FY2021
Financial Results Presentation
April 8, 2021
Seven & i Holdings Co., Ltd.
Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. | 1 |
Consolidated Financial Results Highlights
Sales and profit both declined YOY but all profit stages reached their plans (Billions of yen, %)
Q3 cumulative | Q4 | FY2021 | ||
YOY / | YOY / | YOY / | vs. Plan / | |
Variance | Variance | Variance | Variance | |
Group's total sales* | 91.7 | 93.3 | 92.1 | 100.3 |
8,266.2 | 2,778.6 | 11,044.8 | ||
(753.1) | (199.6) | (952.7) | +30.8 | |
Revenues from | 86.0 | 89.3 | 86.8 | 100.9 |
4,276.8 | 1,489.9 | 5,766.7 | ||
operations | ||||
(698.7) | (178.9) | (877.6) | +48.7 | |
89.5 | 76.7 | 86.3 | 106.2 | |
Operating income | 285.6 | 80.6 | 366.3 | |
(33.4) | (24.4) | (57.9) | +21.3 | |
Net income attributable to | 77.1 | 100.1 | 82.2 | 124.1 |
130.9 | 48.2 | 179.2 | ||
owners of parent | ||||
(38.9) | +0.05 | (38.9) | +34.7 | |
E B I T D A | 95.0 | 86.9 | 93.0 | - |
(Operating income + Depreciation and | 479.8 | 147.0 | 626.8 | - |
amortization + Amortization of goodwill) | (25.1) | (22.2) | (47.4) |
*Group's total sales include the sales of Seven-Eleven Japan, Seven-Eleven Okinawa and 7-Eleven, Inc. franchisees.
FY2021 exchange rate: 1USD = 106.76 JPY, 1CNY = 15.48 JPY | 2 |
Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. | |
Consolidated B/S Summary
(Billions of yen) | ||||||||||
Assets | Feb 29 | Feb 28 | Variance | Liabilities and net assets | Feb 29 | Feb 28 | Variance | |||
(Main items only) | 2020 | 2021 | (Main items only) | 2020 | 2021 | |||||
Total liabilities | 3,239.6 | 4,115.4 | +875.8 | |||||||
Current assets | 2,471.9 | 3,350.2 | +878.3 | |||||||
Current liabilities | 2,157.1 | 2,782.4 | +625.2 | |||||||
Cash and bank deposits | 1,357.7 | 2,189.1 | +831.4 | |||||||
Cash and due from banks at | 846.2 | 925.4 | +79.1 | Notes and accounts payable-trade | 410.7 | 385.2 | (25.5) | |||
Seven Bank | ||||||||||
Short-term loans | 129.4 | 619.9 | +490.4 | |||||||
Notes and accounts receivable-trade | 351.9 | 318.1 | (33.7) | |||||||
Current portion of bonds | 168.4 | 213.6 | +45.2 | |||||||
ATM-related temporary payments | 153.0 | 216.4 | +63.4 | |||||||
Current portion of long-term loans | ||||||||||
Deposits received | 228.4 | 236.4 | +7.9 | |||||||
Non-current assets | 3,522.5 | 3,594.0 | +71.4 | |||||||
ATM-related temporary advances | 74.2 | 130.1 | +55.9 | |||||||
Property and equipment | 2,183.3 | 2,206.0 | +22.6 | |||||||
Deposit received in banking | 655.0 | 741.4 | +86.3 | |||||||
Buildings and structures, net | 992.3 | 994.0 | +1.7 | |||||||
business | ||||||||||
Land | 746.9 | 746.2 | (0.62) | Non-current liabilities | 1,082.4 | 1,333.0 | +250.5 | |||
Intangible assets | 608.8 | 645.8 | +36.9 | Bonds | 281.9 | 565.0 | +283.0 | |||
Investments and other assets | 730.2 | 742.1 | +11.8 | Long-term loans | 403.1 | 362.5 | (40.5) | |||
Deferred assets | 2.4 | 2.5 | +0.16 | Total net assets | 2,757.2 | 2,831.3 | +74.1 | |||
