Interim Financial Results for FY2025（First Six Months of the Fiscal Year Ending February 28, 2026）Presentation

Takashimaya Co., Ltd.

1. Financial Results for Q2 of FY Ending Feb 2026

   (FY2025)

2. Full-Year Forecasts for FY Ending Feb 2026 (FY2025)

3. Progress and Revisions of Medium-Term

   Management Plan (FY2024 - FY2026)

4. Capital Policy Going Forward

• Introduction of profit indicator unique to Takashimaya called “business profit” (from FY2025)

  1. Calculation formula

     Business profit = Operating profit + Equity in earnings of affiliates + Dividend income

  2. Purpose

     • We are promoting ROIC management to realize a well-balanced business portfolio that can flexibly respond to changes in the operating environment (Japan/Overseas/Department stores/Non-department stores)

     • We plan to increase NOPAT [EBIT], which is the numerator for ROIC calculation (*), in the future, including dividend income from the Vietnam business, positioned as a growth driver

     • We will improve the effectiveness of ROIC management by introducing a proprietary profit indicator called “business profit” (KPI setting)

* ROIC (Return on invested capital) = NOPAT ÷ Invested capital

NOPAT = EBIT (Ordinary profit + Interest expense - Interest income) x (1 - Effective tax rate)

Ⅰ.

1. Key Points of Results

2. Consolidated Results

3. Segment-specific Results

4. Consolidated Balance Sheet

5. Consolidated Cash Flows

1. Key Points of Q2 Results

   • On a consolidated basis, profits declined as Department Stores in Japan had a large

     negative impact on consolidated operating profit

     Net profit increased because of gains in the sale of non-core assets Each profit category exceeded the June forecast

   • Regarding net sales of Department Stores in Japan, while domestic customers remained strong, revenue and operating profit fell sharply due to the recoil from the increase in inbound travelers in the previous year

     Exceeded the June forecast due to an uptick in inbound travelers and steady implementation of cost-cutting measures

   • In other businesses, Finance and Construction & Design led the way, with revenue and

     profit increasing and exceeding the forecast

     Department Stores in Japan: Key Points of Store Net Sales

• Domestic customers: +2% YoY (compared to existing stores) *Same level as forecast Sales were strong to both non-VIP and VIP customers

  By merchandise category, foods were stable, and fashion, which had gotten off to a slow start, also showed signs of recovery

• Inbound travelers: ¥43.8bn (¥62.0bn last year) *¥1.8bn more than forecast

  Net sales exceeded the full-year forecast of ¥82.0bn (¥116.0bn last year) and the H1 forecast of

  ¥42.0bn

  The factors behind this are a reduction in the YoY decline in net sales per customer and a recovery in the number of transactions (customers)

  1. Consolidated Results

• Operating profit declined due to lower total operating revenue and higher costs from inflation

• Business profit declined due to a decrease in the share of profit of entities accounted for using equity method, and ordinary profit declined more due to foreign exchange losses (yen appreciation)

  YoY H1 Change
  487.2	(3.9%)
  143.5	(3.4)
  119.8	+1.7
  24.6%	+1.3
  23.7	(5.1)
  4.9%	(0.8)
  25.2	(6.4)
  22.0	(8.2)
  21.2	+2.1

  Change from Jun. 30 forecast

  +0.5%

  +3.6

  +0.9

  +0.1

  +2.7

  +0.5

  +1.6

  +1.5

  +0.7

• Net profit increased due to gains on sales of non-current assets and all profit categories exceeded the forecast

  (billion JPY)

  Total operating revenue Gross profit

  SG&A expenses

  SG&A to total operating revenue ratio

  Operating profit

  Operating profit to total operating revenue ratio

  *Business profit

  Ordinary profit

  Profit attributable to owners of parent

  *Business profit : Operating profit + Share of profit of equity method affiliates + Dividend income

  3-1. Segment-specific Results (Overview)

