Seven & i : Brief Summary for the Fiscal Year ended February 28, 2017

Contents‌‌

Brief Summary of FY2017

Consolidated Results

Ⅰ．Financial Results P1

Ⅱ．Major Factors for the Change P2

Ⅲ．Segment Information P3

Ⅳ．Interest-Bearing Debt P4

Ⅴ．Financial Results (New Segments) P6

Ⅵ．Segment Information (New Segments) P7

Ⅶ．Interest-Bearing Debt (New Segments) P7

Results and Business Performance of Major Companies

Ⅰ．Convenience Store OperationsP8

Ⅱ．Superstore OperationsP10

Ⅲ．Department Store Operations P12

Ⅳ．Food Services P13

Ⅴ．Financial Services P13

Ⅵ．Group StrategyP14

Ⅶ．Capital Expenditures, Depreciation and Amortization of P15 Major Group Companies

Store Information

Ⅰ．Store Openings and Closures of Major CompaniesP16Ⅱ．Store Information on Convenience Store Operations P17Ⅲ．Store Information on Supestore Operations P18

Ⅳ．Store Information on Department Store Operations P19

Ⅴ．Number of Stores by Type P20

Ⅵ．Sales Floor Space P20

Ⅶ．Employee and other information P21

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

■Consolidated Results

※Business segments have been changed from the fiscal year ending February 28, 2018. Please refer to pages 6-7 for dataon the new business segments.

Fiscal Year Ending Feb. 28, 2018 (Forecast)
YOY(%)
11,150,000	105.0
6,100,000	104.5
2,902,000	113.8
1,999,000	98.7
806,400	94.6
83,000	100.5
210,000	104.0
108,000	77.6
63,000	109.7
(71,400)	-
386,500	106.0
323,800	103.4
27,900	121.8
6,700	182.4
600	116.4
51,500	102.7
(6,700)	-
4,900	105.8
(22,200)	-
385,000	105.7
177,000	182.9
yen	%
200.18	182.9

Ⅰ．Financial Results

Fiscal Year Ended Feb. 28, 2015		Fiscal Year Ended Feb. 29, 2016		Fiscal Year Ended Feb. 28, 2017
YOY(%)	YOY(%)	YOY(%)
Group's total sales*110,235,664			106.6	10,703,064	104.6	10,621,530	99.2
Revenues from operations 6,038,948			107.2	6,045,704	100.1	5,835,689	96.5
Convenience store operations	2,727,780	107.8	2,675,890	98.1	2,550,640	95.3
Superstore operations	2,012,176	100.1	2,060,516	102.4	2,025,534	98.3
Department store operations	875,027	100.4	884,716	101.1	852,174	96.3
Food services	80,980	103.1	83,839	103.5	82,562	98.5
Financial services	178,221	112.2	192,487	108.0	201,932	104.9
Mail order services	185,802	-	158,732	85.4	139,226	87.7
Others	53,897	106.7	61,582	114.3	57,424	93.2
Eliminations / corporate	(74,937)	-	(72,061)	-	(73,805)	-
Operating income (loss)		343,331	101.1	352,320	102.6	364,573	103.5
Convenience store operations	276,745	107.5	304,110	109.9	313,195	103.0
Superstore operations	19,340	65.2	7,234	37.4	22,903	316.6
Department store operations	7,059	107.1	3,832	54.3	3,672	95.8
Food services	44	7.3	917	-	515	56.2
Financial services	47,182	105.1	49,697	105.3	50,130	100.9
Mail order services	(7,521)	-	(8,451)	-	(15,097)	-
Others	3,669	169.4	5,559	151.5	4,632	83.3
Eliminations / corporate	(3,188)	-	(10,578)	-	(15,379)	-
Ordinary income		341,484	100.7	350,165	102.5	364,405	104.1
Special gains		4,835	145.1	6,103	126.2	4,411	72.3
Special losses		36,124	115.8	52,493	145.3	151,248	288.1
Income before income taxes		310,195	99.7	303,775	97.9	217,569	71.6
Net income attributable to owners of parent		172,979	98.5	160,930	93.0	96,750	60.1
yen Net income per share 195.66			%	yen	%	yen	%
			98.4	182.02	93.0	109.42	60.1
Average*2		884,064,278		884,132,485		884,214,252
End of period*2		884,066,302		884,151,095		884,402,184

