Corporate Citizenship
Report 2009

“Happiness and Harmony
in Our Community”

LAWSON Genki Plan
LAWSON
With the downturn in the global economy andother concerns, people in Japan are finding it
increasingly difficult to be optimistic about the
future. It was to give people and local communities
a lift in these difficult times that we launched our
LAWSON Genki Plan as the “Hot Station in the
Neighborhood.” The first step to such a goal is toensure that our employees and store personnel arecheerful and positive, and to create clean, brightstores that provide the products and informationthat people are looking for. It is our hope thatthese efforts will bring cheer to our customers andbreathe new life into the neighborhoods in which
we operate. We consider it to be our social
responsibility to give people a reason to smile.

LAWSON Genki Plan logo

Cooperate Philosophy“Happiness and Harmony in Our Community”

Code of Conduct

Acting with utmost consideration for others
Challenging with innovative ideas and actions
Having a strong will to attain the objectives

1

LAWSON Genki Plan

CONTENTS

LAWSON Genki Plan/ Cooperate Philosophy, Code of Conduct 01
Our Commitment 03
LAWSON Stores: Environmental Protection and Corporate Citizenship Activities 05

Caring for Our Planet
LAWSON is committed tooperating eco-friendly, peoplefriendly stores as the “`Hot´
Stations in the Neighborhood”
while aiming to addressenvironmental issues.

Special Feature 1: Store of the Future 07
Special Feature 2: Working with Customers for the Environment 09
LAWSON’s Commitment to the Environment 11
Measures to Reduce Energy Consumption 13
Making Good Use of Finite Resources 14
Boosting Recycling and Reducing Waste 15
Working with our Customers for the Environment 17
Lawson Environmental Activities Report 21

Enriching the Community
Working for “Happiness andHarmony in Our Community,”
LAWSON is committed to giving
people and local communities a
lift.

Special Feature 3: LAWSON’s Efforts 23
to Enrich Local Communities
Keeping Customers Satisfied 25
Providing Safe, Healthy Products 27
Together with the Local Community 31
Aiming to Become a Vital Part of Neighborhood Life 35
For the Next Generation 36
Diverse Citizenship Activities 37

Motivating People
LAWSON is proactively enhancing
communication within LAWSON
family, including store owners andcrews.

Special Feature 4: Enhancing Communication 39
through our Genki Project
Together with Franchise Owners and Store Crews 41
Nurturing Enthusiasm 43
Together with our Business Partners 45

About LAWSONLAWSON’s Organization 46
Company Overview/ Store Information/ Subsidiaries and Affiliate 49
Third Party Comment/ LAWSON’s History 50● From the Editorial Team● Scope of Report

LAWSON cares deeply about the health of our planet and local
community life, and endeavors to contribute to both society and theenvironment in various ways based on its corporate philosophy of“Happiness and Harmony in Our Community.” This report — our 11th
— is composed of 3 key parts focusing respectively on theenvironment, local communities, and people. Each part contains
special features and other information on the ways in which we are
striving to help create a sustainable society, and on our relationshipwith our customers, franchise store owners and crews, business
partners and society as a whole, laid out in what we hope is an easy
readable format. We put this report together also to serve as adeparture point for future activities. We sincerely hope that it will
help you to understand the ways in which we are working for the
betterment of our society.

Scope: This report focuses specifically on LAWSON as a parent company, itsfranchised stores and specific affiliated companies, and includes examples of
the cooperative efforts of our business partners involved in logistics,
manufacture of food products and waste management.
Period: The primary period covered by this report is fiscal 2008 (March 1, 2008
through February 28, 2009), but information on activities from previous fiscal
years and fiscal 2009 has been included where appropriate.
Date of Issue: August 2009 (previous report: August 2008; next report:
planned for August 2010)
Reference Guidelines: Japan’s Ministry of the Environment Environmental
Reporting Guidelines (fiscal 2007 version)

Corporate Citizenship Report 20092

Our Commitment

A Turning Point in Time
Contributing to Society through Breathing
New Life into Local Communities
Our Corporate Philosophy
The World Economic Forum, known also as the Davos
Conference after the Swiss resort that hosts it every year at
the end of January, is a gathering of politicians, businessleaders and other influential people from around the world.
In 2008, I too participated in Davos to put forward
LAWSON’s philosophy — which is to work for “Happinessand Harmony in Our Community.”This corporate philosophy is effectively one ofcoexistence with society.
I don’t believe that enterprises should concern
themselves solely with making money. We want to workwith society for the happiness of everyone. People in theaudience from many different countries endorsed thisphilosophy as a sentiment worthy of putting into practiceworldwide. Working with society, working with local
communities, working with the neighborhood — this is, I
think, the goal that enterprises need to pursue from now on.

Opening New Horizons with our
Genki Plan
The world is changing more rapidly than ever. Japanesesociety is being buffeted by a multitude of pressing issues,
including the financial crisis and concomitant economic
recession and job insecurity, swine flu, bogus labeling thatthreatens food safety, declining birthrate and the graying of
the population, and the increasingly serious issue of global
warming. People’s attitudes and bahavior are being moldedby these issues, and society is clearly approaching a major
turning point. In the face of these circumstances, convenience
stores, the retail industry and indeed society as a wholeappears to be stuck in a rut, overtaken by a sense ofhelplessness and unable to find a way forward.
It was to address this situation and breathe new life into
society that we launched our LAWSON Genki Plan in April
2008. This plan reflects our commitment, as a network of
stores rooted in the local community, to work for thehappiness and harmony of the communities in which ourcustomers reside. By operating bright, clean stores mannedby cheerful and considerate staff and offering whatever3

Our Commitment

products and information our customers need around theclock, as well as implementing a range of other initiatives,
we aim to give our customers in the local community a lift
when they need it.

Creating Stores and People Capable of
Adapting to Change
LAWSON aims to create shops that keep abreast of changes
in society. We try to constantly evolve by implementing
various changes that better match the needs of the local
community. In addition to our regular “blue” stores, we havelaunched new formats that focus on different needs, such as
NATURAL LAWSON stores which put priority on health,beauty and comfortable lifestyle, LAWSON STORE 100
outlets with a priority on affordability, and LAWSON PLUS,
which offer an abundance of fresh foods. We are alsocollaborating with Japan Post Holdings Co., Ltd. to operate
joint post office/stores. As product initiatives, we aredeveloping products made from local produce for both local
and nationwide consumption under comprehensive
agreements with local authorities, and have started offering
our own Value Line products developed originally for
LAWSON STORE 100 outlets in our regular CVS stores too.
The most important aspect of creating stores andproducts that appeal to our customers is to possess athorough understanding of their wants. Leveraging ourorganization of seven regional branches, we practice store
management based on the policies of store localization anddevelopment of products that address local needs. We use
tools for analyzing individual store management to deepen
our knowledge regarding the development of products andstores tailored to the local community.
We also strongly believe that happy employees makehappy stores. Our employees need to be upbeat about theirwork, and so we actively implement various measures tomotivate them and make them feel part of the LAWSON
family,* such as developing products based on ideas fromour store crews (part-time staff), providing our franchise
store owners with opportunities for direct dialog withmanagement, offering work styles designed for employees
raising young children, and hiring overseas employees.
* LAWSON family includes all employees, franchise owners and store crews.

Working Towards a Low Carbon
Society
At LAWSON, we devote a great deal of thought to what we
can do to help leave a healthy Earth for future generations.
One way is to contribute to the realization of a low carbon
society, and to this end, we have set ourselves voluntary CO2emissions reduction targets. We are aiming for a 10%
reduction in CO2 emissions per store over fiscal 2006 levels
by fiscal 2012 based on electricity consumption. This
amounts to a yearly reduction of 60,000 tons in emissions
compared with fiscal 2006.
To cut electricity consumption in our stores, we are
replacing refrigeration, air conditioning, lighting and otherequipment with new energy-efficient equipment. Further
marked reduction in CO2 emissions requires innovation, andso we have opened an eco-intensive store in Kure, Hiroshima
Prefecture, that is fitted with the latest in environmental
technology. We plan to test new technology and methods
here for further reducing CO2 emissions.
We are also working with the Institute of Industrial
Science, The University of Tokyo, and others to research theutilization of artificial intelligence (AI) to bring about overall
reductions in store electricity consumption. Under thisproject, we are seeking to implement environmental
measures from a broad perspective by looking at store
equipment, operation methods, impacts from outside thebuilding and other factors.
Another ongoing initiative is pilot studies aimed at the
introduction of eco-friendly electric vehicles (EVs). We are
already using hybrid cars and automatic idling prevention
systems for company cars used to visit stores, but we plan to
introduce EVs that hold promise of delivering further energy
efficiencies.
We also feel that the understanding of our customers
and others is vital to the creation of a low carbon society,and we conduct activities aimed at enabling customers tocontribute to environmental protection in their everyday
lives. For example, with our Bring Your Own program, we
encourage customers to take their own reusable shoppingbags and chopsticks when they go out so as to reduce
dependence on disposable chopsticks and plastic shoppingbags, and with the LAWSON Green Fund, we offer
opportunities for supporting afforestation activities in Japanand overseas.
Such efforts by our customers and us can help to reduce
CO2 emissions, but no matter how hard we try, we cannot
eliminate them entirely. We accordingly launched a CO2
Offset program in 2008 to enable customers to offset CO2
emissions. We feel that by joining hands with our customers,
franchise owners, store crews and emplyees we can throughall of these little efforts make a big contribution to theenvironment.
These initiatives are at the core of our corporate
philosophy to work for “Happiness and Harmony in Our
Community.” We aim to go beyond retailing to serve as vitalsocial infrastructure that benefits people, communities andthe Earth.

Takeshi Niinami
President and CEO

LAWSON Stores: Environmental Protection and Corporate Citizenship Activities
As part of its efforts to become the “Hot Station in the Neighborhood,” LAWSON works with its customers, franchise
store owners, crews, business partners and others to implement initiatives aimed at protecting the environment andcontributing to society. These efforts are evident in many different areas of store operation.

Food recycling (into animal feed and fertilizer)

P.15

Used cooking oil recycling

P.15

CO2 Offset program

P.9

Contributing to society
through point cards

P.38

LAWSON Green Fund

P.19

Disaster relief funds/
Organ donor cards

P.33

Reducing plastic shopping bag
and disposable chopsticks use

ATM

P.22

Carbon footprint

P.10

Local produce for local and nationwide consumption

P.23

Plant-derived packaging

P.14
LED lighting

P.8

Energy-efficientequipment

P.12

Handheld inventory terminal
rechargeable batteries

P.14

Uniforms

P.14

P.17

Accessibility

P.35

Reducing neonshop signs

P.8

Multi-drop deliveries

P.13

Eco tires

P.13

P.35

Loppi multimedia
P.35
terminal

5

Clean Boxes

P.16

Eco-Friendly Vehicles

P.13

LAWSON Stores: Environmental Protection and Corporate Citizenship Activities

Neighborhoodcleanup activities

P.32

Smoking manners

P.33

Corporate Citizenship Report 20096

Caring for
Our Planetre 1
Special Featu

Store of the
Future123■ Percentage of total CO2 emissions derived fromelectricity consumption

86.5%

re Opens

Eco-Intensive Sto

Reducing Electricity Consumption in
StoresLAWSON’s annual consumption of electricity, water and soforth is equivalent to about 730,000 tons of CO2 emissions.
Roughly 80 percent of those emissions are derived fromelectricity consumption.
To reduce electricity consumption in our stores, we haveset ourselves the target of reducing CO2 emissions by 10
percent from the fiscal 2006 levels by 2012, and are
currently deploying energy-efficient equipment and taking
various other measures to achieve this target (see P12 fordetails).

● Fiscal 2008 CO2 Emissions Breakdown
Waste (plastic waste) 2.1%

Company cars (gasoline)
0.7%

Water 0.3%

Delivery trucks(diesel, etc.)
10.4%
Total

730,114t-CO2

LAWSON stores use a lot of electricity
for air conditioning, lighting,refrigerators and freezers. To leave ahealthy planet to future generations,
we have always strived to minimize
energy consumption in our stores,
and will continue to implement newmeasures for saving energy.

Electricity
86.5%* Data is for LAWSON and
NATURAL LAWSON
stores.
* Waste is plastic waste(fossil fuel-derived).

Environmental Beacon for LAWSONStores Nationwide
In October 2008, LAWSON opened an eco-intensive 2-story
store in Hiro Park in the city of Kure in Hiroshima Prefecture.
Located in a popular public park, this pilot store has beenequipped with a great many eco-friendly and people-friendly
features.

7

Caring for Our Planet

One energy-saving feature is the use of renewableenergy. To reduce electricity consumption, rainwater is used
to cool refrigeration and air conditioning outdoor units. The
store has also been equipped with solar panels and a windturbine that generate part of the electricity used by the store.
To minimize heat inflows and outflows, the outer walls
and roof have been insulated with material that largely
blocks the passage of heat, and polycarbonate windows help
to reduce air conditioning needs. LEDs that consume half theelectricity of fluorescent lighting have also been installed
experimentally for in-store lighting and signs. Energy was
saved at the construction stage too through the use of verystrong but lightweight steel beams that require less energy
to manufacture and carry to the construction site.
To achieve our fiscal 2012 target, we are assessing theefficacy of the various energy-saving features of this pilot
store, and we will apply the most effective features to otherstores.

Key Energy-Saving Features of the Kure Hiro Koen Store

Rainwater spray to reduce
electricity consumption
Polycarbonate windows
designed to shut out
sunlight
Solar panels and windturbine (below)

LED lighting for all indoor
and sign lighting

Basics Explained 1

Real-time monitoring ofelectricity consumption andgeneration

From the Frontline: Employee

Revised Energy
Conservation Law
The Energy Conservation Law (Law
Concerning the Rational Use ofEnergy) imposes energy management obligations on large factories
and business premises over a certain
size, but the latest revision, which
will take effect in April 2010,
requires businesses to manage
energy companywide as a single
unit. LAWSON, with a yearly energy
consumption for its whole chain ofover 1,500 kl (crude oil equivalent),
is accordingly required under therevised law to manage energy in allof its stores from fiscal 2009.

AtsushiDaikawa
Construction
Planning
Department

With environmental issues figuring so
prominently these days, we took a hard look atwhat LAWSON could do, and incorporated allsorts of technology into the Kure Hiro Koen
store.
There are many different environmental
technologies out there, but until you actually try
them out in a store, it’s difficult to tell if they
match the scale, and how they should be usedor combined with other technologies and so on.
That’s why it’s important to try them in a realworld environment to find out which configuration is the most energy efficient. We’ve
tested various theories and have managed toachieve an overall energy saving of about 15
percent. Since our estimate was 13.6 percent,
we’re quite pleased with this result.
I think that store construction requires alifecycle approach that considers everythingfrom transport of the building materials to reuse
and recycling. It’s an ongoing process that willcontinue to evolve.

Corporate Citizenship Report 2009

8

1
re 2
Special Featu

Working with
Customers for t
n
e
m
n
o
r
i
v
n
E
e
h
t
set Program

O2 OffExpanding our C2

3■ CO2 emissions reduction from our CO2 Offset
Program

7,192tConverted tobeech trees*:

653,818trees* Assuming that one beech tree absorbs 11 kg of
CO2 per year (Forestry and Forest Products
Research Institute yardstick)= 100,000 trees= 10,000 trees

What is CO2 Offset ?
Reducing greenhouse gases has become an urgent global
issue. LAWSON seeks to curb its own CO2 emissions throughreducing electricity consumption in its stores, but alsoendeavors to reduce CO2 emissions on a wider scale throughworking with its customers. One such initiative is its CO2
Offset Program.
CO2 offset is a mechanism for offsetting all or a portionof one’s own CO2 emissions by purchasing CO2 emissions
reduction — emissions credits — achieved in developing
countries and other regions.
We also experimented with the display of carbon
footprints (CO2 emissions) related to products.

As a convenience store rooted in local
communities, LAWSON has a mission
to provide opportunities for people tocontribute to the environment
through everyday activities. We seek
to work with our customers to bringabout the creation of a sustainable
society.

9

Caring for Our Planet

LAWSON’s Approach to Reducing CO2
Emissions
In April 2008, LAWSON launched its CO2 Offset Program asa means of enabling its customers to contribute toenvironmental protection through their local convenience
stores. Customers can exchange LAWSON Point Card points
earned by shopping at LAWSON for CO2 offsets, or purchase
CO2 offsets with cash using the Loppi multimedia terminals
in our stores. Another way in which we enable customers to
help reduce CO2 emissions is through enlisting thecooperation of manufacturers to sell beverages and sundries
with CO2 offsets. In summer 2008, we also started a joint

● How Our CO2 Offset Program Works

Enabling customers
to offset their CO2
emissionsCustomers

Use of Loppi
terminal to apply for
CO2 offset transfer
Exchange ofpoints for CO2
offsets

Participation in the
CO2 Offset Program

LAWSON

Purchase of
CO2 Offset
Products

Notification of completion of transfer

Certificate(or image) sent** No certificates are sent for CO2 offset products

CO2 emmisioncredits purchaseTransferof CO2
emmisioncredits

Helping to
reduce Japan’s
CO2 emissions

Ministry of the Environment / Ministry of Economy, Trade and Industry
Japan’s quota account inventory (retirement account)initiative with THE NISHI-NIPPON CITY BANK, LTD. to enable
customers visiting our Fukuoka Prefecture stores to offset
CO2 emissions with every transaction conducted through a
LAWSON ATM.

LAWSON’s CO2 offset products won the Service
Category Award in the Business Category of “ecojapan cup 2008”, an event sponsored by a PublicPrivate Partnership.

Georgia Green Planet Café au Lait and Real Rescue,
launched jointly with Coca-Cola (Japan) Co., Ltd.

From the Frontline: Employee

What is a Carbon Footprint?
In March 2009, LAWSON experimentally displayed theCO2 emissions related to its Niigata Koshihikari Onigiri
rice balls as their “carbon footprint” on the packagesof products sold at some stores. A carbon footprint is
the total greenhouse gas emissions derived directly
and indirectly from a product or service throughout its
lifecycle, from raw material procurement throughmanufacture to disposal and recycling. Displaying
carbon footprints as CO2 emissions on product labels
etc. can help customers obtain accurate information
for reducing environmental impacts. LAWSON too
utilizes the concept to identify
lifecycle stages in which
impacts are greatest so as
reduce such impacts more
effectively.

CO2 emmision credits
generated by CO2
reduction projects indeveloping countries(wind power, biomass
power generation, etc.)

To support the efforts of customers to reduce their CO2
emissions, LAWSON has also added a simple household CO2
emissions calculation console to its website that anyone canuse to check their household CO2 emissions.
As a result of these initiatives, total offsets purchased asof the end of February 2009 amounted to 7,192 tons-CO2.
We will continue our efforts bothto reduce our own carbon
footprint and to raise customer
awareness of the need to reduce
CO2 emissions and provide
opportunities for customers toparticipate in activities that
contribute to the environment.

CO2 Offset Products

Basics Explained 2

UN-certified
CO2 reduction
projects

Shogo
Kira
Senior Manager,
Product
Generalized
Department

We sold the rice balls displaying theircarbon footprint in some Tokyo storesin spring 2009 as an experiment, but
it is still a little-known concept amongcustomers, and so it looks likely totake more time for it to have any
impact on consumer behavior. For thisexperiment, we examined all sourcesof CO2 from raw material procurement to manufacture, delivery tostores, store shelf lighting and so on.
It was very time-consuming, but also
very worthwhile, since it gave us a
detailed picture of how much CO2 isgenerated in the process of making
and selling a product. I think theconcept of carbon footprint will
become increasingly important as atool for promoting environmental
protection and creating a low carbon
society.

Corporate Citizenship Report 200910

LAWSON’s Commitment to the Environment
LAWSON positions the creation of a low carbon society as a major management priority, and actively pursues policies toreduce CO2 emissions.

