J. Front Retailing Co., Ltd.TSE: 3086

FY2/2026 Results presentation

· MarketScreener

Presentation of Results for Fiscal Year

          Ended February 28, 2026       

April 14, 2026

J. Front Retailing Co., Ltd.

Create and Bring to Life “New Happiness.”

Today’s Agenda

  1. FY2025 Results and FY2026 Forecast

  2. Progress of the Medium-term Business Plan and Initiatives for FY2026

FY2025 Results and FY2026 Forecast

NAGAMINE Takamasa

Managing Executive Officer

Senior Executive General Manager, Financial Strategy Unit

J. Front Retailing Co., Ltd.

Create and Bring to Life “New Happiness.”

FY2025 Consolidated P&L (IFRS)

Business profit declined YoY but increased compared to October forecast due to factors such as growth in SC and Developer.

Operating profit and profit attributable to owners of parent decreased due to the absence of the one-time gain (gain on step acquisition) recorded in the previous year.

Year-end dividend is planned to be as expected in October, with annual dividend increasing by ¥2 per share to ¥54.

(Billions of yen, unless otherwise stated)

Fiscal year ended February 28, 2026

H1

H2

Full year

Results

%

YoY

Results

%

YoY

Results

%

YoY

vs. Oct forecast

Gross sales

622.5

2.0)

667.9

1.5)

1,290.4

1.7)

(2.5)

Revenue

219.9

5.0

225.1

(3.2)

445.0

0.7

(6.9)

Gross profit

107.5

(0.8)

107.8

3.6

215.4

1.3

1.9

SGA

79.3

4.4

85.4

2.8

164.8

3.6

(0.1)

Business profit

28.1

(13.2)

22.4

6.7)

50.5

(5.4)

2.0)

Other operating income

2.9

(67.0)

1.1

(59.2)

4.1

(65.1)

0.6

Other operating expenses

1.1

(43.3)

4.5

(10.5)

5.7

(19.8)

(2.2)

Operating profit

29.9

(23.9)

19.0

1.1

49.0

(15.8)

5.0

Profit attributable to owners of parent

18.3

(36.9)

9.9

(19.5)

28.2

(31.7)

2.2

Dividend per share (Yen)

(Interim)

27

(Yen)

5

(Year-end) 27

(Yen)

(3)

(Annual)

54

(Yen)

2

(Yen)

0

ROE (%)

ー

ー

ー

ー

6.9

(RD) (3.6)

(RD) 0.5

ROIC (%)

ー

ー

ー

ー

5.9

(RD) (0.3)

(RD) 0.3

FY2025 Segment Performance (IFRS) (1)

(Billions of yen, unless otherwise stated)

FY2025

(Fiscal year ended February 28, 2026)

H1

H2

Full year

Results

% YoY

Results

% YoY

Results

% YoY

vs. Oct forecast

Department Store

Gross sales

393.8

(1.3)

434.8

2.1

828.6

0.5

(3.5)

Revenue

129.6

1.8

138.5

1.6

268.1

1.7

(3.0)

Business profit

16.0

(20.3)

14.8

7.1

30.9

(9.1)

(1.0)

Operating profit

16.6

(14.0)

13.2

28.1

29.8

0.6

(0.3)

SC

Gross sales

172.9

6.2

181.8

7.0

354.7

6.6

5.5

Revenue

33.1

4.1

34.1

4.8

67.2

4.4

0.2

Business profit

8.3

6.2

5.6

15.7

14.0

9.9

0.7

Operating profit

9.5

34.0

4.1

(27.9)

13.6

6.4

0.6

Developer

Gross sales

43.2

10.8

38.1

(26.2)

81.3

(10.2)

(1.8)

Revenue

43.2

10.8

38.1

(26.2)

81.3

(10.2)

(1.8)

Business profit

4.4

2.3

2.9

(26.7)

7.3

(11.6)

0.5

Operating profit

4.4

3.4

2.5

(33.8)

7.0

(14.2)

0.5

FY2025 Segment Performance (IFRS) (2)

