Seven & i : Brief Summary for the First Quarter of FY2018

Brief Summary for the First Quarter of FY2018

Contents

Consolidated Results

Ⅰ．Financial Results P1

Ⅱ．Major Factors for the Change P2

Ⅲ．Segment Information P3

Ⅳ．Interest-Bearing Debt P4

Financial Results and Business Performance of Major Companies

Ⅰ．Domestic convenience store operationsP5

Ⅱ．Overseas convenience store operationsP6

Ⅲ．Superstore operations P7

Ⅳ．Department store operations P9

Ⅴ．Financial services P10

Ⅵ．Specialty store operations P11

Ⅶ．Group Strategy P11

Ⅷ．Capital Expenditures, Depreciation and Amortization of Major Companies P12

Store Information

Ⅰ．Store Openings and Closures of Major CompaniesP13Ⅱ．Store Information on Domestic/Overseas Convenience Store Operations P14Ⅲ．Store Information on Supestore Operations P15

Ⅳ．Store Information on Department Store Operations P15

Ⅴ．Number of Stores by Type P16

Ⅵ．Sales Floor Space P16

July 6, 2017 Seven & i Holdings Co., Ltd.

■Consolidated Results

Ⅰ．Financial Results(Millions ofyen)

Three Months Ended May 31, 2016

Three Months Ended May 31, 2017

Fiscal Year Ended Feb. 28, 2017

Fiscal Year Ending Feb. 28, 2018 (Forecast)

YOY(%)	YOY(%)	YOY(%)	YOY(%)
Group's total sales*1	2,560,924	100.6	2,674,956	104.5	10,621,530	99.2	11,150,000	105.0
Revenues from operations	1,394,749	96.8	1,468,086	105.3	5,835,689	96.5	6,100,000	104.5
Domestic convenience store operations	218,945	105.3	228,099	104.2	901,306	104.4	935,000	103.7
Overseas convenience store operations	366,894	91.7	459,975	125.4	1,658,542	91.1	1,978,000	119.3
Superstore operations	494,001	99.8	476,045	96.4	1,949,313	98.3	1,920,000	98.5
Department store operations	174,715	94.5	162,638	93.1	729,612	94.9	674,000	92.4
Financial services	48,644	103.3	50,534	103.9	201,932	104.9	207,000	102.5
Specialty store operations	105,191	90.6	103,759	98.6	450,488	96.3	422,000	93.7
Others	6,446	68.4	5,637	87.5	23,854	78.6	30,800	129.1
Eliminations / corporate	(20,088)	- (18,604)	- (79,360)	- (66,800)
Operating income (loss)	81,483	99.5	84,141	103.3	364,573	103.5	386,500	106.0
Domestic convenience store operations	58,128	100.1	59,478	102.3	243,839	103.7	245,000	100.5
Overseas convenience store operations	10,288	135.8	7,045	68.5	67,421	100.9	77,000	114.2
Superstore operations	5,377	118.7	5,291	98.4	20,228	517.3	25,200	124.6
Department store operations	(793)	- 400	- 2,867	94.3	5,200	181.4
Financial services	12,778	110.7	12,513	97.9	50,136	100.9	51,500	102.7
Specialty store operations	(2,189)	- 1,197	- (11,276)	- (1,700)
Others	939	106.8	986	105.0	4,005	86.1	3,600	89.9
Eliminations / corporate	(3,045)	- (2,769)	- (12,650)	- (19,300)
Ordinary income	82,385	101.5	83,616	101.5	364,405	104.1	385,000	105.7
Special gains	598	61.5	734	122.6	4,411	72.3
Special losses	8,131	152.5	27,664	340.2	151,248	288.1
Income before income taxes	74,853	97.4	56,686	75.7	217,569	71.6

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Net income attributable to owners of parent

Net income per share

Number of shares outstanding

Average*2

End of period*2

43,150 102.2 33,628 77.9 96,750 60.1 177,000 182.9

yen % yen % yen % yen % 48.80 102.2 38.02 79.6 109.42 60.1 200.11 182.9

884,180,553 884,495,504 884,214,252

884,199,400 884,512,634 884,402,184

*1. Group's total sales include the sales of Seven-Eleven Japan and 7-Eleven, Inc. franchisees.

*2. Excluding treasury stock.

