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

Brief Summary

for the Third 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． Consolidated Balance Sheets	P6
		Ⅵ． Consolidated Statements of Income	P7
		Ⅶ． Consolidated Statements of Cash Flows	P8
	Financial Results and Business Performance of Major Companies
		Ⅰ． Domestic Convenience Store Operations	P9
		Ⅱ． Overseas Convenience Store Operations	P10
		Ⅲ． Superstore Operations	P11
		Ⅳ． Department and Specialty Store Operations	P13
		Ⅴ． Financial Services	P14
		Ⅵ． Group Strategy	P15
		Ⅶ． Capital Expenditures, Depreciation and Amortization of Major Companies	P16
	Store Information
		Ⅰ． Number of Stores and Store Openings / Closures of Major Companies	P17
		Ⅱ． Store Information in Domestic / Overseas Convenience Store Operations	P18
		Ⅲ． Store Information in Superstore Operations	P19
		Ⅳ． Number of Stores by Type	P20
		Ⅴ． Sales Floor Space	P20

January 13, 2022

Seven & i Holdings Co., Ltd.

■ Consolidated Results

Ⅰ．Financial Results														(Millions of yen)
						Nine Months Ended			Nine Months Ended		Fiscal Year Ended		Fiscal Year Ending
						Nov. 30, 2020			Nov. 30, 2021		Feb. 28, 2021			Feb. 28, 2022 (Forecast)
							YOY(%)				YOY(%)			YOY(%)			YOY(%)
Group's total sales			8,266,218	91.7			10,278,237	124.3	11,044,874		92.1	14,226,000	128.8
Revenues from operations			4,276,808	86.0			6,149,472	143.8	5,766,718		86.8	8,722,000	151.2
			Domestic convenience store operations			648,241		-		661,906	102.1	858,776		95.6	877,000	102.1
			Overseas convenience store operations			1,686,425		-		3,520,763	208.8	2,253,355		80.1	5,160,000	229.0
			Superstore operations			1,330,291		-		1,337,038	100.5	1,810,884		97.9	1,814,000	100.2
			Department and specialty store operations	491,572		-		510,288	103.8	684,660		75.1	714,000	104.3
			Financial services			150,744		-		145,940	96.8	198,927		91.5	194,000	97.5
			Others			12,781		-		14,210	111.2	17,323		87.9	19,000	109.7
			Eliminations / Corporate			(43,247)		-		(40,674)	-	(57,209)		-	(56,000)	-
Operating income (loss)			285,632	89.5			302,927	106.1	366,329		86.3	400,000	109.2
			Domestic convenience store operations			182,287		-		177,274	97.2	233,700		91.6	229,100	98.0
			Overseas convenience store operations			79,878		-		124,785	156.2	98,664		95.5	160,000	162.2
			Superstore operations			19,905		-		10,123	50.9	29,681		139.3	22,400	75.5
			Department and specialty store operations	(14,771)		-		(10,217)	-	(17,444)		-	(8,800)	-
			Financial services			37,486		-		30,289	80.8	48,077		89.7	39,400	82.0
			Others			(469)		-		(8)	-	(570)		-	(500)	-
			Eliminations / Corporate			(18,685)		-		(29,319)	-	(25,779)		-	(41,600)	-
Ordinary income			276,266	87.7			282,145	102.1	357,364		85.5	368,500	103.1
Special gains			5,969	155.9			16,981	284.5	10,433		122.0
Special losses			74,721	152.6			39,671	53.1	109,022		136.3
Income before income taxes			207,514	76.9			259,454	125.0	258,776		74.7
Net income attributable to owners of parent	130,987	77.1			174,877	133.5	179,262		82.2	215,000	119.9
EBITDA			479,844	95.0			558,540	116.4	626,874		93.0	759,600	121.2
ROA (%)									2.8
ROE (%)									6.8
Net income per share (EPS) (yen)
		148.36	77.1			198.04	133.5	203.03		82.2	243.47	119.9
EPS before amortization of goodwill (yen)	169.59	79.9			251.12	148.1	231.39		84.6	323.42	139.8
Number of shares outstanding
Average			882,915,831			883,049,281	882,927,577
End of period			882,962,984			883,117,401	882,966,279
Exchange rates															(yen)
						Nine Months Ended			Nine Months Ended		Fiscal Year Ended		Fiscal Year Ending
						Nov. 30, 2020			Nov. 30, 2021		Feb. 28, 2021			Feb. 28, 2022 (Forecast)
			Income statements	U.S.$1=	107.55				108.58		106.76			109.90
				1yuan=		15.37				16.79		15.48			17.00
			Balance sheets	U.S.$1=	105.80				111.92		103.50			-
				1yuan=	15.54				17.30		15.88			-
EBITDA														(Millions of yen)
						Nine Months Ended			Nine Months Ended		Fiscal Year Ended		Fiscal Year Ending
						Nov. 30, 2020			Nov. 30, 2021		Feb. 28, 2021			Feb. 28, 2022 (Forecast)
							YOY(%)				YOY(%)			YOY(%)			YOY(%)
Total			479,844	95.0			558,540	116.4	626,874		93.0	759,600	121.2
			Domestic convenience store operations
					240,544		-		237,050	98.5	312,131		94.5
			Overseas convenience store operations			157,735		-		256,206	162.4	202,509		100.4
			Superstore operations			42,197		-		33,634	79.7	59,710		118.3
			Department and specialty store operations	(3,584)		-		805	-	(2,383)		-
			Financial services			59,133		-		53,848	91.1	77,202		93.0
			Others			329		-		628	190.6	445		-
			Eliminations / Corporate			(16,512)		-		(23,633)	-	(22,741)		-

