Notice of the Posting of Other Income and Other Expenses (IFRS) and Revisions to Earnings and Dividend Forecasts

July 8, 2020

This document is an English translation of a statement written initially in Japanese.

The Japanese original should be considered as the primary version.

FamilyMart Co., Ltd.

(Code No. 8028, Tokyo Stock Exchange, 1st Section)

Representative Director and President: Takashi Sawada

In accordance with a Board of Directors meeting held today, the Company expects to post other income and other expenses (IFRS), and taking into account recent operating performance and other factors, has resolved to revise its consolidated earnings and dividend forecasts for the fiscal year ending February 28, 2021 from those announced on April 13, 2020.

1. Posting of Other Income (IFRS)

At a Board of Directors meeting held today, the Company resolved to transfer some of its shares in a subsidiary and to change its category from a consolidated subsidiary to an equity-method affiliate, necessitating the measurement of the market value of owned equity in the subsidiary. As a result, the Company expects to recognize approximately ¥70.0 billion as revaluation gains in its consolidated financial statements, posting that amount as other income (IFRS). This posting is also expected to affect profit attributable to owners of parent by approximately ¥50.0 billion.

For information about the partial transfer of shares in the aforementioned subsidiary, please refer to a separate news release issued today, entitled “Notice of Partial Transfer of Shares Accompanying Transfer of Subsidiary.”

2. Posting of Other Expenses (IFRS)

The Company expects to post approximately ¥35.0 billion in other expenses (IFRS) due to such factors as the impairment of FamilyMart stores and right-of-use assets.

3. Revisions to the Earnings Forecast

(1) Revisions to Earnings Forecast for the Fiscal Year Ending February 28, 2021 (March 1, 2020 to February28, 2021)

(2) Reasons for the Revisions

FamilyMart (parent) was affected in the first quarter by the spread of the novel coronavirus disease (COVID-19). Daily business was down, particularly at stores in city center office locations and in tourist areas, prompting a revision in gross operating revenue. Meanwhile, we expect selling, general and administrative expenses to rise as the result of higher advertising and promotional expenses for measures to restore daily transaction volume and gross operating revenues and core operating profit are expected to fall our previously announced figures by approximately \23.0 billion each. Furthermore, due to exclusion from the scope of consolidation of the subsidiary to be transferred as outlined in 1. above, we now expect gross operating revenue falls approximately \36.0 billion and core operating profit falls approximately \5.0 billion to fall below our previously announced consolidated earnings forecast.

Although the posting of other income (IFRS) as noted in 1. above will have a positive impact on profit, we also expect to post other expenses (IFRS) as outlined in 2. above. As a result, we expect profit before tax to be higher than was indicated in our previously announced consolidated earnings forecast. However, as the result of tax expenses and other items related to revaluation gains, profit attributable to owners of parent is unchanged from our previous forecast.

4. Revisions to Dividend Forecast

(1) Revisions to Dividend Forecast for the Fiscal Year Ending February 28, 2021

(2) Reasons for the Revision

To date, while striving to enhance its financial standing and management structure the Company has followed a fundamental policy of distributing dividends from surplus in a stable and ongoing manner in line with growth in consolidated operating performance. However, as was announced separately today in the “Notice Regarding the Expression of Opinion Related to a Tender Offer for the Company’s Shares by ITOCHU RETAIL INVESTMENT, LLC, a Subsidiary of Our Parent Company, ITOCHU Corporation,” we anticipate a tender offer. On the premise that the Tender Offer will be success, dividends from surplus not be awarded for interim and Full-year the fiscal year ending February 28, 2021. If it becomes clear that the Tender Offer will be unsuccessful, the Company will promptly determine its future dividend policy (including the policy for dividends at the end of the fiscal year ending February 28, 2021) and again disclose a revised dividend forecast.

Note: The above-mentioned forecasts are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the company. They should not be construed as guarantees these figures will be achieved. Actual business and other results may differ substantially due to various factors.