• The main reason for the ¥5.1bn drop in operating profit and the ¥2.7bn increase over the forecast was Department Stores in Japan

• Operating profit of Department Stores in Japan fell ¥4.8bn but exceeded the forecast by ¥2.0bn

• Revenue and profit both increased in the Finance and Construction & Design, and operating profit exceeded the forecast by ¥0.6bn in both

  YoY H1 Change
  155.8	(5.3%)
  9.6	(4.8)
  16.5	(3.4%)
  3.8	(0.1)
  25.7	+1.0%
  3.4	(0.5)
  7.8	(3.2%)
  2.7	(0.5)

  *Top row : Operating revenue, Bottom row : Operating profit

  (billion JPY)

  Department Stores in Japan

  (billion JPY)

  Change from Jun. 30 forecast
  +0.5%
  + 2.0
  (3.8%)
  (0.1)
  +0.5%
  + 0.1
  (1.8%)
  (0.1)

  YoY H1 Change
  12.2	+10.3%
  2.7	+ 0.4
  17.9	+4.2%
  1.5	+ 0.4
  26.9	+3.4%
  0.8	+ 0.0
  235.4	(3.3%)
  23.7	(5.1)

  Change from Jun. 30 forecast

  +1.0%

  + 0.3

  +2.3%

  + 0.3

  +0.9%

  + 0.1

  +1.0%

  + 2.7

  Finance

  Overseas Department

  Stores

  Construction &

  Design

  Commercial Property

  Development in Japan

  Others

  Overseas Commercial

  Property Development

  +1.6

  25.2 (6.4)

  Business profit

Additions to Operating profit

Share of profit of equity method affiliates

Dividend income from affiliates in Vietnam

1.1 (1.3) (1.2)

0.0 +0.0 (0.2)

3-2. [Department Stores in Japan] Results

• Total operating revenue declined due to the recoil from the previous large level of inbound travelers, but sales to domestic customers remained strong and were in line with the forecast

• Gross margin ratio improved YoY, but the main reason was changes in the merchandise mix,

  i.e., lower share of net sales from high-ticket items, etc.

  YoY H1 Change
  401.8	(4.9%)
  22.23%	+0.12
  92.0	(4.4)
  82.4	+0.5
  20.5%	+1.1
  9.6	(4.8)
  2.4%	(1.0)

  Change from Jun. 30 forecast

  +0.9%

  (0.03)

  +0.8

  (1.2)

  (0.5)

  +2.0

  +0.5

• By controlling overall SG&A expenses, we minimized the increase and improved figures compared to the forecast

  (billion JPY)

  Gross margin ratio

  [% of in-store Total sales]

  Total operating revenue

  Gross profit SG&A expenses

  SG&A to total operating revenue ratio

  Operating profit

  Operating profit ratio

  [% of Total operating revenue]

  3-2. [Department Stores in Japan] In-store Net Sales (Customer-specific)

• Compared to the previous H1, less inbound travelers meant lower sales, but sales to non-VIP and VIP customers were both up

• By month, non-VIP sales remained stable each month, while sales to VIP customers turned

  positive in July and August

• In August, the negative growth in sales to inbound travelers narrowed, partly due to the impact of last year's sharp yen appreciation that slowed growth

  Monthly trend

* Actual trend before adjustment of net sales due to accounting treatment (delivery basis) associated with settlement of accounts

3-2. [Department Stores in Japan] In-store Net Sales (by Merchandise)

• Year-on-year sales of high-ticket items were up thanks to strong sales to domestic customers in August, which offset lower inbound traveler levels compared to the previous year

• Fashion got off to a slow start due to weather factors, but sales improved in August

• Food sales were up year on year after strong results from regional product exhibits, etc., contributing to an increase in customer traffic at stores (up 1% YoY)

  Monthly trend

* Fashion: Men's clothing, women's clothing, accessories (including cosmetics) / High-ticket items: Special selections and jewelry

