Note: This document is a translation of the original Japanese document and is only for reference purposes. In the event ofany discrepancy between this translated document and the Japanese original, the latter shall prevail.

Consolidated Financial Results for the Fiscal Year
Ended February 29, 2024
(under Japanese GAAP)
April 10, 2024
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:
TEL:

LIFE CORPORATIONTokyo Stock Exchange8194
http://www.lifecorp.jp/
Takaharu Iwasaki, Representative Director and President
Koichi Miyata, General Manager, Finance Department, and General Manager, Investor
Relations Department+81-3-6717-2500 (from overseas)

Scheduled date of Annual General Meeting of Shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file Annual Securities Report:
Preparation of supplementary material on annual financial results:
Holding of annual financial results meeting:1.

May 23, 2024
May 24, 2024
May 24, 2024
Yes
Yes (for institutional investors andanalysts)(Amounts less than one million yen are rounded down.)
Consolidated financial results for the fiscal year ended February 29, 2024
(from March 1, 2023 to February 29, 2024)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Operating revenue

Operating profit

Profit attributable toowners of parent

Ordinary profit

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

February 29, 2024

809,709

5.8

24,11826.0

24,94824.6

16,93827.1–

19,148(16.5)

20,015(15.5)

13,327(12.4)

February 28, 2023
765,426
Note: Comprehensive income
Fiscal year ended February 29, 2024:
Fiscal year ended February 28, 2023:¥18,371 million [22.6%]¥14,983 million [(2.2)%]

Reference: Operating revenue is the total of net sales and receipts from operating revenue.
Net sales
Fiscal year ended February 29, 2024:
Fiscal year ended February 28, 2023:¥780,028 million [5.6%]¥738,494 million [%]Receipts from operating revenue
Fiscal year ended February 29, 2024:
Fiscal year ended February 28, 2023:¥29,681 million [10.2%]¥26,931 million [%]Operating
profit/operating
revenue

Earnings per share

Diluted earnings per
share

Ordinary profit/
total assets

Fiscal year ended

Yen

Yen

%

%

%

February 29, 2024

360.93

–

13.1

8.8

3.0

Return on equity

February 28, 2023
284.35
–
11.5
7.3
2.5
Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc., from the beginningof the fiscal year ended February 28, 2023. Figures for the fiscal year ended February 28, 2023 represent the amounts after applying
the said accounting standard, etc., and do not include year-on-year changes for operating revenue.
Reference: Share of profit (loss) of entities accounted for using equity method
Fiscal year ended February 29, 2024:¥ million
Fiscal year ended February 28, 2023:¥ million(2) Consolidated financial position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

February 29, 2024

287,146

136,85547.7

2,916.09

February 28, 2023

280,810122,00243.4

2,599.79

Cash flows from operating
activities

Cash flows from investing
activities

Cash flows from financing
activities

Cash and cash equivalents
at end of period

Fiscal year ended

Millions of yen

Millions of yen

Millions of yen

Millions of yen

February 29, 2024

41,700(17,357)(25,464)

8,206

February 28, 2023

23,899(23,839)

(142)

9,327

Reference: Equity
As of February 29, 2024:
As of February 28, 2023:¥136,855 million¥122,002 million(3) Consolidated cash flows

2.

Cash dividends
Annual dividends
First
SecondThird
quarter-end quarter-end quarter-end

Fiscalyear-end

Total

Total cash
dividends(Annual)Dividend
payout ratio(Consolidated)

Ratio ofdividends to
net assets(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

Fiscal year ended
February 28, 2023

–

35.00

–

35.00

70.00

3,288

24.6

2.8

Fiscal year ended
February 29, 2024

–

40.00

–

50.00

90.00

4,231

24.9

3.3

Fiscal year ending
February 28, 2025
(Forecast)

–

50.00

–

50.00

100.0027.6

3.

Consolidated earnings forecasts for the fiscal year ending February 28, 2025
(from March 1, 2024 to February 28, 2025)(Percentages indicate year-on-year changes.)
Operating revenue

Fiscal year ending
February 28, 2025

Operating profit

Profit attributable toowners of parent

Ordinary profit

Earnings per
share

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

853,400

5.4

24,7002.4

25,5002.2

17,0000.4

362.23

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial
statements
i. Changes in accounting policies due to revisions to accounting standards and other regulations: None
ii. Changes in accounting policies due to other reasons: Noneiii. Changes in accounting estimates: Yes
iv. Restatement: None
Note: For details, please refer to 5. Consolidated financial statements and significant notes thereto, (5)Notes to consolidated financial statements, “Changes in accounting estimates” on page 16 of theattached material.
(3) Number of issued shares (ordinary shares)
i. Total number of issued shares at the end of the period (including treasury shares)
As of February 29, 2024
49,450,800 shares
As of February 28, 2023
49,450,800 shares
ii. Number of treasury shares at the end of the period
As of February 29, 2024
2,519,531 shares
As of February 28, 2023
2,522,786 sharesiii. Average number of shares during the period
Fiscal year ended February 29, 2024 46,930,194 sharesFiscal year ended February 28, 2023 46,871,327 shares
Note: The number of treasury shares at the end of the period includes the Company’s shares (80,500 shares
as of February 29, 2024, and 84,300 shares as of February 28, 2023) held by Custody Bank of Japan,
Ltd. (Trust Account) as the trust assets for the “Trust for Delivering Shares to Directors.”
In addition, the Company’s shares held by Custody Bank of Japan, Ltd. (Trust Account) are includedin the treasury shares that are excluded from the calculation of the average number of shares during
the period. (81,825 shares for the fiscal year ended February 29, 2024, and 86,432 shares for the
fiscal year ended February 28, 2023)
Reference: Overview of non-consolidated financial results1.

Non-consolidated financial results for the fiscal year ended February 29, 2024
(from March 1, 2023 to February 29, 2024)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Operating revenue

Operating profit

Ordinary profit

ProfitFiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

February 29, 2024

809,472

5.8

23,793

26.2

24,56524.8

16,706

28.7

February 28, 2023

765,240–

18,860(17.3)

19,683(16.4)

12,977(13.9)

Earnings per share

Diluted earnings per share

Fiscal year ended

Yen

Yen

February 29, 2024

355.99February 28, 2023

276.87

Note:The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc., from the beginningof the fiscal year ended February 28, 2023. Figures for the fiscal year ended February 28, 2023 represent the amounts after applying
the said accounting standard, etc., and do not include year-on-year changes for operating revenue.

(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

February 29, 2024

289,603

134,04346.3

2,856.17

February 28, 2023

283,477

120,56342.5

2,569.11

Reference: Equity
As of February 29, 2024:
As of February 28, 2023:

2.

¥134,043 million¥120,563 million

Non-consolidated earnings forecasts for the fiscal year ending February 28, 2025
(from March 1, 2024 to February 28, 2025)(Percentages indicate year-on-year changes.)
Operating revenue
Millions of yen

Fiscal year ending
February 28, 2025

853,100

Ordinary profit%

5.4

ProfitMillions of yen

25,050%2.0

Earnings per share

Millions of yen%

Yen

16,700(0.0)

355.84* Financial results reports are not required to be subjected to audit conducted by certified public accountants oran audit corporation.
* Proper use of earnings forecasts, and other special matters
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable. Actual
business and other results may differ substantially due to various factors. Please refer to “(4) Future outlook” in“1. Overview of operating results, etc.” on page 4 of the attached material for the suppositions that form theassumptions for earnings forecasts and cautions concerning the use thereof.

