Flash Report on the Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending February 28, 2019
January 10, 2019
Listed Company Name: Lawson, Inc.
Tokyo Stock Exchange (First Section)
Code No.: 2651
(URL http://www.lawson.jp/en/ir)
Company Representative: Sadanobu Takemasu, President and CEO, Representative Director,
Chairman of the Board
Contact: Tomoki Takanishi, Deputy Senior Vice President, Finance and Accounting Division Director
Tel.: +81-3-5435-2773
Scheduled date for submission of quarterly securities report: January 11, 2019
Scheduled date for payment of dividend: －Supplementary materials for quarterly financial results: Yes
Holding of presentation of quarterly results: None
(Amounts less than one million yen are truncated)
1. Consolidated operating results for the third quarter ended November 30, 2018 (from March 1, 2018 toNovember 30, 2018)(1) Consolidated operating results (cumulative)
Note: Percentages represent increases (decreases) compared with the corresponding period of the previous fiscal
year.

For the third quarter ended
November 30, 2018
November 30, 2017
Note: Comprehensive income:Gross operating
revenue

Operating income

Ordinary income

Millionsof yen527,637
494,053

Millionsof yen47,80754,261Millionsof yen46,64153,781

%
6.8
6.9

%
(11.9)(5.9)

For the third quarter ended November 30, 2018
For the third quarter ended November 30, 2017%(13.3)(5.5)

Profitattributable toowners of parent
Millions%of yen25,319 (22.8)
32,795(3.1)

27,301 million yen
34,421 million yen(20.7)%
9.2%

Profit per share
Yen
253.05327.82

Diluted profit per share
Yen
252.92327.63

Total assets

Net assets

Millions of yen

Millions of yen

Shareholders’ equity
ratio%

November 30, 2018

1,351,971

283,742

20.5

February 28, 2018

900,256

281,446

30.6

For the third quarter ended
November 30, 2018
November 30, 2017(2) Consolidated financial position

As ofReference: Shareholders’ equity:
As of November 30, 2018
As of February 28, 2018277,728 million yen
275,658 million yen

2. Dividends
1Q
Yen
2017 fiscal year

－

1H
Yen
127.502018 fiscal year－

127.50

Annual dividends per share
3Q
Year-end
Yen
Yen－
127.502018 fiscal year (forecast)
Note: Revision of the most recent dividends forecast: None

Total
Yen
255.00－127.50

255.003. Forecast of consolidated operating results for the 2018 fiscal year ending February 28, 2019 (from March 1,
2018 to February 28, 2019)
Note: Percentages represent increases (decreases) compared with the corresponding period of the previous fiscal
year.
Profit attributable
Profit per
to owners of
shareparentMillions
Millions
Millions
Millions
%
%
%
%
Yen
of yenof yenof yenof yen2018 fiscal year
722,000
9.8
60,000(8.8) 57,000(12.5) 28,000
4.4 279.83
Note: Revision of the most recent consolidated operating results forecast: None
Gross operating
Operating income Ordinary income
revenue

4. Notes(1) Change in significant subsidiaries during the quarterly consolidated period (Changes in certain specified
subsidiaries resulting in changes in scope of consolidation): None
Added: None

Excluded: None

(2) Adoptions of specific accounting methods for preparing quarterly financial statements: None
(3) 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
(4) Number of shares outstanding (common stock)
1. Number of shares outstanding at the end of period (including treasury shares)
As of November 30, 2018:
100,300,000
As of February 28, 2018:
2. Number of treasury shares at the end of period
As of November 30, 2018:242,697

As of February 28, 2018:

3. Average number of shares during the period (cumulative nine months)
As of November 30, 2018:
100,056,896
As of November 30, 2017:

100,300,000

244,849
100,041,377

Note: This flash report is exempt from quarterly review.
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
achievement of said forecasts cannot be guaranteed. Actual results may be materially different from those in
the forecast as a result of various factors. For preconditions of these financial forecasts and notes concerning
their use, please refer to “1. Qualitative Information Regarding Quarterly Financial Results, (3) Explanation
Regarding Forward-looking Statements” on page 8.

