Flash Report on the Consolidated Financial Results
for the Fiscal Year Ended February 28, 2022
April 11, 2022
Listed Company Name: Lawson, Inc.
Tokyo Stock Exchange
Code No.: 2651
(URL https://www.lawson.jp/en/ir)
Company Representative: Sadanobu Takemasu, President and CEO, Representative Director,
Chairman of the Board
Contact: Tomoki Takanishi, Senior Vice President, Financial Administration Division Director
Tel.: +81-3-5435-2773
Scheduled date for the ordinary general meeting of shareholders: May 25, 2022
Scheduled date for submission of annual securities report: May 26, 2022
Scheduled date for payment of dividend: May 26, 2022
Supplementary materials for annual financial results: Yes
Holding of presentation of annual results: Yes (for institutional investors and analysts)(Amounts less than one million yen are truncated)
1. Consolidated operating results for 2021 fiscal year (from March 1, 2021 to February 28, 2022)(1) Consolidated operating results (cumulative)
Note: Percentages represent increases (decreases) compared with the previous fiscal year.

For the fiscal year ended
February 28, 2022
February 28, 2021
Note: Comprehensive income:For the fiscal year ended
February 28, 2022
February 28, 2021

Profitattributable toowners of parent
Millions%%of yen26.5
17,900106.0(33.3)
8,689(56.8)

Gross operating
revenue

Operating income

Ordinary income

Millionsof yen698,371
666,001

Millionsof yen47,09640,876

Millionsof yen47,571
37,610

%
4.9
(8.8)

%
15.2
(35.1)

Fiscal year ended February 28, 2022
Fiscal year ended February 28, 2021

20,613 million yen
10,046 million yen

Profit per
share

Dilutedprofit per
share

Return on
equityRatio of ordinary
income to total
assetsYen
178.87
86.84

Yen
178.71
86.78

%
6.6
3.2

%
3.5
2.8

105.2 %
(42.9)%

Ratio ofoperating income togross operating
revenue%
6.7
6.1

Reference: Share of profit of entities accounted for using equity method:
Fiscal year ended February 28, 2022
50 million yen
Fiscal year ended February 28, 2021
332 million yen(2) Consolidated financial position
Shareholders’
Net assets per
Total assets
Net assets
equity ratio
share
As of
Millions of yen
Millions of yen%
Yen
February 28, 2022

1,337,245

278,47320.4

2,726.97

February 28, 2021

1,365,430

272,93119.6

2,674.53

Reference: Shareholders’ equity:

As of February 28, 2022
As of February 28, 2021

272,891 million yen
267,632 million yen

(3) Consolidated cash flows
Net cash providedby (used in)operating activities
For the fiscal year ended
Millions of yen
February 28, 2022
146,644February 28, 2021
227,954

Net cash providedby (used in)investing activities
Millions of yen(51,781)(29,983)

Net cash providedby (used in)financing activities
Millions of yen(109,516)(140,642)

Cash and cash
equivalents at endof period
Millions of yen
388,444
401,136

2. Dividends
Annual dividends per share
1Q

1H

3Q

Year-end

Total

Yen

Yen

Yen

Yen

Yen

2020 fiscal year

－

75.00

－

75.00

2021 fiscal year
2022 fiscal year
(forecast)

－

75.00

－

－

75.00

－

Total
dividends
for the year

Payoutratio

Ratio ofdividends toshareholders’equity%%150.00Millions ofyen
15,010

172.7

5.6

75.00

150.0015,010

83.9

5.6

75.00

150.0068.2

3. Forecast of consolidated operating results for 2022 fiscal year (from March 1, 2022 to February 28, 2023)
Note: Percentages represent increases (decreases) compared with the previous fiscal year.
Gross operating
Profit attributable Profit per
Operating income Ordinary income
revenueto owners of parent share
Millions
Millions
Millions
Millions
%
%
%
%
Yen
of yenof yenof yenof yen1H of 2022 fiscal year
510,000 46.2
27,5003.0
26,000(6.6)
13,500 (22.4) 134.90
2022 fiscal year
1,024,000 46.6
53,000 12.5
48,5002.0
22,00022.9
219.84
Note: Forecast of consolidated operating results for 2022 fiscal year (from March 1, 2022 to February 28, 2023)
is based on figures after applying the “Accounting Standard for Revenue Recognition” (ASBJ Statement
No.29, March 31, 2020).
4. Notes(1) Change in significant subsidiaries during the fiscal year (Changes in certain specified subsidiaries resulting
in changes in scope of consolidation): None
Added: None

Excluded: None

(2) Changes in accounting policies, changes in accounting estimates or restatements
1. Changes in accounting policies associated with revision in accounting standards: None
2. Changes in accounting policies other than 1. above: None
3. Changes in accounting estimates: None
4. Retrospective restatements: None
(3) Number of shares outstanding (common stock)
1. Number of shares outstanding at the end of year (including treasury shares)
As of February 28, 2022:
100,300,000
As of February 28, 2021:

100,300,000

2. Number of treasury shares at the end of year
As of February 28, 2022:
228,807

As of February 28, 2021:

232,954

3. Average number of shares during the year
As of February 28, 2022:
100,070,561

As of February 28, 2021:

100,065,840

Reference: Non-consolidated operating results for 2021 fiscal year (from March 1, 2021 to February 28, 2022)
Non-consolidated operating results (cumulative)
Note: Percentages represent increases (decreases) compared with the previous fiscal year.
Gross operating
revenue

OperatingincomeOrdinary income

Millions
Millions
Millions%%%of yenof yenof yenFebruary 28, 2022
355,1020.1
25,870(1.1) 34,278
1.7
February 28, 2021
354,825(9.2) 26,150(41.5) 33,700(26.7)
Note: The Flash Report on the Consolidated Financial Results is not subject to audit.
For the fiscal year ended

Profitattributable toowners of parent
Millions%of yen13,470(15.3)
15,894
2.6

Note: Descriptions on appropriate use of financial performance forecasts and other special notes
Forward-looking statements presented herein such as financial forecasts are based on currently available
information and certain presumptions deemed to be reasonable as of the date of announcement. The achievementof said forecasts cannot be guaranteed. Actual results may be materially different from those in the forecast as aresult of various factors. For preconditions of these financial forecasts and notes concerning their use, pleaserefer to “1. Overview of Operating Results, (4) Future Outlook” on page 12.

Contents

1. Overview of Operating Results ............................................................................................................

2(1) Overview of Operating Results for the Fiscal Year under Review ................................................

2(2) Profit and Loss ...............................................................................................................................

11(3) Overview of Financial Position for the Fiscal Year under Review ................................................

11(4) Future Outlook ...............................................................................................................................

12

2. Basic Approach to Selection of Accounting Standards ........................................................................

12

3. Consolidated Financial Statements and Main Notes ............................................................................

13(1) Consolidated Balance Sheet ...........................................................................................................

13(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ........

15

Consolidated Statement of Income .................................................................................................

15

Consolidated Statement of Comprehensive Income .......................................................................

16(3) Consolidated Statement of Changes in Equity ...............................................................................

17(4) Consolidated Statement of Cash Flows ..........................................................................................

19(5) Notes to Consolidated Financial Statements ..................................................................................

21(Going Concern Assumption) .........................................................................................................

21(Accounting Policies for the Preparation of Consolidated Financial Statements) ..........................

21(Unapplied Accounting Standards, etc.) ...............................................................................................................

24(Changes in Presentation) ...............................................................................................................

25(Notes to Consolidated Balance Sheet) ..........................................................................................

26(Notes to Consolidated Statement of Income) ................................................................................

28(Notes to Consolidated Statement of Comprehensive Income) ......................................................

30(Notes to Consolidated Statement of Changes in Equity) ..............................................................

31(Notes to Consolidated Statement of Cash Flows) .........................................................................

33(Segment Information) ...................................................................................................................

34(Per Share Information) ..................................................................................................................

40(Significant Subsequent Events) .....................................................................................................

