Flash Report on the Consolidated Result
for the First Half Ended February 28, 2014
October 8, 2013
Listed Company Name: Lawson, Inc.
Code No.: 2651
(URL http://www.lawson.co.jp/company/ir/index.html)
Company Representative: Takeshi Niinami, Representative Director, CEOContact:Tomoki Takanishi , Financial & Accounting Office General Manager
Scheduled date for submission of quarterly earnings report: October 11, 2013
Scheduled date for payment of dividend: November 11, 2013
Supplementary Documents quarterly results: Yes
Presentation of quarterly results: Yes

Tel.+81-3-5435-2773

1. Consolidated Performance for the current first half of the current period (from March 1, 2013, to August 31, 2013)(1) Consolidated operating results
Note: Amounts below one million yen are truncated.
Gross operating revenue¥ Million%
Current 1st Half
248,197(0.3)
Previous 1st Half
248,963
3.7
Net income¥ Million
19,047
17,861

Current 1st Half
Previous 1st Half

%
6.6
99.3

Operating income¥ Million%
35,624
3.1
34,554
6.1

Ordinary income¥ Million%
35,533
3.7
34,2605.1

Net income per share¥
190.67178.82

Fully diluted income per share¥
190.32178.54

Notes: Comprehensive income August, 2013 20,373 million( 16.1 %)August, 2012 17,548 million( 86.4 %)(2) Consolidated financial position
Total assets¥ Million
At August 31,2013
626,195
Last fiscal year
579,809
Notes: Shareholders’ equity August, 2013 236,912 million

Net assets
Shareholders’ equity ratio¥ Million%
241,97837.8
230,18139.1
February, 2013 226,475 million

2. Dividends status
Annual dividends per share2012 fiscal year¥―

Year-end
dividend¥
100.00¥200.00―110.00220.00

1Q

1H

3Q

¥
―

¥
100.002013 fiscal year―
110.002013 fiscal year
(Forecast)
Notes: Revision of forecast for dividends in the first quarter: Yes

1

Total

3. Forecast Consolidated Performance for 2013 fiscal year （from March 1, 2013, to February 28, 2014）
Operating income
Ordinary income
Net income
Gross operating revenue¥ Million%¥ Million%¥ Million%¥ Million%
2013 fiscal year
503,000
3.2
70,0005.7
68,4003.8
35,9008.2
Reference: Forecast net profit per share for the 2013 fiscal year: 359.36yen
Note: Revision of forecasts for consolidated performance during the first half: Yes
4. Notes(1) Change in important subsidiaries during the period (Changes in certain specified subsidiaries resulting in revised
scope of consolidation): No(2) Adoptions of special accounting methods in presentation of quarterly financial statements: No(3) Changes in accounting policies, changes in accounting estimation, retrospective restatement
1. Changes of accounting policies associated with revision in accounting standards: Yes
2. Other changes: No
3. Changes in accounting estimation: Yes
4. Retrospective restatement: No(4) Number of issued shares:i) The number of the stocks issued in the end of term
August, 2013: 100,300,000 February, 2013: 100,300,000ii) The number of treasury shares in the end of term
August, 2013: 400,708
February, 2013: 406,853
iii) Average number of shares during the term
August, 2013: 99,895,181 August, 2012: 99,885,014
Note: Disclosure of progress of quarterly review procedures
At the time of disclosure of this quarterly flash report, review procedures for quarterly earnings reports based on the
Financial Instruments and Exchange Act were being performed.
Note: Terms of use for financial forecasts, and other special notes
Forward-looking statements presented in this material such as financial forecasts are based on currently available
information and certain presumptions deemed to be reasonable as of the date of announcement. They are not intended
to guarantee the Company’s achievement. Actual results may differ significantly from these forecasts due to manyfactors. For preconditions of these financial forecasts and notes concerning their use, please refer to “1. Review ofOperations, (3) Qualitative Information Regarding Consolidated Financial Forecasts” on page 9.

