Flash Report on the Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending February 28, 2022
July 8, 2021
Listed Company Name: Lawson, Inc.
Tokyo Stock Exchange (First Section)
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 submission of quarterly securities report: July 13, 2021
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 first quarter ended May 31, 2021 (from March 1, 2021 to May 31, 2021)(1) Consolidated operating results (cumulative)
Note: Percentages represent increases (decreases) compared with the corresponding period of the previous fiscal
year.

For the first quarter ended

Gross operating
revenue
Millions%of yen169,2648.9
155,360 (13.1)

May 31, 2021
May 31, 2020
Note: Comprehensive income:Operating income

Ordinary income

Millionsof yen10,617
2,623

Millionsof yen10,397
1,208

%
304.6
(81.6)For the first quarter ended May 31, 2021
For the first quarter ended May 31, 2020%
760.1
(91.0)

8,615 million yen(1,787) million yen

Profit per share

Diluted profit per share

Yen
56.33
(41.82)

Yen
56.29
－

For the first quarter ended
May 31, 2021
May 31, 2020

Profit attributable toowners of parent
Millions%of yen5,637－(4,185)－－%－%(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen

Shareholders’ equity
ratio%

May 31, 2021

1,413,020

274,059

19.0

February 28, 2021

1,365,430

272,931

19.6

As of

Reference: Shareholders’ equity:
As of May 31, 2021
As of February 28, 2021

268,745 million yen
267,632 million yen

2. Dividends
1Q
Yen
2020 fiscal year－

2021 fiscal year－

2021 fiscal year (forecast)

Annual dividends per share
1H
3Q
Year-end
Yen
Yen
Yen
75.00
－
75.00

Total
Yen
150.0075.00

150.00Note: Revision of the most recent dividends forecast: None

－

75.00

3. Forecast of consolidated operating results for the 2021 fiscal year ending February 28, 2022 (from March 1,
2021 to February 28, 2022)
Note: Percentages represent increases (decreases) compared with the corresponding period of the previous fiscal
year.
Gross operating
Profit attributable Profit per
Operating income Ordinary income
revenueto owners of parent share
Millions
Millions
Millions
Millions
%
%
%
%
Yen
of yenof yenof yenof yen1H of 2021 fiscal year
358,000 10.9
26,500 58.8
24,500 64.8
13,000 293.0
129.912021 fiscal year
728,000
9.3
50,000 22.3
45,000 19.6
13,50055.4
134.90Note: Revision of the most recent consolidated operating results forecast: None
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: None
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 May 31, 2021:
100,300,000
As of February 28, 2021:
2. Number of treasury shares at the end of period
As of May 31, 2021:
231,208

As of February 28, 2021:

3. Average number of shares during the period (cumulative three months)
As of May 31, 2021:
100,068,636
As of May 31, 2020:

100,300,000

232,954

100,062,205

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 9.

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 ···········································································

9

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

10(1) Consolidated Balance Sheet ···············································································································

10(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ·················

12

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

12

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

13(3) Notes to Consolidated Financial Statements ························································································

14(Going Concern Assumption) ·············································································································

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

14(Additional Information) ····················································································································

