#1PARCO CO., LTD. FY2012 First Half Results Investor Presentation TSE 1st Section 8251 or FASHION? PARCO#2Summary 2/31 I FY2012 H1 results overview Consolidated net sales were up 3.6% from the same period the previous year and operating profit rose 20.6% (quarterly net income was up 9.6%) Sales and profits grew in H1 due not only to PARCO's strong performance as a result of active renovations in FY2011 and FY2012 and the strengthening of the card scheme, but also due to strong performance at Neuve A. Income exceeded forecasts. Since Q2 2011, existing stores have continued to improve performance from the previous year II FY2012 H1 achievements and future plans Existing store renovations: Renovated 28,000m² in H1, exceeding initial targets Renovated zones achieved double-digit sales increases over the same period in the previous year Existing store renovation target: Approximately 24,000m² scheduled for thematic renewal in H2 Store card: Introduction of new PARCO Card under the theme of "ease of use from the customer perspective" Domestic store development: Pursued ZERO GATE business model of low to medium-rise urban shopping complexes Overseas business strategy: Offer platform to transmit Shibuya fashion in Singapore. Established a local corporation entrusted with the operation and management of commercial facilities in Suzhou Retail business: Opened four stores in H1. Four more to follow in H2 and plan to expand store network to 160 stores. Space engineering and management business: Received orders for LED conversion. New contracts in hotel guest room business. Increased cost efficiency E-commerce business: Web production business is strong due to new orders for EC site production. Entertainment business: Hits with high-quality theatre and film content. Production of topical content also planned for H2 III CSR activities Strengthen ongoing CSR activities under the themes of the environment and contributing to society and implement next generation fashion creator outreach#3PARCO Presentation Contents I Overview of FY2012 H1 results II FY2012 H1 achievements and future plans III CSR activities 3/31#4PARCO 4/31 I Overview of FY2012 H1 results II FY2012 H1 achievements and future plans III CSR activities#51. FY2012 H1 Consolidated results H1 income exceeded forecasts on strong performance at PARCO CO., LTD. and NUEVE A CO., LTD. Financial standing improved by conversion of PARCO CO., LTD. convertible bonds, etc. 5/31 Consolidated FY2012 H1 (Mar.-Aug.) FY2011 H1 Initial (Mar.-Aug) Change \ Change% Change \ forecasts Unit: Million yen Change % Net sales Operating income Ordinary income Net income 128,337 123,844 4,492 3.6% 132,000 (3,662) (2.8%) 4,858 4,030 827 20.5% 4,800 58 1.2% 4,554 3,967 587 14.8% 4,500 54 1.2% 2,237 2,042 195 9.6% 2,100 137 6.5% EBITDA* 7,845 7,120 724 10.2% End of Consolidated FY2012 H1 End of FY2011 Change \ *EBITDA in this table refers to operating income plus depreciation and amortization Total assets 208,339 208,697 (358) *2 Of the ¥17billion by which interest bearing debt was reduced, ¥15billion was due to the conversion of PARCO convertible bonds with stock acquisition rights Net assets 101,275 84,577 16,697 Interest-bearing 42,548 59,536 debt *2 (16,987) Equity ratio 48.6% 40.5% 8.1%#62. Consolidated H1 results by segment 6/31 Unit: Million yen Shopping Complex Business PARCO CO., LTD. achieved revenue growth as a result of active renovations and strengthening of store card scheme in H1and H2. Since Q2 2011, existing stores have continued to improve performance from the previous year Retail business In addition to high growth in sales of original merchandise at NEUVE A CO., LTD., various segmented sales promotion planning was successful due to enhancement of items. Watch business and men's and ladies' miscellaneous goods business drove sales and profit growth Space Engineering and Management Business PARCO SPACE SYSTEMS CO., LTD. achieved revenue growth through orders for LED conversion and increased commissions from foreign airline facilities and in the foreign hotel guest room maintenance business and by increased cost efficiency FY2012 (March- Aug.) FY2011 (March- Aug.) Change Change ¥ % Net sales 116,177 112,192 3,984 3.6% Shopping Complex Business Segment income 4,479 3,674 804 21.9% Net sales 8,343 7,805 538 6.9% Retail Business Segment income 206 150 55 37.0% Net sales 9,102 9,201 (98) (1.1%) Space Engineering and Management Business Segment