2

1．
．Review of Operations(1) Review of Operating Results
During the first six months fiscal 2013, the period from March 1 to August 31, 2013, the Lawson Group(hereinafter, the “Group”) implemented measures to reinforce its social infrastructure function thatprovides essential items and services at the local level with the aim of realizing the Group’s corporate
philosophy of “Creating Happiness and Harmony in our Communities.” Based on its analysis of purchasedata retrieved from the multi-partner loyalty program, Ponta, the Group focused on customer relationshipmanagement (CRM)*1 and supply chain management (SCM)*2 in order to offer a merchandise assortmentthat meets the specific needs of customers in each neighborhood.
*1

CRM

A marketing management method for providing merchandise and services that meet the specific needs of customers.
*2

SCM

A business administration method for comprehensively managing all stages of business, from procurement to sales,
to streamline and optimize the entire business process.

As a result, for the first six months of fiscal 2013 on a consolidated basis, gross operating revenue
decreased by 0.3% from the corresponding period of the previous fiscal year to ¥248,197 million owing to
a decline of ¥12,557 million in net sales, which offset an increase of ¥11,791 million in operating revenue
resulting from franchised stores and other operating revenue resulting from an increase in the numberof franchised stores and a decrease in the number of company-operated stores. Although cost of sales
fell ¥9,128 million owing to the promotion of franchising, selling, general and administrative expenses
grew 5.3% year on year to ¥146,120 million driven by a rise in rents and depreciation.
As a result, Operating income rose ¥1,070 million up 3.1% year on year, to ¥35,624 million. Ordinary
income rose ¥1,273 million up 3.7% year on year, to ¥35,533million. Net income rose ¥1,186 million, up
6.6% year on year, to ¥ 19,047 million.

Operating results by business segment are as follows.

(Convenience Store Operations)
The status of merchandise and services, store operations, store development and other aspects ofConvenience Store Operations and Overseas Businesses for the first six months fiscal 2013 is outlined asfollows.

[Merchandise and Service Strategies]
On the merchandising front, we continued to strengthen our evening and nighttime merchandise
assortment by expanding our lineup of ready-made meals, including carbohydrate-based foods and fast
foods, in order to enhance satisfaction of customers visiting our stores in and after evening hours.
3In an effort to expand our customer base, we continued to reinforce our merchandise assortment of fresh
foods as well as foods delivered on a daily basis and processed foods that are often purchase incombination with fresh foods.
Starting this fiscal year, as part of our endeavors to fully strengthen our in-store lineup of health-related
foods, we have started to step up marketing efforts for low-carbohydrate products including bran3 breadand expand our merchandise assortment of pre-cut vegetables made with vegetables produced based on
the Nakashima Farming Method4, one of the most prominent mineral farming methods in Japan. Byhighlighting health-consciousness in our products, in-store presentation, and sales campaigns, we will
strive to boost Lawson’s corporate brand image as a health-promoting convenience store.
*3

Bran: The external layer of wheat. Contains abundant nutrition including dietary fiber, iron, calcium, magnesium, zinc,and copper. The food is noted for its low level of carbohydrate.
*4

Nakashima Farming Method: A cultivation method that supplies appropriate nutrients in accordance with the growth

status of crops and the nutritional balance of the soil (mineral balance). Uses techniques for developing healthy soil basedon diagnosis of soil conditions in conjunction with techniques to control the growth process of crops to maintain healthy
growth.

