JAPA Co., Ltd.n

This brochure has been printed on recycled paper.Copyright 2010 Seven-Eleven Japan Co., Ltd.

SEVEN-ELEVENSeven-Eleven 2010 - 2011 Corporate Profile

8-8 Niban-cho, Chiyoda-ku, Tokyo, 102-8455

Telephone: 03-6238-3711 (Main)

h t t p : / / w w w . s e j . c o . j p /

Reducing 6％ gas from the green house effect is one of the task of Kyoto protocol. To be realized this task,the gas have to be absorbed 3.9％ by domestic timber. We use domestic timber as the papermaking material for producing this booklet. Our use of domestic timber contributes to the expansion of carbon absorption by Japanese forests.

Seven-Eleven was born in 1974. When the domestic consumer market was drastically changing from being a "sellers market" to a "buyers market", Seven-Eleven was born to modernize management of struggling small- and medium-size retailers to enable them to realize healthy growth and development, and enhance their productivity.Seven-Eleven ceaselessly continues to innovate to meet changing social trends and customers' needs based on a unique franchise system that draws on confidential relationships between franchisees and Headquarters, stores that use the world's largest information network, and a product development system that is capable of reflecting customers' needs in a timely manner.

2010

We received customers' support by offering a new value concept called "Time Convenience" that enabled people to shop from 7:00 in the morning until 11:00 at night (photo shows our first store, Seven-Eleven Toyosu).

Seven-Eleven stores are attracting more senior citizens and housewives than ever before due to our wide product selection ranging from delicatessen and chilled bento (chilled boxed meals), that can be stored, to articles for everyday use including detergents and kitchen utensils.

Chairman and

Toshifumi SuzukiCEO

President and

Ryuichi IsakaCOO

Convenience stores are now undergoing the most significant

turning points in the history of their existence.

Customers' lifestyles are also undergoing significant turning

points due to the advent of the aging society, the upward trend

of single- and double-income households, and the increasing

numbers of customers who "purchase daily use products at

neighborhood stores without spending extra time."

On the other hand, since the number of medium- to small-size

retailers has been decreasing nationwide, we consider the role

of Seven-Eleven as a "Company that Responds to Changes" is

expanding as we work to address our customers' needs.

Seven-Eleven is now undertaking various steps to evolve into

the convenience store of a new era by redefining the value of

convenience stores as being "convenient neighborhood stores."

We are focusing our efforts on developing a line of products and

services that are capable of better responding to our customers'

daily needs. Such products and services include the group's

"Seven Premium" private label range that includes a wide vari-

ety of products ranging from delicatessen and frozen food prod-

ucts to daily-use products, "chilled bento (chilled boxed meals)"

that feature a good balance between fresh taste and longer shelf

life, and the "Seven-Meal Service" door-to-door delivery ser-

vice of well-balanced prepared meals.

In addition, through collaboration with IT networks and group

companies, Seven-Eleven provides an e-commerce shopping

site called "Seven-Eleven Net", which is appreciated by cus-

tomers for the unique product selection it offers, "multi func-

tional copy machine" that can be used to issue travel and event

tickets, and financial services through Seven Bank ATMs in

order to provide additional convenience as service centers.

In parallel with the efforts being made to provide the service to

meet the particular needs of each individual in Japan, Seven-

Eleven is strongly promoting its globalization, too.

We are promoting our brand power as a "World-class Seven-

Eleven brand" and have set our sights on jointly developing

products with overseas Seven-Eleven licensees and manufactur-

ers as well as procuring store facilities, equipment and sharing

information systems with them globally.

Seven-Eleven is determined to move the convenience store

business into a new era by integrating together an outward-

looking standpoint with local customers' perspective.

Messages Steadfast attitude to "offer products and services from customers' points of view" supports success in times of accelerating change

Corporate Philosophies

From "Oh thanks! It's open" in 1974 From "Oh thanks! It's open" in 1974 to "Near and Convenient" in 2010to "Near and Convenient" in 2010Convenience stores receive consumers' support as a useful part of their daily lives

Modernization and Revitalization of Existing Small- and Medium-Sized Stores

Co-existence and Co-prosperity

1974

1

At the time Seven-Eleven was born, people's living hours were getting longer along with the Japanese economic growth. Seven-Eleven enjoyed overwhelming support, particularly among the younger generation, as stores that were open from early in the morning until late at night. Thirty five years later, Japan's social structure has changed to the point where there is now an increasing number of senior citizens and double-income households, both of which are rapidly increasing the need for a retailing

system that enables customers to shop for daily necessities quickly and conveniently at neighborhood stores. The long-running negative trend in the number of small- and medium-sized retailers makes the need for "neighborhood and convenient" stores even more compelling.

In order to meet these trends, Seven-Eleven is pushing forward to create new and attractive stores by reforming the product selection and services we offer.

Seven-Eleven Japan Co., Ltd.7-Eleven, Inc.SEVEN-ELEVEN (HAWAII), INC.SEVEN-ELEVEN (BEIJING) CO., LTD.SEVEN-ELEVEN CHINA Co., Ltd.

● Convenience Stores

● General Merchandise Stores

Ito-Yokado Co., Ltd.Marudai Co., Ltd.Hua Tang Yokado Commercial Co., Ltd.Chengdu Ito-Yokado Co., Ltd.

● Department Stores

Sogo & Seibu Co., Ltd.- Sogo- Seibu- Robinson

● Food Supermarkets

York-Benimaru Co., Ltd.York Mart Co., Ltd.SHELL GARDEN CO., LTD.K.K. SaneiBeijing Wang fu jing Yokado Commercial Co., Ltd.

● Manufacturing and Processing

IY Foods K.K.K.K. Terre VerteLife Foods Co., Ltd.

● Others

SEVEN & i Life Design Institute Co., Ltd.SEVEN & i Financial Center Co., Ltd.

● Specialty Stores

Mary Ann Co., Ltd.Oshman's Japan Co., Ltd.THE LOFT CO., LTD.Akachan Honpo Co., Ltd.Seven Health Care Co., Ltd.Tower Records Japan Inc.

● Real Estate / Security

Mall & SC Development Inc.IY Real Estate Co., Ltd.IKEBUKURO SHOPPING PARK CO., LTD.Yatsugatake Kogen Lodge Co., Ltd.K.K. York Keibi

● IT / Services

Seven & i Netmedia Co., Ltd.7dream.comSeven Net Shopping Co., Ltd.Seven Culture Network Co., Ltd.Seven Internet Lab. Co., Ltd.SEVEN & i Publishing Co., Ltd.Seven-Meal Service Co., Ltd.GOTTSUO BIN CO., LTD.PIA CORPORATION

● Financial Services

Seven Bank, Ltd.SEVEN & i FINANCIAL GROUP CO., LTD.IY Card Service Co., Ltd.SE CAPITAL CORPORATIONK.K. York InsuranceSeven Cash Works Co., Ltd.

● Food Services

Seven & i Food Systems Co., Ltd.- Restaurants (Denny's, Famil and others)- Fast food restaurants (Poppo and others)- Contract Foods Seven & i Restaurant (Beijing) Co., Ltd.

Seven & i Holdings Aims to Create a "New Comprehensive Lifestyle Industry"Seven-Eleven Japan is also a Member of the Group 12,771 Stores in

38 Prefectures Nationwide(As of the end of June, 2010)

We have set hard-and-fast rules — called the "Four Fundamental Rules" — to attract customers over the long term, and are implement-ing them incessantly.

Our stores carefully modify their product assortments to reflect the time of day, weather, community events and other factors in order to best meet our customers' needs.

Four Fundamental Rules Product AssortmentWe provide optimal customer service by putting ourselves in our customers' shoes and greeting every customer, serving them with a smile, helping them find the products they are looking for, and more.

Friendly ServiceOur stores always carry fresh products so that customers can shop at any time with a sense of reassurance about the food they are purchasing.

FreshnessOur stores are kept clean and tidy so that customers can always shop in comfort and quickly and easily find what they want.

Cleanliness

2 3

Hokkaido 815

Iwate 61

Miyagi 324

Fukushima 377

Gunma 357

Ibaraki 525

Saitama 875

Tokyo 1,683

Chiba 760

Kanagawa 894

Yamanashi 161

Oita 76

Miyazaki 139

Shizuoka 472

Aichi 564

Mie 40

Nara 62

Wakayama 40

Okayama 199

Hiroshima 388

Hyogo 379

1974 May TokyoJune Kanagawa

September FukushimaOctober Saitama

1975 April NaganoOctober Chiba

1978 May Hokkaido1979 February Tochigi

April FukuokaMay Shizuoka

August Ibaraki1981 December Gunma1982 May Miyagi

Yamaguchi 237

Fukuoka 669

Saga 139

Nagasaki 84

Kumamoto 200

Shimane 7

Niigata 345

Nagano 367

Fukui 22

Shiga 166

Ishikawa 13

Kyoto 183

Osaka 558

1982 August HiroshimaOctober Saga

1983 April YamanashiSeptember Yamaguchi

1986 May Niigata1987 June Kumamoto1991 March Shiga

March KyotoMarch Osaka

1993 April Okayama1995 November Hyogo1996 March Miyazaki1999 July Yamagata

2000 March NagasakiOctober Iwate

2001 June OitaJuly WakayamaJuly Nara

2002 July Aichi2005 November Gifu2006 February Mie2009 January Toyama

January FukuiFebruary Shimane

December Ishikawa

We are expanding the community-based chain of stores by increasing the number of operating areas.

