First Half Results for FY2021(Six months ended August 31, 2021)

Lawson, Inc.
October 8, 2021

Copyright (c) 2021 Lawson, Inc. All rights reserved.
Copyright (c) 2021 Lawson, Inc. All rights reserved.

Financial Results forFirst Half for FY2021
Satoshi Nakaniwa
Executive Managing Officer
Chief Financial Officer
Lawson, Inc.
Copyright (c) 2021 Lawson, Inc. All rights reserved.
Copyright (c) 2021 Lawson, Inc. All rights reserved.

Consolidated Financial Results for FY2021 1H
Unit: Billions of yen
FY2020 1H
ActualOperating income
Ordinary income
Net income

FY2021 1H
Actual

YoY

v.plan

16.6
14.8
3.3

26.7
27.8
17.4

+10.0
+12.9
+14.0

+0.2
+3.3
+4.4

91.0%
31.2%

101.6%
30.7%+10.6%pt- 0.5%pt- 3.4%pt- 0.5%pt

14,50014,651＋151＋25(Non-consolidated*)*excluding LAWSON STORE100 business

Existing store sales (YoY)
Gross profit margin
Total no. of stores in Japan*Lawson group total

1.Consolidated operating income 26.7 billion yen(1)YoY: Lawson reported higher non-consolidated profit in the with-Covid business environment as our more advanced response to changing consumer lifestyles andneeds helped generate a recovery in existing-store daily sales. Consolidated operating profit also increased thanks to broadly improved performances from our Group
companies.
(2)v. plan: Consolidated operating income roughly in line with plan. Despite efforts to reduce costs, non-consolidated operating income fell short of plan after the
profit for the Lawson parent failed to achieve the top line plan. This was largely offset however by higher-than-planned performances from Group companies.
2.Consolidated net income 17.4 billion yen(1)YoY: Rose on the back of the rise in operating income as well as dividends on investments, profits from the sale of shares held for policy purposes, lower other losses
compared to the previous year’s Covid-related factors, and lower store-related consolidation losses.
(2)v. plan: Exceeded plan on investment dividends that were not included in the plan and gains on the sale of shares held for policy purposes.
Any differences v. plan in these documents are compared to the initial plan issued along with the announcement of FY2020 results in April 2021.
Copyright (c) 2021 Lawson, Inc. All rights reserved.

3

Factors Affecting FY2021 Consolidated Operating Income
InitialFull-year plan

+16.0

Unit: Billions of yen

Charge feesfrom franchise stores

Approximate
figures−3.0
Transformation
Executive Committee
measures

+2.5

+3.0

Rebound v. previous
year’s COVID-19
franchisee
supportGroupsubsidiaries−6.5
Marketing measures,disposal costs, etc.

−3.0

Decline v.
Previous year’s
cost reductions, etc.

40.8

Existing-store sales
First half
105.0%
Second half 105.0%
Fiscal year 105.0%

FY2020Consolidated
operating income
Copyright (c) 2021 Lawson, Inc. All rights reserved.

SEIJO ISHI CO., LTD.
+0.5
Lawson Entertainment, Inc. +0.5
United Cinemas Co., Ltd.
+1.0

*Financial image rounded to the nearest 0.5 billion yen for clearer viewing

50.0

FY2021
Consolidated
operating income(Plan)

4

FY2021 1H Initiatives Review
Unit: Billions of yen

FY2021 1H
Initial plan

actualv.plan

YoY

26.5

26.7

+0.2

+10.0

Consolidated
operating income

v. planYoY

Various measures

Initiatives taken and progress made

Charge feesfrom franchise stores

Strong sales from Machikado Chubo in-store kitchen food, frozen foods, and daily foods, which must
incorporate daily demand. However, existing-store daily sales fell short of plan owing to continued
announcements of states of emergency and priority measures for prevention of the spread of Covid19.

-5.5

+2.5

Transformation
Executive Committee
MeasuresMarketing measures,disposal costs, etc.

Refurbished approx. 800 existing stores as part of the Pursuing the Ideal Store Format Project. We
had to review part of the costs planned by the Committee for the second half, but progress is runningroughly to plan.

+0.5

-0.5

Implemented more measures that planned to attract customers including advertising via apps and TV
ads and strengthening franchise store product ranges.

