Flash Report on the Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending February 28, 2019
July 11, 2018
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: July 13, 2018
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, 2018 (from March 1, 2018 to May 31, 2018)(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
May 31, 2018
May 31, 2017
Note: Comprehensive income:Gross operating
revenue

Operating income

Ordinary income

Millionsof yen170,516
159,216

Millionsof yen12,677
16,252Millionsof yen12,063
15,982

%
7.1
6.9

%
(22.0)(6.9)

For the first quarter ended May 31, 2018
For the first quarter ended May 31, 2017%(24.5)(4.2)

Profitattributable toowners of parent
Millions%of yen6,169(35.7)
9,597
8.8

6,334 million yen
9,754 million yen(35.1)%
21.5%

Profit per share
Yen
61.65
95.96

Diluted profit per share
Yen
61.63
95.87

Total assets

Net assets

Millions of yen

Millions of yen

Shareholders’ equity
ratio%

May 31, 2018

956,709

274,91028.1

February 28, 2018

900,256

281,446

30.6

For the first quarter ended
May 31, 2018
May 31, 2017(2) Consolidated financial position

As ofReference: Shareholders’ equity:
As of May 31, 2018
As of February 28, 2018269,242 million yen
275,658 million yen

2. Dividends

2017 fiscal year

1Q
Yen
－

2018 fiscal year－2018 fiscal year (forecast)

1H
Yen
127.50

Annual dividends per share
3Q
Year-end
Yen
Yen－
127.50

Total
Yen
255.00127.50

255.00127.50Note: Revision of the most recent dividends forecast: None－

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 1H (cumulative)
360,000
9.3
30,500 (21.7) 29,000(24.6) 17,000 (28.1) 169.90
2018 fiscal year
732,000 11.4
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
Note: For changes in accounting policies associated with revision in accounting standards, please refer to “2.
Consolidated Financial Statements and Main Notes, (3) Notes to Consolidated Financial Statements(Changes in Accounting Policies)” on page 13.
(4) Number of shares outstanding (common stock)
1. Number of shares outstanding at the end of period (including treasury shares)
As of May 31, 2018:
100,300,000
As of February 28, 2018:
2. Number of treasury shares at the end of period
As of May 31, 2018:242,568

As of February 28, 2018:

3. Average number of shares during the period (cumulative three months)
As of May 31, 2018:
100,055,902
As of May 31, 2017:

100,300,000

244,849
100,014,831

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 first quarter of fiscal 2018, three months from March 1 to May 31, 2018, we have advanced andaccelerated our “1000-Day Action Plan,” which is in its final fiscal year, and focused our business activities onbuilding Lawson’s next-generation convenience store model. Changes in community needs resulting from anaging 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 first quarter of fiscal 2018 on a consolidated basis, gross operating revenue increased to170,516 million yen (up 7.1% from previous fiscal year), operating income decreased to 12,677 million yen(down 22.0% from previous fiscal year) and ordinary income decreased to 12,063 million yen (down 24.5%
from previous fiscal year). Profit attributable to owners of parent decreased to 6,169 million yen (down 35.7%
from previous fiscal year).
Furthermore, we also focused on promoting internal control and addressing operating risks across the entire
Group based on the 2018 Basic Policy for Improvement of Internal Control Systems. We will continue promotinginternal control across the board including companies that newly joined the Group.
Operating results by business segment were as follows:(Domestic Convenience Store Business)
In our convenience store business, we expanded our merchandise assortment offered in the evening andnighttime hours by promoting at LAWSON stores since March 2018 the GOCHISO-LAWSON (Enjoy meals
from Lawson) lineup (from Gochiso, meaning “feast”; colloquially shortened to “GOCHI-LAW”) comprisedof everyday ready-made dishes including bento lunchboxes, rice balls, deep-fried items, salads and soups. We
also succeeded in enhancing store productivity by such measures as introducing tablet terminals at LAWSON
stores in the previous fiscal year to further facilitate sales management of counter fast food items. Furthermore,with the aim of achieving higher cash-handling efficiency at stores, we are introducing in phases new point-ofsale (POS) cash registers (for sales information management) equipped with an automatic change dispenser
function at all our stores nationwide this fiscal year.
[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
not only existing stores but also new stores by strengthening our product lineup, and improving operations andfranchise support by headquarters.
As part of our efforts to enhance customer convenience and store operation productivity, we started a pilot
project on LAWSON Smartphone Payment, our mobile payment service, at three LAWSON stores in Tokyo2