40

1

1. Overview of Operating Results(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year under review, or fiscal 2021 ended February 28, 2022, we continued to take rigorous
prevention measures against the infection of the novel coronavirus and responded to new normal demand byexerting concerted Group-wide efforts. Specifically, under the leadership of our Lawson Group Sweeping
Transformation Executive Committee, which was launched in September 2020 to realize “Challenge 2025”
formulated for 2025, the 50th anniversary of our establishment, we renovated our stores and revamped our
product lineups in Domestic Convenience Store Business in response to changes in the business environment,
and the whole Lawson Group endeavored to resolve medium- to long-term issues for sustainable growth,acquire new revenue opportunities and foster job satisfaction.
As a result, for fiscal 2021 on a consolidated basis, gross operating revenue increased to 698,371 million
yen (up 4.9% from previous fiscal year), operating income increased to 47,096 million yen (up 15.2% fromprevious fiscal year) and ordinary income increased to 47,571 million yen (up 26.5% from previous fiscal
year). Profit attributable to owners of parent increased to 17,900 million yen (up 106.0% from previous fiscal
year).
We also focused on improving our group-wide internal control system and addressing operating risks basedon the 2021 Basic Policy for Improvement of Internal Control Systems. We will continue promoting internal
control going forward.
In addition, with a view to promoting the Sustainable Development Goals (SDGs) and focusing on
environmental, social and governance (ESG) practices in management, we established the Lawson Group
Human Rights Policy and Lawson Group Sustainability Policy in June and August 2021, respectively, andrevised the Lawson Group Environmental Policy in August.
Operating results by business segment were as follows.
(Domestic Convenience Store Business)
During the fiscal year under review, the number of new COVID-19 cases increased, resulting in a state of
emergency or quasi-emergency being declared in many prefectures, while vaccinations by municipalities
and workplaces progressed. During the first half of the fiscal year, legal and voluntary restrictions were
imposed on a variety of social activities, but in the second half, new infection cases started decreasing in
October 2021, leading to the nationwide lifting of the state of emergency or quasi-emergency, an easing ofrestrictions on social activities, and a recovery trend in the movement of people. However, in January 2022,
the movement of people started showing a decreasing trend again due to the rapid spread of the Omicron
variant.
Under such circumstances, Lawson has been proceeding with store renovations in line with the businessenvironment surrounding each store, helping them expand their merchandise assortment of frozen foods andother daily necessities to adapt to changes in customers’ lifestyles and better address customer needs. We
renovated 2,636 stores in the fourth quarter, completing the refurbishment of 4,305 stores by the end of the
fiscal year. Installation of the Machikado Chubo in-store kitchen service at stores also progressed, with 8,359
stores equipped with the service as of the end of February 2022.
In store operation, we are striving to establish LAWSON stores as convenience stores endorsed by all our2customers. To this end, we are implementing measures to achieve our three commitments, namely, to pursue
compelling taste, to be considerate to people, and to be environmentally friendly. In addition to further
strengthening our distinctive products that focus on taste and health, we are also working to provide heartfelt
customer service in our stores, and to strictly address environmental concerns such as reducing food loss,
plastic usage, and CO2 emissions, etc. We adopted an AI-based system that prompts stores to make timely
discounts by providing reminders as part of our efforts to reduce food loss, conducted a pilot experiment on
optimizing store delivery routes by using AI to reduce CO2 emissions, and started selling food by weight at
NATURAL LAWSON stores to reduce plastic.
[Store Operations]
In store operations, we continued to focus on reinforcing adherence to the Three Essential Practices, whichemphasizes (1) serving customers courteously; (2) offering a merchandise assortment focused on basic itemswith high demand; and (3) keeping our stores and communities clean. In our efforts to respond to customer
needs and increase sales, we also focused on expanding our merchandise assortment to respond to changes
in consumer lifestyles and values. Furthermore, we kept up our initiatives to increase the profitability offranchise stores, including helping them streamline their store operation and reduce costs associated withfood waste and utility expenses.
[Merchandising and Service Strategies]
Sales continued to surge in fresh foods, frozen foods, daily delivered foods, room temperature
Japanese/Western desserts, and alcoholic beverages, whose assortments we have been endeavoring to expand
with the aim of supporting the daily lives of customers. In the frozen food range, sales strengthened as aresult of expanding our merchandise assortment in phases from November 2021 by developing
groundbreaking items such as frozen dessert, as well as capturing customer needs for stocking up on
ingredients and ready-made dishes. In the rice range, our “Korega BENTO” box lunch series, which wasrevamped into a long-lasting chilled range in March 2021, continued to record steady sales throughout the
fiscal year under review, and our “Kinshari Onigiri Rice Ball” series also enjoyed robust sales along withthe modified regular lineup of onigiri rice balls. Our original products consecutively became huge hits,
exemplified by “Nama Gateau Chocolat,” our new dessert product, and “Pari Chiki,” our new fast-foodcounter item, launched in September and October 2021, respectively. Partly owing to customers having fewer
opportunities to go out, the Machikado Chubo in-store kitchen service enjoyed especially strong demand foritems its products with established popularity including the “Thick-Sliced Sangenton Pork Cutlet Sandwich,”
and items offered in collaboration with food service companies that provide delicious dishes from specialty
restaurants as well as the “Local Bowl” series that responds to regional needs.
Regarding food delivery services, we started offering “Demae-can” in February 2022 in addition to thefive services we already provide including Uber Eats, which was provided by Lawson for the first time inthe convenience store sector. As a result, the combined number of stores listed on food delivery services
reached 2,903 in 45 prefectures as of February 28, 2022. In addition, Uber Eats delivers over-the-counter(OTC) drugs sold at 71 LAWSON stores in 14 prefectures.

3

[Breakdown of Sales by Merchandise Category at Chain Stores in Domestic Convenience Store Business]
Fiscal year

Previous fiscal year

Current fiscal year

From March 1, 2020

From March 1, 2021

to February 28, 2021

to February 28, 2022

Sales

Percentage

Sales

Percentage(Millions of yen)of total (%)(Millions of yen)of total (%)

1,156,760

53.4

1,190,886

53.9

103.0

Fast foods

462,49721.3

480,260

21.7

103.8

Daily delivered foods

343,77215.9

343,668

15.5

100.0

Nonfood products

202,7889.4

197,166

8.9

97.2

2,165,818

100.0

2,211,981

100.0

102.1

Product group
Processed foods

Total

YoY(%)[Store Development]
In opening new stores, the Group continued to focus on developing profitable stores.
During the fiscal year under review, the total number of LAWSON, NATURAL LAWSON and LAWSONSTORE100 stores opened in Japan stood at 483 stores. Meanwhile, we closed a total of 303. As of the endof February 2022, the total number of domestic stores was 14,656 *1. Based on the joint business agreement
concluded with POPLAR Co., Ltd. in September 2020, we converted 122 stores from its brand to the
LAWSON POPLAR or LAWSON brand stores from this year. Based on the comprehensive business allianceentered into with H2O Retailing Corporation in May 2021, Lawson converted 97 station stores andconvenience stores operated by asnas Co., Ltd., an H2O Retailing Corporation Group company, from “asnas”
stores into LAWSON stores.
In an effort to establish convenience store models catered to an aging population and a trend toward selftreatment, we are building partnerships with dispensing pharmacy and drug store chains to operate
healthcare-oriented LAWSON stores that offer over-the-counter pharmaceuticals and prescription drugs, aswell as a wider assortment of cosmetics and daily necessities than conventional LAWSON stores. The
number of stores offering non-prescription drugs has reached 280 stores (includes 49 pharmacy LAWSON
stores equipped with drug-dispensing pharmacies) as of the end of February 2022. Moreover, the number ofstores offering nursing care consultation services has reached 22 as of the end of February 2022. Furthermore,
we have also been expanding our chain of “in-hospital LAWSON stores,” which feature strengthened focus
on medical, sanitary, nursing and rehabilitation supplies in addition to merchandise and services offered atstandard convenience stores. The number of such stores has reached 337 as of the end of February 2022.
Building on our expertise developed through operation of in-hospital LAWSON stores, we will continue tosupport the lives of all people interacting with hospitals.
Our NATURAL LAWSON stores, which are popular particularly among female customers for supporting
their beauty, health, and comfortable lifestyles, marked their 20th anniversary in July 2021. NATURALLAWSON stores offer an exclusive selection of finely picked items of value, including food made withhealthy ingredients and environmentally friendly detergents and cosmetics. Meanwhile, our LAWSONSTORE100 stores offer high quality, safe and reliable fruits and vegetables with a focus on freshness anddaily necessities, supporting customers’ daily dietary lives by helping them plan their meals. The stores are
visited by customers of all ages including children and the elderly, and particularly single people andhomemakers. As of the end of February 2022, we operate 136 NATURAL LAWSON stores and 669
LAWSON STORE100 stores.

4

*1 The numbers of store openings and closings and total number of stores in Japan include stores operated by Lawson, Inc. and threeequity-method affiliates, Lawson Kochi, Inc., Lawson Minamikyushu, Inc. and Lawson Okinawa, Inc.

[Change in the Total Number of Domestic Stores]
Total stores as of

Change during

Total stores as ofFebruary 28, 2021

fiscal year

February 28, 2022

LAWSON

13,654

197

13,851

NATURAL LAWSON

143

(7)

136

LAWSON STORE100

679

(10)

669

14,476180

14,656

Total[Number of LAWSON stores by prefecture (As of February 28, 2022)]
Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Numberof stores

Hokkaido

675

Ibaraki

217

Kyoto

329

Ehime

212

Aomori

279

Tokyo

1,683

Shiga

154

Tokushima

135

Akita

182

Kanagawa

1,077

Nara

138

Kochi

138

Iwate

178

Shizuoka275

Wakayama

153

Fukuoka529

Miyagi

255

Yamanashi

137

Osaka

1,175

Saga

75

Yamagata

112

Nagano

174

Hyogo

698

Nagasaki

125

Fukushima

170

Aichi

717

Okayama

235

Oita

197

Niigata

226

Gifu

181

Hiroshima

297

Kumamoto

161

Tochigi

197

Mie

136

Yamaguchi

127

Miyazaki

109

Gunma

244

Ishikawa

103

Tottori

136

Kagoshima

202

Saitama692

Toyama181

Shimane141

Okinawa

260

Chiba

600

Fukui

107

Kagawa132

Total(domestic)

14,656(Note) These figures include stores operated by Lawson, Inc. and equity-method affiliates, Lawson Kochi,Inc., Lawson Minamikyushu, Inc. and Lawson Okinawa, Inc.
As a result, Domestic Convenience Store Business posted gross operating revenue of 424,567 million yen(up 0.5% from previous fiscal year) and segment profit of 28,396 million yen (down 1.2% from previous
fiscal year).
(Seijo Ishii Business)
Seijo Ishii provides customers with well-selected, safe, and reliable foods under its philosophy of “Quality
food for a quality life.” Operating diverse store formats including street-side stores and stores in stationbuildings and commercial facilities, the supermarket chain leverages its distinguished product development
expertise to offer original products and food items made in-house under the Seijo Ishii brand. The number of
directly operated Seijo Ishii stores reached 169 as of the end of February 2022. Until the end of the first halfof the fiscal year, street-side stores, which captured the demand that would have been fulfilled bysupermarkets had it not been for the intermittent declarations of states of emergency. In the second half ofthe fiscal year, after the state of emergency was lifted in October 2021, sales growth slowed mainly at street-5

