ValueAct Capital Activist Presentation Deck
Complexity: Collaboration Challenges Cited in 7Pay Failure
Several media reports suggest that Seven & i's governance structure, which makes collaboration and
communication across group companies difficult, contributed to the 7Pay failure
July 2019: Seven & i launches the
"7Pay" payment service
Just days after the launch, the payment
service is hacked, and 38 million yen is
stolen from accounts
7pay
TOKIO MARINE
ASSET MGT
August 2019: the
Company shut down
7Pay.
Opposed the re-election of Ryuichi Isaka and Katsuhiro Goto
due "the occurrence of security issues and after-the-fact
disclosure." Source
Sources: Public company documents, Nikkei Business, VAC analysis
Memo: Nikkei business article as translated by VAC
Nikkei Business
Oct 8, 2019
"Trying to guess what Seven-Eleven Japan
wanted, without engaging in dialogue with its
leaders, led to 7Pay problems"
"The Company says there is collaboration within
the Group, but in reality, it is difficult to
commercialize 7Pay unless Seven-Eleven Japan
approves."
"The app's convenience was prioritized over its
security because the 7Pay developers assumed
that is what Seven-Eleven Japan wanted."
Source: Nikkei Business Article
5View entire presentation