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Overview of Corporate Governance “Systems”

Last update: June 4, 2020

Corporate Governance System (as of May 28, 2020) Updated

Corporate Governance System

1Separation of the Board of Directors’ supervisory functions and executive officers’ business execution functions through introduction of the executive officer system (clarification of the scope of matters delegated to management) Updated

The Company’s Board of Directors comprises 13 Directors (including 5 Outside Directors/12 men and 1 woman) and meets once a month in principle. The position of the Chairman of the Board of Directors is held by the Director determined by the Board of Directors.
 To facilitate prompt decision making and business execution even amid a dramatically changing operating environment, the Company has introduced the executive officer system and separated the Board of Directors’ supervisory functions from the executive officers’ business execution functions. This developed an environment where the Board of Directors is able to focus on the “formulation of management strategies” and the “supervision of business execution,” while the executive officers can focus on “business execution.” The executive officers comprise 18 members (17 men and 1 woman). The term of office of the Directors is set to one year in order to reflect the intentions of shareholders regarding the appointment of the management team in a timely manner.

Clarification of the scope of matters delegated to management
[CGCSupplementary Principle 4.1.1]

Matters to be decided by the Board of Directors at the Company are stipulated in the Board of Directors Regulations, the Decision Authority Regulations, and so forth, and matters stipulated by the Companies Act and the Company’s internal regulations are decided by the Board of Directors.
 The Decision Authority Regulations clearly set forth the scope of matters to be decided by the President and Representative Director. This clarifies the decision-making process for management and the structure of responsibility, while also expediting decision-making by rational delegation of authority.

2Reason for adoption of current corporate governance system

The Company ensures the effectiveness of its corporate governance by coordinating “audits” conducted by the Audit & Supervisory Board Members (Audit &Supervisory Board), including multiple Outside Audit & Supervisory Board Members who maintain their independence and have specialized knowledge in such areas as legal affairs and financial accounting, through their actively cooperating with the accounting auditor and the internal audit division, and “formulation of management strategies” and “supervision of business execution” conducted by the Board of Directors, including multiple Outside Directors who maintain their independence and have advanced management knowledge and experience.
 The Company has adopted this corporate governance structure because it judges the structure to be workable for realizing and ensuring the Company’s corporate governance and for conducting appropriate and efficient corporate management.

Utilization of the company with Audit & Supervisory Board Member system

The Company considers the following characteristics and advantages of the Audit & Supervisory Board Member system to be effective for ensuring the appropriateness of the Company’s Group governance and has therefore adopted it as the corporate governance system:

ⅰ) Each Audit & Supervisory Board Member independently has its own auditing authority (individual independence system), which allows audits to be conducted from the perspectives of each Audit & Supervisory Board Member.

ⅱ) The independence of the Audit & Supervisory Board Members is clearly specified by law, which enables independent and objective audits.

ⅲ) The Audit & Supervisory Board Members have legally specified authority to investigate subsidiaries, which is effective also from a Group audit perspective.

3Nomination Committee and Compensation Committee system Updated

(1) Outline of basic policy and system

In 2016, the Company established the “Nomination and Compensation Committee” as an advisory committee to the Board of Directors. It has been utilizing the knowledge and advice of Outside Directors and Outside Audit & Supervisory Board Members to ensure objectivity and transparency in the procedures for deciding the nomination and compensation of Representative Directors, Directors, Audit & Supervisory Board Members, and executive officers (in this paragraph, “Officers, etc.”), thereby enhancing the supervisory functions of the Board of Directors and further substantiating corporate governance functions. Responding to feedback from shareholders and investors, etc., and as a result of deliberations through effectiveness evaluations of the Company’s Board of Directors, we have decided to make improvements to the advisory committees of the Board of Directors, effective since the Annual Shareholders’ Meeting held on May 28, 2020 (referred to as “this year’s Annual Shareholders’ Meeting”), to utilize a more diverse range of knowledge of Outside Directors and Outside Audit & Supervisory Board Members in committee deliberations and further improve their objectivity and transparency.

Overview of improvements to advisory committees in 2020

ⅰ) Division of the Nomination and Compensation Committee into the Nomination Committee and the Compensation Committee

ⅱ) Each committee’s membership will consist of three Independent Outside Directors and two internal Directors (with the majority of each committee consisting of Independent Outside Directors).

ⅲ) Each committee’s Chair will be an Independent Outside Director.

ⅳ) Internal committee members of the Compensation Committee will be selected from Directors other than Representative Directors.

