DX / FINANCIAL STRATEGY - 極秘 S

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DX / FINANCIAL STRATEGY - 極秘 S
極秘 S

   DX / FINANCIAL STRATEGY

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DX / FINANCIAL STRATEGY - 極秘 S
Last Mile Measures (Ideal Image)
   Greater convenience                                                             Customers                                              Contribute to the local
                                                                                                                                               community
   Instant / prepared meals,                          Diversification of orders                       Easy cooking, home-cooking         Customers who have
   delivery needs                                     and receipt                                     needs                              problems doing their shopping

          On-demand purchase                                                  Planned purchase                                     Face-to-face purchases
      Online convenience stores,                                          Online supermarkets, etc.                                      Tokushimaru,
         e.Depa-Chika*1, etc.                                                                                                      Seven Anshin Delivery, etc.

                                                                   Future measures and direction
  ▶ Fortify ready-to-eat and fast food                            ▶ Large-scale centers                                    ▶ Expand no. of operational trucks
    products                                                        (supply products to SEJ stores through                 ▶ Tokushimaru, strengthen cooperation
  ▶ Set up stores dedicated to home                                 linkage with the common infrastructure, etc.)
    delivery and expand the area                                                                                             with the local communities
                                                                  ▶ Diversification of pick-up centers
  ▶ Build a delivery platform
                                                                    (BOPIS*2, lockers, etc.)
                                                                  ▶ Strengthen fresh foods and meal kits

                    The sales scale of the entire Group will reach approx. 600 billion yen by FY2026.
  *1 e.Depa-Chika: online department store with food section   *2BOPIS: Buy Online Pick-up In Store
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DX / FINANCIAL STRATEGY - 極秘 S
Last Mile Measures (Expansion Schedule)

                              FY2021                        FY2022                          FY2023                      From FY2024

                   In-house manufacturing
                   development / PoC (real-              Store expansion                                             ▶ Nationwide expansion
Online convenience time inventory linkage, etc.)         ▶1,000 stores                                                             (FY2026)
       stores

                      In-house manufacturing development / PoC
                      (set up stores dedicated to home delivery, etc.)
                                                                                      Expansion of stores dedicated to home delivery
   Denny's home
     delivery
                             Building the Last Mile DX Platform

                                            In-house manufacturing
                                            development / PoC
                                                                                      Start of services (planned)
  e.Depa-Chika

                      Online supermarket Nishi-Nippori PoC                                                          Shin-Yokohama Center
                      (optimization of delivery mechanism, pick-up lockers, etc.)                                   operation
Online supermarket

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DX / FINANCIAL STRATEGY - 極秘 S
Last Mile Measures (Optimization of Delivery)
  Ideal image of the Last One Mile DX Platform
                                   Customers
                                                                                                           Last Mile DX platform
                                      Orders
                                                                                                           Four core technologies
                                                                     ・・・
                                                                                               1) Vehicle / driver variances
                           Group company EC sites

Products                                                                                       2) Delivery route optimization
                            Last Mile DX platform
                    (Optimization through AI delivery control)
                                                                                               3) Dynamic pricing of shipping charges

                               Shipping resources                                              4) Pick-up location / time optimization proposal
                    Pick-up
                   locations           Drivers             Vehicles

                    AI delivery control reduces delivery distances by approx. 40%
                    and the number of vehicles by approx. 45%*
   * Tested AI-based mixed loading function, route optimization function, and vehicle optimization function in the Shinagawa area (December 2020)
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DX / FINANCIAL STRATEGY - 極秘 S
DX / Financial Strategy (Expansion of Customer Contact)
 Improve LTV by further expanding and deepening customer contact through “7iD”

 Deliver information that meets      Propose optimal product
        customer needs                lineup at stores and EC                       Providing a new settlement experience

                            1
                                                                                   Strengthening the Group points strategy
     Recommended
      information

                                                                                   Convenient settlement services and possible
                                                                                   to accumulate points for use in daily shopping
                    Contact with customers
                                     Improve the convenience
       Receive products
                                        of settlement and
 at the preferred time and place        financial services
                                                                                 Aiming for        50 million 7iD members
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