Management Policy, Management Environment, and Issues to be Addressed,etc.

Corporate Principles and Management Policy can be found on the following links.

Basic Management Policy

Seven Bank is working to offer safe, accurate, and speedy banking services deeply embedded in customers’ daily lives as their “wallets.”We aim to achieve this by creating a network of ATMs accessible 24 hours a day, 365 days a year, utilizing the 20,000-plus retail locations of Seven & i Holdings and its operating companies (the “Group”) led by Seven-Eleven convenience stores.

The Bank operates under an ethos of coexistence and co-prosperity by encouraging other financial institutions to make use of its easily accessible ATMs, thereby enhancing customer services and improving business efficiency.

Further, by proactively offering financial services sought by customers of the Group, we are working to attract a wider range of customers to the Group stores more often, and we will continue to pursue synergies to enhance the Group profitability.

Charter of Ethics

Seven Bank recognizes that "a bank is highly public in nature and have significant responsibilities to contribute to the economy and society." It is also fully aware of the importance of complying with laws and regulations and acting in accordance with economic and social ethics. We pledge to make constant efforts to achieve this, and we hereby establish a Charter of Ethics to demonstrate our resolve to overcome.

This Charter of Ethics serves as the basis for Seven Bank's business decisions as an ethical code of conduct to be observed as a company.

Be fully aware of the public nature and social responsibilities of a bank.

Be fully aware of the public nature of a bank, and contribute to the stable development of the economy and society at domestic and abroad by devoting ourselves to sound management based on management's own responsibility and fulfilling its social responsibilities.

Provide highly convenient, customerfocused services, matched to current needs.

We will always act with sincerity from the standpoint of customers. We will also pursue higher convenience and provide high-quality financial services that meet the needs of the times.

Act with integrity and fairness.

We shall observe laws and regulations and the spirit thereof, and always act in good faith and fairness so as not to violate social norms. We will firmly oppose antisocial forces that threaten the order and security of civil society.

Communicate with society.

Contribute to the development of society through the appropriate exercise of a bank's intrinsic functions, and act with awareness of being a good corporate citizen or a member of the international community. Furthermore, we will endeavor to ensure that our corporate activities are in line with the common sense and expectations of society through close communication with society, including active and fair disclosure of management information.

Have respect for humanity.

We value comfort and spiritual affluence, respect people, provide employees with opportunities for self-realization, and create a free-and open mind-set corporate culture.

In order to comply with the Charter of Ethics and its spirit, it is important that the top management of the company take the initiative in setting a example, and that the top management demonstrate strong leadership so that all employees can understand its significance and put it into practice.

Our employees must comply with the Charter of Ethics and its spirit as well as act as a guideline, and we must fulfill our mission to contribute to the development of the economy and social by continuing to provide high-quality financial services that meet the needs of our customers, thereby striving to establish and maintain the unwavering trust of society.

Management Environment and Issues to Be Addressed

On the other hand, changes in domestic and overseas macro economies and the increasingly diverse settlement methods as technologies evolve could affect our earnings. To achieve our sustainable growth under these circumstances, we recognize as a crucial issue the need to create a broad-based earnings structure. To solve the issue, in May 2017 we formulated the Medium-Term Management Plan with fiscal 2019 as its final year.
We regard current fiscal year, the midyear of our Medium-Term Management Plan, as an important year for achieving the targets of the Medium-Term Management Plan, under which we address changes in our business environment and implement key initiatives.

Concrete initiatives and status of progress to these services _pl for the above are as follows:

ATM Platform Business

Positioning our nationwide ATM infrastructure with more than 24,000 units as our platform, we will develop initiatives to increase the number of business partners and customers. To attract more customers to our ATM services, we began providing services that cater to businesses that have newly entered the settlement market in addition to enriching our services for existing business partners such as financial institutions. Also, we will continue to strive to explore new markets through such measures as preparing to provide new ""cash receiving services,"" aiming to create ATM utilization styles that transcend convention.
In addition, while continuing the steady installation of ATMs within the Group, we will aggressively promote the installation of high-operability ATMs outside the Group as well, primarily at each center of transportation, logistics and tourism. Through these initiatives, we will strive to enrich both the quality and quantity of our ATM platform as we expand our ATM services.

Settlement and Account Business

Settlement and account business In addition to improving convenience and enhancing profitability of our existing services such as personal loan services and international money transfer services, we will strive to further increase earnings by developing our proprietary services utilizing new technologies. In collaboration with the Seven & i Group's CRM and digital strategies, we will work to provide new financial services such as payment services to approximately 22 million customers visiting Seven-Eleven Japan and other Group companies each day.

Overseas Business

The installation of ATMs in Seven-Eleven Japan stores in the U.S. by FCTI, Inc., our consolidated subsidiary in North America, which began in fiscal 2017, is progressing as planned. To improve ATM utilization rates, we will strive to quickly and stably operate ATMs by raising awareness of our ATM services and by thoroughly preparing for the provision of new services that pursue synergies with Seven-Eleven Japan in the United States.

We will invest aggressively in new fields for growth as a company and prepare for the risks necessary for business continuity as an infrastructure provider. At the same time, we will steadily strengthen shareholder returns. Our basic policy on shareholder returns is to maintain a dividend payout ratio of 40% or higher, and to maintain and increase the amount of dividends in a stable and continuous manner.
As described above, we will promote our Medium-Term Management Plan based on our response to social issues and changes in the business environment, and will actively pursue CSV (Creating Shared Value) that creates value for both society and the company through our core business, aiming for a sustainable society and sustainable growth.