income 174 130 44 34.4% Net sales 3,152 3,232 (80) (2.5%) Other Business Segment income (4) 57 (62) Net sales 136,775 132,432 4,343 3.3% Total Segment income 4,855 4,013 842 21.0% Net sales (7,108) (7,192) 84 (1.2%) Adjustments Segment income 2 17 (15) (85.9%) Other Business Income has increased at PARCO CITY CO., LTD. due to consulting orders for EC site construction at commercial facilities. Net sales 129,666 125,239 4,427 3.5% Consolidated Segment income 4,858 4,030 827 20.5% PARCO Entertainment had hits with theatre production and film investment Note: Figures for net sales by segment include operating revenue Segment profit and loss is operating profit and loss PARCO's Entertainment Business earnings are included in Other Business#73. Non-consolidated H1 results Sales growth as a result of active renovations in H1 and in the preceding period and strengthening of store card scheme 7/31 Unit: Million yen Non-consolidated Net sales FY2012 H1 (Mar.-Aug.) FY2011 H1 (Mar.-Aug.) Change ¥ Change % Initial forecasts Change Change % \ 117,683 113,713 3,969 3.5% 121,000 (3,316) (2.7%) Operating income 4,555 3,848 707 18.4% 4,500 55 1.2% Ordinary income *1 4,786 4,635 150 3.2% 5,300 (513) (9.7%) Net income *1 2,614 3,007 (393) (13.1%) 3,100 (485) (15.7%) EBITDA *2 7,363 6,761 602 8.9% Non-consolidated End of FY2012 H1 Change End of FY2011 ¥ Total assets 204,221 205,014 (793) *1 Ordinary income and quarterly net income include dividend income from subsidiaries (¥500million in FY2012 and ¥1 billion in FY2011) *2 EPITDA in this table refers to operating income plus depreciation and amortization Net assets 102,285 85,169 17,115 Interest-bearing debt *3 44,027 61,406 (17,379) *3 Of the ¥17billion by which interest bearing debt was reduced, ¥15billion was due to the conversion of PARCO convertible bonds with stock acquisition rights Equity ratio 50.1% 41.5% 8.5%#84. Tenant sales by store Sendai PARCO and Urawa PARCO driving overall performance Existing stores continuing to perform well, with YoY growth since Q2 of previous year 8/31 Unit: Million yen Store Net sales Change % 1Q 2Q Store Net sales Change % 1Q 2Q Sapporo 5,055 (2.6%) (0.5%) (4.7%) Utsunomiya 2,473 (0.4%) 6.6% (6.9%) PARCO *1 PARCO Sendai PARCO 6,419 24.6% 57.4% 1.9% Urawa PARCO 7,985 20.5% 27.0% 14.6% Urban store group Ikebukuro Shin-Tokorozawa 14,471 7.2% 10.8% 3.7% 4,103 6.2% 10.2% 2.4% PARCO PARCO Shibuya PARCO 6,196 3.5% 13.4% (4.7%) Shizuoka PARCO 4,884 (8.9%) (7.0%) (10.8%) Nagoya PARCO 16,280 1.1% 4.3% (1.9%) Hiroshima 8,181 2.1% 3.1% 1.1% PARCO Fukuoka PARCO 5,895 5.2% 5.4% 4.9% Community store group Chiba PARCO 3,545 2.6% 5.1% 0.2% Tsudanuma 4,594 2.5% 5.5% (0.5%) PARCO Hibarigaoka 3,881 0.5% 5.0% (3.8%) PARCO Kichijoji PARCO 3,994 3.3% 10.7% (3.4%) Chofu PARCO 8,298 3.2% 7.4% (0.9%) 8 stores total 67,386 3.8% 8.6% (0.7%) Matsumoto 3,636 (0.1%) 0.4% (0.6%) Store Net sales PARCO Change % 1Q 2Q Otsu PARCO 2,242 0.2% (0.5%) 1.0% Sapporo PARCO New Kumamoto PARCO 2,522 6.6% 9.5% 3.8% Building Shinsaibashi PARCO Total *2 Existing store total *3 11 stores total 47,277 5.2% 9.2% 1.4% - 114,663 114,663 3.7% 4.4% 7.9% 8.9% (0.3%) 0.2% *1 Change % for Sapporo PARCO excludes sales of the New Building (closed March 30, 2011) *2 Change % for Total includes the previous year's sales of the Sapporo PARCO New Building and Shinsaibashi PARCO *3 Existing store total excludes sales of Sapporo PARCO (closed Mar. 30, 2011) and Shinsaibashi PARCO (closed Sep. 30, 2011)#95. Sales by item Clothing, personal items, restaurants performed well. Customer numbers and average spend per customer also continue to be solid □ In General clothing, along with a strong performance by large casual clothing stores, select stores also continued to perform strongly In personal items, due to the ongoing bridal boom, jewelry remained healthy; leather goods such as bags, ladies' shoes etc., were also robust In restaurants, in addition to the effects of full renovation last year at Ikebukuro PARCO, performance was supported by measures at each store to optimize the consumer experience, including through the use of shared use zones, and the introduction of restaurants at Shibuya PARCO giving a strong sense of occasion 9/31 Category and item Mar.- May Jun.-Aug. Total Womenswear 6.3% (5.2%) 0.2% Menswear 7.7% (1.0%) 3.8% General clothing 18.3% 10.2% 14.2% Clothing 8.9% (0.6%) 4.0% Shoes 9.7% 1.6% 5.6% Bags 17.3% 6.1% 11.5% Accessories 11.0% (3.8%) 2.9% Cosmetics 5.6% (0.4%) 2.6% Personal items 12.7% 2.4% 7.3% Existing stores Culture-related 3.3% (5.1%) (1.0%) FY2012 FY2011 total Year-on- year Hobby and living- related 5.6% (4.4%) 0.8% Mar.