3-2. [Department Stores in Japan] Net Sales from Inbound Travelers

(By Country)

• H1 results were ¥43.8bn (YoY change: -¥18.2bn [-29%]), change versus forecast: +¥1.8bn

• Compared to the previous year, which saw significant fluctuations due to exchange rates,

  monthly sales remained at around ¥7.0bn

• China was down 34% YoY (share: 60% last year, 56% this year), Taiwan was down 22%, and Hong Kong was down 49%

  2024

H1: ¥62.0bn

Q1: ¥32.9bn, Q2: ¥29.2bn

H1: ¥43.8bn (-29%)

Q1: ¥22.9bn (-30% YoY), Q2: ¥21.0bn (-28% YoY)

12.6

4.4

(Billions of yen) (Billions of yen)

12.0

10.0

8.0

6.0

4.0

2.0

8.7

11.5

4.6

11.0

4.5

10.5

4.5

7.6

3.0

12.0

7.7

7.8

7.4

7.1

7.0

6.9

3.8

2.5

2.7

3.2

3.4

4.1

3.5

10.0

8.0

6.0

4.0

2.0

0.0

4.0

Mar. Apr. May Jun. Jul. Aug.

0.0

Mar. Apr. May Jun. Jul. Aug.

3-2. [Department Stores in Japan] Net Sales from Inbound Travelers

(By Merchandise/No. of Transactions/Per Customer)

• Sales of high-ticket items fell due to the recoil from the previous year, but sales of cosmetics, sporting goods, and children's products grew, expanding market share

• Sales of high-ticket items fell 40% from the previous year, pushing down overall net sales per customer, and the number of transactions (customers) also decreased due to changes in consumption behavior

• Exceeded the forecast due to a reduction in the decline in net sales per customer and a recovery in the number of transactions (customers) (August was up YoY)

  Monthly trend
  Mar.	Apr.	May	Jun.	Jul.	Aug.
  (11%)	(33%)	(42%)	(36%)	(33%)	(10%)
  (20%)	(43%)	(53%)	(46%)	(39%)	(16%)
  +11%	+0%	(5%)	(6%)	(15%	+3%
  +17%	+8%	(8%)	(3%)	(5%)	+15%
  +45%	+41%	+14%	(1%)	(0%)	+25%
  +23%	+24%	+10%	+13%	(11%)	+6%

  • Trend in product-specific sales, number of

    transactions and net sales per customers

    (Compared to previous year Existing stores)

    Total net sales

    High ticket items*

    Fashion*

    (Of which, cosmetics)

    Sporting goods

    Children’s information and hobbies

    H1	Q1	Q2
    (29%)	(30%)	(28%)
    (39%)	(41%)	(36%)
    (3%)	+2%	(7%)
    +4%	+5%	+2%
    +20%	+33%	+6%
    +10%	+19%	+2%

    Number of transactions (customers)

    Net sales per customer

    +10%	+1%	(6%)	(8%)	(16%)	+3%
    (20%)	(33%)	(38%)	(30%)	(21%)	(13%)

    (3%)	+1%	(8%)
    (27%)	(31%)	(22%)
    H1
    2025	2024	Change
    66%	76%	(10%)
    14%	9%	+5%
    20%	15%	+5%

    • Exchange rate: US dollar/yen (average at the end of the month

  Net sales share

  High ticket items*

  Cosmetics

  Others

  from March to August)

  2025: ¥146.18, 2024: ¥153.89, -5% YoY (yen appreciation)

  * High-ticket items: special selection and jewelry

  Fashion: Men's clothing as well as women's clothing and accessories (including cosmetics)

  3-2. [Department Stores in Japan] SG&A Expenses

• Expenses for promoting human capital management, such as base pay increases, etc., are being allocated continuously

• Expenses for strengthening sales, such as new event development, etc., will be appropriately

  allocated after determining effectiveness

• Despite the impact of inflation, such as higher heating and lighting expenses, the steady implementation of cost-cutting measures resulted in an improvement of ¥1.2bn compared to the forecast

