FAMILY MART ANNUAL REPORTS (1) (1) (1)

5

CONTENT

1.0 A LETTER FROM THE CEO................................................................................................ 1
2.0 VISION & MISSION ............................................................................................................... 4

CORPORATE VALUES .................................................................................................................... 5
4.0 BOARD OF DIRECTORS & EXECUTIVE OFFICER.................................................. 8

CORPORATE INFORMATION/PROFILE OF DIRECTOR.......................................................... 9
5.0 ORGANIZATION CHART...................................................................................................11
6.0 COMPANY ACTIVITIES .....................................................................................................12

SUPPORTING THE DEVELOPMENT OF THE NEXT GENERATION ............................................13
7.0 FINANCIAL STATEMENTS ..............................................................................................16

8.0 DATA SHOWCASE ...............................................................................................................18

1.0 A LETTER FROM THE CEO

“A revamped
FamilyMart, together
with its franchised
stores, will forge ahead
to makedaily life richer
and more convenient”

Koji Takayanagi - Representative Director and Chairman

Beginning a New Chapter for FamilyMart

Established as a holding company in while I have become representative
September 2016, FamilyMart UNY director and chairman.
Holdings Co., Ltd., will implement an
absorption-type merger of wholly Also, the Company became a
owned subsidiary FamilyMart Co., Ltd., subsidiary of ITOCHU Corporation in
and change the Company’s trade name August 2018. Accordingly, we will
to FamilyMart Co., Ltd., in September continue establishing systems that
2019. maximize synergy benefits as a
member of the ITOCHU Group. In
Regarding the Company’s senior addition, we will ensure an approach to
management team, Takashi Sawada, governance that affords due respect to
previously the representative director our independence as a listed company
and president of the operating company by increasing the number of
FamilyMart, has been appointed independent officers.
representative director and president,

Focusing on Growing the Businesses of Franchised Stores

Meanwhile, in just 27 months—the period since the management integration of 2016—
the convenience store (CVS) business has converted Circle K and Sunkus stores to
the FamilyMart brand, thereby establishing a network in Japan of approximately
16,500 stores. As a result, we have strengthened our standing as a convenience store
chain with a powerful brand. This solid position will enable us to prevail even amid the
dramatic changes expected in business conditions. In fiscal 2019, the year ending
February 29, 2020, we will channel energy previously devoted to brand conversion
into increasing business lines and strengthening the competitiveness of existing
stores.

Reduction of Store Workload: Our First Priority

At the end of November and managers of on brand conversion.
franchised stores who As a declining
2018, we completed the committed themselves workforce in the
to joining FamilyMart, frontline operations of
brand conversion of the cooperation of the retail industry was
business partners, and becoming a social
Circle K and Sunkus the determination and issue, we repeatedly
hard work of our added functions to
stores, establishing a employees. On the convenience stores.
other hand, store Consequently, store
network of workload has risen workload was beginning
because we increased to increase beyond a
approximately 16,500 and further improved level that could be
the capabilities of covered simply through
FamilyMart stores in convenience stores convenience stores’
Japan—the second while giving priority to operational efforts.
and concentrating
largest convenience management resources

store chain in the

country. We were able

to complete the brand

conversion of 5,003

stores in only 27 months

thanks to the

understanding and

efforts of the owners

Work Reform through Dialogue with Franchised Stores

While visiting franchised stores stores and the head office is
nationwide, I concluded that, given the fundamental to a franchise business.
aforementioned issues, we should seek Such a business becomes
feedback from frontline operations by dysfunctional if the products and
talking directly with store owners, services that the head office provides
managers, and store staff and give and the business strategies that it sets
priority to alleviating store workload as out do not promise franchised stores
we move forward. Of course, the best stable growth. With this in mind, I felt we
places to unearth all store operational needed to reanalyze operations to
issues as well as potential ideas for ensure that we were not placing
operational reform are the stores unreasonable or needless demands on
themselves, which are our main points franchised stores that only reflected
of contact with customers. Therefore, head office priorities. I also felt we had
we must reform convenience store work to check if we were establishing
based on the viewpoints of the owners conditions that would allow the
and managers of franchised stores. A businesses of franchised stores to
relationship of trust between franchised grow.