Contents

1. Qualitative Information Regarding Quarterly Financial Results ·····························································

2(1) Explanation Regarding Consolidated Operating Results ······································································

2(2) Explanation Regarding Consolidated Financial Position ·····································································

8(3) Explanation Regarding Forward-looking Statements ···········································································

8

2. Consolidated Financial Statements and Main Notes ··················································································

9(1) Consolidated Balance Sheet ···············································································································

9(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ·················

11

Consolidated Statement of Income ······································································································

11

Consolidated Statement of Comprehensive Income ·············································································

12(3) Notes to Consolidated Financial Statements ························································································

13(Going Concern Assumption) ·············································································································

13(Notes to Significant Changes in the Amount of Shareholders’ Equity) ···············································

13(Changes in Accounting Policies)········································································································

131

1．Qualitative Information Regarding Quarterly Financial Results(1) Explanation Regarding Consolidated Operating Results
During the third quarter of fiscal 2018, nine months from March 1 to November 30, 2018, we have advanced
and accelerated our “1000-Day Action Plan,” which is in its final fiscal year, and focused our business activities
on building Lawson’s next-generation convenience store model. Changes in community needs resulting froman aging population and the prevalence of the nuclear family, among others, are serving as a tailwind for theconvenience store industry. Meanwhile, competition is intensifying across sector lines, constantly spurring us
to take swift action. Given such a business environment, we have made efforts to evolve our business model asa manufacturing retailer targeting small catchment areas and to raise our store productivity to an unprecedented
level toward our ongoing goal of fulfilling our customers’ needs in everyday life by serving as an essential partof their communities. We intend to aim for further progress forward to achieve this goal.
As a result, for the third quarter of fiscal 2018 on a consolidated basis, gross operating revenue increased to527,637 million yen (up 6.8% from previous fiscal year), operating income decreased to 47,807 million yen(down 11.9% from previous fiscal year) and ordinary income decreased to 46,641 million yen (down 13.3% fromprevious fiscal year). Profit attributable to owners of parent decreased to 25,319 million yen (down 22.8% fromprevious fiscal year).
Furthermore, we also focused on addressing operating risks based on the 2018 Basic Policy for Improvementof Internal Control Systems. We will continue promoting internal control even more.
Operating results by business segment were as follows:(Domestic Convenience Store Business)
In our convenience store business, we offered everyday ready-made dishes including bento lunchboxes, riceballs, deep-fried items, salads and soups at LAWSON stores. In our effort to reinforce our store capacity by
expanding our merchandise assortment offered in the evening and nighttime hours, we restructured our system
across the entire supply chain from June by changing the order placement deadline and truck delivery times. In
addition, with the aim of facilitating cash register operations and achieving higher cash-handling efficiency atstores, we are accelerating the introduction of new point-of-sale (POS) cash registers (for sales information
management) equipped with an automatic change dispenser function at all our stores nationwide. Planning tocomplete the introduction by the end of the fiscal year ending February 2019, we have installed the cash registers
at 12,778 stores as of the end of November 2018.
[Store Operations]
In store operations, we continued to focus on reinforcing adherence to the Three Essential Practices, whichemphasizes (1) serving customers courteously; (2) offering a merchandise assortment focused on basic itemswith high demand; and (3) keeping our stores and communities clean. Furthermore, we also actively promoted
our stores by strengthening our product lineup and improving operations and franchise support by headquarters.
As part of our efforts to enhance customer convenience and store operation productivity, in April 2018 welaunched a pilot project on LAWSON Smartphone Payment, our mobile self-service payment service option
based on a dedicated app, which allows customers to purchase items wherever they are within LAWSON stores.
The project will be expanded in phases to 100 stores by the end of the fiscal year ending February 2019, mostly
2