-May Jun.-Aug. Total General merchandise 3.2% (6.0%) (1.4%) Paying (1.5%) 7.5% 1.4% 4.3% Foods 7.3% 2.7% 5.0% customers Average spend per Restaurants 19.3% 11.9% 15.4% 2.7% 3.7% 0.6% 2.2% customer Other 35.2% 15.4% 23.4% Note: Paying customers and average spend per customer are based on "integrated sales" of stores. "Integrated sales" indicate the overall sales strength of a store and include tenant sales, sales at PARCO Theatre and other facilities, and sales to tenants under fixed rent contracts * Existing-store figures exclude the sales of Sapporo PARCO New Building (closed Mar. 30, 2011) and Shinsaibashi PARCO (closed Sep. 30, 2011)#106. Selling, general and administrative expenses; capital expenditure 10/31 Selling, general and administrative expenses Unit: Million yen Consolidated Amount Change \ Change % Personnel 4,760 22 0.5% Lease/rental 4,287 (202) (4.5%) Advertising 1,480 322 27.9% Agency services 2,977 (34) (1.1%) Building and FY2012 H1 854 38 4.7% repairs (Mar.-Aug.) Depreciation 2,986 (102) (3.3%) Tax and dues 753 (6) (0.9%) Reversal of common service charges (3,951) (92) 2.4% Total SG&A 15,941 (197) (1.2%) Capital expenditure Consolidated Unit: Million yen Amount Change \ Change % FY2012 H1 Capex 3,198 1,445 82.4% (Mar.-Aug.)#117. Full year forecast 11/31 Still targeting record high operating income, ordinary income and net income for the full year, despite downward revision of net sales forecast Unit: Million yen FY2012 Consolidated revised FY2011 results Change ¥ Change % Initial forecasts Change ¥ Change % forecasts Net sales 269,000 259,789 9,211 3.5% 274,000 (5,000) (1.8%) Operating income 10,700 9,168 1,531 16.7% 10,700 0.0% Ordinary income 10,300 8,966 1,333 14.9% 10,300 0.0% Net income 5,200 4,319 880 20.4% 5,200 0.0% FY2012 FY2011 Non-consolidated revised results Change \ Change % Initial forecasts Change Change % forecasts Net sales 248,000 239,078 8,921 3.7% 253,000 (5,000) (2.0%) Operating income 10,000 8,526 1,473 17.3% 10,000 0.0% Ordinary income 10,000 9,170 829 9.1% 10,500 (500) (4.8%) Net income 5,400 4,547 852 18.8% 6,000 (600) (10.0%) *Unconsolidated ordinary income and quarterly net income include dividend income from subsidiaries (¥500 million in FY2012 and ¥1 billion in FY2011) We have decided to increase interim dividends per share of ¥9 and annual dividends per share of ¥18#12I Overview of FY2012 H1 results II FY2012 H1 achievements and future plans III CSR activities 12/31#13PARCO store renovation FY2012 H1 achievements 1 Renovated approx. 28,000m² in FY2012 H1, exceeding initial target Sales in renovated zone grew 16% from same period in previous year Urban stores Ikebukuro PARCO To respond to diversifying consumption trends, this spring in the main building we introduced new tenants which included brands making their first appearance in the area; a new business category of bags; and highly-topical organic cosmetics. In autumn, P' PARCO annex is undergoing renovation, focusing on a men's and ladies' mixed building format which allows couples to shop together. In addition to the evolution of existing ladies' fashion, men's fashion and general merchandise will be enhanced. Sendai PARCO 13/31 Four years have passed since opening, and the store has developed in the market to better meet the needs of consumers. In keeping with the location of the store directly connected to a big-city station, we have continued measures to invigorate activity in the first half, diversifying and improving the quality of items by such initiatives as strengthening young casual fashion and introducing sports stores in order to meet the expectations of local consumers.#14PARCO store renovation FY2012 H1 achievements 2 Community stores Shin-Tokorozawa PARCO Aiming for community-based one-stop shopping center, improved ability to attract customers and repeat visitors through enhancement of daily demand items. In addition to introducing specialist food shops with a focus on imported foods, achieved increased shopping circulation due to renovation of family-oriented casual stores. 讃岐釜揚げうどん KALDI COFFEE 14/31 OPENSAF Otsu PARCO Ongoing renovation of multi-function building to meet diverse needs of local consumers. Reorganized food court and introduced new stores such as restaurants, food stores, culture stores, etc. and revitalized building by strengthening ability to attract and retain customers for longer periods of time.