In our mainstay rice category, our Furusato-no-umai! line offering lunch boxes and rice balls wastremendously popular for its high-value-added products using ingredients made in Japan.
In the over-the-counter fast foods category, we continued to fortify our lineup with the aim of improving
store profitability. In particular, fast food ready-made dishes recorded robust sales due to the launch of hit
products such as‘Genkotsumenchi’(a fried minced meat ball). The number of stores equipped with
MACHI café offering freshly brewed coffee reached 4,294 stores as of August 31, 2013. The number ofstores with MACHI Café, which were first launched in fiscal 2011, is projected to expand to about 8,000
stores by the end of this fiscal year. The number of stores with an in-store kitchen facility named
Machikado Chubo stood at 1,483 stores as of August 31, 2013.
In the delicatessen category, our efforts to develop products aimed at expanding our customer baseresulted in favorable demand for such products as ready-made dishes and salads.
Furthermore, we promoted product development of frozen dessert items for the high summer season.
Hugely popular items released included waffle-cone ice cream launched from the dessert category under
our original dessert brand UCHI café SWEETS, as well as the Frozen Sweets series frozen cupped dessert
launched from the over-the-counter fast foods category, which are served by thawing in the microwave
oven.

4

[Breakdown of sales at chain stores by merchandise category]
Fiscal period

Previous 1st Half

Current 1st Half

March 1, 2012 to August 31, 2012

March 1, 2013 to August 31, 2013

Sales

Percentage of

Sales

Percentage of(Millions of yen)

Total (%)

(Millions of yen)

Total (%)

Product group
Processed foods

543,05655.9

548,080

55.2

Fast foods

188,39619.5

206,860

20.9

Daily delivered foods

141,21114.5

141,119

14.2

Nonfood products

98,292

10.1

96,7169.7

970,956

100.0

992,776

100.0

Total

Note: The above figures represent sales of convenience stores managed by the Group.

In sales promotions, the Group implemented programs with the aim of achieving a high return on
investment (ROI), mainly focusing on advertisements using the mass media for the summer season when
the highest demand is expected. Specifically, TV commercials on rice balls, fast-food ready-made dishes,and dessert items were aired.
We proactively implemented a point-rewarding campaign targeting Ponta members to motivate purchasewith the aim of increasing the rate of repeat visits.
Total Ponta members reached 56 million as of August 31, 2013, including members that joined throughother participating companies.
The sales ratio of Ponta members reached approximately 47%.

[Store Operations]
In store operations, by using the store-by-store analysis reports formulated based on Ponta members’ data,
which we started distributing to franchised stores in March, we encouraged sharing of initiatives andknowledge among all stores and continued striving to achieve merchandise assortment and store features
tailored to each store.
Furthermore, we have also continued implementing measures to streamline our order placement
procedures and reduce lost opportunities. Going forward, we will further push forward with our efforts toachieve merchandise assortment that suits customers visiting each store by leveraging Ponta members’
data and implementing shelf allocation tailored to the locational characteristics of each store.

[Store Development and Store Format Strategy]
In opening new stores, the Group has focused on maximizing return on investment (ROI) and has strictly
adhered to its proprietary standards for opening stores, in addition to prioritizing profitability.

5[Change in the Total Number of Stores]
Total stores as of

Change during

Total stores as ofFebruary 28, 2013

fiscal year

August 31, 2013

LAWSON

9,642

245

9,887

NATURAL LAWSON

110

(1)

109

LAWSON STORE100

1,224

(19)

1,205

Total

10,976225

11,201[Distribution of Stores in Japan by Region (As of August 31, 2013)]
NumberPrefecture

