Seven & i : Brief Summary for the Third Quarter of FY2017

January 12, 2017 at 05:40 am EST

Brief Summary for the Third 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 Strategy 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

January 12, 2017 Seven & i Holdings Co., Ltd.

■Consolidated Results

Ⅰ．Financial Results

Nine Month Ended Nov. 30, 2015

Nine Month Ended Nov. 30, 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*18,025,141 104.9 7,909,351 98.6 10,703,064 104.6

Convenience store operations	2,040,761	98.3	1,891,437	92.7	2,675,890	98.1
Superstore operations	1,524,809	102.5	1,501,934	98.5	2,060,516	102.4
Department store operations	632,376	100.8	610,757	96.6	884,716	101.1
Food services	63,085	103.9	62,179	98.6	83,839	103.5
Financial services	144,110	107.7	148,943	103.4	192,487	108.0
Mail order services	116,053	87.8	87,169	75.1	158,732	85.4
Others	45,923	112.6	42,235	92.0	61,582	114.3
Eliminations / corporate	(53,227)	-	(55,728)	-	(72,061)	-
Operating income (loss)	261,037	104.6	274,006	105.0	352,320	102.6
Convenience store operations	235,704	112.4	241,952	102.7	304,110	109.9
Superstore operations	443	4.7	12,379	-	7,234	37.4
Department store operations	(3,271)	-	(3,546)	-	3,832	54.3
Food services	802	-	255	31.8	917	-
Financial services	37,665	101.9	38,956	103.4	49,697	105.3
Mail order services	(7,296)	-	(7,726)	-	(8,451)	-
Others	3,848	137.2	3,199	83.1	5,559	151.5
Eliminations / corporate	(6,859)	-	(11,463)	-	(10,578)	-
Ordinary income	259,408	104.1	276,401	106.6	350,165	102.5
Special gains	2,215	69.6	2,676	120.8	6,103	126.2
Special losses	28,694	116.6	106,965	372.8	52,493	145.3
Income before income taxes	232,929	102.2	172,112	73.9	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

4,513,893 100.3 4,288,929 95.0 6,045,704 100.1

Net income attributable to owners of parent

125,439 98.5 75,538 60.2 160,930 93.0

141.88 98.5	85.43 60.2	182.02 93.0	90.51	49.7
Number of shares outstanding	(shares)
Average*2	884,126,270	884,164,022	884,132,485
End of period*2	884,150,312	884,355,220	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 nine months ended 2015 and 2016, fiscal year ended Feb. 29, 2016 are 5,552,009 million yen, 5,511,859 million yen, and 7,333,250 million yen.

*2. Excluding treasury stock. Exchange rates
Nine Month Ended Nov. 30, 2015		Nine Month Ended Nov. 30, 2016		Fiscal Year Ended Feb. 29, 2016
Income statements U.S.$1= 1yuan=		120.98 19.33		108.57 16.48		121.10 19.23
Balance sheets U.S.$1= 1yuan=		119.96 18.96		101.12 15.14		120.61 18.36
Operating income before amortization of goodwill						Fiscal Year Ended Feb. 29, 2016
Nine Month Ended Nov. 30, 2015		Nine Month Ended Nov. 30, 2016
YOY(%)	YOY(%)	YOY(%)
Total		276,730	105.0	285,937	103.3	373,552	103.1
Convenience store operations Superstore operations Department store operationsFood services Financial services Mail order services Others	243,457 2,798 695 802 38,936 (7,291) 4,191	112.7 23.7 31.0 - 102.1 - 142.1	248,263 14,703 (1,475) 255 39,934 (7,726) 3,444	102.0 525.3 - 31.8 102.6 - 82.2	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	(6,859)	-	(11,463)	-	(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)