(Billions of yen, unless otherwise stated)

FY2025

(Fiscal year ended February 28, 2026)

H1

H2

Full year

Results

% YoY

Results

% YoY

Results

% YoY

vs. Oct forecast

Payment and Finance

Gross sales

6.6

2.0

6.8

3.6

13.5

2.8

(0.4)

Revenue

6.6

2.0

6.8

3.6

13.5

2.8

(0.4)

Business profit

0.4

(57.7)

0.5

(10.8)

0.9

(41.2)

(0.2)

Operating profit

0.4

(52.3)

0.4

(12.3)

0.9

(37.0)

(0.2)

Other

Gross sales

29.5

28.9

30.2

4.1

59.8

15.0

(1.8)

Revenue

28.9

29.5

29.0

2.4

57.9

14.3

(1.8)

Business profit

0.4

18.6

0.0

(82.1)

0.5

(35.2)

(0.2)

Operating profit

0.3

(12.2)

0.1

(72.7)

0.4

(45.4)

(0.1)

Adjustments

Gross sales

(23.7)

-

(23.9)

-

(47.6)

-

(0.3)

Revenue

(21.6)

-

(21.5)

-

(43.2)

-

(0.0)

Business profit

(1.5)

-

(1.6)

-

(3.2)

-

2.3

Operating profit

(1.4)

-

(1.4)

-

(2.8)

-

4.5

Segment Information (IFRS): Main Reasons for Changes

Department Store Business

Revenue increased due to factors such as robust spending by the affluent and the effects of the Osaka Expo, but profit decreased due to increased costs such as price hikes.

Duty-free sales decreased by ¥20.0 billion YoY to ¥110.5 billion partly due to a decline in Chinese tourists visiting Japan since December.

SC Business

Thanks to strategic effects such as the expansion of IP content, both domestic customer and inbound tourist transaction volumes remained strong.

Since completing its major renovation, Shibuya PARCO has seen its tenant transaction volume increase by more than 20% YoY.

Developer Business

J. Front Design & Construction saw a decrease in revenue and profit due to the backlash from large construction orders in the previous year, but its operating profit exceeded October forecast.

J. Front City Development saw a decline in revenue and profit due to the rebound from the previous year’s property sales, but still achieved its October forecast.

Payment and Finance Business

Revenue increased due to factors such as higher transaction volume resulting from the expansion of the cardholder base and growth in merchant fees.

Profit declined due to increased costs associated with acquiring cardholders for newly issued cards.

Other

Daimaru Kogyo saw strong performance in its electronic devices department, but struggled in other areas such as automotive parts, resulting in increased revenue but decreased profit.

Daimaru Matsuzakaya Department Stores Major Store Sales

In H2, sales at directly managed stores increased by 2.4%.

Duty-free sales declined YoY but increased for full year.

Renovations at the Nagoya store (main building) were largely completed in H1, while the Umeda store saw a decline in revenue in H2 due to factors such as the closure of sales floors in preparation for major renovations starting in October.

(%)

Fiscal year ended February 28, 2026

YoY

H1

H2

Full year

Shinsaibashi Umeda Tokyo Kyoto Kobe Sapporo

Nagoya

(5.2)

2.5

(1.3)

12.7

(3.4)

4.3

(2.9)

2.3

(0.2)

(12.4)

(0.6)

(6.5)

0.2

6.4

3.4

(1.3)

(0.5)

(0.8)

0.8

7.3

4.1

Total

directly managed stores

(1.6)

2.4

0.5

Daimaru Matsuzakaya Department Stores Duty-free Sales

While duty-free sales began to recover in October, significant decline in customer numbers from December onward resulted in annual sales of ¥104.6 billion (down 13.4% YoY).

Total sales in the Department Store Business amounted to ¥110.5 billion (down 15.3% YoY).

In Q4, while customer numbers continued to decline, revenue decline was mitigated due to higher average customer spending.