Toyama 41

Gifu 74

Tochigi 341

Yamagata 134

Opening date of stores in each prefecture

In addition to playing a central role in the convenience store business, Seven-Eleven contributes to the development and operation of new products and services by collaborating with other group companies.

Seven-Eleven Business Overview Seven & i Group

A strategy has been launched to strengthen management of Seven-Eleven stores around the world by utilizing the business infrastructure cultivated by Seven-Eleven Japan.

Following last year's meeting, the "Licensees Leadership Summit" was held again this year in Tokyo to provide a forum for information exchange and discussion for licensees from vari-ous countries and regions around the world. This 2010 meeting confirmed the policy that Seven-Eleven Japan's know-how related to "product development", "store facilities", "store man-agement" and "information/distribution systems" would be shared among licensees as business infrastructure to encourage their continued growth.

Licensees around the world get together to promote globalization of Seven-Eleven

4 5

PT. Modern Putra Indonesia, with whom the area license agreement was concluded in April 2009, opened the first store in Jakarta, the capital of Indonesia, in November. The Group promoted opening of the stores primarily in business districts, and five stores are now running as of the end of March 2010. These stores are commanding attention due to their modern facilities and high-quality fast food products.

In November 2009, our first store in Indonesia and twelfth store in Asia were opened.

Seven-Eleven Business

Approximately 38,000 Stores in 16 Countries and Regions WorldwideWe aim to establish a "world-class brand" with business infrastructure created in Japan

Global network

(As of the end of March 2010 / Number of stores in Japan, Beijing, Tianjin and Shanghai is as of the end of June)

ChinaIndonesia

Singapore

Philippines South Korea

Thailand

Malaysia

Taiwan

Australia

Sweden Denmark

Japan United States

Mexico

CanadaHawaii

Denmark

191

Canada 457

United States 6,547

Mexico 1,180

Japan 12,771

Hawaii 55

Philippines 397

Australia

China(Among them, 93 are in Beijing and Tianjin, and 32 are in Shanghai)

1,680

Thailand 5,409

Malaysia 1,115

Singapore 493

Indonesia 5

177

126

Norway

Taiwan

South Korea

4,735

2,282

469

Norway

Sweden

A system in which gross profit on sales (which is the remain-ing balance after deducting Cost of Goods Sold*1 from Sales Amount) of a store is split between the franchisee and Head-quarters according to a pre-defined percentage.*1 Cost of Goods Sold = Net Cost of Goods Sold, which is the remaining balance after deducting Merchandise Shortage/Write-off and Rebate from Gross Cost of Sales

A settlement/financing system designed to enable franchisees to start their business even with a small amount of funds and to operate it stably.

A system to guarantee franchisees a certain amount of Franchisee's Gross Income*2.

*2 Franchisee's Gross Income = Income, which is the remaining balance after deducting Seven-Eleven charges from gross profit on sales

We prepare a comprehensive support system to enable franchisees to concentrate on store operation and sales.This franchise system is based on the clear division of roles and a highly transparent accounting system.

6 7

Clear Division of Roles between Franchisees and HeadquartersJoint Business for Co-existence and Co-prosperity

Seven-Eleven Business

Store Operation Consulting Services P8

Product Development and Product Information Services

P10

Leasing of Sales Equipment P21

Distribution System Services P22

Information System Services P24

P30

P30

Advertising/Promotion Activities

Accounting/Bookkeeping Services

Management of Store Staff

Franchisees Headquarters

Joint B usiness concept of equal partnership. Roles are clearly divided based on the

Gross Profit Splitting Method

Open Account System

Guaranteed Minimum

Gross Income System

Concentrate on Store Operation and Sales Supporting Store Operation

Franchisees system

(Recruitment, education and human resource management, etc)

(Order placement, sales promotion, etc)

(Sales and store operation management, etc)

Management of Products

Management of Financial Figures

The Seven-Eleven Systems that Support the Basis of a Mutual Trust Relationship

Store operation advice

FC meeting (General meeting)

After joining Seven-Eleven, I was surprised first of all by the tasty bento (boxed meals) and delicates-sen. But we cannot rely only on the attractiveness of our products. We have to strive to get the most out of our store by using our ingenuity to select products and design a sales floor that appeals to customers, as well as speaking to customers and offering taste testing.

I usually place a product that was requested by a customer on the shelf at least once. As a result, the refrigeration case of my store is filled with a variety of goods such as bean curds, deep-fried bean curds and eggs. I try different ways to select products by, for example, listening to customers' opinions.

I have extended the product assortment for daily use as well as liquors for which customers have usually decided what brand and how much they will buy before visiting my store. The greater the number of customers, the greater the frequency of impulse buys. In this way, sales of daily products are increas-ing. Thanks to the attempt, I could turn around a steady decrease in customers over the past eight years and transform it in double-digit growth.

My store sets the store's own "Basic products" from among daily products such as onigiri (rice balls) and various breads so that we can carefully observe how their sales are trending. Keeping products in stock helps customers visit us with a sense of assurance. And it also makes me more confident in my ordering quantities."

On-target advice and latest information aredirectly provided via Operation Field Counselors (OFC)

Trade shows are held twice a year

Headquarters holds a trade show twice a year at 10 different venues across the country. Through these trade shows, we introduce new products to franchisees, and we also present various proposals including how to offer services to customers, how to serve them, and how to display products more efficiently.

Creating community-based stores that accommodate the characteristics of the trading area and that meet customers' needsFranchisees' originality and ingenuity are reflected in the product assortment and design of the sales floor

8 9

Seven-Eleven Business

Managers' Meeting

Japan is divided into 15 zones with

mee t ings he ld in each zone .

Furthermore, each zone is divided

into areas, and District Office

meetings are held by each area for

the purpose of exchanging regional

information.

OFCs provide the latest information to

franchisees to support them in manag-

ing their stores. In addition, information

is also shared with employees through

store meetings.This meeting is held on a bi-weekly

basis with approximately 1,750

OFCs attending nationwide. Direct

communication among the OFCs

allows them to share the latest

information.

Zone meeting/District Office meeting

Verification of sales results

Information sharing

Serving customers/Sales

Product display Order placement

Thought Process of Order Placement

Direct Communication between Franchisees and OFC

An OFC visits each of his assigned stores at least twice a week

Sales Methods/Product Display/Serving Customers

In-Store Infrastructure Development

Trading Area Survey Methods

Information Utilization Methods

Financial Figure Analysis and Others

KumamotoHikawa Miyahara store

Mr. Hideki Noda

TokyoKatsushika Mizumoto 3-chome store

Mr. Kaoru Adachi

HokkaidoKami Shihoro-cho store

Mr. Masatoshi Matsuoka

Mr. Yuji Kitayama

OwnerOwner

OwnerOwner

FranchiseesHeadquarters

HyogoAmagasaki Kema 7-chome store

An exclusive OFC (Operation Field Counselor) visits franchisees under his charge.The OFC provides the latest information and finely-tuned advice about sales methods and other relevant issues.

Products and Services to respond to Changing Needs

Original Products only from Seven-ElevenAttractive Products are Motivating Force for Attracting Customers

Meal solutionSupports customers' food life and shop floor attractiveness

Local shopping areas near residential districts are increasingly shrinking and even disappearing. Against such a trend, Seven-Eleven offers a "meal solution" to senior citizens, single-person and double-income households from having to engage in time-consuming and potentially troublesome meal preparations. Frozen food products, chilled bento (chilled boxed meals) and in-store cooked hot snacks that can be eaten anywhere and any time, as well

as the Seven-Meal Service that delivers meals and sets of ingredients door-to-door have all been well received by customers. The meal solution service operates from locations near to our customers in order to conveniently support their food life with tasty food products. Efforts to develop and offer Seven-Eleven's original food products to make sales floors more attractive.

level technologies in each field introduce the latest product information and know-how, and propose ideas for developing original products capable of responding to customers' needs.

Know-how of specialized staff from various companies is utilizedSeven-Eleven's "Team MD"

To support the daily diets of our customers, we are mindful not just about taste but also safety and reliability.

Every raw ingredient used for preparing original products including bento (boxed meals) and other entrees is centrally controlled. Regarding materials used as raw ingredients, we maintain precise records including their production histories, which materials are used for what menus and in

what districts they are used. Furthermore, data relevant to manufacturers of raw ingredients as well as presence/absence of allergic substances and food additives are input into the database.

Centralized control of production history conducted at various steps covers raw ingredients to finished productsEfforts focused on ensuring safety and reliability

10 11

Team MD (Merchandising) <Original Product Development Steps>

Domestic and overseas manufacturers, business partners and distribution companies work together as a team to share information to develop high-quality original products.

