LAWSON, INC.

Interim Results for Fiscal 2010
October 13, 2010
Cautionary
CautionaryStatement
Statement

This
Thispresentation
presentationcontains
containsforward-looking
forward-lookingstatements
statementsand
andforecasts
forecastsregarding
regardingthe
thefuture
futureplans,
plans,strategies
strategiesandandperformances
performancesofofLAWSONLAWSONand
anditsitssubsidiaries
subsidiariesandandaffiliates.
affiliates. These
Thesestatements
statementsand
andforecasts
forecastsare
arenotnothistoricalhistoricalfact.
fact.
They
are
expectations
basedon
assumptions
andbeliefs
derivedfrominformation
currently
available
totheCompany
They are expectations based on assumptions and beliefs derived from information currently available to the Companyand
andaresubject
to
risks
and
uncertainties
including,but
notlimitedto,economic
trends,heightenedcompetitionintheare subject to risks and uncertainties including, but not limited to, economic trends, heightened competition in thedomestic
domesticconvenience
conveniencestore
storesector,
sector,personal
personalconsumption,
consumption,market
marketdemand,
demand,thethetaxtaxsystem
systemand
andotherotherlegislation.
legislation.
As
such,actualresultsmaydiffermateriallyfrom
estimates.
As such, actual results may differ materially from estimates.
FiguresFiguresininthis
thispresentation
presentationhave
havebeen
beenroundedroundeddown.
down.
LAWSON’s
fiscalyear-end
is
the
end
of
February.
LAWSON’s fiscal year-end is the end of February.

Copyright (c) 2010 LAWSON,INC. All rights reserved.

1

Interim Results for Fiscal 2010
Yoshiyuki Yahagi
Chief Financial Officer

Copyright (c) 2010 LAWSON,INC. All rights reserved.

2

FY2010 Interim Results
1H FY2009(Consolidated: Billions of yen)

Actual1H FY2010
ActualYoY

vs. Initial Plan

Net sales of all stores

840.7

837.8

99.7%

99.3%

Operating profit

30.1

30.1

100.0%

108.1%

Operating profit ratio

3.6%

3.6%

0.0%P

0.3%P

Recurring profit

29.7

29.6

99.7%

109.6%

Interim net profit

15.8

12.2

77.4%

94.5%

160.17123.44

77.1%

94.2%

80

85

5

-

9,629

9,860

231

-

EPS (Yen)
Projected dividend per share (Yen)

Total number of stores(Notes) Interim net profit and EPS for 1H FY2009 have been corrected due to prior-year adjustments of LAWSON ENTERMEDIA, INC. Results for
1H FY2009 include the results of Ninety-nine Plus Inc. for the period from January to June.

Consolidated operating profit: Slightly increased
We achieved our year-on-year plan for interim existing store sales, with the second quarter offsetting underperformance in thefirst quarter.
We continued to make progress cutting SG&A expenses. Consequently, interim operating profit far exceeded our plan.

Consolidated interim net profit: Declined
We recorded a loss on disposal of 1.2 billion yen on the training facility to reduce maintenance costs, as well as a 1.8 billion
yen impairment loss for old IT systems at Ninety-nine Plus Inc. due to the early introduction of new IT system, PRiSM.
Together, these restructuring costs totaled 3.0 billion yen and were booked as extraordinary losses.
Copyright (c) 2010 LAWSON, INC. All rights reserved.

3

Existing Stores (Non-Consolidated)
2.0%

110.0%

1.5%

Reference

105.0%

1.0%

100.0%

0.0%  Gross profit: 99.5%

1H FY2010
0.5% Existing stores (YoY)

95.0%

 Sales: 97.6%-0.5%  Average no. ofcustomers: 99.8%-1.0%  Average amountspent per customer:-1.5% 97.8%

90.0%

-2.0%
1H

2H

FY20071H

2H

FY20081H

2H

FY2009Gross profit margin ratio (Difference, Right)

1H

2H(Plan)FY2010
Sales (YoY, Left)

 Gross profit margin improved considerably due to revamping raw materials procurement and promoting
projection ordering method.
 Customer numbers improved on the back of the popularity of desserts and cooked noodles, and thesummer heatwave.
 Existing store sales dropped due to a decline in average amount spent per customer, reflecting ongoing
price competition.
Copyright (c) 2010 LAWSON, INC. All rights reserved.

