Seven & i Holdings Co (3382) investor relations material

Strategic Direction and Transformation Initiatives

• Emphasis on quality, value, and convenience to drive global growth, leveraging strong store networks in Japan and North America, expanding new store formats, and QSR offerings.

• Acceleration of digital delivery (Seven Now/7NOW) in core markets, targeting $1.25B in delivery sales and 8,500 delivery stores by 2030.

• Shift from a license/master franchise to an equity model for international expansion, focusing on direct investment and management, especially in Europe, to achieve higher and faster returns.

• Comprehensive cost control and transformation programs to improve profitability, including SG&A reductions, supply chain efficiencies, and reinvestment of savings into business expansion.

• Strengthened collaboration and communication across global teams, empowering local execution while aligning on global strategies and customer-centricity.

Financial Guidance and Capital Allocation

• Consolidated EBITDA target of ¥1.1T in FY2028 and ¥1.3T in FY2030, with ROIC improving to 8.6% in 2028 and 12.6% by 2030.

• Revenue projected to grow from ¥10T in FY24 to ¥11.3T in FY30 (CAGR 2.0%), with gross profit CAGR of 3.9% and EPS CAGR of 17%.

• Capital allocation plan of ¥7.5T through 2030: 40% for growth investments, 40% for shareholder returns (including ¥2T in share buybacks), and 20% for debt repayment and other uses.

• Commitment to progressive dividend increases, share repurchases, and maintaining strong credit ratings, with readiness for large-scale strategic investments.

• Growth investments focused on global CVS business, with stricter capital efficiency criteria and disciplined approach to M&A and organic expansion.

Business Development and Operational Focus

• North America: Expansion of private brands (targeting $1.9B sales by 2030), 1,100 new restaurants, 1,300 new stores, and $400M EBITDA uplift from fuel business vertical integration.

• Japan: Store network growth (1,000 new stores by 2030), new store formats for urban/rural areas, expansion of fresh food and bakery offerings, and enhanced franchisee support.

• Australia: Successful application of equity model, with double-digit growth in fresh food, increased SKUs, and accelerated store openings beyond a 700-store plateau.

• Europe: Identified as a key white space for expansion, with a focus on major cities and direct investment in high-potential retail partners.

• Ongoing transformation in merchandising, marketing, and cost structure to drive innovation and customer engagement.