141

1．Qualitative Information Regarding Quarterly Financial Results(1) Explanation Regarding Consolidated Operating Results
During the first quarter of fiscal 2021, from March 1 to May 31, 2021, we continued to take rigorous
prevention measures against the infection of the novel coronavirus and responded to new normal demand byexerting concerted Group-wide efforts. Specifically, under the leadership of our Lawson Group Sweeping
Transformation Executive Committee, which was launched in September 2020 to realize “Challenge 2025”
formulated for 2025, the 50th anniversary of our establishment, we renovated our stores and revamped our
product lineups to address the changes in the business environment, and endeavored to resolve medium- tolong-term issues for sustainable growth, acquisition of new revenue opportunities and foster job satisfaction.
As a result, for the first quarter of fiscal 2021 on a consolidated basis, gross operating revenue increased to169,264 million yen (up 8.9% from previous fiscal year), operating income increased to 10,617 million yen(up 304.6% from previous fiscal year) and ordinary income increased to 10,397 million yen (up 760.1% fromprevious fiscal year). Profit attributable to owners of parent was 5,637 million yen (Loss attributable to ownersof parent was 4,185 million yen in previous fiscal year).
Furthermore, we also focused on improving our group-wide internal control system and addressing
operating risks based on the 2021 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 first quarter under review, the number of new COVID-19 cases began an upward trend,
prompting the declaration of the third state of emergency in April 2021. While vaccination proceeded among
healthcare workers, the overall inoculation rate in Japan remained low, resulting in legal and voluntary
restrictions being imposed on a variety of social activities.
Since last year, Lawson has been proceeding with store renovation by carefully examining the businessenvironment surrounding each store and customizing the refurbishment to suit the circumstances in order tohelp our stores take rigorous infection prevention measures, adapt to changes taking place in the new normal
business environment, and better address customer needs.
In store operation, we are striving to establish LAWSON stores as convenience stores endorsed by all ourcustomers. To this end, we are implementing measures to achieve our three commitments, namely, to pursue
compelling taste, to be considerate to people, and to be environmentally friendly. By developing distinctive
products that are compellingly delicious and health-conscious, we are aiming to further reinforce our productlineup, while rigorously working to offer thoughtful customer service at our stores and ensure environmental
friendliness by reducing food waste, the use of plastics and CO2 emissions, etc.

[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

2

with high demand; and (3) keeping our stores and communities clean. In our efforts to respond to customer needs
and increase sales, we also focused on expanding our merchandise assortment to respond to changes in consumer
lifestyles and values, such as offering items subject to heightened demand amid the COVID-19 crisis. Furthermore,
we kept up our initiatives to increase the profitability of franchise stores, including helping them streamline theirstore operation and reduce costs associated with food waste and utility expenses.

[Merchandising and Service Strategies]
Sales continued to surge in fresh foods, frozen foods, daily delivered foods, room temperature
Japanese/Western desserts, and alcoholic beverages, whose assortments we have been endeavoring to expand withthe aim of supporting the daily lives of customers. In the rice range, our “Korega BENTO” box lunch series proved
to be highly popular after it was revamped as a long-lasting chilled range in March 2021, and our “Kinshari Onigiri
Rice Ball” series also enjoyed robust sales. Among the fast-food counter items, our regular products such as our“Kara-age-kun” chicken nuggets—marking the 35th anniversary of their debut—and our “Torikara” chicken fries
recorded strong sales. Partly owing to customers having less opportunities to go out, the Machikado Chubo instore kitchen service enjoyed especially strong demand for items offered in collaboration with food service
companies that provide delicious dishes from specialty restaurants. Machikado Chubo in-store kitchens are
installed at approximately 6,700 stores as of the end of May 2021, achieving sales growth even amid thecoronavirus crisis. In response to the ongoing high demand, we are installing the kitchen at more stores.
In food delivery service, for which needs have been growing owing to the COVID-19 crisis, we started offering
delivery service through Wolt in April 2021 in addition to Uber Eats and foodpanda. As a result, the combined
number of stores listed on food delivery services reached 1,635 in 28 prefectures as of May 31, 2021. In addition,
Uber Eats started delivering over-the-counter (OTC) drugs sold at 12 LAWSON stores in 4 prefectures as the first
OTC drugs included in Uber Eats’ lineup in Japan.

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

Product group
Processed foods

Previous fiscal year
From March 1, 2020
To May 31, 2020
Sales
Percentage(Millions of yen) of total (%)
285,751
54.1

Current fiscal year
From March 1, 2021
to May 31, 2021
Sales
Percentage(Millions of yen)of total (%)
296,214
54.3

Fast foods

111,72121.1

116,453

21.3

Daily delivered foods

85,904

16.3

85,667

15.7

Nonfood products

44,8198.5

47,602

8.7

Total

528,197100.0

545,938

100.0[Store Development]
In opening new stores, the Group continued to focus on developing profitable stores.
During the first quarter under review, the total number of LAWSON, NATURAL LAWSON and LAWSONSTORE100 stores opened in Japan stood at 190 stores. Meanwhile, we closed a total of 54. As of the end of May
2021, the total number of domestic stores was 14,612.* Based on the joint business agreement concluded with
POPLAR Co., Ltd. in September 2020, we converted 116 stores from its brand to the LAWSON POPLAR or
3

