Flash Report on the Consolidated Result
for the 3rd Quarter Ended February 28, 2015
January 9, 2015
Listed Company Name: Lawson, Inc.
Tokyo Stock Exchange (First Section)
Code No.: 2651
(URL http://www.lawson.co.jp/company/ir/index.html)
Company Representative: Genichi Tamatsuka, Representative Director, President and CEO
Contact: Yutaka Yoshitake, Executive Vice President and CFO
Tel.: +81-3-5435-2773
Scheduled date for submission of quarterly earnings report: January 14, 2015
Scheduled date for payment of dividend: －Supplementary documents quarterly results: Yes
Presentation of quarterly results: None
Note: Amounts below one million yen are truncated
1. Consolidated performance for the current 3rd quarter of the current period (from March 1, 2014, to November 31, 2014)(1) Consolidated operating results (accumulated)
Note: Percentages for gross operating revenue, operating income, ordinary income and net income show increase(decrease) compared to the same period of previous year.
Gross operating revenue
Operating income
Ordinary income¥ Million%¥ Million%¥ Million%
Current 3rd Quarter
362,461(2.0)
59,773
9.1
59,7008.4
Previous 3rd Quarter
370,035(0.6)
54,773
2.4
55,062
3.6

Current 3rd Quarter
Previous 3rd Quarter
Note: Comprehensive income:Net income¥ Million
32,94930,468Net income per share¥
329.79305.00%
8.1
6.7

Current 3rd Quarter:
Previous 3rd Quarter:

34,053 million yen
31,526 million yen

Fully diluted profit per share¥
329.27304.44(8.0%)(12.1%)(2) Consolidated financial position
Total assets

Net assets

Shareholders’ equity ratio¥ Million
780,604
620,992¥ Million
263,190
250,497

%
32.7
39.5

Current 3rd Quarter:
Previous fiscal year:

255,585 million yen
245,289 million yen

Current 3rd Quarter
Previous fiscal year
Reference: Shareholders’ equity:

2. Dividends status2013 fiscal year

1Q
¥
－

1H
¥
110.002014 fiscal year－

120.00

Annual dividends per share
3Q
Year-end dividend¥¥－
110.00Total¥
220.00－2014 fiscal year (forecast)
Note: Revision of forecast for dividends published in the most recent: None

120.00240.003. Forecast consolidated performance for 2014 fiscal year （from March 1, 2014 to February 28, 2015）
Note: Percentages for gross operating revenue, operating income, ordinary income and net income show increase(decrease) from previous year.
Gross operating revenue
2014 fiscal year

¥ Million
487,000%
0.4

Operating income

Ordinary income¥ Million
75,000¥ Million
73,900

%
10.1

%
7.3

Net income¥ Million
38,900%2.5

Reference: Forecast net profit per share for the 2014 fiscal year: 389.00 yen
Note: Revision of forecast for consolidated performance published in the most recent: None
4. Notes(1) Change in important subsidiaries during this quarterly consolidated period (Changes in certain specified subsidiaries
resulting in revised scope of consolidation): None
Added: None
Excluded: None
(2) Adoptions of special accounting methods in presentation of quarterly financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, retrospective restatements
1. Changes of accounting policies associated with revision in accounting standards: None
2. Other changes: Yes
3. Changes in accounting estimates: Yes
4. Retrospective restatements: None
(4) Number of issued shares:
1. The number of the stocks issued in the end of term
November, 2014:
100,300,000
February, 2014:
100,300,000
2. The number of treasury shares in the end of term
November, 2014:
300,985
February, 2014:
395,953
3. Average number of shares during the term
November, 2014:
99,909,709
November, 2013:
99,896,486
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 toguarantee the Company’s achievement. Actual results may differ significantly from these forecasts due to many 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 Information Such As Forecast
Consolidated Performance” on page 7.