LAWSON’s Environmental Policy
Basic Commitment
LAWSON is committed to operating eco-friendly, people-friendly stores. To ensure that future generations inherit a healthy planet, we do ourutmost to reduce the environmental impacts of our business activities and work for the realization of a sustainable society through a wide range ofcorporate citizenship activities.
Policies(1) Provide safe products, services, and information, and pursue activities that reduce environmental impacts.
(2) Set environmental objectives and targets based on assessments of the environmental impacts of our business operations, products and services,and strive to continuously improve them and prevent pollution.
(3) Adhere to all environmental laws and regulations and improve our environmental management system.
(4) Strive to reduce environmental pollutants, reduce and recycle waste, and conserve energy and resources in our daily operations.
(5) Support and participate in environmental protection and citizenship activities such as community greening, cleanup and other initiatives withlocal authorities.
(6) Raise awareness of the importance of environmental protection through environmental education and communication activities.

LAWSON’s Endeavors for a Low
Carbon Society
LAWSON is taking two key approaches tohelp create a low carbon society, basedon its reconsideration of what it can do asa convenience store chain. One of those
approaches is the setting and achievement of voluntary targets for reducing
CO2 emissions from our businessactivities. The other is the provision ofservices that will help our customers tocontribute to a low carbon society.
Through these two approaches, we areworking as one with our customers,
franchise store owners, and crews to help
to create a low carbon society.
The voluntary target that we set
ourselves in 2006 was to reduce CO2
emissions by 10% per store over fiscal
2006 levels by fiscal 2012 based onelectricity consumption. This amounts to a
yearly reduction of 60,000 tons inemissions compared with fiscal 2006.

● Aiming for a Low Carbon Society

Creating a low
carbon society
LAWSON positions thecreation of a low carbon
society as a major
management priority, andactively pursues policies toprotect the environment.

Reducing our own
CO2 emissions

Working withcustomers for theenvironment
LAWSON works with customers forthe environment through its CO2
Offset program and otherinitiatives that enable customers tocontribute to the environment
through everyday activities.

We are actively reducing our own
CO2 emissions through deploying
energy-efficient freezers,
refrigerators and air conditioning.

● CO2 Emissions Voluntary Reduction Target
Reduce CO2 emissions by 10 percent
per store over fiscal 2006 levels
by fiscal 2012
based on electricity consumption.

● Per-Store CO2 Emissions Based on Electricity
Consumption
(t)
76.0

73.1

Reaching the target

73.9 73.7

71.8(Target)72.0

Utilize environmental management system
to monitor and drive progress.
Act
ISO14001 Environmental
Management System
Check

68.0

64.0

Do
0

11

Caring for our Planet

65.8(10% Cutfrom 2006
levels)Plan

2006 2007 2008 2009 2012 (FY)Caring for our Planet

Aiming for a Low Carbon Society
Per-Store CO2 Emissions
Based on Electricity
Consumption

Fiscal 2007 result

Measures for Reducing
Electricity Consumption
Freezers, refrigerators and lighting
account for most of the electricity
consumed in our stores, and we are
actively deploying new energy-efficientsystems. New stores are being fitted with
Energy Saver Pack combined refrigeration
and air conditioning systems, and existing
stores with Eco Pack energy consumption
control systems. The combined total ofsuch stores reached 5,127 in fiscal 2008,
realizing a 22,000 tons reduction in CO2emissions. We are also taking othermeasures such as the use of automatic
adjustment systems for controlling
lighting levels according to ambient lightlevel.

73.9

Fiscal 2008 result

t

73.7

Partnership with the University ofTokyo on Reducing CO2 Emissions
Joint Research in Stores
We are conducting joint research with the
Yashiro Laboratory in the University ofTokyo’s Institute of Industrial Science on
reducing store CO2 emissions. Under thisproject, we are testing an advanced
automatic energy monitoring and control
system to implement comprehensive
measures that consider impacts fromoutside buildings as well as store equipment and operational improvements.
We started the tests in June 2008 at
our Minamikase 4-chome, Tachikawa
Ichibancho 4-chome, and Tokyo Daigaku
Yasuda Kodo stores. We have alreadydeveloped a detailed picture of energy
usage and are now considering energy
saving measures. This system, which
provides a blueprint for optimum energy
usage tailored to the circumstances ofeach store, holds promise as an effectivemeans of reducing CO2 emissions, and wewill deploy it in other stores in fiscal 2009
to continue the verification.

Using ISO14001 Processes to
Monitor CO2 Emissions
To achieve our environmental targets, weused an ISO14001 environmental
management system to monitor progress
and implement a Plan-Do-Check-Act(PDCA) cycle. We are also using the CO2
emissions monitoring service offered by
the Japan Quality Assurance Organization
to obtain more objective and accurate
third-party data on our CO2 emissions.
Use of an ISO14001 environmental
management system to gather andanalyze data on CO2 emissions enhances
the credibility of our CO2 emissions data.

Automatic control system utilizing artificial intelligence

Helping to Reduce CO2 Emissions
through Domestic Credit System*
In a joint project with the University ofTokyo, LAWSON is trading CO2 emissions
credits using the government’s domestic
carbon credit system.
Under its Sustainable Campus Project,
the University of Tokyo is endeavoring to

Fiscal 2009 target

t

71.8

t

reduce its CO2 emissions through fitting
its campus with inverter-equipped
fluorescent lighting and replacing thefreezers in the University of Tokyo
Hospital with the latest energy-efficientequipment. LAWSON buys the carbon
credits thus created to use in its CO2
Offset Program.
* Domestic carbon credit system: a mechanism for joint energy
saving by large, small and midsized businesses that enables
large corporations to purchase credits as CO2 emissions
reductions to offset against their voluntary action plan targets.

From the Frontline: Joint Researcher

Aiming to Create the World’s
Most Sustainable
Convenience StoreMr. Bumpei Magori
Research Fellow, Yashiro Laboratory,
Institute of Industrial Science,
The University of TokyoAs the world
seeks to address
the issue of global
warming, commercial facilities
are under particularly strong pressure to reduce CO2 emissions and saveenergy. LAWSON and the University ofTokyo have been conducting joint
research since fiscal 2008, and I feel thatthe way we researchers and LAWSON’s
people have been able to produce resultsby discussing issues in depth is important.
I anticipate that these efforts will yield areduction of over 10% in energy
consumption over the year, and if wemaintain these efforts, I think that
LAWSON could become one of theworld’s leading sustainable organizations.

Corporate Citizenship Report 200912

Measures to Reduce Energy Consumption
LAWSON operates a nationwide logistics network to ensure the delivery of safe and healthy products to its stores in prime
condition. We are doing our utmost to boost the efficiency of this network and reduce its environmental impacts through theuse of eco tires and other measures.

Reducing CO2 Emissions through Improving Logistics Efficiency andIntroducing Eco Tires
Delivery truck CO2
emissions per store

Fiscal 2008 target

Fiscal 2008 result

Fiscal 2009 target

1.0

3.2

4.0

(compared with fiscal 2007)

Reduction of Delivery Truck CO2
Emissions
LAWSON continues to implement a rangeof measures to reduce CO2 emissions
related to product delivery, and achieved
a reduction of 3.2% in fiscal 2008
compared with fiscal 2007, exceeding its
target of 1%. In fiscal 2009, we will aim
for a 4% reduction compared with fiscal
2007.

% reduction% reduction* Chilled products are rice, dairy, dessert and other productsthat require temperature control.

Eco Tire and Low-Emission
Vehicle Deployment
Starting in fiscal 2008, LAWSON has fitted
eco tires to about 420 delivery trucks to
reduce fuel consumption. We are also
promoting the use of low-emission natural
gas-powered and hybrid vehicles,
deploying 67 such delivery trucks by theend of fiscal 2008.

% reduction

deployment of Mitsubishi Motors
Corporation electric vehicle (EV) for supervisor store visits to test running performance, recharge time and so forth. Tests
showed the EV to be capable of fullyrecharging in seven hours and travelingapproximately 80 kilometers in urban traffic conditions. We plan to introduce themsuccessively to Tokyo, Nagoya, Osaka andother locations to substantially reduce
CO2 emissions.

Promoting Joint Delivery
LAWSON is reducing the number ofdeliveries to its stores through implementing delivery system improvements such as
multi-drop delivery and the use of dual
partition, dual temperature management
trucks. These trucks enable the simultaneous delivery of products with different
temperature requirements such as ricerelated products (20ºC) and dairy
products, desserts and other items (10ºCor below) through the dual partitioning ofstorage space.
By also reworking deliveries of sundries and other improvements, we havesucceeded in reducing average daily deliveries per store from 16 in 1989 to 7.44.*
We will continue to pursue improvements
in delivery schedules and routes.
* Excluding newspapers and cigarettes

On-Board Operation Management
SystemAll delivery trucks carrying chilled
products* are equipped with an operation
management system connected to amobile communications network thatenables real-time monitoring of producttemperature, arrival and delivery status. It
also monitors driving to help enhance
operational efficiency by curbing
speeding, sudden acceleration anddeceleration, engine idling during
deliveries, and so forth.

13

Caring for our Planet

From the Frontline: Employee

Improving Company Car Fuel
Efficiency

Contributing to
the Environment with EVs

Keisuke Tanaka
Switching to Eco-Friendly Vehicles

Supervisor in Koto District (Tokyo)

LAWSON operates a fleet of approximately
1,600 company cars that are used bysupervisors and store development staff
nationwide, and since fiscal 2006, all ofthese cars except 4WDs have been
upgraded to hybrid cars or equipped with
automatic idling prevention systems. We
have also fitted all company cars withelectronic toll collection (ETC) systems to
avoid tollgate congestion and boost fuelefficiency, and we instruct drivers to avoid
sudden acceleration and deceleration, andotherwise practice safe and eco-friendly
driving.

I really like driving
EV. It accelerates
well compared withconventional fueldriven cars, andproduces no engine
noise, making it
really quiet. There are still issues that need
to be addressed, such as the limited distance EVs can run on one recharge andscarcity of recharge points, but these are
not major problems in Tokyo inner city
locations, since the total distance traveled
between stores in one day is not that
great. EVs are generating a lot of buzzthese days, and so I think using them is along way of communicating LAWSON’s
efforts for the environment.

EV Deployment
In January 2009 LAWSON started a pilot

Making Good Use of Finite Resources
LAWSON makes every effort to contribute to environmental protection and the building of a sustainable society through thewise use of finite resources.
Caring for our Planet

Reducing Environmental Impacts through Wise Resource Use
CO2 emissions from theincineration of containers
and packaging

Fiscal 2007 result

Fiscal 2008 result

Fiscal 2009 target

5.2

12.6

7.0

(compared with fiscal 2006)

Eco-Friendly Packaging% reduction% reduction● Packaging Weight and CO2 Emissions
Total weight

CO2 Emissions

Weight per container/sheet

LAWSON’s commitment to safety andhealth is evident in its efforts to eliminate
harmful emissions during the production
and use of packaging for boxed lunches
and ready-made dishes through improving
raw materials and equipment.
We use containers made from ecofriendly polylactic acid (PLA) for certain
rice and ready-made dishes. PLA is abiodegradable resin made from maize andother plants, and is carbon-neutral since
CO2 emissions from its incineration are
offset by the CO2 absorbed when the raw
materials are cultivated. As such, PLA use
reduces CO2 emissions over the productlifecycle.
We also endeavor to conserve
packaging-related resources through theuse of foam and thin packaging that
reduces overall weight while notcompromising safety. These efforts haveresulted in a reduction of 8.3% in eachcontainer weight and overall reduction inraw materials of 912 tons compared withfiscal 2006, which is equivalent to about
5,200 tons of CO2 emissions reduction
from the incineration of packaging.
As for our target of 5% reduction in
CO2 emissions, we achieved the result of
12.6%.

（t）
50,000（g）
1041,63841,57640,0006.16
30,00039,43336,353 8

5.81

5.63

5.33

10,685

10,197

9,773

20,00010,000

2005

2006

2007

2008 (FY)

20

Reuse of Rechargeable Batteries Usedin Handheld Inventory Terminals
In March 2007, LAWSON began recycling
the rechargeable battery packs used in its
handheld inventory terminals.
Rechargeable battery packs whosecells have been replaced perform just likenew packs. We recycled approximately
6,100 such packs in fiscal 2008, reducing
annual waste
by about one
ton by reusing
casings andrecycling rare
metals recovered fromDynamic order terminal (DOT)
replaced cells.

100% Uniform Recycling

PLA Salad Container

220,000 kilograms by March 2015.
Recycling 220,000 kilograms would resultin a 480,000 tons reduction in CO2 emissions, helping to mitigate global warming.
The new uniforms will be the first inJapan’s convenience store industry toreceive the Japan Environment
Association’s Eco Mark certification.

4

10,8060

6% reduction

Based on the views of store owners andcrews, we introduced a newly designed
uniform in autumn 2009 and at the sametime started the chemical recycling of
uniforms, almost entirely eliminating wastefrom uniform replacement. Our use of ananaerobic process that produces no CO2emissions also reduces the environment
impact of recycling.
LAWSON plans to recycle about
800,000 uniforms weighing approximately

TOPICS

Using Domestic Forest Thinnings
for NATURAL LAWSON
Disposable Chopsticks
Lunch boxes purchased at NATURALLAWSON stores come with disposable
chopsticks made from Japanese cypress
plantation forest thinnings from Yoshinoin Nara Prefecture. (Plantation forests arethinned to encourage growth of the besttrees, a practice that also enhances CO2
absorption.)
The disposable chopsticks also carryadvertisements, part of the revenue fromwhich is used to defray forest thinningcosts. This system accordingly boosts theutilization of forest thinnings and helps toprotect Japan’s forests.

Corporate Citizenship Report 200914

Boosting Recycling and Reducing Waste
Our stores generate a wide range of waste, from the cardboard boxes in which products are packaged to boxed lunches, breadsnacks and other foodstuffs that have passed their sell-by dates. We do our utmost to reduce the impact of this waste on theenvironment by trying to cut waste generation and recycling as much as we can.

Helping to Build a Recycling Society
Rate of Stores recycling
food waste

Fiscal 2007 result

22.5

For LAWSON and NATURAL LAWSON%Our stores each generate an average ofabout 11.6 kg per day of food waste,
which includes oil used to fry Kara-age
Kun chicken nuggets as well as boxedlunches and other foodstuffs that havepassed their sell-by dates*. We strive to
reduce such food waste both through● Stores Recycling Food Waste(April 1 to March 31)

24.6

%

FY2007

FY2008

7,403

7,599

906

1,013

Thermal recycling

−

124

22.5%

24.6%

26.5

%

Promoting Reuse and Recycling
LAWSON started to recycle used cooking
oil in January 2006, and has steadily
increased the number of participating
stores. By the end of May 2009, 7,594
stores were recycling used cooking oil,which is collected by industrial waste
collection businesses for recycling as anadditive in swine feed and constructionindustry paint, bio-diesel fuel (BDF) for
public buses, additive-free soap and otherCurbing Waste Output* The ratio of stores recycling food waste is 28.5% when waste
output reduction is included in the calculation based on the
Food Waste Recycling Law.

at least

measuring raw material weight, final
product weight and portion amounts etc.
down to single grams.
In our stores, we are striving to
reduce waste output by improving
product assortment. Each store uses its
computer to check past sales according to
day of the week, weather, local eventsand other factors to adjust productassortment accordingly and reduce waste.

* Sell-by date: a date preceding the “eat-by date” that we set
voluntarily to take into account the time likely to elapse
between purchase and consumption by the customer

Animal feed, compost
Percentage of storesrecycling food waste

Fiscal 2009 target

curbing output, and through material
recycling (used oil recycling, production ofswine feed and compost from foodwaste) and thermal recycling (recovery ofheat energy).
In fiscal 2008, 24.6% of our storesrecycled food waste (excluding waste output reduction). We aim to improve thisrate by at least two percent each year
from fiscal 2008 to fiscal 2012 comparedwith the fiscal 2007 rate of 22.5%,
making for a fiscal 2012 target of 32.5%.

Reducing and Recycling Food
Waste

Used oil recycling

Fiscal 2008 result

We are focusing on cutting down waste
output. At the manufacturing stage, wehave introduced a production management system designed to eliminate
the production of surplus products by● Recycling Food Waste as Compost (Partner: Sanko Co., Ltd.)With the help of Sanko Co., Ltd. (Tsu, Mie Prefecture), 65 LAWSON stores (as of May 2009) in Mie Prefecture are recycling their food waste. Sanko collects
the food waste and then processes it over the space of 3 months into compost that is then sold to local farmers, landscape gardeners, forest owners etc.
Vegetables grown by farmers using this compost are sold in local supermarkets and other outlets.

An automatic
separator
removes
packaging.

Food waste from 65 LAWSON storesin Mie Prefecture is collected anddelivered to the composting plant.

The food waste is mixed with
sawdust to adjust water content.

Vegetables
grown with
Yuki Mie aresold at local
supermarkets,
etc.

The compost,
named Yuki Mie(=“OrganicMie”) is readyfor sale after
3 months’maturation.
The compost is used by local farmers.

15

Caring for our Planet

The mixture is inoculated withbacteria for natural aerobic decomposition in a drum fed with air.

The resulting compost is matured ina maturation shed.

Reducing Waste Using Garbage
Processors
We have deployed garbage processors in
49 of our directly managed stores (as of
May 2009). These processors reduce theweight of food waste by removing watercontent and drying the waste.

Utilization of Unsold Foodstuffs
From June 2006, two LAWSON stores in
Yokohama in corporation with a riceproduct plant have provided unsold boxedlunches and bread products that havepassed their sell-by dates to Sanagi
Kitchen, an eatery run by an NPO in
Yokohama’s Kotobuki district. Sanagi
Kitchen uses these unsold foodstuffs
before their eat-by dates to make inexpensive meals.

Caring for our Planet

products.
As of May 2009, 1,022 stores werealso recycling boxed lunches and readymade foods that had passed their sell-by
dates. Such unsold foodstuffs from all
Tokyo, Yokohama City, and Kawasaki City
stores and some Kyoto City stores,
including NATURAL LAWSON outlets arerecycled as animal (pig) feed, while thosefrom Kumamoto City, Nagoya City,
Aomori City, Mie Prefecture, and Matsue
City stores are recycled as compost. 66
LAWSON STORE 100 are also recycling of
unsold foodstuffs.

● Collecting Recyclable Waste (Partner: Sanko Co., Ltd.)Sanko Co., Ltd. also collects other recyclable waste. The PET bottles, cans and glass containers that
Sanko collects from LAWSON stores in Mie Prefecture are recycled as resources.

Recyclables collected fromstores.

A sorter separates therecyclables into PET bottles,
aluminum cans and other items.

Store Waste Output
A year-long survey (April 2008 to March2009) of the waste output of 343 Tokyo
stores revealed an average daily output
per store of 52.0 kg. Much of this is either
combustible waste such as waste paper,
disposable chopsticks and wrapping paper(17.0 kg) or the cardboard boxes in which
products are delivered (17.0 kg). Foodwaste accounts for another 11.6 kg.
Breakdown of waste output location
showed storefront clean boxes to accountfor about 30% of the total, with in-store
waste accounting for the remaining 70%.
However, storefront clean box waste is

PET bottles are shredded to
become the raw material forrecycled plastic.

increasing every year due to people
disposing household waste when theycome to shop.
● Store Waste Output Survey Results(Average Daily Waste Output Per Store)
Plastic waste
Combustibles
17.0kgFood waste
11.6kg

1.8kg

Total

52.0kgRecyclable
paper
0.1kg

Cardboard
17.0kgGlass
containers
1.3kg
Cans

3.0kg
PET bottles 0.2kg

From the Frontline: Business Partner

Recycling is Productive Activity

Mr. Takashi Magara
Sales Manager, Sanko Co., Ltd.

The way I see it, we’re involved in production rather than garbage treatment. We sort the garbage thoroughly andproduce the best possible compost. If we don’t make good compost, farmers won’t buy it. Thankfully, we have noshortage of order — in fact, too many to fill!
We have a group company involved in growing vegetables with our compost. It sells these vegetables at its own
sales corner in local supermarkets, for example, the tomatoes invariably sell out within 30 minutes. Even children witha dislike for vegetables like our tomatoes, saying they taste really fruity.

