Seven&i Holdings Co. Ltd.

Overview Key strengths Key risks Stable EBITDA of about ¥1 trillion per year on the back of a leading position in the global convenience store market Debt to EBITDA remaining weaker than that of its global peers with similar ratings Brand recognition for 7-Eleven, which has more than 80,000 stores worldwide Susceptibility of overall earnings to external changes following rapid growth of its highly competitive overseas convenience store business and a higher proportion of gasoline sales in North America Stable and relatively strong profitability and cash flow, supported by a franchised convenience store business with high customer loyalty Continued sluggish profitability in businesses other than convenience stores, despite structural reforms Consumer-focused store development and strong merchandising strategies, including development of

...Earnings in Seven & i Holdings Co. Ltd.'s mainstay convenience store business will continue to grow steadily in Japan and North America despite inflation, in S&P Global Ratings' view. Its overseas convenience store business has steadily realized benefits of integration with Speedway LLC in the U.S. through merchandising, procurement, and other areas. Its domestic convenience store business, which supports stable overall profits, retains advantages over competitors through product strategies, such as planning, developing, and selling private brand goods. As a result, average daily store sales are about 30% higher than those of competitors. In addition, we believe the company's efforts to digitize services such as online order and delivery are likely to further strengthen its business base. We expect the company's performance to remain stable despite the challenging business environment, with high inflation in Japan and the U.S., supported by strong U.S. gasoline sales and solid customer...

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