J Front Retailing : 2Q FY2/2025 Results Presentation

～ Speed Up the Change. ～

Presentation of Results for Interim Period of

Fiscal Year Ending February 28, 2025

October 8, 2024

J. Front Retailing Co., Ltd.

Create and Bring to Life "New Happiness."

Today's Agenda

I. H1 FY2024 Results and Full FY2024 Forecast

II. Progress of FY2024-2026Medium-term Business Plan

1

H1 FY2024 Results and Full FY2024 Forecast

WAKABAYASHI Hayato

Director and Managing Executive Officer

Senior Executive General Manager, Financial Strategy Unit

J. Front Retailing Co., Ltd.

Create and Bring to Life "New Happiness."

2

Consolidated Performance PL (IFRS)

Spending by the wealthy and inbound tourists continued to drive business performance. Business profit increased by approx. 60% in H1.

With the addition of gain on step acquisition of shares (approx. ¥8.5 billion), profits exceeded June forecast and reached a record high.

Interim dividend is ¥22 as announced in September, an increase of ¥6 per share from the same period last year.

(Millions of yen, unless otherwise stated)

Interim period of	Q1		Q2			H1
fiscal year ending	Results	% YoY	Results		% YoY	Results	% YoY	vs. June
February 28, 2025		forecast
Gross sales	299,707		13.6)	310,761		12.5)	610,469	13.0)	14,469
Revenue	101,469		8.6)	107,898		9.9)	209,368	9.3)	2,368
Gross profit	53,294		16.3)	55,152		16.0)	108,446	16.1)	3,246
SGA	36,891		2.5)	39,079		5.1)	75,970	3.8)	270
Business profit	16,403		66.8)	16,072		55.1)	32,476	60.8)	2,976
Other operating income	277		(73.8)	8,628		1,042.8)	8,906	390.1)	―
	545		(24.7)	1,473		(8.2)	2,018	(13.4)	―
Other operating expenses
Operating profit	16,136		58.7)	23,228		144.1)	39,364	100.0)	12,364
Profit attributable to	11,316		76.9)	17,777		173.4)	29,094	125.5)	11,094
owners of parent
Dividend per share (Yen)	－		－	－		－	22	(Yen) 6)	2

3

Segment Performance (IFRS)

					(Millions of yen, unless otherwise stated)
Interim period of fiscal year	Q1		Q2		H1
ending February 28, 2025	Results	% YoY	Results	% YoY	Results	% YoY
	Gross sales	197,240	16.2)	201,529	12.2)	398,770	14.2)
Department	Revenue	62,606	15.6)	64,687	11.1)	127,293	13.3)
Store	Business profit	10,623	118.6)	9,531	39.8)	20,154	72.6)
	Operating profit	10,386	130.6)	9,062	61.8)	19,449	92.4)
	Gross sales	80,003	14.9)	82,854	15.6)	162,857	15.3)
SC	Revenue	15,868	11.0)	15,943	13.2)	31,811	12.1)
Business profit	4,002	61.7)	3,834	60.4)	7,836	61.0)
	Operating profit	3,950	25.7)	3,167	20.1)	7,118	23.1)
	Gross sales	16,726	1.3)	20,286	21.3)	37,013	11.4)
Developer	Revenue	16,726	1.3)	20,286	21.3)	37,013	11.4)
Business profit	1,638	17.2)	2,571	332.3)	4,210	111.3)
	Operating profit	1,632	0.3)	2,543	321.0)	4,176	87.1)
	Gross sales	3,188	(1.5)	3,301	(5.6)	6,489	(3.6)
Payment and	Revenue	3,188	(1.5)	3,301	(5.6)	6,489	(3.6)
Finance	Business profit	386	(47.2)	675	(18.9)	1,062	(32.1)
	Operating profit	344	(49.8)	556	(31.9)	900	(40.1)
	Gross sales	11,863	(13.6)	13,411	(5.6)	25,275	(9.5)
Other	Revenue	11,574	(13.8)	13,111	(5.5)	24,686	(9.6)
Business profit	258	(45.8)	193	(5.2)	451	(33.6)
	Operating profit	271	(61.4)	150	(52.2)	422	(58.5)	4

H1 Segment Information (IFRS) Main Reasons for Changes

Department Store Business

• Backed by increasing spending by the wealthy and inbound tourists, investment proved successful, and sales of luxury goods further increased.
• Gaisho sales exceeded the plan, mainly due to more brisk spending by young affluent consumers. Inbound sales expanded mainly in 7 key areas.

SC Business

• Shibuya PARCO and Shinsaibashi PARCO saw significant revenue increase due to growing popularity among foreign tourists to Japan.
• Thanks to the renovations of key stores such as Nagoya PARCO, both customer traffic and transaction volume increased, leading to increased rental income.

Developer Business

• J. Front City Development recorded a gain on sale of assets held (approx. ¥1.7 billion) in Q2.
• J. Front Design & Construction increased profits mainly due to an increase in orders for hotel interior construction and department store renovation work.

Payment and Finance Business

• While merchant fees increased due to higher transaction volume, revenue decreased due to higher point costs and other factors.
• Profits decreased due to an Increase in upfront costs for strengthening organization and recruitment to consolidate the Group cards.

