Bringing Global Quality to Customers' Daily Lives and bringing Japanese Quality to World

We currently operate Seven-Eleven stores, general merchandise stores, supermarkets and restaurant businesses in 16 countries and regions including the rapidly expanding markets in China and other Asian countries, Australia and Europe. Using this global network, we are utilizing Global MD to develop optimum products, manufacturing materials, and production bases around the world. We are focusing our energies on meeting global customer demand for quality, fashion and low-prices.

At the same time, we are striving to address the local needs of each country by molding our operations to the realities of each country, while utilizing key services and software developed in Japan. All of the above is carried out in order to enhance the strength of the brands and companies under Seven & i Holdings around the world.

Our Businesses in China Contributed to Modernization of Distribution Services in China

Seven & i Holdings operates general merchandise stores and supermarkets in Beijing, and runs general merchandise stores in Chengdu city, the capital city of Sichuan province that acts as our activity hub in China's western regions. Seven-Eleven is promoting new store development in Beijing, Tianjin and Shanghai and we are pleased to see these businesses are being favorably received by customers there.

This year, our group companies in China and Japan are also jointly developing global MD products.

Furthermore, we opened a family restaurant in Beijing in 2009. Seven & i Holdings is contributing to modernizing distribution services in China through our various businesses.

Fusing Internet, Media, and Stores to Deliver Services to the Heart of our Customers' Daily Lives

Seven & i Holdings is the only retail group that incorporates the Internet and media into its acutual stores. We fuse a variety of stores that operate in close proximity to customers, online shopping services offering a wide range of products, and the broad power of media such as TV, to create new business infrastructures that incorporate marketing and sales functions. Seven & i Holdings is working to create distribution services that are capable of responding to customers' needs in a timely manner, and that customers can come to trust wholeheartedly.

In December 2009, we launched an Internet shopping site called "Seven Net Shopping," as the core of the above concept. The site began with a wide selection of five million items ranging from our original products to hot specialty shop brands. Furthermore, Seven & i Holdings is planning to introduce brand new shopping styles by collaborating with specialists from various sectors including the entertainment, event and leisure industries.

Mobilizing Know-How and Sales Power to Improve Satisfaction and Safety in our Customers' Daily Lives

Our "Seven Premium" brand items, which are produced in conjunction with our group companies, have been gaining the overwhelming support of our customers since they were first introduced in May 2008. In 2009, we expanded the "Seven Premium" brand to include 1,100 items ranging from food to daily necessities and stationery. Combining our accumulated product development know-how and the sales power of each group company, we assemble a team for each project to work with leading manufacturers to strike a balance between outstanding quality and reasonable price. We then present our products to customers with a focus on their perspective, which includes preparing easier-to-see tags for items and manufacturer descriptions. In addition, we initiated new approaches to product development in 2009 such as listening to customers' opinions directly.

Seven & i Holdings uses the combined power of the group to bring about innovations in product development and production of a wide range of items, and through these efforts we are continuously creating new values in order to address customers' ever-changing needs.

Business Development for Responding to Customer Life Styles

Seven & i Holdings continues to develop flexible "new style" store operations according to the regional requirements and business environment of each sales area. "Lifestyle support" discount store "The Price" now has 11 outlets. Our urban-style home center is popular for its dayto- day items and repair-related services. More specialty "Seven Bi no Garden" stores, favored for their sophistication and wide product range, are opening in Ito-Yokado stores.

From Material Abundance to Spiritual Richness
— Supporting Intellectual Curiosity

Maturing societies have been changing peoples' sense of value. People are becoming increasingly enthusiastic to live the lifestyle they desire. Given this change in values, Seven & i Holdings is working to fully utilize its stores, the Internet, and media to create new services that combine the satisfaction consumers get from expanding their knowledge in their respective fields of interest with real-world experiences.

To achieve this, Seven & i Holdings plans to expand related business infrastructures by arranging tie-ups with specialized companies.

Convenient and customer-friendly payment service

"Payment" is an important step that connects customers and daily shopping activities. Seven & i Holdings issues its own cards and offers independent ATM services to improve payment options and security for customers. Furthermore, we are enhancing the user-friendliness of "nanaco" and our IY Card by increasing the number of stores that accept these cards and promoting tie-ups with outside companies.

"Seven Farm" supports Japanese agriculture while keeping in mind "food" and "environment"

The agricultural corporation "Seven Farm Tomisato" was established in August 2008 through joint capital investment from Ito-Yokado, JA, Tomisato city, and others. A "circular system" of agriculture is employed at this farm — food waste from Ito-Yokado stores in Chiba Prefecture is turned into compost to be used for cultivating vegetables that are then sold at Ito-Yokado stores. The farm is also open to the local community to increase awareness of the importance of a healthy diet and to promote a "local production for local consumption" concept. Seven Farm Co., Ltd. was launched in July 2010 as the head of the agricultural co-operation, and Seven & i Holdings plan to expand this concept to other locations, in order to further contribute to the growth of local agriculture.

Invigorating Local Communities through Collaboration with Local Governments

In order to create demand within regions, group companies including Seven-Eleven, Ito-Yokado, and York-Benimaru are promoting a "Comprehensive Partnership Agreement for Invigoration of Local Communities" in conjunction with prefectural and city governments.

This agreement has been executed between 34 local governments as of the end of June 2010. We are strengthening ties with these local governments through development of regional items utilizing ingredients and flavors particular to that region, holding fairs, and addressing tourism promotion and environment related issues.