Environmental and Social
Activities Report 2007

LAWSON, INC.
CSR Promotion Office
1-11-2 Osaki, Shinagawa-ku, Tokyo 141-8643, Japan
Tel: +81-3-5435-1350
Fax: +81-3-5759-6944
URL: http://www.lawson.co.jp/company/e/Published Oct. 2007
Next publication scheduled for Aug 2008
© 1997–2007 LAWSON, INC. All rights reserved.

B-(2)-060001

White wood from forest thinning,approval number K0301090• This report is printed on forest-thinning paper (10% of materials from thinning domestic forests,
90% from recycled paper recovered in the marketplace).
• Printed using soybean-based inks approved by the American Soybean Association.

Printed in Japan“Happiness and Harmony
in Our Community”

About This Report
Editorial Direction
LAWSON is strengthening its resolve to truly live up to its
corporate philosophy by promoting “Happiness andHarmony in Our Community.” This philosophy incorporates
a sense of compassionate consideration for theenvironment in the specific regions in which we operate,
as well as globally, and our headquarters and stores arecooperating to undertake environmental preservationand social contribution activities on a national scale.
This environmental report—our ninth—outlines ourenvironmental activities in FY2006, including the savingof energy and resources and reduction of waste. The
report also describes LAWSON’s social contribution
activities, including its Green Fund, as well asafforestation and regional environmental cleaning
initiatives. Also, this report describes the full extent of our
new corporate philosophy from the viewpoint of ourcontributions to our customers, the owners of franchise
stores, store crews*, as well as society and the economy
as a whole.
Through the cooperation of our customers andresidents of the regions in which we operate, LAWSON
is striving to become “The ‘Hot’ Station in the
Neighborhood.” This report describes exactly how wewill achieve this goal.

Overview of Operations

Matching the Needs
At present, LAWSON is enthusiastically introducing initiatives toreach the four goals outlined in LAWSON Challenge, its three-year
medium-term management plan that ends in FY2007. These four
objectives are to: (1) promote innovation, (2) raise customer andemployee satisfaction, (3) raise productivity and (4) emphasize CSR.
To grow, we must sustain our customer levels, but suchchanging social factors as the declining birthrate and the aging ofJapanese society also means that customer needs are growing

Promote innovation

Raise customer andemployee satisfaction

LAWSON Challenge 2007

*Store crews are part-time workers.

Scope of Report

Raise productivity

Emphasize CSR

n ScopeThis report concentrates specifically on LAWSON as aparent company, its member stores and some affiliatedcompanies, and includes some of the cooperative effortsof business partners involved in distribution, themanufacture of rice-related products and sales andwaste management.
n Period
The primary period covered by this report is FY2006(March 1, 2006, through February 28, 2007), but also
includes some information from previous fiscal years, aswell as activities for FY2007.
n Date of Publication
October 2007 (previous: August 2006; next: planned forAugust 2008).
n Reference Guidelines
Ministry of the Environment Environmental Reporting
Guidelines, fiscal 2003 edition.
n Published on the Web
This report is also available on our website, which we
aim to update with the most recent information. Please
have a look:
http://www.lawson.co.jp/company/e/activity/.

C O N T E N T S
Overview of Operations ………………………………1
Top Commitment ……………………………………3
LAWSON’s Organizational Structure ………………5
Special Feature: Eliminating Those “MOTTAINAI!” Moments ……8
FY2006 Activity Report……………………………15
LAWSON Nurturing the Environment ……………16
Deeply Rooted in Society …………………………23
Customer Relations ………………………………34
Franchise Owner and Store Crew Relations ……39
Employee Relations ………………………………41
Business Partner Relations ………………………43
Shareholder and Investor Relations ……………44
Third-Party Opinion, LAWSON’s History …………45
Company Overview, Store Information ……………46

1

NATURAL LAWSON—Supporting Customers Who Focus on Beauty and Health—
NATURAL LAWSON stores strive to support customers whose
lifestyles are oriented toward beauty, health and comfort. As of
February 28, 2007, we had 100 of these stores, which are
typically situated in busy urban office areas where many
women work, as well as in peaceful bedroom communities.
The stores feature healthy and calorie-conscious side dishes
and boxed lunches and meet the needs of female customers,
trending toward meals that offer small portions of a wide
variety of foods and generous helpings of vegetables. These
stores provide freshly baked bread and organic coffee andhave on-premise seating where customers can enjoy theseofferings.

of the Neighborhood
increasingly diverse. Addressing these changes and further

format to match lifestyles that prioritize beauty, health and comfort.

enhancing customer satisfaction requires us to take an innovative

We have introduced LAWSON STORE100, which emphasizes

approach to convenience stores.

affordably priced fresh foods, and in January 2007 we began the

LAWSON needs to take a fine-tuned approach toward

full-fledged development of LAWSON PLUS stores, which respondmeeting increasingly diverse needs. As part of this exercise, weto the needs of neighborhood customers with products andare naturally working to make LAWSON stores even more

services and “something extra.” One of LAWSON’s strategies isconvenient. We are also introducing a number of stores with newremain an innovation leader as it continues working with suchformats. For example, we have launched the NATURAL LAWSON

strategies.

LAWSON PLUS
—Products and Services that Meet the Needs ofCustomers in the Area and Offer “Something Extra”—
These stores are designed to meet the needs of customers inthe surrounding area, but they also offer products and services
that provide a bit “extra,” compared with other LAWSON
stores. In regions where the aging of Japanese society isparticularly pronounced, we put an emphasis on stores thatare “friendly,” while at the same time housewives demand
products that are fresh. Our response is the hybrid LAWSONPLUS format, which we have recently begun pursuing in
earnest, primarily in urban areas. The color scheme of thesestores is themed on a beautiful sunrise. Our first such store,
the LAWSON PLUS Nagai 2-Chome store, opened its doors
on January 19, 2007.

LAWSONLAWSON STORE100—A Value-Priced Fresh-Food Convenience Store—
LAWSON STORE100 stores are designed around the idea of offeringboth fresh and processed foods that are value priced, typically ¥100
(before consumption tax), hence the name. As of February 28, 2007,
80 of these stores were in operation, to the appreciation of thehousewives and senior citizens that are their core customers.
Because these customers have a particular penchant for fresh foods,
the stores purchase perishable goods on a daily basis*1, have theirproducts checked by a green-grocer specialist and offer products insmall portions to suit the needs of customers with small families. For
these stores, we are also enhancing our Value Line series of privatebrand*2 products, which already number more than 320.

*1 Except on days when markets are closed*2 Products we have designed ourselves2Top Commitment

Taking on New Challenges toEnhance the Happiness of theCommunity
Rush of Store Openings
Skewed the Picture
Some 35 years have passed since the advent of
convenience stores, and now they have become aregular part of the community infrastructure. Therefore,
naturally the question arises of whether LAWSON is truly
serving a vital role in the communities where it operates
and acting as a positive force for the global environment.
In the past, convenience store operators—LAWSON
included—succeeded by pursuing a nationwide “spurt”
strategy to grow by opening as many stores as possible.
We have begun to see some of the downsides of thisaggressive expansion model. Market saturation is surely
one factor behind the industry trend toward sluggish
existing-store sales and the slowdown in corporate
growth.
Our new products and services—24-hour
operations, boxed lunch and side dish offerings, theease of paying utility bills and purchasing tickets, andparcel delivery services—have made our customers’
lives more convenient. On the other hand, the negative
factors—the energy usage and waste created by ourstores, as well as the noise they make—deserve notice
and attention.
We recognize that we need to take a fresh, close
look at the reason for our existence.

Invigorating Existing Stores
LAWSON is pulling back from its previous strategy of
growing by launching as many stores as possible infavor of a medium- to long-term strategy of sustainablegrowth. To achieve our goals, however, we aim to maketo act in accordance with our corporate philosophy andhelp create happy communities. In line with our code of
conduct, we will continued to value and cultivate ourpersonnel and realize the importance of social harmony.
To make the LAWSON stores more integral to theircommunities, the stores need to know their customers.

3

LAWSON currently uses “store charts” (individual store
data analysis) to examine store sales areas and derive
preliminary sketches of their operations. This process
helps us determine what sort of store is best fitted to a
specific region.
In cooperation with franchise owners are thesupervisors and product, store and facility development
personnel who take the initiative in harmonizing
LAWSON with the community. By nurturing thesehuman resources, we cultivate the seeds of future
success.

Harmony with the Community
To achieve sustainable growth, a company requires
three key types of support: economical, societal andenvironmental. Our corporate activities demonstrate that
we serve a role as a member of society. Accordingly, asa result of our operations we do our best to earn theappreciation indicated by such phrases as “LAWSON
stores are nice” and “LAWSON is a good company.”
To coexist in society, we recognize the importanceof a thorough corporate governance system. In ourefforts to assure a sound corporate structure, we haveformulated the LAWSON Code of Ethics, which weensure that all employees follow. We elicit thecooperation of employees and business partners incompleting questionnaires to check that no issues
related to our corporate activities go unresolved and topreempt misconduct.
We also realize the growing seriousness of global
warming and take active measures to prevent thissituation, concentrating primarily on reducing emissionsof carbon dioxide (CO2) and other greenhouse gases. As
part of these efforts, in April 2007 we launched a “BringYour Own*” initiative to encourage customers to bring
their own shopping bags and chopsticks. In September
2006, we signed an agreement with Japan’s Ministry of
the Environment, becoming the first private-sector
company to do so. In this agreement, we promise towork toward a 20% reduction in the amount of materials

used in the plastic shopping bags we distribute in
FY2008, compared with FY2005 levels. The support ofpeople in the neighborhoods where we operate is
essential to achieving these goals, which involve thedissemination of “eco-bags” for shopping atconvenience stores. We believe the “Bring Your Own”
campaign provides the quickest available shortcut toencourage everyone—including ourselves—to be moreregionally and globally considerate, seek peacefulcoexistence with society and protect the environment.
We consider working toward the creation of asustainable society one of LAWSON’s missions, and weare keenly aware of the social responsibilities we accept
through our operations.

Taking on the Impossible
Japanese society is changing, and we must step backto contemplate how this society will look a decade into
the future. Surely the average age will rise, and women
will play increasing roles in all facets of society.
LAWSON has a role to play in these social changes.
For example, we provide health-conscious boxedlunches and side dishes that offer generous helpings offresh vegetables and fruit. We must also work to makeour stores into places that are more appealing andnprovide a more comfortable shopping experience forseniors and mothers with children in tow. As a result of
our constant efforts to take customer input into account,in 2007 we launched the LAWSON PLUS store format.
This is one of the challenges we are taking on to matchour concept of society 10 years hence.
LAWSON is not afraid of change. We know thatmany hurdles remain in the path to achieving our goal ofbeing “The ‘Hot’ Station in the Neighborhood.” We also
have a history of taking on challenges that seem
insurmountable and then resolving these issues.
LAWSON aims to keep its corporate culture vibrant bycontinuing to take on new challenges rather than restingon the laurels of past successes. Turning this vision into
reality requires ongoing dynamism, as we work to meetthe ever-changing needs of society.
* The ecology-focused “Bring Your Own” campaign encourages shoppers
to bring their own reusable shopping bags and chopsticks with them,
reducing the use of disposable items.

Corporate Philosophy n

Happiness and Harmony
in Our CommunitynCode of Conduct n• Acting with utmost consideration for others• Challenging with innovative ideas and actions• Having a strong will to attain the objectives

Takeshi Niinami
President and Chief Executive Officer

4

LAWSON’s Organizational Structure
LAWSON aims to do its utmost to meet the expectations of its customers, franchise owners, store crews*, business partners,
shareholders and other investors. In our view, the first step toward achieving these aims is to bolster management soundness
and transparency, and focus on enhancing our corporate governance systems.
* Store crews are part-time workers.

Basic Stance on Corporate Governance
LAWSON works toward various goals for its stakeholders that it believes are linked to raising corporate value.
1. Customers feel they can drop in at any time.
2. Franchise owners can achieve self-fulfillment and enjoy their achievements.
3. Store crews can grow and develop as individuals.
4. Business partners can turn their dreams into reality.
5. Employees can have pride in their work and be socially aware.
6. Shareholders and other investors can contribute to society indirectly and achieve their financial goals.
7. Communities feel safe and secure.
To achieve these objectives, we conduct our corporate activities with an awareness based on the corporate philosophy and the
LAWSON Code of Ethics. Through these efforts, as well as proactive disclosure, we focus on enhancing our corporate governanceby bolstering management soundness and transparency.

Corporate Governance and Internal Controls
Board of Directors, Executive Officer System
As of May 31, 2007, LAWSON had seven directors, including
four in-house directors and three external directors. The Boardof Directors intentionally has few members, as our aim is toenable swift management decisions. The Company has also
introduced an executive officer system to enhance
management supervision and business execution. As of May
31, 2007, the Company had 19 executive officers, of whomthree concurrently served as directors.
In FY2006, the Board of Directors met 15 times, including
three extraordinary meetings. The rate of attendance at thesemeetings by external director was 78%. In FY2007, the Boardof Directors plans to convene monthly.

5

established the Internal Audit Office as an independent internal
auditing organ to confirm that business is conducted in a fair
and appropriate manner.

Remuneration System
In FY2006, the Remuneration Advisory Committee, chaired byexternal director Koji Furukawa, met four times. These meetings
were held to discuss such topics as the method of determining
director and executive officer remuneration, and the decisions ofthese meetings were reported to the Board of Directors.
In addition to attaining individual targets, remuneration for
management has been dependent on a multifaceted assessment
carried out simultaneously with personnel assessments since
February 2003.

Audit Function

Internal Control System

LAWSON maintains a corporate auditor system, with three ofthe four members of the Board of Corporate Auditors fromoutside the Company. In principle, the Board meets monthly tostate in a fair and impartial manner their opinions on generalmanagement and specific other topics. The Board also audits
the execution of duties by directors, including the status ofinternal control systems. To ensure the effectiveness of audits
by corporate auditors, in September 2006 the Company
established the Corporate Auditors Office. Staff are assigned
to this office to assist the corporate officers in their duties.
During FY2006, the Board of Corporate Auditors met 14
times, including two extraordinary meetings. The rate ofattendance by outside corporate auditors was 97%. The
Board of Corporate Auditors plans to meet 12 times in
FY2007. The rate of attendance of outside corporate auditors
at Board of Directors meetings was 93%.
LAWSON recognizes the importance of compliance withlaws and regulations and of CSR and accordingly has

Its nationwide scale of business in the convenience store industry
and operation of many several different store types put LAWSON
into contact with a host of companies of different sizes thatprovide products and services. We are also required to comply
with numerous laws and regulations, and we run a variety of risks
if we do not comply appropriately.
For this reason and to ensure sound and sustained
corporate development, we have created internal control
systems. Recognizing the importance of compliance from amanagement perspective, in February 2006 the Board of
Directors formulated the Basic Policy for the FY2006
Establishment of Internal Control Systems. Based on the statusof this system, the Board further established and has begun
implementing the Basic Policy for the FY2007 Establishment ofInternal Control Systems. This policy is described on our
website. In line with this policy, we aim to conduct our businessin ways that are operationally appropriate, efficient and effective
and enhance our corporate value.

n LAWSON Internal Control System
Internal control audits
Regular meetings

Establishment of CCO Office

Board of Directors

Set internal control
system policy

Board of Corporate Auditors
Reports on important issues
President and CEO

Corporate Auditors OfficeMutual intent/
information exchange

CCO
Control
Compliance and Risk
Management Committee■■

General managers Branch managers
of divisions

Ordinary precautions
Emergency precautions

Control

Monitoring

Department managers

Affiliated companies

Managers

Managers
Control

Close communications

Leaders
Monitoring

Training/
supportManagers

Monitoring

Franchised stores

ControlInternal audit & correction officeInternal control monitoring

Basic management policy

CCO OfficeCompliance managers

Monitoring

On March 1, 2006, LAWSON appointed a chiefcompliance officer (CCO), who has overall
responsibility for compliance promotion and risk
management. The CCO leads the CCO Office,which is composed of specialized staff, including
compliance representatives from each division andthe seven branch offices.
To ensure practical results in compliance withlaws and regulations and management of risk, theCCO convenes Compliance and Risk Management
Committee meetings once a month to tackle
current problems and implement systems to preempt problematic incidents.

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

LAWSON’s Compliance Systemn LAWSON Compliance and Risk
Management System
Corporate Philosophy/Code of Ethics/
Standard of Conduct

Policy revisions and amendments

Confirmation and monitoring of policy progress

We perform compliance surveys involving all Company executives,
employees, dispatched staff and part-time employees todetermine the level of understanding of our compliance systems.
Results of our third survey, conducted in FY2006, indicated abetter understanding of our corporate philosophy and code of
conduct than did the second survey’s showings. We also
confirmed that an emergency system had been established.
However, survey respondents indicated issues with taking
planned vacation time and concerning their workloads. Survey
results also indicated misgivings concerning personal information,
despite a high level of awareness of measures for handling suchinformation.
We plan to continue performing such surveys. By doing so,
we aim to confirm that improvements have been made to areas
indicated previously and to raise ethical awareness levels.

Divisional development
activities by promoter

Emergency preparation
and response

Compliance and risk management training

Compliance Survey

Hotline establishment

Business execution based on standards of conduct

Setting compliance policy for each division

The Company adheres to the LAWSON Code of Ethics to ensure compliance tolaws, regulations and social standards and to ensure a robust corporate structurethat is fortified against unexpected occurrences. Based on this code, we expect
every employee to strive to act with consideration for others. Through its
compliance system, LAWSON maintains and enforces regulations relating tocompliance and holds periodic training sessions. The LAWSON Code of Ethics
was revised in March 2006, reflecting the results of a survey conducted in January
2006 targeting all dispatched, part-time and other employees. We have also
issued a Compliance Handbook, with commentary on business-related laws andregulations and questions and answers compiled by job function as part of ourdrive to raise understanding of compliancethroughout our business.
In addition to creating a hotline to our
Legal Department, we have formed acompliance system so that concerned parties
can confer with outside parties, such as legal
firms, about compliance issues.

Revision following an
emergency

Education and trainingn Survey Results
Can explain corporate philosophy

3
Promote realization of “The ‘Hot’
Station in the Neighborhood”

2
1

Can explain our codeof conduct0-1-2
Understand emergency
response methods-3

Employ an emergency
response system
Note: Closer to 3 is positive;
closer to -3 is negative.