NumberPrefectureof stores

NumberPrefectureof stores

NumberPrefectureof stores

NumberPrefectureof storesof stores

Hokkaido

591

Saitama

473

Mie

109

Okayama

138

Saga

63

Aomori

191

Chiba

448

Ishikawa

100

Hiroshima

162

Nagasaki

97

Akita

176

Ibaraki130

Toyama184

Yamaguchi

115

Oita

151

Iwate

158

Tokyo

1,558

Fukui

104

Tottori

104

Kumamoto

106

Miyagi

207

Kanagawa

825

Kyoto

268

Shimane106

Miyazaki93

Yamagata

68

Shizuoka

207

Shiga

137

Kagawa110

Kagoshima

119

Fukushima

92

Yamanashi

98

Nara

101

Ehime

172

Total

Niigata119

Nagano149

Wakayama

114

Tokushima

114

Tochigi

130

Aichi

525

Osaka

1,003

Kochi

65

Gunma

84

Gifu

135

Hyogo

602

Fukuoka

400

The number of LAWSON STORE 100 fresh foods convenience stores reached 1,205 as of August 31,
2013. Conversion of company-operated stores into franchised stores is steadily progressing. In addition,
the number of fresh food-type LAWSON stores, which are enhanced conventional LAWSON stores witha stronger assortment of perishable foods and daily delivered foods, totaled 5,985 as of August 31, 2013.
With the aim of steadily supplying high-quality products, we are operating ten Lawson Farms in Japan,
which are partially funded by the Group, and are selling fresh vegetables produced at these farms
primarily at fresh food-type convenience stores.
In August 2013, Lawson, Inc. acquired from Eisai Co., Ltd. 70% of the total number of issued stocks of
Eisai Seikaken Co., Ltd., which owns the trademark of the Nakashima Farming Method mentioned earlier
and patents for the fertilizer developed in connection with this method. One of the most prominent
mineral farming techniques developed in Japan, the Nakashima Farming Method enables production ofsafe, reliable, and high quality fruits and vegetables. Since April 2012, Nakashima Farming
Method-certified Lawson Select pre-cut vegetables have been sold at Lawson stores in the Kanto
Koshinetsu region, enjoying a great popularity with customers. We will be adopting the Nakashima

6

11,201

Farming Method at Lawson Farms nationwide in order to expand our offering of high-value-added fruits
and vegetables that are safe, reliable, and rich in minerals.
The number of LAWSON chain stores operated by Lawson Okinawa, Inc. in Okinawa Prefecture reached
158 as of August 31, 2013.

[Overseas Operations]
In the People’s Republic of China, the Group’s operating companies shown on the following table haveopened stores in Shanghai, Chongqing, Dalian, and Beijing. In May 2013, we established Beijing Lawson,
Inc. which opened two stores in August. In Indonesia, PT MIDI UTAMA INDONESIA Tbk, in which
Lawson Asia Pacific Holdings Ptd. Ltd. (hereinafter, “LAP”), our Asian umbrella subsidiary in Singapore,holds a 30% stake, operates Lawson stores. In Thailand, Saha Lawson Co., Ltd. (hereinafter, “Saha
Lawson”), a joint venture between LAP and the SAHA Group, Thailand’s leading distributor of consumer
goods, operates stores under the store brand of LAWSON108. Starting this second quarter, Saha
Lawson’s financial performance has been posted on the Group’s consolidated profit and loss statement.

[Distribution of LAWSON Brand Stores Overseas by Region (As of August 31, 2013)]
CompanyCountry/region

Number of stores(As of February
28, 2013)
305

Changeduring fiscal
year
(8)

Number of stores(As of August
31, 2013)
297

Shanghai Hualian Lawson, Inc.

Shanghai, China

Chongqing Lawson, Inc.

Chongqing, China

49

16

65

Dalian Lawson, Inc.

Dalian, China

8

4

12

Beijing Lawson, Inc.

Beijing, China

-

2

2

Saha Lawson Co., Ltd.

Bangkok, Thailand

-

15

15

PT MIDI UTAMA INDONESIA Tbk

Indonesia

83

(20)

63

Lawson USA Hawaii, Inc.

Hawaii, U.S.A.

2

2

4

447

11

458

Total

*Saha Lawson Co., Ltd. possesses 251 stores under the “108 Shop” brand in addition to the Lawson108
stores above.

