ValueAct Capital Activist Presentation Deck
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
24b yen
Tenant Operations
EBITDA Contribution
23b yen
Food Retail
EBITDA Contribution
28b yen
Non-Food Retail
EBITDA Contribution
Significant losses in non-
food retail operations
20b yen
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.
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