1．Qualitative Information Regarding Quarterly Financial Results(1) Explanation Regarding Consolidated Operating Results
During the third quarter of fiscal 2014, nine months from March 1 to November 30, 2014, the Lawson Group(hereinafter, the “Group”) continuously 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 philosophyof “Creating Happiness and Harmony in Our Communities.”. Based on its analysis of purchase data retrieved
from the multi-partner loyalty program, Ponta, the Group focused on customer relationship management(CRM)*1 and supply chain management (SCM)*2 in order to offer a merchandise assortment that meets the
specific needs of customers in each neighborhood.
*1

CRM: A marketing management method for providing merchandise and services that meet the specificneeds of customers.
*2

SCM: A business administration method for comprehensively managing all stages of business, fromprocurement to sales, to streamline and optimize the entire business process.
As a result, for the third quarter of fiscal 2014 on a consolidated basis, due to an increase in the number offranchised stores and a decrease in the number of company-operated stores, although operating revenue
increased by ¥7,129 million, net sales decreased by ¥14,703 million, and gross operating revenue decreased to¥362,461 million down 2.0% year on year from corresponding period of the previous fiscal year. In accordancewith this, cost of sales also decreased by ¥11,225 million. Selling, general, and administrative expenses
decreased by ¥1,350 million to ¥215,915 million down 0.6% year on year due to a decrease of depreciation, etc.
As a result, operating income increased by ¥5,000 million, up 9.1% year on year, to ¥59,773 million. Ordinary
income increased by ¥4,637 million up 8.4% year on year, to ¥59,700 million. Net income increased by ¥2,481
million, up 8.1% year on year, to ¥32,949 million.

Operating results by business segment are as follows.

(Domestic Convenience Store Business)[Merchandising and Service Strategies]
On the merchandise front, we strengthened merchandise assortment throughout the year by expanding ourlineup of ready-made meals, including carbohydrate-based foods such as lunch boxes, rice balls and sandwiches,and over-the-counter fast foods, in order to enhance satisfaction of customers visiting our stores.
We reviewed coffee sizes and prices offered on the menu at “MACHI Café”, an in-store café offering freshly
brewed coffee, and newly introduced “Blend Coffee” and “Iced Coffee” in S size at a price of 100 yen, including
tax. The number of stores equipped with “MACHI café” further expanded to 9,726 stores as of the end of
November 2014. In addition, we released “Ougon Chicken Umashio”, a new fried chicken product flavoredwith rock salt, steamed at low temperature to maintain a tender and juicy texture, and finished with an ultimately
thin crust. The product became a huge hit following our conventional “Ougon Chicken” offering. We proceededwith the installation of our in-store kitchen facility “Machikado Chubo”, where such items as “Thick Pork Katsu
Sandwiches” and “Machikado Chubo Curry” are cooked. The number of stores equipped with the facility-1-reached 2,817 as of the end of November 2014.
In the dessert category, our “Pure Series” simple dessert made with a minimum number of carefully selected
ingredients to bring out their inherent flavors continued to be popular among customers.
In addition to “Bran Bread”*3 for carbohydrate-conscious consumers, the Group also started selling “Soba[buckwheat] Noodles Containing Dietary Fiber”, “Special Bread (two slices)”, and “Karada Ouen [healthy]
Rolls (two)”, which have been approved as food for specified health uses (FOSHU) in recognition of their“Suppress Increases in Glucose Levels After Meals” ability. Moreover, as a “Health Station in Town”, we arealso continuing to reinforce our lineup of health-oriented products that are “Safe, Reliable, and Delicious”,
including “Pre-cut Vegetables” made with vegetables produced based on the “Nakashima Farming Method”*4,
one of the most prominent mineral farming methods in Japan. Based on these initiatives, we will further boost
Lawson’s corporate brand image as a “Health-promoting Company”.
In addition to the strengthening of these product line-up, we are increasing our lineup of “Gift Cards”*5
offered at our stores. Among them, “Variable Cards” launched ahead of other convenience chains, whose
value can be specified at purchase, is especially popular.
*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 withthe growth status of crops and the nutritional balance of the soil (mineral balance). Uses techniques fordeveloping healthy soil based on diagnosis of soil conditions in conjunction with techniques to control thegrowth process of crops to maintain healthy growth.
*5 Gift cards: Collective term for prepaid cards that can be used for online transactions.

