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 28, 2022
(under Japanese GAAP)
April 11, 2022
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, Investor Relations Department+81-3-5807-5111 (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 26, 2022
May 27, 2022
May 27, 2022
Yes
Yes (for institutional investors andanalysts)(Amounts less than one million yen are rounded down.)
Consolidated financial results for the fiscal year ended February 28, 2022
(from March 1, 2021 to February 28, 2022)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Operating revenue
Fiscal year ended

Millions of yen

February 28, 2022

768,335

February 28, 2021
759,146
Note: Comprehensive income
Fiscal year ended February 28, 2022:
Fiscal year ended February 28, 2021:

Operating profit%

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen

1.2

22,932

6.2

27,388%(16.3)

23,695(15.8)

15,208(14.7)

97.3

28,156

93.4

17,824

127.5¥15,322 million [(16.3)%]¥18,314 million [139.0%]

Reference: Operating revenue is the total of net sales and receipts from operating revenue.
Net sales
Fiscal year ended February 28, 2022:
Fiscal year ended February 28, 2021:¥745,080 million [1.2%]¥736,346 million [6.2%]

Receipts from operating revenue
Fiscal year ended February 28, 2022:
Fiscal year ended February 28, 2021:¥23,254 million [2.0%]¥22,800 million [5.5%]

Diluted earnings per
share

Yen

Yen

%

February 28, 2022

324.50

February 28, 2021

380.32

Fiscal year ended

Return on equity

Reference: Share of profit (loss) of entities accounted for using equity method
Fiscal year ended February 28, 2022:¥ million
Fiscal year ended February 28, 2021:¥ million

Operatingprofit/operating
revenue

Ordinary profit/
total assets

Earnings per share

%

%

14.6

8.8

3.0

19.9

10.6

3.6

(2) Consolidated financial position
Total assets
As of

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

February 28, 2022

270,229

110,29940.8

2,353.44

February 28, 2021

268,307

97,56036.4

2,081.61

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 28, 2022

(7,926)(20,303)

22,6959,409

February 28, 2021

41,747(20,587)(19,029)

14,943

Reference: Equity
As of February 28, 2022:¥110,299 million

As of February 28, 2021:¥97,560 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, 2021



25.00



25.00

50.00

2,345

13.1

2.6

Fiscal year ended
February 28, 2022



30.00



40.00

70.00

3,287

21.6

3.2

Fiscal year ending
February 28, 2023
35.00
35.00
70.00
21.2


(Forecast)
Note: Breakdown of year-end dividend for the fiscal year ended February 28, 2022: Ordinary dividend of ¥30.00, and the 60th anniversarycommemorative dividend of ¥10.00

3.

Consolidated earnings forecasts for the fiscal year ending February 28, 2023
(from March 1, 2022 to February 28, 2023)(Percentages indicate year-on-year changes.)
Operating revenue
Millions ofyen%Operating profit
Millions ofyenProfit attributable toowners of parent

Ordinary profit%

Millions ofyen%Millions ofyen%

Earnings per
share
Yen

Fiscal year ending
770,000–
23,2001.2
24,0001.3
15,5001.9
330.72February 28, 2023
Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc., from the beginningof the fiscal year ending February 28, 2023. Therefore, the above consolidated earnings forecasts represent the amounts calculated
by applying the said accounting standard, etc., but do not include year-on-year changes for operating revenue as the accounting
treatment method subject to comparison differs.
The Company expects operating revenue to decrease by approximately ¥22.0 billion due to this change.

* 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: None
iv. Restatement: None
(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 28, 2022
49,450,800 shares
As of February 28, 2021
53,450,800 shares
ii. Number of treasury shares at the end of the period
As of February 28, 2022
2,583,502 shares
As of February 28, 2021
6,583,138 sharesiii. Average number of shares during the period
Fiscal year ended February 28, 2022 46,867,560 sharesFiscal year ended February 28, 2021 46,868,068 shares
Note: The number of treasury shares at the end of the period includes the Company’s shares (90,300 shares asof February 28, 2022, and 90,300 shares as of February 28, 2021) 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 included in
the treasury shares that are excluded from the calculation of the average number of shares during theperiod. (90,300 shares as of February 28, 2022, and 90,300 shares as of February 28, 2021)
Reference: Overview of non-consolidated financial results1.

