Consolidated Financial Results for the First Nine Months of the Fiscal Year Ending February 28, 2026

December 26, 2025

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: Keiichi Ono, President and Representative Executive Officer

Inquiries: Hajime Inagami, Executive Officer, Senior General Manager of Board of Directors Office and Corporate Communications Division

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

Scheduled date to commence dividend payments: -

Preparation of supplementary material on financial results: Yes

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

1. Consolidated performance for the first nine months of the fiscal year ending February 28, 2026 (from March 1, 2025 to November 30, 2025)
   1. Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

      	Gross sales		Sales revenue		Business profit		Operating profit		Profit before tax
      Nine months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      November 30, 2025	940,365	2.9	328,127	3.8	41,511	(7.4)	40,692	(20.4)	37,440	(24.2)
      November 30, 2024	914,141	11.6	315,982	10.3	44,828	46.1	51,142	66.7	49,377	65.4

      	Profit attributable to owners of parent		Total comprehensive income		Basic earnings per share	Diluted earnings per share
      Nine months ended	Millions of yen	%	Millions of yen	%	Yen	Yen
      November 30, 2025	24,684	(33.4)	24,932	(34.1)	98.33	98.22
      November 30, 2024	37,041	71.4	37,842	72.5	143.04	142.82

      * 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.

1. Consolidated financial position

1. Cash dividends

   	Annual dividends
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   Fiscal year ended February 28, 2025 Fiscal year ending February 28, 2026	Yen	Yen	Yen	Yen	Yen
   	- -	22.00 27.00	- -	30.00	52.00
   Fiscal year ending February 28, 2026 (Forecast)				27.00	54.00

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

2. Consolidated earnings forecasts for the fiscal year ending February 28, 2026 (from March 1, 2025 to February 28, 2026)

   (Percentages indicate year-on-year changes.)

   	Gross sales		Sales revenue		Business profit		Operating profit		Profit before tax
   Fiscal year ending February 28, 2026	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
   	1,293,000	1.9	452,000	2.3	48,500	(9.3)	44,000	(24.4)	39,500	(29.2)

   	Profit attributable to owners of parent		Basic earnings per share
   	Millions of yen	%	Yen
   Fiscal year ending February 28, 2026	26,000	(37.2)	103.13

   Note: Revisions to the consolidated earnings forecasts most recently announced: None

   * Notes

   1. Significant changes in the scope of consolidation during the period: 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

   3. Number of issued shares (common shares)

      1. Total number of issued shares at the end of the period (including treasury shares)

         As of November 30, 2025	270,565,764 shares
         As of February 28, 2025	270,565,764 shares

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

         As of November 30, 2025	22,046,280 shares
         As of February 28, 2025	14,093,649 shares

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

• Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified public accountants or an audit corporation: None
• 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. Overview of operating results (4) 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.

Index

1. Overview of operating results 2

   1. Overview of operating results for the period 2

   2. Overview of financial position for the period 6

   3. Overview of cash flow position for the period 6

   4. Explanation of consolidated earnings forecasts and other forward-looking statements 6

2. Condensed quarterly consolidated financial statements and significant notes thereto 7

   1. Condensed quarterly consolidated statement of financial position 7

   2. Condensed quarterly consolidated statement of profit or loss 9

   3. Condensed quarterly consolidated statement of comprehensive income 10

   4. Condensed quarterly consolidated statement of changes in equity 11

   5. Condensed quarterly consolidated statement of cash flows 13

   6. Notes to condensed quarterly consolidated financial statements 14

(Notes on premise of going concern) 14

(Segment information) 14

1. Overview of operating results
   1. Overview of operating results for the period

      (Millions of yen, %)	Nine months ended November 30, 2025 (from March to November)
      	Results	Year-on-year changes
      		Change in amount	Change in percentage
      Gross sales	940,365	26,224	2.9
      Sales revenue	328,127	12,145	3.8
      Gross profit	161,626	3,005	1.9
      Selling, general and administrative expense	120,115	6,322	5.6
      Business profit	41,511	(3,317)	(7.4)
      Other operating income	3,186	(5,849)	(64.7)
      Other operating expenses	4,005	1,284	47.2
      Operating profit	40,692	(10,450)	(20.4)
      Profit attributable to owners of parent	24,684	(12,357)	(33.4)

      (Reference) Third quarter of the fiscal year ending February 28, 2026 (from September to November)
      Results	Year-on-year changes
      	Change in amount	Change in percentage
      317,791	14,119	4.6
      108,202	1,588	1.5
      54,095	3,921	7.8
      40,764	2,942	7.8
      13,330	978	7.9
      247	119	92.9
      2,860	2,158	307.3
      10,717	(1,061)	(9.0)
      6,329	(1,617)	(20.4)