side stores primarily due to a decrease in demand from stay-at-home customers. Product wise, dishes
produced in-house at our central kitchen continued to enjoy robust sales driven by a range of measures. We
will continue striving to elevate the brand power of Seijo Ishii by promoting the sustainable development of
products of value, effective promotional campaigns, and publicity activities as a manufacturing retailer eager
to send messages out to consumers.
As a result, Seijo Ishii Business posted gross operating revenue of 108,632 million yen (up 5.4% fromprevious fiscal year) and segment profit of 11,240 million yen (up 8.8% from previous fiscal year).
(Entertainment-related Business)
In our Entertainment-related Business undertaken by Lawson Entertainment, Inc., a large number of
events were postponed, cancelled or restricted in terms of the number of admissions in the first half of the
fiscal year as a result of the declaration of states of emergency and quasi-emergency. In the second half,
however, as the states of emergency and quasi-emergency were lifted in October 2021, concerts began to bestaged, which led to a recovery trend. In January 2022, a state of quasi-emergency was issued in response to
the spread of the Omicron variant, adversely affecting our business environment by forcing us to cancel thescheduled sale of Go To Eat coupons and restricting the number of admission tickets for popular live events.
Notwithstanding this situation, the ticket transaction value continued to display a recovery trend as a resultof our concentrated efforts to secure an expanded lineup of concerts and sporting events. We are also
continuing with our efforts to expand ticket transactions for online live performances, a fledgling market,
while striving to further expand sales for our steady e-commerce business by putting our live commerce intofull swing. In our product sales business, a total of 55 stores are in operation nationwide as of February 28,
2022. Stores are making efforts to expand earnings through a range of measures including organizing store
events and selling goods at concert venues.
In the first half of the fiscal year, United Cinemas Co., Ltd., an operator of cinema complexes, had been
affected by the states of emergency and quasi-emergency in applicable regions, such as having to reduce
seating capacity and adopt shorter operating hours, but in the second half, almost all theaters resumed theirusual operating hours from October 2021, although business hours were shortened at cinemas in someregions after a state of quasi-emergency was declared in January 2022. Furthermore, the company has
continued with its efforts to increase the number of visitors, such as by rolling out content-based initiatives.
As of February 28, 2022, 42 cinema complexes nationwide with 387 screens are operating.
As a result, Entertainment-related Business posted gross operating revenue of 62,996 million yen (up 8.8%
from previous fiscal year) and segment profit of 2,275 million yen (segment loss was 297 million yen inprevious fiscal year).
(Financial Services Business)
With respect to our Financial Services Business, we worked to expand our network of financial institution
partners and improve the Lawson Bank ATM service in our foundational ATM business. As of the end of
February 2022, the number of ATMs installed nationwide reached 13,547 (up 89 from previous fiscal year),with each ATM used 48.4 times a day on average. The total number of our financial institution partners
reached 378 nationwide (up 249 from the previous fiscal year) with the addition of shinkin banks in April
2021. As of the end of February 2022, the “smartphone ATM (QR code deposit/withdrawal)”*2 service and6

“Immediate Account Settlement Service,”*3 had five partners and 12 partners (nine financial institutions
and three other service operators), respectively. In addition to the conventional needs to withdraw cash, theuse of our ATMs has been increasing, driven by the “ATM charge service,” where cash can be charged at
an ATM to “au PAY,” “WebMoney Prepaid Card,” or “PayPay” mobile payment apps.
Regarding LAWSON Ponta Plus credit cards issued by Lawson Bank, Inc, we are steadily expanding
credit card membership by rolling out a range of promotional campaigns and strengthening promotional
efforts at stores.
*2 A service where customers can deposit/withdraw cash or take out/repay a credit card loan at an ATM by using a smartphone app
instead of a bank card.
*3 A service that allows customers to top up their mobile payment app from their account with a financial institution by harnessing
the ATM network.

As a result, Financial Services Business posted gross operating revenue of 33,603 million yen (up 6.4%
from previous fiscal year) and segment profit of 2,962 million yen (up 69.0% from previous fiscal year).
(Overseas Business)
With regards to Overseas Business, the Group’s operating companies opened LAWSON stores in the
People’s Republic of China, Thailand, Indonesia, the Philippines, and the United States of America (Hawaii).
In the People’s Republic of China, where business is continuing to expand, the number of LAWSON
stores exceeded 4,000 in September 2021, reaching 4,560 as of the end of February, up 1,216 from the endof the previous fiscal year. In addition to opening new stores through our subsidiaries, we are also launching
stores by concluding mega franchise agreements with local retailers in different cities, as well as area license
agreements—where partner companies serve as headquarters in designated areas and assume overall
operation and development—in efforts to accelerate the expansion of business areas and the number of stores.
Chongqing Lawson, Inc. and Guangdong Lawson, Inc. agreed to acquire 100% of the shares of Sichuan
WOWO Supermarket Chain Management Co., Ltd. in December 2021 and Tianhong Weiwo Convenience
Store (Shenzhen) Co., Ltd. in January 2022, respectively. As a result, we are seeing an expansion of our store
network in China and an increased recognition of Lawson in the country, which has led to rises in the numberof franchised store applicants, franchised store openings, and directly operated stores converting to franchise
stores. We will work to offer our signature high-quality original products including rice and dessert items,
enhance the value of the Lawson brand in China, and increase earnings.
In other regions of the world, although some stores have suspended their operations in response to the
spread of COVID-19, all other stores are carrying out normal operations with rigorous infection prevention
measures in place, sustaining the daily lives of our customers as their most accessible store.

7

[Distribution of LAWSON Brand Stores Overseas by Region]
Country/Region

Number of stores

ChangeNumber of stores(As of February 28,

during fiscal(As of February 28,

2021)

year

2022)

China Shanghai and surrounding area

1,826

523

2,349

341

148

489

327

134

461

215

128

343

China Hubei (Wuhan, etc.)

441

85

526

China Anhui (Hefei, etc.)

106

69

175

China Hunan (Changsha)

65

52

117

China Hainan (Haikou, etc.)

23

77

100

3,344

1,216

4,560

Thailand

140

26

166

Indonesia

68

(3)

65

Philippines

67

2

69

2

-

2

3,621

1,241

4,862

(Shanghai, Zhejiang, Jiangsu)
China Chongqing and surrounding area
(Chongqing, Sichuan)
China Liaoning (Shenyang, Dalian)
China Beijing and surrounding area
(Beijing, Tianjin, Hebei)

China Subtotal

United States of America

HawaiiTotal

As a result, Overseas Business posted gross operating revenue of 80,039 million yen (up 30.5% fromprevious fiscal year) and segment profit of 2,342 million yen (up 189.4% from previous fiscal year).
(Measures to pursue Sustainable Development Goals (SDGs))
With the aim of achieving a sustainable society through Lawson’s business activities based on our
corporate philosophy, “Creating Happiness and Harmony in Our Communities,” we established the SDGs
Committee effective March 1, 2019. We are making Group-wide efforts led by our SDGs Committee to
conduct individual initiatives that solve social issues through our business activities. Furthermore, on March
1, 2021 the position of Chief Sustainability Officer (CSO) was assumed by the president and CEO andrepresentative director to further strengthen our initiatives.
Specifically, we identified issues having significant impacts on the environment, society and economy
across our business activities including our value chains, identified social issues that should be prioritized,
and uphold them as our six material issues (materiality).
Lawson’s “Six Material Issues”
1. Providing safety/security-oriented overwhelmingly high value-added products and services friendly tosociety and the environment
2. Supporting health promotion for all people through products and stores
3. Providing comfortable work environment leading to job satisfaction
4. Supporting women, senior people as well as children’s growth8

5. Coexisting synergistically with communities by serving as part of social infrastructure
6. Sustainable environment preservation activities toward carbon-free society
We are especially making focused efforts on addressing our sixth material issue, “sustainable environment
preservation activities toward carbon-free society,” by setting social and environmental key performanceindicators (KPIs) as Goals for 2030 in three areas: (1) reducing CO2 emissions; (2) reducing food waste; and(3) reducing plastic use (for containers, packaging and shopping bags). Furthermore, toward Lawson’s Vision
2050, we are taking on difficult challenges to achieve high goals so that we can create a carbon-free society
and contribute more to the ideal world that the SDGs aim to realize. To fulfill Lawson’s Vision 2050, we arelooking back on what we have done so far and examining and discussing what we should do now to steadily
proceed with our material issues and KPIs for 2030.

Issues

KPIs for 2030

KPIs for 2050

CO2 emissions per store
Reducing CO2 emissions

Reduce by 50% over 2013
(Target revised upward in

Reduce by 100%

June 2021)

Reducing food waste

Reduce by 50% over 2018

Reduce by 100%

Reduce by 30% over 2017
Reducing plastic use(for containers and packaging)(50% of materials used for(100% of materials used for

Lawson’s original productLawson’s original productcontainers and packaging arecontainers and packaging areeco-friendly)

eco-friendly)

Reducing plastic use

Plastic shopping bags

(Plastic shopping bags)

Reduce by 100%―

To reduce CO2 emissions, we will start using solar-derived renewable energy in the fiscal year ending
February 2023 at approximately 3,600 stores in the Kanto Koshinetsu region and Gifu, Shizuoka, Aichi andMie prefectures in collaboration with Mitsubishi Corporation. This will lead to an annual CO2 emissions
reduction of about 19,000 tons. Moreover, Lawson, Inc. endorsed the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD) in April 2020. To combat worsening climate change issues,
we analyze climate-related risks and opportunities and have been disclosing the results on our official website
since December 2020. We will identify impact on our business strategies, examine measures to take, andendeavor to proactively disclose information.
To reduce food waste, we strive to optimize the number of purchases and offer discounts at stores to sell9

out all stock by utilizing AI, and reduce unsold leftovers by selling special feature items on a reservation basis.
In addition, we also seek to develop more bento box lunches and ready-made dishes with longer shelf lives
and expand our frozen foods lineup, while reducing waste by introducing the Machikado Chubo in-store
kitchen service at more stores.
To reduce plastic use, we have replaced the plastic cups used for iced coffee and café latte offered at“MACHI café” with paper cups. We started using paper containers for our bento box lunches and cooked
noodles, and have adopted thinner plastics and environmentally friendly materials. At about 10 NATURALLAWSON and LAWSON stores, we sell detergents and dried fruit and nuts by weight, and are looking to
expand this sales format. In July 2021, we embarked on a pilot experiment at a store in Yokohama City withthe aim of promoting the recycling of used plastic bottles in partnerships with Kirin Holdings Company,
Limited and Kirin Beverage Company, Limited by using their infrastructure. Furthermore, timed with theenforcement of the Plastic Resource Circulation Act in April 2022, we will start introducing in phases from
April 1 shorter plastic spoons and forks with an opening in the handle, which is expected to reduce plastic byapproximately 67 tons.
Additionally, we implemented the following initiatives during the fiscal year under review in relation to
SDGs.
In the area of education for children, we continued with our scholarship program for children from singleparent families, selecting 400 students to receive scholarships in fiscal 2021. Furthermore, in the second halfof the fiscal year, we offered special in-hospital classes for children at university hospitals in three prefectures.
Since August 2019, Lawson has periodically donated original dessert products and processed foods thatmissed their store delivery deadlines (but were still well within their best-before dates) to the Japan Food
Bank Promotion Group and Kodomo Takushoku Oendan, a charity organization that delivers food to children.
The donated products are delivered to various bodies across Japan, which then provide them to families whoneed food aid, children’s cafeterias, orphanages, facilities for people with disabilities, etc. In fiscal 2021, we
donated a total of some 270,000 items (about 30 tons) of food products, including Lawson’s original items
and national-label products developed exclusively for Lawson.
While working to take protective measures against the spread of COVID-19 at our stores, we have also
conducted various initiatives to support people who are forced to persevere amid difficult situations in their
day-to-day lives. In our efforts to support medical professionals and care managers, we offered acomplimentary s-size MACHI café coffee to each registered member of a website dedicated to medical
professionals and a website dedicated to care managers in May/June and August 2021, respectively. In
December 2021, we presented a gift of some 900 Christmas cakes to students and other people in need ofsupport amid the pandemic, as well as 282 sets of New Year’s osechi meals to 846 medical professionals andchildren requiring support. Furthermore, on December 31, 2021 and January 1, 2022, we sold “Hot Milk” at
65 yen including tax, half the regular price, to raise demand for milk, which had been suffering a delayed
recovery in demand owing to the pandemic and reduced consumption due to schools closing for the winterholiday when no lunches are served. The initiative was extremely popular. We intend to continue providing
support to people who are negatively affected by the spread of COVID-19.

