Brief Summary for the Second Quarter of FY2017

Contents

Consolidated Results

Ⅰ．Financial Results P1

Ⅱ．Major Factors for the Change 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 Group Companies

Store Information

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

Ⅳ．Store Information on Department Store Operations P15

Ⅴ．Number of Stores by Type P16

Ⅵ．Sales Floor Space P16

October 6, 2016 Seven & i Holdings Co., Ltd.

■Consolidated Results

Ⅰ．Financial Results

Six Month Ended Aug. 31, 2015

Six Month Ended Aug. 31, 2016

Fiscal Year Ended Feb. 29, 2016

(Millions of yen)

Fiscal Year Ending Feb. 28, 2017 (Forecast)

YOY(%)

10,500,000

98.1

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

Group's total sales*15,310,227 104.5 5,280,494 99.4 10,703,064 104.6

Convenience store operations

1,330,761

97.3

1,247,407

93.7

2,675,890

98.1

Superstore operations

1,024,073

102.2

1,015,928

99.2

2,060,516

102.4

Department store operations

425,781

100.6

413,499

97.1

884,716

101.1

Food services

43,125

104.4

42,445

98.4

83,839

103.5

Financial services

95,296

108.1

98,615

103.5

192,487

108.0

Mail order services

79,915

87.9

57,948

72.5

158,732

85.4

Others

31,597

114.4

27,114

85.8

61,582

114.3

Eliminations / corporate

(35,558)

-

(36,792)

-

(72,061)

-

Operating income (loss)

172,459

103.1

181,466

105.2

352,320

102.6

Convenience store operations

152,328

111.3

160,237

105.2

304,110

109.9

Superstore operations

1,158

12.6

8,172

705.2

7,234

37.4

Department store operations

(869)

-

(1,823)

-

3,832

54.3

Food services

1,110

-

306

27.6

917

-

Financial services

24,123

100.5

25,786

106.9

49,697

105.3

Mail order services

(4,703)

-

(5,303)

-

(8,451)

-

Others

1,944

107.4

1,659

85.3

5,559

151.5

Eliminations / corporate

(2,634)

-

(7,568)

-

(10,578)

-

Ordinary income

170,686

102.1

182,616

107.0

350,165

102.5

Special gains

1,614

169.6

1,752

108.5

6,103

126.2

Special losses

19,445

110.5

88,087

453.0

52,493

145.3

Income before income taxes

152,855

101.5

96,280

63.0

303,775

97.9

Revenues from operations

5,770,000

95.4

2,460,000

91.9

2,070,000

100.5

843,000

95.3

82,600

98.5

203,000

105.5

129,000

81.3

57,000

92.6

(74,600)

-

353,000

100.2

309,000

101.6

11,500

159.0

4,000

104.4

300

32.7

52,000

104.6

(10,500)

-

5,000

89.9

(18,300)

-

351,000

100.2

80,000

49.7

2,994,992 99.7 2,866,167 95.7 6,045,704 100.1

Net income attributable to owners of parent

84,521 100.7 33,480 39.6 160,930 93.0

95.60 100.7

37.86 39.6

182.02 93.0

90.51

49.7

Number of shares outstanding

(shares)

Average*2

884,114,221

884,227,468

884,132,485

End of period*2

884,150,623

883,873,452

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 six months ended 2015 and 2016, fiscal year ended Feb. 29, 2016 are 3,645,996 million yen, 3,661,735 million yen, and 7,333,250 million yen

*2. Excluding treasury stock.

Exchange rates

Six Month Ended Aug. 31, 2015

Six Month Ended Aug. 31, 2016

Fiscal Year Ended Feb. 29, 2016

Income statements U.S.$1=

1yuan=

120.30

19.33

111.70

17.05

121.10

19.23

Balance sheets U.S.$1=

1yuan=

122.45

19.73

102.91

15.46

120.61

18.36

Operating income before amortization of goodwill

Fiscal Year Ended Feb. 29, 2016

Six Month Ended Aug. 31, 2015

Six Month Ended Aug. 31, 2016

YOY(%)

YOY(%)

YOY(%)

Total

182,781

103.5

189,718

103.8

373,552

103.1

Convenience store operations

Superstore operations Department store operationsFood services

Financial services

Mail order services Others

157,327

2,728

1,773

1,110

24,967

(4,698)

2,205

111.4

25.4

69.5

- 100.8

-

115.7

164,143

9,721

143

306

26,453

(5,303)

1,822

104.3

356.2

8.1

27.6

106.0

- 82.6

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

(2,634)

-

(7,568)

-

(10,578)

-

(yen)

Fiscal Year Ending Feb. 28, 2017 (Forecast)

106.00

16.00

-

-

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(%)

370,000

99.0

(Millions of yen)

Ⅱ．Major Factors for the Change

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

(Millions of yen)

Six Month Ended

Aug. 31, 2016

Major Factors for the Change

Change

Group's total sales*1

5,280,494

(29,732)

  1. Downward pressure from the effect of a stronger yen [112.6 billion yen]

  2. Decreased despite an increase in total store sales at Seven-Eleven Japan.

Revenues from operations

2,866,167

(128,825)

  1. Downward pressure from the effect of a stronger yen [70.3 billion yen]

  2. Decreased in gasoline sales at 7-Eleven, Inc.

Decreased gasoline sales mainly due to lower crude oil prices.

[Decreased in amount excluding foreign exchange effects: 46.3 billion yen]

Operating income (loss)

181,466

+9,007

Higher income in convenience store operations, superstore operations and financial services despite a downward pressure from the effect of a stronger yen [2.5 billion yen].

Convenience stores

160,237

+7,909

  1. Seven-Eleven Japan

  2. 7-Eleven, Inc.

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

Higher merchandise sales led by fast food products and beverages.