Market research

Product development m

eetings w

ith business partners

Evaluation/advice from

specialists/chefs

Tasting by team m

embers and

evaluation by selected m

embers of the public

Consideration/determ

ination of product specifications/m

anufacturing process

Establishment of production system

Manufacturing, distribution and sales

Test sales, tasting by directors and officers

How Production History of Raw Ingredients is Managed

Data on each raw ingredient such as country of origin, factory and additives

Region-based data on raw ingredients, quantity used and duration of use, etc

(Menu Recipe Management Data)Data on raw ingredients used in each product

Raw Ingredient Management Data

Check production history from raw ingredient Check production history from sales areas Check production history from products

InformationInformationInformation InformationInformationInformation

Material manufacturers

Vendors

Raw ingredient manufacturers

Manufacturers(Product developers)

MD at Headquarters

Distribution Management Data Recipe Master

Chilled bento (chilled boxed meals)Chilled bento (chilled boxed meals) Hot snacksHot snacksChilled bento (chilled boxed meals) Hot snacks

Seven-Meal Service(Meal delivery service)

Frozen food products from "Seven Premium"

Raw Ingredient

Management Data

Recipe Master

Distribution Management

Data

In Team MD merchandising (for product development), domestic and overseas manufacturers, business partners and distribution companies in various sectors work together, with our Headquarters at the core, to improve service beyond the company's boundaries. Specialists with high-

Original products

Overwhelming Support for "Seven Premium"Global Development is also Promoted

A fair was held in cooperation with Miyazaki and Miyagi Prefectures

■ Local authorities with which the Agreement is concluded

■ Prefectures in which our stores have been opened

■ Prefectures in which our stores have not yet been opened

Every product from delicatessen and frozen food products to household products helps increase the number of new customers

Yosemite Road wine, for which marketing was launched in November 2009, was born from our first global-scale merchandising efforts and jointly promoted by six group companies in Japan including Seven-Eleven and the U.S.-based Seven-Eleven Inc. For this large project, we also teamed up with "The Wine Group (TWG)" of the U.S., which is the world's biggest retailer of top-class wines, and the Japanese wine maker "Mercian", to coordinate product development - from securing raw materials to distribu-tion - between Japan and the U.S. This unique product development system allows us to deliver high-quality products at reasonable prices based on the combined power of the group.

Global MD (Merchandising)Accomplishment of our group force worldwide

Hot sellers created thanks to their taste, quality, safety/reliability and priceWe will nurture them to become world-class brands

Seasoning Packaging Centers that are located in eight locations nationwide, develop region-limited products that suit the taste preferences of each commu-nity. These products are highly supported by customers in each community.

In addition, we promote the conclusion of Regional Revitalization Compre-hensive Partnership Agreements and other agreements between local govern-ments across Japan to make contributions to community development by imple-menting the local production for local consumption movement and exploring new business opportunities for unique products in each community.

Delivering tastes of community-based food cultureCooperation with local governments nationwide is also promoted

12 13

Sales of this wine were launched at

Seven-Eleven Beijing and other Seven &

i Group stores in China in February

2010, and are enjoying brisk sales.

Comprehensive Partnership Agreement

was concluded with

27 7prefectures and cities

Sales also launched in China

Seven PremiumSeven PremiumDining table sceneDining table scene

Seven PremiumDining table scene

Seven PremiumSeven PremiumDelicatessenDelicatessen

Seven PremiumDelicatessen

Seven PremiumSeven PremiumHousehold productsHousehold productsSeven PremiumHousehold products

Seven PremiumSeven PremiumDining table sceneDining table sceneSeven PremiumDining table scene

Our private "Seven Premium" brand was launched in 2007. Each "Seven Premium" brand product is jointly developed with leading manufacturers in respective sectors. Seven Meal is favored by customers because of the products' taste and quality that is equal to or above that of similar national brand products, as well as for their reasonable prices. Seven Meal is also

supported by senior citizens and housewives due to the fully-fledged prod-uct selection ranging from delicatessen, entrees and frozen food products, which are popular for their taste, price and volume, to seasonings and household products. Adding valuable original products to your store will help increase visit by existing customers and attract new customers.

Comprehensive Partnership Agreement was concluded with Hyogo Prefecture in April 2010

Products and Services to respond to Changing Needs Seven Premium

URL http://www.7premium.jp/

(As of the end of June, 2010)

Multi-functional Copy Machine's Wide Variety of Services Offer Additional "Close and Convenient" Service to Customers

Various new services made available with this single machineSeven-Eleven's multi-functional copy machine

The multi-functional copy machine offers highly functional services including high-quality color copying, fax transmission, clear and crisp printing of photos taken with digital cameras, and conversion of images to digital data through scanning. These services are becoming more conve-nient to use as evidenced by the acceptance of "nanaco" electronic money for payment. When connected to a network, tickets for expressway buses

are available in addition to tickets for concerts and sports games. The vari-ous services provided by the multi-functional copy machine increase the chances of contact with customers of different age levels, and make them visit your store more frequently.

A variety of services ranging from provision of sports game tickets to the ability to make a copy of one's residence certificate will attract customers to your store more frequently

Issuing of certificates through cooperation with administrative service

Tokyo's Shibuya Ku and Mitaka, Ichikawa in Chiba prefecture, and Soma in Fukushima prefecture have launched a service that permits issuing of copies of residence and seal registration certificates via the multi-functional copy machine. The number of local authorities participating in this system is expected to increase sequentially.

14 15

Scope of ticketing is expanded in the movies, professional baseball games and events

Seven & i Holdings has closed the business and

capital alliance with PIA Corporation. and made

a capital investment in Tower Records Japan Inc.

We will extend our business in the entertainment

sector by promoting sales of tickets and event-

related businesses.

Multi-functional copy machine offers these services[Seven ticket]Allows purchasing of tickets for professional baseball and J-league games and theatrical dramas.[Administrative services] (In coordination with local authorities)Customers are also able to obtain a copy of their residence certificates and seal registration certificates.[Expressway bus tickets]In addition to purchasing tickets for reserved seats, customers can also purchase tickets directly from the multi-functional copy machine.

A customer using the multi-functional copy machineA customer using the multi-functional copy machineA customer using the multi-functional copy machine Sports ticketsSports tickets

Printing of photos taken with digital cameraPrinting of photos taken with digital camera

Sports tickets

Printing of photos taken with digital camera

We offer more convenient services to customers

● Purchasing bike liability insurance (store counter, multi-functional copy machine)

● Application for door-to-door parcel service (store counter)

● Reservation for specially-prepared bento (boxed meals)

(store counter and Seven-Eleven Net)

● Midsummer gifts/year-end gifts/congratulatory or condolence gifts

(store counter and Seven-Eleven Net)

● Reservations for seasonal products (store counter and Seven-Eleven Net)

The scope of tickets handled by the multi-functional copy machine has been expanded to cover professional baseball and soccer games held across Japan to a variety of exhibitions and lecture meetings that are held in vari-ous parts of the country, not to mention newly-released movies. In 2010, we exclusively sold "Giants Support Seats" of the Players' Day through this system. The business/capital alliance with Ticket PIA will make it possible for customers to buy Ticket PIA tickets directly from the multi-functional copy machine (launching around autumn 2010). In areas around Tokyo, we started selling tickets for the "Pokekaru Club", a diverse types of hands-on one-day events. Reservations for events such as "Let's go to the popular site in the city core, the Diet!" can also be made from the multi-functional copy machine.

Launch ceremony for administrative service

Pokekaru Club Free-of-charge brochure "7 PIA"

Giants support seats

Products and Services to respond to Changing Needs A Wide Variety of Services available from Multi-functional Copy Machines

We Develop New "Ways of Selling" that Combine Stores, Internet and Media

Expanding product assortment on the InternetSeven-Eleven Net

Customized selection created with pride from unique products across Japan and from TV programsWe not only develop products but also show how to sell them

TV programs introduce products born from collaboration with entertainers Nittele Seven creates hot sellers

We enhance the royalty of your stores through collaborating with group companies including Seven Net Shopping

Seven-Eleven actively engages in utilizing payment and distribution systems for other group companies. Customers who purchased products through "Seven Net Shopping", which is the group's general online shop-ping site that opened in December 2009, and Sogo & Seibu's cosmetics shopping site "ikeseikirei", can pay for and receive the products at the store. Thanks to the above system, Seven-Eleven outlets are being recognized more than ever as "close and convenient" stores and, as a result, contribut-ing to the increasing number of customers.

