Flash Report on the Consolidated Financial Results
for the Fiscal Year Ended February 28, 2023
April 13, 2023
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 24, 2023
Scheduled date for submission of annual securities report: May 25, 2023
Scheduled date for payment of dividend: May 25, 2023
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 2022 fiscal year (from March 1, 2022 to February 28, 2023)(1) Consolidated operating results
Note: Percentages represent increases (decreases) compared with the previous fiscal year.

For the fiscal year ended
February 28, 2023
February 28, 2022
Note: Comprehensive income:For the fiscal year ended
February 28, 2023
February 28, 2022

Gross operating
revenue

Operating income

Ordinary income

Millionsof yen988,621698,371

Millionsof yen55,05647,096

Millionsof yen53,45347,571

%
41.6
4.9

%
16.9
15.2

Fiscal year ended February 28, 2023
Fiscal year ended February 28, 2022

%
12.4
26.5

Profitattributable toowners of parent
Millions%of yen24,68937.917,900106.0

27,498 million yen
20,613 million yen

Profit per
share

Dilutedprofit per
share

Return on
equityRatio of ordinary
income to total
assetsYen
246.70178.87

Yen
246.49178.71

%
8.9
6.6

%
4.0
3.5

Reference: Share of profit of entities accounted for using equity method:
Fiscal year ended February 28, 2023
Fiscal year ended February 28, 2022

33.4 %
105.2 %

Ratio ofoperating income togross operating
revenue%
5.6
6.7

302 million yen
50 million yen

Note: “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29, March 31, 2020) and otherstandards are applied from the beginning of the first quarter of the fiscal year ended February 28, 2023.

(2) Consolidated financial position

Millions of yen

Shareholders’equity ratio%

Net assets per
share
Yen

1,366,166

287,09920.6

2,810.33

1,337,245

278,47320.4

2,726.97

Total assets

Net assets

Millions of yen

February 28, 2023
February 28, 2022

As ofReference: Shareholders’ equity:

As of February 28, 2023
As of February 28, 2022

281,249 million yen
272,891 million yen

(3) Consolidated cash flows
Net cash providedby (used in)operating activities
For the fiscal year ended
Millions of yen
February 28, 2023
176,045
February 28, 2022
146,644

Net cash providedby (used in)investing activities
Millions of yen(45,626)(51,781)

Net cash providedby (used in)financing activities
Millions of yen(124,028)(109,516)

Cash and cash
equivalents at endof period
Millions of yen
396,958
388,444

2. Dividends
Annual dividends per share
1Q

1H

3Q

Year-end

Total

Yen

Yen

Yen

Yen

Yen

2021 fiscal year

－

75.00

－

75.00

2022 fiscal year
2023 fiscal year
(forecast)

－

75.00

－

－

100.00－Total
dividends
for the year

Payoutratio

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

83.9

5.6

75.00

150.0015,01160.8

5.4

100.00200.0069.0

3. Forecast of consolidated operating results for 2023 fiscal year (Under IFRS)(from March 1, 2023 to February 29, 2024)
Basic earnings per
share
Millions of yen%
Yen
1H of 2023 fiscal year
17,500－174.862023 fiscal year
29,000－289.77
Note: Since the Group has decided to voluntarily apply International Financial Reporting Standards (IFRS) forthe consolidated financial statements in its Annual Securities Report effective from the fiscal year ended
February 2023, “Forecast of consolidated operating results for 2023 fiscal year” is based on figures after
applying “IFRS,” and the percentage changes from the results of the fiscal year ended February 28, 2023
are not provided.
Profit attributable to owners of parent

Furthermore, financial forecasts for the fiscal year ending February 29, 2024 other than the Profit
attributable to owners of parent based on “IFRS” will be provided in the flash report(Under IFRS)
scheduled to be issued on May 25, 2023.
4. Notes(1) Change in significant subsidiaries during the fiscal year (Changes in certain specified subsidiaries resulting
in changes in scope of consolidation): Yes
Added: Yes
Lawson Philippines, Inc.

Excluded: None

(2) Changes in accounting policies, changes in accounting estimates or restatements
1. Changes in accounting policies associated with revision in accounting standards: Yes
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, 2023:
100,300,000
As of February 28, 2022:
2. Number of treasury shares at the end of year
As of February 28, 2023:
222,962

As of February 28, 2022:

100,300,000

228,807

3. Average number of shares during the year
As of February 28, 2023:
100,076,025

As of February 28, 2022:

100,070,561

Reference: Non-consolidated operating results for 2022 fiscal year (from March 1, 2022 to February 28, 2023)
Non-consolidated operating results (cumulative)
Note: Percentages represent increases (decreases) compared with the previous fiscal year.
Gross operating
revenue
For the fiscal year ended
February 28, 2023
February 28, 2022

Millionsof yen357,571355,102%
0.7
0.1

OperatingincomeMillionsof yen35,18825,870

%
36.0
(1.1)

Ordinary income
Millionsof yen40,61834,278%18.5
1.7

Profitattributable toowners of parent
Millions%of yen22,595
67.7
13,470(15.3)

Note: The Flash Report on the Consolidated Financial Results is not subject to audit.
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 13.

Contents

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

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

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

12(3) Overview of Financial Position for the Fiscal Year under Review ................................................

12(4) Future Outlook ...............................................................................................................................

13

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

14

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

15(1) Consolidated Balance Sheet ...........................................................................................................

15(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ........

17

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

17

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

18(3) Consolidated Statement of Changes in Equity ...............................................................................

19(4) Consolidated Statement of Cash Flows ..........................................................................................

21(5) Notes to Consolidated Financial Statements ..................................................................................

23(Going Concern Assumption).........................................................................................................

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

23(Changes in Accounting Policies)...........................................................................................................................

27(Changes in Presentation) ...............................................................................................................

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

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

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

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

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

36(Segment Information) ...................................................................................................................

37(Per Share Information) ..................................................................................................................

43(Significant Subsequent Events) .....................................................................................................

43

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 2022 ended February 28, 2023, 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 foundation, we renovated our stores and revamped our productlineups in Domestic Convenience Store Business in response to changes in the business environment, and thewhole Lawson Group endeavored to resolve medium- to long-term issues for sustainable growth, acquire newrevenue opportunities and foster job satisfaction. Fiscal 2022 was a year in which we took concrete actions.
Upholding a strategic concept of focusing on community, individual customers, and individual stores, we
introduced an area company system in the Hokkaido and Kinki regions ahead of other regions. Under the new
system, the roles and scope of discretion assigned to the headquarters and areas were reviewed, and greater
authority and discretion were delegated to the respective areas so as to expedite decision-making and speed up
the hypothesis/verification cycle.
As a result, for fiscal 2022 on a consolidated basis, gross operating revenue increased to 988,621 million
yen (up 41.6% from previous fiscal year), operating income increased to 55,056 million yen (up 16.9% fromprevious fiscal year) and ordinary income increased to 53,453 million yen (up 12.4% from previous fiscal year).
Profit attributable to owners of parent was 24,689 million yen (up 37.9% from previous fiscal year).
The Company has adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) and other standards from the beginning of the fiscal year ended February 28, 2023. Therefore,
year-on-year comparative figures for the fiscal year represent amounts based on the previously adopted
accounting policies. For information on the changes in relation to the application of the new accounting
standards, please refer to “3. Consolidated Financial Statements and Main Notes (5) Notes to Consolidated
Financial Statements (Changes in Accounting Policies).”
We also focused on improving our group-wide internal control system and addressing operating risks basedon the 2022 Basic Policy for Improvement of Internal Control Systems. We will continue promoting internal
control going forward.
Operating results by business segment were as follows.