Attached material
1. Overview of operating results, etc........................................................................................................................................ 2(1) Overview of operating results for the fiscal year under review.......................................................................................2(2) Overview of financial position for the fiscal year under review .....................................................................................3(3) Overview of cash flows for the fiscal year under review ................................................................................................4(4) Future outlook.................................................................................................................................................................4
2. Basic concept regarding selection of accounting standards.................................................................................................. 5
3. Consolidated financial statements and significant notes thereto .......................................................................................... 6(1) Consolidated balance sheet .............................................................................................................................................6(2) Consolidated statement of income and consolidated statement of comprehensive income .............................................8
Consolidated statement of income ........................................................................................................................................8
Consolidated statement of comprehensive income ...............................................................................................................9(3) Consolidated statement of changes in equity ................................................................................................................ 10(4) Consolidated statement of cash flows ........................................................................................................................... 12(5) Notes to consolidated financial statements ................................................................................................................... 13
Notes on premise of going concern ..................................................................................................................................... 13
Significant accounting policies for preparation of consolidated financial statements ......................................................... 13
Changes in accounting estimates......................................................................................................................................... 16
Additional information ........................................................................................................................................................ 16
Consolidated balance sheet ................................................................................................................................................. 17
Consolidated statement of income ...................................................................................................................................... 18
Consolidated statement of comprehensive income ............................................................................................................. 21
Consolidated statement of changes in equity ...................................................................................................................... 21
Consolidated statement of cash flows ................................................................................................................................. 25
Segment information, etc. ................................................................................................................................................... 26
Per share information .......................................................................................................................................................... 31
Significant subsequent events ............................................................................................................................................. 31
4. Non-consolidated financial statements and significant notes thereto ................................................................................. 32(1) Balance sheet ................................................................................................................................................................ 32(2) Statement of income ..................................................................................................................................................... 34(3) Statement of changes in equity ..................................................................................................................................... 35
5. Other .................................................................................................................................................................................. 39-1-

1. Overview of operating results, etc.
(1) Overview of operating results for the fiscal year under review
During the current fiscal year, the outlook for the Japanese economy remained uncertain mainly due
to ongoing inflation, the impact from the depreciation of the yen, and the Russian invasion of
Ukraine as well as growing tensions in the Middle East. Meanwhile, socioeconomic activities inJapan were normalized following the change in the legal classification of COVID-19 and theabolition of activity restrictions, and the rate of economic growth showed underlying strength
despite stagnation in some areas and companies generally had strong earnings results.
In the food supermarket industry, which is the Group’s area of business, the environment
surrounding corporate operations is unpredictable due to rising costs on a variety of fronts such as
personnel expenses, despite generally favorable revenue due to increased product prices.
In this economic environment, the Group is working on the 7th Medium-Term Plan from the current
fiscal year to realize our Corporate Philosophy, Vision, and the “True to LIFE Declaration,” with aview to looking toward to what we want to be in fiscal 2030.
As a specific initiative to promote management strategies based on the 7th Medium-Term Plan, we
renewed the smartphone app for customers in July, adding more convenient and valuable features,
and are steadily increasing the number of users. We aim to further enhance the app. We haveintroduced electronic shelf labels in stores in the Osaka Region following the Tokyo Region.
Additionally, we expanded the scope of the automated ordering service using AI-driven demand
forecasting that was first introduced for daily delivery food section in February 2021 to fresh
produce departments orders starting in February 2024. In April 2024, we plan to have the system inoperation in all our stores as we steadily advance initiatives aimed at realizing rewarding
workplaces, including reduced workloads and operational streamlining.
As part of our efforts to contribute towards the realization of a sustainable and flourishing society,some of our stores and logistics centers in the Osaka Region have been donating products tochildren’s cafeterias and other facilities offering free meals for children and other welfare programs.
These products can no longer be sold mainly because there is package damage or they have reachedtheir sell-by date according to internal rules although there are no problems regarding productquality. This activity was also started in logistics centers in the Tokyo Region in September andToyonaka City in the Osaka Region in January 2024. In March 2023, we formed the “Tokyo Region
Supermarket Logistics Study Group” to make concrete efforts toward building sustainable foodlogistics, and as the number of companies endorsing this initiative has increased to ten as of the endof February 2024, we received the “53rd Food Industry Technology Achievement Award(Sustainability Category)” in recognition of our efforts. Additionally, the Tempozan biogas power
generation facility won the New Energy Foundation Chairman’s Award in the introduction activities
segment in the 2023 New Energy Awards held by the New Energy Foundation.
In February 2024, to promote further workstyle reforms and to enhance productivity, the Group
moved our Tokyo Head Office from Taito-ku to Shinagawa Seaside in Shinagawa-ku.
We opened following new stores: Takarazuka Nakayamadera Store (Hyogo) and BIO-RAL
PARCO_ya Ueno Store (Tokyo) in March, Kawasaki Tsukagoshi Store (Kanagawa) and Central
Square LaLaport Kadoma Store (Osaka), which was our 300th store, in April, and Umejima Ekimae
Store (Tokyo) and BIO-RAL Ariake Garden Store (Tokyo), which our first “Large BIO-RAL Cafe”
is attached to, in June, Sakuranomiya Store (Osaka) in September, Kachidoki Mid Store (Tokyo) in
October, Shimomeguro Store (Tokyo) in November, and Hanshin Ashiya Store (Hyogo) in January.
Also, we have closed one store. As for existing stores, we undertook renovations at a total of ninestores including Oizumigakuen Ekimae Store, Kema Store, Kasuganomichi Store, Higashinakano
Store, Ishizu Store, Konohanadempo Store, Kinshicho Ekimae Store, Kumata Store, and Sekime
Store enhancing the product lineups such as BIO-RAL brand products and frozen foods.
-2-The Group’s operating revenue totaled ¥809,709 million (up 5.8% year on year) as a result of the
expansion of new stores and online supermarkets, the strengthening of private brand products suchas “BIO-RAL,” and implementing product initiatives that sought to enhance freshness and taste ofour products. On the other hand, as for selling, general and administrative expenses, the Group saw
increases in various property expenses such as rent expenses from opening new stores, andpersonnel expenses from increased hiring activities. However, with initiatives to increase
productivity and optimize costs leading to results exceeding the plan and aggressive investment in
the future producing results, operating profit was ¥24,118 million (up 26.0% year on year), ordinary
profit was ¥24,948 million (up 24.6% year on year), and profit attributable to owners of parent was¥16,938 million (up 27.1% year on year).
Results by segment are as follows:(Retail Business)
Operating revenue was ¥809,472 million (up 5.8% year on year), with net sales of ¥780,028 million(up 5.6% year on year), and segment profit of ¥24,565 million (up 24.8% year on year).
Net sales by department were ¥339,572 million (up 5.1% year on year) for fresh produce, ¥349,672
million (up 6.7% year on year) for general food, ¥67,630 million (up 4.6% year on year) forlifestyle products, and ¥23,153 million (up 0.7% year on year) for apparel.
(Other Business)
Operating revenue from LIFE FINANCIAL SERVICE was ¥2,749 million (up 6.7% year on year),with segment profit of ¥382 million (up 15.2% year on year).
(2) Overview of financial position for the fiscal year under review
The Group considers the maintenance and securing of an appropriate level of liquid funds as animportant financial policy in order to continue to smoothly carry out its business activities.
In order to achieve continuous corporate growth, we plan to aggressively invest in new store
openings and the renovation of existing stores, and we will do our best to fund this by using net
cash flows from operating activities, with any shortfall to be financed by borrowings from financial
institutions.
Total assets of the Group at the end of the current fiscal year were ¥287,146 million, an increase of¥6,335 million from the end of the previous fiscal year.
Current assets totaled ¥82,849 million, an increase of ¥2,358 million from the end of the previous
fiscal year. This was mainly due to a ¥2,407 million increase in accounts receivable - other.
Non-current assets totaled ¥204,297 million, an increase of ¥3,977 million from the end of theprevious fiscal year. This was mainly due to increases of ¥435 million in property, plant andequipment, ¥2,266 million in intangible assets, and ¥847 million in guarantee deposits from the endof the previous fiscal year, resulting from new store openings and renovations.
Total liabilities at the end of the current fiscal year were ¥150,290 million, a decrease of ¥8,517
million from the end of the previous fiscal year. This was mainly due to a ¥20,580 million decreasein the total of short-term borrowings and long-term borrowings, while accounts payable - trade
increased by ¥3,360 million, accounts payable - other increased by ¥4,593 million, and income
taxes payable increased by ¥2,972 million.
Total net assets at the end of the current fiscal year were ¥136,855 million, an increase of ¥14,852
million from the end of the previous fiscal year. This was mainly due to a ¥13,412 million increase
in retained earnings.