Nine Month Ended Nov. 30, 2016		Major Factors for the Change
Change		Major Factors for the Change
Group's total sales*1		7,909,351	(115,790)	Downward pressure from the effect of a stronger yen [250.8 billion yen] Decreased despite an increase in total store sales at Seven-Eleven Japan.
Revenues from operations		4,288,929	(224,964)	Downward pressure from the effect of a stronger yen [156.2 billion yen] 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: 47.4 billion yen]
Operating income (loss)		274,006	+12,968	Higher income in convenience store operations, superstore operations and financial services despite a downward pressure from the effect of a stronger yen [6.0 billion yen].
Convenience stores	241,952	+6,247	Seven-Eleven Japan 7-Eleven, Inc. Growth led by standard products such as sandwiches, fryer foods, etc. Existing store sales and merchandise gross profit margin both increased. Higher merchandise sales led by fresh food and beverages.
Superstores	12,379	+11,935	Ito-Yokado 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	(3,546)	(275)	Sogo & Seibu Lower income at LOFT Lower income due to decline in existing store sales and deterioration of gross profit margin.
Food services	255	(546)	Lower income at Seven & i Food Systems
Financial services	38,956	+1,290	Higher income at Seven Bank Higher income in non-bank operations
Mail order services	(7,726)	(430)	Lower income at Nissen Holdings
Others	3,199	(649)
Eliminations / corporate*3	(11,463)	(4,603)	Lower income mainly due to increase in depreciation and amortization related to the Group's portal website.
Ordinary income		276,401	+16,993	In addition to an increase in operating income, profit increased due to an incerase in non-operating income.
Income attributable to owners of parent		75,538	(49,901)	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 Information

Business segment information (Millions of yen)

Nine Months Ended Nov. 30, 2015		Nine Months Ended Nov. 30, 2016			Fiscal Year Ended Feb. 29, 2016
YOY(%)	YOY(%)	Composition(%)	YOY(%)
Capital expenditures	155,631	105.9	199,915	128.5	69.0	238,372	123.4
Convenience store operations	155,631	105.9	199,915	128.5	69.0	238,372	123.4
Superstore operations	68,634	129.5	42,868	62.5	14.8	81,354	124.2
Department store operations	[ - ]	[ - ]	[35,839]	[52.2]	[57,078]	[87.2]
Department store operations	15,141	124.3	12,120	80.1	4.2	17,515	113.9
Food services	1,208	47.1	1,798	148.7	0.6	1,853	52.9
Financial services	27,490	80.7	19,263	70.1	6.6	33,422	85.5
Mail order services	4,259	154.0	1,006	23.6	0.3	4,766	124.9
Others	3,181	63.5	4,133	129.9	1.4	3,678	68.3
Corporate	16,594	241.0	8,668	52.2	3.0	18,240	120.4
Total	292,142	110.9	289,773	99.2	100.0	399,204	117.0
[ - ]	[ - ]	[282,744]	[96.8]	[374,928]	100.0	[109.9]
Depreciation and amortizat	ion	113.1	91,280	106.4	59.3	116,514	112.9
Convenience store operations	85,781	113.1	91,280	106.4	59.3	116,514	112.9
Superstore operations	17,379	115.2	19,033	109.5	12.4	23,800	115.0
Department store operations	10,170	101.3	9,877	97.1	6.4	13,569	101.3
Food services	609	117.5	639	104.8	0.4	828	116.7
Financial services	21,753	117.0	21,952	100.9	14.3	29,071	115.2
Mail order services	2,787	97.5	2,646	94.9	1.7	3,730	97.1
Others	2,237	110.4	2,171	97.0	1.4	2,958	110.0
Corporate	2,973	169.8	6,431	216.3	4.2	5,036	208.2
Total	143,693	113.4	154,032	107.2	100.0	195,511	113.5
Amortization of goodwill	120.0	6,311	81.4	52.9	10,677	122.6
Convenience store operations	120.0	6,311	81.4	52.9	10,677	122.6	7,752
Superstore operations	2,355	100.0	2,324	98.7	19.5	3,140	100.0
Department store operations	3,966	100.0	2,071	52.2	17.4	5,288	100.1
Food services	-	-	-	-	-	-	-
Financial services	1,270	110.4	978	77.0	8.2	1,695	108.7
Mail order services	4	67.2	-	-	-	4	50.5
Others	343	237.8	244	71.3	2.1	425	221.1
Total	15,693	111.4	11,931	76.0	100.0	21,232	112.4
Impairment loss	155.8	8,739	121.8	19.5	9,369	163.3
Convenience store operations	155.8	8,739	121.8	19.5	9,369	163.3	7,178
Superstore operations	4,566	146.5	18,105	396.5	40.4	12,273	172.6
Department store operations	1,604	309.3	16,255	-	36.3	3,972	225.3
Food services	364	111.4	803	220.2	1.8	636	134.9
Financial services	-	-	-	-	-	28	-
Mail order services	179	-	10	5.9	0.0	2,358	-
Others	30	96.1	905	-	2.0	161	361.4
Total	13,923	161.9	44,820	321.9	100.0	28,800	189.2