4

Existing Stores (Non-Consolidated)
Net store increase（left）
Store opening (left)

Store closure（left）
Daily sales per new store (right）（Opening/Closure/Net store increase）（Daily sales per new store: ¥ thousand）

300

600

200

500

100

400

0

300

-100

200

-200

100

-300

0
FY2007-2Q

FY2008-2Q

FY2009-2Q

FY2010-2Q

 The net increase in stores ended up with 84 stores as a consequence of the number of store openings,
which was 40 higher than planned, and of the number of store closure, which was 24 less than planned.
=> Revised the annual plan of net increase for 120 stores.
 Outstanding contracts at period-end was 286, which covered the annual plan.
 Daily sales at new stores increased to 505 thousand yen. Persistent efforts in improving efficiency of
opening new stores continued to boost the sales at new stores.
Copyright (c) 2010 LAWSON, INC. All rights reserved.

5Key Components of SG&A Expenses
1H FY2010
Actual(Billions of yen)

Nonconsolidated

FY2010 (Full Year)
1)

YoY

Forecast
Slight increase

Selling, general and administrative (SG&A) expenses

88.3

▲ 0.6

<Major Strategic Expenses>
Personnel costs
IT-related costs

17.0

▲ 1.8

7.0

1.5

Down approx. 10%
Up approx. 10%

4.7

▲ 0.6

Down approx. 10%

119.0

1.7

Slight decrease（Hardware leasing, software amortization, maintenance, etc.)

Advertising and promotional expenses

Consolidated SG&A expenses
1) Italics mean revised figures for the full year.

1H YoY Differences IT-related
IT-related costs
costs

Rebound
Rebound increase
increase after
after streamlining
streamlining fromfrom last
last yearyear

 Advertising
Advertising andand promotional
promotional expenses
expenses

Decrease
Decrease due
due toto effective
effective use
use ofof shopping
shopping points
pointsprogramprogram

ConsoliConsolidated
dated Ninety-nine
Ninety-nine Plus
Plus

Increase
Increase due
due toto increased
increased store
store openings
openings

Copyright (c) 2010 LAWSON, INC. All rights reserved.

Difference
Difference fromfrom initial
initial plan:
plan: Minus
Minus 2.3
2.3 billion
billion yen
yenIT-related
IT-related costs
costs
Minus
Minus 0.9
0.9 billion
billion yen
yen duedue toto reduced
reducedmaintenancecosts
maintenance costs
Advertising
Advertising andand promotional
promotional expenses
expenses
Minus
Minus 0.8
0.8 billion
billion yen
yen duedue toto useuse ofof shopping
shopping
pointspoints program
program

Consolidated
Consolidated

Decrease
Decrease inin store
store crew
crew expenses
expenses due
due toto decline
decline ininnumbernumber ofof Company-operated
Company-operated storesstores

NonNonconsolidated
consolidated

NonNonconsolidated
consolidated Personnel
Personnel costs
costs

1H Plan Differences

Difference
Difference fromfrom initial
initial plan:
plan: Minus
Minus 3.0
3.0 billion
billion yen
yenNinety-nine
Plus Ninety-nine Plus
Minus
Minus 0.5
0.5 billion
billion yen
yen against
against plan
plan duedue toto nonnonachievement
achievement ofof store-openings
store-openings
6Earnings of Major Subsidiaries and Affiliates(Billions of yen)

1H FY2010<Operating Profit of Major Subsidiaries>
Fiscal Year-end Shareholding

Actual

FY2010 (Full Year)
Forecast1)

YoY▲ 0.10

44.0%

0.61
1.03
1.65

0.072)
0.24

1.0
2.2
2.8

42.0%

▲ 0.17-▲0.4

LAWSON ENTERMEDIA, INC.

Feb.

100.0%

Ninety-nine Plus Inc.

Feb.

100.0%LAWSON ATM Networks, Inc.

Feb.

Cross Ocean Media, Inc.

Feb.

<Operating Profit of Equity-method Affiliates>

LAWSON Okinawa, Inc.

Feb.

49.0%

SHANGHAI HUALIAN LAWSON CO., LTD.

Dec.

49.0%

1H FY20100.28▲ 0.05-▲ 0.001) Italics mean revised figures for the full year.
2) Compared with the operating profit from January to June for FY2009, which was included in LAWSON's consolidated results for that fiscal year.

LAWSON ENTERMEDIA, INC.

Although
Although earnings
earnings fell,
fell, performance
performance waswas better
better than
than plannedplanned with
with nono
impactobservedfromtherecentincident.
impact observed from the recent incident.

Ninety-nine Plus Inc.

