In order to expand its North American convenience store operations, 7-Eleven, Inc. is strengthening original products, accelerating digitalization and the delivery business, creating synergies between 7-Eleven, Inc. and Speedway, and expanding business through M&A and the opening of new stores.
  With regard to the development of original products, we are taking steps to modernize facilities for the purpose of enhancing the cooking manufacturing capabilities of dedicated factories, to strengthen the value chain of original products, and to enhance their quality and lineup, but logistics disruptions, food safety problems, and the issue of competition with fast food chains and other rivals could affect the performance and financial standing of the Group.
  With regard to digitalization and the delivery business, new experience value and convenience are provided through the “7Rewards (loyalty program)” combining real stores with the speed and convenience of digital and e-commerce platforms, and we are also promoting the “7NOW” delivery service utilizing DX, 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.
  We expect the integration of 7-Eleven, Inc. and Speedway to bring about a variety of benefits such as complementary store infrastructure and store provision, and strategic opportunities. In the event that changes in the business environment and competitive situation prevent growth opportunities and synergistic effects from being realized, the performance and financial standing of the Group could be affected. In the fuel business, changes in price, environmental laws and regulations, the popularization of electrical vehicles, etc., and other factors could lead to a reduction in demand for gasoline.
  In the North American convenience store operations, we aim to achieve continuous business growth through M&A and the opening of new stores, but 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 will strengthen cooperation with 7-Eleven, Inc. and SEVEN-ELEVEN JAPAN CO., LTD. with the objective of expanding to 50,000 stores in regions other than Japan and North America by 2025, and to be operating stores in 30 countries and regions worldwide by 2030. This will consist not only of opening up new countries, but of working to expand profits by realizing the growth potential of the business in overseas markets through strategic investment and financing. In order to enter new markets, we will identify those with favorable conditions, collaborate with trusted partners to enhance brand value, and accelerate our global growth strategy. However, the development of licensees 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.

  SEVEN-ELEVEN JAPAN CO., LTD. will focus its efforts to strengthen the area of “foods” centered on “Seven Premium,” develop new store formats to adapt to changes in social structure and patterns of consumptions, build new businesses using instore products and services as a base, and further enhance business competitiveness and accelerate earnings growth.
  By blending the networks and knowledge that we have cultivated in the convenience store operations and the Group's food business, we will strengthen the product assortment by enhancing the “Traceable Vegetables,” “Frozen Food (EASE UP)” and “Seven Premium” brands developed by Ito-Yokado Co., Ltd., as well as “Seven Premium” and the new bland of “SEVEN THE PRICE,” while creating new concepts for store formats that enable us to provide a fuller lineup of fresh, frozen and new product categories, and responding to further food-related needs in a changing society. We are also moving forward with measures to strengthen new businesses, such as by developing the “7NOW” delivery service and utilizing retail media to enter the advertising business.
  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 the Superstore Operations, Ito-Yokado Co., Ltd. will accelerate the tightening focus on “food”, on which the Group strategy hinges, by withdrawing completely from the own-apparel business, consolidating operations in the Tokyo metropolitan area, and establishing and utilizing strategic infrastructure that includes processing centers in order to achieve an earning structure that enables further sustainable growth. In relation to these initiatives, external experts in transformation have been appointed to fully implement transformative measures and to manage the process.
  In the online supermarket business, we will shift to large-scale centers, use a dedicated app to extend our points of contact with customers and improve the shopping experience, and take on the challenge of providing a variety of ways for customers to receive the product, such as by enabling it to be picked up in store, or at in-store lockers, with the objective of providing new value tailored to the lifestyles and values of customers.
  Nevertheless, in the event that the restructuring of the Superstore Operations do not proceed according to plan, or that we are unable to maintain the competitiveness of the online supermarket at the current level, we may not be able to achieve the effects initially anticipated, which could affect the performance and financial standing of the Group.

  With regard to Financial Services, we will continue to focus its efforts on the ATM platform business expansion, the e-money and credit card businesses. In addition, by developing and rolling out unique financial products and services based on the “7iD,” an ID that customers can use across the Group, we will promote restructuring through a fusion of retail and finance. Though the Group has devised a full range of security and information management measures in relation to its financial and payment systems, it is impossible to completely avoid the risk that important information is leaked externally or falsified following diversification of external attacks, human errors within the Group and deficiencies in the management of subcontractors, depending on the scale of the damage, 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 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.
  From among these significant risk events, we selected the “Groupwide risks” in the table below, which have a significant impact on the Group growth strategies and, by their nature, should be addressed across the Group from the perspectives of commonality, the degree of emergence, and efficiency.