      In the nine months ended November 30, 2025 (from March 1, 2025 to November 30, 2025), consolidated sales revenue was primarily driven by strong performance in domestic customer sales in the Department Store Business, as well as the SC (Shopping Center) Business. However, there was a significant decrease in duty-free sales in the Department Store Business, which grew significantly in the previous fiscal year. As a result, consolidated sales revenue was ¥328,127 million, up 3.8% year on year, business profit was

      ¥41,511 million, down 7.4% year on year. Additionally, due to the reactionary decrease following the gain on step acquisition recorded in the previous fiscal year from the acquisition of shares (subsidiarization) of Shinsaibashi Kyodo Center Building, K.K., operating profit was ¥40,692 million, down 20.4% year on year, and profit attributable to owners of parent was ¥24,684 million, down 33.4% year on year.

      In addition, in the third quarter of the fiscal year ending February 28, 2026 (from September to November), consolidated sales revenue was ¥108,202 million, up 1.5% year on year, business profit was

      ¥13,330 million, up 7.9% year on year. Operating profit was ¥10,717 million, down 9.0% year on year mainly due to the recording of a loss on liquidation of business following the decision to cease operations of Shizuoka PARCO, and profit attributable to owners of parent was ¥6,329 million, down 20.4% year on year.

      During the nine months ended November 30, 2025, the Japanese economy generally showed signs of a gradual recovery mainly due to steady personal consumption on the back of an improvement in employment and income conditions, among other factors, despite some signs of the impact of U.S. trade policies. Meanwhile, we recognize that we need to keep a close eye on the downward pressure on consumer sentiment due mainly to the outlook for domestic and overseas economies and rising prices amid further mounting uncertainties on the back of increasing geopolitical risks, etc.

      Under these circumstances, in the Medium-term Business Plan (FY2024-FY2026) which began in the previous fiscal year, the Group is focusing on further deepening the retail businesses, particularly the Department Store Business and the SC Business, evolving Group synergies to realize dramatic growth, and strengthening the Group’s management foundation to enhance the effectiveness of these strategies.

      As part of efforts to further deepen the retail business, in the Department Store Business, we implemented a large-scale renovation of the Matsuzakaya Nagoya store to cultivate loyalty among existing customers and attract next-generation customers, and finished the renewal of the Main Building at the end of August. Additionally, the official store for Expo 2025 Osaka, Kansai, which was well received by many customers, continued its operations outside the venue at the Daimaru Umeda and Daimaru Tokyo stores even after the expo concluded. In the SC Business, we promoted a large-scale renovation of flagship stores such as Shibuya PARCO, Hiroshima PARCO, and Sendai PARCO. At Shibuya PARCO in particular, we completed a large-scale renovation based on a theme of “global niche” in September.

      To evolve Group synergies, we have announced the opening of “HAERA,” a new luxury mall managed by us in “The Landmark Nagoya Sakae,” for the early summer of 2026 to further improve the competitive superiority in the Nagoya area which we position as a key area. In order to expand the Group’s customer base, following the launch of the GINZA SIX Card and PARCO Card in the previous fiscal year, we launched the Hakata Daimaru Card in March and are working to acquire new card members. With regard to ownership and development of in-house content, we established JFR & KOMEHYO PARTNERS Co., Ltd., a reuse business joint venture company with Komehyo Co., Ltd., and gradually opened “MEGRUS” branded product repurchasing specialist shops in Daimaru Matsuzakaya Department Stores and PARCO stores. Daimaru Matsuzakaya Department Stores Co. Ltd. collaborated with a partner company to develop next-generation sweets brands, and opened several of these brands within our department store locations. Additionally, PARCO Co., Ltd. established “PARCO GAMES” and began selling two titles and official goods in November.

      As part of efforts to strengthen the Group’s management foundation, with the aim of improving medium-to long-term return on equity and optimizing equity capital, we conducted the purchase of treasury shares for ¥15 billion in total. In order to promote sustainability management aimed at tackling social issues and finding solutions for them through business, we issued “Sustainability Bonds.” Additionally, for the fifth consecutive year, we were awarded “Gold” in the “PRIDE Index,” an index that evaluates corporations’ efforts for LGBT.

      Business results by segment are as follows.

      Due to reorganization within the Group as of September 1, 2024, a part of the management business of J. Front One Partner Co., Ltd., which had been included in “Other,” was transferred to PARCO SPACE SYSTEMS Co., Ltd. that is included in the “Developer Business” and another company. As a result, results have been retroactively adjusted as if the transfer took place at the beginning of the fiscal year ended February 28, 2025 (as of March 1, 2024).

