Seven & i : Brief Summary for the First Quarter of FY2022

Brief Summary

for the First Quarter of FY2022

Contents

Consolidated Results

		Ⅰ．Financial Results	P1
		Ⅱ．Major Factors for the Change	P2
		Ⅲ．Segment Information	P3
		Ⅳ．Interest-Bearing Debt & Ratings	P4
		Ⅴ．Financial Results (New Business Segment Information)	P6
		Ⅵ．Segment Information (New Business Segment Information)	P7
		Ⅶ．Interest-Bearing Debt (New Business Segment Information)	P7
		Ⅷ．Consolidated Balance Sheets	P8
		Ⅸ．Consolidated Statements of Income	P9
		Ⅹ．Consolidated Statements of Cash Flows	P10
	Financial Results and Business Performance of Major Companies
		Ⅰ．Domestic Convenience Store Operations	P11
		Ⅱ．Overseas Convenience Store Operations	P12
		Ⅲ．Superstore Operations	P13
		Ⅳ．Department and Specialty Store Operations	P15
		Ⅴ．Financial Services	P16
		Ⅵ．Group Strategy	P17

Ⅶ．Capital Expenditures, Depreciation and Amortization of Major Companies P18

Store Information

Ⅰ．Number of Stores and Store Openings / Closures of Major Companies	P19
Ⅱ．Store Information in Domestic / Overseas Convenience Store Operations	P20
Ⅲ．Store Information in Superstore Operations	P21
Ⅳ．Number of Stores by Type	P22
Ⅴ．Sales Floor Space	P22

July 8, 2021 Seven & i Holdings Co., Ltd.

■ Consolidated Results

New business segments will be applied from the second quarter of FY2022. Please refer to pages 6-7for data on the new business segments.

Ⅰ．Financial Results													(Millions of yen)
				Three Months Ended	Three Months Ended		Fiscal Year Ended	Fiscal Year Ending
				May 31, 2020			May 31, 2021		Feb. 28, 2021			Feb. 28, 2022 (Forecast)
					YOY(%)			YOY(%)				YOY(%)			YOY(%)
Group's total sales			2,660,733		91.9		2,871,482	107.9	11,044,874			92.1		13,549,000	122.7
Revenues from operations			1,391,828		87.2		1,555,371	111.8	5,766,718			86.8		8,038,000	139.4
	Domestic convenience store operations		218,947		92.6		232,479	106.2		920,832			94.8		968,000	105.1
	Overseas convenience store operations	589,117		94.8		664,368	112.8	2,191,383			80.0		4,301,000	196.3
	Superstore operations			428,315		91.6		451,684	105.5	1,810,884			97.9		1,844,000	101.8
	Department store operations	65,086		46.3		100,303	154.1	425,153			73.6		468,000	110.1
	Financial services			49,347		91.4		49,101	99.5	198,927			91.5		204,000	102.5
	Specialty store operations			52,837		59.2		67,294	127.4	263,803			77.7		302,000	114.5
	Others			4,184		75.1		6,145	146.9		22,011			87.3		23,000	104.5
	Eliminations / Corporate			(16,008)		-		(16,005)	-		(66,277)			-		(72,000)	-
Operating income (loss)			71,390		79.0		77,512	108.6	366,329			86.3		380,000	103.7
	Domestic convenience store operations		51,658		85.9		60,356	116.8		234,258			91.3		247,100	105.5
	Overseas convenience store operations	11,485		88.9		12,350	107.5	98,097			96.2		114,700	116.9
	Superstore operations			10,373		239.7		5,843	56.3	29,683			139.3		23,800	80.2
	Department store operations	(1,211)		-		(2,154)	-	(6,248)			-		700	-
	Financial services			11,485		85.1		10,431	90.8	48,077			89.7		33,100	68.8
	Specialty store operations			(6,056)		-		(1,688)	-	(13,572)			-		(200)	-
	Others			(646)		-		1,054	-		1,944			125.1		2,400	123.4
	Eliminations / Corporate			(5,697)		-		(8,682)	-		(25,911)			-		(41,600)	-
Ordinary income			69,462		78.2		69,869	100.6		357,364			85.5		343,500	96.1
Special gains			551		45.5		7,322	-	10,433			122.0
Special losses			40,622		534.3		12,479	30.7		109,022			136.3
Income before income taxes			29,391		35.7		64,713	220.2	258,776			74.7
Net income attributable to owners of parent	13,937		26.8		43,018	308.7	179,262			82.2		190,000	106.0
EBITDA			136,150		89.7		145,669	107.0	626,874			93.0		738,300	117.8
ROA (%)									2.8
ROE (%)									6.8
Net income per share (EPS) (yen)	15.79		26.8		48.72	308.5		203.03			82.2		215.18	106.0
EPS before amortization of goodwill (yen)		22.65		34.6		55.92	246.8		231.39			84.6		292.52	126.4
Number of shares outstanding
Average			882,849,001		882,969,270	882,927,577
End of period			882,894,376		883,012,666	882,966,279
Exchange rates																(yen)
				Three Months Ended	Three Months Ended		Fiscal Year Ended	Fiscal Year Ending
				May 31, 2020			May 31, 2021		Feb. 28, 2021			Feb. 28, 2022 (Forecast)
Income statements	U.S.$1=		108.86				106.09		106.76					107.00
		1yuan=		15.59				16.38			15.48					16.00
Balance sheets	U.S.$1=		108.83				110.71		103.50					-
		1yuan=	15.31				16.84		15.88					-
EBITDA															(Millions of yen)
				Three Months Ended	Three Months Ended		Fiscal Year Ended	Fiscal Year Ending
				May 31, 2020			May 31, 2021		Feb. 28, 2021			Feb. 28, 2022 (Forecast)
					YOY(%)			YOY(%)				YOY(%)			YOY(%)
Total			136,150		89.7		145,669	107.0	626,874			93.0		738,300	117.8
	Domestic convenience store operations		71,250		90.5		80,637	113.2		314,114			94.3
	Overseas convenience store operations	36,686		99.0		39,520	107.7	200,516			100.8
	Superstore operations			17,954		157.5		13,494	75.2	59,711			118.3
	Department store operations	1,049		53.6		74	7.1	2,843			28.8
	Financial services			19,191		92.1		18,059	94.1	77,202			93.0
	Specialty store operations			(4,931)		-		(522)	-	(8,854)			-
	Others			(10)		-		1,552	-		4,214			105.3
	Eliminations / Corporate			53,001		101.9		(7,147)	-		(22,873)			-
Notes: 1. Group's total sales include the sales of Seven-Eleven Japan, Seven-Eleven Okinawa and 7-Eleven, Inc. franchisees.
	2."Eliminations / Corporate" in operating income mainly reflects the Company's operating expenses relating to the Group strategy.
	3. EBITDA: Operating income + Depreciation and amortization + Amortization of goodwill*	*Amortization of goodwill: Only figure included in SG&A expenses