-1.0

-2.0

Decline v.
Previous year’s
cost reductions, etc.

Trending more smoothly than expected despite predicted rebound following previous year’s cost cuts.
That thanks to successful cost reductions in areas where are making constant efforts, such as IT andstore maintenance costs.

+3.0

+2.5

Rebound v. previous
year’s COVID-19
franchisee support

Proceeding to plan.

±0

+1.5

Group
subsidiaries

Seijo Ishii: Better than plan thanks to strong sales from stores housed in station buildings andcommercial facilities.
Entertainment business: Better than plan thanks to reopening of events and increase in online life
events.
Overseas business: Better than plan on strong existing-store sales and rising store numbers in China.

+3.0

+6.0

±0

+10.0

Total
Any differences v. plan in these documents are compared to the initial plan issued along with the announcement of FY2020 results in April 2021.
*Figures rounded up to the nearest 0.5 billion for clarity
Copyright (c) 2021 Lawson, Inc. All rights reserved.

5

FY2021 1H Results & Full-Year Plan
Unit: Billions of yen

FY2021
Full-year
initial plan

Consolidated
operating income

1H Results

Full-year
revised plan

50.0

26.7

50.0

Lawson

32.0

16.4

29.0

SEIJO ISHII

11.3

5.7

13.2

Lawson Entertainment

1.3

0.5

1.9

United Cinemas

0.6

0.5

0.4

13.5
150yen17.4

15.5
150yenMain company operations

Consolidated net income
Dividends per share（Assumed conditions for the plan）
・YoY increase in existing-store sales (revised): 102.8%
・Gross profit margin (revised)：30.8％（-0.2％P YoY）
・Store numbers: Open 500 stores, close 350 stores, net increase 150 stores
While performance exceeded plan in the first half of FY2021, we are proceeding with the above-detailed plan for FY2021 net income for several
reasons, including the fact that we expect store-related consolidation losses that were predicted to emerge in the first half of the business year to
emerge in the second half instead.
Copyright (c) 2021 Lawson, Inc. All rights reserved.

6

Factors Affecting FY2021 Consolidated Operating Income (revised)
Full-year plan
after revised

+9.0

+6.0

（revised）（revised）

Charge feesfrom franchise stores

+2.5
+1.0

40.8

Group

subsidiaries（revised）
Decline v.
Previous year’s
cost reductions, etc.

−3.0
Transformation
Executive Committee
measures

Rebound v. previous
year’s COVID-19
franchisee
support−6.5

Marketing measures,disposal costs, etc.

Existing-store sales
First half
101.6%（Actual）
Second half 104.0％（revised）
Fiscal year 102.8%（revised）

FY2020Consolidated
operating income
Copyright (c) 2021 Lawson, Inc. All rights reserved.

Unit: Billions of yen

50.0

SEIJO ISHI CO., LTD.
+2.0（revised）
Lawson Entertainment, Inc. +1.0（revised）
United Cinemas Co., Ltd.
+1.0

*Financial image rounded to the nearest 0.5 billion yen for clearer viewing

FY2021
Consolidated
operating income(Plan)

7

FY2021 Initiatives

Sadanobu Takemasu
President and CEO
Representative Director
Chairman of the Board

Lawson, Inc.
Copyright (c) 2021 Lawson, Inc. All rights reserved.
Copyright (c) 2021 Lawson, Inc. All rights reserved.

Lawson Group’s Challenge2025 Overview

2025
50 th anniversary

Customers, society, friends’

Achieve Group philosophy

No.1 recommended brand

Promise 1
Superior taste

Promise 2
Human kindness

Creating happinessandharmony in our communities

Promise 3
Environmental(machi) friendlinessCommitment to SDGs
ESG-focused management

Work motivation, determined spirit, digital data

Lawson Group Sweeping Transformation Executive Committee
Copyright (c) 2021 Lawson, Inc. All rights reserved.

9

FY2021 1H Review ①Wider COVID-19 impact on business environment than expected
Mar. Apr. May Jun. Jul. Aug.

２
０
２
０

State of emergency
４/ ７～５/25（Tokyo area, Osaka, Fukuoka）
４/16～５/25（nationwide）

Mar. Apr. May Jun. Jul. Aug.