Total assets | 5,996.8 | 6,946.8 | +949.9 | Total liabilities and net assets | 5,996.8 | 6,946.8 | +949.9 | |||
3 | ||||||||||
Copyright (C) 2021 | Seven & i Holdings Co., Ltd. All Rights Reserved. | |||||||||
Consolidated Statements of Cash Flows
800 | CF from operating activities (left) | CF from investing activities (left) | 400 | |||||
CF from financing activities (left) | Free cash flow (right) | |||||||
(Billions of yen) | (Billions of yen) | |||||||
400 | 200 | |||||||
0 | 0 |
(400) | (200) | |||
(800) | (400) | |||
(Billions of yen) | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | vs. FY2020 | |||||||
CF from operating | 512.5 | 498.3 | 577.8 | 576.6 | 539.9 | (36.6) | |||||||
activities | |||||||||||||
CF from investing | (371.6) | (240.4) | (557.4) | (318.0) | (394.1) | (76.0) | |||||||
activities | |||||||||||||
Free cash flow | 140.9 | 257.8 | 20.3 | 258.6 | 145.8 | (112.7) | |||||||
CF from financing | (78.1) | (168.5) | (5.3) | (213.2) | 690.5 | +903.7 | |||||||
activities | |||||||||||||
Cash and cash | 1,209.4 | 1,300.3 | 1,310.7 | 1,354.8 | 2,183.8 | +828.9 | |||||||
equivalents | |||||||||||||
at end of period | 4 | ||||||||||||
Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. | |||||||||||||
Special Losses
Special losses increased significantly due to COVID-19
(Billions of yen)
FY2020 | FY2021 | |
Special losses | 79.9 | 109.0 |
Loss on disposals of property | 15.5 | 12.1 |
and equipment | ||
Impairment loss | 27.9 | 31.6 |
Restructuring expenses | 7.7 | 10.2 |
Loss on digital and settlement | 13.4 | - |
services | ||
Loss related to novel | - | 40.5 |
coronavirus (COVID-19) | ||
Variance | Major factors for the change | ||
+29.0 | Losses mainly due to COVID-19 | ||
(3.3) | Delay of remodels due to COVID-19, etc. | ||
+3.6 | IY[+3.2], SEI[+2.3], FOC [+1.4] *, 7FS [+1.1] | ||
SEJ [(2.9)], YB[(1.1)], YO[(1.0)] | |||
+2.4 | IY [+4.1]:Close stores, Personnel initiative, etc. | ||
SS[(1.6)]:Career change support measure in FY2020, etc. | |||
(13.4) | Abolishment of the 7pay service in FY2020 | ||
SEJ [7.5] | Franchisee support money [5.1] | ||
Cost of infection prevention and control [1.8], etc. | |||
SEI [6.1] | Cost of infection prevention and control [4.0], | ||
Payment of employee allowances [2.1], etc. | |||
+40.5 | IY [7.8] | Transfer of fixed costs [7.1], | |
Payment of employee allowances [0.47], etc. | |||
SS [11.2] | Transfer of fixed costs [10.8], | ||
Cost of infection prevention and control [0.27], etc. | |||
Others YB[0.99], 7FS[1.7], THE LOFT [1.7], AH [0.53] | |||
*FOC:Forecast Co., Ltd. Impairment losses following business restructuring associated with Tokyo Metropolitan Area food strategy
Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. | 5 |
YOY Change by Business Segment
Revenues from operations | Operating income | ||
(Billions of yen) | (Billions of yen) | ||
FY2020 | FY2020 | ||
Domestic | Domestic | ||
CVS | CVS | ||
