#1SEVEN & HOLDINGS 1H FY2022 Financial Results Presentation October 8, 2021 Seven & i Holdings Co., Ltd. 1 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved.#23 SEVEN & HOLDINGS TODAY'S AGENDA 1 1H Results & Full-Year Forecasts 2 Progress on Group Strategy Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved.#33 SEVEN & HOLDINGS 1 1H Results & Full-Year Forecasts TODAY'S AGENDA 2 Progress on Group Strategy Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved.#4YOY Change in Existing Store Sales (September is preliminary estimates) SEVEN&I HOLDINGS 120 (%) Convenience store 110 140 (%) Superstore 120 100 90 ☑ Seven Eleven Japan 100 80 -7-Eleven, Inc. -Ito-Yokado (incl. tenants) Ito-Yokado (food) -York-Benimaru *Broken lines indicate comparison with two years earlier *Broken lines indicate comparison with two years earlier 80 60 Jan 2020 Mar May Jul Sep Nov Jan Mar May Jul Sep 2021 Jan Mar May Jul 2020 Sep Nov Jan Mar May Jul Sep 2021 200 200 (%) 150 / Specialty store Department store (%) EC 150 100 100 50 50 -IY online -IY Net supermarket (online super market) -Sogo & Seibu -Denny's *Broken lines indicate comparison with two years earlier *Broken lines indicate comparison with two years earlier 0 0 Jul Jan Mar May Jul Sep Nov Jan Mar May Sep Jan Mar May Jul Sep Nov Jan Mar May Jul Sep 2020 2021 2020 2021 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 4#51H Consolidated Financial Results Highlights SEVEN&I HOLDINGS 1Q 2Q (Billions of yen, %) 1H FY2022 YOY / Variance YOY / Variance YOY / Variance vs. Plan / Variance 107.9 127.0 117.6 101.6 Group's total sales * 2,871.4 3,504.9 6,376.4 +210.7 +744.5 +955.2 +101.4 111.8 149.7 130.8 103.7 Revenues from operations 1,555.3 2,091.0 3,646.4 +163.5 +694.4 +858.0 +130.4 108.6 100.3 103.6 101.2 Operating income 77.5 108.6 186.1 +6.1 +0.30 +6.4 +2.1 30.7 70.5 44.3 [Special losses] 12.4 14.7 27.2 (28.1) (6.1) (34.3) Net income attributable to 308.7 108.4 146.9 118.3 43.0 63.4 106.5 owners of parent +29.0 +4.8 +33.9 +16.5 EBITDA 107.0 113.4 110.6 101.2 (Operating income + Depreciation and 145.6 195.6 341.2 amortization + Amortization of goodwill) +9.5 +23.1 +32.6 +3.8 *Group's total sales include the sales of Seven-Eleven Japan, Seven-Eleven Okinawa and 7-Eleven, Inc. franchisees. 1H Exchange rate: 1 USD = 107.82JPY, 1CNY = 16.67JPY Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 5 LO#61H YOY Change by Business Segment Revenues from operations. (Billions of yen) Operating income (Billions of yen) FY2021 2,788.4 FY2021 179.7 Domestic CVS +17.0 Domestic CVS +5.0 Overseas CVS Superstore Department and specialty store +806.0 Overseas CVS +15.3 +12.3 Superstore (6.7) +22.2 Department and specialty store +2.7 Financial Financial services (3.6) (4.6) services Others +1.7 +1.4 Others Eliminations /corporate Eliminations +2.3 /corporate FY2022 3,646.4 FY2022 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. (6.7) 186.1 SEVEN&I HOLDINGS CO 6#7Domestic CVS Operations 1H Results (Billions of yen, %) Amount YOY Variance Revenues from operations 445.8 104.0 +17.0 Operating income 123.3 104.3 +5.0 EBITDA (Operating income + Depreciation and amortization + Amortization of goodwill) 162.8 103.7 +5.8 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 7#8Domestic CVS Operations: Seven-Eleven Japan (1) 1H YOY Change of operating income (1.1) (5.3) GPM +11.3 (Billions of yen) (%) +0.5 Existing store sales growth & GPM (Figures on September are preliminary estimates) Change in GPM (left) -O-Existing store sales growth (right) *Broken lines indicate comparison with two years earlier +3.3 118.2 Sales FY2021 2 +4.8 SG&A expenses 123.1 FY2022 +2.2 SEVEN&I HOLDINGS (%) +5.0 (0.1) (0.1) (0.1) (0.2) (0.2) ±0.0 ±0.0 ±0.0 (0.3) (0.2) -6 (1.4) (1.5) (1.5) (1.7) (2.0) EBITDA * (YOY/variance) ¥161.8B 103.7% +\5.8B *Operating income + Depreciation and amortization (4.6) (0.5) (5.0) 1Q 2Q 3Q 4Q FY2021 1Q 2Q Sep FY2022 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 8#9Domestic CVS Operations: Seven-Eleven Japan (2) 120 20 (%) 1H SG&A expenses YOY% -Advertising expenses -Salaries & wages -Land & building