For a sustainable& happy Life
Integrated Report2022
Fiscal year ended
February 28, 2022

1

Corporate Philosophy

Through “reliable management with noble
aspirations” contribute towards the realizationof a sustainable and flourishing society
As a supermarket that handles an extensive range of products, LIFE CORPORATION has been
supporting people's lives with sincere service and making trusting relationships withcustomers its top priority since 1961. We now have 285 stores in Japan (as of the end of
February 2022).
In December 2021, we revised our corporate philosophy. The phrase "improving societal
development" encapsulated the strong will of our founder, Nobutsugu Shimizu, whose life
path ran parallel to Japan's post-war reconstruction and growth. However, having reflectedon our corporate philosophy in terms of the current social environment, we changed thephrase to "realization of a sustainable and flourishing society." Although we face a variety ofchallenges, such as climate change and the spread of COVID-19, we have made it clear that weare firmly committed to tackling these challenges and will continue to create new value by
promoting initiatives aimed towards the realization of a sustainable and flourishing society.
Our goal is to be a supermarket that remains trusted by customers, society, and employees
as an essential part of the social infrastructure in local communities.

VisionLIFE CORPORATION’s
Long-Term Vision

All LIFE stores will remain
the stores most trusted by customers
in their local communities.“Trusted”means“believed in”and“relied on.”Our goal is to be Japan’s best supermarket
that remains trusted by customers,society, and employees.

2

CONT E N T S
Value Creation Story

Editorial Policy

Sustainability

Top Message

3

Sustainability Management

29

History of LIFE

7

Materiality

31

External Environment and Social Issues

9

Reducing the Burden on the Environment

33

Value Creation Process

11

37

Pursuit of the “True to LIFE” Concept

12

Providing Safe, High Value-Added
Products and Services
Contributing to Local Communities as
Infrastructure for Everyday Life

39

Efforts to Refine the “True to LIFE” Concept

Creating a Motivating Workplace
Environment Where Diverse
Personnel Can Thrive*Mostly in Japanese. We will release more English resources in due course.

41

Product Development

13

Center Operations

15

Store Development

17

Special Features

Online Supermarket

19

Special Feature 1

Initiatives during
COVID-19

43

Card Business

21

Special Feature 2

BIO-RAL

45

Digitization Strategy

22

Cautionary Note Regarding Forward-Looking Statements
In this report, statements concerning performance forecasts andbusiness plans for March 2022 and beyond are forward-looking
projections and are assumptions and judgments based on currently
available information. Accordingly, actual results, performance,and other information may differ from our forecasts.

Scope of Reporting

GovernanceManagement Strategy

LIFE CORPORATION has issued Integrated Report 2022, our first
integrated report, to further strengthen communication with all its
stakeholders, including our shareholders and investors, customers,
business partners, employees, local communities, etc. To contributeto the realization of a sustainable and flourishing society,Integrated Report 2022 presents information on LIFE
CORPORATION’s policies and initiatives toward improving our
medium- to long-term corporate value, including the values andvision we regard highly, and future management plans. During theediting process, we focused on content with a high level ofimportance while aiming for a concise and easy-to-understandstructure. For more detailed information, please refer to our
website in addition to various disclosure materials*.

Corporate Officers

47

Review of the 6th Medium-Term Plan

23

Message from an Outside Director

48

Management Strategy in FY2022

24

Corporate Governance49

Toward Formulation of
7th Medium-Term Plan

24

At a Glance25

Financial Capital Strategy

27

Corporate Data
Key Consolidated Financial Data

55

Corporate Information

57

Stock Information

58

Applicable period: March 2021 to February 2022
(some information from March 2022 onward is included)
Scope: Activities of Group companies centered on LIFE
CORPORATION (in cases where the main subject companies aredifferent for each field of activity, the scope of coverage is
described)
Publication date: November 2022

Reference Guidelines
The Integrated Reporting Framework (International Financial
Reporting Standards Foundation)
Guidance for Integrated Corporate Disclosure andCompany-Investor Dialogues for Collaborative Value Creation(Ministry of Economy, Trade and Industry)Value Creation Story

Value Creation
Story

Efforts to Refine
the “True to LIFE”
Concept

Management
Strategy

CONTENTS

Sustainability

Special Features

GovernanceCorporate Data

In line with our corporate philosophy, we have continually provided various value to all our stakeholders
We will continue to create new value for our customers and other stakeholders, while adapting ﬂexibly to changes in the external environment

Top Message

Becoming Japan’s number
one supermarket thatremains trusted by customers,society, and employees
As people’s lifestyles become increasingly diverse,
we will differentiate ourselves fromthe homogeneous competition and refine our“True to LIFE” concept to reflect customer needs,
while also taking on the challenge ofachieving further growth.

Takaharu Iwasaki
Representative Director andPresident3

Value Creation
Story

We want all LIFE stores to remain the mosttrusted in their local communities
The prolonged COVID-19 pandemic has caused
significant changes in people’s values and lifestyles. It has
also impacted the LIFE Group’s business environment invarious ways. We have responded to this situation byclarifying the Group’s vision through the “True to LIFE
Declaration.” We are determined to become Japan’s
number one supermarket through initiatives basedaround the following three goals.
First, we aim to realize our vision of all LIFE storesremaining the stores most trusted by customers in theirlocal communities, and becoming Japan’s number one
supermarket that remains trusted by customers, society,and employees. “Trusted” means “believed in” and“relied on” and it can’t be achieved without one or theother. We believe that the Group can achieve growth if
each of our stores remains the most trusted in their local
communities.
Second, we are determined to put the “LIFE Pledge”
into practice. The “LIFE Pledge” requires each LIFE
employee “to think and act from the customer’s point ofview,” “to show consideration for their co-workers and torespect diverse values,” and “to fulfill both their teamcommitments and personal responsibilities.” We will
maintain a corporate culture in which all of our actions
are guided by the following three ideas: putting thecustomer ahead of our own interests, such as profits andefficiency, doing the best work possible by aligning ourefforts with those of our co-workers while accepting
diverse ideas, and always fulfilling our commitments anddoing what needs to be done.
Third, we are determined to offer something extra in
addition to providing high-quality products and services
in nice stores. Good stores situated in attractive locations
and offering excellent products and service are expected
nowadays, so are not enough to ensure success in a

Efforts to Refine
the “True to LIFE”
Concept

Management
Strategy

CONTENTS

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Special Features

GovernanceCorporate Data

4

fiercely competitive market. Under the circumstances of
rapid advances in information systems, we need tocreate high-value-added and attractive environments forboth our customers and employees to achieve further
growth by taking advantage of digital and technology,
etc.
Review of 2021

Record-high operating revenue, and secondhighest results ever for ordinary profit andprofit attributable to owners of parent
The Group’s financial results for FY2021 show operating
revenue reaching a new record of ¥768,335 million (up1.2% year on year), marking our 18th consecutive year ofrevenue growth. Factors that contributed to thisachievement include continuing demand for eating at
home due to COVID-19, opening new stores, expansionof our online supermarket business, and the promotionof our Company credit card. Other growth drivers
included the expansion of our lineup of private brandproducts, including “BIO-RAL,” and initiatives to enhancethe deliciousness of our products. While our operating
profit did not match the result for FY2020, which saw amassive increase in demand for eating at home, it stillreached ¥22,932 million (down 16.3% year on year). We
achieved our second-highest results ever for ordinary
profit at ¥23,695 million (down 15.8% year on year), andalso for profit attributable to owners of parent at¥15,208 million (down 14.7% year on year). In FY2021,
we invested over ¥6 billion in large-scale renovations at
32 of our existing stores. Our latest results indicate that
this investment is pushing us in the desired direction.
In FY2021, we focused on safety and security
initiatives and capital expenditure. Going forward, we
will also prioritize measures to address increases in thecost of raw and processed materials, energy, logistics,
and other inputs. When conditions are right, we will also

work to resume in-store events and other Company
activities that were postponed in response to COVID-19,
which led to a decline in opportunities for customeremployee interactions.
Progress on the 6th Medium-Term Plan

Differentiating ourselves fromthe homogeneous competition
Numerous mid- and upper-level members ofmanagement participated in lively discussions as part of
the formulation process for the 6th Medium-Term Plan,
which was launched in FY2018. One of the conclusions
to emerge from this process was that the “True to LIFE”
concept is a vital source of strength for the Group andthe key to our future growth. This philosophy is reflectedin the emphasis placed on investment in employees,
investment in stores, and investment in products asstated in the action plans under the medium-term plan.
Investment in employees is a particular priority for
the Group. I want LIFE to become a company that helps
improve employees’ chances of achieving job

Value Creation
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Efforts to Refine
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Concept

Management
Strategy

CONTENTS

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Special Features

GovernanceCorporate Data

5

Top Message

satisfaction, at which diverse people succeed in a stressfree environment without being pressed for time, among
other things. To achieve these goals, we have expandedauthority and responsibilities at the individual store level
and raised awareness of the importance of independent
thought and action. We have also enhanced our
personnel systems to ensure proper personnel evaluationfor employees who work proactively and are ready totake up new challenges. Another measure is training andeducation for future management, including amanagement seminar run by the president.
In terms of investment in stores, in FY2021 we
opened eight new stores, including stores in largecommercial facilities, small urban stores, and BIO-RAL
natural supermarkets. We also responded to changing
customer needs by providing a more comfortable
shopping environment through large-scale renovations
at 32 stores. The aim of these renovations was to create
sales display areas consistent with LIFE’s brand that meetcustomer needs, including the establishment of online
supermarkets, enhancing product lineups that meet highdemands for eating at home and regional needs, andthe implementation of BIO-RAL corners. In FY2022, weplan to open 11 new stores, most of which will be large
stores. Our flagship CENTRAL SQUARE YEBISU GARDEN
PLACE Store opened in April.
For investment in products, we worked todifferentiate LIFE from its competitors by offering original
products. We strengthened product development offour private brand products̶LIFE PREMIUM, BIO-RAL,
Smile Life, and star select. Our investment in BIO-RAL
products for customers interested in health and natural
products was especially successful. We expanded the
product range and established more BIO-RAL corners,
resulting in an extremely pleasing trend in sales, which
surged by 60% year on year to ¥2.9 billion.
We are also working to build our online supermarket
and credit card businesses, which we see as key sourcesof strength for the Group.
Based on the needs and goals of our customers, weoffer both our online supermarket and LIFE’s online
supermarket service through Amazon. We havedeveloped apps and systems to improve customer
convenience of our online supermarket and improve theefficiency of store operations. Our priorities for the
Amazon-based online supermarket service are to expand
its scope as soon as possible. By using data andtechnology, we aim to create a seamless environment inwhich customers can enjoy online or in-store shoppingat any time.
The development of our card business is being driven
by LIFE FINANCIAL SERVICE. Established in April 2015,
this subsidiary issues the company credit card LC JCB
Card, which offers the greatest benefits to our customers,
as well as the e-money point card, LaCuCa. In addition toenhancing customer convenience at checkout, our cardbusiness also enables us to offer loyalty points and otherbenefits, and to utilize sales data to better respond to
customer needs, thereby enhancing customer support
for our stores. In the second half of FY2021, we steppedup our efforts to increase membership of the LC JCB
Card. As of the end of February 2022, the combined
membership of the LC JCB Card and the LaCuCa e-money
point card was approximately 4.9 million, a year-on-yearincrease of around 340,000 people. We will continue toadapt to the ongoing trend toward a cashless society
by offering cards with the highest customer benefits
and usability.
We are using digital systems and technology suited
to each customer to establish digital relationship throughone-to-one marketing. These technologies are also
contributing to the improvement of efficiency in working
environments. This is leading to further improvements instore service levels, since employees have more time tospend on improving the sales space and serve customers.
Although our commitment to initiatives under our
6th Medium-Term Plan has not wavered in the face of
unexpected environmental changes triggered by
COVID-19, we have become even more aware of how
important it is to ensure the safety and security of both
our customers and employees, and of our vital mission asa lifeline for the community.
For more than 2 years, the supermarket industry as awhole has been able to maintain an upward trend in its
business performance without resorting to excessive
price competition, in part because of external factors
such as increased demand for eating at home. However,in 2022, we have seen growing uncertainty regarding
the global economy, consumer spending trends, andbusiness environments due to heightened geopoliticalrisks, soaring prices for resources and grain, and otheruncertainties. In this environment, supermarkets needto fulfill their basic role as part of society’s foodinfrastructure, while also responding to the diverse
needs of customers. I believe that if individual
supermarkets shift their mindsets toward pursuingpolicies characterized by originality, we can transformthe industry by not only addressing product pricing

Value Creation
Story

issues, but also by improving the quality of products andservices. Therefore, a key goal for the Group will be “todifferentiate itself from the homogeneous competition.”
Simple price competition weakens companies and canfrustrate efforts to achieve sustainable growth. Ourpriority is to ensure that all LIFE employees are firmly
committed to this transition away from homogenous
competition, so that we can pursue strategies leading
to the provision of high added value, including
strengthening development of original products,
proactively investing in new stores and renovations,
expanding our online supermarket business, promoting
our card business, and utilizing digital systems andtechnology.
FY2021 was meant to be the final year of the 6th
Medium-Term Plan. However, the impact of COVID-19
forced us to postpone some of our policies andinitiatives, and because of this, we decided to extend theplan by one year so that we can fully complete all of ourinitiatives. The efforts of our entire organization will befocused on achieving this goal in FY2022, which we havedesignated as the “year of completion” for the 6th
Medium-Term Plan.
Under the 7th Medium-Term Plan, which we will
launch in FY2023, we will follow the same direction andstrategies as under the 6th Medium-Term Plan. As withthe previous plan, we will again identify and analyze
current priorities through discussions involving executives
at the middle management level and above. The newplan will be announced to the public in early 2023.
Sustainability Initiatives

Towards the realization of a sustainable andflourishing society
Sustainability is a key priority for the LIFE Group, reflectedin our corporate philosophy, “through reliable
management with noble aspirations, contribute towards

Efforts to Refine
the “True to LIFE”
Concept

Management
Strategy

CONTENTS

Sustainability

Special Features

the realization of a sustainable and flourishing society.”
In particular, we have started to become more
directly aware of the effects of climate change in recent
years, leading to the realization that practical action isneeded to protect the environment and addressenvironmental issues. For example, the biogas power
generation at the Tempozan Food Process Center in
Minato-ku, Osaka, which started fully-scale operationin March 2022, simultaneously reduces food residue
waste and generates electricity, and is an example ofan initiative to solve environmental problems. We
estimate that using the food residues produced at theprocess center in this way will reduce waste by over
4,000 tons and generate approximately 700,000 kWhof electricity per year, which is enough to poweraround 160 households.
Our BIO-RAL business, which I mentioned earlier, isan initiative that helps customers enjoy healthy andfulfilling everyday lives through a lineup of products thatare safe, secure, and healthy for both people and theenvironment. The business will also contribute to therealization of a sustainable society. Other sustainability
initiatives include a switch from plastic straws and spoons
to paper and wooden ones, food education and foodloss activities, and support for producers.
In addition, our Toyosu Store in Koto-ku, Tokyo, whichis scheduled to open in Autumn 2022, is the Group’s firstever outlet to acquire the “ZEB Ready” certification,reflecting its status as an energy-saving building.
The majority of LIFE’s in-store customers are women.
We believe that reflecting the views of our female
employees in various policies will help us to achievecustomer satisfaction, and in 2012 we launched awomen’s advancement project under the directsupervision of the president. Our goal is to create
workplace environments where female employees canwork comfortably and play an active role.
In 2019, we established the Office for Diversity

GovernanceCorporate Data

6

Promotion to create a corporate culture in which adiverse range of talent can reach their full potential andplay an active role, regardless of gender, nationality, age,or employment status. We are continually striving toprovide a highly motivational working environment for
all of our employees.
We believe that our online supermarket business canhelp to address social challenges linked to the shift in
more women entering the workforce, demographic
aging, and other trends. LIFE launched its online
supermarket in 2011, and established a partnership with
Amazon Japan G.K. in 2019. Users of these services are
expanding steadily thanks to support from customers
including busy families with children, and elderly
individuals who can find it difficult to carry heavy
shopping. COVID-19 has made online supermarkets
increasingly useful. We aim to further expand ourbusiness in this area by developing new systems toenhance customer convenience, and by establishingin-house Group distribution services to improve thecapacity and quality of our distribution systems.

Becoming trusted and Japan’s best supermarket
Supermarkets play an essential role in people’s lives,
but a store that cannot attract customers will notsurvive. We will further refine our “True to LIFE”
concept, as symbolized by the words “delicious,”
exciting,” and “happy,” to continue providing original
products and services. We will also work with sincerity
to address environmental and social challenges as wemove toward our goal of becoming Japan’s number
one supermarket that remains trusted by customers,society, and employees.
We look forward to the continued support of all of
our stakeholders.

Value Creation
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Efforts to Refine
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Management
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GovernanceCorporate Data

7

History of LIFEAs a supermarket that handles an extensive range of products, LIFE CORPORATION has been
supporting people’s lives with sincere service and making trusting relationships with customers
its top priority since 1961. We now have 285 stores in Japan (as of the end of February 2022).

Nobutsugu Shimizu separates Shimizu Store’s trading
department from the food wholesale business, establishes

1956 Shimizu Jitsugyo Co., Ltd., which becomes LIFE
CORPORATION’s parent organization.

1961

Decides to operate supermarkets. Opens
first Toyonaka store (in Toyonaka, Osaka
Prefecture). Makes start on what would
become LIFE CORPORATION.

1971

Sets up a district head office in Tokyoand opens Itabashi store (Itabashi Ward,
Tokyo) as long-awaited first store inTokyo Region.

Great Hanshin-Awaji Earthquake. Including Itami store,
seven stores temporarily closed, 39 damaged. Resumes

1995 operations as soon as possible, plays important role as
lifelines for local communities.

Chairman Nobutsugu Shimizu establishes Japan

1999 Supermarkets Association, an industry group, appointed its
first chairman.

2006

In Tokyo Region, proudly opens Matsudo
Comprehensive Logistics Center2010 (Matsudo City, Chiba Prefecture), one ofOpens Nanko Logistics Center in Osaka
Region (Suminoe Ward, Osaka City).
Chairman Nobutsugu Shimizu appointed chairman of

Relocates head office to in front of JR

Tilting buildings, homes
reduced to rubble, elevatedsections of expressway
toppled over, etc. In the
midst of all this, most of
LIFE's stores resumed
operations the day after
the earthquake struck.

On the day of the earthquake,
we closed stores in considerationof the safety of our employees,
but operations resumed at
all stores the following day.
We also began providing relief
supplies to areas affectedby the earthquake.

Creates LALAPI, LIFE's original mascot.

2016
Opens Kazo Food Process Center inTokyo metropolitan area (Kazo City,
Saitama Prefecture).

Launches private brand products.

2011
1986 Japan Chain Stores Association.

Great East Japan
Earthquake (2011)

Appoints Takaharu Iwasaki as president.
Holds joint labor-management seminar
to commemorate 45th anniversary oflaunch of supermarket operations.

the largest logistics centers in Japan.