Corporate Citizenship Report 200916

Working with our Customers for the Environment
As a network of convenience stores rooted in local communities, LAWSON endeavors to workwith its customers to help create a sustainable society through offering opportunities forpeople to contribute to the environment through everyday activities.

“Bring Your Own” Program to Reduce Plastic Shopping Bag Use
Plastic shopping bag use
per store

Fiscal 2007 result

Over 2 Million “Bring Your Own”
Bags Distributed
To reduce plastic shopping bag use,
LAWSON created its Convenience Store
Eco-Bag to best fit the boxed lunches andplastic bottles that are the most frequent
items purchased. To get as manycustomers as possible to use them, westarted handing them out free at somestores from March 2007. We have also
made the bag’s specifications publicly
available and have called on like-minded
companies to make use of them topromote more widespread use of thesebags. In the 2 years that have passed since
we launched the campaign, we have distributed over 2 million bags.
● “Bring Your Own” Bag Distribution

Bags distributed at LAWSON stores and byGroup companies
1,360,000
Bags made by cooperating companies andorganizations
649,000

Fiscal 2008 result

696

696

kg

● Per-store plastic shopping bag use
(kg)
1,200

900

600

Per-store plastic shopping bag use
Plastic shopping bag handout rate

85.8 84.0

81.6

76.9 612(Target)748 725 696 696

2005 2006 2007 20082009 (FY)(As of February 28, 2009)

Aiming to Reduce Plastic
Shopping Bag Use by 32%
Under the Agreement on Environmental
Protection Initiatives concluded in
September 2006 by LAWSON and theMinistry of the Environment, LAWSON
ensured a 20% reduction in plastic shopping bags by fiscal 2008 compared withfiscal 2005.
The introduction in fiscal 2008 of
Taspo smart cards for preventing cigarettepurchase by minors had the effect ofboosting customer numbers, and as aresult shopping bag use fell by only 7%

17

Caring for our Planetkg● Total-store plastic shopping bag use(%)
100

Total weight of shopping bags used
Stores

(t)
8,000

85

7,000

70

6,000

55

5,000

0

0

compared with fiscal 2005. However, thereduction in plastic shopping bags per
customer was 13.5%, and so our efforts— posters, in-store broadcasts and thepractice of asking customers if they needa bag, as well as the distribution of BringYour Own bags — would appear to be
having an impact.
We plan to combine such measures
to reduce plastic shopping bag use in
fiscal 2009 by 32% compared with fiscal
2000 (the shared target of the 12 convenience store chains belonging to Japan
Franchise Association).

Total bags distributed
2,009,000

612

kg

8,204 8,323

300

0

Fiscal 2009 target

Reducing Plastic Shopping Bag
Use with Customers

8,404 8,505(Stores)
9,000

8,000

6,135 6,037
5,869 5,921

7,000

6,000

2005

2006

2007

2008 (FY)0system in fiscal 2008 that awards one
point to customers foregoing plastic shopping bags at checkout. This resulted in a
reduction of 8.6% in plastic shopping bag
handout rate* since commencing the
program.
Endorsing Kyoto University’s efforts
to reduce plastic shopping bag use, the
LAWSON store at the campus has since
January 2008 provided such bags only
when customers ask for them. By also
selling and lending Bring Your Own bags,
the store reduced average monthly plastic
shopping bag handout rate from 63.8%
to 2% (the average rate during January to
December 2008).
* Plastic shopping bag handout rate = plastic shopping bag
number ordered/customer number

In all of our Hokkaido and some otherstores, we launched a point card member

TOPICS

Popular Character Helps Promote Convenience
Store Eco-Bag Use
In a tie-up with the producers of the anime movie Evangelion New
Theatrical Version: Breaking aimed at promoting the use of its ecobags, LAWSON started selling original figurines of the popularcharacter Rei Ayanami using a Loppi terminal with a Convenience
Store Eco-Bag in her other hand.

Caring for our Planet

Original “Bring Your Own”
chopsticks decorated with
HANSHIN Tigers and
LAWSON logos

Reducing Disposable Chopstick Use through“Bring Your Own” Chopsticks Program
Per-store disposable chopstick use

Fiscal 2007 result

Fiscal 2008 result

56,636

Promoting a New Lifestylethrough Reducing Disposable
Chopstick Use

Creating a “Baseball Bat Forest”
through “Bring Your Own”
Chopstick Use
To reduce the use of disposable chopsticks, LAWSON started to promote BringYour Own chopsticks in April 2007 using
chopsticks made from baseball bat factoryash wood discards with the help of
MIZUNO TECHNICS CORPORATION andOAK VILLAGE Co., Ltd.
In addition to sales through our store
Loppi multimedia terminals, 15,000 setsof these Bring Your Own chopsticks have

55,264● Per-store disposable chopstick use

47,620sets

56,636 55,264
47,620500,000(weight)

7,000

400,000
400,000

492,247(2,461t)

40,000

2006

2007

2008

2009 (FY)

0475,969(2,380t)495,428(2,477t)

300,000

2005(stores)
9,000

8,204 8,323 8,404 8,458(Target)50,0000Total disposable chopsticks used
Stores(thousands of sets)
600,000

60,001 59,525

sets● Total-store disposable chopsticks used(sets)
70,00060,000LAWSON store staffs ask customers
whether they need disposable chopsticks
or not to ensure no chopsticks are handed
out unnecessarily. We also use posters
and in-store broadcasts to encouragecustomers to help reduce disposable
chopstick use.
Through such measures, we aim to
reduce disposable chopstick use in fiscal
2009 by 20% compared with fiscal 2006.

sets

Fiscal 2009 target(Target)467,426(2,337t)

2005 2006 2007 2008 2009 (FY)

5,000

3,000

0

* The disposable chopsticks used in NATURAL LAWSON stores are excluded since they are aimed at promoting the use of disposable
chopsticks made from Japanese forest thinnings.

been distributed to LAWSON employees
and 18,000 sets to companies supporting
this initiative.
These Bring Your Own chopsticks arealso helping to protect and grow a forest,since LAWSON donates ¥100 to thenonprofit organization Donguri no Kai foreach set distributed. The money funds a“Baseball Bat Forest” being cultivated by
Donguri no Kai for preserving ash, which
grows slowly and has not undergone
significant replanting.

Using Japanese Timber to
Preserve Forests
LAWSON helps to promote better
management of Japanese forests andenhance their CO2 absorption capabilities
by actively using timber from wellmanaged forests. Our NATURAL LAWSON
stores provide disposable chopsticks madefrom Japanese cedar forest thinnings (fordetails, see P14: NATURAL LAWSON
Disposable Chopsticks). We also build
wooden stores using local timber, and use
paper made from Japanese forest
thinnings for business reports and otherheadquarters publications.

TOPICS“Bring Your Own” Program Wins Two Awards
LAWSON’s Bring Your Own program, aimed at encouraging people to take theirown reusable shopping bags and chopsticks when they go out, won the Ministerof Economy, Trade and Industry Award in the 3R* Promotion Council’s 2008 3R
Awards to recognize endeavors to promote the 3Rs.
In January 2009, our Bring Your Own Bag program also received a Ministerof the Environment Container and Packaging 3R Promotion Award for Excellence2008.
* 3R: Reduce/Reuse/Recycle. We aim for a recycling-oriented society that efficiently recycle the limited materials while
reducing waste generation as much as possible.

Minister of Economy, Trade and Industry
Award

Minister of the Environment
Container and Packaging 3R
Promotion Award for Excellence

Corporate Citizenship Report 200918

Working with Our Customers for the Environment

LAWSON Green Fund: Growing Forests with Customer Generosity
Projects participated inParticipation in greening
projects in fiscal 2008137

Forest improvement 71
School greening
Overseas greeningof these projects.
Donations to the LAWSON Green
Fund from its inception, including headquarters contributions, totaled 2.78 billion
yen as of February 28, 2009. A total of
2,017 locations in Japan and overseas
have benefited from the funded forestry
improvement projects, with approximately
13.32 million trees over a total area of
5,328 hectares being thinned, planted orotherwise improved.

LAWSON Green Fund Marks its
18th YearLAWSON launched its Green Fundinitiative in 1992 to help grow the foreststhat absorb and store CO2, prevent landslides, conserve water, and bring us somany other benefits. The generous donations of our customers throughout Japan
have since supported a great many forest
improvement projects both in Japan andoverseas through the National Land
Afforestation Promotion Organization.
Franchise store owners, store crews andemployees have also participated in some

Note: The area and number of planted trees are calculated
based on certain conditions presumed from the total of
LAWSON Green Fund and the past results of Green Fund
activities.

64
2

Participants

1,387

peoplethis day. In 2009, we handed out packets
of marigold seeds to about 900,000
customers.

Packets of marigold
seeds

LAWSON Flower and Greenery Day
In 2001, as a symbol of the LAWSONGreen Fund and its forestry improvement
activities, we designated the third Sundayin May as “LAWSON Flower and GreeneryDay.” On this day, customers, store owners crews, and employees and their families participate in tree planting and branch
pruning aimed at restoring a 34 hectare
tract of forest — named the Mt. Fuji
LAWSON Forest — that was devastated bya serious typhoon in 1996. We also handout packets of flower seeds to customers
at LAWSON stores throughout Japan on

LAWSON Green
Fund collection
boxes● LAWSON Green Fund Donations(Millions of yen)
500

LAWSON Green Fund

275

Disaster Relief Fund*

400

300

167

45 93

200

45

23 40

96
24

Ms. Naomi Ishizuka
Owner, Shizuoka Shikichi Store

Being in a store gives you very few
opportunities to enjoy nature, and it’sreally exhilarating to get out into themountains. I wanted others to share theexperience, and so got a number of mycrew members to come along. To
participate in activities like this, you needto run your store well and make sure thatyou have the time, but I really enjoyedparticipating and feel the experience hashelped build my self-confidence.

45

7

107

79
98

190

192
154

196
177

232
175

238
247

254

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (FY)
Note: LAWSON Green Fund collection boxes are replaced for a period by Disaster Relief Fund collection boxes in the event of a majordisaster (see P33 for information about Disaster Relief Funds).

19

Social Contribution that
Builds Confidence

154 166

100

0

64

77

From the Frontline: Participant in Mt. Fuji
Forest Restoration

Caring for our Planet

Ms. Naomi Ishizuka (Owner second from right)

Caring for our Planet

Forest Improvement Projects in Fiscal 2008
LAWSON store owners, crew members and other employees participated in forest improvement projects
at 135 Japanese and 2 overseas locations in fiscal 2008 (March 1, 2008 to February 28, 2009). Volunteers
helped to plant saplings, thin out forests, prune branches and clear brush on steep slopes in all kinds of weather conditions including
rain and snow, but everyone participating got a lift out of working together in the great outdoors.
Hokkaido Region
Hokkaido

DateToyouraToyakoDate Greenery and Flower Festival Project
Hokkaido Steiner School
Toyako Summit 50-Day Countdown Tree
Planting Festival
Hokkaido Toyako Summit Forest Creation
Project
21st century South Hokkaido Forestation Project
Otobe Forest, River and Sea Beautification Project
Nopporo Elementary School
Baro Elementary School
Kaisei Elementary School
Fruit Tree Forest Project
Forest Improvement Project to Mitigate Global
Warming
Newborn Baby Commemoration Tree Planting
Ishikari River Basin 3 Million Tree Planting Project
Forestry Experience and Green Fund Activity ProjectNorthern Woodland Plantation Thinning
Volunteer Day

ToyakoHakodate
Otobe
EbetsuYubetsu
ObihiroShakotan
Tsukigata
BihoroTakikawa
Tsubetsu
ShiraoiTohoku Region
Aomori
AomoriPrefecture Fukaura
Tsugaru
Hanamaki
Iwate
Prefecture Kitakami
Katagami
Akita
Prefecture Ugo
MisatoYamagata Nishikawa
Prefecture Tsuruoka
Kaminoyama
Nishikawa
IshimakiMiyagiPrefecture
Osaki
Fukushima Ishikawa
Prefecture Tenei

Asamushi Elementary School
Beautiful Forest and Pine Sawyer Beetle
Eradication Forest Belt Project
Tsugaru City Amalgamation 3rd Year
Anniversary Tree Planting
Hanamaki Special Needs School
Waga Nishi Elementary School
Tenno Minami Middle School
Fureai Hiroba Construction LaunchCommemorative Tree Planting
Kanazawa Elementary School
Watershed Forest Protection Volunteer Project
Sakae Elementary School
Minami Elementary School
National Participation Forest Thinnings
Utilization Project
Kinkazan Forestation and Forest Improvement
Project
National Participation Forest Restoration and
Preservation Project
Minami Yamagata Elementary School
Hiroto Elementary School

Kanto Region
Hitachi
IbarakiPrefecture
UshikuSakuraTochigi
Prefecture
SakuraUtsunomiya
Nikko
Minakami
Gunma
Prefecture Takasaki
Saitama
SaitamaPrefecture Saitama
Saitama
SaitamaChichibu
Hachioji
Tokyo
Minato Ward
Toshima Ward

Mottainai Kids Afforestation Project,
Sukegawayama Citizens’ Forest Oak Planting Day
Kamiya Elementary School
City Folk Forestry Experience and Woodland
Conservation Project
Forest Fan Club Forestry Experience Project
Mottainai Kids Afforestation Project
Utsunomiya Tree Planting Day
Ashio Elementary School
Fureai no Mori Forest Improvement Project
Notsuke Elementary School
Omiya High School Forest of Life Project
Nakacho Elementary School
Shimo-ochiai Elementary School
Harigaya Elementary School
Low Pollen Maple Forest Project
Takao Forest Tree Planting Festival
Aoyama Elementary School
Sugamo Elementary School

Kanagawa Yokohama
Prefecture Yokohama
HadanoTakada Elementary School
Kurata Elementary School
Ochiai Hachiman Shrine Thousand Year Forest
Project
Echi Minami Elementary School
Hikarigaoka Elementary School

Atsugi
Sagamihara

Chubu Region
Agano
Niigata
Prefecture Sado
KamiichiToyamaPrefecture Namerikawa
Ishikawa Hakusan
Prefecture Kanazawa
Anamizu
Fukui
Fukui
Prefecture
Yamanashi Fuefuki
Prefecture
NakanoNaganoPrefecture Ogawa
Iida
Ibigawa
Gifu
Prefecture
Kani
Shizuoka Shizuoka
Prefecture Fujinomiya
Arai
Makinohara
ItoShimizu
Toyokawa
Aichi
Prefecture Handa
Seto
Gamagori
Kameyama
Mie
Prefecture Inabe

Woodland Thinnings Utilization Project
Ondeko no Mori Forest Improvement Project
Yonan Elementary School
Nambu Elementary School
Green Planet Conservation Volunteer Project
Shinkanda Elementary School
Anamizu Elementary School
Hongo Elementary School
Ichinomiya Nishi Elementary School
Hirano Elementary School
Woodland Improvement Experience Workshop
Kamihisakata Elementary School
Ibigawa Basin Citizens’ Gongen Watershed
Forest Project
Minami Katabira Elementary School
Yatsuyama Landscape Restoration Project
Mt. Fuji LAWSON Forest Project
Hamana Special Needs School
Hagima Elementary School
Derelict Plantation Forest Rejuvenation andThinnings Utilization Project
Shimizu Elementary School
Tobu Elementary School
Kamezaki Elementary School
Sanage Forest Improvement Project
Miya Elementary School
Kameyama Higashi Elementary School
Let’s Enjoy the Forest Project

Kinki Region
Omi Hachiman
Shiga
Prefecture Nishiazai
NantanKyoto
Prefecture
Kyotango
NantanNara
Nara
Prefecture
SennanOsaka
Prefecture Toyonaka
Izumisano
Ikeda
Shiso
Hyogo
Prefecture
Wakayama Iwade
Prefecture

Musa Elementary School
Yamakado Watershed Forest Volunteer Project
Forest Management and Improvement
Experience ProjectToyosaka Elementary School
Charcoal Maker Training Workshop
Manyo no Mori Tree Planting Festival
Sennan Woodland Conservation Society
Daijugo Middle School
Mottainai Kids Afforestation Project Senshu
Danjiri no Mori Tree Planting Festival
Project to Turn Mt. Satsuki into a Rhinoceros
Beetle Mountain
Thousand Year Oak Forest Association Tree
Planting Project
Negoroyama Genki no Mori Smoked
Thinnings Utilization Project

Chugoku Region
TottoriTottori
Prefecture Tottori
YonagoTsunoi Elementary School
Hamasaka Elementary School
Mottainai Kids Afforestation Project Yonago
Tree Planting Day

Shimane Matsue
Prefecture
Okayama Niimi
Prefecture Bizen
Okayama
Hiroshima Mihara
Prefecture Fuchu
Fuchu
Fukuyama
Hiroshima
Hiroshima
Yamaguchi Yamaguchi
Prefecture

Woodland Restoration and Local Biomass
Energy Production and Use Project
Eco-Camp 2008
Higashi Tsuruyama Elementary School
Mayakami Elementary School
Sankeien Tree Planting Festival
Ashida River Watershed Forest Project
Ashida River Watershed Forest Project
Isegaoka Elementary School
Hirose Elementary School
Magame Elementary School
Higami Sanno Shrine Relic Commemorative
Tree Planting

Shikoku Region
Naka Oku Forest Improvement Project
Tokushima Naka
Prefecture
Manno
Forest Thinning Workshop
KagawaHigashi Ueta Elementary School
Prefecture Takamatsu
Higashi Kagawa Honmachi Elementary School
Imabari
Soja
River Watershed Forest Conservation Project
Ehime
Thinnings Utilization and Water Resource
Prefecture UchikoConservation Forestry Project
Ino
Mirai no Mori (Forest of the Future) Project
Kochi
Ichinomiya Higashi Elementary School
Prefecture Kochi

Kyushu Region
Fukuoka Chikujo
Prefecture Nakagawa
Shima
Yukuhashi
Nagasaki Omura
Prefecture
Taku
Saga
Prefecture
Kumamoto Kumamoto
Prefecture Yatsushiro
Aso
Asagiri

Buzenkai Watershed Forest Conservation Project
Katanawa Elementary School
Derelict Bamboo Woodland Restoration Project
Hieda Elementary School
Fukushige Elementary School
Chubu Elementary School

Yamanouchi Elementary School
Uyanagi Elementary School
Kumamoto Watershed Forest Improvement Project
Mountain Village Exchange Forest
Revitalization Project
Minami Aso
Hakusui Elementary School
Koshi
Mottainai Kids Afforestation Project Koshi Tree
Planting Day
Uki
Misumi Elementary School Forest Project
TaketaOgi Elementary School
Oita
Nakatsue Forestry Volunteer Commemorative
Prefecture Hita
Afforestation Project
Hita
Thinnings Utilization-Driven Watershed Forest
Conservation
Kotsuki River Upper Reaches Forestation Project
Kagoshima Kagoshima
Hometown Beautiful Forest ProjectPrefecture Kagoshima
Ichikikushikino Kushikino Elementary School
Kirishima
Beautiful Riverside Woods Project
Shurijo Koji no Mori Forestation Project
Okinawa Kunigami
Tokeshi Elementary School
Prefecture Yomitan
Naha
Naha Middle School

Overseas
China
Laos

DatongSayaboury
Province

Loess Plateau greening
Mottainai Kids Afforestation Project (Nong
Sawan Elementary School)

Corporate Citizenship Report 200920

Lawson Environmental Activities Report

Environmental Activities: Targets and Results● FY2008 Environmental Activities Results
Item

Activity

Targets

Reduce electricity consumed by store air
conditioning and refrigeration.

Achievement Status

Achievementlevel1

Install energy-efficient equipment in 1,500
existing stores (cumulative: 3,000 stores).

Newly installed in 1,768 stores (Cumulative: 3,253 stores).

Achieved

Install energy-efficient equipment in 90% of
new stores.

Installed in 430 out of 452 new stores
95% deployment.