Although
Although earnings
earnings fell
fell short
short ofof plan,plan, they
they contributed
contributed toto consolidated
consolidated
operatingprofit.
operating profit.

LAWSON ATM Networks,
Inc.

Achieved
Achieved higher
higher earnings
earnings due
due toto increased
increased ATM
ATM installations.
installations.

Cross Ocean Media, Inc.

Upfront
Upfront investments
investments forfor launchinglaunching digital
digital signage
signage business.
business.

Copyright (c) 2010 LAWSON, INC. All rights reserved.

7

1H FY2010 Balance Sheet and Cash Flows (Consolidated)(Billions of yen)

YoY

As of Aug. 31, 2010

Total current assets

158.5

As of Aug. 31, 2010

26.3

Total current liabilities

206.3

21.8

Total long-term liabilities

93.2
74.9
72.0

20.0
9.0
6.5

38.2

▲ 0.4

203.4
58.5

5.3
－

94.9
481.8

0.8
33.7

(Accounts payable-tradefor franchised stores)

97.6
1.0
30.5

33.6
▲ 1.5
4.0

Total property and store equipment

323.2

7.3

(Deposits received from
franchisees and lessees)

Fixed assets

152.0

6.7

Net assets

Total intangible fixed assets

36.3
134.9
31.5
81.8
481.8

1.9
▲ 1.3
1.7
▲ 1.3
33.7

(Cash and bank deposits)(Marketable securities)(Accounts receivable)

Investments and other assets(Long-term loans receivable)(Lease deposits)

Total assets

YoY(Deposits received)(Common stock)(Retained earnings)
Total liabilities and net assets

ImpactImpact ofof new
new lease
lease accounting
accounting standard
standard“Fixedassets”+8.7
billionyen“Fixed assets” +8.7 billion yen“Current/long-term“Current/long-term liabilities”
liabilities” +7.7
+7.7 billion
billion yen
yen(Billions of yen)

1H FY2008

1H FY2009

1H FY2010

Cash flows from operating activities

48.7

49.5

63.4

Cash flows from investing activities

3.7▲ 15.8▲ 12.6

Free cash flows

52.4

33.6

50.7

Cash flows from financing activities▲5.3▲ 11.2▲ 16.1(Reference) Cash and bank deposits

104.8

102.0

97.6

Cash flows from operating activities increased 13.9 billion yen year on year to 63.4 billion yen in 1H FY2010
 Reflected improvement in working capital in line with increase in bill settlement transactions
Copyright (c) 2010 LAWSON, INC. All rights reserved.

8

FY2010 Forecasts (Consolidated)(Billions of yen)

Net sales of all stores
Operating profit
Operating profit ratio
Recurring profit
Net profit
ROE
EPS (Yen)
Dividend payout ratio

FY2009Actual1H FY2010
Actual

FY2010
Forecasts 1)

YoY

Projected dividend per share (Yen)

1,666.1
50.2
3.0%
49.4
12.5
6.5%
126.67126.3%
160

837.8
30.1
3.6%
29.6
12.2
6.3%
123.44ー
85

1,655.0
50.5
3.1%
49.1
22.0
11.2%
220.29
77.2%
170

99.3%
100.4%
0.1%P
99.3%
175.1%
4.7%P
173.9%▲ 49.1%P
10

Total number of stores in Japan

9,761

9,860

10,011

250

96.8%
95.9%
30.4%

99.5%
97.6%
30.9%

100.0%
98.6%
30.9%

3.2%P
2.7%P
0.5%P

(Non-Consolidated)

Gross profit at existing stores (YoY)

Net sales at existing stores (YoY)

Gross profit margin ratio

1) Revisions to initial full-year forecasts for fiscal 2010 are italicized.

2H FY2010 0.3 percentage point increase in the gross profit margin ratio due to progress in structural reforms.
 Invest in improving products to minimize backlash impact on cigarette sales from rushing buy ahead oftobacco tax hike
 Increase investment in growth fields (fresh food convenience stores, etc.)
 Downward revision of net profit (-1.8 billion yen) due to unexpected first-half extraordinary losses(3.0 billion yen)
Copyright (c) 2010 LAWSON, INC. All rights reserved.

9

LAWSON Management Strategy
Takeshi Niinami
President & CEO

Copyright (c) 2010 LAWSON,INC. All rights reserved.