1985

Great Hanshin-Awaji
Earthquake (1995)

2009 Relocates Tokyo head office to Taito Ward, Tokyo.

1983 Listed on Second Section of Tokyo Stock Exchange.
1984 Listed on First Section of Tokyo Stock Exchange.

LIFE’s history of supporting local communities
even during major disasters

Starts own online supermarket business.
Celebrates 50 years since opening of its
first store.

Opens Kawasaki Comprehensive

2017 Logistics Center in Tokyo Region(Kawasaki City, Kanagawa Prefecture).
Opens Osaka Hirabayashi

1991 Shin-Osaka Station.

2012 Co., Ltd.

2018 Comprehensive Logistics Center in Osaka

1992 Enters into business alliance with Mitsubishi Corporation.

2013 Relocates Osaka head office to Yodogawa Ward, Osaka.

2019 Launches LIFE Online Supermarket on Amazon Japan.

Initiates a surging wave of store openings.

Enters into business alliance with Yaoko

Opens Funabashi Food Process Center

Region (Suminoe Ward, Osaka City).

Opens Sakai Food Process Center inOpens Kurihashi Comprehensive

2014 in Tokyo Region (Funabashi City, Chiba

2020 Osaka Region (Sakai City, Osaka

Prefecture) as strategic logistics base forTokyo Region.

2015 Establishes LIFE FINANCIAL SERVICE.

2021 Establishes LIFE HOME DELIVERY.

1993 Logistics Center (Kuki City, Saitama

Prefecture).

Prefecture).

Value Creation
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No. of stores

Efforts to Refine
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Concept

Management
Strategy

CONTENTS

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GovernanceCorporate Data

Operating revenue

Message from the Honorary Chairman(Stores)
400

350

Nobutsugu Shimizu
Honorary Chairman
300

In November 1961, we opened the very first LIFE supermarket,
the Toyonaka Store, in Osaka, Japan. Thanks to the support of all
our valued stakeholders, we have grown to become Japan's
largest food supermarket chain* and have celebrated our 60th
anniversary.
In May 2022, I retired as Director after fulfilling my role as afounder and nurturer of the LIFE CORPORATION. Going forward,
I will continue to support LIFE from a position one step removed
from management. We look forward to your continued supportof LIFE CORPORATION.

Operatingrevenue¥700

Operatingrevenue¥600
billion!

Operatingrevenue¥400

Operatingrevenue

500,000

418,615400,000

357,792

200¥200

stores!

billion!

150

714,684

503,107billion!

¥300

200

800,000

600,000

billion!

Operatingrevenuebillion!

(million yen)

629,986¥500

Operatingrevenuebillion!

700,000*Japan’s largest food supermarket chain in terms of operating revenue in FY2021.

250

8300,000

Operatingrevenue¥100

210,722billion!

100

200,000

100

107,480

stores!
100,00050

20 stores

50

stores!
001961 1974

1980

1985

1990

1995

2000

2005

2010

2015

2020 (FY)Value Creation
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GovernanceCorporate Data

9

External Environment and Social Issues

In considering the issues that we should address to realize a sustainable and flourishing society, we recognize changes in the external environment andsocial issues as set out below.
1. Changes in Social Environment

2. Diversiﬁcation of Work Styles
Trends in Household Member Ratios
by Fiscal Year

(1) Changes in Household Structure
Due to the effects of the trend toward nuclear
families and the aging of society, the proportionof small households is increasing year by year. In
2019, the proportion of one- or two-personhouseholds had expanded to over 60%. In the
supermarket industry, we are seeing changes incustomer purchasing patterns, such as increased
demand for products sold in subdivided or small
amounts, and for frozen foods that can be
stored for long periods of time.

(%)

100
80

2.4
5.1

2.3
5.1

4.9
2.1

13.9

14.7

14.4

2.0
4.3
13.1

20.2

19.3

19.5

19.7

31.5

31.5

31.8

32.0

26.9

27.0

27.7

28.8

2016

2017

2018

2019 (CY)

60
40
20
0

(2) Supermarket Trends
Supermarket industry sales have been hovering
at around the ¥13 trillion mark for the past few
years. In FY2020 and FY2021, however, themarket grew in scale to ¥15 trillion due tohigher demand for eating at home resulting
from the spread of COVID-19 which placed
restrictions on going out and encouraged
teleworking.
With regard to lifestyle changes, including
the shift from eating out to eating in, theincreased demand for eating at home isexpected to remain to some extent even in a
post-COVID era, and thus at LIFE the belief isthat, going forward, the overall market size will
be at a higher level than before COVID-19.

■ Households with six or more members■ Five members ■ Four members ■ Three members■ Two members ■ Single occupant

The number of workers is declining
following the onset of the aging society. It istherefore becoming increasingly importantto secure a diverse labor force, including
addressing the needs of those who want towork while balancing childcare and nursing
care or at favored times and places, while
understandably promoting the active
participation of seniors. In addition to
introducing, for example, flexible working
hours and half-day leave systems in response
to such needs, the designing of new
systems, such as those to accommodate thefurther expansion of teleworking or sideline
jobs, is being demanded.

Young People’s Attitudes Regarding
Employment, etc.
23.6

29.9

%

%

FY2011(n=3,000)

52.9
%

17.1

FY2017 63.7
12.7 (n=10,000) %%%Life-centered, so family takes
precedence over work
Work-centered, so worktakes precedence over family
Unable to say either way

Prioritize family/
private life over work
Prioritize work overfamily/private life
Unable to say either way

Source: Created by the Company using data from the Cabinet Office,
Government of Japan website

Source: Ministry of Health, Labour and Welfare website(statistics suspended in 2020)

3. Worsening Environmental Issues
Supermarket Sales Trends
16

15

14

13

12

11

2017

2018

2019

Global Annual Mean Temperature Deviation(°C)
In December 2015, the Paris Agreement
0.5
was adopted as a new internationalframework for reducing greenhouse gas
0(mainly CO2) emissions from 2020 onwards-0.5
at the 21st Conference of the Parties to theUnited Nations Framework Convention on-1
Climate Change (COP21) held in Paris,
France. Among the adopted goals was to-1.5
18911901 1911 19211931194119511961197119811991200120112021(CY)
keep the global average temperature risewell below 2°
C above pre-industrial levels,
Note: The deviation reference value from the mean temperature reference
value for each year is the 30-year average from 1991 to 2020.
and to strive to limit the rise to 1.5°
C. In
Source: Created by the Company using data from the Japan
response, the Japanese government
Meteorological Agency website.
announced a policy to reduce greenhousegas emissions, which are a contributory factor in the rise in temperatures, to virtually zero by 2050.
In the years to come, it is expected that the public and private sectors will work together inpromoting a switch to other forms of power generation̶such as solar, wind, hydroelectric, andbiomass̶to break away from fossil fuel dependence with the goal of decarbonization and work
toward the proliferation of renewable forms of energy.

(1) Decarbonization(Trillions of yen)

2020

Source: Ministry of Economy, Trade and Industry’s
Commerce Statistical Survey (2022)

2021 (FY)Value Creation
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Efforts to Refine
the “True to LIFE”
Concept

Management
Strategy(2) Eliminating Plastics
Lightweight and inexpensive, petroleum-derived plastics are often used for packaging. However,as they are not naturally degradable, the impact they have had on the environment has been
immense, and thus efforts to eliminate plastics are progressing on a global basis. Under thesecircumstances, charging customers for plastic shopping bags started in July 2020 in Japan, andefforts designed to eliminate plastics are gathering pace. To promote initiatives, such as resource
recycling for plastics, from product design to waste disposal, the Act on Promotion of Resource
Circulation for Plastics, which included in its requirements the curtailment or replacement of plastic
spoons and forks provided in supermarkets, was newly enacted in April 2022.

(3) Food Loss
Food loss in Japan amounts to 5.22 million
tons per year (2020 estimate). In July 2019,
the target set as a basic policy under the
Food Loss Act was the halving of businessrelated food loss by 2030 (compared with
2000). Not only a waste in terms of resources,
food loss also leads to the unnecessary
emissions of CO2 generated during the
manufacturing, sale and disposal processes,
and thus represents an important issue to beaddressed from the perspectives of resource
management and decarbonization.

Food Loss (Estimated value for 2020)
Food Services

Family-related

16％

47％

Business-related

53％

Food Retailing

11％

Food
Wholesale

Food loss
amount5.22 million
tons

Food
Manufacturing

23％

2％

Source: Created by the Company using data from the website of theFood Industry Bureau, Ministry of Agriculture, Forestry and Fisheries

4. Technological Advances
Advances in technology are being made on a daily basis, and the speed of the progress being made indigital technologies is particularly fast. It is thought that factors including the evolution of AI and further
improvements in the communication speed, and their utilization, will exert a significant impact on
corporate management. In the supermarket
industry, we believe that there will be more
Size of EC Food/Beverage/Alcohol Market
situations where technology is used not only
(Trillions of yen)
(%)
2.5
5
for improving operational efficiency but also
at points of contact with customers. In
2.0
4
particular, e-commerce (EC), the market for
1.5
3purchasing products and services via theInternet using personal computers and
1.0
2
smartphones, is expanding year by year. We
0.5
1
believe that it will be increasingly important in00
the years ahead to accurately conceptualize
2016
2017
2018
2019
2020 (CY)
and respond to the progress being made with
Market size (left axis)
EC ratio (right axis)
these technologies as a means to support
Source: Created by the Company using data from the Ministry ofcorporate management reform.
Economy, Trade and Industry website

CONTENTS

Sustainability

Special Features

GovernanceCorporate Data

10

5. Spread of COVID-19
Following the infectious spread of
COVID-19 since January 2020, case numbers
in Japan reached a record high from January
to February 2022. Since the start of thepandemic, sales at LIFE increased due to thehigher demand for eating at home brought
about by the restrictions placed on goingout and the increase in teleworking. In themeantime, it became essential to takemeasures to prevent infections at stores,
and we installed acrylic screens near cash
registers, suspended sales of loose items,
such as of delicatessen and bread, andinstalled alcohol disinfectant dispensers atstore entrances.

Trends in Numbers of People Infected with
COVID-19 in Japan over Past Year
(1,000 people)

120
100
80
60
40
20
0

2021
4/1

2021
6/1

2021
8/1

2021
10/1

2021
12/1

2022
2/1

2022
4/1

Source: Ministry of Health, Labour and Welfare website
Period: April 1, 2021 to April 30, 2022

6. Growing Emphasis on Environmental, Social, andGovernance (ESG) Initiatives
The importance of ESG is being recognized for the stable, long-term growth of companies. In
addition, Japan’s Corporate Governance Code requires companies to disclose the status of their
ESG initiatives. The Sustainable
Development Goals (SDGs) adopted by the
Trends in Numbers of PRI Signatories
UN to build a sustainable society also set
goals for social efforts toward 2030. Under
these circumstances, in terms of ESG, among
the items being demanded of companies
are a climate change response, theconstruction of a society in which diverse
talent can play active roles, and corporate
governance with enhanced managementtransparency through appropriate
information disclosure. It is becoming
increasingly important for companies toalways recognize that their activities areunderpinned by the sustainability of the
global environment and society and to act
accordingly at all times.

5,000

125

4,000

100

3,000

75

2,000

50

1,000

25

0

0
’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 (CY)No. of worldwide signatories (left axis)
No. of signatories in Japan (right axis)
Source: Created by the Company using data from the Principles for
Responsible Investment (PRI) Association website

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Value Creation Process

In the LIFE Group, we are pursuing the concept of “True to LIFE” symbolized by three keywords, “delicious,” “exciting,” and “happy,” while utilizing ourGroup’s management resources and responding to customer needs and changes in our external environment.
We will continue our efforts towards the “realization of a sustainable and flourishing society” by providing value that can only be created by our Group.
A Business Model Based on Our Core Values

Management Resources

Pursuit of the“True to LIFE” Concept

Human capital

P.18

position in Japan’s twolargest metropolitan
areas, Tokyo and Osaka

Financial base that
経済的価値

Welcoming
customer
service

Online supermarkets
StoresHeadquarters
information utilization
platforms (AI/IT)

Social capital
Technologicaladvances

Spread ofinfectious
diseases

Growing emphasison environmental,social, andgovernance (ESG)
initiatives

P.40

Mutual trust with
経済的価値

customers in areas wherestores are opened

P.13
P.17

経済的価値
Experience andknowledge of new
product and store
development

Logistics centers

Product
safetyConvenienceof shopping
experience

Diversityfriendly

Natural capitalIntellectual
capitalFood process centers

P.25, P.55

Business partners

Flow of information

Reduction in the
経済的価値
P.33– environmental impact ofour business activities
P.36

Providing safe,
high value-added
products andservices

Socialvalue

Implementation of
initiatives that are
trusted by both society
and employees

P.37– P.42

Flow of products

Environmental
value

Our Materiality

Reducing theburden on theenvironment

Economic
value

Growth as a sustainable
company whereenvironmental andsocial value co-existeEmenables aggressive store
expansion

Provision ofdelicious
products
Customers

経済的価値
Dominant market

Financial capital

P.27
P.28

Comfortablestore
atmospheretional valu

Worsening
environmental
issuesManufacturing
capitalVision“Delicious,”“Exciting,” and “Happy”

ncFu

Diversificationof work styles

P.41
P.42

Active participationof diverse personnel
who think and act
independently

otional value

Changesin socialenvironment

Value We Create“Realization of a sustainable and ﬂourishing society”

Changesin External
Environment

Contributing tolocal communities
as infrastructure foreveryday life

Creating a
motivating
workplaceenvironment where
diverse personnel
can thrive

Development of anorganization withhigh values andethicsRealization of a circularand decarbonizedsociety

P.33– P.36

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Pursuit of the “True to LIFE” Concept

At LIFE, each of us are personally invested in thinking and acting on how best to provide functional value such as the safety, security, and deliciousness of
our products, as well as emotional value such as comfort, reassurance, and having a little fun. We will enhance our business continuity and contributetowards the “realization of a sustainable and flourishing society” through our contributions to the environment and society, by being a company thatremains trusted by customers, society, and employees.

Functional Value We Provide

Emotional Value We Provide
Comfortable store atmosphere
We pride ourselves on attention to detail in designing
our supermarket interiors̶down to the level of sales
floor layout and individual lighting̶to ensure ourcustomers can have a comfortable and easy
shopping experience.

Welcoming customer service
We are striving to improve our customer service,
such as by enhancing product knowledge, with theaim of having all our customers feel comfortablewith our smiles and greetings.

Diversity-friendly
We are working on transforming our corporate
culture and creating workplaces whereby all
employees, regardless of gender, nationality, or
disability, can thrive and make full use of theirdiverse skills and abilities.

Provision of delicious products
We are proactively developing food supply sourcesand our private brand products to ensure we canalways deliver new “deliciousness” to our customers.

Product safety
We are working to strengthen our quality management by establishing a department dedicated toquality management and ensuring all employees
have a high level of quality awareness to make sure
we deliver safe and secure products to our customers.

Convenience of shopping experience
We provide a shopping environment whereby
customers can choose according to their needs
between shopping in-store or online.

Eﬀorts to Reﬁne the“True to LIFE” Concept

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Our business departments are working to provide new value to our stakeholders by further reﬁning the “True to LIFE” concept summarized
by the keywords “delicious,” “exciting,” and “happy”

Product Development
We develop private brand products to meet a diverse range of needs in terms of taste, quality, and price. We also produce our own delicatessen items and otherproducts that focus on ingredients, recipes, and freshness. By offering our customers value that our competitors cannot match, we are realizing the “True to LIFE.”
Department in Charge: Product Division

FOCUS

1

Roles and responsibilities of the Product Division

Our Brands

The provision of products that embody the “True to LIFE”
The procurement and selection of products that reflect
the “True to LIFE” concept, as well as the development of
products unique to LIFE across each of its departments,
which cover agricultural produce, marine and meatproducts, delicatessen items, produce and groceries,
lifestyle products, and apparelThe planning and development of various private brand(PB) products to meet customer needs
Product development activities, as well as sales promotion
initiatives to inform customers about the attractiveness of
LIFE products

Product Highlight

Smile Life
An affordable brand developed with a focus on safety,
security, deliciousness, and ease of use
BIO-RAL
A brand that uses healthy ingredients and production
methods that are kind to the body, targetingcustomers interested in health and natural products
LIFE PREMIUM
A brand that pursues delicious flavors using
consciously selected ingredients and production
methods

Strengths and advantages
Four distinct PBs developed through a customerorientated perspective to accommodate diverse customer
needs in terms of taste, quality, price, etc.
An extensive product lineup, to support customers
interested in health and natural products, centering on
the BIO-RAL brandOriginal LIFE delicatessen items and handmade baked
goods

Pursuing uniqueness: Developing private brand products

star selectA brand jointly developed by LIFE and Yaoko Co., Ltd.
to enhance customer lifestyles

Selectiveness

Future goals
Further expanding PB product lineups and increasing
their ratio of contribution to total sales
Using food process centers to enhance the originality of
our marine and meat products, and delicatessen items

Price◆ Totals for all private brands in FY2021

Net sales

YoY increase

Ratio of total sales

65.2 billion

+2.7%

8.9%

¥

A sumptuous dashi soup stock that
contains flying fish extract and isdelicious to drink straight out of the packThe concept behind this product is to make astock that could be delicious to drink“as is”
Conscious
selectiveness toingredients

All ingredients are sourced within Japan

Commitment
to flavor

Taste sensors are used alongside conventional
taste testing to provide a scientific basis for the
product’s umami flavor and other characteristics

LIFE’s private brands and unique products such as delicatessen
items received extensive media coverage in fiscal 2022

◆ Positioning of the Four Brands

Challenges
Maintaining LIFE’s uniqueness by continuing todifferentiate ourselves from the homogenous
competition

LIFE PREMIUM

LIFE special episode: TBS/MBS Sakagami & Sashihara no Tsuburenai
Mise (May 15, 2022)
LIFE tomato ketchup taste test ranking No.1: TBS/MBS Saturday Plus
(May 14, 2022) and LIFE roast ham taste test ranking No.4: TBS/MBS
Saturday Plus (April 30, 2022)
YGP* live broadcast:
TBS Hiruobi (April 18, 2022)
YGP feature: TV Tokyo/
TV Osaka WBS (April 15, 2022)
LIFE special episode: Kansai
Television Ura Mayo!
(September 25, 2021)*YGP: CENTRAL SQUAREYEBISU GARDEN PLACE Store

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Product Development

FOCUS

2

Pursuing deliciousness: Developing delicatessen items that
focus on ingredients and production methods

FOCUS

3

CENTRAL SQUARE: Embodying the keywords “delicious,”“exciting,” and “happy”

Product Highlight
Winner of the Karaage* Grand Prix gold award or higher
for four consecutive years!

