Seven & i Holdings (3382) Status update summary

Strategic transformation and leadership

• Transitioning to a convenience store-focused business, moving away from a conglomerate structure, with a new global plan led by refreshed leadership and enhanced management approach.

• Headquarters streamlined, targeting a 50% reduction in OSG&A by FY2030, with global functions and talent leveraged for scale and capabilities.

• Clear global management cadence, regular performance reviews, and upgraded HD function to drive transformation and accountability.

• Emphasis on regaining founders' mentality and core values: customer trust, embracing change, and stakeholder collaboration.

• Stakeholder collaboration prioritized, including shareholders, franchisees, business partners, employees, and society.

Operational initiatives and growth drivers

• Seven global initiatives to drive value, including food innovation, store expansion, and digital delivery, with aggressive investment in fresh food and 1,100 new restaurants by FY2030.

• Store network expansion targeting a net increase of 1,000 stores in Japan and 1,300 in the US by FY2030, focusing on high-return formats.

• 7NOW digital delivery platform to cover over 50% of the US population, targeting $1B sales by 2025 and ¥120bn by FY2030.

• Private brands and proprietary products to grow three times faster than overall business, targeting a 6.5% CAGR in private brand sales.

• Cost control measures to keep OSG&A growth below gross profit growth, maintaining OSG&A below 12% through FY2030.

Financial performance and capital allocation

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

• EBITDA expected to increase from ¥0.9Tn to ¥1.3Tn, and EPS from ¥86 to ¥210, representing a 17% CAGR.

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

• JPY 7.5T in funds to be generated, with JPY 3.2T for growth, JPY 1.4T for debt reduction, and JPY 2.8T for shareholder returns; committed to JPY 2T in share repurchases.

• Capital allocation framework dedicates ~40% to growth investments, ~40% to capital return, and ~20% to debt paydown.