(Domestic Convenience Store Business)
During the fiscal year under review, the state of quasi-emergency declaration was lifted in March 2022,
there have been repeated waves of new COVID-19 cases during the fiscal year under review, but an overallrising trend was seen in the movement of people.
Amid such drastic shifts in the business landscape, Lawson has been proceeding with store renovations
considering the characteristics/situation of each store, helping them expand their merchandise assortment offrozen foods and other daily necessities to adapt to changes in customers’ lifestyles and better address customer
needs. By the end of fiscal year 2022, we had completed the renovation of some 2,985 stores, and the total

2

number of stores renovated since fiscal 2021 reached 7,290. Installation of the Machikado Chubo in-store kitchen
service at stores also progressed, with 9,191 stores equipped with the service as of the end of fiscal year 2022. In
addition, we implemented a full-scale introduction of MUJI products at LAWSON stores in May 2022, with a
total of 9,621 stores including those in the previous fiscal year offering the merchandise as of the end of fiscal
year 2022.
In store operations, as we work our way toward 2025, our 50th anniversary year, we launched the HAPPYLAWSON PROJECT! in June 2022 with the aim of creating “new hubs of refreshment in every community,” andpromoted measures to fulfill the three promises of our business policy—“Superior taste,” “Human kindness,” and“Environmental (Machi) friendliness”—in an effort to operate LAWSON stores endorsed by all our customers.
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. Furthermore, we are continuing with our environmentallyfriendly measures such as reducing food loss, plastic usage, and CO2 emissions.
[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 items withhigh demand; and (3) keeping our stores and communities clean. In our efforts to respond to customer needs andincrease sales, we also focused on expanding our merchandise assortment to respond to changes in customer
lifestyles and values. Furthermore, we kept up our initiatives to increase the profitability of franchise stores,
including helping them streamline their store operation and control costs associated with food waste and utility
expenses.

[Merchandising and Service Strategies]
Sales continued to surge in frozen foods, fast-food counter items and products offered by the Machikado Chubo
in-store kitchen service, whose assortments we have been endeavoring to expand with the aim of supporting thedaily lives of customers with store renovations. In the frozen food range, sales were strong for ingredients anddeli items that fulfill customers’ pantry needs as well as for groundbreaking items such as frozen desserts. In the
fast-food counter range, “Kara-age-kun” chicken nuggets in new flavors, their “Sauce-topped” series, and “Protein
Chicken” for protein lovers enjoyed robust sales. With regard to products offered by the Machikado Chubo, we
saw strong performance for regular items such as the “Mixed-seafood Tempura Rice Bowl” as well as deli items
and box lunch items in which rice is packed separately launched after October 2022 .
Furthermore, we strengthened our merchandise assortment of regular products and rolled out sales promotional
measures, which resulted in the strong performance of onigiri rice balls and the “Korega BENTO” box lunch
series in the rice range and deli items in the daily food range. In addition, new dessert products such as “NAMACUSTARD CREAM PUFF” and “Rich Canelé” also contributed to sales. MUJI cosmetics and baked sweets,
which we are currently in the process of introducing, recorded strong sales.
In food delivery service, the combined number of stores listed on 4 food delivery services such as Uber Eats,reached 3,558 in 46 prefectures as of February 28, 2023. In addition, Uber Eats delivers over-the-counter (OTC)
drugs sold at 91 LAWSON stores in 17 prefectures.

3

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

Current fiscal year

From March 1, 2021

From March 1, 2022

to February 28, 2022

to February 28, 2023

Sales

Percentage

Sales

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

1,190,886

53.9

1,229,474

53.5

103.2

Fast foods

480,260

21.7

517,272

22.5

107.7

Daily delivered foods

343,668

15.5

352,081

15.3

102.4

Nonfood products

197,1668.9

200,690

8.7

101.8

2,211,981

100.0

2,299,518

100.0

104.0

Fiscal year

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 228 stores. Meanwhile, we closed a total of 253. As of the end of
February 2023, the total number of domestic stores was 14,631 *1.
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 healthcareoriented LAWSON stores that offer over-the-counter pharmaceuticals and prescription drugs, as well as a wider
assortment of cosmetics and daily necessities than conventional LAWSON stores. The number of stores
offering non-prescription drugs has reached 298 stores (includes 51 pharmacy LAWSON stores equipped withdrug-dispensing pharmacies) as of the end of February 2023. Moreover, the number of stores with nursing careconsultation desks for seniors has reached 20 as of the end of February 2023. Furthermore, we have also been
expanding our chain of “in-hospital LAWSON stores,” which feature strengthened focus on medical, sanitaryand nursing supplies in addition to merchandise and services offered at standard convenience stores. The
number of such stores has reached 345 as of the end of February 2023. Building on our expertise developed
through operation of in-hospital LAWSON stores, we will continue to support the lives of all people interactingwith hospitals.
Our NATURAL LAWSON stores, which are popular among customers for supporting their beauty, health,and comfortable lifestyles, offer an exclusive selection of finely picked items of value, including food madewith healthy 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 and daily
necessities, supporting customers’ daily dietary lives by helping them plan their meals. The stores are visitedby customers of all ages including children and the elderly, and particularly single people and homemakers. Asof the end of February 2023, we operate 131 NATURAL LAWSON stores and 661 LAWSON STORE100
stores.
*1 The numbers of store openings and closings and total number of stores in Japan include stores operatedby Lawson, Inc. and three equity-method affiliates, Lawson Kochi, Inc., Lawson Minamikyushu, Inc. and4

Lawson Okinawa, Inc.
[Change in the Total Number of Domestic Stores]
Total stores as ofFebruary 28, 2022
LAWSON

Change during
fiscal year

Total stores as ofFebruary 28, 2023

13,851(12)

13,839NATURAL LAWSON

136

(5)

131

LAWSON STORE100

669

(8)

661

14,656(25)

14,631

Total[Number of LAWSON stores by prefecture (As of February 28, 2023)]
Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Numberof stores

Hokkaido679

Ibaraki

215

Kyoto

328

Ehime

216

Aomori

277

Tokyo

1,673

Shiga

153

Tokushima

137

Akita

179

Kanagawa

1,063

Nara

134

Kochi

138

Iwate

180

Shizuoka

276

Wakayama

152

Fukuoka524

Miyagi257

Yamanashi

135

Osaka

1,193

Saga

76

Yamagata

109

Nagano

167

Hyogo

699

Nagasaki

122

Fukushima

169

Aichi

717

Okayama

241

Oita

201

Niigata

225

Gifu

178

Hiroshima

299

Kumamoto

163

Tochigi

198

Mie

135

Yamaguchi

127

Miyazaki

110

Gunma

243

Ishikawa

102

Tottori137

Kagoshima

200

Saitama694

Toyama176

Shimane

141

259

Chiba

596

Fukui

105

Kagawa133

Okinawa
Total(domestic)

14,631(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 691,363 million yen (up62.8% from previous fiscal year) and segment profit of 39,001 million yen (up 37.3% from previous fiscal year).