Junwa Akadori chicken breast, salt flavor (Tokyo Region)(Japan Karaage Association, 10th-13th Karaage Grand Prix)

1. Commitment to ingredients*Japanese-style fried chicken

Chicken breasts from Junwa Akadori , a rare breed unique to Japan Junwa Akadori
chicken is the first in Japan to be certified under the Japan Agricultural Standard(JAS) for sustainable poultry in recognition of cyclical production methods,
including the use of rice fodder and recycled chicken manure. The meat is highly
regarded for its delicious umami flavor and excellent quality
2. Commitment to salt

Salted rice malt is added to season the chicken to give it a delicate sweetness
and mellow flavor
Nagasaki flower algae sea salt (hanamoshio ) is mixed into the coating to lockin the flavor and make the chicken juicier
3. Commitment to product development

Potato starch is sprinkled on the chicken before it is deep fried to create a craggy
and powdered appearance
The chicken is prepared using a double frying method, in which it is fried once,
left to rest until the residual heat cooks through inside, and then refried to ensurea crispy finish
Cross-departmental
initiatives

Development of delicatessen items using products from different departments
Marine Products Department: Arctic salmon (Osaka Region), red sea bream withfunctional claims (Tokyo Region)
Meat Products Department: Junwa Akadori chicken (Tokyo Region)

Use functions offood process centers

Creation of original products by development staff→ Simmered foods produced using LIFE PREMIUM dashi soup stock
containing flying fish extract
Supply of ingredients for foods produced in stores (collaboration with foodprocess centers)

Satellite
Delicatessen Center

Expansion of product lineup through the supply of bento boxed meals andbreads to stores in city centers

What is CENTRAL SQUARE?
Stores that turn the convenience ofdaily shopping into a fun experienceby disseminating new, interestingand highly sensitive information for
the enjoyment of local customers
Each store serves an area with aradius of around ten kilometers,
offering diverse and extensive
product selections, including items
that are only available at the store,
as well as ideas for special occasions
Feature special corners that arecontinually evolved, enhanced, andupdatedCENTRAL SQUARE Nishimiyahara Store (Osaka Region)
Marineproducts

Live fish are taken from in-store
tanks and prepared on the spot
→ Sushi (Uozushi ) is made bya fishmonger in the “extremely
fresh” corner of the store
Fresh fish from the morning
catch is brought in from
Kagoshima on the Shinkansenbullet train

CENTRAL SQUARE YEBISU GARDEN PLACE Store (Tokyo Region)
Offers a wide selection of seasonal fruits and vegetables
Fresh salads made in-store using tomatoes, turnips, andother seasonal vegetables
Deployment at sales space for locally grown vegetables byoffering a selection of produce certified under the Good
Agricultural Practices (GAP) in Tokyo (local production for
local consumption)

Meat
products

Agricultural
produce

Extensive range of meats available infour grades. Top-grade products include
Iki beef and Anno Kurobuta pork
Delicatessen meat items made using
LIFE’s original Amani pork and Amani
chicken brands

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Center Operations

The role of center operations is to ensure reliable daily deliveries of safe, secure, and trusted products to stores and to enhance store operating efficiency
and attractiveness by processing agricultural, marine and meat products, and producing delicatessen items.
Department in Charge: Logistics Centers

FOCUS

1

Roles and responsibilities of logistics centers
Delivery of goods to stores according to plan
Ensuring the safety and security of goods througheffective quality and temperature control and themaintenance of accurate product history management
Improvement of store operating efficiency and reductionof logistics costs through the administration of our uniquelogistics center network
Efficient acceptance, inspection, and sorting of incoming
goods using automated center systems designed toreduce labor requirements

Strengths and advantages
Our unique logistics center network serving our store
network in the Tokyo region and Osaka region
Centralized control of pickups and deliveries to maintainlogistics costs at an appropriate level and ensure efficient
handling of incoming goods at stores
Excellent delivery efficiency thanks to aggressive store
openings at key locations in eastern and western Japan

Challenges
Addressing the logistics problem in 2024 (imposition oflimits on the working hours of delivery drivers and labor
shortages)
Reduction of future CO2 emissions through further
streamlining of the delivery system and a transition fromfossil fuel vehicles to electric vehicles (EV)FOCUS

A fleet of approximately 760 trucks delivers high-quality goods
to our 285 stores in eastern and western Japan at the sametime every day according to operating plans that reflect traffic
conditions and many other factors. We have reorganized our
logistics infrastructure to keep pace with continual increases indelivery volumes resulting from yearly sales growth by opening
the Kawasaki Comprehensive Logistics Center in the Tokyo
region in 2017, followed by the establishment of the
Hirabayashi Comprehensive Logistics Center in the Osaka
region in 2018. We will explore further efficiency
improvements in anticipation of a future 400-store network.

3

Support for store
operation efficiency(1) Delivery by category
By sorting goods not only by store, but also by department
and product type, we ensure efficient sorting and shelfstacking operations at stores.
(2) Delivery of loose items (required quantities)
To avoid excessive inventory levels at stores, containers areunpacked at logistics centers, sorted as loose-item
inventory, and shipped.
(3) Use of automation and labor-saving equipment◆ Value of goods transported (total for east and west Japan)(Billion yen)

500
400

Product sorter (conveyor)

300
200
100
0

Automatic oricon stacker
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (FY)
(Forecast)

Future goals
Further improvements in accuracy of delivery (reductionof delivery delays and errors)
Initiatives that use AI to improve delivery efficiency andenvironmental responsiveness

Maintaining reliable daily
deliveries to 285 stores acrosseastern and western Japan

FOCUS

2

Wearable inspection devices*Oricon : A type of collapsible container box

Deployment of logistics centers in eastern and western Japan

We place our logistics centers in
optimal locations based on our store
opening strategy to ensure on-time
deliveries of goods to our 285 storesin eastern and western Japan while
maintaining high standards offreshness.

Center nameTemperature category

Location

Osaka Hirabayashi Comprehensive Logistics Center

Normal, low

Suminoe-ku, Osaka

Suminoe Logistics Center

NormalSuminoe-ku, Osaka

Shintempozan Low Temperature Logistics Center

Low

Minato-ku, Osaka

Kawasaki Comprehensive Logistics Center

Normal, low

Kawasaki, Kanagawa Prefecture

Matsudo Comprehensive Logistics Center

Normal, low

Matsudo, Chiba Prefecture* Normal temperature: Processed foods, confectionary, etc.
Low temperature: Products that require refrigeration, such as milk

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Center Operations

Department in Charge: Food Process Centers

FOCUS

1

Examples of products developed at food process centers

Roles and responsibilities of food process centers
Production of safe, secure, and high-quality agricultural produce,
marine and meat products, and delicatessen items, as well as thedelivery of these goods to stores
Development and production of original LIFE products in the areas ofagricultural produce, marine and meat products, and delicatessen
items
Recycling of 100% food residue (installation of biogas power
generation systems, see p.34)
Acquisition and maintenance of ISO 22000 and FSSC 22000
certification in recognition of appropriate quality, hygiene, andproduction control, as well as product history management
Reduction of processing costs through the implementation of
manufacturing cost management and improvement measures
Planning and introduction of new equipment and production lines
to improve the efficiency of processing and production systems

Strengths and advantages
Achievement of high quality and low cost through centralized
production at food process centers, especially for mass-market
products in the four areas of agricultural produce, marine and meatproducts, and delicatessen items
Stable realization of increasingly attractive products and sales spaceby focusing in-store production and processing capabilities on items
requiring high standards of freshness and high-value-added items
Ability to offer unique and competitively-priced LIFE products, whichcannot be sourced from other manufacturers, through collaboration
among the agricultural produce, marine and meat product, anddelicatessen businesses
Improvement of freshness and reduction of store order lead times
through 24-hour operations

Challenges
Need for accelerated introduction of automation as part of efforts toaddress shortages of labor for processing and production operations
Reduction of food residue and plastic waste

Future goals
Improvement of product competitiveness and expansion of therange of delicious original LIFE products
Research leading to the introduction of equipment to reduce labor
inputsHors d’oeuvres
to enjoy with
wine

FOCUS

2

Miso-marinated silver salmon
using BIO-RAL’s long-fermented
additive-free organic miso

3

Meat-filled Sukiyaki hotpot(with udon noodles)

Deployment of food process centers in eastern and western Japan

Our food process centers in eastern andwestern Japan process and ship over
1.2 million items every day. In addition
to the centers listed below, LIFE also
operates various production centers,
including bakery goods centers andsatellite delicatessen centers.

FOCUS

Healthy bento boxes madewith multi-grain rice

Center nameTempozan Food Process Center
Nanko Food Process Center
Osaka Hirabayashi Food Process Center
Sakai Food Process Center
Kazo Food Process Center
Kurihashi Food Process Center
Funabashi Food Process Center

Goods handled
Delicatessen items, bakery goods
Marine products, sliced vegetables
Bagged vegetables
Meat products
Marine products, sliced vegetables
Meat products, bagged vegetables
Delicatessen items, bakery goods

Location
Minato-ku, Osaka
Suminoe-ku, Osaka
Suminoe-ku, Osaka
Sakai, Osaka Prefecture
Kazo, Saitama Prefecture
Kuki, Saitama Prefecture
Funabashi, Chiba Prefecture

Workplace improvement measures: Striving for efficiency throughgood work practices

1. Objective: To ensure operational stability and improve productivity in food process centers
2 Goals: (a) The reliable supply of safe, secure, and delicious products, and (b) the development of diverse talent who
can think and act on their own initiative
3. Specific initiatives
In addition to classroom lectures designed to impart knowledge and techniques to attendees, we also implement
improvement activities on a small-group basis. Participants are placed into teams according to their work categories and takepart in four-month courses. Activities include the identification of issues, the verification and evaluation of improvement
measures, and the standardization of work. Team members include not only LIFE employees, but also staff from business
partners and foreign technical interns, who bring a wide range of different opinions to these improvement activities.

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Store Development

We are focused on purchasing properties for stores in Japan’s two major metropolitan areas, Tokyo region and Osaka region.
We design and manage construction of stores to be easy to shop and ensure that the facilities, interiors, and exteriors are comfortable for customers.
Department in Charge: Development Division
Roles and responsibilities of
the Development DivisionCollect information on potential locations for new stores,
information around our existing stores and information
on opening stores of competitors
Propose store opening strategies and comprehensive
project management from property acquisition to store
opening
Develop construction plans for new stores and renovationplans for existing stores, and project management of theconstruction process
Interior and exterior design for new stores and store
refurbishments; planning of store zoning and layouts tobe easy to shop

FOCUS

1

Designing stores that embody the “True to Life” concept with the feature of“easy to shop” and “exciting”

We are designing our stores according to the market and business formats, such as regular stores, Central Square Stores, small
stores, and BIO-RAL stores.

LIFE Sakurashinmachi

Strengths and advantages
A powerful information network covering our priority
areas for store openings
Diverse proprietary store formats (based on the scale andconcept of the store) that allow us to open stores
according to the size and conditions of the property

Challenges
Responding to intensifying competition for acquisition ofpotential prime store locations across business sectors
Responding to soaring costs in real estate in general,
including building materials and labor costs
Adopting eco-friendly building materials, such as with alower CO2 emissions footprint, and building stores that
reduce energy consumption

We have designed a warm and cozy store interior with curvy layouts, warm-colored lighting,and interior decorations using wood grains and shades of green.

We have also provided areas for customers to have fun, relax,
and feel at ease with an 83-seat eat-in resting space area and akids play area on the mezzanine floor.

LIFE msb Tamachi

LIFE Bentencho

Future goals
Continuous store openings in our priority areas for store
opening
In addition to the business model of regular supermarkets,
develop stores in unique formats, such as Central Squareand BIO-RAL, that induce even greater excitement andhappiness

Delicatessen section at station side entrance

Agricultural produce section at the entrance
on the residential side

Located on the first floor of a high-rise office building with a direct connection to Tamachi
Station, we have made a bold statement with our msb Tamachi building store in tune with
its location and in pursuit of convenience for local customers. We positioned delicatessen
items on the side nearest the station and fresh produce on the side near the residential area.

We designed this store to be stylish and to convey high-quality
products by highlighting to emphasize the presentation ofsales items.

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Store Development

FOCUS

2

Developing stores in a range of formats

FOCUS

We select the most suitable store format according to not only the size of the store, but also the lifestyles and needs of local customers.

Format: BIO-RAL
Our standard store

Format: Central Square

A natural store
with a focus
organic, local, andhealthy productsthat brings us
closer to lifestyles
in tune with nature(1) Priority areas in the Tokyo Region:
23 special wards of Tokyo, Kawasaki, and Yokohama(2) Priority areas in the Osaka Region: Osaka, Kobe, Kyoto

Format: Miniel
A small-scale
supermarket
format focused on
inner-city living“Going beyond
convenience tomake our daily
grocery shop fun.”A lifestyle store
that disseminates
information

Opening new stores:
How we set priority area

We are formulating store opening plans by defining priority
areas for opening new stores.

1. Classification by concept
Format: LIFE

3

Note: Of the 41 newly opened stores in the past five years, 29 (about 70%) wereopened in priority areas

Trends in new store openings inside and outside of priority areas(Stores)

12
10
8
6
4
2
0

Sakurashinmachi

BIO-RAL Utsubo

CENTRAL SQUARE Nishimiyahara

Miniel Nishihonmachi

2017

Within priority areas

2018

2019

2020

2021 (FY)

Outside priority areas

2. Classification by sales floor size
Format: Supermarket (SM)Does not sell clothing

Format: Super Supermarket-II (SSM-II)
Sales floor area of less than 1,800 m2

Format: Super Supermarket-I (SSM-I)
Sales floor area of 1,800 m2 or more

Format: Combination Store (Cbs)
Sales floor area of 3,000 m2 or more

Format: General Merchandise Store (GMS)
Sales floor area of 4,500 m2 or more

Nakaharaida

Nakanosakaue

Taiyuji

Nijo Station

Minamisenju

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Online Supermarket

We offer our online supermarket service, which enables customers to shop without being bound by time or place, as a convenient option that can respondto the lifestyles and day-to-day circumstances of customers, such as being unable to go shopping due to bad weather or poor health.
Department in Charge: E-Commerce Department
Roles and responsibilities of
the E-Commerce Department
Business planning for online supermarket business
Operation and management of website and app of “Life
Online Supermarket,” which enables all customers living
in our existing supermarket sales areas to shop online
with the same convenience and comfort as in our brickand-mortar stores
Delivery of LIFE products to a wider range of customers bydeveloping two services, one operated through ourCompany website and the other through Amazon

FOCUS

1

Expansion of online supermarket businessWe are establishing new logistics centers andenhancing our delivery capacity from existing
stores. Net sales from the online supermarket
business progressed mostly to plan at
approximately ¥9.6 billion in FY2021. In FY2022,
we aim to further expand our capacity with a net
sales target of ¥20 billion and a target of ¥100
billion in FY2030.

Online supermarket net sales

100 billion¥

Growing into a ¥100 billion
business by FY2030

20 billion¥

9.6 billion¥

1.9 billion ¥2.4 billion ¥3.1 billion

5.3 billion¥¥

Strengths and advantages
Delivery of products from brick-and-mortar stores trusted
by customers
Extensive range of original LIFE products (private brand,
delicatessen items)
Expanded sales area through collaboration with Amazon
High-quality and stable delivery through joint venturewith Maguchi Group Co., Ltd.

NPS Benchmark Survey 2021
Claimed top spot in the online
supermarket category

Challenges
Responding to intensifying competition resulting fromthe growing e-commerce market
Securing the workforce required for the expanding online
supermarket business
Securing the delivery network as the delivery area
expands

Future goals
Development of a more convenient system adapted toincreased online shopping demand

2017

FOCUS

2

2018

2019

2020

2021

2022

(Forecast)

2030 (FY)(Forecast)

Expansion of our in-house and Amazon online supermarket delivery areas

We are working to expand the delivery area of our online supermarket business to enable more customers to utilize it. In FY2021,
in addition to expanding the delivery area in Osaka, Tokyo, and Kanagawa Prefecture, we began to expand into Kyoto, Hyogo,
Saitama, and Chiba prefectures.
Osaka Region:
Online supermarket
delivery area

Kyoto
Prefecture

September 2019 toFebruary 2021
March 2021 to
February 2022

Tokyo Region:
Online supermarket
delivery area
September 2019 toFebruary 2021
March 2021 to
February 2022

Hyogo
Prefecture

SaitamaPrefecture

Tokyo
Prefecture
Chiba
Prefecture

Osaka
Prefecture*Online delivery does not cover theentirety of administrative areas of
the abovementioned prefectures

Kanagawa
PrefectureValue Creation
Story

Efforts to Reﬁnethe “True to LIFE”
Concept

Management
Strategy

CONTENTS

Sustainability

Special Features

GovernanceCorporate Data

20

Online Supermarket

FOCUS

3

LIFE Online Supermarket App launched in March 2021

FOCUS

5

Launched delivery service company
LIFE HOME DELIVERY in June 2021

We set up a joint-venture delivery service, LIFE HOME DELIVERY, with Maguchi Group, andlaunched the business on June 1, 2021. We will strive to provide a service that exceeds ourexisting high customer satisfaction standards through excellent customer service and stable andreliable delivery.

Online supermarket
purchases via the app are
growing steadily due tofast and smooth operability
and providing a convenient
shopping experience in awide range of products. In
collaboration with thedeveloper, 10X Co., Ltd.,we will continue updating
and improving this app to
make it even easier to use.

LIFE HOME DELIVERY delivery car

FOCUS

4

Earn customer trust by enhancing human resource systems
and training of staffs

We are strengthening our efforts to secure human resources and building a system that canmeet demand. We will earn the trust of our customers by enhancing the skills of staffs andongoing efforts to improve quality such as by utilizing video manuals and conducting training.

Employee training

Employee training

FOCUS

6

LIFE HOME DELIVERY logo

Delivery driver

Dark store trial launched

In the spring of 2021, we started trialling dark
stores (stores dedicated to online
supermarkets with no over-the-counter sales)in Tokyo. We will continue expanding ourcapacity to respond to increased orders bydeveloping new logistics centers to meetgrowing online supermarket demand.