LAWSON brand stores.
In an effort to establish convenience store models catered to an aging population and a trend toward selftreatment, we are building partnerships with dispensing pharmacy and drug store chains to operate 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 252 stores (includes 52 pharmacy LAWSON stores equipped withdrug-dispensing pharmacies) as of the end of May 2021. Moreover, the number of stores offering nursing careconsultation services has reached 23 as of the end of May 2021. Furthermore, we have also been expanding
our chain of “in-hospital LAWSON stores,” which feature strengthened focus on medical, sanitary, nursing
and rehabilitation supplies in addition to merchandise and services offered at standard convenience stores. The
number of such stores has reached 336 as of the end of May 2021. Building on our expertise developed throughoperation of in-hospital LAWSON stores, we will continue to support the lives of all people interacting withhospitals.
With the aim of supporting our customers’ beauty, health, and comfortable lifestyles, our NATURALLAWSON stores offer an exclusive assortment of items including original products adopting select ingredients
as well as products produced in collaboration with renowned brand names. Meanwhile, our LAWSONSTORE100 meets customers’ needs with a wide-ranging assortment of products sold at the value-for-money
price of 100 yen, including fresh fruit and vegetables, daily delivered fresh foods, prepared dishes, beverages,
and daily necessities. The stores are visited by customers of all ages including children and the elderly, andsingle people and homemakers, in particular. As of the end of May 2021, we operate 141 NATURALLAWSON stores and 674 LAWSON STORE100 stores.
* The numbers of store openings and closings and total number of stores in Japan include stores operated by
Lawson, 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, 2021

Change during
period13,654143

13,797

NATURAL LAWSON

143

(2)

141

LAWSON STORE100

679

(5)

674

14,476

136

14,612LAWSON

Total

4

Total stores as of
May 31, 2021

[Number of LAWSON stores by prefecture (As of May 31, 2020)]
Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Numberof stores

Hokkaido679

Ibaraki

222

Kyoto

319

Ehime

212

Aomori

278

Tokyo

1,709

Shiga

155

Tokushima

135

Akita

183

Kanagawa

1,079

Nara

139

Kochi

139

Iwate

183

Shizuoka

282

Wakayama

152

Fukuoka527

Miyagi257

Yamanashi

138

Osaka

1,121

Saga

75

Yamagata

113

Nagano

174

Hyogo

663

Nagasaki

120

Fukushima

171

Aichi

723

Okayama

228

Oita

197

Niigata

227

Gifu

182

Hiroshima

289

Kumamoto

162

Tochigi

200

Mie

137

Yamaguchi

128

Miyazaki

111

Gunma

242

Ishikawa

105

Tottori

139

Kagoshima

201

Saitama694

Toyama186

Shimane142

Okinawa
249
Total
Chiba
603
Fukui
109
Kagawa133
14,612(domestic)(Note) These figures include stores operated by Lawson, Inc. and equity-method affiliates, Lawson Kochi, Inc.,
Lawson Minamikyushu, Inc. and Lawson Okinawa, Inc.