Achieved

Reduce CO2 emissions and atmospheric pollutants
through the promotion of eco-friendly driving, and useof low emission vehicles and eco tires.

Reduce per-store CO2 emissions by 1.0% (91kg-CO2 /store) compared with FY2007.

Down 3.2% compared with FY2007 (291 kg-CO2/store).

Promote safe eco-friendly driving of company
cars.

Set targets and draw up action plan.

Established system to promote safe eco-friendly driving andimprove mileage.

Promote companywide mitigation of global
warming (reduction of CO2 emissions).

Reduce unit CO2 emissions (operating hours x floor
space) by 22.3% compared with FY1990.

Reduced unit CO2 emissions by 60.3g-CO2/m2h
Down 22.7% compared with FY1990.

Reduce plastic shopping bag use (by asking
customers if they need shopping bags).

Reduce per-store use by 17.2% by weightcompared with FY2006.

Down 4.0% compared with FY2006.

Reduce disposable chopstick use (by asking
customers if they need chopsticks).

Reduce sets used per store by 10% compared Down 6.9% compared with FY2006.
with FY2006.

(1) Use more lightweight packaging.
(2) Use non-plastic packaging (paper,
biodegradable plastic) where possible.

Reduce CO2 emitted by incineration of
packaging by 5% compared with FY2006.

Down 12.6% compared with FY2006.

Reduce waste through more efficient preparationand delivery of sales promotion materials.

Reduce materials delivered to stores by 5% andunused materials by 5% compared with FY2007.

Materials delivered down 1.5% compared with FY2007.
Unused materials down 13.7% compared with FY2007.

Reducing waste

Reduce and recycle food waste.

Stores recycling food waste: at least 26%(1) Used oil recycling: 7,750 stores(2) Recycling into animal feed or compost:
1,400 stores(3) Garbage processors: 61 units

Stores recycling food waste: 24.6%2(1) Used oil recycling 7,599 stores(2) Recycling into animal feed or compost: 1,013 stores(3) Garbage processors: 50 units(4) Thermal recycling: 124 stores

Contributing tolocal community

Continue collecting donations through LAWSONGreen Fund

(1) Place donation boxes in all stores.
(2) Participate in greening projects.

(1) FY2008 donations: 250 million yen (Cumulative: 2.78 billion yen)(2) Greening projects: 137 locations

Saving energy

Saving resources

Achieved

Achieved(Reference) Down by 22.7% by weight compared with FY2000. Handout rate(plastic shopping bag number ordered ÷ customer number): 76.9%

Achieved

Achieved

1. Achievement level: Quantitative assessment: 100% achieved:
70% or higher achieved:
Under 70%:
2. Stores recycling food waste including curbing of food waste generation according to the Food waste Recycling Law: 28.5%● FY2009 Environmental Targets
Item
Saving energy

Activity

Targets (FY2009)

Reduce electricity consumed by store air conditioning, refrigeration and lighting. Install energy-efficient equipment in 90% of new stores.
Install adjustable lighting systems or LED lighting in 90% of new stores.
Reduce per-store CO2 emissions by 4% compared with FY2007 (364 kg-CO2/store).

(1) Promote safe eco-friendly driving of company cars.
(2) Reduce emissions through introduction of electric vehicles.

(1) Improve company car mileage by 10% compared with FY2008.
(2) Introduce 40 electric vehicles.

Reduce store electricity consumption through installation of energy-efficient equipment.

Reduce monthly electricity consumption by new store equipment installed in FY2009 by 326 kW/store.

Promote companywide mitigation of global warming (reduction of CO2 emissions).

(1) Build CO2 emissions database. (2) Build energy-efficient store model.

Reduce plastic shopping bag use.

(1) Reduce through asking customers and expanding points system.
(2) Promote Bring Your Own Bag program.
Reduce per-store handout rate by 3% compared with FY2008 (32% reduction compared with FY2000).

Reduce disposable chopstick use.

(1) Reduce through asking customers. (2) Promote Bring Your Own Chopsticks program.
Reduce per-store use by 20% compared with FY2006.

(1) Use more lightweight packaging.
(2) Use non-plastic packaging (paper, biodegradable plastic) where possible.

Reduce CO2 emissions from incineration of packaging by 7.0% compared with FY2006.

Reduce store sales slips.

Reduce sales slips and other paper by 80 million sheets.

Promote efficient use of sales promotion materials and comply with disposal laws.

Base materials on standards, and comply with disposal laws.

Reducing waste

Reduce and recycle food waste.

Increase stores recycling food waste by at least 4% compared with FY2007 (at least 26.5%).

Contributing tolocal community

Continue collecting donations through LAWSON Green Fund.

(1) Place donation boxes in all shops.
(2) Participate in greening projects.

Promoting use /educationWork with customers to mitigate global warming (CO2 Offset program).

(1) Promote CO2 offset (points, Loppi) (2) Continue to sell CO2 offset products.
(3) Research carbon footprint display on labels.

Saving resources

21

Reduce CO2 emissions through the promotion of eco-friendly driving and use of
eco tires in delivery trucks.

Caring for our Planet

Caring for our Planet

Environmental Accounting
Period: March 1, 2008 to February 28, 2009

Scope: LAWSON INC. (parent company) and franchise stores
Unit: thousands of yen

Main activities
Environmental
protection

Investment

Benefits−

4,905,957

Energy savings: 34,407,654 kWh

Cost

Energy-efficient equipment such as Eco-pack units and automatically adjustable
lighting systems
Industrial waste disposal

417,110−Compliance with laws and regulations

3,832,836−

Compliance with laws and regulations

Food waste recycling (animal feed, compost, used oil recycling, reduction measures, etc.)

669,090−5,770 tons of animal feed and compost production

CFC collection and destruction

59,467−

Ozone layer protection, global warming mitigation

R&D

Investment in artificial intelligence and new electric vehicle technology testing

7,440

13,076

Management
andmaintenance

Environmental management system operation

2,501

−

Promotion of environmental activities

Container and Packaging Recycling Law recycling contractor charges

292,682−

Wise resource use

Environmental advertising, enlighting, education, and reporting

91,606−

Raising awareness of environmental activities

Socialcontribution

Donations to the National Land Afforestation Promotion Organization and NPOs

21,671−

Support for social contribution activities

Greening and cleanup activities

13,816−

Local community greening and cleanupStore waste disposal

Energy savings

1. Store waste disposal and recycling cost is an estimate based on the figures for a standard store.
2. Travel expenses are distributed according to expenditure purpose.

Group Company Environmental Initiatives

LAWSON ATM Networks, Inc.
Switching to New ATMs to Reduce CO2Emissions
LAWSON ATM Networks, Inc., which was
operating about 6,200 ATMs in 38 prefectures as of May 31, 2009, replaced old
ATMs. The new ATMs use paper rolls that
can issue 1.5 times as many ATM receipts
as the old ATMs, reducing maintenancevisits and saving energy as a result.

LAWSON ENTER MEDIA, INC.
(formerly LAWSON TIKET INC.)
Raising LAWSON Green Fund at Music
EventsLAWSON ENTER MEDIA, INC. supports
forest improvement projects both in Japanand overseas through concerts and otherevents. Initiatives include collecting
donations at NATURAL Songs concerts,
and the donation to LAWSON Green Fundof part of the ticket price for Music Tree
Live, a music event held at Yakushiji
Temple in Nara Prefecture with the aim ofsupporting forests through music.

Stickers promoting the concert

Ninety-nine Plus Inc.
Reducing plastic shopping bag use
Ninety-nine Plus Inc., which operates
about 900 SHOP99 single-price, small
portion stores and other outlets,
endeavors to reduce plastic shopping bag,disposable chopstick and spoon use at its
stores by displaying original posters andasking customers whether they need
shopping bags or chopsticks.

In-store notice

Corporate Citizenship Report 200922

Enriching theCommunity
re 3
Special Featu

rts
o
f
f
E
’s
N
O
S
W
LA
l
to Enrich Loca
Communities

1

2

3
Number of “Eat Local*”products sold in fiscal 2008:
approximately* Local production for local consumption

430

Products to Enrich the Community● Developing Products with Local Produce for Local andNationwide Consumption

With its nationwide chain of stores, LAWSON implements all
sorts of initiatives for enriching the local communities inwhich it operates. Our “Eat Local” initiative is a good
example. We develop and sell original products made withlocal produce and tailored to local tastes for local sale. Using
locally produced ingredients adds to food safety and selling
locally made products locally contributes to the local
economy too.
We have also taken the concept a step further by selling
local specialties in other regions too. In December 2008, westarted selling aboxed lunch that uses
Awa Odori, a local
Tokushima breed ofpoultry, in storesnationwide.

LAWSON seeks to offer products andcreate stores that meet local customer
and neighborhood needs while
making use of the advantages offered
by a nationwide network. We hope togive everyone a lift through a wide
range of initiatives to enrich the local
communities in which we operate.

23

Enriching the Community

The Kayaku Gohan boxed lunchthat uses Awa Odori chicken● Products Tailored to Different Lifestyles

LAWSON endeavors to enrich the community by providing
high value products tailored to the increasingly diverse
lifestyles of its customers. Our Value Line private brand,
products developed for LAWSON STORE 100 outlets are
tailored to 1-2 person households and others looking forsmall portions. We added to our range of original Value Linefrozen foods, soft drinks, and processed foods (seasonings,
instant foods, etc.) with the sale of Value Line Ready-to-Eat
foods in April 2009 and Value Line Salads in June 2009, allpriced at 105 yen includes tax.
We make these products in our own factories to offer top
quality while keeping prices low through bulk purchase ofingredients and simplified packaging. This initiative hasboosted customer convenience by expanding productchoice.

● LAWSON STORE 100 Popular with housewives, students andthe elderly

These stores sell almost all of fresh food, processed foods
and sundries at the simple price of 105 yen including tax,
and are very popularparticularly amonghousewives, students
and the elderly. We sell
only the freshest andbest quality fresh foods,
putting priority on
selling vegetables andfruits in season.

● LAWSON PLUS Offering Products Tailored to Local Needs
Value Line products

LAWSON PLUS stores offer fresh produce alongside regular
LAWSON offerings tomeet the needs of local
customers. Products
offered are adjusted
according to locationsuch as urban, rural etc.

Value Line Ready-to-Eat
products

From the Frontline: Employee

Stores that Enrich the Community
As society and lifestyles evolve, customer needs arediversifying. To keep abreast of these changing needs,
LAWSON is implementing various reforms that try to takeconvenience stores to the next level.
● NATURAL LAWSON for Health-Conscious Consumers andWorking Women

NATURAL LAWSON stores put priority on health, beauty andcomfortable lifestyle, and are located in business districts oflarge cities to cater to the large number of working women.
They offer healthy, low-calorie ready-to-eat foods and boxedlunches, sweets made from select ingredients, detergentsand cosmetics made from natural materials, and otherproducts that canbe used withpeace of mind.
NATURALLAWSON stores
have won afollowing among
health-conscious
men as well as
women.

Kiyoshi
Shimotori
Chief Buyer, Processed
Foods Department,
Ninety-nine Plus Inc.

I handle chocolates, snacks, rice biscuits and othersweets.
The price of SHOP99 and LAWSON STORE 100
products is fixed, and so the challenge is to offer
products with real value for the price.
I get ideas for products I’d like to handle bywandering around supermarkets and other shops,
and we also get feedback from customers on the kindof materials they want us to offer, but we’re to acertain extent limited by price, and with the rise in
price of produce recently, it’s not always easy to offersome products. We offer small portions and so forth
to surmount such issues, but we need to square thiswith volume demands too. However, when you
manage to overcome hurdles and see the products
you developed lining store shelves, you get a real
sense of achievement.
I aim to continue adding to product assortment
while also providing even safer products.

Corporate Citizenship Report 200924

Keeping Customers Satisfied
LAWSON eagerly heeds customer feedback to earn trust, provide greater convenience, improve products and services, andensure that customers remain satisfied.

Efforts to Ensure Customer Satisfactionthat reach customers are safe, trustworthy,
healthy and delicious.

To enhance customer satisfaction andserve as the “Hot Station in the
Neighborhood,” LAWSON focuses on
three key priorities — the provision ofquality products, operation in convenient
locations and implementation of the threechallenge practices.

Convenient Locations

The Three Challenge Practices
Our the three challenge practices of store
operation are: (1) ensuring marchandise
assortments are matched to individualstore locations; (2) serving customers
courteously; and (3) keeping stores
surrounding areas clean.
To ensure that we can supply what
our customers are looking for, we utilize
individualized “store charts1” to ensure
the right mix of merchandise for theneighborhood. Each and every store
differs in location, climate and local event,and analyzing these neighborhood attributes enables FC owners to tailor theirstores to the needs of local customers.
To provide enjoyable customer
experiences and ensure that neighbors
welcome our presence, we keep ourstores and their surroundings immaculately
clean.To respond to the feedback andrequests we receive from customers on
the courtesy of our store crews, we use
conduct manuals to promote the provisionof courteous, heartfelt customer service.
We conduct seminars for franchise
stores and training for FC owners andcrews to promote the practice of thethree challenge practices throughout the
LAWSON organization.
In fiscal 2009, we plan to launch
PRiSM, a next-generation information
system designed to further promotecustomer-driven merchandise assortment
and innovate the ordering process. PRiSM
will enable precision ordering andenhance product lineup, hospitality, andother aspects of customer service.

We actively seek to open new shops inlocations such as schools, hospitals, post
offices, subway and train stations, airports
and expressway parking areas, tailoring
stores to the nature of the location to best
meet customer needs.

1: Store charts: an important tool for franchised store owners tomake decisions as it includes analysis of marketing and management on an individual store basis. Through the use of
these “store charts,” each store is able to promote marchandise assortment and ordering that is matched to the individual
characteristics of each store locations.

Quality Products
Our headquarters works hand-in-handwith our stores to constantly improve
operations and ensure that the products

Kyushu Expressway Kiyama Parking Area
LAWSON Highway Pit Kiyama Nobori Store● LAWSON’s approach to customer satisfaction

LAWSON customer satisfaction

Quality products

Three golden rules

The Three Challenge Practices

Serving customers
courteously

Safe

Trustworthy

Quality products

Healthy

Delicious

Keeping stores
surrounding
areas clean

Convenient locations

25

Enriching the Community

Convenient locations

Tailor merchandise to
local customer needs

Ensuring
marchandise
assortments arematched toindividualstore locations

Customer Feedback Structure

LAWSON
Customer Center

SVs / company sections

Customer feedback
structure on intranet

Reporting at
department
leader meetings

Sharing feedback with headquarters● Customer Feedback Numbers

Enriching the Community

As the number of our services grows, sodoes the volume of feedback received
each year by the Customer Center. We
are also seeing an increasing diversity of
feedback that appears to be prompted by
the major changes that started to sweep
society in fiscal 2008.
As in the past, the most frequent typeof feedback in fiscal 2008, accounting for43.3%, concerned store operations.
Enquiries about products and services
decreased, but opinions and otherenquiries rose dramatically to 42.5%. We
received considerable feedback on
environmental topics, and also an increasing number of improvement requests
regarding noise, litter and ashtrays aroundour stores.
We will continue to share feedback
across our organization to implement
further improvements.

Stores / departments

Explanation of improvements, etc.

Feedback Received by
the LAWSON Customer Center

Customer feedback

Replying to customers

The LAWSON Customer Center isdedicated to channeling customer
enquiries and feedback to appropriate
sections for prompt response, and to
sharing any issues with all employees
through the company intranet and othermeans to make any necessary
improvements.
Feedback is used to improvecustomer satisfaction through developing
store quality, new products, and newservices.

● Customer feedback structure● Fiscal 2008 Customer Feedback Breakdown(No. of calls)
50,00042,954

Opinions andother enquiries
42.5%Store operations
43.3%

39,57340,00031,87834,36330,000Total

42,954calls

20,00010,0000

Others
2.9%
2005

2006

2007

2008 (FY)

Products andservices
11.3%

TOPICS

Acting on Customer Feedback:In March 2009, we launched the sale ofthe third version of Nissin Ultimate Curry:
Chicken Curry Noodles developed largely
by “NAZO NO LAWSON-BU”, a LAWSON
fan community.
This is a hit series launched in 2007
that has sold out rapidly with the releaseof every new version. NAZO NO LAWSONBU is an online fan community locatedwithin LAWSON’s official mobile site.
Members engage in lively dialog, and thisproduct was developed in cooperation
with NISSIN FOODS PRODUCTS CO., LTD.
based on the suggestions of community
members.
Corporate Citizenship Report 200926

Providing Safe, Healthy Products
Providing customers with safe products that contribute to their health is a major responsibility of the Company, and we placemaximum priority on food safety in all processes from product development to manufacture and sale.

Ensuring Customer Safety and Health
Concerns about food safety have risen
dramatically in recent years. One of ourmost important responsibilities at
LAWSON is to provide safe food productsthat address health requirements. Our
headquarters works hand-in-hand withstores to ensure that all of our foodproducts are safe, healthy and delicious.

● LAWSON´s Approach to Safety and HealthOffer healthy
products.

●Select ingredients with care.
●Pay attention to nutritional balance in menus.
●Include often-neglected vegetable content.

Offer safe products.

●Eliminate use of preservatives and artificial
coloring.
●Practice strict freshness, temperature andhygiene management.

Safety Measures
LAWSON´s products are subjected tothorough quality control procedures incompliance with environmental andhygiene regulations. Our stringent policies
at all stages from product development
through production and sales ensure that
customers can purchase our products
without any safety concerns. We are doing
our utmost to minimize food additives,and use no artificial colorings and preservatives in original LAWSON products*.
In addition to mandatory informationsuch as product name, use-by date, ingredients and allergy warnings, we voluntarily
display calories per serving and other nutritional data on original LAWSON productlabels. We prepare specifications for eachproduct, and take accurate records ofsuppliers, preparation methods and any
food additives included for each ingredient, reflecting this information in theingredients section of the label. Our
Quality Control Dept also carries out stringent checks on the content of productlabels, and further checks are carried byexternal specialists and at the production
stage, ensuring that product labels havebeen double-or triple-checked for accuracy
before reaching the consumer.
* Boxed lunches, rice balls, sushi, bread snacks, salads, readymade noodles, pasta which has LAWSON´s trademark on theprice tag. Dishes cooked within each store are excluded.

● Main Items Displayed on Product Labels

Use-By Date

Packaging Identification

The period in which the
product may be eaten withconfidence

Packaging material
information to facilitate
sorting for recycling anddisposal

Ingredients
Ingredients displayed in theorder of highest content by
weightNutritional Information
Calories per serving, protein,fat, carbohydrates and sodium
content

Food Additives
Displayed as prescribed by the
Food Sanitation Act

Allergens
Five items required by law and
20 items displayed voluntarily

27

Enriching the Community

Quality Checks at All Stages from Ingredients to StoresSelecting Ingredients
LAWSON´s Raw Material Purchasing
Department inspects ingredients, for
original products carrying out regularchecks of established as well as new suppliers. For the salmon used in rice balls, forexample, we check salmon feed content,
culture methods, processing plant equipment, and process management.

Manufacturing Plants

DeliveryCooking temperature, time and othermanufacturing process parameters are
precisely stipulated and strictly adhered
to. Sampling checks are conducted on
ingredients and semi-processed products
during manufacture. Plant interiors are
kept spotlessly clean at all times. Employees are required to wear uniforms andfollow sanitization procedures prior toentering plants to prevent the introduction of foreign matter, and to scrub anddisinfect their hands thoroughly. Metal
detectors and X-ray scanners are used tocheck for foreign bodies. Other checks arerun at various stages to confirm adherence to specified quantities and weights,
correct label displays and so forth.

Set work processes are used for sorting
and loading products for delivery to storesto ensure efficient operations that follow
stipulated temperatures and times.
Delivery trucks are fitted with thermometers and product storage status is monitored constantly.

Product Example 2: Healthy Vegetable
Rice Makunouchi Boxed Lunch

Product Example 3: Fancl-Designed
Salad

An ideal boxed lunch both for people
observing dietary restrictions as part oftreatment regimens and for thosewanting to change their eating habits wasdeveloped under the supervision of theJapan Diabetes Society 51st Executive
Committee (sold in May 2008).