#15PARCO store renovation FY2012 H2 plans 1 Approximately 24,000m² scheduled for thematic renewal in H2 15/31 Aim for new floor theme configuration that does not classify items by gender or age, and for new business category development and incubation Urban stores - 1 Nagoya PARCO Allowing the building to evolve into something that offers seasonal fashion to local consumers, reorganizing South Building as part of improvements to the synergy of the 3-building system. Combining the East and West Buildings to form the market's largest gathering of select shops. Revamping the West Building, which until now has been a menswear zone, to respond to demand from couples and families, while at the same time increasing the diversity and quality of items. URBAN UR RESEARCH Shizuoka PARCO JOURNAL In tune with the evolution of the market and in order to raise our presence, completely renovate stores in the vicinity of the entrance and greatly improve the building's image. Offer superior lifestyle options with the introduction of consumer items such as the area's first select shops, food and outdoor stores, etc.#16PARCO store renovation FY2012 H2 plans 16/31 Shibuya PARCO Urban stores-2 Create a highly aesthetic floor that combines art, fashion and culture, with incubation being the keyword. The first stores by designers selected for the micro funding established by PARCO are also scheduled to open here in October. Through stores that sell anime-related goods and through the establishment of a social TV channel, disseminate information about Shibuya-based Japanese pop culture. AREE Sapporo PARCO Strengthen lifestyle offerings to urbanites by creating a combined-item floor which meets the needs of couples and families. Improve quality through new business categories and brands making their first appearance in Hokkaido. At the same time improve the building facilities by creating nursing facilities and family-friendly conveniences.#17PARCO store renovation FY2012 H2 plans 3 17/31 Community stores Matsumoto PARCO In order to respond to a wide range of clientele from a wide area, reconfigure interior and general goods floor and combine with newly introduced large-scale outdoor specialist stores to strengthen ability to attract customers. 好日山荘 Hibarigaoka PARCO (Example image of completed store) Implement refurbishment based on the attributes of stores with high daily use to present fashion under the theme of providing superior quality for high-frequency customers. Pursue initiatives to improve position in the market. Utsunomiya PARCO Aim to become a model of a progressive community-type store in a key regional city. Introduce the cutting-edge fashion brands demanded by local customers, increasing the diversity and quality of ladies' fashion offerings.#18House card scheme PARCO Card New PARCO Card service introduced in FY2012 under the theme "ease of use from the customer perspective" 18/31 Revamp service content for new members and Class S members. Strengthen policy to create PARCO fans to ensure that new members become valuable customers after one year. 1. Increase the number of new cards issued and the initial utilization rate by extending the special treatment period for new members, who have high utilization rates 2. Promote card upgrading among valuable PARCO Card Class S members Issuance of new cards increased by 58.8% from the previous year, and as a result of the large increase in spending by new card holders (up 84.1% YoY), overall PARCO Card turnover improved 12.9% YoY. *PARCO Card members as of end of H1, 2012:1.61 million Details of service change Previous system New system Usage of PARCO Card by new members Year ☐ Mar ☐ Apr. ☐ May ☐ June ☐ July ☐ Aug. 2011 1 5% off period following issuance of card 1 month 1 year 2 Minimum spend per year from the year following issuance in order to qualify for 5% discount 2012 ¥200,000 ¥100,000 Million yen 0 500 1,000 1,500 2,000 2,500 3,000 3,500#19Development of stores in Japan: ZERO GATE* business Pursued ZERO GATE* business model of low to medium-rise urban shopping complexes 19/31 As part of domestic development strategy, launch low to medium- rise shopping complexes in prime urban locations. FOREVER 21 FOREVER 21 Dotonbori and Shinsaibashi ZERO GATE* complexes are scheduled to open in spring 2013 and their respective tenants, Forever 21 and H&M have been confirmed. The combined effect of launching the two ZERO GATE* complexes is the Osaka area is expected to contribute to the revitalization of Osaka Minami's central district and increase consumer traffic in the area. Design image of Dotonbori ZERO GATE* H.M PARCO is planning to lease the shopping complex part on the lower floors of a new building complex adjacent to Hiroshima PARCO New Building and operate it as Hiroshima ZERO GATE*. The store is planned to open in autumn 2013. 