Superstores

8,172

+7,013

  1. Ito-Yokado

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

Profit increased due to revision for appropriate sales promotion measures and improvement of gross profit margin, despite a decline in existing store sales.

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

Department stores

(1,823)

(954)

  1. Sogo & Seibu

  2. Lower income at LOFT

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

Food services

306

(804)

Lower income at Seven & i Food Systems

Financial services

25,786

+1,663

  1. Higher income at Seven Bank

  2. Higher income in non-bank operations

Mail order services

(5,303)

(600)

Lower income at Nissen Holdings

Others

1,659

(285)

Eliminations / corporate*3

(7,568)

(4,934)

Lower income mainly due to increase in depreciation and amortization related to the Group's portal website.

Ordinary income

182,616

+11,929

In addition to an increase in operating income, profit increased due to an incerase in non-operating income.

Income attributable to owners of parent

33,480

(51,041)

Lower income due to an increase in special losses

*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.

Ⅲ．Segment Infromation

Business segment information (Millions of yen)

Six Months Ended Aug. 31, 2015

Six Months Ended Aug. 31, 2016

Fiscal Year Ended Feb. 29, 2016

Fiscal Year Ending Feb. 28, 2017 (Forecast)

YOY(%)

YOY(%)

Composition(%)

YOY(%)

YOY(%)

Capital expenditures

98,216

91.6

105,181

107.1

60.9

238,372

123.4

389,100

163.2

Convenience store operations

Superstore operations

54,585

209.3

33,458

61.3

19.4

81,354

124.2

53,200

65.4

[26,429]

[48.4]

[57,078]

[87.2]

Department store operations

9,062

113.3

7,879

87.0

4.6

17,515

113.9

16,900

96.5

Food services

784

39.8

1,451

185.1

0.8

1,853

52.9

2,700

145.7

Financial services

19,389

84.9

12,830

66.2

7.4

33,422

85.5

39,400

117.9

Mail order services

1,869

86.1

806

43.1

0.5

4,766

124.9

2,300

48.2

Others

1,700

43.8

3,360

197.6

1.9

3,678

68.3

6,400

174.0

Corporate

11,964

372.1

7,832

65.5

4.5

18,240

120.4

12,000

65.8

Total

197,573

112.7

172,800

87.5

100.0

399,204

117.0

522,000

132.3

[165,771]

[83.9]

[374,928]

[109.9]

Depreciation and amortizat

ion

111.9

61,048

108.6

59.3

116,514

112.9

125,400

107.6

Convenience store operations

56,226

Superstore operations

11,354

114.6

12,896

113.6

12.5

23,800

115.0

24,700

103.8

Department store operations

6,772

101.1

6,743

99.6

6.5

13,569

101.3

12,800

94.3

Food services

401

123.1

419

104.5

0.4

828

116.7

900

108.7

Financial services

14,288

117.9

14,522

101.6

14.1

29,071

115.2

28,400

97.7

Mail order services

1,854

98.1

1,807

97.5

1.8

3,730

97.1

2,900

77.7

Others

1,514

112.1

1,397

92.3

1.4

2,958

110.0

2,700

91.3

Corporate

1,460

126.9

4,156

284.6

4.0

5,036

208.2

9,200

182.7

Total

93,872

112.2

102,992

109.7

100.0

195,511

113.5

207,000

107.9

Amortization of goodwill

114.4

3,905

78.1

47.3

10,677

122.6

Convenience store operations

4,998

Superstore operations

1,570

100.0

1,549

98.7

18.8

3,140

100.0

Department store operations

2,643

99.9

1,967

74.4

23.8

5,288

100.1

Food services

-

-

-

-

-

-

-

Financial services

844

110.3

666

78.9

8.1

1,695

108.7

Mail order services

4

99.9

-

-

-

4

50.5

Others

261

271.3

163

62.5

2.0

425

221.1

Total

10,322

109.2

8,251

79.9

100.0

21,232

112.4

Impairment loss

181.0

5,902

112.1

14.4

9,369

163.3

Convenience store operations

5,264

Superstore operations

4,038

126.2

16,756

414.9

41.0

12,273

172.6

Department store operations

645

193.7

16,652

-

40.7

3,972

225.3

Food services

203

112.3

660

323.8

1.6

636

134.9

Financial services

-

-

-

-

-

28

-

Mail order services

-

-

10

-

0.0

2,358

-

Others

30

97.3

905

-

2.2

161

361.4

Total

10,182

153.0

40,888

401.5

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 529 million yen, 5,534 million yen, and 6,108 million yen recorded as restructuring expenses in the consolidated income statements for the six months ended Aug. 31, 2015 and 2016, and recorded as the same for the fiscal year ended Feb. 29, 2016.

Six Months Ended Aug. 31, 2015

Six Months Ended Aug. 31, 2016

Fiscal Year Ended Feb. 29, 2016

YOY(%)

YOY(%)

Composition(%)

YOY(%)

Revenues from operations

2,008,722

102.7

1,996,467

99.4

69.6

4,056,272

102.9

Japan

North America

917,300

93.0

812,306

88.6

28.3

1,855,305

94.2

Others

70,007

110.3

58,082

83.0

2.0

136,058

103.8

Eliminations

(1,038)

-

(689)

-

-

(1,931)

-

Total

2,994,992

99.7

2,866,167

95.7

-

6,045,704

100.1

Operating income

145,176

97.5

149,697

103.1

82.5

288,068

97.4

Japan

North America

27,507

142.3

31,863

115.8

17.6

65,148

130.8

Others

(230)

-

(100)

-

(0.1)

(842)

-

Eliminations

5

-

5

98.7

-

(53)

-

Total

172,459

103.1

181,466

105.2

-

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 06 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 06 October 2016 09:36:07 UTC.

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