２
０
２
１

State of emergency
Announcement of continued restrictions
primarily in Tokyo from 1/8 through 9/12

Coronavirus curbs, etc.
Order extended to all areas nationwide

Copyright (c) 2021 Lawson, Inc. All rights reserved.

Number of days

49

Number of days

129

*TokyoMarch to Augustdays*TokyoMarch to Augustdays

Including coronavirus curbs

163

days

10

FY2021 1H Review ①
 Achieved certain success with measures to capture everyday demand started lastyear during Covid

Daily sales

５categories and Machikado chubo in-store kitchens Daily sales (YoY)
fresh foods

daily foods

frozen foods

alcoholicJapanese & Western sweets

Machikado Chubo instore-kitchens100%

F Y2 0 2 0 /1 H

FY2 0 2 0 /2 H

Copyright (c) 2021 Lawson, Inc. All rights reserved.

MA R

A PR

MAY

JUN

JUL

１Ｈ 101.6%

fresh foods

frozen foods

daily foods

Japanese &Western sweets

alcoholicMachikado Chubo
instore-kitchens

AUG

11

FY2021 1H -Daily Sales, Visits, APP (YoY) Rapid spread of COVID-19 and unseasonable weather in August dampened customer visits Store refurbishment proceeding to plan as head into 2H with expected widespread vaccinations
and recovery in people movement

PCR-Positive

Daily sales

Customer visits

Third wave

Spendeing per customer

Fourth wave

600 ,0 00

SEP
120 .0 %

OCT

NOV

DEC

JAN

FEB

(FY2020)105.8%

110 .0 %MAR(FY2021)109.1%
107.8%

110.1%
107.2%

109.5%

APR

94.5%

93.1%

95.4%

94.2%

92.7%

88.0%

88.5%

70.0%

１H 101.6%

AUG
500 ,0 00

105.8%
400 ,0 00

104.2%

104.5%

100.4%

105.0%
102.8%

99.1%
99.3%

94.0%

JUL

State of Emergency

96.5%

90.0%

86.6%

JUN

State of Emergency
105.0%

105.6%

MAY

99.2%
100 .0 %80.0%

Daily sales

Fifth wave

130 .0 %104.5%
97.6%

１H 99.5%
300 ,0 00

102.2%
98.8%

98.6%
93.4%

200 ,0 00

100 ,0 00

84.3%

0

(Source: PCR-positive, Ministry of Health, Labour and Welfare website)
Copyright (c) 2021 Lawson, Inc. All rights reserved.

Spending per
customer
１H 102.0%

88.2%

87.9%

Customer visits

12

FY2021 1H –Franchise Store ProfitsーDaily sales improved on fuller product ranges, 1H franchise store profits hold steady YoY

FRANCHISE STORE PROFITS（YoY)
Per store

Per Franchise Owner

100%

FY2020 Full year
Copyright (c) 2021 Lawson, Inc. All rights reserved.

FY2021 １H

13

Lawson Group Sweeping Transformation Executive Committee Implemented various projects based on carbon-neutral activities

Committee chair: President Sadanobu Takemasu
Lawson Group Sweeping Transformation Executive Committee(12project)

Ideal store
formatHorizontalFF
companies

Vendordistribution

Copyright (c) 2021 Lawson, Inc. All rights reserved.

Unified use ofGroup data

Product
renewalMachikado
chubo
in-store
kitchens

Customercentric supply
chain reformGroupbranding

Area strategy
reorganization

Affiliatedcompanies

Appropriate
policy & cost
council

Decarbonization
activities(SDGs Committee)

Work
motivation
reform14

Lawson Group Sweeping Transformation Executive Committee-Ideal store format Approx. 800 stores refurbished in 1H, 5,000 store target for FY2021

Reach-in freezer units(more frozen foods)

Early
refurbishment
500 storesOpen cases for daily goods(more daily foods)
Copyright (c) 2021 Lawson, Inc. All rights reserved.