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

2. In accordance with our Medium-Term Management Plan announced on July 1, 2021, we reclassified our business segments, effective from the second quarter for FY2022. Figures in the tables have been restated to reflect this change.

3."Eliminations / Corporate" in operating income mainly reflects the Company's operating expenses relating to the Group strategy.

4.	EBITDA: Operating income + Depreciation and amortization + Amortization of goodwill* *Amortization of goodwill: Only figure included in SG&A expenses
5.	ROA: Net income attributable to owners of parent / Average of total assets at the beginning and the end of each fiscal year
6.	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 stock.

- 1 -

Consolidated Results-Ⅰ

Ⅱ．Major Factors for the Change

		(Millions of yen)	(Billions of yen)
		Nine Months Ended
		Nov. 30, 2021	Major Factors for the Change
			Change
Group's total sales*1	10,278,237 +2,012,019		Total store sales at Seven-Eleven Japan: +65.5
					Total store sales at 7-Eleven, Inc.: +1,896.7
					[Effect of exchange rate: +50.0]

Revenues from operations

Operating income (loss)

Domestic convenience store operations

Overseas convenience store operations

Superstore operations

Department and specialty store operations

Financial services

Others

Eliminations / Corporate*3

Ordinary income

Income before income taxes

Net income attributable to owners of parent

6,149,472	+1,872,664		Domestic CVS: +13.6, Overseas CVS: +1,834.3, Superstore: +6.7,
			Department and specialty store: +18.7, Financial services: (4.8)
			[Effect of exchange rate: +40.2]
302,927	+17,295		[Effect of exchange rate: +1.2]
177,274	(5,013)		Seven-Eleven Japan: (4.9)
			Sales: +10.9, Gross profit margin: (5.4), SG&A expenses: (10.4)
			Others: (0.06)
124,785	+44,907		7-Eleven, Inc.: +71.5 [of which, effect of exchange rate: +1.5]
			Sales: +259.7, Gross profit margin: +12.7, SG&A expenses: (200.9)
			Others: +1.4
			Amortization of goodwill: (28.1) [of which, effect of exchange rate: (0.41)]
10,123	(9,781)		Ito-Yokado: (4.3)
			Sales: (1.8), Gross profit margin: (7.0), SG&A expenses: +4.5
			York-Benimaru: (3.2)
			Sales: (0.33), Gross profit margin: (2.2), SG&A expenses: (0.61)
			Life Foods*2: +0.51
			Others: (2.7)
(10,217)	+4,553		Sogo & Seibu: +0.71
			Sales: +2.1, Gross profit margin: +0.28, SG&A expenses: (1.7)
			Seven & i Food Systems: +2.2
			Nissen Holdings [Consolidated]: +0.10
			Others: +1.4
30,289	(7,197)

