To meet increasingly complex consumer needs, SEVEN-ELEVEN JAPAN CO., LTD. is strengthening its efforts to communicate 7-Eleven’s vision and the appeal of its merchandise through a new television commercial series, social media, and other channels. In addition, by sincerely listening to customer feedback through social listening and suggestion boxes, and rebuilding two-way communication, we are working to enhance brand awareness and favorability, particularly among younger consumers. However, customer needs change unceasingly, and in the event that we are unable to provide new value, the performance and financial standing of the Group could be affected.
  In terms of merchandise, in response to the recent polarization of consumer trends between a “preference for high quality” and a “defensive consumer mindset,” we are strengthening innovative merchandise and promotional initiatives that satisfy both the desire for “small luxuries” and the sense of “getting a good deal.” In response to the trend toward a “preference for high quality,” we are making aggressive investments totaling approximately ¥300 billion to pursue added value in our merchandise and are expanding our “Live Meal” line of freshly prepared foods. As a core component of this strategy, we will expand deployment of “SEVEN CAFÉ Bakery” to approximately 18,000 stores and “SEVEN CAFÉ Tea” to approximately 10,000 stores by FY2026. Meanwhile, in response to the growing “defensive consumer mindset,” we implemented measures to support customers in managing household expenses, such as the “Onigiri & Sushi Super Sale” and our first-ever Black Friday promotion. On the service front, we have expanded the mobile ordering feature of our nationwide delivery service, “7NOW.” Regarding store expansion, we plan to open stores in new formats, including compact stores, and strategically expand into sparsely populated areas, with the goal of increasing the number of domestic stores by approximately 1,000 by FY2030. However, the Group’s performance and financial standing could be adversely affected if we fail to achieve our plans if the planned number of stores cannot be opened as scheduled, if equipment cannot be introduced according to the planned schedule due to soaring material costs and other factors, or if the anticipated effects are not achieved because consumers judge similar services offered by competitors to be superior to our own.
  In addition, to address the worsening labor shortage and strengthen support for our franchised stores, we are expanding labor-saving equipment, such as an “Employee Monitoring System.” We have also begun pilot introductions of robotics that utilize the latest technologies, such as “AI-powered Stocking Robots.” We will continue striving to improve the labor environment and enhance the productivity of store operations. However, if defects in equipment or systems are discovered and additional investments are required due to a review of specifications or other factors, this could affect the Group’s performance and financial standing.

  In order to drive further growth for the Group, 7-Eleven, Inc. is working to strengthen proprietary merchandise, promote digitalization and delivery measures, enhance efficiency and cost leadership, and grow and enhance store networks.
  We will continue to invest in differentiating our fresh food offerings, a cornerstone of our growth strategy, and accelerate the opening of new stores through 2030. Furthermore, while we aim to enhance customer experience value through the provision of freshly prepared products by expanding a model with more than 1,000 restaurant-equipped stores, issues such as logistics disruptions, food safety concerns, and competition from fast-food chains could affect the Group’s performance and financial standing.
  In terms of promoting digitalization and delivery initiatives, these include the expansion of the 7Rewards loyalty program and the 7NOW delivery network, with 7NOW operating in approximately 7,500 stores across the United States, but in the event that information security problems occur or that we are unable to respond to customer needs, the performance and financial standing of the Group could be affected.
  With regard to improving efficiency and cost leadership, we continue to keep increases in selling, general and administrative expenses below growth in sales and gross profit, while achieving cost reductions through a comprehensive review of the overall cost structure of the business, including merchandise and gasoline costs and store expenses. However, if changes in the business environment or competitive landscape prevent us from capturing growth opportunities or achieving gains in efficiency, this could affect the Group’s performance and financial standing.
  Furthermore, in North America, we aim to increase market share through M&A, strengthen store operations, and develop new standard stores. However, the performance and financial standing of the Group may be affected by the impact on the business of intensifying competition or changes in environmental laws and regulations, difficulties in securing personnel, litigation, law and order problems, and climate change and natural disasters.
  7-Eleven International LLC plans to develop Europe into the Group’s fourth major growth pillar by entering new markets and pursuing concentrated store openings through the equity model. Furthermore, in new markets and new stores, 7IN will deploy its three core strengths of merchandising, operational excellence and store network to improve and enhance the performance of its investment targets. In countries where it already operates, the company is supporting the transformation into a food-focused convenience store. It is also accelerating business growth in key markets through strategic investments.
  However, the development of the business in overseas areas is expected to be affected by political and social instability, economic fluctuations such as exchange rates and trade, and the revision and strengthening of legal regulations, including those related to the environment and data protection. If these factors limit our growth potential and prevent us from realizing the benefits and profits we initially anticipated, the performance and financial standing of the Group could be affected.

  After identifying change events that are anticipated to occur in the external environment over the medium to long term, and assessing their relevance to the growth strategies, material issues, nature of business, stakeholders, and other aspects of the Group, change events that could have a medium- to long-term impact on the growth strategies and sustainability of the Group if they were to occur in the future are designated as events in the category of management perspective risks (emerging risks). For each risk a risk owner (responsible department) is selected, which proceeds to investigate anticipated scenarios and measures. Trends in these change events are also monitored periodically and updated, and their measures are revised as necessary.
  By monitoring for the occurrence of anticipated scenarios, we seek to detect risks at an early stage, initiate measures promptly, and control the impact on the Group. Decisions on risk measures (risk taking/risk hedging) will continue to be taken at a level of management that takes into consideration such factors as the growth strategy and material issues of the Group.
  Management perspective risks (change events) identified at this point in time are as described in the following table.

  After coming to a decision based on a comprehensive consideration of the degree of impact, likelihood of occurrence, and other aspects of the various risks identified by the Company and Group companies, we select risk events that should be managed by the Company and monitor the status of various risks and execution of risk measures periodically.