Non-consolidated financial results for the fiscal year ended February 28, 2022
(from March 1, 2021 to February 28, 2022)(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 28, 2022

767,379

1.2

22,808(16.1)

23,556(15.8)

15,066(14.7)

February 28, 2021

758,259

6.2

27,193

96.3

27,972

92.4

17,665

126.9

Earnings per share

Diluted earnings per share

Fiscal year ended

Yen

Yen

February 28, 2022

321.46February 28, 2021

376.93(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 28, 2022

275,299

110,63440.2

2,360.60

February 28, 2021

274,950

98,17035.7

2,094.63

Reference: Equity

2.

As of February 28, 2022:¥110,634 million

As of February 28, 2021:¥98,170 million

Non-consolidated earnings forecasts for the fiscal year ending February 28, 2023
(from March 1, 2022 to February 28, 2023)(Percentages indicate year-on-year changes.)
Operating revenue
Millions of yen

Ordinary profit%

Millions of yen

Profit%Millions of yen

Earnings per share%

Yen

Fiscal year ending
769,000–
23,7000.6
15,2501.2
325.39February 28, 2023
Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc., from the beginningof the fiscal year ending February 28, 2023. Therefore, the above non-consolidated earnings forecasts represent the amounts
calculated by applying the said accounting standard, etc., but do not include year-on-year changes for operating revenue as theaccounting treatment method subject to comparison differs.
The Company expects operating revenue to decrease by approximately ¥22.0 billion due to this change.

* 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.................................................................................................. 6
3. Consolidated financial statements and significant notes thereto .......................................................................................... 7(1) Consolidated balance sheet ............................................................................................................................................ 7(2) Consolidated statement of income and consolidated statement of comprehensive income ............................................ 9
Consolidated statement of income ................................................................................................................................. 9
Consolidated statement of comprehensive income ...................................................................................................... 10(3) Consolidated statement of changes in equity ............................................................................................................... 11(4) Consolidated statement of cash flows .......................................................................................................................... 13(5) Notes to consolidated financial statements .................................................................................................................. 14
Notes on premise of going concern .............................................................................................................................. 14
Significant accounting policies for preparation of consolidated financial statements .................................................. 14
Changes in presentation ............................................................................................................................................... 16
Additional information ................................................................................................................................................ 17
Consolidated balance sheet .......................................................................................................................................... 18
Consolidated statement of income ............................................................................................................................... 20
Consolidated statement of comprehensive income ...................................................................................................... 23
Consolidated statement of changes in equity ............................................................................................................... 23
Consolidated statement of cash flows .......................................................................................................................... 26
Segment information, etc. ............................................................................................................................................ 27
Per share information ................................................................................................................................................... 30
Significant subsequent events ...................................................................................................................................... 30
4. Non-consolidated financial statements and significant notes thereto ................................................................................. 31(1) Balance sheet ............................................................................................................................................................... 31(2) Statement of income .................................................................................................................................................... 33(3) Statement of changes in equity .................................................................................................................................... 34(4) Notes to non-consolidated financial statements ........................................................................................................... 36
5. Other .................................................................................................................................................................................. 37-1-

