Brief Summary‌‌ for the First Quarter of FY2017

Contents

Consolidated Results

Ⅰ．Financial Results P1

Ⅱ．Major Factors P2

Ⅲ．Segment Information P3

Ⅳ．Interest-Bearing Debt P4

Results and Business Performance of Major Companies

Ⅰ．Convenience Store OperationsP5

Ⅱ．Superstore OperationsP7

Ⅲ．Department Store Operations P9

Ⅳ．Food Services P10

Ⅴ．Financial Services P10

Ⅵ．Group Synergy P11

Ⅶ．Capital Expenditures, Depreciation and Amortization of P12 Major Companies

Store Information

Ⅰ．Store Openings and Closures of Major CompaniesP13Ⅱ．Store Information of Convenience Store Operations P14Ⅲ．Store Information of Supestore Operations P15

Ⅳ．Store Information of Department Store Operations P15

Ⅴ．Number of Stores by Type P16

Ⅵ．Sales Floor Space P16

July 7, 2016 Seven & i Holdings Co., Ltd.

■Consolidated Results

The consolidated financial results forecast for the fiscal year ending February 28, 2017, has been left undetermined.

The reason is that a business restructuring plan for the future of the Company's consolidated subsidiary Nissen Holdings Co., Ltd. is ongoing consideration at this point. For reference, the figures excluding Mail order services are presented.

The consolidated financial results forecast will be announced without delay as soon as it becomes possible to make a rational projection.

Ⅰ．Financial Results(Millions of yen)

Three Months Ended May 31, 2015

Three Months Ended May 31, 2016

Fiscal Year Ending Feb. 28, 2017 (Forecast)

YOY(%)

10,873,000

-

Fiscal Year Ended Feb. 29, 2016

YOY(%) YOY(%) YOY(%)

Group's total sales*12,545,189 103.3 2,560,924 100.6 10,703,064 104.6

Convenience store operations

606,214

94.0

583,727

96.3

2,675,890

98.1

Superstore operations

516,659

101.6

514,617

99.6

2,060,516

102.4

Department store operations

212,636

98.1

204,505

96.2

884,716

101.1

Food services

21,344

105.7

21,005

98.4

83,839

103.5

Financial services

47,068

107.2

48,644

103.3

192,487

108.0

Mail order services

37,801

90.6

26,604

70.4

158,732

85.4

Others

16,682

126.4

14,246

85.4

61,582

114.3

Eliminations / corporate

(17,624)

-

(18,600)

-

(72,061)

-

Operating income (loss)

81,856

105.6

81,483

99.5

352,320

102.6

Convenience store operations

66,126

111.5

68,894

104.2

304,110

109.9

Superstore operations

6,031

80.5

6,517

108.1

7,234

37.4

Department store operations

(92)

-

(1,005)

-

3,832

54.3

Food services

423

-

(125)

-

917

-

Financial services

11,552

106.0

12,779

110.6

49,697

105.3

Mail order services

(2,793)

-

(2,992)

-

(8,451)

-

Others

1,353

167.2

1,146

84.7

5,559

151.5

Eliminations / corporate

(745)

-

(3,729)

-

(10,578)

-

Ordinary income

81,181

105.0

82,385

101.5

350,165

102.5

Special gains

973

162.1

598

61.5

6,103

126.2

Special losses

5,332

76.8

8,131

152.5

52,493

145.3

Income before income taxes

76,822

108.3

74,853

97.4

303,775

97.9

Revenues from operations

6,010,000

-

2,725,000

101.8

2,125,000

103.1

886,000

100.1

87,000

103.8

205,000

106.5

-

-

58,000

94.2

(76,000)

-

389,000

-

315,400

103.7

25,300

349.7

8,200

214.0

2,100

229.0

51,400

103.4

-

-

4,600

82.7

(18,000)

-

385,700

-

184,100

-

1,440,782 97.9 1,394,749 96.8 6,045,704 100.1

Net income attributable to owners of parent

42,228 106.9 43,150 102.2 160,930 93.0

47.77 106.9

48.80 102.2

182.02 93.0

- -

Number of shares outstanding

(shares)

Average*2

884,077,346

884,180,553

884,132,485

End of period*2

884,142,321

884,199,400

884,151,095

Net income per share

yen % yen % yen % yen %

*1. Group's total sales include the sales of Seven-Eleven Japan and 7-Eleven, Inc. franchisees.

Convenience store's total sales including total store sales of Seven-Eleven Japan and 7-Eleven, Inc. for the three months ended 2015 and 2016, fiscal year ended Feb. 29, 2016 are 1,710,622 million yen, 1,749,902 million yen, 7,333,250 million yen.

