Seven & I Holdings Co., Ltd. · TSE:3382
Seven & I — Seven & I Hldgs — Q1 2022 Earnings Presentation
27 slides from Seven & I's earnings presentation, Jul 7, 2022
Slide 1: Q1 FY2022 Financial Results Presentation
Q1 FY2022 Financial Results Presentation July 8, 2021 Seven & i Holdings Co., Ltd. Director, Senior Executive Officer Junro Ito Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 1
Slide 2: YOY Change in Existing Store Sales
YOY Change in Existing Store Sales (Figures for July are preliminary estimates) 120 140 (%) Convenience store (%) Superstore 110 120 100 100 Ito-Yokado (incl. tenants) 90 80 Ito-Yokado (food) Seven Eleven Japan 7-Eleven, Inc. York-Benimaru *Broken lines indicate comparison with two years earlier *Br
Slide 3: Q1 Consolidated Financial Results Highlights
Q1 Consolidated Financial Results Highlights (Billions of yen, %) FY2021 FY2022 YOY Variance vs FY2020 Group’s total sales* 2,660.7 2,871.4 107.9 +210.7 99.2 Revenues from 1,391.8 1,555.3 111.8 +163.5 97.4 operations Operating income 71.3 77.5 108.6 +6.1 85.8 Net income attributable to 13.9 43.0 308
Slide 4: Q1 YOY Change by Business Segment
Q1 YOY Change by Business Segment Revenues from operations Operating income (Billions of yen) (Billions of yen) FY2021 1,391.8 FY2021 71.3 Domestic CVS +13.5 Domestic CVS +8.6 Overseas CVS +75.2 Overseas CVS +0.86 Superstore +23.3 Superstore (4.5) Department Department +35.2 (0.94) store store Finan
Slide 5: Domestic CVS Operations: Seven-Eleven Japan (1)
Domestic CVS Operations: Seven-Eleven Japan (1) YOY Change of operating income (Billions of yen) Existing store sales growth & GPM (Figures on June are preliminary estimates) (%) (%) Change in GPM (left) +0.5 Existing store sales growth (right) +5.0 (0.8) *Broken lines indicate comparison with two y
Slide 6: Domestic CVS Operations: Seven-Eleven Japan (2)
Domestic CVS Operations: Seven-Eleven Japan (2) Average spending per customer Sales by merchandise category Sales Seven 7P Premium delicatessen 130 150 No. of customers Frozen foods (％) (％) Average spending per customer Wine & liquor Counter products 115 125 100 100 85 75 *Broken lines indicate comp
Slide 7: Domestic CVS Operations: Seven-Eleven Japan (3)
Domestic CVS Operations: Seven-Eleven Japan (3) Changes in purchasing Location-specific Layout tailored to product behavior merchandise assortment assortment Changes in 7-Eleven patronage DAISO products sales test verification Previous Food-centered purchasing YOY change in household goods at 20 pil
Slide 8: Domestic CVS Operations: Seven-Eleven Japan (4)
Domestic CVS Operations: Seven-Eleven Japan (4) Sales by store location Deepen optimization of sales floor to the commercial areas 120 Stores in Stores located at East Tokyo West Tokyo residential areas business sites (%) *Broken lines indicate comparison with two years earlier and suburbs Verificat
Slide 9: Domestic CVS Operations: Seven-Eleven Japan (5)
Domestic CVS Operations: Seven-Eleven Japan (5) Cost restructuring at head office Q1 YOY SG&A expenses (from 2nd half of FY2020) Accounting Store development Property rental 135 Advertising expenses restructuring personnel fee optimization Salaries & wages optimization (%) Land & building rent - Sys
Slide 10: Domestic CVS Operations: Seven-Eleven Japan (6)
Domestic CVS Operations: Seven-Eleven Japan (6) Income YOY in franchised stores Targeting sustainable growth 115 Income (Monthly amount) 1,400 Strengthening ties between Income YOY 112.3 franchisees and head office (%) (Thousand yen) Royalties revision Food loss reduction FY2021 (Ethical PJ, extend
Slide 11: Overseas CVS Operations: 7-Eleven, Inc. (1)
Overseas CVS Operations: 7-Eleven, Inc. (1) YOY change of operating income (billions of yen) Existing store sales & GPM (Figures on June are preliminary estimates) Change in GPM (left) Existing Store Sales Growth (right) *Broken lines indicate comparison with two years earlier +6.9 +17.1 +1.5 +15.0
Slide 12: Overseas CVS Operations: 7-Eleven, Inc. (2)
Overseas CVS Operations: 7-Eleven, Inc. (2) Crude Oil Price (WTI) Fuel Sales Volume & GP (CPG) 70 (USD) YOY change in CPG (Left) (￠) (%) Fuel Sales Volume Growth per store (right) 60 +20.0 +18.0 +59.8 +60.0 50 +10.0 +8.6 +39.0 +30.0 40 +4.9 +4.7 +3.5 +1.2+1.1 (0.2) (0.3) 30 ±0.0 ±0.0 (1.3) (1.2) (1.
