Brief Summary of FY2018

Transcription

1 Contents Consolidated Results Brief Summary of FY2018 Ⅰ.Financial Results Ⅱ.Major Factors for the Change Ⅲ.Segment Information P1 P2 P3 Ⅳ InterestBearing Debt P4 Ⅴ Consolidated Balance Sheets P6 Ⅵ Consolidated Statements of Income P7 Ⅶ Consolidated Statements of Cash Flows P8 Financial Results and Business Performance of Major Companies Ⅰ.Domestic Convenience Store Operations Ⅱ.Overseas Convenience Store Operations Ⅲ.Superstore Operations Ⅳ.Department Store Operations Ⅴ.Financial Services P9 P10 P11 P13 P14 Ⅵ.Specialty Store Operations P15 Ⅶ.Group Strategy P15 Ⅷ.Capital Expenditures, Depreciation and Amortization of Major Companies P16 Store Information Ⅰ.Store Openings and Closures of Major Companies Ⅱ.Store Information on Domestic/Overseas Convenience Store Operations Ⅲ.Store Information on Supestore Operations Ⅳ.Store Information on Department Store Operations Ⅴ.Number of Stores by Type Ⅵ.Sales Floor Space P17 P18 P19 P20 P21 P21 Ⅶ.Employee and other information P22 April 5, 2018 Seven & i Holdings Co., Ltd.

2 Consolidated Results Ⅰ.Financial Results YOY(%) YOY(%) YOY(%) YOY(%) Group's total sales *1 10,703, ,621, ,048, ,920, Revenues from operations 6,045, ,835, ,037, ,683, Domestic convenience store operations 863, , , , Overseas convenience store operations 1,819,838 1,658, ,981, ,635, Superstore operations 1,982,381 1,949, ,901, ,947, Department store operations 768, , , , Financial services 192, , , , Specialty store operations 468, , , , Others 30,340 23, , , Eliminations / corporate (79,477) (79,360) (74,510) (76,000) Operating income (loss) 352, , , , Domestic convenience store operations 235, , , , Overseas convenience store operations 66,804 67, , , Superstore operations 3,910 20, , , Department store operations 3,041 2, , , Financial services 49,672 50, , , Specialty store operations (3,006) (11,276) 435 6,100 Others 4,651 4, , , Eliminations / corporate (7,846) (12,650) (13,120) (17,000) Ordinary income 350, , , , Special gains 6, , , Special losses 52, , , Income before income taxes Net income attributable to owners of parent Net income per share 303, , , , , , , yen % yen % yen % yen % Number of shares outstanding Average *2 End of period *2 884,132, ,151, ,214, ,402, ,531, ,544,201 *1. Group's total sales include the sales of SevenEleven Japan and 7Eleven, Inc. franchisees. *2. Excluding treasury stock. Exchange rates (yen) Income statements U.S.$1= yuan= Balance sheets U.S.$1= yuan= Operating income before amortization of goodwill Total YOY(%) YOY(%) YOY(%) YOY(%) 373, , , , Domestic convenience store operations 235, , , Overseas convenience store operations 77,482 76, , Superstore operations 7,025 23, , Department store operations 7,912 4, , Financial services 51,368 51, , Specialty store operations (2,231) (10,537) 848 Others 4,747 4, , Eliminations / corporate (7,846) (12,650) (13,120) Note: Eliminations / corporate in operating income mainly reflect the Company's operating expenses relating to the Group strategy. 1 Consolidated ResultsⅠ

3 Ⅱ.Major Factors for the Change Change Major Factors for the Change (yen) Group's total sales *1 11,048, ,684 Total store sales at SevenEleven Japan: bn. Total store sales at 7Eleven, Inc.: bn. The effect of exchange rate: bn. Revenues from operations 6,037, ,126 Domestic CVS: bn. Overseas CVS: bn. Financial services: +1.0 bn. Superstore: (48.1) bn. Department store: (71.7) bn. Specialty store: (33.8) bn. The effect of exchange rate: bn. Operating income (loss) 391, ,084 Retirement benefit expense: +1.5 bn. Sizebased business tax: (4.4) bn. Electricity charge [unit price] : (3.0) bn. The effect of exchange rate: +2.3 bn. Domestic convenience store operations 245,249 +1,409 SevenEleven Japan: bn. Sales: bn., Gross profit margin: +1.4 bn., SG&A: (18.7) bn. Others: bn. Overseas convenience store operations 79, ,656 7Eleven, Inc.: bn. Sales: bn., Gross profit margin: +9.9 bn. *2, SG&A: (26.8) bn. Amortization of goodwill: (2.5) bn. The effect of exchange rate: +2.3 bn. Superstore operations 21,260 +1,032 ItoYokado: +3.0 bn. Sales: (7.9) bn., Gross profit margin: +4.4 bn., SG&A: +6.5 bn. YorkBenimaru: bn. Sales: +2.8 bn., Gross profit margin: (0.36) bn., SG&A: (2.5) bn. Life Foods *3 : (0.67) bn. Others: (1.3) bn. Department store operations 5,369 +2,501 Sogo & Seibu: bn Sales: (16.2) bn., Gross profit margin: bn., SG&A: bn. Amortization of goodwill: +1.7 bn. Financial services 49,713 (423) Decrease in operating income, due to the impact of upfront expenses in the nonbank business and other factors Specialty store operations ,712 Seven & i Food Systems: bn. Others 3,670 (335) Eliminations / corporate *4 (13,120) (470) Nissen Holdings (Consolidated): +9.7 bn. Amortization of goodwill: bn. Others: +1.3 bn. Ordinary income 390, ,340 Increase in operating income, decrease in equity in earnings of affiliates, etc. Income before income taxes 276, ,751 Increase in ordinary income, decrease in special losses Income attributable to owners of parent 181, ,399 Reversal of deferred income taxes associated with reduction in legal tax rate in the U.S., etc. *1. Group's total sales include the sales of SevenEleven Japan and 7Eleven, Inc. franchisees. *2. Gross profit margin was positive as gasoline gross profit exceeded the negative impact of merchandise gross profit. *3. Life Foods is a wholly owned subsidiary which produces and sells delicatessen in YorkBenimaru stores. *4. Eliminations / corporate in operating income mainly reflect the Company's operating expenses relating to the Group strategy. 2 Consolidated ResultsⅡ