Recognize ourcode of ethics

Are proud of their work

Enjoy a sense of solidarity

6

Risk Management System
From the standpoint of our corporate philosophy, there are three major risk areas: product quality and hygiene management (page38), information security and disaster and theft. LAWSON has a system in place for the swift resolution of problems in case of
emergency.
In normal circumstances, the Compliance and Risk Management Committee convenes once a month to minimize risk. The
committee oversees an organization that defines potential risks, sets clear priorities and promotes prevention measures. We havealso established an emergency risk response council to contain risk and limit its damage. A Risk Investigation and Prevention
Committee has been established to cover the eventuality of risk escalation, and this committee conducts analysis of the causes,
ensures restoration of trust and prevents recurrence. In this manner, as well as through training and employee feedback, LAWSON
strives to raise its risk management capabilities.

Information Security
In anticipation of the full enforcement of the Private Information
Protection Law in Japan, in March 2005 LAWSON created a
Private Information Protection Policy. Through this in-housedirective, we enact all regulations and standards necessary for
private information protection. This policy is reflected in store
manuals to ensure it is manifest in the understanding andactions of employees. We also distribute to all stores andsupervisors a compilation of hypothetical cases involving
misclaims and corresponding laws to raise their awarenessand assist them in responding appropriately in such cases. At
headquarters, staff use the LAWSON Office Security Rules forthe same functions.
We check our information management system byprocesses of self-examination and internal auditing. LAWSON
is striving to tighten its information security system throughvarious other measures,
including thorough rules foruse, storage and disposal ofprivate information and information security training.

areas and the rapid recovery of stores if they are hit by adisaster.
To ensure that all employees are fully aware of the
behaviors expected of them in times of disaster, we conductdisaster response training programs semiannually. The
companywide disaster response training we held in
September 2006 addressed safety concerns and included
training on the use of satellite mobile phones. The training washeld on a Saturday to emphasize the use of communication
systems that would ensure swift response even at a time whenfew people were in their offices. We will take advantage oflessons learned through these training activities to reinforce
our disaster response measures.

Disaster response training

Store Crime-Prevention Measures

Information security manual for headquarters personnel

Disaster Response
LAWSON strives to ensure that if a major disaster hits, itsstores will continue to operate, serving as a lifeline to regions
affected by the calamity. To this end, LAWSON’s headquarters
divisions have compiled a disaster response manual in threeparts: initial operation, disaster response and recovery
response. We have included portions of this manual in various
store manuals and established a Disaster Response Office toensure quick response in the event of a large-scale disaster.
We periodically review our emergency response systems andmanuals to ensure the ongoing operation of stores in affected

7

To prevent crime at stores, LAWSON has established a crimeprevention system and conducts various activities. We haveintroduced and promote pigment-filled anticrime color balls,
dispatch headquarters staff to make late-night rounds ofstores, participate with local police departments in robbery
simulation exercises and adhere to the “Five Principles of
Crime Prevention.”

Crime-prevention training

Special Feature

Eliminating Those“MOTTAINAI!” Moments
LAWSON, Ministry of the Environment Sign Environmental
Protection Agreement
On September 12, 2006, LAWSON signed an agreement withJapan’s Ministry of the Environment on joint business-government
initiatives conducted jointly by business and the state to protect theenvironment. The first such accord involving Japan’s private sector,
the voluntary agreement promotes initiatives that evoke the sentiment
expressed in Japanese as “MOTTAINAI!” or, “It’s such a waste!”
Drawing on this “waste-not, want-not” mentality, we aim to build asustainable economy and in the process, help reduce global warming.
By signing this agreement, LAWSON has set an aggressive goal.
We aim to reduce the amount of materials used in plastic shoppingbags at LAWSON stores by 20% of FY2005 levels by FY2008,
promote energy and resource conservation initiatives, plant trees andgenerally reduce the global warming impact of our activities. The
ministry will provide information on and promotional support of such
efforts through its website.
Of course, on its own a single business can make only limited
headway toward environmental objectives. To really push things
forward, we need the stalwart support of our customers. LAWSON
believes that reducing the use of plastic shopping bags anddisposable chopsticks is an environmental initiative that can be
conducted as part of regular business operations and in cooperation
with customers. Accordingly, we have launched a “Bring Your Own*”
movement. We have designed a “Convenience Store Eco-Bag” andenvironmentally friendly chopsticks for customers to carry with them.
Responding to popular demand, we have also mounted initiatives toreduce the amount of food products going to waste, in compliancewith the Food Product Recycling Law.
Through such efforts, LAWSON is helping to build a sustainableeconomy and turning into reality its corporate philosophy of“Happiness and Harmony in Our Community.”

Former Minister of the Environment Yuriko Koike and Takeshi Niinami,
LAWSON president and CEO“ECO FIRST” mark, signifying
LAWSON’s agreement with Japan’s
Ministry of the Environment

Storefront poster explaining
efforts to reduce use of plastic
shopping bags and chopsticks

Key Terms and Conditions
Agreement on Environmental Protection Initiatives by LAWSON and the Ministry of theEnvironment
u LAWSON to reduce plastic shopping bag materials used by 20% of FY2005 levels by FY2008
l Offer discounts and membership points on a trial basis to customers who do not
require shopping bagsl Create reusable bags that are easy to carry and use at convenience storesu LAWSON to promote energy conservation and tree planting to reduce global warmingu LAWSON to receive from the Ministry of the Environment information needed to conduct
these initiatives
u Ministry of the Environment to provide website publicity and other support for LAWSON’s
environmental protection initiatives
Environmental agreement* The ecology-focused “Bring Your Own” campaign encourages shoppers to bring theirown reusable shopping bags and chopsticks with them, reducing the use of
disposable items.

8

1

LAWSON’s “Bring Your Own” Initiative with Customer Cooperation

LAWSON aims to reduce plastic shopping
bag use by promoting reusable bags.
We ask our customers to cooperate in efforts to reduce plastic shopping bag use by raising
their awareness and promoting the “Convenience Store Eco-Bag.”

Plastic Shopping Bag Use
In addition to encouraging customers who typically makesmall purchases to consider whether bags are reallynecessary, LAWSON is working to reduce plastic shopping
bag use through such initiatives as the Environmentally
Conscious Shopping Campaign, conducted with prefecturaland municipal governments across the country.
LAWSON’s agreement with the Ministry of theEnvironment states the aim of reducing its plastic shopping
bag use by 20% of FY2005 levels by FY2008, with a target of
600kg each year per store, down from 750kg. In FY2006,
LAWSON put up posters and encouraged customers to use

fewer plastic shopping bags. We also began tracking plastic
shopping bag use in the months of June and October, aiming
to reduce usage. We confirmed a 19.4% reduction against
FY2000 levels in plastic shopping bag use per store. Totaluse dropped 10.9% from FY2000 levels, equivalent toconserving 284,000 liters of oil, nearly 1,800 barrels.
Building on this momentum and pressing onward toward
our target, we are expanding the “Bring Your Own” initiativewith our customers. We are stepping up the campaign byredoubling store efforts to attract customer attention to this
topic and developing the “Convenience Store Eco-Bag.”n Weight of Plastic Shopping Bags Used Per Storen Total Weight of Bags Used

(kg)

(t)

1,000

7,000

900
800

916

6,778

878
744

748

725

8,500

6,746

8,204
6,163

6,000

798

Number of stores

7,063

Target5,918 6,135 6,037 8,000
7,949

600kg

600

8,325

5,000

7,709 7,680 7,723

7,500

7,531
0

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 (Fiscal Year)02000 2001 2002 2003 2004 2005 2006 (Fiscal Year)

Note: The number of stores is calculated by taking openings and closures during a period torepresent a half-year of operation.

9

Creating the “Convenience Store Eco-Bag”
When store employees ask customers whether they requirea bag for their purchases, a growing number of people—
especially those who purchase few items—decide that bags
are not necessary. For people who purchase larger
quantities, we have begun developing a bag that customers
can bring with them.
Based on customer opinions and suggestions, we havedesigned the Convenience Store Eco-Bag to maximize
practicality. Boxed lunches, which are frequent convenience
store purchases, fit snugly into the bag. Convenient pockets
in the side of the bag hold PET bottles firmly in place. The
bag folds to a compact size that fits into a pocket and is outof the way.

To get into circulation as many Convenience Store EcoBags as possible, we have launched the “Bring Your Own”
initiative to let customers experience firsthand the usefulnessof these bags. Results exceeded expectations when we
began distributing the bags on March 28, 2007, at LAWSON
stores in Tokyo’s Kasumigaseki government district andOtemachi financial district. Encouraged by a response thatexceeded our initial expectations, we expanded the programin May 2007. As of June 30, 2007, we had distributed some
146,000 bags. We have also published the design andspecifications of the Convenience Store Eco-Bag, and aresoliciting participation from like-minded companies andorganizations nationwide to promote further adoption of the“Bring Your Own” concept.

Folds to fit easily into a pocket

The NATURAL LAWSON New Tokyo Building store

A perfect fit for
PET bottles andboxed lunches

P
E
T
b
o
t
t
l
e

Boxed
lunch

ag
Small B

Sales of NATURAL LAWSON Original Eco Bags

Large BagOn April 17, 2007, we began marketing NATURAL LAWSON Original Eco Bags in limited
quantities. Offered in large and small sizes, the bags feature dog and cat illustrations by
Setsu Asakura, a stage artist named a “person of cultural merits” in 2006. NATURALLAWSON stores around Japan sold 4,000 of these popular bags.

NATURAL LAWSON Original Eco-Bags

Using “Bring Your Own” Bags to Aid Families with Children
HAPPY LAWSON stores, which specifically encourage patronage by families raisingchildren, began selling an original bag on April 29, 2007. The bag is large enough to carry
the many items required by families with children and folds into a small package when not inuse. At the same time, we introduced a mini-bag for children. The bag is illustrated by theworks of Dick Bruna, creator of Miffy, a popular children’s character.

HAPPY LAWSON original bags

Giving away Original “My Furoshiki” Wrapping Cloths
Through random drawings, LAWSON gave away 100 original “My Furoshiki”
traditional wrapping cloths each month from August 2006 to January 2007 topeople who applied to participate in the Environmental and Social
Contribution Course of the LAWSON PASS membership card. Made ofrecycled PET material, the My Furoshiki wrapping cloths come in two designs
and include instructions for use. Promoting the use of furoshiki (wrapping
cloths) is another way in which LAWSON is working to reduce plastic
shopping bag use.

My Furoshiki

10

2

LAWSON’s “Bring Your Own” Initiative with Customer Cooperation

LAWSON works to reduce use of disposable
chopsticks through “Bring Your Own”
chopsticks campaign.
To help preserve forests in Japan and overseas, LAWSON is distributing “Bring Your Own”
chopsticks to cut down on disposable chopsticks in cooperation with its customers.

disposable chopstick usage by 20% compared with
FY2006. This would amount to approximately 100 million
fewer sets of chopsticks used, a reduction of approximately
500 tons. Achieving this goal would save approximately 54
hectares of forest—some 11 times the area of the Tokyo
Dome—each year.
We continue to ask customers whether they needchopsticks with their purchases, and bring this matter tocustomers’ attention through posters and other notices. As
a result, per store chopstick usage decreased approximately
0.8% in FY2006.
In April 2007, LAWSON started the “Bring Your Own”
chopsticks campaign. By popularizing the use of thesechopsticks, we aim to reduce the use of disposable
chopsticks.

Chopstick Use
LAWSON strives to use fewer plastic shopping bags andchopsticks by asking customers whether they want these
items and through its “Bring Your Own” initiative. Currently,
chopsticks distributed with purchases of boxed lunches,side dishes and other food items amount to approximately
60,000 sets per store per year, or 500 million sets across all
LAWSON stores. This amount corresponds to 1.7% ofchopsticks used in Japan. Recently, more customers havecommented that they would like to be asked whether theyneed chopsticks with their purchases. It is important to saveresources and reduce usage by avoiding unnecessary
distribution.
LAWSON has set a goal for fiscal 2009 to decreasen Disposable Chopstick Usage■ Thousands of sets

500,000

474,433(2,372t)492,247(2,461t)n Per Store Use of Disposable Chopsticks
495,428(2,477t)

Number of stores■ Sets of chopsticks

8,500

60,0008,000

55,0000059,68560,001

2004

2005

59,514

8,325
8,204

Target

400 million
400,000

7,949

0
2004

2005

2006

2009 (Fiscal Year)

Note: The number of stores is calculated by taking openings and closures during a period to represent a half-year ofoperation.

11

2006 (Fiscal Year)

“Bring Your Own” Chopsticks
Increasingly Popular
LAWSON launched its “Bring Your Own” chopsticks
campaign in April 2007 to cut back on disposable
chopsticks. The campaign aims to curtail chopstick usage
by distributing portable “Bring Your Own” chopsticks, which
can be carried around and used at any time.
These portable chopsticks are made from wood of thedomestic ash that fails to pass standards for use in baseballbats. Ash is considered an ideal material for baseball bats,
but only knot-free wood with a smooth grain may be used
for bats used by professional baseball players. In
cooperation with MIZUNO TECHNICS CORPORATION andOAK VILLAGE Co., Ltd., we have produced “Bring Your
Own” chopsticks from ash wood that did not meet baseballbat production standards.
During the three-month period from April to June 2007,
portable “Bring Your Own” chopsticks were given to the first
1,000 customers each month (3,000 in total), through use of
LAWSON PASS and MY LAWSON POINT. We are working
with cooperating companies to spread portable chopstick
usage. OAK VILLAGE and other companies are selling the
products directly, and we have given sets to 1,000 membersof the Tokyo Yakult Swallows (professional baseball team)
fan club.
LAWSON Headquarters also donates ¥100 to the
National Land Afforestation Promotion Organization for each
set of “Bring Your Own” chopsticks. The ash grows slowly
and has not experienced significant replanting, making its
protection and nurturing a matter of urgency. We support

the development of “Baseball Bat Forest” and will work toestablish a bat recycling system, which will also help ensure
the stable long-term supply of high-quality wooden bats.

At a press conference, LAWSON president and CEO Takeshi Niinami, Tokyo
Yakult Swallows professional baseball player Shinya Miyamoto, Mizuno Technics
Co. Pro Bat Meister Isokazu Kubota and Oak Village president Tadashi Inamoto
call for support.

Wood not approvedfor baseball bats
“Bring Your Own”
chopsticks with bat
and ballaccessories

Using Wood Produced by Thinning Japanese Forests
The Japanese government aims toachieve a 3.8% (initially 3.9%)
reduction in emissions of CO 2 andother greenhouse gases—two-thirdsof the 6% reduction required by the
Kyoto Protocol—through additional
CO2 absorbed through better forest
B-(2)-060001
management. To manage forest
resources effectively, a forestry cycle
must be established that makes plentiful use of Japanese
lumber products in familiar lifestyle settings and uses trees
intelligently through planting, growing and harvesting. The
Forestry Agency is advancing activities to promote the active
use of products made from Japanese materials in everyday life
and the cultivation of forestry initiatives. Within these activities,
the agency is advocating a lifestyle called “3.9 GREENSTYLE.”LAWSON sympathizes with this cause and makes active
use of Japanese lumber to preserve forests and promote CO2
absorption. Examples include providing chopsticks made fromJapanese cedar scraps at NATURAL LAWSON and using
forestry undergrowth clearance in business reports and otherbooklets published by headquarters.
As part of these efforts, in February 2007 LAWSON assistedwith the Green Eco Project, an educational program at Shoin
High School in Kobe, Hyogo Prefecture. In the program, 2,400
sets of eco-chopsticks—made of undergrowth cleared fromJapanese forests—were handed over to customers at each of
five LAWSON stores in Kobe, for a total of 12,000 sets.
LAWSON cooperated with this program at the request ofparticipating third-year students of Shoin High School, finding
the program a good match for its activities to promote Japanesematerials usage.

NATURAL LAWSON’s chopsticks made from Japanese cedar lumber scraps

Envelope enclosing a set of eco-chopsticks

123

Creating a Sustainable Society

LAWSON aims to completely eliminate
waste, promote food product recycling
and reduce food product refuse.
We are committed to eliminating waste at the production and sales stages,
promoting food product recycling and reducing food product refuse.

RecycleCurtail
generation

Curtail
generation

Waste oils
RecycleProduction

Distribution

Sales

Food products

Organic waste
processors

Reducewaste

Reducing Food Product Waste throughEffective Resource Use
LAWSON strives to reduce food product waste by steadily
implementing an array of measures in the three-pronged
approach of curtailing waste generation, implementing
recycling and reducing waste volumes. The Food Product
Recycling Law*—which aims to limit food waste generation,
promote effective utilization of resources and create asustainable society—has entered its final year.
LAWSON’s food product recycling rate during March
2007 was 24.3%. Average rates during FY2006 were 36.3%
at directly managed stores and 18.2% in total. In FY2007,
we will aim to raise the average for all stores above 25% andachieve higher than 28% for February 2008. We are
increasing the number of participating stores to help achieve
this.

Curtailing Waste Generationl Efforts at the Production StageIn the production stages of rice-related and other products,
LAWSON has introduced a production treatment
management system for efficient production planning toensure consistent product quality at rice product plants
nationwide and avoid unneeded output. (Please refer topage 38 for details on production treatment management
systems.)
This system has improved product consistency andreduced raw material cost ratios and food product waste. At
some rice product plants, the system cut waste by 40% andimproved the ratio of production volume accounted for bywaste by one percentage point.

*The Food Product Recycling Law refers to the Law Concerning Reuse, etc. of Food Product Recycling
Resources, which required food product recycling levels to reach at least 20% by fiscal 2006.

n Food Product Recycling Rate(%)

FY2006*

FY2007 (Target)

All stores

Directly
managed stores

All stores

Directly
managed stores

Waste oil recycling

12.3

12.7

14.6

14.5

Food (animal feed and fertilizer)

5.8

22.8

10.0

41.0

Organic waste processors

0.1

0.8

0.4

6.5

Total

18.2

36.3

25.0

62.0

*Set to coincide with the Japanese fiscal year (FY2006: April 1, 2006 to March 31, 2007)13

Raw material weighing at rice production facility
reduces waste.

l Store Initiatives
Each store has a store
computer that is used to
track sales trends based on
the day of the week, theweather, regional activities
and other factors before
orders are placed. This
process is one way we
reduce waste caused byover ordering.

The food product recycling system is possible becauseof cooperation by collection companies, processing plants,
feedlots and agriculturalists. This system is one example of
how LAWSON works with its business partners andmembers of the communities in which it operates to form
effective cycles of resource use.