10

(2) Profit and Loss
In terms of operating results for the fiscal year, gross operating revenue increased to 698,371 million yen(up 4.9% from previous fiscal year), operating income totaled 47,096 million yen (up 15.2% from previous
fiscal year), and ordinary income amounted to 47,571 million yen (up 26.5% from previous fiscal year). Profit
attributable to owners of parent was 17,900 million yen (up 106.0% from previous fiscal year).
(3) Overview of Financial Position for the Fiscal Year under Review① Total assets, total liabilities, total net assets analysis
Current assets decreased by 23,184 million yen from the end of the previous fiscal year to 667,627 million
yen, mainly reflecting a decrease of 14,619 million yen in accounts receivable-other and a decrease of 14,121
million yen in cash and deposits and an increase of 4,815 million yen in current assets-other. Non-current
assets decreased by 5,000 million yen from the end of the previous fiscal year to 669,618 million yen, mainlyreflecting a decrease of 8,660 million yen in intangible assets and an increase of 2,531 million yen in
investments and other assets and an increase of 1,128 million yen in property and store equipment.
Consequently, total assets decreased by 28,184 million yen from the end of the previous fiscal year to
1,337,245 million yen.
Current liabilities decreased by 63,063 million yen from the end of the previous fiscal year to 704,691
million yen, mainly reflecting a decrease of 94,300 million yen in deposits received and a decrease of 80,000
million yen in current portion of long-term loans payable, an increase of 68,000 million yen in call money
and an increase of 39,251 million yen in deposits received in banking business. Non-current liabilities
increased by 29,336 million yen from the end of the previous fiscal year to 354,080 million yen, mainlyreflecting an increase of 30,000 million yen in long-term loans payable. Consequently, total liabilities
decreased by 33,726 million yen from the end of the previous fiscal year to 1,058,771 million yen.
Net assets increased by 5,541 million yen from the end of the previous fiscal year to 278,473 million yen,mainly reflecting an increase of 2,800 million yen in retained earnings and an increase of 2,589 million yen
in foreign currency translation adjustments. Consequently, shareholders’ equity ratio was 20.4%, up from
19.6% as of the end of the previous fiscal year.
② Cash flows during fiscal 2021

Cash and cash equivalents at February 28, 2022 decreased by 12,692 million yen from the end of theprevious fiscal year to 388,444 million yen.
Net cash provided by operating activities was 146,644 million yen, a decrease of 81,309 million yen fromthe previous fiscal year, mainly because of the movement in accounts receivable-other, deposits received andcall money for banking business.
Net cash used in investing activities was (51,781) million yen, an increase of 21,798 million yen from theprevious fiscal year, mainly because of an increase in purchase of property and store equipment and purchaseof shares of subsidiaries and associates.
Net cash used in financing activities was (109,516) million yen, a decrease of 31,125 million yen from theprevious fiscal year, mainly because of proceeds from long-term loans payable.

11

(Reference) Trends in cash flow indicators
2019 fiscal year

2020 fiscal year

2021 fiscal year

Shareholders’ equity ratio (%)

20.0

19.6

20.4

Shareholders’ equity ratio on market value basis (%)

42.2

36.5

35.9

Interest-bearing debt/cash flow ratio (years)

2.6

1.9

2.7

Interest coverage ratio (times)

50.6

62.3

42.7

(Note) Shareholders’ equity ratio: Shareholders’ equity/Total assets
Shareholders’ equity ratio on market value basis: Market capitalization/Total assets
Interest-bearing debt/cash flow ratio: Interest-bearing debt/Cash flow provided by operating activities
Interest coverage ratio: Cash flow provided by operating activities/Interest expense
1. All indices are calculated using consolidated financial figures.
2. Market capitalization is calculated by multiply closing share price at the end of fiscal year with the numberof shares outstanding at the end of fiscal year (excluding treasury shares)
3. The figure for net cash provided by operating activities in the consolidated statements of cash flows isused as cash flow provided by operating activities. Interest-bearing debt refers to the sum of all liabilities
in the consolidated balance sheets on which interest is paid. The figure for interest paid in the consolidated
statements of cash flows is used as interest expense.
(4) Future Outlook
Outlook for the next fiscal year (2022 fiscal year ending February 28, 2023)
1H of 2022 fiscal year

2022 fiscal year

Forecast (Millions of yen)

YoY (%)

Forecast (Millions of yen)

YoY (%)

Gross operating revenue

510,000

146.2

1,024,000

146.6

Operating income

27,500103.0

53,000112.5

Ordinary income

26,00093.4

48,500102.0

Profit attributable toowners of parent

13,50077.6

22,000122.9(Note) Future Outlook is based on figures after applying the “Accounting Standard for Revenue Recognition”(ASBJ Statement No. 29, March 31, 2020).

2. Basic Approach to Selection of Accounting Standards
The Group currently prepares consolidated financial statements based on Japanese Generally Accepted
Accounting Principles (J-GAAP), but to provide internationally comparable financial information for capital
market participants, we are preparing to apply voluntarily International Financial Reporting Standards (IFRS).

123. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheet
As of February 28, 2021 and February 28, 2022
Previous fiscal year
As of February 28,
2021
AssetsCurrent assets:
Cash and deposits
Accounts receivable-due from franchised stores
Lease receivables
Merchandise
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets:
Property and store equipment:
Buildings and structures-net
Tools, furniture and fixtures-net
Land
Leased assets-net
Construction in progress
Other-net
Total property and store equipment
Intangible assets:
Software
Goodwill
Trademark right
Other
Total intangible assets
Investments and other assets:
Investment securities
Long-term loans receivable
Guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

13(Millions of yen)
Current fiscal year
As of February 28,
2022

402,584
46,385
16,621
20,657161,062
43,519(20)
690,811

388,463
47,202
15,071
22,128146,443
48,334(17)
667,627

191,977
19,044
8,468
131,779
1,818
14,551
367,640

189,190
22,762
8,507
124,978
4,720
18,609368,768

39,08838,2158,349
752
86,40634,88434,4597,721
680
77,746

27,624
40,621103,030
33,484
16,474(663)
220,571674,618
1,365,430

21,73838,044103,277
34,736
26,066(759)
223,103669,618
1,337,245

Previous fiscal year
As of February 28,
2021
Liabilities
Current liabilities:
Accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable-other
Income taxes payable
Deposits received
Provision for bonuses
Call money
Deposits received for banking business
Other
Total current liabilities
Non-current liabilities:
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for retirement benefits to executive officers
and audit and supervisory board members
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

14(Millions of yen)
Current fiscal year
As of February 28,
2022

127,486
42,320100,000
44,58490,798
4,078
246,110
4,818
40,00052,16815,388
767,754

125,681
47,07220,00045,95590,412
7,368
151,809
4,854
108,000
91,42012,117
704,691130,000
121,491
485

160,000
118,445
449

277

248

16,27835,694
20,516
324,743
1,092,498

17,43836,622
20,875354,080
1,058,771

58,50646,494
158,498(991)
262,50858,50646,495
161,299(973)
265,327

1,782
(207)
3,684
(134)
5,123
333
4,965
272,931
1,365,430

1,585
(69)
6,273
(227)
7,563
368
5,213
278,473
1,337,245

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
For the fiscal years ended February 28, 2021 and February 28, 2022

Gross operating revenue
Net sales
Cost of sales
Gross profit
Operating revenue:
Income from franchised stores
Other operating revenue
Total operating revenue
Operating gross profit
Selling, general and administrative expenses
Operating income
Non-operating income:Interest income
Dividend income
Gain on investments in investment partnerships
Compensation income
Employment adjustment subsidy due to novel
coronavirus disease
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Loss on cancellation of leases
Expense due to system failure
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of investment securities
Total extraordinary income
Extraordinary losses:
Loss on retirement of non-current assets
Impairment loss
Loss on novel coronavirus disease
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

15

Previous fiscal year
From March 1, 2020
to February 28, 2021
666,001
275,945
188,441
87,503(Millions of yen)
Current fiscal year
From March 1, 2021
to February 28, 2022
698,371292,237
199,738
92,498288,480
101,576
390,056
477,559
436,682
40,876

291,802114,331
406,134
498,633
451,537
47,096

730
403
109
490

976
369
1,624
483

793

1,762

2,016
4,544

1,202
6,420

3,678
2,065
828
1,238
7,810
37,610

3,440
1,423
－
1,081
5,944
47,571

6,232
6,232

1,103
1,103

3,213
16,635
3,607
2,158
25,613
18,230
9,197
378
9,576
8,653
(36)
8,689

1,746
16,616701
1,512
20,57628,098
11,226(1,160)10,06518,032
131
17,900Consolidated Statement of Comprehensive Income
For the fiscal years ended February 28, 2021 and February 28, 2022
(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests

16

Previous fiscal year
From March 1, 2020
to February 28, 2021
8,653

Current fiscal year
From March 1, 2021
to February 28, 2022
18,032

285
－
307
799
1,392
10,046

(196)
138
2,730
(92)
2,580
20,613

10,117(71)

20,340272

(3) Consolidated Statement of Changes in Equity
Previous fiscal year ended February 28, 2021 (From March 1, 2020 to February 28, 2021)(Millions of yen)
Capital stock