Slide 13: Overseas CVS Operations: 7-Eleven, Inc. (3)
Overseas CVS Operations: 7-Eleven, Inc. (3) Change in customer behavior (Jan - May) Sales growth continues Growing categories since COVID-19 Increase in new Recovery of Sales vs PY (%) 2020 2021 customers + mobility Frozen Food 114.3 113.4 Alcoholic beverages 116.4 106.7 Change in consumption behavi
Slide 14: Overseas CVS Operations: 7-Eleven, Inc. (4)
Overseas CVS Operations: 7-Eleven, Inc. (4) 7NOW(Delivery Service) Approach to the Restaurant Business 7NOW Monthly sales 10X Providing high quality products using fresh ingredients prepared in the store. Offer Delivery + Drive-through Expansion of demand for Jan Mar May Jul Sep Nov Jan Mar May Incr
Slide 15: Superstore Operations: Ito-Yokado (1)
Superstore Operations: Ito-Yokado (1) YOY change of operating income (billions of yen) Factors in YOY change by store format Sales GPM Stores that implemented structural reforms +¥1.2 B (2.8) +3.7 SG&A Transfer Shokuhinkan and expenses THE PRICE to York* ¥(0.37) B (1.3) 1.1 0.65 New stores / Closed
Slide 16: Superstore Operations: Ito-Yokado (2)
Superstore Operations: Ito-Yokado (2) Main efforts to improve productivity Revenue growth Enhance operational efficiency AI-based production planning AI-based ordering, Shopping-cart checkout electric price label All stores All stores HIKIFUNE store (lunch boxes, Sushi, and delicatessen) (processed
Slide 17: Department Store Operations: Sogo & Seibu
Department Store Operations: Sogo & Seibu Factors in YOY Change of operating income YOY change of operating income (Billions of yen) by business segment SG&A GPM expenses Sales +0.65 Store-operating business ¥(0.27) B Flagship stores in the Tokyo +7.0 metropolitan area (5 stores) ¥(0.04) B (8.6) Reg
Slide 18: Financing and Cash & Deposit Balance
Financing and Cash & Deposit Balance Interest-bearing debt and Financing for Speedway acquisition cash & deposit balance (As of May 2021) Feb 28, May 31, 2021 2021 Variance Timing Amount (Billion yen) 7&iHD Short-term loans 619.9 622.6 +2.6 bond issue Dec 2020 ¥350.0B Current portion 7&iHD of Long-t
Slide 19: Appendix
Appendix Copyright (C) 2021 Seven & i Holdings Co., Ltd. All Rights Reserved. 19
Slide 20: Q1 Revenues from Operations and Operating Income by Business Segment
Q1 Revenues from Operations and Operating Income by Business Segment (Billions of yen, %) Revenues from operations Operating income YOY Variance YOY Variance Consolidated 1,555.3 111.8 +163.5 77.5 108.6 +6.1 Domestic CVS operations 232.4 106.2 +13.5 60.3 116.8 +8.6 Overseas CVS operations 664.3 112.
Slide 21: Q1 Operating Income of Major Operating Companies
Q1 Operating Income of Major Operating Companies (Billions of yen, %) Operating income Existing store Merchandise YOY Variance sales growth GPM variance Seven-Eleven Japan 60.3 115.6 +8.1 +3.3 (0.2) 7-Eleven, Inc. 17.7 106.8 +1.1 +4.7 +0.1 [Millions of dollar] [167] [109.6] [+14] Ito - Yokado 0.65 5
Slide 22: Q1 Special Losses
Q1 Special Losses (Billions of yen) FY2021 FY2022 Variance Major factors for the variance Special losses 40.6 12.4 (28.1) Mainly decrease in loss related to COVID-19 Loss on disposals of property and equipment 2.4 3.4 +0.96 Increase mainly in remodeling FOC*[(1.4)]：Business reorganization in previou
Slide 23: Consolidated B/S Summary (As of May 31, 2021)
Consolidated B/S Summary(As of May 31, 2021) (Billions of yen) Assets Feb 28 May 31 Liabilities and net assets Feb 28 May 31 Variance Variance 2021 2021 (Main items only) 2021 2021 (Main items only) Current assets 3,350.2 4,684.4 +1,334.1 Total liabilities 4,115.4 5,452.4 +1,336.9 Cash and bank depo
Slide 24: Q1 Consolidated Statements of Cash Flows
Q1 Consolidated Statements of Cash Flows CF from operating activities (left axis) CF from investing activities (left axis) 500.0 CF from financing activities (left axis) Free cash flow (right axis) 300.0 (Billions of yen) (Billions of yen) 250.0 150.0 0.0 0.0 (250.0) (150.0) (500.0) (300.0) (Billion
Slide 25: FY2022 Consolidated Financial Results Forecast
FY2022 Consolidated Financial Results Forecast (Announced on July 1, 2021) (Billions of yen, %) 1H 2H Full Year YOY/Variance YOY/Variance YOY/Variance 115.7 129.3 122.7 Group’s total sales* 6,275.0 7,274.0 13,549.0 +853.8 +1,650.2 +2,504.1 126.1 151.8 139.4 Revenues from operations 3,516.0 4,522.0 8
Slide 26: FY2022 Financial Results Forecast by Business Segment
FY2022 Financial Results Forecast by Business Segment (New Business Segment) (Billions of yen, %) Revenues from operations Operating income YOY Variance YOY Variance Consolidated 8,038.0 139.4 +2,271.2 380.0 103.7 +13.6 Domestic CVS operations 898.0 104.6 +39.2 245.6 105.1 +11.8 Overseas CVS operati
Slide 27: With Livings - Seven & i Group
With Livings - Seven & i Group The information disclosed by the Company may contain forward-looking statements. These statements are based on management’s judgment in accordance with materials available to the Company at the time of disclosure, with future projections based on certain assumptions. T