1. +460
   (29,319) (10,633)

282,145	+5,878	Increase in operating income, increase in non-operating expenses
259,454	+51,940	Decrease in special losses
174,877	+43,890

*1. Group's total sales include the sales of Seven-Eleven Japan, Seven-Eleven Okinawa 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									(Millions of yen)
				Nine Months Ended	Nine Months Ended	Fiscal Year Ended		Fiscal Year Ending
				Nov. 30, 2020	Nov. 30, 2021		Feb. 28, 2021		Feb. 28, 2022 (Forecast)
					YOY(%)		YOY(%)	Composition(%)		YOY(%)			YOY(%)
	Capital expenditures	258,580	100.7	316,847	122.5	100.0	377,299	104.5	426,000	112.9
		Domestic convenience store operations	97,035	-	69,103	71.2	21.8	128,131	125.7	93,300	72.8
		Overseas convenience store operations	97,597	-	122,881	125.9	38.8	146,067	106.6	175,200	119.9
		Superstore operations	33,057	-	50,170	151.8	15.8	48,411	102.3	61,400	126.8
		Department and specialty store operations		20,392	-	9,818	48.1	3.1	26,160	116.8	14,000	53.5
		Financial services	29,252	-	26,799	91.6	8.5	39,328	108.9	38,300	97.4
		Others	879	-	2,217	252.0	0.7	972	47.1	3,000	308.6
		Eliminations / Corporate	(19,635)	-	35,856	-	11.3	(11,771)	-	40,800	-
	Depreciation and amortization	175,468	104.2	208,738	119.0	100.0	235,504	104.0	289,000	122.7
		Domestic convenience store operations	58,256	-	59,776	102.6	28.6	78,430	104.6	79,900	101.9
		Overseas convenience store operations	62,052	-	87,485	141.0	41.9	82,725	105.1	129,000	155.9
		Superstore operations	19,968	-	21,186	106.1	10.1	26,929	103.3	27,300	101.4
		Department and specialty store operations	10,839	-	10,676	98.5	5.1	14,598	101.8	13,500	92.5
		Financial services	21,377	-	23,290	108.9	11.2	28,766	99.1	30,000	104.3
		Others	799	-	637	79.7	0.3	1,016	94.6	1,000	98.4
		Eliminations / Corporate	2,173	-	5,685	261.6	2.7	3,038	135.7	8,300	273.2
	Amortization of goodwill	18,744	106.5	46,874	250.1	100.0	25,040	106.2	70,600	281.9
		Domestic convenience store operations	-	-	-	-	-	-	-
		Overseas convenience store operations	15,803	-	43,934	278.0	93.7	21,119	107.5
		Superstore operations	2,324	-	2,324	100.0	5.0	3,098	100.0
								462
		Department and specialty store operations		347	-	347	100.0	0.7	100.0
		Financial services	269	-	269	100.0	0.6	359	100.0
		Others	-	-	-	-	-	-	-
		Corporate	-	-	-	-	-	-	-
	Impairment loss	18,148	86.7	12,493	68.8	100.0	35,484	100.0
		Domestic convenience store operations	7,569	-	7,242	95.7	58.0	8,859	75.1
		Overseas convenience store operations	4,161	-	1,611	38.7	12.9	5,911	165.8
		Superstore operations	1,748	-	1,646	94.2	13.2	11,589	114.7
		Department and specialty store operations	3,169	-	1,988	62.7	15.9	7,585	143.0
		Financial services	0	-	-	-	-	1	0.0
		Others	1,492	-	4	0.3	0.0	1,529	-
		Eliminations / Corporate		6	-	-	-	-	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 respectively include 2,350 million yen, 946 million yen and 2,596 million yen recorded as "Loss related to norvel coronavirus (COVID-19)" in the consolidated income statements for the nine months ended November 30, 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 1,789 million yen, 348 million yen, and 3,879 million yen recorded as "Restructuring expenses"
   in the consolidated income statements for the nine months ended November 30, 2020 and 2021, and the fiscal year ended February 28, 2021.