Capital surplus

58,50644,605

Balance at beginning of current period

Shareholders’ equity
Retained earnings
Treasury shares
165,081

Total shareholders' equity(1,011)

267,181

Changes of items during period
Decrease by merger
Change in ownership interest of parent
due to transactions with non-controllingshareholders
Dividends of surplus

(262)

(262)

1,886

1,886
(15,009)

Profit attributable to owners of parent(15,009)

8,689

8,689

Purchase of treasury shares(1)

Disposal of treasury shares

0

Reversal of revaluation reserve for land
Exercise of subscription rights to shares(Delivery of treasury shares)
Net changes of items other thanshareholders' equity
Total changes of items during period

(1)

0

0
－

3

Balance at end of current period

21

24

－

1,889

(6,582)

20(4,672)58,50646,494

158,498(991)

262,508(Millions of yen)

Accumulated other comprehensive income
Valuation
Revaluationdifference on
reserve foravailable-for-salelandsecurities
Balance at beginning of current
periodChanges of items during period

1,496

(207)

Foreigncurrencytranslation
adjustment
3,341

Total
NonRemeasureme accumulated Subscription controllingrightstosharesother
nts of definedinterests
benefit plans comprehensive
income
(934)

3,695

255

4,214

Decrease by merger
Change in ownership interest ofparent due to transactions with
non-controlling shareholders
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Reversal of revaluation reserve
for landExercise of subscription rights
to shares(Delivery of treasury shares)
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period

Total net
assets275,347

(262)
1,886
(15,009)
8,689
(1)
0
－
24
285

－

343

799

1,428

78

751

2,257

285

－

343

799

1,428

78

751

(2,415)

1,782

(207)

3,684

(134)

5,123

333

4,965

272,93117

Current fiscal year ended February 28, 2022 (From March 1, 2021 to February 28, 2022)(Millions of yen)
Capital stock

Capital surplus

58,50646,494

Balance at beginning of current period

Shareholders’ equity
Retained earnings
Treasury shares
158,498

Total shareholders' equity(991)

262,508

Changes of items during period
Increase by merger
Change in ownership interest of parent
due to transactions with non-controllingshareholders
Dividends of surplus

49

49

0

0
(15,010)

Profit attributable to owners of parent(15,010)

17,90017,900Purchase of treasury shares(0)

Disposal of treasury shares

0

Reversal of revaluation reserve for land
Exercise of subscription rights to shares(Delivery of treasury shares)
Net changes of items other thanshareholders' equity
Total changes of items during period

(0)
0

(138)

(138)

0

Balance at end of current period

18

17

－

0

2,800

17

2,818

58,50646,495

161,299(973)

265,327(Millions of yen)
Accumulated other comprehensive income
Valuation difference
Foreign currency Remeasurements Total accumulated
Revaluationotheron available-for-sale reserve for landtranslationof defined benefit
comprehensive
securities
adjustment
plansincomeBalance at beginning of current
periodChanges of items during period

1,782

(207)

3,684

(134)

5,123

NonSubscription
controllingrights to sharesinterests
333

4,965

Increase by merger

Total net
assets272,93149

Change in ownership interest ofparent due to transactions with
non-controlling shareholders
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares0(15,010)
17,900(0)

Disposal of treasury shares
Reversal of revaluation reserve
for landExercise of subscription rights
to shares(Delivery of treasury shares)
Net changes of items other thanshareholders' equity
Total changes of items during
period

(196)

138

2,589

(92)

2,439

34

248

2,722

(196)

138

2,589

(92)

2,439

34

248

5,541

Balance at end of current period

1,585

(69)

6,273

(227)

7,563

368

5,213

278,473

0
(138)
18

18

(4) Consolidated Statement of Cash Flows
For the fiscal years ended February 28, 2021 and February 28, 2022
Previous fiscal year
From March 1, 2020
to February 28, 2021
Net cash provided by (used in) operating activities:
Profit before income taxes
Depreciation and amortization
Impairment loss
Interest income
Interest expenses
Loss (gain) on sales of investment securities
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in accounts receivable-other
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other
Increase (decrease) in deposits received
Increase (decrease) in net defined benefit liability
Net decrease (increase) in call loans for banking business
Net increase (decrease) in call money for banking business
Other-net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities:
Purchase of investment securities
Proceeds from redemption of securities
Purchase of property and store equipment
Purchase of intangible assets
Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates
Payments of long-term loans receivableCollection of long-term loans receivable
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Purchase of long-term prepaid expenses
Other-net
Net cash provided by (used in) investing activities

19(Millions of yen)
Current fiscal year
From March 1, 2021
to February 28, 2022

18,23080,778
16,635(730)
3,678(6,232)
3,213
992(1,923)(1,952)(4,417)53,01334
10,00021,00051,512
243,829704(3,656)(12,922)
227,954

28,09879,942
16,616(976)
3,440(1,103)
1,746(673)
15,068(3,467)(1,450)(94,328)
1,153－
68,00045,072
157,138
982(3,434)(8,042)
146,644(5,010)10(26,293)(8,471)
7,792(1,733)(3,675)
4,917(11,832)
16,010(380)(1,315)(29,983)(12,001)
10,000(39,038)(7,731)
6,073(10,783)(5,088)
7,507(11,122)
11,904(1,045)(457)(51,781)

Previous fiscal year
From March 1, 2020
to February 28, 2021
Net cash provided by (used in) financing activities:
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations
Proceeds from share issuance to non-controlling shareholders
Payments from changes in ownership interests in subsidiaries that
do not result in change in scope of consolidation
Cash dividends paid
Other-net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from merger withunconsolidated subsidiaries
Cash and cash equivalents at end of period

20(Millions of yen)
Current fiscal year
From March 1, 2021
to February 28, 2022

2,470－
(80,000)(50,700)

4,752
50,000(100,000)(49,233)

2,622－(15,009)(25)(140,642)
224
57,553
343,583(15,010)(24)(109,516)
1,941(12,711)401,136－19

401,136

388,444(5) Notes to Consolidated Financial Statements(Going Concern Assumption)
Not Applicable.
(Accounting Policies for the Preparation of Consolidated Financial Statements)
1. Scope of consolidation(1) Number of consolidated subsidiaries: 20(Domestic)
Lawson urbanworks, Inc.
Lawson Store100, Inc.
SCI, Inc.
SEIJO ISHII CO., LTD.
Lawson Entertainment, Inc.
Lawson HMV Entertainment United Cinemas Holdings, Inc.
United Entertainment Holdings Co., Ltd.
United Cinemas Co., Ltd.
Lawson Bank, Inc.
BestPractice, Inc.
(Foreign)

Lawson (China) Holdings, Inc.
Shanghai Lawson, Inc.
Shanghai Le Song Trading Co., Ltd.
Shang Hai Gong Hui Trading Co., Ltd.
Zhejiang Lawson, Inc.
Chongqing Lawson, Inc.
Dalian Lawson, Inc.
Beijing Lawson, Inc.
BEIJING LUOSONG Co., Ltd.
Saha Lawson Co., Ltd.

(2) Names of nonconsolidated subsidiaries and others(Domestic)
LAWSONWILL, Inc.
Seikaken, Inc.
SEIJO ISHII SYUHAN CO., LTD.
TOKYO EUROPE TRADE CO., LTD.
Lawson Digital Innovation Inc.
(Foreign)

Lawson USA Hawaii, Inc.
Jiangsu Lawson, Inc.
Lawson Philippines, Inc.
LAWSON (TIANJIN) INC.
SLV Retail Company Limited
Shenyang LAWSON Inc.
Guangdong Lawson, Inc.
Chengdu Lawson，Inc.

(Reasons for exclusion from the scope of consolidation)
The above nonconsolidated subsidiaries have been excluded from the scope of consolidation because
they are all small in scale and their total assets, net sales, profit or loss (corresponding to equity interest)
and retained earnings (corresponding to equity interest) and others have no material influence on the
consolidated financial statements.

21

2. Application of the equity method(1) Equity-method associates: 3(Domestic)
Lawson Okinawa, Inc.
Lawson Minamikyushu, Inc.
Lawson Kochi, Inc.
(2) Nonconsolidated subsidiaries and entities excluded from the scope of the equity-method application
Nonconsolidated subsidiaries (LAWSONWILL, Inc., Seikaken, Inc., SEIJO ISHII SYUHAN CO., LTD.,TOKYO EUROPE TRADE CO., LTD., Lawson Digital Innovation Inc., Lawson USA Hawaii, Inc.,
Jiangsu Lawson, Inc., Lawson Philippines, Inc., LAWSON (TIANJIN) INC., SLV Retail Company
Limited and Shenyang LAWSON Inc., Guangdong Lawson, Inc., Chengdu Lawson，Inc.) and entities(Double Culture Partners Co., Ltd., Loyalty Marketing, Inc., Lawson Staff, Inc., TA Platform Corporation,
LTF Co., Ltd., StageAround TOKYO Production Committee, Jiangyin Hualian Guzhitian Food Co., Ltd.,POPLAR Co.,Ltd., New Designed by Tokyo Ltd., Boogie Woogie Entertainment Co., Ltd., TA Platform
Software, and Lawson Farm Chiba and others) were excluded from the scope of the equity-method
application because their profit or loss (corresponding to equity interest) and retained earnings(corresponding to equity interest) of these entities are not significant either individually or in aggregate to
the consolidated financial statements.
3. Fiscal year end of the consolidated subsidiaries
The balance sheet date of Lawson (China) Holdings, Inc., Shanghai Lawson, Inc., Shanghai Le Song
Trading Co., Ltd., Shang Hai Gong Hui Trading Co., Ltd., Zhejiang Lawson, Inc., Chongqing Lawson, Inc.,
Dalian Lawson, Inc., Beijing Lawson, Inc., BEIJING LUOSONG Co., Ltd., and Saha Lawson Co., Ltd. is
December 31. In order to prepare the consolidated financial statements, the Company used these companies’
financial information prepared as of such balance sheet date and significant transactions which occur
between the balance sheet date and the consolidated balance sheet date are adjusted as required forconsolidation.
The balance sheet date of Lawson Bank, Inc. is March 31. In preparing the consolidated financial
statements, the Company used this subsidiary’s provisional settlement of accounts as of the consolidatedbalance sheet date.
The fiscal year end date for the other consolidated subsidiaries corresponds with the consolidated balance
sheet date.
4. Summary of Significant Accounting Policies(1) Valuation basis and method for significant assets① Securities:
Marketable securities and investments in securities:
Available-for-sale securities:
Securities whose market value is readily determinable:
Recorded at market value with net unrealized gains and losses as a separate component of net
assets. The cost of securities sold is determined based on the moving-average method.
Other:
Stated at cost determined by the moving-average method.
② Inventories:
Merchandise:Stated at cost determined mainly by the retail method (the book value in the balance sheet is written
down based on the decline in profitability).
(2) Depreciation method of depreciable significant assets① Property and store equipment (except for leased assets):
Mainly computed by the straight-line method.
The ranges of useful lives are from 10 to 34 years for buildings and structures and from 5 to 8 years
for tools, furniture and fixtures.
② Intangible assets (except for leased assets):
Computed by the straight-line method.
Costs of software for internal use are amortized by the straight-line method over 5 years, which isthe estimated useful life. Furthermore, for right of trademark, amortization is mainly computed using
the straight-line method over 20 years.

