Translation

October 10, 2023

Consolidated Financial Results for the First Six Months of

the Fiscal Year Ending February 29, 2024

(under IFRS)

Company name: J. FRONT RETAILING Co., Ltd.

Listing: Tokyo Stock Exchange and Nagoya Stock Exchange

Securities code:

3086

URL:

https://www.j-front-retailing.com/

Representative:

Tatsuya Yoshimoto, President

Inquiries:

Hajime Inagami, General Manager of Corporate Communications Division

TEL: +81-3-6865-7621 (from overseas)

Scheduled date to file Quarterly Securities Report:

October 12, 2023

Scheduled date to commence dividend payments:

November 13, 2023

Preparation of supplementary material on quarterly financial results: Yes

(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated performance for the first six months of the fiscal year ending February 29, 2024 (from March 1, 2023 to August 31, 2023)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes.)

Gross sales

Sales revenue

Business profit

Operating profit

Profit before tax

Six months ended

Millions of

%

Millions of

%

Millions of

%

Millions of

%

Millions of

%

yen

yen

yen

yen

yen

August 31, 2023

540,132

16.4

191,634

13.3

20,197

48.2

19,684

48.7

18,804

53.8

August 31, 2022

464,130

16.8

169,129

7.5

13,629

272.9

13,237

-

12,223

-

Profit attributable

Total

Basic earnings

Diluted earnings

comprehensive

to owners of parent

per share

per share

income

Six months ended

Millions of

%

Millions of

%

Yen

Yen

yen

yen

August 31, 2023

12,900

27.0

14,788

43.4

49.19

49.15

August 31, 2022

10,155

-

10,311

-

38.75

38.72

  • 1. Of sales revenue, sales from purchase recorded at the time of sale (shoka shiire) of the "Department Store Business" have been converted into gross amount and the net amount of sales of the "SC Business" into tenant transaction volume (gross amount basis) to calculate gross sales.

2. Business profit is obtained by subtracting cost of sales and selling, general and administrative expense from sales revenue. Operating profit is obtained by adding other operating income to and subtracting other operating expenses from business profit.

(2) Consolidated financial position

Ratio of equity

Equity attributable

Total assets

Total equity

Equity attributable

attributable to

to owners of parent

to owners of parent

owners of parent to

total assets

per share

As of

Millions of yen

Millions of yen

Millions of yen

%

Yen

August 31, 2023

1,121,945

382,133

370,049

33.0

1,411.00

February 28, 2023

1,120,953

371,410

359,385

32.1

1,370.43

2. Cash dividends

Annual dividends

First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

-

15.00

-

16.00

31.00

February 28, 2023

Fiscal year ending

-

16.00

February 29, 2024

Fiscal year ending

-

17.00

33.00

February 29, 2024

(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending February 29, 2024 (from March 1, 2023 to February 29, 2024)

(Percentages indicate year-on-year changes.)

Gross sales

Sales revenue

Business profit

Operating profit

Profit before tax

Millions of

%

Millions of

%

Millions of

%

Millions of

%

Millions of

%

Fiscal year ending

yen

yen

yen

yen

yen

1,131,000

13.2

405,500

12.7

42,500

71.0

40,000

109.9

38,500

128.2

February 29, 2024

Profit attributable

Basic earnings

to owners of parent

per share

Millions of

%

Yen

yen

Fiscal year ending

27,000

89.6

102.95

February 29, 2024

Note: Revisions to the consolidated earnings forecasts most recently announced: Yes

  • Notes
  1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
  2. Changes in accounting policies, changes in accounting estimates
    1. Changes in accounting policies required by IFRS: None
    2. Changes in accounting policies due to other reasons: None
    3. Changes in accounting estimates: None
  4. Number of issued shares (common shares)
    1. Total number of issued shares at the end of the period (including treasury shares)

As of August 31, 2023

270,565,764 shares

As of February 28, 2023

270,565,764 shares

  1. Number of treasury shares at the end of the period

As of August 31, 2023

As of February 28, 2023

8,305,700 shares

8,323,612 shares

  1. Average number of shares during the period (cumulative from the beginning of the fiscal year)

For the six months ended August 31, 2023

262,251,040 shares

For the six months ended August 31, 2022

262,067,710 shares

  • Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
  • Proper use of earnings forecasts, and other special matters

(Caution regarding forward-looking statements)

The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. These statements do not purport that the Company pledges to realize such statements. Actual business and other results may differ substantially due to various factors. Please refer to "1. Qualitative information regarding results for the first six months (3) Explanation of consolidated earnings forecasts and other forward-looking statements" on page 6 of the material attached to this quarterly financial results report for the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof.