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

Product group

Previous 3rd Quarter

Current 3rd Quarter

March 1, 2013

March 1, 2014

to November 30, 2013

to November 30, 2014

Sales

Percentage of

Sales

Percentage of(Millions of yen)

total (%)

(Millions of yen)

total (%)

Processed foods

811,42955.0

790,251

53.8

Fast foods

310,33421.1

324,630

22.1

Daily delivered foods

208,883

14.2

212,132

14.4

Nonfood products

143,4319.7

143,005

9.7

1,474,078

100.0

1,470,020

100.0

Total

As for sales promotions, we continued to strengthen the point-reward campaign targeting Ponta members.
Total number of Ponta members reached 66 million as of the end of November 2014, including members thatjoined through other participating companies. The sales ratio of Ponta members reached approximately 50%.

-2-

[Store Operations]
In store operations, we continued to reinforce adherence to the Three Essential Practices, which emphasizes(1) serving customers courteously; (2) offering a merchandise assortment focused on basic items with highdemand; and (3) keeping our stores and communities clean, in addition to expanding our lineup of healthconscious products. Notably, with the increasing number of stores equipped with “MACHI Café”, store
employees are more capable of offering products and services in a caring manner through better communication
with customers. We strived to further improve the quality of stores by clarifying the customer service goals tobe pursued by store employees and fostering leaders among them.
We will continue to promote merchandise assortments that best suit customers in each neighborhood byleveraging store-by-store analysis reports on Ponta members’ purchase data, shelf allocation tailored to thelocational characteristics of each store, and sharing of best practices presented at monthly area-based meetings
where we discuss area strategies with franchise store owners.

[Store Development and Store Format Strategy]
In opening new stores, the Group prioritized profitability based on its proprietary return on investment(ROI)-focused store development standard. With regard to store format strategy, we increased the number of
LAWSON MART stores, which were developed based on LAWSON STORE100, to 38 as of the end of
November 2014.
Furthermore, Lawson, Inc. signed a letter of intent on October 1, 2014 with convenience store operator
Poplar Co., Ltd. to form a capital and business alliance between the two companies. The details of thepartnership are currently under discussion. In addition, on October 28, 2014, a basic agreement was concluded
to establish a joint venture with SUNNY MART Co., Ltd., the parent company of Three-F Chu-Shikoku Co.,
Ltd., which is a regional operating company of Three-F Co., Ltd. We are planning to replace all store signs ofstores operated under the joint venture with LAWSON signs by the spring of 2015.
Since the deregulation of pharmaceutical sales in 2009, the Group has been striving to expand the numberof stores offering over-the-counter (OTC) pharmaceuticals by proactively hiring and fostering registered drug
sellers. Furthermore, by building partnerships in local area, in addition of healthcare items including OTC
pharmaceuticals, cosmetics, and daily necessities, the stores offer a merchandise assortment of around 5,000
items, twice as many as conventional Lawson stores. Moreover, the number of Pharmacy Lawson stores
equipped with drug-dispensing pharmacies reached 39 as of the end of November 2014. Through such initiatives,
the Group will continue to respond to changes in customer needs resulting from the aging of the population andan increase in the number of working women.
As a result, the total number of LAWSON, NATURAL LAWSON, and LAWSON MART (including
LAWSON STORE100) stores opened and closed during the third quarter of the fiscal year (nine months) underreview stood at 702 and 319 stores, respectively, with the total number of stores in Japan reaching 11,704 as ofthe end of November 2014.

-3-

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

Change during

Total stores as ofFebruary 28, 2014

fiscal year

November 30, 2014

LAWSON

10,108327

10,435

107

5

112

LAWSON STORE100/ LAWSON MART

1,202

(45)

1,157

Total

11,417287

11,704

NATURAL LAWSON

Note: Small stores are included in this figure.

[Number of LAWSON stores by prefecture (As of November 30, 2014)]
Prefecture

Number ofstoresPrefecture

Number ofstoresPrefecture

Numberof stores

Prefecture

Numberof stores

Hokkaido

621

Ibaraki

146

Kyoto

321

Ehime

187

Aomori

206

Tokyo

1,579

Shiga

153

Tokushima

126

Akita

186

Kanagawa

847

Nara

132

Kochi

67

Iwate

162

Shizuoka216

Wakayama

123

Fukuoka436

Miyagi224

Yamanashi

109

Osaka

1,024

Saga

67

Yamagata

76

Nagano

148

Hyogo

629

Nagasaki

104

Fukushima

102

Aichi

564

Okayama

143

Oita

166

Niigata

130

Gifu

148

Hiroshima

176

Kumamoto

136

Tochigi

135

Mie

108

Yamaguchi

122

Miyazaki

100

Gunma

91

Ishikawa

101

Tottori

108

Total(domestic)

Saitama

501

Toyama188

Shimane

114

Chiba

454

Fukui

106

Kagawa122

11,704

Note: Small stores are included in this figure.