(Seijo Ishii Business)
Seijo Ishii Co., Ltd provides customers with well-selected, and highly original 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 Co., Ltd stores reached 175 as of the end of February 2023. In the first half of the
fiscal year, sales were slow for perishable food and grocery items including fruit and vegetables, meat and fish,
and confectionery, especially at street-side stores. This was attributable to the high relative basis of comparison
resulting from the spike in demand same period of last year from customers staying at home during the COVID19 pandemic. In the second half of the fiscal year, however, dishes produced in-house at Seijo Ishii’s central

5kitchen recorded steady sales, driven by promotional projects and reinforced publicity activities.
Furthermore, in July 2022 we started operating a new central kitchen, doubling our production capacity. By
harnessing the expanded capacity, we are stepping up our efforts to develop new items in-house and to increase
the proportion of items produced in-house. In addition, on December 16, 2022, due to a comprehensive
consideration of trends in the stock market and other factors, Seijo Ishii Co., Ltd withdrew its listing application
filed with the Tokyo Stock Exchange on September 9, 2022. We will continue striving to elevate the brandpower 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 109,541 million yen (up 0.8% fromprevious fiscal year) and segment profit of 11,189 million yen (down 0.5% from previous fiscal year).

(Entertainment-related Business)
With respect to our ticketing business in our Entertainment-related Business undertaken by Lawson
Entertainment, Inc., concerts and other events were resumed in force in an environment in which restrictions
on movement were lifted for the first time in three years. Under such circumstances, we focused our efforts on
securing an expanded lineup of events in each genre with the aim of capturing the increased demand, which
resulted in our ticket transaction value for the full fiscal year exceeding the pre-pandemic level recorded infiscal 2019. Furthermore, sales for our product sales business also increased year on year at HMV music/video
software stores and others. Meanwhile, demand from stay-at-home customers slowed in our e-commercebusiness, which resulted in decreased sales, but we are working to expand the scope of merchandise we handle
to include entertainment and cosmetics goods. The number of stores has reached 55 as of February 28, 2023,
including HMV stores, HMV&BOOKS, which markets books, CDs and DVDs, and HMV record shop storesspecializing in analog records.
During the fiscal year under review, United Cinemas Co., Ltd., an operator of cinema complexes, again
attracted more moviegoers than in the same period of the previous fiscal year. Sales increased as a result of
measures taken to attract customers, such as distributing discount coupons to members, and strengthening
digital advertising. As of February 28, 2023, 44 cinema complexes nationwide with 399 screens are operating.

As a result, Entertainment-related Business posted gross operating revenue of 72,167 million yen (up 14.6%
from previous fiscal year) and segment profit of 3,963 million yen (up 74.2% from previous fiscal year).
(Financial Services Business)
With respect to our Financial Services Business, we endeavored to offer an expanded range of new services
through Lawson Bank, Inc.’s ATMs and ATM settlement network. As of the end of February 2023, the numberof ATMs installed nationwide reached 13,519, with each ATM used 52.6 times a day on average. The total
number of our financial institution partners reached 384 nationwide. We now have seven partners for the“smartphone ATM (QR code deposit/withdrawal)”*2 service, 23 for the “Immediate Account Settlement
Service”*3 (18 financial institutions and five other service operators), and seven for international money transfer
cards. In addition to conventional demand for cash deposit and withdrawal services, charging to cashless
payment services has contributed to the increased use of ATMs, etc.

6

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 byusing a smartphone app instead of a bank card. “smartphone ATM” is a registered trademark of Seven Bank,
Ltd.
*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 34,486 million yen (up 2.6% fromprevious fiscal year) and segment profit of 3,882 million yen (up 31.1% 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).
The number of LAWSON stores in the People’s Republic of China, reached 5,620 as of the end of February
2023, up 1,060 stores from the end of 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 andassume overall operation and development—in efforts to accelerate the expansion of business areas and thenumber of stores. In July 2022, the number of stores exceeded 5,000, a milestone first for a Japanese convenience
store chain. Due to the spread of COVID-19, large-scale movement restrictions were imposed across China in andafter April 2022, and about half of the stores in the eastern part of the country suspended their operations due tothe lockdown across Shanghai. Almost all stores were reopened after the lockdown was lifted in June 2022, butboth government-imposed and self-imposed restrictions on movement continued intermittently in different
regions. After China’s zero COVID policy was eased in early December 2022, the number of new cases among
store staff increased, forcing stores to suspend their operations or operate with shorter hours. Thus, the businessenvironment remained extremely challenging throughout the year. Meanwhile, the movement of people has been
showing a phased recovery starting with cities where infection numbers have peaked, which has resulted in a
decline in the number of stores suspending their operations or operating with shorter hours and a recovery trend
in daily sales. 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 by strengthening our delivery business.
Furthermore, from fiscal year 2022, Chengdu Lawson, Inc. has been included in the scope of consolidation.
With regard to regions outside China, stores that had been suspending their operations or operating with shorter
hours have resumed normal operations and are gradually recovering from the impact of COVID-19 in almost all
stores. While making preparations to accelerate the pace of new store openings, we will continue to operate ourstores to sustain the daily lives of our customers and strive to further expand our earnings. In addition, from fiscal
year 2022, Lawson Philippines, Inc. has been included in the scope of consolidation.

7

[Distribution of LAWSON Brand Stores Overseas by Region]
Number of stores

Country/Region
China
China
China
China
China

(As of February 28,
2022)

Shanghai and surrounding area
(Shanghai, Zhejiang, Jiangsu)
Chongqing and surrounding area
(Chongqing, Sichuan）
Liaoning(including Shenyang, Dalian)Beijing and surrounding area
(Beijing, Tianjin, Hebei)
Guangdong and Fujian(including Shenzhen, Xiamen)

Changeduring fiscal
year

Number of stores(As of February 28,
2023)

2,349

134

2,483

489

309

798

461

125

586

343

89

432

-

174

174

China

Hubei (including Wuhan)

526

91

617

China

Anhui (including Hefei)

175

56

231

China

Hunan (including Changsha)

117

43

160

China

Hainan (including Haikou)

100

39

139

China

Subtotal

4,560

1,060

5,620

Thailand

166

15

181

Indonesia

65

191

256

Philippines

69

32

101

2

-

2

4,862

1,298

6,160

United States of America

HawaiiTotal

As a result, Overseas Business posted gross operating revenue of 92,132 million yen (up 15.1% fromprevious fiscal year) and segment loss of 3,064 million yen (segment profit was 2,342 million yen in previous
fiscal year).
(Sustainability Philosophy and Initiatives)
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 ofChief Sustainability Officer (CSO) was assumed by the president and CEO and representative director to further
strengthen our initiatives.
Specifically, we identified issues having significant impacts on the environment, society and economy acrossour business activities including our value chains, identified social issues that should be prioritized, and upholdthem as our six material issues (materiality) that we are currently working on.

