Rationalizing Unprofitable Businesses and Reshaping the Business Portfolio

「The new integrated company, J. Front Prime Space, was fully launched in March following the reorganization and integration of J. Front Construction and PARCO SPACE SYSTEMS CO., LTD., which are responsible for the Group's architectural interior construction and building management businesses. Building on the strengths cultivated by each company, we optimized contracted services and reviewed the operating structure in the facilities business, while seeking to expand the scope of orders through closer coordination between the interior construction and facilities businesses.」

「To strengthen the reorganization of the group's architectural interiors and building-management businesses, the integrated new company J. Front Prime Space Co., Ltd. began full-scale operations in March.」

「In March 2026, J. Front Construction Co., Ltd. and PARCO Space Systems Co., Ltd. integrated their management operations, and J. Front Prime Space Co., Ltd. began operations.」

「Based on the policy for strengthening and reorganizing the interior construction and building management businesses, we integrated the Group's building management business into PARCO SPACE SYSTEMS CO., LTD. in September 2024.」

「We also decided to carry out an intra-group business reorganization to strengthen the interior construction and building management businesses.」

「On 21 July 2023, we entered into a share transfer agreement to transfer all shares of StylingLife Holdings Inc., an equity-method affiliate, to StylingLife Holdings Inc. and SLH Partners Investment Limited Liability Partnership. Accordingly, the investment accounted for under the equity method, namely ¥18,239 million in shares of an associate, was reclassified as assets held for sale. The transfer procedures for these assets were completed on 27 September 2023.」

「To improve management and asset efficiency, we advanced the sale of non-operating assets and decided to end operations at Matsumoto PARCO, scheduled for the end of February 2025.」

「To improve management and asset efficiency, and in anticipation of business portfolio transformation, we transferred all shares of Nuve-A, the specialty retail business, at the end of June, partially transferred the shares of Dimple, the staffing business, at the end of February, and sold non-operating assets.」

「Meanwhile, in June, we transferred all shares of Nuve-A and excluded it from our consolidated subsidiaries.」

「We also decided to transfer all shares of Nuve-A, a wholly owned subsidiary of Parco, to リブラインベスコ株式会社 as of 30 June, and entered into a share transfer agreement.」

「In this environment, in light of changes in the operating environment and the future prospects of each business, all shares of J.フロントフーズ, a restaurant business, were transferred in February and the company was removed from the scope of consolidation. It was also decided that operations at Tsudanuma PARCO and Shintokorozawa PARCO in the PARCO business would end (Tsudanuma PARCO was scheduled to end operations on 28 February 2023, and Shintokorozawa PARCO on 29 February 2024).」

「As part of structural reform of regional department stores, we converted Shimonoseki Daimaru to a directly operated store and reopened it after renovation on 23 March.」

「As part of structural reform of regional department stores, we decided to merge Shimonoseki Daimaru into Daimaru Matsuzakaya Department Stores so that it could continue contributing to the local community and pursue sustainable growth. We also ended operations at Daimaru Yamashina in March.」

「As part of structural reform of regional department stores, we decided to merge Shimonoseki Daimaru into Daimaru Matsuzakaya Department Stores so that it could continue contributing to the local community and pursue sustainable growth. We also ended operations at Daimaru Yamashina in March.」

「After considering changes in the commercial environment surrounding the stores, we decided to end operations at Utsunomiya Parco as of 31 May 2019. We also decided to end operations at Kumamoto Parco as of 29 February 2020, upon expiration of the building lease, after considering the aging of the building and changes in the commercial environment.」

「Meanwhile, in July, an agreement was concluded with 株式会社鳥取大丸, including confirmation of a business rehabilitation plan. It was also decided that Daimaru Yamashina would close at the end of March 2019.」

「Meanwhile, in August, we transferred all shares of フォーレスト株式会社, a consolidated subsidiary operating a mail-order business. We also decided to participate in the planned repurchase of its own shares by SENSHUKAI CO.,LTD., an equity-method affiliate.」

「During the six-month period ended in the second quarter, the Group sold all shares it held in フォーレスト株式会社 and recognized ¥1,926 million as other operating income in the condensed quarterly consolidated statement of income.」

「We will accelerate our efforts to identify unprofitable business areas and actively promote business portfolio reshuffling.」