Overseas | Overseas | ||
CVS | CVS | ||
Superstore | Superstore | ||
Department | Department | ||
store | store | ||
Financial | Financial | ||
services | services | ||
Specialty | Specialty | ||
store | store | ||
Others | Others | ||
Eliminations | Eliminations | ||
/corporate | /corporate | ||
FY2021 | FY2021 | ||
Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. | 6 |
FY2021 Forecast of Revenues from Operations
and Operating Income by Business Segment (vs. previous year)
(Billions of yen, %) | ||||||||||||
Revenues from operations | Operating income | |||||||||||
YOY | Variance | YOY | Variance | |||||||||
Consolidated | 5,766.7 | 86.8 | (877.6) | 366.3 | 86.3 | (57.9) | ||||||
Domestic CVS operations | ||||||||||||
920.8 | 94.8 | (50.4) | 234.2 | 91.3 | (22.3) | |||||||
Overseas CVS operations | ||||||||||||
2,191.3 | 80.0 | (548.4) | 98.0 | 96.2 | (3.9) | |||||||
Superstore operations | 1,810.8 | 97.9 | (38.2) | 29.6 | 139.3 | +8.3 | ||||||
Department store Operations | ||||||||||||
425.1 | 73.6 | (152.4) | (6.2) | - | (7.0) | |||||||
Financial services | 198.9 | 91.5 | (18.4) | 48.0 | 89.7 | (5.5) | ||||||
Specialty store operations | ||||||||||||
263.8 | 77.7 | (75.8) | (13.5) | - | (18.2) | |||||||
Others | 22.0 | 87.3 | (3.1) | 1.9 | 125.1 | +0.39 | ||||||
Eliminations / corporate | ||||||||||||
(66.2) | - | +9.4 | (25.9) | - | (9.6) | |||||||
Exchange rate: 1USD = 106.76JPY, 1CNY = 15.48JPY | 7 |
Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. | |
FY2021 Forecast of Revenues from Operations and Operating Income by Business Segment (vs. plan)
(Billions of yen, %) | |||||||||||||
Revenues from operations | Operating income | ||||||||||||
vs. Plan | Variance | vs. Plan | Variance | ||||||||||
Consolidated | 5,766.7 | 100.9 | +48.7 | 366.3 | 106.2 | +21.3 | |||||||
Domestic CVS operations | |||||||||||||
920.8 | 100.1 | +0.83 | 234.2 | 101.7 | +3.9 | ||||||||
Overseas CVS operations | |||||||||||||
2,191.3 | 101.4 | +29.3 | 98.0 | 102.4 | +2.2 | ||||||||
Superstore operations | 1,810.8 | 100.9 | +15.8 | 29.6 | 118.3 | +4.5 | |||||||
Department store Operations | |||||||||||||
425.1 | 99.8 | (0.84) | (6.2) | - | +2.1 | ||||||||
Financial services | 198.9 | 98.5 | (3.0) | 48.0 | 103.8 | +1.7 | |||||||
Specialty store operations | |||||||||||||
263.8 | 101.5 | +3.8 | (13.5) | - | +3.4 | ||||||||
Others | 22.0 | 115.8 | +3.0 | 1.9 | 114.4 | +0.24 | |||||||
Eliminations / corporate | |||||||||||||
(66.2) | - | (0.27) | (25.9) | - | +2.8 | ||||||||
Exchange rate: 1USD = 106.76JPY, 1CNY = 15.48JPY | 8 |
Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. | |
Operating Income of Major Operating Companies
(Billions of yen, %) | ||||||||||||||
Q3 cumulative | Q4 | FY2021 | ||||||||||||
YOY / | vs. Plan / | |||||||||||||
YOY / Variance | YOY / Variance | Variance | Variance | |||||||||||
Seven-Eleven | 182.0 | 91.7 | 51.2 | 92.4 | 233.3 | 91.9 | 101.4 | |||||||