16 17

Product produced via a collaboration with Gucci Yuzo A product born through collaboration with Tsutomu Sekine

TV program

Web page

TV program introduces

product information

Product information is offered over the Internet

Introduced products are

sold at actual stores

Sold on the Internet

Seven-Eleven Ito-Yokado

Seven Net Shopping Ito-Yokado Net Super Market

Seven Net Shopping

Seven-Eleven NetSeven-Eleven NetSeven-Eleven Net

Receiving at store (no charge for the service)Receiving at store (no charge for the service)Receiving at store (no charge for the service)

A wide selection of popular sake brandsA wide selection of popular sake brandsA wide selection of popular sake brands

URL http://www.711net.jp/

URL http://www.7netshopping.jp/

Through joint capital investment with Nippon Television Network Corporation and Dentsu, Seven & i Group founded "Nittele Seven" to establish collaborations between TV programs and retail businesses. We developed a new method of selling products in which Seven-Eleven stores sell products that are introduced on the "Megami no Marche (Goddess's Market)" shopping program produced by Nittele Seven. This approach is producing a steady stream of hot-selling sweets and bento (boxed meals). Entertainers and famous chefs participate in the product planning stage. They contribute to sales thanks to their public notoriety and news hooks.

Seven-Eleven Net sells sake, food products, hobby-related products and gift items across Japan over the Internet without being restricted by the shop floor space and hands them to customers at Seven-Eleven stores. Since payments can be made at the store, customers who are disinclined to make credit-card transactions on the Web can order the products they wish

to purchase safely. This is a major selling point for customers. In addition, Seven-Eleven Net functions as an "Order-taker" for the stores' neighboring customers by selling products and announcing seasonal layaways, thereby enhancing existential value of your outlet as a "close and convenient" store.

Seven-Eleven NetSeven-Eleven NetSeven-Eleven Net

URL http://www.ntv7.jp/

Products and Services to respond to Changing Needs IT and Media

Products and Services to respond to Changing Needs

Close and Convenient Teller Window Offers a Variety of Payment Functions

Seven Bank's "Everyone's ATM" accepts credit cards issued by more than 560 financial institutions across Japan

One of our customers' motivations for visiting our stores is Seven Bank's ATM services. In addition to the large number of affiliated financial institu-tions, our ATM services are highly rated for their convenience since our ATMs are installed in public squares and other locations where large num-bers of people gather such as group company stores, airports, railway stations, and expressway service areas. By utilizing the accounts of Seven

Bank, we started the "Personal loan service" in January 2010. We are extending this service as a way to further connect closely with customers' everyday lives, and aim to soon begin providing an "Overseas remittance service", to respond to the needs of the increasing number of foreign labor-ers who send money to their home countries.

Payable 24 hours a day, 365 days a yearBill Payment Services

Bill payment services for utility charges, insurance fees, mail order products, etc. are frequently used by our customers. The number of payments handled at stores has been increasing year after year since the service, which conveniently allows customers to make payments 24 hours a day, 365 days a year, was started. In 2009, the number of payments handled reached 329,700,000 with a corresponding value of approximately ¥3,072.7

billion. In addition, approximately 320 companies and public organizations have payment collection agreements with us. Bill payment services such as this one increases the frequency of customer store visits and also contrib-utes to expansion of revenues.

More than 10 million cards issuedElectronic money "nanaco"

Since the "nanaco" service was launched in April 2007, more than 10 million "nanaco" electronic money cards have been issued. nanaco has now become an established payment system among our customers due to advantages such as the way the card prevents customers from having to carry small change, ease of payment at the cash register, and the ability of customers to accumulate points for later use. One of the reasons nanaco is popular is that customers are able to charge and check the balance of their nanaco accounts at Seven Bank's ATMs. Stores where nanaco cards can be used are not limited to group companies such as Seven-Eleven, Ito-Yokado and Denny's, but also include an expanding range of other stores outside the group.

From June 2010, payment by "IY Card" and "JCB Card" has been made available at every Seven-Eleven store. Customers' method of payment have been further expanded. Regarding other major globally-used credit cards, we will begin necessary preparations to enable them to be used at our stores in the near future.

Payment with credit cards such as "IY Card" is now available

18 19

Collect payments for approx.

320 companies

Collect 323,97 million payments per year

Collect 3,072.7 billion yen per year

500,000

50,000

Number of

transactions accepted

(Unit: Thousands)

(Unit: Million yen)

1,000,000

100,000 1,500,000

150,000 2,000,000

200,000 2,500,000

3,000,000

3,500,000

250,000

300,000

4,000,000350,000

503,053503,053 641,031641,031813,157813,157

990,130990,1301,154,1191,154,119

1,390,4741,390,474

1,681,7751,681,775

2,383,5392,383,539

2,734,1842,734,184

2,950,0682,950,0683,072,7493,072,749

503,053 641,031813,157

990,1301,154,119

1,390,474

1,681,775

2,009,554

2,383,539

2,734,184

2,950,0683,072,749

69,50186,148

104,942125,712

144,429

166,994

226,995

259,127

290,474308,546

323,966

195,525

Trends in Number of Bill Payment Services Accepted, and Amount Handled

Note: The figures in 2001 and later include bill payment services for online shopping.

98 99 00 01 02 03 04 05 06 07 08 09

Bill Payment ServicesBill Payment ServicesBill Payment Services

Electronic money "nanaco"Electronic money "nanaco"Electronic money "nanaco"

Amount

handled

ATM servicesATM servicesATM services

14,626Number of ATMs installed

Seven Bank

563 companies

Number of affiliated financial institutions

(As of the end of May, 2010)

Number of "nanaco" cards issued and status of utilization

(As of the end of May 2010)

- Number of cards issued

- Monthly use frequency

- Number of stores nanaco can be used in

Approximately 11.5 million

Approximately 45 million transactions

63,056

(Breakdown: Cards: Approximately 9.86 million, Mobile: Approximately 1.64 million)

(Use per day: Approximately 1.45 million transactions)

(Breakdown: Seven-Eleven: 12,746 stores, Ito-Yokado: 163 stores, Seven & i Food Systems: 499 stores, Stores outside the group: 49,648)

Payment service

Seven-Eleven stores offer well-structured financial services including ATM services, electronic money, bill payment services and credit-card transactions.

nanaco card nanacocell-phone website

(Fiscal Year)

Processed food products

28.3%

Fast food

27.0%

Daily delivered food products

12.1%

Non-food products

32.6% Total sales amount of all chain stores

(Fiscal 2009)¥2,784.9 billion

Products recommended by

Headquarters

Approximately

4,000 items

Products carried at a store

Approximately

2,500 items

New products introduced per week

Approximately

100 items

Products replaced annually

Approximately

70%

Ice cream case Snack gondola

Magazine rack Open-case refrigerator for rice and chilled products

Hot snack case

In order to attract the attention of customers and have them purchase products, stores must not only carry an attractive range of products but also ensure the sales floor is attractive. Product display racks and refrigeration units in Seven-Eleven stores are designed to facilitate display work and maintenance, and, needless to say, to make it easy for customers to find and purchase the products they want. According to the advice, product display methods and examples of sales approaches provided by OFCs, our store layouts are designed to ensure the unique display of products is appealing to customers.

Psychology-based layout : easier to find, select and purchase displays and sales floor

The number of products recommended by Headquarters is approxi-mately 4,000. Among them, our original products play a key role in attract-ing customers due to their taste, quality and safety. In addition, stores must establish a system that is capable of carrying new products on which manu-facturers have focused their efforts, as well as products that are currently in the spotlight. These efforts support creation of stores where customers can get "what they want and as much as they want."

The "store" we create must carry a productassortment suited to the needs of the trading area

20 21

Concept and process of our Business Base

A Basic Concept of Providing an Attractive Product Assortment that Offers a New Discovery Experience for Customers Every Time They Visit our Stores

Creating Product Displays and Sales Floors that are Attractive to CustomersSeven-Eleven Utilized its Unique Know-How

We were among the first to get rid of preservatives and artificial colorings in order to deliver safe and reliable food products.

Since August 2001, Seven-Eleven has completely eliminated preservatives and artificial colorings from our original products, such as onigiri (rice ball), bento (boxed meals). We realized the above through the thorough hygiene and temperature control at dedicated plants and through our unique distribution systems.

Processed food productsNon-food productsMagazines, cosmetics, commodities,

game software, etc.

Daily delivered food productsMilk, dairy items, desserts,

fresh pastries, etc.

Soft drinks, snacks, instant noodles,

retort-packed food products, etc.

Fast foodRice products, noodles, sandwiches, salad, entree,

oden (Japanese style hot pot), etc.

Product Assortment and How to Build Sales Floor

This strategy brings many advantages to both customers and store management

We are developing various types of stores that are better suited to their location, environment and demands such as when, for instance, opening a store in a large building such as a university, hospital, hotel, public office,

or for lease. Premises - and environment-related characteristics of the loca-tion a store is opened in are reflected in store design and facilities used, not to mention the product selection.

Flexible style of shop opening suited to the location and customers' characteristics

Seven-Eleven sets up combined distribution centers by product category and temperature zone in each area. Each product is kept at an optimum controlled temperature at every stage from production to delivery to the store. This unique distribution system maintains "freshness", "good taste"

and "reliability" of our products. This combined distribution system by tem-perature zone delivers freshly-made food products such as bento (boxed meals), entree and sandwiches to stores faster.