Sakurashinmachi Distribution CenterValue Creation
Story

Efforts to Reﬁnethe “True to LIFE”
Concept

Management
Strategy

CONTENTS

Sustainability

Special Features

GovernanceCorporate Data

21

Card Business

By promoting the use of the Group’s co-branded credit card (LC JCB Card) that doubles as a points rewards program, and our e-money card, (LaCuCa), we will
improve customer convenience at checkout and will utilize the acquired sales data to improve our product range and services, as well as develop new products.
Department in Charge: Card Business Department

FOCUS
Roles and responsibilities of
the Card Business Department
Strategic planning for our Group’s cards (LC JCB Card,
LaCuCa) and cashless payments
Improve customer convenience by promoting the use of
cashless payments
Coordinate utilization of sales data with departments incharge of product development and sales promotions

Strengths and advantages
Reduction of settlement fee expenses through use of ourGroup’s credit cards
Utilization of sales data accumulated through use of ourGroup’s cards for marketing strategies

1

Expand use of the Group’s cards

Purpose of strengthening use of the Group’s cards
1. Improve customer loyalty (convenience and value)
2. Reduce transaction fee expenses
3. Increase the ratio of cashless payments

Challenges

Future goals
LC JCB Cards: Improve convenience by supporting
contactless payments, card applications via mobile
devices, and enhance benefits and campaigns such as
double points
LaCuCa: Introduce new charge terminals compatible withmobile devices and realize cardless payments

2

Increase in LC JCB Card and
LaCuCa members andcashless settlement

The number of cardholders of the Group’s card and the ratio of
cashless payments are both growing steadily. By the end of FY2021,
the number of LC JCB Card members reached approximately
460,000, the number of LaCuCa users reached approximately 1.9
million, and the cashless payment ratio increased to 56.1%.
Number of LC JCB Card and LaCuCa members

LC JCB Card
Credit card withpoints rewards
program(Disney design)(People)

LaCuCaPoints card withe-money function

LC JCB Card
Credit card withpoints rewards
program(Regular design)

Responding to intensifying competition from credit cardsof other companies, QR code payments, and various otherpayment methods

FOCUS

2,000,000
1,500,000
1,000,000
500,000
0

C Disney

2016

2017

LC JCB Card members

2018

2019

2020

2021

2022 (FY)(Forecast)

Number of LaCuCa e-money users (total)*The above figures are the number of users of the e-money function. LaCuCa can also
just be used as a point card (i.e. paying in cash, not e-money)

Measures to promote the use of
the Group’s cards
1. Strengthening of incentives
New membership points reward
Settlement points reward
Exclusive events such as campaigns
2. Promoting membership throughmobile van advertisements, in-store
promotions, etc.
3. Improvement of convenience
LC JCB Card: Shift to paperlessstatements
LaCuCa: Mobile LaCuCa(App payment functions)Cashless payment ratio
(%)

60
50
40
30
20
10
0

2016

2017

2018

2019

2020

2021

2022 (FY)(Forecast)Value Creation
Story

Efforts to Reﬁnethe “True to LIFE”
Concept

Management
Strategy

CONTENTS

Sustainability

Special Features

GovernanceCorporate Data

22

Digitization Strategy

We aim to utilize digital technology to create an environment in which brick-and-mortar stores and the Internet are seamlessly connected. This enables
efficient shopping regardless of whether a customer is online or offline, while also improving the efficiency of working environments for our employees.
Department in Charge: CX Co-Creation Promotion Oﬃce andInformation Strategy Division

FOCUS

1

Utilizing digitaltechnology to enhance
the customer experience

Roles and responsibilities of the CX Co-Creation
Promotion Oﬃce
Propose ways of engaging customers to connect them with LIFE andpromote efficiency in store operations
Utilize digital technology to enhance customer experience value andbuild an environment for providing products and services by utilizing
various data from both online and offline sources

Roles and responsibilities of the Information Strategy Division
Develop a system infrastructure to support digitization strategy
Improve the working environment of employees with digital technologies
to increase work productivity
Develop and maintain a secure system environment where the system
can be used with peace of mind

1. Sales promotions
utilizing the LIFE app
and expansion offunctions (customercentric app coupons)

Strengths and advantages
Product development and product range based on sales data analysis,classified by product characteristics uniquely set by the Company
Improve work efficiency through AI automated order processing,automated order processing, electronic shelf labels, multifunctional
devices, and allocate the time created by this to sales floor maintenanceand management tasks

FOCUS

2

Utilizing digital technology
to improve business
operations

1. Inventory management system for single item products
Grasp store inventory information in real time
Utilize captured inventory information for more precise
ordering and responding to customer inquiries
2. Adoption of AI automated order processing
AI-based automation of order processing, which
accounts for a large proportion of store working hours
Achieving highly accurate AI automated orderprocessing by linking with the inventory management
system for single item products
3. Adoption of electronic shelf labels
Reduces manual labor of replacing point of purchaseadvertising in stores
Eliminates sales price errors at stores

2. Enhancing customer shopping
experiences (trialling smartphone andshopping cart self-checkout systems)

Challenges
Developing and securing talent to promote digitization
Securing resources, including those of our suppliers, to respond in atimely manner to ever-evolving digital technology

Future goals
Expand the number of stores that have adopted electronic shelf labels
and the scope of AI automated order processing
Further functional enhancement of the smartphone app, and full
adoption of smartphone and shopping cart self-checkout systems
Develop web applications for store employees and promote paperless
operations
LIFE certified as a
DX Certified Business
Operator in July 2021

What is the Digital Transformation (DX) Certification
System?.....The DX Certification System is an initiative by
the Japanese government that certifies companies thatcomply with the basic items of the Digital Governance
Code based on the Act on Facilitation of Information
Processing. It certifies businesses that are implementing
excellent initiatives to promote digital transformation.

4. Introduction of devices for store employees
Improve employee work efficiency with smart devices

Value Creation
Story

Management Strategy

Efforts to Refine
the “True to LIFE”
Concept

Management
Strategy

CONTENTS

Sustainability

Special Features

Governance23

Corporate Data

In light of the future management environment and our medium-term direction and ﬁnancial condition, we are developing a strategy that
continues to provide new value to investors, customers, and other stakeholders

Review of the 6th Medium-Term Plan
The Company started the 6th Medium-Term Plan in FY2018, with its final year set in FY2021. Under the plan, we have been aiming to realize the “True toLIFE” concept through investment in employees, investment in stores, investment in products, an online supermarket strategy, and a card business strategy.
1. Investment in employees

3. Investment in products

In terms of investment in employees, we aim to become a company where all employees candemonstrate their abilities, provides great job satisfaction to its employees, and where diverse
people succeed in a stress-free environment without being pressed for time.
Specifically, to lift employee job satisfaction, we have improved the working conditions forregular employees and part-time employees, and promoted store-led management by
expanding authority at the individual store level. We have also put in place a personnel
framework that supports these initiatives, expanded training, and updated the employee
appraisal system.
From the diversity viewpoint, we are actively engaged in putting to use the diverse skills andexpertise of individual talent. Initiatives include promoting women to management roles,
support at work for employees with disabilities, technical training support for foreign technicalintern trainees, and the hiring of experienced mid-career employees.

Regarding investment in products, we have proactively worked on the development andproduction of original products such as delicatessen items and bakeries, etc., and thedevelopment of production areas for perishables as well as development of private brands. In
particular, under the theme of “organic, healthy, local, and sustainability,” BIO-RAL has
experienced growth to the point where it can be rolled out into many stores.

2. Investment in stores
Investment in new and existing stores was as follows:
1. Remodeled existing stores with record-high investments (over ¥20 billion) during the
medium-term plan.
2. Opening of new stores achieved at steady progress and mostly on schedule with about 10
stores per year, including multiple store openings using the Central Square and BIO-RAL
formats.
6th Medium-Term Plan—Stores opened
RegionNo. of private brand (PB) items
PB nameNo. of items

FY2019FY2020

FY2021

FY2022 (planned)

Tokyo Region

6

3

2

4

7

Osaka Region

4

5

6

4

4

Total

10

8

8

8

11

LIFE PREMIUM

BIO-RAL

800

153

189

star select207*as of February 28, 2022

4. Online supermarket strategy
In order to deliver our products as easily to as many online customers as we do in our brick-andmortar stores, we have added our own online supermarket as well as our online supermarket
service through Amazon. Also, the Company grasped the opportunity afforded by the drasticchanges in the market environment caused by COVID-19 to strengthen its recruitment of service
staff. As a result, we have achieved growth in both the number of stores and sales. Further, as wemove toward ¥100 billion in sales by FY2030, we will continue to expand the number of stores,
obtain delivery vehicles, secure service staff, and strengthen sales promotions.
Online supermarket net sales(Stores)

FY2018(items)Smile Life

Net sales(billion yen)

FY2018FY2019FY2020

FY2021

FY2022 (planned）

2.4

3.1

5.3

9.6

20

5. Card business strategy
In this time of expanding cashless payments, COVID-19 has increased the need for contactlesstransactions and further accelerated its rollout speed. Amid this drastically changing
environment, we launched a new Card Business Department to further promote our own card
initiatives. We also took aggressive measures to acquire card members and promote their usage.
As a result, we reached 4.9 million cardholders at the end of FY2021, an increase of 340,000
from the previous fiscal year.

Value Creation
Story

Efforts to Refine
the “True to LIFE”
Concept

Management
Strategy

CONTENTS

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Special Features

GovernanceCorporate Data

24

Management Strategy in FY2022

Toward Formulation of 7th Medium-Term PlanIn FY2022, with an eye on the development of the upcoming 7th
Medium-Term Plan, we will aim to complete the 6th Medium-Term Plan.

Regarding the 7th Medium-Term Plan starting in FY2023, while
continuing the initiatives focused on in FY2022, we are also proceedingwith the plan formulation based on the following.

Polices for FY2022
The period of the 6h Medium-Term Plan (FY2018 to FY2021) was a time of unforeseen majorchanges in the business environment, such as COVID-19, that could not have been anticipatedwhen it was formulated. On the one hand, progress on some initiatives exceeded the plan, but
as there are still outstanding issues, we have positioned FY2022 as a “year of completion” forthe 6th Medium-Term Plan, and we are working toward its completion.
The major initiatives focused on in FY2022 are as follows.
(1) Diﬀerentiating ourselves from the homogenous competition
To differentiate ourselves from the homogenous competition, we will clarify the role of eachproduct department and advance measures that create a balance between price and value. We
will also develop original products and a health-driven product lineup centered on BIO-RAL,
while also enhancing the lineup in accordance with the special characteristics of the areas inwhich we operate.
(2) Improving employee satisfaction
We will promote diversity to enable diverse talent to demonstrate their abilities, and also focus
on raising job satisfaction by expanding authority at the individual store level and improving theworking conditions for employees. Also, by improving work efficiency through the introductionof AI automated order processing and electronic shelf labels, we aim to become a company
where employees can have more time and energy to serve customers.
(3) Connecting to customers through digitization
We will further promote “True to LIFE” to customers by developing products using ID-POS data
based on our unique cluster settings, the Company strength, by developing new ways toapproach customers, by building a system that enables one-to-one marketing with customers
using a smartphone app, etc.

Group discussions for medium-term plans(1) Direction of the plan formulation
The 7th Medium-Term Plan is being developed based on the following.
1. Aiming for continuous stable growth while holding a medium- to long-term viewpoint
2. Align our vision and initiatives vectors throughout the Company
3. Making agenda items that come up through the plan formulation process one’s own issues
for employees to solve
4. Proactively take on challenges even in uncertain times(2) Supermarket 4.0
The Company views its own progress as below.
→ First self-service supermarket to open in Japan
Supermarket 1.0 (1953-)
Supermarket 2.0 (2000s-) → Companies enter the online supermarket space
Supermarket 3.0 (2010s-) → Organic product offerings expanded
We are taking on the challenge of growing the next generation of supermarkets, positioning
Supermarket 4.0 as a new form that transcends barriers and seamlessly connects the features ofbrick-and-mortar stores, online supermarkets, and organic products that characterized
Supermarket 1.0 through to Supermarket 3.0.

COLUMN
Initiatives on the CENTRAL SQUARE YEBISU GARDEN PLACE StoreAs a model for Supermarket 4.0, we opened the CENTRAL SQUARE YEBISU GARDEN
PLACE Store in April 2022. The store seamlessly connected the following initiatives, whichenabled it to conduct promotions tailored to the needs of each and every customer.
Expanding our sales area by integrating
online and brick-and-mortar stores(online supermarkets, Amazon)
Rolling out BIO-RAL to cater tocustomers interested in health
A wide selection of products (premium
to standard brands) to make the sales
space not only more convenient but also
more enjoyable

Marine products:
Fresh fish in a tank/a corner
selling whole fish

Agricultural produce:
Fruits gift cornerEfforts to Refine
the “True to LIFE”
Concept

Value Creation
Story

CONTENTSManagement
Strategy

Sustainability

Special Features

Governance25

Corporate Data

At a Glance ̶ Financial Highlights
Operating revenue

Operating profit

Ordinary profit

Profit attributable to owners of parent/ROE(million yen)

800,000(million yen)(million yen)(million yen)(%)

30,00030,00020,00025

25,00025,00015,00020

10,000

15

5,000

10

750,000

700,000

20,00020,00015,00015,00010,00010,000

5,000

5,000

650,000

600,000

2017

2018

2019

2020

2021

0

(FY)

2017

2018

2019

2020

2021

(FY)

0

2017

2018

2019

2020

2021

0

(FY)

2017

2018

2019

2020

Profit attributable to owners of parent

Equity ratio

Dividend per share

Capital expenditures

ROIC

(%)

(JPY)

(million yen)

(%)

50

80

40,000

12

60

30,000940

20,000

6

20

10,00032021 (FY)

5

ROE

40

30

20

10

0

2017

2018

2019

2020

2021

(FY)

0

2017

2018

2019

2020

2021

(FY)

0

2017

2018

2019

2020

2021

(FY)

0

2017

2018

2019

2020

2021

(FY)

Efforts to Refine
the “True to LIFE”
Concept

Value Creation
Story

CONTENTSManagement
Strategy

Sustainability

Special Features

Governance26

Corporate Data

At a Glance ̶ Non-financial Highlights
Final amount of food waste (per sales)

Store recycling and collection

CO2 emissions

Number and ratio of mid-career manager hires(kg/million yen)

(tons)(t-CO2)(%)(People)

(%)

25.00

1,500

220,000

120

300

30

20.00

1,200

210,000

100

280

28

15.00

900

200,000

80

260

26

10.00

600

190,000

60

240

24

5.00

300

180,000

40

220

22

20

200

0.00

2017

2018

2019

2020

2021

0

(FY)

2017

PET bottles

2018

2019

2020

Styrofoam trays

2021

(FY)

Milk cartons

170,000

2017

2018

2019

2020

2021 (FY)

CO2 emissions
Compared to FY13
Compared to FY13 (base units*)

2017

2018

2019

2020

2021

(FY)

20

Mid-career manager hires
Ratio of mid-career manger hires*Base units: operating hours x total floor space

5 A Day Association-Japan: Food education training results

Company

FY2019Number and ratio of female managers

FY2020

FY2021

Classes

Participants

Classes

Participants

Classes

ParticipantsA

659

17,588

378

9,721

390

10,070LIFE
CORPORATION

200

9,666

199

7,047

737

24,466

B

50

1,526

35

1,037

C

23

621

13

176

D

63

1,777

3

90

E

3

119

2

110

F

1

30

2

40

G

4

128

1

51

H

95

2,937

1

24

I

4

125

1

20

*No. of participants in FY2019 andFY2020 food education programs.
For FY2021, the unit of counting
was classes conducted, not schools,
and a single program consisted ofsocial studies and food education.
As a result, there was a large
increase in the number ofparticipants.

*5 A DAY Association-Japan: An NPO that conducts social contribution activities which contribute to health and good eating habits

Ratio of employees with disabilities(People)

(%)

(%)

150

10

3.5

120

9
3.0

8

90

2.5
60

7

30

6

2.0

0

2017

2018

No. of female managers

2019

2020

2021

(FY)

5

Ratio of female managers

1.5

2017

The Corporation

2018

2019

2020

2021

(FY)

Legally mandated employment ratio

Value Creation
Story

Efforts to Refine
the “True to LIFE”
Concept

CONTENTSManagement
Strategy

Sustainability

Special Features

GovernanceCorporate Data

27

Financial Capital Strategy

Aiming to raise corporate value by improving the soundness of our
financial foundation and aggressive investing in business growthBalancing financial efficiency
and soundness

Nobuyuki Kawai
Director & Managing Executive Officer
Deputy Group CEO of Corporate Functions HQ and
COO of Corporate Finance and Accounting Division

Highlights of the
fiscal year ended
February 28, 2022

The Company has established its current
position in the food supermarket industry
by taking on various challenges to growand expand the business.
The 1990s was the era of “aggressively
opening new stores” when we rolled out
our strategy of dominating urban centers.
In the 2000s, we opened new stores andremodeled existing stores withhighlighting our merchandising (MD)strategy that made our stores more
attractive, and expanded and reorganized
our food process centers with the aim of
improving products and productivity. In
recent years, we have been investing
proactively in a variety of initiatives, suchas the online supermarket business anddigitization, to improve customer
convenience, and creating greater
operational efficiency. The necessary funds
for investing are mainly financed by loans
from financial institutions and our own
funds. As a result of dynamic fundprocurement and high financial efficiency,
we have been able to achieve stable, lowlevel borrowing costs, while keeping ourequity ratio around 30% over a long
period. From the perspective of financial
soundness, there are just a few issues
remaining. Meanwhile, from FY2020 toFY2021, we were able to achievesignificant earnings growth by creating
sales spaces and developing products tomeet the increased demand for eating at
home and customers' needs. During these

two years, we were able to reduce interestbearing debt and raise the equity ratio to
40% while maintaining a high level ofinvestment.
Looking ahead to the future, we plan
to continue making investments that leadto improved corporate value, while
keeping an eye on return on invested
capital (ROIC). To respond accurately tothese types of funding needs, I will strive
to provide financial functions while also
examining ways to diversify our
procurement of financing.

Investment leading tobusiness growth
The Company's capital expenditures canbe divided into four main categories: (1)Increased equity ratio

Rejuvenated stores withenhanced remodeling

Increased dividends

Strengthened IR activities

Record highRecord highin remodeling investments

Record highOver ¥¥

Held financial results briefings
Small meetings with analysts
and investors
English disclosures
Published an integrated report

40.8%

20 billion

6th Medium-Term Plan period
FY2018–202270(per share)Value Creation
Story

opening new stores, (2) remodelingexisting stores, (3) IT and digitization, and(4) others (including logistics centers, foodprocess centers, and maintenance).
During the 6th Medium-Term Plan
(FY2018 to FY2022), in order to further
strengthen our dominant position, we
have been opening new stores at prime
locations in urban centers in the Tokyo
and Osaka regions, while remodelingsales space to reflect the latest
merchandising (MD) in existing stores. In
addition, we have been working on IT anddigitization for the purpose ofstrengthening our sales power andincreasing customer convenience,
together with expanding andreorganizing the logistics center and foodprocess center functions to realize stableproduction and uninterrupted delivery.
We aim to open about ten new storeseach year, but under an environment
characterized by fiercer competition forpotential sites and escalating construction
costs, we are not particularly fixated on

Efforts to Refine
the “True to LIFE”
Concept

Strengthened IR activities
To deepen the understanding of theCompany's businesses, and with the aim ofenhancing our information disclosure ability,

Dividend per share
80

29,25630,000

35

27.3

28.4

30.4 30.5

28

(JPY)

70

33,99736.4

29.1 29.9 29.8

Corporate Data

we established an IR Department in March
2021 and are strengthening our IR activities.
In addition to holding biannual
financial results briefings for institutional
investors and analysts as well as small
meetings for quarterly results, we holdone-on-one meetings as needed, in order
to increase the opportunities for dialogue
with shareholders and investors.
Also, as a result of moving to the Prime
Market of the Tokyo Stock Exchange in
April 2022, our response to foreign
investors is becoming increasingly
important. As a result, we are starting to
make various disclosures available in
English as we take steps to improve ourinformation disclosure.
In publishing this first integrated
report, our chief aim is to provide content
that deepens the understanding of theCompany for all stakeholders, including
our customers, suppliers, and employees,
as well as our shareholders. We hope thisreport increases your familiarity with ourCompany.