10

1H FY2010 Review
Key Initiatives
Improvement
Improvement ininfranchise
franchise owner
owner QSCQSCStrategies totoStrategies
increase gross
gross profit
profitincrease

Short-term

Structural
Structural reforms
reforms ofofprocurement
procurement andand distribution
distribution

1H Achievements Increased
Increased ratio
ratio ofof S/AS/A ranked
ranked storesstores in
in Mystery
Mystery
Shoppers
Shoppers Program
Program Raised
Raised gross
gross profit
profit margin
margin ratios
ratios by
by 0.6%
0.6% points
points

PRiSM
PRiSM
Multi-partner
Multi-partner shopping
shopping
pointspoints program
program Grew
Grew cardholder
cardholder base
base toto moremore than
than 25
25 million
million Sales
Sales toto cardholders
cardholders accounted
accounted forfor 28%28% ofof total
total sales
sales

Strengthened
Strengthened
Group
Group governancegovernance






Implemented
Implemented recommendations
recommendations ofof third
third party
party investigating
investigating committee
committee
Acquired100%
Ownershipofsubsidiaries,
Ninety-nine
Plus
Acquired 100% Ownership of subsidiaries, Ninety-nine Plus andandLAWSONLAWSON ENTERMEDIAENTERMEDIA (LEM)(LEM)

Medium- to long-term

Fresh
Fresh food-type
food-type Conversion
Conversion toto freshfresh food-type
food-type storesstores (hybrid)(hybrid)
Delayedacquisitionof
LAWSONSTORE100
 Delayed acquisition of LAWSON STORE100

Healthcare-type
Healthcare-type CVS
CVS withwith prescription
prescription pharmacies
pharmacies
 Opened
Opened aa store
store with
with aa drug
drug store
store chain
chain

In-store
In-store kitchen-type
kitchen-type TrialTrial sales
sales ofof freshfresh lunch
lunch boxes
boxes andand delicatessen
delicatessen items
items

Overseas
Overseas development
development

 Opened
Opened first
first store
store inin Chongqing
Chongqing in
in July,
July, 2010
2010

Copyright (c) 2010 LAWSON, INC. All rights reserved.

11

2H FY2010 Initiatives
Key Issues

Backlash
Backlash fromfrom rushingrushing buy
buy ofofcigarettes
cigarettes

Actions Development
Development andand promotion
promotion ofof value-added
value-added
products
products
 Counter
Counter fast
fast foods
foods Original
Original products
products
 Utilize
Utilize PRiSM
PRiSM toto minimize
minimize opportunity
opportunity loss
loss

Multi-format
Multi-format strategy
strategy totoexpandexpand customer
customer basebase
 FreshFresh food-type
food-type storesstores
In-store
kitchen-type
 In-store kitchen-type storesstores Healthcare-type
Healthcare-type storesstores(Stores(Stores with
with prescription
prescription pharmacies,
pharmacies, joint
joint store
store
openings
openings with
with drug
drug store
store chain)chain)

Proactive
Proactive initiatives
initiatives forforoverseas
overseas development
development

 Revitalization
Revitalization ofof Shanghai
Shanghai BusinessBusiness Aggressive
Aggressive store
store expansion
expansion in
in Chongqing
Chongqing Further
Further training
training forfor foreignforeign national
national employees
employees
andand appointment
appointment toto overseas
overseas offices
offices

Copyright (c) 2010 LAWSON, INC. All rights reserved.

12

Improving Franchise Owner QSC
Mystery Shoppers Rankings
0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%
S

FY2005 1% 10%

22%

31%

36%
A

FY2006 1% 9%

22%

32%

B

36%

C
FY2007 1% 9%

25%

35%

FY2008 1% 12%

FY20091H FY2010

31%

19%

5%

14%

22%

35%

33%

28%

D or
under

30%

28%

33%

14%

19%

7%

Increase in S & A ranked shares

Enables initiatives for growth fields such as multi-formats

Copyright (c) 2010 LAWSON, INC. All rights reserved.

13

Structural Reforms of Procurement and Distribution
1H Achievements
Existing
value
chain

DistriDistribution
bution

R&D
R&D
Vendor
Procurement
Procurement
Rice balls &lunch boxes

Ability to sell out
merchandise

Factory

Production
Production

Chicken rice bowl (made with iodine-enriched
eggs)

Desserts

Sales
Sales

Premium Rolls

Higher gross profit
margins through bulk
purchase of ingredients

Processed foods…

2H Actions
Expand scope of bulk
purchase of ingredients

SPA-type
value chain

R&D
Procurement
R&D Procurement

Copyright (c) 2010 LAWSON, INC. All rights reserved.