Nomination Committee Compensation Committee
Chair Kunio Ito (Independent Outside Director) Kunio Ito (Independent Outside Director)
Members Yoshio Tsukio (Independent Outside Director) Tetsuro Higashi (Independent Outside Director)
Toshiro Yonemura (Independent Outside Director) Kazuko Rudy (Independent Outside Director)
Ryuichi Isaka (Representative Director and President) Junro Ito (Director and Managing Executive Officer)
Katsuhiro Goto (Representative Director and Vice President) Kimiyoshi Yamaguchi (Director and Executive Officer)
Observers One internal Audit & Supervisory Board Member and one Outside Audit & Supervisory Board Member
Main items for deliberation ○Basic policies and standards for nomination of candidates for the Company’s Officers, etc. and candidates for the Representative Directors of the core operating companies ○Basic policies and standards for compensation, etc., for Officers, etc. of the Company and of the core operating companies
○Contents of proposals regarding the total compensation amount for Directors and Audit & Supervisory Board Members of the Company and the core operating companies
○Contents of appointment proposals for candidates for the Company’s Officers, etc. and candidates for the Representative Directors of the core operating companies ○Contents of individual compensation, etc., for the Company’s Officers, etc. (excluding Audit & Supervisory Board Members) and the Representative Directors of the core operating companies
○Important matters related to the establishment of the stock-based compensation system involving Officers, etc., in the Company and its subsidiaries, the formulation and modification of standards for the granting of stock, and the operation of the system (including decisions regarding the updating of the stock-based compensation system)

* The chair and committee members are selected by the Board of Directors, and the observers are selected through discussion among Audit & Supervisory Board Members.

* Each committee’s membership will consist of three Independent Outside Directors and two internal Directors (with the majority of each committee consisting of Independent Outside Directors).

* Each committee’s Chair will be an Independent Outside Director.

* Internal committee members of the Compensation Committee will be selected from Directors other than Representative Directors.

* As of June 4, 2020, the above “core operating companies” are SEVEN-ELEVEN JAPAN CO., LTD., Ito-Yokado Co., Ltd., Seven & i Food Systems Co., Ltd., York-Benimaru Co., Ltd., Sogo & Seibu Co., Ltd., and York Co., Ltd. (York Mart Co., Ltd. changed its name to York Co., Ltd. on June 1, 2020.)

(2) Proper Group management and utilization of the Nomination Committee and Compensation Committee

The Company’s “Nomination Committee and Compensation Committee” (in this paragraph, “the Committees”) deliberate on the nomination and compensation of not only the Company’s Officers, etc., but also Representative Directors of the core operating companies.
 The Representative Directors of the core operating companies occupy an important position for the Group’s management and are included within the purview of deliberations by the Committees from the perspective of emphasizing the objectivity and transparency of the principal nomination and compensation procedures for the management of not only the Company but also the Group.
 The Company will also appropriately determine the companies to be “core operating companies” with an emphasis on the objectivity and transparency of the Group management procedures, in accordance with the Group’s business portfolio strategy and governance system.

(3) Involvement of Audit & Supervisory Board Members from the perspective of ensuring correct procedures

One internal Audit & Supervisory Board Member and one Outside Audit & Supervisory Board Member act as observers at the Committees.
 This is because deliberations by the Committees include nomination of candidate Audit & Supervisory Board Members, whose duty is to audit the performance of duties by the Directors, and it is important to ensure due process at the Committees as advisory committees to the Board of Directors.

4Advisors, etc. (as of May 28, 2020)

 Status of the advisors for the Company and major operating companies is as below.

I. The Company

Name Masatoshi Ito
Title/position Honorary Chairman
Duties Provide advice when needed by the Company’s management team
Working arrangement/conditions Full-time/with compensation
Term of office 1 year
Name Toshifumi Suzuki
Title/position Honorary Advisor
Duties Provide advice when needed by the Company’s management team
Working arrangement/conditions Full-time/with compensation
Date of retirement of the Company’s president, etc. May 26, 2016
Term of office 1 year

II. Main operating companies

Name Noritomo Banzai
Title/position Advisor of SEVEN-ELEVEN JAPAN CO., LTD.
Duties Provide advice when needed by the company’s management team
Working arrangement/conditions Full-time/with compensation
Term of office 1 year

III. Others

  • ? Regarding the assumption of office by advisors of the Company and major operating companies, the Company’s Board of Directors deliberates and confirms matters and appropriately supervises their work.
  • ? Upon consultation from the Company’s Board of Directors, the Company’s Nomination and Compensation Committee deliberates and confirms the duties, work arrangements, and conditions, such as compensation terms for the advisors of the Company and major operating companies.
  • ? The roles of advisors of the Company and major operating companies are to provide advice when needed by the management team of each company, and advisors have no authority to affect the management decisions of each company.