4.	ROA: Net income attributable to owners of parent / Average of total assets at the beginning and the end of each fiscal year
5.	ROE: Net income attributable to owners of parent / Average of owners' equity* *Owners' equity: Net assets－Subscription rights to shares－Non-controlling interests
	at the beginning and the end of each fiscal year

1. EPS: Net income attributable to owners of parent / Weighted average shares outstanding during the period
2. EPS before amortization of goodwill: (Net income attributable to owners of parent + Amortization of goodwill) / Weighted average shares outstanding during the period
3. Number of shares outstanding at each fiscal year-end and of weighted average shares over each fiscal period do not include treasury stock. Seven & i Holdings introduced the BIP Trust and ESOP Trust and its shares held by these Trusts are included in the number of treasury stocks.

- 1 -

Consolidated Results-Ⅰ

Ⅱ．Major Factors for the Change

			(Millions of yen)	(Billions of yen)
			Three Months Ended
			May 31, 2021	Major Factors for the Change
				Change
Group's total sales*1	2,871,482	+210,748	Total store sales at Seven-Eleven Japan: +54.2
					Total store sales at 7-Eleven, Inc.: +78.7
					[Effect of exchange rate: (24.0)]
Revenues from operations	1,555,371	+163,543	Domestic CVS: +13.5, Overseas CVS: +75.2, Superstore: +23.3
					Department store: +35.2, Financial services: (0.24), Specialty store: +14.4
					[Effect of exchange rate: (16.2)]
Operating income (loss)	77,512	+6,121	[Effect of exchange rate: (0.35)]
	Domestic convenience	60,356	+8,698	Seven-Eleven Japan: +8.1
	store operations			Sales: +10.5, Gross profit margin: (0.80), SG&A expenses: (1.5)
					Others: +0.53
	Overseas convenience	12,350	+864	7-Eleven, Inc.: +1.1 [of which, effect of exchange rate: (0.46)]
	store operations			Sales: +10.9, Gross profit margin*2: (0.15), SG&A expenses: (9.6)
					Amortization of goodwill: (0.29) [of which, effect of exchange rate: +0.14]
	Superstore operations	5,843	(4,529)	Ito-Yokado: (0.50)
					Sales: +3.7, Gross profit margin: (2.8), SG&A expenses: (1.3)
					York-Benimaru: (2.6)
					Sales: +0.51, Gross profit margin: (0.99), SG&A expenses: (1.1)
					Life Foods*3: +0.22
					Others: (1.5)
	Department store operations	(2,154)	(943)	Sogo & Seibu: (1.0)
					Sales: +7.0, Gross profit margin: +0.65, SG&A expenses: (8.6)
					Others: +0.06
	Financial services	10,431	(1,053)
	Specialty store operations	(1,688)	+4,368	Seven & i Food Systems: +1.5
					Nissen Holdings [Consolidated]: +0.06
					Others: +2.7
	Others	1,054	+1,701
	Eliminations / Corporate*4		(8,682)	(2,984)
Ordinary income	69,869	+407	Increase in operating income, increase in non-operating expenses
Income before income taxes	64,713	+35,321	Increase in ordinary income, decrease in special losses
Net income attributable to	43,018	+29,081
owners of parent