  					Incl. impact of changes to the
  26.1	(0.1)	+0.6	+0.4		reward point program +0.2	(1.1)
  5.7	(0.0)		+0.7			(0.7)

  Change from Jun. 30 forecast

  (0.0)

  (1.8)

  +0.3

  +0.3

  (1.2)

  +1.9

  Breakdown of YoY change

  making

  department stores more profitable

  36.7

  (2.4)

  +0.9

  +0.2

  (0.7)

  2.9 increase

  Inflation

  +1.1

  Variable

  costs

  Rent and tax expenses

  +0.2

  (0.7)

  Personnel related

  expenses

  Advertising expenses

  G&A expenses

  (0.7)

  0.0

  Total

  Cost optimization

  program

  14.0

  +0.5

  (billion JPY)

  +0.4

  SG&A to total operating

  +0.9

  20.5% +1.1

82.4

Measures for

+0.6

H1

YoY

change

Human capital

investments

revenue ratio

3-3. [Overseas Department Stores] Results

• Singapore: Revenue and profit declined due to stagnant consumption amid inflation and the impact of exchange rates (yen appreciation)

• Shanghai: Revenue was in the red due to the prolonged economic slump

• Siam: Revenue was down due to the impact of revamp work

• Vietnam: Revenue and profit increased thanks to renovations to cosmetics counters, etc., with each store achieving the forecast level

  H1 (Jan.-Jun.)	YoY Change	Foreign Currency Effects		Change from Jun. 30 forecast
  12.5	(3.6%)	—		(5.6%)
  3.5	(0.1)	(0.1)		(0.0)
  1.1	(10.0%)	—		+0.1%
  (0.1)	(0.0)	+ 0.0		(0.0)
  1.9	+10.6%	—		+5.9%
  0.5	+ 0.1	(0.0)		+ 0.0
  1.0	(15.1%)	—		(1.1%)
  (0.2)	(0.0)	(0.0)		(0.0)
  16.5	(3.4%)	—		(3.8%)
  3.8	(0.1)	(0.1)		(0.1)

  YoY Change in Local Currency
  (1.7%)
  —
  (6.0%)
  —
  +16.2%
  —
  (18.5%)
  —

  *Top row : Operating revenue, Bottom row : Operating profit

  (billion JPY)

  Takashimaya Singapore Ltd.

  Shanghai Takashimaya Co., Ltd.

  Takashimaya Vietnam Ltd.

  Siam Takashimaya (Thailand) Co., Ltd.

  Total of Overseas Department Stores

3-4. [Commercial Property Development (in Japan / Overseas)] Results

• Commercial Property Development in Japan posted lower profit due to the impact of revamp work, outsourcing costs, and higher lighting expenses, but profit actually trended according to forecast

• Commercial Property Development Overseas saw a decline in revenue and profit because of foreign exchange rates, while steady growth was recorded in Vietnam

  YoY H1 Change

  25.7 +1.0%

  3.4 (0.5)

  Change from Jun. 30 forecast

  +0.5%

  + 0.1

  *Top row : Operating revenue, Bottom row : Operating profit

  (billion JPY)

  Total of Commercial Property Development in Japan

  [Toshin Development Co., Ltd.]

Subsidiaries in Vietnam

(0.1%)

Operating profit + Dividend income from

affiliates in Vietnam

(0.2)

6.1 (1.0)

Toshin Development Singapore Pte. Ltd. (TDS)

3-5. [Finance / Construction & Design / Others] Results

• Finance posted higher revenue and profit, amid higher card transaction volume and growing annual fee income, exceeding the forecast