A salad was developed under the supervision of health supplement and healthrelated product vendor FANCL CORPORATION to contribute to stress release, maintenance of physical condition, diet andskin condition. It comes with a dressing
containing GABA, vitamin C and otheringredients (sold in April 2008).

Product development
Once product specifications have been
decided, we conduct document checks
and carry out pilot production on aworking production line to check safety.

Enriching the Community

We practice strict safety, hygiene andquality management at every stage fromselection of ingredients to manufactureand sale in our stores to ensure that ourcustomers can feel completely confident
about buying our boxed lunches, riceballs, ready-made noodles and otherdishes, bread snacks and fast foods.

StoresAt stores, product display case temperatures are checked four times daily, andsupervisors also conduct regular hygiene
checks. Fast foods and other products are
subject to stringent temperature andfreshnessmanagement,
including onceyearly unannounced
hygiene checks
by external
regulatory
authorities.

Contributing to Health
Customer health is becoming an increasingly important issue, and LAWSON pays
attention to ingredient quality, nutritionalbalance and the inclusion of oftenneglected vegetable content whendeveloping products. To address growing
customer interest in health, we are
expanding our NATURAL LAWSON
product lineup, and have started sellingsome products originally developed for
NATURAL LAWSON in conventional
LAWSON stores too.
Product Example 1: Liquid Salad
We developed a chilled soup rich invegetables and providing vital fiber andminerals (sold in June 2008).

Corporate Citizenship Report 200928

Providing Safe, Healthy Products

Niigata Koshihikari Onigiri Rice Balls Using
Designated Farmer Rice
Niigata Koshihikari Onigiri Rice
Balls that Address Customer
SafetyLAWSON’s Niigata Koshihikari Onigiri riceballs have been very popular amongcustomers ever since they were first soldin 2002. We currently sell an annual 150
million of these rice balls, which are madeonly from select ingredients — Niigata
Koshihikari rice flavored with Seto Bizen

sea salt and wrapped in nori (dried laver
seaweed) from the Setouchi region.

Switch to DesignatedFarmer Rice
Why We Use Only Designated
Producers
Customer concerns about food safety
have been
growing
recently. To
offer the kindof high quality
product
demanded byour customers,in October
2008 weswitched tothe exclusive

Niigata Koshihikari Onigiri rice balls* “Specially-Cultivated Rice” is a name based on Ministry ofAgriculture, Forestry and Fisheries display guidelines.

Signs bearing the names of
producers and managers

From the Frontline 1: Rice Farmer

From the Frontline 2: Rice Farmer

Growing Rice that Consumers Can Trust

Making Paddy Fields Inhabited by Medaka

Mr. Yoshiji Ogawa

Mr. Masao Hosoya

Joetsu City

Joetsu City

We have put about 100 four-ton
truckloads of compost on these paddy
fields every year from about 5 to 6 years
ago. Using organic fertilizer boosts theability of the soil to grow crops. We use
no weed killers whatsoever on the paddy field banks, cutting thegrass back by hand 5 or 6 times from spring through to harvest.
We could get higher yields if we used chemical fertilizers,
and we wouldn’t have to cut the grass on the banks so often if
we used weed killers, but what we’re growing here is tasty ricethat consumers can trust as being totally safe. It takes a lot of
toil to make such rice, but we’re proud that consumers choose
our product, and we’ll make every effort to grow rice that
continues to earn that trust.
Photo: Mr. Yoshiji Ogawa (left) and Mr. Shinichi Iikawa

29

use of Niigata Koshihikari “SpeciallyCultivated Rice”* for our Niigata
Koshihikari Onigiri series of rice balls. This
rice makes up no more than 20% of all of
the Koshihikari rice cultivated in Niigata
Prefecture.
The “Specially-Cultivated Rice” usedin this series is grown by approximately
2,900 designated rice farmers belonging
to 4 Niigata agricultural cooperatives (JA)

Enriching the Community

What prompted me to rethink how I
made rice was the almost total
disappearance of pond snails, which you
could find in their thousands in paddy
fields when I was a kid. I decided to try
and restore that habitat, and five years ago switched to a more
eco-friendly way of soil management. My efforts wererecognized by Niigata Prefecture, which certified me as an
eco-farmer. The methods I use take a lot of time and it’s quite asweat, but I see more snails every year, and feel that paddy
habitat is definitely changing. I hope that in the future, medaka(Japanese killifish) will also inhabit these paddies, since there arealmost none at the moment. And of course, I always want togrow even safer, tastier rice.

Meticulous Cultivation

Agriculture in Tune with Nature“Specially-Cultivated Rice” is rice that is
cultivated according to special guidelines
drawn up by the Ministry of Agriculture,
Forestry and Fisheries. The cultivation
process requires extra work, since use ofchemical fertilizers is curbed and organic
fertilizers are stipulated.*

Creating fertile soil is essential for growing
tasty rice. Organic fertilizer made mostly
from manure and bean pods is used toequip the paddy fields with the kind offertility required to grow “SpeciallyCultivated Rice.” Organic fertilizer allows
soil microorganisms to flourish, and thisboosts the biodiversity of the fields. Thiskind of agriculture allows pond snails andfrogs to thrive, attracting herons andother wildlife that feed on these life
forms, and creating fertile paddy fields inwhich life is constantly renewing itself.

* Chemical fertilizer quantity and the number of applications ofchemical pesticides are required to be below 50% of what iscustomary for the area concerned.

Enriching the Community— JA Echigo Joetsu, JA Echigo Nagaoka,
JA Niigata City, and JA Niigata Nankan.
Using designated farmers enables
thoroughgoing cultivation record keeping.
The carefully managed paddy fields are
identified with signs bearing the names of
producers and managers, and undergo 3
rigorous on-site inspections up to harvest
to check on cultivation management
status.
The rice balls wrappings are labeled“Designated Farmer Rice” to communicate the special nature of this “SpeciallyCultivated Rice.”
Safty is derived from Mutual Trust
We feel that the farmers behind the riceballs eaten by so many people deserve to
be seen, and so we display them on our
website and on posters and other media.
This more personal relationship withcustomers also motivates farmers to keep
growing great rice.
We aim to create even safer andtastier products by building mutual trust
between producers and customers likethis.

Paddy fields where snails live too

TOPICS 1

TOPICS 2

Products with a Face to Them

New Employees Plant Rice for Rice FlourBread

LAWSON sells vegetables and fruits grown by identified
producers under the name “Fresh Produce with a Face.”
Identifying the producer enables people to feel even morereassured about the safety of products. Producer information isdisplayed on shelf and product labels. In fiscal 2008 we soldabout 50 such products. The greenhouse-cultivated tangerinesgrown by members of Saga Prefecture’s JA Karatsu Greenhouse
Tangerine Produce Group and sold at the end of June only in
Hokkaido and the Kanto Region proved to be particularly
popular.

The greenhouse-cultivated tangerines grown by members of Saga Prefecture’s JA

In September 2008, LAWSON started to sell bread made with
100% Japanese-grown rice flour. At the beginning of May
2009, as part of their training program, new LAWSON
employees joined Niigata Prefecture Governor Hirohiko Izumida
in planting the paddy fields in Niigata Prefecture’s Kaetsu Region
where the rice for this flour is cultivated with the cooperation of
JA Zennoh Niigata Division. In fall 2009, rice flour bread madewith the rice planted by our new employees will
be sold in our stores.

Rice flour bread
products

Corporate Citizenship Report 200930

Together with the Local Community
LAWSON aims to fulfill its role as the “`Hot´ Station in the Neighborhood” through a nationwide chain of stores that satisfy
the needs of customers and contribute to the safety, comfort and quality of life of the neighborhoods in which they operate.

Community Cooperation Programs throughComprehensive Agreements with Local Authorities
LAWSON aims to be the “`Hot´ Station in
the Neighborhood” through store
management rooted in the local community and activities that contribute to that
community. As part of these efforts, wepartner with local authorities on joint
projects to improve neighborhoods andpromote local development.
By the end of May 2009, we hadentered into comprehensive agreementswith 28 local authorities, and are involvedin a wide variety of projects such as thedevelopment of products that use theproduce of the prefecture concerned.
● List of Comprehensive Agreements with Local
Authorities Concluded since the Start of Fiscal
2008 (as of May 31, 2009)
Agreement Partner
Date of Agreement
Kagawa Pref.
Mar. 13, 2008
Yamagata Pref.
May 30, 2008
Iwate Pref.
Jun. 23, 2008
Yamanashi Pref.
Jun. 24, 2008
Saitama Pref.
Jun. 30, 2008
Nagasaki Pref.
Jul. 9, 2008
Shizuoka Pref.
Sep. 22, 2008
Ishikawa Pref.
Nov. 27, 2008
Aomori Pref.
Dec. 15, 2008
Shimane Pref.
Mar. 13, 2009
Gifu Pref.
Mar. 31, 2009
Yokohama CityMay 21, 2009
Hyogo Pref.
May 27, 2009

●Hokkaido
Staging the Hokkaido Environmental
Declaration Fair
From November 18 to December 1, 2008,
all LAWSON stores in Hokkaido staged
the Hokkaido Environmental Declaration
Fair, an initiative implemented in conjunction with the Hokkaido government´s EcoIsland Hokkaido Declaration ofEnvironmental Conservation. During thisperiod, LAWSON´s Hokkaido stores handedout original design bring your own bags
decorated with Hokkaido´s environmental
conservation mascot as free gifts to any
customers who purchased an “Eat Local”
Hokkaido Daimansai
boxed lunch madeentirely from
Hokkaido
produce.

31

Enriching the Community●Iwate Prefecture
38 Morioka Stores Earn Eco Shop
Certification
As part of LAWSON´s agreement with
Iwate prefecture, 38 LAWSON stores in
the city of Morioka received “Eco Shop”
certification in March 2009. Under Iwate
Prefecture´s Eco Shop program, retail
outlets in Iwate Prefecture that proactively
endeavor to reduce waste and promote
recycling can be certified as Eco Shops by
Iwate Prefecture, local governments in theprefecture and Environment Partnership
Iwate, a local environmental NPO.
All other LAWSON stores in Iwate
Prefecture
also plan toearn Eco
Shop
certification.

Prefecture are aiming to achieve at least
30% usage of eco-bags and otherreusable bags by displaying posters andhaving crews personally encouragecustomers to use eco-bags and reduce
plastic shopping bag use.
●Tokushima Prefecture
Operation of an Antenna Shop in
Tokyo´s Toranomon District
In March 2009, LAWSON opened a
Tokushima Antenna Shop within its
Toranomon Tomoe-cho Store. Assigned
the role of developing sales channels for
Tokushima Prefecture products anddisseminating Tokushima information, theTokushima Antenna Shop is the firstprefectural antenna shop to be opened
within a convenience store, and offers
about 60
Tokushima
food andother
products.

●Saitama Prefecture
Providing Tourist Information with
Boxed Lunches
LAWSON stores in Saitama Prefecture soldboxed lunches bundled with Saitama
Prefecture publicity magazines packed with
tourist information and a free gift — a
Kobaton mascot wooden tag handmade
from local timber by the students of
Saitama Sakura High School. Altogether
32,500 such boxed lunches were sold at
the 325 LAWSON stores in Saitama
Prefecture.

●Ishikawa Prefecture
Promoting Eco-Bags under a Plastic
Bag Reduction Agreement
LAWSON concluded a Plastic Bag
Reduction Agreement as well as aComprehensive Agreement with Ishikawa
Prefecture, and is implementing measures
to reduce plastic shopping bag use bypromoting reusable eco-bags.
LAWSON stores in Ishikawa

Comment from Iwate Prefecture CoordinatorShowing Industry Leadershipin Promoting Eco Mindsets

Ms. Kumiko Hareyama
Engineer, Resources and Recycling Division,
Department of Environment and Residential
Life, Iwate Prefecture

Convenience storesare a very familiar
presence in theneighborhood, andso LAWSON´s participation in our Eco
Shop certification
system means a lot. We´d like to see
LAWSON show leadership in the industry
in promoting environmental initiatives
such as foodstuff recycling.
Where plastic shopping bags areconcerned, we hope to raise awarenessamong both retailers and shoppers about
the need to reduce dependence on them.
Some things aren´t easy, but I´d likegovernment and industry to get together
to think about what can be done.

Together with the Local Community
Neighborhood Cleanup Efforts
LAWSON helps to keep neighborhoods
tidy by participating in cleanup activities.

LAWSON participated in Fukuoka Love
Earth Cleanup held in Ohori Park inFukuoka Prefecture in June 2008. This
was LAWSON´s 15th year of participationin the event, which is organized by the
non-profit organization Clean Fukuoka
Association. Of the 2,127 participants, 76
were LAWSON employees.

80 LAWSON employees participated in
the Kyoto Citizen Mass Cleanup Action
event held in November 2008. A total of
3,500 Kyoto residents and people fromcompanies participated in this mass effort
to tidy shopping districts and tourist spots.
LAWSON also set up a booth in thesquare in front of Kyoto City Hall to exhibit
panels introducing environmental andsocial contribution initiatives such as its

Green Fund, Bring Your Own programand CO2 Offset program.
Enriching the Community

Fukuoka Love Earth Cleanup

Kyoto Citizen Mass Cleanup Action

Arakawa Clean Aid
In November 2008, LAWSON held
Arakawa Clean Aid 2008 with theparticipation of 102 employees. This was
our 14th such cleanup of Arakawa
riversides in Tokyo since we started thisinitiative in 1994. We gathered 48 bags oflitter and larger junk.

Mixing with Local Communities through Sports
LAWSON actively supports a wide rangeof sports activities to foster close relations
with local communities.
All Japan Elementary School VolleyballChampionship
LAWSON has since 2007 supported the
All Japan Elementary School VolleyballChampionship, a competition launched topromote physical fitness and motivation
among elementary school students. The
28th Championship, held in August 2008,
was fought out fiercely between 98 boys´and girls´ teams (1,332 players and benchstaff) representing their respective
prefectures.

LAWSON Cup Mothers´ Volleyball
Tournament

Supporting J.League´s ALBIREXNIIGATA — LAWSON Thanks Day

LAWSON supports Mothers´ Volleyball, ahomegrown Japanese lifelong sport. The
4th LAWSON Cup All Japan Mothers´Volleyball Tournament Finals were held
over the space of four days from March
26, 2009, at the Green Arena Kobe in
Hyogo Prefecture. After preliminary
regional rounds that attracted 3,040
teams and approximately 50,000 participants, 48 winning teams representing
their respective prefectures went on tobattle each other in the Finals.

The Japan Professional Football League(J.League) has a strong regional element,
and LAWSON has supported ALBIREXNIIGATA as an official sponsor since 2003,
with one game each year being held under
the auspices of LAWSON Thanks Day.
In fiscal 2008, November 23 was thatday, with 15 minutes before the start of
the game devoted as LAWSON Thanks
Day Time to a “Heart and Soul Support
Declaration” that brought everyone in thestadium together in spirit.

©ALBIREX NIIGATA

Corporate Citizenship Report 200932

Together with the Local Community

Contributing to Peace of Mind in the Community
As the “`Hot´ Station in the
Neighborhood,” LAWSON works withlocal authorities and other organizations
on disaster preparedness and other areas
to contribute to safety in the local
community. We aim to exploit our uniquecapabilities as a nationwide network of
about 8,600 stores encompassing all 47
of Japan´s prefectures to implement
disaster response measures promptly andefficiently, and contribute to the early
restoration of normality in areas struck bynatural disasters.

Disaster Assistance Agreements
LAWSON stores strive to become major
support lifelines in the event of natural
disasters by remaining open and providing
uninterrupted operations (see P48). As of
May 31, 2009, we had concluded
Provision Procurement Agreements with
55 local authorities and other organizations to supply as many essential
provisions as possible to affected areas
when a large-scale disaster strikes.
As of May 31, 2009, we had also
concluded Displaced People AssistanceAgreements with 32 local authorities
promising to do our utmost to lend toilet
facilities and provide tap water, information updates and so forth to disastervictims forced to travel on foot due to thecollapse of roads and means of transport
in disaster-stricken areas.

● Provision Procurement Agreements Concluded
Since Fiscal 2008 (As of May 31, 2009)
Agreement
Date

Agreement
PartnerMar. 24, 2008 Fukui Pref.

Agreement
Date

Agreement
Partner

Sep. 9, 2008

Ibaraki Pref.

Mar. 27, 2008 Fukushima Pref. Nov. 11, 2008 Miyazaki Pref.
Apr. 23, 2008 Kagawa Pref.

Dec. 1, 2008 Kanagawa Pref.

May 29, 2008 Kagoshima Pref. Jan. 15, 2009 Shiga Pref.
Jun. 23, 2008 Iwate Pref.

Mar. 26, 2009 Aichi Pref.

Jun. 24, 2008 Yamanashi Pref. May 21, 2009 Yokohama City

● Displaced People Assistance Agreements
Concluded Since Fiscal 2008
(As of May 31, 2009)
Agreement
Date

Agreement
Partner

Agreement
Date

Agreement
PartnerJun. 24, 2008 Kagawa Pref.

Mar. 23, 2009 Shimane Pref.

Jul. 24, 2008 Nagano Pref.

Mar. 30, 2009 Tottori Pref.

Dec. 17, 2008 Hokkaido

Disaster Relief Fund-Raising
LAWSON provides help to areas stricken
by large-scale disasters by replacing its
LAWSON Green Fund collection boxes
with a special disaster fund appeal for alimited period. In fiscal 2008, we
contributed ¥3,129,431 including
headquarter donations to the Iwate
Prefecture branch of the Japanese Red
Cross Society and Miyagi Prefecture toassist victims of the Iwate-Miyagi Nairiku
Earthquake. We also provided disasterfunding as outlined below to deliver the
donations of people from across thecountry to the victims of disasters. We
sincerely thank our customers for theirgenerous donations.
● Disaster Relief Funds Collected in Fiscal 2008
Fund

Sichuan (China)
Iwate-Miyagi Nairiku
Earthquake Relief Fund Earthquake Relief FundArea

All stores in Japan
(8,518 stores)

All stores in Tohoku region(6 prefectures) and Niigata
Prefecture (except Joetsu
area) (860 stores)

PeriodMay 14 to 31, 2008

June 15 to 30, 2008

Conclusion of Agreement with Kagoshima Prefecture in May
2008

Total
donations ¥42,247,555

33

Enriching the Community¥3,129,431

Deterring Underage Drinking andSmoking
To prevent underage consumption of
alcohol and tobacco, we demand proof ofage from all customers except for those
who appear to be clearly over the legal
threshold. We also display posters andmakes in-store announcements toheighten customers´ awareness of thisissue. We will make further efforts toensure 100 percent compliance with theban on sales of alcohol and tobacco tounderage customers.

Encouraging Good Smoking
Manners
LAWSON has established new standards forthe placement of storefront ashtrays.
Where bylaws prohibit smoking on sidewalks, we have as a rule removed ashtrays,
and in locations not covered by suchbylaws, we have repositioned ashtrays awayfrom store entrances. We also take various
measures, including the display of smoking
etiquette stickers on ashtrays in cooperation
with Japan Tobacco Inc., to raise awarenessof the importance of observing goodsmoking manners.

TOPICSFirst Private Enterprise to
Receive a Letter of Appreciationfrom Minister of Health, Labourand Welfare for DistinguishedService in the Promotion ofOrgan Transplant Measures
In October 2008, LAWSON became the firstprivate enterprise to receive a letter ofappreciation for distinguished service in the
promotion of organ transplant measures. To
help promote organ transplants, since
January 1999 we have displayed organ
donor cards at our checkout counters forcustomers to help
themselves to,
and we will continue our efforts
to raise awarenessregarding organtransplants.