The high-density store opening strategy = Dominant strategy that opens many stores in a certain area in a concentrated manner is an important part of Seven-Eleven's strategy. After a store is opened, we offer detailed man-agement support to enhance the quality of this Seven-Eleven store and to establish it as the "No. 1 community brand." A high density of stores is also advantageous to customers. Since the high-density store opening strategy allows installation of an exclusive bento (boxed meals)/entree commissary

near stores, customers are able to buy fresh products at any time. In addi-tion, customers can take advantage of various services such as the ATM and multi-functional copy machine at nearer stores, increasing the convenience of their daily lives. This new store opening system realizes a "close and convenient" store for customers.

Combined distribution system by temperature zonesProducts are delivered from production sites to the store at optimum temperatures

Seven-Eleven has been working hard to realize combined distribution from the time of its foundation when it was expected that the manufacturer delivered the product. Adoption of combined delivery has succeeded in substantially reducing the number of delivery trucks used from 70 trucks per day, per store to approximately 9. We deliberately plan the delivery routes so that more items can be transported with a smaller number of trucks. In this way, this system is not only contributing to curbing CO2 emissions, but also helping reducing noise.

Combined distribution has succeeded in substantially reducing the number of delivery trucks used

22 23

Concept and Process of our Business Base

Seven-Eleven Stores Deliver "Freshness", "Taste" and "Safety" Taking into Account the Environmental Impact, too.

High-Density Store Opening Strategy Enhances Response Capabilities to Community Needs

50

100 70

34

12 10 9

(Number of trucks)

0’74 ’80 ’90 ’00 ’09 (Fiscal Year)

Number of delivery vehicles per store per day

Cold chain (low-temperature distribution network) to maintain freshness of fresh vegetablesThe "Cold chain" system maintains the freshness of vegetables used for sandwiches and salads. Harvested vegetables are stored at low temperature on site and transported by delivery trucks under strict temperature-controlled conditions. They are then delivered to stores via the similarly temperature-controlled sorting center and commis-sary. Consistent temperature control from the farm to the store main-tains vegetables' freshness and quality.

Productionsite

StoreCommissaryLow-temperatureprocessing center

Appropriate temperature

30˚C

0˚C

Normal distribution method

Seven-Eleven

Chilled/Refrigerated vehicle Chilled vehicle Chilled vehicleProduction site

Kept at low temperature after harvesting

Sorted for delivery to each commissary

Processed for sandwiches and salads, etc

Hospital Public office

Large building University campus

Gas station

Seven-Eleven's Distribution System (Combined Distribution System by Temperature Zones)

Rice product combined distribution center

Bento (boxed meals)Onigiri (rice ball)Fresh pastry, etc

Frozen product combined distribution center

Ice creamFrozen food productsIce cubes, etc

Magazine distribution center

Magazines/books

Chilled product combined distribution center

SandwichesSalads and entréeNoodlesMilk, dairy items, etc

Ambient temperature consolidated distribution Delivery Center

Soft drinksInstant noodlesAlcoholic beveragesGeneral merchandise, etc

Three times a day

Seven times a week

Six times a week

Three to seven times a week

Three times a day

Dominant Strategy contributes to Store Management

Increased awareness of chain stores More frequent visits to stores by customers Improved distribution efficiency

Improved advertising / sales promotion efficiency Improved store operation consulting service quality

Distribution Systems and Dominant Strategy

Kept at ambient

temperatureKept at -20˚C

Kept at 20˚CKept at 5˚C

NetworkNetworkNetwork NetworkNetworkNetwork

NetworkNetworkNetwork NetworkNetworkNetwork

Sharing information via staff meetings will enable the staff in charge of each sales floor to generate hypotheses before placing orders, and to verify the results. In this way, the store as a whole will be able to respond to the needs of customers.

Enhance the accuracy of orders you place by sharing information with the staff in charge of each sales floor.

Item-by-item management is the basic of store operationUtilize world-class network to support franchisee

24 25

Concept and Process of our Business Base

Creating a Store Supported by Customers Following the Steps of "Hypothesis", "Ordering" and "Verification"

Store

Various kinds of information are displayed in an easy-to-understand format using animated and still images. Such information includes financial data, sales information for each time zone, target products of promotional TV commercials, information about new products to be released in the near future, regional weather and event information, and examples of product display.

One of the world's largest information networksOFCs' mobile PCs

OFCs can provide timely advice by referencing order/sales data of a s s i g n e d f r a n c h i s e e s t o re s displayed on screen.

District Office (D/O)

Combined Distribution Center (CDC)

Manufacturers/Business partners

D/O office provides accounting/ bookkeeping services such as creation of databases of stores' various accounting books.

The combined distribution system by temperature zones a l lows scheduled delivery of products while also maintaining their fresh-ness.

Deal with orders from stores by rece iv ing o rders on l ine and manufacture/ship the products.

SC (Store Computer)

POS register Scanner Terminal (ST) Graphic Order Terminal (GOT)

Weather forecast screen

Distri bution Distribution

Network

Commu nication

Sales/event calendar Product information screen

Sales of products vary depending on various factors including tempera-ture, weather, community events, and advertising and sales promotion activities conducted in a way that is timed with the introduction of a new product. The products that sell well vary depending on the day of the week and time zone. You must recognize sales trends of the products on a single item basis, generate hypotheses based on these trends, place orders, and

then confirm and verify sales. Item-by-item management refers to the repeating of the above cycles in order to identify the product selection that are being demanded by customers.

At the instant a payment is made at the register, sales data is collected and transmit-ted to Headquarters through the SC. Data is accumulated, and used for product selection and sales promotion activities. This system also supports electronic money "nanaco".

ST is used for check-in, registration of prod-uct d isp lay pos i t ions, and f reshness management. It retrieves various data into the SC quickly to support accurate and efficient product management.

Information system

HeadquartersFranchisees' store operation and sales promotion activities by stores are supported through accumulation, management and analysis of information.

GOT allows confirmation of sales data, prod-uct information, weather and event informa-tion to enable effective ordering for the sales floor.

Data related to sales and price changesData related to sales and price changes Data related to delivery, inspection and product displayData related to delivery, inspection and product display Ordering/Sales dataOrdering/Sales data

SEVEN-ELEVEN FOUNDATIONWe Work Together with Communities to Solve Social Issues and Behave as a Reliable and Sincere Company

We work to reduce greenhouse gas emissions by promoting energy-saving measures at stores.

Seven-Eleven Memorial Foundation was inaugurated to extend the circle of more sustainable social action

When Seven-Eleven marked its 20th anniversary in 1993, Headquarters set up "Seven-Eleven Midori no Kikin (Green Foundation)" along with the franchisees to make environment-oriented social contribution. Since then we have been supporting citizens' environmental groups and working toward environmental protection and preservation based on contributions

from customers and donations from Headquarters.It was turned into a corporate entity "Seven-Eleven Memorial Founda-

tion" in March 2010 to extend the circle of activities.

Safety Station Activities and Efforts to Fulfill our Social Responsibility

Safety Station Activities refer to the utilization of Seven-Eleven stores, that are open 24 hours a day, 365 days a year, as safety and security bases for the community. Cooperating with police stations, police boxes, the Japan Traffic Safety Association and fire stations, we are promoting activi-

ties to create safe and secure communities. In addition, linking with juve-nile support centers and PTAs, we are engaged in contributing to the sound upbringing of youth.

26 27

In addition to the nature study held in Iida Plateau for primary and junior high school students, this institute is working together with community members to preserve and protect the natural environment and to make this area livable for ibises.

Contributing to beautification of towns as a community member

Owners of Seven-Eleven franchise stores, employees and Seven & i Group companies jointly conduct simultaneous nationwide litter-cleaning activities in the districts adjacent to our offices and stores on a bi-annual basis.

Crime/Disaster Prevention Measures

Safety Measures

Strengthening the Efforts to Raise Morally Strong

Young People

● Never selling alcohol or cigarettes to minors

● Never selling adult-oriented magazines to children under 18 or allowing them to read such magazines

● Help preventing juvenile delinquency by preventing juveniles from engaging in acts outside stores that may be a nuisance to neighbors

● Strengthening voluntary crime prevention system against robberies and shoplifting

● Calling 110 (Police) or 119 (Fire Dept./ Ambulance) in an emergency when a disaster, accident or medical crisis occurs

● Functioning as an emergency shelter for women and children

● Extending nursing care to elderly and physically disabled people and make contacts for such people

● Transmitting and providing safety information to people in the community

Simultaneous Nationwide Litter-Cleaning Activity

Operation of "Kuju Furusato Shizen Gakko (Kuju Home Eco-Institute)" in OitaIn order to restore the forests by Lake Shikotsu that were severely damaged by a

typhoon in 2004, we launched the "Executive Committee for Restoration of Typhoon-damaged Forests by Lake Shikotsu." Citizens, as "foster parents", plant trees on the 100-hectare plot.

Forest restoration activity by Lake Shikotsu in Hokkaido

Seven-Eleven received this award for its positive efforts to promote energy-saving measures at its franchise stores.