5Corporate governance by various committees Updated

The Company has established the “CSR Management Committee,” “Risk Management Committee,” and “Information Management Committee,” which report to the Representative Director. Each committee determine Group policies in cooperation with the operating companies, and strengthens corporate governance by managing and supervising their dissemination and execution.

CSR Management Committee

The Company has established the CSR Management Committee for the purpose of promoting, administrating and supervising the CSR activities of the entire Group. The Company has also established the “Compliance Subcommittee,” “Corporate Ethics and Culture Subcommittee,” “Supply Chain Subcommittee,” “Environment Subcommittee” and “Social Value Creation Subcommittee” as group-wide cross-organizational bodies under the CSR Management Committee tasked with the examination and execution of concrete measures to address the “Five Material Issues” of the Group as a whole. Through the activities of these subcommittees, the Company aims to realize more thorough practice of compliance, promote operating activities that will contribute to the solution of social issues relating to stakeholders, and work toward the sustainable development of both society and the Group, from the perspective of ESG (environment, society, and governance).
 Furthermore, the Company operates an internal reporting system that can be used by Group officers, employees, and business partners as part of the internal controls of the whole Group. The executive officer in charge of the CSR Management Committee regularly reports and confirms the operational status of the internal reporting system at the Board of Directors’ meeting.

Risk Management Committee

In accordance with the basic rules for risk management, the Company and its Group companies establishes, streamlines, and manages comprehensive risk management systems, centered on the Risk Management Committee, in order to properly analyze, evaluate, and appropriately respond to risks associated with each business, with consideration for changes in the management environment and risk factors relevant to the Company and its Group companies.
 The Risk Management Committee receives reports on the risk management status of the respective companies from the departments responsible for the management of risks, comprehensively determines, assesses, and analyzes risks, discusses measures, and determines the future direction.
 Meanwhile, with regard to individual risks, the Company has carried out efforts to further strengthen risk management of the entire Group by assisting with risk evaluation and analysis, supporting for the implementation of risk mitigation measures at each Group company, and sharing risk-related information from inside and outside the Company, using group-wide cross-organizational meeting bodies led by each of the Company’s departments responsible for the management of risks.

Information Management Committee

In accordance with the Information Control Regulations, the Company established the Information Management Committee, chaired by the information management supervisor, to carry out risk analysis, evaluation, and measures regarding the management of all operations-related information that is learned, created, or retained by officers and employees of the Group.
 In FY2020, the committee continued initiatives carried on from FY2019 and worked at strengthening information collection and management systems. While gathering important information from each company in an appropriate and timely manner and revamping the system for the cooperative framework for dealing with this, the committee centrally managed this information and strengthened the system for reporting that information without omission or delay to management and relevant divisions.
 In the area of information security, in response to an incident involving unauthorized access in connection with 7pay, measures were taken to increase personnel with expertise in security and to establish a dedicated department that comprehensively takes control of security measures within the Group and is independent from business execution. In addition, the Company carries out efforts to improve awareness and enhance the sophistication of security by developing security policy and guidelines, etc., applied across the Group, increasing the level of sophistication of internal company training, and strengthening monitoring.
 Through these measures, the Company is working to strengthen the Group’s information management and information security.

Composition of established organizations (as of May 28, 2020)

(◎: Board or committee chair)