Contributing to Public Safety“Safety Station” Initiative

14 prefectures were commended for suchactivities. We willcontinue to actively
pursue these efforts
to contribute to public
safety as friendly
neighborhood convenience stores.
Enriching the Community

In recent years, convenience stores are
increasingly expected to contribute tocrime prevention, disaster response, public
safety and youth education. LAWSON
participates in the Japan Franchise
Association´s Safety Station initiative,

positioning stores as neighborhood safe
havens and helping to keep young people
out of trouble.
The Safety Station movement
provides convenience stores with anindustry-wide platform for fulfillment ofsocial responsibility through helping toprevent crime and serving as refuges for
women and children who feel threatened.
In fiscal 2008, 46 LAWSON stores in● Commendations Received in Fiscal 2008 for Safety Station Activities
Store
Prefecture
Reason for Commendation
Gave protection to a woman and reported to police.
Toyama Pref. Kurobe Ikuji
Gave protection to an elementary school student.
Toyama Kusajima
Cooperated in local community crime prevention activities.
Toyama Shimohori
Prevented a bank transfer scam.
Osaka Pref. Kishibe Minami
Gave protection to a high school girl who felt threatened.
JR Sakai-shi Ekimae
Cooperated in local community crime prevention activities.
Suita Enoki-cho
Gave protection to a high school girl who felt threatened.
Sekime Takadono Ekimae
Cooperated in local community crime prevention activities.
Tsuruyamadai
Gave protection to a woman involved in a violence and reported to police.
Minami Kasumicho Ekimae
Provided information that led to an arrest of a criminal.
Hyogo Pref. Amagasaki Tsukaguchi-cho
3-chomeFirst aid and call to emergency services for a customer who suddenly fell ill.
Tochigi Pref. Utsunomiya Fudomae
Utsunomiya Yanagidacho Kindness to an old man.
Yamaguchi Pref. Ogori Inter
Nikko Tokorono
Activities to protect children.
Kudamatsu Eki Minami
Prevented a bank transfer scam.
Kudamatsu Nozomicho
Tokyo Pref. Kitakojiya 1-chome
Kitashinjuku 1-chome
Prevented a bank transfer scam.
1-chomeShitaya 3-chome
Gave protection to a woman and reported to police.
Shinnanyo Doi 1-chome
Shinjuku Sumiyoshi-cho Prevented a bank transfer scam.
Mine Omine
Setagaya 2-chome
Prevented a bank transfer scam.
Yamaguchi Yoshiki
Toneri 1-chome
Gave protection to a woman and reported to police.
Nagasaki Pref. Mizunoura
Hachioji Sennin-cho
Continued provision of workplace experiences to middle school students. Miyazaki Pref. Shintomi Kamitonda
Hirai Ekimae
Prevented a bank transfer scam.
Kagoshima Pref. Kagoshima Chuo Ekimae
FutabaKajiki Kida
Prevented a bank transfer scam.
Mizuho Shiyakushomae Prevented a bank transfer scam.
Kanoya Fudamoto
Gifu Pref.
Kuwana Shinnishikata
2-chomeProtection of elderly people through cooperation with care facilities.
Mie Pref.
Tsu Katada
Continued provision of societal experiences to elementary school students.
Yokkaichi HazuyamaFirst aid and call to emergency services for an injured woman.

Store
Prefecture
Hokkaido
Hakodate Taya
Hakodate Hitomi-cho
Yakumo-cho Tateiwa
Aomori Pref. Mutsu Chuo
Iwate Pref. Ofunato Nakaizawa
Kamaishi Kokomae
Mizusawa Sakurakawa
Morioka Inari-cho
Morioka Ekimae

Reason for Commendation
Cooperated in local community crime prevention activities.
Continued provision of societal experiences to middle school students.
Activities to prevent juvenile delinquency.
Prompt reporting of a nearby case of arson.
Cooperated in local community crime prevention activities.
Activities to prevent juvenile delinquency.
Activities to protect children.
Cooperated in local community crime prevention activities.
Prompt notification to police that led to arrest on robbery charges.
First aid and call to emergency services for an injured customer.
Activities to protect children.
First aid and call to emergency services for a customer who suddenly fell ill.
Activities to prevent juvenile delinquency.
Activities to prevent juvenile delinquency.
Gave protection to missing elderly person and notified police.
First aid and call to emergency services for a customer who suddenly fell ill.
Prevented a bank transfer scam.
Prevented a bank transfer scam.
Activities to prevent juvenile delinquency.
Activities to prevent juvenile delinquency.
Activities to protect children.

“Every Store Can Contribute” Initiative

Community Engagement Activities Tailored to Neighborhood Needs
We launched our Every Store Can Contributeinitiative in 1997. Each of our stores conducts
community engagement activities tailored toneighborhood needs.
Gamagori Eki Nan Store in Aichi Prefecture
has equipped itself with an automated external
defibrillator (AED) near its entrance. Afternoticing how an increasing number of schools
and public facilities have AEDs, the store decid- The AED fitted by
Gamagori Eki Nan Storeed that it too should take such precautions as
a place frequented by various customers. “AEDs are actually more
useful in convenience stores, which are open around the clock, thanin public facilities that close at night,” says owner Hiroshi Ishida,
who seeks to offer a sense of safety as well as products at his store.

Wakayama Hironishi Store in Wakayama Prefecture helps
children from a local special needs school to shop. The children aretaught how to shop at school as part of their education in social
skills, and the store opens its doors to the children as a real world
environment where they can practice their shopping skills.
Other examples of community
engagement activities include a ricecake pounding event held in thestorefront car park by Wadayama
Kuwabara Store in Hyogo
Prefecture, and a store that joined
forces with local high school
students to plant flowers alongside Wadayama Kuwabara Store Rice Cake
Pounding Eventa nearby national highway.

Corporate Citizenship Report 200934

Aiming to Become a Vital Part of Neighborhood LifeLAWSON will become a vital part of everyday life, the “´Hot´ Station in the Neighborhood” whose presence is a source of comfort to local residents.

Delivering Convenience and Comfort Every Day
Leveraging its nationwide network of
stores, LAWSON seeks to offer
convenience in the form of essential
services such as payment of public utility
charges. We are also in the process ofmaking our stores barrier-free andaccessible to all.

Opening Post Offices in Stores
Under its comprehensive alliance withJapan Post Holdings Co., Ltd., LAWSON isleveraging its nationwide network of
stores to improve the convenience of
postal services, an important componentof social infrastructure, by equipping all of
its stores with mailboxes, opening storesin post offices, and other innovations.
Building on this experience, in September
2008 our Sakaki Murakami Store in
Nagano Prefecture opened the
Kamigomyo Sub Post Office of Ueda Post
Office to provide post office services within the store. The original Kamigomyo Post
Office was closed down in September
2007. LAWSON will make efforts toimprove the convenience in communities
in recent years.

directly at checkout counters, making
them much more convenient.
E-Payment Terminals
To enable a wider variety of payment
methods and shorten checkout payment
time, we have introduced e-payment
services to almost all of our storesnationwide. In addition to iDTM1,QUICPayTM2, Edy3 and Visa Touch(Smartplus)4, in April 2009 we enabledeven more customers to use e-payment
by introducing JR East Suica5 e-payment
to about 3,300 stores, more than any
other convenience store chain.
1 iD is a trademark of NTT DOCOMO, INC.
2 QUICPay is a system endorsed by Mobile Payment Promotion
Association (MOPPA).
3 Edy is a prepaid e-money service operated by bitWallet, INC.
4 Visa Touch and Smartplus are non-contact e-payment services
offered respectively by Visa International Inc. and Mitsubishi
UFJ NICOS Co., Ltd.
5 Suica is a registered trademark of East Japan Railway
Company.

Loppi Multimedia Terminals
LAWSON stores are equipped with Loppi
multimedia terminals that can be used fora growing range of services, including thepurchase of concert and other event tickets
handled by LAWSON ENTERMEDIA INC.
(formerly LAWSON TICKET, INC.), “toto”
sports promotion lottery tickets andvarious transport and leisure facility tickets,
advanced ordering of DVDs, and applications for certification tests.

Store Accessibility
We are striving to make our storescompletely barrier-free and accessible toall people including the elderly, pregnant
women and people with disabilities. All
new stores have wheelchair-accessible
entrances, and stores with car parks havea dedicated space for wheelchair users.
Store toilets are Western-style and areequipped with handrails, and access has
been improved with same-level floors.
We have also introduced shopping
carts and large-print price tags at
designated LAWSON stores in an effort tomake our stores user-friendly for elderly
people, and we welcome guide dogs,
hearing dogs and other assistance dogs at
our stores.

Providing ATM Services

Offering a Wide Range ofServices
Using Points at Checkout Counters
Up until recently, the only way that
LAWSON point card members could use
points for shopping was by exchanging
them for shopping coupons at a Loppi
multimedia terminal, but since December
2008, we have enabled points to be used

35

Enriching the Community

LAWSON provides ATM services for cash
withdrawals using the cash cards ofJapan’s city banks and some regionalbanks credit unions, Japan Post Bank
cards, as well as credit card company cash
loans. As of May 31, 2009, LAWSON
operated 6,177 ATMs in 38 prefecturesand had partnerships with all of Japan’scity banks and 32 regional and Internetonly banks.
“Working Dogs
Welcome” Sticker
Displayed on Storefront
Windows

For the Next Generation
At LAWSON, we feel that creating an ideal environment for children to grow up in will help society to flourish and breathe
new life into local communities. We work as one with those communities to implement various activities to support children
and the families raising them.

Supporting Social Education

Local Elementary School
Company TourOn July 29, 2008, we used our training
facility LAWSON Higashi Fuji Guesthousein Shizuoka Prefecture to host a company
tour by a party of children from the nearby
Oyama-cho Meirin Elementary School.
We cooperate in the Hometown Study
Program organized by the school every
year to give students an opportunity tolearn about work and how it relates totheir lives and Oyama-cho. The 32 children
who participated learned how to operatecash registers and communicate withcustomers.

LAWSON store, Kyoto Student City’s little
town boasts a ward office, bank, newspaper publisher, traditional pickle purveyor and other work experience facilities
created through the cooperation of 12
companies and other organizations. Afterbeing taught about society and employment-related mechanisms, children
engage in hands-on activities.
At the LAWSON store, children learn
how to communicate courteously withcustomers and operate cash registers.
Though shy at first, the children soon
learn to greet customers cheerfully, andappear to gain a great deal from theirexperiences in the store.

Cooperating in Children’s Group
SeminarFifth Grader Work Experience inKyoto Student City
In January 2007, LAWSON opened a store(hands-on corner) in Kyoto Student City
designed to give children a taste of whatwork in a convenience store entails.
Established by the Kyoto City Board of
Education and the Junior Achievement
Japan, the Japanese branch of the world’s
largest economic education group, theKyoto Student City work-study facility isused by the city’s fifth-graders as part oftheir school curriculum. As well as a

LAWSON cooperated in the staging of a
“Kids’ Seminar: Learning from Real Pros”
by the Kitashukugawa Children’s Groupon November 25, 2008 at the Koshikiiwa
Hall in the city of Nishinomiya in Hyogo
Prefecture. The event was aimed at giving
the children a chance to gain experiencesof a kind that school classrooms cannot
provide, a goal that we endorsed. About
80 children, parents and others participated in the seminar, with the childrenchanging into LAWSON uniforms andlearning about communication withcustomers, shelf stacking, and LAWSONGreen Fund and other initiatives, and thenactually trying their own hand at stacking
shelves.

Enriching the Community

We open our doors to elementary schoolsocial experience and work experience
programs designed to help children learn
about society through work. We also
work with third-party organizations tooffer opportunities for children to learn
about how society works and theirrelationship with society.

HAPPY LAWSON Stores for
Families with Children
LAWSON is implementing a Happy
Childrearing Project as a way to support
families with small children. The idea
arose from the theme of the prizewinningentry in a contest held in 2005 tocommemorate our 30th anniversary thatsolicited ideas on The Convenience Storeof the Future, with the winning entry
entitled convenience stores that support
childrearing.
We incorporated many of the ideas
raised by families with children into the
HAPPY LAWSON Yamashita Koen store
that we opened in July 2007. For example, we made the aisles wide enough toaccommodate a baby carriage and addeda play area for kids and a space for caregivers to relax and chat. We also bolstered
our lineup with disposable diapers, baby
food, picture books, toys, as well as
products to help make childrearing a little
easier for busy mothers.

Corporate Citizenship Report 200936

Diverse Citizenship Activities
Both through its stores and as an enterprise, LAWSON owes its existence to the enduring support of many different people. In
recognition of this fact, we seek to contribute to society in many different ways, including assistance to developing countries
and infrastructural support for the social contribution activities of customers.

Supporting Education Overseas
There are many countries in which
educational facilities for children are
inadequate. LAWSON supports the workof NGOs that build schools in suchcountries and provides students with
opportunities for higher education.

Building the Elementary Schoolin Laos with Revenue from
Accessories
Impressed by the activities of nail artist
Junko Kusano and MEKOGA, the NPO
she founded to build schools for needy
children in developing countries, LAWSON
helped the NPO to build such a school in
Nong Sawan, Sayaboury Province, Lao

People’s Democratic Republic.
The construction of Nong Sawan
Elementary School, which was opened on
December 3, 2008, was funded by part of
the revenue from original Junko Kusanodesigned accessories and other items soldin LAWSON stores throughout Japan. The
product packages carried an explanationof the aim of the project, and the school
was in effect built from the generosity ofcustomers who bought the accessories.
Fruit trees were planted in the school
forecourt to mark the opening of theschool. Since the completion of thisproject, we are working with Ms. Kusano
to further expand MEKOGA’s educational
program for the school. There are plans toincorporate an English language education program to nurture Laotians capableof communicating with the world, andpainting classes to nurture expressive
abilities.

Scholarships for VietnameseStudents
LAWSON has established a scholarshipprogram for Vietnamese students wishing
to study in Japan. The first two students
came to Japan in March 2009, andstarted to attend Japanese colleges andlanguage schools in April.
This program emerged from our
procurement of ingredients grown in
Vietnam for our products. Vietnamesestudents are very diligent, and since many
want to study in Japan, we establishedthe program to provide the opportunity tosome of them. We hope that this initiative
will contribute to Vietnam’s development
and the building of even friendlier ties
between Vietnam and Japan.

Comment from the Project Originator

Building a School in Laos: the Crystallization of a Vision

Ms. Junko Kusano
Nail Artist and Director of MEKOGA Association to Build Schools for Needy Children

From when I was still young, I’ve always wanted to do something for society. I used to do volunteer work in sign language and so on while I was raising my children, but I felt I wanted to do something more fundamental.
I think it’s probably because they don’t really teach children in Japan why poor countries are poor. Nothing ismore important to a country’s prosperity than its education system, and so I wanted to do something to help in that
direction. I had already spent years thinking about what exactly I could do when, quite by chance, I met a LAWSON
product developer, and the vision suddenly crystallized. It was like finally seeing the light at the end of the tunnel.
Getting the school built required the cooperation of all sorts of people who gave their support despite the factthat we had never met — LAWSON customers and stores, people in the companies who helped with the products, and so on. And it was thegenerosity of all those people that built that elementary school in Laos. Looking back, it seems almost magical. I can still barely believe it.

37

Enriching the Community

Building Social Contribution Infrastructure
LAWSON supports the social contribution
activities of customers by providing
services and products that enable
customers to contribute to society
through shopping.

Bridge Asia Japan (BAJ)

This NPO provides learning opportunities
to children based on local ecosystemconservation activities that help themlearn about the natural environment andthe importance of protecting it.
Enriching the Community

BAJ provides vocational training for
women and refugee in India and
Bangladesh who face difficulties, andhelps them translate acquired skills into
income.

Ecology Café

LAWSON Point Card Environment
and Social Contribution Course
To help customers wanting to contributeto society through everyday shopping,
LAWSON has since 2003 offered an
Environment and Social Contribution
course in its LAWSON Point Card point
program that enables point card holders
to donate units of 10 points (=¥10) to
organizations dedicated to social
contribution activities. In fiscal 2008, a
total of ¥3,857,450 was donated throughthis course to the following sixorganizations:

National Land Afforestation Promotion
Organization (LAWSON Green Fund)Japan Guide Dog Association
This association trains guide dogs for thevisually impaired so as to enable them tomove about safely in society.

Caring for Young Refugees (CYR)

Education Sponsorship in Asia (ESA)CYR supports the training of teachers,
provision of lunches and creation of safe
and stable environments for the educationof needy children in Cambodia.

The ESA supports the provision of a basic
level of education for children in
Bangladesh and India based on theconcept that education helps preserve
human dignity and makes a major
contribution to overcoming poverty anddiscrimination.

This organization supports forest
management activities in Japan andoverseas as well as school greenification
initiatives. (Please refer to P19 for details)

Donating Products Through the“Miffy” Gift Campaign
As part of its childrearing support project,
LAWSON runs gift campaigns offering
originally designed small dishes, mugs andother goods adorned with the popular
Miffy character created by artist Dick
Bruna of the Netherlands. LAWSON setsaside ¥1 for each promotional item
offered through these campaigns, anddonates products equivalent to the total
to the Japan National Council of Social
Welfare and the National Council of
Women’s Shelter. In fiscal 2008, we
donated products equivalent to¥4,659,164.

© Masanori Kobayashi
Letter of Appreciation from Organization Receiving Donation

Corporate Citizenship Report 200938

Motivating
Peopleture 4Supecial Fea

Enhancing
gh
u
o
r
h
t
n
io
t
a
ic
n
u
m
Com
our Genki Project1

2

3
Bands participating in
LAWSON Crew
Band Contest:

No. of entries in Crew
Boxed Lunch Contest:

185
272

Projects to Support Motivated Crews● LAWSON Crew Band Contest

LAWSON implements a range ofinitiatives designed to motivate bothstore owners and crews, and help
them to derive satisfaction from theirwork. We do our utmost to create
bright and cheerful workplaces
through employee questionnaires,
events and other means to enhancecommunication.

Since April 2008, we have been carrying out a LAWSONGenki Plan aimed at creating bright and cheerful stores thatgive our customers a lift. As one component of this plan, we
held a LAWSON Crew Band Contest to cheer on bands towhich store crew members belong. To participate, bands
need to have at least one store crew member, and they mustnot be under a professional contract. Our Crew Band
Screening Committee screens all entries in a preliminary
round and selects 12 bands who go on to the final round tobe judged by an open vote and Special Jury.
The first top band chosen as “Crew Band King”
through this process was a 3-member male band called
PINCH COX. Their song was featured during February 2009
on LAWSON CS Hot Station, our in-store satellite radio
station. It is also available nationwide through chaku-uta
ringtone distribution sites.
We will continue to back music-loving crew members
who nurture hopes and dreams as they go about theirduties.

PINCH COX Performing at LAWSON Seminar

39

Motivating People

● Store Crew Boxed Lunch Contest
LAWSON wants to give customers throughout Japan a lift byproviding them with wholesome and delicious food with aregional flavor, and so we launched a Crew Boxed Lunch
Contest to get our store owners, managers and crews toapply their detailed local knowledge to the creation of boxedlunches that make the most of neighborhood specialties.
Entries must use local produce or recipes, and include
an original topping or seasoning. Entries were accepted fromMarch 1, 2009, and by the end of April, we had alreadyreceived 272 totally unique recipes. In October 2009, we will
select one entry from those submitted by crews working ineach of the areas covered by our seven branches as a Crew
Boxed Lunch King to be sold in the respective area. Then, in
February 2010, we will select the No.1 entry based on sales
in each area and the decision of a Special Jury. The winningentry will be sold nationwide.

Promoting Communication with
Owners and Crews
Under our Get a Lift with LAWSON! Project, in autumn 2008
we asked stores to let us know what they were doing for theenvironment. The aim of the survey was to encourage an eco
mindset among our people. Responses showed the stores tobe carrying out all sorts of measures such as asking customers if they needed plastic bags or disposable chopsticks
instead of just assuming they did, and switching off backroom lights when not in use. We introduced these various
initiatives in Pal, our in-house information magazine for ourstores.
We have also conducted a questionnaire survey ofowners, crews and our employees on the new uniform
design planned for autumn 2009. The questionnaire
presented four designs and asked the subjects to vote for
their favorite. LAWSON’s blue stripe image seems to havebecome firmly established, but while the current design
proved to be very popular, in the end a
new design that retained thestripes won out. (See P14 fordetails on the new uniform.)