Self-serve cases(Fast food pack sales)

Round cases
Horizontal freezer units(More frozen foods and ice creams） (desserts, deli, daily items)

Selected using
initialstandards forvalidation data
analysisUsevalidation
data

Cumulative total of

Additional
refurbishment
Select additional
stores forrefurbishment
based on index forachieving evengreater benefit

refurbished stores

Approx.
800
stores

1,000
500
0
APR

MAY

JUN

JUL

AUG

15

Lawson Group Sweeping Transformation Executive Committee-Machikado chubo in-store kitchens 7,100 stores with Machikado Chubo in-store kitchens by end August. Plan to expand that
number to 8,400 stores by end FY2021
 Sales of Machikado Chubo kitchen food categories up over 20%

Number of stores with MC kitchens andincrease in MC category sales(stores)

Total store numbers(rate ofincrease)

Increase in category sales

7,200

150%

7,100

7,000
6,900

140%

Category sales
rate: over 20%

130%

6,800
6,700

120%

6,600
110%

6,500

Changed some Machikado Chubo
kitchen products to paper containers(reduce plastic containers)

6,400

100%

6,300
6,200

90%

MAR
Copyright (c) 2021 Lawson, Inc. All rights reserved.

APR

MAY

JUN

JUL

AUG

16

Lawson Group Sweeping Transformation Executive Committee-Effects of Ideal store format Store refurbishment effect: Average purchase price starts to rise in line with improved visibility
from week six onward Rise in daily sales reflects tailored product ranges for individual stores

Increased sales at refurbished stores
Daily sales improvement

Week 12
Daily sales(v. existing stores in similar area/location) APP rises with+６%
improved recognition
Daily sales growth

Improved
recognition

30,000

Minimum recognitionof refurbishment

25,000

106%
108%

106%

108%

110%

108%
108%

106%

20,000

106%

106%

106%
106%

15,000

102%

104%
104%

10,000

102%

5,000

100%

0

after 23 weeks

4 weeks

5 weeks

6 weeks

7 weeks

8 weeks

9 weeks

10 weeks

11 weeks

12 weeks

weeks
Copyright (c) 2021 Lawson, Inc. All rights reserved.

17

Lawson Group Sweeping Transformation Executive Committee-Product renewal（Muji） Daily sales rise by 2-5% v. existing stores in same area
 Sales of similar food categories up approx. 20% post introduction
Daily sales for stores with Muji products(YoY),
sales of relevant categories(79 stores with Muji products in April)

110%

Processed foods

SweetsDaily necessities

Daily sales growth

Daily sales +2-5%
Sales of relevant
90,000categories +20%
80,00070,000105%

60,00050,000100%
40,00030,00095%

20,00010,000

Selling unbranded, quality products
at 110 stores in Tokyo and Saitama
and Chiba prefectures
Copyright (c) 2021 Lawson, Inc. All rights reserved.

90%

0

APR

MAY

JUN

JUL

AUG

*Increase in daily sales v. existing stores in similar areas/locations

18

Lawson Group Sweeping Transformation Executive Committee-Customer-centric supply chain reform Trialing AI-driven discounting recommendations in 65 stores in Tohoku area, plan to introduce
nationwide around 2023

Optimize entire supply chain
Sell off with no waste(reduce food waste)

Promote positive cycleof generating profit forreinvestment

Using AI Product demand
forecasting and order
recommendations
 Recommend discountprice and timing for items AI recommends products to discount andtiming depending on inventory levels
nearing sell-by date
Copyright (c) 2021 Lawson, Inc. All rights reserved.

Affix sticker with suggested
discount price and time for sale

19Group Company Initiatives ①－Overseas business (China)－
 5th largest convenience store network in China, biggest Japanese chain
 Network topped 4,000 stores in September 2021. Expanding store network through area
license contracts with local partners※Blue shading indicates Japanese-affiliated companies; 1 and 3
indicate oil companies; others indicate food distribution
companies.

Rank

Store

Store
numbers

Store Numbers
Numberof stores

Over 10,000

end of 2020

1

易捷（easy joy）※石油会社系

27,6002

美宜佳（meiyijia）

22,3943
4

崑崙好客（uSmile）※石油会社系
天福(Tianfu)

20,2125,808

56

羅森(LAWSON)
全家(Family Mart)

3,256
2,967

7
8

7-ELEVEN
浙江人本超市(十足・之上)

2,387
2,358

9
10

見福(FOOK)
便利蜂(Bianlifeng)

2,021
2,000

Copyright (c) 2021 Lawson, Inc. All rights reserved.