4 Ⅲ.Segment Information Business segment information YOY(%) YOY(%) YOY(%) Composition(%) YOY(%) Assets (end of period) 5,441, ,508, ,494, Domestic convenience store operations 1,063,315 1,127, Overseas convenience store operations 1,063,347 1,179, Superstore operations 1,017, , Department store operations 395, , Financial services 1,425,537 1,434, Specialty store operations 167, , Others 155, , Eliminations / corporate 220, , Capital expenditures 399, , , , [374,928] [109.9] [377,090] [100.6] Domestic convenience store operations 125, , , , Overseas convenience store operations 112, , , , Superstore operations 81,097 50, , , [56,821] [43,057] [75.8] Department store operations 13,368 12, , , Financial services 33,422 26, , , Specialty store operations 11,708 8, , , Others 2,601 3, , , Corporate 18,240 10, , , Depreciation and amortization 195, , , , Domestic convenience store operations 54,024 61, , , Overseas convenience store operations 65,381 64, , , Superstore operations 22,850 24, , , Department store operations 12,205 11, , , Financial services 29,071 29, , , Specialty store operations 7,284 7, , , Others 2,393 2, , , Corporate 2,299 6, , , Amortization of goodwill 21, , , , Domestic convenience store operations Overseas convenience store operations 10,677 9, , Superstore operations 3,115 3, , Department store operations 4,871 1, Financial services 1,695 1, , Specialty store operations Others 96 Corporate Impairment loss 28, , , Domestic convenience store operations 7,427 8, , Overseas convenience store operations 1,941 1, , Superstore operations 11,655 23, , Department store operations 3,351 17, , Financial services 28 Specialty store operations 4,250 7, , Others Corporate 21, Notes: 1. Capital expenditures include longterm leasehold deposits and advances for store construction. An increase of the future amortization Notes: 1. of assets under the "Accounting Standard for Asset Retirement Obligations" is not included. Notes: 2. Figures for actual results don't include goodwill and others related to the acquisition of stores, etc. Notes: 3. Corporate in capital expenditures mainly reflect the Company's capital expenditures relating to the Group strategy. Notes: 2. Capital expenditures include investments related to openings of stores for each fiscal year and beyond. Notes: 3. In capital expenditures, figures in square brackets [ ] show the figures reflecting the sales & leaseback of assets of a new store in superstore Notes: 4. operations. Notes: 4. Depreciation and amortization include amortization on intangible assets. Corporate in depreciation and amortization mainly reflect Notes: 4. the Company's depreciation and amortization relating to the Group strategy. Notes: 5. Amortization of goodwill include only the amount recorded on selling, general and administrative expenses. Notes: 6. Impairment losses include 6,108 million yen, 10,611 million yen, and 31,809 million yen recorded as restructuring expenses in the consolidated Notes: 6. income statements for the fiscal year ended,, and Feb Consolidated ResultsⅢ

5 Geographic area segment information ( 百万円 ) YOY(%) YOY(%) YOY(%) Composition(%) Assets (end of period) 5,441, ,508, ,494, Japan 4,373, ,371, ,239, North America 1,025, ,094, ,211, Others 43, , , Eliminations (706) (5,857) (6,273) Revenues from operations 6,045, ,835, ,037, Japan 4,056, ,032, ,907, North America 1,855, ,690, ,017, Others 136, , , Eliminations (1,931) (1,303) (1,104) Operating income 352, , , Japan 288, , , North America 65, , , Others (842) (238) 1, Eliminations (53) Note: "Others" consists of the business results in China, etc. Ⅳ.InterestBearing Debt YOY(%)/change YOY(%)/change YOY(%)/change Shortterm loans 130, , , Current portion of longterm loans 101, , , Current portion of bonds 40, , , Commercial paper Subtotal 272, , , Bonds 399, , , Longterm loans 360, , , Commercial paper Subtotal 760, , , Total 1,032, ,048, , Ratio to total assets (%) ± (1.1) Ratio to owners' equity (%) (4.4) Segment Information excluding Financial Services Domestic convenience store operations Overseas convenience store operations 132, , , Superstore operations 4,462 3, , Department store operations 169, , , Specialty store operations 49,223 53, , Others Corporate 329, , , Subtotal 686, , , Financial services 346, , , Total 1,032, ,048, , Consolidated ResultsⅣ

