Takashimaya Company Limited Q3 Financial Results Briefing for the Fiscal Year Ending February 2026 – Q&A Summary

Overview of Performance

The Q3 results for the fiscal year ending February 2026 show that the department store business, commercial development business, and financial services segments all progressed as planned. Particularly in the financial services segment, the change in the card business point system and service expansion have led to steady growth in new members and transaction volume. Private banking services and investment and loan business M&A activities have also progressed, fostering confidence in achieving a profit scale of 10 billion yen by fiscal 2031. In the domestic department store business, inbound sales are slowing due to deteriorating Japan-China relations; however, domestic customer demand remains solid. SG&A expenses are being controlled by clarifying expense managers, with flexible measures planned for Q4.

Capital Policy Overview and Future Outlook

The company has decided on CB (convertible bonds with stock acquisition rights) repurchase and cancellation, planning to acquire approximately 20 billion yen of treasury stock in fiscal 2026. This measure aims to eliminate stock price suppression and dilution concerns related to CBs, thereby enhancing shareholder value. The net profit for fiscal 2025 will temporarily decrease due to CB repurchase and cancellation, but tax effects will improve cash flow over the next 4-5 years, which will be allocated to growth investments and shareholder returns. Additional treasury stock acquisitions will be considered depending on subscription conditions, targeting an EPS improvement in the high teens percentage range. The buyback premium will be up to 4%, encouraging participation. The company will continue to respond flexibly to improve capital efficiency.