rent -Depreciation & amortization SG&A expenses total 110 Income YOY% in franchised stores Income (Monthly amount) -Income YOY% 107.4 O 100 101.9 SEVEN&I HOLDINGS 1,400 (K yen) (%) 102.3 102.4 101.8 102.0 100.6 100.2 100 1,200 00 90 1,000 1% reduction in royalties New layouts Royalties revision 2021 2022 80 (FY) 2017 800 2018 2019 2020 2021 2022 1H *Broken lines indicate comparison with two years earlier 80 (FY) 2017 2018 2019 2020 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 9#10Overseas CVS Operations 1H Results (Billions of yen, %) Amount YOY Variance Revenues from operations 1,887.8 174.5 +806.0 Operating income 57.1 136.5 +15.3 EBITDA (Operating income + Depreciation and amortization + Amortization of goodwill) 131.0 140.0 +37.4 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 10#11Overseas CVS Operations: 7-Eleven, Inc. (1) 1H YOY Change of operating income (Billions of yen) Existing store sales* & GPM (Figures on September are preliminary estimates) Change in GPM (left) -O-Existing Store Sales Growth (right) +48.2 (81.8) Foreign Fuel +59.3 currency exchange impact SEVEN&I HOLDINGS +1.5 *Broken lines indicate comparison with two years earlier +15.0 (%) (%) +9.6 +1.0 +10.0 +4.7 SG&A +7.3 expenses, (0.29) +0.5 +5.0 +6.5 etc. +0.7 78.2 +2.00 +1.0 +0.1 +5.1 52.7 MDSE +25.5 ±0.0 ±0.0 (1.6) +0.7 (0.2) (0.5) (5.0) (0.5) $129.7B 139.2% FY2020 2 EBITDA* (YOY/variance) అ *Operating income + Depreciation and amortization Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. FY2021 (0.7) (1.0) (10.0) (1.5) (1.3) (15.0) +$36.5B Q1 Q2 Q3 Q4 FY2020 Q1 Q2 Jul Aug Sep FY2021 * Existing store sales do not include Speedway sales 11#12Overseas CVS Operations: 7-Eleven, Inc. (2) 80 Crude Oil Price (WTI) Fuel Sales Volume & GP (CPG) YOY change in CPG (left) (¢) -O-Fuel Sales Volume Growth per store (right) (USD) +20.0 +18.0 SEVEN&I HOLDINGS (%) +60.0 +42.5 +8.6 +24.8 +30.0 +4.9 +4.7 +3.5 +24.4 +1.2+1.1 (0.2) (0.3) ±0.0 ±0.0 (9.2) (1.3) (1.2) (1.7) (15.6) (2.8) (9.9) (14.9) (6.3) (10.0) (30.0) (31.7) 70 60 +10.0 50 40 30 20 10 (20.0) 0 Jan 2019 May Sep Jan May Sep 2020 Jan 2021 May Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Jul Aug FY2019 FY2020 FY2021 (60.0) 2021 1H Fuel Margins: +$445M (+47.7%) Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 12#13Overseas CVS Operations: 7-Eleven, Inc. (3) Fuel GP (CPG), WTI price and Fuel retail price (6-month moving average) 80.0 ($/¢) 70.0 Retail fuel margin ( ¢ per gallon / left) -WTI price ($ / left) Retail price per gallon ($ / right) 3.5 ($) 3.0 60.0 50.0 40.0 30.0 20.0 10.0 COVID-19 0.0 Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec 2015 2016 2017 2018 2019 2020 2021 Jun 2.5 2.0 1.5 1.0 10 0.5 0.0 SEVEN&I HOLDINGS Fuel gross profit has remained stable despite significant COVID-19 impacts and changing crude oil prices Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 13#14Overseas CVS Operations: 7-Eleven, Inc. (4) SEI 1H business performance Speedway SEI excl. Speedway SEI total - (May 14 June 30) (January 1-June 30) ΥΟΥ% YOY% YOY% 5,323 107.4 5,343 107.8 34.8 +0.8 34.4 +0.4 3,186 107.2 3,450 116.0 I 598 122.8 725 149.0 64.4 122.4 78.2 148.5 10.9 104.7 21.5 205.8 53.5 126.7 56.6 134.2 Merchandise APSD 5,558 (dollars per store) Merchandise gross profit 30.2 margin (%) Fuel gallons sold 4,837 (per day per store) Operating income ($MM) 127 Operating income (\B) 13.7 Amortization of goodwill (\B) 10.5 Contribution to consolidated 3.1 results (\B) Note) Exchange rate : 1 USD = 107.82 JPY for FY2021, 108.23JPY for FY2020 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. SEVEN&I HOLDINGS 14#15Superstore Operations 1H Results (Billions of yen, %) Amount YOY Variance Revenues from operations 901.1 101.4 +12.3 Operating income 11.0 62.0 (6.7) EBITDA (Operating income + Depreciation and amortization + Amortization of goodwill) 26.5 81.4 (6.0) Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 15#16Superstore Operations YOY Change of operating income (Billions of yen) 17.7 FY2021 (1.9) IY (2.8) (1.3) (0.62) 11.0 YB (Incl. LF) (6.7) YO Others FY2022 Notes) IY:Ito-Yokado YB : York-Benimaru LF: Life foods (is a wholly owned subsidiary which produces and sells delicatessen in York-Benimaru stores) YO: York The combined operating income for York-Benimaru and Life Foods represents internal management reporting figures. Figures for each company are non-consolidated. Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. SEVEN&I HOLDINGS 16#17Department and Specialty Store Operations 1H Results (Billions of yen, %) Amount YOY Variance Revenues from operations 332.4 107.2 +22.2 Operating income (7.7) EBITDA (Operating income + Depreciation and amortization + Amortization of goodwill) (0.39) Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. +2.7 +2.6 17#18Department and Specialty Store Operations YOY Change of operating income (Billions of yen) FY2021 SS Loft AH 7FS Nissen HD (Consolidated) Others FY2022 (10.5) (1.3) +1.3 +2.7 (0.14) +2.2 +0.16 Notes) SS: Sogo & Seibu AH: Akachan Honpo 7FS: Seven & i Food Systems Figures for each company are non-consolidated. 1 2 +0.52 5 7 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. (7.7) 00 SEVEN&I HOLDINGS 18#19FY2022 Revised Consolidated Financial Result Forecast (Billions of yen, %) Before revision After revision Change YOY/Variance YOY/Variance Group's total sales * 13,549.0 Revenues from operations 8,038.0 122.7 +2,504.1 139.4 +2,271.2 13,812.0 125.1 +2,767.1 +263.0 8,309.0 144.1 +2,542.2 +271.0 103.7 103.7 Operating income 380.0 380.0 +13.6 +13.6 96.1 96.1 Ordinary income 343.5 343.5 (13.8) (13.8) Net income attributable to 106.0 106.0 190.0 190.0 owners of parent +10.7 +10.7 Net income per share (yen) 215.18 +12.15 215.16 12.13 (0.02) EBITDA 117.8 117.8 (Operating income + Depreciation and 738.3 738.3 amortization + Amortization of goodwill) +111.4 +111.4 * Group's total sales include the sales of Seven-Eleven Japan, Seven-Eleven Okinawa and 7-Eleven, Inc. franchisees. Exchange rate: 1 USD = 108.00 JPY, 1CNY = 16.00JPY Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. SEVEN&I HOLDINGS 19#20FY2022 Revised Forecast of Revenues from Operations by Business Segment SEVEN&I HOLDINGS (Billions of yen, %) Before revision After revision Change YOY Variance YOY Variance Consolidated 8,038.0 139.4 +2,271.2 8,309.0 144.1 +2,542.2 +271.0 Domestic CVS operations. 898.0 104.6 +39.2 891.0 103.8 +32.2 (7.0) Overseas CVS operations 4,371.0 194.0 +2,117.6 4,721.0 209.5 +2,467.6 +350.0 Superstore operations 1,844.0 101.8 +33.1 1,832.0 101.2 +21.1 (12.0) Department and specialty 768.0 112.2 +83.3 708.0 103.4 +23.3 (60.0) store operations Financial services 204.0 102.5 +5.0 204.0 102.5 +5.0 Others Eliminations corporate Exchange rate : 1 USD = 108.00 JPY, 1CNY = 16.00 JPY 20.0 115.5 +2.6 20.0 115.5 +2.6 (67.0) (9.7) (67.0) Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. (9.7) 20#21FY2022 Revised Forecast of Operating Income by Business Segment SEVEN&I HOLDINGS (Billions of yen, %) Before revision YOY Variance After revision YOY Change Variance Consolidated 380.0 103.7 +13.6 380.0 103.7 +13.6 Domestic CVS operations 245.6 105.1 +11.8 245.6 105.1 +11.8 Overseas CVS operations 116.3 117.9 +17.6 128.8 130.5 +30.1 +12.5 Superstore operations. 23.8 80.2 (5.8) 23.8 80.2 (5.8) Department and specialty store operations 3.3 +20.7 (9.2) +8.2 (12.5) Financial services 33.1 68.8 (14.9) 33.1 68.8 (14.9) Others Eliminations corporate (0.50) (41.6) +0.07 (0.50) +0.07 (15.8) (41.6) (15.8) Exchange rate : 1 USD = 108.00 JPY, 1CNY = 16.00 JPY Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 21#22Consolidated Financial KPIs: Achievement Progress Status SEVEN&I HOLDINGS (Billion yen) Key consolidated KPIs. FY2021 results Progress in 1H FY2022 EBITDA Net income 738.3 EBITDA \626.8B 626.8 2H 190.0 179.2 2H Operating cash flow (excl. financial business) ¥456.7B 1H 1H 1H 1H 337.4 Free cash flow level 341.2 90.0 106.5 ¥132.0B (excl. financial business) FY2021 result FY2022 original plan FY2022 result FY2021 result FY2022 FY2022 original plan result ROE 6.8% Capex Interest- bearing debt ROIC 4.7% (excl. financial business) 511.0 3,115.9 Debt/EBITDA ratio 2.8X О 2H 377.2 EPS ¥203 Progress status in 1H FY2022: Outperformed target ☐ Proceed as planned × Target not achieved FY2021 result Plan Result 1,761.2 Plan 1H 1H 201.2 FY2022 FY2022 Feb28 Aug 31 Aug 31 Feb28 original plan result 2021 2021 2021 2022 22 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved.