Presentation of Results for Fiscal Year Ended February 28, 2026

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.”

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)

(Billions of yen, unless otherwise stated)

(Billions of yen, unless otherwise stated)

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.

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.

(%)

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 (%)

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

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.

(%)

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)

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

Feb 28, 2025 Feb 28, 2026

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.

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)

(Billions of yen, unless otherwise stated)

(Billions of yen, unless otherwise stated)

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.

(%)

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 

(81)

Labor Other

(122) (22) Depreciation Advertising

Personnel

Packing and

497 205

Information processing

490 210 transportation

expenses, etc.

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.)

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

Consolidated BS Forecast (IFRS)

Total assets are expected to be ¥1,300.0 billion, increasing by ¥158.4 billion from the end of the previous fiscal year, by making strategic investments.

Interest-bearing liabilities (excluding lease liabilities) are expected to be ¥256.0 billion, an increase of ¥79.4 billion from the end of the previous fiscal year.

Equity attributable to owners of parent is expected to be ¥420.0 billion, an increase of ¥4.4 billion from the end of the previous fiscal year.

Total assets

1,300.0

Interest-bearing liabilities

476.0

Equity attributable to owners of parent

Ratio of equity

36.4%

32.3%

attributable to owners of parent

Up 79.4

(excluding lease liabilities)

415.5 420.0

336.6

Up 139.3

Feb 28, 2026 Feb 28, 2027

Feb 28, 2026 Feb 28, 2027

Feb 28, 2026 Feb 28, 2027

(Billions of yen)

*Projected assets and interest-bearing liabilities assume that

strategic investments of approximately ¥60.0 billion are made. 21

Net cash provided by operating activities is expected to be ¥75.0 billion, an increase of ¥8.0 billion YoY due to factors such as higher profit.

Net cash used in investing activities is expected to be ¥117.5 billion, factoring in strategic investments.

Net cash provided by financing activities is expected to be ¥31.5 billion, factoring in liability financing portion associated with strategic investments.

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

Balance of cash and deposits

51.8

31.5

36.0 25.0

(15.1)

(42.5)

(70.7)

66.9

75.0

(117.5)

Figures in angle brackets represent YoY changes.

(Billions of yen)

Results for fiscal year ended Feb 28, 2026 Forecast for fiscal year ending Feb 28, 2027

*Forecast for investing cash flows and financing cash flows assumes that strategic investments of approximately ¥60.0 billion are made. 22

The medium-term plan targets will not be met. It is necessary to focus on increasing “earning power” of each segment, both in the short term and in the medium to long term.

*In principle, WACC by segment is reviewed every Medium-term Business Plan period.

ROE

10.5%

6.9%

6.9%

(Cost of shareholders’ equity 7.5-8.0%)

Prioritizing investment allocation with an eye toward change, while steadily implementing shareholder returns

FY2024-2026 (3-year total) Breakdown of investments (3-year total)

Strategic investments

¥65.0 bn

Other

¥8.5 bn

¥195.0 bn

Department Store

¥51.0 bn

SC

¥23.0 bn

Developer

¥47.5 bn

*When making strategic investments, we plan to utilize interest-bearing liabilities.

Annual dividend for FY2025 will be ¥54, as previously forecast, while annual dividend for FY2026 is expected to increase by ¥2 to ¥56.

Following share buybacks of ¥10.0 billion in FY2024 and ¥15.0 billion in FY2025, another

¥10.0 billion share buyback will be implemented in FY2026.

Total payout ratio for the current Medium-term Business Plan period is expected to be around 77%.

(Yen)

Ordinary dividends

Commemorative dividends

2

52

54 56

35

36

36

16

22

25

27

28

33

27

29

31

14

14

16

18

60

Annual dividends per share

50

40

30

20

10

0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

(FY)

In order to improve capital profitability over the medium to long term, share buyback is carried out with the aim of “optimizing equity capital and strengthening shareholder returns,” as well as achieving profitable growth.

Holding status of treasury shares as of February 28, 2026

Total number of shares issued (excluding treasury shares*) 250,249,421 shares Number of treasury shares* 20,316,343 shares

*Such treasury shares do not include the Company’s shares held by the BIP Trust.

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

ONO Keiichi

Director, President and Representative Executive Officer

J. Front Retailing Co., Ltd.

Create and Bring to Life “New Happiness.”