-3-(3) Overview of cash flows for the fiscal year under review
Cash and cash equivalents (“cash”) at the end of the fiscal year under review totaled ¥8,206 million(down 12.0% year on year).
The main reasons for the decrease are as follows.
Cash flows from operating activities
Net cash provided by operating activities amounted to ¥41,700 million in the current fiscal year (up74.5% year on year).
This was mainly due to ¥23,178 million in profit before income taxes, and ¥16,034 million in
depreciation, a non-cash gain/loss item.
Cash flows from investing activities
Net cash used in investing activities amounted to ¥17,357 million in the current fiscal year (down
27.2% year on year).
This was mainly due to expenditures of ¥13,573 million for the purchase of property, plant andequipment, including opening new stores, and renovations of existing stores.
Cash flows from financing activities
Net cash used in financing activities amounted to ¥25,464 million in the current fiscal year(compared to ¥142 million in cash used in financing activities in the previous year).
This was mainly due to a net decrease in short-term borrowings of ¥24,720 million and repaymentsof long-term borrowings of ¥8,860 million despite proceeds from long-term borrowings of ¥13,000
million.

(4) Future outlook
In terms of the future outlook for the Japanese economy, a real recovery in inbound demand as wellas wage increases that exceed inflation seem possible, and we expect the economy to follow a trackof recovery driven by expanded personal consumption. Overseas, however, while economies
showed underlying strength, frequent natural disasters, fiscal, monetary, and trade policies in
Europe and the United States, economic trends in China, and heightened geopolitical risks continue
to affect the Japanese economy, and the situation remains less optimistic.
In the retail industry, increasing financial assets and rising wages, etc. are supporting consumption.
However, challenging conditions remain amid inflation and increasingly serious labor shortages. As
a result, we are seeing more drastic moves in the industry, including drugstores expanding theirfood offerings, growth in discount-style retailing, and an expansion beyond traditional operations
into the fresh food segment, including by major online retailers.
In this challenging environment, to become the stores most trusted by customers in local
communities, and to achieve even greater success, we are advancing our 7th Medium-Term Plan
starting in the current fiscal year to realize our Corporate Philosophy, Vision and the “True to LIFE
Declaration,” with a focus on our vision for the fiscal year ending February 28, 2030.
In the 7th Medium-Term Plan, the three main themes that we address are as follows.
-

Investment in people – We aim to increase motivation through employee growth andsatisfaction, which will advance the 7th Medium-Term Plan and lead to company growth.

-

Breaking away from homogeneous competition – We aim to provide customers with a
comfortable shopping experience by expanding our internet business while refining our uniqueproducts and services in order to realize seamless and convenient shopping.

-4-

-

Contributing towards the realization of a sustainable and flourishing society – As a “lifeline forthe community” – we aim to implement initiatives necessary for a sustainable and flourishingsociety (reduction of environmental impacts, contribution to the local community, etc.).

In promoting the three themes, all employees personally engage in “kaizen” activities under theslogan of “Linking the Circle of Kaizen” in order to promote efficiency and secure funds forinvestment to realize the 7th Medium-Term Plan, even in the current situation of labor shortages.
Through the abovementioned measures, we aim to improve our corporate value and achievesustained growth, as a business entity that is trusted by customers, society and employees.
The economy is following a track of recovery with the normalization of socioeconomic activities,
and wages are expected to rise, but the impact of product prices rising at a more moderate pace andof continuous inflation on consumption makes it extremely difficult to forecast results trends. Even
though the outlook remains unclear, however, for the second year of the 7th Medium-Term Plan
(fiscal 2024), the Group forecasts operating revenue of ¥853.4 billion (up 5.4% year on year),
operating profit of ¥24.7 billion (up 2.4% year on year), ordinary profit of ¥25.5 billion (up 2.2%
year on year), and profit attributable to owners of parent of ¥17.0 billion (up 0.4% year on year).
Although we may revise our business outlook in response to changes in the social and economic
environment, we steadily implement all measures to “realize our Corporate Philosophy, Vision, andthe True to LIFE Declaration,” which are the goals of the 7th Medium-Term Plan.

2. Basic concept regarding selection of accounting standards
The Group currently operates and raises funds mainly in Japan and has decided to apply Japanese
GAAP for the time being.
The Group intends to adopt International Financial Reporting Standards (IFRS) in an appropriatemanner based on future business developments and trends of other companies in Japan.

-5-3. Consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise and finished goods
Raw materials and supplies
Accounts receivable - other
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Furniture and fixtures
Accumulated depreciation
Furniture and fixtures, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

As of February 28, 2023

As of February 29, 2024

9,727
9,209
25,811
250
29,664
5,826
80,4908,606
9,560
27,900273
32,072
4,436
82,849199,324(107,392)
91,932
11,256(6,474)
4,782
60,234(43,275)
16,95839,614
2,593
–
2,593
155,880
3,218

207,014(115,282)
91,732
11,914(7,349)4,564
65,413(47,084)
18,32939,614
2,084
(9)
2,075
156,3155,484*2*2, *3

*2
*1

-6-

1,487
7,711
–
5,586
24,513
1,963(41)
41,220200,319
280,810*2*2, *3

*2
*1

1,910
7,186
851
5,501
25,3601,729(42)
42,497204,297
287,146(Millions of yen)

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Accounts payable - other
Income taxes payable
Provision for bonuses
Provision for sales promotion expenses
Contract liabilities
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities for land revaluation
Provision for share awards for directors (and otherofficers)
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for landRemeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

As of February 28, 2023

As of February 29, 2024

41,971
44,1208,628
1,274
12,384
2,363
2,764
21
1,608
13,100128,236

45,332
19,40010,342
1,203
16,977
5,335
2,971
19
1,579
15,055
118,219

*2

*2

*3

*3

-7-

17,497
2,651
951

*2

*2

*3

19,922
2,225
951

43

50

889
5,350
3,187
30,571
158,807

–
5,917
3,003
32,071150,290

10,004
5,696
109,147(3,838)121,010

10,004
5,696
122,560(3,831)
134,430

588(1,154)
1,558
992
122,002280,810*3881(1,154)
2,698
2,425
136,855
287,146

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
February 28, 2023
Net sales
Cost of sales
Gross profit
Receipts from operating revenue
Operating gross profit
Selling, general and administrative expenses
Freight costs
Promotion expenses
Store remodeling expense and repair expense
Utilities expenses
Rent expenses
Salaries, allowances and bonuses
Provision for bonuses
Retirement benefit expenses
Provision for share awards for directors (and otherofficers)
Legal and other welfare expenses
Depreciation
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Income from recycling
Data offer fee
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on retirement of non-current assets
Loss on store closings
Head office relocation expenses
Loss on disaster
Corporate funeral costs
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent*1*1

738,494508,911229,582
26,931
256,514*1*1780,028535,285244,743
29,681
274,424

31,002
6,109
5,615
12,69931,623
92,7772,758
1,579

30,2395,989
6,485
12,41932,871
98,411
2,966
1,411

0

14

12,595
14,96625,637
237,365
19,14813,43815,92130,136250,306
24,118

130
52
366
149
435
1,134

121
61
367
163
359
1,073

185
83
268
20,015189
53
242
24,948

*3

3
3

*3

0
0

*2

1,286
32
3
–
–
45
9
1,377
18,641
4,868
444
5,313
13,327
13,327

*2

1,376
161
85
80
49
–
17
1,770
23,178
6,787
(547)
6,239
16,93816,938*4-8-

Fiscal year ended
February 29, 2024

*4*5

Consolidated statement of comprehensive income(Millions of yen)
Fiscal year ended
February 28, 2023
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent*1

13,327

16,938

230
1,424
1,655
14,983

293
1,139
1,433
18,371

14,983-9-

Fiscal year ended
February 29, 2024

*1

18,371

(3) Consolidated statement of changes in equity
Fiscal year ended February 28, 2023
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity5,628

99,221(3,930)110,923

10,00480

Restated balance

10,004

5,628

80

99,302(3,930)111,004

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other thanshareholders’ equity
Total changes during
period(3,521)(3,521)

