#1SEVEN&I HOLDINGS FY2021 Financial Results Presentation April 8, 2021 Seven & i Holdings Co., Ltd. Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 1#2SEVEN&I HOLDINGS 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/ Variance YOY/ Variance YOY/ Variance vs. Plan/ Variance 91.7 93.3 92.1 100.3 Group's total sales* 8,266.2 2,778.6 11,044.8 (753.1) (199.6) (952.7) +30.8 Revenues from operations 86.0 89.3 86.8 100.9 4,276.8 1,489.9 5,766.7 (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 EBITDA 95.0 86.9 93.0 (Operating income + Depreciation and amortization + Amortization of goodwill) 479.8 147.0 626.8 (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 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 2#3Consolidated B/S Summary SEVEN&I HOLDINGS (Billions of yen) Assets Feb 29 (Main items only) 2020 Feb 28 2021 Liabilities and net assets Feb 29 Feb 28 Variance Variance (Main items only) 2020 2021 Current assets 2,471.9 3,350.2 +878.3 Total liabilities 3,239.6 4,115.4 +875.8 Cash and bank deposits 1,357.7 2,189.1 +831.4 Current liabilities 2,157.1 2,782.4 +625.2 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 Notes and accounts receivable-trade 351.9 318.1 (33.7) Short-term loans 129.4 619.9 +490.4 Current portion of bonds ATM-related temporary payments 153.0 216.4 +63.4 168.4 213.6 +45.2 Current portion of long-term loans Non-current assets 3,522.5 3,594.0 +71.4 Deposits received 228.4 236.4 +7.9 Property and equipment 2,183.3 2,206.0 +22.6 ATM-related temporary advances 74.2 130.1 +55.9 Deposit received in banking Buildings and structures, net 992.3 994.0 +1.7 655.0 741.4 +86.3 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.#4Consolidated Statements of Cash Flows 800 CF from operating activities (left) CF from financing activities (left) (Billions of yen) 400 CF from investing activities (left) --Free cash flow (right) 400 (Billions of yen) 200 0 (400) 0 (200) SEVEN&I HOLDINGS (800) (400) (Billions of yen) FY2017 FY2018 FY2019 FY2020 FY2021 vs. FY2020 CF from operating activities 512.5 498.3 577.8 576.6 539.9 (36.6) CF from investing activities (371.6) (240.4) (557.4) (318.0) (394.1) (76.0) Free cash flow 140.9 257.8 20.3 258.6 145.8 (112.7) CF from financing activities (78.1) (168.5) (5.3) (213.2) 690.5 +903.7 Cash and cash equivalents 1,209.4 1,300.3 1,310.7 1,354.8 2,183.8 +828.9 at end of period 4 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved.#5Special Losses Special losses increased significantly due to COVID-19 (Billions of yen) FY2020 FY2021 Variance Major factors for the change Special losses 79.9 109.0 +29.0 Losses mainly due to COVID-19 Loss on disposals of property and equipment 15.5 12.1 Impairment loss 27.9 31.6 +3.6 (3.3) Delay of remodels due to COVID-19, etc. IY[+3.2], SEI[+2.3], FOC [+1.4] *, 7FS [+1.1] SEJ [(2.9)], YB[(1.1)], YO[(1.0)] Restructuring expenses 7.7 10.2 +2.4 IY [+4.1]: Close stores, Personnel initiative, etc. SS[(1.6)]:Career change support measure in FY2020, etc. Loss on digital and settlement 13.4 services SEVEN&I HOLDINGS (13.4) Abolishment of the 7pay service in FY2020 SEJ [7.5] Franchisee support money [5.1] Loss related to novel coronavirus (COVID-19) 40.5 +40.5 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. 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 5 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved.#6YOY Change by Business Segment Revenues from operations (Billions of yen) FY2020 FY2020 6,644.3 Domestic CVS Overseas CVS Superstore (50.4) (548.4) (38.2) Department (152.4) store Financial services (18.4) Specialty (75.8) store Others (3.1) Eliminations +9.4 /corporate FY2021 5,766.7 Operating income (Billions of yen) 424.2 Domestic CVS Overseas CVS Superstore Department store (22.3) (3.9) +8.3 (7.0) Financial services (5.5) Specialty (18.2) store Others +0.39 Eliminations /corporate FY2021 (9.6) 366.3 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. SEVEN&I HOLDINGS 6#7SEVEN&I HOLDINGS FY2021 Forecast of Revenues from Operations and Operating Income by Business Segment (vs. previous year) Revenues from operations (Billions of yen, %) 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 Eliminations / corporate Exchange rate: 1USD = 106.76JPY, 1CNY = 15.48JPY Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 22.0 87.3 (3.1) 1.9 125.1 +0.39 (66.2) +9.4 (25.9) (9.6) 7#8FY2021 Forecast of Revenues from Operations and Operating Income by Business Segment (vs. plan) SEVEN&I HOLDINGS (Billions of yen, %) Operating income Revenues from operations 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 Eliminations / corporate Exchange rate: 1USD = 106.76JPY, 1CNY = 15.48JPY Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 22.0 115.8 +3.0 1.9 114.4 +0.24 (66.2) (0.27) (25.9) +2.8 8#9Operating Income of Major Operating Companies Q3 cumulative Q4 (Billions of yen, %) FY2021 SEVEN&I HOLDINGS YOY/Variance YOY/Variance YOY/ Variance vs. Plan/ Variance Seven-Eleven 91.7 92.4 91.9 101.4 182.0 51.2 233.3 Japan (16.4) (4.2) (20.6) +3.3 7-Eleven, Inc. 104.8 77.5 98.0 101.8 95.5 23.6 119.2 [Billions of yen] +4.4 (6.8) (2.4) +2.1 7-Eleven, Inc. 106.4 81.3 100.1 102.0 888 228 1,116 [Millions of dollar] +53 (52) +0.9 +22 79.3 119.3 155.6 Ito-Yokado 1.8 5.8 7.7 +2.7 (1.5) +1.2 +2.7 York-Benimaru 150.8 65.0 121.4 103.0 16.7 3.7 20.5 <Incl. Life Foods*> +5.6 (2.0) +3.6 +0.6 13.7 Sogo & Seibu (7.0) 0.38 (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. Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 9#10Existing Store Sales Growth and GPM of Major Operating Companies Q3 cumulative Q4 FY2021 Existing store GPM/ Existing store GPM / sales growth Variance sales growth Variance Existing store sales growth GPM/ Variance 32.0 31.8 32.0 Seven-Eleven Japan (2.7) (1.5) (2.4) (0.1) (0.2) (0.1) 34.2 33.8 34.1 7-Eleven, Inc. +0.7 +1.0 +0.9 (0.8) (0.2) (0.7) 29.7 29.7 29.6 Ito-Yokado (6.8) (2.6) (5.3) [incl. tenants] (0.3) [incl. tenants] (0.1) [incl. tenants] (0.3) 26.3 27.0 26.4 York-Benimaru +5.6 +3.2 +5.0 +0.4 ±0.0 +0.3 22.9 21.9 22.6 Sogo & Seibu (27.4) (15.3) (24.2) (1.3) (1.0) (1.3) Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. SEVEN&I HOLDINGS 10#11SEVEN&I HOLDINGS 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 233.3 120 1280 (%) 109.5 Cost structure reforms (Trends in SG&A expenses YOY) -Advertising expenses Salaries & wages -Land & building rent Depreciation & amortization -SG&A expenses total ¥(20.6) B 100 2 FY2020 FY2021 approx. Royalties revision impact \(9.7) B 80 approx. COVID-19 Impact (FY) 2016 2017 2018 2019 2020 2021 \(17.0) B Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 97.5 11#12Domestic CVS Operations: Seven-Eleven Japan (2) Existing store sales & GPM 120 Sales by store location Change in GPM (left) (%) +0.5 -O-Existing store sales growth (right) +5.0 (%) (%) +0.3 +0.2 100 +0.1 +0.1 +1.0 +1.1 (0.1) (0.1) (0.1) (0.2) ±0.0 +0.3 (1.6) ±0.0 80 00 (1.4) O (2.0) (1.5) 60 60 SEVEN&I HOLDINGS или прит Railway stations, hospitals and highway, etc. (4.6) (0.5) (5.0) Q1 Q2 Q3 Q4 FY2020 Q1 Q2 Q3 Q4 40 FY2021 East Tokyo -West Tokyo 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#13Domestic CVS Operations: Seven-Eleven Japan (3) 130 (%) Average spending per customer -Sales -Foot trafic -Average spending per customer 150 (%) Sales by merchandise category 115 100 85 wwwww 125 им 100 75 SEVEN&I HOLDINGS -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- (Week) Jan 6- Mar 2- Apr 27- Jun 22- Aug 17- Oct 12- (Week) Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. Dec 7- Feb 1- 13#14Overseas CVS Operations: 7-Eleven, Inc. (1) YOY Change of operating income (Billions of yen) (24.4) +58.2 10.2 (11.8) SG&A expenses, etc. (11.2) MDSE MDSE Fuel CPG Sales GPM (20.9) COVID support of FZ owners 121.6 FY2019 2 Fuel Volume \(2.4)B 7 (2.5) Foreign exchange impact 119.2 FY2020 approx. Income: COVID-19 Impact Expenses: \(9.0) B approx. +¥4.5 B Secured earnings growth in dollar basis Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. SEVEN&I HOLDINGS 14#15SEVEN&I HOLDINGS Change in GPM (left) (%) Overseas CVS Operations: 7-Eleven, Inc. (2) (%) Existing store sales & GPM Changes in consumption behavior 140 -Sales -Foot traffic Average spending per customer (%) 125.5 120 +1.5 Existing store sales growth (right) +4.5 100 +3.4 +3.1 +1.0 +2.2 +2.0 +1.0 +0.5 +0.8 +0.7 +0.7 +0.7 +0.7 ±0.0 80 +3.2 +3.0 60 +1.5 +0.3 ±0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2020 2021 Key category sales for Feb (YOY change in amount) +0.1 (0.2) (0.5) (1.5) Frozen foods Growth in sales of pizzas, 120.1% single dishes, etc. (1.6) (0.5) (0.7) (1.0) (3.0) Alcoholic beverages Growth in sales through 113.7% bulk purchases in boxes Growth in sales of daily Non-Foods (1.3) (1.5) (4.5) 134.1% necessaries Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jan Feb FY2019 FY2020 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 15#16Overseas CVS Operations: 7-Eleven, Inc. (3) Crude oil price (WTI) 70 Fuel sales volume & Margin (CPG) (¢) (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 +20.0 YOY change in CPG (left) Fuel sales volume growth per store (right) +18.0 SEVEN&I HOLDINGS (%) +40.0 +10.0 +8.6 +20.0 +4.9 +4.7 +3.5 +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) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2019 FY2020 (40.0) YTD Fuel margin: +$342M (+20.5%) Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 16#17Superstore Operations: Ito-Yokado YOY Change of operating income (Billions of yen) 6.5 SG&A expenses +25.5 7.7 SEVEN&I HOLDINGS Structurally reformed stores drove profit growth Stores that implemented structural reforms +\1.1 B FY2020 Sales (26.1) GPM +1.8 +\1.2B approx. Income: COVID-19 Impact \(10.2) B approx. Expenses: +\11.3 B Transfer Shokuhinkan +\1.2 B and THE PRICE to York* New stores / Closed stores +\0.17 B FY2021 Other stores *20 stores were transferred from Ito-Yokado on Jun 1, 2020 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. \(1.3) B 17#18SEVEN&I HOLDINGS Department Store Operations: Sogo & Seibu YOY change of operating income (Billions of yen) FY2020 0.17 \(6.8)B FY2021 Factors in YOY Change of operating Income by store / business segment Store-operating business \(8.5) B Sales (33.6) SG&A expenses +30.4 GPM (3.6) approx. Income: COVID-19 Impact \(30.3) B approx. Expenses: (6.6) Flagship stores in the Tokyo metropolitan area (5 stores) \(8.8) B Regional/suburban stores (3 stores) \(0.77) B Remodeled / Closed stores +\1.0 B (7 stores) Corporate sales +\0.47 B +\23.8 B * Based on operating income after calculating special losses related to COVID-19 18 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved.#19With Livings - Seven & i Group 3 SEVEN&I HOLDINGS 星のの目 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