1. Overview of operating results, etc.
(1) Overview of operating results for the fiscal year under review
In the fiscal year under review, the Japanese economy continued to see weak recovery due to theimpact of repeated outbreaks of the COVID-19 pandemic. The situation remained far from optimistic
also because of geopolitical risks and other factors impacting the Japanese economy.
In this economic environment, there are clouds on the horizon for the food supermarket industry,
which is the Group’s area of business, despite the industry continuing to benefit from increased
demand for eating at home caused by COVID-19. In addition, amid sluggish growth in individual
income and limited recovery in consumer confidence, increasing price competition, expansion of ecommerce, expansion of grocery delivery services, expansion of takeout and delivery services fromrestaurants, intensifying competition across industry boundaries, and higher costs, including
personnel expenses and raw materials expenses, have led to a tougher environment for business
operations.
In an environment characterized by the presence of COVID-19, the Group has put in place a variety
of measures including social distancing, so it can continue fulfilling its mission of providing a lifeline
to residents while putting the highest priority on ensuring the safety and security of customers andemployees. Also, the Group ran ongoing promotions, such as sales to support specific locales, to help
producers, restaurant industry companies, and manufacturers who were impacted by fewer tourists
due to people staying at home.
Other major initiatives during the fiscal year under review included those for the online supermarket
business, which has received positive reviews in various private surveys. In terms of systems, theGroup collaborated with 10X, Inc. to further improve convenience and launched the Life Online
Supermarket App, the first mobile app version of the online supermarket, in March 2021, and acquired
downloads steadily. In terms of distribution, the Group made efforts to construct a stable and highquality distribution network for the online supermarket service as well as the home delivery service
for in-store purchases. In April, the Company and Maguchi Holdings Co., Ltd. established LIFEHOME DELIVERY, a new company that provides last-mile delivery. Having started operations inJune, this company is gradually expanding its business, with nine stores for the online supermarket
service and 25 stores for the home delivery service covered as of the end of February 2022. In termsof organization, in January 2022, the Company established E-Commerce Business Division, which
directly reports to the President, in order to accelerate the further development and expansion of theonline supermarket business, and reorganized related organizations into the new division.
Also, the Group held a special campaign from September 2021 through February 2022 to celebrate
the 60th anniversary of the Company and the 5th anniversary of the LC JCB CARD, the Group’s cobranded credit card. The Company is striving to expand credit card memberships and usage such as
by establishing Card Business Department in January.
Further, the Company expanded the delivery area of its service for Amazon Prime members that began
in September 2019. In the Tokyo region, the delivery area now covers all or part of 23 wards and 13
cities in Tokyo, eight cities in Kanagawa prefecture, 13 cities in Chiba prefecture, and five cities in
Saitama prefecture. In the Osaka region, it now covers 23 cities in Osaka prefecture, six cities in
Hyogo prefecture, and three cities in Kyoto prefecture, with the exception of certain areas.
In addition, the Group strengthened its product development and lineup of BIO-RAL, a private brandthat uses healthy materials and production methods for customers interested in health and natural
products. The Group also created new BIO-RAL natural supermarkets as well as dedicated sections
at existing stores.
The Group opened eight new stores: Higashinippori Store (Tokyo) in March 2021, Mizonokuchi Store(Kanagawa Prefecture) in April, Shijo karasuma Store (Kyoto Prefecture) and Hongo 3-chome
Ekimae Store (Tokyo) in September, BIO-RAL EKI MARCHE OSAKA Store (Osaka Prefecture),-2-

which is the third location for the natural supermarket brand, in October, SEVEN PARK Amami Store(Osaka Prefecture) in November, HIRAKATA T-SITE Store (Osaka Prefecture) in December, and
BIO-RAL Shimokitazawa Ekimae Store (Tokyo), the fourth location for the natural supermarket
brand, in February 2022. On the other hand, three stores were closed. For existing stores, the Group
proactively made renovations at a total of 32 stores to address the changing needs of customers,
including Oyodo Store, Tatsumi Store, Nagata Store, Kyodo Store, Takidani Store, Nijo Ekimae
Store, Central Square Morinomiya Store, Fuchu Nakagawara Store, Bentencho Store, and Kawasaki
Miyuki Store.
Effects of opening new stores, expanding e-commerce such as online supermarkets (e-commerce,
electronic sales), bolstering BIO-RAL and other private brand products, and implementing productinitiatives that sought to enhance taste contributed to the Group’s performance. As a result, operating
revenue was ¥768,335 million (up 1.2% year on year) and gross profit increased due to improved
profit margin. On the other hand, as for selling, general and administrative expenses, the Group saw
increases in personnel expenses from increased hiring activities, rent expenses from opening newstores, and non-personnel expenses from strengthening the growing e-commerce business. As a result,operating profit was ¥22,932 million (down 16.3% year on year), ordinary profit was ¥23,695 million(down 15.8% year on year), and profit attributable to owners of parent was ¥15,208 million (down
14.7% year on year) as each item saw a year-on-year decline.
Results by segment are as follows:(Retail Business)
Operating revenue was ¥767,379 million (up 1.2% year on year), with net sales of ¥745,080 million(up 1.2% year on year), and segment profit of ¥23,556 million (down 15.8% year on year).
Net sales by department were ¥323,082 million (up 2.6% year on year) for fresh produce, ¥324,343
million (up 0.9% year on year) for general food, ¥64,823 million (down 3.2% year on year) forlifestyle products, ¥23,150 million (down 1.6% year on year) for apparel, and ¥9,680 million (up0.01% year on year) for tenants.
(Other Business)
Operating revenue from LIFE FINANCIAL SERVICE was ¥2,415 million (up 3.7% year on year),with segment profit of ¥139 million (down 24.5% 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 renovation of existing stores, and we will do our best to fund this by using net cash flows fromoperating 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 ¥270,229 million, an increase of¥1,922 million from the end of the previous fiscal year.
Current assets totaled ¥74,480 million, a decrease of ¥187 million from the end of the previous fiscal
year. This was mainly due to a ¥5,533 million decrease in cash and deposits, while accounts receivable- trade increased by ¥2,608 million, merchandise and finished goods increased by ¥687 million,
accounts receivable - other increased by ¥1,160 million and prepaid expenses (other current assets)
increased by ¥776 million.
Non-current assets totaled ¥195,748 million, an increase of ¥2,109 million from the end of theprevious fiscal year. This was mainly due to an increase of ¥3,038 million in property, plant andequipment from the previous fiscal year, resulting from new store openings, renovation, and landacquisition.