“A relationship of trust
between franchised
stores and the head
office is fundamental
to a franchise
business”

Koji Takayanagi - Representative Director and Chairman

Measures to Maximize Employees’ Abilities

In addressing management issues and achieving evolution, the abilities of personnel are as important

as relationships of trust with franchised stores. FamilyMart has assembled a diverse

group of personnel as a result of previous corporate reorganizations. To fully

capitalize on the abilities of these personnel, we are proceeding with

two overall strategies. The first strategy is to become regionally

rooted. Given that customer needs and social issues will further

diversify, we cannot win in fierce competition simply by marketing a

uniform lineup of products and services. Supervisors play a central

role in supporting the owners and managers of franchised

stores. Therefore, we will actively promote supervisors who

have roots in local communities and can think and act based on the

needs of these communities. Further, in the current fiscal year we have delegated authority to several

regions to enable them to develop unique regional products and services.

Ensuring All Measures Benefit Franchised Stores

Although we rebuilt supply leaves enough flexibility to merchandising but in other
chains during brand
integration, I believe that respond to individual areas, we will increase the
scope remains for increasing
the efficiency of production circumstances. Therefore, competitiveness of stores
bases for ready-to-eat
items, distribution bases, we will explore a range of and give customers more
and logistics networks. On
the other hand, rather than options for store operations, reasons to visit them. In all
blanket optimization of the
convenience store chain, we taking into consideration such initiatives, the goal will
are transitioning into a
phase of regional each store’s particular be to grow the businesses of
optimization. In other
words, we must develop the environment and location. franchised stores. This is
store network and supply
chains in a manner that Further, we will adopt an because corporate
reflects each region and
entirely fresh approach to headquarters’ pursuit of

enhancing the appeal of profit on behalf of

stores. Having franchised stores coupled

approximately 16,500 bases with growth through

in the form of brick-and collaboration is intrinsic to a

mortar stores opens franchise business. In

limitless business conjunction with efforts to

opportunities. By adding reduce store workload, the

new capabilities not only in head office will concentrate.

2.0 VISION & MISSION

VISION

To become an ESSENTIAL part of people’s everyday lives by being the MOST PREFERRED
convenience store in the country where everyone is treated as part of our FAMILY.

MISSION

We are here to consistently provide our valued customers fresh and high-quality
merchandise through fast and friendly service in a safe, clean, and attractive
environment.
We provide a dynamic workplace promoting professional growth and fulfilment for
our employees.
We build shareholder value through fair and reasonable business practices.
We are a responsible corporate citizen acting with integrity, prudence, and genuine
concern for the communities we serve.

CORPORATE VALUES

Excellence & Quality
High standards, excellence in everything we do

Sense of Urgency
Proactivity, initiative, act with results now

Always Respectful
High regard for individuality, contribution, and

importance of each person

Spirit of Family & Fun
Working, growing, and winning together

Integrity
Doing the right things even if

nobody is watching

3.0 COMPANY PROFILE

The FamilyMart Company, (株式会社ファミリーマート, Kabushikigaisha Famirīmāto) is a
Japanese convenience store franchise chain. It is Japan's second largest convenience store chain,
behind 7-Eleven. There are now 24,574 stores worldwide in Japan, Taiwan, China, Philippines,
Thailand, Vietnam, Indonesia, and Malaysia. Its headquarters is on the 17th floor of the Sunshine
60 building in Ikebukuro, Toshima, Tokyo. There are some stores in Japan with the name Circle K
Sunkus under the operation of FamilyMart.
FamilyMart was, until 2020, a subsidiary of the FamilyMart UNY Holdings Co (UFHD), which also
owned supermarket chain Uny. UFHD was dissolved when Uny was acquired by the parent
company of Don Quijote in 2020. FamilyMart Co.'s parent company is Itochu, a Japanese trading
company, with a stake of 50.1%. On July 8, 2020, Itochu announced it will spend approximately
¥580 billion (approx $5.5 billion) to purchase 100% of FamilyMart, with the intent to sell 4.9% of
the shares to Zen-Noh and Norinchukin Bank. FamilyMart shareholders approved the takeover
on October 26, and the stock was delisted on November 12, thus leading the completion of the
acquisition.
All of the usual Japanese convenience store goods such as basic grocery items, magazines, manga,
soft drinks, alcoholic drinks like sake, nikuman, fried chicken, onigiri, and bento are available.
FamilyMart is known for its distinctive doorbell melody, which is played upon entering the store.
The doorbells are exclusively made by Panasonic, and the melody these doorbells play is referred
to as Melody Chime No.1 – Daiseikyou and was originally developed for Panasonic by Yasuhi Inada
in 1978.