      (Millions of yen, %)	Nine months ended November 30, 2025 (from March to November)
      	Results	Year-on-year changes
      		Change in amount	Change in percentage
      Sales revenue	194,158	7,087	3.8
      Business profit	23,896	(3,076)	(11.4)
      Operating profit	22,856	(2,421)	(9.6)

      (Reference) Third quarter of the fiscal year ending February 28, 2026 (from September to November)
      Results	Year-on-year changes
      	Change in amount	Change in percentage
      64,546	4,755	8.0
      7,895	995	14.4
      6,206	296	5.0

      With regard to the performance of the Department Store Business in the nine months ended November 30, 2025, sales revenue was ¥194,158 million, up 3.8% year on year, business profit was ¥23,896 million, down 11.4% year on year, and operating profit was ¥22,856 million, down 9.6% year on year.

      As for the performance in the third quarter of the fiscal year ending February 28, 2026 (from September to November), sales revenue was ¥64,546 million, up 8.0% year on year, business profit was ¥7,895 million, up 14.4% year on year, and operating profit was ¥6,206 million, up 5.0% year on year.

      In the nine months ended November 30, 2025, although sales to domestic customers were firm, duty-free sales declined primarily for luxury items. As a result, business profit decreased year on year. Meanwhile, in the third quarter of the fiscal year ending February 28, 2026 (from September to November), duty-free sales increased year on year due to the revenue boost from the Expo 2025 Osaka, Kansai official shop, along with favorable sales of luxury items driven by strengthened events targeting affluent customers, an increase in inbound tourists, and the yen’s depreciation trend in foreign exchange rates, among other factors. As a result, having absorbed the increase of selling, general, and administrative expenses, business profit increased.

      In this environment, based on our key strategies, we aimed to establish competitive superiority in the affluent business by expanding our customer base through new customer acquisition and hosting invitation events for out-of-store sales customers at the Matsuzakaya Nagoya store. We also enhanced events and experiential content targeting affluent customers at each store.

      In preparation for new growth in the retail business, regarding the development and ownership of in-house contents that integrate our organizational capabilities, such as discernment, procurement capabilities, and networks, we collaborated with a partner company to develop next-generation sweets brands and opened two brands in October at the Daimaru Sapporo and Daimaru Tokyo stores. We established a company managing and selling original sweets through a joint investment and opened a new sweets brand in the Daimaru Tokyo Store in October.

      (Millions of yen, %)	Nine months ended November 30, 2025 (from March to November)
      	Results	Year-on-year changes
      		Change in amount	Change in percentage
      Sales revenue	50,195	1,911	4.0
      Business profit	12,786	867	7.3
      Operating profit	13,033	1,844	16.5

      (Reference) Third quarter of the fiscal year ending February 28, 2026 (from September to November)
      Results	Year-on-year changes
      	Change in amount	Change in percentage
      17,080	608	3.7
      4,460	378	9.3
      3,495	(576)	(14.1)

      With regard to the performance of the SC Business in the nine months ended November 30, 2025, sales revenue was ¥50,195 million, up 4.0% year on year, business profit was ¥12,786 million, up 7.3% year on year, and operating profit was ¥13,033 million, up 16.5% year on year.

      As for the performance in the third quarter of the fiscal year ending February 28, 2026 (from September to November), sales revenue was ¥17,080 million, up 3.7% year on year, business profit was ¥4,460 million, up 9.3% year on year, and operating profit was ¥3,495 million, down 14.1% year on year.

      In the nine months ended November 30, 2025, operating revenue increased due to the growth in store leasing revenue, driven by the continued strong performance of domestic and inbound transaction volume, and an increase in payment fee income, among other factors, resulting in an increase in business profit. In the third quarter of the fiscal year ending February 28, 2026 (from September to November), operating profit fell below the level of the previous fiscal year mainly due to the recording of a loss on liquidation of business following the decision to cease operations of Shizuoka PARCO at the end of January 2027 (scheduled).

      In this environment, as a key strategy of the Medium-term Business Plan, we are promoting building frame restructuring that will structurally evolve store operations. Specifically, we completed a large-scale renovation of Shibuya PARCO in September; we strengthened content originating from Japan based on the theme of “global niche” with the opening of the world’s first official experiential shop for a popular manga series and the first flagship store in Japan for a popular game company, among other initiatives.

      Additionally, we opened an entertainment floor at Hiroshima PARCO and implemented a large-scale renovation of Sendai PARCO, the largest of its kind since the building was opened.