13,327

13,327

68

68

9,845

92

10,006

10,004

5,696

109,147(3,838)121,010

Valuationdifferenceonavailable-fo
r-salesecurities

Revaluation
reserve for
land

357

(1,114)RemeasureTotal
ments ofaccumulated
definedotherbenefitcomprehenplans
sive income
133

(623)

Total net
assets110,29980

357(1,114)

133

(623)

Dividends of surplus

Balance at end of period

161–

110,380

Changes during period

Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other thanshareholders’ equity
Total changes during
period92

39

Accumulated other comprehensive income

Restated balance

(0)

39

Balance at end of period

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies(0)(3,521)
13,327
(0)
161
39
230

(39)

1,424

1,615

1,615

230

(39)

1,424

1,615

11,622588(1,154)

1,558

992

122,002- 10 -

Fiscal year ended February 29, 2024
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity5,696

109,147(3,838)121,010

10,004–

Restated balance

10,004

5,696

109,147(3,838)121,010

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other thanshareholders’ equity
Total changes during
period(3,525)(3,525)

16,93816,93813,412

6

13,41910,004

5,696

122,560(3,831)

134,430

Valuationdifferenceonavailable-fo
r-salesecurities

Revaluation
reserve for
land

588

(1,154)RemeasureTotal
ments ofaccumulated
definedotherbenefitcomprehenplans
sive income
1,558

992

Total net
assets122,002–588(1,154)

1,558

992

Dividends of surplus

Balance at end of period

8–122,002

Changes during period

Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other thanshareholders’ equity
Total changes during
period8–

Accumulated other comprehensive income

Restated balance(1)–

Balance at end of period

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies(1)(3,525)
16,938
(1)
8
–
293

1,139

1,433

1,433

293

–

1,139

1,433

14,852881(1,154)

2,698

2,425

136,855- 11 -

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
February 28, 2023
Cash flows from operating activities
Profit before income taxes
Depreciation
Retirement benefit expenses
Impairment losses
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for sales promotion
expenses
Increase (decrease) in contract liabilities
Increase (decrease) in retirement benefit asset andlability
Increase (decrease) in provision for share awards for
directors (and other officers)
Interest and dividend income
Interest expenses
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Loan advances
Payments of guarantee deposits
Proceeds from refund of guarantee deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Dividends paid
Purchase of treasury shares
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period*1- 12 -

Fiscal year ended
February 29, 2024

18,641
15,087
25
1,286
208

23,17816,034
(177)
1,376
207

(12)

(2)

(204)

(29)

(81)

79

(12)

6

(183)
185
32
(1,076)(1,923)(1,120)
305
(502)
(280)
30,37555(174)(6,356)23,899

(182)
189
161
(350)
(2,111)(2,407)
3,360
2,351
4,101
45,78664(178)(3,971)
41,700(800)
800(21,445)
110
(641)
(329)
(693)
25
(864)
(23,839)(800)
800(13,573)2(2,576)
(163)
(901)
63
(209)
(17,357)

5,620
14,000(14,988)(1,258)(3,515)
(0)
(142)
(81)
9,409
9,327

(24,720)
13,000(8,860)(1,362)(3,519)(1)(25,464)(1,121)
9,327
8,206

*1

(5) Notes to consolidated financial statements
Notes on premise of going concern
Not applicable.
Significant accounting policies for preparation of consolidated financial statements
1. Scope of consolidation(1) Number of consolidated subsidiaries and names of consolidated subsidiaries(i) Number of consolidated subsidiaries
1 company(ii) Names of consolidated subsidiaries
LIFE FINANCIAL SERVICE(2) Names, etc. of non-consolidated subsidiaries(i) Names of non-consolidated subsidiaries LIFE KOSAN CORPORATION
LIFE STORE CORPORATION(ii) Reason for exclusion from scope of consolidation
Non-consolidated subsidiaries are all small in scale, and any total amount in terms of
their total assets, net sales, profit or loss (amount corresponding to the Company’sownership interest) as well as retained earnings (amount corresponding to theCompany’s ownership interest) and others does not significantly affect the consolidated
financial statements.
2. Application of equity method(1) Number of non-consolidated subsidiaries or associates accounted for using the equity
method and names of major companies, etc.
There are no non-consolidated subsidiaries or associates accounted for using the equity
method.
(2) Names, etc. of major non-consolidated subsidiaries and associates not accounted for using
the equity method(i) Names of non-consolidated subsidiaries LIFE KOSAN CORPORATION
LIFE STORE CORPORATION(ii) Names of associates
Japan Education Center for Future Retailing Inc
LIFE HOME DELIVERY(iii) Reason for not using equity method
Non-consolidated subsidiaries and associates not accounted for using the equity method
are excluded from the scope of the application of the equity method because suchexclusion has only an immaterial effect on the consolidated financial statements in termsof each company’s profit or loss (the amount corresponding to the Company’s ownershipinterest) and retained earnings (the amount corresponding to the Company’s ownershipinterest), and they have no significance as a whole.
3. Fiscal year of consolidated subsidiaries
Consolidated subsidiaries’ fiscal year-end is the same as the consolidated balance sheet date.
4. Accounting policies(1) Valuation basis and methods for significant assets(i) Securities
a. Held-to-maturity debt securities
Amortized cost method (straight-line method) is applied.
b. Available-for-sale securities
Securities other than those without market value are stated at fair value(unrealized gains and losses are reported as a separate component of net assets,
and the cost of securities sold is determined by the moving-average method),while securities without market value are stated at the cost determined by themoving-average method.

- 13 -

(ii) Inventories
a. Merchandise and finished goods
Stated at the cost determined by the retail method (the carrying value is written
down according to the decrease in profitability).
However, fresh food and inventories at distribution and processing centers arestated at the cost determined by the last purchase price method (the carrying
value is written down according to the decrease in profitability).
b. Raw materials and supplies
Mainly stated at the cost determined by the last purchase price method (thecarrying value is written down according to the decrease in profitability).
(2) Accounting methods for depreciation of significant depreciable assets(i) Property, plant and equipment (excluding leased assets)
Straight-line method (excluding vehicles, for which the declining-balance method isapplied)Major useful lives are as follows.
Buildings and structures
3 to 60 years
Machinery, equipment and vehicles 3 to 17 years
Tools, furniture and fixtures
2 to 20 years
Low-value depreciable assets with an acquisition cost of ¥100,000 or more but less than¥200,000 are depreciated in equal amounts over three years.
Property, plant and equipment acquired on or before March 31, 2007, are depreciated inequal amounts over five years starting from the fiscal year following the completion ofdepreciation to the limit of the depreciable amount.
(ii) Intangible assets (excluding leased assets)
The straight-line method is applied.
Software for internal use is amortized using the straight-line method over its useful life
(five years).
(iii) Leased assets
Leased assets related to finance lease transactions that transfer ownership
The same depreciation method that is applied to non-current assets owned by theCompany is applied.
Leased assets related to finance lease transactions that do not transfer ownership
The straight-line method is applied assuming the lease period as the useful life
without residual value.
(3) Accounting for significant provisions(i) Allowance for doubtful accounts
To prepare for credit losses on receivables, an estimated uncollectable amount isprovided at the amount estimated by either using the historical rate of credit loss
for general receivables or the individual consideration of collectability for specificreceivables, such as highly doubtful receivables.
(ii) Provision for bonuses
To provide for payment of bonuses to employees, the amount is provided based on
the estimated amount of bonuses to be paid.
(iii) Provision for sales promotion expenses
To provide for the use of points granted under the point card system for sales
promotion purposes, the amount estimated to be used in the future, based on thehistorical usage rate for the unused point balance, is provided.
The provision is included in sales promotion expenses.
(iv) Provision for share awards for Directors (and other officers)
To prepare for the delivery of the Company’s shares to Directors (excluding
outside Directors) in accordance with the Company’s Director Performance-Linked- 14 -