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

(Millions of yen)

*2. Excluding treasury stock.
Exchange rates
Fiscal Year Ended Feb. 28, 2015		Fiscal Year Ended Feb. 29, 2016		Fiscal Year Ended Feb. 28, 2017
Income statements U.S.$1= 1yuan=		105.79 17.18		121.10 19.23		108.78 16.42
Balance sheets U.S.$1= 1yuan=		120.55 19.35		120.61 18.36		116.49 16.76
Operating income before amortization of goodwil				l
Fiscal Year Ended Feb. 28, 2015		Fiscal Year Ended Feb. 29, 2016		Fiscal Year Ended Feb. 28, 2017
YOY(%)	YOY(%)	YOY(%)
Total		362,226	101.1	373,552	103.1	380,731	101.9
Convenience store operations Superstore operationsDepartment store operations Food services Financial services Mail order services Others	285,454 22,480 12,342 44 48,742 (7,512) 3,862	107.4 68.6 103.9 7.3 104.5 - 172.7	314,788 10,374 9,120 917 51,392 (8,446) 5,984	110.3 46.1 73.9 - 105.4 - 155.0	322,445 26,002 5,848 515 51,437 (15,097) 4,959	102.4 250.6 64.1 56.2 100.1 - 82.9
Eliminations / corporate	(3,188)	-	(10,578)	-	(15,379)	-

(yen)

Fiscal Year Ending Feb. 28, 2018 (Forecast)

110.00 16.00

- -

(Millions of yen)

Fiscal Year Ending Feb. 28, 2018 (Forecast)
YOY(%)
403,400	106.0

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

Ⅱ．Major Factors for the Change

*For results of major operating companies, please refer to page 8 to 15.

(Millions of yen)

Fiscal Year Ended Feb. 28, 2017		Major Factors for the Change
Change
Group's total sales*1		10,621,530	(81,533)	Downward pressure from the effect of a stronger yen [335.5 billion yen] Decreased despite an increase in total store sales at Seven-Eleven Japan.
Revenues from operations		5,835,689	(210,014)	Downward pressure from the effect of a stronger yen [210.9 billion yen] Decreased in Superstore operation and Department store operations
Operating income (loss)		364,573	+12,252	Higher income in convenience store operations, superstore operations and financial services despite a downward pressure from the effect of a stronger yen [8.7 billion yen].
Convenience stores	313,195	+9,084	Seven-Eleven Japan 7-Eleven, Inc. Growth led by standard products such as sandwiches, fryer foods, etc. Existing store sales and merchandise gross profit margin both increased. Decreased due to negative impact of weak yen, despite higher merchandise sales led by fresh food and beverages and gasoline sales.
Superstores	22,903	+15,668	Ito-Yokado York-Benimaru (Including Life Foods*2) Profit increased due to revision for appropriate sales promotion measures and improvement of gross profit margin, despite a decline in existing store sales. Higher income due to growth in existing store sales and improvement of gross profit margin.
Department stores	3,672	(159)	Sogo & Seibu Lower income at LOFT Lower income due to decline in existing store sales and deterioration of gross profit margin.
Food services	515	(401)	Lower income at Seven & i Food Systems
Financial services	50,130	+433	Higher income at Seven Bank Higher income in non-bank operations
Mail order services	(15,097)	(6,645)	Lower income at Nissen Holdings
Others	4,632	(926)
Eliminations / corporate*3	(15,379)	(4,801)	Lower income mainly due to increase in depreciation and amortization related to the Group's portal website.
Ordinary income		364,405	+14,240	Factors increasing operating income.
Income attributable to owners of parent		96,750	(64,179)	Lower income due to an increase in special losses.

*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.