8

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 growth
5. Coexisting synergistically with communities by serving as part of social infrastructure
6. Sustainable environment preservation activities toward carbon-free society
In Environmental Initiatives, we formulated its environmental vision, “Lawson Blue Challenge 2050!” in
2019, aiming to realize a (1) reducing CO2 emissions; (2) reducing food waste; and (3) reducing plastic use(for containers, packaging and shopping bags) and focused efforts are under way.
Furthermore, in an effort to tackle climate change issues, we are following the Task Force on Climaterelated Financial Disclosures (TCFD) recommendations to analyze climate-related risks and opportunities
and promote disclosure of their impact on our business activities and financial performance.
Goals related to the environmental aspect (KPIs)
Short-term KPIs

Medium-term KPIs

Long-term KPIs

for 2025

for 2030

for 2050

Reducing CO2 emissions

Reduce by 15%

Reduce by 50%

Reduce by 100%(per store)

over 2013

over 2013

over 2013

Reduce by 25%

Reduce by 50%

Reduce by 100%over 2018

over 2018

over 2018

IssuesReducing food waste

Reduce by 30%
over 2017(50% of materials

Reduce by 15%

used for Lawson’s

Reducing plastic use(for containers and packaging)over 2017

original productcontainers andpackaging are(100% of materials
used for Lawson’s
original productcontainers andpackaging areeco-friendly)

eco-friendly)
Reducing plastic use(Plastic shopping bags)

Plastic shopping bags―

Reduce by 100%―

Our measures for social issues include promoting respect for human rights and diversity, health andproductivity management, and social contribution activities.
・Respect for Human Rights
With the aim of embodying our Group’s corporate philosophy, “Creating Happiness and Harmony in Our
Communities,” we focus on respecting the human rights of all the stakeholders of our Group including our
supply chain by complying with the Lawson Group Human Rights Policy, which was established in June
2021 as our top-level basic policy on human rights. We signed the United Nations Global Compact, a9

worldwide initiative to achieve sustainable growth in the international community in May 2022.We will
respect human rights in all aspects of its business activities, build relationships of trust with all people
involved in its business activities, and promote initiatives to respect human rights with support and respect
international norms such as the United Nations Guiding Principles on Business and Human Rights.
・Promoting Diversity and Inclusion
Our goal is for employees with diverse values to come together to exert their maximum power as a whole,strengthening our chain even further. In hiring new employees, we focus on the aptitude, motivation, andcompetence of each individual regardless of their gender, nationality, age, academic background, or place oforigin. In our regular recruitment, we have been working to achieve our target of a 50:50 gender ratio since2005, and have continued to actively hire non-Japanese nationals since 2008. In addition, in an effort toachieve the target of raising the proportion of female managers to 30% by fiscal 2030, top management
members offer training to female executive candidates as part of our program to develop the next generationof leaders from among general managers.
Data on Active Role of Female Employees
FY2019FY2020

FY2021

FY2022

Number of female managers

111

121

134

154

(percentage of women in this role)

10.3%

11.4%

12.2%

13.8%

Number of female senior managers

16

10

14

11

(percentage of women in this role)

9.3%

6.2%

8.3%

7.1%

Number of female (Deputy) Senior

1

2

2

2

3.1%

5,7%

5.6%

6.1%

5

6

6

5

41.7%

46.2%

50.0%

50.0%

Vice Presidents(percentage of women in this role)
Number of female corporate
officers(percentage of women in this role)(Note) The number of senior vice presidents is the total number of senior vice presidents and deputy vicepresidents. Also, the number of corporate officers is the total number of members of the board and corporate
auditors.
・Health and Productivity Management
As a company that contributes to customers’ overall health, we announced a health declaration to this end
in 2013. With the President serving as Chairman of Health and Wellness Promotion Committee, we haverecently established a system to promote health management and lead efforts to reinforce and direct healthinitiatives and health management for the Company and its customers.
・Social Contributions
We conduct social contribution activities to realize the concept of“aiming to create a better future forchildren.” Under our scholarship program for children from single-parent families, we extended nonrepayable scholarships to 400 recipients every year from fiscal 2017 to 2022 to help them achieve their dreams.
Major sustainability initiatives we implemented in 2022 were as follows.

10・In November 2022, in Toshima Ward, Tokyo, we opened a GREEN LAWSON store as part of our efforts toachieve a sustainable society. Focusing on achieving sustainability in collaboration with customers andcommunities, the futuristic store incorporates over 20 sustainability measures including endeavoring to decrease
its environmental impact by reducing CO2 emissions, food loss, and plastic usage, serving customers with onscreen avatars to realize less restrictive work options for employees, and leveraging digital transformation tofacilitate smooth communication with customers. After verifying these measures, we will seek to introduce eachmeasure to stores where they will be suitable nationwide.

・In November 2022, in Kawasaki City, Kanagawa Prefecture, we opened an energy-saving model store withapproximately 80% of its refrigerated/frozen display cases equipped with doors and solar panels installed on its
roof, the store achieves reductions of 40% and 55% in electricity consumption and CO2 emissions, respectively,from its fiscal 2013 levels. We will be launching similar stores in other regions to verify the effectiveness of thisinitiative until February 2024, after which we will seek to make this a standard for new and renovated storesfrom the fiscal 2024.

・We launched some new initiatives to reduce food loss in fiscal 2022, including offering certain dessert items
on discount through Cookpad Mart*4, in order to use products after their sell-by date*5. We also conducted a pilot
experiment in which we donated fast-food items to children’s cafeterias by using rapid freezers. Furthermore,
we periodically donated original dessert products and processed foods that missed 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. In fiscal 2022, we donated a total of
approximately 1,350,000 items (about 126 tons) of food products *6.
*4 Fresh food e-commerce platform provided by Cookpad Inc.
*5 The sell-by date is set by Lawson and indicates the limit by which a product should be sold. After the sell-by
date, the product is removed from the shelf even though the expiry date has not passed.
*6 The figures include donations by suppliers.

・To reduce the use of plastic, we started using paper containers for our bento box lunches and cooked noodles,and have adopted thinner plastics and environmentally friendly materials. Furthermore, in response to theenforcement of the Plastic Resource Circulation Act in April 2022, we introduced lightweight plastic cutlery
developed with an open-handle design.

・In an effort to promote diversity, in August 2022 we affixed a communication support guide at the cashiercounter in Lawson stores nationwide with the aim of helping customers with hearing impairments or otherconditions convey their need for plastic shopping bags, cutlery, or microwave usage by identifying their request
on the guide. In response to requests from municipalities nationwide as well as customers, we have made thedata for the communication sheet support guide available to the public. In addition, to support people withdisabilities, we made a full-scale start on our project to use pictures drawn by artists with disabilities. Such11

pictures were employed in 2022 for the cover of the SDGs Handbook issued in August, awareness stickers fortoilets in November, and postcards and tissue boxes, which were put on sale to coincide with the International
Day of Persons with Disabilities in December.

(2) Profit and Loss
In terms of operating results for the fiscal year, gross operating revenue increased to 988,621 million yen(up 41.6% from previous fiscal year), operating income totaled 55,056 million yen (up 16.9% from previous
fiscal year), and ordinary income amounted to 53,453 million yen (up 12.4% from previous fiscal year). Profit
attributable to owners of parent was 24,689 million yen (up 37.9% 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 increased by 37,327 million yen from the end of the previous fiscal year to 704,954 million
yen, mainly reflecting an increase of 30,717 million yen in accounts receivable-trade, an increase of 8,515
million yen in cash and deposits, an increase of 3,577 million yen in merchandise, and a decrease of 4,883
million yen in accounts receivable-other. Non-current assets decreased by 8,406 million yen from the end of
the previous fiscal year to 661,211 million yen, mainly reflecting a decrease of 19,004 million yen in
investments and other assets, an increase of 9,617 million yen in property and store equipment and an increaseof 980 million yen in intangible assets. Consequently, total assets increased by 28,920 million yen from theend of the previous fiscal year to 1,366,166 million yen.
Current liabilities increased by 99,983 million yen from the end of the previous fiscal year to 804,674
million yen, mainly reflecting an increase of 60,000 million yen in current portion of long-term loans payable,
an increase of 42,669 million yen in accounts payable-trade, an increase of 19,757 million yen in deposits
received, an increase of 15,000 million yen in call money, an increase of 10,599 million yen in deposits
received for banking business, an increase of 6,753 million yen in other, a decrease of 33,492 million yen in
short-term loans payable and a decrease of 24,853 million yen in accounts payable-other. Non-current
liabilities decreased by 79,688 million yen from the end of the previous fiscal year to 274,392 million yen,mainly reflecting a decrease of 80,000 million yen in long-term loans payable. Consequently, total liabilities
increased by 20,294 million yen from the end of the previous fiscal year to 1,079,066 million yen.
Net assets increased by 8,625 million yen from the end of the previous fiscal year to 287,099 million yen,mainly reflecting an increase of 5,856 million yen in retained earnings and an increase of 1,893 million yen
in foreign currency translation adjustments. Consequently, shareholders’ equity ratio was 20.6%, up from
20.4% as of the end of the previous fiscal year.
② Cash flows during fiscal 2022