Name Position in the Company Board of Directors Audit & Supervisory Board Nomination Committee Compensation Committee CSR Management Committee Risk Management Committee Information Management Committee
Ryuichi Isaka Representative Director and President
Executive Officer and President
Katsuhiro Goto Representative Director and Vice President
Executive Officer and Vice President
Junro Ito Director and Managing Executive Officer
General Manager of the Corporate Development Division
Kimiyoshi Yamaguchi Director and Executive Officer
General Manager of the Corporate Communication Division
Yoshimichi Maruyama Director and Executive Officer
General Manager of the Corporate Finance & Accounting Division
Fumihiko Nagamatsu Director
Shigeki Kimura Director
Joseph M. DePinto Director
Yoshio Tsukio Outside Director
Kunio Ito Outside Director
Toshiro Yonemura Outside Director
Tetsuro Higashi Outside Director
Kazuko Rudy
(Real name:
Kazuko Kiriyama)
Outside Director
Name Position in the Company Board of Directors Audit & Supervisory Board Nomination Committee Compensation Committee CSR Management Committee Risk Management Committee Information Management Committee
Noriyuki Habano Standing Audit & Supervisory Board Member
Yoshitake Taniguchi Standing Audit & Supervisory Board Member
Kazuhiro Hara Outside Audit & Supervisory Board Member
Mitsuko Inamasu Outside Audit & Supervisory Board Member
Kaori Matsuhashi
(Real name:
Kaori Hosoya)
Outside Audit & Supervisory Board Member
Name Position in the Company Board of Directors Audit & Supervisory Board Nomination Committee Compensation Committee CSR Management Committee Risk Management Committee Information Management Committee
Seiichiro Ishibashi Managing Executive Officer
General Manager of the Group Merchandising Strategy & Planning Division
Hisataka Noguchi Executive Officer
General Manager of the Corporate General Affairs & Legal Division
Osamu Yonetani Executive Officer
General Manager of the Group DX Strategy & Planning Division
Nobuyuki Miyaji Executive Officer
Head of the President Office and Head of the Security Management Office
Information Management Supervisor
Takuya Enomoto General Manager of the Corporate Personnel Planning Division
Other members Senior Officers of CSR-related departments of the Company
CSR Promotion Supervisors of Group companies
Senior Officers of risk management departments of the Company
Information Managers of each department of the Company

6Internal Control Resolutions

The Company has resolved as the reference information below regarding “the development of systems necessary to ensure that the execution of the duties by the directors complies with the laws and regulations and the articles of incorporation, and other systems prescribed by the Ordinance of the Ministry of Justice as systems necessary to ensure the properness of operations of a stock company and of operations of a group of enterprises consisting of said stock company and its subsidiaries,” (so-called the “Internal Control Resolutions”) set forth in the Companies Act.

7Risk management

(1) Basic approach to risk management

The Company is taking steps to appropriately manage the various risks associated with business continuity, in an effort to secure the soundness of its management and the efficiency of its business, while ensuring the lasting preservation and development of the Group.
 In the management of the Group’s risks, the Company quantifies the risks of every business domain to the extent possible, verifies that these risks are within an acceptable range based on the Company’s owners’ equity, and employs an integrated risk management method, which implements measures that avoid, transfer, mitigate, and retain risks.

(2) Risks to be managed

The Company classifies the risks to be managed into the four categories of governance risk, operational risk, B/S risk, and business risk, and manages these risks in line with the basic rules for risk management shared by the whole Group.
 In order to assess the group-wide status of each risk and effectively make improvements, the Company has clarified the departments responsible for the management of risks within the Company, while also establishing the Risk Management Department to centrally and comprehensively manage all risk areas.

Risk category Major examples of the key risks of the Group
Governance risk Risk of degradation of the entire Group’s brand due to deficiencies in internal controls and compliance violations, etc.
Operational risk
Information management risk Risk of incurring loss due to leakage of the personal information of customers, employees, etc., and confidential information
System risk Risk of incurring loss due to cyberattacks and system and network failures
Quality assurance and labeling risk Risk of incurring loss due to product safety issues, inappropriate labeling, and human rights and environmental problems in the supply chain
IR risk Inappropriate disclosure risk and the risk of incurring loss due to unfair disclosures
PR risk Risk of incurring loss due to inappropriate handling of the media, inappropriate news releases, etc.
Reputational risk Risk of incurring loss including brand degradation from inappropriate information, including information on social media
Legal risk Risk of incurring loss due to inadequate handling of litigation and statutory regulations
Risk associated with intellectual property rights (rights of trademark, etc.) Risk of the intellectual property rights, etc., held by or attributed to the Group being violated by a third party, or of the Group violating the rights of a third party
Business continuity risk Risk of incurring loss due to the impact of climate change, disasters, etc., and due to infectious diseases and epidemics, such as new strains of pandemic influenza
Risk of incidents and accidents Risk of incurring loss due to bodily injury to customers, arson, fires and other accidents, etc.
Risk associated with antisocial groups Risk of incurring loss as a result of relationships with antisocial groups
Accounting risk Risk of incurring loss due to the introduction of new accounting standards or changes thereof
Tax-related risk Risk of incurring loss due to inadequate handling of the introduction of new tax systems or changes thereof, etc.
Personnel- and labor-related risk Risk of incurring loss due to inadequate development of the labor environment, ideal working conditions, etc.
Environmental risk Risk of incurring loss due to inadequate handling of food recycling, reduction of containers and packaging, waste disposal, climate change, etc.
B/S risk (Risk occurring as a result of, or derived from assets and liabilities)
Asset risk Risk of incurring loss due to a decline in the asset value of inventories, non-current assets, etc.
Business credit risk Risk of incurring loss due to receivables management, including the collection of guaranty deposits
Financial credit risk Risk of incurring loss in financial transactions for asset management, etc., due to deterioration of the financial standing of borrowers, etc.
Market risk Risk of incurring loss due to fluctuating values of assets and liabilities, as a result of fluctuations in interest rates, foreign exchange rates, stock prices, etc.
Liquidity risk Risk of incurring loss due to difficulties in fundraising as a result of deteriorating financial conditions, etc.
Business risk
Existing business risk Risk of incurring loss due to the procurement of products and raw materials, etc., and fluctuations in purchase prices
Risk of incurring loss due to compliance with store-opening regulations
Investment return risk Risk of incurring loss due to failure to achieve the initially anticipated effects of M&As and business alliances with other companies, etc.

