The environment around us continues to be marked by high uncertainty, with events unfolding that we could not have anticipated just a year ago. While we must respond swiftly to these changes, we also believe it is important to move forward steadily toward realizing our vision for the future without being swayed by short-term fluctuations.

The Group has a long history spanning 300 or 400 years. This is a journey of achieving change while looking toward the future. Returning to our Corporate Credo of “Service before Profit” and “Abjure All Evil and Practice All Good,” we are committed to remaining a group that fulfills the trust and expectations of our stakeholders, including shareholders, customers, local communities, employees, and business partners.

The Medium-term Business Plan launched in fiscal 2024 will conclude this fiscal year (fiscal 2026). Positioned as a “phase of change” aimed at achieving rapid growth following our recovery from the COVID-19 pandemic, this plan focuses on three key pillars: “deepening the retail business,” “evolving synergies,” and “strengthening the Group’s management foundation.” Over the past two years, we have seen positive results from expanding customer bases at our core Department Store and PARCO; development projects for key areas such as Sakae in Nagoya; expanding the Group’s customer base through the issuance of new cards; and our efforts to pursue high-efficiency businesses, such as content ownership.

This fiscal year, building on these achievements and progress, we will complete the current Medium-term Business Plan while also formulating the next Medium-term Business Plan, making it a crucial year that serves as a bridge toward future rapid growth. To transform into a resilient business structure that is not affected by changes in the external environment, we will chart a course toward sustainable growth that is not merely an extension of the past, and work together as a group to change into a “Value Co-creation Retailer Group” that generates Three Values of Co-creation: Co-creation of Excitement, Co-prosperity with Communities, and Co-existence with the Environment.

May 2026

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