Japan | (16.4) | (4.2) | (20.6) | +3.3 | ||||||||||
7-Eleven, Inc. | 95.5 | 104.8 | 23.6 | 77.5 | 119.2 | 98.0 | 101.8 | |||||||
[Billions of yen] | +4.4 | (6.8) | (2.4) | +2.1 | ||||||||||
7-Eleven, Inc. | 888 | 106.4 | 228 | 81.3 | 1,116 | 100.1 | 102.0 | |||||||
[Millions of dollar] | +53 | (52) | +0.9 | +22 | ||||||||||
Ito-Yokado | 1.8 | - | 5.8 | 79.3 | 7.7 | 119.3 | 155.6 | |||||||
+2.7 | (1.5) | +1.2 | +2.7 | |||||||||||
York-Benimaru | 16.7 | 150.8 | 3.7 | 65.0 | 20.5 | 121.4 | 103.0 | |||||||
〈Incl. Life Foods*〉 | +5.6 | (2.0) | +3.6 | +0.6 | ||||||||||
Sogo & Seibu | (7.0) | - | 0.38 | 13.7 | (6.6) | - | - | |||||||
(4.4) | (2.4) | (6.8) | +2.1 | |||||||||||
* Life Foods is a wholly owned | subsidiary which produces and sells delicatessen in York-Benimaru stores. | |||||||||||||
The combined operating income for York-Benimaru and Life Foods represents internal management reporting figures. | 9 | |||||||||||||
Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. | ||||||||||||||
Existing Store Sales Growth and GPM of Major Operating
Companies
Q3 cumulative | Q4 | FY2021 | ||||
Existing store | GPM / | Existing store | GPM / | Existing store | GPM / | |
sales growth | Variance | sales growth | Variance | sales growth | Variance | |
Seven-Eleven Japan | (2.7) | 32.0 | (1.5) | 31.8 | (2.4) | 32.0 |
(0.1) | (0.2) | (0.1) | ||||
7-Eleven, Inc. | +0.7 | 34.2 | +1.0 | 33.8 | +0.9 | 34.1 |
(0.8) | (0.2) | (0.7) | ||||
Ito-Yokado | (6.8) | 29.7 | (2.6) | 29.7 | (5.3) | 29.6 |
(0.3) | (0.1) | (0.3) | ||||
[incl. tenants] | [incl. tenants] | [incl. tenants] | ||||
York-Benimaru | +5.6 | 26.3 | +3.2 | 27.0 | +5.0 | 26.4 |
+0.4 | ±0.0 | +0.3 | ||||
Sogo & Seibu | (27.4) | 22.9 | (15.3) | 21.9 | (24.2) | 22.6 |
(1.3) | (1.0) | (1.3) | ||||
Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. | 10 |
Domestic CVS Operations: Seven-Eleven Japan (1)
YOY Change of operating income (Billions of yen)
(32.1)
+14.5 | ||
Sales | (3.0) | SG&A |
253.9 | GPM | expenses |
233.3
¥(20.6) B
FY2020 | FY2021 |
Cost structure reforms | |||
(Trends in SG&A expenses YOY) | |||
120 | Advertising expenses | ||
(%) | Salaries & wages | ||
Land & building rent | |||
Depreciation & amortization | |||
SG&A expenses total | |||
109.5
100
97.5
Royalties revision impact | approx. |
¥(9.7) B | |
COVID-19 Impact | approx. |
¥(17.0) B | |
80 | ||||||
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |
(FY) | ||||||
Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. | 11 |
Domestic CVS Operations: Seven-Eleven Japan (2)
Existing store sales & GPM
Change in GPM (left) | ||||
+0.5 | Existing store sales growth (right) | +5.0 | ||
(%) | +0.3 | (%) | ||
+0.2
+0.1 +0.1 +1.0 +1.1
(0.1) | (0.1) | (0.1) | (0.2) |
±0.0 +0.3 | ±0.0 | ||
(1.6) | (1.4) | (1.5) | |
(2.0) |
(0.5) | (4.6) | (5.0) | |||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
FY2020 | FY2021 |
Sales by store location
120
(%)
100
80
60
Railway stations, hospitals and highway, etc.