6 Bond information (As of ) Amount Date of issue Coupon Redemption date Issued by Seven & i Holdings 3rd unsecured domestic straight bonds 30 billion yen Jul. 3, % Jun. 20, th unsecured domestic straight bonds 60 billion yen Jun. 29, % Jun. 19, th unsecured domestic straight bonds 40 billion yen Apr. 26, % Jun. 20, th unsecured domestic straight bonds 20 billion yen Apr. 26, % Mar. 20, th unsecured domestic straight bonds 30 billion yen Jun. 17, % Jun. 20, th unsecured domestic straight bonds 60 billion yen Jun. 17, % Jun. 20, th unsecured domestic straight bonds 30 billion yen Jun. 17, % Jun. 20, 2025 Issued by Seven Bank 7th unsecured domestic straight bonds 10 billion yen May 31, % Jun. 20, rd unsecured domestic straight bonds 15 billion yen Mar. 7, % Mar. 20, th unsecured domestic straight bonds 20 billion yen Mar. 7, % Mar. 19, th unsecured domestic straight bonds 20 billion yen Mar. 7, % Mar. 20, th unsecured domestic straight bonds 15 billion yen Dec. 17, % Dec. 20, th unsecured domestic straight bonds 30 billion yen Oct. 20, % Sep. 17, 2027 Ratings (As of Mar. 31, 2018) S&P Moody's R&I JCR Seven & i Holdings Longterm AA A1 AA AA+ SevenEleven Japan Longterm AA AA+ Shortterm* A1+ P1 7Eleven, Inc. Longterm AA Baa1 Seven Bank Longterm A+ AA Shortterm A1 * From January 2006, SevenEleven Japan's shortterm rating is its rating as the guarantor of 7Eleven, Inc.'s commercial paper program. 5 Consolidated ResultsⅣ

7 Ⅴ.Consolidated Balance Sheets ASSETS February 28,2017 February 28,2018 February 28,2017 February 28,2018 Amount Amount Amount Amount LIABILITIES Current assets 2,274,403 2,340,207 Current liabilities 1,947,618 1,944,007 Cash and bank deposits 1,222,101 1,316,793 Notes and accoutns payable,trade 415, ,012 Notes and accounts receivabletrade 347, ,938 Shortterm loans 150, ,255 Trade accounts receivablefinancial services 91,052 95,482 Current portion of bonds 50,000 74,999 Merchandise and finished goods 189, ,999 Current portion of longterm loans 64,301 82,656 Work in process Income taxes payable 34,462 32,211 Raw materials and supplies 3,238 2,962 Accrued expenses 131, ,362 Prepaid expenses 49,113 52,282 Deposits received 188, ,382 ATMrelated temporary payments 98,710 96,826 ATMrelated temporary advances 46,072 45,165 Deferred income taxes 30,239 27,981 Allowance for sales promotion expenses 21,409 19,793 Other 247, ,356 Allowance for bonuses to employees 14,159 14,662 Allowance for bonuses to Directors and Allowance for doubtful accounts (4,983) (5,441) Noncurrent assets Property and equipment 1,807 1, , ,522 3,234,485 3,154,734 Call money 20,000 2,007,829 1,989,455 Other 269, ,957 Buildings and structures, net 865, ,271 Noncurrent liabilities 1,085, ,600 Furniture, fixtures and equipment, net 311, ,961 Bonds 349, ,000 Vehicles, net 288 5,463 Longterm loans 433, ,149 Land 768, ,180 Deferred income taxes 49,080 35,416 Lease assets, net 12,735 4, Construction in progress 48,677 53,677 Allowance for stock payments 95 Net defined benefit liability 9,163 9,185 55,327 54,806 77,640 79, ,502 97,546 Intangible assets 495, ,966 TOTAL LIABILITIES 3,033,082 2,919,607 Goodwill 270, ,233 Software 72,416 61,115 NET ASSETS Audit & Supervisory Board Members Allowance for loss on future collection of gift certificates Provision for sales returns Deposits received in banking business Allowance for retirement benefits to Directors and Audit & Supervisory Board Members Deposits received from tenants and franchised stores Asset retirement obligations Other 153, ,617 Shareholder's equity 2,247,056 2,348,841 Common stock 50,000 50,000 Investments and other assets 730, ,313 Capital surplus 409, ,128 Investments in securities 188, ,856 Retained earnings 1,793,035 1,894,444 Longterm loans receivable 15,315 14,794 Treasury stock, at cost (5,074) (4,731) Longterm leasehold deposits 396, ,276 Total accumulated other comprehensive income 89,000 78,423 Unrealized gains(losses)on availableforsale securities,net of taxes Advances for store construction ,467 27,897 Unrealized gains(losses)on hedging derivatives,net of taxes Net defined benefit asset 44,628 45, (92) Deferred income taxes 25,261 28,375 Foreign currency translation adjustments 56,391 46,638 Other 64,064 58,310 Remeasurements of defined benefit plans 4,117 3,979 Allowance for doubtful accounts (3,808) (3,493) Subscription rights to shares 2,594 2,623 Deferred assets 7 Noncontrolling interests 137, ,454 Business commencement expenses 7 TOTAL NET ASSETS 2,475,806 2,575,342 TOTAL ASSETS 5,508,888 5,494,950 TOTAL LIABILITIES AND NET ASSETS 5,508,888 5,494,950 Other 6 Consolidated ResultsⅤ