      In regard to expansion of contents business, we made a full-scale entry into the game publishing business by utilizing our unique discernment ability and creativity cultivated through business expansion in culture domains. The new “PARCO GAMES” label launched in August began sales of “The Berlin Apartment,” its first publishing title, and “Constance,” its second title, in November.

      (Millions of yen, %)	Nine months ended November 30, 2025 (from March to November)
      	Results	Year-on-year changes
      		Change in amount	Change in percentage
      Sales revenue	61,831	(3,183)	(4.9)
      Business profit	5,775	(607)	(9.5)
      Operating profit	5,679	(677)	(10.6)

      (Reference) Third quarter of the fiscal year ending February 28, 2026 (from September to November)
      Results	Year-on-year changes
      	Change in amount	Change in percentage
      18,538	(7,418)	(28.6)
      1,327	(705)	(34.7)
      1,219	(822)	(40.2)

      With regard to the performance of the Developer Business in the nine months ended November 30, 2025, sales revenue was ¥61,831 million, down 4.9% year on year, business profit was ¥5,775 million, down 9.5% year on year, and operating profit was ¥5,679 million, down 10.6% year on year.

      As for the performance in the third quarter of the fiscal year ending February 28, 2026 (from September to November), sales revenue was ¥18,538 million, down 28.6% year on year, business profit was ¥1,327 million, down 34.7% year on year, and operating profit was ¥1,219 million, down 40.2% year on year.

      Sales revenue for the nine months ended November 30, 2025 decreased primarily due to a reactionary decline following large-scale construction orders in the previous fiscal year for J. Front Design & Construction Co., Ltd., and a reactionary decline following the gain on the sale of properties held in the previous fiscal year for J. Front City Development Co., Ltd. As a result, business profit and operating profit both decreased.

      As a key area strategy for the Company, we announced we will open “HAERA,” a new commercial facility in “The Landmark Nagoya Sakae” currently under development in Nishiki 3-chome, Naka-ku, Nagoya City, in early summer of 2026. Each company of the Group has been working together with the local community to advance the development plan for the “Shinsaibashi project (tentative name) (Shinsaibashi, Osaka)” and the redevelopment plan for the “Tenjin 2-chome South Block Station-front East West Street Area Project (tentative name).” We will continue to enhance our presence and generate synergies in each area with the retail business at the core.

      (Millions of yen, %)	Nine months ended November 30, 2025 (from March to November)
      	Results	Year-on-year changes
      		Change in amount	Change in percentage
      Sales revenue	10,045	255	2.6
      Business profit	611	(1,105)	(64.4)
      Operating profit	578	(979)	(62.9)

      (Reference) Third quarter of the fiscal year ending February 28, 2026 (from September to November)
      Results	Year-on-year changes
      	Change in amount	Change in percentage
      3,424	123	3.7
      161	(492)	(75.2)
      148	(509)	(77.4)

      With regard to the performance of the Payment and Finance Business in the nine months ended November 30, 2025, sales revenue was ¥10,045 million, up 2.6% year on year, business profit was ¥611 million, down 64.4% year on year, and operating profit was ¥578 million, down 62.9% year on year.

      As for the performance in the third quarter of the fiscal year ending February 28, 2026 (from September to November), sales revenue was ¥3,424 million, up 3.7% year on year, business profit was ¥161 million, down 75.2% year on year, and operating profit was ¥148 million, down 77.4% year on year.

      Sales revenue for the nine months ended November 30, 2025 increased partly due to an expansion in card transaction volume, transaction volume in the affiliate business, etc., despite an increase in point cost. On the other hand, Business profit and operating profit decreased due to an increase in costs for acquiring members associated with the issuance of new cards and advertising expenses, as well as increased personnel expenses for the consolidation of Group cards.

      Under such circumstances, following the new issuance of the PARCO Card in February and the Hakata Daimaru Card in March this year, we completed the consolidation of Group cards. To expand the card membership base, we launched a new service in September for Daimaru Matsuzakaya Cards that allows for immediate issuance and usage, and are promoting acquisition measures in collaboration with each company. Furthermore, we are implementing credit limit expansion and optimization to expand card transaction volume. In the Affiliated Store Business, we are working on acquiring affiliates mainly in key areas, and transaction volume has increased due to the expansion of acquiring operations at the Group commercial facilities. Also, regarding our initiative to combat the unauthorized use of credit cards, a challenge for the industry, the effect of various measures has led to a reduction in unauthorized use, and we will continue to implement measures.