Establish high-quality brands by collaborative
procurement and product development

Production
Production

DistriDistribution
bution

Sales
Sales
14

PRiSM
1H Achievements
Strengthen franchise owner operating capabilities

Products
Products ininstoresstoresGap

Merchandise
Merchandise
matchedmatched totolocation
location

Lost
Lost
sales
sales
opporopportunity
tunityImprove
Improve ownerownerprofitsandincrease
profits and increase
LAWSONLAWSON earnings
earnings

ReduceReduce lost
lost sales
sales
opportunities
opportunities inin terms
terms ofofvolumevolume andand coveragecoverage
Visualize
Visualize lost
lost sales
sales
opportunities
withopportunities with PRiSM
PRiSM

ReduceReduce lost
lost sales
sales
opportunities
opportunities inin terms
terms ofofqualityquality Develop
Develop products
products
matching
matching customer
customer needs
needs Provide
Provide store
store formats
formats
suitedtoeachsuited to each location
location
GIS
GIS

Store
charts

Improve
Improve orderingordering
accuracy
accuracy TargetTargetmerchandise
merchandise
assortments
assortments Projection
Projection
ordering
ordering
Improve
Improveprocurement
procurement Set
Set competitivecompetitive
pricesprices
Procure Procuredistinctive
distinctive
ingredients
ingredients

2H Actions
Strengthen product and store
development capabilities
Copyright (c) 2010 LAWSON, INC. All rights reserved.

ExpandExpand scope
scope toto reduce
reduceopportunity
lossesopportunity losses further
further

EnsureEnsure thethe whole
whole company
company is
is
aware
of
successful
practices
aware of successful practices
15

Strengthening Group Internal Controls
1H Achievements
Actions
Actions at
at LEM
LEM
Prevent
Prevent reoccurring
reoccurring ofof misconduct
misconduct under
under thethe Risk
Risk
Management
andCompliance
Committee,
incorporating
Management and Compliance Committee, incorporatingthethe third
third party
party investigating
investigating committee’scommittee’s recommendations.
recommendations.
 Implemented
Implemented compliancecompliance training
training andand promoted
promoted
complianceawareness
activities.
compliance awareness activities.
 Encouraged
Encouraged use
use ofof internalinternal whistleblower
whistleblower system.
system.
Regularly monitored
monitored progress
progress with
with countermeasurescountermeasures
 Regularly
Analyzed
risk
in
the
ticketbusiness.
 Analyzed risk in the ticket business.

Actions
Actions inin thethe LAWSONLAWSON GroupGroup Acquired
Acquired Ninety-nine
Ninety-nine Plus
Plus andand LEM.
LEM.
 EstablishedEstablished aa double-checking
double-checking procedure
procedure forforpayments.
payments.
 EstablishedEstablished aa Compliance
Compliance andand Risk
Risk Management
Management
Committee
Committee forfor thethe whole
whole group.
group.

2H Actions
 Implement fund risk management for the Group integrated fund management (Implemented from October 1, 2010) Formulated and adopted regulations for strengthening risk management at subsidiaries (Revised on October 1, 2010)

Copyright (c) 2010 LAWSON, INC. All rights reserved.

16

Fresh Food-type Stores
1H Achievements

Fresh
Fresh food-type
food-type
LAWSONLAWSON(Hybrid)(Hybrid)

LAWSONLAWSONSTORE100
STORE100

2H Actions
 Refurbished
Refurbished regular
regular LAWSONLAWSON storesstoresandand introduced
introduced fresh
fresh foods
foods

 No.
No. ofof store
store conversions
conversions
471
stores(1H)
471 stores (1H)
Improved
 Improved sales
sales fromfrom conversions
conversions
Approx.
Approx. 5%
5% point
point increase
increase Unfulfilled
Unfulfilled store
store opening
opening plan,
plan, partly
partlydue
due toto delayed
delayed conversion
conversion totosubsidiarysubsidiary (from(from February
February to
to July)July) Improvement
Improvement inin existing
existing store
store sales:
sales:
HigherHigher sales
sales year
year onon yearyear since
sinceAugustAugust 20102010
 Progress
Progress inin franchising:franchising: 52
52 stores
stores(1H)(1H)

Refurbish
Refurbish 1,000
1,000 storesstoresinin total
total forfor thethe fullfull year
year

AchieveAchieve 2H
2H storestoreopening
opening plan
plan
Franchise*Franchise* 150
150 storesstoresduringduring thethe year*
year**Includes*Includes franchisingfranchising ofofformerformer SHOP99
SHOP99 storesstoresIntroduce
Introduce PRiSM
PRiSM

Copyright (c) 2010 LAWSON, INC. All rights reserved.