in large cities. Furthermore, beginning in November 2018, we also added a service in which customers can earn
and redeem Ponta points when they use Apple Pay at any LAWSON store nationwide. Ponta has become
Japan’s first multi-partner loyalty card service to allow points to be saved and redeemed simply by using Apple
Pay via iPhone or Apple Watch. This service eliminates the need for customers to present their Ponta card orlaunch their app as well as the need for store staff to scan the barcodes on the Ponta cards presented, leading to
improved customer convenience and store operation productivity.

[Merchandising and Service Strategies]
On the merchandise side, we revamped our original “Onigiri-ya” rice ball brand in October 2018 byadopting a new variety of rice and a new kind of laver as well as improving ingredients and production methods,
which was well-received by customers. In addition, our “Akuma-no-onigiri” (meaning “devil’s rice ball”) line
also became a huge hit, pushing up sales. Our “Korega” lunchbox series made with rigorously selected
ingredients and production methods also enjoyed ongoing popularity. Furthermore, sales of hot noodles, suchas our microwavable “Konshin-no-Ippai” (meaning “complete devotion”) ramen noodles revamped with newsoup and noodles, were also robust. In November 2018, we launched the “Nabe-shime Series,” a lineup of
convenient single-serving hot pot dishes containing the recommended amount of vegetables per meal *1 alongwith rice gruel or noodles to be enjoyed last as shime (meaning “the end”).
In the counter fast food range, we sold limited-quantity deep-fried breaded chicken tenderloin with cheeseand green shiso leaf and deep-fried breaded oysters produced in Hiroshima, while also strengthening ourassortment of ready-made dishes offered during the evening and nighttime hours by expanding our lineup of
packed dishes composed mainly of items that can go straight to the dinner table. In July 2018, in celebration of
our long-selling “Karaage-kun” chicken nuggets crossing the 3-billion-unit mark in cumulative sales, welaunched TV commercials and a sales promotional campaign during which an extra piece was added to eachserving. The item continued to record robust sales as a popular product.
In the dessert range, in October 2018 we revamped our popular long-selling product “Uchi Café Premium
Roll Cake” by changing the cream recipe, while also separately releasing the cream used for the Premium Roll
Cake in a limited quantity. Both items were well-received. From the “Uchi Café SWEETS X GODIVA” series,
we launched the series’ first drink item, “Hot Chocolate,” as well as “Fondant au Chocolat,” which is best
enjoyed heated. Both items were hugely popular, especially among female customers.
On our sales promotion side, while strengthening our merchandise assortment offered during the evening
and nighttime hours, we also rolled out a special evening sales campaign, which offered a 20-yen discountwhen two applicable counter food items were purchased on weekday evenings. In addition, effective measures
to attract customers were launched, including a speed lottery capitalizing on our strength in the entertainment
field and “Autumn Rilakkuma Stamp Campaign” offered exclusively to Ponta and d-point members.
*1 Recommended daily vegetable requirement: 350 g or more (Source: Health Japan 21, Ministry of Health,Labour and Welfare)3

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

Product categories
Processed foods

Previous 3rd Quarter
From March 1, 2017
to November 30, 2017
Net sales
Percentage of(Millions of yen)
total (%)
862,096
52.8

Current 3rd Quarter
From March 1, 2018
to November 30, 2018
Net sales
Percentage of(Millions of yen)
total (%)
910,057
52.6

Fast foods

385,984

23.6

414,901

24.0

Daily delivered foods

237,74714.6

251,887

14.5

Non-food products

146,945

9.0

154,7648.9

1,632,773

100.0

1,731,611

100.0

Total

(Note) These figures include stores operated by both Lawson, Inc. and Lawson Sanin, Inc.

