Material Issues Designation Process

Material Issues Designation Process

Process for formulating material issues

The Seven Bank Group has positioned sustainability as the foundation of its long-term management strategies, and is implementing various initiatives aimed at solving diversifying social issues and creating new value through its core business. From the perspective of creating value to realize Purpose, the Group has identified five issues to be addressed as “material issues.”

Capital Impact

In addressing the five material issues, the Bank clarifies its vision, links its contribution to the achievement of the SDGs, and organizes the impact on capital in the Bank’s value creation.

Material issues	Vision of the Bank	Contributing to SDGs	Capital impact
Material issues	Vision of the Bank	Contributing to SDGs	Financial capital	Human and intellectual capital	Social and relational capital	Manufacturing capital	Natural capital
Fundamental value Offer a social infrastructure available anytime with safety and security	Seven Bank will provide diverse services that are available at any time in daily life by building a security system that is solid whether at normal times or in an emergency, as well as an organization and structure to minimize operation suspensions in the event of an emergency, to become a social infrastructure that provides safety and security to society.		Revenue generated from over 1.0 billion ATM transactions per year	Build operations to realize “Non-stop ATMs” Framework for providing safe and secure financial service	Build strong relationships with partner companies that support ATM networks	Design highly functional and high-performance ATM housing
Social value Realize a wide variety of services accessible to anyone, anywhere	Aiming to be “the most user-friendly digital channel in society,” through a network of over 50,000 ATMs in five countries around the world, we will establish a social infrastructure accessible to anyone, anytime and anywhere to provide a variety of services needed by users.		Expand earnings opportunities by providing services that meet diverse needs	Accumulate intellectual capital in the development of diverse services (Japan’s first, world’s first, and industry’s first technological capabilities)	Customer contacts with more than 2.94 million ATM users every day Build relationships with more than 680 ATM related partners
Creation of new values Create unique value beyond our customers’ expectations	On top of the basis of “being close-by and convenient” and “safety and security,” through the development of new “retail x finance” services out of the box of conventional financial services, we will create new value that will connect us with customers in their daily lives.		Expand earnings opportunities by providing services in new areas Reduce costs by improving operational efficiency through AI and data utilization	Accumulate intellectual capital through proprietary UI/UX development Improve employee skills through AI and data utilization Develop new services based on AI and data utilization	Co-create value with external partner companies
Source of value creation Create a society where everyone can be active	Respecting human rights and diversity, the entire Seven Bank Group will strive to be a group of companies that help everyone to have a sense of purpose in life and satisfaction in work. We will expand our drive to also involve our business partners and partner companies to achieve a society where diversity can thrive.		Achieve growth strategy targets through highly motivated human resources Reduce human resources acquisition costs through high corporate image	Enhance engagement and performance through a comfortable work environment and job satisfaction Create innovation through the active engagement of diverse human resources	Improve brand and reputation by building a network with external parties
Value creation for the future Contribute to the prosperity of our society and the future of the Earth	To hand over the future of the Earth and society to future generations, we, as a corporate citizen and a financial institution, will work on solutions to various issues that will allow companies, our society, and the planet to be sustainable.		Reduce future climate change costs through efforts to reduce environmental risks	Develop environmentally friendly services by fostering environmental awareness among employees	Work with ATM partner companies to resolve environmental and social issues	Possibility of developing new environmentally friendly ATMs	Efforts to reduce the environmental impact of the entire ATM network

Initiatives for material issues

In each material issue, the Group has set medium - to long-term targets that will lead to the resolution of social issues, and all aspects of the Group’s business and various initiatives are linked. In particular, we will introduce unique and distinctive initiatives that the Group is focusing on.