17

Healthcare-type LAWSON Stores
1H Achievements<Convenience Stores With Prescription Pharmacies>

NATURAL LAWSON Shiroyama Trust Tower Store(Opened in August) Introduced NATURAL LAWSON health-oriented
products and healthcare products
 Enhanced consultation by pharmacists<Opened a Store Jointly With a Drug Store Chain>
LAWSON STORE100 Urayasu Higashino Store(Opened in July)
Trialing a one-stop shopping model combining a
convenience store with drug store

2H Actions
 Open and trial convenience stores with drug-dispensing pharmacies ⇒ Open a number of stores Open and trial stores jointly with a drug store chain ⇒ Develop a new store format
 Develop and trial stores selling OTC medications
Copyright (c) 2010 LAWSON, INC. All rights reserved.

18

In-store Kitchen-type Stores
1H Achievements
Opened 20 stores
Sold more than 200 fresh lunch boxes a day
Sold more than 100 fresh delicatessen items per day
Average daily sales of fresh lunch boxes and delicatessen items of approximately 100,000 yen
Investment efficiency: ROI of 25%(Model case)Succeeded in expanding customer base:
Approx. 15% increase in women in their 30s
and 40s

2H Actions
Increase store openings
Improve margins: Accelerated increase from 55% to 60%
Improve productivity per man-hourImprove investment efficiency
Copyright (c) 2010 LAWSON, INC. All rights reserved.

19

Overseas Development
2H Actions
Aggressive Expansion to Other Cities in Chain
Spread of Japanese-Style CVS Model (Unique Supply-Chain)Appointment of Foreign National Employees to Overseas Offices
Feasibility Study on Other Asian Countries

Shanghai
Chongqing

Copyright (c) 2010 LAWSON, INC. All rights reserved.

20

Cash Flow Allocation

Investment in Growth Fields
 Conversion of existing stores
into fresh food-type stores, etc.
 Healthcare In-store kitchens Overseas
 M&A, etc.

Shareholder Returns
 Increased dividends
 Treasury stock buybacks/
cancellations

ＲＯＩ

Copyright (c) 2010 LAWSON, INC. All rights reserved.

21

References

Copyright (c) 2010 LAWSON,INC. All rights reserved.

22

1H and 2H Breakdown of FY2010 Forecasts(Consolidated: Billions of yen)

Net sales of all stores
Operating profit
Operating profit ratio
Recurring profit
Net profit
Gross profit of existing stores (YoY)*
Net sales at existing stores (YoY)*

Gross profit margin ratio*

FY20101H Plan 1H Actual 2H Plan Full-Year Plan
844.0
837.8
817.2
1,655.0
27.9
30.1
20.4
50.5
3.3%
3.6%
2.5%
3.1%
27.1
29.6
19.5
49.1
13.0
12.2
9.8
22.0
99.5%
97.5%
30.9%

99.5% 100.5%
97.6% 99.5%
30.9% 30.8%

100.0%
98.6%
30.9%

Note: Italics mean revised figures.
* Non-consolidated

Copyright (c) 2010 LAWSON, INC. All rights reserved.

23

Capital Expenditure
1H FY2009
Actual1H FY2010
Actual

9.6
3.9
4.6
0.1

7.1
3.7
4.3
0.6

15.0
10.0
9.5
1.5

Subtotal for Capital
Expenditure

18.3

15.8

36.0

Depreciation

11.9

15.7

33.8

(Consolidated: Billions of yen)

New Stores
Existing Stores
IT-related
Other

FY2010 (Full-Year)

Plan

1) Depreciation for 1H FY2010 and FY2010 includes depreciation for leased property treated as a sale-and-purchasetransaction due to the application of new lease accounting standards.
2） Depreciation for 1H FY2010 and FY2010 includes amortization.
3) Payments due to the repayment of lease obligations for 1H FY2010 were 4.6 billion yen.

 Allocate funds for new store investments based on Group
store opening strategy
 Concentrate investment in existing stores on conversion to
fresh food-oriented stores
Copyright (c) 2010 LAWSON, INC. All rights reserved.

(Reference)(Reference)
ImpactImpact ofof consolidating
consolidating
Ninety-nine
Ninety-nine Plus
Plus Inc.
Inc.
(1H
FY2010)(1H FY2010)
CapitalCapital expenditure:
expenditure:
Approx.
Approx. 0.9
0.9 billion
billion yen
yen24