in April 2018. The service allows customers to purchase items seamlessly at these LAWSON stores simply byscanning them on their smartphone using a dedicated app, thus eliminating the need to line up at the cash
register. We will evaluate utilization trends in the pilot to examine its expansion.
[Merchandising and Service Strategies]
On the merchandise side, we revamped the entire lineup of “Onigiriya,” our rice ball brand, in April 2018
by employing new and improved ingredients and production methods, which resulted in sales growth. In
addition, our “Motto! Yasai” (meaning “More vegetables!”) series featuring delicious and healthy fare was also
replaced with new dishes including Starchy Sauce Rice Bowl and Fried Rice Noodles containing half therecommended daily vegetable intake, which also sold well. We also launched some new products, including“NL Green Smoothie One Day 200 g,” which contains the equivalent of the recommended daily intake ofvegetables*1.
In the counter fast food range, our assortment of ready-made dishes offered during the evening and nighttime
hours was strengthened by expanding our lineup of packed dishes composed mainly of items that can go straightto the dinner table such as yakitori (grilled chicken) and croquettes.
In the dessert range, in April 2018 we launched “Chocolate Parfait” and “Chocolate Macaron” in the sixth
phase of our “Uchi Café SWEETS X GODIVA” series produced in collaboration with Godiva, which werehugely popular, especially among female customers. In addition, we also released “Soft Rice Cake stuffed with
Chocolate,” in June 2018 as our first Japanese dessert from the series.
On our sales promotion side, we rolled out Friday Sale campaigns offering a 20% discount on applicableproducts on Friday evenings. In addition, effective measures to attract customers were launched, including a“speed lottery” themed on “GENERATIONS from EXILE TRIBE,” which demonstrated our strength in theentertainment field.
*1 Recommended daily intake of vegetables: At least 350 g (Source: Health Japan 21 [Kenko Nippon 21],
Ministry of Health, Labour and Welfare)[Breakdown of Sales by Merchandise Category at Chain Stores in Domestic Convenience Store Business]
Fiscal period

Product categories
Processed foods

Previous 1st Quarter
From March 1, 2017
to May 31, 2017
Net sales
Percentage of(Millions of yen)
total (%)
280,613
53.3

Current 1st Quarter
From March 1, 2018
to May 31, 2018
Net sales
Percentage of(Millions of yen)
total (%)
296,079
53.0

Fast foods

121,900

23.2

130,777

23.4

Daily delivered foods

76,537

14.5

82,105

14.7

Non-food products

47,1469.0

49,8038.9

526,198

100.0

558,766

100.0

Total

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

3

[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 first quarter stood at 293 and 71 stores, respectively,
with the total number of stores reaching 14,214 as of the end of May 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, 258 stores were remodeled into LAWSON THREE F stores from August
2017 to May 2018, completing the brand transition with the planned exclusion of some stores. Meanwhile, a
total of 194 SAVE ON stores were remodeled into LAWSON stores from June 2017 to May 2018, with thebrand transition scheduled to be completed by the end of 2018.
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 a wider assortment of merchandise than conventional
LAWSON stores including over-the-counter pharmaceuticals, cosmetics and daily necessities. The number ofstores offering non-prescription drugs has reached 180 stores (includes 45 pharmacy LAWSON stores equippedwith drug-dispensing pharmacies) as of the end of May 2018. Moreover, the number of stores offering nursing
care consultation services has reached 16 as of the end of May 2018. Furthermore, we have also been expanding
our chain of “in-hospital LAWSON stores,” which feature strengthened focus on medical, sanitary, nursing andrehabilitation supplies in addition to merchandise and services offered at standard convenience stores. The
number of such stores has reached 300 as of the end of May 2018. Building on our expertise developed throughoperation of in-hospital LAWSON stores, we will continue supporting the well-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 customer needs for value.
*2 The numbers of store openings and closings and total number of stores in Japan include stores operatedby 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 of
May 31, 2018

13,044224

13,268

NATURAL LAWSON

143

(2)

141

LAWSON STORE100

805

－

805

13,992

222

14,214

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.