●Achieved profitability
2017 Dalian
2018 Shanghai
2020 Chongqing・Beijing

Over 6,000

Sep 2021
over 4,000
Over 3,000
Over 2,000

Over 1,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

20

Group Company Initiatives ①－Overseas business (China)ー Earning strong reputation with customers by creating deep-rooted local stores
together with local partners (franchise stores, mega FC, area licenses, vendor factories)

Business management
support for local license
partners

Successful cooperation withlocal partners influenced 1H
consumer survey results

Provide production
technology to local vendor
factories
Lawson+ local partners

rankedMost want to use CVS
in 12 out of 13 areas

Copyright (c) 2021 Lawson, Inc. All rights reserved.

Absolute No.1 support
ratingin new store areas

Big hit “demon rice balls”

Offer entertainment
along with convenience21

Group Company Initiatives ②－Seijo Ishiiー Consistent strong sales after securing stay-at-home demand and attracting more customers tostores Expanding store network and preparing to develop new products in anticipation of launch of
new Central Kitchen factory

Directly operated stores

New Central Kitchen factorysales(YoY)(set to launch in Spring 2022)(stores)

Store numbers

Tohoku １
Kanto 134

YoY

170

Chubu 19

110%

160

Kinki

150

100%

140
130

90%

FY2018FY2019FY2020

FY2021
1H

Copyright (c) 2021 Lawson, Inc. All rights reserved.

 Expand store networkby systematically
opening new stores
 Develop fresh flagshipproducts

36

Chugoku １

End August 2021

191

Total
storesDirectly operated: 167, franchise: 2422

Group Company Initiatives ③－Entertainment Businessー Both entertainment-related companies recover beyond plan

United Cinemas

Lawson Entertainment
Concert and theater genres driving
recovery in ticket handling volume
along with expanding ticket sales foronline live events

Number of cinemagoers and sales
rising on higher operation days andtime periods YoY and greater supply ofmoviesTicket Sales (YoY)

Customer Attendance(YoY)

100%

100%

0%
FY2020 1H

Copyright (c) 2021 Lawson, Inc. All rights reserved.

FY2020 2H

FY2021 1H

0%
FY2020 1H

FY2020 2H

FY2021 1H

23

Group Company Initiatives ④

Lawson Store 100Support freshness and quality
conscious daily living bystrengthening product ranges
with a focus on fresh produce

Fruit &
veg

Copyright (c) 2021 Lawson, Inc. All rights reserved.

Fresh
meat

Fresh
fish

Financial services
 New ATM service for shinkin banks,
377 affiliated financial nationwide(251 YoY)
 Increased ATM usage bydeveloping services that utilize our
ATM network

24

Environmental Initiatives
 Promoting environment-conscious initiatives to help achieve one of our three promises, to bekind to our planet (machi)

Reduce plastic containers
Switch pasta
container fromplastic to paper(from Nov.)

Reduce CO2 emissions
Aim to reduce annual CO2
emissions by 17% using
optimal AI-driven store
delivery diagrams

Trial switch from paperbased to wood-based
chopsticks and spoons,new selling of food byweight at Natural Lawson (Illustration)

Reduce food waste
Use AI to improve precisionordering and implement fullproduct sell-down operation*Simulation from Gunma Delivery Center
Copyright (c) 2021 Lawson, Inc. All rights reserved.

25

Environmental Initiatives
 Pursued environment-conscious measures to realize one of our three promises: Environmental(Machi) friendliness.
V. 2018 levels

V. 2017 levels

CO2 emissions
per store V. 2013 levels

2030 target▲50％cut▲30%cut

2021 1H results▲15.5％cut▲21.2%cut▲28.2％cut

Food loss

plastic containers

CO2 emissions(preliminary)

KPI▲50％cut50%

2018

Initiatives

2025

2030

・More accurate ordering
・Genuine full sell-down operation
・Extend best by times for lunchboxes(longer fresh time)*Scrutinize store disposal breakdowns, switch to
management of disposed products only not discounted
products

Copyright (c) 2021 Lawson, Inc. All rights reserved.