-3-

Total liabilities at the end of the current fiscal year were ¥159,929 million, a decrease of ¥10,817
million from the end of the previous fiscal year. This was mainly due to decreases of ¥26,800 million
in accounts payable - trade and ¥7,695 million in accounts payable - other, respectively, while thetotal of short-term borrowings and long-term borrowings increased by ¥26,703 million.
Total net assets at the end of the current fiscal year were ¥110,299 million, an increase of ¥12,739
million from the end of the previous fiscal year. This was mainly due to a ¥12,625 million increase
in retained earnings.
(3) Overview of cash flows for the fiscal year under review
Cash and cash equivalents (“cash”) for the fiscal year under review totaled ¥9,409 million (down
37.0% year on year).
The main reasons for the decrease are as follows.
Cash flows from operating activities
Net cash used in operating activities amounted to ¥7,926 million in the current fiscal year (comparedto ¥41,747 million in cash provided by operating activities in the previous year).
This was mainly due to a decrease of ¥26,800 million in trade payables and a decrease of ¥5,158
million in accounts payable - other, resulting from the settlements in the current fiscal year ofpurchase and other payables for which the payments were pending because the last day of the previous
fiscal year was a holiday for financial institutions, despite profit before income taxes of ¥22,312
million and depreciation, a non-cash gain/loss item, of ¥14,179 million.
Cash flows from investing activities
Net cash used in investing activities amounted to ¥20,303 million in the current fiscal year (down
1.4% year on year).
This was mainly due to expenditures of ¥19,000 million for the purchase of property, plant andequipment, including land acquisition, opening new stores, and renovation of existing stores.
Cash flows from financing activities
Net cash provided by financing activities amounted to ¥22,695 million in the current fiscal year(compared to ¥19,029 million in cash used in financing activities in the previous year).
This was mainly due to repayments of long-term borrowings of ¥12,647 million despite a net increaseof ¥36,350 million in short-term borrowings.
(4) Future outlook
The future outlook for the Japanese economy continues to provide little room for optimism, given theongoing impact of COVID-19 with factors including an increase in the number of cases and theprogress of vaccinations. There are also overseas factors that would affect the Japanese economy,such as excessive inflation, frequent occurrence of natural disasters, U.S. financial, monetary, andtrade policies, trends in the Chinese economy, and geopolitical risks including the situation in
Ukraine.
Although demand for eating at home is still strong due to changes in consumer behavior caused by
COVID-19, conditions in the retail industry remain challenging due to concerns about deteriorationof corporate profitability, slow growth in personal income, and a decline in consumer confidence inthe future. The industry is undergoing significant changes, as seen by new entrants from outside thesector, including major e-commerce players, offering fresh produce.
In this difficult environment, we decided to extend the scope of the 6th Medium-Term Plan by one
year, making fiscal 2022 its final year, in order to address issues remaining from the COVID-19
pandemic. This plan, commenced in fiscal 2018, aims to make each of our stores the No. 1 in the areawith even greater trust from customers.
-4-

In the 6th Medium-Term Plan, while reassessing the issues that the Company is facing, we haveclearly expressed the Group’s vision as the “True to LIFE Declaration” comprised of three keywords:“delicious,” “exciting,” and “happy.” To achieve this vision, we will continue to execute the action
plan whose outline is set out below.
-

The store is the star! – Each and every store strives to embody the concept of “True to LIFE” ina way that meets the needs of local customers, with all initiatives based on the notion that “thestore is the star” so that we can empower eager and spirited store staff to independently thinkand put ideas into action.

-

Investment in people – We seek to become a company that provides great job satisfaction to its
employees, at which diverse people succeed in a stress-free environment without being pressed
for time.