The Company regards the return of profits
to shareholders as a major management
priority and has set a basic policy ofcontinually paying a stable dividend. In
accordance with this policy, as a result ofconsidering from a comprehensive
perspective the strengthening of its
management structure and futurebusiness development, the Company has
successfully striven to pay stable dividends
without once lowering them since listing.
From now on, we will continue this basic
policy while keeping a careful eye on
financial and market conditions. We will
also consider implementing flexible
returns to shareholders, including sharebuybacks.

40,000

40.8

40

20

GovernanceCapital expenditures

45

25

Special Features(million yen)

(%)

30

Sustainability

Shareholder returns

the store count. Rather, we decide store
openings by examining the investment
recovery plans and store profitability atdevelopment strategy meetings. In the
6th Medium-Term Plan, we have focused
our efforts more than before on
remodeling investment in existing stores,
where we have invested over ¥20 billion
during the plan period. The initiatives wehave carried out not only address theissue of aging facilities, but also thecreation of sales spaces and expansion of
product lineups that meet customers'changing needs. The rejuvenation ofexisting stores, in addition to opening
new stores, takes on a significance insolidifying the business foundation to
support future growth.
In order to verify how well the funds
allocated to investment are contributing
to steady improvement in profitability, we
utilize ROIC as an internal management
metric as it helps to promote appropriate
investments and increase corporate value.

Equity ratio

CONTENTSManagement
Strategy

60

40

40

31.0
20

10,00070

50

22,84819,86720,00029,500

22

25

25

25

30

30

30

30

25.5
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

(FY)

0

2018

2019

2020

New stores
Remodeling
IT systems
Others (centers, major repairs, etc.)

2021

2022
(forecast)

(FY)

0

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (FY)
(forecast)

Dividends

Commemorative dividends

Value Creation
Story

Sustainability

Efforts to Refine
the “True to LIFE”
Concept

Management
Strategy

CONTENTS

Sustainability

Special Features

GovernanceCorporate Data29

Our corporate philosophy, “contribute towards the realization of a sustainable and ﬂourishing society” sums up the Company’s approach to sustainability.
Moving ahead on initiatives to realize this philosophy are based on ﬁve materialities

Sustainability Management
How we approach sustainability at the Company

LIFE Code of Conduct

As expressed in our Corporate Philosophy, ‘through “reliable
management with noble aspirations” contribute towards
realization of a sustainable and flourishing society,’ and as acompany trusted by all of its stakeholders, we strive to solve
issues facing the global environment, which lies at the rootof our business activities. Finding such solutions will also
help solve issues in society.
The sustainable and flourishing society that we aim foris one characterized by a healthy planet and a healthy
Tomehisa Morishita
community. Through our supply of goods and services, weDirector & Senior Managing Executive Officer
Group CEO of Corporate Functions HQ andwant a society where as many people as possible can lead
COO of Information Strategy Division
fun, safe, and healthy lives. Based on this approach, we will
Chair of the Sustainability Promotion
Committee
make a sincere effort to tackle the issues of theenvironment, society, and its own governance.
Moreover, in order to contribute to the realization of a sustainable and flourishing society
together with all its stakeholders, we updated our philosophy and policies in December 2021,
including our corporate philosophy, to incorporate the concept of sustainability. We are also
updating our code of conduct, environmental policy, and procurement policy based on thesame concept.

In 2007, we set out a specific set of behaviors that employees should comply with as the LIFE
code of conduct. Then in 2021, we updated the LIFE code of conduct to incorporate thoroughcompliance, our aspirations for sustainable growth, and the goal of contributing to society as asupermarket trusted by all of its stakeholders.

1. We honor the character, individual personality, and diversity of all people associated with theCompany, and we respect the human rights and human dignity of each and every person.
2. We sincerely respond to our customers’ opinions and by providing safe and secure products
and services through fair sales activities; we aid the health of our customers and theirflourishing lifestyles.
3. We seek coexistence and mutual prosperity as a good partner of our suppliers throughfair, impartial, and free competition along with appropriate transactions throughout the
supply chain.
4. We strive to create a safe, healthy, and comfortable workplace environment where talent isfostered, and a rewarding corporate culture where individuals think and act for themselves.

Diagram of Corporate
Philosophy
Corporate
Philosophy

Basic approach to management, why we exist

P.1

Long-Term Vision

P.1

VisionTrue toLIFE Declaration

LIFE Code of
Conduct
Environmental
PolicyUnder a Corporate Philosophy,‘through “reliable management with noble aspirations”
contribute towards realization of a sustainable and flourishing society,’we will ensure
thorough compliance and carry out steady implementation of this code, in order topursue the sustainable growth of the Company and contribute to society as asupermarket trusted by all of its stakeholders.

Procurement
PolicyMedium-Term Vision
http://www.lifecorp.jp/company/info/strategy/concept.html

Conduct standard we should all observebased on guiding principles
Specific policies on the environment
and procurement basedon guiding principles

5. Toward preservation of the global environment, we aim to reduce the environmental
impact generated by our business activity and to help bring about a circular anddecarbonized society.
6. To earn a reputation for trust and fairness, we strive to foster constructive dialogue withshareholders and investors through appropriately timed disclosure of a variety of corporate
information, including management strategy and financial information.
7. We seek to broaden our communication with society, and strive to earn a reputation for trust
and propriety through appropriate public relations activities.
8. Regarding confidential information that we acquire or learn about in the course of business,
including personal information, customer information, and insider information, we willdevelop safety measures and provide necessary and appropriate protection and oversight.
9. We reject all relationships with anti-social forces and take all such action in a resolute manner.

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Environmental Policy

Sustainability Promotion Framework of the Company

Environmental issues, including action on climate change and reduction of waste, have become
major social challenges. We established “the LIFE Environmental Charter” in 2001 to respond toenvironmental problems that relate to the Company. Based upon the 2021 update to thecorporate philosophy, we made full-scale revisions of our environmental policy and have set as acentral guideline our aspiration to realize a circular and decarbonized society.

In order to respond to social and environmental issues, the Company has set up an internal
project, which has organized the initiatives carried out by each department within the Company.
We also established the Sustainability Promotion Committee in March 2022 in order tostrengthen sustainability efforts. The purpose of this committee is to oversee and promote theCompany's sustainability activities from a company-wide perspective. Specific activities include
proposing measures and managing their progress, reviewing information disclosure, as well asdrafting regulations and necessary measures. The results of these deliberations are thenreported to the Board of Directors.

Toward preservation of the global environment, we aim to reduce the environmental
impact generated by our business activity and to help bring about a circular anddecarbonized society.
1. To reduce food loss and plastic waste, we are promoting the 3Rs of reduce, reuse, and recycle.
2. To reduce CO2 emissions, we will promote energy conservation and creation, and make full useof renewable energy.
3. Looking at environmental issues from the standpoint of a supermarket, we promote
environmental measures together with local communities.

Procurement policy
We consider it important to conduct business activities̶not only for the products we handle
and its quality, but also the entire supply chain that handles these products̶with integrity andcleanliness. To this end, in 2018 we established a procurement policy covering human rights,
compliance, and other matters for our suppliers. The 2021 revisions to this policy aim forcoexistence and mutual prosperity with suppliers, incorporating our intent that procurementtakes into account the reduction of our environmental burden and the impact on ecosystems.
We seek coexistence and mutual prosperity as a good partner of our suppliers throughfair, impartial, and free competition along with appropriate transactions throughout the
supply chain.
1. We will strive to procure products with respect for human rights and the labor environment.
2. We will strive to procure products that comply with laws and regulations, and social norms.
3. We will strive to procure products in consideration of reducing the burden on the environment
and the impact on ecosystems, in order to contribute to the realization of a sustainable andflourishing society.
4. We will strive to procure products in consideration of safety verification and health by
thorough application of quality management.

Diagram of Sustainability Promotion Committee

Board of Directors
Report/propose

DirectSustainability Promotion Committee
Chair:A Corporate Functions Group officer
Vice chair: A Director or Executive Officer nominated by the committee chair
Members: COO of General Affairs Division; COO of Human Resources Division; COO of
Corporate Finance and Accounting Division; COO of Compliance Division;
General Manager of Corporate Strategy and Planning Department; General
Manager of IR Department; General Manager of Sustainability Management
and Promotion Department, and other Directors and department managers
nominated by the chair, as well as officers and employees of Group companies
Organizer: Sustainability Management and Promotion Department
Report/propose

DirectSubcommittee
Members: Related departments
Organizer: Sustainability Management and Promotion Department
Coordinate

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Materiality

Identifying Materialities

STEP

1

Survey current
conditions

We conducted interviews with relevant people within the
Company and compiled descriptions of current conditions
and initiatives.

Impact on society

Process for Identifying MaterialitiesHigh

The Company has identified five materialities according to the process shown below.
In the domains related to the identified materialities, we are engaged in activities to increasesustainability and raise corporate value.

To conduct the materialities analysis, we identified social
issues to be considered in light of guidelines (demands fromsociety) including GRI, SASB, SDGs, and ISO 26000.
Impact on the Company

STEP

2

Identify
materialities

To visualize their importance, we mapped individual social
issues by plotting “Impact on society” (our own analogous
evaluation) on the y-axis against “Impact on the Company”
on the x-axis.
We identified high-impact social issues as our materialities
from these two viewpoints.

STEP

After consolidating these material social issues anddescribing initiatives, we sought the advice and opinions ofexternal experts.

Validate

Following internal reviews, including by management, theBoard of Directors deliberated them and provided a final
validation.

3

High

Extract items ofimportance for“society” andthe Company

Evaluate and map social
issues from a “society” and“Company” viewpoint

Consolidate and arrange
the extracted items toidentify the“five materialities”

Materialities for the Company

Reducing theburden on theenvironment

Providing safe,
high-value-added
products andservices

Contributing
to localcommunities as
infrastructure
for everyday life

Creating a
motivating
workplaceenvironment
where diverse
personnel can
thriveDevelopment ofan organization
with high value
and ethics

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Initiatives of the Company
ESG category

E

S

S

S

G

Materiality

Reducing the burden on
the environment

Providing safe,
high-value-added
products and services

Contributing to local
communities as
infrastructure foreveryday life

Creating a motivating
workplace environment
where diverse personnel
can thrive

Development of anorganization with highvalue and ethics

Initiative theme

Description(1) Reduce food waste

Reduce, reuse, recycle
Final amount of food waste: 2030: -50% (compared to 2017)(2) Reduce plastic waste

Restrict emissions from stores and centers, strengthen resource collection and recycling,change containers, trays, and packaging(3) Reduce CO2 emissions

Promote energy conservation, conduct energy creation initiatives, use renewable energy
CO2 emissions (Scope 1 & 2): 2030: -50% (compared to 2013)(1) Ensure safety andsecurity

Supply chain quality assurance inspection system
Introduce a food safety management system at food process centers(2) Promote responsible
procurement

Procurement that takes into account human rights and the labor environment;
procurement that complies with laws, regulations and social norms; procurement thattakes into account safety verification and health(3) BIO-RAL business

Enhance product development and store openings, introduce across existing stores, build
operations, strengthen education
BIO-RAL business：Quickly reach 20 stores and sales of ¥10 billion(1) Run stores stably

Use hazard maps to ascertain risk levels at each of our business sites
Formulate, update, practice, and implement business continuity plans (BCPs)(2) Diversification of
shopping options

Delivery services, online supermarket services through our own website and Amazon, andenhanced “last mile” delivery through LIFE HOME DELIVERY
Online supermarket business：¥100 billion in net sales by 2030

(3) Contribute to local
communities

Food education activities, food bank contributions(1) Diversity

Promoting active participation of women, foreign technical interns, and part-time
employees(2) Health management

Promote initiatives focused on health and safety management and health maintenanceand enhancement(3) Human resource
strategy

Develop talent systematically and strategically through a cycle of recruitment, placement,
training, and evaluation(1) Corporate governance

Strengthen the corporate governance structure and meetings, establish the Nomination &Remuneration Advisory Committee, strengthen IR activities(2) Compliance

Exercise thorough compliance, steadily implement the LIFE code of conduct
Carry out employee training, set up an appropriate whistle-blowing system

SDG targets

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Reducing the Burden on the Environment

Basic Philosophy

Electric power usage, breakdown
comparison (FY2020)

With the rapid global destruction of the environment, frequent abnormal weather events, andthe exhaustion of natural resources, one of our greatest challenges is reducing the burden on
the environment. We aim to realize a circular and decarbonized society by reducing “CO2emissions,” cutting “food loss,” and reducing “plastic waste”̶actions for which our own businessactivity has a large impact upon the environment̶as we endeavor to lower the environmental
burden arising from our business activity.

CO2 emissions by energy source

Electric power
City gas
LPG
A fuel oil
Hot water

Addressing Climate Change“Electric power” accounts for 93% of our CO2 emissions, and if you look at the breakdown bybusiness site, most of this is used for “stores.” The breakdown within stores shows thatapproximately 80% of this usage is accounted for by “refrigeration equipment” such as
refrigerator and freezer cases, “air-conditioning” facilities, and interior “lighting.”
In view of these conditions, we have taken important steps to reduce electricity usage atstores. By doing so, we aim to reduce our total CO2 emissions.

93%

Electric power usage

0.5%
7.7%

StoresCenters
HQs

91.8%
CO2 emissions

Electric power usage(t-CO2)(%)(1000 kWh)

220,000

110

460,000

210,000

100

200,00090

190,00080

180,000

70

170,000

60

160,000
150,000

50

2013

CO2 emissions

2014

FY2013

2015

2016

2017

FY2013 (base units)*Base units: operating hours x total floor space

2018

2019

2020

2021 (FY)40

Electric power usage within stores

440,000

420,000

19%

400,000

380,000

360,000

42%

13%
2013

2014

2015

2016

2017

2018

2019

2020

2021

(FY)

26%

Refrigeration
Air conditioning
Lighting
OtherValue Creation
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Eﬀorts to Reduce CO2 Emissions
To curb electric power consumption at stores, which accounts for the bulk of our CO2
emissions, we take the following steps with the goal of cutting Scope 1 & 2 emissions
in half by 2030 (compared to 2013):
1. Improve maintenance of refrigeration, air conditioning, and lighting equipment topromote energy conservation
2. Create energy through solar panel and bio-gas power generation installed mainly
at newly constructed stores
3. Make greater use of renewable energy

1. Energy conservation
High efficiency air
conditioning, updated
refrigeration cases
Filter cleaning
Optimization of temperature
settings
Motion sensor lighting (offwhen no one present)

2. Energy creation

50%

Solar power generation
Bio-gas power generation

100%
3. Renewable energy
CO2 emissions

Procure renewable energy tocover the portion thatcannot be reduced by energy
conservation and creation

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ZEB (net-zero energy building)In FY2022, our new Toyosu Store obtained thehighest five-star ranking from the Building-Housing
Energy-Efficiency Labeling System (BELS). It also
obtained ZEB Ready certification, with energy
savings of 50% or more.

Solar power generation
Set up solar power generation facilities at 15
locations in stores and food process centers in theTokyo and Osaka Regions, in order to generate
power. At some stores, solar power and energy
management systems are used in parallel, as webuild more environmentally friendly stores.

Bio-gas power generation
We have invested approximately ¥900 million into
the Tempozan Food Process Center and newly
established one of the largest bio-gas power
generation facilities in Japan as a retail business. Byutilizing the remaining food residue waste generated
by the Tempozan Food Process Center, this initiative
aims to reduce food residues and generate power.

Renewable energy
2013(Base FY)

2022

2030

*ZEB certification: A third-party certification system for buildings noted for their energy conservation performance, led by
the Ministry of Land, Infrastructure, Transport and Tourism. In accordance with calculation methods set
by the national government, a BEI (building energy index) value is calculated. Based on this value, up to
five stars can be awarded. Among the ones receiving the highest rank of five stars, the ones that also
have superior energy conservation performance receive ZEB certification.

From April 2022, we have switched to electricity
that is from renewable energy at the Tokyo
Headquarters, Osaka Headquarters, andneighboring CENTRAL SQUARE Nishimiyahara Store.

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Corporate Data

Reducing the Burden on the Environment

Response to TCFD
The Company recognizes the social and environmental issues attributable to climate change
as urgent issues. We comply with the approach of the Task Force on Climate-Related Financial
Disclosures (TCFD), while collecting and analyzing the necessary data.
Please see our website for details.*

Regarding the medium-term target of lowering Scope 1 & 2 GHG emissions by 50% by 2030
(compared to FY2013), the Company has set targets from FY2022.
Risk map envisioned for 2030

*Mostly in Japanese. We will release more English resources in due course.

P.29－30

Governance

The Board of Directors and the Sustainability Promotion Committee monitor climate-relatedrisks and opportunities. For details on the structure of the Committee,
see p.29–30.

We have prepared a risk map that assesses “likelihood of occurrence” and “financial
impact” on its two axes. Given the nature of the supermarket business, we believe thatrisks are quite prevalent based on our scenario-specific assumptions. By enhancing andprioritizing responses to risks while steadily seizing opportunities, we believe we canlessen the impact on operations as much as possible.
High

Strategy

Scenario-specific assumptions
Scenario

Assumptions

Less than
2°
C

Regulations and policies toward decarbonization are strengthened, and progress ismade on measures to combat climate change. There is an escalation of costs suchas those created by various regulations and policies and business investment
related to measures to fight climate change. Customers have increased desire fordecarbonized and low-carbon approaches to products and services.
Action on climate change is strongly desired, and if not addressed, customer
attrition gains momentum and reputational risk increases, leading to greatertransition risks. Meanwhile, the greater severity and increase of natural disasters
caused by climate change will be kept in check to a certain extent, so physical risks
are assumed to be relatively low.
Measures to fight climate change are inadequate, abnormal weather increases, andsea-level rise and natural disasters become more severe, leading to increased
physical risks. There is greater impact on operation and management of stores andfood process centers, which in turn could have an impact on finances.
Due to the effects stated above, demand for BCP-compliant products and services
will increase, and the cost of purchasing and introducing them will also increase. On
the other hand, policies and regulations to reduce greenhouse gases (GHGs) do notmake much headway, and we estimate that the transition risks are low.

Financial impact

We have examined “physical risks” such as abnormal weather brought about by climatechange and “transition risks” such as the introduction of policy regulations and changes inmarket requirements. While keeping an eye on 2030, the year set for internationallyestablished science-based targets (SBTs), we have conducted a scenario analysis and estimatedthe financial impact.