8 Ⅵ.Consolidated Statements of Income Year ended February 28, 2017 Year ended February 28, 2018 Revenues from operations 5,835,689 6,037,815 Net sales 4,646,370 4,807,748 Cost of sales 3,602,038 3,773,220 Gross profit on sales 1,044,331 1,034,527 Operating revenues 1,189,318 1,230,067 Gross Profit from operations 2,233,650 2,264,594 Selling,general and administrative expenses 1,869,077 1,872,936 Advertising and decoration expenses 160, ,473 Salaries and wages 456, ,662 Provision for bonuses to employees 14,085 14,606 Pension expenses 16,009 14,471 Legal welfare expenses 61,750 61,857 Land and building rent 351, ,547 Depreciation and amortization 198, ,694 Utility expenses 111, ,938 Store maintenance and repair expenses 74,531 74,120 Other 424, ,564 Operating income 364, ,657 Nonoperating income 12,797 12,014 Interest income 5,331 5,791 Dividend income 1,115 1,202 Equity in earnings of affiliates 2,062 1,496 Other 4,288 3,523 Nonoperating expenses 12,964 12,925 Interest expenses 6,262 6,475 Interest on bonds 2,496 2,351 Other 4,205 4,098 Ordinary income 364, ,746 Special gains 4,411 13,347 Gain on sales of property and equipment 3,110 8,375 Gain on sales of property and equipment related to restructuring 376 2,663 Other 924 2,309 Special losses 151, ,774 Loss on desposals of property and equipment 18,369 20,635 Impairment loss on property and equipment 49,108 57,070 Amortization of goodwill 39,300 Restructuring expenses 25,637 42,680 Other 18,831 7,388 Income before income taxes 217, ,320 Total income taxes 106,746 79,423 Income taxes current 117,686 94,421 Income taxes deferred (10,939) (14,997) Net income 110, ,896 Net income attributable to noncontrolling interests 14,072 15,746 Net income attributable to owners of parent 96, ,150 7 Consolidated ResultsⅥ

9 Ⅶ.Consolidated Statements of Cash Flows Year Ended February 28, 2017 Year Ended February 28, 2018 Cash flows from operating activities: Income before income taxes 217, ,320 Depreciation and amortization 207, ,167 Impairment loss on property and equipment 59,719 88,879 Amortization of goodwill 55,458 16,620 Increase(decrease) in allowance for bonuses to employees Decrease(increase) in net defined benefit asset 554 (938) Interest and dividends income (6,446) (6,994) Interest expenses and interest on bonds 8,759 8,826 Equity in losses (earnings) of affiliates (2,062) (1,496) Gain on sales of property and equipment (3,487) (11,038) Loss on disposals of property and equipment 18,516 20,860 Gain on transfer from business divestitures (1,090) Decrease (increase) in notes and accounts receivable,trade 6,525 7,590 Decrease (increase) in trade accounts receivable,financial services (4,175) (4,429) Decrease (increase) in inventories 18,438 11,186 Increase (decrease) in notes and accounts payable,trade 3,632 8,501 Increase (decrease) in deposits received 31,094 (14,168) Net increase (decrease) in loans in banking business (5,000) Net increase (decrease) in deposits received in banking business 20,688 14,706 Net decrease (increase) in call loans in banking business 10,000 Net decrease (decrease) in call money in banking business 20,000 (20,000) Net change in ATMrelated temporary accounts (9,276) 974 Other 8,171 (26,580) Subtotal 656, ,606 Interest and dividends received 3,712 4,468 Interest paid (7,452) (8,877) Income taxes paid (140,629) (95,827) Income taxes refund 16,936 Net cash provided by operating activities 512, ,306 Cash flows from investing activities: Acquisition of property and equipment (321,089) (277,913) Proceeds from sales of property and equipment 66,359 40,174 Acquisition of intangible assets (27,347) (33,375) Payment for purchase of investments in securities (55,010) (20,353) Proceeds from sales of investments in securities 18,806 32,435 Proceeds from sales of investments in subsidiaries resulting in change in scope of consolidation Payment for longterm leasehhold deposits (29,116) (16,199) Refund of longterm leasehold deposits 33,352 37,689 Proceeds from deposits from tenants 3,542 5,321 Refund of deposits from tenants (3,269) (5,654) Proceeds from business divestitures 12,937 Payment for acquisition of business (71,471) (4,717) Payment for time deposits (10,850) (16,294) Proceeds from withdrawal of time deposits 28,233 12,751 Other (4,067) (7,329) Net cash used in investing activities (371,602) (240,418) Cash flows from financing activities: Net increase (decrease) in shortterm loans 19,341 (23,150) Proceeds from longterm debts 139,451 56,408 Repayment of longterm debts (98,739) (73,656) Proceeds from commericial paper 75,161 Payment for redemption of commercial paper (75,161) Payment for redempion of bonds (40,000) (20,000) Capital contribution from noncontrolling interests Dividends paid (80,834) (79,558) Dividends paid to noncontrolling interests (6,142) (7,017) Purchase of treasury stock (2,276) (25) Other (8,991) (21,941) Net cash used in financing activities (78,190) (168,510) Effect of exchange rate changes on cash and cash equivalents (154) 1,508 Net increase (decrease) in cash and cash equivalents 62,576 90,886 Cash and cash equivalents at beginning of period 1,147,086 1,209,497 Decrease in cash and cash equivalents resulting from exclusion of the subsidiary from consolidation (164) Cash and cash equivalents at end of period 1,209,497 1,300,383 8 Consolidated ResultsⅦ

10 Financial Results and Business Performance of Major Companies Ⅰ.Domestic Convenience Store Operations SevenEleven Japan Financial results Total store sales Net sales of franchised stores YOY(%) YOY(%) YOY(%) YOY(%) 4,291, ,515, ,678, ,875, ,182, ,409, ,575, Revenues from operations Franchise commission from franchised stores Gross profit from operation 793, , , , , , , , , SG&A expenses Advertising expenses Salaries and wages Land and building rent Depreciation and amortization * Utility expenses Others Operating income Net income 481,362 66,464 67, ,340 51,784 47, , , , ,907 69,002 72, ,863 58,829 43, , , , ,633 59,377 74, ,947 64,294 46, , , , * Depreciation and amortization include amortization on intangible assets. 872, , Sales by product category (total store sales) Total store sales 4,291, ,515, ,678, Processed food 1,115, ,183, ,230, Fast food 1,278, ,350, ,412, Daily food 579, , , Nonfood 1,317, ,368, ,408, YOY(%) Composition(%) YOY(%) Composition(%) YOY(%) Composition(%) YOY(%) 4,875, Average daily sales per store (Thousands of yen) Change Change Change Change All stores (4) Newly opened stores Existing store sales increase (%) Existing store sales increase * [incl.prepaid card] [+2.9] [+1.8] [+0.7] Number of customers Average spending per customer * [incl. prepaid card] [+1.6] [+1.7] (0.9) +1.5 [+1.6] * From FY2019 onward, the Company will change its disclosure to exclude the impact of prepaid card in its figures. Accordingly, previous fiscal years results have been restated under this standard, and there is no impact on the number of customers. Gross profit margin by product category (%) Change Change Change Change Total Processed food Fast food 35.5 (0.2) Daily food Nonfood (0.3) 9 Financial Results and Business Performance of Major CompaniesⅠ