The first FamilyMart opened in Sayama, Saitama Prefecture in 1973. The store has kept growing,
opening 500 stores every 3 years. In 2002, it was listed as a company in Taiwan. FamilyMart
currently has franchise stores in Malaysia, Philippines, Thailand, Indonesia, Taiwan, China, and
Vietnam. In October 2013, FamilyMart opened its 10,000th store in Japan. Operations in certain
parts of Asia, especially China, continue to expand. As of January 2018, there are 24,243 stores
worldwide, with fast growth in Asia outside Japan. There are 17,409 stores in Japan, 3,165 stores
in Taiwan, 2,177 stores in China, 1,138 stores in Thailand, 277 stores in Malaysia, 66 stores in the
Philippines, 165 stores in Vietnam, and 87 stores in Indonesia, FamilyMart has stores located in
all prefectures of Japan. FamilyMart was formerly the largest chain store in South Korea.
FamilyMart entered South Korea in 1990 through a franchise licensing agreement with Bokwang
Group. However, from 2012, the original stores were rebranded as CU and operated separately
by BGF Retail (then a joint venture between FamilyMart and Bokwang Group. In 2014, FamilyMart
sold off their stake in BGF Retail after its IPO and divested from South Korea because of the
rebranding exercise.

FamilyMart opened its first store in Malaysia at Wisma Lim Foo Yong in Bukit Bintang, Kuala
Lumpur on November 11, 2016. It has become popular because it is the first convenience store
selling soft serve ice cream and fresh snacks. FamilyMart Malaysia are owned by Maxincome
Resources Sdn Bhd which is one of QL Resources Bhd subsidiary. They had a 20-year agreement
with FamilyMart. All FamilyMart Malaysia's food service and ready-to-eat selections are made
with halal ingredients only. The service is currently in the midst of the halal application process
with JAKIM. The products available in FamilyMart that are Halal certified will carry the Halal logo
on its packaging.

For products that are imported from Japan, Korea or Taiwan, the product ingredients will be
vetted to ensure that no haram ingredients such as pork, lard or alcoholic substance were used.
Customers will be able to read the ingredients information on the food or drinks packaging
before purchase to ensure hassle-free consuming. In April 2019, FamilyMart Malaysia was one
of the F&B outlets that was chosen by PLUS Malaysia Berhad, the largest expressway in
Malaysia to set up their stores in one of the R&R areas.

As of 6 May 2021, there are 242 stores nationwide, marking the 200th store milestone on the first
store in Penang after its 100th store in Melaka. By 2022, they planned to open 300 stores
nationwide.

4.0 BOARD OF DIRECTORS & EXECUTIVE OFFICER

Koji
Takayanagi

Takashi
Sawada

Toshio Kunihiro Isao Kubo Atsushi
Kato Nakade Inoue

CORPORATE INFORMATION/PROFILE OF DIRECTOR

Koji Takayanagi has held positions as officers such as Chief Operating
Officer of various divisions over many years at ITOCHU Corporation. Since
he assumed his position as Representative Director and President of the
Company in May 2017, he has directed the management of the Company
with his strong leadership and has contributed to improving the
profitability and corporate value of the Group. Since May 2019, as
Representative Director and Chairman of the Company, Mr. Takayanagi
has continued to chair the Board of Directors’ meetings and has fulfilled
his duties as a director.

Takashi Sawada has held positions as a manager of retail and
management consulting companies. After the Management
Integration with UNY Group Holdings Co., he has served as
Representative Director and President of FamilyMart Co., Ltd. Since
May 2017, he has served as Director, Executive Vice President, and
Executive Officer of the Company, and since March 2018, as
Representative Director and Executive Vice President of the
Company. Also, as Officer in charge of CVS of the Company, he has
contributed to improving the profitability of the convenience store
business. Since May 2019, as Representative Director and President
of the Company, he has directed the management of the Company
with his strong leadership and has fulfilled his duties as a director.

