<Reference data> June 29, 2021 Create and Bring to Life "New Happiness." /FR） J. FRONT RETAILING
《Q1 results》》
•Business profit was secured but below forecast, operating loss and net loss were recorded mainly due to temporary closures and reduction of business hours because of the state of emergency declared after forecast release in April
《《Full year forecast》
•Expect economic recovery due to the progress of vaccination but revise full year earnings forecast taking into re-examined top line and additional profit improvement measures 《《Financing measures》》 •Continue emergency measures to ensure liquidity on hand and safety 1
➤ Gross sales: ¥190.6 billion, up 67.3% YoY Business profit: ¥1.2 billion, secured a profit partly due to reclassification of fixed costs of ¥3.0 billion incurred during temporary closures Operating profit (loss): Los of ¥3.8 billion though improved YoY
Segment Information
Department Store: Recorded business loss even after reclassification of fixed costs affected by temporary closures and reduction of business hours but improved YoY SC: Increased business profit but recorded operating loss due to loss of ¥1.7 billion on sale of specialty store business (Billions of yen, %)
Up ¥1.6 billion from FY2020, down ¥5.5 billion from FY2019 before reclassification of fixed costs
¥415.0 billion, up 29.8% YoY but ¥55 billion below April forecast -Gross sales: Business profit: ¥3.5 billion, ¥3.0 billion below April forecast ➤➤ Operating profit (loss): Los of ¥2.5 billion, ¥6.5 billion below April forecast
5 Segment Information
Department Store: Continue to post a loss in Q2 affected by voluntary restraint after temporary closures in Q1 SC: Secure a profit but below April forecast due to a decrease in rental income and recording of expenses incurred for the sale of specialty store
-Re-examined top line under the expected scenario for the year referring the state of advanced nations in vaccination Assume that restrictions on travel, etc. will be eased when vaccination rate reaches 50% and that the situation will return to almost normal when vaccination rate exceeds 70% in Japan
《Department Store》 Estimated percentage change from FY2019 in gross sales (stores in Japan) in H2
7
▶ Gross profit: Up ¥2.0 billion (gross sales: up ¥10.0 billion) Department Store: Measures for categories to be strengthened, expansion of on-line sales SC: Measures to strengthen digital such as expansion of alliance with other companies’ credit cards in app
▶ SGA: Down ¥6.0 billion (reduction in addition to structural reform)
Department store: Overhaul of HRs / outsourced posts, reduction of investment, reduction of controllable costs SC: Reduction of outsourcing, reduction of controllable costs
➤ Other operating income: Up ¥5.0 billion
Consider measures that go further such as sale of assets as a contingency plan Business profit: Up ¥8.0 billion Operating profit: Up ¥13.0 billion
¥70 billion below April forecast, up 22.0% YoY, including increase profit Gross sales: improvement measures ➤ Business profit: ¥6.5 billion below April forecast, increase YoY by thorough cost control measures Operating profit (loss): ¥5.5 billion below April forecast, improve in H2 by other income
Segment Information
Department Store / SC: Large improvement YoY but below April forecast due to revision of top line
➤ Full year: Decrease ¥12.5 billion below April forecast (¥10.6 billion below April forecast before reclassification of fixed costs) Personnel expenses:  Decrease due to sale of business, ¥4.1 billion below April forecast Advertising expenses: Increase efficiency, ¥1.3 billion below April forecast
《Reference》 Daimaru Matsuzakaya Department Stores FY2021 Q1 Results and H1 Forecast (IFRS) ➤ Gross sales: Up 32.0% YoY in H1 but ¥27.3 billion below April forecast SGA: Lower below April forecast but increase YoY partly due to technical factors such as reclassification of fixed costs ● Other expenses: Reclassification of fixed costs in Q1 ¥2.7 billion
Gross sales: Up 20% YoY, ¥33.6 billion below April forecast SGA: ¥7.7 billion lower than April forecast Business profit (loss), operating profit (loss): Large improvement YoY, secure profits in full
Website https://www.j-front-retailing.com Create and Bring to Life “New Happiness.” J. FRONT RETAILING 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.