Share Distribution Regulations, the amount provided is based on the estimatedamount of share award obligations as of the end of the fiscal year.
(4) Accounting methods for retirement benefits(i) Method of attributing expected retirement benefits to periods
In the calculation of retirement benefit obligations, expected retirement benefits are
attributed to the period up to the end of the fiscal year on a benefit formula basis.
(ii) Method of amortizing actuarial gains and losses and past service cost
Past service cost is amortized using the straight-line method over a fixed number ofyears (11 years), within the average remaining service years of employees, whenincurred.
Actuarial gains and losses are amortized using the straight-line method over a fixed
number of years (11 years), within the average remaining service years of
employees, when incurred in each fiscal year from the fiscal year following theaccrual of each gain or loss.
Furthermore, where the amount of pension assets exceeds the amount of retirement
benefit obligations associated with the corporate pension system, this amount isrecorded as assets associated with retirement benefits in the consolidated balance
sheet.
(5) Accounting for significant revenues and expenses(i) Revenue recognition for sales of goods
The Company’s revenues from contracts with customers are primarily derived fromsales of merchandise in the supermarket business. The Company recognizes revenue
from the sale of these products when the products are delivered to the customer as theCompany believes that the customer has acquired control over the products and theperformance obligation is satisfied at the time the products are delivered.
For transactions in which the Company does not control the goods or services
transferred to the customer (including transactions in which the purchase of goods, etc.,
is recognized at the time of sales thereof (shoka shiire)), and it is determined to havebeen involved as an agent in the sale of goods, revenue is recognized as the net amountof the gross consideration received from the customer less the gross consideration paid
to the supplier. The consideration for the transaction is received generally within one
month of satisfying the performance obligation and does not include a significant
financial component.
(ii) Revenue recognition for our point system
The Company offers a customer loyalty program, whereby members are awarded points
based on the amount of purchases they make. The Company identifies such points as aperformance obligation, and it calculates the arm’s length sales price of the points,
taking into account the expected future expiration of the points and other factors, andallocates the transaction price and recognizes revenue when the points are used.
(iii) Revenue recognition related to company-issued coupons and points issued by othercompanies
The Company recognizes revenue from sales to customers of company-issued coupons
and third-party points as the net amount of the total consideration received from
customers less the amount equivalent to company-issued coupons and third-party
points.
(6) Scope of cash in the consolidated statement of cash flows
Cash in the consolidated statement of cash flows (cash and cash equivalents) consists ofcash on hand, deposits that can be withdrawn at any time, and short-term investments withmaturities of three months or less from the acquisition date that are readily convertible into
cash and are exposed to only an insignificant risk of fluctuations in value.

- 15 -

Changes in accounting estimates
At the Board of Directors meeting held on August 31, 2023, a resolution was passed
concerning guidelines for the relocation of the Tokyo Head Office, and the relocation wascompleted on February 26, 2024. In line with these guidelines, the term for the useful lives of
non-current assets of the former Tokyo Head Office that are no longer required was shortened
to the date of relocation.
Regarding asset retirement obligations associated with costs of restoring sites to their original
conditions in building lease agreements, the costs of restoring sites to their original conditions
and the expected time required have been changed based on the latest estimate information,and the recording of costs for asset retirement obligations has been changed to be completed
during the period ending with the date of relocation.
As a result, compared to the previous method, operating profit, ordinary profit, and profit
before income taxes each decreased by ¥483 million for the current fiscal year.
Additional information
Share remuneration plan for Directors
Based on the resolution at the 64th Annual General Meeting of Shareholders held on May 23,
2019, the Company introduced a Trust Plan for Delivering Shares to Directors (the “Plan”) forthe purpose of further clarifying the linkage between remuneration for Directors (excluding
outside Directors; the same applies below) and the Company’s share price and increasing the
Directors’ motivation to contribute to improving medium- to long-term performance andincreasing corporate value by not only enjoying the benefits of an increased share price but
also bearing the risk of a falling share price and sharing with shareholders the benefits andrisks associated with share price fluctuations.
Under the Plan, shares of the Company’s stock are delivered to Directors through a trust basedon the number of points granted pursuant to the Director Performance-Linked ShareDistribution Regulations set by the Board of Directors of the Company. The Company acquires
the shares to be delivered to Directors, including those for future delivery, with the money
entrusted in advance, and manages them separately as trust assets.
For the accounting related to the trust agreement, the Company applies the “Practical Solution
on Transactions of Delivering the Company’s Own Stock to Employees etc. through Trusts”(ASBJ PITF No. 30, March 26, 2015) and recognizes the difference on disposal at the time ofdisposing treasury shares to the trust and records the net amount of dividends from theCompany on the shares held by the trust and various expenses related to the trust on the
consolidated balance sheets.
The Company’s shares held by Custody Bank of Japan, Ltd. as of the end of the current fiscal
year are presented as treasury shares under net assets, and the book value of such treasury
shares was ¥186 million in the previous fiscal year and ¥178 million in the current fiscal year,
and the number of shares was 84,300 shares in the previous fiscal year and 80,500 shares in
the current fiscal year.

- 16 -

Consolidated balance sheet*1 Items related to non-consolidated subsidiaries and associates are as follows.

Shares of subsidiaries and associates(investments, other assets, and other)

As of February 28, 2023

As of February 29, 2024

¥62 million¥62 million

As of February 28, 2023

As of February 29, 2024

¥3,735 million
6,266¥3,415 million
6,266*2 Pledged assets and secured liabilities
Assets pledged as collateral are as follows.

Buildings
Land
Guarantee deposits
Total

463

463

10,465

10,145In addition to the above, real estate owned by third parties (SOGOTAXI HOLDINGS CO.,LTD and others) has been pledged as collateral.
Secured liabilities are as follows.

Long-term borrowings (including current
portion of long-term borrowings)

As of February 28, 2023

As of February 29, 2024

¥8,934 million¥9,898 million*3 Revaluation of land
In accordance with the Act on Revaluation of Land (Act No. 34, March 31, 1998) and the Act
Partially Amending the Act on Revaluation of Land (Act No. 24, March 31, 1999), land used
for business purposes was revalued, and the amount equivalent to taxes on the valuationdifference is recorded as “deferred tax liabilities for land revaluation” in liabilities, and theamount less this is recorded as “revaluation reserve for land” in net assets.
Method of revaluation
The value is determined by making reasonable adjustments to the value calculated based on
National Tax Agency Basic Instructions on Evaluation of Assets for calculating the value ofland as the basis for calculating the taxable value of land for land-holding tax purposes, as
provided for in Article 16 of Land-holding Tax Act, as stipulated in Article 2, item (iv) of theOrder for Enforcement of the Act on Revaluation of Land (Government Ordinance No. 119,March 31, 1998).
Date of revaluation
February 28, 2001
As of February 28, 2023

As of February 29, 2024¥(2,660) million¥(2,458) million

Difference between the total market value of therevalued land at the end of the fiscal year andthe total book value of the land after revaluation- 17 -

Consolidated statement of income*1 Revenue from contracts with customers
The amount of revenue from contracts with customers that forms part of net sales andoperating revenue is provided in “Notes (Segment Information, etc.).”*2 Impairment losses
The Group recorded impairment losses on the following asset groups.
Fiscal year ended February 28, 2023
Use

Type

Impairment
losses

Place(Millions of yen)Stores, etc.

Buildings and structures;
machinery, equipment andOsaka Prefecture
3 stores77

vehicles; tools, furnitureand fixtures, etc.

Kyoto Prefecture
1 store

0

Total

Tokyo
6 stores708

Kanagawa Prefecture
2 stores483

Chiba Prefecture
1 store16

13 stores

1,286

The Group groups its assets mainly based on stores as the smallest unit that generates cash
flow. For stores with continuous losses from operating activities, stores whose market value ofland, etc. has declined significantly and stores whose operating environment has deteriorated
significantly, the book value is reduced to the recoverable amount if the recoverable amount isless than the book value, and the reduced amount is recorded as an impairment loss under
extraordinary losses.
The breakdown is as follows.
Buildings and structures¥1,022 million

Machinery, equipment and vehicles
Tools, furniture and fixtures

24
233

Other (*)

6

Total

1,286

(*) “Other” consists of software and long-term prepaid expenses.
The recoverable value of this asset group is measured by net realizable value or value in use.
Net realizable value is determined based on the real estate appraisal value or roadside land
price, taking materiality into consideration. The value in use is calculated by discounting
future cash flows at a rate of 4.4%. In cases where future cash flows are negative, therecoverable value is calculated as zero.