- 3 -

Consolidated Results-Ⅲ

Geographic area segment information					(Millions of yen)
		Nine Months Ended			Nine Months Ended		Fiscal Year Ended
		Nov. 30, 2020			Nov. 30, 2021		Feb. 28, 2021
		YOY(%)		YOY(%)	Composition(%)	YOY(%)
Revenues from operations	4,276,808	86.0	6,149,472	143.8	-	5,766,718	86.8
	Japan	2,534,816	91.1	2,565,252	101.2	41.7	3,435,146	91.7
	North America	1,671,024	79.3	3,502,342	209.6	57.0	2,232,234	80.2
	Others	72,028	82.6	83,150	115.4	1.4	100,707	85.3
	Eliminations	(1,061)	-	(1,273)	-	-	(1,371)	-
Operating income	285,632	89.5	302,927	106.1	-	366,329	86.3
	Japan	204,161	84.3	177,248	86.8	58.5	266,096	82.8
	North America	80,877	105.8	124,824	154.3	41.2	99,582	97.8
	Others	751	134.4	1,016	135.3	0.3	805	67.2
	Eliminations	(158)	-	(162)	-	-	(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)
			Nine Months Ended	Nine Months Ended		Fiscal Year Ended
			Nov. 30, 2020	Nov. 30, 2021		Feb. 28, 2021
				YOY(%)/change		YOY(%)/change			YOY(%)/change
	Short-term loans	140,845	110.7		626,166	444.6		619,953	478.9
	Current portion of long-term loans	91,556	72.8		133,653	146.0		146,747	165.9
	Current portion of bonds	66,916	83.6		143,736	214.8		66,917	83.6
Subtotal	299,319	89.9		903,556	301.9		833,618	279.8
	Long-term loans	438,115	107.2		500,027	114.1		362,592	89.9
	Bonds	215,000	76.3		1,553,445	722.5		565,000	200.4
Subtotal	653,115	94.6		2,053,472	314.4		927,592	135.4
Total	952,435	93.0		2,957,029	310.5		1,761,210	179.2
Ratio to total assets (%)	15.9	(1.3)		34.2	+18.3		25.4	+9.0
Ratio to owners' equity (%)	36.3	(4.0)		102.1	+65.8		66.0	+28.2
Debt / EBITDA multiple (X)	-	-		-		-	2.81	+1.35

Interest-bearing debt by business segment					(Millions of yen)
	Nine Months Ended			Nine Months Ended	Fiscal Year Ended
	Nov. 30, 2020			Nov. 30, 2021	Feb. 28, 2021
	YOY(%)		YOY(%)		YOY(%)
Domestic convenience store	-	-		-	-	-	-
operations
Overseas convenience store	288,236	-		1,543,194	535.4	281,974	128.7
operations
Superstore operations	-	-		-	-	-	-
Department and	193,401	-		178,307	92.2	187,191	104.7
specialty store operations
Others	-	-		-	-	-	-
Corporate	176,916	-		942,000	532.5	1,008,917	425.9
Subtotal	658,554	97.2		2,663,501	404.4	1,478,083	232.9
Financial services	293,880	84.8		293,528	99.9	283,127	81.3
Total	952,435	93.0		2,957,029	310.5	1,761,210	179.2

- 4 -

Consolidated Results-Ⅲ・Ⅳ