11 Ⅱ.Overseas Convenience Store Operations 7Eleven, Inc. Financial results Total store sales Merchandise sales at directly operated stores Merchandise sales at franchised stores Gasoline sales Dec. 31, 2017 Revenues from operations Merchandise sales at directly operated stores,etc 1,819, , ,658, , ,981, , Gasoline sales Other operating revenues 1,221, , ,113, , ,413, , Franchise commission from franchised stores 246, , , Gross profit from operations 472, , , SG&A expenses Dec. 31, 2018 (Forecast) Directly operated stores * 527, , , Operating income Operating income (thousands of dollar) 77, , , , , , ,000 1,000, Net income 45, , , Net income (thousands of dollar) 373, , , * Selling expenses of directly operated stores. Sales by product category (total store sales) Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2018 (Forecast) YOY(%) Composition(%) YOY(%) Composition(%) YOY(%) Composition(%) YOY(%) Net sales 2,950, ,735, ,134, ,840, Merchandise sales 1,728, ,621, ,721, Processed food 695, , , Fast food 261, , , Daily food 110, , , Nonfood 661, , ,325 Gasoline sales 1,221, ,113, ,413, Existing store sales increase Average daily sales per store Dec. 31, 2017 Dec. 31, 2017 Change Change Change Change All stores (dollar) All stores (thousands of yen) 4, , (50) 4, Merchandise gross profit margin Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2017 Gross profit margin Gasoline Sales (thousands of dollar) Margin (cents per gallon)* Dec. 31, 2015 Dec. 31, 2016 YOY(%) YOY(%) YOY(%) YOY(%) 2,950, ,735, ,134, , , , ,401, ,336, ,440,311 Change Change Change Change Dec. 31, ,840, *Gross profit is shown for the entire gasoline business, including wholesale business. Exchange rates (Income statements) (yen) Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2018 (Forecast) U.S. $1= ,221, ,113, ,413, , , , SG&A expenses (thousands of $) 3,263, ,425, ,562,387 U.S. merchandise sales increase (dollar basis) Dec. 31, 2015 Dec. 31, Dec. 31, 2015 Dec. 31, ,635, Dec. 31, 2018 (Forecast) Dec. 31, 2018 (Forecast) Dec. 31, 2018 (Forecast) (0.5) 34.7 Dec. 31, 2018 (Forecast) YOY(%)/change YOY(%)/change YOY(%)/change YOY(%)/change 10,087, ,240, ,598, Gallons sold (thousands of gallon) 4,292, ,910, ,266, Average retail price (dollars per gallon) Retail fuel margin (cents per gallon) Dec. 31, (1.01) Dec. 31, (0.94) 2.17 (0.28) (0.92) (1.01) (%) (%) Financial Results and Business Performance of Major CompaniesⅡ

12 Ⅲ.Superstore Operations ItoYokado Financial results YOY(%) YOY(%) YOY(%) YOY(%) Revenues from operations Net sales Gross profit from operation 1,289,586 1,255, , ,255,017 1,219, , ,244,262 1,213, , ,263,400 1,232, SG&A expenses Advertising expenses Salaries and wages Land and building rent Depreciation and amortization * 334,380 33, ,138 61,175 13, ,879 19, ,112 61,687 13, ,285 20, ,474 59,005 12, Utility expenses Others Operating income Net income (loss) 19,321 75,033 (13,980) (23,923) ,779 73, (13,797) ,290 70,255 3,077 (5,821) , * Depreciation and amortization include amortization on intangible assets. Sales by product category Net sales 1,255, ,219, ,213, Merchandise sales 931, , , Apparel 187, , , Household goods 142, , , Food 601, , , Tenants 314, , , Others 9, , , Existing store sales increase Total +0.4 (3.4) (0.9) YOY(%) Composition(%) YOY(%) Composition(%) YOY(%) Composition(%) YOY(%) (%) Existing store sales increase +0.2 (4.2) (1.4) +0.1 Apparel Household goods Food Number of customers Average spending per customer (0.8) (0.3) +0.6 (0.1) +0.4 (6.3) (7.1) (2.9) (4.4) +0.3 (4.0) (0.5) (0.9) (1.7) +0.3 Tenants +1.1 (1.4) +0.5 Gross profit margin by product category (%) 1,232, Change Change Change Change Total 28.6 (1.3) Apparel 32.3 (4.9) Household goods 29.7 (0.6) Food 27.2 (0.3) (0.1) <Concerning the Business Reorganization of ItoYokado> The cosmetic and drug sales areas in ItoYokado s household goods division were carved out in a corporate split and transferred to Seven Bi no Garden Co., LTD.; however, to facilitate a flexible sales area reorganization at ItoYokado, it absorbed Seven Bi no Garden Co., LTD. on March 1, As a result, the result for the fiscal year ending February 28, 2018 and the forecast for the fiscal year ending February 28, 2019 reflect the figures for Seven Bi no Garden Co., LTD. Furthermore, since the forecast uses figures from after reorganizing the existing store sales, there is no impact on the existing store sales growth. The impact on the gross profit margin is negligible. 11 Financial Results and Business Performance of Major CompaniesⅢ