Cash and cash equivalents on February 28, 2023 increased by 8,513 million yen from the end of theprevious fiscal year to 396,958 million yen.
Net cash provided by operating activities was 176,045 million yen, an increase of 29,400 million yen fromthe previous fiscal year, mainly because of the movement in deposits received, call money for banking
business and accounts receivable-other.
Net cash used in investing activities was (45,626) million yen, a decrease of 6,155 million yen from theprevious fiscal year, mainly because of a decrease of purchase of shares of subsidiaries and associates, adecrease of proceeds from sales of investment securities and an increase in purchase of intangible assets.
Net cash used in financing activities was (124,028) million yen, an increase of 14,512 million yen from12

the previous fiscal year, mainly because of a decrease in repayments of long-term loans payable andproceeds from long-term loans payable.
(Reference) Trends in cash flow indicators
2020 fiscal year

2021 fiscal year

2022 fiscal year

Shareholders’ equity ratio (%)

19.6

20.4

20.6

Shareholders’ equity ratio on market value basis (%)

36.5

35.9

39.3

Interest-bearing debt/cash flow ratio (years)

1.9

2.7

1.9

Interest coverage ratio (times)

62.3

42.7

48.9

(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
Since the Group has decided to voluntarily apply International Financial Reporting Standards (IFRS) for the
consolidated financial statements in its Annual Securities Report effective from the fiscal year ended February
2023, “Future Outlook” is based on figures after applying “IFRS,” and the percentage changes from the resultsof the fiscal year ended February 28, 2023 are not provided.
Furthermore, financial forecasts for the fiscal year ending February 29, 2024 other than the Profit attributableto owners of parent based on “IFRS” will be provided in the flash report(Under IFRS) scheduled to be issued
on May 25, 2023.
Outlook for the next fiscal year (2023 fiscal year ending February 29, 2024)
1H of 2023 fiscal year
Forecast (Millions of yen) YoY (%)
Profit attributable toowners of parent

17,50013－2023 fiscal year
Forecast (Millions of yen) YoY (%)
29,000－2. Basic Approach to Selection of Accounting Standards
In order to improve the international comparability of its financial information in capital markets, theGroup has decided to voluntarily apply International Financial Reporting Standards (IFRS) instead ofJapanese Generally Accepted Accounting Principles (J-GAAP) for the consolidated financial statements in
its Annual Securities Report effective from the fiscal year ended February 2023.

14

3. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheet
As of February 28, 2022 and February 28, 2023
Previous fiscal year
As of February 28,
2022
AssetsCurrent assets:
Cash and deposits
Accounts receivable-trade
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

15(Millions of yen)
Current fiscal year
As of February 28,
2023

388,463
4,990
47,202
15,071
22,128146,443
43,344(17)
667,627

396,978
35,70850,522
13,71225,706
141,560
40,782(16)
704,954

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

193,70325,502
8,420
127,694
1,704
21,360378,385

34,88434,4597,721
680
77,74636,54334,435
7,172
575
78,727

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

16,75936,72098,38432,924
20,133(823)
204,098
661,211
1,366,166

Previous fiscal year
As of February 28,
2022
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

16(Millions of yen)
Current fiscal year
As of February 28,
2023

125,681
47,07220,00045,95590,412
7,368
151,809
4,854
108,000
91,42012,117
704,691

168,350
13,58080,00045,86265,55910,896
171,567
4,967
123,000
102,020
18,871
804,674

160,000
118,445449

80,000119,910
414

248

286

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

16,65637,977
19,146274,392
1,079,066

58,50646,495
161,299(973)
265,327

58,50646,495
167,156(948)
271,209

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

1,007
(69)
8,167
934
10,040328
5,521
287,099
1,366,166

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
For the fiscal years ended February 28, 2022 and February 28, 2023
Previous fiscal year
From March 1, 2021
to February 28, 2022
698,371292,237
199,738
92,498Gross 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
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 attributable to non-controlling interests
Profit attributable to owners of parent

17(Millions of yen)
Current fiscal year
From March 1, 2022
to February 28, 2023
988,621604,812476,684
128,127

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

251,564
132,244383,809511,937
456,881
55,056

976
369
1,624
483

960
678
553

1,762

622

1,202
6,420

1,611
4,426

3,440
1,423
1,081
5,944
47,571

3,514
1,225
1,288
6,028
53,453

1,103
1,103

-

1,746
16,616701
1,512
20,57628,098
11,226(1,160)10,06518,032
131
17,900

1,541
8,362
1,261
350
11,51541,937
15,136
1,886
17,02324,914224
24,689

Consolidated Statement of Comprehensive Income
For the fiscal years ended February 28, 2022 and February 28, 2023
(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

18

Previous fiscal year
From March 1, 2021
to February 28, 2022
18,032Current fiscal year
From March 1, 2022
to February 28, 2023
24,914

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

(578)
2,000
1,161
2,583
27,49820,340272

27,166331

(3) Consolidated Statement of Changes in Equity
Previous 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)0Reversal 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

(138)

(138)

0

Balance at end of current period

17

18

－

0

2,800

17

2,818

58,50646,495

161,299(973)

265,327(Millions of yen)
Accumulated other comprehensive income
Valuation
Revaluationdifference on
reserve foravailable-for-salelandsecurities
Balance at beginning of current
periodChanges of items during period

1,782

(207)

Foreigncurrencytranslation
adjustment
3,684

Total
NonRemeasureme accumulated Subscription controllingrightstosharesnts of defined
otherinterests
benefit plans comprehensive
income
(134)

5,123

333

4,965

Increase 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
assets272,93149
0(15,010)
17,900
(0)
0
(138)
18
(196)

138

2,589

(196)

138

2,589

(92)

2,439

34

248

5,541

1,585

(69)

6,273

(227)

7,563

368

5,213

278,473

19

(92)

2,439

34

248

2,722

Current fiscal year ended February 28, 2023 (From March 1, 2022 to February 28, 2023)(Millions of yen)
Capital stock

Capital surplus

58,50646,495

Balance at beginning of current period
Cumulative effect of changes inaccounting policies
Restated balance

Shareholders’ equity
Retained earnings
Treasury shares
161,299

Total shareholders’ equity(973)

265,327(723)
58,50646,495(723)

160,576(973)

264,604

Changes of items during period
Dividends of surplus(15,011)

Change in scope of consolidation(3,098)(3,098)

Profit attributable to owners of parent

24,68924,689(15,011)Purchase of treasury shares
Disposal of treasury shares
Exercise of subscription rights to shares(Delivery of treasury shares)
Net changes of items other thanshareholders’ equity
Total changes of items during period
Balance at end of current period

(0)

(0)

0

0

0

(0)

24

24

－

(0)

6,579

24

6,604

58,50646,495

167,156(948)

271,209(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
periodCumulative effect of changes
in accounting policies
Restated balance

1,585

(69)

6,273

(227)

7,563

NonSubscription
controllingrights to sharesinterests
368

5,213

Total net
assets278,473
(723)

1,585

(69)