   2. Overview of financial position for the period (Position of assets, liabilities, and equity)

      (Millions of yen, %)	As of February 28, 2025	As of November 30, 2025	Change in amount
      Current assets	241,045	238,907	(2,138)
      Non-current assets	923,101	910,061	(13,040)
      Total assets	1,164,147	1,148,968	(15,179)
      Current liabilities	341,341	338,744	(2,597)
      Non-current liabilities	399,570	392,797	(6,773)
      Total liabilities	740,911	731,541	(9,370)
      Equity attributable to owners of parent	409,646	404,915	(4,731)
      Ratio of equity attributable to owners of parent to total assets	35.2	35.2	0.0
      Total equity	423,235	417,426	(5,809)

      Total assets as of November 30, 2025 was ¥1,148,968 million, a decrease of ¥15,179 million compared with February 28, 2025. Total liabilities was ¥731,541 million, a decrease of ¥9,370 million compared with February 28, 2025. Total equity was ¥417,426 million, a decrease of ¥5,809 million compared with February 28, 2025.

   3. Overview of cash flow position for the period

      (Millions of yen)	Nine months ended November 30, 2024	Nine months ended November 30, 2025	Change in amount
      Net cash flows from (used in) operating activities	71,012	51,042	(19,970)
      Net cash flows from (used in) investing activities	(17,287)	(11,018)	6,269
      Free cash flows	53,724	40,023	(13,701)
      Net cash flows from (used in) financing activities	(63,796)	(62,358)	1,438
      Net increase (decrease) in cash and cash equivalents	(10,071)	(22,334)	(12,263)

      (Millions of yen)	As of February 28, 2025	As of November 30, 2025	Change in amount
      Cash and cash equivalents at end of period	54,975	32,610	(22,365)

      The balance of cash and cash equivalents (hereinafter “cash”) as of November 30, 2025 amounted to

      ¥32,610 million, down ¥22,365 million compared with February 28, 2025 (¥54,975 million).

      Cash flow positions in the nine months ended November 30, 2025 and the factors for these were as follows.

      1. Net cash flows from (used in) operating activities

         Net cash provided by operating activities was ¥51,042 million. In comparison with the nine months ended November 30, 2024, cash provided decreased by ¥19,970 million, mainly due to an increase in income taxes paid.

      2. Cash flows from (used in) investing activities

         Net cash used in investing activities was ¥11,018 million. In comparison with the nine months ended November 30, 2024, cash used decreased by ¥6,269 million, mainly due to a rebound effect from the purchase of shares of subsidiaries resulting in change in scope of consolidation in the previous year.

      3. Cash flows from (used in) financing activities

         Net cash used in financing activities was ¥62,358 million. In comparison with the nine months ended November 30, 2024, cash used decreased by ¥1,438 million mainly due to proceeds from issuance of bonds, despite an increase in purchase of treasury shares.

   4. Explanation of consolidated earnings forecasts and other forward-looking statements

   The consolidated earnings forecasts are unchanged from the forecasts for the fiscal year ending February 28, 2026 announced on October 14, 2025.

2. Condensed quarterly consolidated financial statements and significant notes thereto

1. Condensed quarterly consolidated statement of financial position

   As of February 28, 2025 As of November 30, 2025

   Millions of yen Millions of yen

   Assets

   Current assets

   Cash and cash equivalents	54,975	32,610
   Trade and other receivables	156,663	175,051
   Other financial assets	8,690	10,197
   Inventories	12,662	13,614

   Other current assets 6,421 7,433 Subtotal 239,414 238,907

   Assets held for sale 1,631 -

   Total current assets 241,045 238,907 Non-current assets

   Property, plant and equipment	469,417	466,164
   Right-of-use assets	136,389	124,379
   Goodwill	6,799	6,799
   Investment property	177,176	179,690
   Intangible assets	8,350	9,187
   Investments accounted for using equity method	27,840	27,928
   Other financial assets	81,535	79,715
   Deferred tax assets	3,190	3,245
   Other non-current assets	12,402 12,950
   Total non-current assets	923,101 910,061
   Total assets	1,164,147 1,148,968

   Liabilities and equity Liabilities

   Current liabilities

   As of February 28, 2025 As of November 30, 2025 Millions of yen Millions of yen

   Bonds and borrowings	53,330		40,230
   Trade and other payables	162,810		174,855
   Lease liabilities	25,294		24,978
   Other financial liabilities	28,262		27,659
   Income tax payables	11,576		5,677
   Provisions	785		611
   Other current liabilities	59,280		64,732
   Total current liabilities	341,341		338,744
   Non-current liabilities
   Bonds and borrowings	136,728		138,505
   Lease liabilities	148,225		137,597
   Other financial liabilities	33,368		33,857
   Retirement benefit liabilities	15,369		15,550
   Provisions	5,905		6,119
   Deferred tax liabilities	59,519		60,698
   Other non-current liabilities	453		467
   Total non-current liabilities	399,570		392,797
   Total liabilities	740,911		731,541
   Equity
   Capital	31,974		31,974
   Share premium	188,081		187,399
   Treasury shares	(23,940)		(38,617)
   Other components of equity	14,219		14,570
   Retained earnings	199,311		209,589
   Total equity attributable to owners of parent	409,646		404,915
   Non-controlling interests	13,588		12,511
   Total equity	423,235		417,426
   Total liabilities and equity	1,164,147		1,148,968

