J.FRONT RETAILING Co.,Ltd.

In FY2025 (ending February 2025), revenue was ¥441,877 million (up 8.6% year on year), operating profit was ¥58,199 million (up 35.2% year on year), and profit attributable to owners of parent was ¥41,424 million (up 38.5% year on year), setting new record highs at each profit level since the management integration. The profit targets for the final year of the medium-term management plan (FY2026) were achieved one year ahead of schedule.

The company is pursuing an area strategy that integrates the operation of its department store, shopping center (SC), and developer businesses in seven priority areas, including Nagoya Sakae, Osaka Shinsaibashi, and Fukuoka Tenjin. Large-scale development projects such as "The Landmark Nagoya Sakae" and the "(tentative name) Shinsaibashi Project," both scheduled to open in 2026, are underway, building a foundation for generating diversified revenue within these areas.

Inbound sales have grown significantly, centered on the Daimaru Shinsaibashi and Kyoto stores. Through the inbound CRM system launched at the end of FY2024, the company has built a system for centrally managing customer information on visitors to Japan to encourage repeat visits. It has also strengthened customer referral through partnerships with overseas companies, including a basic agreement for strategic collaboration with South Korea's Hyundai Department Store (April 2024).

Introducing next-generation customer acquisition content at Matsuzakaya Nagoya store (renovation of the Main Building and North Building completed), advancing the large-scale renovation of Daimaru Umeda store, and expanding the affluent customer base through broadening the reach of outside sales (gaisho) activities and expanding experiential events. Aiming for stable growth in duty-free sales through enhanced inbound CRM and campaigns in partnership with overseas payment companies.

Advancing renovations at Shinsaibashi PARCO (its first large-scale renovation since opening in 2020) and Ikebukuro PARCO (its largest-ever renovation since opening) to create new experiential value. Expanding the game publishing business through PARCO GAMES (announcement of its fourth title, "Finding Polka") to accelerate differentiation and new customer acquisition through proprietary content.

"HAERA," a new commercial facility integrating department store and PARCO concepts, opened on June 11, 2026. The company has also begun renovation work to convert part of the South Building of Matsuzakaya Nagoya store into a PARCO-operated facility, advancing measures to maximize area value in the Nagoya Sakae area and promote collaboration among group companies.

"Quartz Shinsaibashi," one of the largest mixed-use facilities in the area, in which the company holds a partial stake, opened in April 2026. In the Yokohama Minato Mirai area, the company has invested in a special purpose company that acquired "Hulic Minato Mirai" and has been commissioned to provide commercial advisory services for a large-scale mixed-use facility, aiming to enhance its presence in focus areas.

J. Front Prime Space, a new company formed by integrating J. Front Kenso and PARCO Space Systems, began full operations in March 2026. This consolidates the group's interior construction and building management businesses, strengthening the earnings base of the developer business through greater scale and efficiency. A key focus going forward is recovery from the decline caused by the prior-year rebound effect of a large order (Q1 revenue down 22.1% year on year).

Following the completion of card consolidation within the group, the company is promoting member acquisition measures for each card. Expanding and optimizing card credit limits has increased card transaction volume, with the finance balance of the Daimaru Matsuzakaya Card reaching an all-time high. Merchant fee revenue is being increased through merchant acquisition in seven focus areas and expanded acquiring at group commercial facilities. Q1 business profit recovered sharply, up 377.4% year on year.

With the aim of improving mid- to long-term capital profitability and strengthening shareholder returns, the company conducted a share buyback of up to ¥10.0 billion in Q1. The forecast annual dividend for FY2027 (ending February 2027) is ¥56.00 (up ¥2.00 year on year), maintaining the policy of dividend increases. The company continues its policy of a consolidated dividend payout ratio of 40% or more, and is working to further embed ROIC-focused management within the organization.