6,273

(227)

7,563

368

5,213

277,750

Changes of items during period
Dividends of surplus(15,011)

Change in scope of consolidation
Profit attributable to owners ofparentPurchase of treasury shares(3,098)

Disposal of treasury shares
Exercise of subscription rights
to shares(Delivery of treasury shares)
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

24,689
(0)
0
24
(578)

－

1,893

1,161

2,477

(40)

307

2,744

(578)

－

1,893

1,161

2,477

(40)

307

9,348

1,007

(69)

8,167

934

10,040328

5,521

287,09920

(4) Consolidated Statement of Cash Flows
For the fiscal years ended February 28, 2022 and February 28, 2023
Previous fiscal year
From March 1, 2021
to February 28, 2022
Net cash provided by (used in) operating activities:
Profit before income taxes
Depreciation and amortization
Impairment loss
Interest and dividend income
Interest expenses
Loss (gain) on sales of investment securities
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in accounts receivable-other
Increase (decrease) in trade payables
Increase (decrease) in accounts payable-other
Increase (decrease) in deposits received
Increase (decrease) in net defined benefit liability
Net increase (decrease) in call money for banking business
Other-net
SubtotalInterest and dividend 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
Long-term loan advances
Proceeds from collection 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

21(Millions of yen)
Current fiscal year
From March 1, 2022
to February 28, 2023

28,09879,942
16,616(976)
3,440(1,103)
1,746(1,713)15,068(3,467)(1,450)(94,328)
1,153
68,00046,113
157,138
982(3,434)(8,042)
146,644

41,937
84,848
8,362(1,638)3,514
1,541(6,892)(21,189)
11,7702,648
19,720(806)
15,00031,037
189,856
1,527(3,597)(11,741)
176,045(12,001)
10,000(39,038)(7,731)
6,073(10,783)(2,352)
4,772(11,122)
11,904(1,045)(457)(51,781)(4,022)8,000(35,084)(12,899)(493)(1,950)
5,045(10,296)
10,150(354)(3,721)(45,626)

Previous fiscal year
From March 1, 2021
to February 28, 2022
Net cash provided by (used in) financing activities:
Net increase (decrease) in short-term loans payable
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease obligations
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 (decrease) in cash and cash equivalents resulting fromchange in scope of consolidation
Increase in cash and cash equivalents resulting from merger withunconsolidated subsidiaries
Cash and cash equivalents at end of period

22(Millions of yen)
Current fiscal year
From March 1, 2022
to February 28, 2023

4,752
50,000(100,000)(49,233)(15,010)(24)(109,516)
1,941(12,711)401,136(20,000)(54,385)(15,011)(23)(124,028)
901
7,291
388,444

-

1,221

19

-

388,444396,958(34,608)

(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.
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.
Chengdu Lawson, Inc.
Saha Lawson Co., Ltd.
Lawson Philippines, Inc.

Lawson HMV Entertainment United Cinemas Holdings, Inc. and United Entertainment Holdings Co.,
Ltd. were excluded from the scope of consolidation because of an absorption-type merger with United
Cinemas Co., Ltd. as the surviving company on September 1st 2022.
Zhejiang Lawson, Inc. changed its Chinese trade name on January 12, 2023.
Chengdu Lawson, Inc. and Lawson Philippines, Inc. have been included in the scope of consolidation
due to an increase in significance.
(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 (TIANJIN) INC.
SLV Retail Company Limited
Shenyang LAWSON Inc.
Canton Lawson, Inc.
Hebei Lawson, Inc.
Shenzhen 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)

23

and retained earnings (corresponding to equity interest) and others have no material influence on the
consolidated financial statements.
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 (TIANJIN) INC., SLV Retail Company Limited, Shenyang LAWSON
Inc., Canton Lawson, Inc., Hebei Lawson, Inc., and Shenzhen 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., New Designedby 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., Chengdu Lawson, Inc., Saha
Lawson Co., Ltd. and Lawson Philippines, Inc. is December 31. In order to prepare the consolidated
financial statements, the Company used these companies’ financial statements prepared as of such balance
sheet date and significant transactions which occur between the balance sheet date and the consolidatedbalance sheet date are adjusted as required for consolidation.
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:
With market quotations:
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.
Without market quotations:
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 11 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 is24the estimated useful life. Furthermore, for right of trademark, amortization is mainly computed using
the straight-line method over 20 years.
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) Principles for revenue and expenses① Methods for recognizing revenue
The Company recognizes revenue from contracts with customers 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: Recognize revenue when the entity satisfies a performance obligation.
Since the consideration corresponding to the transaction price is received within one month ofsatisfaction of the performance obligation, the practical expedient method is used and there is no
adjustment for a significant financing component.
② Recognition of revenues for the Group’s major businesses
The Group’s primary business comprises the Domestic Convenience Store Business, Seijo Ishii
Business, Entertainment-related Business, Financial Services Business, and Overseas Business.
・Revenues from franchised stores in the Domestic Convenience Store Business, Seijo Ishii Business,
and Overseas Business
For franchised stores in its Domestic Convenience Store Business, Seijo Ishii Business, and Overseas
Business, the Group has contractual obligations to prepare for their openings, provide knowledge on
how to operate the stores, grant licenses for trademarks, etc., provide training, accounting and otherservices, and lease fixtures for sale, signboards, and information systems, among others. As these25

activities are closely inter-related and cannot be performed as separate services, they are collectively
deemed as a single performance obligation except for the lease transactions. The performance obligation
is deemed to be satisfied over time and when the services are provided, but as the royalty revenues
fluctuate based on the operating gross profit of each franchised store, the revenues are recognizedwhenever the applicable operating gross profit is registered throughout the contract period.
・Revenues from directly operated stores in the Domestic Convenience Store Business, Seijo Ishii
Business, and Overseas Business; Entertainment-related Business; and Financial Services Business
The Group sells general consumer goods at its directly operated stores in the Domestic Convenience
Store Business, Seijo Ishii Business, and Overseas Business, and music and video software products andconcert tickets in the Entertainment-related Business. Revenues from selling such goods are recognizedwhen an item is handed over to the customer, at which point its control is deemed to have beentransferred to the customer.
In the Entertainment-related Business, the Group operates multiplex movie theaters, for whichrevenues are recognized when a movie has been screened, at which point its control is deemed to havebeen transferred to the viewers.
In the Financial Services Business, the Group provides ATM transaction services via cash cards ofpartner financial institutions and sales deposit services for franchised store owners, for which revenues
are recognized when a transaction has occurred, at which point the control of the service is deemed tohave been transferred.
In identifying a performance obligation, the Group assesses whether it should act as a principal or an
agent in performing the promise to provide the specified goods or services. In cases where the nature of
the promise constitutes a performance obligation of the Group itself to provide the goods or services as aprinciple, the revenue in total amount of consideration is registered in the consolidated profit and loss
statement, whereas in cases where the performance obligation requires that the Group arrange a third
party to provide the goods or services, the revenue as an agent is registered therein in the amount ofcommissions or remunerations or the net amount of consideration.
The Group considers the following indicators in assessing whether it should act as a principal.
・The Group has the primary responsibility to fulfill the promise to provide the specified goods orservices.
・The Group has an inventory risk either before the specified goods or services are transferred to thecustomer or after the control of the specified goods or services is transferred to the customer.
・The Group has discretion over the price of the specified goods or services.
Revenues are based on the transaction price less consideration paid to the customer such as discounts
and rebates. If the Group grants the customer an option to acquire additional goods or services andprovides a material right to do so, transaction value is allocated to the optional transaction by deeming it
as a separate performance obligation, for which revenues are recognized when the goods or services aretransferred to the customer or when the option is extinguished.
(6)

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 “non-controllinginterests,” a separate component of net assets.