2. Condensed quarterly consolidated statement of profit or loss

   	Nine months ended	Nine months ended
   	November 30, 2024	November 30, 2025
   	Millions of yen	Millions of yen
   Sales revenue	315,982	328,127
   Cost of sales	(157,361)	(166,501)
   Gross profit	158,621	161,626
   Selling, general and administrative expense	(113,793)	(120,115)
   Other operating income	9,035	3,186
   Other operating expenses	(2,721)	(4,005)
   Operating profit	51,142	40,692
   Finance income	606	589
   Finance costs	(3,210)	(4,635)
   Share of profit (loss) of investments accounted for using equity method	839	793
   Profit before tax	49,377	37,440
   Income tax expense	(12,172)	(12,847)
   Profit	37,205	24,593
   Profit attributable to:
   Owners of parent	37,041	24,684
   Non-controlling interests	164	(91)
   Profit	37,205	24,593
   Earnings per share
   Basic earnings per share (Yen)	143.04	98.33
   Diluted earnings per share (Yen)	142.82	98.22

3. Condensed quarterly consolidated statement of comprehensive income

   Nine months ended

   November 30, 2024

   Nine months ended

   November 30, 2025

   Millions of yen Millions of yen

   Profit 37,205 24,593

   Other comprehensive income

   Items that will not be reclassified to profit or loss Financial assets measured at fair value through other comprehensive income

   Share of other comprehensive income of

   588 361

   0 0

   entities accounted for using equity method

   Total items that will not be reclassified to profit or

   loss

   588 361

   Items that may be reclassified to profit or loss

   Cash flow hedges (38) 52

   Exchange differences on translation of foreign

   operations

   Share of other comprehensive income of

   88 (74)

   (2) -

   entities accounted for using equity method

   Total items that may be reclassified to profit or

   47 (22)

   loss

   Other comprehensive income, net of tax 636 339 Comprehensive income 37,842 24,932

   Comprehensive income attributable to:

   Owners of parent	37,677	25,022
   Non-controlling interests	164	(89)
   Comprehensive income	37,842	24,932

4. Condensed quarterly consolidated statement of changes in equity

   Nine months ended November 30, 2024

   Equity attributable to owners of parent

   Other components of equity

   Capital Share premium Treasury shares

   Exchange differences on translation of foreign operations

   Cash flow hedges

   Financial assets measured at fair value through other comprehensive

   income

   Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Balance at March 1, 2024 31,974 189,172 (14,231) 314 17 7,050

   Profit – – – – – -Other comprehensive income – – – 86 (38) 588

   Total comprehensive income

   – – – 86 (38) 588

   Purchase of treasury shares – (117) (11,455) – – -Dividends – – – – – -

   Share-based payment transactions

   Change due to capital increase of consolidated subsidiaries Obtaining of control of subsidiaries

   Transfer from other components of equity to retained earnings

   Total transactions with owners

   Balance at November 30, 2024

   – (1,108) 1,708 – – -

   -	-	-	-	-	-
   -	-	-	-	-	-
   – – – – -					(73)
   -	(1,225)	(9,746)	-	-	(73)
   31,974	187,946	(23,978)	401	(20)	7,566

   Equity attributable to owners of parent

   Other components of equity

   Non-controlling

   Remeasure-ments of defined

   Total

   Retained earnings

   Total

   interests Total

   benefit plans

   	Millions of yen	Millions of yen	Millions of yen	Millions of yen	Millions of yen	Millions of yen
   Balance at March 1, 2024	-	7,383	167,600	381,898	12,333	394,232
   Profit	-	-	37,041	37,041	164	37,205
   Other comprehensive income	-	636	-	636	0	636

   – 636	37,041	37,677	164	37,842
   – -	-	(11,572)	-	(11,572)
   – -	(10,879)	(10,879)	(64)	(10,943)
   – -	-	600	-	600
   – -	-	-	3	3
   – -	-	-	1,210	1,210
   – (73)	73	-	-	-

   Total comprehensive income

   Purchase of treasury shares Dividends

   Share-based payment transactions

   Change due to capital increase of consolidated subsidiaries Obtaining of control of subsidiaries