Toshio Kato has held numerous positions at the Company over
many years before the Management Integration, such as General
Manager of Corporate Planning Division and Store Operation
Division of the Company. Also, after the Management Integration,
he has held positions such as General Manager of Corporate
Planning Division and Officer in charge of CVS of the Company, as
well as General Manager of Corporate Planning Division and Store
Operation Division of FamilyMart Co., Ltd. He has formulated and
executed management strategies of the Group. He has contributed
to improving the profitability of the Company’s convenience store
business and has fulfilled his duties as a director.

Kunihiro Nakade has engaged in accounting and finance-related
operations and has held positions such as general manager of the
accounting department at ITOCHU Corporation over many years.
After the Management Integration, as Chief Financial Officer,
Chairman of Risk Management & Compliance Committee, and
Chairman of Governance Committee of the Company, he has
formulated the Group’s financial strategies, strived to enhance its
financial base, worked to strengthen and promote risk
management and compliance, and has fulfilled his duties as a
director.

Isao Kubo has been serving as Director of FamilyMart Co., Ltd.,
holding positions such as General Manager of Management
Division and General Manager of Corporate Planning Division,
after serving as the general manager of many divisions in ITOCHU
Corporation including its overseas offices. Since September 2017,
he has served as General Manager of Corporate Planning Division
of the Company and has formulated and executed the
management strategies of the Group. He has fulfilled his duties
as a director.

Naoyoshi Tsukamoto served as Managing Director at Circle K Sunkus
Co., Ltd. After the Management Integration, he has held positions
such as General Manager of Information Systems Division of
FamilyMart Co., Ltd., and Chief Information Officer and General
Manager of IT Promotion Division of the Company. He has strived to
improve the information systems of the Group and promote
digitization and has fulfilled his duties as a director.

5.0 ORGANIZATION CHART
ENVIRONMENTAL MANAGEMENT SYSTEM

PRESIDENT Environment Environment Preservation
System Subcommittee

Supervising Ecological Assistant Leaders
Officer Panel

Corporate Social All Divisions, Departments
Responsibility and Offices
Committee

Administrating Development
Group Sections

DISTRICTS Marketing Offices

6.0 COMPANY ACTIVITIES

The FamilyMart
Connecting
Dreams
Foundation

Nationwide FamilyMart
cleanup activities supports soccer

school

Nationwide Safety Station
cleanup activities activities

SUPPORTING THE DEVELOPMENT OF THE NEXT GENERATION

Thank You FamilyMart
Letter Children’s
Contest Cafeteria

2019

Child Store
Manager
initiative

Bell Mark
activities

Thank You Letter Contest

In FY2019, the contest received high acclaim for its 10-year long contribution to Japanese language
learning and moral education. The contest, which was being held by FamilyMart alone, has not only
started receiving backing from the National Council of Municipalities Boards of Education and Japan
Federation of Primary School Principals Association, but is also a supported program by the Ministry
of Education, Culture, Sports, Science and Technology now.

FamilyMart Children’s Cafeteria

FamilyMart Children’s Cafeteria is an initiative to support the revitalization of local communities by
providing a place to have fun meals together and opportunities for community-based interaction. It is
meant for local children and their parents. Apart from providing a place to enjoy meals, some stores
also offer hands-on experience of handling the cash register, visits to staff-only areas and other
programs, offering a combination of fun meals and experiential events.

Child Store Manager initiative

The Child Store Manager initiative allows children to experience the actual work of FamilyMart
stores. They get hands-on experience of handling the cash register and learning how to display
products for sale in the store. As an experiencing to learn about actual work while enjoying it, the
initiative has received praise not only from children but also their parents.

Bell Mark activities

FamilyMart endorses the mission of the Bell Mark activities, “allowing all children alike to receive an
education in an excellent environment. FamilyMart has set up Bell Mark donation collection boxes at
each of its stores and gives part of the donations to nearby elementary schools. The remaining
donations, along with Bell Mark donations collected at the head office, contracted food production
plants, and other sites, are donated to elementary schools that have been affected by natural
disasters such as the Great East Japan Earthquake and Kumamoto Earthquake. Bell Mark donations
are used to purchase educational equipment and supplies for and otherwise improve the learning
environments at each school.

7.0 FINANCIAL STATEMENTS



8.0 DATA SHOWCASE