心斎橋筋 *Provisional name ファッション Design image of Shinsaibashi ZERO GATE*#20Overseas business development: Singapore and Suzhou, China 20/31 Provide in Singapore a platform to disseminate Shibuya fashion. 約20ブランド x 谷を拠点にした2大ファッション ムーヴメントとの12年秋から本槽協働 lapert Phon FESTIVAL PARCO Collaboration between Japan and Singapore's next generation of fashion entrepreneurs and creators, limited-period stores and events are planned for January/February next year in Singapore under a "Shibuya" theme. PARCO's strengths in tenant cultivation, merchandise selection and our network in Singapore were evaluated highly and we were selected for METI's overseas development support project (2012 "Cool Japan"). 渋谷エリアを で活躍する 日本の次世代 う デザイナー my paida Incorporation of local corporation for duties related to operation and management of commercial facilities in Suzhou once A month パルコのインキュベ募 シンガポールキーパー Design image of full view of Nison Plaza Project. Commercial facilities are on lower section. Established a local corporation "Hyakuraku Wa Commercial Consulting Co., Ltd." to operate and manage Nison City Mall, a shopping complex inside the Nison Plaza Project (provisional name) in Suzhou City, China. Briefing meeting to be held in September for enterprises considering opening in the property. Business planned to begin in spring 2013.#21Retail Business: NEUVE A CO., LTD. achievements and plans 21/31 Opened four new stores in H1 and plan to open four more in H2 Plans to expand store network to 160 New store openings in H1 and H2 (including planned) Shopping complex Business opening store EYEWEAR COLLECTORS Month Apr Tokyu Hands Shinjuku Apr AEON MALL Fukutsu May TOKYO Solamachi TICTAC Jul LAZONA Kawasaki Plaza TICTAC SUN STATION TERRACE Oct OKAYAMA West Building Oct URBAN DOCK LaLaport Toyosu COLLECTORS TICTAC Oct CELEO Hachioji TICTAC, COLLECTORS Business (product) Stores 72 26 222 TICTAC (wristwatches) EYEWEAR (eyeglasses) ROSEMARY (cosmetics, general merchandise) 25 COLLECTORS (men's/ladies' general merchandise) Four businesses total 33 156 * As of end of August, 2012, 101 stores outside PARCO, 55 stores inside PARCO In addition to growth in sales of original products; sales promotions incorporating environmental and social awareness were effective. Watches and men's and ladies' general merchandise performed well. TIC TAC TIC NEUVE A MEMBER'S CAND ROSEMARY NEUVE A MEMBER'S CARD 0000 0000 POKER FACE NEUVE A MEMBER'S CARD The cart can be s CLT COLLECTORS NEUVE A MEMBER'S CARD 0000 THE TAC TICTAC TOKYO Solamachi TiCTAC Customer service improvement through integration and updating of members' card From June, all members' cards from each business will be integrated as "NEUVE A Members' Card" and will be updated so that they can be used at each brand's shop and online store. card can he set is ee#22Space Engineering and Management Business: PARCO SPACE SYSTEMS CO., LTD. achievements and plans 22/31 Received orders for LED conversion. New contracts in hotel guest room business. Increased cost efficiency Received orders for conversion of lighting fixtures to LED and renovation construction in commercial facilities. Business related to facilities of a foreign airline and business related to guest rooms at foreign hotels increased. Implemented initiatives to leverage original P'es Lighting series 1. LED conversion of 50% of lighting in common areas of Kanto area PARCO stores Lighting specialists give advice to tenants Conversion of lighting in common areas of Kanto area PARCO stores to LED through original lighting which combines the most appropriate elements for commercial facilities, such as performance, production, and energy efficiency. 2. Implementation of consulting service for store tenants Implemented lighting consulting service for store tenants whereby lighting specialists provide help in creating an energy-efficient store through initiatives such as conversion to LED and high-efficiency lighting.