In addition to the above, Lawson Minamikyushu, Inc. operates 205 LAWSON chain stores in Kagoshima
Prefecture and Lawson Okinawa, Inc. operates 172 LAWSON chain stores in Okinawa Prefecture as of the endof November 2014.

-4-

(Other Businesses)
In addition to domestic convenience store business, the Group is involved in overseas business,
Entertainment & Home Convenience business, financial services-related business, Seijo Ishii business and otherbusinesses.
With regards to overseas business, the Group’s operating companies, 4 companies shown in the following
table, opened LAWSON stores in Shanghai, Chongqing, Dalian, and Beijing in the People’s Republic of China.
In Indonesia, PT MIDI UTAMA INDONESIA Tbk, operates LAWSON stores. In Thailand, Saha Lawson Co.,
Ltd., a joint venture between LAP and the SAHA Group, Thailand’s leading distributor of consumer goods,
operates stores under the store brand of LAWSON 108 and 108SHOP. In addition, in Hawaii in the United States,
Lawson USA Hawaii, Inc. operates LAWSON stores.

[Distribution of LAWSON Brand Stores Overseas by Region]

CompanyCountry/region

Total stores

ChangeTotal stores

As of February

duringAs of November

28, 2014

fiscal year

30, 2014

Shanghai Hualian Lawson, Inc.

Shanghai, China

289

43

332

Chongqing Lawson, Inc.

Chongqing, China

77

21

98

Dalian Lawson, Inc.

Dalian, China

18

8

26

Beijing Lawson, Inc.

Beijing, China

5

9

14

Saha Lawson Co., Ltd.

Bangkok, Thailand

29

2

31

PT MIDI UTAMACapital City of Jakarta and

INDONESIA Tbk

its suburbs, Indonesia

61

(12)

49

Lawson USA Hawaii, Inc.

Hawaii, U.S.A.

4

－

4

483

71

554

Total

Note: Saha Lawson Co., Ltd. operates 181 108SHOP brand stores as of the end of November 2014 in addition
to the above LAWSON 108 stores. PT MIDI UTAMA INDONESIA Tbk operates 785 stores other than
LAWSON brand stores.

-5-With regards to Entertainment & Home Convenience business, Lawson HMV Entertainment, which forms
the core of entertainment related business, posted a solid performance led by an increase in ticket sales andcontinued to secure top position in the ticketing industry. The number of HMV stores that sell music CDs andDVDs totaled 53 as of the end of November 2014. Starting from the third quarter under review, the Group began
to incorporate into the consolidated statements of income the operating results of United Entertainment Holdings
Co., Ltd. and United Cinemas Co., Ltd, which have been acquired through a subsidiary.
Furthermore, we entered into a partnership with Amazon Japan K.K. in November 2014 and launched a newservice in Shizuoka Prefecture, which enables customers to pick up items ordered online from Amazon at
Lawson stores. We will strive to enhance customer convenience by additionally partnering with other companies
to establish an “Open Platform” based on the networks of Lawson stores that offer a range of services
encompassing ordering, collection, and home delivery.
Lawson ATM Networks, Inc., which operates a financial services-related business, posted a solid
performance owing to an increase in the number of ATMs installed, along with a rise in the number oftransactions. We started providing new financial services for Aeon Bank, Japan Net Bank, Aomori Bank in
October, Aichi Bank in November bringing the total number of our financial institution partners to 72
nationwide, including online banks, and the number of ATMs installed nationwide to 10,591 (up 473 year onyear) as of the end of November 2014.
Finally, on October 31, 2014, Lawson, Inc. acquired all shares of Seijo Ishii Co., Ltd., which operates Seijo
Ishii, a chain of small supermarkets that seeks to develop and manufacture high-value-added products. Byleveraging the business infrastructure of the Lawson Group, we aim to further reinforce Seijo Ishii’s strengths
and contribute to its enhancement of corporate value. At the same time, we will strive to strengthen our domestic
convenience store business by absorbing Seijo Ishii’s knowhow acquired as a manufacturing retailer andexpertise in product selection and presentation, including its central kitchen function.