• Construction & Design posted higher revenue and profit, amid increased orders, strengthened

  cost management, and improved profit margins, exceeding the forecast

• Others performed according to the forecast

  YoY H1 Change
  11.7	+6.1%
  2.7	+ 0.4
  17.9	+4.2%
  1.5	+ 0.4
  7.7	+8.9%
  0.3	+ 0.1
  4.4	+8.5%
  0.3	+ 0.1
  3.6	+11.8%
  0.4	+ 0.0
  1.6	(24.9%)
  (0.1)	(0.2)

  Change from Jun. 30 forecast

  +1.4%

  + 0.3

  +2.3%

  + 0.3

  (1.3%)

  + 0.0

  +0.3%

  + 0.1

  (0.2%)

  (0.1)

  (9.9%)

  (0.0)

  *Top row : Operating revenue, Bottom row : Operating profit

  (billion JPY)

  Takashimaya Financial Partners Co., Ltd. (TFP)	Finance
  Takashimaya Space Create Co., Ltd. (TSC)	Construction & Design
  R.T. Corporation Co., Ltd.	Others
  CENTURY & Co., Ltd.	Others
  All Takashimaya Agency Co., Ltd.	Others
  Good Live Co., Ltd.	Others

  4. Consolidated Balance Sheet

• Total assets increased by ¥3.3bn due to an increase in accounts receivable, offset by the sale of non-current assets and a decrease in right-of-use assets caused by yen appreciation

• Currently implementing share buybacks using cash obtained from the sale of non-current assets

• Any increase in shareholders' equity is being controlled by share buybacks and dividend payments

  (Billions of yen)	Total assets +3.3
  1,296.0 1,299.3 90.5 77.8 Cash and deposits -12.7 1,200.0 Other current assets +29.1 243.0 272.1 (Increase in accounts receivable etc.) 1,000.0 800.0 Property, plant and equipment -7.7 600.0 759.8 752.0 (Overseas: Impact of yen appreciation, decrease in right- of-use assets -8.6) 400.0 (Sales of non-current assets) 200.0 Intangible assets -0.4 Investments and other 165.7 160.7 assets -5.0 (Gain on equity of affiliates 0.0 -2.0) Feb. 28, 2025 Aug. 31, 2025

  	Liabilities / Net assets +3.3
  1,296.0 1,299.3 1,200.0 Current liabilities -19.4 415.5 396.2 (Decrease of short-term borrowings) 1,000.0 800.0 Non-current liabilities +14.6 (Increase in long-term 380.1 394.7 borrowings) (Overseas: Impact of yen appreciation, decrease in 600.0 lease obligations -8.8) Shareholders’ equity +13.7 400.0 (Increase in net profit) (Decline due to dividend payments) 426.7 440.3 (Decrease due to share buybacks) 200.0 Other comprehensiveincome, etc. -5.6 (Foreigncurrency translation 0.0 73.7 68.0 adjustment account -3.6) Feb. 28, 2025 Aug. 31, 2025

  5. Consolidated Cash Flows

• Operating cash flows were down ¥17.6bn from the previous year due to an increase in trade receivables and an increase in payments of income taxes, etc.

• Investing cash flows increased by ¥4.5bn from the previous year due to an increase in growth

  investments and income from the sale of non-current assets, etc.

• Financing cash flows were down ¥0.8bn from the previous year due to share buybacks, etc.

  (Billions of yen)

  Operating cash

  flows (17.6)

40.0

30.0

20.0

10.0

32.2

14.6

100.0

90.0

80.0

88.6

74.2

0.0 70.0

(10.0)

(20.0)

(30.0)

(18.0)

(13.5)

(12.7)

(13.5)

60.0

50.0

Cash and cash equivalents

Operating CF Investment CF Financing CF

Ⅱ.