(Other Businesses)
In addition to Convenience business and Overseas business, the Group is involved in the Entertainment &Home Convenience business, and other businesses.
Lawson HMV Entertainment, Inc., the Company's subsidiary that operates Entertainment & Home
Convenience business posted a solid performance led by an increase in ticket sales of concerts, events andleisure activities.Lawson ATM Networks, Inc., which operates a financial services-related business,started providing financial services for Tokyo Tomin Bank and ORIX Bank.
7

A solid financial performance was displayed by Lawson ATM Networks, with the total number of its
financial institution partners reaching 61 nationwide including online banks and the number of ATMs
installed nationwide totaling 9,935 (up 476 year on year) as of August 31, 2013.
(2) Qualitative Information Regarding Changes in Consolidated Financial Indicators(i) Financial Position at the First Half end
As of August 31, 2013, total current assets stood at ¥216,587 million yen, climbing ¥36,290 million fromFebruary 28, 2013, the end of the previous fiscal year. This reflected an increase of ¥15,515 million in cash
and deposits mainly due to the end of the first six months under review falling on a bank holiday, and a riseof ¥11,154 million in accounts receivable-other because of an increase in transaction volume at subsidiarycompanies. Noncurrent assets grew ¥10,095 million from February 28, 2013 to ¥409,608 million, mainly
owing to an increase of ¥10,585 million in property and store equipment resulting from opening of newstores. Consequently, total assets climbed ¥46,385 million from the end of the previous fiscal year to¥626,195 million.
As of August 31, 2013, total current liabilities increased ¥30,457 million from the end of the previous fiscal
year to ¥270,251 million, mainly reflecting an increase of ¥21,247 million in accounts payable-trade owing
to a rise in the number of stores and total procurement value across the entire chain, as well as a growth of¥11,720 million in accounts payable-other owing to the end of the first six months under review falling on abank holiday. Noncurrent liabilities stood at ¥113,965 million, growing ¥4,131 million from February 28,
2013, mainly owing to lease obligations growing ¥4,339 million due to opening of new stores.
Consequently, total liabilities increased ¥34,589 million from the end of the previous fiscal year to¥384,216 million.
As of August 31, total net assets stood at ¥241,978 million, climbing ¥11,796 million from February 28,
2013. This was mainly due to an increase resulting from a first six months’ net income of ¥19,047 million,a decrease resulting from payment of ¥9,989 million in dividends, foreign currency translation
adjustments of ¥1,592 million, and a growth of ¥1,215 million in minority interests. Consequently,
shareholders’ equity ratio amounted to 37.8%, down from 39.1% as of the end of the previous fiscal year.

(ii) Cash Flows during the First Six Months
Cash and cash equivalents at August 31, 2013 were ¥86,281 million, up ¥13,515 million comparedwith February 28, 2013.
Operating activities provided net cash of ¥61,744 million, an increase of ¥8,423 million from thecorresponding period of the previous fiscal year, mainly due to a rise in accounts payable—other.
Investing activities used net cash of ¥29,841 million, an increase of ¥884 million from thecorresponding period of the previous fiscal year, mainly due to a growth in payment for purchase ofstocks of subsidiaries and affiliates.

8

Financing activities used net cash of ¥19,467 million, an increase of ¥4,730 million from thecorresponding period of the previous fiscal year, mainly due to a net increase in short-term loans
payable.
(3) Qualitative Information Regarding Consolidated Financial Forecasts
We have amended the gross operating revenue forecast for the 2013 fiscal year.
The business forecasts and future prospects in this document are made based on information currently
available and contain potential risks and uncertainties. As such, actual business results may significantly
differ from those expressed or implied in the forecasts due to changes in various factors.

2．
．Other(1) Change in important subsidiaries during the period (Changes in certain specified subsidiaries resulting
in revised scope of consolidation): No(2) Adoptions of accounting methods particular to presentation of quarterly financial statements: No(3) Changes in accounting policies, changes in accounting estimation, retrospective restatement: Yes(Changes in accounting policies that are difficult to differentiate from changes in accounting estimation)
Pursuant to an amendment in the Corporation Tax Act, the Company and its domestic consolidated
subsidiaries have changed their depreciation method with respect to properties and store equipment
acquired on and after March 1, 2013, starting from the first quarter of the consolidated fiscal 2013 underreview. The impact of this change on operating income, ordinary income, and income before income taxes
and minority interests for the consolidated the first six months fiscal 2013 is minimal.