- 18 -

Fiscal year ended February 29, 2024
Impairment
Use
Stores, etc.

Type

Place

losses(Millions of yen)

Buildings and structures;

Osaka Prefecturemachinery, equipment andvehicles; tools, furniture

5 storesTokyoand fixtures, etc.

1 storeKanagawa Prefecture855

1 storeChiba Prefecture352
8

1 storeTotal

158

8 stores

1,376

The Group groups its assets mainly based on stores as the smallest unit that generates cash
flow. For stores with continuous losses from operating activities, stores whose market value ofland, etc. has declined significantly and stores whose operating environment has deteriorated
significantly, the book value is reduced to the recoverable amount if the recoverable amount isless than the book value, and the reduced amount is recorded as an impairment loss under
extraordinary losses.
The breakdown is as follows.
Buildings and structures¥1,191 million

Machinery, equipment and vehicles
Tools, furniture and fixtures

1
163

Other (*)

19

Total

1,376

(*) “Other” consists of leasehold interests in land, software, right to use facilities, andlong-term prepaid expenses.
The recoverable value of this asset group is measured by net realizable value or value in use.
Net realizable value is determined based on the real estate appraisal value or roadside land
price, taking materiality into consideration. The value in use is calculated by discounting
future cash flows at a rate of 6.0%. In cases where future cash flows are negative, therecoverable value is calculated as zero.

*3 Details of gains on sales of non-current assets are as follows.
Fiscal year ended February
28, 2023
Tools, furniture and fixturesLand¥– million
3

Total

3

- 19 -

Fiscal year ended February
29, 2024¥0 million–0*4 Details of losses on retirement of non-current assets are as follows.
Fiscal year ended February

Fiscal year ended February

28, 2023

29, 2024

Buildings and structures
Machinery, equipment and vehicles¥14 million
0¥81 million
0Tools, furniture and fixtures
Other (*)

16
–

54
24

Total

32

161

(*) “Other” is software.

*5 Loss on disasterFiscal year ended February 28, 2023
Not applicable.
Fiscal year ended February 29, 2024
An amount of ¥49 million was recorded as loss on abandonment of goods and waste
disposal costs in association with Typhoon Lan (seventh named storm), which struck in
August 2023.

- 20 -

Consolidated statement of comprehensive income*1
Reclassification adjustments and tax effects related to other comprehensive income
Fiscal year ended
February 28, 2023

Fiscal year ended
February 29, 2024

Valuation difference on available-for-salesecurities
Amount accrued in the current fiscal year¥279 million

Reclassification adjustments¥422 million––

Before tax effect adjustments

279

422

Tax effects

(48)

(129)

230

293

2,027
25

1,820
(177)

Before tax effect adjustments
Tax effects

2,053
(628)

1,643
(503)

Remeasurements of defined benefit
plans, net of tax

1,424

1,139

Total other comprehensive income

1,655

1,433

Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans, netof taxAmount accrued in the current fiscal year
Reclassification adjustments

Consolidated statement of changes in equity
Fiscal year ended February 28, 2023
1. Class and total number of issued shares and class and number of treasury shares
Number of shares atthe beginning of the
fiscal year (Shares)

Increase (Shares)

Decrease (Shares)

Number of shares atthe end of the fiscal
year (Shares)

Issued shares
Ordinary shares

49,450,800––

49,450,800

Total

49,450,800––

49,450,800

Ordinary shares (Note)

2,583,502

284

61,0002,522,786

Total

2,583,502

284

61,0002,522,786

Treasury shares

Note: The number of treasury shares at end of the fiscal year includes the Company’s shares of 84,300 shares held by
Custody Bank of Japan, Ltd. as the trust assets for the “Trust for Delivering Shares to Directors.”

Overview of reasons for change
Breakdown of increase in the number of treasury shares is as follows.
Purchase of shares less than one share unit
284 shares
Breakdown of the decrease in the number of treasury shares is as follows.
Disposal of treasury shares as restricted stock compensation
55,000 shares
Disposal of treasury shares by way of transfer by Trust for Delivering Shares to Directors
6,000 shares
2. Share acquisition rights and treasury share acquisition rights
Not applicable.

- 21 -

3. Dividends(1) Dividends paid
(Resolution)

Class of shares

Total dividends(Millions ofyen)

Ordinary shares

1,878

Dividends per
share (Yen)Record date

Effective date40.00

February 28,
2022

May 27, 2022

May 26, 2022
Annual General
Meetingof
Shareholders
Notes: 1. Total dividends resolved by the Annual General Meeting of Shareholders held on May 26, 2022, include¥3 million of dividends for the Company’s shares held by Custody Bank of Japan, Ltd. as the trust assets
for the “Trust for Delivering Shares to Directors.”
2. The amount of dividends per share resolved at the Annual General Meeting of Shareholders held on May
26, 2022, is ¥40.00, a total of ¥30.00 for ordinary dividends and ¥10.00 for commemorative dividends.

(Resolution)
October
2022

11,

Board
DirectorsofClass of shares

Total dividends(Millions ofyen)

Ordinary shares

1,643

Dividends per
share (Yen)

35.00

Record date

Effective dateAugust 31,

November 1,

2022

2022

meeting
Note: Total dividends resolved by the Board of Directors meeting held on October 11, 2022, include ¥2 million ofdividends for the Company’s shares held by Custody Bank of Japan, Ltd. as the trust assets for the “Trust for
Delivering Shares to Directors.”(2) Dividends whose effective date falls in the fiscal year following the fiscal year of therecord date
(Resolution)
May 25, 2023
Annual General
Meetingof
Shareholders

Class ofsharesOrdinarysharesTotal dividends(Millions of
yen)

1,645

Source ofdividends
Retainedearnings

Dividends
per share
(Yen)

35.00

Record date

Effective
date

February 28,

May 26,

2023

2023

Note: Total dividends resolved by the Annual General Meeting of Shareholders held on May 25, 2023, include ¥2
million of dividends for the Company’s shares held by Custody Bank of Japan, Ltd. as the trust assets for the“Trust for Delivering Shares to Directors.”- 22 -

Fiscal year ended February 29, 2024
1. Class and total number of issued shares and class and number of treasury shares
Number of shares atthe beginning of the
fiscal year (Shares)

Increase (Shares)

Decrease (Shares)

Number of shares atthe end of the fiscal
year (Shares)

Issued shares
Ordinary shares

49,450,800––

49,450,800

Total

49,450,800––

49,450,800

Ordinary shares (Note)

2,522,786

545

3,800

2,519,531

Total

2,522,786

545

3,800

2,519,531

Treasury shares

Note: The number of treasury shares at end of the fiscal year includes the Company’s shares of 80,500 shares held by
Custody Bank of Japan, Ltd. as the trust assets for the “Trust for Delivering Shares to Directors.”

Overview of reasons for change
Breakdown of increase in the number of treasury shares is as follows.
Purchase of shares less than one share unit
445 shares
Acquisition of restricted shares without compensation
100 shares
Breakdown of the decrease in the number of treasury shares is as follows.
Disposal of treasury shares by way of transfer by Trust for Delivering Shares to Directors
3,800 shares
2. Share acquisition rights and treasury share acquisition rights
Not applicable.
3. Dividends(1) Dividends paid
(Resolution)

Class of shares

Total dividends(Millions ofyen)

Ordinary shares

1,645

Dividends per
share (Yen)Record date

Effective date

35.00

February 28,
2023

May 26, 2023

May 25, 2023
Annual General
Meetingof
Shareholders
Note: Total dividends resolved by the Annual General Meeting of Shareholders held on May 25, 2023, include ¥2
million of dividends for the Company’s shares held by Custody Bank of Japan, Ltd. as the trust assets for the“Trust for Delivering Shares to Directors.”(Resolution)
October

10,

2023
Board

of

Class of shares

Total dividends(Millions ofyen)

Ordinary shares

1,880

Dividends per
share (Yen)