(2) Explanation Regarding Consolidated Financial Position
As of November 30, 2014, total current assets stood at ¥255,215 million yen, climbing ¥59,430 million fromFebruary 28, 2014, the end of the previous fiscal year. This reflected an increase of ¥35,058 million in cash anddeposits mainly due to syndicate loan involved by business combination, and a rise of ¥7,528 million inmerchandise because of business combination and starting our wholesale business. Non-current assets grew
¥100,180 million from February 28, 2014 to ¥525,389 million, mainly owing to an increase of ¥45,633 million
in goodwill resulting from business combination and ¥32,385 million in property and store equipment resulting
from opening of new stores. Consequently, total assets climbed ¥159,611 million from the end of the previous
fiscal year to ¥780,604 million.
As of November 30, 2014, total current liabilities increased ¥73,905 million from the end of the previous
fiscal year to ¥320,612 million, mainly reflecting an increase of ¥22,165 million in current portion of long-termloans payable resulting from business combination, an increase of ¥21,096 million in accounts payable-tradeowing to a rise in the number of stores and total procurement value across the entire chain, as well as a growthof ¥16,377 million in deposits received owing to third party bill settlement. Non-current liabilities stood at-6-¥196,802 million, growing ¥73,014 million from February 28, 2014, mainly owing to an increase of ¥58,425
million in long-term loans payable due to syndicate loan involved by acquiring consolidated subsidiaries.
Consequently, total liabilities increased ¥146,919 million from the end of the previous fiscal year to ¥517,414
million.
As of November 30, total net assets stood at ¥263,190 million, climbing ¥12,692 million from February 28,
2014. This was mainly due to an increase resulting from third quarter net income of ¥32,949 million, a decrease
resulting from payment of ¥22,979 million in dividends, and a growth of ¥9,298 million in retained earnings.
Consequently, shareholders’ equity ratio amounted to 32.7%, down from 39.5% as of the end of the previous
fiscal year.

(3) Explanation Regarding Forward-looking Information Such As Forecast Consolidated Performance
The financial forecasts announced on October 7, 2014 remain unchanged.

-7-

2．Matters Related To Summary Information (Notes)(1) Change in important subsidiaries during the period (Changes in certain specified subsidiaries resulting inrevised scope of consolidation): Not Applicable(2) Adoptions of accounting methods particular to presentation of quarterly financial statements:
Not Applicable(3) Changes in accounting policies, changes in accounting estimation, retrospective restatement(Changes in accounting policies that are difficult to differentiate from changes in accounting estimation)
Lawson, Inc. and its domestic consolidated subsidiaries had previously adopted the declining-balancemethod as the depreciation method for property, store and equipment (excluding lease assets). Starting from thefirst quarter of the consolidated fiscal year under review, however, the depreciation method was changed to thestraight-line method.
Under the Lawson Group’s policy of placing emphasis on existing stores, the Group adopted a strategy ofenhancing their competitiveness through such initiatives as capitalizing on membership card data, and started
restructuring of group businesses. Accordingly with this opportunity, the depreciation method for property, store
and equipment was reviewed. As a result, it was considered appropriate to allocate equal amounts ofdepreciation (straight-line method) because the number of customers is expected to remain at the current leveleven if store assets age with the passage of time, and the degree of facility usage, a major factor that reduces
economic value, is proportionate to the number of customers.
Based on this change, operating income, ordinary income, and income before income taxes and minority
interests for the third quarter of the consolidated fiscal year under review have increased respectively by ¥6,835
million compared with the figures based on the conventional declining-balance method.