13 YorkBenimaru Financial results YOY(%) YOY(%) YOY(%) YOY(%) Revenues from operations Net sales Gross profit from operation 412, , , , , , , , , , , SG&A expenses Advertising expenses Salaries and wages Land and building rent Depreciation and amortization * 88,784 6,667 45,946 9,136 3, ,185 6,624 48,472 9,378 4, ,713 6,655 50,184 9,601 5, Utility expenses Others Operating income Net income 6,127 16,975 13,324 8, ,413 17,777 14,054 8, ,422 17,701 14,070 9, , * Depreciation and amortization include amortization on intangible assets. [Reference] Results including Life Foods * YOY(%) YOY(%) YOY(%) YOY(%) Operating income 17, , , , Note: Results including Life Foods represent internal management reporting figures. * Life Foods is a wholly owned subsidiary which produces and sells delicatessen in YorkBenimaru stores. Sales by product category YOY(%) Composition(%) YOY(%) Composition(%) YOY(%) Composition(%) YOY(%) Net sales 406, , , , Merchandise sales 348, , , Food 312, , , Fresh food 139, , , Processed food 95, , , Daily food 77, , , Apparel 15, , , Household goods 20, , , Tenants 57, , , Life Foods * 47, , , Others 9, , , * Represents sales amount for delicatessen items in YorkBenimaru stores. Existing store sales increase (%) Existing store sales increase (0.4) +1.0 Food Apparel Household goods Tenants Number of customers +1.8 (5.4) (2.1) (3.9) +0.5 (0.5) (9.9) (2.8) (0.4) ±0.0 Average spending per customer (0.3) (0.3) (0.5) Gross profit margin by product category (%) Change Change Change Change Total (0.1) Food (0.2) Apparel 30.8 (0.4) Household goods (0.3) 12 Financial Results and Business Performance of Major CompaniesⅢ

14 Ⅳ. Department Store Operations Sogo & Seibu Financial results Revenues from operations Net sales Gross profit from operation 803, , , , , , , , , , , SG&A expenses Advertising expenses Salaries and wages Land and building rent 170,514 27,005 43,977 41, ,306 25,467 41,770 40, ,772 22,274 37,370 36, Depreciation and amortization * 11, , , Utility expenses Others Operating income Net income (loss) * Depreciation and amortization include amortization on intangible assets. Sales results of major stores Ikebukuro (flagship store) Yokohama Chiba Hiroshima Shibuya Omiya 190, ,200 76,053 43,115 42,376 33, , ,690 73,381 41,438 41,779 33, , ,603 74,439 40,909 43,671 33, Note: Store sales include corporate sales. Sales by product category YOY(%) YOY(%) YOY(%) YOY(%) 10, , , , , , , , , (4,034) (28,426) (29,973) 5, YOY(%) YOY(%) YOY(%) YOY(%) YOY(%) Composition(%) YOY(%) Composition(%) YOY(%) Composition(%) YOY(%) Net sales 790, , , , Merchandise sales 561, , , Apparel 317, , , Household goods 81, , , Food 163, , , Tenants 188, , , Corporate sales 40, , , Existing store sales increase (%) Existing store sales increase ±0.0 (2.7) Gross profit margin by product category (%) Change Change Change Change Total 24.3 (0.3) 23.9 (0.4) Apparel 28.7 (0.2) 28.2 (0.5) Household goods 23.7 (0.2) 23.6 (0.1) 23.5 (0.1) Food 16.2 ± (0.2) 16.0 ± Financial Results and Business Performance of Major Companies Ⅳ

15 Ⅴ.Financial Services Seven Bank Number of ATMs (1)Domestic installation Change Change Change Total 22,388 +1,449 23, , Net ATMs in the Group 20,373 +1,116 21, , SevenEleven Japan 19,777 +1,067 20, , ItoYokado (8) 294 (18) YorkBenimaru York Mart Others ±0 86 (6) Net ATMs outside the Group 2, , , (2)Overseas installation Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2017 Change Change Change North America 6, ,227 (398) 11,582 +5,355 Average number of transaction per day per ATM during the period Change Change Change Average number of transactions 99.2 (2.0) 95.6 (3.6) 94.2 (1.4) International money transfer service (Thousands) Change Change Change Number of contract accounts Cumulative number of transfers , Seven Card Service / Seven CS Card Service Number of credit cards, point cards and cash cards (10 thousands) Change Change Change Credit cards 673 (6) 670 (3) 665 (5) SEVEN CARD plus / SEVEN CARD 351 (8) 347 (4) CLUB ON/Millennium CARD SAISON Electronic money (nanaco ) 4, , ,983 Notes: 1. SEVEN CARD plus / SEVEN CARD and CLUB ON/Millennium CARD SAISON issued represent only the number of effective card members. Notes: 2. CLUB ON/Millennium CARD SAISON does not include dedicated cards for point services, without credit functions. Notes: 3. The number of nanaco includes the number of mobile nanaco holders. (6) Financial Results and Business Performance of Major Companies Ⅴ