   Transfer from other components of equity to

   retained earnings

   Total transactions with

   – (73) (10,806) (21,851) 1,149 (20,701)

   owners

   Balance at November 30, 2024 – 7,946 193,835 397,724 13,648 411,372

   Nine months ended November 30, 2025

   Equity attributable to owners of parent

   Other components of equity

   Capital Share premium Treasury shares

   Exchange differences on translation of foreign operations

   Cash flow hedges

   Financial assets measured at fair value through other comprehensive

   Millions of yen		Millions of yen		Millions of yen		Millions of yen		Millions of yen	Millions of yen
   31,974		188,081		(23,940)		525		(29)	13,722
   -		-		-		-		-	-
   -		-		-		(74)		52	360
   -		-		-		(74)		52	360
   -		(63)		(15,006)		-		-	-
   -		-		-		-		-	-
   -		137		329		-		-	-

   income

   Balance at March 1, 2025 Profit

   Other comprehensive income Total comprehensive income

   Purchase of treasury shares Dividends

   Share-based payment transactions

   Change due to capital increase of consolidated subsidiaries Obtaining of control of subsidiaries

   Changes in ownership interests in subsidiaries

   Transfer from other components of equity to

   – – – – – -

   – – – – – -

   – (756) – – – -

   – – – – – 13

   retained earnings

   Total transactions with

   – (682) (14,677) – – 13

   owners

   Balance at November 30, 2025 31,974 187,399 (38,617) 451 23 14,095

   Equity attributable to owners of parent

   Other components of equity

   Non-controlling

   Remeasure-ments of defined

   Total

   Retained earnings

   Total

   interests Total

   benefit plans Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen

   Balance at March 1, 2025	-	14,219	199,311	409,646	13,588	423,235
   Profit	-	-	24,684	24,684	(91)	24,593
   Other comprehensive income – 337 – 337 1 339

   -	337	24,684	25,022	(89)	24,932
   – -		-	(15,070)	-	(15,070)
   – -		(14,393)	(14,393)	(94)	(14,487)
   – -		-	466	-	466
   – -		-	-	1	1
   – -		-	-	324	324
   – -		-	(756)	(1,218)	(1,974)
   – 13		(13)	-	-	-

   Total comprehensive income

   Purchase of treasury shares Dividends

   Share-based payment transactions

   Change due to capital increase of consolidated subsidiaries Obtaining of control of subsidiaries

   Changes in ownership interests in subsidiaries

   Transfer from other components of equity to

   retained earnings

   Total transactions with

   – 13 (14,406) (29,753) (987) (30,741)

   owners

   Balance at November 30, 2025 – 14,570 209,589 404,915 12,511 417,426

5. Condensed quarterly consolidated statement of cash flows

   Nine months ended

   November 30, 2024

   Nine months ended

   November 30, 2025

   Millions of yen Millions of yen

   Cash flows from (used in) operating activities

   Profit before tax	49,377	37,440
   Depreciation and amortization expense	34,226	34,653
   Impairment losses	94	1,630
   Finance income	(606)	(589)
   Finance costs	3,210	4,635
   Share of loss (profit) of investments accounted for using equity method	(839)	(793)
   Loss (gain) on sales of non-current assets	(0)	(1,827)
   Loss on disposals of non-current assets	1,559	1,697
   Gain on step acquisition	(8,525)	-
   Decrease (increase) in inventories	831	(952)
   Decrease (increase) in trade and other receivables	(34,431)	(18,833)
   Increase (decrease) in trade and other payables	30,588	13,761
   Increase (decrease) in retirement benefit liabilities	325	181
   Decrease (increase) in retirement benefit assets	(34)	(84)
   Other, net	5,020	1,696
   Subtotal	80,797	72,617
   Interest received	114	116
   Dividends received	117	135
   Interest paid	(3,322)	(4,627)
   Income taxes paid	(10,390)	(17,734)
   Income taxes refund	3,695	536
   Net cash flows from (used in) operating activities	71,012	51,042
   Cash flows from (used in) investing activities
   Purchase of property, plant and equipment	(9,232)	(10,278)
   Proceeds from sales of property, plant and equipment, and intangible assets	10	3,412
   Purchase of investment property	(1,142)	(2,105)
   Proceeds from sales of investment property	-	679
   Purchase of intangible assets	(2,033)	(3,219)
   Purchase of investment securities	(1,055)	(563)
   Proceeds from sales of investment securities	1,486	510
   Proceeds from refund of guarantee deposits	2,289	2,290
   Purchase of shares of subsidiaries resulting in change in scope of consolidation	(6,220)	-
   Other, net	(1,388)	(1,745)
   Net cash flows from (used in) investing activities	(17,287)	(11,018)
   Cash flows from (used in) financing activities
   Net increase (decrease) in current borrowings	-	(15,000)
   Repayments of non-current borrowings	(715)	(26,215)
   Proceeds from issuance of bonds	-	29,849
   Redemption of bonds	(20,000)	-
   Repayments of lease liabilities	(20,579)	(19,807)
   Purchase of treasury shares	(11,572)	(15,070)
   Dividends paid	(10,868)	(14,370)
   Dividends paid to non-controlling interests	(64)	(94)
   Purchase of shares of subsidiaries not resulting in change in scope of consolidation	-	(1,970)
   Other, net	3	320
   Net cash flows from (used in) financing activities	(63,796)	(62,358)
   Net increase (decrease) in cash and cash equivalents	(10,071)	(22,334)
   Cash and cash equivalents at beginning of period	71,342	54,975

