OREANDA-NEWS. May 10, 2012. The Seven & i Group is strengthening its operations in China, and accordingly Seven-Eleven Japan Co., Ltd., and Ito-Yokado Co., Ltd., which are wholly owned subsidiaries of Seven & i Holdings Co., Ltd., will reorganize operations in China. The details of the reorganization are as follows.

Reorganization

Two holding companies (investment companies) will be utilized to oversee the Group's operating companies in convenience store operations and superstore operations in China. In convenience store operations, SEVEN-ELEVEN CHINA Co., Ltd., which is the master licensor for China (excluding the Beijing, Tianjin, and Hebei areas as well as Hong Kong, Macau and Guangzhou), will change its name, its business purpose, its capital (capital increase), etc., and will become a holding company that can invest directly in subsidiaries. In superstore operations, a new holding company will be established as a wholly owned subsidiary.

Approval of the regulatory authorities will be required for the establishment of the holding companies, and accordingly the Seven & i Group is currently moving forward with application procedures. Plans call for the companies to be established when the application is approved.

Purpose

This reorganization will be implemented to establish a system for the aggressive expansion of operations in China. This system will include overall strategy formulation for the Group's China operations and increased decision-making speed.

Overview of Holding Companies (1) Convenience store operations

(1)

Current name

SEVEN-ELEVEN CHINA Co., Ltd.

(2)

New name

SEVEN-ELEVEN (CHINA) INVESTMENT CO., LTD.

(3)

Representative

Chairman, Masao Eguchi

 

 

(Director, Managing Executive Officer, Seven-Eleven Japan Co., Ltd.)

(4)

Location

Dongcheng, Beijing

(5)

Date of change

2012 (planned)

(6)

Fiscal year-end

End of December

(7)

Registered capital

250 million yuan (200 million yuan capital increase)

(8)

Equity interest

Seven-Eleven Japan Co., Ltd. 100%

(2) Superstore Operations

(1)

Name

Ito-Yokado (China) Investment Co., Ltd.

(2)

Representative

Chairman, Tomihiro Saegusa (Executive Officer, Ito-Yokado Co., Ltd. )

(3)

Location

Chaoyang, Beijing

(4)

Date of

2012 (planned)

 

establishment

 

(5)

Fiscal year-end

End of December

(6)

Registered capital

Yuan amount equivalent to USD 30 million

(7)

Equity interest

Ito-Yokado Co., Ltd. 100%

4. Future Outlook

The influence of this reorganization on consolidated results for the fiscal year ending February 2013 is expected to be minimal, but the reorganization is expected to contribute to improvement in financial results over the medium to long term.