Fiscal Year Ending Feb. 28, 2017 (Forecast)
YOY(%)
389,100	163.2
60,200	74.0
[53,200]	[65.4]
16,900	96.5
2,700	145.7
39,400	117.9
2,300	48.2
6,400	174.0
12,000	65.8
529,000	132.5
[522,000]	[139.2]
125,400	107.6
24,700	103.8
12,800	94.3
900	108.7
28,400	97.7
2,900	77.7
2,700	91.3
9,200	182.7
207,000	105.9

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.

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

Capital expenditures include investments related to openings of stores for each fiscal year and beyond.
In capital expenditures, figures in square brackets [ ] show the figures reflecting the securitization of assets of a new store in superstore operations.
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.
Amortization of goodwill include only the amount recorded on selling, general and administrative expenses.
Impairment losses include 1,392 million yen, 6,121 million yen, and 6,108 million yen recorded as restructuring expenses in the consolidated income statements for the nine months ended Nov. 30, 2015 and 2016, and recorded as the same for the fiscal year ended Feb. 29, 2016.

Nine Months Ended Nov. 30, 2015		Nine Months Ended Nov. 30, 2016			Fiscal Year Ended Feb. 29, 2016
YOY(%)	YOY(%)	Composition(%)	YOY(%)
Revenues from operations	2,992,783	102.9	2,967,006	99.1	69.2	4,056,272	102.9
Japan	2,992,783	102.9	2,967,006	99.1	69.2	4,056,272	102.9
North America	1,420,304	94.6	1,239,160	87.2	28.9	1,855,305	94.2
Others	102,531	108.4	83,766	81.7	2.0	136,058	103.8
Eliminations	(1,726)	-	(1,005)	-	-	(1,931)	-
Total	4,513,893	100.3	4,288,929	95.0	-	6,045,704	100.1
Operating income	208,776	97.4	221,907	106.3	81.0	288,068	97.4
Japan	208,776	97.4	221,907	106.3	81.0	288,068	97.4
North America	52,615	142.4	51,855	98.6	18.9	65,148	130.8
Others	(363)	-	233	-	0.1	(842)	-
Eliminations	8	-	9	102.8	-	(53)	-
Total	261,037	104.6	274,006	105.0	-	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 12 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 12 January 2017 10:40:17 UTC.

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	1st Jan change	Capi.
SEVEN & I HOLDINGS CO., LTD.	+6.60%	32.96B
FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V.	-9.04%	38.97B
AVENUE SUPERMARTS LIMITED	+13.53%	36.13B
SM INVESTMENTS CORPORATION	+7.57%	20.01B
COLES GROUP LIMITED	+0.31%	13.75B
JERÓNIMO MARTINS, SGPS, S.A.	-23.09%	11.85B
ICA GRUPPEN	-.--%	11.82B
CASEY'S GENERAL STORES, INC.	+12.53%	11.44B
CARREFOUR	-5.77%	11.48B
DINO POLSKA S.A.	-22.29%	8.59B

1st Jan change

Capi.

SEVEN & I HOLDINGS CO., LTD.