Ⅲ．Segment Information

Fiscal Year Ended Feb. 28, 2015		Fiscal Year Ended Feb. 29, 2016
YOY(%)	YOY(%)
Assets (end of period)		5,234,705	108.8	5,441,691	104.0
Convenience store operations	1,927,221	118.2	1,982,681	102.9
Superstore operations	1,040,068	104.0	1,047,824	100.7
Department store operations	495,961	98.8	485,700	97.9
Food services	26,307	117.5	25,200	95.8
Financial services	1,871,705	104.1	1,929,839	103.1
Mail order services	105,717	102.2	81,941	77.5
Others	207,073	122.1	186,078	89.9
Eliminations / corporate	(439,351)	-	(297,574)	-
Capital expenditures		341,075	101.3	399,204	117.0
[374,928]	[109.9]
Convenience store operations*	193,235	97.7	238,372	123.4
Superstore operations	65,490	98.2	81,354	124.2
[57,078]	[87.2]
Department store operations	15,380	98.6	17,515	113.9
Food services	3,506	154.0	1,853	52.9
Financial services	39,110	99.5	33,422	85.5
Mail order services	3,815	-	4,766	124.9
Others	5,381	71.1	3,678	68.3
Corporate	15,152	199.7	18,240	120.4
Depreciation and amortization		172,237	116.9	195,511	113.5
Convenience store operations	103,247	113.1	116,514	112.9
Superstore operations	20,696	112.0	23,800	115.0
Department store operations	13,399	99.5	13,569	101.3
Food services	709	162.0	828	116.7
Financial services	25,233	124.9	29,071	115.2
Mail order services	3,842	-	3,730	97.1
Others	2,689	106.5	2,958	110.0
Corporate	2,419	235.0	5,036	208.2
Amortization of goodwill		18,894	101.5	21,232	112.4
Convenience store operations	8,709	103.8	10,677	122.6
Superstore operations	3,140	100.3	3,140	100.0
Department store operations	5,282	99.9	5,288	100.1
Food services	-	-	-	-
Financial services	1,560	89.3	1,695	108.7
Mail order services	9	-	4	50.5
Others	192	277.3	425	221.1
Impairment loss		15,220	100.8	28,800	189.2
Convenience store operations	5,739	132.8	9,369	163.3
Superstore operations	7,111	104.4	12,273	172.6
Department store operations	1,763	56.3	3,972	225.3
Food services	471	77.8	636	134.9
Financial services	-	-	28	-
Mail order services	90	-	2,358	-
Others	44	23.1	161	361.4

Fiscal Year Ending Feb. 28, 2018 (Forecast)
YOY(%)
807,000	210.1
693,200*	253.9
42,000	83.0
15,900	104.6
2,500	120.1
37,700	144.6
3,800	203.8
1,900	39.3
10,000	96.4
222,100	107.0
138,000	112.1
26,000	102.8
12,400	95.5
1,000	115.0
29,000	98.6
1,800	45.5
3,100	103.9
10,800	121.9
16,900	104.6

Business segment information (Millions of yen)

Fiscal Year Ended Feb. 28, 2017

YOY(%)	Composition(%
5,508,888	101.2	-
2,105,931	106.2	36.7
1,004,561	95.9	17.5
431,589	88.9	7.5
26,399	104.8	0.5
1,925,815	99.8	33.6
56,610	69.1	1.0
179,884	96.7	3.1
(221,904)	-	-
384,119	96.2	100.0
[377,090]	[100.6]
273,072	114.6	71.1
50,630	62.2	13.2
[43,601]	[53.6]
15,195	86.8	4.0
2,081	112.3	0.5
26,070	78.0	6.8
1,864	39.1	0.5
4,830	131.3	1.3
10,373	56.9	2.7
207,483	106.1	100.0
123,131	105.7	59.3
25,280	106.2	12.2
12,982	95.7	6.3
869	105.0	0.4
29,416	101.2	14.2
3,956	106.0	1.9
2,983	100.8	1.4
8,862	176.0	4.3
16,158	76.1	100.0
9,249	86.6	57.2
3,098	98.7	19.2
2,176	41.1	13.5
-	-	-
1,306	77.1	8.1
-	-	-
326	76.7	2.0
59,719	207.4	100.0
10,374	110.7	17.4
24,040	195.9	40.3
18,681	470.3	31.3
1,102	173.2	1.8
-	-	-
3,854	163.4	6.5
1,666	-	2.8

)

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 securitization 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 6,108 million yen and 10,611 million yen recorded as restructuring expenses in the consolidated income statements for the fiscal year ended Feb. 29, 2016, and Feb. 28, 2017.

* The forecast for the fiscal year ending February 28, 2018 at includes capital expenditure associated with the acquisition of part of the retail business of Sunoco LP.