Using a store computer to check productlineups and order new items

LAWSON store

Animal feed production plant*

Feedlots, feed
manufacturers

Sale and delivery

Shipping

BaggingDrying

Sorting

LAWSON sets voluntary sell-by dates andtimes to ensure that customers can enjoy its
products safely. All items that pass their sellby dates and times are removed from store
shelves. As one aspect of our corporatesocial responsibilities, in June 2006 webegan putting in place measures to use thisleftover food more effectively.
Through the cooperation of the city of
Yokohama, the Sanagitachi Project, a nonprofit
organization (NPO), delivers inexpensive andnutritionally balanced meals to needy people in
Yokohama’s Kotobuki-cho district through the
Sanagi Kitchen. LAWSON stores in the area
provide this NPO with breads, boxed lunches
and other products that have passed their sellby dates and times, but remain safe toconsume. In December 2006, we increased
our support of this NPO by providing foods left
over at rice product plants.

Collection
company

Collection and transportation

In January 2006, LAWSON began introducing measures torecycle waste oil after being used in stores to prepare suchproducts as Kara-age Kun fried chicken nuggets. As of
March 31, 2007, approximately 7,300 stores recycled theirwaste oil. The waste oil is recovered by collection companies
and recycled and treated at a recycling plant to produce
animal feed, construction coatings, alternative fuel for public
buses, additive-free soap and other products.
Around Japan, approximately 900 LAWSON stores
currently recycle food waste into animal feed and fertilizer.
This waste includes such items as boxed lunches and side
dishes that have passed their sell-by dates. Some stores in
the Tokyo metropolitan region, as well as the cities of
Yokohama, Kawasaki and Kyoto,turn this waste into hog feed.
Similar waste in the cities ofKumamoto and Nagoya areconverted into fertilizer. For
recycling into animal feed,collection companies pick up foodwaste from stores for delivery toplants, where it is sorted, groundand dried before being used in Food processed into animal feed
animal feed.

Separation

Recycling

Effective Uses of Leftover Foodn Recycling Food into Animal Feed

* Animal feed production plant: Agritech Marketing Co., Ltd.

Collection and transportation
processes

Sorting process

Reducing Waste
At 62 directly managed stores (as of March 31, 2007)
around Japan, we have introduced organic waste
processors to reduce the amount of food waste that stores
generate by drying the waste prior to transport.

Surmounting the Obstacles, One at a Time
Yoshimitsu Okano, NPO Sanagitachi ProjectBecause nothing like this had everBreads, boxed lunches
been done before, it was a trial-andand other products Leftover ingredients
error process at first. We had to
LAWSON stores
Rice product plants
make absolutely certain that products
were consumed while they were stillsafe to eat. We also needed to
Sanagi Kitchen
confirm that people would show up
Food
products
offered to customers
to eat the foods that were provided.
while they remain safe to consume
After a few false starts, we finallyfound a process that worked.
Once LAWSON began providing
food products, the number of meals
we are able to offer rose substantially, andthe people who came to us are very
grateful. We also received newspaper
and television coverage that mademore people aware of the plight ofneedy people in Kotobuki-cho,
helping to support their efforts tobecome independent. We lookforward to LAWSON’s continued Sanagi Kitchen members, from left: Yoshimitsu
cooperation.
Okano, Hideo Iwasawa and Imari Tsuchiya

14

FY2006 Activity Report
LAWSON and Human Relations
To achieve our corporate philosophy of “Happiness and Harmony in Our Community,” we conduct our activities whilevisualizing our operations from the viewpoint of others and exchanging opinions with the people we embrace—
customers, franchise owners, store crews*, business partners, shareholders and other investors—in addition toconsidering society and the global environment. This strategy ensures that we share the enjoyment generated by ouractivities and bring happiness to all.
*Store crews are part-time workers.

Customers
Each year, LAWSON serves approximately 2.5 billion
customers, making a daily average of 813 visits per
store. Accordingly, we believe that our stores must be
enjoyable places for people to visit and meet theneeds of the community by provide a lineup of freshand stimulating products and services, showcased inan agreeable atmosphere. This combination makes
our stores a much-loved drop-in spot.

Franchise Owners
and Store Crews

Shareholders and Investors
LAWSON was listed on the first sections of the Tokyo
Stock Exchange and the Osaka Securities Exchange in
2000. Our shareholders numbered 40,904 as of February
28, 2007. LAWSON aims to disclose information fairly
and swiftly, and be a corporation with foresight, growthand stability, striking an appropriate balance between
pursuit of profits and contribution to society. This meansthat through long-termholding of LAWSON stock,shareholders make anindirect contribution tosociety and help toachieve goals for the
future.

LAWSON stores are managed byapproximately 7,000 franchise owners
and who employ around 120,000 store
crew members. Our franchise-based
store-development approach makes
store owners highly valued business
partners for us. The store crews are also
indispensable to the running of LAWSON stores,
carrying out the sales,orders and stocking ofproducts, in addition tocleaning, administrationand other operations.
LAWSON provides its store
crews with a workplacethat fosters personal
growth, where they canwork with enjoyment, prideand fulfillment.

Business
Partners

Employees
LAWSON employs a staff of
3,614, who form the core topropel companywide growth
and realize its corporate
philosophy. LAWSON evaluates
the actions and performance of
its employees, individually
and as a team, in their drive
toward common objectives.
We strive for a workplacethat imbues employees witha sense of pride and social
purpose.

15

Society

Environment

LAWSON is a truly national chain—thefirst convenience store to open stores inall 47 prefectures in Japan. We maintain aclose relationship with all the communities
where we operate. LAWSON, as a national
chain, honors all laws and standards and actswith consideration for the local environment topromote safety and security throughout theneighborhoods in which it operates.

LAWSON consumes electricity, oil, waterand other resources while conducting its
operations, generating approximately
720,000 tons per year of CO 2 . Our
initiatives to combat global warming
include the introduction of energy-saving
equipment, conservation of resources andthe reduction of waste.

LAWSON depends on products,
materials and services fromapproximately 2,200 business
partners, playing a major role inensuring product quality andservice delivery for customers.
LAWSON aims to cultivate
relations with business partners
that anticipate local needs andshare our innovative ideas. Such
relationships can ensure mutual
growth and realize joint dreams.

LAWSON Nurturing the Environment
LAWSON places a high management priority on efforts to reduce its impact on
the global environment and help create a sustainable society. Accordingly, manyof our corporate activities are designed toward these objectives.

LAWSON Environmental Policy
Fundamental Philosophy
LAWSON believes in operating stores that are friendly topeople and the environment. To ensure the health of theenvironment that we will pass on to future generations, weincorporate environmental consideration into all our actions,seek to operate in a sustainable manner that is in harmony
with our environment and participate actively in social
contribution activities.

Policies(1) Provide information on safe and secure products and services,and continuously pursue activities that reduce our burden on
the environment.
(2) Based on environmental evaluations of our operations,products and services, set environmental goals and targets,strive to continuously improve them and prevent pollution.
(3) Respect all laws and regulations concerning environmental
preservation activities and improve our environmental
management system.
(4) Strive to reduce environmental emissions and pollutants byconserving energy in our daily operations, conserving
resources, minimizing waste and recycling.
(5) Promote regional greening and beautification by participating inand supporting the environmental preservation and social
contribution initiatives of municipal bodies.
(6) Raise awareness of environmental protection throughenvironmental education and communications.

n Environmental Management System
8,565 stores throughout Japan (franchise owners, store managers, store crews)
Store environmental auditors
Nationwide branches and offices
Eco-leaders• Internal Audit & Collection Office• CIO Office• IT Office• Quality Control Office• General Affairs Office• CCO Office• CSR Promotion Office• On-Site Improvement Office• Human Resources Office• Corporate Communications Office• Management Services Office• Finance & Accounting Office• Corporate Planning Office• Next-Generation Business
Development Division• Corporate Sales Division• Development Division• Operations Planning Division• Marketing Office• Service Division• Merchandise & Logistics Division

Environmental Management Office
Chief Environmental Officer
Management Council
President & CEO

As of March 1, 2007

System to Promote Environmental Activities
Environmental Management System Activities
LAWSON conducts efficient and effective activities, which it
strives to improve and upgrade, in accordance with its
Environmental Policy. To this end, an Environmental
Management System has been in effect in all LAWSON stores
since December 1998, which have been awarded ISO14001
certification. To ensure continual improvement, ourEnvironmental Management System operates through a cycleof Plan > Do > Check > Action.

Environmental Education and Training
LAWSON conducts various types of environmental educationand training and in-house promotion activities to ensure that all
staff at stores and headquarters understand environmental
issues and the Company’s environmental preservation
activities and act in an environmentally appropriate manner.
All employees are required to undergo generalenvironmental training once a year. The theme for the FY2006
program was “LAWSON: The Tasks Ahead.” To raise
effectiveness of our environmental education, we provide thistraining through e-learning, via personal computer. Additional
Group training is provided to staff with responsibilities indepartments that have particular impact on the environment,such as product development and store construction.
Environmental training is scheduled so that franchiseowners can participate at timesof store openings. In addition,
headquarters circulates inhouse publications and promotional materials to shareenvironmental knowledge andinformation.
To ensure understanding of
our environmental preservation
measures by as many people
as possible, we issue environmental bulletins and promulgate
information on our homepage
May 2006 LAWSON Green Fundand through advertisements.
advertisement in Nihon Keizai
Shimbun newspaper

16Measures to Prevent Global Warming
The Increasing Seriousness of Global Warming

Curtailing CO2 Emissions

The recent documentary movie An Inconvenient Truth warnedof the many ways in which a ongoing global warming-driven byrising emissions of such greenhouse gases as CO2—could
impact the lives of people around the world. In a bid to stop
global warming, Japan has signed the Kyoto Protocol,
promising to reduce greenhouse gas emissions by 6% of 1990
levels during the period from 2008 through 2012. In fact,
though, Japanese greenhouse emissions in 2005 were 7.8%
higher than in 1990, highlighting the need to step up global
warming efforts.

From FY2007, we will accelerate the introduction of energysaving equipment in stores, as they are the source of majorityof LAWSON’s CO2 emissions and offer the best opportunity to
reduce air pollution. Next, we will work to improve the fuelefficiency of our logistics operations and in our vehicles.
Among our other efforts to combat global warming, we willcontinue introducing various energy-reduction measures, suchas working to curtail usage of shopping bags and disposable
chopsticks and making packaging materials thinner. LAWSON
is also launching measures to reduce overall waste byrecycling food waste. (Shopping bags, disposable chopsticks
and recycling are discussed on pages 8–14.)
We are active participants in Team Minus 6%, which
represents a pulling together of all members of society. In
addition to corporate efforts that encourage our customers
and employees to each save one kilogram of CO2 per day, weare promoting individual lifestyle choices oriented towardsaving energy and resources.
Through the combination of these efforts, in FY2007 we
aim to achieve a level of emissions that is 23.8% lower than
our FY1990 level.

CO2 Emission Ratios
In FY2006, LAWSON’s CO 2 emissions were equivalent to718,398 tons of CO2. Store electricity use accounted for morethan 80% of this amount. Unit CO2 emissions* in FY2006 were
22.8% lower than in FY1990. The recent aggressive
introduction of energy-saving equipment, efforts to reduce
emissions through ongoing improvements in the efficiency oflogistics operations. However, the introduction of fast-foodshowcases and increases in other sales-oriented equipment
resulted in a slight increase against our FY2005 levels.
* Unit CO2 emissions: floor space x CO2 emissions per hour of operation(kg of CO2/m2 h)

CO2 Reduction Measures: FY2007 Targets(1) Reduce the amount of electricity that stores consume
1. Introduce Energy-Saver Pack integrated cooling and ventilationn LAWSON CO2 Emission Volumes (FY2006)
Waste (burnable)

systems at new stores, bringing the total to 1,605 units
2. Introduce Eco-Pack units at existing stores, raising the total
to 730 units

6.4%

Water supply 0.4%

Company-ownedcars (gasoline)

3. Introduce automatically adjustable lighting system
4. Introduce total heat exchangers
Note: For details on energy-saving equipment, refer to page 18.

0.7%
Delivery trucks (diesel, other)(2) Improve fuel efficiency of logistics operations
1. Reduce number of product deliveries by promoting joint

10.6%

deliveries to stores

Total amount

718,398

2. Introduce new traffic management system

Tons of CO2

3. Bring cumulative total of low-pollution vehicles to 82
4. Promote eco-driving

Electricity

81.9%(3) Improve fuel efficiency of Company-owned cars
Shift to hybrid vehicles and vehicles with automatic idling

cutoff (cumulative: 1,227 vehicles)
Note: Measures concerning logistics and Company-owned cars aredescribed on page 19.

n Unit CO2 Emissions(g)
80

TargetCompared with FY1990

23.8%

78.0

reduction

57.5

60

57.9

60.2

59.4

This “Team Minus 6%” mark designates LAWSON as a member of the national
campaign to fight global warming. This campaign was launched by Japan’s Ministryof the Environment to achieve Japan’s commitments under the Kyoto Protocol.

40
Comparedwith FY1990
22.8% reduction

20
0
1990

17

2004

2005

2006

2007 (Fiscal Year)
TargetThis mark advises each person to save one kilogram of CO2 per day.

Energy-Saving Systems

Adjustable Lighting Systems

Stores account for approximately 80% of LAWSON’s energy
consumption. We are introducing new energy-saving systems,
spanning chilling and refrigeration units and air conditioning, toreduce power use by stores. Our new stores are equippedwith an Energy-Saver Pack, comprising an integrated coolingand ventilation system. Consolidating the outside units forchilling, refrigeration and air conditioning, which areconventionally controlled separately, boosts efficiency. In
existing stores, we are installing Eco-Pack automatic control
systems for chilling and air conditioning units and anticondensation heaters that monitor exterior unit gas pressure.
In FY2006, such measures reduced CO 2 emissions
approximately 7,300 tons. We expect a further reduction, toapproximately 13,000 tons of CO2, in FY2007.
To facilitate real-time inspection of store electricity use andeffectiveness of energy-saving equipment, we have introduced
an Energy-Saver Eco Monitor to automatically gather
measured data from each store. We are linking this to
reduction of energy consumption and CO2 emissions.

Automatic adjustable lighting systems provide in-store
illumination of 1,000 lux. This level of lighting makes products
easy to see. Sensors control lighting in areas near windows,
making efficient use of natural sunlight and reducing electricity
consumption by around 30%.
We also use reflectors in our store signage, achieving
amplified lighting with half the number of fluorescent lights
needed before.

LAWSON Nurturing the Environment

Measures to Curtail Energy Consumption in Stores

Automatic adjustable lighting
systemReduced lighting requirements on store signage

n Introduction of Automatic Adjustable Lighting Systems (Cumulative)
Energy-Saver Pack outdoor unit for new stores

Number of stores
4,000
3,155

3,000
2,456
2,000
1,000

1,786
1,094

0
2003

2004

2005

2006 (Fiscal Year)

Total Enthalpy Heat Exchangers
Eco-Pack for existing storesn Results of Introducing Energy-Saving Equipment

Energy-Saver Pack
Eco-Pack
Total

No. of stores (cumulative)

CO2 emission effect (tons)

FY2006

FY2007 (forecast)

FY2006

FY2007 (forecast)

1,105

1,605

6,273

10,705

639

730

1,057

2,163

1,744

2,335

7,330

12,868LAWSON is promoting the introduction of total heat exchangers,which were employed in 627 stores during FY2006, raising thetotal to 757 stores. These units only exhaust contaminated air
during the heat exchange process, efficiently recovering heat andhumidity through combined heating/cooling and returning it to thestore interior. Heat recovery is more than 70% higher than forconventional systems that only recover heat, and air conditioner
efficiency is also enhanced.
We are also restricting contamination of the outside air withdust and other impurities through positive pressure control in all
stores.

18

Initiatives to Conserve Energy and Reduce the Environmental
Footprint of Delivery Trucks and Company-Owned Cars
Promoting Joint Deliveries
We are promoting multidrop deliveries and revamping ourdelivery system to reduce the number of trucks that deliver to agiven store, thereby reducing our environmental footprint. Chilled
products* are further classified into rice-related products, which
are stored at 20°C, and dairy products, desserts and other items
that are stored at 10°C or below. We have partitioned the cargo
areas of delivery trucks into different zones to allow both types of
products to be transported in one vehicle.
Through this practice, as well as by reworking our sundry
item delivery schedules, we have cut average daily deliveries to
7.5 per day, from 16 in 1989. Moreover, we Target
continue to improvedelivery schedules and routes.

New Traffic Management System
All trucks that deliver chilled products* are mounted with atravel management system that links to a mobile
communications network. This configuration allows LAWSON
headquarters and distribution centers to monitor cargo
temperatures and arrival and delivery status in real time,
facilitating more accurate quality control. The system also
allows monitoring of driver safety, including overacceleration,
overbraking and speeding. In addition, it promotes travel
efficiency and is useful in checking whether trucks are being
shut off while idling, as leaving the engine running during
deliveries contributes to global warming and atmosphericpollution and wastes fuel.
In FY2006, as part of our ongoing effort to achieve greater
fuel efficiency, we installed on 80 vehicles driving recorders,which track driver performance, and conducted thoroughdriver training.
* Chilled products include rice and dairy products, as well as desserts.

Using LowPollution
Vehiclesfirst company in its industry to use delivery trucks powered bynatural gas. Leading our next-generation low-pollution vehicles
was the March 2004 introduction of a hybrid-fuel truck. As of
February 28, 2007, we operated 71 such low-pollution
vehicles and are reviewing trials of trucks running on biodiesel.

n Introduction of Low-Pollution Vehicles(Vehicles)

82

80
60

=Hybrid vehicles=Natural gas powered
vehicles

48

60

20

13

1

40
20

71

51

47

47

2004

2005

0
2006

2007 (Fiscal Year)
TargetOther Measures
LAWSON is developing cargo trucks with noise-reduction
features. For example, part of our fleet is equipped withpowered rear gates to minimize annoyance to customers andpeople who live and work along our routes during store
deliveries. In FY2006, we introduced 162 trucks with low-noise
powered rear gates, bringing this total to 723 vehicles.
In FY2005, we introduced ETC-system automatic toll-card
systems to our 1,663 Company-owned cars. This upgrade
helps reduce toll-gate traffic jams, lowers CO2 emissions andimproves fuel efficiency. We extended environmental measures
to all Company-owned cars (excluding four-wheel drives)
during FY2006, installing an automatic idling cutoff function
and converting tohybrid fuel use all
vehicles in our 1,281vehicle fleet.