1. Key Points of Forecast

2. Consolidated Performance Forecasts

3. Segment-specific Forecasts

4. Progress of Measures to Achieve the Forecast

5. Consolidated Balance Sheet

6. Consolidated Cash Flows

1. Key Points of FY2025 Full-Year Forecast

   • Consolidated operating profit was revised upward, while business profit, ordinary profit, and net profit remain unchanged

   • The main reason for the upward revision to operating profit is the improvement in SG&A expenses at department stores in Japan

     Department Stores: Key Points of Revision

• Domestic customer net sales: Full-year YoY +3% (compared to existing stores)

  *Vs. June forecast: +4% YoY

  The year-on-year growth rate revised in light of the consumption environment, despite steady progress with our initiatives aimed at "enhance our product appeal" and "strengthen our customer base"

• Inbound traveler net sales: Full-year ¥84.0bn (¥116.0bn last year)

  *June forecast: ¥82.0bn

  Only the upside for H1 has been revised, taking into account the negative risk of further changes in consumption behavior (e.g., a shift to experience-based consumption) in H2, which could affect the number of transactions (customers) and net sales per customer

• SG&A expenses: Full-year increase of ¥0.5bn from the previous year

  *June forecast: Increase of ¥4.9bn from the previous year

  Human capital investments carried out as planned

  Despite the impact of inflation, improved by ¥4.5bn compared to the forecast through enhanced

  "cost reduction"

  1. Consolidated Performance Forecasts

• Operating profit was revised upward by ¥2.5bn from the June forecast, taking into account the upside in H1 and current conditions

• Business profit will remain unchanged in light of the share of profit of entities accounted for using equity method and ordinary profit will remain unchanged in light of the foreign exchange loss (yen appreciation)

  Full-year forecast	YoY Change
  1,015.0	(1.7%)
  297.1	(2.3)
  244.6	+2.7
  24.1%	+0.7
  52.5	(5.0)
  5.2%	(0.4)
  57.0	(6.4)
  53.0	(7.4)
  40.0	+0.5

  Change from Jun. 30 forecast

  (0.5%)

  +6.1

  +3.6

  +0.5

  +2.5

  +0.3

  +0.0

  +0.0

  +0.0

• No revisions to net profit, as profit increase as planned

  (billion JPY)

  Total operating revenue Gross profit

  SG&A expenses

  Operating profit

  Operating profit to total operating revenue ratio

  *Business profit

  Ordinary profit

  Profit attributable to owners of parent

  SG&A to total operating revenue ratio

  *Business profit : Operating profit + Share of profit of equity method affiliates + Dividend income

  3-1. Segment-specific Forecasts

• Operating profit revised upward by ¥2.0bn for Department Stores in Japan, with other segments also revised on a rolling basis

• Business profit remains unchanged due to a downward revision of share of profit of entities

  accounted for using equity method of ¥2.5bn, etc.

• Dividend income from the Vietnam business increased from the previous year to ¥1.7bn, but fell slightly below the forecast due to the impact of exchange rates

  Full-year forecast	YoY Change
  324.6	(3.4%)
  23.0	(5.5)
  35.4	+0.5%
  8.8	+ 0.5
  52.0	+2.0%
  6.1	(0.7)
  16.3	+1.3%
  5.8	(0.1)

  *Top row : Operating revenue, Bottom row : Operating profit

  (billion JPY)

  Department Stores in Japan

  Overseas Department Stores

  Commercial Property Development in Japan

  Overseas Commercial Property Development

  Additions to Operating profit

  Finance

  Change from Jun. 30 forecast
  (0.9%)
  + 2.0
  (1.1%)
  (0.1)
  +0.2%
  + 0.2
  (0.1%)
  + 0.1

  Full-year forecast	YoY Change
  25.1	+8.5%
  5.4	+ 0.5
  35.4	+5.7%
  2.4	+ 0.3
  60.7	+7.2%
  2.5	+ 0.6
  491.4	(1.4%)
  52.5	(5.0)

  Change from Jun. 30 forecast

  +1.8%

  + 0.4

  +2.3%

  + 0.3

  +0.8%

  + 0.0

  (0.3%)

  + 2.5

  Construction & Design

  Others

  Consolidated Total

Share of profit of equity method affiliates

Dividend income from affiliates in Vietnam

3-2. [Department Stores in Japan] Forecast

• The growth rate of domestic customer net sales for H2 was revised from +6% to +4% (full-year

