Seven & i : Notice Regarding Change in Business Segments

To whom it may concern,

April 6, 2017

Company Name: Seven & i Holdings Co., Ltd. Representative: Ryuichi Isaka

President & Representative Director (Code No. 3382/First Section of the Tokyo Stock Exchange)

Notice Regarding Change in Business Segments

Seven & i Holdings Co., Ltd. ("the Company") announced today that its Board of Directors resolved on April 6, 2017 to change the Company's business segments from the fiscal year ending February 28, 2018. Details are as follows.

1. Reason for the change

   Under the Company's new management framework launched in May 2016, it announced a Medium-Term Management Plan in October 2016, targeting operating income of 450.0 billion yen and ROE of 10% for the fiscal year ending February 29, 2020. To help drive progress on this Medium-Term Management Plan, the Company will strengthen a segment administration scheme based on management approach.

2. Overview of business segment changes

   The Company will change from its previous seven segments: convenience store operations; superstore operations; department store operations; food services; financial services; mail order services; and others to seven new segments: domestic convenience store operations; overseas convenience store operations; superstore operations; department store operations; financial services; specialty store operations; and others.

   Under the new business segment scheme, convenience store operations is positioned as a growth pillar and domestic and overseas operations will be managed separately to reflect their different environmental attributes. Moreover, specialty store operations has been established in place of food services and mail order services, concentrating its specialty stores, which had previously been divided between each business segment. Looking ahead, the Company will strengthen specialty store operations for providing products and services aligned to customers' life stages and situations.

   For further information about the status of company groupings within the new segments, please refer to the Consolidated Financial Report for the Fiscal Year ended February 28, 2017, pages 4 to 5, and for forecasts for the fiscal year ending February 28, 2018, and results from the previous fiscal year, please refer to the Brief Summary of FY2017, page 6 and 7.

   Previous segments

   Convenience Store Operations

   Superstore Operations

   Department Store Operations

   Food Services

   Financial Services

   Mail Order Services

   Others

   New segments	Core operating companies
   Domestic Convenience Store Operations	Seven-Eleven Japan Co., Ltd. Seven-Meal Service Co., Ltd. SEVEN-ELEVEN HAWAII, INC. SEVEN-ELEVEN(CHINA) INVESTMENT CO., LTD.
   Overseas Convenience Store Operations	7-Eleven, Inc. SEJ Asset Management & Investment Company
   Superstore Operations	Ito-Yokado Co., Ltd. York-Benimaru Co., Ltd. York Mart Co., Ltd. SHELL GARDEN CO., LTD. Chengdu Ito-Yokado Co., Ltd.
   Department Store Operations	Sogo & Seibu Co., Ltd. GOTTSUO BIN CO., LTD.
   Financial Services	Seven Bank, Ltd. Seven Financial Service Co., Ltd. Seven Card Service Co., Ltd. Seven CS Card Service Co., Ltd.
   Specialty Store Operations	Seven & i Food Systems Co., Ltd. Akachan Honpo Co., Ltd. THE LOFT CO., LTD. Nissen Holdings Co., Ltd.
   Others	Seven & i Create Link., Ltd. Seven & i Netmedia Co., Ltd. SEVEN & i Publishing Co., Ltd.

   Separation of domestic and overseas operations

   Concentration of specialty stores

   Note: Segment changes

   Segment-related company changes

3. Growth strategies in the new segments

   ⅰ. Domestic Convenience Store Operations	Secure robust, absolute competitive advantage ・Reform three-way coordination of store location × merchandise × services ・Evolve across the entire supply chain in pursuit of quality → Accelerate profit growth
   ⅱ. Overseas Convenience Store Operations	Expand market share and accelerate growth through store openings and by strengthening merchandising capabilities ・Conduct M&As as well, going forward, in line with the local market environment of store-opening areas → Expand store openings ・Establish infrastructure to promote strengthening of fast food ・Increase quality of products and services to suit the market

4. Convenience store operations is a growth pillar, and domestic and overseas operations will be managed separately to reflect their different environmental attributes.

   ⅲ. Superstore Operations	Promote business structure reforms ・Promote real estate redevelopment and store structure reforms centered on superstores ・Strengthen foods around the Tokyo metropolitan area
   ⅳ. Department Store Operations	Promote business structure reforms ・Concentrate resources on key stores

5. Promote selection and concentration and revitalization of the superstore and department store operations

   ⅴ. Financial Services	Develop finance operations closely related to life stages
   ⅵ. Specialty store operations	Strengthen specialty stores that provide distinctive products and services

6. Strengthen growth potential by providing value aligned to customers' life stages and situations

7. Segment reorganization

8. ⅶ. Others

   Real estate segment and intangible operations not included under i. - vi.