-

Investment in stores – We will review all of our measures from the ground up, including
customer service, store design and displays, renovations, and new stores, with the goal of
creating stores that customers associate with ideas and feelings such as “True to LIFE,”“delicious,” “welcoming,” “comfortable,” “reassuring,” and “a little fun.”-

Investment in merchandise – In addition to focusing on a customer-oriented perspective, we aim
to provide merchandise that does not compromise on the elements that make up “delicious,”
namely ingredients, recipes, and freshness.

-

LIFE’s strengths – By honing in on our online supermarket strategy and card business strategy
in particular, we will significantly differentiate ourselves from competitors and grow these
aspects into strengths of the Company.

-

Strategy to support “True to LIFE” – We will enhance our sales support strategy involving sales
promotions and other measures, infrastructure strategy on logistics, food process centers, andinformation systems, and cost reduction / funds procurement strategy, which consists ofinitiatives for optimizing purchasing costs and for finance.

-

Activities to instill, develop, and maintain the concept of “True to LIFE” – By ensuring thatevery individual from officers to employees including part-timers understand the concept of“True to LIFE,” base their thinking on this notion, and practice it in day-to-day operations, we
aim to not only convey this “True to LIFE” concept to customers but also to create anorganization that develops the next generation of human resources with excellent teamwork
through such activities.

Through the abovementioned action plan, we aim to improve our corporate value and achievesustained growth, as a business entity that is trusted by customers, society and employees.
Further, based on reflections of the 6th Medium-Term Plan and changes in the external environment,
the Group will shift into a new 7th Medium-Term Plan, whose period will begin in fiscal 2023. Under
the new plan, the Group will seek to differentiate itself from the competition and further refine the“True to LIFE” concept by taking measures that utilize data and technology, further developing its
online supermarkets and the BIO-RAL natural supermarket business, and expanding its uniqueproduct lineup, while reassessing the status of current issues.
The COVID-19 pandemic has made it extremely difficult to accurately forecast performance outlook,given the serious negative impact it has had on operations of certain industries, despite causingchanges to consumer behavior that generate demand for eating at home in the food supermarket
industry, including the Company. For the final year of the 6th Medium-Term Plan (fiscal 2022), theGroup forecasts operating revenue of ¥770.0 billion (Note), operating profit of ¥23.2 billion (up 1.2%
year on year), ordinary profit of ¥24.0 billion (up 1.3% year on year), and profit attributable to ownersof parent of ¥15.5 billion (up 1.9% year on year), although the outlook remains unclear due to thepresence of COVID-19. The performance forecast may be revised in response to changes in the-5-socioeconomic environment and other factors, but in order to achieve the goal of “True to LIFE” thatwas set in the 6th Medium-Term Plan, we will continue to steadily make investments in people,
investments in stores, and investments in merchandise, all based on the notion that “the store is thestar.”
Note: The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc.,from the beginning of the fiscal year ending February 28, 2023. Therefore, the operating revenue forecast
represents the amount calculated by applying the said accounting standard, etc., but does not include year-onyear change as the accounting treatment method subject to comparison differs.
The Company expects operating revenue to decrease by approximately ¥22.0 billion due to this change.

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 development and trends of other companies in Japan.

-6-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
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, 2021

As of February 28, 2022

15,343
5,524
23,193
189
27,383
3,033
74,6689,809
8,133
23,880258
28,544
3,854
74,480183,085(95,596)
87,4899,934(4,876)
5,057
51,790(37,003)
14,786
38,774
1,358
(15)
1,343
147,452
3,635

188,078(101,429)
86,648
10,906(5,646)
5,260
55,761(39,224)
16,53739,256
2,807
(20)
2,787
150,490
3,508

*2

*3
*2, *4

*2
*1

-7-

1,520
8,586
7,189
23,321
1,975(41)
42,551
193,638
268,307*2*2, *4

*2
*1

1,208
7,935
6,761
24,086
1,799(41)
41,749195,748
270,229

(Millions of yen)

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Accounts payable - other
Income taxes payable
Provision for bonuses
Provision for sales promotion expenses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
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, 2021