Other

• Daimaru Kogyo's profits fell due to struggles in the automotive department and other areas.

5

Daimaru Matsuzakaya Department Stores Major Store Sales

Maintained double-digit growth in total sales of directly managed stores.

Double-digit growth even compared to pre-COVID-19 levels.

In H1, sales at Kyoto and Nagoya stores grew by double digits compared to pre-COVID-19 levels. Nagoya store continued to perform well despite the impact of sales floor closures for major renovations this fall.

							(% change)
Interim period of		YoY			vs. FY2019		vs. FY2018
fiscal year ending	Q1	Q2	H1	Q1	Q2	H1	H1
February 28, 2025
results	results	results	results	results	results	results
Shinsaibashi	44.7	19.4	30.9	27.2)	29.6)	28.4)	38.2)
Umeda	8.1	9.4	8.8	(11.4)	(6.9)	(9.1)	(9.1)
Tokyo	10.3	9.4	9.8	4.9)	2.6)	3.7)	5.4)
Kyoto	27.5	15.7	21.4	23.6)	16.5)	20.0)	20.0)
Kobe	10.5	8.4	9.4	26.5)	32.8)	29.6)	25.5)
Sapporo	17.8	23.7	20.8	22.0)	32.1)	27.1)	27.6)
Nagoya	7.5	6.4	6.9	11.3)	14.4)	12.9)	12.0)
Total
15.9	11.7	13.7	11.5)	13.9)	12.7)	12.9)
directly managed stores

*Total is on a comparable store basis. (Comparisons to FY2019 and FY2018 exclude Yamashina, Shimonoseki, and Toyota stores.)

6

Daimaru Matsuzakaya Department Stores Inbound Sales Trends

With the weak yen and a recovery in Chinese tourists, sales reached a record high of over ¥60.0 billion.

The pace of revenue growth slowed down in August due to the impact of the rapid appreciation of the yen and other factors. Strategies such as expanding contact points with overseas customers will be accelerated and promoted in H2 and beyond.

Duty-free sales trends (directly managed stores)

(Millions of yen)		FY2019		FY2023		FY2024

15,000

10,000

5,000

Duty-free sales share (by country)

China Taiwan Hong Kong Korea Other

(%)

FY2024	64.2	8.0 6.6 5.9	15.3

FY2023	47.3	16.2	8.9	6.4	21.2

0

Mar

Apr

May

Jun

Jul

Aug

7

Daimaru Matsuzakaya Department Stores SGA Analysis (IFRS)

H1 FY2024

(Millions of yen)

SGA analysis

Increase in

Increase in

Decrease in

personnel

Increase in

Decrease in ad

expenses

operation Decrease in

other SGA

expenses

other SGA

178

264

costs

depreciation

(34)

(105)

Decrease in

Increase in

(323)

(27) Decrease in

Decrease in

operation

personnel

Decrease in

costs

1,534

packing and

expenses

ad expenses

74

depreciation

transportation

777

(145) Increase in

(149)

costs

(255)

packing and

・Reclassification

transportation

costs

• Event planning expenses (down ¥200 mn)

・Salaries and bonuses (¥500 mn)

・Commissions (¥1,000 mn) ・Repair expenses (¥200 mn) and others

57,15357,200

55,318

Up ¥1,835 million YoY		¥47 million below June forecast
H1 LY	H1 FY2024	June
results	results	forecast
		8

PARCO Major Store Tenant Transaction Volume Percentage Change

Shibuya and Shinsaibashi PARCO saw a significant YoY increase in revenue mainly due to growing popularity among foreign tourists to Japan.

Total comparable store transaction volume also continued to be strong, with double-digit

	increases continuing from last year.					(% change)
	Interim period of		YoY			vs. FY2019		vs. FY2018
	fiscal year ending	Q1	Q2	H1	Q1	Q2	H1	H1
	February 28, 2025
	results	results	results	results	results	results	results
	Sapporo PARCO	25.7	22.0	23.7	8.2)	32.2	19.6)	17.0
	Urawa PARCO	14.4	11.0	12.7	13.0)	16.5	14.7)	21.4
	Ikebukuro PARCO	19.4	16.3	17.8	0.8)	13.7	7.1)	4.9
	Shibuya PARCO	41.7	35.9	38.7	2,878.0)	3,110.9	2,991.5)	3,050.0
	Chofu PARCO	3.1	4.2	3.6	(0.5)	8.6	3.8)	7.6
	Nagoya PARCO	20.3	17.0	18.6	(4.1)	3.4	(0.5)	0.6
	Shinsaibashi PARCO	47.6	54.0	50.9	―	―	―	―
	Fukuoka PARCO	12.2	15.5	13.9	11.5)	23.2	17.2)	20.3
	Total all stores	14.8	15.1	14.9	17.9)	31.5	24.5)	29.9
	Total
	17.9	18.0	18.0	0.4)	9.5	4.8)	5.4
	comparable stores
* Kinshicho PARCO opened on March 16, 2019, Shibuya PARCO on November 22, 2019, and Shinsaibashi PARCO on November 20, 2020.

*Utsunomiya PARCO closed on May 31, 2019, Kumamoto PARCO on February 29, 2020, Tsudanuma PARCO on February 28, 2023, and Shintokorozawa	9
PARCO on February 29, 2024.