Message from the President

Conditions in the retail industry remain challenging due to such factors as intensified competition that is transcending format boundaries, the continued slump in consumer confidence, and labor shortages in stores and distribution. Amid these conditions, as a company that is an integral part of the infrastructure of society and everyday life, we are forging ahead with the aim of becoming an appealing company that is close to customers in each region and which contributes to local communities.

In fiscal 2019, the year ending February 29, 2020, we are tackling measures based on four strategies. These are enhancing support for franchised stores, which is our first priority; strengthening the profitability of stores; moving forward with the shift to digital; and promoting business collaboration with Pan Pacific International Holdings Corporation (PPIH).

With respect to enhancing support for franchised stores, we are steadily implementing concrete measures to support franchised stores based on the Plan of Action to Support FamilyMart Franchised Stores, announced in April 2019. Specifically, as countermeasures for the increasingly serious labor shortage, we are introducing self-checkout registers and new tablet devices for placing orders to increase the efficiency of store operations. Further, to reduce food wastage, we are expanding our lineup of products with long shelf lives, and we have shifted to a reservation-only system for Doyo no Ushi (eel), which is a seasonal product. Other initiatives include trials of shorter store opening hours, which we are conducting with the aim of building a system for store operations that maintains a balance between the convenience of customers and the stability of store operations.

As for moving forward with the shift to digital , on July 1, 2019, we launched the FamiPay smartphone app, which includes the Group's original FamiPay electronic money. Moreover, in addition to T-POINT, which can be used for shopping at present, we plan to introduce d POINT and Rakuten Point in November.

As a result of the aforementioned initiatives, in the first quarter of fiscal 2019, we recorded gross operating revenue of ¥132.9 billion, core operating profit of ¥19.5 billion, and profit attributable to owners of parent of ¥20.3 billion.

From the second quarter onward, we will continue swiftly implementing the four strategies while accomplishing reform aimed at strengthening our relationship of trust with franchised stores and creating an appealing store chain.

Further, FamilyMart UNY Holdings Co., Ltd., plans to implement an absorption-type merger of wholly owned subsidiary FamilyMart Co., Ltd., and change the Company's trade name to FamilyMart Co., Ltd., in September 2019.

I would like to ask our shareholders and investors for their continued support.

Representative Director and President
Takashi Sawada