(3) Group risk management system

The Company and its operating companies have established a Risk Management Committee, with the departments that oversee the overall risk management of the respective companies as the secretariat.
 As a general rule, the Risk Management Committee meets once every six months to receive reports on the risk management status of the respective companies from the departments responsible for the management of risks, to comprehensively determine, assess, and analyze risks and discuss measures, and to determine the future direction going forward.
 Meanwhile, with regard to individual risks, Group policies related to such risks, initiatives to mitigate risks undertaken by each company, and various internal and external examples illustrating signs of materializing risks, etc., are shared through a group-wide meeting body, etc., headed by the Company’s departments responsible for the management of risks.

Group Risk Management System

Group Risk Management System

(4) The PDCA cycle of risk management

The Group conducts risk management through the comprehensive identification and quantification of risks based on the shared Group risk assessment tables, “risk assessment and proposal of improvement measures,” “prioritization of risks,” and “improvement activities and monitoring.”
 In addition, the Auditing Office of each company verifies whether risk management is being conducted effectively, from an independent perspective, through periodic internal audits of the departments in charge of overall risk management and the departments responsible for the management of risks of the respective companies, and provides each department with the necessary advice for improving risk management, as required.

The PDCA cycle of risk management

8Internal reporting Updated

As part of the internal controls of the whole Group, the Group operates a “Groupwide Employee Help Line” for reporting by Group employees, a “Business Partner Help Line” for reporting by business partners, and an “Audit & Supervisory Board Member Hotline” regarding management team members, with the aim of preventing, rapidly identifying, rapidly rectifying, and preventing the recurrence of violations of laws and regulations, social norms, and internal rules.

  • ? The Company has established a point of contact for reporting at an outside third-party organization to thoroughly protect those who issue reports by enabling reports to be made anonymously, ensuring the confidentiality of report content, protecting the personal information and privacy of the reporting person (whistleblower), and preventing the whistleblower from being subjected to disadvantageous treatment for having used the help line.
  • ? When an internal report is received, the administrative office and relevant departments confer about the method of investigation and response, propose one and execute it, and further inform the whistleblower of the result of the response and confirm if the problem is corrected.
  • ? When a serious violation is found to have occurred, it is reported immediately to a Representative Director. The relevant department and relevant companies then confer about the response and take necessary measures.
  • ? The executive officer in charge of the CSR Management Committee at the Company regularly reports and confirms the operational status of the internal reporting system at the Board of Directors’ meeting.

Registration of conformity with the “Whistleblowing Compliance Management System (Self-Declaration of Conformity Registration Program)”

For the Seven & i Group to be trusted by society and continue its sustainable growth, it must comply with all laws and regulations. To do so, it is important for the Group to prevent, rapidly identify, rapidly rectify, and prevent the recurrence of violations. In July 2019, the Company’s whistleblowing system was recognized as being designed to protect whistleblowers and maintain the confidentiality of reports, and the Company was registered as conforming to the Consumer Affairs Agency's Whistleblowing Compliance Management System (Self-Declaration of Conformity Registration Program). The Company will continue to fully inform employees of the whistleblowing system to maintain thorough compliance.