(7) 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.
(8) 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.
(9) Other significant items related to the preparation of consolidated financial statements①Adoption of consolidated taxation system:

26

The Company and certain consolidated subsidiaries in Japan adopt the consolidated taxation system.
②Application 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.
Furthermore, effective from the beginning of the next fiscal year, the Company plans to apply the“Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System” (ASBJ
Practical Issues Task Force No. 42 (August 12, 2021).
(Changes in Accounting Policies)(Application of Accounting Standards for Revenue Recognition, etc.)
Effective from March 1, 2022, the Company applies the “Accounting Standard for Revenue
Recognition” (ASBJ Statement No.29, March 31, 2020, “Accounting Standard for Revenue
Recognition”) and other standards and recognizes revenue at an amount that it expects to receive in
exchange for promised goods or services when control of the goods or services is transferred to acustomer.
The changes in relation to the application of the accounting standards for revenue recognition are statedbelow:(1) Sales transactions involving a subsidiary
Sales transactions involving SCI, Inc., a subsidiary of the Company in the domestic convenience store
business, that were previously recognized on a net basis are now recorded on a gross basis inconsideration of the subsidiary’s role in sales to customers (whether it is principal or agent).
(2) Consideration paid to customers
Sales promotion costs and other costs were previously recognized as selling, general and administrative
expenses, such as sales commission and advertising expenses, but such consideration paid to customers is
now deducted directly from revenue.
(3) IT systems fees received from customers
Fees received from customers for IT system utilization and data provision were previously deductedfrom selling, general and administrative expenses, but transactions based on contracts with customers are
now recognized as revenue.
(4) Points program operated by a subsidiary
With respect to the in-house points program operated by United Cinemas Co., Ltd., a subsidiary of theCompany in the Entertainment-related Business, points awarded were previously recognized as revenue
on a gross basis at the time the services were sold. However, the points awarded at the time of sales are
now recognized as a separate performance obligation to be executed when customers choose to purchaseadditional services in the future. As a result, transaction values allocated to points are recognized ascontract liabilities at the time the points are awarded, and later recognized as revenue when services are
sold in exchange for the points. Transaction values are allocated in proportion to the independent selling
prices. The membership fees for the points program were previously recognized as revenue in a lump sum
at the time of receipt, but they are now recorded based on the elapsed period.
The Accounting Standards for Revenue Recognition have been applied in accordance with Proviso of
Paragraph 84 of the Accounting Standards for Revenue Recognition with the cumulative effect ofretrospective application added to or deducted from the beginning balance of retained earnings of the firstquarter of the current fiscal year, thus, the new accounting policy has been adopted from the first quarterof this fiscal year.

27

As a result, compared with the amounts based on the previously adopted accounting policies, accounts
receivable-trade increased by 29,568 million yen, accounts receivable-other decreased by the sameamount, accounts payable-trade increased by 32,123 million yen and accounts payable-other decreased by
the same amount, net sales and operating revenue increased by 232,971 million yen, cost of sales
increased by 264,400 million yen, and selling, general and administrative expenses decreased by 31,441
million yen for the fiscal year under review, while operating income, ordinary income, and profit before
income taxes increased by 12 million yen, respectively. The balance of retained earnings at the beginningof the fiscal year decreased by 723 million yen.
The account transfer (related to the changes in accounting policy for revenue recognition) on theConsolidated Balance Sheet has no effect on the Consolidated Statement of Cash Flows as a non-cash
transaction. As a result of reclassifications, accounts receivable-trade increased by 26,359 million yen,accounts receivable-other decreased by the same amount, accounts payable-trade increased by 29,430
million yen and accounts payable-other decreased by the same amount for the fiscal year under review.
In accordance with the transitional treatment set forth in Paragraph 89-2 of the Accounting Standard for
Revenue Recognition, the Company has not restated the financial results for the previous fiscal year toreflect the new method of presentation. Furthermore, the information on the disaggregation of revenue
from contracts with customers for the previous fiscal year is not presented in accordance with thetransitional treatment stipulated in Article 89-3 of the Accounting Standard for Revenue Recognition.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.30, July 4, 2019;hereafter “Fair Value Accounting Standards” ) has been applied prospectively from the beginning of thefirst quarter of the current fiscal year as prescribed by the Fair Value Accounting Standards in accordancewith the transitional treatment set forth in Paragraph 19 of Fair Value Accounting Standards and Section
44-2 of “Accounting Standard for Financial Instruments” (ASBJ Statement No.10, July 4, 2019). Thischange had no effect on the quarterly consolidated financial statements.
(Changes in Presentation)(Consolidated Balance Sheet)
In the “Current assets” section, “Accounts receivable-trade” was included in “Other” in the previous fiscal
year. Due to an increase in financial materiality, “Accounts receivable-trade” is now separately presented.
To reflect this change in method of presentation, the Consolidated Balance Sheet for the previous fiscal
year has been reclassified.
As a result, in the “Current assets” section, 48,334 million yen that was presented as “Other” in theConsolidated Balance Sheet for the previous fiscal year are now presented as 4,990 million yen of“Accounts receivable-trade” and 43,344 million yen of “Other.”(Consolidated Statement of Cash Flows)
In the “Cash flows from operating activities” section” section, “Decrease (increase) in accounts
receivable-trade” was included in “Other” in the previous fiscal year. Due to an increase in financial
materiality, it is included in “Decrease (increase) in trade receivables” in the current fiscal year. 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 “Cash flows from operating activities” section, 45,072 million yen that was presented
as “Other” in the Consolidated Statement of Income for the previous fiscal year is now presented as (1,040)
million yen of “Decrease (increase) in trade receivables” and 46,113 million yen of “Other.”28

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

Accumulated depreciation

Previous fiscal year
As of February 28, 2022
416,609(Millions of yen)
Current fiscal year
As of February 28, 2023
439,578

Previous fiscal year
As of February 28, 2022
18,260(963)
5412,470(132)(Millions of yen)
Current fiscal year
As of February 28, 2023
13,744
(978)
47
7,677
(112)

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, 2022
As of February 28, 2023
Difference between book value and market value of
94
the revalued land as of balance sheet date29

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, 2022
As of February 28, 2023
Total overdraft limit and loan commitment
Amount of loans executed

22,268460

28,831
744

Unutilized balance
21,80728,087
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, 2022
As of February 28, 2023
Total overdraft limit and loan commitment
Amount utilized

320,000
22,062

380,204
41,900Unutilized balance

297,938

338,304

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, 2022
As of February 28, 2023
Lawson USA Hawaii, Inc.

92

30

84

(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, 2021
to February 28, 2022
59,391
3,441
2,717
130,770
79,822(Millions of yen)
Current fiscal year
From March 1, 2022
to February 28, 2023
62,163
3,297
2,728
130,431
84,510Previous fiscal year
From March 1, 2021
to February 28, 2022
1,043
249
46
406
1,746

(Millions of yen)
Current fiscal year
From March 1, 2022
to February 28, 2023
827
396
177
140
1,541

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

Buildings and structures
Tools, furniture and fixtures
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, 2021 to February 28, 2022)(Millions of yen)
Category by use
Stores

Other
Total

Location

AssetsTokyo

Buildings; tools, furniture and fixtures; and others

2,644

Osaka

"

1,500

Others"12,353

―

Land

50

―

Software67――

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

Impairment loss

16,616

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%.