[Store Development]
In opening new stores, the Group continued to focus on developing profitable stores.
Regarding the entire Lawson Group, the total number of LAWSON, NATURAL LAWSON, and LAWSONSTORE100 stores opened and closed during the current fiscal year stood at 818 and 286 stores, respectively,
with the total number of stores reaching 14,524 as of the end of November 2018. *2
With regard to our partnership initiatives with other chain retailers in Japan, as in the previous fiscal year,
we are remodeling THREE F stores operated by Three F Co., Ltd. into LAWSON THREE F stores, and SAVE
ON stores operated by Save On Corp. into LAWSON stores.
With regard to THREE F stores, 259 stores were remodeled into LAWSON THREE F stores from August
2017 to November 2018. Meanwhile, a total of 181 SAVE ON stores were remodeled into LAWSON storesfrom March to November 2018, with the brand transition scheduled to be completed by the end of the current
fiscal year ending February 2019.
In an effort to establish convenience store models catered to an aging population and rising healthconsciousness, we are building partnerships with dispensing pharmacy and drug store chains to operate
healthcare-oriented LAWSON stores that offer over-the-counter pharmaceuticals and prescription drugs, aswell as a wider assortment of cosmetics and daily necessities than conventional LAWSON stores. The numberof stores offering non-prescription drugs has reached 197 stores (includes 45 pharmacy LAWSON stores
equipped with drug-dispensing pharmacies) as of the end of November 2018. Moreover, the number of stores
offering nursing care consultation services has reached 18 as of the end of November 2018. Furthermore, wehave also been expanding our chain of “in-hospital LAWSON stores,” which feature strengthened focus on
medical, sanitary, nursing and rehabilitation supplies in addition to merchandise and services offered at standard
convenience stores. The number of such stores has reached 306 as of the end of November 2018. Building on
our expertise developed through operation of in-hospital LAWSON stores, we will continue supporting thewell-being of people and society.
With respect to LAWSON STORE100, we will continue to offer 100-yen items (excluding tax) by scaling
down product portions to respond to a diverse range of customer needs.
*2 The numbers of store openings and closings and total number of stores in Japan include stores operated4

by Lawson, Inc., subsidiary Lawson Sanin, Inc. and three equity-method affiliates, Lawson Kochi, Inc.,
Lawson Minamikyushu, Inc. and Lawson Okinawa, Inc.

[Change in the Total Number of Domestic Stores]
Total stores as ofFebruary 28, 2018

Change during
periodTotal stores as ofNovember 30, 2018

13,044547

13,591

NATURAL LAWSON

143

(2)

141

LAWSON STORE100

805

(13)

792

13,992532

14,524

LAWSON

Total(Note) These figures include stores operated by Lawson, Inc., subsidiary Lawson Sanin, Inc. and equitymethod affiliates, Lawson Kochi, Inc., Lawson Minamikyushu, Inc. and Lawson Okinawa, Inc.

[Number of LAWSON stores by prefecture (As of November 30, 2018)]
Prefecture

Numberof stores

Hokkaido

667

Ibaraki

220

Kyoto

340

Ehime

220

Aomori

259

Tokyo

1,733

Shiga

158

Tokushima

136

Akita

191

Kanagawa

1,116

Nara

139

Kochi

139

Iwate

175

Shizuoka

274

Wakayama

151

Fukuoka514

Miyagi250

Yamanashi

133

Osaka

1,146

Saga

75

Yamagata

111

Nagano

177

Hyogo

678

Nagasaki

108

Fukushima

150

Aichi

715

Okayama

200

Oita

184

Niigata

231

Gifu

178

Hiroshima

230

Kumamoto

156

Tochigi

200

Mie

139

Yamaguchi

118

Miyazaki

108

Gunma

235

Ishikawa

105

Tottori

143

Kagoshima

197

Saitama693

Toyama193

Shimane147

Okinawa

230

Chiba

616

Fukui

113

Kagawa133

Total(domestic)

14,524Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Numberof stores(Note) These figures include stores operated by Lawson, Inc., subsidiary Lawson Sanin, Inc. and equitymethod affiliates, Lawson Kochi, Inc., Lawson Minamikyushu, Inc. and Lawson Okinawa, Inc.