East Tokyo
West Tokyo
40
Jan 6- Mar 2- Apr 27- Jun 22- Aug 17- Oct 12- Dec 7- Feb 1- (Week)
Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. | 12 |
Domestic CVS Operations: Seven-Eleven Japan (3)
Average spending per customer | Sales by merchandise category |
130 | Sales |
Foot trafic | |
(%) | Average spending per customer |
115 |
100
85
150
(%)
125
100
75
Seven Premium delicatessen
Frozen foods
Wine & Liquor
Counter fried products, etc.
70 | 50 | ||||
Jan 6- Mar 2- Apr 27- Jun 22- Aug 17- Oct 12- Dec 7- | Feb 1- | Jan 6- Mar 2- Apr 27- Jun 22- Aug 17- Oct 12- Dec 7- Feb 1- | |||
(Week) | (Week) | 13 | |||
Copyright (C) 2021 | Seven & i Holdings Co., Ltd. All Rights Reserved. | ||||
Overseas CVS Operations: 7-Eleven, Inc. (1)
YOY Change of operating income (Billions of yen)
(24.4)
+58.2 | SG&A | ||||||||||||||
(11.2) | |||||||||||||||
10.2 | |||||||||||||||
(11.8) | |||||||||||||||
expenses, | |||||||||||||||
Fuel | etc. | ||||||||||||||
MDSE | |||||||||||||||
MDSE | |||||||||||||||
COVID | (2.5) | ||||||||||||||
CPG | |||||||||||||||
Sales | |||||||||||||||
GPM | (20.9) | support of | |||||||||||||
Foreign | |||||||||||||||
121.6 | FZ owners | ||||||||||||||
exchange | 119.2 | ||||||||||||||
impact |
Fuel
Volume | ¥(2.4)B |
FY2019 | FY2020 | ||||
Income: | approx. | ||||
COVID-19 Impact | ¥(9.0) B | ||||
approx. | Secured earnings growth in dollar basis | ||||
Expenses: | |||||
+¥4.5 B | |||||
14 | |||||
Copyright (C) 2021 | Seven & i Holdings Co., Ltd. All Rights Reserved. | ||||
Overseas CVS Operations: 7-Eleven, Inc. (2)
Existing store sales & GPM | Changes in consumption behavior | |||
140 | Sales Foot traffic Average spending per customer | |||
(%) | 125.5 | |||
(%) | Change in GPM (left) | (%) | 120 | |
+1.5 | Existing store sales growth (right) | +4.5 | 100 | |
+3.4 +3.1 | 80 | ||||||||
+1.0 | +3.2 | +3.0 | |||||||
+2.2 | |||||||||
+2.0 | 60 | ||||||||
+1.0 | |||||||||
+0.5 | +1.5 | Jan Feb Mar Apr May Jun Jul | Aug Sep Oct Nov Dec Jan Feb | ||||||
+0.7 +0.7 +0.7 | +0.8 +0.7 | 2020 | 2021 | ||||||
+0.3 | |||||||||
Key category sales for Feb (YOY change in amount) | |||||||||
±0.0 | ±0.0 | ||||||||
+0.1 | (0.2) | Frozen | 120.1% | Growth in sales of pizzas, | |||||
(0.5) | (0.5) | (1.6) | (1.5) | foods | single dishes, etc. | ||||
(0.7) | Alcoholic | 113.7% | Growth in sales through | ||||||
(1.0) | (3.0) | beverages | bulk purchases in boxes | ||||||
(1.3) | Non-Foods | 134.1% | Growth in sales of daily | ||||||
(1.5) | (4.5) | necessaries | |||||||
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jan Feb | |||||||||
FY2019 | FY2020 | 15 | |||||||
Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. | |||||||||
Overseas CVS Operations: 7-Eleven, Inc. (3)
Crude oil price (WTI)
70
(USD)
60
50
40
30
20
10
0
Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan
2019 | 2020 | 2021 |
Historic decline in crude oil prices led to significant increases in CPG trend
Fuel sales volume & Margin (CPG)
(¢ ) | (%) | |||||||
+20.0 | +18.0 | +40.0 | ||||||
YOY change in CPG (left) | ||||||||
Fuel sales volume growth per store (right) | ||||||||