16 Ⅵ. Specialty Store Operations Seven & i Food Systems Financial results YOY(%) YOY(%) YOY(%) YOY(%) Revenues from operations Net sales Gross profit from operation 83,839 83,680 53, ,562 82,394 52, ,350 80,188 50, ,600 80, SG&A expenses Operating income 52,636 1, , , , [Denny's] Existing store sales increase Existing store sales increase (0.2) (2.8) +1.0 Number of customers (3.5) ±0.0 (1.7) Average spending per customer +3.4 (2.8) +2.8 [Denny's * ] Gross profit margin Gross profit margin Nissen Holdings (Consolidated) (%) +2.8 (%) Change Change Change Change 68.2 (0.6) (0.4) The fiscal year ended February 28, 2017 is a 14month period due to changing the fiscal yearend from December 20 to February 28. Figures for the fiscal year ended are for the period from December 21, 2014 to December 20, Financial results *1 Net sales Gross profit from operation 158,732 56, ,226 42, ,202 32, , SG&A expenses Operating income 64,890 (8,451) ,840 (15,097) ,924 (5,363) 65.6 (200) Reference Financial results *2 *3 YOY(%) YOY(%) YOY(%) Net sales 150, , , Gross profit from operation 52,268 35, , SG&A expenses Operating income *1. FY2019 forecast sales are 42,200 million yen (41.3% YOY) and operating income 100 million yen, excluding the impact of the share transfer agreement concluded for *1. Shaddy Co., Ltd., and affiliated companies on March 26, *1. Figure for the fiscal year ended February 28, 2016 are restated for the period from February 21, 2015 to February 28, 2016 for reference. *2. Figure for the fiscal year ended February 28, 2017 are restated for the period from February 21, 2016 to February 28, 2017 for reference. Ⅶ. Group Strategy (1)Seven Premium Change Change Change Change Sales (billions of yen) 10,010 +1,860 11,500 +1,490 13,200 +1,700 14, Items 3, , , , (2)EC sales YOY(%) YOY(%) YOY(%) YOY(%) 60,962 48, ,924 (8,693) (12,420) (5,363) Change Change Change Change EC sales Seven Net Shopping SevenMeal *1 ItoYokado ItoYokado's Net Supermarket *1 85,442 8,659 23, ,417 97,660 14,104 26,678 2,661 44, ,218 +5,445 +3,589 +2,120 +1, ,785 22,048 26,548 4,500 44, ,125 +7,944 (130) +1,839 (501) 125, ,215 Akachan Honpo *2 6,584 5,617 (967) 6, Sogo & Seibu 2,371 2, , LOFT Other (204) 1, *1 Deliverytype service while others are mail order salestype services. *2 Sales through the "omni7" website from September Financial Results and Business Performance of Major CompaniesⅥ Ⅶ

17 Ⅷ.Capital Expenditures, Depreciation and Amortization of Major Companies YOY(%) YOY(%) YOY(%) YOY(%) Domestic convenience store operations SevenEleven Japan Total capital expenditures 124, , , , Investment to new stores 79, , , Investment to existing stores and other 37, , , Software development 6, , , Depreciation and amortization 51, , , , Overseas convenience store operations 7Eleven, Inc. Total capital expenditures 159, , , , Investment to new stores and other 103, , , Investment to existing stores and other 47, , , Software development 8, , , Depreciation and amortization 65, , , , Superstore operations ItoYokado Capital expenditures 58, , , , [34,279] [83.5] [23,607] [68.9] Investment to new stores 35, , , [11,013] [50.2] [12,003] [109.0] Investment to existing stores and other 15, , , Software development 7, Depreciation and amortization 13, , , , YorkBenimaru Total capital expenditures 10, , , , Investment to new stores 6, , , Investment to existing stores and other 3, , , Software development Depreciation and amortization 3, , , , Department store operations Sogo & Seibu Total capital expenditures 12, , , , Investment to new stores Investment to existing stores and other 10, , , Software development 1, , Depreciation and amortization 11, , , , Notes: 1. Capital expenditures include longterm leasehold deposits and advances for store construction. Notes: 1. An increase of the future amortization of assets under the "Accounting Standard for Asset Retirement Obligations" is not included. Notes:2. Capital expenditures include investments related to openings of stores for each fiscal year and beyond, and goodwill and others due to the acquisition of Notes: 1. stores, etc. Notes 3. Depreciation and amortization include amortization on intangible assets. Notes 4. [ ] Figures reflect sales & leaseback of assets of new stores at ItoYokado. 16 Financial Results and Business Performance of Major Companies Ⅷ

18 Store Information Ⅰ.Store Openings and Closures of Major Companies Change Change Change Change Domestic convenience store operations SevenEleven Japan 18,572 +1,081 19, , , Openings 1,651 1,682 1,554 1,500 Closures Relocations, etc Terminations of contract SEVENELEVEN (BEIJING) * Openings Closures SEVENELEVEN (TIANJIN) * Openings Closures SEVENELEVEN (CHENGDU) *1 60 (6) ±0 Openings Closures Overseas convenience store operations 7Eleven, Inc. *1 8, , ,670 (37) 9, Openings ,230 Closures Superstore operations ItoYokado (11) 164 (7) 158 (6) Openings Closures YorkBenimaru Openings Closures York Mart 76 ± ± Openings Closures Hua Tang Yokado Commercial *1 5 (1) 2 (3) 1 (1) 1 ±0 Openings Closures Chengdu ItoYokado *1 6 ±0 6 ± Openings Closures Department store operations Sogo & Seibu 23 (1) 19 (4) 15 (4) 15 ±0 Openings Closures/Transfers Specialty store operations Akachan Honpo Openings Closures LOFT * Openings Closures Seven & i Food Systems (36) 749 (66) 736 (13) Denny's 389 (3) 386 (3) 377 (9) 374 (3) Openings Closures Other 372 (57) 362 (10) Note: Changes in number of stores represent the net change from the beginning of the fiscal year. *1. Figures are as of the end of September, or the end of December. *2. The number of LOFT stores includes 14 franchised stores for FY2016, 16 franchised stores for FY2017, 17 franchised stores for FY Store InformationⅠ