*2. Excluding treasury stock

Exchange rates

Three Months Ended May 31, 2015

Three Months Ended May 31, 2016

Fiscal Year Ended Feb. 29, 2016

Income statements U.S.$1=

1yuan=

119.16

19.08

115.35

17.60

121.10

19.23

Balance sheets U.S.$1=

1yuan=

120.17

19.36

112.68

17.39

120.61

18.36

Operating income before amortization of goodwill

Fiscal Year Ended Feb. 29, 2016

Three Months Ended May 31, 2015

Three Months Ended May 31, 2016

YOY(%)

YOY(%)

YOY(%)

Total

86,959

105.7

85,598

98.4

373,552

103.1

Convenience store operationsSuperstore operations Department store operationsFood services

Financial services

Mail order services Others

68,569

6,816

1,229

423

11,971

(2,791)

1,484

111.5

82.3

43.0

- 106.1

- 172.8

70,828

7,291

(21)

(125)

13,120

(2,992)

1,228

103.3

107.0

-

- 109.6

- 82.7

314,788

10,374

9,120

917

51,392

(8,446)

5,984

110.3

46.1

73.9

- 105.4

- 155.0

Eliminations / corporate

(745)

-

(3,729)

-

(10,578)

-

(yen)

Fiscal Year Ending Feb. 28, 2017 (Forecast)

115.00

19.00

-

-

Note: Eliminations / corporate in operating income mainly reflect the Company's operating expenses relating to the Group strategy.

Fiscal Year Ending Feb. 28, 2017 (Forecast)

YOY(%)

409,000

-

(Millions of yen)

Ⅱ．Major Factors

*For results of major operating companies, please refer to page 5 to 12.

(Millions of yen)

Three Months Ended

May 31, 2016

Major Factors

YOY(%)

Group's total sales*1

2,560,924

+15,734

(1) Growth in total store sales at Seven-Eleven Japan

  • Higher total store sales due to increased stores and strong growth in existing store sales.

(2) Downward pressure from the effect of a stronger yen [23.8 billion yen]

Revenues from operations

1,394,749

(46,032)

(1) Mainly decrease of gasoline sales at 7-Eleven, Inc.

  • Decrease gasoline sales mainly due to lower crude oilprices.

[Decrease in amount excluding foreign exchange effects: 23.5 billion yen]

(2) Downward pressure from the effect of a stronger yen [15.0 billion yen]

Operating income (loss)

81,483

(372)

Convenience stores

68,894

+2,767

(1) Seven-Eleven Japan

  • Growth led by standard products such as lunch boxes, pastries, etc. Existing store sales and merchandise gross profit margin both increased.

(2) 7-Eleven, Inc.

  • Higher merchandise sales and improvement of gross profit margin led by fast food products and beverages.

Superstores

6,517

+485

(1) Ito-Yokado

  • Profit increased due to revision to promote appropriate sales promotion measures, etc., despite a decline in existing store sales and deterioration of gross profit margin

(2) York-Benimaru (Including Life Foods*2)

  • Higher income due to growth in existing store sales and improvement of gross profit margin.

Department stores

(1,005)

(913)

(1) Sogo & Seibu

  • Lower income due to decline in existing store sales and deterioration of gross profit margin.

(2)Lower income at LOFT

Food services

(125)

(549)

Lower income at Seven & i Food Systems

Financial services

12,779

+1,226

  1. Higher income at Seven Bank

  2. Higher income in non-bank operations

Mail order services

(2,992)

(198)

Lower income at Nissen Holdings

Others

1,146

(207)

Eliminations/corporate*3

(3,729)

(2,983)

  • Increase in expenses related to the Omni-Channel Strategy.

Ordinary income

82,385

+1,204

  • Income increased due to an increase in non-operating income, despite a decline operating income.

Income attributable to owners of parent

43,150

+921

*1. Group's total sales include the sales of Seven-Eleven Japan and 7-Eleven, Inc. franchisees.

*2. Life Foods is a wholly owned subsidiary which produces and sells delicatessen in York-Benimaru stores.

*3. Eliminations / corporate in operating income mainly reflect the Company's operating expenses relating to the Group strategy.

The consolidated financial results forecast for the fiscal year ending February 28, 2017, has been left undetermined.

The reason is that a business restructuring plan for the future of the Company's consolidated subsidiary Nissen Holdings Co., Ltd. is ongoing consideration at this point. For reference, the figures excluding Mail order services are presented.

The consolidated financial results forecast will be announced without delay as soon as it becomes possible to make a rational projection.

Ⅲ．Segment Infromation

Business segment information (Millions of yen)

Three Months Ended May 31, 2015

Three Months Ended May 31, 2016

Fiscal Year Ended Feb. 29, 2016

Fiscal Year Ending Feb. 28, 2017 (Forecast)

YOY(%)

YOY(%)

Composition(%)

YOY(%)

YOY(%)

Capital expenditures

46,928

92.4

49,061

104.5

52.0

238,372

123.4

363,400

152.5

Convenience store operations

Superstore operations

19,953

160.1

25,595

128.3

27.2

81,354

124.2

53,200

65.4

[18,566]

[93.0]

[57,078]

[87.2]