#233 SEVEN & HOLDINGS TODAY'S AGENDA 1 1H Results & Full-Year Forecasts 2 Progress on Group Strategy Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved.#24Domestic CVS Operations Strategy Domestic CVS Operations Medium-term Strategy (republished from MTMP material) Changes in the social structure COVID-19 Ideal image Acceleration and diversification of small commercial areas Meet diversifying needs and provide convenience to all local communities Sustainable growth of existing stores Review product composition. ■ Sales floor layout tailored to small commercial areas Group procurement Store opening strategy Build a foundation for re-accelerating store openings Develop and test next-generation stores Promotion of DX Expand online convenience stores. Enhance CRM (App evolution) Improve the productivity of affiliated stores and divisions Open the door to the next "convenience" ⇒ Towards a regrowth trajectory with distribution innovation Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. SEVEN&I HOLDINGS 24#25130 (%) Domestic CVS Operations Strategy No. of customers and average spending per customer Sales -No. of customers Average spending per customer SEVEN&I HOLDINGS Changes in way 7-Eleven are used (1H YOY sales) *Vs FY2020 descending order Ranki (%) FY FY2022 Category ng 2021 vs FY20 1 Rice ball (Special rice ball) 123.0 136.1 167.4 2 *Broken lines indicate comparison with two years earlier Frozen food (Noodles, light meals) 136.6 113.5 155.1 3 Delicatessen (Salad) 125.1 122.0 152.6 115 4 Desserts (Chilled desserts) 151.9 97.3 147.7 5 Frozen food (Frozen delicatessen) 133.5 109.3 145.9 6 Soft drinks (Large size tea) 109.3 124.6 136.2 7 Frozen food (Vegetables & fruits) 148.7 91.0 135.3 100 8 Sandwich (Subs) 96.3 137.7 132.6 9 Daily products (Fish cake) 87.5 151.4 132.5 10 Pastries (Donut) 94.5 137.3 129.8 11 Ice cream (Large size) 121.9 105.6 128.7 85 12 Nutritionally functional food 101.9 125.8 128.2 13 White wine 112.4 111.9 125.7 14 Bread (Multi-pack) 112.6 110.3 124.1 15 70 Delicatessen (Salad meals) 98.2 122.4 120.2 Jan 2020 Mar May Jul Sep Nov Jan Mar May Jul 2021 Note: ¥500 or more in sales/day/store, excluding nonfood COVID-19 pandemic continues to change the way 7-Elevenare used Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 25#26Domestic CVS Operations Strategy Regional tailored response for Hokkaido. Local characteristics (Aug 23-) Larger number of household housewives Vegetable assortment COVID pandemic led to increased demand for vegetables as cooking ingredients Vegetable sales rollout test (Shonan area). and families Frequent home drinking Highly price-conscious Processed meat Delicatessen 250 (multi-pack) (large pack) (%) -Shonan area 200 -Nationwide ポテトサラダ 4パック Sausage steak (4-pack) Potato salad (300g) 150 100 顔が見える野菜 SEVEN&I HOLDINGS **30%*7 BAN YAN BE Vegetable sales rollout test (since Oct 2020) Aug 30 week 2 ごぼうサラダ 50 Salt-reduced bacon (4-pack) Burdock root salad (210g) Jan Jun Nov Apr 2020 2021 Ito-Yokado's rollout of "vegetables with traceability (visible link to production areas)" Processed meat sales YOY% 7-Premium -Hokkaido Nationwide Delicatessen sales YOY% -Hokkaido -Nationwide 110 110 (%) (%) Rollout started in Saitama and Kanagawa areas 100 100 Approx. 1,700 stores 90 90 (week) Aug 16 Aug 23 Aug 30 Sep 6 (week) Aug 16 Aug 23 Aug 30 Sep 6 (Since week of Aug 30 2021) Ongoing verification and expansion of sales floors. Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 26#27Domestic CVS Operations Strategy Test sales verification of DAISO products. DAISO Trend in sales composition (test started on Dec 2020) ダイソー Miscellaneous goods sales composition at 20 pilot stores Miscellaneous goods sales composition in West Kanagawa zone Test sales verification of Loft products. Trend in sales composition (test started on Jun 25) Loft Miscellaneous goods sales composition at 10 pilot stores Miscellaneous goods sales composition in Tokyo Minato area 3.0 (%) 2.5 Sales YOY% 20 pilot stores W. Kanagawa 3.0 (%) 1H 117.4% 101.3% 2.0 Sales YOY% 10 pilot stores Minato area Week of Jul 12 - Aug 23 123.9% 91.9% 2.0 Nov Jan 2021 Feb Mar Apr May Jun Jul Aug Store count at 76 stores the end of Aug in West Kanagawa zone 1.0 (week) Jun 14 Jul 12 Store count at the end of Aug Jul 19 Jul 26 Aug 2 Aug 9 Aug 16 Aug 23 Growth in sales of household, leisure, and cleaning items, etc. 20 stores in East Tokyo zone Growth in sales of cosmetics, social etiquette products, etc. Attract new demand by expanding product lineups to meet the needs from commercial areal Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. SEVEN&I HOLDINGS 27#28Domestic CVS Operations Strategy End of FY2021 In-depth sales floor tailored to each commercial area Residential and suburban area Approx. 5,000 stores Business districts Approx. 680 stores End of Aug 2021 Approx. 6,900 stores End of Approx. FY2022 (plan) 12,000 stores Approx. 1,200 stores Approx. 1,500 stores Layouts tailored to each store's product lineup SEVEN&I HOLDINGS New layout for 2020 (Residential and suburban area) はこちらです 1H results for stores. with new layout Comparison with two years earlier in stores with new layout vs stores without new layout +\18.7 thousand Small urban stores (Business districts) ATM 1H results for stores with new layout Comparison with two years earlier in stores with new layout vs stores without new layout +\14.7 thousand 28 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved.#29Domestic CVS Operations Strategy (Online CVS) Increase in users due to expansion of services Trend in online CVS sales Expand store network and raise brand awareness Store count End of Aug 2021 Approx. 550 stores End of Feb 2022 Approx. 1,200 stores Delivery in as little as 30 minutes Visual access to real-time inventories End of Feb 2023 Jun Aug Oct 2020 Dec Feb Apr Jun 2021 Aug Approx. 3,000 stores : Features of online CVS results (Jun-Aug) Roll out nationwide Units Basket (¥) Monthly sales FY2026 3.1X Online CVS 2.8X 10.1 2,287 In- store In- store 3.6 In-store* 737 Online CVS In-store Online CVS FY2021 FY2022 Roll out under 7NOW brand from spring of 2022 (plan) View to expansion into a global brand * nanaco (Group's electronic money) membership results Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. SEVEN&I HOLDINGS 29#30North American CVS Business Strategy (Synergy with Speedway) Further increase synergy benefits (assumed synergies in the third year) At time of August 2020 announcement $475M- $575M Merchandise Utilize economies of scale Integrate Fuel logistics Integrate digital strategies " " " " At time of July 2021 announcement $525M- $625M At time of October 2021 announcement $600M-$650M (From May 2023 to April 2024) Expand lineup of products, PBs and fresh food · Reduce costs and improve gross profit · Expand store maintenance function in-house • Optimally integrate store systems Optimize transportation and logistics. network and fuel supply • Expand 7NOW to Speedway stores · Integrate loyalty program. Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. Synergy component breakdown Fuel logistics Integrate digital strategy conomies of scale Merchandise Approx.60% SEVEN&I HOLDINGS 30#31North American CVS Business Strategy (Integration Road Map with Speedway) Merchandise Merchandise Restaurant Supply chain -2021- -2022 and beyond- Assortment test Change in sales area (PBS, Fresh food and proprietary beverages) Restaurant test Restaurant acceleration Optimize and harmonize cost of goods and the supply chain Leverage scale and optimization and harmonization of indirect costs to achieve cost leadership Expand In-house maintenance Economies of Indirect Scale In-house maintenance In-house maintenance test Fuel Logistics Fuel business Optimize fuel supply and logistics Evaluate, determine and test best of both loyalty programs Expand loyalty program Expand 7NOW delivery to Speedway stores Digital Strategy Loyalty programs 7NOW delivery Key Enablers Culture & change management Enterprise risk program migration Legal post closing (HSR process) Launch Integration team Review corporate culture and systems Integrate and harmonize organization and systems 283/293 stores executed (as of the end of Sep) Integration processes such as launching integration team, integrating corporate culture, and HSR process are on schedule Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. SEVEN&I HOLDINGS 31#32North American CVS Business Strategy 7NOW (Delivery) NOW Sales trends by Quarter Restaurant Business Approx. 