CORPORATE OUTLINE FY2021 Seven & I Holdings Co., Ltd
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CORPORATE OUTLINE FY2021 Seven & i Holdings Co., Ltd. 010_0328358582106.indd 1 2021/08/02 14:47:28 About Corporate Outline The Company aims to be a sincere company in line with its corporate creed,earning the trust of all stakeholders, including customers, business partners and franchisees, shareholders and investors, local communities, and employees. Guided by our Group slogan of “Responding to Change while Strengthening Fundamentals,” we conduct open and honest dialogue with our customers to stay in tune with their constantly changing needs. Learning about these needs yields opportunities to create and evolve new retail services in response to changes in the times. We believe that the core concept of corporate governance is to create “a system for being a sincere company trusted by all stakeholders,” and that this is in line with our corporate creed. We will redouble our efforts to improve and expand our corporate governance, based on the philosophy of our founder. In the same way that we foster opportunities for creating services through dialogue with our customers, we believe that expanding dialogue with all of our stakeholders, including business partners and franchisees, shareholders and investors, local communities, and employees, will yield opportunities for increasing corporate value. This Corporate Outline is designed to communicate an overview of our Group’s business in a clear manner to enable better understanding. We hope you will be able to use it to your benefit. Six Chapters to Learn about Seven & i Group Introduction to Introduction to the Market Understand Seven & i See Seven & i Group’s See Major Group See Corporate Data Seven & i Group Environment Group’s Strategy Performance Companies’ Data Company Profile P1 Domestic Macroeconomic Environment P9 Medium-Term Management Plan P17 Consolidated Financial Summary P29 Overview of Major Group Companies P35 Stock Information P57 Seven & i Group’s Business P2 Domestic Environment of the Retail P11 Business Strategy of Overseas P19 Consolidated Financial Highlights P30 Domestic Convenience Store Operations P36 Group History P58 Industry Convenience Store Operations Seven & i Group’s Value Creation P3 Segment Information P31 Overseas Convenience Store Operations P42 Process U.S. Macroeconomic Environment and Business Strategy of Domestic P12 P24 Financial Position P33 Superstore Operations P44 Environment of the U.S. Retail Industry Seven & i Group in Numbers Convenience Store Operations P4 Department Store Operations P50 Major Group Companies’ Market P13 Group Food Strategy P25 Share in Japan (Nonconsolidated) Financial Services P52 Large-Scale Commercial Base P27 Global Retail Industry P14 Strategy and Specialty Store Operations P53 --Sales Ranking DX/Financial Strategies Global Retail Industry P15 --Market Capitalization Ranking 010_0328358582106.indd 2 2021/08/02 14:47:28 Introduction to the Market Understand Seven & i Group’s See Seven & i Group’s Introduction to Seven & i Group See Major Group Companies’ Data See Corporate Data Environment Strategy Performance CORPORATE OUTLINE FY2021 Corporate Profile We aim to be a sincere company that our customers trust. Corporate Overview (As of February 28, 2021) We aim to be a sincere company that our business partners,shareholders and local communities trust. We aim to be a sincere company that our employees trust. Company name Corporate Creed Seven & i Holdings Co., Ltd. We aim to contribute to the local community both in Japan and overseas by Basic stance Date of establishment providing new experiences and values from the customer’s point of view. September 1, 2005 A world-class global distribution group that leads distribution innovation Head office Ideal Group Group’s Management Policy through global growth strategies centered on the 7-Eleven business and 8-8, Nibancho, Chiyoda-ku, image for 2030 proactive utilization of technology Tokyo 102-8452, Japan Representative Strengthen corporate governance President: Ryuichi Isaka Maximize the Group’s enterprise value Support for management Assessment and supervision of Optimal resource distribution Paid-in capital Roles and Functions of execution management execution the Holding Company 50 billion yen Share specific actions with operating companies regarding management challenges and solutions Set and monitor KPIs Number of employees 799 (nonconsolidated) 58,975 (consolidated) Pursue maximization of customer satisfaction Operate autonomously, seek profit growth, and enhance asset efficiency Roles and Functions of Operating Companies To strengthen segment management through management approach, business segments have changed from the fiscal year ended February 28, 2018. Domestic convenience store