Overview Key strengths Key risks One of Japan's two largest retail groups, with expected annual EBITDA of ¥700 billion-¥750 billion Profitability in the mainstay retail unit likely remaining slightly lower than peers amid severe competition in Japan Less earnings volatility at retail units focusing on food and daily necessities thanks to expansions and diversification of store formats Limited presence in online retail despite efforts to expand its online business model Adequately diversified earnings sources in both retail and nonretail businesses, with nonretail businesses generating 40% of consolidated EBITDA (excluding its financial services unit) Persistently high reliance on debt funding due to continued aggressive investments Key financial ratios likely remaining commensurate with the rating in the coming one to two years,