19 Ⅱ.Store Information on Domestic/Overseas Convenience Store Operations Domestic Store Network Global SevenEleven Store Network Feb Feb Feb Change [Consolidated subsidiaries] Hokkaido Feb Feb Feb Change Aomori Japan 18,572 19,422 20, Iwate North America *1 8,500 8,707 8,670 (37) Miyagi U.S.A. 7,995 8,057 8,030 (27) Akita Canada (10) Yamagata Hawaii Fukushima China [Beijing] Ibaraki China [Tianjin] Tochigi China [Chengdu] Gunma Subtotal 27,452 28,560 29, Saitama 1,109 1,140 1, *1. Figures for "North America" are the number of franchised stores Chiba 1,006 1,055 1, *1. and directly operated stores operated by 7Eleven, Inc. Tokyo 2,396 2,483 2, Kanagawa 1,319 1,361 1, Niigata Toyama [Area licensees] Ishikawa Dec *2 Dec *2 Dec Change Fukui ±0 South Korea 8,000 8,556 9, Yamanashi China 1,727 1,814 1, Nagano [Hong Kong and others]* 3 Gifu China [Shanghai] Shizuoka China [Shandong] Aichi 996 1,018 1, China [Chongqing] Mie China [Zhejiang] Shiga Taiwan 5,029 5,107 5, Kyoto Thailand 8,832 9,542 10, Osaka 1,014 1,140 1, Philippines 1,602 1,995 2, Hyogo Malaysia 1,944 2,122 2, Nara ±0 Singapore (24) Wakayama Australia Tottori UAE Shimane Vietnam Okayama U.S.A Hiroshima Mexico 1,879 1,878 1,835 (43) Yamaguchi Norway (1) Tokushima ±0 Sweden Kagawa Denmark (4) Ehime Subtotal 31,259 33,245 35,154 +1,909 Kochi *2. Figures for FY15/12 and FY16/12 include the number of Fukuoka *2 stores in Indonesia. Saga *3. Figures for China [Hong Kong and others] include Guang Dong Nagasaki *3. Province and Macau. Kumamoto Oita Feb *4 Feb *4 Feb Change Miyazaki Total worldwide 58,711 61,805 64,600 +2,795 Kagoshima *4. Figures for FY16/2 and FY17/2 include the number of Total 18,572 19,422 20, *2 stores in Indonesia. Notes: 1. Figures for overseas stores are as of the end of September, or as of the end of December. Notes: 2. As of, SevenEleven Japan operates in 46 prefectures out of 47 prefectures in Japan. Notes: 2. As of, the number of 7Eleven stores around the world including area licensees are 65,829 stores. 18 Store InformationⅡ

20 Ⅲ.Store Information of Superstore Operations (1) ItoYokado Results for the fiscal year ended February 28, 2018 (Square meters) Store name Location Date Sales floor space Directly managed sales floor space Openings Shokuhinkan Shinurayasu (food specialty store) (S&B) Chiba Jun. 28, ,725 4,725 PRIMETREE AKAIKE Aichi Nov. 24, ,600 2,901 Closures Hadano Shokuhinkan Takaido (food specialty store) Kamiooka(S&B) Hirohata Kanagawa Tokyo Kanagawa Hyogo Mar. 5, 2017 Mar. 12, 2017 Mar. 20, 2017 Mar. 26, , ,055 13,466 Shinurayasu(S&B) Chiba May 28, ,276 Nara Nara Sep. 10, ,000 Ario Matsumoto Nagano Sep. 10, ,738 Shokuhinkan Azusawa (food specialty store) Tokyo Jan. 21, ,936 THE PRICE Takiyiama Tokyo Feb. 25, ,783 Plan for the fiscal year ending February 28, 2019 (Square meters) Store name Location Date Sales floor space Directly managed sales floor space Opening Shokuhinkan Seya (food specialty store) Kanagawa Mar. 31, ,900 1,709 Closure Shokuhinkan Shinurayasu (food specialty store) Chiba Apr ,683 In addition to the above, 6 stores will be closed in the fiscal year ending February 28, (2) YorkBenimaru Results for the fiscal year ended February 28, 2018 (Square meters) Store name Location Date Sales floor space Directly managed sales floor space Openings TsuchiuraIkutamachi Ibaraki Mar. 17, ,908 2,746 Shintomioka(S&B) Fukushima Mar. 30, ,090 1,016 Ochiai Yamagata Apr. 28, ,290 3,732 Izumishimokawa Fukushima Jul. 28, ,080 1,913 Josaimachi Fukushima Sep. 22, ,842 1,682 FukushimaKamata Fukushima Oct. 27, ,091 1,920 Kanaya Fukushima Nov. 17, ,514 2,312 Moniwa Miyagi Nov. 23, ,353 2,189 HitachiKawaragocho Ibaraki Jan. 19, ,292 2,118 Tomizawanishi Miyagi Jan. 26, ,352 2,151 Furukawa Miyagi Feb. 16, ,309 2,131 Closures Tomioka(S&B) Fukushima Mar. 30, ,298 3,119 Dainome Yamagata Apr. 23, ,818 4,815 Yonomori Fukushima Jul. 31, Yamatomachi Miyagi Jan. 21, , Plan for the fiscal year ending February 28, 2019 (Square meters) Store name Location Date Sales floor space Directly managed sales floor space Openings KnumaKamidonomachi Tochigi Mar. 9, ,962 1,792 Takahata Yamagata Mar. 23, ,988 1,818 In addition to the above, 8 stores will be opened, and 2 stores will be closed in the fiscal year ending February 28, Notes: S&B stands for Scrap & Build. 19 Store InformationⅢ Ⅳ