To lower greenhousegas emissions andreduce its environmental footprint, in 1997
LAWSON became the
Natural gas powered vehicle

Company-owned car (hybrid vehicle)

Resource Conservation Initiatives
Packaging Considerations
LAWSON’s commitment to safety, security and health isevident in efforts to reduce levels of toxic emissions in the use
and production of packaging materials. Accordingly, we are
implementing measures to upgrade packaging materials andfacilities.
Currently, we use such environmentally conscious
materials as polypropylene and polyethylene to package riceand side dishes, and we promote the use of environmentallyfriendly film-printing processes using water-based inks.
We also focus on resource conservation in our packaging.
Increasingly, we use paper wrapping for rice balls, in addition19

n Packaging Weight(t) ■ Total weight

Weight per sheet (g)■ CO2 emissions

10

50,00040,00030,00041,638
6.16

41,576
5.81

39,6805.64

6
420,00010,0008

10,806

10,685

10,369

2
0

0
2005

2006

2007
Target(Fiscal Year)

In FY2007, LAWSON will continue developing thinner
packaging, as well as opting for lighter-weight plastic
packaging materials. Plans call for reducing packaging material
weight 3% and decreasing by 4.6% the CO2 emissions per
store from the incineration of this packaging through the April
2007 adoption of polylactic acid materials.

n Adopting Environmentally Friendly Polylactic Acid in Salad Packaging
LAWSON began packaging its salads in environmentally friendly containers made frompolylactic acid (PLA) on April 3, 2007. LAWSON stores throughout Japan use 14cm PLA
containers for three products, including tuna/corn and seaweed salads. PLA is abiodegradable substance made from corn and other vegetables. Unlike petroleumbased materials, PLA is carbon neutral, meaning that the amount of CO2 emitted duringincineration equals the amount absorbed when its source materials are grown, reducing
emissions over the product lifecycle. This nationwide PLA initiative is the first in theconvenience store industry and reduces CO2 emissions 870 tons, compared withconventional containers.

LAWSON Nurturing the Environment

to thinner film wrap. Since April 2006, we have shaved 25%
from the weight of sandwich wrapping film, by reducing
thickness from 40 microns to 30. These moves saved 120
tons of packaging materials and reduced CO2 emissions fromincineration of such packaging by 63 tons during FY2006.

Salad containers made with PLA

Reducing Waste
Waste Volumes

Clean Boxes

To reduce the amount of waste produced and promote
recycling, LAWSON conducts fact-finding surveys on thewaste that stores generate, actually sorting and weighing thisrefuse. A survey of 300 LAWSON stores in the Tokyo area thatbegan in April 2006 indicated average daily output of 58.3kg ofwaste per store. The largest contributors were burnable
materials, including wastepaper, wrapping paper, disposable
chopsticks, wood shavings and dead leaves, at 19.6kg,
followed by cardboard boxes for packaging, at 17.2kg, and11.0kg of food products.
Investigating Clean Box (trash can) storefront disposal
facilities showed a year-on-year increase in garbage volumes,
accounting for 28.5% of total waste output.

LAWSON places Clean Boxes (trash cans) outside stores tohelp keep surrounding neighborhoods clean. In response toincreasingly strict municipal regulations for the sorting of trash,
we amended the classifications of our Clean Boxes in February
2005. These facilities had been introduced at 3,365 stores asof FY2006. Our new Clean Box trash cans come in four types,
one each for paper, plastics, bottles and cans (divided), andPET bottles*. Insertion slots can be removed and tailored todifferent municipal trash sorting requirements. We also takethe environment into account when manufacturing the Clean
Boxes, which are made from plastic recycled from PET
bottles. This plastic also makes them more durable thanconventional steel materials.
From April 2006, near the slots of Clean Boxes we havedisplayed stickers issued in cooperation with the Ministry of
the Environment that declare our commitment to waste
reduction and sorting. Through the new specifications andappeals to customers, we are striving to turn around the yearly
increases in waste that Clean Boxes invite.

n Waste Disposal Survey Results (Weight per Store per Day)

Food products

11.0kgBurnable waste

19.6kgPlastic waste

58.3kgRecyclable
paper

4.3kg
Bottles1.5kg
Cans 4.4kg

Cardboard

0.1kg

17.2kg

PET bottles

Total

0.2kg

In previous reports, we showed results of surveys conducted at six LAWSON storesin Hiroshima, This report indicates survey findings for 300 stores in the Tokyo area.

n Waste Disposal Ratios (by Weight)
(%)
100
80

=Store garbage disposal facilities=In-store waste

24.6

27.8

28.5

75.4

72.2

71.5

2004

2005

2006

60
40
20
0
(Fiscal Year)

Based on findings of surveys conducted at six stores in Hiroshima

Sticker issued in cooperation with the Ministry of the Environment* The boxes that are installed vary by region, depending on specificmunicipal waste disposal regulations.

20

Recycling the Rechargeable Batteries Used in Dynamic Order Terminals
In March 2007, LAWSON began recycling the rechargeable battery packs used in its product order placement
terminals. A trial conducted from August 2006 at LAWSON stores in Hokkaido showed that performance and safety
requirements had been satisfied, leading to the nationwide rollout of this program.
LAWSON StoreWhen recycling rechargeable batteries, theUsed rechargeable
battery packrechargeable cells inside are replaced, essentially
Refreshed rechargeable
battery packturning them into new rechargeable batteries. Plans
Open theRe-assembly
battery packcall for LAWSON to recycle some 6,000 suchbatteries in FY2007. Recycling the rare metals used
Insert newinternal battery
in these batteries and reusing their casings will
Extract internal
battery for recycling
reduce annual waste by approximately one ton.
Dynamic Order Terminal (DOT)

Environmental Accounting
Environmental accounting is the process of assessing a company’s costs arising from environmental preservation activities as wellas quantitative expression of the results of these actions on a monetary or volumetric basis. We use this information to optimize
future environmental management.
n Environmental accounts (For the period from March 1, 2006, to February 28, 2007; encompassing LAWSON INC., franchised stores and some subsidiaries)

Environmental preservation costs(Thousands of yen)Classification(1) Business area costs

Principal measuresl Global environmental

protection costsl Resource cycle costs

Investment

Introduction of energy saving equipment
Collection and disposal of fluorocarbon gases¥66,600

Industrial waste disposal and processing
General waste disposal and processing (stores)
Food product waste recycling
Expenses for survey on waste production and other

2,412

63,9963,440,260
348,376
1,351(2) Upstream and downstream costs

Consignment fees for recyclable products in accordance with
the Containers and Packaging Recycling Law

532,106(3) Management activity costs

Environmental Management System Operation
Environmental education
Environmental publications and corporate advertising
Environmental publicity activities

4,814
202
12,0586,003(4) Research and development costs

Recycling R&D costs
Purchase of environmental reporting books, participation in seminars
Costs for R&D on reducing plastic shopping bags and disposable
chopsticks

139
240
275

(5) Social activity costs

Donations to the National Land Afforestation Promotion
Organization and NPOs Costs for greenery and clean-up activities

21,0009,026(6) Costs to counter environmental damage

0¥6,770,489

Total

Environmental Preservation Results
Details

Indicator of environmental preservation results
Categories
Improved CO2 volume(1) Business area cost performancel Performance of resources invested in business activities

Reduction in electrical power consumption(2) Upstream and downstream cost performancel Asset and service performance generated by business activities

Company-owned cars (gasoline reduction)
Reduction in emissions of substances withenvironmental impact (collection and disposal offluorocarbons)

4,969
913
38,55544,437

Economic Effects of Environmental Preservation Measures
EffectEnergy cost reduction owing to energy conservation
Reduction in equipment costs through resource savings
Reduced use of paper through employment of electronic ledgers
Total¥4,506,446(Tons of CO2)

Total

21

Expense¥6,768,077(Thousands of yen)Value
¥196,419
1,089
1,980
¥199,488

Notes:
1. As each franchised store operates as an independent
business, a representative sample has been used for
calculation purposes.
2. As investment amount during the accounting period
exceeds the total of investment costs, no depreciation oramortization costs have been assessed.
3. The loss recorded is because economic benefits ofenvironmental protection activities are computed in termsof reductions measured relative to the previous fiscal year.
4. A simplified method of accounting for transportation bypurpose of trip has been adopted.

Notes: For quantitative indicators, “yes ” in the target achievement column indicates 100% achievementof the target level, “nearly” a 70% achievement and “no” achievement of less than 70%.
For qualitative indicators, “yes ” indicates that targeted measures have been implemented, “nearly” thatmeasures are being implemented and “no” that measures remain unimplemented.
Yes

n Environmental Accounts
Area

Actions
Reduce electricity
consumption

SavingenergySavingresources

Reducing
waste

Regionalsocialcontributions

Yes

Improve delivery
truck fuelconsumption

Activities
Cut store air
conditioner and cooler
electricity use

Cut CO2 emissions by
upgrading delivery
truck fuelAchievement Status

Achieved?

Introduce energy-saving units in
2,000 existing stores

Targets

Completed setup at 434 stores (cumulative: 639 stores)
Revised introduction plan to allow more detailed measurement ofenergy-saving effectNo

Introduce energy-saving units in
1,000 new stores

In FY2006, introduced at 622 stores;
cumulative: 1,105 stores

Yes

Introduce 70 low-pollution delivery
trucksCumulative: 71 vehicles (20 hybrid vehicles,
51 CNG vehicles)

Yes

Begin making FDC*1 deliveries fivedays per week (expand nationwide
in second half)
Implement Eco-Drive for delivery
truck drivers (using new traffic
management system)

Began making FDC deliveries five days per
week (nationwide from September)Yes

For six CDCs*2, introduced drive recorders in
80 vehicles

Yes

Improve Companyowned car fuelconsumption

Cut CO2 emissions by
upgrading Companyowned car fuelSwitch Company-owned cars tofuel-efficient models (869 vehicles)

Switchover at lease expiration (869 vehicles)

Yes

Promote preventionof global warming(reduce CO2)

Promote companywide
reduction of CO2
emissions

Reduce unit CO2 emissions (perhour of operation, per unit floor
space) 28% from FY1990 levels

Down 22.8% compared with FY1990
Introduced energy-saving units (Eco-Pack) at
existing stores owing to revisions and increase in
number of units for sale

NearlyReduce weight ofplastic shoppingbags used

Reduce weight of plastic
shopping bags used

Appeal to customers at stores for
restraint (per-store volume down
20% from FY2000)

Per store use down 19.4%

NearlyReduce volume ofcontainer
packagingmaterials

Percentage of paper
packaging materials: up 5%
Reduction of package
weight: 2%

1. Use paper packaging for rice balls
2. Use thinner film wrap for packaging riceballs and triangular sandwiches, reduce
container weight
3. Use non-plastic materials

1. Using paper packaging for rice balls. Under revision
2. Use thinner film wrap for packaging rice balls andtriangular sandwiches, reduce container weight
5.1% less than FY2005
3. Considering introduction of green plastics

Yes

Reduce sales
promotionmaterials

Reduce sales promotion
materials, use environmentallyconsiderate materials

Reduce material delivery volume 5%(compared with FY2004)
Promote reuse of materials

Owing to increased sales promotion campaigns,
per-store usage 45% higher than in FY2004

No

Reduce foodproduct waste,
recycleRecycling of foodwaste: 23%

1. Waste oil recycling: 7,000 stores
2. Recycling to feed and fertilizer: 700 stores
3. Introduction of organic waste
processors: 68 stores[March 31, 2007]
1. Waste oil recycling: 7,305 stores
2. Recycling to feed and fertilizer: 894 stores
3. Introduction of organic waste processors: 62 stores[FY2006 average] Introduction of food product recycling:
18.2% (36.3% at directly managed stores)

NearlyReduce store waste

Promote introduction of new
Clean Boxes (trash cans)specifications, change locations
and educate customers

Promote introduction of Clean Box (trash cans)with new specifications, relocate to store interior
and affix stickers to encourage reduction of
volume and separation of types of trash

In cooperation with the Ministry of theEnvironment, affixed stickers to encourage thereduction and sorting of waste

Yes

Continue collecting
donations throughLAWSON Green FundContinue fundraising activities inall stores

FY2006 collections ¥0.25 billion
Collections to date ¥2.29 billion

Yes

Supportenvironmental
protection

Expand greenery operations to
new areas

FY2006
Green Fund support to 188 ventures,
including greening activities at 34 schools

Yes

LAWSON Nurturing the Environment

Activity Targets and Results*1 FDC: Frozen product distribution center *2 CDC: Chilled product distribution centern FY2007 environmental targets
Area

Saving energy

Savingresources

Reducing waste

Regional social
contributions

Actions

Activities

Reduce electricity
consumption

Cut store air-conditioner and cooler electricity use

Improve delivery truck
fuel consumption

Cut CO2 emissions by upgrading delivery truck fuelImprove Company-owned
car fuel consumption

Cut CO2 emissions by upgrading Company-owned car fuelPromote prevention of
global warming(reduce CO2)

Promote reduction of CO2 emission volumes companywide

Targets
Introduce energy-saving equipment at 91 existing
stores (cumulative: 730 stores)
Introduce energy-saving equipment at 500 stores(cumulative: 1,605 stores)

Promote introduction of low-pollution vehicles
Cumulative: 82 vehicles
Reduce per-store CO2 emissions 1%(91kg/store less CO2)
Switch Company-owned cars to fuel-efficient
vehicles (358 vehicles)

Reduce unit CO2 emissions (per hour ofoperation, per unit floor space) 23.8% fromFY1990 levels
Reduce per store use 28.0%, compared with
FY2000 levels
Reduce per store use 5.0%, compared with
FY2006 levels

Reduce weight of plastic
shopping bags used
Reduce use of disposable
chopsticks

Appeal to customers at stores for restraint

Reduce volume ofcontainer packaging
materials

Promote more lightweight containers
Aggressively introduce non-plastic packaging (paper, green plastics)

Reduce CO2 emissions per store 4.6% and per
sheet packaging material weight 3% comparedwith FY2006 levels

Reduce sales promotion
materials

Reduce per-store amount of materials used in sales promotion,
continue to expand use of efficient delivery systems
Increase areas of recycling food waste to feed and fertilizer,
consider new recycling methods
1. Waste oil recycling: 7,600 stores
2. Recycling to feed and fertilizer: 1,240 stores
3. Introduction of organic waste processors: 65 stores

Reduce number of materials used 10%, comparedwith FY2006

Reduce store waste

Promote introduction of modified Clean Boxes, change locations,educate customers

Reduce amount of store waste

Support environmental
protection

Continue collecting donations through LAWSON Green FundContinue fund-raising activities in all stores

Reduce food productwaste, recycle

Appeal to customers at stores for restraint[FY2007 average]
Raise food waste recycling to 25% or more22

Deeply Rooted in Society
Through its nationwide chain of stores that optimize the characteristics of the areas they serve, LAWSON
fulfills its role as “The ‘Hot’ Station in the Neighborhood” through activities that enhance secure,comfortable lifestyles.

Measures to Meet Regional Needs
Measures to Further Local Production for
Local Consumption
In recent years, against the background of more intenseorientation toward safety and security, expectations for local
production for local consumption have swelled as a part of adeeper mutual understanding between consumers andproducers. In line with its strategy of promoting store formats
and merchandise assortments tailored to store locations,
LAWSON offers a lineup of seasonings and confectionaries
tempered to the local palate, provides opportunities topurchase regional foods, and stimulates local industry andrelated businesses. In the Tohoku region in northeasternJapan, where each prefecture has its own distinctive fare, weare strengthening our product development through apioneering menu, to be extended nationwide, based on thethemes of local production for local consumption and of
traditional fare.
As the first stage, from March 2007 we began marketingproducts featuring the foodstuffs and flavors of Aomori
Prefecture in the other prefectures of the Tohoku regions andin Niigata Prefecture.
This initiative was thefirst of the LAWSONMichinoku Flavor
Tour promotions,which we will expandin the future to boost
the development of
products matched toregional tastes.
LAWSON Michinoku Flavor Tour Miyagi promotion

National Promotion of Regional Specialties
In parallel with local production for local consumption
promotion efforts, we are taking the cuisine of each region
nationwide by utilizing our strengths as a nationwide chain. In
addition, we are developing the high-value-added original
menus inspired by these regional characteristics incooperation withlocal companies,
associations andother organizations. As a part ofthis approach,from June 2006 we
accepted advancesales for regional

23

Hokkaido Ramen Series of instant noodles

specialty products. The four initial products, which included
Hamamatsu eel pie and Hiroshima Momiji steamed buns, were
popular throughout Japan.
September 2006 marked the sales launch of our
Hokkaidao Ramen Series in LAWSON stores across Japan.
These luxury instant noodles, which draw on the northern
island of Hokkaido’s abundant culture of farming and fishing,were developed in cooperation with local noodle
manufacturers and commerce and industry associations.
Initially, two lines will be marketed, featuring Tokachi sweetcorn and Nemuro crabmeat.

Catering to Elderly Customers
As the aging of Japan’s society continues, LAWSON issupplementing its focus on conventional services for younger
customers with an approach that emphasizes the needs of theelderly as a crucial element of convenience store operations.
As part of this drive, we are initiating measures to build storesthat are friendly to older customers.
A project team formed in 2005 has been carrying out
investigations in this vein, and in July 2006 we commenced anationwide store development program. The new stores boast
comfortable and relaxed interior layouts, wider aisles, no split
floor levels and shopping cart facilities. Further initiatives toenhance shopping for the elderly include large, easily readable
price tags, installation of massage chairs and maintenance ofcommunity bases.
In terms of product portfolio, the stores offer fresh
vegetables, local Japanese confectionaries and flowers to bebolstered by an original sushi line and other products popularwith older customers that are currently being developed. In the
future, we aim to continue to develop stores that support a
broad customer base—from grandchildren to grandparents.

Meeting the needs of the elderly at LAWSON Plus
Higashiura-cho Ura store (Hyogo Prefecture)
Massage chairs installed in stores

LAWSON aims to be “The ‘Hot’ Station in the Neighborhood”—a popularand much-loved spot with customers in all parts of Japan—by promoting
community-based store management and aggressive regional contribution
activities.
Starting with an agreement with Wakayama Prefecture in August 2003,
we have formed various inclusive partnership agreements with local
authorities to promote cooperative operations. Examples of successful
initiatives have included construction of a store made from timber to blend
with the town ambience in Wakayama Prefecture, publicity for domestic
violence consulting organizations in the women’s toilets of stores in Mie
Prefecture and installation of a corner showcasing local specialties in storesin Saga Prefecture.
In Tottori Prefecture, we are promoting product development incooperation with local companies and associations, collaborative projects
with the regional media and other tie-ups and activities to stimulate industry
within the area.
We entered an agreement in Toyama Prefecture in August 2006 to carryout various initiatives. These span training for the young people who will
make up the next-generation workforce into induction for store crews,
displaying posters and technology bulletins inside stores, and cooperation
over events at nurseries and kindergartens to mark Christmas and
Setsubun-no-Hi (the traditional end of winter).
As of July 31, 2007, LAWSON had in place 10 such inclusive
partnership agreements with local authorities. We will continue to promote
such cooperative operations in the diverse neighborhoods in which we
operate.