[Other]Lawson, Inc. entered into a comprehensive business alliance agreement with H2O Retailing Corporation on
May 7, 2021 with the objective of enhancing corporate value by drawing on the strengths of both parties andpromoting the creation of sustainable communities. A total of 98 station stores and convenience stores operated
by asnas Co., Ltd., an H2O Retailing Corporation Group company, will be converted from “asnas” stores into
Lawson stores in phases starting July 2021. In addition to this, we will hold specific discussions with regard tovarious areas such as products, logistics, marketing and sustainability.
Under the Lawson Group Sweeping Transformation Executive Committee, efforts are underway to refine our
supply chains and minimize food waste by utilizing digital technology and to achieve centralized management
and effective utilization of the membership data owned by Group companies.
Some of our Care-focused LAWSON stores, which are equipped with a nursing care consultation desk and asalon space, started offering a face-to-face consultation service to help people book their COVID-19 vaccination
appointments.
Lawson was included in the 2021 Health & Productivity Stock Selection for the fourth time in a program jointly
run by the Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange (TSE) that aims torecognize enterprises for their efforts to promote employee health. METI also recognized Lawson for the fifth
time under the 2021 Certified Health & Productivity Management Outstanding Organizations Recognition
Program. In addition, Lawson was selected as a Nadeshiko Brand by METI and the TSE for the sixth time, which
is more than any other company in the retail sector. The Nadeshiko Brand program acknowledges listed companies
that take superior steps to help female employees demonstrate their full potential.

5As a result, Domestic Convenience Store Business posted gross operating revenue of 104,984 million yen(up 2.1% from previous fiscal year) and segment profit of 6,622 million yen (up 202.8% from previous fiscal
year).

(Seijo Ishii Business)
Seijo Ishii provides customers with well-selected, safe, and reliable foods under its philosophy of “Quality
food for a quality life.” Operating diverse store formats including street-side stores and stores in stationbuildings and commercial facilities, the supermarket chain leverages its distinguished product development
expertise to offer original products and food items made in-house under the Seijo Ishii brand. The number of
directly operated Seijo Ishii stores reached 164 as of the end of May 2021.
The state of emergency declared in April pushed up demand at supermarkets. Demand for perishables
including fruit and vegetables as well as meat and fish grew, especially at street-side stores. Dishes produced
in-house at Seijo Ishii’s central kitchen also enjoyed strong sales. The recovery trend in demand at stores instation buildings and commercial facilities is continuing. We are striving to elevate the brand power of Seijo
Ishii by pursuing higher standards in our product development expertise, know-how acquired as amanufacturing retailer, and retailing techniques.

As a result, Seijo Ishii Business posted gross operating revenue of 27,410 million yen (up 9.1% fromprevious fiscal year) and segment profit of 2,943 million yen (up 12.5% from previous fiscal year).

(Entertainment-related Business)
Our Entertainment-related Business undertaken by Lawson Entertainment, Inc. saw a slowdown in therecovery of its ticket transaction value in the ticketing business due to the impact of the state of emergency
declared in April. However, we drew on our experience last year and secured venues where events could beheld amid restrictions imposed on admissions. As a result, ticket transaction values showed a recovery trend
during the first quarter under review, driven by such genres as sports, theatrical performance and leisure. We
also continue to work on expanding ticket transactions for online live performances, a fledgling market, while
striving to create opportunities to generate earnings by collaborating with the company’s e-commerce businessand HMV stores to sell original items related to the live performances.
In our product sales business, a total of 57 stores are in operation nationwide as of May 31, 2021, including
our mainstay HMV stores dedicated to selling music and video software, HMV&BOOKS, which markets
books, CDs and DVDs, and HMV record shop stores specializing in analog records. Stores are making efforts
to expand earnings through a range of measures including procuring limited items tied to new music and video
products. Our e-commerce business is achieving solid performance on the back of demand from cocooning
customers, which has remained high since last year.

United Cinemas Co., Ltd., an operator of cinema complexes, takes appropriate infection prevention
measures in line with the situation in each region and continues with its operations amid a state of emergency
6

or quasi-emergency, unlike during the same period of the previous fiscal year when all its theaters had to be closed.
Currently, audience numbers and sales are seeing a recovery trend, with restrictions on operations being eased
and postponed films starting to be released. As of May 31, 2021, 42 cinema complexes nationwide with 387
screens are operating.