31

Current fiscal year (From March 1, 2022 to February 28, 2023)(Millions of yen)
Category by use

Stores

Other

Total

Location

AssetsImpairment loss

Tokyo

Buildings; tools, furniture and fixtures; and others

1,112

Osaka

"

419

Others

"

5,451

―

Software87―

Goodwill

1,288

―

Other

2

―

―

8,362

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

4,112
301
2,563
87
1,288
9

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 2.9%.

32

(Notes to Consolidated Statement of Comprehensive Income)The components of other comprehensive income for the years ended February 28, 2022 and February 28, 2023
were as follows:(Millions of yen)Previous fiscal year
Current fiscal year
From March 1, 2021
From March 1, 2022
to February 28, 2022
to February 28, 2023
Valuation difference on
available-for-sale securities
Gain or loss arising during the
665
(888)
periodReclassification adjustments to(948)
54
profit or loss
Amount before income tax effect
(282)
(833)
Income tax effect86
255
Valuation difference on
(196)
(578)
available-for-sale securities
Revaluation reserve for land
Gain or loss arising during the138－
periodRevaluation reserve for land
138－
Foreign currency translation
adjustment
Gain or loss arising during the
2,730
2,000
periodForeign currency translation
2,730
2,000
adjustment
Remeasurements of defined
benefit plans
Gain or loss arising during the
(282)
1,523
periodReclassification adjustments to149
150
profit or loss
Amount before income tax
(133)
1,674
effectIncome tax effect40(512)
Remeasurements of defined
(92)
1,161
benefit plans
Total other comprehensive
2,580
2,583
income33

(Notes to Consolidated Statement of Changes in Equity)
Previous 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)
current
Terms of stock
Classification
periodacquisition rights
Beginning
Increase
Decrease End of theClass(Millionsof theduring the during theperiodof yen)periodperiodperiodStock acquisition
Issuing company
rights (ordinary stock(Parent company)
options)

－

－

－

－

－

368

Total

－

－

－

－

－

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
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

34

Current fiscal year (From March 1, 2022 to February 28, 2023)
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 (*)
228
0
5
222
(*) 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)
current
Terms of stock
Classification
periodacquisition rights
Beginning
Increase
Decrease End of theClass(Millionsof theduring the during theperiodof yen)periodperiodperiodStock acquisition
Issuing company
rights (ordinary stock(Parent company)
options)

－

－

－

－

－

328

Total

－

－

－

－

－

328

3. Dividend
1) Dividend payment
Date of resolution
The General meetingof shareholders(May 25, 2022)
Directors’ meeting(October 6, 2022)

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, 2022

May 26, 2022

75.00

August 31, 2022

November 10, 2022

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 24, 2023)

Commonstock

Retainedearnings

7,505

75.00

February 28,
2023

May 25,2023

35

(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, 2021
From March 1, 2022
to February 28, 2022
to February 28, 2023
Cash and deposits
388,463
396,978
Time deposits for which the deposit period
(18)
(19)
exceeds three months
Cash and cash equivalents
388,444396,958
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, 2021
to February 28, 2022

Current fiscal year
From March 1, 2022
to February 28, 2023

Assets and liabilities related to finance lease
42,51250,289transactions(*)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, 2021
to February 28, 2022

Current fiscal year
From March 1, 2022
to February 28, 2023

1,451

1,620

Significant asset retirement obligations

36

(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, Thailand and the Philippines.
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.
As mentioned in the changes in accounting policies, the Company has started applying the AccountingStandard for Revenue Recognition and other standards to its consolidated financial statements from the fiscal
year under review, changing its accounting method for revenue recognition. The method of calculating profit
or loss by business segment has also changed as a result.
Consequently, in comparison with the figures resulting from the previous method, gross operating revenue
for the fiscal year under review increased by 237,523 million yen for the Domestic Convenience Store Business,increased by 275 million yen for the Seijo Ishii Business, and decreased by 4,827 million yen for theEntertainment-related Business. The impact of the change on segment profit or loss is minimal.

37

3. Information on net sales, profit or loss, assets, other items, and disaggregation of revenue by reportablesegment
Previous 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

1,827

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

71,89856,183Gross 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.

38

Current fiscal year (From March 1, 2022 to February 28, 2023)(Millions of yen)
Reportable segment
Others(Note 1)

Adjustments(Note 2)

Total
(Note 3)

251,564－

251,564－

308,129－

308,129

26,95812

408,121－408,121－508－

20,806－20,80670,06931,751

92,132

12

988,621－988,621

－

2,098

2,735

－

808

11,889(11,889)－

691,363

109,541

72,16734,486

92,132820

1,000,511(11,889)

988,621

Segment profit

39,001

11,189

3,963

3,882

(3,064)83

55,056－55,056

Segment assets

852,275

73,70688,387413,458

88,258458

1,516,544(150,378)

1,366,166

57,867

2,239

1,264

6,993

11,992－80,357－80,357

1,794

1,437

501

－

758

－

4,491

－

4,491

4,876

－

－

－

－

－

4,876

－

4,876

30,744

4,528

1,838

4,060

7,237

－

48,408－48,408Domestic
Convenience
Store
Business

Seijo Ishii
Business

Entertainmentrelated Business

Financial
Services
Business

Overseas
Business

250,272

860

－

－

431

－

77,237

108,641

58,016－64,234Other337,31333

12,05231,751Other revenue

20,291

6－

685,114

109,541

6,248

Total

Gross operating
revenue
Revenue fromcontracts withcustomers
Income from
franchised
stores
Net sales ofCompanyoperated stores

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.

39

(Related information)
Previous fiscal year (From March 1, 2021 to February 28, 2022)
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(Millions of yen)
Japan

China
618,331

Others72,406

Total
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.
Current fiscal year (From March 1, 2022 to February 28, 2023)
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
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.

40

(Information on impairment loss on non-current assets by reportable segment)
Previous 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

Current fiscal year (From March 1, 2022 to February 28, 2023)
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

8,054

－

66

－

241

－

Total

8,362

Adjustments

－

Total

8,362

(Information on amortization of goodwill and amortized balance by reportable segment)
Previous 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.

41

Current fiscal year (From March 1, 2022 to February 28, 2023)(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

6,565

16,647

5,679

－

5,543

－

Total

34,435Adjustments

－

Total

34,435

Note: 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, 2021 to February 28, 2022)
Not applicable.
Current fiscal year (From March 1, 2022 to February 28, 2023)
Not applicable.

42

(Per Share Information)
Previous fiscal year
From March 1, 2021 to
February 28, 2022
Net assets per share

Current fiscal year
From March 1, 2022 toFebruary 28, 2023

2,726.97 yen

2,810.33 yen

Profit per share

178.87 yen

246.70 yen

Diluted profit per share

178.71 yen

246.49 yen

Note: The basis for the calculation of profit per share and diluted profit per share is as follows:
Previous fiscal year
From March 1, 2021 to
February 28, 2022

Item

Current fiscal year
From March 1, 2022 toFebruary 28, 2023

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

17,90024,689－－Profit attributable to common stock (millions of yen)

17,90024,689Average number of common stock during the fiscal
year (thousands of shares)

100,070

100,076

Profit attributable to owners of parent adjustment(millions of yen)
Increase in number of outstanding common shares(thousands of shares)

－

－

88

86

(Subscription rights to shares) (thousands of shares)

(88)

(86)

－

－

Diluted profit per share

Summary of issuable shares not included in thecomputation of diluted profit per share, since thesesecurities are not dilutive(Significant Subsequent Events)
Not applicable.

43