15.0

12.5

10.0

7.5

Monthly sales (billions of yen)

Quarterly YoY change (%)

Q1

Q2

Q3

Q4

No. of customers

Up 14.2

Up 5.8

Up 15.4

Down 22.2

Average customer spending

Down 33.4

Down 24.9

Down 0.5

Up 8.0

Sales

Down 23.9

Down 20.6

Up 14.8

Down 16.6

Sales share by country (%)

5.0

2.5

0.0

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

FY2025

FY2024

FY2019

China Hong Kong Taiwan Korea Thailand Other

2025

FY2019 FY2024 FY2025

2026

64.0

65.6

84.8

0% 20% 40% 60% 80% 100%

Daimaru Matsuzakaya Department Stores SGA Analysis (IFRS)

Increased by ¥2.1 billion YoY, excluding Expo-related expenses.

Factors include increased sales commissions and higher outsourcing fees.

Other

Other

4,645

4,646

Personnel

846

Packing and

transportation

248

Labor

289

(408)

(435) Advertising Depreciation

126,037

Event planning expenses: Commissions: Up ¥2.9 billion

Up ¥600 million Outsourcing fees: Up ¥1.4 billion

Right-of-use assets: Down ¥600 million

Up ¥5,184 million YoY

577

Labor

Packing and transportation 313

(Millions of yen)

Personnel

(265) (315) (40)

Depreciation

Commissions: Up ¥500 million

126,300

Advertising (535)

Event planning fees: Up ¥300 million

120,853

¥263 million below October forecast

LY

Results

FY2025

Results

October Forecast

PARCO Major Store Tenant Transaction Volume Percentage Change

Both domestic customer and inbound tourist transaction volumes remained strong.

Total comparable store transaction volume increased by 7.9%.

In addition to Sendai and Nagoya PARCO, Shibuya PARCO has seen significant growth

since its major renovation.

(%)

Fiscal year ended February 28, 2026

YoY

H1

H2

Full year

Sapporo PARCO

9.6

6.6

8.0

Sendai PARCO

12.3

14.0

13.2

Urawa PARCO

4.8

6.9

5.9

Ikebukuro PARCO

(0.3)

2.3

1.0

Shibuya PARCO

4.1

27.7

15.8

Chofu PARCO

2.9

4.2

3.5

Nagoya PARCO

17.9

10.0

13.7

Shinsaibashi PARCO

9.7

(1.7)

3.7

Fukuoka PARCO

6.9

3.3

5.0

Total all stores

6.2

7.2

6.7

Total comparable stores

7.2

8.4

7.9

Consolidated BS Results (IFRS)

Total assets were ¥1,141.5 billion, a decrease of ¥22.5 billion from the end of the previous fiscal year.

Interest-bearing liabilities (excluding lease liabilities) were ¥176.5 billion, a reduction of ¥13.5 billion from the end of the previous fiscal year.

Equity attributable to owners of parent was ¥415.5 billion, an increase of ¥5.9 billion from the end of the previous fiscal year.

Total assets

～

～

1,164.1 1,141.5

Down 22.5

Feb 28, 2025 Feb 28, 2026

Interest-bearing liabilities

336.6

363.5

Down 13.5

(excluding lease liabilities)

Bonds/ borrowings 176.5

Bonds/ borrowings 190.0

Lease liabilities 160.1

Lease liabilities 173.5

Down 26.9

Feb 28, 2025 Feb 28, 2026

Equity attributable to owners of parent

Ratio of equity

attributable to owners of parent

35.2% 36.4%

409.6 415.5

Up 5.9

Feb 28, 2025 Feb 28, 2026

Consolidated CF Results (IFRS)

Net cash provided by operating activities was ¥66.9 billion, down ¥18.8 billion YoY due to factors such as an increase in corporate tax payments.

Net cash used in investing activities decreased by ¥13.1 billion YoY due to asset sales, despite investments in stores and other initiatives.

Net cash used in financing activities decreased by ¥3.2 billion YoY due to bond issuance and other factors, despite increased shareholder returns.