4°
C

Indicators and targets(5) Increased
reputational risk
due to customer
attrition if climatechange is notaddressed(6) Monetary damages fromflooding and power outages(3) Higher capital investment due
to CFC regulations(4) Higher costs for substitute goods
due to plastic regulations(9) Higher product prices due toshortages of food resources(1) Higher costs due toelectric power rateincreases(2) Higher tax burden
due to introduction ofcarbon taxes(8) Higher refrigeration andair conditioning costs,
increased repair costs(7) Insufficient product supply due to damage
to suppliers and logistics
Likelihood of occurrenceHigh

Financial impact regarding risks envisioned in 2030
Scenario

Assumptions

Carbon tax

Cost increases associated with a carbon tax(annual)¥1,425–1,852 million

Electricity rates fromrenewable energy

Higher procurement costs for electricity
derived from renewable energy (annual)¥170–680 million

Decline in gross profit from temporary store
closures (per store per day)

¥2–4 million

Decline in gross profit from service
interruptions at centers (all centers per day)

¥80–120 million

Damage fromflooding and power
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Corporate Data

Initiatives for a Circular Society
Approach

Bio-gas power generation

As a supermarket business, we recognize that the reduction in “food loss” and “plastic waste”
are critical issues. We have undertaken initiatives to utilize the world's limited resources withmaximum efficiency by promoting reduce, reuse, and recycle in every process ranging from thedesign and purchase of private brand and all other products and their manufacturing at foodprocess centers, to their preparation, sale, and disposal at the store.

At the LIFE Tempozan bio-gas power generation plant, vegetable
residues from the Nanko Food Process Center and residues fromdelicatessen items at the Tempozan Food Process Center areused to generate renewable energy.

Annual reduction
in food residues

Approx.

4,380 tons

Food recycling
Even though we do our best to
minimize food waste when preparing
and processing food products atstores and food process centers, we
still generate waste (food residues).
We recycle these food residues into
fertilizers, animal feeds, detergents,and other products.

Annual foodrecycling amountFood recycling
ratio

17,350 tons

56.3%

Final amount of food waste (per sales)

Environmentally-friendly cutlery
As an initiative to reduce plastic, wehave been gradually switching fromplastic to paper and wood straws
and spoons at all stores in the Tokyo
and Osaka regions since April 2022.

Food recycling ratio

Annual reductionof plastic

17 million pieces
Approx. 30 tons

Store recycling and collection(kg/million yen)(%)

(tons)

25.00

65

1,500

20.00

1,200

60

15.00

900
55

10.00

600
50

5.00

300

45

0.00
2017

2018

2019

2020

2021

(FY)

0
2017

2018

2019

2020

2021

(FY)

2017

PET bottles

2018

Styrofoam trays

2019

Milk cartons

2020

2021

(FY)

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Providing Safe, High Value-Added Products and Services

Basic Philosophy

Supply Chain Quality Assurance Inspection System

The supply of safe, secure, and high-quality products and services is fundamental to the foodsupermarket business and one of our highest priorities. All our employees have a strong
awareness of quality management in order to provide customers with safe and secure
products.

The Company’s efforts to supply safe and secure products to consumers are supported by arobust quality assurance system spanning all stages of the supply chain that links suppliers of
raw materials and products to consumers, including purchasing, procurement, manufacturing,processing, sorting, delivery, display, and sales.

Flow chart of quality assurance system(Stores)

Manufacturing andprocessing

Preparation, processing,display, and sales

Sorting and delivery

Display and sales

Purchase and procurement
Raw materials
Perishables
Delicatessen
ingredients

Products
Perishables
Delicatessen
ingredients
Daily delivery

Internal purchasing standards

Inspection systems at each center

Inspection of products being sold*Inspection of production sites

Operations based on ISO 22000 and
FSSC 22000*Microbial testing, physical and chemical testing, etc.

Hygiene management inspections

Quality control inspections

Inspection of documentation

Facility management inspections

Measurement checks

Traceability

Employee education and training

Inspection of manufacturing
facilities

Testing of production samples**Microbial testing, physical and chemical testing, etc.

Hygiene manager inspections

Customers

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Food Safety Management Based on ISO 22000 and FSSC 22000
The Company is fully committed to making fresh and safe products. Our food process centerscarry out extensive quality control and employee hygiene management activities that cover all
stages from the receipt of raw materials to the shipment of finished products. We haveestablished reliable quality maintenance systems, including product inspection areas thatmonitor the quality of items produced in food process centers.
To ensure the highest possible level of quality management, we have also obtained
certification under ISO 22000, the international standard for food safety management systems,
for the Kurihashi and Kazo Food Process Centers, and for the marine products business at Nanko
Food Process Center. We have also obtained certification under the FSSC 22000 standard for
operations at the Funabashi and Tempozan Food Process Centers.

Purchasing and Procurement

Food Safety Measures

Before ingredients are purchased, expert buyers check labeling information about specifications,
quality of raw materials, additives, microbial test results, and other data, to ensure that all
products are safe and meet our standards. In addition, all private brand products are checked by
the Quality Assurance Department which verifies analysis results, ingredient and food additive
data, raw material certificates of origin, and any other information submitted to the Company
before the start of business transactions with the suppliers. Our staffs also carry out inspections at
production sites to ensure that manufacturing processes comply with our quality standards. Basedon the results of these inspections, we then determine whether we can ensure product safety,
and whether the company or facility concerned is a suitable choice for production outsourcing.

In our stores, to ensure that only high-quality products are supplied to customers, we implement
highly effective hygiene management and check freshness and expiration date, using ourhygiene management manual, which is based on the Hazard Analysis and Critical Control Point(HAACP) system. In-store hygiene inspections are carried out to ensure that all products
manufactured comply with our in-house standards. We take particular care to prevent
contamination or mislabeling of ingredients causing allergies, and have strengthened our foodhygiene management systems in an effort to eliminate the risk of food poisoning. In addition,
we encourage not only Quality Assurance Department staff, but also buyers and other staff at
food process centers and other facilities to become qualified as food labeling inspectors.

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Contributing to Local Communities as Infrastructure for Everyday Life

Basic Philosophy
At the Company, we see supermarkets as “infrastructure that supports food and lifestyle for
local communities.” We are working to run stores stably and diversify shopping options so that
we can continue to provide local customers with daily necessities, especially safe and secure
food products. Through our food supermarket business, we will also continue to engage actively
in social contribution initiatives that help people to enjoy good health and fulfilling lives in theirlocal communities.

Our Role as Infrastructure for Everyday LifeAs a social infrastructure that supports people, we aredetermined to continue operating as long as possible
in the event of disasters, such as earthquakes andtyphoons, or in emergencies such as epidemics. We
have prepared BCPs in advance for this purpose. In
addition, we are responding to growth in the numberof dual-income households and demographic aging by
diversifying our shopping options so that customers
can have our products delivered without needing tophysically visit our stores.

Run stores stably
We use hazard maps produced by local governments to ascertain risk levels at each of ourbusiness sites. By formulating, updating, practicing, and implementing BCPs, we ensurebusiness continuity and enable stores affected by adverse events to resume operations as earlyas possible.

Diversiﬁcation of shopping options
We are actively expanding the areas
covered by our “same-day home delivery
service” for goods purchased at our stores,
as well as the areas covered by our own
online supermarket and our online
supermarket service through Amazon. In
addition, we have established LIFE HOME
DELIVERY in an effort to enhance our “lastone mile” delivery capabilities.

Arakawa River Basin Hazard Map (Reference)

The same safe and secure products sold in ourstores are also available online

Delivery services are also subject to our thoroughquality management

The Company’s
shopping options① In-store shopping(standard)

Details
Customers shop in the store
and take shopping homethemselves② Online (via our own

Customers shop online andhave shopping delivered③ Same-day delivery

Customers shop in the storeand have shopping delivered

and/or Amazon)

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Corporate Data

5 A DAY Association-Japan Member Organizations—Food Education Training Results

Contributing to Local Communities
The Company contributes to local communities through its food supermarket business byprioritizing initiatives that can provide continual benefits relating to food and other daily
necessities to communities and stakeholders in the areas where our supermarkets are located.
Specifically, we are promoting “food education classes,” which we have run for many years, and“contribute to food banks” for local residents and their children.

Company

FY2019FY2020

FY2021

Classes

Participants

Classes

Participants

Classes

ParticipantsA

659

17,588

378

9,721

390

10,070LIFE
CORPORATION

200

9,666

199

7,047

737

24,466

Food education (Classes)

B

50

1,526

35

1,037

The Company provides classes on topics such asbalanced diets and food loss, primarily for third
grade students from local elementary schools. These
educational programs are run at our stores orschools, as well as online.
According to surveys carried out by the 5 A DAY
Association-Japan in both FY2019 and FY2020,
these classes were ranked second among initiatives
by member organizations in terms of both thefrequency of classes and the number of participants.
In FY2021, we held a total of 737 food education
classes, which were attended by over 24,000 people.
Comments from participants were very positive
including, “My children couldn’t go on field trips
because of COVID-19, so it was great that they could
deepen their knowledge through classes run at theirschool by the Company,” and “Children at our school
have started talking about the need to prevent foodlosses. This has resulted in a reduction in the amountof food wasted at lunch time.” We will continue ourefforts to inform as many local residents as possible
about the importance of food, while also taking
steps to prevent the spread of COVID-19.

C

23

621

13

176

D

63

1,777

3

90

E

3

119

2

110

Food bank contributions
Our stores donate products that are no longer
available at stores to local food banks, children’s
cafeterias, and other institutions. In FY2021, we
donated a total of 167 kg of food on 12 occasions.
As a supermarket operator, we will continue tocontribute to the improvement of nutrition in local
communities through initiatives based on our
unique capabilities.

F

1

30

2

40

G

4

128

1

51

H

95

2,937

1

24

I

4

125

1

20

*No. of participants in FY2019 andFY2020 food education programs.
For FY2021, the unit of counting
was classes conducted, not schools.
As a result, there was a large
increase in the number ofparticipants, and due to having asingle program for social studies
and food education*5 A DAY Association-Japan: An NPO that conducts social contribution activities which contribute to health and good eating habits

Food Education Activities
During COVID-19
Despite COVID-19, and the resulting
declaration of a state of emergency andenforcement of infection prevention
measures, the Company was still able toexpand its activities in FY2021 compared toprevious normal years by developing andimplementing online food education classes.

Sustainability Management andPromotion Department
Deputy Section Manager

Mami Taniguchi

The Company began its food education activities in 2005.
At first, we only ran a few events each year, but ourprograms have since expanded and are now among themost extensive in the retail sector. The situation changed
drastically as a result of COVID-19. However, we exploredways to continue our programs through a trial-and-error
approach that led to the creation and implementation of
online programs and classes that can be completed within
schools in a short period of time. As a result of this success,we received a greater than average number of “thankyou” letters from children and schools. Our efforts tocontribute to local communities do not yield results
overnight, but it is very satisfying to receive feedback fromthose who have participated in our activities. In the future,
we intend to expand the number of programs, so that wecan provide activities that people of all ages can enjoy.

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Creating A Motivating Workplace Environment where Diverse Personnel Can Thrive

Basic Philosophy

Specific initiatives

The company has over 50,000 full-time and part-time employees working at almost 300 storesand centers across the Tokyo and Osaka regions. We believe that the diversity of individual
employees and their ability to take the initiative in their work are essential to the achievement ofsustainable growth. In Japan, where the workforce continues to shrink, labor shortages havebecome a chronic problem, particularly in the retail sector. We are responding to this situation by
stepping up our efforts to create comfortable working environments so that we can attract andretain the numbers of quality personnel that we need to maintain our business activities.

❶ Expansion of opportunities for women to play an active role in the workplace, and increase in the range ofDeveloping Comfortable Working Environments for Diverse People

Number of female managers

We want the Company to be a “company that helps improve every employee’s chances ofachieving job satisfaction, at which diverse people succeed in a stress-free environment without
being pressed for time.” This vision is reflected in our emphasis on “diversity,” “occupational safety
and health management,” and “human resource strategy.”

Diversity
By encouraging diverse personnel to play active roles, we aim to help all our employees to flourish
at work and in their personal lives. We want the Company to be a company in which all employees
have fair opportunities for career development and can enjoy comfortable working environments.

Promoting active participation of women
As a “company that makes the most of its diverse personnel,” the Company aims to (1) provide
working environments where female employees can play an active role based on their own
career plans, and (2) where they can enjoy autonomy.
One of our initiatives toward the realization of these goals is a “women’s advancement
promotion project,” which was launched in 2012 under the direct supervision of the president.
In 2013, we created a dedicated department to realize this initiative with the establishment of
the “Smile Support Office” as an organization dedicated to promoting advancement for female
employees. In 2019, this department was rebranded as the Office for Diversity Promotion in linewith our vision for the Company as a company in which diverse personnel, including women,
can play an active role.
We are determined to create a corporate culture in which highly capable and motivatedemployees can take on greater responsibilities, regardless of theireducational background or gender. To achieve that, we areproposing systems and mechanisms that will lead to thedevelopment of “comfortable working environments for
women,” and a “culture in which female managers can grow.” In
addition, given that the majority of our customers are women,
we are determined to reflect the views of our female employees,
including part-time and casual workers, in the various measures
we take to meet the expectations our customers.

departments and duties to which women are assigned❷ Distribution of guidebooks to improve understanding of the systems that can be accessed when life eventsoccur, such as nursing care, childcare, etc.

❸ Support measures for employees returning to work after childcare leave, including individual interviews andgatherings for staff who are working reduced hours due to childcare obligations, and the provision oftraining in preparation for a return to work
❹ Regular management training programs to facilitate career advancement for female employees❺ Regular training sessions designed to raise awareness for both men and women with regard to theimportance of female advancement❶ No. of female managers (including those responsible for the management of working hours)

FY2021: 146 (8.7% of the total), FY2022 target: 160 (10% of the total)❷ No. of female store managers, department managers, and above

FY2021: 25 (4.4% of the total)

Promoting employment of people with disabilities
The Company is working to create a corporate culture in which people can support each otherand play active roles in the company, regardless of disability. We regularly visit various support
schools and manage job experience programs at our workplaces with the aim of helping people
find jobs that suit their abilities. As of the end of FY2021, we had 582 employees with disabilities,
which is 2.89% of the total workforce. In FY2021, we received the “Human Resource Development
and Training Contribution Award” and “Job Matching Award” from the Osaka Career Support &Talent Enhancement Plaza (C-STEP). We were also recognized by the Tokyo Metropolitan
Government Board of Education as a significant business contributor for our efforts.

Opportunities for mid-career hires
The Company employs a diverse array of people, regardless of age or gender, with specialist skills
in our stores’ sales division, as well as in product development at food process centers, store
building design, new store property development, and both general and tax accountancy. As ofthe end of FY2021, mid-career hires made up 27.4% of our managerial positions above the store
and section manager level.

Foreign technical intern trainees
With regard to our non-Japanese employees, we employ
foreign technical intern trainees at our food process centers andin some of our stores. As of the end of February 2022, a total of
395 foreign technical intern trainees were undergoing training
in the Company. Technical intern trainees from Thailand,
Vietnam, and Myanmar are working in our food process centers.
We hope that these technical intern trainees will utilize the skills
they have acquired from us to contribute to the industrial
development of their home countries upon their return.

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Promoting active participation of part-time employees

Human resource strategy

The majority of our employees work part-time and areat the heart of our store operations. Newly employed
part-time workers are trained under our “Welcome
Program,” which includes support systems designed toenable even inexperienced employees to work withconfidence. Other support mechanisms include a skillbased grading and promotion system, a system forappointing department leaders, and a system forpromotion to full-time status. These systems help those
who work hard take on more responsibility.

We will secure talent for our future activities and ensure organizational diversity by continuing
to hire new graduates, while also actively recruiting mid-career personnel whose experience,skills, and qualifications enable them to make immediate contributions.
We will create educational systems that accommodate the aspirations of our employees
and support their growth. By providing high-quality education, we will create an environment
in which talent with diverse knowledge and experience can achieve growth throughautonomous learning.

Personnel management
Develop talent systematically and strategically through a cycle of recruitment,
placement, training, and evaluation.

Health management
We consider the health of our employees to be a vital management resource. We implement
initiatives focused on health and safety management with the aim of maintaining andenhancing employees’ health.

Recruitment
New graduate
recruitment
Mid-career
recruitment

Specific initiatives❶ Prevention of physical and mental health issues through regular health examinations and stress checks❷ Provision of “specific health guidance” in collaboration with the LIFE Health Insurance Society❸ The establishment of an “occupational physician consulting service” to address physical and mental

Placement

Training

Evaluation

Placement based on
personnel data
Career development
through humanresource strategy
meetings

Definition ofcompetence
requirements byposition and grade
Self-improvement
training

Consolidation ofevaluation cycles
Revision of
personnel
evaluation schedule

health concerns, and a “mental and physical health helpline” in collaboration with the LIFE Health
Insurance Society❹ The establishment of a harassment helpline❺ The development of a teleworking environment that allows people to work at any time and fromany location

Number and ratio of female managers

Ratio of employees with disabilities

Number and ratio of mid-career manager hires(People)(%)(%)(People)

(%)

150

10

3.5

300

30

120

9

280

28

90

8

260

26

240

24

220

22

3.0

2.5
60

7

30

6

0

5
2017

2018

No. of female managers

2019

2020

Ratio of female managers

2021 (FY)

2.0

1.5

200
2017

The Corporation

2018

2019

2020

Legally mandated employment ratio

2021

(FY)

20
2017

2018

No. of mid-career manager hires

2019

2020

2021

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In FY2021, we contributed to society through our business in a manner consistent with the Company’s brand such as by operating our supermarkets as an essential part ofthe local infrastructure that remained open throughout COVID-19, and by aggressively developing BIO-RAL business that are both environmentally and people friendly

Initiatives during COVID-19

Our mission of providing an infrastructure that supports food andlifestyle for local communities
As we explained in our materiality“contributing to local communities as infrastructure for everyday life,”we believe supermarkets are“infrastructure that supports food andlifestyle for local communities,”and we are endeavoring to operate our stores stably. Even since the outbreak of COVID-19 in 2020, we have undertaken a range of measures toensure continuity in our operations while prioritizing customer and employee safety and security to fulfil our vital mission as a lifeline for local communities.

The Company’s Basic Policy on Emergencies

Employee Safety and Security

We have a long track-record of responding to major disasters
prior to COVID-19. During the “Great Hanshin-Awaji
Earthquake” in 1995 and the “Great East Japan Earthquake”
in 2011, we were keenly aware of the need to keep ourstores open as a “lifeline” to protect the lives of our local
communities. On the other hand, during these twoearthquakes and the large typhoons that hit the Osaka
Region in 2018 and the Tokyo Region in 2019, we
experienced the difficulty of continuing to operate while
ensuring not only the safety and security of our customers
but also of our employees and their families.
Based on these experiences of past and recent disasters,
we reviewed how we respond to disasters and established
our “Three Principles for Disasters.” Our president took thelead in personally communicating these to all our store
managers and heads of departments. As a result, we believe
we were able to respond faster than competitors to COVID-19
in 2020, due to our employees taking the lead in thinking andacting in line with the “Three Principles for Disasters.”