As a result, Entertainment-related Business posted gross operating revenue of 15,494 million yen (up 37.8%
from previous fiscal year) and segment profit of 337 million yen (segment loss was 961 million yen in previous
fiscal year).
(Financial Services Business)
With respect to our Financial Services Business, in our ATM business, the foundation of our banking business,
we expanded our network of financial institution partners, while working to expand the ATM service of Lawson
Bank, Inc.
As of the end of May 2021, the number of ATMs installed nationwide reached 13,571 (up 148 from previous
fiscal year), with each ATM used 46.2 times a day on average (up 7.8 from previous fiscal year). The total numberof our financial institution partners reached 377 nationwide (up 253 from the previous fiscal year) with the additionof shinkin banks in April 2021.
Our “instant bank account settlement service” allows users to withdraw money from their bank account to top
up a mobile payment app by harnessing Lawson Bank’s ATMs and their transaction network. During the firstquarter under review, the service was expanded with the participation of four banks.
In the “ATM charge service,” where cash can be charged to a user’s mobile payment app at an ATM, the
PayPay cashless payment service was included among the applicable apps. We will continue to expand our partner
financial institutions and services.
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.

As a result, Financial Services Business posted gross operating revenue of 8,336 million yen (up 8.7% fromprevious fiscal year) and segment profit of 493 million yen (segment profit was 27 million yen in 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).
As the People’s Republic of China recovered from the impact of the coronavirus relatively quickly, all ourstores are operating as usual. The number of LAWSON stores in the entire country reached 3,640 as of the end of
May 2021, up 296 stores from the end of previous fiscal year.
Our business in China generated operating profit in fiscal 2020, and the total number of stores there is one of
the highest among all Japanese convenience store operators. We will continue working to expand our network of
stores, offer our signature high-quality original products in wider areas, enhance recognition of Lawson, andincrease earnings. With regard to new store openings, we will proceed to conclude area license agreements with7

local partners in addition to directly establishing our own stores.
In other regions, apart from some stores that have suspended their operations in response to the spread of
COVID-19, all other stores are carrying out normal operations, with rigorous infection prevention measures inplace, in order to sustain the daily lives of our customers.

[Distribution of LAWSON Brand Stores Overseas by Region]
Number of stores(As of February 28,
2021)

Country/Region
China

Shanghai and surrounding area
(Shanghai, Zhejiang, Jiangsu)

China

Changeduring fiscal
year

Number of stores(As of May 31,
2021)

1,826

119

1,945

Chongqing

341

42

383

China

Liaoning (Shenyang, Dalian)

327

46

373

China

Beijing and surrounding area
(Beijing, Tianjin, Hebei)

215

22

237

China

Hubei (Wuhan, etc.)

441

17

458

China

Anhui (Hefei, etc.)

106

20

126

China

Hunan (Changsha)

65

15

80

China

Hainan (Haikou)

23

15

38

China

Subtotal

3,344

296

3,640

Thailand

140

4

144

Indonesia

68

―

68

Philippines

67

(1)

66

2

―

2

3,621

299

3,920

United States of America

HawaiiTotal

As a result, Overseas Business posted gross operating revenue of 15,923 million yen (up 44.5% fromprevious fiscal year) and segment profit of 337 million yen (segment loss was 1,142 million yen in previous
fiscal year).

(2) Explanation Regarding Consolidated Financial Position
Current assets increased by 47,861 million yen from the end of the previous fiscal year to 738,673 million
yen, mainly reflecting an increase of 60,241 million yen in cash and deposits, and a decrease of 12,745 million
yen in accounts receivable-other. Non-current assets decreased by 271 million yen from the end of the previous
fiscal year to 674,347 million yen, mainly reflecting a decrease of 2,328 million yen in intangible assets, andan increase of 1,758 million yen in property and store equipment. Consequently, total assets increased by
47,590 million yen from the end of the previous fiscal year to 1,413,020 million yen.
Current liabilities increased by 48,030 million yen from the end of the previous fiscal year to 815,785
million yen, mainly reflecting an increase of 127,000 million yen in call money, a decrease of 42,608 million
yen in deposits received, and decrease of 37,370 million yen in short-term loans payable. Non-current liabilities
decreased by 1,567 million yen from the end of the previous fiscal year to 323,175 million yen, mainly

8reflecting a decrease of 2,689 million yen in lease obligations. Consequently, total liabilities increased by 46,462
million yen from the end of the previous fiscal year to 1,138,961 million yen.
Net assets increased by 1,127 million yen from the end of the previous fiscal year to 274,059 million yen,mainly reflecting an increase of 1,774 million yen in valuation difference on available-for-sale securities, anincrease of 1,161 million yen in foreign currency translation adjustment, and a decrease of 1,818 million yen inretained earnings. Consequently, shareholders’ equity ratio was 19.0%, down from 19.6% as of the end of theprevious fiscal year.