93. Consolidated Financial Statements etc.
(1)Consolidated Balance Sheets (Unaudited)（Millions of yen）

As of August 31, 2013 and February 28, 2013
February 28, 2013

August 31, 2013

Cash and deposits

84,770100,285

Accounts receivable-due from franchised stores

25,374

27,121

Merchandise

8,963

9,029

Accounts receivable-other

46,00857,163

Deferred tax assets

4,656

4,393

Other

11,804

20,435

Allowance for doubtful accounts(1,281)(1,842)

180,296

216,587

242,934

255,709

Accumulated depreciation(124,562)(130,545)

Buildings and structures, net

118,372

125,164

Vehicles, tools, furniture and fixtures

67,39967,315

Accumulated depreciation(52,637)(53,539)

Vehicles, tools, furniture and fixtures, net

14,761

13,77596,251

108,698

Accumulated depreciation(30,452)(37,780)

Lease assets, net

65,79970,917

Other

10,205

9,866

Subtotal

209,138

219,724

Software23,914

21,542

Goodwill

9,683

9,977

Other

491

494

Subtotal

34,08932,014Long-term loans receivable

34,58033,320

Guarantee deposits

86,10985,925

Deferred tax assets

16,215

17,037

Other

20,596

22,694

Allowance for doubtful accounts(1,217)(1,107)

Subtotal

156,285

157,869

Total

399,513409,608

Total assets

579,809626,195

Current assets:

Total
Noncurrent assets:
Property and store equipment
Buildings and structures

Lease assets

Intangible assets:

Investments and other assets:10

（Millions of yen）
February 28, 2013

August 31, 2013

Accounts payable-trade87,187

108,435

Accounts payable-due to franchised stores

1,403

1,695

Short-term loans payable

1,431

180

Lease obligations

14,48915,715

Accounts payable-other

26,10537,826

Income taxes payable

14,474

13,494

Deposits received

87,52984,629Provision for bonuses

2,544

1,980

215

162

4,412

6,130

239,794

270,251

Lease obligations

47,20751,546

Provision for retirement benefits

9,898

10,503332

368

Long-term guarantee deposited

34,80433,324

Asset retirement obligations

16,682

17,368

907

854

Total

109,833

113,965

Total Liabilities

349,627

384,216

Capital stock

58,50658,506

Capital surplus

47,71847,731Retained earnings

121,154130,212

Treasury stock(1,593)(1,572)

225,785

234,877

78(170)

Revaluation reserve for land

(567)

(567)

Foreign currency translation adjustment

1,179

2,772

Total accumulated other comprehensive income

690

2,035

Subscription rights to shares

427

571

Minority interests

3,279

4,494

Total net assets

230,181

241,978

Total Liabilities and net assets

579,809626,195

Current liabilities:

Provision for point card certificates
Other
Total
Noncurrent liabilities:

Provision for retirement benefits to executive officers

Other

Shareholders’ equity:

Total Shareholders’ equity
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities11(2) Consolidated Statements of Income (Unaudited)
For the 1st Half of the fiscal year (From March 1, 2012 to August 31, 2012) (From March 1, 2013 to August 31, 2013)（Millions of yen）
August 31, 2012

August 31, 2013

Gross operating revenue

248,963

248,197

Net sales

100,843

88,28675,58066,451

25,263

21,834

Income from franchised stores

117,183

123,424

Other

30,93636,486

Operating revenue

148,119

159,910

Operating gross profit

173,382

181,745

138,828

146,120

34,55435,624Non-operating income:

925

1,274

Interest income

360

406

Other

564

867

1,219

1,366

Interest expenses

602

649

Loss on cancel of lease contracts

236

404

Other

379

311

34,26035,533309-

Gain on sales of investment securities

145-

Gain on bargain purchase

153

-

Other

10

-

3,570

3,456

664

1,241

2,700

1,815

205

399

Income before income taxes and minority interests

30,99832,077

Income taxes:

13,024

12,990

Income taxes-current

12,085

13,414

Income taxes-deferred

939

(424)

17,97419,087112

39

17,861

19,047

Cost of sales
Gross Profit

Selling, general and administrative expenses
Operating income
Non-operating income and expenses:

Non-operating expenses:

Ordinary income
Extraordinary income and loss:
Extraordinary income:Extraordinary loss:
Loss on retirement of noncurrent assets
Impairment loss
Other

Income before minority interests
Minority interests in income
Net income

12Consolidated Statements of Comprehensive Income (Unaudited)
For the 1st Half of the fiscal year (From March 1, 2012 to August 31, 2012) (From March 1, 2013 to August 31, 2013)（Millions of yen）
August 31, 2012
Income before minority interests

August 31, 2013

17,97419,08752(248)

Foreign currency translation adjustment

(179)

1,497

Share of other comprehensive income of associates accounted

(299)

37

Total other comprehensive income

(425)

1,286

Comprehensive income

17,54820,373

Owners of the parent

17,43020,392

Minority interests

117

(18)

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

for using equity method

Comprehensive income attributable to13

(3)Consolidated Statements of Cash Flows(Unaudited)
For the 1st Half of the fiscal year (From March 1, 2012 to August 31, 2012) (From March 1, 2013 to August 31, 2013)(Millions of yen)August 31, 2012

August 31, 2013

Income before income taxes

30,99832,077

Depreciation and amortization

20,82522,809

Increase (decrease) in provision for retirement benefits

584

604

Increase (decrease) in allowance for doubtful accounts(14,499)

268

Interest income

(360)

(406)

Interest expenses

602

649

Impairment loss

2,700

1,815

Loss on retirement of noncurrent assets

664

1,241

Other loss (gain)

(683)

640

Decrease (increase) in notes and accounts receivable-trade415(1,645)Decrease (increase) in accounts receivable-other(5,669)(10,748)

Decrease (increase) in claims provable in bankruptcy, claims provable

14,47589

Increase (decrease) in notes and accounts payable-trade

17,885

19,966

Increase (decrease) in accounts payable-other

1,374

11,343

Increase (decrease) in deposits received

1,363(2,904)

Increase (decrease) in guarantee deposits received(238)(1,485)

Increase/decrease in other assets/liabilities(2,416)

1,617

Subtotal

68,02175,932

Interest income received

355

405

Interest expenses paid

(598)

(642)

(14,456)(13,950)

53,321

61,744

Payments into time deposits(11,900)(14,000)

Proceeds from withdrawal of time deposits

10,10012,000Purchase of stocks of subsidiaries and affiliates(625)(3,155)Purchase of investments in subsidiaries resulting in change in scope

480

1,661

Purchase of property, plant and equipment(20,130)(16,984)

Purchase of intangible assets(2,589)(2,240)Other(4,291)(7,122)(28,957)(29,841)

Net cash provided by (used in) operating activities:

in rehabilitation

Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities:of consolidation

Net cash provided by (used in) investing activities

14

Net cash provided by (used in) financing activities:
Net increase (decrease) in short-term loans payable

1,128(1,443)

Repayments of lease obligations(6,578)(8,194)

Cash dividends paid

(9,289)(9,989)2

160(14,736)(19,467)

12

1,079

Net increase (decrease) in cash and cash equivalents

9,639

13,515

Cash and cash equivalents at beginning of period

73,67072,766

Cash and cash equivalents at end of period

83,30986,281Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents15(4) Notes on Premise of Going Concern
Not Applicable.

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

16