Exchange rates	(yen)
Three Months Ended May 31, 2016	Three Months Ended May 31, 2017	Fiscal Year Ended Feb. 28, 2017	Fiscal Year Ending Feb. 28, 2018 (Forecast)
Income statements	U.S.$1=	115.35	113.60	108.78	110.00
1yuan=	17.60	16.56	16.42	16.00
Balance sheets	U.S.$1=	112.68	112.19	116.49	-
1yuan=	17.39	16.29	16.76	-

Operating income before amortization of goodwill (Millions of yen)

Three Months Ended May 31, 2016

Three Months Ended May 31, 2017

Fiscal Year Ended Feb. 28, 2017

Fiscal Year Ending Feb. 28, 2018 (Forecast)

YOY(%)	YOY(%)	YOY(%)	YOY(%)
Total	85,598	98.4	88,371	103.2	380,731	101.9	403,400	106.0
Domestic convenience store operations	58,128	100.1	59,478	102.3	243,839	103.7
Overseas convenience store operations	12,222	122.0	10,058	82.3	76,671	99.0
Superstore operations	6,152	115.9	6,066	98.6	23,329	332.1
Department store operations	86	11.9	400	462.8	4,627	58.5
Financial services	13,119	109.7	12,850	98.0	51,443	100.1
Specialty store operations	(2,004)	- 1,300	- (10,537)	-
Others	939	101.2	986	105.0	4,005	84.4
Eliminations / corporate	(3,045)	- (2,769)	- (12,650)	-

Note: Eliminations / corporate in operating income mainly reflect the Company's operating expenses relating to the Group strategy.

- 1 - Consolidated Results-Ⅰ

Ⅱ．Major Factors for the Change

(Millions of yen)

Three Months Ended

May 31, 2017 Major Factors for the Change

Change

Group's total sales*1

2,674,956 +114,032

Total store sales at Seven-Eleven Japan: +48.3 bn. Total store sales at 7-Eleven, Inc.: +91.5 bn.

The effect of exchange rate: (13.1) bn.

Revenues from operations

Operating income (loss)

Domestic convenience store operations

Overseas convenience store operations

1,468,086 +73,336 Domestic CVS: +9.1bn. Overseas CVS: +93.0 bn. Financial: +1.8 bn.

Superstore: (17.9) bn. Department store: (12.0) bn. Specialty store: (14.3) bn. The effect of exchange rate: (9.0) bn.

84,141 +2,657 Electricity charge [unit price]: +1.3 bn. Retirement benefit expense: +0.3 bn. Size-based business tax: (1.1) bn. The effect of exchange rate: (0.1) bn.

59,478 +1,349 Seven-Eleven Japan: +1.2 bn.

Sales: +7.4 bn., Gross profit margin: +1.2 bn., SG&A: (7.4) bn. Others: +0.1 bn.

7,045 (3,243) 7-Eleven, Inc.: (2.1) bn.

Sales: +1.7 bn., Gross profit margin: (1.0) bn., SG&A: (2.8) bn. The effect of exchange rate: (0.1) bn.

Amortization of goodwill: (1.0) bn.

Superstore operations 5,291 (85) Ito-Yokado: +0.2 bn.

Sales: (2.4) bn., Gross profit margin: +1.0 bn., SG&A: +1.7 bn. York-Benimaru: (0.3) bn.

Sales: +0.9 bn., Gross profit margin: (0.4) bn., SG&A: (0.8) bn. Life Foods*2: (0.05) bn.

Others: +0.03 bn.

Department store operations 400 +1,193 Sogo & Seibu: +0.3 bn

Sales: (2.8) bn., Gross profit margin: (0.1) bn., SG&A: +3.3 bn. Amortization of goodwill: +0.8 bn.

Others: (0.05) bn.

Financial services 12,513 (265) Decrease in income on non-bank operations

Specialty store perations

1,197 +3,386 Seven & i Food Systems: +0.2 bn.

Nissen Holdings: +1.7 bn. Others: +1.3 bn.

Others 986 +46 Increase in income on Seven & i Netmedia

Eliminations / corporate*3(2,769) +275

Ordinary income

Income before income taxes

Income attributable to owners of parent

83,616 +1,230 Increase in operating income, decrease in equity in earnings of affiliates, etc. 56,686 (18,166) Increase in special losses

33,628 (9,521) Reduction in effective legal tax rate, etc.

*1. Group's total sales include the sales of Seven-Eleven Japan and 7-Eleven, Inc. franchisees.

*2. Life Foods is a wholly owned subsidiary which produces and sells delicatessen in York-Benimaru stores.

*3. Eliminations / corporate in operating income mainly reflect the Company's operating expenses relating to the Group strategy.

- 2 - Consolidated Results-Ⅱ

Ⅲ．Segment Information

Business segment information (Millionsof yen)

Three Months Ended May 31, 2016

Three Months Ended May 31, 2017

Fiscal Year Ended Feb. 28, 2017

Fiscal Year Ending Feb. 28, 2018 (Forecast)

YOY(%) YOY(%) Composition(%)YOY(%) YOY(%)

Capital expenditures 94,270 102.4 65,255 69.2 100.0 384,119 96.2 807,000 210.1

- - - - - [377,090] [100.6] - -

Domestic convenience store operations 24,427 75.7 22,527 92.2 34.5 125,970 100.0 183,200 145.4

Overseas convenience store operations*24,647 168.0 20,297 82.3 31.1 147,226 130.5 510,000 346.4