22

③ Leased assets:

Leased assets related to finance leases that do not transfer ownership of leased property
The Company applies the straight-line method using the lease term as the useful life and a residual
value of zero.
④ Rights-of-use assets:
Rights-of-use assets of the Company’s foreign consolidated subsidiaries that apply International
Financial Reporting Standard 16 (IFRS 16) “Leases”
The Company applies the straight-line method using the lease term as the useful life and a residual
value of zero.
(3) Accounting standard for significant reserves① Allowance for doubtful accounts:
Allowance for doubtful accounts is provided at the amount of possible losses from uncollectible
receivables based on the actual rate of losses from bad debt for ordinary receivables and on estimatedrecoverability for specific doubtful receivables.
② Provision for bonuses:
Provision for bonuses is provided for payments of employees’ bonuses based on the estimated amounts.
③ Provision for retirement benefits to executive officers and audit & supervisory board members:
Provision for retirement benefits to executive officers of the Company and audit & supervisory board
members of consolidated subsidiaries is recorded under internal regulations.
(4) Accounting method for retirement benefits① Period attributable method of estimated amount of retirement benefits
In calculating retirement benefit obligation, in order to attribute estimated amount of retirement benefits
in the period up to the end of the current fiscal year, it is based on the benefit formula basis.
② Cost treatment method of actuarial difference and prior service cost
Prior service cost is amortized starting the fiscal year incurred mainly on a straight-line basis over acertain period (10 years) within an average remaining service period of employees at the time of theirrecognition.
Actuarial differences are mainly amortized from the following fiscal year on a straight-line basis over acertain period (10 years) within an average remaining service period of employees at the time of theirrecognition.
Certain consolidated subsidiaries apply the simplified method to estimate the amount required forvoluntary resignations at the end of the fiscal year as the retirement benefit liability in order to calculate
net defined benefit liability and retirement benefit expenses.
(5) Significant foreign currency transactions and foreign currency financial statements
All short-term and long-term monetary receivables and payables denominated in foreign currencies aretranslated into Japanese yen at the exchange rates at the consolidated balance sheet date. The foreignexchange gains and losses from translation are recognized in the consolidated statement of income. The
consolidated balance sheet accounts as well as revenue and expense accounts of foreign subsidiaries andaffiliated companies are translated into Japanese yen at the current exchange rate as of the consolidatedbalance sheet date except for shareholders’ equity, which is translated at the historical rate. Differences
arising from such translation are shown as “foreign currency translation adjustments” and “noncontrolling interests,” a separate component of net assets.
(6) Amortization method and period of goodwill
Goodwill is amortized on a straight-line basis over the relevant years, depending on the reason for theoccurrence of goodwill, with a maximum of 20 years.
(7) Cash and cash equivalents in the consolidated statement of cash flows
Cash and cash equivalents in the consolidated statement of cash flows include cash on hand, demand
deposits and short-term investments due within three months of the acquisition date, which are easily
convertible into cash with little risk of value fluctuation.
(8) Other significant items related to the preparation of consolidated financial statements① Accounting for consumption tax:
Consumption tax and local consumption tax are accounted for using the tax exclusion method.
② Adoption of consolidated taxation system:
The Company and certain consolidated subsidiaries in Japan adopt the consolidated taxation system.

23

③ Application of tax effect accounting for transition from consolidated taxation system to group tax sharing
system:The Company and certain domestic consolidated subsidiaries have calculated the amounts of deferred
tax assets and deferred tax liabilities in accordance with tax laws in effect before amendment based on
the treatment of Paragraph 3 of “Practical Solution on the Treatment of Tax Effect Accounting for theTransition from the Consolidated Taxation System to the Group Tax Sharing System” (ASBJ Practical
Issues Task Force No.39, March 31, 2020) instead of applying the provision in Paragraph 44 of“Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No.28, February 16, 2018),
regarding the transition to group tax sharing system established in “Act for Partial Amendment of the
Income Tax Act, etc.” (Act No.8 of 2020), and items for which the non-consolidated taxation system has
been reviewed in the line with the transition to the group tax sharing system.

(Unapplied Accounting Standards, etc.)(The Company and its domestic consolidated subsidiaries)
・“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29; March 31, 2020)
・“Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No.
30; March 26, 2021)(1) Outline
This is a comprehensive accounting standard on revenue recognition. Revenue is recognized by applying
the following five steps:
Step 1: Identify the contracts with a customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the performance obligations in the contract.
Step 5: Recognized revenue when as the entity satisfies a performance obligation.
(2) Scheduled date of application
The Company plans to adopt the accounting standards, etc. from the beginning of the fiscal year ending
February 28, 2023.
(3) Impact of the application of the accounting standards, etc.
The impact was being evaluated at the time of preparation of these consolidated financial statements.
・“Accounting Standard for Fair Value Measurement” (ASBJ Statement No.30; July 4, 2019)
・“Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31;
June 17, 2021)
・“Accounting Standard for Measurement of Inventories” (ASBJ Statement No. 9; July 4, 2019)
・“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10; July 4, 2019)
・“Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No.
19; March 31, 2020)(1) Outline
To improve comparability with international accounting standards, “Accounting Standard for Fair Value
Measurement” and “Implementation Guidance on Accounting Standard for Fair Value Measurement”(hereinafter, “Accounting Standard for Fair Value Measurement, etc.”) have been developed as guidance on
how to measure fair value. “Accounting Standard for Fair Value Measurement, etc.” will be applied indetermining the fair value of the following items.
・Financial instruments set forth in “Accounting Standard for Financial Instruments”
・Inventories held for trading purposes set forth “Accounting Standard for Measurement of Inventories”

24

(2) Scheduled date of application
The Company plans to apply the accounting standards, etc. from the beginning of the fiscal year ending
February 28, 2023.
(3) Impact of the application of the accounting standards, etc.
The impact was still being evaluated at the time of preparation of these consolidated financial statements.
(Changes in Presentation)(Consolidated Balance Sheet)
In the “Current liabilities” section, “Call money” and “Deposits received for banking business” were
included in “Other” in the previous fiscal year. Due to an increase in financial materiality, “Call money”
and “Deposits received for banking business” are now separately presented. To reflect this change inmethod of presentation, the Consolidated Balance Sheet for the previous fiscal year has been reclassified.
As a result, in the “Current liabilities” section, 107,557 million yen that was presented as “Other” in theConsolidated Balance Sheet for the previous fiscal year are now presented as 40,000 million yen of “Callmoney” and 52,168 million yen of “Deposits received for banking business” and 15,388 million yen of“Other.”(Consolidated Statement of Income)In the “Non-operating income” section” section, “Gain on investments in investment partnerships” wasincluded in “Other” in the previous fiscal year. Due to an increase in financial materiality, it is presented
separately in the current fiscal year.
In the “Non-operating income” section, “Share of profit of entities accounted for using equity method”
was presented separately in the previous fiscal year. Due to a decline in financial materiality, it is now
included in “Other.” To reflect these changes in method of presentation, the Consolidated Statement of
Income for the previous fiscal year has been reclassified.
As a result, in the “Non-operating income” section, 332 million yen that was presented as “Share of profit
of entities accounted for using equity method” and 1,794 million yen that was presented as “Other” in theConsolidated Statement of Income for the previous fiscal year are now presented as 109 million yen of“Gain on investments in investment partnerships” and 2,016 million yen of “Other.”(Consolidated Statement of Cash Flows)
In the “Net cash provided by (used in) investing activities” section, “Proceeds from redemption of
securities” was included in “Other” in the previous fiscal year. Due to an increase in financial materiality,
it is presented separately in the current fiscal year. To reflect this change in method of presentation, theConsolidated Statement of Cash Flows for the previous fiscal year has been reclassified.
As a result, in the “Net cash provided by (used in) investing activities” section, (1,305) million yen thatwas presented as “Other” is now presented as 10 million yen of “Proceeds from redemption of securities.”and (1,315) million yen of “Other.”25

(Notes to Consolidated Balance Sheet)*1. Accumulated depreciation of property and store equipment

Accumulated depreciation

Previous fiscal year
As of February 28, 2021
385,891(Millions of yen)
Current fiscal year
As of February 28, 2022
416,609

Previous fiscal year
As of February 28, 2021
19,257
(959)
61
1,908
(302)

(Millions of yen)
Current fiscal year
As of February 28, 2022
18,260(963)
5412,470(132)*2. Investments in associates

Investment securities (stocks)(Investment amount for jointly-controlled companies)
Investment securities (bonds)
Other (other equity investments)(Investment amount for jointly-controlled companies)*3. Revaluation of land used for businessLand used for business was revalued on the basis prescribed by the Law Concerning Revaluation ofLand (Law No. 34, March 31, 1998). The resulting revaluation difference has been included in net assets as“Revaluation reserve for land.”
Revaluation method:
The value of land is determined based on the notified prices adjusted reasonably as stipulated in Article
2, Item 4 of the Ordinance Implementing the Law Concerning Revaluation of Land (Government
Ordinance No. 119, March 31, 1998) and the assessed value as stipulated in Article 2, Item 5 of the same
Ordinance.
Date of revaluation: February 28, 2002
(Millions of yen)Previous fiscal year
Current fiscal year
As of February 28, 2021
As of February 28, 2022
Difference between book value and market value of53
9
the revalued land as of balance sheet date26

*4. Overdraft and loan commitment agreements(1) Lender
Certain of the Company's consolidated subsidiaries providing credit card services also provide ancillary
cash advance services. The following unused lines of credit represent loan commitments as part of these
operations.
(Millions of yen)Previous fiscal year
Current fiscal year
As of February 28, 2021
As of February 28, 2022
Total overdraft limit and loan commitment
Amount of loans executed

9,809
107

22,268460

Unutilized balance
9,702
21,807
The above loan commitment agreements do not necessarily indicate the amount of the loans to be
disbursed, since the loan is subject to a review of the borrower's use of funds, credit status, and otherfactors.
(2) Borrower
The Company and its consolidated subsidiaries have entered into overdraft and loan commitment
agreements to ensure efficient funding of working capital.
The unutilized balances of loans under these overdraft and loan commitment agreements as of the end of
the fiscal year are as follows.
(Millions of yen)Previous fiscal year
Current fiscal year
As of February 28, 2021
As of February 28, 2022
Total overdraft limit and loan commitment
Amount utilized

220,000
14,070320,000
22,062

Unutilized balance

205,930

297,938*5. Guarantee obligations
The Company guarantees the borrowings from financial institutions of the following subsidiary.
(Millions of yen)Previous fiscal year
Current fiscal year
As of February 28, 2021
As of February 28, 2022
Lawson Philippines, Inc.

