Seven & i Holdings (3382) Status update summary

Strategic transformation and leadership

• Transitioning to a convenience store-focused business with a new global plan, clear priorities, and a restructured leadership team for faster decision-making and stronger oversight.

• Headquarters streamlined to become leaner, targeting a 50% reduction in OSG&A by FY2030 and leveraging global Centers of Excellence.

• Emphasis on core values of trust, sincerity, and embracing change to regain customer confidence and solve social challenges.

• Clear global management cadence and upgraded HD function to drive transformation and accountability.

Operational initiatives and growth drivers

• Seven global initiatives to drive value, including food differentiation, store expansion, digital delivery, and private brands, with aggressive investment in fresh food and new store formats.

• Planned investment of JPY 300 billion over five years to remodel stores and add 1,100 restaurants, enhancing food capabilities in 5,000+ stores by FY2030.

• Accelerated store openings: 1,300 new stores in North America and 1,000 in Japan by FY2030.

• 7NOW digital delivery platform expanding to cover over 50% of the U.S. population, targeting $1 billion in sales by 2025 and ¥120bn by FY2030.

• Cost control measures to keep OSG&A growth below gross profit growth, with private brands expected to grow at a 6.5% CAGR.

Financial outlook and capital allocation

• EBITDA targeted to grow 45% over five years, from JPY 0.9 trillion to JPY 1.3 trillion, with EPS nearly tripling to JPY 210 by 2030.

• Revenue from operations projected to rise from ¥10.0Tn in FY24 to ¥11.3Tn in FY30, with gross profit increasing from ¥2.7Tn to ¥3.4Tn.

• ROIC projected to rise from 4.8% to 12.6% by 2030, with debt/EBITDA ratio improving from 2.5x to ~0.6x.

• JPY 7.5 trillion in funds to be generated over five years, with JPY 3.2 trillion for growth, JPY 1.4 trillion for debt repayment, and JPY 2.8 trillion returned to shareholders.

• Capital allocation framework dedicates ~40% to growth, ~40% to capital return, and ~20% to debt paydown, with JPY 2 trillion in share repurchases committed.