2017

2025

2030

・Reduce by changing or simplifying
containers and packaging
・Reduce by changing toenvironment-conscious materials(paper lunch boxes containers,
etc.)・Expand number of products soldby weight at Natural Lawson storesand expand number of stores

2013

2025

2030

・Introduce energy-saving
equipment, switch to solar-powered
devices and partners withappropriate power supply.
・Promote our 10 energy-saving
actions*Targets revised up in June26

FY2021 １H Consolidated operating results
Unit：Billions of yen

FY2020

FY2021(Results)
１H

Full year

１Ｈ(Results)

Full year(Initiatives)

Operating Income

16.6

40.8

26.7

50.0

Ordinary Income

14.8

37.6

27.8

47.0

3.3

8.6

17.4

15.5

Profit■FY2021 １H Domestic convenience store business
Existing-stores sales 101.6％
Opening 292／Closure 117／Total number of store 14,651
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27

Reference Materials

Copyright (c) 2021 Lawson, Inc. All rights reserved.
Copyright (c) 2021 Lawson, Inc. All rights reserved.

Earnings Summary: FY2021 1H Results
FY2020-1H

Consolidated
Net sales of convenience store*1
Operating income
Operating income ratio
Ordinary income

Unit: Billions of yen
FY2021

FY2021-1H

1,173.2
16.6
1.4%
14.8

1,227.0
26.7
2.2%
27.8

Y/Y
+53.8
+10.0
+0.8%pt+12.9

Net income

3.3

17.4

+14.0

15.5

EPS (Yen)

33.05

173.93+140.88

154.88

Total no. of stores in Japan*2
Opening
ClosureNet Increase

14,500236
180
56

14,651
292
117
175

+151
+56
-63
-

14,626500
350
150

Non-consolidated*3
Existing store sales (Y/Y)*4

91.0%

101.6%+10.6%pt

102.8%

Gross profit at existing stores (Y/Y)

88.4%

100.7%+12.3%pt

102.4%

Gross profit margin

31.2%

30.7%

-0.5%pt

30.8%+0.3%pt-0.2%pt--

difference excl. cigarette sales (Y/Y)

ActualActualPlan (revised)*5
2,480.0
50.0
2.0%
47.0

*1 Total chain store sales (Net sales of all stores) include sales from the convenience store operation in Japan, international operations and sales from Seijo Ishii (consolidated items only).
Regarding Seijo Ishii, only the store sales of directly operation are included.
*2 The number of stores is the total number of convenience stores in Japan operated by the Lawson Group.
*3 Excluding LAWSON STORE100 business*4 Net sales at existing stores (Y/Y) do not include the impact of tickets, etc.
*5 Figures in italic indicate the revised figures from the initial plan.

Copyright (c) 2021 Lawson, Inc. All rights reserved.

Key Components of SG&A Expenses
Unit: Billions of yen

FY2020-1H
ActualActual

YoY

YoY

154.0

152.7

-1.3

22.7

22.3

-0.3

6.4

5.3

-1.1

Advertising and promotional expenses

5.2

5.1

-0.0

Sales commission

8.5

9.3

+0.7

Facilities expenses

86.7

87.2

+0.5

Consolidated SG&A expenses

217.5

222.8

+5.2

＜Major Expenses＞

Non-consolidated

Personnel expenses
IT-related expenses

Non-consolidated

Selling, general & administrative
expenses

FY2021-1H

Sales commission：Increased disposal loss burden onhead office from expansion of product ranges at
franchise stores.

IT-related expenses：Lower maintenance-related
costs and software depreciation costs.

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

Consolidated

Copyright (c) 2021 Lawson, Inc. All rights reserved.

Rose on the back of higher rental and personnel
expenses at stores and cinemas compared to theprevious year when these venues were closed due to
COVID-19.

Segment profit
Unit: Billions of yen

FY2020 1H
ActualDomestic convenience store business
Seijo Ishii businessEntertainment-related business

18.5
5.3
0.8

YoY
+4.7

Profit up on lower costs and the recovery in existing-store sales as welearned to respond better to new lifestyles and changing needs.