4

[Number of LAWSON stores by prefecture (As of May 31, 2018)]
Prefecture

Numberof stores

Hokkaido657

Ibaraki

212

Kyoto

339

Ehime

220

Aomori

251

Tokyo

1,720

Shiga

157

Tokushima

136

Akita

192

Kanagawa

1,100

Nara

138

Kochi

139

Iwate

172

Shizuoka

272

Wakayama

149

Fukuoka499

Miyagi

244

Yamanashi

128

Osaka

1,135

Saga

72

Yamagata

107

Nagano

176

Hyogo

679

Nagasaki

107

Fukushima

147

Aichi

693

Okayama

192

Oita

184

Niigata

228

Gifu

175

Hiroshima

216

Kumamoto

152

Tochigi

195

Mie

139

Yamaguchi

118

Miyazaki

106

Gunma

121

Ishikawa

104

Tottori

144

Kagoshima

195

Saitama681

Toyama192

Shimane146

Okinawa

225

Chiba

612

Fukui

114

Kagawa134

Total(domestic)

14,214Prefecture

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 500
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 is currently available at around 200 storesin Tokyo and some parts of Kanagawa. We will consider expanding the service area in the future.
As a result, Domestic Convenience Store Business posted gross operating revenue of 115,144 million yen (up6.2% from previous fiscal year) and segment profit of 10,172 million yen (down 22.3% from previous fiscal year).
(Seijo Ishii Business)
The number of directly operated Seijo Ishii stores, a high-end supermarket chain offering quality foods, reached
141 as of the end of May 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 21,515 million yen (up 9.2% from previous
fiscal year) and segment profit of 1,874 million yen (up 5.7% from previous fiscal year).
5

(Entertainment-related Business)
With regards to our entertainment-related business, Lawson HMV Entertainment, Inc., which forms the core of
the business, continued to secure top-class ticket transaction value in the ticketing industry. HMV, which sells
music CDs and DVDs, also operates the HMV Record Shop specializing in second-hand analog records and CDs.
Including the HMV Record Shop, the number of HMV stores totaled 56 as of the end of May 2018. As of the endof May 2018, United Cinemas Co., Ltd. operates cinemas at 40 sites, offering 351 screens nationwide including
those operated on commission. Effective June 1, 2018, Lawson HMV Entertainment, Inc. changed its name to
Lawson Entertainment, Inc. The company will continue consolidating and promoting the Lawson Group’s
entertainment business encompassing the ticketing business, merchandise retail business and cinema complex
business with the aim of offering an expanded range of products and services in response to customers’ needs.
As a result, Entertainment-related Business posted gross operating revenue of 19,326 million yen (up 1.2%
from previous fiscal year) and segment profit of 1,149 million yen (down 12.7% from previous fiscal year).
(Other Business)
In addition to the aforementioned businesses, the Group is also involved in the Overseas Business and the
Financial services 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, maintaining a steady increase trajectory. The
number of LAWSON stores in the entire country reached 1,580 as of the end of May 2018.

6

[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 May 31,

2018)

2018)

China Shanghai and surrounding area

865

118

983

China Chongqing

165

8

173

China Dalian

122

7

129

China Beijing

73

6

79

China Wuhan

198

18

216

Thailand

101

3

104

Indonesia

37

－

37

Philippines

33

1

34

United States of America Hawaii

2

－

2

1,596

161

1,757

Total

With respect to our Financial services business, the number of ATMs installed in LAWSON and other storesincreased. We strengthened partnerships with new financial institutions bringing the total number of our
financial institution partners to 93 nationwide (up 3 from previous fiscal year), including online banks, and thenumber of ATMs installed nationwide to 13,015 (up 282 from previous fiscal year) as of the end of May 2018.
Lawson Bank Preparatory Company, Inc. (hereafter, the “Preparatory Company”), which was established in
November 2016, has been preparing to establish a bank. As a result of an absorption-type company split
effective June 1, 2018, the Preparatory Company absorbed Lawson’s ATM business jointly operated with
Lawson ATM Networks, Inc. The preliminary examination for which Lawson, Inc. had applied to the Financial
Services Agency (FSA) in order to obtain a banking license was completed on June 26, 2018. In response, thePreparatory Company changed its name to Lawson Bank, Inc., effective July 2, 2018, and plans to apply to the
FSA for a banking license pursuant to Article 4 of the Banking Act.
As a result, Other Business posted gross operating revenue of 16,664 million yen (up 18.9% from previous
fiscal year) and segment loss of 519 million yen (in contrast to posting segment profit of 67 million yen in thesame period of the previous fiscal year).