Awarded the Energy Conservation Center Chairman's Prize in "Energy Conservation Award" held in 2009 by the Ministry of Economy, Trade and Industry

An example of an environment-friendly store LEDs for in-store lighting

Safety Station Poster Prevention of sale of adult-oriented magazines to those under the age of 18

Warning on the POS register screen

In order to respond to the serious global issue of global warming by reducing emissions of greenhouse gases such as CO2, Seven-Eleven is promoting the opening of new environment-conscious stores by, for instance, employing LEDs for store signs and sign poles, using highly efficient in-store lighting, and floor materials with high reflectance ratio,

and saving energy used for hot-water supply equipment.The latest type of environment-conscious stores are aimed at reducing

power consumption by 30% or more compared with existing stores by installing solar power generation panels on roof tops and skylights as well as using LEDs for in-store lighting.

Concept and Process of our Business Base CSR (Corporate Social Responsibility)

Type A

28 29

Based on Thorough Surveys and Close Communication, We Carefully Support You up to Opening Day

1. Visiting a potential owner

The Recruit Field Counselor (RFC) ex-plains to the potential owners about what is needed to become a Seven-Eleven fran-chisee, consults with them, and answers any questions they have.

5. Explanation of the Franchise Agreement details

RFC explains the agreement item by item so that the potential owners know what they have to comply with as a franchisee. This explanation covers, for instance, the roles of owners and Headquarters.

8. Store layout and design

The construction and development department at Headquarters plans store layout and designs a store that is easy to use and easy to work in. After the design has been completed, the store owners sign the Store Con-struction Contract Agreement.

2. Researching locations, trading areas and the market

The RFC conducts multilateral and de-tailed research on 245 items to determine whether the location and the trading area are suitable for opening a franchise store. The RFC analyzes and studies the col-lected data from various angles.

3. Introducing the system

The RFC explains in detail about Seven-Eleven's unique store operation method and general store management principles until the potential owners understand all necessary information.

4. Internal screening

The RFC receives a financial plan and fi-nancial documents etc. and Seven-Eleven Headquarters analyzes plan details.

Explanation, Research and Screen

7. Signing of franchise agreement

After having thoroughly considered the Seven-Eleven system and under-stood the details of the agreement, the potential owners make a final de-cision and conclude the Franchise Agreement.

6. Consideration and decision-making by owner

The potential owners carefully con-sider the details of the agreement and make a decision as to whether they will sign the Franchise Agree-ment.

Type C

The district manager interviews the poten-tial owners to get final confirmation of their understanding and consent of the married couple or family with regard to Seven-Eleven operation.

Headquarters introduces properties that are considered to be closest to the potential owners' wishes.After they check the properties, they select the one they prefer.

Seven-Eleven's common franchise system and mechanism and the profit calculation method etc. are explained.

At a later date after the meeting, the person in charge visits and interviews the potential owners (basically, married couple).

Explanation and Screen

Com

mon steps for Type A

and C

Build a Store

After having thoroughly considered the Seven-Eleven system, the poten-tial owners sign the Franchise Agreement.

Sign the Agreement

13. Store opening

The owner must be well pre-pared to welcome customers.After the store is opened, an Op-eration Field Counselor (OFC), who acts as a mediator between the owners and Headquarters, will support the franchisees in every aspect of store operation.

Congratulations! Store Opening

Before beginning to operate a store, the potential owners work at an existing store for a short period of time to gain hands-on experience as owners and to judge wheth-er they have the aptitude required to be a store owner.

Make a Decision

The potential owners visit an exist-ing Seven-Eleven store owner and listen to their opinions about opera-tions in order to deepen their under-standing.

Sign the AgreementMake a Decision

CeremonyPrepare for Store Opening

RFC explains the agreement item by item so that the potential owners know what they have to comply with as a franchisee. This explanation covers, for instance, the roles of owners and Headquarters.

From the Franchise Agreement to Store Opening

5. Interview with the district manager 6. Checking of the potential properties for the store

1. Participation in an owner recruiting explanatory meeting

2. Primary interview

Easy-to-understand lectures are provided using textbooks and VTRs that explain the Seven-Eleven system. Trainees actu-ally operate information devices to learn how to use them.

Potential owners practice actual every-day operation and learn how to serve customers at a corporate store in each district. One trainer is assigned to pro-vide detailed training to 2 to 4 trainees.

Training for Owner

9. School training (5 days) 10. In-store training (5 days)

8. Signing of franchise agreement

7. In-store experience3. Visiting of existing stores 4. Explanation of the Franchise Agreement details

11. Preparations before store opening

Before opening the store, the owner is expected to communicate with employ-ees in order to share the necessary information. The owner then directly visits neighborhood residents to notify them of the opening of the store.

12. Turn-key

This refers to the ceremony held the day before the opening. The owners are presented with the store key along with a training completion certificate.

0’95

14,77116,090

17,409 18,481 19,639 20,466 21,140 22,13223,431 24,408 24,987 25,335 25,743

27,625 27,849

5,000

10,000

15,000

20,000

25,000

(Hundred million yen)

(Fiscal Year)

(Fiscal Year)

’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09

0’95

6,373 6,8757,314 7,732 8,153 8,602 9,060

9,69010,303

10,826 11,310 11,735 12,034 12,29812,753

2,000

4,000

6,000

8,000

10,000

12,000

(Stores)

’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09

Daily

16%

Four to five times a week

Customers who visit at least twice a week

Source: Research on number of customers conducted by our company (2009)

13%

59%

Two to three times a week

30%

Once a week

15%

2 to 3 times a month9%

Others

17%

Under 20 years old

20 to 29 years old

30 to 39 years old

40 to 49 years old

Population composition ratio in Japan

according to age(%)

50 years old and older

Average number of customers

’99 ’04 ’09 ’09Source: Statistics Bureau, Ministry of

Internal Affairs and CommunicationsSource: Research on number of customers

conducted by our company (2009)

14

14

949 985 1019

’94

11

936

12

18

37

22

20

35

17

22

15

22

29

12

2844

13

14

11

18

17

23

22

10

30 31

Conditions of the Agreement

List of Agreement Conditions Corporate Outline

Corporate Outline of Seven-Eleven Japan Co., Ltd.

Seven-Eleven Japan Co., Ltd.

Name:

Representative:

Date of establishment:

Capital:

Number of employees:

Seven-Eleven Japan Co., Ltd.

Chairman and CEO

Toshifumi Suzuki

President and COO

Ryuichi Isaka

November 20, 1973

¥17.2 billion

5,763 people

List of Executives

Business Performance and Data

(As of the end of February, 2010)(As of the end of February, 2010)

(As of the end of May, 2010)

Seven-Eleven Loan Partner Banks Representative:Chairman and CEO

Toshifumi Suzuki

President and COO

Ryuichi Isaka

DirectorVice PresidentSenior Executive Officer

Kazuki FuruyaDirectorManaging Executive Officer

Yoh MitaniDirectorManaging Executive Officer

Masao EguchiDirector

Tomio NishikawaDirector and Executive Officer

Katsuhisa KonukiDirector and Executive Officer

Ryoji Sakai

AuditorAuditor

Hisashi Seki

Auditor

Norikazu TsudakaAuditor

Hisashi Kino

Executive OfficerManaging Executive Officer

Yasushi Kamata

Executive Officer

Akira Fukuoka

Executive Officer

Isamu Hirai

Executive Officer

Kazuhisa Sato

Executive Officer

Fumihiko Nagamatsu

Executive Officer

Akio Miyashita

Executive Officer

Shizuma Noda

Executive Officer

Keiko Fujimoto

Executive Officer

Akira Masuda

Executive Officer

Akira Ushijima

Executive Officer

Fumio Inoue

Executive Officer

Yoshio Watanabe

● Total sales amount of all chain stores in Japan

● Total number of stores in Japan● Average number of customers per day according to

age group (per store)

● Frequency of costomer visits

Seven-Eleven Charge

*1 Consumption tax included *2 Refer to page 6 *3 Refer to page 7∗ The owners will get to know more about details of the agreement when they read through the "Key Points Overview of the Franchise Agreement" and "Agreement".

Guaranteed minimum income

Utilities paid by

Possession or leasing of the land/

building

Agreement term

Operation style

Independent business

owner

Independent business

owner

15 years

15 years

Possessed by the owner or leased

Possessed by Headquarters or leased

Headquarters: 80%Franchisee: 20%

Headquarters: 80%Franchisee: 20%

3,075,000 yen*1

<1> 525,000 yen*1

<2> 1,050,000 yen*1

<3> 1,500,000 yen

2,550,000 yen*1

<1> 525,000 yen*1

<2> 525,000 yen*1

<3> 1,500,000 yen

Agreement type

Type A

Type C

Deposit upon signing an agreement income<1> Training fee<2> Store opening preparation charge<3> Investments at store opening

<1> Training fee525,000 yen(Including 25,000 yen consumption tax and other charges)

<2> Store opening preparation charge1,050,000 yen(Including 50,000 yen consumption tax and other charges)

<3> Investments at store opening1,500,000 yen(Including 25,000 yen consumption tax and other charges)

Breakdown of deposit upon signing an agreement income (For type A)

Incentive Charge

1. Standard on daily salesAverage daily sales throughout the year is ¥300,000 or above

2. Annual gross profit on salesWhen ¥50 million or more and below ¥70 million

When ¥70 million or more

(Breakdow

n)

Gross profit on sales*2 x 45%.(43% for 24-hour operation stores)● Incentives for stores in operation

for 5 years or longer(The charge is reduced under a certain condition.)