operations Financial services Overseas convenience store operations Specialty store operations Business Segments Superstore operations Others Department store operations 1 010_0328358582106.indd 1 2021/08/02 14:47:28 Introduction to the Market Understand Seven & i Group’s See Seven & i Group’s Introduction to Seven & i Group See Major Group Companies’ Data See Corporate Data Environment Strategy Performance CORPORATE OUTLINE FY2021 Seven & i Group’s Business Seven & i Group’s Value Creation Process Seven & i Group in Numbers Open the next Convenience door Seven & i Group Challenge of oo expected now Stays Closely Domestic convenience store operations With 21,17 domestic convenience Create an abundant iestle ubs Attuned to stores, Seven-Eleven Japan o., td. Superstore operations continues to play a central role in fulfilling Superstore operations consist of Customers’ ives the social infrastructure function of general merchandise store GMS and Department store operations operating close-by, convenient stores food supermarket businesses and are indispensable to people’s lives. epartment store operations mainly consist of 10 run mainly by Ito-okado o., td., department stores in Japan, run by Sogo Seibu o., * Seven-Eleven Okinawa is included. York-enimaru o., td. and York o., td., and stores in ong Kong, Taiwan, Malaysia and td. Ito-okado operates 12 stores in Indonesia, for which Sogo Seibu serves as the Overseas convenience store operations Japan, which are primarily GMS overseas licensor. handling food, apparel and household 7-Eleven, Inc. SEI franchises andor goods. York-enimaru operates 2 licenses stores worldwide and responds lifestyle-proposal supermarkets that Specialty store operations to customer needs in highly diverse orth aim to make people’s daily dining America. Through an effective Specialty store operations offering distinctive products experiences more fun, fulfilling and and services include maternity, baby and children’s combination of new store openings and products specialty stores by Akachan onpo o., td., convenient, primarily in the southern overall food-related businesses by Seven i Food MAs, SEI further strengthens the growth Tohoku region. Systems o., td., and miscellaneous goods specialty of the entire chain. stores by TE OFT O., T. etc. Others Expansion of customer contact Group companies, including Seven i et Media in charge of planning and operation of systems that support the digital The Group engages in financial services, including banking and card businesses. Seven ank, td. offers ATM cash strategy of the Seven i Group, work together to create Financial services pick-up, international money transfer and other financial services that meet customer needs, in addition to operating a uality services. network of ATMs handling approximately 2. million transactions a day. Through the issuance and operation of nanaco electronic money, the card business offers highly convenient financial services integrated with retail services. 2 010_0328358582106.indd 2 2021/08/02 14:47:29 Introduction to the Market Understand Seven & i Group’s See Seven & i Group’s Introduction to Seven & i Group See Major Group Companies’ Data See Corporate Data Environment Strategy Performance CORPORATE OUTLINE FY2021 Seven & i Group’s Business Seven & i Group’s Value Creation Process Seven & i Group in Numbers Megatrends Core Competences Stakeholders Diverse customer Food highly favored by Society Global presence Changing and contact points customers diversifying consumer Number of customers visiting lifestyles Food accounts for around 60% Approx. 74,000 stores*3 Franchisees our stores per day of domestic sales. Environment *1 in 17 countries and regions E Approx. 53.8 million *2 Share of domestic food market: worldwide (worldwide) 6.4% Value provided by Seven & i Group (outcome) Business partners The food market*2 has expanded by approx. Strategy ¥8.9 trillion over the Reduce environmental burden through past 10 years. Open the next Challenge for “Food” that are Creation of affluent effective use of resources without waste “Convenience” door now needed by customers “lifestyle hubs” (muri, muda, mura) Customers at Demographics different life stages, Decreasing population, CVS Business strategy Strengthening food/Tokyo Large-scale commercial in various life scenes low birthrate, and as a core of growth metropolitan area food strategy base strategy aging society in Japan Provide high-quality products and services that Expansion of “contact points” with our customers DX/Financial Strategies make life more convenient Shareholders Investors Sustainability and Growth Help solve social issues by building social Technology infrastructure Advances in digital and 1. Providing Social Infrastructure in this Era with an Aging Society and Declining Population Spur motivation and boost