(Reference)

Internal Reporting System for Employees:    Number of reports for FY2020: 1,208 (down 1.5% year on year)
Internal Reporting System for Business Partners:   Number of reports for FY2020: 47 (down 20.3% year on year)
Audit & Supervisory Board Member Hotline:   Number of reports for FY2020: 28*

* The Audit & Supervisory Board Member Hotline was established in February 2019.

Internal Reporting System for Employees and Business Partners

Internal Reporting System for Employees and Business Partners

Audit & Supervisory Board Member Hotline
*For cases in which the subject of the whistleblowing is an executive officer or a person in a higher position

Audit & Supervisory Board Member Hotlinev

9Cross-shareholdings
[CGC Principle 1.4] Updated

(1) Policy on cross-shareholdings

Overall, the Group’s cross-shareholdings as of the end of February 2020 comprise 54 stocks, with a market value of ¥60.4 billion accounting for just over 2% of consolidated net assets.
 In principle, the Group does not hold cross-shareholdings except where there is an accepted rational for doing so, such as maintaining or strengthening business alliances or business relationships, in order to maintain and strengthen business competitiveness.
 Stocks held are reviewed annually and shares with less rationale or less effectiveness for holding are to be sold in view of the circumstances of the investee companies.

(2) Standards for exercising voting rights

When exercising voting rights as to listed cross-shareholdings, based on the following Detailed Rules regarding Standards for Exercising Voting Rights, the Company decides whether to vote for or against proposals from the perspective of increasing the medium- to long-term corporate value of the Company and the investee companies, and engages in dialogue with the investee companies about the proposals before exercising its voting rights if necessary.

Detailed Rules regarding Standards for Exercising Voting Rights

a. Whether proposals at each Shareholders’ Meeting inure to medium-to long-term improvement of corporate value?

b. Whether proposals at each Shareholders’ Meeting will maximize the benefits of shareholders of the company that convenes the Shareholders’ Meeting?

c. Whether a convocation notice of Shareholders’ Meetings and other materials such as documents that explain proposals are timely and appropriate as information disclosure?

(3) Method for determining the rationale and effectiveness of shareholding

The Company’s Board of Directors assesses the matters below regarding the rationale for and effectiveness of holding listed cross-shareholdings and makes comprehensive decisions regarding the appropriateness of holding said shares. The Company will continually review the matters to be assessed.

Matters reviewed

Qualitative Matters

ⅰ) Background of acquisition

ⅱ) Presence or absence of business relationship

ⅲ) Strategic significance at the time of holding

ⅳ) Possibility of future business

ⅴ) Risks related to survival or stability, etc. of business if shares are not held

vi) Continuity of advantages, future outlook for business, and risks if shares continue to be held

Quantitative Matters

ⅰ) The most recent amounts of transactions and profits if any business is conducted through business alliances, etc.

ⅱ) Annual dividends received and gain or loss on valuation of shares

ⅲ) Whether the benefits and risks from each holding cover the Company’s cost of capital

(4) FY2020 assessment of cross-shareholdings

The results of the Board of Directors’ FY2020 assessment of all of the Company’s listed cross-shareholdings are as below. (The review was performed at the Board of Directors meeting on April 9, 2020.)

Results of the assessment of the Company's listed cross-shareholdings in FY2020

Stock Purpose of shareholding Qualitative/quantitative rationale and effectiveness of shareholding Holding of the Company’s shares
AIN HOLDINGS INC. Further reinforcement of business collaboration in promotion of joint product development, etc. Yes* No
Credit Saison Co., Ltd. Further reinforcement of business collaboration through the Group financial business companies, etc. Yes* Yes
Mitsui Fudosan Co., Ltd. Further reinforcement of business collaboration in transactions, etc., related to stores, logistics facilities, and other real estate for the Group operating companies Yes* Yes
SEIBU HOLDINGS INC. Further reinforcement of business collaboration in joint development of stores, areas, etc., of the Group operating companies Yes* Yes
Tokyo Broadcasting System Holdings, Inc. Further reinforcement of business collaboration in sales promotion leveraging media content, etc. Yes* Yes
Dai-ichi Life Holdings, Inc. Further reinforcement of business collaboration in life insurance and other financial transactions, etc., with the Group companies Yes* Yes

* The qualitative and quantitative matters in “Matters reviewed” were assessed and it was comprehensively determined that rationale and effectiveness existed for all stocks held. (The quantitative effects of shareholding are not indicated in view of confidentiality of contracts and agreements pertaining to individual transactions.)

 The Company’s Board of Directors confirms that its Group companies other than listed subsidiaries also assess cross-shareholdings based on the same shareholding policy as the Company.

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