Deeply Rooted in Society

Cooperative Operations throughPartnership Agreements with Local Authorities

Corner showcasing local specialty goods at the
LAWSON Plus Saga Katatae store

Cooperation at Setsubun-no-Hi celebrations inToyama Prefecturen Inclusive Partnership Agreements withn Local Authorities
Date of signing

Partner

8/03

Wakayama
Prefecture

12/06

4/06

Mie Prefecture

3/07

5/06

Tottori
Prefecture
ToyamaPrefecture
Saga
Prefecture

5/07

Oita Prefecture

6/07

MiyazakiPrefecture
Okinawa
Prefecture

8/06
9/06

Date of signing

7/07

Partner
Tokushima
Prefecture
Fukui
Prefecture

Gateway to a Host of Services
Expanded Postal Services

Automated Teller Machines

In addition to sales of stamps, postcards and other standard
postal products, in 2003 LAWSON became the first in Japan’s
convenience store industry to provide post boxes in all its
stores. In 2004, we introduced
You-Pack postal packaging services instores nationwide, followed by
Ex-Pack 500 postal deposit services in
September 2005. Such services have
proven extremely popular withcustomers who do not live near a post
office or who find it difficult to visit a
post office during standard businesshours. We are investigating other new
services we can provide incooperation with the Japan Post
Group.

LAWSON stores are furnished with ATMs that facilitate
withdrawals using cash cards issued by city banks, regionalbanks and shinkin banks, and for postal savings accounts aswell as cashing functions offered by credit companies. As of
February 28, 2007, LAWSON offered ATM services in 30
prefectures. We had tie-ups with 18 financial institutions,
including all the nation’s city banks and 13 regional banks andhad 4,245 ATMs in place. We plan to expand our services toraise the level of convenience to customers.

Extended Public Services
LAWSON stores accept payment for electricity, water, gas andother public utilities, as well as for telephone services, catalog
sales and various other services. Stores also act as collection
agencies in accepting Nation Pension System payments and,in some cases, payments for National Health Insurance,
residents’ tax and automobile tax.

Loppi Multimedia Data Terminals
LAWSON stores are equipped with Loppi
multimedia data terminals, which areoperated by subsidiary LAWSON TICKET,
INC. These multifunctional units facilitate
sales of tickets for concerts, the “toto”
sports promotion lottery, travel reservations,
DVD reservations and applications forcertification tests. Loppi terminals will offer
more services in the future.

24

Disaster Recovery Support
Agreements to Provide Support during Disasters
LAWSON stores can become major support lifelines in theevent of natural disasters by providing uninterrupted
operations. (Disaster response is discussed in detail on page7.) We have concluded agreements with regional agencies andother organizations to offer support during natural disasters by
supplying provisions and helping displaced victims return totheir homes.
In July 2006, we signed an agreement with the Japanese
Red Cross Society involving the procurement of provisions in
the case of major calamities. Under the accord, if a large-scaledisaster strikes we will do our utmost to supply provisions in
disaster-stricken areas. As of June 30, 2007, we had signed
31 such agreements with municipal bodies and corporations.
We also have entered agreements to provide assistance topeople stranded and forced to return to their homes on foot in
the event that a disaster renders other modes of transport
inoperable. LAWSON pledges to cooperate in providing
sanitation facilities and information. In FY2006, we signed
agreements with four additional government bodies, bringing
the total to 27 as of June 30, 2007.

n Agreements to Procure Provisions Signed in or after FY2006
Date of signing

Partner

Date of signing

Partner

3/20/06

Chiba Prefecture

1/10/07

Kumamoto Prefecture

3/28/06

Fukuoka Prefecture

1/17/07

Okayama Prefecture

7/3/06

Japanese Red Cross Society

1/18/07

Yamaguchi Prefecture

7/10/06

Akita Prefecture

2/21/07

All Nippon Airways Co., Ltd.

7/24/06

Yamagata Prefecture

3/29/07

Tottori Prefecture

11/1/06

Mie Prefecture

5/28/07

Miyagi Prefecture

11/28/06

Hiroshima Prefecturen Agreements for Assistance to Displaced People Signed in or after FY2006
Date of signing

Partner

Date of signing

Partner

9/1/06

Fukuoka Prefecture

1/17/07

Okayama Prefecture

11/27/06

Saga Prefecture

3/9/07

Oita Prefecture

11/28/06

Hiroshima Prefecture

Agreement with the Japanese Red Cross Society

Sticker declaring store adisaster return station

Disaster Relief Funds
LAWSON helps provide for areas stricken by large-scaledisasters by replacing its LAWSON Green Fund collection
boxes with a special disaster fund appeal for a limited period.
In FY2006, we contributed ¥19,396,883, including headquarters’ donations, to the Japan Red Cross Society for
distribution to the victims of the earthquakes that hit central
Java. We also provided disaster funding as outlined below,
underscoring our intention to demonstrate the goodwill of theJapanese people and assist in times of disaster. We thank thecustomers that cooperated in providing these funds.
n Disaster Relief Funds Collected during or after FY2006

PeriodAmount collected

Central Java Earthquake Relief FundAll stores in Japan (8,350 stores)

June 1–15, 2006

¥19,396,883

Northern Kagoshima Prefecture Flood Relief FundAll stores in Kyushu region, except Okinawa (858 stores)

July 27–August 10, 2006

¥1,750,319

Nagano Prefecture Flood Relief FundAll stores in Tokai, Koshinetsu regions (1,113 stores)

July 27–August 10, 2006

¥1,998,428

Noto Peninsula Earthquake Relief FundAll stores in Tokai, Hokuriku, Koshinetsu regions (1,220 stores)

March 26–April 10, 2007

¥4,343,228

Fund

25

On July 3, 2006, receiving a register of funds
provided to the Japanese Red Cross Society forcentral Java earthquake relief

Collection area

Deeply Rooted in Society

Measures to Make Regional Societies Safer and More Secure
Participation in the Safety Station Movement
Recently, convenience stores have been called upon by society to initiate measures for crime anddisaster prevention, public safety and youth education.
LAWSON participates in activities of the Japan Franchise Association’s Safety Station movement,
an autonomous organization formed by convenience stores with support from the relevant municipal
and law-enforcement agencies. Through these activities, we aim to create a focal point for safe andsecure lifestyles in the neighborhood and ensure that environments are safe for youth. By reinforcing
systems to prevent robbery and other crime and acting as a refuge for women and children in need,
the Safety Station movement provides an industrywide platform for fulfillment of social responsibility.

Poster advertising the Safety
Station movement

Making Stores Friendly to Use
Barrier-Free Stores
LAWSON is promoting the floor space
and access points of its stores as barrierfree zones to better accommodate elderly
customers, expectant mothers and othercustomers with special needs. We haveeliminated steps at the entranceways to
new stores and introduced automatic
doors at some outlets.
Moreover, toilets have been furnishedwith Western-style seats and handrails
and access has been improved withsame-level floors. Since FY2006, storeswith parking lots have one dedicatedparking space for disabled customers.

Guide Dogs andService Dogs
Guide dogs for the visually
impaired and hard of hearing anddogs assisting individuals withother disabilities are welcome toenter LAWSON stores.
Sticker displayed on
the glass front of
LAWSON stores todeclare that guide
dogs are welcome

Clean, Western-style toilets Elimination of floor heightchanges at doors
with safety handrails

Encouraging Good Smoking Manners
Repositioning Ashtrays and Adding Stickers on Smoking Manners
As LAWSON stores are no-smoking areas, ashtrays have been located outside thedoors for customers to extinguish their cigarettes before entering. Recently, regional
legislation has been introduced in Japan to prohibit smoking on pavements andthoroughfares. In response, LAWSON has introduced new restrictions for the benefitof smokers and nonsmokers alike.
Where bylaws prevent smoking on sidewalks, we have removed cigarettedisposal facilities. If bans are not yet enforced, ashtrays are repositioned away fromstore entrances. Also, to reinforce adherence to smoking policies and disposal
etiquette, in cooperation with Japan Tobacco Inc. we display stickers at disposal
points and distribute portable ashtrays and books on smoking manners.
Book on smoking
manners

Sticker to encouragesmoking manners

Deterring Underage Drinking and Smoking
Confirming Ages of Customers Who Purchase Alcohol and Cigarettes
To prevent underage consumption of alcohol and tobacco, we demand proof of age
from customers who appear to be clearly under the legal thresholds. LAWSON also
displays posters and makes in-store announcements to heighten customers’
awareness of this issue. We will reinforce this system in the future to ensure acomplete ban on sales of alcohol and tobacco to underage customers.
Notice that the sale of alcohol tominors is forbidden

26

LAWSON Green Fund and Afforestation Activities
LAWSON Green FundLAWSON Green Fund activities began
in 1992 to ensure that the forests
survive to absorb and store CO 2 ,protect the soil, prevent landslides
and preserve water.
Funds donated at stores throughout Japan are provided to the
National Land Afforestation Promotion
Organization, which promotes various
forestry management activities inJapan and overseas. Franchise owners, store crews andemployees participate in some of these activities. Donations to
the LAWSON Green Fund, including contributions fromheadquarters, totaled ¥2.29 billion as of February 28, 2007.

Forestation activities have benefited 1,528 locations in Japanand overseas, a total of 4,510 hectares and 11.27 million trees
through planting and arboriculture.
n Land Tended and Afforested Area (Cumulative)(Thousands of trees)

(ha)

6,000

11,27012,000

10,230
9,120
4,000

4,510

4,093

3,650

8,000

2,000

4,000

0

0
2004

n LAWSON Green Fund Donations

2005

2006 (Fiscal year)

Note: Figures given for afforested area and number of trees are approximate, based
on total LAWSON Green Fund amounts and overall Green Fund activities.

(Millions of yen)

400

Disaster relief funds
LAWSON Green Fund

Note: LAWSON Green Fund collection switches to a Disaster Relief Fund in the event of a major disaster.
(See page 25 for information about Disaster Relief Funds.)

300

274

200

45

167

93

77

45

64

7

100
0

24

96

79

98

107

1992

1993

1994

1995

1996

154

166

190

1997

1998

1999

154
2000

192

177

196

175

2001

2002

2003

2004

232

2005

22

247

2006

(Fiscal year)

LAWSON Flower and Greenery Day

Mount Fuji LAWSON Greening Program

In 2001, as a symbol of the LAWSON Green Fund andafforestation activities, we declared the third Sunday in May as
LAWSON Flower and Greenery Day. This celebration ismarked by a LAWSON Flower Event and Mount Fuji LAWSONGreening Program.

The object of this program is to restore a 34-hectare tract ofland at Mount Fuji that was devastated by Typhoon Number
17 in 1996 to the ecological state of a natural forest. Franchiseowners and store crews, employees and their families
participated in tree planting and undergrowth clearance
operations at this “Mt. Fuji LAWSON Forest.” Some 120
people participated in Mt. Fuji planting activities on May 21,
2006, planting 800 Japanese cypress trees. Also, each April
we include tree planting as part of the new employee induction
experience.

Event notices displayed at checkouts

LAWSON Flower Present Event
The LAWSON Flower Present Event consists of free
distribution of flower seeds to customers at stores nationwide
to encourage the adornment oflocal towns across all regions
and express the gratitude wefeel toward customers on adaily basis. In FY2006, approximately 900,000 customers (thefirst 100 per store) were presenMiniature sunflower seeds
ted with miniature sunflower
seeds.

Planting trees in FY2006

Trees planted in FY2006

New employees each year experience tree planting during their induction training(photograph of FY2006 entrants).

27

In FY2006, LAWSON franchise owners, store crews and employees participated in afforestation activities at 80
locations throughout Japan (March 1, 2006, to February 28, 2007). Although unfamiliar with the tasks, they worked
enthusiastically alongside other volunteers to plant trees, thin forests and clear away undergrowth.
FY2006LAWSON franchise owners,
store crews and employees

participated in

80 projects.
Details)(

Afforestation Activities
47 projects
School Greening Activities
33 projects

Participants (approx.) :730

Chubu Region

Hokkaido Region

NiigataToyamaIshikawa
Fukui
Yamanashi
NaganoGifu

Hokkaido

Shizuoka
Aichi
Mie

Shibata/Agano
Total: 2 projects
Nanto
Total: 2 projects
HakusanTotal: 1 project
EchizenTotal: 1 project
Otsuki
Total: 1 project
Omachi/Nagiso
Total: 2 projects
Nakatsugawa/Gujo/Ogaki
Total: 3 projects
Fuji/Ito/Hamamatsu Total: 3 projects
Toyota/Seto/Shinshiro/Tokai
Total: 4 projects
Inabe
Total: 1 project

Chugoku Region

Tottori
Okayama
Hiroshima

YonagoTotal: 1 project
Kasaoka
Total: 1 project
Hatsukaichi/Mihara/Hiroshima
Total: 3 projects

Yamaguchi Shimonoseki

Ebetsu/Bekkai/Sapporo
Total: 3 projects

Tohoku Region

Aomori
Iwate
Miyagi
Yamagata
Fukushima

Owani
Kuji
Kami/Ishinomaki
Nishikawa

Deeply Rooted in Society

2006 Afforestation Activities

Total: 1 project
Total: 1 project
Total: 2 projects
Total: 1 project

Date/Namie/Aizu Wakamatsu/Minami Soma
Total: 4 projects

Kanto Region

IbarakiTochigi
Gunma
SaitamaTokyo
Kanagawa

Ishioka/Mito/Tsukuba Total: 3 projects
Sakura/Kanuma/Yaita Total: 3 projects
Ota/Minakami
Total: 2 projects
Chichibu/Fukaya
Shinagawa/Hachioji
Yokohama/Ebina

Total: 2 projects
Total: 2 projects
Total: 3 projects

Total: 1 project

Shikoku Region

Tokushima Mima
KagawaTakamatsu
Ehime
To-on/Imabari

Total: 1 project
Total: 1 project
Total: 2 projects

Kochi

Total: 1 project

Kochi

Kyushu Region

Saga
Kumamoto
Oita
MiyazakiKagoshima
Okinawa

Ogi/Saga/Karatsu
Asagiri/Kumamoto
Hita
Kiyotake
Yaku/Kirishima
KadenaTotal: 3 projects
Total: 2 projects
Total: 1 project
Total: 1 project
Total: 2 projects
Total: 1 project

Kinki Region

Shiga
Kyoto
Osaka

Ohmihachiman
Total: 2 projects
Uji/Kyoto/Nantan
Total: 4 projects
Higashi Osaka/Neyagawa
Total: 2 projects
Hyogo
Kobe/Itami
Total: 2 projects
Nara
Yamato Koriyama
Total: 1 project
Wakayama Inami
Total: 1 project

LAWSON Green Fund Notice Activities
To promote understanding of the LAWSON Green Fund, we are developing a range of activities that reach out to audiences beyond
customers of LAWSON stores nationwide. We participate in environment-related events and implement ecology campaigns toencourage citizens around the country to cooperate in the LAWSON Green Fund.
l Exhibit at the "Cooling Down the Earth" Cultural Festivall Exhibition at the Yokohama Port Opening Candle Cafe

On September 16 and 17, 2006, we presented an exhibit at
the Cooling Down the Earth Cultural Festival at Pacifico
Yokohama highlighting global warming prevention. Promoted
as an eco-activity for participation close to home, exhibits
illustrated how LAWSON Green Fund is applied to create lush
forests. A giant collection box represented the funds collected
to date. In keeping withthe environmentallyconscious theme, allexhibits were paperbased and recycled
after the event.

In cooperation with Yokohama City and associatedcompanies, LAWSON conducted an ecological activity
promotion campaign joined by area residents. As the firststage, the Yokohama Port Opening Candle Cafe took placefrom December 22 to 24, 2006, featured LAWSON Green
Fund clean-up activities and news coverage. The campaign
incorporated an environmental quiz and used a
giant collection box toportray collection activities. The exhibition
helped visitors understand forests’ functions
and the LAWSON Green
Fund’s role in protecting
these forests.

28

Cultivating the Stewards of the Next Generation
LAWSON focuses on greening activities at schools and work–study programs in stores in its
aim to create better environments for children.

School Greening Activities
In addition to afforestation programs in mountainous areas, the LAWSON Green Fund supports greening
efforts at schools. Beginning in February 2006, as of May 2007 such activities were in place at 50 schools. We
plan to continue supporting green activities at approximately 50 institutions each year, spanning elementary
schools, junior high schools and schools for the disabled.

Opportunities for Children to Experience Nature
Most of the school greening activities we support involve tree planting onschool grounds. Although their type and number vary by school, these trees
are usually local varieties that the students select. We also cooperate increating flowerbeds and biotopes* and improving the wooded portions ofschool grounds. Our efforts are designed to create environments wherestudents can enjoy closer contact with nature through activities such as
researching plant names and observing their life forms.
* A biotope is an artificially created environment, such as a pond, in which life can be observed ina favorable habitat.

Part of the biotope at Chodo Elementary Schoolin the city of Higashi Osaka, Osaka PrefectureChildren’s chorus following the improvement ofwooded school grounds at Mishima Elementary
School in the city of Mima, Tokushima Prefecture

Students viewing a completed garden after aceremony Onoue Elementary School in the city of
Kumamoto, Kumamoto Prefecture

Shrubbery additions around buildings constructedto house an influx of students at the Ota Schoolfor the Disabled in the city of Ota, Gunma
Prefecture

LAWSON Green Fund Activities: Planting New and Conserving Existing Trees
This was the first time that had I participated in greening activities
sponsored by the LAWSON Green Fund. As I graduated from
Yara Elementary School, I was glad to be able to plant 180 trees
there. We planted Okinawan varieties, such as the Ryukyu ebony
and the Ryukyu pine. With environmental protection a growing
focus, such activities as these are very important.
In the future, I hope that in addition to planting new trees the
LAWSON Green Fund can help protect trees that are already inplace, such as the Ryukyu pine. Such support is important, as
recent pine beetle infestations are causing some of these 100year-old trees to wither.
LAWSON opened its first store in Okinawa a decade ago,
and it is important to continue contributing to the community in
useful ways. I hope that funds collected in stores can be used infurther regional afforestation activities.

29

Minoru Tsuha
Franchise owner of Nevulu Kadena store,
Okinawa PrefectureDeeply Rooted in Society

Cooperation with School Work-Study Programs
LAWSON is active in providing the next generation with
opportunities to think about how society works and how theyinteract with society.

Kyoto Student City
In January 2007, we opened a training store in Kyoto Student City,
which was established by the Kyoto City Board of Education and
Junior Achievement Japan. The store is part of a program
developed by the Japanese branch of Junior Achievement—theworld’s largest economic education group. The Kyoto Student City
work–study facility is used as part of the fifth-grade elementary
school curriculum.
As well as a LAWSON store, lining the street of the Kyoto
Student City community is a ward office, bank, newspaper
headquarters and pickle purveyor, created through the cooperationof 12 companies and groups. After studying societal andemployment-related mechanisms, children experience buying andselling in the stores on this street, in the process learning how
societies and economics function.
The main activities of the LAWSON training store involve
working with customers and running the cash register. Over time,
initially shy children grow increasingly confident and learn to greet
customers in a loud and cheerful voice. The work helps children
learn by enjoying a range of experiences.