Eco Questionnaire

Written applications for the contest

From the Frontline: Employee

Get a Lift with LAWSON! Project
Project Leader

Eri Kojima (right)
Akira Kojima (left)

Motivating Others through Communication

Our involvement in the Get a Lift with LAWSON! Project has taught us how
important communicating with others is to wellbeing and a positive attitude.
We’ve held product idea contests, sports tournaments, and various other events
to give owners, crews and employees a lift and get them in the spirit, and they’ve
all helped to enhance communication.
When the project was first launched, we really were fumbling around in thedark, but as we pressed ahead, we met lots of really cheerful and upbeat people,
real live wires who infected us with their enthusiasm. And meeting
all these people made us aware of the need for more communication between
employees, and between store owners and headquarters.
Enthusiasm comes in all sorts of forms. We’ll keep on doing whatever we
can to motivate people in a way that benefits everyone — our stores,thecompany, neighborhoods, Japan, the whole world, our planet Earth! We wanteveryone to get a lift with LAWSON!

Corporate Citizenship Report 200940

Together with Franchise Owners and Store Crews
We support the management of stores by franchise owners in various ways, and put a lot of weight on exchanging views withfranchise owners, store managers and store crews in our ongoing efforts to improve our products and services.

Supporting Owners and Crews
Expanding Training and Support
Programs
LAWSON has established training andsupport programs to help promotesmooth store management and customer
satisfaction.
We hold a Basic Management Course(BMC) to provide prospective owners withbasic knowledge in store management
prior to opening their stores. After
opening, we provide further training ofvarious kinds at branch office training
centers.
Other support includes a Franchise
Owner Support program for sending
headquarters employees to sub for
franchise owners when they take aholiday, and a Store Support Desk thatfields questions from stores about store
operation 24 hours a day. These systems
enable franchise owners and store crews
to operate stores confident in the knowledge that they can depend on headquarters backup at any time.
We also provide regular information
on store management in the form of Pal,
our monthly store management
newsletter, and Making Your Store Buzz,a monthly publication packed withinformation on sales and operation
strategies.

We have established a website
dedicated to recruiting crews. Prospective
crew members can input desired locationand other information to instantly findstores meeting their conditions, and stores
too can post photos as well as job
information to better attract crew
members. The website is rated highly byusers as a means of linking prospective
crew members with stores looking forstaff.
We also have a Crew Leader programfor ambitious crew members, a Crew
Rank-Up program to pay recognition tohard work, and a Store Setup Support
program for crew members who areeager to become franchise owners
themselves. We also provide crews withpreferential advanced ticket purchase forconcerts, plays, sports and other events.

Supporting Crew Recruitment
and Loyalty
To respond to the rapidly changing
employment market, LAWSON provides arange of support for recruiting crews andfostering their loyalty.

41

Motivating People

We want our franchise owners to be
happy in their work, and have created aFranchise Owner Welfare Association to
expand and improve welfare for franchiseowner and their families, store managers
and crew members.
Aimed at providing quality time,
health and peace of mind, the Welfare
Association offers a wide variety of
benefits, including a system for helping tocover obligatory congratulatory andcondolence payments, sports clubmembership discounts, travel subsidies,distance learning, health management,
car rental at special Association rates, andloan interest subsidies.

CEO Direct LineFranchise owners, store managers andcrew members can use our CEO Direct
Line to express their opinions and ideas
directly to the CEO, who personallyresponds to each message. In fiscal 2008,
CEO Direct Line received and replied to509 Direct Line messages.
● CEO Direct Line Messages by Subject(FY2008)

Website on recruiting crews

Mystery Shopper Program

Training seminar at a LAWSON Training CenterFranchise Owner Welfare
Association

To improve store operations, we
implement a Mystery Shopper programthat uses third party examiners toanonymously inspect stores from acustomer’s perspective. Examiners
objectively check product assortment,
customer courtesy and cleanliness.
Feedback is provided via supervisors tofranchise owners, who seek to remedy
any issues accordingly. Improvements
have been noticeable since the start of the
program, particularly regarding courtesy
and cleanliness.

Subject

Messages

Products/ logistics

116

Services

63

Sales promotions

23

Systems

16

Facilities/ Equipment

39

Franchise agreements

41

Store guidance

99

Other

112

Total

509

Communicating with Franchise Owners
and Crews
Sharing Information andCorporate Philosophy

1. The corporate headquarters provides business know-how,trademarks and other properties to participating stores, which
in return pay a royalty for the right to use these businesssystems. Both the corporate headquarters and participating
stores are independent businesses engaged in a contractual
relationship as equal partners.

Management and Franchise
Owner Get-Togethers
We hold get-togethers in each region for
LAWSON management and franchiseowners to talk candidly about store

Identifying Store Operation Issues
We carry out questionnaire-based surveys
of franchise owners to identify their concerns regarding store operation as well as
to check on their awareness of headquarters policies. In fiscal 2008, 3,546 stores
responded to this survey.
Results showed improvements or nochange in all areas except “increasing
expenses” and “successor.” This probably
reflects both the results of improvementsthat we have implemented to resolvecrew shortages and so forth, and changes
in society as a whole.
Motivating People

Franchise owners who participate in the
LAWSON Franchise System1 are responsible for all aspects of operations, including sales, procurement and managementof costs and store crews. LAWSON
supports franchise owners in various
ways, allowing them to concentrate on
their business.
Serving as a bridge between franchiseowners and the headquarters, supervisors
support store operations from a customer
perspective, providing information on thelatest product trends and changes in thebusiness environment, analyzing sales andcustomer data, conducting market researchon areas where franchises operate andoffering suggestions regarding revenues
and income.
We also hold a “LAWSON Seminar”

semiannually at 8 locations nationwide,
where we explain our corporate philosophy, management policy and producttrends, as well as offering business knowhow and analyses of information on a perstore basis. We hope that sharing suchinformation with our franchise owners ona sustained basis will help ensure that ourstores are always valued by the local
communities in which they operate.

management. In fiscal 2008, 20 suchget-togethers were held to discuss topics
such as products, sales promotions, andfood recycling.

■ Concerns Regarding Store Operation(multiple responses allowed)
70

Sales (profits)

64
64
63

Crew member
shortages

47
49
49
48
43
42
45
41

Increasing
expensesInsufficientpersonal time
Healthconcerns
Increasing numbersof competing stores

15
15
14
15

Cash flow
Successor

0

FY2007
FY200810 20 30 40 50 60 70 80

From the Frontline: Franchise Owner

Creating Stores that Customers Care About

Mr. Masaki & Ms. Kumiko Konno
Owners of Hokkaido Jingumae, Sapporo Miyanomori 1-Jo, Sapporo Maeda 9-Jo, Hokkaido Kogyo Daigaku Stores

The most important aspect of work is your attitude to it. Are your crew members thinking about
customers? Or are they just trying to please their boss? This can make a huge difference to your store. Aslong as they understand the store owner’s ideas, crew members should look to the customers’ needs. Ifthey do so, they’ll each come to think for themselves, and then you can feel safe about leaving a store in
their charge.
We became owners 11 years ago. Right from the start, we thought we’d like to run a number of stores, and we now have 4. Our first
store, Hokkaido Jingumae, came to be much appreciated by both the local people and the shrine. At one of our stores, an old lady living nearby
even cuts the grass around the store’s car park. All of our store managers are well-liked by our customers. If customers find your store to their
liking, then you should be able to make a success of it.

Corporate Citizenship Report 200942

Nurturing Enthusiasm
Stores flourish when their employees work with enthusiasm to drive their growth. Through the enhancement of educational
programs, workplace environment and internal communications, LAWSON aims to nurture a corporate culture in which all
employees can realize their full potential and feel free to voice candid opinions.

Aiming to be an Easy Place to Work
Improving InternalCommunication

Improving Support for
Employees Raising Children

enabling participants to see other sides ofeach other outside of the workplace andto mix with employees from othersections.

LAWSON has long provided child daycare
services for employees working on public
holidays and has also conducted experiments in teleworking from home, but in
April 2009 we revised and enriched suchprograms to provide greater support for
employees raising small children. We willcontinue to raise awareness throughout
the company and implement improvements for facilitating childrearing.

Head Office Section Visits
To enhance mutual understanding
between front line employees andheadquarters, in February 2009 we
provided employees with opportunities toexperience what goes on in theheadquarters as part of our Get a Lift with
LAWSON! Project. A total of 36 young
employees from our branches and storesparticipated in the program, selecting
either a one-day course that enabled
them to experience a single section in
depth, or a tour course that gave them abroad look at 3 sections. Employees ofdifferent sections have few opportunities
to mix, and by enabling them toexperience other sections, this program
did much to deepen the mutual
understanding of each other.
Making Good Use of the Company
Intranet
LAWSON uses its company intranet forinternal communications, announcements
and exchange of opinions. In spring 2009,
we launched a portal site that can beaccessed by all employees to further
enhance internal communication. Hostinga wide range of communities from forums
for discussing work to hobby groups andgroups of employees hired in the same
year, the portal serves to enhancecommunication across sections of ourorganization.
We have also launched a blogs that
introduces Get a Lift with LAWSON!
Project activities and initiatives forcustomers.

Reduced Working Hours for Childrearing
We have extended eligibility for this system from
employees with pre-school children to those withchildren up to 3rd grade.
Shorter Working Weeks
Employees with a pre-3rd grade child are allowed towork 3- or 4-day weeks if they wish to.
Holidays
Employees with a pre-3rd grade child are allowed totake public holidays off if they wish to.
Teleworking
Employees of over one year with a pre-3rd grade childare allowed to telework from home for up to 2 days aweek.
Product Manager Work Location Choice
Product managers with a pre-3rd grade child are able
to choose their work location.
Babysitting Service Support
Financial assistance is available for babysitter use.
Relocation to Accompany Spouse
We readily consider requests for relocation from
employees wishing to accompany spouses who havebeen transferred to a new work location.
Loan of PCs to Employees on Childcare Leave
Laptop PCs are loaned to employees on childcare leave
to enable them to keep abreast with company affairs.
Diversity Training
LAWSON conducts diversity* training to promote better
work environment by improving understanding of
support for childrearing and other aspects of diversity.

Kanto Branch Softball Tournament

Employee Attitude Surveys
LAWSON conducts employee attitude
surveys to monitor employee satisfaction.
The results of the fiscal 2008 survey
showed that the whole employees were
happy with the company. Organization
operations, proactive corporate culture,setting concrete targets, and promotionof a more open atmosphere within thecompany all received a conspicuously
higher rating than the previous year.
Sectionalist tendencies are being remediedand communication within the company
is clearly improving.
The survey however showed that westill have room to improve in areas of
employee satisfaction such as fulfillment
and a sense of achievement.

* Diversity: valuing diversity means maximizing the potential of
all employees by respecting differences in gender, nationality
and others.

● Employee Attitude Survey Results
5Sports and Recreation

Awareness of LAWSON values

4

LAWSON hosts a range of sports andrecreational events to foster communication within the company, with branches
holding sports days, softball and futsal
tournaments, and various other sports
events in fiscal 2008. Such activities help
to promote smooth operations by

43

Motivating People

3

Combined score

Considerate attitude2

Determination to achieve goals

Positive attitude* The higher the score,
the better

Promoting Diversity● Employee Overview
FY2006
Employees (consolidated)

Hiring Foreign Students toAddress Increasing
Diversification of Society

5,186

3,184/430

3,202/346

4,517/669

3,131

3,316

3,459

2,839/292

2,979/337

3,083/376

Women in managerial positions (%)

0.4

4.7

1.3

Employees with disabilities (%)

1.6

1.4

1.7

Employees on maternity leave

14

17

4

Employees taking childcare leave

17

21

25

Employees working reduced hours for childcare

14

20

16

Employees taking leave as caregivers

0

1

2

Insured employee health check rate (%)

81.7

89.3

90.8

Average age

37.8

37.6

37.8

Average length of employment (years)

11.4

11.2

10.9

Employee turnover (%)

11.5

9.2

6.6

Workplace accidents

46

47

67

Employees (non-consolidated)
Male/female

LAWSON proactively invests in employee
training to instill its corporate philosophy
and priority on customers, and create anorganization of ambitious professionals
with outstanding work skills.
Under our original LAWSONUniversity training program, we provide a
range of training courses according togoal, occupation and position at the
LAWSON Learning Center (LLC) near ourheadquarters, and have also deployed ane-learning system for employees to takerequired training at any time irrespectiveof location.

Improving store management skills

ES/CS promotion
Nurturing a customer-oriented mindset
Creating satisfying workplaces

Self-development

Job skills
Gaining required job-specific skills

Compliance/Environment
Essential knowledge for LAWSON employees

Position-specific skills
Skills required for different positions

Training Center/Guest House
Training for franchise stores●Employee attitude surveys●Customer satisfaction lectures●Schooling and correspondence course●External seminars●Magazine subscriptions paid by company●Leader training I ●Leader training II (corporate finance)●Leader training III●Store development training ●Merchandise development training●Assistant supervisor training ●Store employee training●Training for promotion to store manager●Compliance and risk management training●Job-specific compliance training●Position-specific compliance training●Environmental training ●Compliance questionnaire

Employee Training

Training future leaders●Store launch training●Crew leader training●Training for existing store managers

e-learning system

Management training

My Dream is to Establish
LAWSON in Vietnam
Human Resources Office

LAWSON Learning Center

LAWSON University

Provision of tools for self-development

From the Frontline: Employee

Tong Thi Thao

● LAWSON University Structure
Franchise store training

Motivating People“LAWSON University”
Training Program

FY2008

3,548

Male/female

We consider our employees to be ourgreatest asset, and seek to create anorganization that makes the most of theirindividuality and enables them to realize
their full potential. In fiscal 2009, we hired
39 foreign students as new employees,
and will continue to breathe new life into
our workplaces through multiculturalhiring.

FY2007

3,614

I’m currently involved in hiring people andwatching over our foreign employees tohelp resolve any work issues or issues
related to living in Japan. As a foreigner
myself, I think I’m very lucky to be able tochat with other employees who share thesame dreams and concerns. My dream is
to establish LAWSON in Vietnam. It’s stilla very big hurdle, but I want to study hardand gain as much experience as I can for
the future. I hope that someday mychildren will say they think it’s great that I
work for LAWSON.

●New manager training ●New employee training●New assistant manager training

Job rotation and evaluation

Note: The above is only a selection of available training courses.
ES: Employee satisfaction CS: Customer satisfaction

Corporate Citizenship Report 200944

Together with our Business Partners
We do our utmost to build trust with our business partners, since their cooperation is absolutely essential to providing our customers with safe products.

Promoting Fair Transactions
To build trust with business partners, the
LAWSON Code of Ethics calls for fair andtransparent transactions conducted ingood faith, and we educate our merchandising personnel on the importance of not
taking advantage of superior negotiating
positions. Specific measures include
e-learning for all employees, and training
sessions upon promoting personnel toassistant merchandising developers andstore development assistants. LAWSON
conducts an annual questionnaire surveyof business partners in such fields as
product delivery and store construction to
identify problems and gain a broad
perspective from which to revise andenhance our compliance structure.
Although the results of the 15thsurvey in July 2008 were the best so far,responses included some hard-hitting
opinions regarding transactions. We takethese results seriously, providing feedback
at general meetings and conduct appropriate training for each division. We also
provide feedback to business partners
who respond to our questionnaires.

● Business Partner Questionnaire Results
No pressure or compulsion in transactions
3
2
1
0
--1
--2
--3

Survey results being announced at a general meeting

Store crew
response* The closer to+3, the morepositive theresult is.

No unfair tradepractices as alarge-scaleretailer

Corporate Citizenship Activities Conducted with Our Business Partners
We conduct more and more corporate
citizenship activities with our business
partners every year. Joining hands withothers to carry out greening projects,
cleanups, Bring Your Own programs andvarious other activities expands thedimension to those activities, making
them more meaningful than ever.
Under our CO2 Offset program, wepartnered with Coca-Cola (Japan) Co.,
Ltd., Saitama Prefecture, Yokohama City,
Suntory Beer & Spirits Limited, THE NISHINIPPON CITY BANK, LTD., PILOTCORPORATION, ZEBRA Co., Ltd., PENTEL
CO., LTD., Panasonic Consumer
Marketing Co., Ltd., TOSHIBA LIGHTING& TECHNOLOGY CORPORATION andothers to offer products and services with
attached CO2 offsets.
For our Bring Your Own Bag program,we partnered in fiscal 2008 with SGR Inc.,TOKYU CORPORATION and others.
CDG Co., Ltd. and PHILIP MORRISJAPAN K.K. again participated in Mt. Fuji
LAWSON Forest activities that we carryout every year in May.
Kentucky Fried Chicken Japan Ltd.
and Kei Emu Esu Co., Ltd. participated in

45

Motivating People

our Arakawa Clean Aid cleanup activity
conducted in November 2008.
The elementary school in Laos that
opened its doors in December 2008 wasbuild with the cooperation of Kai
Corporation, LAUREL CO., LTD.,

Elementary School Opened in Laos

WAKODO CO., LTD., Oji nepia Co., Ltd.,OMI Corp., Paltac Corporation, andMiyata Boxing Gym.

LAWSON’s Organization
We firmly believe in the importance of enhancing the soundness and transparency of our management and further developing
our corporate governance system to meet the expectations and earn the constant trust of our customers, franchise owners,
store crews, business partners, shareholders and other investors.

LAWSON Group Corporate Conduct Charter
1. Basic Declaration
We*1 believe that fulfilling our corporate social responsibilities while responding to the requests of LAWSON Group*2 stakeholders will lead to enhanced
corporate value of the LAWSON Group. With a solid understanding of the Charter’s contents, we pledge to always act sincerely and considerately with ahigh sense of corporate ethics while adhering to all laws.
*1 “We” refers to all directors, officers, regular employees, temporary employees and dispatched employees (hereafter regular employees, temporary employees and dispatched employees
are collectively referred to as “employees.”)*2 “The LAWSON Group” refers to LAWSON, INC. and companies within the scope of consolidation.

2. Basic Stance
1. We shall derive happiness from providing all customers with the highest levels of satisfaction and will continually act with consideration toward
customers.
2. We shall support LAWSON franchise stores, which represent our largest partner.
3. We shall adhere to all laws and contracts with every business partner and carry out fair and transparent business transactions.
4. We shall respect the human rights of all employees without discrimination.
5. We shall disclose necessary information to all shareholders and investors to enable them to learn more about the LAWSON Group.
6. We shall take an active approach to environmental protection and proactively carry out social contribution activities as a member of the local community.
7. We shall maintain no ties with anti-social organizations and maintain healthy and proper relations with elected officials and public employees.
8. We shall adhere to internal regulations and various rules while undertaking our daily work to ensure that we do not lose any valuable assets of the
LAWSON Group.

Corporate Governance andInternal Controls
Board of Directors, Executive Office System

About LAWSONBoard of Directors

Regular meetings
Reports on important issues

Set internal control
system policy

President and CEO

Corporate Audit Office

Affiliated companies

LAWSON’s Board of Corporate Auditors
has 4 members, 3 of which are fromoutside the Company. In principle, theBoard meets monthly to provide fair andimpartial opinion on general management
and other specific topics. The Board also
audits the execution of duties by directors,
including the status of internal control

Internal control audits
Board of Corporate
Auditors

Compliance and Risk
Management Committee

Compliance officers

Food Safety and Hygiene
Management Subcommittee
BCP* Subcommittee
Crime and Accident
Prevention Subcommittee

CCO Office

CCO

Control

Monitoring

General managers
of divisions

Branch managers

Control

Monitoring

Swine Flu Control Committee●Ordinary precautions●Emergency precautions
Internal Audit &Correction OfficeInternal control
monitoring
Close communications

Department managers

ControlManagers

Department managers

Monitoring

Managers

ControlManagers

Training/Support

Monitoring

Franchised stores

Audit System

LAWSON recognizes the importanceof compliance with laws and regulations
and of CSR, and has accordingly established the Internal Audit and Guidance
Office as an independent internal auditing
section to confirm that business is conducted in a fair and appropriate manner.