#23Other Business PARCO-CITY CO., LTD. achievements and plans 23/31 Web production business is steady due to new orders for EC site production The consulting business has received new orders and increased contracts for EC site production at shopping centers etc. Introduced translation applications for tablet devices at PARCO stores with high numbers of foreign customers. Looking at the results, we now plan to sell externally. Giving information using a tablet device with application for English, Chinese and Korean support 永久不滅 ウォレット Transfer never-expiring points into never-expiring points wallet and use for online shopping At EC Mall we are starting the first service of its kind in the world whereby payment can be made using a combination of points and credit From September, online mall payments can be settled in part with points. This is the first service of its kind in the world. Increase sales by enticing new customers to PARCO Card members' mall and by encouraging the use of unused card points.#24Other Business Entertainment Business achievements and plans 24/31 Hits with high-quality theatre and film content. Production of topical content also planned for H2 In H1 Koki Mitani had theatre hits with his production of Checov's "The Cherry Orchard" and with his first effort at Bunraku "Much ado about love suicides" which he wrote and produced. In H2 we plan to stage highly topical plays by proven producers and actors; such as the drama "The mourner" (released by PARCO; produced by Yukihiko Tsutsumi; starring Osamu Mukai) and "The Wiz" which attracted attention for holding auditions among AKB project members (translated and produced by Amon Miyamoto; starring Yuka Masuda (AKB48)). In film, we had hits with such projects as "Helter Skelter", which was selected for special screening at the London Film Festival (Financed by PARCO; directed by: Mika Ninagawa; starring Erika Sawajiri). We are also implementing single-content multi-project deployment (concert, exhibition, CD sales, etc.). Live House "Club Quatro Umeda" Sales continue to perform better than planned. opens Aim to develop it as the center of Club Quatro's four bases; Tokyo, Nagoya, Osaka and Hiroshima. Much Ado about Suicides 2012 8.11.sat-22.wed KOKI MITANI PARCO THEATER REGA- 見せてあ ヘルタースケルタ 7.14sat#25Engagement with J. FRONT RETAILING CO., LTD. Circumstances leading up to the alliance 25/31 February 24 J. FRONT RETAILING CO., LTD. and MORI TRUST CO., LTD. concludes share transfer agreement regarding PARCO CO., LTD. common stock March 23 July 5 August 1 Based on the above agreement, J. FRONT RETAILING acquires 33% of PARCO's stock J. FRONT RETAILING announces take-over bid for 65% (maximum) of PARCO shares PARCO gives approval of J. FRONT RETAILING take-over bid and enters into a capital and business alliance with that company Development Bank of Japan exercises stock acquisition rights for PARCO convertible bonds (actual stock 18,987,300 shares) August 20 J. FRONT RETAILING completes take-over bid August 27 Percentage of PARCO shares held by J. FRONT RETAILING reaches 65% Capital and business alliance agreement with J. FRONT RETAILING commences#26I Overview of FY2012 H1 results II FY2012 H1 achievements and future plans III CSR activities 26/31#27CSR Activities 1 27/31 Ongoing CSR activities under the themes of the environment and contributing to society 食べる たのしみ。 分け合う 「しあわせ PARCO CO., LTD. Pink Ribbon Campaign PARCO X TABLE FOR TWO A social contribution plan for activities and cooperation with the aim of improving the health of people in both developing and developed countries. NEUVE A CO., LTD. Pink Ribbon (TiCTAC, Rosemary, COLLECTORS) Breast cancer screening educational activities, charity fundraising. Launched in 2009 with only female staff and started in ladies' general merchandise store. This year will have participants from all divisions and activities will include all stores and staff. "Mottainai" watch exchange (TiCTAC) Watch reuse: Resale at flea market. Proceeds go to Greenbelt activities (forestation activities in Africa) and Miyagi Prefecture Disaster Prevention Headquarters (Great East Japan Earthquake reconstruction). Recycling: Ensuring proper recycling of silver mercury amalgams to prevent environmental contamination by mercury. Bags, wallets, hats trade-in campaign (TICTAC) Trade-ins, activities to reduce Co2 emissions. Reuse of general merchandise and recycling.