In May 2020, all our stores temporarily closed for one day tomaintain store sanitation and hygiene and for the mental
and physical wellbeing of our employees. We also closed all
our stores on January 1-2, 2021, and January 1-3, 2022. We
are also ensuring the safety and security of our employees by
installing partitions and providing thermometers in breakrooms, as well as paid leave to get vaccinated and access toworkplace vaccination programs.

1. Safety of customers and employees is our highest priority
2. Continue to make every effort to keep our stores open
under our vital mission as a lifeline for local communities
3. Final decision-making is left to the store managers as
the situation on the ground will be different store to
store

Customer Safety and Security
In addition to installing acrylic barriers at our cash registers to
help prevent infection, we also worked to promote cashless
payments. We worked to ensure the safety of all ourcustomers by ensuring social distancing in queues for cash
registers and installing hand sanitizer in our stores. We also
set priority times for our elderly and pregnant customers to
do their shopping. As another measure to prevent the spreadof COVID-19, we temporarily refrained from distributing
promotional flyers and leaflets, and since restarting
distribution, we have been reviewing their contents.

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Supporting businesses and food producing regions throughthe sale of appealing products from all over Japan
COVID-19 has negatively impacted many agricultural producers around Japan due to the downturn in consumption of agricultural and livestock produce and products forfood service and commercial uses. We have implemented initiatives to support producers and food producing regions, as well as businesses, by selling various local speciality products
from throughout Japan. We will continue to support local producers by selling their appealing products from all over Japan, and ensuring our customers enjoy their delicious products.

Supporting Producers and Food Producing Regions

Plus One Project
Expansion of Hokkaido
milk consumption

We have undertaken various initiatives to support tourist
destinations and producers throughout Japan who are facing
difficulties. One example of this is the Tsunagu Project, a
special fair to support Japanese producers in a joint initiativewith the National Federation of Agricultural Cooperative
Associations (JA ZEN-NOH), by promoting their produce
in our stores, mainly in the Tokyo Region.
Promotion of Toyama
Prefecture produce

Promotion of
Hokkaido produce

Support of Businesses
We helped support businesses in the restaurant industry
during the difficult period they faced due to the prolonged
impact of COVID-19 by selling various appealing products
such as those of Kyushu's largest family restaurant chain,
Joyfull, and Kushikatsu Tanaka, etc.
CHIBO: okonomiyaki(savory pancake with various
ingredients) in pork and cheeseand green onion flavors

Supporting
Hanabatake Farm

JA ZEN-NOH fair tosupport producers

Supporting Tohoku region fair

Supporting thefisheries cooperative

Promotion of Ehime
Prefecture produce

Supporting
poultry farms

Sekai no Yama-chan:fried chicken wings

Ringer Hut:Nagasaki champon andsara udon noodles

Rikyu:
beef tongue
Hamburg steak

Tsukada Farm:charcoal-grilled
Miyazaki chicken

Supporting Choshi
Electric Railway

Sanwa: chicken Kushikatsu Tanaka:variety of deepwings andfried skewers
meatballs

Ginza Lion:beer, curries,
and pizza

Min Min:gyoza dumplings

Joyfull:regular and cheese
Hamburg steaks

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BIO-RAL

Bringing us closer to lifestyles in tune with nature
Organic

Peace of mind by enjoying natural products.
The joy of discovering local delicacies.

Agricultural produce andprocessed products are full of
nature’s goodness. We willcommunicate the value of theseproducts to the customers andprovide a place where customers
know they can always get them.

The comfort in eating healthily at home.

BIO-RAL’s wish is for a life filled with a senseof nature while living in the city.

Let’s find your new tomorrow at BIO-RAL.

Gentle on the Earth, Gentle on People
Why are we promoting the BIO-RAL business?
BIO-RAL has four concepts: Organic, Local, Healthy, and Sustainability. In other words, “let’screate a world that is gentle on the Earth where everyone can live healthy lives.” By designing,
preparing, and selling products that use pesticides, chemical fertilizers, food additives, etc., aslittle as possible, we support the healthy living of people and aim to realize an environmentfriendly and sustainable world. This is in line with the 17 Sustainable Development Goals(SDGs) and 169 targets for “realizing a world that leaves no one behind.”Moreover, expanding our stores and products that are health and environment-friendly
is very meaningful in achieving our “Vision” and in becoming “Japan’s number one
supermarket that remains trusted by customers, society, and employees.” By aggressively
expanding our BIO-RAL business, and if we can thereby gain greater trust from ourcustomers, we will be able to differentiate ourselves from other companies and break awayfrom the homogenous competition. Daily meals are the most basic and important part of ahealthy and secure life. We are developing our BIO-RAL business with the desire to be gentle
on the Earth and for everyone to be healthy.

Healthy

Four concepts

Local

A healthy diet nurtures a soundbody and mind. We are also
working to develop and offer a
range of products that are
gentle on the body.

What
BIO-RAL values

We will propose eating habitsthat are in tune with nature’s
blessings and appreciatedelicious produce from the land
and the fruits of the four
seasons.

「 BIO-RAL 」CONCEPT

Sustainability
We aim to realize a circularsociety and preserve the global
environment to ensure we passon the blessings of nature to ourchildren’s generation.

BIO-RAL Brand

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01

Management
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POINT

02

Aggressive Development of BIO-RAL Business

Since opening our first natural supermarket
Number of BIO-RAL store openings
BIO-RAL Utsubo Store in the Osaka region in
Up to 2020
2021
2016, the business and customer base has
Stand-alone
stores2
2grown steadily. As of February 2022, we had̶Annexed stores
2four stand-alone stores, and 44 BIO-RAL corners
in the Osaka region and 49 in the Tokyo Region,
BIO-RAL corners
3160
which includes annexed BIO-RAL stores. Goingforward, we will continue to expand our BIO-RAL sales space to meet the needs of ourcustomers interested in health and natural products by using ingredients and manufacturingmethods that are gentle on the body, and bring smiles to their faces.

BIO-RAL product development formats

POINT

03

Annexed store

BIO-RAL cornerMarket needs: growing health consciousness

We expect market needs related to the
BIO-RAL concept to continue to grow in
the future. This is based on a growing
awareness of health, organics,
supporting local producers, and theenvironment in response to a lack of
exercise due to staying at home during
COVID-19 and the recent sense of crisis
about climate change.

Trends in health consciousness(March 18, 2021)

(%)

50

46.6
43.8

45

41.0

40

39.7

41.4

35
30

Special Features

Governance46

Corporate Data

Development of BIO-RAL original products

We are focusing on developing original
products in line with the “BIO-RAL” concept.
In December 2020, we gave our private brand“LIFE Natural” a makeover into the “BIO-RAL”
brand, while launching 50 newly developed
products. Currently (as of the end of February2022), we have increased our original
products to approximately 200 items. We willcontinue growing this range to fully meet the
expectations of our customers.

Number of BIO-RAL products
189

200
150

101

100
50

42

47

48

2018

2019

0
2017

2020

2021

(FY)

BIO-RAL product development

In addition to stand-alone stores, we are developing BIO-RAL corners at our existing stores

BIO-RAL stand-alone store

CONTENTS

Sustainability

2017/1

2018/1

2019/1

2020/12021/1

Source: Created by the Company using data from the Consumer
Confidence Survey of the Japan Finance Corporation

We offer a wide range of organic products including fruit and vegetables, and cosmetics
without compromising on our values

BIO-RAL original products

Message from a
BIO-RAL Store Manager

Delicatessen items made with healthy
ingredients and preparation methods

BIO-RAL Shimokitazawa
Ekimae StoreStore Manager

Taeko Kurita

In February 2022, we opened our second BIO-RAL store in theTokyo Region, BIO-RAL Shimokitazawa Ekimae Store, on thefirst floor of (tefu) lounge, a commercial facility near
Shimokitazawa Station on the Odakyu Electric Railway. Our
delicious store-made delicatessen items with natural flavorsthat are gentle to the body are popular with our customers.
The BIO-RAL Shimokitazawa Ekimae Store aims to be awelcoming store that helps its customers in their healthyeating habits.

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Our corporate activities are developed and administered under a sound governance system that reﬂects economic and social needs

Corporate Oﬃcers

Back
row

Front
row

Junichi Hamahira

Koichi Narita

Naoko Miyatake

Kaoru Sueyoshi

Haruhiko Yahagi

Hiroko Kono

Takashi Katayama

Mitsuo Maki

OutsideCorporate Auditor

OutsideDirector

OutsideCorporate Auditor

Full-Time
Corporate Auditor

OutsideDirector

OutsideDirector

OutsideDirector

OutsideCorporate Auditor

Nobuyuki Kawai

Tomehisa Morishita

Takaharu Iwasaki

Toshiaki Namiki

Takashi Sumino

Director & Managing
Executive Officer

Director & Senior Managing
Executive Officer

Representative Director andPresident

Director & Senior Managing
Executive Officer

Director & Managing
Executive Officer

47

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Message from an Outside Director

People are the Heart of Our Business:
Team strength is created through good communication and a sense of personal responsibility

Koichi Narita
Outside Director

I have served as an outside director of LIFE Corporation for five
years. When I was first appointed to this position, I did my best
to understand the Group’s situation and challenges byreviewing its corporate regulations, and studying the minutesof Board meetings for the five years before my appointment.
In addition, I spent several months touring all LIFE stores andcenters, while also observing important meetings.
The first thing that impressed me was the Group’s
extremely open and transparent corporate culture. My
presence was readily accepted at business-related meetings,
such as store manager meetings, which were attended bypeople from a range of departments. I next became awarethat people frequently discussed the three components of
the “LIFE Pledge,” which serves as a code of conduct for LIFE
employees, in relation to the company’s vision, such as when
proposing or reviewing policies. I see the increasing focus on“purpose” in recent years as a sign that company policies andemployee behavior in general may be drifting away fromcompanies’ founding principles. At LIFE, however, thecompany’s core values have become a familiar part of daily
activities in the form of the LIFE Pledge, with the result beingthat individual employees naturally tend to behave inaccordance with the corporate philosophy. When attending

day-to-day meetings, I have also noticed that attempts topass responsibility onto others are met with disapproval, andthat employees, especially those at the senior managementlevel, will often take personal responsibility for difficult
situations and think carefully about what needs to be done. I
have frequently encountered situations that reflect thiscorporate culture, including with employees who try to bringgreater happiness into customers’ lives, as well as a tendency
for employees to exchange smiles and express gratitude ininteractions with other employees, suppliers, and people
involved in store operations. Sometimes in recent years, ournormal activities are disrupted by various events, such as
typhoons, earthquakes, rainstorms, and power outages. I
have been deeply moved by the way that the Group’s
employees respond to these challenges through teamwork. It
reminds me that behind the smiles with which they approach
their daily activities, LIFE employees also have a sense of
mission and pride toward their work in maintaining one ofsociety’s lifelines.
The strong commitment of LIFE employees has also been
evident during the COVID-19 pandemic that began in the early
spring of 2020. Despite intense anxiety and uncertainty about
the future, employees were inspired by their sense of mission
as people responsible for a vital lifeline and continued to work
together to maintain store operations. I recall that when our
President proposed all employees should receive a special
bonus payment as a gesture of gratitude, the move wasunanimously approved by the directors, and that LIFE was oneof the fastest in the industry to take such a step. In recognitionof the continuing efforts of its employees in the face of theongoing COVID-19 pandemic, the company decided to close
its stores for three days during the 2022 New Year period sothat everyone at LIFE could recuperate mentally and physically.

When the company announced this move in advance andoffered an apology to customers for the inconvenience, I was
pleasantly surprised when many customers expressed support
for the decision. It is often said that a company is its people.
For a company like LIFE, which provides lifelines for local
communities, it would not be an exaggeration to say thatpeople are everything. Companies continually strive toanticipate every situation and prepare countermeasures, but
it’s up to the frontline staff to apply them effectively. In recent
years, natural disasters have caused major localized damage.
That is why LIFE delegates to store manager of individualstores decisions about emergency actions, such as the
reduction of operating hours or the temporary closure ofstores. Even retail chains, which have head offices that
formulate strategy and tactics, rely on the ability of theirfrontline staff to respond flexibly in various situations. It is vitalto delegate authority to frontline staff, and to enhance theability of these employees to provide feedback to the head
office and other stores. Something I am looking forward to is
the resumption of the “Smile Workshop” program. Until its
suspension due to the COVID-19 pandemic, this event
provided opportunities to present and share case studies
about successful frontline initiatives.
I have been an outside Director of four listed companies,
and I have a feeling the roles and responsibilities of outside
Directors are becoming increasingly important, as evidenced
by the recent revision of Japan’s Corporate Governance Code.
In addition to drawing upon my past experience, I willcontinue my efforts to expand my knowledge. I am also
determined to ensure that management remains fully focusedon the perspectives of our stakeholders. I will continue to work
toward sustainable value creation based on the harmonizationof economic, social, and environmental values.

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Corporate Governance

Basic Philosophy
Under the corporate philosophy, “through reliable management with noble aspirations, contribute towards the realization of a sustainable and flourishing society,” the Group ensurescompliance and achieves sustainable company growth to enhance the Group’s contribution to society as a supermarket group trusted by all stakeholders. In order to achieve this, theGroup continuously strive to fulfill corporate governance to realize transparent, fair, swift, and bold decision-making. As part of our corporate governance structure, we appoint four
outside Directors, who act independently from the executive team while bringing outside insights to the activities of the Board of Directors. Independent outside Directors are appointed
according to independence criteria to oversee management from an objective viewpoint.

Corporate Governance Structure（as of May 26, 2022）
General Meeting of Shareholders
Appointment

Dismissal

Accounting
AuditorAppointment

ReportAppointment

Dismissal

Board ofCorporate
Auditors
4 Corporate
Auditors

Dismissal

Board ofDirectors
9 Directors

Audit/
reportNomination &Remuneration Advisory
Committee 3 members

Consultation
Report1 independent
outside Director
1 independent outside
Corporate Auditor
1 representative
Director

Accounting
audit report

Accounting
audit
Cooperation

Audit

Cooperation

Selection
supervisor

Agenda items
Business execution
reportOrganizational
structure

Company with a Board of
Corporate Auditors

Director term of office

One yearDirectors

Nine (including four independent
outside Directors)

Adoption of executive
officer system

Yes

Chairman of the Board

Representative Director

Voluntary Advisory Committeeof the Board of Directors

Nomination & Remuneration
Advisory Committee

Corporate Auditors

Four (including three independent
outside Corporate Auditors)

Accounting Auditor

KPMG AZSA LLC

Board of Directors(FY2021)
Overview

Internal Controls System
Management Committee
Sustainability Promotion
Committee

Cooperation

Number ofmeetings

Total members

Internal officers

Outside officers

Chairman

16

Ten

Six

Four

Representative
Director

The number of Directors and Corporate Auditors who attend Board meetings is set at a level that will allow substantive discussions, taking into consideration various factors including the creation of an effective management
structure as well as expertise and diversity.
・Resolutions to convene a General Meeting of Shareholders, resolutions to appoint officers and Executive Officers,

and resolutions regarding remuneration

Main agenda
items

・Business plans, financial results, earnings forecasts, dividends, and the holding and selling of cross -shareholdings
・New store openings, leasing and purchasing of real estate, establishment of new delivery companies, and key

sales strategies

・Establishment and revision of policies and regulations, organizational changes, and the setting of numerical tar-gets with regard to sustainability

Representative Director

Internal Audit Office

Management Strategy Committee
Risk Management Committee

Business
audit

Computer
Security Team
(LIFE-CSIRT)

Department/store

Compliance
Subcommittee
Safety Action
Subcommittee

Group company• Nomination & Remuneration Advisory Committee: This committee is comprised of three officers selected by a resolution of
the Board of Directors, with a majority of members being independent outside Directors. To ensure the transparency andobjectivity of discussions, the chairperson of this committee must be an independent outside Director. The committee held 12
meetings in FY2021. Topics discussed at these meetings included the possibility of further improvements to the officer
remuneration system, the appointment and dismissal of Directors, the appropriateness of remuneration levels, and the selectionof Executive Officers. Results of deliberations were reported to the Board of Directors.
• Internal Controls System Management Committee: The role of this committee is to ensure appropriate governance byconsidering whether internal control systems are being administered properly, reporting the results of these deliberations to
the Board of Directors, and proposing solutions to any issues.
• Risk Management Committee: This committee was established to examine risks relating to the business activities of theGroup, report the results of its deliberations to the Board of Directors, and propose courses of action. The committee also
manages the Computer Security Incident Response Team “LIFE-CSIRT,” a permanent unit created to help prevent incidents
impacting the Group’s computer security, and to minimize the harm caused by any such incidents.

Value Creation
Story

Response to Japan’s Corporate
Governance CodeAt LIFE CORPORATION, we are aiming toachieve sustainable growth of the Company
and increase its corporate value over the
medium to long term. These aims will beachieved by appropriately implementing eachprinciple of the Corporate Governance Code,which was formulated by the Tokyo Stock
Exchange (TSE) and summarizes the mainprinciples that contribute to the realization ofeffective corporate governance.
In 2019, a Nomination & Remuneration
Advisory Committee was established and aperformance-linked share remuneration planfor Directors introduced, and in 2021 the ratio
of independent outside Directors was at least
1:3. Having introduced support for evaluationsof the Company through a third-party
organization who evaluates the effectivenessof the Board of Directors, we have been
making further headway in our response to
the Code. For example, we have established a
Sustainability Promotion Committee toaddress sustainability issues and disclosing theskills matrix of our Directors in 2022.
In the years to come, we will continue topromote the strengthening of governancerequired of a company listed on the Prime
Market of the TSE.
Other information concerning these efforts
is disclosed in our Corporate Governance
Report.
Please see our website for details.**Mostly in Japanese. We will release more English resources in due course.

Efforts to Refine
the “True to LIFE”
Concept

Management
Strategy

CONTENTS

Sustainability

GovernanceSpecial Features

Corporate Data

50

Composition of the Board of Directors, Board of Corporate Auditors, andNomination & Remuneration Advisory Committee（as of May 26, 2022）
Board ofDirectors

Board ofCorporate Auditors
InsideNomination & Remuneration
Advisory Committee
Inside5Inside1

Total: 9

1

Total: 4(one woman)

Total: 3(one woman)

Outside(one woman)

Outside4

Outside3

2

Directors’ Skills Matrix
Independent
Overall
Sustainability HR andoutsidemanagementand ESG
labor

Name

Position(s) in the Company

Takaharu
Iwasaki

Representative Director and President
Member of the Nomination &Remuneration Advisory Committee

ToshiakiNamiki

Director & Senior Managing
Executive Officer●

Tomehisa
Morishita

Director & Senior Managing
Executive Officer●

Takashi
SuminoDirector & Managing
Executive Officer

Nobuyuki
Kawai

Director & Managing
Executive Officer

Koichi
NaritaDirector
Chairperson of the Nomination &Remuneration Advisory Committee●

Haruhiko
Yahagi

Director●

HirokoKono

Director●

Takashi
Katayama

Director●●●

Finance
Legal
and
and
accounting compliance

Digital International
Store
Sales Logistics
marketing experiencedevelopment

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IT

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Value Creation
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GovernanceCorporate Data

51

Corporate GovernanceNomination Policy

Evaluations of Board of Directors’ Eﬀectiveness

The Nomination & Remuneration Advisory Committee, which receives consultation fromthe Board of Directors, deliberates on the officer candidates, and the Board of Directors
determines the candidates based on the Committee’s report. The requirements forofficers are that they deeply share the corporate philosophy, possess an excellent
personality, strong virtue, a rich knowledge and a wealth of experience as well as theability to perform fair and accurate business operations and management. We also
require them to possess adaptability to address changes in the external environment, as
well as objective decision-making ability, insight, and foresight.