-8-

3. Consolidated Financial Statements(1) Consolidated Balance Sheet
As of February 28, 2014 and November 30, 2014
(Millions of yen)

AssetsCurrent assets:
Cash and deposits
Accounts receivable－due from franchised stores
Merchandise
Accounts receivable－other
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets:
Property
Propertyand
andstore
storeequipment:
equipment:
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Vehicles, tools, furniture and fixtures
Accumulated depreciation
Vehicles, tools, furniture and fixtures, net
Lease assets
Accumulated depreciation
Lease assets, net
Others
Accumulated depreciation
Others, net
Total property and store equipment
Intangible assets:
Software
Goodwill
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

As ofFebruary 28, 2014

As ofNovember 30, 2014

76,76332,186
9,596
54,193
4,481
20,956(2,393)
195,784

111,822
36,94017,12557,804
3,323
30,637(2,438)255,215265,952(137,117)
128,835
65,944(53,861)
12,083126,056(45,289)
80,767
11,751－
11,751
233,436

307,784(158,507)
149,276
73,376(59,260)
14,116
149,038(58,314)90,724
12,167(462)
11,704
265,822

18,2629,719
497
28,48016,99955,353679
73,03233,727
86,15021,62722,75136,19892,90528,30630,293(1,169)186,535
525,389
780,604(965)
163,291425,208
620,992-9-

(Millions of yen)
As ofFebruary 28, 2014

As ofNovember 30, 2014

89,171
1,405
680－
16,58529,344
14,33087,585
2,372
5,232
246,706

110,267
1,348
1,830
22,16519,02041,5198,467
103,9632,272
9,756
320,612－61,666
11,08258,42574,097
11,949408

398

17,87432,755
123,788
370,494

21,14230,789196,802517,41458,50647,741138,141

58,506
47,696
147,440(1,556)(1,271)

242,832

252,371

(93)
(567)

33
(566)

Foreign currency translation adjustment

3,118

3,746

Total accumulated other comprehensive income
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

2,456
557
4,650
250,497
620,992

3,213
223
7,381
263,190780,604

Liabilities
Current liabilities:
Accounts payable－trade
Accounts payable－due to franchised stores
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
Provision for retirement benefits
Provision for retirement benefits to executive officers andaudits & supervisory board members
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

- 10 -

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
For the third quarter of the fiscal year (From March 1, 2014 to November 30, 2014)(Millions of yen)

Gross operating revenue
Net sales
Cost of sales
Gross profit
Operating revenue:
Income from franchised stores
Other
Total operating revenue
Operating gross profit
Selling, general and administrative expenses
Operating income
Non-operating income:Interest income
Foreign exchange gains
Penalty income
Other
Total non-operating income
Non-operating expenses:
Interest expense
Loss on cancel of lease contracts
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of investment securities
Gain on change in equity
Total extraordinary income
Extraordinary losses:
Loss on retirement of non-current assets
Impairment loss
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Income taxes
Income before minority interests
Minority interests in income
Net income- 11 -

From March 1,2013 toNovember 30, 2013
370,035
130,177
97,99632,180From March 1,2014 toNovember 30, 2014
362,461
115,473
86,771
28,702

184,707
55,151
239,858
272,039
217,266
54,773

189,136
57,851
246,987
275,689
215,915
59,773

622
290
99
1,106
2,118

615
577
542
665
2,401

968
461
399
1,829
55,062

1,057
768
648
2,474
59,700

403
－
403

369
756
1,126

1,832
2,075
415
4,322
51,143
19,906573
20,48030,663
194
30,468

1,817
2,687
224
4,729
56,097
20,362
2,437
22,79933,297347
32,949

Consolidated Statement of Comprehensive Income
For the third quarter of the fiscal year (From March 1, 2014 to November 30, 2014)(Millions of yen)

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Share of other comprehensive income of associates accounted
for
using
equitymethodTotal
othercomprehensive
incomeComprehensive income
Comprehensive income attributable to
Owners of the parent
Minority interests- 12 -

From March 1,2013 toNovember 30, 2013
30,663

From March 1,2014 toNovember 30, 2014
33,297

(203)
－
1,743
(676)
863
31,526

126
1
787
(159)
755
34,05331,414112

33,706346

(3) Notes to consolidated financial statements(Notes Concerning Going Concern Assumption)
Not Applicable.

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

- 13 -