#28CSR Activities 2 In H1 implemented CSR policies and plans unique to PARCO Group PARCO CO., LTD. and PARCO SPACE SYSTEMS CO., LTD. Expand conversion to LED of lighting in common areas and promote energy efficiency plans Expand introduction rate of LED in Kanto area PARCO stores from 25% to 50% and reduce annual energy consumption by lighting equipment by 60%. KIDS EARTH JAZA 1988 FUND NEUVE A CO., LTD. ECO RECYCLING "Trade-in campaign" 28/31 A common area with a combination of LED and existing high-efficiency lighting In addition to trading in bags, wallets and hats, exchanging coupons and making donations, thermal recycling* activities and independent multi-type eco-recycling projects. *A method of recycling whereby thermal energy generated during incineration is converted to electric power and reused. Donate to "Kids Earth Fund*" at Mother's Day and Father's Day fair Donations made for each gift purchase. Intra-family gift plan for consumption within family circles. *Provides donations of clothing, books, art supplies to children around the world who have been traumatized by disasters, war or disease. PARCO-CITY CO., LTD. Great East Japan Earthquake charity beach sandals on sale for limited period A collaboration with a specialist beach sandal store to support aquariums and zoos affected by the disaster. Donations made to the Japanese Association of Zoos and Aquariums for each sale.#29CSR Activities 3 Support activities for next-generation fashion designers and creators 1. FIGHT FASHION FUND by PARCO 29/31 First micro fund in Japan for "everyone" to support the business growth of the next generation of fashion designers. Due to its popularity, the first fund is already fully subscribed and has been closed. Holding fashion show for designers who received funding and product development meetings and social events for investors and designers. We are going to continue to fully support business growth through activities such as providing sales opportunities at PARCO. JBR OKAMOTO my panda GET TO KNOW YOUR OWN "KAWAII MY PANDA IS A SCALE OF KAWAII EXPRESS YOUR KAWAIL. MY PANDA 15 THE COMMUNICATION OF YOU SINCE 2012 Designer Profiles JUN OKAMOTO The brand held its first fashion show at Shibuya PARCO in March. At the same time the brand's merchandise was on sale at PARCO's own once-a-month shop. Made its Japan Fashion Week (Tokyo collection) debut in October and won the Japan Fashion Week next-generation designer assistance. The brand opened its first temporary store on the 1st floor of Shibuya PARCO Part 1. my panda (Smiles Co. Ltd., Yuko Nakamura Took advantage of the Fight Fashion Fund by PARCO to launch a new brand, and held product development meetings with investors between March and June. Together with the brand launch in October opened first store on the 1st basement floor of Shibuya PARCO Part 1.#30CSR Activities 4 Discover and encourage young designers and creators Provide PARCO buildings as a forum for presentation and galleries 2. Shibuya PARCO "Shibucul Matsuri 2012: Girls' mixed culture festival" held in October Presentation of expressive works of young female creators and provide opportunities for interaction between creators 30/31 いいね! ツイート プ な Carve out a new future and bring together the talents of female creators in fashion and culture with the introduction of art work exhibitions, live music and dance performances. PARCO- 天神ラボ 女子の ミックス カルチャー 祭 祭。 4 12 3. Fukuoka PARCO "Tenjin Lab" opens in November Provide space for young fashion designers recruited from each region of Kyushu and display their products for sale Discover young creators in Kyushu by creating opportunities for presentation and sale of their products while also attracting customers.#31PARCO http://www.parco.co.jp/ Statements in this presentation that are not historical fact, such as forecasts, are forward- looking statements, based on information available as of Oct. 3, 2012, and are subject to a number of risks and uncertainties. Actual results may be materially different. Perspective drawings and other pictorial representations contained in this presentation are images and may differ materially from the actual items they represent. All rights to this material remain with PARCO or its authorized third parties. Unauthorized copying, dissemination, adaptation or distribution of this material is prohibited, as is any use of this material outside the scope of private use as defined under copyright laws.