+6.60%

32.96B

FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V.

-9.04%

38.97B

AVENUE SUPERMARTS LIMITED

+13.53%

36.13B

SM INVESTMENTS CORPORATION

+7.57%

20.01B

COLES GROUP LIMITED

+0.31%

13.75B

JERÓNIMO MARTINS, SGPS, S.A.

-23.09%

11.85B

ICA GRUPPEN

-.--%

11.82B

CASEY'S GENERAL STORES, INC.

+12.53%

11.44B

CARREFOUR

-5.77%

11.48B

DINO POLSKA S.A.

-22.29%

8.59B

Delayed Japan Exchange Other stock markets 12:34:45 2024-04-18 am EDT			5-day change	1st Jan Change
1,988 ^JPY	+1.92%		-2.64%	+6.60%

02:54am	Seven & i Holdings Unit Completes Acquisition of Part of Sunoco LP's Business	MT
Apr. 17	Sunoco Completes European Terminal Acquisition, Station Sale to 7-Eleven -- OPIS	DJ

Seven & i Holdings Unit Completes Acquisition of Part of Sunoco LP's Business	08:54pm	MT
Sunoco Completes European Terminal Acquisition, Station Sale to 7-Eleven -- OPIS	Apr. 17	DJ
Japan's Nikkei falls as bond yield spike sinks tech, property shares	Apr. 11	RE
Japan's Nikkei drops as bond yield spike slams tech, property shares	Apr. 10	RE
Seven & i Holdings Confirms Weighing IPO for Superstore Business	Apr. 10	MT
Seven & i Holdings Attributable Profit Drops 20.1% in Fiscal 2024	Apr. 10	MT
7-Eleven Owner Weighs IPO of Superstore Business -- Update	Apr. 10	DJ
Seven & I Weighs IPO of Superstore Business	Apr. 10	DJ
Japan's Nikkei falls on caution ahead of US inflation data	Apr. 10	RE
Japan's Seven & i says it is considering sale of superstore operations	Apr. 10	RE
Seven & i Holdings Co., Ltd. Provides Earnings Guidance for the Interim Period and Entire Fiscal Year Ending February 28, 2025	Apr. 10	CI
Seven & i Holdings Co., Ltd. Announces Dividend for the Year Ended February 29, 2024, Payable on May 29, 2024	Apr. 10	CI
Seven & i Holdings Co., Ltd. Provides Interim and Year-End Dividend Guidance for the Year Ending February 28, 2025	Apr. 10	CI
Transcript : Seven & i Holdings Co., Ltd., 2024 Earnings Call, Apr 10, 2024	Apr. 10
Seven & i Holdings Co., Ltd. Announces Retirement Of Katsuhiro Goto, Representative Director, Chief Administrative Officer, Effective May 28, 2024	Apr. 10	CI
Seven & I Holdings Co., Ltd. Appoints Stephen Hayes Dacus as Lead Independent Outside Director and Chairman of the Strategy Committee	Apr. 10	CI
Seven & i considering listing of superstore business	Apr. 10	RE
Japan's Nikkei slips on caution ahead of US inflation data	Apr. 09	RE
Seven & i Holdings Considers an Initial Public Offering for its Superstore Segment, Includes its Ito-Yokado Stores	Apr. 09	CI
Seven & i Holdings Unit Completes 1.71 Billion Yen Acquisition of Convenience Group Holdings	Apr. 02	MT
Shares in Japan's Ain soar after activist fund Oasis buys 9.6% stake	Mar. 05	RE
Tranche Update on Seven & i Holdings Co., Ltd.'s Equity Buyback Plan announced on November 30, 2023.	Mar. 01	CI
Japanese Shares Hover Near 40,000 Mark as US Inflation Data Lifts Wall Street	Mar. 01	MT
Seven & i Holdings Testing Larger 7-Eleven Stores in Japan	Feb. 29	MT
Japan's Nikkei ends lower as investors book profits	Feb. 29	RE

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