Material issues	Medium - to long-term targets	Performance Indicators (Results for FY2024)	Results for FY2024	Target
Fundamental value Offer a social infrastructure available anytime with safety and security	Realize non-stop social infrastructure	ATMs available 24 hours a day, 365 days a year	ATM operating rate: 99.98%	ATM operating rate: 99.98% or higher
	Thoroughly implement robust security measures Build a foundation for safe and secure financial infrastructure and services	Strengthened measures to prevent fraudulent use in order to protect customers from financial crime, and expanded the framework for safe and secure financial transactions throughout the financial industry Held conferences on AML/CFT and financial crime countermeasures to contribute to the understanding of the financial industry as a whole and raised the level of countermeasures ACSiON, Ltd. (group company): ー Strengthened measures to prevent phishing attacks in cooperation with Google Cloud Japan G.K. ー Acquired certification from the competent minister in the Japanese Public Key Infrastructure (JPKI) for the first time among bank subsidiaries, and provided new customer identification services combining know-how in fraud detection Bank Business Factory Co., Ltd. (group company): ー Obtained a foreign exchange transaction analysis business license and provided financial institutions, etc. with a highly effective platform against money laundering and the financing of terrorism
Social value Realize a wide variety of services accessible to anyone, anywhere	Realize UI/UX that combines safety and convenience	Listened to customers and enhanced customer experience value with superior operability and attractive design Launched “ATM Design Studio,” in-house development of ATM software and UI design, and provided more attractive ATM services through frequent improvement of at least one case per month Formulated the “Design System” design concept for the “My Seven Bank” app, improved clarity and visibility of the app, and supported safe and secure transactions
	Expanded the global ATM network	Met overseas cash needs	Number of ATM transactions overseas: 5.328 million transactions	Number of ATM transactions overseas: 5.877 million transactions
	Expand ATM services to meet diverse needs	Responded to a cashless and digital society	Number of smartphone ATMs installed 110 (including 22 banks)	Provide services that respond to the needs of diverse customers, and aim to further expand the number of places where these services are introduced, as well as increase awareness and penetration of each service
		Supported local government benefits for solving social issues	Number of local governments that have introduced benefit receipt service through ATMs 11
		Met the cash needs of foreign visitors to Japan	Number of cases where cards issued overseas are used 14 million
		Expanded services for the visually impaired In addition to deposit/withdrawal and balance inquiries of deposit accounts, an electronic money top-up service was added to the voice guidance function from October 2024. Total number of transactions using audio guidance in the second half of FY2024: 14,221 (117.1% of the same period of the previous fiscal year)
Creation of new values Create unique value beyond our customers’ expectations	Realize an multicultural symbiosis society	Provided simple, convenient, and reliable overseas remittance services	Number of international money transfer cases 660,000	Achieve results that are on par with or exceed those of the previous fiscal year
	Realize an multicultural symbiosis society	Took measures for foreign residents in Japan	Number of accounts opened by foreigners at ATMs 3,084 *Service launched in December 2024	Achieve results that are on par with or exceed those of the previous fiscal year
	Create a digital society in which no one is left behind	Realized a world where ATMs are the conduit for all manner of procedures and authentication	“+Connect” partners 28	Aim to further expand the number of places where these services are introduced, as well as increase awareness and penetration of each service
	Create a digital society in which no one is left behind	Co-create new value with external partners “Tsutsumuto,” an ATM-based wedding gift money transfer service, was developed through a joint project with a start-up company. In FY2024, the service was used for approximately 600 weddings, and more than 10,000 congratulatory gifts of money were transferred.
	Create value through AI and data utilization	Initiatives to create new value by leveraging AI and data Developed a unique credit-scoring AI using 7iD shopping data, and conducted demonstration experiment Utilized AI chatbot in contact centers and realized improved convenience and operational efficiency
		Improved business processes in own departments through the use of IT	Number of apps developed by citizens 79	Number of apps developed by citizens 101 (As of March 31, 2026)
		Promoted operational efficiency through utilization of generative AI	7Bank-Brain (internal generative AI) MAU ratio among employees: 30.1%	7Bank-Brain (internal generative AI) MAU ratio among employees: 75% (As of March 31, 2026)
Source of value creation Create a society where everyone can be active^*	Promote employees’ autonomous growth and voluntary career development	Promoted a workplace environment and system design in which each employee can play an active role In addition to implementing group and internal recruitment, and open careers in which employees are transferred across the company, supported the voluntary development of careers by, for example, establishing an expert course for career-track employees, which aims to deepen specialization.
	Improve employees’ well-being and engagement	Engagement scores (Wevox)	71	Achieve results that are on par with or exceed those of the previous fiscal year
		Ratio of paid leave taken by employees	81.9%	Achieve results that are on par with or exceed those of the previous fiscal year
		Childcare leave return rate	100.0%	100.0%
		Ratio of male employees who took childcare leave	61.5%	Achieve results that are on par with or exceed those of the previous fiscal year
	Build a corporate culture that embraces diversity and turns it into strength	Ratio of female managers	18.7%	30% or higher by 2030
		Ratio of overseas employees to consolidated number of employees	17.1%	Achieve results that are on par with or exceed those of the previous fiscal year
	Contribute to the creation of a society that respects diverse human rights	Participation rate in human rights training	83.4%	100.0%
		Participation rate in compliance training	100.0%	100.0%
Value creation for the future Contribute to the prosperity of our society and the future of the Earth	Promote financial education for the next generation	Improved financial (crime) literacy of students through implementation of financial education Financial education materials for elementary school students were provided, and approximately 300 schools have utilized them as of the end of FY2024. Visited 16 schools, including junior and senior high schools, and provided on-site lectures on measures against financial crime to a total of approximately 10,000 students.
	Enhance and expand efforts to address environmental issues	GHG emissions	9t-CO2 (Seven Bank alone, Scope 1) 816t-CO2 (Group consolidated, Scope 2)	Reduce from the results of the previous fiscal year Establishment of long-term targets will be considered in the future.
	Enhance and expand efforts to address environmental issues	Established a resource recycling system for disposed ATMs	Recycling rate for ATMs: Approximately 100%	Maintain the same level
	Fulfill social responsibilities for diverse stakeholders	Contributed to solving social issues through a new donation style Provided a service that allows people to make donations to social welfare organizations via Seven Bank ATMs (A total of ¥96 million was donated through ATMs in FY2024.) Conducted a charity campaign and presented a donation to Radio Charity Musicthon (donation amount of ¥3.0 million through a charity campaign in FY2024) It was made possible for users to choose to donate money to the Seven-Eleven Memorial Foundation at the time of using the ATM cash receiving service. (Donations of ¥2.6 million were received through the ATM cash receiving service in FY2024.) Seven Card Service provided a nanaco point donation function. (Received ¥2.2 million donations using nanaco points in FY2024)

*Figures and results are for Seven Bank alone.

Sustainability

Seven Bank’s Sustainability: Top Message; Sustainability Management

Materiality: Material Issues Designation Process; Fundamental value; Social value; Creation of new values; Source of value creation; Value creation for the future

ESG: Environment; Social; Corporate Governance

Social Contribution Activities: Social Contribution Activities

Other Corporate Information: Investor Relations; Company