40.00

Directors
meeting

Record date

Effective dateAugust 31,

November 1,

2023

2023

Note: Total dividends resolved by the Board of Directors meeting held on October 10, 2023, include ¥3 million ofdividends for the Company’s shares held by Custody Bank of Japan, Ltd. as the trust assets for the “Trust for
Delivering Shares to Directors.”- 23 -

(2) Dividends whose effective date falls in the fiscal year following the fiscal year of therecord date
(Resolution)

Class ofsharesTotal dividends(Millions ofyen)

Ordinaryshares2,350

Source ofdividends

Dividends
per share(Yen)

Record date

50.00

February 29,
2024

Effectivedate

May 23, 2024
Annual General
MeetingofRetainedearnings

May 24,2024

Shareholders
Note: Total dividends resolved by the Annual General Meeting of Shareholders held on May 23, 2024, include ¥4
million of dividends for the Company’s shares held by Custody Bank of Japan, Ltd. as the trust assets for the“Trust for Delivering Shares to Directors.”- 24 -

Consolidated statement of cash flows*1
Reconciliation of closing balance of cash and cash equivalents and the related account on the
consolidated balance sheet
Fiscal year ended February 28, Fiscal year ended February 29,
2023
2024
Cash and deposits accountTime deposits with maturities exceeding three months¥9,727 million(400)¥8,606 million(400)

Cash and cash equivalents

9,327

8,206

- 25 -

Segment information, etc.
[Segment information]
1. Overview of reportable segments
The reportable segments of the Group are components of the Group for which discrete
financial information is available and are regularly reviewed by the highest management
decision-making body to make decisions about the allocation of managerial resources and toassess their performance.
The Group’s main business is a general retailer of food products, lifestyle products, andapparel, etc., and it also operates a credit card and other businesses related to this business.
Therefore, taking into consideration these services and their economic characteristics, they areclassified as the “Retail Business” reportable segment.
2. Method for calculating amounts of operating revenue, profit or loss, assets, liabilities, andother items by reportable segment
The accounting method for the reported business segment is the same as that described in“Significant accounting policies for preparation of consolidated financial statements.”
Profit of reportable segment is based on ordinary profit. Intersegment revenue and transfers
are based on actual market prices.

- 26 -

3. Information on operating revenue, profit or loss, assets, liabilities, and other items byreportable segment
Fiscal year ended February 28, 2023
Reportablesegment
Other (Note 2)

Total

Retail Business

Adjustments(Note 3)

(Millions of yen)Amounts
recorded inconsolidated
financialstatements(Note 4)

Operating revenue (Note 1)
Revenue from contracts
with customers

759,962

1,098

761,061–

761,061

Other revenue (Note 6)

4,364

–

4,364

–

4,364

Operating revenue fromexternal customers

764,327

1,098

765,426–

765,426

Intersegment operating
revenue and transfers

912

1,479

2,391

(2,391)–

Total

765,240

2,577

767,818(2,391)

765,426

Segment profit

19,683332

20,015–20,015

Segment assets

283,477

18,168

301,645(20,834)

280,810Depreciation

14,952

14

14,966–

14,966

Interest income

139

–

139

(8)

130

Interest expenses

184

9

193

(8)

185

21,12357

21,181–

21,181Other items

Increase in property,
plant and equipment andintangible assets (Note 5)
Notes: 1

Operating revenue is the total of net sales and receipts from operating revenue.

2
3“Other” includes credit card business, etc.
Adjustments of segment assets, interest income and interest expenses are mainly from the elimination of

4

transactions between the reportable segment (the Retail Business) and other.
Segment profit is adjusted to ordinary profit in the consolidated statement of income.

5

Increases in property, plant, equipment and intangible assets do not include assets corresponding to asset
retirement obligations, etc.

6

Other revenue includes real estate lease revenue based on the Accounting Standard for Lease Transactions(ASBJ Statement No. 13).

- 27 -

Fiscal year ended February 29, 2024
Reportablesegment
Other (Note 2)

Total

Retail Business

Adjustments(Note 3)

(Millions of yen)Amounts
recorded inconsolidated
financialstatements(Note 4)

Operating revenue (Note 1)
Revenue from contracts
with customers

804,087

1,212

805,299–805,299

Other revenue (Note 6)

4,410

–

4,410

–

4,410

Operating revenue fromexternal customers

808,497

1,212

809,709–809,709

Intersegment operating
revenue and transfers

975

1,537

2,512

(2,512)–

Total

809,4722,749

812,222(2,512)809,709

Segment profit

24,565382

24,948–24,948Segment assets

289,603

17,940307,544(20,397)

287,146

Depreciation

15,88436

15,921–

15,921

Interest income

128

–

128

(7)

121

Interest expenses

190

8

198

(9)

189

19,123

135

19,258–19,258Other items

Increase in property,
plant and equipment andintangible assets (Note 5)
Notes: 1

Operating revenue is the total of net sales and receipts from operating revenue.

2
3“Other” includes credit card business, etc.
Adjustments of segment assets, interest income and interest expenses are mainly from the elimination of

4

transactions between the reportable segment (the Retail Business) and other.
Segment profit is adjusted to ordinary profit in the consolidated statement of income.

5

Increases in property, plant, equipment and intangible assets do not include assets corresponding to asset
retirement obligations, etc.

6

Other revenue includes real estate lease revenue based on the Accounting Standard for Lease Transactions(ASBJ Statement No. 13).

[Related information]
Fiscal year ended February 28, 2023
1. Information by product and service
This information is omitted because operating revenue from external customers in a single
product or service category exceeds 90% of the operating revenue in the consolidated
statement of income.
2. Information about geographical areas(1) Operating revenue
Not applicable because there is no operating revenue from external customers outside Japan.
(2) Property, plant and equipment
Not applicable because the Company has no property, plant and equipment located outside- 28 -

Japan.
3. Information by major customer
This information is omitted because there is no external customer who accounts for 10% ormore of the operating revenue in the consolidated statement of income.
Fiscal year ended February 29, 2024
1. Information by product and service
This information is omitted because operating revenue from external customers in a single
product or service category exceeds 90% of the operating revenue in the consolidated
statement of income.
2. Information about geographical areas(1) Operating revenue
Not applicable because there is no operating revenue from external customers outside Japan.
(2) Property, plant and equipment
Not applicable because the Company has no property, plant and equipment located outside
Japan.
3. Information by major customer
This information is omitted because there is no external customer who accounts for 10% ormore of the operating revenue in the consolidated statement of income.
[Information on impairment losses on non-current assets by reportable segment]
Fiscal year ended February 28, 2023
(Millions of yen)
Reportable segment

Corporate andeliminations

Other
Retail BusinessImpairment losses

1,286

–

Total

–

1,286

Fiscal year ended February 29, 2024
(Millions of yen)
Reportable segment

Corporate andeliminations

Other
Retail BusinessImpairment losses

1,376

–

Total

–

[Information on amortization and unamortized balance of goodwill by reportable segment]
Fiscal year ended February 28, 2023
Not applicable.
Fiscal year ended February 29, 2024
Not applicable.
[Information on gain on bargain purchase by reportable segment]
Fiscal year ended February 28, 2023
Not applicable.
Fiscal year ended February 29, 2024
- 29 -

1,376

Not applicable.

- 30 -

Per share information
Fiscal year ended
February 28, 2023

Fiscal year ended
February 29, 2024

Net assets per share¥2,599.79¥2,916.09

Earnings per share¥284.35¥360.93

Notes: 1. The amount of diluted earnings per share is not provided because there are no potential shares.
2. The basis for calculating net assets per share is as follows.
As of February 28, 2023

As of February 29, 2024

122,002

136,855––

122,002

136,855

46,928,014

46,931,269

Total net assets (Millions of yen)Amounts deducted from total net assets(Millions of yen)Amount of net assets related to ordinary sharesat the end of the fiscal year (Millions of yen)
Number of ordinary shares at the end of the
fiscal year used in the calculation of net assets
per share (Shares)
3. The basis for calculating earnings per share is as follows.