110

1,163

Lawson USA Hawaii, Inc.

－

92

27

(Notes to Consolidated Statement of Income)*1. Major components of selling, general and administrative expenses are as follows.

Employees' salaries and allowances
Provision for bonuses
Retirement benefit expenses
Rents
Depreciation

Previous fiscal year
From March 1, 2020
to February 28, 2021
58,214
3,801
2,899
128,952
80,643(Millions of yen)
Current fiscal year
From March 1, 2021
to February 28, 2022
59,391
3,441
2,717
130,770
79,822Previous fiscal year
From March 1, 2020
to February 28, 2021
2,394
560
224
32
0
3,213

(Millions of yen)
Current fiscal year
From March 1, 2021
to February 28, 2022
1,043
249
405
46
0
1,746

*2. Breakdown of loss on retirement of non-current assets

Buildings and structures
Tools, furniture and fixtures
Leased assets
Software
OthersTotal*3. Impairment loss
The Company and its consolidated subsidiaries (collectively, the “Group”) identify each store as the smallest
cash generating unit.
The carrying value of asset groups whose profitability has significantly decreased was written down to therecoverable amount, with the difference recognized as impairment loss under extraordinary losses.
Previous fiscal year (From March 1, 2020 to February 28, 2021)(Millions of yen)
Category by use
Stores

Other
Total

Location

AssetsTokyo

Buildings; tools, furniture and fixtures; and others

2,626

Osaka

"

1,264

Others"

11,845

―

Land

76

―

Software

821

―

―

16,635

Category by non-current assets
Buildings and structures
Tools, furniture and fixtures
Land
Leased assets
Software
Other

9,603
563
76
5,500
821
70

Impairment loss

million yen
"
"
"
"
"

The recoverable amount of the asset groups is the higher of net selling price or value in use. The net selling
price of land was calculated based on the value appraised by a real estate appraiser or contract price, and thevalue in use was calculated by discounting estimated future cash flows mainly using a discount rate of 3.0%.

28

Current fiscal year (From March 1, 2021 to February 28, 2022)(Millions of yen)
Category by use

Stores

Other
Total

Location

AssetsImpairment loss

Tokyo

Buildings; tools, furniture and fixtures; and others

2,644

Osaka

"

1,500

Others"12,353

―

Land

50

―

Software67――

16,616

Category by non-current assets
Buildings and structures
Tools, furniture and fixtures
Land
Leased assets
Software
Other

9,812
678
50
5,648
67
359

million yen
"
"
"
"
"

The recoverable amount of the asset groups is the higher of net selling price or value in use. The net selling
price of land was calculated based on the value appraised by a real estate appraiser or contract price, and thevalue in use was calculated by discounting estimated future cash flows mainly using a discount rate of 2.6%.

29

(Notes to Consolidated Statement of Comprehensive Income)* The components of other comprehensive income for the years ended February 28, 2021 and February 28, 2022
were as follows:(Millions of yen)Previous fiscal year
Current fiscal year
From March 1, 2020
From March 1, 2021
to February 28, 2021
to February 28, 2022
Valuation difference on
available-for-sale securities
Gain or loss arising during the
6,630
665
periodReclassification adjustments to(6,219)(948)
profit or loss
Amount before income tax effect
410
(282)
Income tax effect(125)
86
Valuation difference on
285
(196)
available-for-sale securities
Revaluation reserve for land
Gain or loss arising during the－138
periodRevaluation reserve for land－
138
Foreign currency translation
adjustment
Gain or loss arising during the
307
2,730
periodForeign currency translation
307
2,730
adjustment
Remeasurements of defined
benefit plans
Gain or loss arising during the
891
(282)
periodReclassification adjustments to260
149
profit or loss
Amount before income tax
1,152
(133)
effectIncome tax effect(353)
40
Remeasurements of defined799(92)
benefit plans
Total other comprehensive
1,392
2,580
income30

(Notes to Consolidated Statement of Changes in Equity)
Previous fiscal year (From March 1, 2020 to February 28, 2021)
1. Number of shares of outstanding stock and treasury shares
Number of shares at
Increase during
Decrease during
Number of shares atthe beginning of thethe period
the period
the end of the period
period(thousands of shares) (thousands of shares) (thousands of shares)(thousands of shares)
Outstanding stock
Common stock
100,300－－
100,300
Treasury shares
Common stock (*)
237
0
5
232
(*)The increase in treasury shares of 0 thousand shares resulted from purchases of stock of less than one share unit.
The decrease in treasury shares of 5 thousand shares resulted from decreases of 5 thousand shares due tothe exercise of stock option rights and 0 thousand shares due to requests for additional purchases of stockof less than one share unit.
2. Subscription rights to shares and treasury subscription rights to sharesClass and number of shares
Balance at
subject to stock acquisition rights
end of the
Number (shares)
Terms of stock
current
Classificationacquisition rights
periodBeginning
Increase
Decrease End of theClass(Millionsof theduring the during theperiodof yen)periodperiodperiodStock acquisitionrights (ordinary stock
options)

Issuing company(Parent company)

Total

－

－

－

－

－

333

－

－

－

－

－

333

3. Dividend
1) Dividend payment
Date of resolution
The General meetingof shareholders(May 27, 2020)
Directors’ meeting(October 8, 2020)

Class ofsharesDividend payment(millions of yen)

Dividend pershare (yen)Common
stock

7,504

Common
stock

7,505

Record date

Effective date

75.00

February 29, 2020

May 28, 2020

75.00

August 31, 2020

November 10, 2020

2) Dividends for which the record date is in the current fiscal year and the effective date is after the fiscal year-end
Date of resolution

Class ofshares

Source ofdividend

Dividend payment(millions of yen)

Dividend pershare (yen)Record date

Effectivedate

The General
meeting ofshareholders(May 25, 2021)

Commonstock

Retainedearnings

7,505

75.00

February 28,
2021

May 26,2021

31

Current fiscal year (From March 1, 2021 to February 28, 2022)
1. Number of shares of outstanding stock and treasury shares
Number of shares at
Increase during
Decrease during
Number of shares atthe beginning of thethe period
the period
the end of the period
period(thousands of shares) (thousands of shares) (thousands of shares)(thousands of shares)
Outstanding stock
Common stock
100,300－－
100,300
Treasury shares
Common stock (*)
232
0
4
228
(*) The increase in treasury shares of 0 thousand shares resulted from purchases of stock of less than one share unit.
The decrease in treasury shares of 4 thousand shares resulted from decreases of 4 thousand shares due tothe exercise of stock option rights and 0 thousand shares due to requests for additional purchases of stockof less than one share unit.
2. Subscription rights to shares and treasury subscription rights to sharesClass and number of shares
Balance at
subject to stock acquisition rights
end of the
Number (shares)
Terms of stock
current
Classificationacquisition rights
periodBeginning
Increase
Decrease End of theClass(Millionsof theduring the during theperiodof yen)periodperiodperiodStock acquisitionrights (ordinary stock
options)

Issuing company(Parent company)

Total

－

－

－

－

－

368

－

－

－

－

－

368

3. Dividend
1) Dividend payment
Date of resolution
The General meetingof shareholders(May 25, 2021)
Directors’ meeting(October 7, 2021)

Class ofsharesDividend payment(millions of yen)

Dividend pershare (yen)Common
stock

7,505

Common
stock

7,505

Record date

Effective date

75.00

February 28, 2021

May 26, 2021

75.00

August 31, 2021

November 10, 2021

2) Dividends for which the record date is in the current fiscal year and the effective date is after the fiscal year-end
Plan for resolution is as follows.
Date of resolution

Class ofshares

Source ofdividend

Dividend payment(millions of yen)

Dividend pershare (yen)Record date

Effectivedate

The General
meeting ofshareholders(May 25, 2022)

Commonstock

Retainedearnings

7,505

75.00

February 28,
2022

May 26,2022

32

(Notes to Consolidated Statement of Cash Flows)*1. Reconciliation between the year-end balance of cash and cash equivalents and cash and deposits in the
consolidated balance sheet(Millions of yen)Previous fiscal year
Current fiscal year
From March 1, 2020
From March 1, 2021
to February 28, 2021
to February 28, 2022
Cash and deposits
402,584
388,463
Time deposits for which the deposit period(1,447)(18)
exceeds three months
Cash and cash equivalents
401,136
388,444
2. Description of significant non-cash transactions
1) Assets and liabilities related to finance lease transactions are as follows.
(Millions of yen)Previous fiscal year
From March 1, 2020
to February 28, 2021

Current fiscal year
From March 1, 2021
to February 28, 2022

Assets and liabilities related to finance lease
31,841
42,512transactions(*)The Company’s foreign consolidated subsidiaries apply International Financial Reporting Standard 16(IFRS 16) “Leases” and the lease transactions concluded by those subsidiaries are included in thedescription above of the amount of assets and liabilities related to finance lease transactions.