Superstore operations25,601 128.3 7,675 30.0 11.8 50,086 61.8 41,10082.1

[18,566] [93.0] - - - [43,057] [75.8] - -

Department store operations 3,74790.9 2,653 70.8 4.1 12,151 90.9 13,300 109.5

Financial services 6,744 71.3 7,378 109.4 11.3 26,070 78.0 37,700 144.6

Specialty store operations 3,317 111.6 1,596 48.1 2.4 8,979 76.7 10,000 111.4

Others 1,841 216.2 47 2.6 0.1 3,259 125.3 1,700 52.1

Eliminations / corporate 3,942 51.0 3,079 78.1 4.7 10,373 56.9 10,000 96.4

Depreciation and amortization 51,617 112.2 53,014 102.7 100.0 207,483 106.1 222,100 107.0

Domestic convenience store operations 14,711 116.9 15,907 108.1 30.0 61,101 113.1 69,200 113.3

Overseas convenience store operations 16,749 107.2 17,740 105.9 33.5 64,992 99.4 69,000 106.2

Superstore operations 6,138 116.3 5,923 96.5 11.2 24,397 106.8 25,200 103.3

Department store operations 2,986 97.7 2,607 87.3 4.9 11,472 94.0 10,800 94.1

Financial services 7,256 103.5 7,234 99.7 13.6 29,416 101.2 29,000 98.6

Specialty store operations 1,877 106.2 1,412 75.2 2.7 7,787 106.9 5,800 74.5

Others 518 82.0 575 111.0 1.1 2,189 91.5 2,300 105.0

Eliminations / corporate 1,379 - 1,613 116.9 3.0 6,125 266.4 10,800 176.3

Amortization of goodwill 4,114 80.6 4,229 102.8 100.0 16,158 76.1 16,900 104.6

Domestic convenience store operations - - - - - - -

Overseas convenience store operations 1,933 79.1 3,013 155.8 71.3 9,249 86.6

Superstore operations 775 99.5 774 99.9 18.3 3,101 99.5

Department store operations 879 72.2 0 0.1 0.0 1,760 36.1

Financial services 341 81.3 337 98.9 8.0 1,306 77.1

Specialty store operations 184 94.9 103 55.9 2.4 739 95.4

Others - - - - - - -

Impairment loss 4,636 316.6 19,055 411.0 100.0 59,719 207.4

Domestic convenience store operations 1,130 248.7 1,018 90.1 5.3 8,783 118.2

Overseas convenience store operations 4 8.7 1 25.9 0.0 1,591 82.0

Superstore operations 1,016 211.5 596 58.7 3.1 23,285 199.8

Department store operations 633 226.5 17,139 - 89.9 17,623 525.9

Financial services - - - - - - -

Specialty store operations 950 476.5 298 31.4 1.6 7,522 177.0

Others 902 - 2 0.3 0.0 913 626.2

Notes: 1. Capital expenditures include long-term leasehold deposits and advances for store construction. An increase of the future amortization of assets under the "Accounting Standard for Asset Retirement Obligations" is not included.

Figures for actual results don't include goodwill and others related to the acquisition of stores, etc.

Corporate in capital expenditures mainly reflect the Company's capital expenditures relating to the Group strategy.

1. Capital expenditures include investments related to openings of stores for each fiscal year and beyond.

2. In capital expenditures, figures in square brackets [ ] show the figures reflecting the sales & leaseback of assets of a new store in superstore operations.

3. Depreciation and amortization include amortization on intangible assets. Corporate in depreciation and amortization mainly reflect the Company's depreciation and amortization relating to the Group strategy.

4. Amortization of goodwill include only the amount recorded on selling, general and administrative expenses.

5. Impairment losses include 1,320 million yen, 17,267 million yen, and 10,611 million yen recorded as restructuring expenses in the consolidated income statements for the three months ended May 31, 2016 and 2017, and recorded as the same for the fiscal year ended Feb. 28, 2017.

* Forecast capital expenditures for the overseas convenience store operations in the fiscal year ending February 28, 2018 include acquisition of part of the retail business of Sunoco LP by 7-Eleven, Inc.

Geographic area segment information

Three Months Ended May 31, 2016		Three Months Ended May 31, 2017			Fiscal Year Ended Feb. 28, 2017
YOY(%)	YOY(%)	Composition(%)	YOY(%)
Revenues from operations 1,394,749		96.8	1,468,086	105.3	100.0	5,835,689	96.5
Japan	988,780	99.3	971,003	98.2	66.1	4,032,803	99.4
North America	374,899	91.8	468,689	125.0	31.9	1,690,713	91.1
Others	31,422	84.3	28,649	91.2	2.0	113,475	83.4
Eliminations	(353)	-	(255)	-	-	(1,303)	-
Operating income 81,483		99.5	84,141	103.3	100.0	364,573	103.5
Japan	71,831	96.2	77,486	107.9	92.1	299,251	103.9
North America	9,806	136.5	6,379	65.1	7.6	65,548	100.6
Others	(158)	-	272	-	0.3	(238)	-
Eliminations	2	103.0	2	84.3	0.0	11	-

Note: "Others" consists of the business results in China, etc.

- 3 - Consolidated Results-Ⅲ