Kyoto Student City booth

Kyoto Student City
Learning to operate the register—a popular job

Leading-Edge Social Study Program
On August 24, 2006, a Leading-Edge Social Study Program
sponsored by the Future Innovation Forum took place at the Higashi
Kanagawa Training Center. As part of the program, a LAWSON
store staff trainer led 15 Kanto area elementary and junior highschool students in experiencing a “leading-edge convenience store”
by performing such tasks as cleaning, greeting customers,
operating the register and preparing Kara-age Kun fried chicken
nuggets. The avid expressions of these young “employees” broughtsmiles to the faces of surprised customers.

Leading-Edge Social Study Program
The first orientation, where everyone is still a little nervous“Every Store Can Help” Campaign (See page 32)
As a part of their social responsibility activities, some stores are
implementing their own workplace schemes for elementary andjunior high school students. These programs let students learn
about the functioning of a convenience store, and the work-study
program helps them experience such skills as cleaning, productdisplay and serving customers.
LAWSON also cooperates with outside groups to provide additional
opportunities for students to learn about being members of society.

Leading-Edge Social Study Program
Students tasting Kara-age Kun nuggets they have prepared30

Regional Clean-Up Activities
Clean Aid

Yokohama Clean-Up Activities

In addition to normal cleaning operations, LAWSON
participates in regional clean-up activities aiming to enhance
the beauty of areas where it operates. The Clean Aid
movement is founded on the concept of residents working
with municipal, corporate and other entities to keep theirriverbanks and parks clean. As a community member,
LAWSON helps in these cleanup efforts by picking up trashand evaluating the collectedgarbage. LAWSON franchiseowners, store managers, store
crews, head office employees
and their families assist inthese efforts, helping to forge
stronger links with the peopleof the neighborhoods where
they operate.

In cooperation with the city of Yokohama and associatedcompanies, LAWSON began regional clean-up activities inparticipation with local residents in December 2006. We
implemented a campaign with the slogan “Clean and Delightful
Yokohama.” As part of the campaign, people took home thegarbage they collected. At the Yokohama Port Opening
Candle Cafe 2006, held December 22–24, 2006, all 30
participants cleaned the venue inside and out, and we
delivered original bags to stores in Yokohama to encourage
people to take home their garbage.

Arakawa River Clean Aid

Road Safety Station
As some LAWSON stores face major national roads, we areparticipating in Road Safety Station volunteer activities at therequest of the Ministry of Land, Infrastructure and Transport.
These stores provide a contact point to an office for eachnational road in the event of an incident. Moreover, staff carryout activities to keep walkways and storefront borders clean.
LAWSON stores in Osaka and Kobe are participating in
the Osaka Adopt a Road Program and the B-ing Kobe Citizen
Movement. These initiatives consist of clean-up activities tokeep the walkways, including those in front of stores, litter-free
and attractive, and therefore pleasant for customers andpedestrians to use.

n Clean Aid Results
Activity

Location

Date

ParticipantsCollected

Fukuoka Love Earth Clean-up

Ohori Park, Chuo-ku, Fukuoka

6/4/0662 (total: 1,964)

Collected approx. 315 bags of garbage

88 Clean Walk Shikoku

Four Prefectures in Shikoku

8/8/0640 (total: 12,200)

Cleaned the roadsides and rest areas

Arakawa Clean Aid

Arakawa Riverside, Edogawa-ku, Tokyo

11/5/0675

Collected 55 bags of garbage, including chairs and speakers

Supporting Lifelong Sports
Official Partnership and Cooperation
with the Japan Sports Association

LAWSON Cup Mothers’ Volleyball
Tournament—Serving to the WorldIn June 2006, LAWSON concluded an official partnership andcomprehensive cooperation agreement with the Japan Sports
Association—the only retailer to do have done so. The missionof the Japan Sports Association is “sports for all,” and throughaffiliations with 106 groups, the association works to realize asociety of lifelong sports. LAWSON shares this ethos andplans to use its economic resources to offer support wherever
possible, by disseminating sports information at storesnationwide and helping develop products for athletes. We
continue to work toward an environment in which sports are amore accessible pastime for people in communities
throughout Japan.

As part of its contribution to a happy and healthy society,
LAWSON has hosted the “LAWSON Cup Mothers’ Volleyball
Tournament—Serving to the World” since 2005, and aims topromote mothers’ volleyball as a worldwide and lifelong sport.
Every year, teams that win in regional elimination rounds meetfor national finals. The winning team and the first runner-up
then tour overseas, participating in international friendshipmatches. For four days from March 28, 2007, we held theSecond LAWSON Cup at the Kita-Kyushu Combined
Gymnasium in Fukuoka Prefecture. Some 40,000 participantsin 2,700 teams first battled their way through the regionalelimination matches, in an event hosting 48 teams hailing fromevery prefecture in Japan. The intense competition proved tobe quite a spectacle. Additionally, we sold boxed lunches
designed for this tournament, featuring items incorporating suggestions fromparticipating mothers.

Japan Sports Association Chairman
Yoshiro Mori and LAWSON president
and CEO Takeshi Niinami
Opening ceremony31

In 1997, LAWSON started “Every Store Can Help” campaign activities for regional communities.
Through this program, each store pursues individual activities that contribute to their communities
and ensure their stores bring happiness to the neighborhoods where they are situated. These
activities include cooperating with work experience programs for elementary and junior highschool students and carrying out clean-ups in the vicinity of stores.

Hosting the Mothers’ Volleyball Tournament

Deeply Rooted in Society“Every Store Can Help” Campaign

Takuya Kitamura, Store Manager, Kande-cho Tai store (Hyogo)
We have hosted the mother’s volleyball tournaments since they began in 2001. The
impetus behind our sponsorship was a store visit by a woman after finishing practice.
She said, “I want to play games, not just practice all the time.” Thinking about thiscomment, it occurred to me that hosting a tournament would be a good way to thank her
for her continued patronage.
We held our 6th “LAWSON
Cup” in 2006, attended byseven teams with 50 participants ranging in age from 10 to
60. Our team didn’t make thefinals but the chance to mingle
with people from around theregion makes us look forward to taking part every year. We are actually the first
convenience store in Kande-cho. We hope that we can continue to forge closer ties withthe community, while also making a contribution.

Crosswalk Duties for 19 Years
Kazushige Sakano, Owner, Nikko Tokorono store (Tochigi)
I’ve been a crossing guard for 19 years, from the time my daughter was in elementary school.
Nikko has always been forward-looking when it comes to traffic safety and crime prevention,
so in the spirit of doing what I can to help, almost every morning I act as a crossing guard,
watching out for the children as they cross the street. I’ve become firmly fixed in the children’s
minds as “Mr. Lawson.” Every year, the children hold an event to thank crossing guards, andthey sometimes present me withpotted plants when they graduate.
Being a crossing guard for all theseyears has given me a chance formore interaction with different
generations in the community. I
hope that my activities as acrossing guard can contribute tobuilding a happier community.

Helping with Shopping Lessons at the School for the Disabled
Kaoru Itoi, Store Manager, Ota Kanto Gakuen Daigaku-Mae store (Gunma)
Since we opened nine years ago, we have cooperated with a local school for thedisabled in their lessons in shopping. At the first lesson, we practice bringing items to theregister and paying for them. As we’ve learned most of the children’s names, we callthem by name and talk with them when they enter
the store. The children also remember my face, andwhen attending school festivals I have heard thempoint me out and say, “That’s the Lawson Lady.”
Disabled or not, they are all children and ourcustomers. Although we don’t really do anything
special for them, we do our best to greet themcheerfully. At any rate, I like people. I hope we cancontinue to create a cheery store where people feelat ease.

32

Supporting Customer Social Contribution Activities
Environmental and Social Contribution
Course by Member Cardl NPO Bridge Asia Japan (BAJ)

This NPO provides vocational training for
women, refugees and others who face

LAWSON PASS and MY LAWSON POINT member cards havedifficulties, and helps them convert thean “Environmental and Social Contribution Course” option thatskills that they have acquired into income.

lets cardholders contribute to society as they make purchases.
When making purchases at LAWSON, member cards
accumulate points corresponding to the purchase amountwhen they are presented at the register. Accumulated points
earn rewards that vary, depending on the course selected. The
Environmental and Social Contribution Course option allows

l Japan Guide Dog Association

This association provides

points to be exchanged in 50-unit increments to benefit

friendly guide dogs toorganizations that carry out environmental and social

help the visually impaired

contribution activities. This option has been available since

move about safely.

2003, and this year we used accumulated points to make ourfourth set of donations.
Total funds generated in FY2006 came to ¥2,799,400,
which were donated to the following five NPOs.
l NPO Education Sponsorship in Asia (ESA)

ESA offers educational
support for poor children,
encourages autonomy for
women and provides environments conducive to
LAWSON PASS

MY LAWSON POINT

education in Bangladeshl NPO Ecology-Caféand India.
This NPO provides learning

opportunities

tochildren based uponconservation and preservation activities that helps
them learn about thenatural environment.

Support for HIV-Infected Patients and
AIDS Victims
In July 2006, the LOVE SAVES LIFE!
Project contributed a portion (¥2 million)

l Registered NPO Caring for Young Refugees (CYR)

of its sales of condoms to the JapanCYR helps operate

Stop AIDS Fund through the Japanesecare centers for chil-Foundation for AIDS Prevention. This

dren from Cambodian

project was established in 2005 invillages and cities, work-

cooperation with the Keith Haring

ing with local residents
to create stable environments for children.

Foundation, Sagami Rubber Industries
Co., Ltd., and LAWSON, with the aimof supporting HIV*1 -infected patients© Masanori Kobayashi

and AIDS*2 victims.
Carrying on from the acclaimed Keith Haring Condoms,
Andy Warhol Condoms (a total of 100,000 boxes) went on salein October 2006. We will continue to fight the spread of HIV

A letter of thanks fromthe children (left) anda picture book created from donatedfunds (right)

33

through the sale of condoms and use funds generated from theirsale to support HIV and AIDS victims.
*1 HIV: Human immunodeficiency virus*2 AIDS: Acquired immune deficiency syndrome

Customer Relations
We consider customer input to be an asset, as it allows us to provide products and services that lead tosatisfaction. Accordingly, we elicit dialogs with our customers and take under serious advisement theiropinions and requests, as this input helps us to provide products and services that satisfy their needs.

Achieving Customer Satisfaction
LAWSON’s Views on Customer Satisfaction

Three Challenge Practices

To bolster customer satisfaction, we follow three challenge
practices, provide good products and operate from convenientllocations. These are the three focuses of LAWSON’s operations.

Ensuring Merchandise Assortments Are
Tailored to Individual Stores

The three challenge practices are: ensuring merchandise

Based on the principle of “individual store orientation,” we aim toassortments are tailored to individual stores* , promoting

create stores that are attuned to local customers, firmly bonded

cleanliness in stores and neighborhoods and ensuring courteousto their neighborhoods and therefore preemptive in providing

1

service for our customers. Providing good products* is a goal

products on demand. LAWSON employs “store charts”

we continuously strive toward, as it is the key to customer(individual store data analysis) to round out its product offerings.

satisfaction. Moreover, when opening new stores we are everBy surveying each store’s sphere of operations, taking into

mindful of operating in convenient locations.

account store locations, climate and local activities, we tailor

2

LAWSON’s core views on customer satisfaction are manifest

product lineups to residents in the vicinities of each store.

in its three challenge practices, and its resolve to provide goodlare inextricably linked to our drive to make LAWSON “The ‘Hot’

Promoting Cleanliness in Stores andNeighborhoods

Station in the Neighborhood.” We are working to build storesTo make visits to LAWSON

that make the people of the neighborhood say: “Thank heavens

more enjoyable, we keep ourfor LAWSON!”

stores and their environs

products and operate in convenient locations. These directives*1 LAWSON operates under the principle of “individual store orientation,” whichrefers to tailoring each store to the customers of a region, rather than insistingon uniform store management and product lineups.
2* LAWSON defines “good products” as being “secure, safe, healthy and tasty.”clean. Through these endeavors, we aim to enhance thelifestyles of local citizens.

n LAWSON’s Views on Customer Satisfaction

LAWSONcustomersatisfaction
Three challenge
practicesGood
products

Threechallenge
practiceslEnsuring Courteous Service for Our
Customers

We are redoubling our efforts to provide courteous store

Ensuring
courteousservice for ourcustomers

services, taking into account customers’ opinions and requests.
As we place a high priority on cultivating human resources, westress high levels of hospitality during personnel training,

Convenient
locationscombining such educational tools as manuals with practical in-

SafetySecurity

store training.
LAWSON conducts seminars for franchise stores and carries

Good products

Healthout training for franchise owners and store crews to ensure that

Tastiness

PromotingcleanlinessConvenient
locationsIndividual
storeorientation

the three challenge practices permeate the organization. (Seepage 39 for information about the LAWSON training system for
franchise owners and store crews.) We are confident that

Creating storesthat bring happinessto local customers

continued application of this strategy will further raise customer
satisfaction levels.

34

Good Products

Convenient Locations

LAWSON has maintained pride in its ability to deliver tasty, safe

We develop new stores, paying close attention to customers’

products to customers since its founding. Headquarters andrequests. We have open-

stores are unified in theired LAWSON stores in

product development toschools, hospitals, postensure that the products that

offices and train stations.

reach customers are safe,

In FY2006, we also began

secure, healthy and tasty.

opening stores in rest

(See page 37.)

areas along expressways.

The LAWSON Highway Pit Kiyama Nobori
store (Saga Prefecture)

Customer Feedback Structure
To raise customer satisfaction, we established the LAWSONn Customer Feedback Structure

Customer Center to respond to customer inquiries, opinions andCustomer feedback is directed to the appropriate
department, where it receives a prompt and sincere response.

Stores, offices

LAWSON
Customer Center

Supervisors, departments

Using the Company Intranet and in-house publications, issues

Reporting at
divisional
head meetings

Network-based
customers’comments

are shared with all employees with a view to making any
necessary improvements. Customer comments are compiled in a

Explanation of improvements, etc.

creating new stores, developing products and providing services.

Customer Feedback
Reply to customer

requests 365 days a year. These comments are integrated into

At headquarters

booklet for internal distribution as a source of helpful hints for staff.

Feedback from LAWSON Customer Center
Each year, the number of comments that our customer center

Regarding products and services, we received comments

receives rises significantly. In FY2004, we received 27,597

about Loppi (multimedia terminals) and LAWSON Mobile. In

comments. Owing to such factors as an increase in the number

addition, customers offered opinions on product qualityof new services, this number was to 31,878 in FY2005. Inproblems and specifications.

FY2006, this number surged to 34,363, and included comments

Comments concerning advertisements, commercials andcampaigns increased notably. In addition, we noted that require

about the LAWSON Fair, held in June 2006.
The highest ratio of comments, 42.8%, concerned store
operations. Next was products and services, at 32.4%. These

improvement, such as delivery truck parking and groups tending
to gather in store vicinities.

two categories accounted for three-fourths of the total. In the

We will continue to share such customer feedback

store operations category, we noticed a particular increase inthroughout the Company and reflect feedback through further

comments concerning customer courtesy, product management

improvements.

and product lineups.
n Customer Comments during FY2006

n Customer Feedback(Instances)

5.0%
Store locations3.8%
Inquiries

Advertisements,
commercials
and campaigns

4.5%

11.5%
Total

30,000Store
operations

34,363 42.8%

31,87834,363

27,59720,00010,000

Products and

32.4%

services

35

40,000

Other

0
2004

2005

2006

(Fiscal year)

December 15, 2006, the opening day of the HAPPYLAWSON Nihonbashi store—our first store designed
specifically to be friendly to mothers with children—aconcept that evolved through dialog with our customers.
This idea arose from the theme of the prizewinning entry ina contest that we held in 2005 to commemorate our 30th
anniversary of establishment. The contest solicited ideas
on “The Convenience Store of the Future” from customers,
franchise owners, store managers, store crews andemployees. The prizewinning entry, entitled “Convenience
stores that support raising kids!” was penned by Ms.
Misato Hanai, of Mie Prefecture. Ms. Hanai was chosen as
the prizewinner on November 12, 2005. In March 2006,
we formed a project team to drive the idea forward. In July,
the “Happy Child-Raising Project” was announced on our
website, which
invited customers
to provide their
input on childraising.
During store
concept development, we incor-

porated the myriad ideas offered by Ms. Hanai—herself achild-raising mother—and other families with children. We
incorporated such suggestions as making the aisles wide
enough to accommodate a baby carriage, installing diaperchanging seats in the toilets and adding baby foods anddisposable diapers to the product lineup, as well as
products to help soothe harried mothers. We also set aside
a convenient space for taking short breaks and offered ashort-term child-care service.
Through cooperation with the NPO Kosodate Adviser
Network, we introduced a free-of-charge service formothers. We also arranged child-oriented activities, suchas science experiments and picture-book times. We
provide such new services to reflect customers’ needs.
The Nihonbashi store, which was designed as an
operational trial, closed its doors on June 30, 2007, butduring that 6.5-month period we accumulated a solid baseof knowledge and expertise on products and services tomeet child-raising needs. Based on this information, on
July 12, 2007, we opened the HAPPY LAWSON
Yamashita Koen store. We plan to apply the ideas
generated through this store to our regular LAWSON
stores, making them more accessible to mothers raisingchildren.

Customer Relations

Adopting Customer Recommendations

HAPPY LAWSON Nihonbashi store

HAPPY LAWSON Yamashita Koen store

Supporting Mothers and Children
LAWSON is launching various child-raising support
initiatives, beginning with the “Happy Child-Raising
Project,” which commenced in July 2006. As one suchactivity, we ran two gift campaigns, offering originallydesigned plates adorned with the popular Miffy character
created by artist Dick Bruna of the Netherlands to childsupport organizations.
At a rate of one yen per plate, the first campaign
generated ¥2.1 million, which we donated to the United

Nations International Children’s Emergency Fund
(UNICEF). Funds from the second campaign, conducted
in November 2006, were used to provide Miffy picture
books, toys and bath items with the keywords“parent–child communications” to the Japanese National
Council of Social Welfare and the Japanese Mother andChild Life Support Foundation, benefiting the mothers andchildren nationwide who rely on these organizations.