(3) Explanation Regarding Forward-looking Statements
Regarding the financial forecasts for the first half and full year of the current fiscal year ending February 28,
2022, the financial forecasts remain unchanged from those announced on April 8, 2021.

92. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheet
As of February 28, 2021 and May 31, 2021
(Millions of yen)

AssetsCurrent assets:
Cash and deposits
Accounts receivable-due from franchised stores
Lease receivables
Merchandise
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets:
Property and store equipment:
Buildings and structures, net
Tools, furniture and fixtures, net
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

10Previous fiscal year
As of
February 28, 2021

Current 1st Quarter
As of
May 31, 2021

402,584
46,385
16,621
20,657161,062
43,5192(20)690,811
690,811462,825
46,883
16,076
21,658148,31742,933(22)
738,673

191,977
19,044
131,779
24,838367,640

193,101
19,335
129,71127,250369,399

39,08838,2158,349
752
86,406

37,84637,282
8,192
756
84,07840,621103,030
33,48444,099(663)
220,571674,618
1,365,430

40,097
103,575
30,96846,942(714)
220,869
674,347
1,413,020

(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
Call money
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

11

Previous fiscal year
As of
February 28, 2021

Current 1st Quarter
As of
May 31, 2021

127,486
42,320100,000
44,58490,798
4,078
246,110
4,818
40,00067,557
767,754

134,881
4,950
100,000
45,33285,705
1,686
203,502
3,906
167,000
68,819815,785

130,000
121,491
485

130,000
118,802
476

277

241

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

16,54636,09921,008323,175
1,138,961

58,50646,494
158,498(991)
262,50858,50646,495
156,680(983)
260,698

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

3,556
(207)
4,846
(147)
8,047
317
4,996
274,059
1,413,020

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)For the first quarter of the fiscal year ended February 28, 2021 and the first quarter of the fiscal year ending
February 28, 2021
(Millions of yen)Previous 1st Quarter
From March 1, 2020
to May 31, 2020
155,360
62,708
43,116
19,592Gross 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
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 losses:
Impairment loss
Loss on novel coronavirus disease
Other
Total extraordinary losses
Profit (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

12

Current 1st Quarter
From March 1, 2021
to May 31, 2021
169,264
71,164
48,67022,494

69,821
22,83092,652112,244
109,6202,623

72,04526,05398,099120,593
109,976
10,617

163
1

215
195

―

237

496
660

481
1,130

998
907
169
2,075
1,208

847
367
135
1,350
10,397

880
2,258
1,511
4,650
(3,441)572
246
819(4,260)(75)(4,185)

754
318
565
1,637
8,760
1,427
1,729
3,157
5,603
(34)
5,637

(Consolidated Statement of Comprehensive Income)For the first quarter of the fiscal year ended February 28, 2021 and the first quarter of the fiscal year ending
February 28, 2022
(Millions of yen)

Profit (loss)
Other 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

13

Previous 1st Quarter
From March 1, 2020
to May 31, 2020
(4,260)Current 1st Quarter
From March 1, 2021
to May 31, 2021
5,603

2,718
(290)
45
2,472
(1,787)

1,774
1,251
(12)
3,012
8,615

(1,658)
(129)

8,560
55

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

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

(Additional Information)(Application of tax effect accounting for transition from consolidated taxation system to group tax sharing
system)The Company and certain domestic consolidated subsidiaries have calculated the amounts of deferred tax
assets and deferred tax liabilities in accordance with tax laws in effect before amendment based on thetreatment of Paragraph 3 of “Practical Solution on the Treatment of Tax Effect Accounting for the Transition
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 togroup 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 line with thetransition to the group tax sharing system.

14