+10.0 | +8.6 | +20.0 | ||||||
+3.5 | +4.9 | +4.7 | ||||||
+1.2 | +1.1 | |||||||
(0.2) | ||||||||
±0.0 | ±0.0 | |||||||
(1.3) | (1.2) | (1.7) | (2.8) | (15.6) | ||||
(10.0) | (9.9) | (14.9) | (20.0) | |||||
(20.0) | (31.7) | (40.0) | ||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
FY2019 | FY2020 | |||||||
YTD Fuel margin : | +$342M (+20.5%) |
Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. | 16 |
Superstore Operations: Ito-Yokado
YOY Change of operating income (Billions of yen) | Structurally reformed stores drove profit | ||||
growth | |||||
SG&A | |||||
expenses | Stores that implemented | ||||
6.5 | 7.7 | +¥1.1 B | |||
+25.5 | |||||
structural reforms | |||||
Sales | Transfer Shokuhinkan | +¥1.2 B | |||||
(26.1) | and THE PRICE to York* | ||||||
GPM | |||||||
+1.8 | |||||||
+¥1.2B | New stores / Closed stores | +¥0.17 B | |||||
FY2020 | FY2021 | ||||||
Income: | approx. | ||||||
COVID-19 | ¥(10.2) B | Other stores | ¥(1.3) B | ||||
Impact | Expenses: | approx. | |||||
+¥11.3 B | *20 stores were transferred from Ito-Yokado on Jun 1, 2020 | ||||||
17 | |||||||
Copyright (C) 2021 | Seven & i Holdings Co., Ltd. All Rights Reserved. | ||||||
Department Store Operations: Sogo & Seibu
YOY change of operating income (Billions of yen) | Factors in YOY Change of operating | ||||||||||||||
Income by store / business segment | |||||||||||||||
FY2020 | ¥(6.8)B | FY2021 | Store-operating business | ¥(8.5) B | |||||||||||
0.17 | |||||||||||||||
(6.6) | |||||||||||||||
Flagship stores in the Tokyo | ¥(8.8) B | ||||||||||||||
Sales | metropolitan area | (5 stores) | |||||||||||||
(33.6) | SG&A | ||||||||||||||
expenses | Regional / suburban stores | ||||||||||||||
+30.4 | ¥(0.77) B | ||||||||||||||
(3 stores) | |||||||||||||||
GPM | Remodeled / Closed stores | ||||||||||||||
(3.6) | +¥1.0 B | ||||||||||||||
(7 stores) | |||||||||||||||
Income: | approx. | ||||||||||||||
COVID-19 | ¥(30.3) B | ||||||||||||||
Corporate sales | +¥0.47 B | ||||||||||||||
Impact | approx. | ||||||||||||||
Expenses: | |||||||||||||||
+¥23.8 B | |||||||||||||||
* Based on operating income after calculating special losses related to COVID-19 | |||||||||||||||
Copyright (C) 2021 | Seven & i Holdings Co., Ltd. All Rights Reserved. | 18 | |||||||||||||
With Livings - Seven & i Group
The information disclosed by the Company may contain forward-looking statements. These statements are based on management's judgment in accordance with materials available to the Company at the time of disclosure, with future projections based on certain assumptions. The forward-looking statements therefore incorporate various risks, estimates, and uncertainties, and as such, actual results and performance may differ from the future outlook included in disclosed information due to various factors, such as changes in business operations and the financial situation going forward.
Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. | 19 |
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Seven & I Holdings Co. Ltd. published this content on 08 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 April 2021 06:01:02 UTC.