   Effect of exchange rate changes on cash and cash

   35 (30)

   equivalents

   Cash and cash equivalents at end of period 61,307 32,610

6. Notes to condensed quarterly consolidated financial statements

   (Notes on premise of going concern) No items to report.

   (Segment information)

   1. Overview of reportable segments

      The reportable segments of the Group are constituent units of the Group for which separate financial information is obtainable. These segments are periodically examined by the Board of Directors for the purpose of deciding the allocation of management resources and evaluating business results.

      The Group is comprised, under a holding company structure, of the reportable segments “Department Store Business,” “SC Business,” “Developer Business” and “Payment and Finance Business,” with the Department Store Business at its core.

      The Department Store Business carries out the sale of clothing, general goods, household goods, food products and others. The SC Business undertakes development, management, supervision and operation, etc. of shopping centers. The Developer Business carries out development, sales, supervision, operation, interior decorating work, etc. of real estate. The Payment and Finance Business undertakes issuance and administration, etc. of credit cards.

      Due to reorganization within the Group as of September 1, 2024, a part of the management business of J. Front One Partner Co., Ltd., which had been included in “Other,” was transferred to PARCO SPACE SYSTEMS Co., Ltd. that is included in the “Developer Business” and another company. As a result, results have been retroactively adjusted as if the transfer took place at the beginning of the fiscal year ended February 28, 2025 (as of March 1, 2024).

   2. Segment revenue and business results

      Revenue and business results by reportable segments of the Group are as follows. Inter-segment transactions are generally based on prevailing market prices.

      Nine months ended November 30, 2024

      Reportable segments

      Department Store Business

      SC Business

      Developer Business

      Payment and Finance Business

      Total

      Other Total Adjustments Consolidated

      Millions of yen

      Millions of yen

      Millions of yen

      Millions of yen

      Millions of yen

      Millions of yen

      Millions of yen

      Millions of yen

      Millions of yen

      External revenue 186,787 47,359 49,704 4,252 288,104 27,871 315,975 7 315,982

      Inter-segment revenue

      283 925 15,310 5,537 22,056 7,487 29,543 (29,543) -

      Total	187,071		48,284	65,014	9,790	310,160	35,358	345,519		(29,536)	315,982
      Segment profit	25,277		11,189	6,356	1,557	44,380	417	44,798		6,343	51,142
      Finance income											606
      Finance costs											(3,210)
      Share of profit (loss) of

      investments

      accounted for using equity method

      839

      Profit before tax 49,377

      Notes: 1. The “Other” category is a business segment not included in reportable segments. It includes wholesaling, parking, leasing, etc.

      1. The adjustments for segment profit include inter-segment eliminations and corporate income and expenses not attributable to any business segment. Corporate income and expenses are mainly income and expenses of the company submitting condensed quarterly consolidated financial statements that are not attributable to any business segment.

      2. Segment profit is adjusted to operating profit in the condensed quarterly consolidated financial statements.

Nine months ended November 30, 2025

Reportable segments

Department Store Business

SC Business

Developer Business

Payment and Finance Business

Total

Other Total Adjustments Consolidated

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

External revenue 193,853 49,276 45,953 3,508 292,591 35,530 328,122 5 328,127

Inter-segment revenue

304 919 15,878 6,536 23,638 8,353 31,991 (31,991) -

investments accounted for using equity method

793

Profit before tax 37,440

Notes: 1. The “Other” category is a business segment not included in reportable segments. It includes wholesaling, parking, leasing, etc.

1. The adjustments for segment profit include inter-segment eliminations and corporate income and expenses not attributable to any business segment. Corporate income and expenses are mainly income and expenses of the company submitting condensed quarterly consolidated financial statements that are not attributable to any business segment.

2. Segment profit is adjusted to operating profit in the condensed quarterly consolidated financial statements.