[Other]As Lawson’s “last-one-mile solution,” we started offering the LAWSON FRESH PICK service (colloquiallyshortened to “Loppick”) in March 2018. Loppick enables customers to reserve products on a dedicated smartphone
app by 8 a.m. and receive them after 6 p.m. on the same day at their designated LAWSON store. By leveraging
our existing store and logistics network, the service offers customers the freedom of not having to wait at homefor delivery and allows them to pick up their purchased items when they want in the evening. Approximately 600
kinds of items can be purchased ranging from perishable foods and seasonings to meal kits for easy cooking in
addition to products from Seijo Ishii and other specialty stores. Loppick has been well-received, especially by5female customers, and has become available at around 1,600 stores as of the end of November 2018, with more
stores scheduled to offer the service.
As a result, Domestic Convenience Store Business posted gross operating revenue of 357,199 million yen (up6.2% from previous fiscal year) and segment profit of 39,807 million yen (down 12.4% from previous fiscal year).
(Seijo Ishii Business)
The number of directly operated Seijo Ishii stores, a high-end supermarket chain offering quality foods, reached
145 as of the end of November 2018. Sales were solid and its well-selected products have remained popular amongcustomers. By continuing to leverage the company’s strengths including its product development expertise, knowhow acquired as a manufacturing retailer, and retailing techniques, we will endeavor to enhance the brand capacityof Seijo Ishii.
As a result, Seijo Ishii Business posted gross operating revenue of 63,062 million yen (up 6.0% from previous
fiscal year) and segment profit of 4,852 million yen (up 7.5% from previous fiscal year).
(Entertainment-related Business)
With regard to our Entertainment-related Business, the ticketing business of Lawson Entertainment, Inc.,
which forms the core of the business, continued to secure top-class transaction value in the ticketing industry.
HMV, which distributes music CDs, DVDs and books, also operates the HMV Record Shop specializing inanalog records. As of the end of November 2018, the number of HMV stores totaled 56 including the HMV
Record Shop. In November 2018, United Cinemas Co., Ltd., an operator of cinema complexes, introduced in
Fukuoka Prefecture a cutting-edge attraction theater system known as 4DX, which offers an immersive viewing
experience. In addition, United Cinemas also opened Kyushu’s first cinema theater employing ScreenX, which
provides a three-dimensional movie projection system using not only the front screen but also the walls on bothsides. As of the end of November 2018, United Cinemas operates cinema theaters at 42 sites, offering 368 screens
nationwide including those operated on commission.
As a result, Entertainment-related Business posted gross operating revenue of 57,760 million yen (up 1.5%
from previous fiscal year) and segment profit of 3,354 million yen (up 6.9% from previous fiscal year).
(Financial Services Business) *3
With respect to our Financial Services Business, Lawson Bank, Inc. acquired its banking license on August
10, 2018 and started providing banking services to customers on October 15. With the aim of building
awareness of the bank, we have been running TV and online commercials, implementing promotional
campaigns in which ATM users receive discount coupons for “Karaage-kun” fried chicken and “MACHI Café,”
and started offering ordinary savings account and fixed deposit account services. In our ATM business, thefoundation of our banking business, we expanded our network of financial institution partners, while working
to install ATMs at locations other than LAWSON stores, including the new ATMs installed at New Chitose
Airport and Tokyo Metro. As of the end of November 2018, the number of ATMs installed nationwide reached6