+0.5

Profit up on the back of strong performances from stores housed instation buildings and commercial facilities and strong sales of fresh
produce such as fresh fish and our popular side dishes produced in ourown central kitchens that satisfied stay-at-home demand.

+1.9

Profit up on higher revenue from commissions generated by increased
ticket volumes for concerts, theatre plays, and online live events andhigher revenue generated by the recovery in the number ofcinemagoers.

Financial services business

1.4

+0.6

Profit up on the recovery in ATM usage thanks to an increased numberof partner financial institutions offering ATM services and the launch of
ATM charges, which charge cashless payment service apps a fee incash from ATMs .

Overseas business

0.6

+2.0

Profit up on strong sales at existing stores in China and higher store
numbers.

Other business

-0.1

+0.0

ー

Total

26.7

+10.0

Copyright (c) 2021 Lawson, Inc. All rights reserved.

Consolidated Capital Expenditures & Cash Flows● Consolidated Capital Expenditures● Consolidated Cash Flows

Unit: Billions of yen

FY2020
1H
Actual6.2

FY2021
1H
Actual
9.4

Existing stores

4.4

5.6

IT-related

4.7

3.7

Other
Subtotal for capital
expenditure

0.2

1.4

15.5

20.3

New stores

Leases

12.7

14.6

Depreciation andamortization

40.5

39.3

Copyright (c) 2021 Lawson, Inc. All rights reserved.

Unit: Billions of yen

Cash flows fromoperating activities
Cash flows frominvesting activities
Free cash flows
Cash flows fromfinancing activities(Cash dividends paid)

Cash and cash deposits

FY2020
1H
ActualFY2021
1H
Actual

118.3

47.5

-17.7

-13.8

100.5

33.6

-117.1

-67.4

-7.5

-7.5

326.8

368.4

Consolidated Balance Sheet at the end of FY2021 1H
Unit: Billions of yen

As of Feb. As of Aug.
28, 2021 31, 2021
Total current assets

As of Feb. As of Aug.
28, 2021 31, 2021

YoY

690.8

655.7

-35.0

Cash and deposits*1

402.5

370.8

-31.6

Accounts receivable

161.0

159.7

Total noncurrent assets

674.6

Property, plant and equipment
Intangible assets

767.7

714.2

-53.4

Accounts payable-trade

127.4

141.6

+14.1

-1.2

Short-term loans payable*2

42.3

6.7

-35.5

665.1

-9.4

Current portion of long-term loans
payable*2

100.0

100.0

-

367.6

370.7

+3.0

Deposits payable

246.1

142.7

-103.3

86.4

81.9

-4.4

324.7

322.2

-2.4

Software

39.0

36.8

-2.2

130.0

130.0

-

Goodwill

38.2

36.3

-1.8

Total liabilities

1,092.4

1,036.5-55.9

Investments and other assets

220.5

212.4

-8.0

Net Assets

272.9

284.3

+11.3

Long-terms loans receivable

40.6

39.5

-1.0

Common stock

58.5

58.5

-

Guatantee deposits

103.0

103.3

+0.3

Retained earnings

158.4

168.4

+9.9

1,365.4

1,320.8-44.5

Liabilities and net assets

1,365.4

1,320.8-44.5

Total Assets

Total current liabilities

YoY

Total noncurrent liabilities
Long-term loans payable*2*1 The amount of cash and deposits for financial services business as of August 31, 2021 is 339.6 billions of yen, most of which is used for refilling ATMs.
*2 The amount of loans payable for financial services business as of August 31, 2021 is 182.7 billions of yen.

Copyright (c) 2021 Lawson, Inc. All rights reserved.

Cautionary Statement
This presentation contains forward-looking statements and forecasts regarding the future plans, strategies and performances of
Lawson and its subsidiaries and affiliates. These statements and forecasts are not historical facts. They are expectations based onassumptions and beliefs derived from information currently available to the Company and are subject to risks and uncertainties
including, but not limited to, economic trends, heightened competition in the domestic convenience store sector, personal
consumption, market demand, the tax system and other legislation. As such, actual results may differ materially from estimates.
Figures in this presentation have been rounded down.
Copyright (c) 2021 Lawson, Inc. All rights reserved.
Copyright (c) 2021 Lawson, Inc. All rights reserved.