8× LAREDO TACO COMPANY 437 restaurants RAISE THE ROOST CHICKEN & BISCUITS TM 23 restaurants 1Q 2Q 3Q 4Q 2020 1Q 2021 2Q APSD Sales (Jan-Aug 2021) Margin (Jan-Aug 2021)(%) Units (Aug 2021) Basket (Aug 2021) 37.4 +73% $6,793 +45% $14.0 4.5 SEVEN&I HOLDINGS $5,432 3.1 $8.1 All Other Stores Restaurant Stores 34.9% All Other Stores Restaurant Stores In Store As of Aug. 2021 7NOW In Store 7NOW As of Aug. 2021 FY2025 FY2022 460 Approx. 1,600 LAREDO eleven TACO Approx. 4,000 stores Approx. 6,500 stores restaurants restaurants Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 32#33Global Strategy Vision SEVEN & HOLDINGS 7&I HLDGS. SEVEN&I HOLDINGS ELEVEN SEJ Strengths Value Chain · Store Network · Product Development Capabilities ر Established 7-Eleven International LLC Strengthen Collaboration with Existing Markets Enhanced Collaborative Program with Area Licensees Strategic Planning & Consulting by Market Promote New Market Entry • Comprehensive Support for Value Chain • New Market Entry Guide • Market Entry via JV and M&A ELEVEN SEI Strengths · Trademark/Brand Global Licensing ⚫ Digital/IT Platform Expand Global Collaborations ESG Roadmap Development Global Leveraging and Product & Equip Global IT Digital Solutions 50 K high-quality 7-Eleven stores worldwide (FY2020: 39 K stores) * Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. excl. Japan and North America 33#34Group Food Strategy, Digital Transformation (DX) Strategy and Financial Strategy SEVEN&I HOLDINGS 2019 2020 2021 Group Merchandise Strategy & Planning Division Group food strategy Seven Premium Development Strategy & Planning Department Overseas Procurement Strategy & Planning Department Procurement Division · Logistics Strategy & Planning Department Digital transformation strategy Group IT Strategy Promotion Division Group DX Strategy Division Group DX Promotion Division Group DX Solution Division Financial strategy Financial Business Strategy Office Making good progress on building organization and allocation of personnel, etc. to promote each strategy Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 34#35Group Priority Strategy (Republished from MTMP material) Provide a new experience and value consistently from the customer's point of view Challenge of new "Growth areas" Open the next "Convenience" door Strategy aiming for growth Overseas CVS business strategy To be the main driver of Group growth ■ North America: synergy of integration with Speedway Increase value as a global brand 6.5 million a day in North America Domestic CVS business strategy Return to regrowth path • Explore business regions, handling by individual stores / location • Strengthen relationship with franchisees SEVEN&I HOLDINGS Challenge of "Food" expected now Create an abundant "Lifestyle Hubs" Strategy aiming for depth Group food strategy ➤Closer partnerships with supermarkets in the metropolitan area Reinforced development of Group products ➤Enhance joint procurement through direct imports, etc. Challenge of the Last Mile Large-scale commercial base strategy ➤Higher hub value in line with each business region Expand non-store profits · Expand on-demand delivery service/enhance online supermarkets (BOPIS) Customer Base 22.4 million a day in Japan Improve LTV by 7 Rewards/CRM Expand 7NOW (delivery) Expand 7Wallet (digital settlement) Expansion of customer contact Improve LTV by Group CRM around 7iD Strengthen point strategy Provide new settlement experience DX/Finance strategy Build Last Mile delivery platform ➤Improve technology-aided productivity Enhance financial services Further strengthening of corporate governance / Human resource measures linked to the business strategy Sustainable management Balancing the sustainable growth of the company with sustainable society Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 35#36Appendix 36 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved.#371H Revenues from Operations and Operating Income by Business Segment SEVEN&I HOLDINGS (Billions of yen, %) Revenues from operations Operating income YOY Variance YOY Variance Consolidated 3,646.4 130.8 +858.0 186.1 103.6 +6.4 Domestic CVS operations 445.8 104.0 +17.0 123.3 104.3 +5.0 Overseas CVS operations. 1,887.8 174.5 +806.0 57.1 136.5 +15.3 Superstore operations 901.1 101.4 +12.3 11.0 62.0 (6.7) Department and specialty 332.4 107.2 +22.2 store operations (7.7) +2.7 Financial services Others Eliminations corporate Exchange rate: 1USD = 107.82 JPY, 1CNY = 16.67 JPY 96.5 96.4 (3.6) 20.4 81.6 (4.6) 9.4 122.4 +1.7 0.31 +1.4 (26.8) +2.3 (18.3) (6.7) Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 37#381H Operating Income of Major Operating Companies * Operating income YOY Variance Existing store sales growth (Billions of yen, %) Merchandise GPM variance Seven-Eleven Japan 123.1 104.1 +4.8 +1.5 (0.1) 7-Eleven, Inc. 78.2 148.5 +25.5 +7.6 +0.4 [Millions of dollar] [725] [149.0] [+238] Ito - Yokado 1.0 36.0 (1.9) +3.8 (0.7) [incl. tenants] - York Benimaru 10.2 78.4 (2.8) (Incl. Life foods)* Sogo & Seibu (4.9) (0.7) (0.8) (1.3) +23.4 +0.3 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. SEVEN&I HOLDINGS 38#39Quarterly Operating Income of Major Operating Companies (Billions of yen, %) 1H FY2022 SEVEN&I HOLDINGS Q1 Q2 YOY/Variance YOY/Variance YOY/Variance 115.6 95.0 104.1 Seven-Eleven Japan 60.3 62.7 123.1 +8.1 (3.2) +4.8 7-Eleven, Inc. 106.8 167.6 148.5 17.7 60.5 78.2 [Billions of yen] +1.1 +24.4 +25.5 7-Eleven, Inc. 109.6 167.0 149.0 167 558 725 [Millions of dollar] +14 +224 +238 56.2 23.1 36.0 Ito - Yokado 0.65 0.42 1.0 (0.50) (1.4) (1.9) - York Benimaru 65.8 93.9 78.4 4.7 5.4 10.2 (Incl. Life foods)* (2.4) (0.35) (2.8) Sogo & Seibu (2.2) (2.7) (4.9) (1.0) (0.38) (1.3) * 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. 39#40Quarterly Existing Store Sales Growth and GPM of Major Operating Companies SEVEN&I HOLDINGS Q1 Q2 1H FY2022 (%) Existing store GPM / Existing store GPM / Existing store sales growth Variance sales growth Variance sales growth GPM / Variance 31.8 31.8 31.8 Seven-Eleven Japan +3.3 (0.3) +1.5 (0.2) ±0.0 (0.1) 34.3 34.5 34.4 7-Eleven, Inc. +4.7 +9.6 +7.6 +0.1 +0.7 +0.4 29.0 28.8 28.9 Ito - Yokado +13.7 (4.5) +3.8 [incl. tenants] (0.4) [incl. tenants] (1.0) [incl. tenants] (0.7) 25.3 25.9 25.6 - York Benimaru (1.0) +0.3 (0.7) (1.0) (0.5) (0.8) 23.0 22.8 22.9 Sogo & Seibu +73.4 (3.8) +23.4 +1.0 (0.1) +0.3 40 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved.#41Special Losses (1H) FY2021 FY2022 Variance Major factors for the variance (34.3) Mainly decrease in loss related to COVID-19. Special losses 61.5 27.2 Loss on disposals of property and equipment. 4.4 6.5 +2.1 Impairment loss 10.9 8.6 (2.3) Restructuring expenses. 5.4 0.69 (4.7) SEI[+0.80]: Increase due to store renovation, etc. IY[+0.58]: Same as above SEVEN&I HOLDINGS (Billions of yen) FOC [(1.4)]: Business reorganization in PY in line with the Tokyo metropolitan area food strategy SEJ[(0.97)]: Decline in special loss due mainly to decrease in stores subject to impairment treatment IY [(2.7)]: Store closures, personnel measures, etc. in PY SS[(1.9)]: Same as above. SEJ [(4.6)] Franchisee support money [(3.1)], Cost of infection prevention and control [(1.2)], etc. Cost of infection prevention and control [(3.2)], Payment of employee allowances [(1.6)], etc. IY [(4.4)] Transfer of fixed costs [(3.9)] Loss related to novel coronavirus (COVID-19) SEI [(5.2)] 35.3 8.5 (26.7) *FOC Forecast Co., Ltd. SS [(7.9)] Transfer of fixed costs [(7.6)] Others Loft [(1.0)], YB [(0.66)], 7FS[(0.45)], AH[(0.40)] 41 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved.#42Consolidated B/S Summary (As of August 31, 2021) SEVEN&I HOLDINGS (Billions of yen) Assets (Main items only) Feb 28 2021 Aug 31 2021 Variance Liabilities and net assets (Main items only) Feb 28 2021 Aug 31 Variance 2021 Current assets 3,350.2 2,646.3 (703.8) Total liabilities 4,115.4 5,700.6 +1,585.1 Cash and bank deposits 2,189.1 1,471.3 (717.7) Current liabilities 2,782.4 2,970.3 +187.9 Cash and due from 925.4 911.0 banks at Seven Bank (14.4) Notes and accounts 385.2 529.8 +144.5 payable-trade Notes and accounts 318.1 373.0 +54.9 receivable-trade Short-term loans 619.9 624.0 +4.1 ATM-related temporary 216.4 79.2 (137.2) Current portion of bonds 213.6 270.7 +57.0 payments Current portion of long-term loans Non-current assets 3,594.0 6,069.9 +2,475.9 Deposits received 236.4 207.4 (28.9) ATM-related temporary Property and equipment 2,206.0 3,272.2 +1,066.2 130.1 44.2 (85.9) advances Buildings and structures, 994.0 1,550.3 +556.2 Deposits received in net 741.4 739.0 banking business (2.4) Land 746.2 1.143.1 +396.8 Non-current liabilities 1,333.0 2,730.2 +1,397.2 Intangible assets 645.8 2,054.0 +1,408.2 Bonds 565.0 1.705.8 +1,140.8 Investments and other 742.1 743.5 +1.4 assets Long-term loans 362.5 515.3 +152.7 Deferred assets 2.5 2.2 (0.36) Total net assets 2,831.3 3,017.9 +186.5 Total assets 6,946.8 8,718.5 +1,771.7 Total liabilities and net assets 6,946.8 8.718.5 +1,771.7 42 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved.#431H Consolidated Statements of Cash Flows 500.0 (Billions of yen) CF from operating actives (left axis) CF from financing actives (left axis) ■CF from investing actives (left axis) -O-Free cash flow (right axis) 250.0 0.0 (250.0) 300.0 (Billions of yen) 150.0 0.0 (150.0) SEVEN&I HOLDINGS (500.0) (300.0) (Billions of yen) FY2018 FY2019 FY2020 FY2021 FY2022 vs. FY2021 CF from operating 251.4 308.4 329.0 295.5 340.8 +45.3 actives CF from investing actives (113.5) (464.9) (165.7) (202.7) (2,343.9) (2,141.2) Free cash flow 137.8 (156.5) 163.3 92.7 (2,003.1) (2,095.9) CF from financing (81.9) 31.6 (91.9) 145.6 1,243.1 +1,097.5 actives Cash and cash equivalents 1,264.5 1,169.1 1,379.7 1,591.5 1,466.3 (125.1) at end of period 43 Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved.#44FY2022 Consolidated Financial Results Forecast (Revised 2H Forecast) 1H (results) 2H (Billions of yen, %) FY2022 YOY/ Variance YOY / Variance Change YOY/ Variance 117.6 Group's total sales* 6,376.4 7,435.5 +955.2 132.2 +1,811.8 125.1 +161.5 13,812.0 +2,767.1 130.8 Revenues from operations 3,646.4 4,662.5 +858.0 156.6 +1,684.2 144.1 +140.5 8,309.0 +2,542.2 103.6 103.9 103.7 Operating income 186.1 193.8 (2.1) 380.0 +6.4 +7.2 +13.6 99.0 93.4 96.1 Ordinary income 173.4 170.0 (6.4) 343.5 (1.7) (12.0) (13.8) Net income attributable to 146.9 78.2 106.0 106.5 83.4 owners of parent (16.5) 190.0 +33.9 (23.2) +10.7 Net income per share (yen) 120.61 +38.47 94.55 (26.34) (18.68) 215.16 +12.13 EBITDA 110.6 124.7 117.8 (Operating income + Depreciation and 341.2 397.0 (3.8) 738.3 amortization + Amortization of goodwill) +32.6 +78.7 +111.4 * = Group's total sales include the sales of Seven-Eleven Japan, Seven-Eleven Okinawa and 7-Eleven, Inc. franchisees. Exchange rate : 1USD 107.82 JPY (1H actual) →108.00 JPY (FY2022 plan), 1CNY = 16.67 JPY (1H actual) →16.00 JPY (FY2022 plan) Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. SEVEN&I HOLDINGS 44#45FY2022 Forecast for Major Operating Companies Operating income Existing store sales growth SEVEN&I HOLDINGS (Billions of yen, %) Merchandise GPM YOY / Variance variance Revision of amounts Before revision After revision Before revision After revision 105.0 Seven-Eleven Japan 245.0 +2.0 +1.8 +0.1 (0.1) +11.6 7-Eleven, Inc. 160.8 191.7 +12.5 [Billions of yen] +72.4 +4.5 +5.6 (0.4) (0.2) 7-Eleven, Inc. 158.9 1,775 +101 [Millions of dollar] +658 64.3 Ito - Yokado 5.0 +4.2 +3.1 (0.1) (0.6) (2.7) [incl. tenants] [incl. tenants] York Benimaru - (Incl. Life foods)* 89.7 18.4 (2.0) (0.9) (0.3) (2.1) Sogo & Seibu (5.9) (6.4) +20.0 +10.8 +0.8 +0.2 +0.79 * 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. 45#46With 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. 46