2) Significant asset retirement obligations are as follows.
(Millions of yen)Previous fiscal year
From March 1, 2020
to February 28, 2021

Current fiscal year
From March 1, 2021
to February 28, 2022

916

1,451

Significant asset retirement obligations

33

(Segment Information)
1. Outline of reportable segments
Method to determine reportable segments
The Company’s financial information is provided separately by reportable segment and is subject to regularreview by the board of directors with regard to the allocation of managerial resources and performance
evaluation.
The Group operates primary businesses Domestic Convenience Store Business, Seijo Ishii Business,
Entertainment-related Business, Financial Services Business and Overseas Business while incorporating otherrelated businesses.
Therefore, the Group has made the Domestic Convenience Store Business, Seijo Ishii Business,
Entertainment-related Business, Financial Services Business and Overseas Business units its main reportablesegments, based on consideration of financial characteristics and the nature of the services provided.
Regarding Domestic Convenience Store Business, Lawson, Inc. operates a franchise system as well as
undertaking the direct management of stores in Japan as the parent company of LAWSON, NATURALLAWSON, and LAWSON STORE100. Lawson urbanworks, Inc. undertakes the direct management of
LAWSON stores mainly in Tokyo and Chiba prefectures. Lawson Store100, Inc. undertakes the direct
management of LAWSON STORE100 stores. SCI, Inc., a functional subsidiary which comprehensively
manages the process from procurement to sale, aims to improve the efficiency of the entire process.
Regarding Seijo Ishii Business, SEIJO ISHII CO., LTD. operates SEIJO ISHII supermarkets.
Regarding Entertainment-related Business, Lawson Entertainment, Inc. conducts the management and salesof concert tickets at LAWSON stores and others, music and video software products at HMV stores and others.
In addition, United Cinemas Co., Ltd. operates multiplex movie theatres.
Regarding Financial Services Business, Lawson Bank, Inc. carries out a banking business.
Regarding Overseas Business, the Group’s operating companies opened LAWSON stores in the People’s
Republic of China and Thailand.
2. Computation method of the amount of net sales, profit or loss, assets and liabilities, and other items byreportable segment
The segment accounting policies are the same as those described in the “Accounting Policies for the
Preparation of Consolidated Financial Statements.” Segment profit is based on operating income. Intersegment
revenue and transfers are based on market value.

34

3. Information on net sales, and profit or loss by reportable segment
Previous fiscal year (From March 1, 2020 to February 28, 2021)(Millions of yen)
Reportable segment
Others(Note 1)

Adjustments(Note 2)

Total
(Note 3)

666,001－

666,001207

10,586(10,586)－

61,356

210

676,588(10,586)

666,001

1,753

809

(456)

40,876－40,87653,785450,973

56,703508

1,516,526(151,095)

1,365,430

1,975

2,301

6,974

7,641

－

76,606－76,606

1,437

501

－

53

－

4,171

－

4,171

4,942

－

－

－

－

－

4,942

－

4,942

25,827

1,542

885

2,456

4,053

－

34,764－34,764

Domestic
Convenience
Store
Business

Seijo Ishii
Business

Entertainmentrelated Business

Financial
Services
Business

Overseas
Business

416,436

103,037

56,592

28,57561,356

2

6,064

－

1,317

2,997

－

Total

422,501

103,037

57,90931,573

Segment profit

28,73910,329(297)

Segment assets

881,172

73,382

57,712
2,179

Gross operating
revenue
Sales toexternalcustomers
Internal sales
or transfers
betweensegments

Total

Other
Depreciation
Amortizationof goodwill
Investments inassociates
Increase in
non-current
assets(Notes)1. The business segments within the “Others” category that do not fall under the main reportable segments,
include Consulting Business.
2. Adjustments to segment assets are due to the elimination of intra-segment transactions.
3. Segment profit (loss) corresponds to consolidated operating income.

35

Current fiscal year (From March 1, 2021 to February 28, 2022)(Millions of yen)
Reportable segment
Others(Note 1)

Adjustments(Note 2)

Total
(Note 3)

698,371－

698,371630

12,101(12,101)－

80,039633

710,472(12,101)

698,371

2,962

2,342

(121)

47,096－47,09652,315

407,479

83,641402

1,452,861(115,615)

1,337,245

2,009

1,181

7,094

9,642

－

76,113－

76,113

1,437

501

－

62

－

3,829

－

3,829

4,728

－

－

－

－

－

4,728

－

4,728

34,352

3,773

868

1,112

6,662

－

46,769－46,769Domestic
Convenience
Store
Business

Seijo Ishii
Business

Entertainmentrelated Business

Financial
Services
Business

Overseas
Business

417,527

108,632

61,641

30,52680,039

3

7,039

－

1,354

3,077

－

Total

424,567

108,632

62,99633,603

Segment profit

28,396

11,2402,275

Segment assets

837,123

71,89856,183
1,827

Gross operating
revenue
Sales toexternalcustomers
Internal sales
or transfers
betweensegments

Total

Other
Depreciation
Amortizationof goodwill
Investments inassociates
Increase in
non-current
assets(Notes)1. The business segments within the “Others” category that do not fall under the main reportable segments,
include Consulting Business.
2. Adjustments to segment assets are due to the elimination of intra-segment transactions.
3. Segment profit (loss) corresponds to consolidated operating income.

36

(Related information)
Previous fiscal year (From March 1, 2020 to February 28, 2021)
1. Information by product and service
Since similar information is disclosed in segment information, this information is omitted.
2. Information by geographical area
(1) Net sales
Since sales to external customers in Japan exceed 90% of net sales on the consolidated statement ofincome, this information is omitted.
(2) Property and store equipment
Since property and store equipment in Japan exceed 90% of property and store equipment on the
consolidated balance sheet, this information is omitted.
3. Information by major customer
Information about major customers has been omitted since there are no external customers who constituted
more than 10% of net sales on the consolidated statement of income.
Current fiscal year (From March 1, 2021 to February 28, 2022)
1. Information by product and service
Since similar information is disclosed in the segment information, this information is omitted.
2. Information by geographical area
(1) Net sales(Millions of yen)
Japan

China

OthersTotal

618,331

72,406

7,633

698,371(2) Property and store equipment
Since property and store equipment in Japan exceed 90% of property and store equipment on the
consolidated balance sheet, this information is omitted.
3. Information by major customer
Information about major customers has been omitted since there are no external customers who constituted
more than 10% of net sales on the consolidated statement of income.

37

(Information on impairment loss on non-current assets by reportable segment)
Previous fiscal year (From March 1, 2020 to February 28, 2021)
The Group identifies each store as the smallest cash generating unit.
Regarding asset groups whose profitability from operating activities has continuously been negative, the bookvalue of such assets has been written down to the recoverable amount, with the difference recorded as
impairment loss under extraordinary losses.
The amount of impairment loss recorded for each reportable segment is as follows.
(Millions of yen)
Reportable segment

Impairment
loss

OthersDomestic
Convenience
Store
Business

Seijo
Ishii
Business

Entertain
mentrelated
Business

Financial
Services
Business

Overseas
Business

16,206

196

142

－

89

－

Total

16,635Adjustments

－

Total

16,635Current fiscal year (From March 1, 2021 to February 28, 2022)
The Group identifies each store as the smallest cash generating unit.
Regarding asset groups whose profitability from operating activities has continuously been negative, the bookvalue of such assets has been written down to the recoverable amount, with the difference recorded as
impairment loss under extraordinary losses.
The amount of impairment loss recorded for each reportable segment is as follows.
(Millions of yen)
Reportable segment

Impairment
loss

OthersDomestic
Convenience
Store
Business

Seijo
Ishii
Business

Entertain
mentrelated
Business

Financial
Services
Business

Overseas
Business

15,774

16

417

－

407

－

Total

16,616

Adjustments

－

Total

16,616(Information on amortization of goodwill and amortized balance by reportable segment)
Previous fiscal year (From March 1, 2020 to February 28, 2021)(Millions of yen)
Reportable segment

Balance at
end of fiscal
year

OthersDomestic
Convenience
Store
Business

Seijo
Ishii
Business

Entertain
mentrelated
Business

Financial
Services
Business

Overseas
Business

11,475

19,521

6,683

－

534

－

Total

38,215Adjustments

－

Total

38,215

Note: Regarding amortization of goodwill, this information is omitted since similar information is disclosed insegment information.

38

Current fiscal year (From March 1, 2021 to February 28, 2022)(Millions of yen)
Reportable segment

Balance at
end of fiscal
year

OthersDomestic
Convenience
Store
Business

Seijo
Ishii
Business

Entertain
mentrelated
Business

Financial
Services
Business

Overseas
Business

9,647

18,084

6,181

－

546

－

Total

34,459Adjustments

－

Total

34,459Note: Regarding amortization of goodwill, this information is omitted since similar information is disclosed insegment information.
(Information on gain on negative goodwill by reportable segment)
Previous fiscal year (From March 1, 2020 to February 28, 2021)
Not applicable.
Current fiscal year (From March 1, 2021 to February 28, 2022)
Not applicable.

39

(Per Share Information)
Previous fiscal year
From March 1, 2020 toFebruary 28, 2021

Current fiscal year
From March 1, 2021 to
February 28, 2022

2,674.53 yen

2,726.97 yen

Profit per share

86.84 yen

178.87 yen

Diluted profit per share

86.78 yen

178.71 yen

Net assets per share

Note: The basis for the calculation of profit per share and diluted profit per share is as follows:
Previous fiscal year
From March 1, 2020 toFebruary 28, 2021

Item

Current fiscal year
From March 1, 2021 to
February 28, 2022

Profit per share
Profit attributable to owners of parent (millions ofyen)Amount not attributable to common shareholders(millions of yen)

8,689

17,900－－

Profit attributable to common stock (millions of yen)

8,689

17,900

Average number of common stock during the fiscal
year (thousands of shares)

100,065

100,070

－

－

69

88

(69)

(88)

－

－

Diluted profit per share
Profit attributable to owners of parent adjustment(millions of yen)
Increase in number of outstanding common shares(thousands of shares)(Subscription rights to shares) (thousands of shares)
Summary of issuable shares not included in thecomputation of diluted profit per share, since thesesecurities are not dilutive(Significant Subsequent Events)
Not applicable.

40