13,330 (up 597 from previous fiscal year), with each ATM used 49.4 times a day on average. The total numberof our financial institution partners increased to 106 nationwide (up 16 from previous fiscal year), including
online banks.*4,*5*3 Starting from the third quarter ended November 30, 2018, our Financial Services Business, which had
been included in the Other Business, has been reclassified as a separate reportable segment due to its
increased significance.
*4 JA Bank and JF Marine Bank are classified as separate financial institutions.
*5 Lawson Bank Preparatory Company, Inc. changed its name to Lawson Bank, Inc., effective July 2, 2018.
As a result, Financial Services Business posted gross operating revenue of 22,547 million yen (up 9.7% fromprevious fiscal year) and segment profit of 1,753 million yen (down 49.0% from previous fiscal year).
(Other Business)
In addition to the aforementioned businesses, the Group is also involved in the Overseas Business.
With regards to Overseas Business, the Group’s operating companies opened LAWSON stores in the People’s
Republic of China, Thailand, Indonesia, the Philippines, and the United States of America (Hawaii).
In the People’s Republic of China, after being the first Japanese convenience store operator to advance into
Shanghai, we made inroads into Chongqing, Dalian, Beijing, Wuhan, and Nanjing. In June 2018, the number ofstores exceeded 1,000 in Shanghai and its neighboring regions, and continued to increase steadily. The number of
LAWSON stores in the entire country reached 1,856 as of the end of November 2018.
[Distribution of LAWSON Brand Stores Overseas by Region]

Country/Region

Number of stores

Change during

Number of stores(As of February 28,

period(As of November

2018)30, 2018)

China

Shanghai and surrounding area

865

265

1,130

China

Chongqing

165

30

195

China

Dalian

122

16

138

China

Beijing

73

27

100

China

Wuhan

198

84

282

China

Hefei

－

11

11

Thailand

101

17

118

Indonesia

37

－

37

Philippines

33

2

35

2

－

2

1,596

452

2,048

United States of America

HawaiiTotal

As a result, Other Business posted gross operating revenue of 33,585 million yen (up 25.1% from previous
fiscal year) and segment loss of 1,959 million yen (down 14.5% from previous fiscal year).

7(2) Explanation Regarding Consolidated Financial Position
Current assets increased by 399,819 million yen from the end of the previous fiscal year to 631,679 million
yen, mainly reflecting an increase of 359,383 million yen in cash and deposits including cash for refillingATMs. Non-current assets increased by 51,896 million yen from the end of the previous fiscal year to 720,291
million yen, mainly reflecting an increase of 26,746 million yen in property and store equipment and anincrease of 17,501 million yen in investments and other assets. Consequently, total assets increased by
451,715 million yen from the end of the previous fiscal year to 1,351,971 million yen.
Current liabilities increased by 231,051 million yen from the end of the previous fiscal year to 610,274
million yen, mainly reflecting an increase of 108,410 million yen in short-term loans payable, an increase of
55,751 million yen in accounts payable-other and an increase of 49,425 million yen in current portion of longterm loans payable. Non-current liabilities increased by 218,367 million yen from the end of the previous
fiscal year to 457,955 million yen, mainly reflecting an increase of 204,530 million yen in long-term loans
payable. Consequently, total liabilities increased by 449,419 million yen from the end of the previous fiscal
year to 1,068,229 million yen.
Net assets increased by 2,295 million yen from the end of the previous fiscal year to 283,742 million yen,mainly reflecting an increase of 2,324 million yen in valuation difference on available-for-sale securities.
Consequently, shareholders’ equity ratio was 20.5%, down from 30.6% as of the end of the previous fiscal
year.

(3) Explanation Regarding Forward-looking Statements
The financial forecasts remain unchanged from those announced on October 11, 2018.