Operating cash flows Investing cash flows Free cash flow Financing cash flows

85.8

Balance of cash and deposit

66.9

57.5 51.8

54.9

36.0

＞

(15.1)

(28.3)

Figures in angle brackets represent YoY changes.

(74.0) (70.7)

(Billions of yen)

Resuls for fiscal year ended Feb 28, 2025 Resuls for fiscal year ended Feb 28, 2026

Business Environment Outlook for FY2026

＋） Corporate performance will remain strong, and improved income conditions will boost personal consumption.

＋） Driven by factors such as asset effects, consumption among the affluent will continue to grow.

±） Demand from inbound tourists will remain somewhat supported by the weaker yen, despite a continued decline in the number of Chinese tourists.

－） Concerns about rising costs due to inflation and the impact of high oil prices on consumer sentiment.

－） Need to adapt to changes in the business environment caused by global economic trends and shifts in the international landscape.

FY2025 Consolidated P&L (IFRS)

Aiming to increase both revenue and profit through sales growth across all business segments, including Department Store and SC.

Department Store projects profit decline due to factors such as the renovation of the Umeda store, with strong performance from SC and Developer driving growth.

Annual dividend per share is expected to be ¥56, an increase of ¥2.

(Billions of yen, unless otherwise stated)

Fiscal year ending February 28, 2027

H1

H2

Full year

Forecast

% YoY

Forecast

% YoY

Forecast

% YoY

Gross sales

633.0

1.7)

714.0

6.9

1,347.0

4.4)

Revenue

220.0

0.0

249.0

10.6

469.0

5.4

Gross profit

105.0

(2.4)

116.0

7.5

221.0

2.6

SGA

83.0

4.6

86.0

0.6

169.0

2.5

Business profit

22.0

(21.9)

30.0

33.8

52.0

2.8)

Other operating income

3.5

19.1

0.0

—

3.5

(15.3)

Other operating expenses

3.5

205.7

5.0

9.5

8.5

48.8

Operating profit

22.0

(26.6)

25.0

31.3

47.0

(4.1)

Profit attributable to owners of parent

14.0

(23.7)

15.0

51.1

29.0

2.5

Dividend per share (Yen)

(Interim) 28

(Yen) 1

(Year-end) 28

(Yen) 1

(Annual) 56

(Yen) 2

ROE (%)

—

—

—

—

—

—

—

—

6.9

5.7

(RD) 0.0

(RD) (0.2)

ROIC (%)

FY2026 Segment Performance (IFRS) (1)

(Billions of yen, unless otherwise stated)

FY2026

(Fiscal year ending February 28, 2027)

H1

H2

Full year

Forecast

% YoY

Forecast

% YoY

Forecast

% YoY

Department Store

Gross sales

394.8

0.2

449.2

3.3

844.0

1.8

Revenue

130.5

0.7

147.6

6.5

278.1

3.7

Business profit

12.6

(21.3)

16.4

10.1

29.0

(6.2)

Operating profit

13.7

(17.7)

15.8

19.6

29.5

(1.2)

SC

Gross sales

185.5

7.3

198.8

9.3

384.3

8.3

Revenue

35.2

6.3

37.2

8.9

72.4

7.6

Business profit

8.7

4.5

5.8

2.1

14.5

3.5

Operating profit

7.8

(18.2)

1.9

(54.0)

9.7

(29.0)

Developer

Gross sales

39.5

(8.8)

51.3

34.6

90.8

11.6

Revenue

39.5

(8.8)

51.3

34.6

90.8

11.6

Business profit

3.0

(32.6)

7.9

168.8

10.9

47.6

Operating profit

2.7

(39.5)

7.8

204.1

10.5

49.5

FY2026 Segment Performance (IFRS) (2)

(Billions of yen, unless otherwise stated)

FY2026

(Fiscal year ending February 28, 2027)