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

*2. Growth in gross profit on merchandise sales was outweighed by a decrease in gross profit on gasoline sales, leading to an overall decline in the gross margin.

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

*4. 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													(Millions of yen)
				Three Months Ended		Three Months Ended		Fiscal Year Ended		Fiscal Year Ending
				May 31, 2020			May 31, 2021					Feb. 28, 2021			Feb. 28, 2022 (Forecast)
					YOY(%)			YOY(%)		Composition(%)			YOY(%)			YOY(%)
	Capital expenditures		76,434	98.9	94,678	123.9		100.0		377,299	104.5	511,000	135.4
		Domestic convenience store operations		15,189	63.7		22,815	150.2		24.1			129,028	123.8		136,300	105.6
		Overseas convenience store operations	27,159	130.6	34,158	125.8		36.1		145,170	107.8	214,500	147.8
		Superstore operations	7,602	55.9	16,480	216.8		17.4		48,411	102.3	63,300	130.8
		Department store operations	11,222	630.0	1,946	17.3		2.1		16,332	145.4	12,200	74.7
		Financial services	8,596	91.5	10,184	118.5		10.8		39,328	108.9	43,400	110.4
		Specialty store operations	2,600	102.3	1,671	64.3		1.8		9,038	86.7	5,500	60.9
		Others	678	157.5	578	85.2		0.6		1,760	62.9	5,000	283.9
		Eliminations / Corporate		3,384	69.2		6,845	202.3		7.2			(11,771)	-		30,800	-
	Depreciation and amortization	58,698	105.5	61,802	105.3		100.0		235,504	104.0	290,000	123.1
		Domestic convenience store operations		19,592	105.2		20,281	103.5		32.8			79,856	104.4		86,200	107.9
		Overseas convenience store operations	20,119	104.6	21,796	108.3		35.3		81,299	105.3	118,300	145.5
		Superstore operations	6,806	108.0	6,875	101.0		11.1		26,929	103.3	27,300	101.4
		Department store operations	2,260	98.9	2,229	98.6		3.6		9,091	100.1	9,300	102.3
		Financial services	7,616	104.9	7,538	99.0		12.2		28,766	99.1	31,400	109.2
		Specialty store operations	1,009	109.9	1,049	103.9		1.7		4,254	109.7	4,100	96.4
		Others	636	107.6	497	78.3		0.8		2,269	92.7	2,300	101.4
		Eliminations / Corporate		656	158.9		1,534	233.9		2.5			3,038	135.7		11,100	365.3
	Amortization of goodwill		6,061	103.0	6,353	104.8		100.0		25,040	106.2	68,300	272.8
		Domestic convenience store operations		-	-			-	-	-			-	-
		Overseas convenience store operations	5,081	103.7	5,373	105.8		84.6		21,119	107.5
		Superstore operations	774	100.0	774	100.0		12.2		3,098	100.0
		Department store operations	-	-			-	-	-		-	-
		Financial services	89	100.0	89	100.0		1.4		359	100.0
		Specialty store operations	115	100.0	115	100.0		1.8		462	100.0
		Others	-	-			-	-	-		-	-
		Corporate		-	-			-	-	-			-	-
		Impairment loss		4,077	202.4		2,252	55.2		100.0			35,484	100.0
		Domestic convenience store operations	1,187	145.6	809	68.2		35.9		8,859	75.1
		Overseas convenience store operations	102	89.1	124	121.8		5.5		5,911	165.8
		Superstore operations	726	88.2	393	54.1		17.5		11,589	114.7
		Department store operations	111	64.4	626	562.4		27.8		3,332	104.8
		Financial services	0	-			-	-	-		1	0.0
		Specialty store operations	456	532.9	293	64.3		13.0		4,252	200.3
		Others	1,491	-	4		-	0.2		1,529	-
		Eliminations / Corporate	-	-			-	-	-		7	49.7

Notes: 1. Capital expenditures include long-term leasehold deposits, advances for store construction, and investments related to store openings for each fiscal year and beyond, and do not include the increase of future amortization of assets under the Accounting Standard for Asset Retirement Obligations. Figures for actual results do not include goodwill and others related to the acquisition of stores, etc

"Eliminations / Corporate" in capital expenditures mainly reflects inter-segment transactions of non-current assets within the Group and capital expenditures relating to the Group strategy.