  +4% to +3%)

• Inbound traveler net sales for H2 remain unchanged at the June forecast of ¥40.0bn (H1 ¥43.8bn,

  full-year ¥84.0bn)

• The main reason for the upward revision of operating profit by ¥2.0bn is the improvement in SG&A expenses

  Full-year forecast	YoY Change
  835.9	(2.7%)
  22.33%	+0.21
  191.6	(5.1)
  168.6	+0.5
  20.2%	+0.6
  23.0	(5.5)
  2.8%	(0.6)

  Change from Jun. 30 forecast
  (0.0%)
  +0.10
  (2.5)
  (4.5)
  (0.5)
  +2.0
  +0.2

  (billion JPY)

  Gross margin ratio

  [% of in-store Total sales]

  Total operating revenue

  Gross profit SG&A expenses

  Operating profit

  SG&A to total operating revenue ratio

  Operating profit ratio

  [% of Total operating revenue]

  3-2. [Department Stores in Japan] SG&A Expenses

• Human capital investments, with an eye on labor distribution rate and productivity improvement, are being carried out as planned

• Expenses for strengthening sales capabilities (merchandise and customer base) will be rolled

  to an appropriate level based on effectiveness

• Despite the impact of inflation, cost reductions have been steadily implemented, resulting in a

  ¥4.5bn improvement over the forecast

  Breakdown of YoY change

  Measures for

  Full-year

  forecast

  YoY

  change

  Human capital

  investments

  making

  department stores more profitable

  Inflation

  Variable

  costs

  Cost optimization

  program

  54.3

  +0.1

  +1.5

  +0.8

  Incl. impact of changes to the

  reward point program +0.3

  (2.2)

  6.3 increase

  Change from Jun. 30 forecast

  (0.3)

  (3.0)

  (1.8)

  +0.6

  (4.5)

  (billion JPY)

  Advertising expenses		11.7	(0.5)		+0.7			(1.2)
  G&A expenses		74.4	+0.1		+1.8	+1.3	(0.6)	(2.4)
  Rent and tax expenses		28.2	+0.7			+0.7		0.0
  Total		168.6	+0.5	+1.5	+3.4	+2.0	(0.6)	(5.8)

  Personnel related expenses

  20.2% +0.6

  (0.5)

  SG&A to total operating

  revenue ratio

  3-3. [Overseas Department Stores] Forecast

• Minor adjustments were made to each store, but overall results are in line with the forecast

• The exchange rate impact on operating profit due to yen appreciation was a decrease of ¥0.3bn

  from the previous year

  Full-year (Jan.-Dec.) forecast	YoY Change	Foreign Currency Effects			Change from Jun. 30 forecast
  26.7	(0.1%)	—			(1.9%)
  7.8	+ 0.1	(0.3)			(0.0)
  2.1	(6.6%)	—			+0.5%
  (0.0)	+ 0.0	+	0.0		(0.0)
  3.9	+7.4%	—			+2.8%
  1.0	+ 0.0	(0.1)			+ 0.0
  2.6	+3.1%	—			(0.4%)
  (0.0)	+ 0.3	+	0.0		(0.0)
  35.4	+0.5%	—			(1.1%)
  8.8	+ 0.5	(0.3)			(0.1)

  YoY Change in Local Currency
  +3.2%
  —
  (0.4%)
  —
  +12.9%
  —
  +6.0%
  —

  *Top row : Operating revenue, Bottom row : Operating profit

  (billion JPY)

  Takashimaya Singapore Ltd.

  Shanghai Takashimaya Co., Ltd.

  Takashimaya Vietnam Ltd.

  Siam Takashimaya (Thailand) Co., Ltd.