8

2. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheet
As of February 28, 2018 and November 30, 2018
(Millions of yen)

AssetsCurrent assets:
Cash and deposits
Accounts receivable-due from franchised stores
Lease receivables
Merchandise
Accounts receivable-other
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets:
Property and store equipment:
Buildings and structures, net
Tools, furniture and fixtures, net
Leased assets, net
Other, net
Total property and store equipment
Intangible assets:
Software
Goodwill
Trademark right
Other
Total intangible assets
Investments and other assets: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

9Previous fiscal year
As of
February 28, 2018

Current 3rd Quarter
As ofNovember 30, 201830,124
46,59916,426
18,913
82,6333,411
33,779(28)
231,860

389,508
49,62919,341
22,105
109,9992,993
38,163(61)
631,679

197,979
16,355
123,940
11,660349,935

210,016
16,672
137,969
12,023376,682

41,602
47,947
10,074573
100,197

49,69947,955
9,612
577
107,844

47,425
100,686
24,406
46,840(1,095)
218,262
668,395
900,256

48,751102,051
24,332
61,471(842)
235,764
720,291
1,351,971

(Millions of yen)

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
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 adjustment
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

10Previous fiscal year
As of
February 28, 2018

Current 3rd Quarter
As ofNovember 30, 2018

118,174
36,340575
33,06360,7416,880
109,629
3,767
10,051
379,222

134,672
144,750
50,00036,914116,492
3,776
106,350
2,935
14,382
610,274

55,469113,6172,616

260,000
125,595
3,013

271

292

13,781
29,062
24,767
239,587
618,809

14,73830,651
23,662457,955
1,068,229

58,506
46,689166,124(1,040)270,280

58,506
46,983
165,930(1,032)
270,388

2,084
(575)
4,595
(726)
5,377
195
5,593
281,446
900,256

4,408
(575)
4,263
(756)
7,339
220
5,793
283,742
1,351,971

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
For the third quarter of the fiscal year ended February 28, 2018 and the third quarter of the fiscal year ending
February 28, 2019
(Millions of yen)

Gross operating revenue
Net sales
Cost of sales
Gross profit
Operating revenue:
Income from franchised stores
Other operating revenue
Total operating revenue
Operating gross profit
Selling, general and administrative expenses
Operating income
Non-operating income:Interest income
Share of profit of entities accounted for using equity
methodOther
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 shares of subsidiaries and associates
extraordinary
incomeGain Totalon salesof shares of subsidiaries
and associates
Extraordinary losses:
Loss on retirement of non-current assets
Impairment loss
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

11

Previous 3rd Quarter
From March 1, 2017
to November 30, 2017494,053
196,419
135,518
60,901

Current 3rd Quarter
From March 1, 2018
to November 30, 2018527,637
216,485
149,377
67,108219,975
77,658297,633
358,535
304,273
54,261

230,683
80,468311,151
378,260
330,452
47,807

540

576

567

602

1,758
2,865

1,720
2,899

1,485
964
895
3,346
53,781

1,757
1,267
1,040
4,065
46,641

302
302

－
－

1,962
1,073
256
3,292
50,791
14,064
3,653
17,71733,073277
32,795

2,843
1,403
417
4,664
41,976
15,042
1,606
16,64925,327
7
25,319

Consolidated Statement of Comprehensive Income
For the third quarter of the fiscal year ended February 28, 2018 and the third quarter of the fiscal year ending
February 28, 2019
(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
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

12

Previous 3rd Quarter
From March 1, 2017
to November 30, 201733,073Current 3rd Quarter
From March 1, 2018
to November 30, 201825,327

1,420
(186)
113
1,347
34,421

2,324
(320)
(29)
1,974
27,301

34,109312

27,28119

(3) Notes to Consolidated Financial Statements(Going Concern Assumption)
Not Applicable.

(Notes to Significant Changes in the Amount of Shareholders’ Equity)
Not Applicable.

(Changes in Accounting Policies)
The Company’s foreign consolidated subsidiaries are applying International Financial Reporting Standard
15 (IFRS 15) “Revenue from Contracts with Customers” from the first quarter of the fiscal year ending
February 28, 2019.
The impact of the application of IFRS 15 on the Company’s consolidated financial statements is immaterial.

13