 yen)(Commemorative(Commemorative

Dividend of 0 yen)

Dividend of 1 yen)

12 yen12 yen24 yen(ordinary dividend of(ordinary dividend of(ordinary dividend of12 yen)

12 yen)24 yen)

Revised Forecasts

13 yenActual Results for
Current Period(ordinary dividendof 12 yen)(CommemorativeDividend of 1 yen)

Actual Results forPrevious Period(fiscal year ended
February 28, 2019)(2) Elimination of the Shareholder Rewards System

The shareholder rewards system will be eliminated from the shareholder rewards for shareholders
listed or recorded in the shareholders’ register as of February 29, 2020.
The Company also hereby announces that the shareholder rewards for shareholders listed orrecorded in the shareholders’ registry as of August 31, 2019 and each record date prior thereto that2are in effect as of the date of this announcement will remain in effect until the end of the effective
period of such shareholder rewards, i.e., May 31, 2020, regardless of whether the Tender Offer iscompleted.

End of document3