Advertising Activities● Advertising expenses for sales promotions (approximately 22 billion yen

per year) are borne by Headquarters.

Employees' Independence Support System

● When an employee, who has worked at a Seven-Eleven store for five years or more in total, opens a new store or inherits an existing store as an owner or as a partner, the "incentive charge for the stores five years in operation" is applied from the date of opening.

Incentive System for Multi-store Operation● When an owner who is running a store for full five years has opened two

or more additional storesThe incentive charge for the five-year operation is applied to the multiple stores ahead of timeAccounting/Bookkeeping Services

●

● Payment made on behalf of franchisees and store operation information materials provided by D/O.

Guaranteed Minimum Gross Income System(Gross Profit on Sales – Seven-Eleven Charge)● For a Type A Agreement, this system guarantees 19 million yen as the

franchisee's gross income.● For a Type C Agreement, this system guarantees 17 million yen as the

owner's minimum gross income.(The above is applicable for 24-hour operation stores for both Type A and Type C.)

Supporting Systems for Staff Members● Reserves in preparation for the owners and their spouses' death,

disease or retirement, and condolence payments, compensation payments and reserves for full-time employees' benefits.

● Compensation payments to pay employees for injuries sustained while they are working or commuting.

Others● 80% of utility expenses are borne by Headquarters (approximately 28

billion yen per year)● 15% of costs incurred for defective items (unsold items disposed of) are

borne by Headquarters (approximately 10 billion yen per year)● Part of non-life insurance premiums borne by Headquarters

Quarterly physical inventory check

Backup Services and Systems for Franchisees

∗ The incentive charge is computed and allocated on a monthly basis.When the sales on an annual basis is achieved, the charge applied to the unachieved month is adjusted (reduced) for and refunded in the 13th month.Even if sales on an annual basis were not achieved, the charge is applied as is to the month concerned, and adjustment and refunding of the charge in the 13th month are not carried out.∗ The incentive for a consigned management store becomes eligible after five full years have elapsed from the date it became a Type C store and met the criteria, because the period of the consignment is not included in the number of operating days.

Total operating revenue ¥535.018 billion

Operating income ¥156.22 billion

Ordinary income ¥164.445 billion

Net income ¥92.439 billion

Total sales amount of all chain stores in Japan ¥2,784.997 billion

Number of stores (in Japan) 12,753

Results for the period ending February 2010

(Seven-Eleven Japan only)

The Seven-Eleven charge is reduced according to the set criteria on a monthly basis after a number of days has accumulated up to five full years of operation beginning from the day the store first opened. This incentive is applicable from the day after the month that marks the completion of five years.(The actual application begins from the next month of the sixth anniversary of the opening.)

Description of Incentive Charge

Gross profit on sales*2 x slide-charge rate

( )( )For 24-hour stores, the gross profit on sales is reduced by 2%.● Incentives granted for stores that

have operated for 5 years or longer(The charge is reduced under a certain condition.)

( )( )14 million yen per year for non-24 hour stores

Franchisee's Gross Income*3

17 million yen per year for stores open for 24 hours

( )( )16 million yen per year for non-24 hour stores

Franchisee's Gross Income*3

19 million yen per year for stores open for 24 hours

Trainees' expenses for classroom tuition and hands-on training in 10-day training program (including meal expenses and accommodation fees).

This charge covers various preparatory operations required for opening implemented by Seven-Eleven to prepare the store for opening by a franchisee. These preparations range from store planning before the agreement to product display.

The above is the minimum amount to be prepared by the franchisee as the owner's capital to cover part of the costs products stocked at the time of opening, cash for change, costs for store fixtures, equipment and consumables, and 500,000 yen for franchise guarantee deposits (the franchisee makes payment of the above amount to Seven-Eleven, and costs beyond the above are procured by Seven-Eleven and financed to the franchisee).

The charge is reduced by 1% for the gross profit on sales

The charge is reduced by 1% for the gross profit on sales

The charge is reduced by 2% for the gross profit on sales

City banksMitsui Sumitomo, Resona, Mizuho Corporation, Tokyo-Mitsubishi UFJ

Regional banksHokkaido District / Hokkaido, HokuyoTohoku District / Iwate, Toho, 77 Bank, Yamagata, ShonaiKanto, Koshinetsu, Tokai District / Yokohama, Chiba, Chiba Kogyo, Keiyo, Ashikaga, Joyo, Gunma, Musashino, Yamanashi Chuo, Hachijuni, Daishi, Hokuetsu, Shizuoka, Suruga, Juroku

Hokuriku District / HokkokuKansai District / Kyoto, Shiga, Nanto, Kiyo, Hyakugo, Minato, Kinki Osaka

Kyushu, Chugoku District / Fukuoka, Nishi-Nippon City, Saga, Eighteenth Bank, Shinwa, Higo, Oita, Miyazaki, Yamaguchi, Hiroshima, Momiji, Chugoku

OthersChuo Mitsui Trust and Banking, Shokochyukin Bank, Ichii Shinkin Bank, Fukuoka Hibiki Shinkin Bank

(As of 16 June, 2010)

32

November

May

June

May

September

January

August

October

November

August

October

February

May

August

March

April

October

March

November

November

December

June

September

March

May

October

February

November

April

October

May

June

January

March

April

June

November

December

October

March

November

York Seven Co., Ltd. establishedLicense and area service agreements concluded between The Southland Corporation, USA (now, 7-Eleven, Inc.)

First store opened (Toyosu store, Koto-ku, Tokyo)

24-hour operation began (Toramaru store, Koriyama-city, Fukushima)

Total number of stores reached 100

Integration of suppliers and combined distribution started

Corporate name changed to Seven-Eleven Japan Co., Ltd.

Order placement using Terminal Seven launched

Listed on the Second Section of Tokyo Stock Exchange

Total number of stores reached 1,000

Listed on the First Section of Tokyo Stock Exchange

POS (Point of Sale) system introducedEOB (Electronic Order Blank) ordering system introduced

Total number of stores reached 2,000

Computers which display graphic information form introduced

Interactive registers introduced

Three-times-daily delivery of rice products began

Total number of stores reached 3,000

Tokyo Electric Power Bill payment service started

Tokyo Gas Bill payment service started

The system to keep the temperature to 20˚C for rice products(factories - delivery vehicles - display cases) started

Sale of prepaid cards started

The Southland Corporation's Hawaii operations acquired

Total number of stores reached 4,000

The Fourth Generation Integrated Store Information System Introduced

Acquired the shares of the Southland Corporation and started participation in the management

Implementation of ISDN (Serviced by NTT)

New Headquarters Information System introduced

Total number of stores reached 5,000

Seven-Eleven Midori no Kikin (Green Fund) established

Large ice cream display cases installed

Chilled open-case refrigerators installed

Total number of stores reached 6,000

Mail-order purchase bill payment service started

New display cases (Gondola) installed

Weather information system introduced

Sale of international phone cards started

Total number of stores reached 7,000

The Fifth Generation Integrated Store Information System utilizing satellite communications introduced

Power-saving devices introduced

Magazine subscription reservation service started

Sale of nutritional drinks started

Total number of stores reached 8,000e-Shopping! Books (now, Seven Net Shopping Co., Ltd.) launchedOnline shopping purchase bill payment service started

An e-commerce company, 7dream.com established (service commenced in July 2000)

A meal delivery service company, Seven-Meal Service Co., Ltd. established (service commenced in September 2000)

IY Bank Co., Ltd (now, Seven Bank, Ltd.) established through joint investment with Ito-Yokado Co., Ltd.

