Investor Presentaiton

Step 3. Exit Remaining Non-Core Businesses Limited group synergies - subsidiaries' underperformance relative to standalone competitors suggests that any benefits of group synergies are outweighed by the holding company's lack of focus. 1% GMS Pre-Tax ROIC (FY Feb '20) 9% 8% 6% Department Store Pre-Tax ROIC (FY Feb '20) 6% 1% 4% 0% Ito-Yokado Fuji Heiwado Izumi Sogo & Seibu Isetan Mitsukoshi Takashimaya J. Front I Group Company Standalone Company Standalone Company Standalone Company I Group Company Standalone Company Standalone Company Standalone I Company Sources: Public company documents, FactSet, VAC analysis Memo: Pre-tax ROIC defined as operating profit / average invested capital. Invested capital is the sum of net debt, leases, and equity 33

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