1. Progress of the Medium-term Business Plan

   Future Vision: Change into a “Value Co-creation Retailer”

   Values  

Co-creation of Excitement

Co-prosperity with Communities Co-existence with the Environment

    Synergies  

Customer Area

Content

One Team, True “Integration”

A       s        

“Value Co-creation Retailer”

Sustainable growth and improved capital profitability

Growth strategies

with different timeframes

Evolving the Group synergies

Deepening retail

Expanding the Group customer base Maximizing area value

Owning and developing proprietary content

Expanding domestic and international customer bases Enhancing the appeal of customer touchpoints

Expanding content for “high-quality, uplifting consumption segment”

FY2023

Results

FY2026

Outlook

¥52.0 bn

FY2026

Medium-tem plan targets

¥56.0 bn

n

ce 2.7

¥44.3 b

Payment and Finan

Payment and Finance 2.0 Payment and Finance 3.6

(Billions of yen)

Other, consolidated adjustments (0.4)

Other, consolidated adjustments (4.4)

Other, consolidated adjustments (2.1)

1. Expanding the potential of stores and areas

Enhancement of store appeal and profitability

Enhancement of our presence in key areas

• Major renovations of core stores, record business profit at Parco

• Plans are underway in Osaka, Kobe, and Fukuoka, as well as Nagoya

  2. Expanding the Group customer base

  Completion of card consolidation within the Group

  Progress in conversion into ID-based customers

• In addition to an increase in cardholder base, further rejuvenation of customer base

• Deepened engagement with the affluent and expanded overseas CRM beyond expectations

  3. Promoting highly efficient business

  Challenge in content retail business

  Integration and restructuring of construction and interior design and building management businesses

  Launch of commercial facility value enhancement project

• Completed the implementation of merchandising, IP, and service content

• Established foundations to strengthen high-ROIC businesses

• Invested in an external property and was commissioned as a commercial advisor 32

1. The Group’s full potential has yet to be fully realized

Breaking down deep-seated silo mentality

Speeding up inter-business collaboration

2. Delays in driving change in specialized fields

Expanding business portfolio through M&A and other means

Catching up on IT and digitalization initiatives

Concurrent appointments of the heads of “human resources,” “finance,”

Recruiting external talent in specialized fields such as “IT/digital” and “business development”

Revitalizing Department Store management to better adapt

1. Initiatives for FY2026

Finalizing the Medium-term Business Plan as a “phase of change”

Revising the future vision and

formulating the next Medium-term Business Plan toward “rapid growth”

2. Initiatives for FY2026

(1) Finalizing the Medium-term Business Plan

Promoting gaisho customer acquisition

• Expanding into wider areas, including “blank areas”

• Attracting next-generation affluent individuals and overseas affluent residents in Japan

  Expanding external merchants

• Developing merchants primarily in key areas

• Enhancing customer cross-traffic within and outside the Group

  Expanding CRM for inbound tourists

• Expanding target countries and stores

• Strengthening services to encourage repeat visits

• Strengthening multilingual support systems

Customer referrals through external partnerships

— Joint projects and customer referrals with local companies in Southeast Asia and other regions

Promoting customer conversion through joint initiatives by Department Store, Parco, and JFR Card

Increasing the number of the Group’s ID-based customers to over 6 million (FY2026)

Promoting mutual use within an “area”

―Promoting cross-shopping between Department Store, PARCO, and other facilities of the Group in key areas

-20s

Delivering value through “nationwide store network”

―Developing and providing services across stores

and areas

30s

40s

50s-

Strengthening relationships with “broad customer bases”

— Customer bases of Department Store and PARCO

complement each other

Acquiring customers through diverse touchpoints and increasing customer lifetime value

-20s

30s

40s

50s-

*Shibuya, Shinsaibashi, Nagoya, Ikebukuro, Fukuoka, Sapporo

Starting with reciprocal point redemption between Department Store and PARCO

Nagoya Sakae

・Major renovations of Matsuzakaya and PARO

・Decided to introduce PARCO to the Matsuzakaya Nagoya store (south wing)

・New commercial facility HAERA is scheduled to open this June

Osaka

Shinsaibashi

・Acquired 100% of the south wing of the Daimaru Shinsaibashi store

・Participated in the development of Shinsaibashi Building

・Major renovation of Shinsaibashi PARCO

Kobe

・Invested in a mixed-use building near the Daimaru Kobe store (Motomachi)

The Group transaction volume

¥200.0 billion (Up 13% YoY)

Business plan will be finalized

(South wing of Daimaru Shinsaibashi)

Fukuoka Tenjin

・Prepared an application for business operation approval

・Decided to close Fukuoka PARCO (February 2027)

Business plan will be finalized

Nagoya’s Sakae is entering the harvesting phase,

Merchan

-dising

Department

Store

・Established a jointly invested company for sweets

sales and operations

・Developed and rolled out an original sweets brand

IP

Parco

・Entered the game publishing business

・Opened an original restaurant overseas

Service

JFR

・Participated in a pre-owned luxury goods purchasing business via joint investment

・Opened at Department Store and PARCO

Continuing to explore M&A and partnerships leveraging growth strategy investment capacity

to drive “scale expansion”

40