7(2) Explanation Regarding Consolidated Financial Position
Current assets increased by 42,401 million yen from the end of the previous fiscal year to 274,261 million
yen, mainly reflecting an increase of 26,096 million yen in cash and deposits. Non-current assets increasedby 14,052 million yen from the end of the previous fiscal year to 682,448 million yen, mainly reflecting
increases of 5,466 million yen in property and store equipment and 5,796 million yen in intangible assets.
Consequently, total assets increased by 56,453 million yen from the end of the previous fiscal year to 956,709
million yen.
Current liabilities increased by 59,598 million yen from the end of the previous fiscal year to 438,821
million yen, mainly reflecting an increase of 73,400 million yen in deposits received, and a decrease of 33,321
million yen in short-term loans payable. Non-current liabilities increased by 3,390 million yen from the endof the previous fiscal year to 242,977 million yen, mainly reflecting an increase of 2,953 million yen in leaseobligations. Consequently, total liabilities increased by 62,989 million yen from the end of the previous fiscal
year to 681,798 million yen.
Net assets decreased by 6,535 million yen from the end of the previous fiscal year to 274,910 million yen,mainly reflecting a decrease of 6,587 million yen in retained earnings. Consequently, shareholders’ equity
ratio was 28.1%, down from 30.6% as of the end of the previous 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, 2019, the financial forecasts remain unchanged from those announced on April 11, 2018.
Forecast of non-consolidated operating results for the first half and full year of the fiscal year ending
February 28, 2019 announced on April 11, 2018 has been partially revised. For details, please refer to the“(Revision/Revision of Numeric Data) Notice Concerning Partial Revision to LAWSON’s Consolidated
Financial Statements (Japanese Standards) for the Fiscal Year Ended February 28, 2018” and “NoticeConcerning Partial Revision to Supplements for Financial Results for the Fiscal Year Ended February 28,
2018”.

8

2. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheet
As of February 28, 2018 and May 31, 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 1st Quarter
As of
May 31, 201830,124
46,59916,426
18,913
82,6333,411
33,779(28)
231,860

56,221
44,391
19,84820,67396,054
2,719
34,408(55)
274,261

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

201,284
16,052
125,715
12,349355,401

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

45,00450,4989,924
566
105,994

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

47,694
101,494
25,787
47,122(1,046)
221,052
682,448956,709(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 1st Quarter
As of
May 31, 2018

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

133,818
3,019
948
34,096
67,4102,228
183,029
2,905
11,364
438,82155,469113,617
2,616

55,096
116,571
3,099

271

287

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

14,10429,811
24,007
242,977
681,798

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

58,506
46,693
159,537(1,031)
263,705

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

2,363
(575)
4,443
(694)
5,537
148
5,518
274,910956,709(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, 2018 and the first 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
Total extraordinary income
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 1st Quarter
From March 1, 2017
to May 31, 2017
159,216
64,38444,05520,328Current 1st Quarter
From March 1, 2018
to May 31, 2018
170,516
71,99849,534
22,46370,50924,322
94,832
115,160
98,90816,25273,82924,68898,517
120,981
108,304
12,677

174

192

180

223

380
735

491
907

478
254
272
1,005
15,982

594
552
373
1,521
12,063

302
302

－
－

734
205
149
1,088
15,196
3,317
2,066
5,384
9,812
214
9,597

838
516
13
1,369
10,694
3,705
807
4,513
6,181
12
6,169

Consolidated Statement of Comprehensive Income
For the first quarter of the fiscal year ended February 28, 2018 and the first 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 1st Quarter
From March 1, 2017
to May 31, 2017
9,812

Current 1st Quarter
From March 1, 2018
to May 31, 2018
6,181

92
(187)
37
(57)
9,754

278
(158)
32
153
6,334

9,535
219

6,328
5

(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