1. Depreciation and amortization include 2,337 million yen, 412 million yen and 2,596 million yen recorded as "Loss related to norvel coronavirus (COVID-19)" in the consolidated income statements for the three months ended May 31, 2020 and 2021, and the fiscal year ended February 28, 2021.
   "Eliminations / Corporate" in depreciation and amortization mainly reflects the Company's depreciation and amortization relating to the Group strategy
2. Amortization of goodwill include only the amount recorded on SG&A expenses.
3. Impairment losses respectively include 398 million yen, 177 million yen, and 3,879 million yen recorded as "Loss on digital and settlement services" and "Restructuring expenses" in the consolidated income statements for the three months ended May 31, 2020 and 2021, and the fiscal year ended February 28, 2021.

- 3 -

Consolidated Results-Ⅲ

Geographic area segment information							(Millions of yen)
			Three Months Ended				Three Months Ended		Fiscal Year Ended
			May 31, 2020				May 31, 2021			Feb. 28, 2021
			YOY(%)			YOY(%)	Composition(%)		YOY(%)
Revenues from operations	1,391,828	87.2		1,555,371	111.8	100.0	5,766,718	86.8
	Japan		768,842	82.2		852,345	110.9	54.8	3,435,146	91.7
	North America	599,483	95.0		674,831	112.6	43.4	2,232,234	80.2
	Others		23,956	78.9		28,719	119.9	1.8	100,707	85.3
	Eliminations		(454)	-		(524)	-	-	(1,371)	-
Operating income	71,390	79.0		77,512	108.6	100.0	366,329	86.3
	Japan		59,872	76.9		64,791	108.2	83.4	266,096	82.8
	North America	11,607	90.7		12,881	111.0	16.6	99,582	97.8
	Others		80	-		10	13.5	0.0	805	67.2
	Eliminations		(170)	-		(170)	-	-	(154)	-

Note: "Others" consists of the business results in the P.R.C., etc.

Ⅳ．Interest-Bearing Debt & Ratings

Interest-bearing debt							(Millions of yen)
			Three Months Ended		Three Months Ended		Fiscal Year Ended
			May 31, 2020		May 31, 2021		Feb. 28, 2021
				YOY(%)/change			YOY(%)/change			YOY(%)/change
	Short-term loans		349,165	248.8		622,631	178.3		619,953	478.9
	Current portion of long-term loans	98,986	99.0		165,371	167.1	146,747	165.9
	Current portion of bonds	60,000	85.7		66,917	111.5	66,917	83.6
	Commercial paper		32,608	-		-	-		-	-
Subtotal		540,759	174.2		854,921	158.1		833,618	279.8
	Long-term loans	394,593	88.2		359,286	91.1	362,592	89.9
	Bonds		281,916	82.5		1,766,932	626.8		565,000	200.4
Subtotal		676,509	85.7		2,126,218	314.3		927,592	135.4
Total		1,217,269	110.7		2,981,139	244.9		1,761,210	179.2
Ratio to total assets (%)		19.3	+0.8		35.5	+16.2		25.4	+9.0
Ratio to owners' equity (%)		47.5	+3.4		107.1	+59.6		66.0	+28.2
Interest-bearing debt by business segment
	Domestic convenience store		-	-		-	-		-	-
	operations
	Overseas convenience store	304,609	116.8		1,503,554	493.6	281,974	128.7
	operations
	Superstore operations	-	-		-	-	-	-
	Department store operations	160,999	98.4		146,193	90.8	146,193	90.8
	Specialty store operations	40,948	87.5		40,795	99.6	40,998	231.1
	Others	-	-		-	-	-	-
	Corporate		386,916	139.7		1,008,917	260.8		1,008,917	425.9
Subtotal		893,473	119.4		2,699,460	302.1		1,478,083	232.9
Financial services		323,795	92.1		281,679	87.0		283,127	81.3
Total		1,217,269	110.7		2,981,139	244.9		1,761,210	179.2

- 4 -

Consolidated Results-Ⅲ・Ⅳ