P.71 Lifestyle Business Group

71 03. Performance & Data

Lifestyle Business Group

Address social issues related to food and health from consumersʼ perspectives to make their lives more enjoyable.

Main relevant material issues

▍Quantitative information

800　600　400　200　0 15　10　5　0

FY2025 Investment｜Approx. ¥50.0 billion

Main investment areas

• Domestic pharmacy business
• North American healthcare business

Major asset replacement

• Sale of the melon business of fresh produce business in Europe and the Americas

▍External Environment: Business Environment

Opportunities

• Diversifying consumer purchasing channels and segmentation of demand
• Expanding retail markets overseas backed by the rise of the middle class,

particularly in emerging economies

• Improving efficiency in containing medical costs in Japan and developed countries and improving healthcare infrastructure in emerging countries
• Growing interest in the SDGs, such as those related to food loss and reduction of environmental impact
• Advances in digital and AI technologies

Risks

• Intensifying competition from domestic supermarkets, drugstores, and others (including major distribution companies)
• Impact of climate change, unfavorable weather, and geopolitical risks on the global food supply, production, and logistics
• Rising labor, fuel, and material costs, and high interest rates

▍Internal Environment: Key Strengths

• Retail operating know-how and customer access cultivated through Summit and Tomodʼs
• Brand business expertise gained through Feiler
• Knowledge of the healthcare business in Japan and overseas,

ability to build business models, and market presence

• Robust global platform for food distribution and sale

▍Business Strategy

• Expand our store networks in supermarket, drugstore, and pharmacy businesses, and leverage know-how, digital technologies, AI, and data to develop new businesses
• Broaden our primary care system and community-based comprehensive care–related businesses to address rising healthcare costs
• Leverage our expertise in the sales and processing of food and foodstuffs and our network to expand our earnings base and develop businesses in growth markets

▍Business Development

Retail business Summit, Feiler Japan, etc. Data utilization and retail-related business (Retail Data Marketing*, LXIO) * Business model Food distribution business (SC Foods, etc.) Drugstore and pharmacy business Tomodʼs, Sumisho Pharmacies, etc. Fruit and vegetables business in Europe and Americas (Fyffes, etc.) Healthcare-related businesses SC Healthcare Holdings, CareClinics Healthcare Services, Vast Medical Holdings, ActivStyle, etc.

▍Medium-Term Management Plan 2026

Initiatives in final year of medium-term management plan Initiatives for next medium-term management plan

• Enhance value through new store openings and store renovations; leverage digital technologies and AI to strengthen existing businesses
• Expand pharmacy businesses in Japan and healthcare businesses in Southeast Asia; invest in and engage with healthcare businesses in North America, the worldʼs largest healthcare market
• Create new businesses leveraging data analysis and utilization based on the member IDs of Summit and Tomodʼs
• Maximize earning power by harnessing the Groupʼs collective strengths, including cross-business collaboration with existing businesses; expand business scale through M&As
• Leverage strength in frontline business operation, as well as digital technologies and AI, to enhance operations and expand profitability
• Create new businesses (marketing, retail media, etc.) as a data-driven retailer
• Enhance competitiveness by developing talent with expertise in digital technologies and AI

▍Key Market Trends

We aim to develop businesses that not only foster improved patient convenience and quality of life but also help control and optimize healthcare costs. In the process, we will address various social challenges, such as inadequate access to medical care in Southeast Asia and rising healthcare expenditures in countries like Japan and U.S.

Healthcare expenditures and economic growth rates (Countries where the Group operates)

Growth rate (%) Bubble size: Total healthcare costs 15　10　5 (Parentheses): Private healthcare costs Foundation established for further expansion Developing the diabetes-related market in U.S. (worldʼs largest market)

Note: The bubble size in the graph is displayed smaller than actual proportions.

Source: Company estimates based on various data from the IMF and WHO.

• ※Hiroki Takeno Group CEO, Lifestyle Business Group