Department store operations

5,220

87.6

5,566

106.6

5.9

17,515

113.9

15,600

89.1

Food services

543

75.5

627

115.3

0.7

1,853

52.9

2,700

145.7

Financial services

9,454

73.4

6,744

71.3

7.2

33,422

85.5

39,400

117.9

Mail order services

1,066

105.6

391

36.7

0.4

4,766

124.9

-

-

Others

1,123

30.4

2,341

208.4

2.5

3,678

68.3

6,400

174.0

Corporate

7,730

840.9

3,942

51.0

4.2

18,240

120.4

12,000

65.8

Total

92,022

104.0

94,270

102.4

100.0

399,204

117.0

492,700

-

[87,241]

[94.8]

[374,928]

[109.9]

Depreciation and amortizat

ion

110.5

30,718

111.7

59.5

116,514

112.9

131,700

113.0

Convenience store operations

27,503

Superstore operations

5,526

112.7

6,369

115.3

12.3

23,800

115.0

25,300

106.3

Department store operations

3,356

100.8

3,370

100.4

6.5

13,569

101.3

13,200

97.3

Food services

198

135.6

228

114.9

0.4

828

116.7

900

108.7

Financial services

7,009

118.6

7,256

103.5

14.1

29,071

115.2

28,400

97.7

Mail order services

918

98.2

905

98.6

1.8

3,730

97.1

-

-

Others

752

111.5

705

93.8

1.4

2,958

110.0

2,700

91.3

Corporate

720

127.7

2,063

286.4

4.0

5,036

208.2

9,200

182.7

Total

45,984

111.2

51,617

112.2

100.0

195,511

113.5

211,400

-

Amortization of goodwill

109.6

1,933

79.1

47.0

10,677

122.6

Convenience store operations

2,443

Superstore operations

785

100.0

774

98.7

18.8

3,140

100.0

Department store operations

1,321

99.9

983

74.4

23.9

5,288

100.1

Food services

-

-

-

-

-

-

-

Financial services

419

109.4

341

81.3

8.3

1,695

108.7

Mail order services

2

102.6

-

-

-

4

50.5

Others

130

263.4

81

62.4

2.0

425

221.1

Total

5,102

106.9

4,114

80.6

100.0

21,232

112.4

Impairment loss

168.3

1,134

224.6

24.5

9,369

163.3

Convenience store operations

504

Superstore operations

558

96.9

1,424

255.0

30.7

12,273

172.6

Department store operations

314

305.9

954

303.7

20.6

3,972

225.3

Food services

86

118.3

192

221.8

4.2

636

134.9

Financial services

-

-

-

-

-

28

-

Mail order services

-

-

28

-

0.6

2,358

-

Others

-

-

902

-

19.5

161

361.4

Total

1,464

138.8

4,636

316.6

100.0

28,800

189.2

Notes: 1. Capital expenditures include long-term leasehold deposits and advances for store construction. An increase of the future amortization of assets under the "Accounting Standard for Asset Retirement Obligations" is not included.

Figures for actual results don't include goodwill and others related to the acquisition of stores, etc.

  1. Capital expenditures include investments related to openings of stores for each fiscal year and beyond.

    Corporate in capital expenditures mainly reflect the Company's capital expenditures relating to the Group strategy.

  2. In capital expenditures, figures in square brackets [ ] show the figures reflecting the securitization of assets of a new store in superstore operations.

  3. Depreciation and amortization include amortization on intangible assets. Corporate in depreciation and amortization mainly reflect the Company's depreciation and amortization relating to the Group strategy.

  4. Amortization of goodwill include only the amount record on selling, general and administrative expenses.

  5. Impairment losses include 1,320 million yen recorded as restructuring expenses in the consolidated income statement for the three months ended May 31, 2016, and 6,108 million yen recorded as the same for the fiscal year ended Feb. 29, 2016.

Three Months Ended May 31, 2015

Three Months Ended May 31, 2016

Fiscal Year Ended Feb. 29, 2016

YOY(%)

YOY(%)

Composition(%)

YOY(%)

Revenues from operations

995,804

102.1

988,780

99.3

70.9

4,056,272

102.9

Japan

North America

408,231

88.3

374,899

91.8

26.9

1,855,305

94.2

Others

37,289

106.7

31,422

84.3

2.3

136,058

103.8

Eliminations

(543)

-

(353)

-

-

(1,931)

-

Total

1,440,782

97.9

1,394,749

96.8

-

6,045,704

100.1

Operating income

74,670

99.8

71,831

96.2

88.2

288,068

97.4

Japan

North America

7,185

229.4

9,806

136.5

12.0

65,148

130.8

Others

(1)

-

(158)

-

(0.2)

(842)

-

Eliminations

2

100.8

2

103.0

-

(53)

-

Total

81,856

105.6

81,483

99.5

-

352,320

102.6

Geographic area segment information (Millions of yen)

Note: "Others" consists of the business results in China, etc.

Seven & I Holdings Co. Ltd. published this content on 07 July 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 07 July 2016 12:25:05 UTC.

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