Top Message

Top Message

President

Guided by our Group principle of "Everyday Fun and Fresh," we will fully leverage the Group's unique management resources to move forward with daily reforms to our business model. Through these efforts, we will strive to grow into a social and lifestyle infrastructure provider that is indispensable to the daily lives of consumers.

In the convenience store business, we are advancing a concerted Groupwide effort to convert Circle K and Sunkus brand stores into FamilyMart brand stores. At the same time, we forged ahead with three major improvements, namely ready-to-eat item, marketing, and operational improvements.

As of the August 31, 2017, we had completed the brand conversion of 2,350 stores, which was more than we had planned, and daily sales at brand-converted stores also outperformed our forecast. While making use of our nationwide network of approximately 18,000 stores, we followed up on product integration, which was completed in February, with the integration of distribution functions in June, thereby making efforts to further draw out the synergies of the management integration.

In the general merchandise store business, we have made comprehensive efforts to improve the five "sources" of the retail business: products, 52 weeks of merchandising, product lineup, sales environment, and customer service, and have endeavored to offer these "sources" to our customers. At the same time, we have worked to reduce costs.

In August, we concluded a basic agreement and final contract for a business and capital alliance with Don Quijote Holdings Co., Ltd., with the goal of strengthening both our businesses. Through this alliance, we hope to raise corporate value in the CVS and GMS businesses over the medium to long term while promoting various collaborations that leverage the management resources, our unique strengths, and expertise of both companies.

In regard to our business performance in the six-month period ended August 31, 2017 (IFRS), gross operating revenues amounted to \633.6 billion, core operating income came to \41.9 billion, and profit attributable to owners of the parent was \22.3 billion. All of these results exceeded our initial forecasts.

To succeed amid a fiercely competitive environment in the second half and beyond, we will explore new opportunities for growth by concentrating Groupwide management resources to offer unique value. In addition, guided by our Group principles of "Everyday Fun and Fresh," we will aim to continuously improve our corporate value while creating trust-based relationships with all of our stakeholders, including our shareholders, franchised stores, business partners, and employees, as well as local communities.

As a result of our first-half performance exceeding our initial forecasts and the recording of deferred tax assets in conjunction with the adoption of the consolidated tax payment system, we have made an upward revision to our forecast for the fiscal year ending February 28, 2018, which was announced on April 11, 2017. We now project gross operating revenues of \1,242.0 billion, core operating income of \66.5 billion, and profit attributable to owners of the parent of \31.0 billion.

Our forecast for the year-end dividend of \56 per share remains unchanged, keeping the fiscal 2017 forecast for annual dividend payments at \112 per share.

We ask for the continued support of all our investors and shareholders going forward.

Representative Director and President
Kouji takayanagi