  Total of Overseas Department Stores

3-4. [Commercial Property Development (in Japan / Overseas)] Forecast

• Based on the situation in H1, Commercial Property Development in Japan was revised upward by ¥0.2bn, and Overseas Commercial Property Development by ¥0.1bn

  Full-year YoY forecast Change

  52.0 +2.0%

  6.1 (0.7)

  Change from Jun. 30 forecast

  +0.2%

  + 0.2

  *Top row : Operating revenue, Bottom row : Op

  (billion JPY)

  Total of Commercial Property Development in Japan

  [Toshin Development Co., Ltd.]

Toshin Development Singapore Pte. Ltd. (TDS)

Subsidiaries in Vietnam

+ 0.2

Operating profit + Dividend income from affiliates in Vietnam(1.7 billion JPY)

3-5. [Finance / Construction & Design / Others] Forecast

• Finance and Construction & Design revised upwards, mainly due to the upside in H1, while Others were largely in line with the forecast

  Full-year forecast	YoY Change		Change from Jun. 30 forecast
  23.8	+6.4%	+0.8%
  5.2	+ 0.5		+	0.3
  35.4	+5.7%	+2.3%
  2.5	+ 0.3		+	0.4
  15.7	+11.6%	(0.6%)
  0.7	+ 0.2		+	0.0
  9.3	+7.9%	+0.1%
  0.6	+ 0.1		+	0.1
  8.2	+14.4%	(0.1%)
  1.2	+ 0.2		(0.1)
  4.6	(1.6%)	(3.7%)
  0.3	(0.0)		(0.0)

  *Top row : Operating revenue, Bottom row :

  (billion JPY)

  Takashimaya Financial Partners Co., Ltd. (TFP)	Finance
  Takashimaya Space Create Co., Ltd. (TSC)	Construction & Design
  R.T. Corporation Co., Ltd.	Others
  CENTURY & Co., Ltd.	Others
  All Takashimaya Agency Co., Ltd.	Others
  Good Live Co., Ltd.	Others

  4-1. Progress of Measures to Achieve the Forecasts

• Focus on prolonged summer: collaborate with key partners for full-price launches from clearance to mid-season

• Amid sluggish performance at department stores in Japan, results from initiatives with key business

  partners supported overall sales

• In H2, in addition to developing and introducing products that emphasize functionality, we will also collaborate on new measures such as shopping around, etc.

  Retail-priced items greatly contributing to

  profits

  Procurement/ Expansion capabilities of key

  promotions

  Small- and mid-size

  stores: secure

  merchandise

  Deepening initiatives with key business

  partners

Key business partners:

28 companies ⇒ 60 companies

2025 H1

Target sales: -0.3% Category average difference +1.5% Gross margin: -0.5% Category average difference +2.0%

4-2. Progress of Measures to Achieve the Forecasts

• Expanding the attraction of new customer segments by hosting innovative events such as “interactive exhibitions"

• Using apps to approach customers according to their attributes and accelerate the acquisition of next-generation customers

• Strengthening contact points with VIP customers, a strength, to further improve LTV

  Strengthening relationships with domestic customers

  Developing new customers by holding innovative events Families: 70% Outside customers: 70% Number of new events: up 20%	Building a foundation for the future by making apps more attractive Membership: up 10% Target membership: up 50%	Expanding customer contact points, including young people, through digitalization of VIP sales and tapping into new areas, etc. New memberships from VIP customers: up 20% VIP net sales: up ¥3.5bn
  By utilizing customer data and providing services, we are deepening relationships with existing customers and acquiring new ones

  Grow customer base by improving customer experience value

  4-2. Progress of Measures to Achieve the Forecasts

• Increasing information dissemination through partnerships with leading overseas companies while accelerating VIP membership conversion

• Establishing a customer referral scheme in collaboration with overseas stores, leveraging the

  strengths of our store network in Asia

  Grow our customer base through unique initiatives that leverage the strengths of the Group

• Promoting collaboration with hotels, embassies, etc. to tap into high-net-worth foreign nationals as customers