Notice Regarding Conclusion of Business Alliance Agreement with Seven & i Holdings Co., Ltd.

July 5, 2018
Zoshinkai Holdings Inc.

Zoshinkai Holdings Inc. (CEO Takaaki Fujii： below, Zoshinkai Holdings Inc. and its subsidiaries will be referred to collectively as “the Z-kai Group”) hereby gives notice that it has concluded an agreement regarding a business alliance (hereinafter, “the Business Alliance”) with Seven & i Holdings Co., Ltd. (hereinafter, Seven & i Holdings Co., Ltd. and its subsidiaries will be referred to collectively as “the Seven & i Group”). Details are as follows.

1. Reason for the Business Alliance

The Z-kai Group offers a wide range of educational services, including correspondence courses, cram schools, publications, mock examinations, assessment and ICT-based tutoring services, aimed at students ranging from kindergarten children to adults. The Group delivers these services in line with the corporate philosophy, “Excellence in education for future global leaders” through the Z-kai Group’s subsidiaries, including Z-kai Inc, and Eikoh Inc.

The Seven & i Group operates more than 60,000 stores in and outside Japan and is engaged in an assortment of undertakings to meet the needs of a wide range of customers, encompassing convenience stores, superstores, department stores, financial services and specialty stores; and is actively engaged on a daily basis in enhancing customer service, expanding its store network, and strengthening its product development capabilities, procurement capabilities and brand name.

The Business Alliance aims to provide highly user-friendly, convenient educational services that are more easily accessible to customers by integrating the Seven & i Group’s diverse array of business undertakings designed to satisfy a wide range of customer needs, with the high-quality educational materials and services that the Z-kai Group has provided continuously in the field of education since its founding. Under the Business Alliance, the Seven & i Group and the Z-kai Group will aspire to assist in the education of students and their studies at home, and to help in the resolution of various other social issues throughout Japan. It is with this in mind that the two groups have discussed and considered every aspect of the Business Alliance.

As part of this process, the Z-kai Group and the Seven & i Group have delivered notable results through collaboration. In February 2018, the two groups held the “All-Japan Senior High School Cho-ryomon (Excellent Practice Question) Drill Competition Supervised by Z-kai,” an event for senior high school students organised in coordination with the stores of Seven-Eleven Japan Co., Ltd., a subsidiary of Seven & i Holdings Co., Ltd. The event was a resounding success, attracting more than 100,000 participants.

Under these circumstances, the Z-kai Group and the Seven & i Group have agreed that the Business Alliance will enable the two groups to realize the aforementioned aspirations by facilitating the effective use of the management resources and expertise of both groups, while spurring growth in their business profits, leading to further success and maximizing corporate value for both parties. Based on this consensus, the two groups have concluded the Business Alliance agreement as of today.

2. Details of the Business Alliance

The details of the Business Alliance are set forth below. Going forward, the two groups will hold discussions and deliberations with a view to implementing the Business Alliance.

1) Jointly holding of educational events
Following the aforementioned “All -Japan Senior High School Cho-ryomon (Excellent Practice Question) Drill Competition Supervised by Z-kai,” social media-linked events are scheduled to be held by the Z-kai Group and the Seven & i Group, and in collaboration with partner companies outside of the two groups. In addition, the two groups will continue to plan and implement events that will stimulate the intellectual curiosity of children and their desire to learn.

2) Use of actual 7-Eleven stores as locations for the submission of answer sheets.
Students using the Z-kai Group’s correspondence education services will be able to submit their answer sheets using the multi-functional copy machines installed at 7-Eleven stores, thereby improving customer convenience and speeding up the return of answer sheets. This service is scheduled to be available for the preschool course starting in August 2018, and to be extended to other courses thereafter over time.

3) Other collaborative initiatives
In addition to the foregoing, the two groups will promote initiatives aimed at improving customer comfort and convenience, including the sale of the Z-kai Group’s study-aid books on the Seven & i Group’s online shopping site (https://www.omni7.jp/), which is already up and running, and the introduction of nanaco gift cards as rewards for effort to members of the Z-kai Group’s correspondence education courses. In addition, the two groups will proactively discuss and consider various matters agreed upon by both parties for the purpose of furthering the aims of the Business Alliance over the medium and long terms, including opening classroom locations in the Seven & i Group’s retail facilities to provide the face-to-face educational services centering on the Z-kai Group’s cram schools.

3. Outline of the Counterparty to the Business Alliance (as of February 28, 2018)

4. Outlook for the Future

In the course of discussions and procedures relating to the Business Alliance Zoshinkai Holdings Inc. will promptly disclose any relevant matters that may occur.
The Z-kai Group and Seven & i Group will continue to strive to create added value as we strive to meet customers’ expectations.