ValueAct Capital Activist Presentation Deck

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. GMS Pre-Tax ROIC (FY Feb '20) Department Store Pre-Tax ROIC (FY Feb '20) 1% Ito-Yokado I I Group Company 6% Fuji Standalone Company 8% Heiwado Standalone Company 9% Izumi Standalone Company 0% Sogo & Seibu Group 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 1% Isetan Mitsukoshi Standalone Company 4% Takashimaya Standalone Company 6% J. Front Standalone I Company 33

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