Illustrations Dick Bruna c copyright Mercis bv,1953-2007 www.miffy.com

36

Tasty Products That Are Safe, Secure and Healthyn LAWSON’s Concept of Safety, Security and HealthPay careful attention
to ingredients
Consider nutritional balance
in menus
Include often-neglected
vegetable content

Offer
healthy
products
Offer safe
and secure
products

Eliminate artificial coloringsand preservatives
Control freshness,
temperature and hygiene levels

Measures for Safety

Measures for Health

LAWSON’s products are manufactured and subjected toConsidering the health of those customers who shop at

thorough quality control procedures in conformance withconvenience stores regularly, LAWSON considers eachenvironmental and hygiene regulations. Our stringent policies at

ingredient and the nutritional balance of its meals, including

all stages, from product development through production andoften-neglected vegetable content. Since 2003, we havesales, ensure that customers can purchase our products without

cooperated with Osaka Prefecture, which has mounted anany safety concerns.

initiative to improve dietary habits. Under the supervision of theSince FY2003, we have eliminated the use of artificial colorings

Osaka Medical Center for Health Science and Promotion, weand preservatives in such original LAWSON products as boxedhave developed a number of new health-focused food products,

lunches, rice balls, sushi, prepared bread, side dishes, salads,for sale principally in the Kinki region. As of June 2007, we had

prepared noodles and pasta in the Kanto, Kinki and Tokai regions.

introduced 11 such products, ranging from low-calorie/low-This policy has been expanded throughout Japan since FY2004.

sodium boxed lunches with extra vegetables and boxed lunchesfeaturing nutritionally balanced combinations of Western- andMeasures for Security

Japanese-style side dishes.

The labels on original LAWSON products display such

At LAWSON stores nationwide, we have rolled out a series

mandatory information as product name, sell-by date,of products featuring highly nutritious ingredients such as okra,

ingredients and allergy warnings.

tororo potatoes and natto. In June 2006, we launched a series of

In addition, nutritional data, including calorific values, issuch products to beat the summer blues ranging from cold

highlighted independently so that health-conscious customers

noodles to salads and pickles. The lineup was well received bycan shop with peace of mind. We create specification

our customers.

documents for each product, such as boxed lunches and side

In 2007, we launched a promotional campaign emphasizing

dishes, clearly recording each ingredient, the way each dish was

physical vigor. The program suggests various foods that are

prepared and any food additives included. All this information isconvenient and contribute to healthy lifestyles.

reflected in the ingredients section of the label. CounterTo meet the increasing health emphasis of our customers,

products* bear no such labels, but calorific and allergy

we have begun offering some NATURAL LAWSON products at

information for the majority of these is displayed on in-store

our regular LAWSON stores. These nutritionally balanced,

point-of-purchase materials and published on our website.

reduced-calorie offerings were developed with the working

The Quality Control Office carries out stringent checks on the

woman in mind. We plan to continue increasing our number ofcontent of product labels, whichsuch product varieties to meet the requests of customers

are also checked by specialized

nationwide.

external agencies and at the
production stage. This ensuresthat all product labels have been
double- and triple-checked
before reaching the consumer.

37

Product label*Counter products include Kara-age Kun
fried chicken nuggets and other dishes
cooked in-store.

Neba Neba Hime salad

Neba Neba Oji soba

In its pursuit of advanced manufacturing control procedures, LAWSON

line or new systems are installed. Their job is to check for possible hygiene

has created the Hazard Analysis and Critical Control Point (HACCP)

and safety control issues. We are also installing a manufacturing processsystem to manage hygiene and food safety, identifying potential risks ofcontrol system that regulates all standard aspects of the production

food poisoning or hazards due to foreign substances before they comeprocess for each and every product, from weight and preparation methodnear customers. The system maintains records of such key aspects ofto placement in the container, to ensure that we deliver products of uniform

quality control as preparation time and temperature, allowing prompt

quality regardless of where in Japan the product is actually made. Following

investigation of the causes of a problem on the off-chance that somethingassessments of a trial that began in FY2003, since FY2006 we haveshould go wrong.

commenced full-scale adoption of the system in 49 locations nationwide,

Quality Control Office personnel are present when a new plant goes on

Customer Relations

Quality Control Measures

including our rice product and other plants.

n Quality Control in Production: Focus on Original Rice Products and Side Dishes

Use of Ingredients

Product Development

LAWSON has an ingredient procurement section tasked with handpicking the

LAWSON inspects original products at every stage, from raw materials toingredients the Company uses. This section ensures that we give due

products. We inspect documentation when product specifications have been

consideration to safety, security and health from the ingredient procurement

set, and prototype the products on our assembly lines to verify their safety.

stage. We also conduct regular inspections that involve collecting these
ingredients and checking that delivered ingredients meet our standards.

Quality Control in Production Plants
Production processes are closely regulated in all aspects, from heating temperatures and times to cooling times. Thermometers ensure that temperatures
remain within specifications. We also take samples of raw materials and semi-prepared products to check that they are at proper temperatures.
Plants maintain sanitary conditions at all times. We ensure that no foreign substances enter the facilities during operation. When people enter theplants, we maintain hygiene control by requiring them to wash and disinfect their hands.

Rigorous washing of hands

Checking temperatures of cooked ingredients

Metal detector checks for foreign substances

Regular checks for foreign substancesn Manufacturing Process Control System to Ensure Uniform Quality

LAWSON has adopted a manufacturing process control system to promote uniform quality at rice product and other plants
nationwide. This system regulates all standard aspects of the production process for each and every product, from weight andpreparation method to placement in the container. Weights of ingredients used, weights of finished products, weights ofarranged products and weights of waste product are all weighed to the nearest gram in product manufacture. The
accumulated manufacturing process history data is utilized to facilitate production of products as designed. The system
ensures a consistent finished product, as well as allowing closely coordinated compensation in production quantities at
Checking weights after chilling

production plants, which helps reduce waste.

“We are always working to provide safe, quality products.”
There are 10 NIPPON COOKERY plants across Japan. The company’s plant in Atsugi supplies boxedlunches and rice balls to 700 LAWSON stores in the Tokyo and Kanagawa regions three times a day.
The manufacturing process control system at this plant ensures consistent quality and a proper
match between product quantities manufactured and amounts ordered, computing production levels
based on manufacturing process history data for each product.
Initiatives are also underway to reduce product returns by inspecting products yet another time after
production is finished. We check product arrangements and volumes, making sure that labels are affixed
firmly and ensuring that products pass LAWSON’s standards.

Kiyoshi Minato
Plant Manager, Atsugi Plant, NIPPON COOKERY CO., LTD.

38

Franchise Owner and Store Crew Relations
LAWSON employs various initiatives to assist franchise owners with their operations. We are also attentive
to what franchise owners, store managers and store crews say to each other in our ongoing efforts toimprove our products and services. We cooperate with franchise owners, store managers and store crews
who run stores day in and day out, in our pursuit of higher levels of customer satisfaction.

Training and Support Programs
Corporate Philosophy, Sharing Information

We also provide fran-Franchise owners who participate in the LAWSON Franchise System*

chise store management

are responsible for all aspects of operations, including sales,

information by publishing Pal,

procurement and management of costs and store crews. LAWSONa monthly business news

supports franchise owners in various ways, allowing them tomagazine, and a brochure

concentrate on their businesses. Supervisors are a bridge between

with information on store

franchise owners and headquarters as they support store operations.

management and recom-

Supervisors provide information on the latest product trends andmendations improving storechanges in the business environment, analyses of sales andoperations.

customer data, conduct market research on areas where franchisesn Comments to the Store Support Desk in FY2006

operate and offer suggestions regarding revenues and income.
We also hold a LAWSON Seminar twice annually at eight locations
nationwide, where we describe the LAWSON corporate philosophy,
management policy and product trends, as well as offering productknowledge and analyses of information on a per store basis. We
provide sustained support to make our stores pleasing to local
customers by sharing such information with our franchise owners.
*Corporate headquarters
provides sales knowledge,
trademarks and otherproperties to participating
stores, which compensate
headquarters for the right touse these business systems.
Both corporate headquarters
and participating stores are
independent businesses,
engaged in a contractual
relationship as equal partners.

Training center workshop

0.1%
Products, distribution 1.9%
HQ information 3.2%
Device maintenance 8.1%
Verifying contact info 8.1%
Other

Total

14,132
Franchise store operations

78.6%
Franchise Owner Welfare Association
LAWSON wants its franchise owners, who are its business partners, tomaintain the vitality they need to do their jobs. We have founded theFranchise Owner Welfare Association to expand and improve social
Supervisor makes a franchise ownerpresentation

welfare support for owners and their families, as well as store managers
and crews, all grounded in a concept of leisure, health and peace of mind.
Franchise owners become eligible to participate upon applying

Training and Support Programs

for a LAWSON franchise agreement. Benefits include access to

LAWSON assists the smooth functioning of franchise stores and thehealthcare facilities and sports clubs, distance learning, car rentals

satisfaction of customers through training and support programs forand leases, loans and various insurance.

franchise owners and store crews. When a store opens, we conduct

39

a basic management course for about three weeks to teach

Mystery Shopper Program

franchise owners the basics of store management. We follow with a

At LAWSON, we have adopted a Mystery Shopper program,wide range of courses at training centers located in our branchwherein Company employees conduct anonymous surveys ofoffices. In FY2006, we adopted a Franchise Owner Support System,

stores, aiming to improve the way the stores do business. By acting

wherein corporate personnel operate franchise stores on behalf ofas typical LAWSON customers, these examiners can take objective

owners so owners can take vacation time with peace of mind. This

views of store product placement, selections, customer treatment

program became available nationwide in September. We have also

and cleanliness. Feedback is provided via supervisors to franchise

opened a 24-hour support desk to assist franchisees, gradually

owners. Based on these findings, both parties work together toextending the program nationwide since August. The program has

inspect problems spotted in stores, rank them in order of priority andresulted in a drop in franchise owners’ concerns regarding store

take steps to improve operations. We have seen improvements

management. In FY2006, this desk fielded 14,132 inquiries, 78.6%

since the program was instituted, especially regarding customerof which concerned franchise store operations.

treatment and in-store cleanliness.

Survey of Franchise Owners

alleviating concerns and increasing satisfaction levels for franchise

LAWSON surveys franchise owners of all stores to confirm theirowners by improving the system of support provided for them.

awareness of headquarters policies. Replies from 4,612 stores

During FY2006, we introduced a nationwide Owner Support

on the FY2006 survey represented a 57.7% response rate. The

System and Store Support Desk with the goal of bolstering thesurvey identified future sources of concern for store

sense of security among franchise owners. In response to staff

management. The number of responses has increased in all

shortages, we commenced trial recruitment, employment andcategories, with a majority of responses concerning anxieties

training of senior store crew members, presenting this newover sales and profits and a shortage of store crew members.

position through seminars. In addition, we carried out a major

LAWSON takes the results of this survey most seriously. Its

campaign, incorporating television commercials and the massfindings play a major role at headquarters in raising awareness,media to increase numbers of LAWSON PASS holders andn Future Sources of Anxiety for Store Management

conducted various sales promotion activities.

(Multiple Responses Allowed)

Direct Line to the CEO
LAWSON has established a Direct Line to the CEO as a channel

60%

Sales (profits)
Shortage of store
crew members

45%

Increased number ofcompeting stores
Insufficientpersonal time
Concerns
about health
Increased
expenses
Crime-prevention
systems

45%
48%
44%
47%
40%
34%

72%

of communications for franchise owners, store managers and57%

store crews to express their everyday opinions and ideas. In
FY2006, this facility was utilized 753 times, and the CEO
responded directly to each comment. Commonly featured

47%

FY2005
FY200642%

themes were products/distribution and store instruction.
n Comments on the Direct Line to the CEO, by Subject

16%
20%
13%
16%
13%
15%

Cash flow
Succession of
franchise ownership

0

10

20

30

Franchise Owner and Store Crew Relations

Communications

40

50

60

70

Products/distribution 204

Systems

31

Store instruction

111

Services

87

Facilities/equipment

94

Other

124

Sales promotion

57

Franchise agreements

45

Total

753

80

“We would like to see work toward improving the brand image.”
Akira Maeda, Franchise owner, Yokohama Onoe-cho, San-chome store
We opened our first store in 1999, and now we operate three stores in the city of Yokohama.
We owe the fact that these stores operate without major problems to the employees andstore crews, who are truly key, and I appreciate how hard everyone works. My dream is tooperate more stores. We actually have a multistore operation now, but it would be helpful toimprove our contracts and training systems. Our request for headquarters would be toprovide an easy-to-understand explanation of how to operate the Loppi terminals*. It would
also be nice to introduce simpler cleaning methods and reduce the time we spend with
operational tasks.
Another request I have is to build up the LAWSON brand image.
One way to do this would be to use the Mystery Shopper program to
improve stores. I would like to see supervisors and headquarters takethe initiative in raising the brand. Ideally, people would think, “I’d reallylike to work at LAWSON!”Mr. and Mrs. Maeda

Mr. and Mrs. Maeda are very proactive people who seem to enjoy taking on new challenges. Working
with them is truly a learning experience for me. Each day as I do my rounds, I remind myself to speak
to people from the heart, without holding back. Once people understand that what I am saying is theunvarnished truth, they tend to respond in kind. My goal is to find out what franchise owners need toknow and offer suggestions to make their stores run more smoothly. Once the franchise owners and I
are speaking a common language, we can get down to the real operating issues.

Harutaka Akimoto, Supervisor, Yokohama District, Kanto Operations Division 5*Loppi refers to the multimedia data terminals in LAWSON stores.

40

Employee Relations
LAWSON’s service improvements and ongoing growth derive from the day-to-day vitality of the people whowork at the Company. Our training systems, workplace environment and internal communications aim tocultivate a corporate climate that encourages full expression of individual abilities and opinions.

Employee Training Systems
LAWSON University
Through an original training program named LAWSON University, theCompany shares its corporate philosophy and strategies with
employees, aiming to cultivate high-performing personnel.
Currently, the university curriculum includes a LAWSON Basiccourse, which all employees attend to learn minimum companywide
requirements. LAWSON employees raise their basic skill levels
through core skills courses that accentuate specific functions, as wellas through various training plans.
In FY2005, we established the LAWSON Learning Center (LLC).
Located near Company headquarters, LLC forms a nucleus for
LAWSON University’s activities. In addition to employee training, we
use the facility for press conferences and other external activities.
Through the introduction of the e-Learning System, we have createda flexible nationwide environment for employees to undergo
necessary training—anytime, anywhere. LLC reinforces an
employee’s educational base through group training, whereas thee-Learning System enables specific knowledge to be obtained
through e-learning at each person’s own pace.
On-the-job training is provided to help employees absorb key
practical skills. We continue to enhance our new employee training,
so that inductees interested in becoming supervisors can select thattraining curriculum, whereas others may opt to study LAWSON’s
franchise business model.
We invest aggressively in human resource development because
we consider the companywide dissemination of our corporate
philosophy and customer
orientation important. At
the same time, throughsuch programs we aim topromote the operation ofa highly progressive andchallenging professionalorganization.
Training at the LAWSON Learning Center

n LAWSON University Structure

LAWSON University

ES/CS
promotion

Selfdevelopment

Management
training

Job skills

Compliance/
environment

Position-specificskills

Better store
management skills

Training incustomer awareness andcreating a fulfilling
workplace

Variousself-development
promotion menus

Training future
leaders

Gaining functional
job-specific skills

Confirmation of
essential knowledge
for LAWSON
employees

Acquiring skills
needed for eachcareer path

●

●

●

●

Training forstore opening
Crew leader
training● Store manager
training forexisting stores

Employeeawareness surveys
Customersatisfaction sessions● Employee
satisfaction sessions● Customer
satisfaction lectures

・Training center
・Guest house●

Correspondence
and day-releasetraining● External seminars● Annual magazine
subscriptions

●

●

●

●

Leader training
Leader training II(corporate finance)● Leader training III

Store development training
Merchandising training
Assistant supervisor training●Store employee training●Training for promotion to
store manager●

Note: Company
pays costs●

Compliance andrisk management
training● Job-specificcompliance training● Position-specificcompliance training● Environmental training●

New manager
trainingInductee training● New assistantmanager training●

Job rotation and evaluation

Franchisetraining

e-Learning System (operational from November 2005)
Learning Center (open since November 2005)

Franchise store training

Employee Training

Note: This is only a sample of the full range of training courses that are provided.

Internship Program

program succeeded in deepening the participants’ under-In FY2006, LAWSON introduced an internship program thatstanding of LAWSON.

gives students an opportunity to learn more about theCompany’s business and operations, as well as to understandthe sort of people LAWSON seeks. From August 1 to August 23,
we accepted 10 interns into this program. Interns taste andcompare industry competitors’ mainstay products, analyze

41

LAWSON’s strengths and weaknesses and participate inworking groups to develop their own product ideas. The

Student presentation

A Fair and Just Employment Environment

The Company is making progress toward creating a workplace

At LAWSON, employment and promotion are based on individual

where abilities can be developed to their full potential without regard

capabilities; no discrimination is made on the basis of religion or

to gender through such measures as prioritizing the promotion ofbeliefs, gender, place of birth or other factors other than abilities. The

female employees to positions as supervisors and merchandisers.

Company provides various employee tools, including a training

However, we recognize that this is an issue of importance. The

system to raise personal abilities, and operates an evaluation system

Company has also reached a level of 1.6% in the employment of thethat measures the abilities and performance of each employee

physically challenged. Conscious of its social responsibility, theaccurately and fairly.

Company is committed to build a robust and creative workplace that

Employee Relations

Building an Amenable Workplace

will raise this level to the legally mandated 1.8%.
n Overview of Employees

FY2004

Employees (consolidated)
Of which, male/female

3,391

Employees (non-consolidated)

3,095

Breakdown: male/female)

2,829/266

FY2005

FY2006

3,585

3,614

3,176/409 3,184/430
3,120

3,131

2,847/273 2,839/292

System that Respects and Supports Lifestyles
LAWSON is building an employment structure that respects andsupports individual lifestyles. In particular, the Company has honored
requests that help its employees live well-rounded lives and hasemphasized the creation of a comprehensive employment structure withshorter working hours and leave for childcare, nursing and care-giving.

Women in managerial positions (%)

0.5

0.6

0.4

Physically challenged (%)

1.8

1.8

1.6

Since FY2006, the Tokyo headquarters has operated a daycare center

Employees on maternity leave

3

9

14

on public holidays. Employees, part-time workers and employees of affiliatedEmployees taking childcare leave

12

13

17

companies can bring their children from one year old through the third year

Reduced hours for childcare

8

12

14

of elementary school to the center, which operates out of a headquarters

Employees taking leave as care-givers

0

1

0

conference room. Parents praised

Insured and having health checks (%)

—

—

81.7

the center, while for the children

Average age (years)

36.4

37.1

37.8

joining Mom or Dad on the way to

Average length of employment (years)

10.3

10.7

11.4

work is always a happy event. We

Employee turnover (%)

5.1

6.6

11.5*

will continue to measure theWorkplace incidents

25

39

46

effects of and enhance these* Increase is due to the effect of support for single employees.

initiatives throughout the Company.

