Greetings

Representative Director and President
Representative Director and President Koji Takayanagi

Thank you very much, as always, for your continued support.

We made a new start September 2016 as a distribution group with Groupwide net sales approaching ¥4 trillion. Based on our Group principle, "Everyday Fun and Fresh," we are making Groupwide efforts to continuously create new value for our customers and help to make their lives more fun and fresh every day.

I recognize that one of the most important themes in retail is figuring out how to entice customers into a store. In recent years, shopping has become simply an act done for the purpose of buying something. I therefore believe it is necessary to once again create a system that makes customers excited to shop in our stores.

Given these circumstances, I understand that my role is to create an environment at our CVS locations that allows us to maximize added value from the customers' perspective. To this end, I will pursue synergies and distribute Groupwide managerial resources, including funds and personnel, in the most appropriate manner.

In the CVS business, we will make efforts toward the early completion of product integration at our stores and system integration for distribution, IT, and more. We will also take steps to finalize the transition from Circle K and Sunkus stores to FamilyMart brands. In our stores, we will thoroughly improve quality in all areas, by drawing on the merits of scale generated from the roughly 17,000 stores across Japan.

While engaging in extensive deliberations with management teams from each business, we will work to enhance three areas in the CVS business: merchandise, features and services, and efficiency. For enhanced efficiency, in particular, we will make a wide variety of efforts, including reducing the burden of store operations and increasing distribution efficiency. In doing so, we will make our foundation of 17,000 stores, which was born of our recent merger, more attractive.

Moving forward, by demonstrating the comprehensive strengths of FamilyMart UNY Holdings and pursuing Group synergies, we will strive to be an appealing company to all our shareholders. I appreciate your kind cooperation.