Installation of ATMs (Automatic Teller Machine) of IY Bank Co., Ltd (now, Seven Bank, Ltd.) in stores started

Sale of original fast food products without Preservatives and Artificial Colorings started

Total number of stores reached 9,000

Installation of open-cases usable for both hot and cold beverages started

Ticket sale, etc utilizing multifunctional copy machine started

Total number of stores reached 10,000

Seven-Eleven (Beijing) Co., Ltd. established as joint venture

First store in China opened in Beijing (Dongzhimen store, Dongcheng District, Beijing)

Barrier-free stores opened

Optical fiber communications network introducedInstallation of new multifunctional copy machine with the digital camera photograph printing function started

7 -Eleven, Inc., became a subsidiary of Seven-Eleven Japan

Number of ATMs of IY Bank Co., Ltd (now, Seven Bank, Ltd.) installed in stores reached 10,000

A holding company, Seven & i Holdings Co., Ltd. establishedSeven & i Holdings Co., Ltd. listed on the First Section of Tokyo Stock Exchange

7-Eleven, Inc., became a 100% subsidiary of Seven-Eleven JapanTotal number of stores reached 11,000

In cooperation with a ticket seller, Entertainment Plus Inc., entertainment ticket services startedThe Sixth Generation Integrated Store Information System Introduced

Seven-Eleven achieved the greatest number of retail chain stores in the world

Original electronic money system, 'nanaco' introduced

Sale of the "Seven Premium" brand products started in stores

Sale of in-store cooked fast food items (using fryer) launched

Nittele Seven, unification of information media and retail industry, established

Total number of stores reached 12,000

Seven-Eleven (China) Co., Ltd. established

Seven-Eleven Net launched

Seven Culture Network Co., Ltd. established

Test sale of the OTC drugs started in stores of 24-hour operation

Seven Net Shopping service startedBusiness and capital alliance with PIA Corporation established

Copy of residence certificates and "seal registration certificates" issuance service through the multi-functional copy machine started (for limited local authorities)

Payment with credit cards started

Organization Chart Corporate History

1973

1974

1975

1976

1978

1979

1980

1981

1982

1984

1985

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

February

August

April

May

August

February

May

November

August

January

April

May

November

February

June

September

November

May

March

April

August

October

December

February

April

July

January

June

December

February

June

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

In November, 1973, License and area service agreements concluded between the Southland Corporation, USA (now, 7-Eleven, Inc.)

Marking the total number of stores reaching 7,000 in June 1997, a party was held in October

In April 2007, Seven-Eleven's original electronic money system, 'nanaco', started.

Asahikawa

Kitami

Ishikari

Otaru

Sapporo

Tomakomai

Hakodate

Iwamizawa

Obihiro

Chitose

Kushiro

Sapporo-Higashi

Kitakami

Ishinomaki

Furukawa

Sendai-Nishi

Shiroishi

Sendai-Higashi

Yamagata

Shonai

Aizu

Koriyama

Fukushima

Iwaki

Shrakawa

Hikone

Otsu

Kyoto-Kita

Kyoto-Minami

Kyoto-Nishi

Osaka-Kita

Higashi Osaka

Takatsuki

Wakayama

Sakai

Hirakata

Osaka-Minami

Osaka-Nishi

Nishinomiya

Kobe

Akashi

Himeji

Amagasaki

Okayama

Kurashiki

Okayama-Higashi

Fukuyama

Hiroshima

Higashi-Hiroshima

Nishi-Hiroshima

Kita-Hiroshima

Hakata

Fukuoka

Kurume

Saga-Higashi

Dazaifu

Saga-Nishi

Nagasaki

Kumamoto-Minami

Kumamoto-Kita

Higo

Iwakuni

Yamaguchi

Shimonoseki

Kokura

Yahata

Chikuzen

Chikuho

Miyazaki-Kita

Miyazaki-Minami

Oita

Nara

Tsuchiura

Hitachi

Koga

Tsukuba

Mito

Kashima

Toride

Nasu

Utsunomiya

Oyama

Ashikaga

Ota

Maebashi

Takasaki

Isezaki

Fujioka

Nagaoka

Niigata-Kita

Joetsu

Niigata-Minami

Tsubame-Sanjo

Toyama

Yamanashi-Higashi

Yamanashi-Nishi

Nagano

Ueda

Matsumoto

Suwa

Chikuma

Numazu

Fuji

Shizuoka

Izu

Kanazawa

Hamamatsu

Iwata

Meito

Toyohashi

Gifu

Kariya

Toyota

Ichinomiya

Nagoya

Chita

Kasugai

Nagoya-Nishi

Kawasaki-Kita

Kawasaki-Minami

Yokohama-Kita

Yokohama-Minami

Fujisawa

Atsugi

Sagamihara

Shonan

Odawara

Yokohama-Nishi

Yokosuka

Yokohama Chuo

Kawaguchi

Urawa

Omiya

Kumagaya

Sakado

Kawagoe

Koshigaya

Kuki

Chichibu

Toda

Ichihara

Franchisees

Kisarazu

Narita

Chiba

Funabashi

Matsudo

Kashiwa

Mobara

Sakura

Narashino

Soka

Chiyoda

Koto

Adachi

Ikebukuro

Katsushika

Shinjuku

Kamata

Asakusa

Minato

Shibuya

Setagaya

Hokkaido Zone

Tohoku zone

Saitama

Tochigi/Ibaraki

Tohoku

Hokkaido

Tokyo-Nishi

Tokyo-Higashi 2

Tokyo-Higashi 1

Chiba

Tokai-NishiTokai-

Higashi

Shizuoka

Nagano/Yamanashi

Kanagawa

Hokuriku

Gunma/Niigata

Hokuriku

Metropolitan Area

Gunma/NiigataTochigi/Ibaraki

Tohoku

Hokkaido

Yamaguchi/Higashi-Kyushu

Nishi-Kyushu

Chugoku

Hyogo

Kansai-MinamiKansai-

Kita

Kansai Zone

Chugoku/Hyogo Zone

Nishi-Kyushu Zone

Yamaguchi/Higashi-Kyushu

ZoneTochigi/Ibaraki

ZoneGunma/Niigata

Zone

Nagano/Yamanashi/Shizuoka

Zone

Tokai Zone

Kanagawa Zone

Saitama Zone

1st Operation Department

Seven & i Holdings

Chairman/CEO

Board of Directors

Auditor

CSR Committee

Audit Office

Secretarial Office

President/COO

Vice President

Sales Headquarters

Operation Headquarters Merchandising Headquarters

Quality Control Headquarters

Construction and Equipment HeadquartersFinance Headquarters Accounting Management

HeadquartersHuman Resource

Headquarters Recruitment Headquarters

Owner Counseling Department

Recruitment/Research Department

Planning Office

Budget Department

Planning Department

Beijing Office in China

Global Business System Expansion Project

International Business Planning Department

Consultant

2nd Operation Department

Ciba Zone

Higashi-Tokyo Zone

Nishi-Tokyo Zone

Suginami

Nerima

Itabashi

Kunitachi

Hachioji

Ome

Fuchu

Chofu

Kodaira

Keihin

GDO

GDO

GDO

GDO

GDO

GDO

GDO

GDO

GDO

GDO

GDO

GDO

GDO

GDO

GDO

Custo

mer C

onsulting

Ro

om

Business S

upp

ort

Op

eration Info

rmatio

n Dep

artment

Op

eration S

upp

ort D

epartm

ent

Aud

itor D

epartm

ent

Op

eration S

upp

ort

Op

eration S

ecretariat

Fixed Asset System

Business Partners Accounting

Franchisees Accounting

Payment Service Accounting

Employee Training

Labor

Hum

an Resources

Payroll

Store Managem

ent

Existing Store Promotion

Corporate Sales and M

arketing

Cooked Rice/N

oodles

FF/Entree/Delicatessen

Bread/Dessert

Distribution Planning

Daily-Distributed Frozen Products

Construction 1st G

roup

Construction 2nd G

roup

Construction 3rd G

roup

Construction 4th G

roup

Construction Planning

Liquor/Processed food products

Beverage/Confectionaries

Non-food products

Sales Promotion

Product Information

Media C

ontents Promotion

Payment service

IT services

Daily-Distributed Products

Raw Materials/Processed Foods/Non Foods

Recruitment Departm

ent

Hum

an Resources Department

1st Recruitment Departm

ent

2nd Recruitment Departm

ent

3rd Recruitment Departm

ent

Kyushu

Chugoku

Kansai

Tokai

Nagano/Yamanashi

Regional Merchandising Departm

ent

International Merchandising Departm

ent

Distribution Department

Quality C

ontrol Department

Production Control Departm

ent

4th Recruitment Departm

ent

FF/Daily-Delivered Products Department

Processed Foods/Non-foods Department

IT Payment Departm

ent

Construction Departm

ent

Sales Promotion and Advertising Departm

ent

Recruitment Support Departm

ent

Ow

ner Recruitment Departm

ent

Ambient Tem

perature Distribution

Equipment Developm

ent

Equipment M

anagement 1st G

roup

Equipment M

anagement 2nd G

roup

Equipment Developm

ent Department

Equipment M

anagement Departm

ent

Equipment M

anagement 3rd G

roup

Payroll System

Ow

ner Training

Ability Development

FC Financial Departm

ent

Accounting Managem

ent Department

Franchise Accounting Department

DO Accounting Support Departm

ent

Training Department

JAPA Co., Ltd.n

This brochure has been printed on recycled paper.Copyright 2010 Seven-Eleven Japan Co., Ltd.

SEVEN-ELEVENSeven-Eleven 2010 - 2011 Corporate Profile

8-8 Niban-cho, Chiyoda-ku, Tokyo, 102-8455

Telephone: 03-6238-3711 (Main)

h t t p : / / w w w . s e j . c o . j p /

Reducing 6％ gas from the green house effect is one of the task of Kyoto protocol. To be realized this task,the gas have to be absorbed 3.9％ by domestic timber. We use domestic timber as the papermaking material for producing this booklet. Our use of domestic timber contributes to the expansion of carbon absorption by Japanese forests.