Providing childcare on seven public
holidays in FY2006

Internal Communications
Feedback from Employee

Employee Awareness Surveys

The LAWSON Intranet hosts a forum for the exchange of employee

We conduct employee awareness surveys to monitor employee

opinions, reflecting their input regarding business improvement andsatisfaction. The FY2006 survey demonstrated support for

store management. Submitted opinions are mostly supervisors’

management policies and a high priority on teamwork and creative

suggestions to headquarters. After accumulating such opinions, thework carried out independently. However, compared to the previous

appropriate person in the relevant department posts a response.

year this year’s survey also indicated a slight decline in employee

Extending this internal communications tool to allow any employee tosatisfaction and a feeling that workloads had increased. By continuing

post or check comments prevents duplicate postings and assures

to conduct such surveys, LAWSON intends to define the issues it faces

the accumulation and sharing of information.

as it works towards further improvements in the working environment.

“Even once I become a mother with kids, I want to continue working with the store.”It’s been almost two years since I became a supervisor. The job is quite demanding, but I had a burning ambition to
be a supervisor when I joined the Company, so I am strongly motivated to do my best. Especially when I hear thatfranchise owners have increased their customer numbers, or that sales have gone up because of the initiatives we
implemented together, I get a real sense of “Yes! We’ve done it!” I love LAWSON and I love my job as a supervisor,
so I really want to keep on working even after I get married and have children. However, I realize it might be difficult
to do this, as I recognize that stores that are open year-round. It would be good if we had a system whereby
supervisors could return to work after they have raised their children. Also, if we had specialist training for supervisors
in fields such as labor consulting or accounting similar to store instructors, we would have categories of supervisors
who would be specialized in both front- and back-office store operations. They would find it easier to plan theirworking hours even while they are bringing up a family, and we would be using supervisors’ experience closer to thefront line. Perhaps other supervisors could also specialize in sales-related areas.
I hope the Company will develop a system that lets me work on the front line, even after I marry and raise a family.

Satoko Ito
Supervisor,
Shizuoka East District

42

Business Partner Relations
LAWSON grows with its business partners, and they remain essential to its objectives of anticipating theneeds of the community and commercializing its innovative ideas. To ensure ongoing cooperation, we
prioritize trust-based relationships developed through fairness in our transactions.

Promoting Equitable Transactions
To form trust-based relationships with business partners, theRespondents to the January 2007 questionnaire gave us

LAWSON Code of Ethics calls for fair and transparent

higher marks than in last year’s survey for our progress toward

transactions that are conducted sincerely and diligently. We

becoming “The ‘Hot’ Station in the Neighborhood,” as well as on

educate merchandisers to discourage them from taking

proactive compliance and information security efforts. At theadvantage of potentially superior negotiating positions.

same time, some issues arose concerning employee approaches

Specific measures to enable employees to verify theto transactions and the responsiveness of store employees,

legitimacy of their actions include e-learning for all employees,

although in general these results were positive. We accept theand raising awareness at training sessions prior to promoting

sincerity and validity of these responses and pass them on topersonnel to positions as assistant merchandisers or store

appropriate divisions so they can consider improvements.

development assistants. We also provide a compliancen Business Partner Questionnaire Results

handbook for merchandisers so they can review their activities.

Progress toward becoming“The ‘Hot’ Station in the Neighborhood”

LAWSON conducts a3

yearly survey of business2

partners specializing in such

1

fields as product delivery andstore construction. Survey

Employeeapproach totransactions

0
-1
-2

Proactivecomplianceefforts-3

results provide an early
awareness of potential problems, enabling us to take abroad-based approach whenrevising and enhancing ourCompliance handbook

compliance structure.

Proactive information
security efforts

Store employee
responsivenessNote: Closer to 3 is positive;
closer to -3 is negative.

Our Valuable Business Partners
LAWSON’s business partners are valuable allies, as they offer

production process management systems at rice product andknowledge and expertise and are essential to the Company’sother production facilities, and to support operational

objectives of anticipating the needs of the community andenhancements. We work withcommercializing innovative ideas. To ensure partners’ ongoing

rice

cooperation, we prioritize trust-based relationships developed

employees to reduce raw

through fairness in our transactions. We recognize that we arematerial cost ratios and elimi-

only able to deliver safe and reliable products to customers

nate unnecessary, incon-

through the cooperation of our business partners. Through theirsistent and wasteful elements

daily efforts, our Merchandise & Logistics Division and Quality

in the production process by

Control Office work to demonstrate to business partners that

inspecting and comparing

providing safe and reliable products is our highest priority.

current and historical produc-

To support its business partners, LAWSON established a43

vendor support team in March 2005 to offer advice on utilizing

production

tion process data.

facility

Shareholder and Investor Relations
LAWSON is committed to raising corporate value through medium- to long-term growth. At the same time,
we strive to remain reliable and maintain the trust of our shareholders and other investors through timely,
appropriate and unbiased disclosure and proactive communications.

Fairly Assessing Corporate Value
To fulfill its social responsibilities and corporate governance

We go beyond mere accountability, taking a proactive

obligations, LAWSON has formulated Basic Principles on Disclosure.

approach in disclosing material information to capital market par-We disclose corporate information with full recognition that timely

ticipants and media organizations in a timely, appropriate andand appropriate disclosure is the basis of healthy capital market

unbiased manner. Through these efforts, we strive to achieve aformation and provides peace of mind to customers of LAWSON

high level of trust and ensure that capital markets assess ourstores.

corporate value fairly.

n Total Operating Revenues(Consolidated)n Net Income

n Net Income per Share(Consolidated)(Billions of yen)(Consolidated)(Billions of yen)300

250.3 245.6 254.3

268.0 283.0

25
20

200

18.5

20.4

22.0

20.9

15
10

100

250

150

215.50198.47201.50175.78200(Fiscal year)

42.9
120

22.7

35.0

30

40.5 47.9
90.00

100.00

60
30
0

70.00

60

82.35

0
2002 2003 2004 2005 2006

（％）

90

50

0
2002 2003 2004 2005 2006

(Yen)

100

5
0

(Non-Consolidated) / Payout Ratio (%)

(Yen)

150

8.8

n Dividends per Share (Yen)

41.00 41.00

02002 2003 2004 2005 2006

(Fiscal year)

2002 2003 2004 2005 2006

(Fiscal year)(Fiscal year)

Note: Fractional amounts rounded down

Communicating with Shareholders and Investors
In addition to legal disclosure requirements, LAWSON discloses
information voluntarily through detailed annual and business reports,monthly corporate information updates and video coverage of theGeneral Meeting of Shareholders. We also hold quarterly earnings
announcements and small-group meetings, engaging in direct
dialogs with securities analysts and institutional investors.

Earnings announcement

LAWSON Selected by Securities Analysts for Excellence in Disclosure
LAWSON was chosen as the top company in the retailbusiness category in the FY2006 Superior Corporate
Disclosure Awards. These awards were introduced in
FY1995 by the Disclosure Research Council of the
Security Analysts Association of Japan. In these rankings,
companies are segmented by business type and theirdisclosure status is assessed through various methods by
securities analysts.
The association accorded LAWSON’s management
high marks for its disclosure stance and approach, notingthat top management provides thorough explanations on
business policies during quarterly earnings announcements and at other events, the investor relations
department is easily accessible, and general disclosure

and investor relations activities clearly define LAWSON’s
corporate philosophy and medium- to long-term vision.
Regarding the fairness of disclosure, we earned an
overall superior ranking within the retail industry. We
received high ratings for unbiased disclosure, evinced by
the rapid website availability of documents pertaining toquarterly earnings announcements, monthly data andother materials, as well as a full range of information
published in English. For disclosure of corporate
governance information, we were also evaluated favorably
for our detailed explanations on capital policies, policy for
return to shareholders and business goals.
We will continue to emphasize and enhance ourdisclosure of information.

44

Third-Party Opinion
LAWSON asked a third party to evaluate its environmental
preservation activities. We will take these views and suggestions
to heart, using them to improve and develop our future activities.

“Using the stores as a medium, provide opportunities
for environmental consideration and activity.”
Switch Environmental Group
Representatives Shingo Koizumi(Environmental and Information Studies, Environmental andInformation Studies Department, Musashi Institute of Technology)

Prototype bags designed for LAWSON by the Switch Environmental Group(Masayuki Ichikawa, left; Shingo Koizumi, center; and Yasuko Matsumoto)

Masayuki Ichikawa(Environmental and Information Studies, Environmental andInformation Studies Department, Musashi Institute of Technology)

Designer

Yasuko Matsumoto(Scenography, Display and Fashion Design; Department of Sculpture;
Musashino Art University)

throughout its store network to raise customers’ environmental
awareness and collect donations. We would like to see more such
efforts that leverage the strengths of convenience stores.
The Convenience Store Eco-Bag—distributed since March—is

We formed the Switch Environmental Group in June 2005. The

highly commendable. However, cashiers often appear flusteredgroup grew out of the desire to raise public consciousness about thewhen customers offer these bags at the register. To popularize theenvironment and transition society toward sustainable systems. Our

use of these bags, we believe store staff need to have a bettermain activity so far has been to provide policy recommendations onunderstanding of this movement.

corporate environmental activities. After forming the group, we were

Although disclosing such information in this report and on theconsidering ways to approach companies from our position as

LAWSON website is certainly necessary, surely the storesstudents when we learned of LAWSON’s 30th anniversary contest

themselves are LAWSON’s closest point of contact with its

on “The Convenience Store of the Future.” We submitted our idea forcustomers. We would like LAWSON to use its stores to raisea system to reduce shopping bag use and won a prize. In thecustomer awareness and consideration of environmental

process, had the chance to exchange views with LAWSON

preservation, nudging them on to the next step—environmental

representatives. Our suggestions focused on prototyping andaction. We also believe that achieving LAWSON’s corporate

popularizing personal bags for customer use. LAWSON repre-

philosophy of “Happiness and Harmony in our Community” requires

sentatives considered our opinions and suggestions at length,

community-specific contributions. To accomplish this aim, wemaking the experience highly valuable to us.

believe that LAWSON needs to ask for more input from store

LAWSON has the twin advantages of a network of around 8,600

employees. We would like the opinions of people such as ourselvesstores nationwide and a sense of proximity to consumers. We hope

to be reflected as well. LAWSON has a very favorable image as a

LAWSON will leverage these strengths to use stores as a medium for

dynamic company at the forefront of its industry that is implementing

educating consumers on environmental issues and encouraging

a variety of environmental conservation measures. We hope to seethem to think about and help the environment. One example of these

LAWSON continue to take on diverse challenges and promote

activities is the LAWSON Green Fund. The fund uses in-store notices

environmental activities on an ongoing basis.

LAWSON’s History
1975 April
June
1976 October1977 April
November45

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
1978 January
1980 September Business tie-up established between LAWSON and Sun Chain
1982 March
Began accepting home delivery service orders
1986 April
Began sales of Kara-age Kun fried chicken nuggets
1988 May
Began employing a new three-delivery system
September Use of point-of-sale tracking system commenced
Merger with Sun Chain Corporation, creating Daiei Convenience Systems
1989 MarchCo., Ltd.
October
Began agency service to accept electricity and gas bill payments
Began employing the slogan “The ‘Hot’ Station in the Neighborhood” in1991 Februaryinternal and external communications
1992 September Started collecting donations for charities working to protect the global
environment (Currently called “LAWSON Green Fund”)
1993 April
Commenced Clean Aid activities
Conducted recovery and donation activities in wake of Kobe earthquake
1995 January
Began handling sales of stamps, postcards and revenue stamps
1996 March
April
Initiated LAWSON Ticket sales
June
Company name changed to LAWSON, INC.
Opened first LAWSON store in Shanghai, People’s Republic of China
July
1997 March
Started “Every Store Can Help” campaign
July
Commenced operations in Okinawa, marking the Company’s extension ofoperations to all 47 Japanese prefectures

1998 February
Installed Loppi multimedia data terminals at all stores
November Established the LAWSON Code of Ethics
December Received ISO14001 certification, the environmental management systemstandard
2000 July
Company’s shares listed on the First Sections of the Tokyo Stock Exchange
and Osaka Securities Exchange
Established i-Convenience, Inc.
October
2001 May
Established LAWSON ATM Networks, Inc.
July
Opened the first NATURAL LAWSON store
2002 February
Established LAWSON CS Card, INC.
June
Introduced the LAWSON PASS card
November Established the Compliance Promotion Committee
Established post office counters at all stores2003 January
May
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
Augustactivities
2004 June
Appointed a compliance promotion officer
2005 March
Announced Personal Information Protection Policy
May
Opened the first LAWSON STORE100
Created new corporate philosophy to mark the 30th anniversary of
June
LAWSON’s founding
2006 January
Formally started waste-oil recycling
September Became first private company to sign agreement with Japan’s Ministry of
the Environment
December Opened first HAPPY LAWSON store, designed to support child-raising2007 January
Began full-fledged development of LAWSON PLUS stores
January
Launched MY LAWSON POINT card without credit function
February
Formed operating and capital alliance with naturalBeat Co., Ltd.

Company Overview (As of February 28, 2007)
Name
Address

Store Information (As of February 28, 2007)

LAWSON, INC.

StoresTokyo Headquarters:
East Tower, Gate City Osaki, 11-2,
Osaki 1-chome, Shinagawa-ku
Tokyo 141-8643, Japan
Osaka Headquarters:
9-1, Toyotsu-cho, Suita City Osaka
564-0051, Japan8,564

In Japan,

Chugoku Region Chubu Region Hokkaido
Region509
1,229StoresTottori
Shimane
Okayama
Hiroshima
Yamaguchi

President and CEO Takeshi Niinami
April 15, 1975
Established¥58,506,644,000
CapitalTotal
3,614 (consolidated basis)
Employees
Scope of Operation Development of LAWSON convenience

NiigataToyamaIshikawa
Fukui

509

NaganoGifu
Shizuoka
Aichi
Mie

108
99
72
85
61
139
104
148
329
84

Total

1,229

Yamanashi

store franchise chain

500

Stores

82
74
119
124
110

Tohoku Region

770
StoresStore Revenues ¥1,386.6 billion (FY2006)
8,564 (in Japan)
StoresStore Coverage All 47 Japanese prefectures, as well as
Shanghai, People’s Republic of China(joint venture)

Shanghai291(As of December 31, 2006)

151
172
157
136
57
97

Total

770

Kyushu Region Shikoku Region Kinki Region

Kanto Region

986

2,286

429

1,855

Stores

China

Aomori
Iwate
Miyagi
Akita
Yamagata
Fukushima

Fukuoka
Saga
Nagasaki
Kumamoto
Oita
MiyazakiKagoshima
Okinawa

316
60
79
91
119
84
107
130

Total

986

StoresTokushima
Kagawa
Ehime
Kochi

108
97
163
61

Total

429

Stores
Shiga
Kyoto
Osaka
Hyogo
Nara
Wakayama
Total

125
193
835
482
104
116
1,855

StoresIbarakiTochigi
Gunma
Saitama
Chiba
Tokyo
Kanagawa
Total

2,286

n Consolidated Net Salesn Directly Managed Stores/Franchise Stores n Average Customers/Average Purchase n Average Daily Sales(Billions of yen)

(Stores)

1,500

1,294.0 1,288.3 1,329.0 1,361.7

1,386.6■Franchise stores■Directly managed stores

10,000

1,000

8,000

500

0
2002 2003 2004 2005 2006

800

800

600 611

7,291 7,472 7,731 7,958 8,093

2,000
0

■ Average customers

334

349

346

408

471

803
598

816

597

820
585

■New stores(Thousands of yen)

1,000

500

813 800

400

1,000

8,077 8,366 8,564
7,625 7,821

6,000
4,000

■ Average purchase (yen)585■New stores(Thousands of yen)

489 484 488 480 477
436 448 426 429

457

600

300

400

400

200

200

200

100

0

0

0

105
103
69
333
287
895
494

2002 2003 2004 2005 2006

2002 2003 2004 2005 2006

2002 2003 2004 2005 2006

(Fiscal year)(Fiscal year)(Fiscal year)(Fiscal year)

Note: Store numbers include NATURALLAWSON and LAWSON STORE100.
nnConsolidated Subsidiaries
LAWSON TICKET, INC.

BestPractice Inc.

Listed on JASDAQ, sells tickets for concerts, movies, sporting and other events, mainly through Loppi (multimedia terminals) located inside Lawson stores.

All activities related to conducting convenience store surveys and proposals for improving LAWSON stores.

i-Convenience, Inc.

NATURAL LAWSON, Inc.

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

Development of the NATURAL LAWSON store format-where
beauty, health and comfort are keywords; product planningand development; oversight of shop management.

LAWSON ATM Networks, Inc.

VALUE LAWSON, Inc.

Installation, operation and management of jointly operated
ATMs in LAWSON stores and deposits/withdrawals, transfers and related financial services via ATMs outsourced frompartner financial institutions.

Format development, product planning, development andoperational guidance of shops of the LAWSON STORE100
format, which offers value products at simple prices, primarily targeting women and senior shoppers.

Affiliated Companies

LAWSON CS Card, INC.

SHANGHAI HUALIAN LAWSON Co., Ltd.

naturalBeat Co., Ltd.

Issuance of LAWSON PASS credit cards to
LAWSON customers and provision of cardbased services through Loppi multimedia terminals and other channels.

Development of LAWSON store chain in
Shanghai, PRC, through a joint venture with
Hualian Group Corporation.

Develops products such as sandwiches, deli products sweets andbeverages, with a focus on attentive preparation, natural products
and as few additives as possible for sales in NATURAL LAWSON
stores.

46

Environmental and Social
Activities Report 2007

LAWSON, INC.
CSR Promotion Office
1-11-2 Osaki, Shinagawa-ku, Tokyo 141-8643, Japan
Tel: +81-3-5435-1350
Fax: +81-3-5759-6944
URL: http://www.lawson.co.jp/company/e/Published Oct. 2007
Next publication scheduled for Aug 2008
© 1997–2007 LAWSON, INC. All rights reserved.

B-(2)-060001

White wood from forest thinning,approval number K0301090• This report is printed on forest-thinning paper (10% of materials from thinning domestic forests,
90% from recycled paper recovered in the marketplace).
• Printed using soybean-based inks approved by the American Soybean Association.

Printed in Japan“Happiness and Harmony
in Our Community”