To continuously improve the effectiveness of the Board of Directors, we have been
conducting effectiveness evaluations by all officers, including Corporate Auditors, once a
year since FY2016. Since FY2021, we have been conducting effectiveness evaluations thatincorporate external perspectives and analysis by having introduced support forevaluations of the Company from an external third-party organization.

Remuneration Policy
To increase the transparency and objectivity of Director remuneration, the Nomination &Remuneration Advisory Committee verifies the appropriateness of remuneration levels,
remuneration components, performance-linked indicators, and performance-linked
remuneration. The Committee consists of three members: A Representative Director, an
independent outside Director, and an independent outside Corporate Auditor.
The basic policy for Directors' remuneration is to appropriately reflect the Company’s
performance and individual contribution in remuneration for each of the components
described below, considering industry levels and the levels of similar sized companies
with reference to survey results from external organizations. In addition, the Company
has adopted performance-linked remuneration for the purpose of increasing the
Directors’ motivation to contribute to improving medium- to long-term performance andincreasing corporate value. Remuneration for outside Directors is comprised solely of rolebased remuneration in light of their role and independence.
Role-based
remuneration

Remuneration paid for duties and responsibilities as Director, outside Director,
or Representative Director (fixed remuneration)

Remuneration
for businessexecution

Remuneration paid for duties and responsibilities as those in charge of businessexecution as well as results of business execution (individually determinedcommensurate with the state of business execution by each Director, etc.)

Performancelinked
remuneration

Based on target figures for consolidated ordinary profit and ordinary profit
margin, which are the Company’s management targets, each Director is
granted points. Those points are converted into shares determined for eachposition according to the achievement of the targets for each fiscal year, andthe shares are then delivered.

Evaluation
methodConducted anonymous online questionnaire surveys for all eligible
officers, with the results aggregated and analyzed by a third-party
organization(1) Composition of Board of Directors(2) Operation of Board of Directors(3) Board of Directors’ discussions
Evaluation
items(4) Monitoring function of Board of Directors(5) Director performance(6) Support system for Directors and Corporate Auditors(7) Officer training(8) Dialogue with shareholders (investors)(9) Individual efforts of Directors and Corporate Auditors

Evaluation
results andfuture issues

As a result of our own evaluation, based on a third-party organization’s
aggregation and analysis, we self-evaluate that the effectiveness of theCompany’s Board of Directors is being upheld.
Among the evaluation items, we recognize that issues include further
improvement of the themes and content of discussions, as well as thequality of discussions at Board of Directors’ meetings.
To achieve the sustainable growth of the Company and increase
corporate value over the medium to long term, while recognizing theneed to further stimulate deliberations to fulfill the roles andresponsibilities of the Board of Directors, we will further invigorate
discussions, including those at the Management Strategy Committee andtop management meetings.

Value Creation
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Governance

Organizational Framework Related to Compliance
Compliance Division is responsible for formulating and promoting policies, regulations,and measures related to compliance to ensure the entire LIFE Group, including affiliatedcompanies, maintain sound business practices. We investigate compliance or potential
breaches and formulate Group-wide measures to prevent recurrence of such breaches,and conduct Group-wide education and training on compliance.
Additionally, under the Risk Management Committee, which examines risks related to
our Group business operations, we have established the Compliance Subcommittee. The
Compliance Subcommittee is responsible for developing a framework for promoting
compliance based on the Group’s corporate philosophy, LIFE code of conduct, and thevarious regulations of Group companies, monitoring the progress of compliancepromotion and making improvements to it.

LIFE Code of Conduct
The LIFE Group has established its code of conduct as an embodiment of its corporate
philosophy, in which it declares our intent to contribute to society by ensuring all
employees share the same commitment to thorough compliance.
(Please see page 29 for details)

Compliance Training
To raise employee awareness of compliance, we conduct compliance training throughconferences and other meetings, in addition to regular training when new employees
join the Company or when employees are promoted to store management positions etc.
We have also rolled out systems to allow all employees to undertake training at any timeby creating educational videos. Through these training opportunities, we are working tonurture a corporate culture with an emphasis on compliance.

Whistle-Blowing System
Our internal reporting system consists of the LIFE
Hotline and a point of contact within the HR
department for harassment complaints. The LIFE
Hotline has an internal point of contact(Compliance Department) and an external one(law firm) that deals with legal violations andviolations of internal Company rules andregulations. The harassment desk within the HR
department is established to enable reporting of
harassment and issues related to the workplaceenvironment. We are striving to enhance theeffectiveness of the system by ensuringwhistleblowers are not disadvantaged and by
establishing an environment whereby employees
can easily report issues and seek advice.

Corporate Data

52

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GovernanceCorporate Data

53

Corporate Governance

Key Risks and Our Responses
The following are some of the risks that may affect the management, performance, and/or financial condition of the Group. Issues related to these risks are discussed at the Risk
Management Committee, held twice every financial year, where the status of how we are responding to the proposed countermeasures is confirmed and reported to the Board of
Directors.

Risk Factors

Specific Risks

Our Responses• Changes in the operating environment of food supermarkets in Japan, such as
domestic economic trends, inflation, and competition• Enhance our strengths and differentiate ourselves by pursuing the concept of “True to LIFE”• Pinpoint and understand changes in our operating environment by analyzing societal trends andcustomer sales data, and flexibly change our measures in response

Store expansion• Potential impact from a competitor opening a nearby store• Rising construction costs, construction delays due to labor shortages, andhigher rents• Growth strategy by continuing to open stores in Tokyo and Osaka, Japan’s two major metropolitan
areas• Thorough research of competitor trends• Store openings that enhance competitiveness, such as collaborative store openings in conjunction
with other industries• Proactive development in the online supermarket space to improve customer convenience• Efforts to effectively introduce and use systems, comprehensively streamline store operations, andimprove productivity to create a profit structure that can respond to increases in construction costs
and rents

Environment andclimate change

Climate change risk
• Supply shortages due to poor harvests of agricultural produce, marine products,
and meat products domestically or overseas, higher commodity prices, andrising energy consumption costs
Environmental risk
• Increased store operating costs and energy procurement prices due to factors
such as changes in environmental laws, tax systems and energy policies, as wellas heightened societal demands
Disaster risk
• Disasters causing more damage than expected to clients involved in theoperation of stores, processing/logistics centers, information systems, online
supermarkets, procurement, and logistics, etc.

• Reduce greenhouse gas emissions by actively promoting transition to LED lighting and adoption ofenergy-saving and CFC-free fridges and freezers• Work to reduce environmental impact and adopt low-cost energy sources in accordance with laws
and regulations• Make every effort to ensure stores remain open in the event of a disaster to fulfill our mission ofproviding infrastructure for everyday life while ensuring the safety and security of customers andemployees as a highest priority• Develop disaster response manuals, adopt in-house power generation facilities at processing anddistribution centers, and establish a Company-wide system for supporting stores• Difficulty in securing necessary talent, rising labor costs• Actively hire and train part-time workers, and intensify regular hiring of new graduates andmid-career hires• Create a motivating workplace environment where employees want to work and diverse personnel
can thrive(Please see page 41 for details)• Improve productivity by introducing and using systems to increase store operation efficiencies andenhance store work methods

Domestic
market trends

Employment
environment

Value Creation
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CONTENTS

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GovernanceCorporate Data54

Our Responses

Infectious
diseases• Group sales activities significantly restricted due to an outbreak or epidemic• Closure of stores and process centers in the event of an outbreak among employees• Development of response guidelines based on government policy, and thoroughimplementation of measures against infectious diseases by all employees• Implementing antigen testing of employees and providing workplace vaccinations, andpromoting COVID-19 vaccination by granting special paid leave(Please see page 43 for details)

Information
systems• Damage to facilities due to disasters or accidents, and system failures due to unauthorized
intrusion of computer viruses or employee error• Installation of critical equipment for core systems in areas less susceptible to damage• Outsourcing of operational management to enable 24/7 monitoring• Risk of incurring additional costs such as loss of public trust and/or compensation fordamages in the event of a scandal or violation of laws or regulations• Promotion of compliance management and implementation of education and training• Establishment of points of contact for whistleblowing both internally and for clients towork toward early detection and prevention of misconduct, corruption, or illegal or
dishonest practices(Please see page 52 for details on the internal reporting system)

Leaking of
personal
information• Leaking of personal information related to customers, clients, and employees held by theCompany due to human error in management or unauthorized external access• Development of a management system and establishment of personal information
management rules and administrative procedures, based on the Act on the Protection of
Personal Information• Establishment of LIFE-CSIRT as an organization to strengthen information security• Constantly check for system problems and establishment of a system that can respondrapidly in an emergency

Interest rates andfinancial market
trends• As of February 28, 2022, we have interest-bearing liabilities of ¥69.1 billion, anddepending on future trends in interest rates and financial markets, there are risks ofincreases in funding costs and difficulties in raising funds• Ongoing work to manage interest-bearing liabilities• Take measures such as borrowing at fixed interest rates to reduce the risk of interest rates
increases

Impairment of
fixed assets• Possibility of incurring impairment losses by holding a significant amount of fixed assets,
and it is determined that investment cannot be expected to be recovered within a certain
period of time due to changes in the economic environment or competitive conditions• Regularly check store profit (loss) status to identify signs of impairment• Implement targeted profit improvement measures for stores with declining profitability

Statutory,
regulatory, andsystemic changes

Tax reforms• Negative impact on consumer spending expected if consumption tax rate is raised again• Systemic changes like the abolition of reduced tax rate causing increased burden forhaving to switch systems
Other legal regulations• New costs incurred due to responding to food safety management updates, revisions tolaws and regulations such as the Labor Standards Act, changes to health insurance
premium rates, and changes in traditional business practices• Appropriately respond to tax system changes and tax reduction measures that may apply
to the Company• Work to develop systems that are as simple and low-cost as possible in response to tax
reforms• Appropriately respond to revisions to various laws

ComplianceValue Creation
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Financial data trends, corporate information, and stock information

Key Consolidated Financial Data
(millions of yen)

FY2011*1

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

Operating revenue

503,107519,941

534,923584,984

629,986

652,974

677,746

698,693714,684

759,146

768,335

Operating profit

11,065

7,402

7,634

10,872

12,831

12,664

12,094

12,285

13,87927,38822,932

Ordinary profit

10,873

7,308

7,702

11,01012,982

12,834

12,55012,831

14,55828,156

23,695

Profit attributable toowners of parent

4,100

2,968

3,798

5,213

7,923

8,110

6,555

7,401

7,834

17,824

15,208

Capital expenditures

18,05020,316

21,603

27,231

27,032

19,083

20,56833,997

19,86729,256

22,848Depreciation and amortization

7,181

7,942

8,276

8,833

10,316

11,373

12,055

12,63912,715

13,11014,061

Total assets

171,231

176,542

186,079

205,743

211,533

222,421

227,552

246,812

262,053

268,307270,229

Net assets

49,88852,86455,38052,453

57,84363,276

69,271

75,34081,36097,560110,299

29.1

29.9

29.8

25.5

27.3

28.4

30.4

30.5

31.0

36.4

40.8

60,77164,34868,07152,53979,97578,536

78,20890,204

59,14842,76069,108Cash flows from operating activities

15,86811,301

16,90851,355(7,688)17,565

16,952

18,23554,89841,747(7,926)

Cash flows from investing activities(12,027)(15,354)(16,121)(18,861)(22,891)(14,343)(18,045)(27,799)(16,067)(20,587)(20,303)

Cash flows from financing activities(4,548)558

637(25,623)

25,932(3,886)(2,551)

9,375(33,521)(19,029)

22,695

Cash and cash equivalents
at end of period

9,623

7,403

8,828

15,69911,051

11,336

7,692

7,503

12,813

14,943

9,409

Profit (loss)

Financial position

Equity ratio (%)
Interest-bearing liabilities balance
Cash flows*1 Figures for FY2011 and FY2015 are non-consolidated figures as there were no consolidated companies in the Group.

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FY2011*1

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

Net profit per share (yen)

79.67

56.78

72.52

107.92

169.24173.23140.03157.91

167.17380.32324.50Net assets per share (yen)969.31

1,008.64

1,060.89

1,120.35

1,235.47

1,351.55

1,477.96

1,607.47

1,735.94

2,081.61

2,353.44

Dividend per share (yen)

22.00

25.00

25.00

25.00

30.00

30.00

30.00

30.00

40.00

50.00

70.00

Return on equity (ROE) (%)

8.5

5.8

7.0

9.7

14.5

13.6

9.9

10.2

10.0

19.9

14.6

Ratio of ordinary profit tototal assets (ROA) (%)

6.5

4.2

4.2

5.6

6.2

5.9

5.6

5.4

5.7

10.6

8.8

Return on invested capital(ROIC) (%)

6.3

4.1

3.9

5.7

6.0

5.7

6.2

5.6

6.3

11.5

8.9

Price earnings ratio (PER) (times)

17.8

22.4

20.2

16.4

14.3

19.1

20.1

15.7

14.1

8.3

9.4

Price book-value ratio (PBR) (times)

1.5

1.3

1.4

1.6

2.0

2.5

1.9

1.5

1.4

1.5

1.3

Total number of issued sharesat the end of the period

53,45053,45053,45053,45053,45053,45053,45053,45053,45053,45049,450Total number of employees*2

19,16820,35621,002

22,48724,31325,06426,09927,51228,15929,48930,819Number of new stores

12

11

14

9

11

9

7

10

8

8

8

Number of stores at the endof the period

224

231

239

245

256

264

266

270

275

280

285

Sales floor area at the endof the period (thousand m2)

574

589

605

621

644

660

662

669

675

676

668

Per share financial data

Management indicators

Other(thousand shares)*1 Figures for FY2011 and FY2015 are non-consolidated figures as there were no consolidated companies in the Group.
*2 Of the total number of employees, the average number of part-timers employed per year is calculated based on eight hours per day.

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Corporate Data

GovernanceCorporate Information (as of February 28, 2022)

Company Overview
Company name

LIFE CORPORATIONFounded1910 (first LIFE store opened in 1961)

Established

October 24, 1956

Organizational Chart
General Meeting of
Shareholders

Internal Controls System
Management Committee

Head Office:3-6-2 Nihonbashi Honcho, Chuo-ku, Tokyo
Head office andregional
headquarters

Sustainability Management andPromotion Committee
Representative Director
and President

Osaka Headquarters:
2-2-22 Nishimiyahara, Yodogawa-ku, Osaka
Tokyo Headquarters:
1-2-16 Taito, Taito-ku, Tokyo

Quality Assurance Div.

Information Strategy Div.

Compliance Div.

IR Dept.

http://www.lifecorp.jp/ (Japanese)

Corporate Finance andAccounting Div.

WebsiteSustainability Management
and Promotion Dept.

30,247 (consolidated)

General Affairs Div.

Number of
employees

Corporate Functions
Group HQ

Office for Diversity Promotion

285

Business
Group HQ

Human Resources Div.

Number of stores

Development
Group HQCX Co-creation
Promotion Office1

InfrastructureGroup HQ

Business Strategy Div.

Companies subject
to consolidated
financial statements

Tokyo Office

Tokyo Region Product Div.

Supermarket chain

LIFE-CSIRTTokyo Region Chain Store Div.

Main business

E-Commerce
Business Division

Osaka Region Product Div.

KPMG AZSA LLC

Risk Management
Committee

Osaka Region Chain Store Div.

Accounting auditor

Corporate Strategy andPlanning Dept.

Tokyo Region Development Div.

From March 1 every year to end of
February of the following year

Board of Corporate
Auditors

Management Strategy
Committee

Osaka Region Development Div.

Fiscal year

Tokyo Region Process Center &Logistics Div.

¥10,004 million

Corporate Auditors

Internal Audit OfficeOsaka Region Process Center &Logistics Div.

CapitalNomination & Remuneration
Advisory Committee

Board of Directors

Efforts to Refine
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Stock Information (as of February 28, 2022)

Stock Information

Breakdown of Shareholders

Common stock
authorized

120,000,000 shares

Common stock
issued49,450,800 shares(2,493,202 shares of treasury stock)

Number ofshareholders

5,320

Number of shares
per trading unit

100 shares

Stock exchange
listing

Prime Market of theTokyo Stock Exchange

Securities code

8194

Shareholder
register agent

Sumitomo Mitsui Trust Bank
1-4-1 Marunouchi, Chiyoda-ku,
Tokyo

Other domestic
corporations

Foreigncorporations, etc.

6.02％

50.82％

Financial
institutions

27.44％

Treasury
stock

5.04％

Individuals/
others

10.68％About

LALAPIName

LALAPI

Hometown

LIFE Island

BirthdayApril 28
(Four-leaf Clover Day)・Soft, cuddly andcomforts everyone
Character ・Always smiling andmaking everyone
around happy
Favoritefood

Major Shareholders
Name

LALAP
I
Happy is afairy,
who issa
every id to make
one h
appy.

Number of shares held

Voting rights

Mitsubishi Corporation

10,562,500

22.5%

Seishin Kosan Corporation

5,382,000

11.5%

The Master Trust Bank of Japan, Ltd. (Trust Account)

3,975,700

8.5%Life Sports Promotion Foundation

3,229,200

6.9%Life Mutual Prosperity Association

2,317,612

4.9%

Sumitomo Mitsui Trust Bank, Limited

2,264,000

4.8%

The Norinchukin Bank

2,100,276

4.5%

Custody Bank of Japan, Ltd. (Trust Account)

799,500

1.7%

SUMITOMO LIFE INSURANCE COMPANY

737,000

1.6%

Nobutsugu Shimizu

697,300

1.5%

Mini croissants
baked in the LIFE’s
bread corner“Komugi no Sato.”

Our endearing and long-loved character LALAPI was createdby the character designer Atsuko Nishida, who designed thefamous Pokémon character Pikachu, to make LIFE a more
attractive place to shop for many customers. We decided
on LALAPI’s design and name through an employee ballot.
To learn more about LALAPI, scan the QR codes below.*
LALAPI is waiting!

Web siteYouTube*Japanese only.

Instagram

58

LIFE CORPORATION