(How to obtain supplementary material on financial results)

Supplementary material on financial results was disclosed on the same day on TDnet.

[Attached Material]

Index

1.

Qualitative information regarding results for the first six months

2

(1)

Explanation of operating results

2

(2)

Explanation of financial position

6

(3)

Explanation of consolidated earnings forecasts and other forward-looking statements

6

2.

Condensed quarterly consolidated financial statements and significant notes thereto

8

(1)

Condensed quarterly consolidated statement of financial position

8

(2)

Condensed quarterly consolidated statement of profit or loss

10

(3)

Condensed quarterly consolidated statement of comprehensive income

11

(4)

Condensed quarterly consolidated statement of changes in equity

12

(5)

Condensed quarterly consolidated statement of cash flows

14

(6)

Notes to condensed quarterly consolidated financial statements

15

(Notes on premise of going concern)

15

(Segment information)

15

- 1 -

1. Qualitative information regarding results for the first six months

(1) Explanation of operating results

Six months ended August 31, 2023

(from March to August)

(Millions of yen, %)

Year-on-year changes

Against April

Results

announced figures

Change in

Change in amount

Change in amount

percentage

Gross sales

540,132

76,002

16.4

6,632

Sales revenue

191,634

22,505

13.3

(3,866)

Gross profit

93,382

10,521

12.7

382

Selling, general and

73,185

3,953

5.7

(815)

administrative expense

48.2

Business profit

20,197

6,568

1,197

Other operating income

1,817

(503)

(21.7)

817

Other operating expenses

2,329

(383)

(14.1)

829

Operating profit

19,684

6,447

48.7

1,184

Profit attributable to owners

12,900

2,745

27.0

400

of parent

In the six months ended August 31, 2023 (from March 1, 2023 to August 31, 2023), consolidated sales revenue was ¥191,634 million, up 13.3% year on year, operating profit was ¥19,684 million, up 48.7% year on year, and profit attributable to owners of parent was ¥12,900 million, up 27.0% year on year.

Against April announced figures, although sales revenue decreased, operating profit and profit attributable to owners of parent increased primarily due to increased business profit mainly in the Department Store Business, SC (Shopping Center) Business, Developer Business, etc.

During the six months ended August 31, 2023, the Japanese economy continued to show a moderate recovery due to personal consumption picking up, the increase in the number of foreign tourists visiting Japan and other factors as a result of social and economic activity normalizing because of factors such as COVID-19's category changing to Class 5 infectious disease.

Meanwhile, we recognize that we need to continue keeping a close eye on the risk of downward pressure on personal consumption, such as the cooling of consumer sentiment stemming from factors including soaring resource prices and rising prices.

In fiscal 2023, the final year of the Medium-term Business Plan, we have been accelerating the implementation of key strategies and measures in each business in order to surely capture domestic spending and inbound demand, which are beginning to recover, and to achieve a "prompt recovery in earnings power."

Specifically, based on our "Real x digital strategy," we promoted strategic investments to increase the attractiveness of our real stores, with a focus on our flagship stores in our Department Store Business and SC Business. As an initiative to strengthen our online business, we expanded the services of our "AnotherADdress" fashion subscription business and started our "Rakurich" frozen food delivery subscription service.

Under our "prime life strategy," we further strengthened product categories that are highly supported by customers, while we worked to develop new content outside the bounds of the typical department store merchandize line-up and expand the customer base through cultivation of next-generation customers.

For our "developer strategy," under the new business promotion structure launched in March of this year, we formulated and promoted medium- to long-term development plans, focusing on key areas in seven cities where we have a foundation, from the viewpoint of Group-wide optimization and effective utilization of held assets.

Furthermore, we decided to invest in six companies through a CVC (corporate venture capital) fund for business portfolio transformation with a view to 2030 and the creation of new businesses, and started investigating new ways to build relationships with customers through the community by investing in and collaborating with QON Inc.

- 2 -

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Disclaimer

J.FRONT Retailing Co. Ltd. published this content on 06 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 October 2023 08:09:06 UTC.