H1

H2

Full year

Forecast

% YoY

Forecast

% YoY

Forecast

% YoY

Payment and Finance

Gross sales

7.2

10.2

7.6

11.7

14.9

11.0

Revenue

7.2

10.2

7.6

11.7

14.9

11.0

Business profit

0.8

92.6

1.1

120.9

2.0

107.7

Operating profit

0.8

98.6

1.1

127.4

1.9

113.9

Other

Gross sales

30.7

3.7

34.0

12.4

64.7

8.1

Revenue

29.3

1.1

31.4

8.2

60.7

4.7

Business profit

0.0

-

0.4

404.2

0.4

(25.9)

Operating profit

0.0

-

0.3

151.5

0.3

(31.1)

Adjustments

Gross sales

(24.7)

-

(26.9)

-

(51.7)

-

Revenue

(21.7)

-

(26.1)

-

(47.9)

-

Business profit

(3.1)

-

(1.6)

-

(4.8)

-

Operating profit

(3.0)

-

(1.9)

-

(4.9)

-

Segment Information (IFRS): Main Reasons for Changes

Department Store Business

Despite the impact of the Umeda store's renovation and a decline following the Osaka-Kansai Expo, revenue will increase, driven by strengthened gaisho sales and renovation effects.

Profit will decline due to increases in personnel and system-related expenses and other factors contributing to the profit decline (expected decline of ¥5.0 billion in business profit at the Umeda store).

SC Business

Renovations at Shinsaibashi and Ikebukuro PARCO will have positive effects, leading to continued growth in domestic customer and inbound tourist transaction volumes.

While business profit will increase, operating profit is expected to decline due to projected losses from closing Shizuoka PARCO.

Developer Business

The newly merged company J. Front Prime Space began full operations and aims to increase both revenue and profit.

J. Front City Development expects both revenue and profit to increase, factoring in the increased profit from property sales and other factors.

Payment and Finance Business

Focus will be shifted from priority new cardholder acquisition to expanding its cardholder base with the aim of increasing both revenue and profit.

Other

Revenue and profit are expected to increase, driven by factors such as sales growth in Daimaru Kogyo’s electronic device department.

Daimaru Matsuzakaya Department Stores Major Store Sales

Total sales at directly managed stores are expected to increase by 2.6%, driven by growth in gaisho sales and other factors such as renovation effects, and sales-boosting measures.

Duty-free sales are expected to be ¥104.5 billion (down 0.1%).

The Shinsaibashi store expects double-digit sales growth due to events celebrating its 300th anniversary and other factors. The Umeda store expects a 40% decrease in sales due to factors such as floor closures resulting from major renovations.

(%)

Fiscal year ending February 28, 2027

YoY

H1

H2

Full year

Shinsaibashi Umeda Tokyo Kyoto Kobe Sapporo

Nagoya

9.9

12.0

11.0

(44.7)

(35.6)

(40.3)

8.0

5.9

6.9

2.6

5.5

4.2

10.6

9.0

9.8

4.2

4.1

4.1

2.3

7.1

4.8

Total

directly managed stores

1.1

4.0

2.6

Daimaru Matsuzakaya Department Stores SGA Analysis (IFRS)

Expected to increase by ¥2.1 billion YoY for full year (an increase of ¥5.0 billion excluding Expo-related expenses). Primary factors include increases in personnel and system expenses and rising utilities expenses.

Personnel

446

Packing and

Labor

568

Other

(Millions of yen)

     tra nsportation10 

65,103

65,900

(81)

Labor Other

(122) (22) Depreciation Advertising

Personnel

Packing and

497 205

Information processing

490 210 transportation

expenses, etc.

60,933

Advertising

(38) (94)

Depreciation

Information processing expenses, etc.

Supplies expenses: Up ¥600 million (utilities expenses, etc.) Commissions: Down ¥1.1 billion (Expo-related expenses, etc.)

62,200

Repair expenses: Up ¥1.1 billion (Umeda, Nagoya, and other stores) Supplies expenses: Up ¥300 million (utilities expenses, etc.) Commissions: Down ¥1.1 billion (Expo-related expenses, etc.)

H1: Up ¥1,267 million YoY

H2: Up ¥797 million YoY

H1 LY

Results

H1 FY2026

Forecast

H2 LY

Results

H2 FY2026

Forecast