Investor Presentaiton

Step 2. Separate Ito-Yokado With Restructuring Plan Heavy transformation is required to reposition Ito-Yokado for the long term. The steps to concentrate the operations on food retail and find better owners for much of the owned real estate can be best accomplished as a separate company Ito-Yokado Can Become A Sustainable Business By Focusing on Food Retail Seven & i is not the best owner for the low ROIC tenant business. It is worth more to property specialist Significant losses in non- food retail operations 23b yen 28b yen 20b yen 24b yen Tenant Operations EBITDA Contribution Food Retail EBITDA Contribution Non-Food Retail EBITDA Contribution Ito-Yokado Total EBITDA Sources: Public company documents, VAC analysis Memo: Assumes Ito-Yokado food retail operations earn York-Benimaru level of profitability and sales per square meter. Assumes rent expense per square meter is the same across the Ito-Yokado food and non-food square footage. 30

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