● LAWSON Internal Control System

Mutual understanding / information exchange

As of May 27, 2009, LAWSON had 7
directors, including 3 outside directors. The
Board of Directors intentionally has few
members, as our aim is to enable swift
management decisions. The Company has
also introduced an executive officer system
to enhance management supervision andbusiness execution. The Company has 16
executive officers, 2 of whom concurrently
serve as directors.
In fiscal 2008, the Board of Directors
met 16 times, including 4 extraordinary
meetings. The rate of attendance at thesemeetings by outside directors was 79%.
In fiscal 2009, the Board of Directors plans
to convene monthly.

systems.
During fiscal 2008, the Board of
Corporate Auditors met 14 times, including 2 extraordinary meetings. The rate ofattendance was 100%, and the rate ofattendance of outside corporate auditors
at Board of Directors meetings was 94%.

Person in charge Person in charge Person in charge Person in charge

Basic management policy* BCP: Business Continuity Plan

Corporate Citizenship Report 200946

Compensation System
In fiscal 2008, the Compensation
Committee, chaired by Members of theBoard (Outside) Takehiko Kakiuchi, met
three times. These meetings were held todiscuss topics such as methods of determining director and executive officer
compensation, and the decisions of thesemeetings were reported to the Board of
Directors. A multi-source assessment
system for deciding managementcompensation was introduced in fiscal
2003, and is referred to when carryingout personnel assessments.

We conduct attitude surveys covering
all employees, as well as surveys forbusiness partners concerning productdelivery and store construction. Thesesurveys help us to identify issues incompliance-related activities andtransaction details, and gain a broad
perspective from which to revise andenhance our compliance structure.
For our internal reporting system, we
have set up hotlines both inside andoutside the company (law firm) for
employees to report and consult on
various matters so as to enable early
discovery of internal problems and theswift implementation of necessary
remedies.

and propose ways to make improvements.
Affiliated companies also appoint compliance officers to oversee compliance andrisk management and participate in meetings of affiliated company complianceofficers to share information and knowledge throughout the Group.

Internal Control System
LAWSON faces many different risks as acompany involved in many different
business areas centered on convenience
stores and providing a wide range of
products and services through its nationwide chain of stores.
We believe that the establishment
and operation of a system of internal
controls is of vital importance to ensuringsound and sustained corporate development. To further ensure appropriate
financial reporting, in February 2009 theBoard of Directors added new measures
to its Fiscal 2008 Basic Policy for the
Establishment of the Internal Control
System, and is now executing them under
the Fiscal 2009 Basic Policy for the
Establishment of the Internal Control
System. An explanation of this policy isavailable on our website. In line with thispolicy, we aim to conduct our business inways that are operationally effective,
efficient and appropriate in order toenhance our corporate value.

Affiliated Company Compliance Officer meeting

Ensuring Effective Operation ofCompliance System
LAWSON has developed compliancerelated rules and conducts regular compliance training, including e-learning andgroup training by job type, to ensure that
it fulfills its corporate responsibility tocomply with laws and regulations andrespect social standards and morals at all
times. In March 2008, we formulated the
LAWSON Group Corporate Conduct
Charter, and revised the LAWSON Codeof Ethics. We also issued the LAWSONGroup C&R Handbook, which summarizes
these standards of conduct so that we canmaintain and enhance employee
awareness of compliance through theirwork.

Compliance and risk management training session organized by
the CCO OfficeCompliance Survey
We perform compliance surveys covering
all company personnel once a year to gain
an understanding of the degree to which
our compliance system is being upheld.
Results of our 5th survey, conducted infiscal 2008, indicated a marked improvement in awareness of the existence of
hotlines and the importance of observing
our corporate code of ethics.
We will continue to conduct surveys
and other activities to further raiseawareness of compliance issues andensure that this awareness is translated inaction.

Initiatives to Promote Compliance
Creating Structures for Raising
Awareness
LAWSON has appointed a Chief Compliance Officer (CCO), who has overall
responsibility for the promotion of compliance and management of risks. The CCO
leads the CCO Office, which has its own
fulltime staff. Compliance officers are also
appointed at each division and the sevenbranch offices in Japan.
With the aim of ensuring compliancewith laws and regulations and effective
risk management measures, the CCO
convenes Compliance and Risk Management Committee meetings once a month
to identify current problems and build andimplement systems to preempt misconduct and other problematic incidents.
Compliance officers promotecompliance and risk management in theirown sections, provide related education

47

About LAWSONLAWSON Group C&R Handbook● Compliance Survey Results
2

FY2008

Awareness of corporate philosophy,
code of conduct, and code of ethics

1

FY20070

Awareness of importanceof promoting corporate ethics--1

Awareness of existence of hotlines

Actual implementation
in workplace* The closer to +2, the more positive the result is.

Creating a Swift Response Risk
Management Structure
Enhancing Structure to Address New
Risks
LAWSON focuses on 3 major risk areasfrom the corporate ethics perspective:
product quality and hygiene management(see P27-28 for quality management),
information security, and disaster
response. We have a system in place forthe swift resolution of problems in theevent of an emergency, and theCompliance and Risk Management
Committee and four subcommittees
convene in normal times to identify andminimize risks.
In the event of a serious risk emerging,
we set up an emergency risk management committee to contain the risk andminimize damage. After resolution of thesituation, we analyze causes to ensure
restoration of trust and prevent recurrence, and seek to further improve ourrisk management capabilities by providing
feedback on our findings to employees
through training.
Swine Flu Prevention Manual

Office security rules

Maintaining Lifeline Functions during
Major Disasters

employees are fully aware of the actions
expected of them in times of disaster, we
also conduct disaster response training
programs twice a year.
For the companywide disaster
response training held in January 2009,each branch office practiced drills forconfirming the safety of employees andtheir families and communicating with
headquarters using satellite phones andother means of communication in theevent of an earthquake of 5-upper orstronger on the Japanese seismic intensity
scale. They also practiced transport of
supplies with local authorities with which
they have disaster assistance agreements.
Staff in the Headquarters Disaster
Response Office returned home on footto check walking routes.
Store Crime Prevention Measures

LAWSON strives to ensure that if a majordisaster strikes, its stores will continue tooperate, serving as a lifeline to affected
communities. To this end, LAWSON has
compiled basic and organization-specific(district offices, branch offices, headquarters) disaster response manuals anddistributed these to each division andbranch office. We have also included
relevant parts in store manuals. In theevent of a large-scale disaster, we havesystems in place to establish Disaster
Response Offices and ensure quick
response to disasters. We periodicallyreview our disaster response manuals in
the light of problems or questions that
may have arisen during response training
or actual disasters to ensure the ongoing
operation of stores in affected areas andthe rapid restoration of service in stores
hit by a disaster. To ensure that all

To prevent crime at stores, LAWSON has
created a crime prevention system andconducts various activities including
promoting the use of pigment-filled
anti-crime colored balls, dispatching
headquarters staff to make late night
rounds of stores, participating with local
police departments in mock robbery
exercises, and adherence to the “Five
Principles of Crime Prevention.”

About LAWSONAs one of our measures to mitigate swine
flu-related risks, in December 2008 we
prepared a 24-page prevention manualfor distribution to all of our employees.
Divided into information and action
sections, the manual uses plentiful illustrations and diagrams to explain the subject
in an easy-to-grasp format under 14
themes.
We have also procured a stock ofmasks at headquarters, placed alcohol
disinfectant at office entrances, andinstalled air purifiers in our headquarters
and branch offices.

LAWSON Office Security Rules as theirmanual.
We strive to improve our information
security on all fronts through measures
such as regularly checking our information
management system using self-testingand internal auditing processes, rigorous
observation ofrules for use, storage and disposalof personal information, and information security
training.

Mock robbery exercise

Disaster Response Case Study
When the Iwate-Miyagi Nairiku Earthquake struck on June 14, 2008, we
immediately established Disaster Response Offices to gather information on
the disaster and provide support with supplies.

Prevention manual

Improving Information Security
LAWSON has established a Personal
Information Protection Policy that is also
reflected in store manuals to ensure that it
is understood and put into practice. To
raise awareness, we also use internal
newsletters and other communication
tools to describe common errors andcomplaints at stores and ways to resolve
them. Headquarters employees use theDisaster Response Timeline
8:43 Earthquake strikes (Intensity 6 upper of on Japan’s seismic intensity scale =automatic establishment of Disaster Response Office)8:55 Establishment of Disaster Response Offices in Headquarters and Tohoku Branch
Office confirmed
14:00 Start of relief provisioning
16:00 Earthquake relief donation collection outline decided
Provisions delivered on the day of the disaster
Item
Rice balls
500 ml bottles of green tea

Number
2,000
1,080* A total of ¥3,129,431 in disaster relief
donations was collected and passed on to
the Iwate branch of the Japanese Red
Cross Society and Miyagi Prefectural Officeon July 18, 2008 (see P33 for details).

Corporate Citizenship Report 200948

Company Overview (As of February 28, 2009)
LAWSON, INC.
East Tower, Gate City Ohsaki, 11-2, Osaki 1-chome, Shinagawa-ku Tokyo 141-8643, Japan
Takeshi Niinami
April 15,1975¥58,506,644,000
5,186 (consolidated)
Mainly management of LAWSON and NATURAL LAWSON franchise anddirectly managed convenience store chain as headquarters¥1,558.7 billion (FY2008)
All 47 prefectures in Japan and Shanghai, People's Republic of China (joint venture)

Name
Address
President and CEO
Established
Capital
Employees
Scope of Operation
Store Revenues
Store Coverage

Consolidated Net Sales*

Franchise stores
Directly managed stores(No. of stores)

9,527

10,0002,000

1,329.0 1,361.7 1,386.6

1,415.1

1,558.7

8,000

8,564 8,587
8,077 8,366

7,731 7,958 8,093 8,148

05

06

07

08 (FY)

346

408

471

439

04

05

06

07

1,165

Ninety-nine Plus Inc.2

Average purchase per person (yen)Average customers per store per day
1,000

820

816

813

800

600

597

585

585

800

589

586

All stores (thousands of yen)
New stores (thousands of yen)
600

868

812

Direct operation and franchise chain management of SHOP99
single-price stores and other stores

Average Daily Sales per Store

1,000

450

488 480
478
477
448
436
429
426

517 505

SHANGHAI HUALIAN LAWSON Co., Ltd.

300
400

200

200

0

04

05

06

07

08 (FY)

0

1 LAWSON TICKET, INC. and i-Convenience, Inc. merged on March 1,
2009, and the name of the resulting company was changed to
LAWSON ENTERMEDIA, INC. on July 20, 2009.
2 Ninety-nine Plus Inc. and VALUE LAWSON, Inc. merged on May 1,
2009.

Affiliated Company (As of February 28, 2009)

600

400

Format development, product planning, development andoperational guidance of LAWSON STORE100 shops, which offer
value products at reasonable prices, primarily targeting womenand elderly shoppers

08 (FY)* Ninety-nine Plus added from fiscal 2008

Average Number of Customers/
Average Purchases

Installation, operation and management of jointly operated ATMs
in LAWSON stores and deposits/withdrawals, transfers andrelated financial services via ATMs outsourced from partner
financial institutions

8,362

0

04

Operation of the official LAWSON Mobile website for mobile
phone users and provision of online merchandise, services andinformation through this site.

VALUE LAWSON, Inc.2

2,000

0

i-Convenience, Inc.1

All activities related to conducting convenience store surveys andproposals for improving LAWSON stores

4,000
500

LAWSON TICKET, INC.1
Listed on JASDAQ, sells tickets for concerts, movies, sporting andother events, mainly through Loppi multimedia terminals locatedinside LAWSON stores.

BestPractice Inc.

6,000
1,000

Consolidated Subsidiaries(As of February 28, 2009)

LAWSON ATM Networks, Inc.

Number of Stores(Billions of yen)

1,500

Subsidiaries and Affiliate

Development of LAWSON store chain in Shanghai, PRC, througha joint venture with Hualian Group Corporation

150

0

04

05

06

07

08 (FY)Store Information (As of February 28, 2009)
9,527stores in Japan
Kinki Region

Including: 93 NATURAL LAWSON stores
925 LAWSON STORE 100 and SHOP99 stores

Hokkaido Region

Chubu Region

Tohoku Region

498

1,359

807
Stores2,037

100
Niigata106
Toyama78
Ishikawa
92
Fukui
66
Yamanashi
133
Nagano110
Gifu
167
Shizuoka
423
Aichi
84
Mie
1,359
Total

Stores

Chugoku Region

531
StoresKyushu Region

1,012Stores331
Fukuoka58
Saga
84
Nagasaki90
Kumamoto
126
Oita
84
Miyazaki
106
Kagoshima
133
Okinawa
1,012
Total

49

About LAWSON

Tottori
Shimane
Okayama
Hiroshima
Yamaguchi
Total

87
82
122
132
108
531

123
Shiga
236
Kyoto
935
Osaka
529
Hyogo
104
Nara
110
Wakayama
2,037
Total

StoresAomori
Iwate
Miyagi
Akita
Yamagata
Fukushima
Total

162
166
183
142
56
98
807

Kanto Region

2,866StoresShikoku Region

417
StoresSHANGHAI HUALIAN LAWSON Co., Ltd. 300 stores(As of December 31, 2008)

Tokushima
Kagawa
Ehime
Kochi
Total

109
98
150
60
417

IbarakiTochigi
Gunma
Saitama
Chiba
Tokyo
Kanagawa
Total

106
105
68
372
342
1,233
640
2,866

Third Party Comment
We have received the following third party comment on ourenvironmental activities. We take such opinions to heart and act
on them to improve and expand our activities.

Ms. Shiho Fujita
Founder of “gal” marketingcompany SGR Inc.

ProfileBorn in Chiba Prefecture in 1985.
After graduating from high school,
Ms. Fujita founded Shiho GRevo
Inc. to launch a “gal (= girl)revolution” aimed at giving girls ofher generation a completely newimage. Shiho GRevo, now renamed
SGR Inc., specializes in marketingthat leverages the gal image todevelop new products andorganize promotions. As a gal
company president, Ms. Fujita also
became popular on Japan’s lecture
circuit, and has become
increasingly involved inenvironmental issues and AIDS
prevention efforts. She stepped
down from SGR in December 2008
to focus on food issues with her“No Gal” (= farm girl) Project tocultivate interest in food andagriculture among young people.
Initiatives that she has launchedunder the project include thecultivation of Shibuya Rice in Akita
Prefecture and a line of chicfarming wear.

LAWSON HISTORY
1975
1976
1977

1989

January
September
March
April
May
September
March

1991

October
February

1992

September

1993
1995
1996

April
January
March
April
June
July
March
July

1978
1980
1982
1986
1988

1997

1998

February
November
December

2000

July

2001
2002

High Hopes for Convenience Store Eco Initiatives

2003

October
May
July
June
NovemberJanuaryMay
August

2004
2005

June
March
May
June

2006

January
September

2007

March
March
July

2008

February
April
April
September
October
October
December

2009

January

Daiei LAWSON Co., Ltd. establishedFirst store opens in Sakurazuka (Osaka)
T.V.B. Sun Chain Co., Ltd., established
Inaugurated system for joint delivery of milk and other daily use products
Created specialized plant to make boxed lunches and began supplying
freshly made boxed lunches
Installed first-generation computer system
Business tie-up established between LAWSON and Sun Chain
Began accepting home delivery service orders
Began sales of Kara-age Kun fried chicken nuggets
Began employing a new three-delivery system
Use of point-of-sale tracking system commenced
Merger with Sun Chain Corporation, creating Daiei Convenience Systems
Co., Ltd.
Began agency service to accept electricity and gas bill payments
Began employing the slogan the “´Hot´ Station in the Neighborhood” ininternal and external communications
Started collecting donations for charities working to protect the global
environment (currently called “LAWSON Green Fund”)
Commenced Clean Aid activities
Conducted recovery and donation activities in wake of Kobe earthquake
Began handling sales of stamps, postcards and revenue stamps
Initiated LAWSON Ticket sales
Company name changed to LAWSON, INC.
Opened first LAWSON store in Shanghai, People’s Republic of China
Started “Every Store Can contribute” initiative
Commenced operations in Okinawa, marking the Company’s extension ofoperations to all 47 Japanese prefectures
Installed Loppi multimedia terminals at all stores
Established the LAWSON Code of Ethics
Received ISO 14001 certification (international environmental
management system standard)Company’s shares listed on the First Sections of the Tokyo Stock Exchange
and Osaka Securities Exchange
Established i-Convenience, Inc.
Established LAWSON ATM Networks, Inc.
Opened the first NATURAL LAWSON store
Introduced the LAWSON PASS card
Established the Compliance Promotion Committee
Established post office counters at all stores
Began staged removal of artificial colorings and preservatives fromproducts sold in the Tokyo metropolitan and Kinki regions
Signed an agreement with Wakayama Prefecture on local cooperation
activities
Appointed a Chief Compliance Officer and compliance managers
Announced Personal Information Protection Policy
Opened the first LAWSON STORE100
Created new corporate philosophy to mark the 30th anniversary of
LAWSON’s founding
Officially started waste-oil recycling
Became first private company to sign agreement with Japan’s Ministry of
the Environment
Employed environmentally friendly PLA for salad containers
Started “Bring Your Own” program
Opened HAPPY LAWSON Yamashita Koen store to support families withchildrenFormed comprehensive alliance with Japan Post Holdings Co., Ltd.
CO2 Offset program launched
Equipped two stores in Nagano Prefecture with solar panels in partnershipwith a citizen fund
Opened a sub-post office in a LAWSON store in Sakaki, Nagano Prefecture
Letter of Appreciation from Minister of Health, Labour and Welfare forDistinguished Service in the Promotion of Organ Transplant Measures
Switched to Designated Farmer Rice for Niigata Koshihikari Onigiri riceballs
Opening of elementary school in Laos built through the sale of productswith donations attached
Started electric vehicle working trial

Corporate Citizenship Report 2009

About LAWSONMy interest in the environment started with litter picking. I love
Shibuya and I was sad to see so much litter lying around, so I
started cleaning up the streets around our office. When I wrote
about this in my blog, people started asking me to participate ineco and cleanup events, and I found myself getting more andmore involved in eco issues. When I think I've learned somethingworthy, I want others to know it too, and that's basically how I got
into organizing eco activities from the young people’s viewpoint.
That’s how I came to collaborate with LAWSON in spring 2008 to
make the Ecokawa Bag (=cute eco-bag).
LAWSON and other convenience stores are very much a partof the lives of young people. You can get to know about
environmental issues through TV or radio, but they seem distantand unconnected to your own reality. It’s a different matter,though, if convenience stores get involved. You see them doing
something, and feel that maybe you should be doing something
too. You feel kind of pressured, in a good sense!
Recently food safety has become a big issue. Food goes into
your mouth, and so safety is a big worry. That’s why I figured thebest thing would be to make my own, and so from spring 2009,
I started growing rice in Akita Prefecture and vegetables in
Shizuoka Prefecture.
My image of rice has also changed. I used to think that rice
was fattening, and ate very little of it, but now I know that was a
mistaken view. I eat a lot of rice now, and find it filling enoughthat I no longer snack so much between meals.
I think it's important for people to have accurate information
about eco issues and food, and I plan to continue communicating
what I’ve learned and found worthy. And since LAWSON andother convenience stores are so close to the hearts of young
people, I hope to be able to work with them to get the message
across to my generation.

April
June
October
April
November

50

CSR Promotion Office
East Tower, Gate City Ohsaki, 11-2, Osaki 1-chome,
Shinagawa-ku, Tokyo 141-8643, Japan
Tel: +81-3-5435-1350
Fax: +81-3-5759-6944
URL: http://www.lawson.co.jp/company/e/Issued August 2009
Next issue scheduled for August 2010
© 1975-2009 LAWSON, INC. All Rights Reserved.