CORPORATE OVERVIEW

Japan’s Retail Industry Market Environment

Sales trends of retail industry in

¥ Trillion ¥ Trillion 150 15.0

125 12.5

100 10.0

75 7.5

50 5.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Japan’s retail industry total (left scale) Convenience stores (right scale) Supermarkets (right scale) Department stores (right scale)

Source: Current Survey of Commerce (Ministry of Economy, Trade and Industry)

Changes in Japan’s Consumer Market Increase in customers who consider shopping to be inconvenient

Decline in number of people per household Increase in number of working women Average number of people per household expected to Number of women working outside the home increased from decline from 3.2 in 1980 to 2.3 in 2030 51.5% in 1980 to 60.1% in 2011 Changes in number of households Number of female workers and their employment rate Thousands of households People Millions of people % 60,000 4.0 30 60

25 55 45,000 3.0 20 50

30,000 2.0 15 45

10 40 15,000 1.0 5 35

0 0 0 30 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 1980 1985 1990 1995 2000 2005 2010 2011 Single person (left scale) Husband and wife (left scale) Parents and children (left scale) 15 to 24 (left scale) 25 to 34 (left scale) 35 to 44 (left scale) Other (left scale) Average number of people per household (right scale) 45 to 54 (left scale) 55 to 64 (left scale) Employment rate (right scale)

Source: National Institute of Population and Social Security Research Source: Labour Force Survey (Ministry of Internal Affairs and Communications)

Declining birthrate and aging population Decline in number of retail stores People 65 and older to account for 29.1% of population in 2020 1982: 1.72 million 2007: 1.13 million Changes in population of those aged over 65 Trend in number of stores by stratum of number of employees % Thousands of stores 40 1,800

1,500 30 1,200

20 900

600 10 300

0 0 1950 1960 1970 1980 1990 2000 2010 20302020 2040 2050 1982 1985 1988 1991 1994 1997 1999 2002 2004 2007 Japan Worldwide Developed countries U.S. 1-4 employees 5-19 employees 20-99 employees Over 100 employees

Source: Statistical Handbook of the World (Ministry of Internal Affairs and Communications) Source: The Census of Commerce (Ministry of Economy, Trade and Industry)

10 CORPORATE OVERVIEW

Market Presence

Domestic Market Market shares of the Group’s core operating companies in Japan

Seven-Eleven Japan Ito-Yokado Sogo & Seibu No. 1 No. 2 No. 2 Seven-Eleven Japan Ito-Yokado York-Benimaru Others 36.5% 10.3% 2.6% Sogo & Seibu Ministop 11.1% York Mart 12.2% 4.0% 0.9% Isetan Mitsukoshi Sunkus Aeon Retail 15.6% 10.9% 15.5% UNY J. Front Retailing 5.8% FamilyMart 11.0% Others 17.1% Others Daiei 50.4% Takashimaya 59.8% 5.1% 20.3% 10.9%

Notes: 1. Total store sales of Lawson and represent the simplified sum of their subsidiaries of domestic operations. 2. Net sales of Isetan Mitsukoshi, J. Front Retailing, and Takashimaya represent the simplified sum of their subsidiaries of domestic department stores. Sources: 1. Current Survey of Commerce (Ministry of Economy, Trade and Industry) 2. Public information from each company

Global Market Sales ranking by retailers worldwide in Fiscal 2011

$ Million Total Group sales: No. 1 * 420,000 $95,534 million No. 2 Net sales: 120,000 $57,055 million No. 3 No. 4 No. 5 90,000 No. 6 No. 7 No. 8 No. 9 No. 10 60,000 No. 14 30,000

0 Wal-Mart Carrefour Metro Schwarz Costco Home Walgreen Aldi Seven & i Stores Wholesale Depot Holdings

Note: Exchange rate: US$1=¥79 *Total Group sales includes the sales of Seven-Eleven Japan and 7-Eleven, Inc. franchisees Source: STORES Magazine, January 2012

Ranking by market capitalization of retailers worldwide Market capitalization ROE EPS PER PBR Company ($ million) (%) ($) (Times) (Times) 1 Wal-Mart Stores 200,742 22.5 4.52 13.1 2.8 2 Amazon.com 102,196 8.6 1.37 165.6 13.3 3 Home Depot 79,218 21.8 2.47 21.0 4.5 4 CVS Caremark 58,639 9.1 2.57 17.5 1.5 5 Inditex 56,485 28.0 4.11 22.1 5.7 6 Wal-Mart De Mexico 51,870 17.7 0.10 30.4 5.1 7 Hennes & Mauritz 50,166 6.2 1.42 24.1 8.7 8 Tesco 41,594 16.4 0.57 9.1 1.4 9 Target 38,946 18.7 4.28 13.6 2.5 10 Costco Wholesale 38,489 12.8 3.30 26.9 3.2 16 Seven & i Holdings 26,695 7.5 1.83 16.5 1.2

Note: Exchange rate: US$1=¥80.46 (as of April 27, 2012) Source: Thomson Reuters

Seven & i Holdings Annual Report 2012 11