Profit attributable to owners of parent (Millionsof yen)Amount not attributable to ordinary shareholders(Millions of yen)
Profit attributable to owners of parent related toordinary shares (Millions of yen)
Average number of ordinary shares during the
fiscal year (Shares)

Fiscal year ended

Fiscal year ended

February 28, 2023

February 29, 2024

13,327

16,938––13,327

16,93846,871,327

46,930,194

4. The Company’s shares held by Custody Bank of Japan, Ltd. as trust assets for “Trust for
Delivering Shares to Directors” are included in treasury shares deducted from the total number ofshares issued at the end of the fiscal year for calculating net assets per share and are also included
in treasury shares deducted from the average number of shares during the fiscal year for
calculating earnings per share.
The number of such treasury shares deducted for calculating net assets per share is 84 thousand
shares at the end of the previous fiscal year and 80 thousand shares at the end of the current fiscal
year, and the average number of such treasury shares deducted for calculating earnings per share is
86 thousand shares for the previous fiscal year and 81 thousand shares for the current fiscal year.

Significant subsequent events
Not applicable.

- 31 -

4. Non-consolidated financial statements and significant notes thereto(1) Balance sheet(Millions of yen)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise
Supplies
Prepaid expenses
Accounts receivable - other
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Structures
Machinery and equipment
VehiclesFurniture and fixtures
Land
Leased assets
Construction in progress
Total property, plant and equipment
Intangible assets
Leasehold interests in land
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable
Long-term prepaid expenses
Deferred tax assets
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 32 -

As of February 28, 2023

As of February 29, 2024

8,783
22,31325,811203
3,550
14,807
6,229
81,7008,505
22,13827,900215
3,679
15,794
5,984
84,21889,242
2,689
4,781
1
16,89839,614–
2,593
155,820

89,269
2,462
4,564
0
18,20739,614300
1,774
156,193

1,238
1,789
167
3,195

2,635
2,651
162
5,449

1,487
1,060
7,711
1,865
6,128
24,51336(41)
42,761
201,776
283,477

1,910
1,060
7,186
1,635
6,599
25,36032(42)43,742
205,385289,603(Millions of yen)

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Deposits received
Provision for bonuses
Provision for sales promotion expenses
Contract liabilities
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Long-term accounts payable - other
Lease liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits
Provision for share awards for directors (and otherofficers)
Asset retirement obligations
Guarantee deposits received
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Revaluation reserve for land
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets- 33 -

As of February 28, 2023

As of February 29, 2024

41,971
44,1208,628
1,274
10,215
4,201
2,314
932
11,074
2,758
21
1,608
48
928
130,096

45,332
19,40010,342
1,203
14,441
4,431
5,303
2,845
11,223
2,967
19
1,579
425
934
120,450

17,497
162
2,651
951
3,136

19,922
79
2,225
951
3,037

43

50

5,350
2,815
209
32,817
162,914

5,917
2,723
200
35,109155,560

10,00410,004

2,501
3,195
5,696

2,501
3,195
5,696

94,32014,946109,266(3,838)
121,129

103,620
18,827
122,447(3,831)
134,316

588(1,154)(566)
120,563
283,477881(1,154)(273)
134,043
289,603(2) Statement of income(Millions of yen)
Fiscal year ended
February 28, 2023
Net sales
Cost of sales
Gross profit
Receipts from operating revenue
Operating gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Income from recycling
Data offer fee
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on retirement of non-current assets
Loss on store closings
Head office relocation expenses
Loss on disaster
Corporate funeral costs
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit- 34 -

Fiscal year ended
February 29, 2024

738,494508,911229,582
26,745
256,328
237,467
18,860780,028535,285244,743
29,444274,187
250,393
23,793

139
52
366
149
375
1,084

128
61
367
163
293
1,014

184
76
261
19,683190
51
242
24,565

3
3

0
0

1,286
32
3
–
–
45
1,367
18,318
4,815
525
5,341
12,977

1,376
135
85
80
49
–
1,726
22,839
6,733
(600)
6,132
16,706

(3) Statement of changes in equity
Fiscal year ended February 28, 2023
(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Share capital

Balance at beginning of
periodCumulative effects
of changes inaccounting policies
Restated balance

10,00410,004

Legal capital Other capital Total capitalsurplussurplussurplus

2,501

2,501

3,127

5,628

3,127

5,628

Generalreserve
83,620Retainedearnings
brought
forward

Total retained
earnings

Treasuryshares(3,930)Total
shareholders’equity16,07099,690111,39280

80

83,62016,15099,77010,700(10,700)––(3,521)(3,521)(3,521)

12,977

12,977

12,97780(3,930)111,473

Changes during period
Provision of generalreserve
Dividends ofsurplusProfitPurchase oftreasury shares
Disposal of treasury
shares
Reversal ofrevaluation reserve
for landNet changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
period

68

68
39

39

(0)

(0)

92

161
39

–

–

68

68

10,700(1,204)

9,495

92

9,656

10,004

2,501

3,195

5,696

94,32014,946109,266(3,838)

121,129- 35 -

Valuation and translation adjustments

Balance at beginning of
periodCumulative effects
of changes inaccounting policies
Restated balance

Valuationdifferenceonavailable-fo
r-salesecurities

Revaluation
reserve for
land

Total
valuationandtranslation
adjustments

357(1,114)(757)

Total net
assets110,63480

357(1,114)(757)

110,715

Changes during period
Provision of generalreserve
Dividends ofsurplus–(3,521)

ProfitPurchase oftreasury shares
Disposal of treasury
shares
Reversal ofrevaluation reserve
for landNet changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
period12,977
(0)
161
39

230

(39)

190

190

230

(39)

190

9,847

588

(1,154)(566)

120,563- 36 -

Fiscal year ended February 29, 2024
(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Share capital

Balance at beginning of
periodCumulative effects
of changes inaccounting policies
Restated balance

10,004

Legal capital Other capital Total capitalsurplussurplussurplus

2,501

3,195

5,696

Generalreserve

Retainedearnings
brought
forward

Total retained
earnings

94,32014,946109,266

Treasuryshares(3,838)

Total
shareholders’equity121,129–

10,004

2,501

3,195

5,696

94,32014,946109,266(3,838)

121,129

9,300(9,300)––(3,525)(3,525)(3,525)

16,706

16,706

16,706

Changes during period
Provision of generalreserve
Dividends ofsurplusProfitPurchase oftreasury shares
Disposal of treasury
shares
Reversal ofrevaluation reserve
for landNet changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
period

–

–

(1)

(1)

8

8
–

–

–

–

–

9,300

3,880

13,1806

13,187

10,004

2,501

3,195

5,696

103,620

18,827

122,447(3,831)

134,316- 37 -

Valuation and translation adjustments
Valuation
Total
Revaluationdifference on
valuation andreserve foravailable-for-stranslation
land
ale securities
adjustments
Balance at beginning of
periodCumulative effects
of changes inaccounting policies
Restated balance588(1,154)(566)

Total net
assets120,563–588(1,154)(566)

120,563

Changes during period
Provision of generalreserve
Dividends ofsurplus–(3,525)

ProfitPurchase oftreasury shares
Disposal of treasury
shares
Reversal ofrevaluation reserve
for landNet changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
period

16,706
(1)
8
–

293

293

293

293

–

293

13,480881(1,154)(273)

134,043- 38 -

5. Other(1) Changes to officers(i) Change of Representative Director
Not applicable.
(ii)

Changes to other officers[Scheduled on May 23, 2024]• Candidates for new Director (excluding Directors who are Audit and Supervisory
Committee Members)
Jun Adachi (Currently Executive Officer, and General Manager of Corporate Strategy andPlanning Department)
Akihiro Tada (Currently Special Advisor to the Ministry of Economy, Trade and Industry)*Mr. Akihiro Tada is a candidate for outside Director.
•

Candidate for Director who is an Audit and Supervisory Committee Member
Shigeyuki Mito (Attorney at law)
*Mr. Shigeyuki Mito is a candidate for outside Director.

• Retiring Directors
Director & Managing Executive Officer
Nobuyuki Kawai
Director
Haruhiko Yahagi*Mr. Haruhiko Yahagi is an outside Director.
• Retiring Corporate Auditors
Auditor
Mitsuo Maki
AuditorKoji Shiono*Mr. Mitsuo Maki and Mr. Koji Shiono are outside Corporate Auditors.

- 39 -