As of February 28, 2022

68,4662,150
12,647
1,078
23,232
6,126
2,595
1,884
12,284130,466

41,66638,50014,865
1,082
15,536
3,901
2,555
1,963
12,406
132,478

*2

*3

*2

*4

*4

-8-

24,113
2,567
969

*2

*2

*4

12,248
2,412
969

36

56

3,256
5,409
3,926
40,280170,747

2,999
5,014
3,750
27,451
159,929

10,004
11,61386,595(9,914)98,29810,004
5,628
99,221(3,930)110,923375(1,114)0(738)
97,560268,307*4

357(1,114)
133(623)
110,299
270,229

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
February 28, 2021
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 investment securities
Compensation income
Gain on sale of non-current assets
Insurance claim income
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on retirement of non-current assets
Loss on store closings
Loss on COVID-19
Sublease loss
Loss on sale of investment securities
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

*1
*2

*3

-9-

Fiscal year ended
February 28, 2022

736,346
510,681
225,664
22,800248,464

745,080
514,356
230,724
23,254
253,978

29,053
9,944
6,957
8,132
28,84985,4982,590
1,562

30,027
9,850
7,161
8,585
30,17790,029
2,533
1,511

25

19

11,927
13,11023,424
221,075
27,38812,805
14,061
24,281
231,046
22,932

154
60
239
142
473
1,070

141
53
291
143
428
1,058

216
86
302
28,156

184
110
294
23,695

–
262
5
4
272

249
–
–
–
249

2,595
419
302
106
134
–
3
3,561
24,867
7,343
(299)
7,043
17,824
17,824

*1
*2

*3

1,241
187
89
70
35
7
–
1,632
22,312
6,684
420
7,104
15,20815,208

Consolidated statement of comprehensive income(Millions of yen)
Fiscal year ended
February 28, 2021
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- 10 -*1

Fiscal year ended
February 28, 2022

17,824

15,2082486
489
18,314

(18)
132
114
15,322

18,314*1

15,322

(3) Consolidated statement of changes in equity
Fiscal year ended February 28, 2021
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

Retained earnings

Treasury shares

Total shareholders’equity11,61370,435(9,912)

82,14010,004

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other thanshareholders’ equity
Total changes during
period(2,113)(2,113)

17,824

17,824(1)

448

Balance at end of period–

16,160(1)

16,15810,004

11,61386,595(9,914)98,298Valuationdifferenceonavailablefor-salesecurities

Revaluation
reserve for
land

372

(666)

RemeasureTotal
ments ofaccumulated
definedotherbenefitcomprehenplans
sive income
(485)

(779)

Total net
assets81,360Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period

448–

Accumulated other comprehensive income

Balance at beginning of
period(1)(2,113)
17,824
(1)
448
2

(448)

486

41

41

2

(448)

486

41

16,199375(1,114)0(738)

97,560- 11 -

Fiscal year ended February 28, 2022
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

Retained earnings

Treasury shares

Total shareholders’equity11,61386,595(9,914)98,29810,004

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesCancellation oftreasury shares
Net changes in items
other thanshareholders’ equity
Total changes during
period(2,582)(2,582)

15,20815,208(5,984)

Balance at end of period–

12,625

5,984

12,625

10,004

5,628

99,221(3,930)110,923

Valuationdifferenceonavailablefor-salesecurities

Revaluation
reserve for
land

375

(1,114)RemeasureTotal
ments ofaccumulated
definedotherbenefitcomprehenplans
sive income
0

(738)

Dividends of surplus

Balance at end of period

5,984(5,984)

Total net
assets97,560Changes during period

Profit attributable toowners of parent
Purchase of treasury
sharesCancellation oftreasury shares
Net changes in items
other thanshareholders’ equity
Total changes during
period(0)–

Accumulated other comprehensive income

Balance at beginning of
period(0)(2,582)
15,208
(0)
–
(18)

132

114

114

(18)

–

132

114

12,739357(1,114)

133

(623)

110,299- 12 -

(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
February 28, 2021
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 retirement benefit liability
Interest and dividend income
Interest expenses
Loss on store closings
Loss (gain) on sale of investment securities
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
Payments associated with disaster loss
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
Proceeds from sale of investment securities
Purchase of shares of subsidiaries and associates
Loan advances
Proceeds from collection of loans receivable
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 obligations
Repayments of installment payables
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- 13 -

Fiscal year ended
February 28, 2022

24,867
13,225
26
2,595
183

22,312
14,179
19
1,241
(40)

(604)

78

(2,975)
(214)
216
32
–
419
3,853
649
(1,292)
235
3,317
2,097
46,63268(203)(4,748)(2)
41,747

(86)
(194)
184
–
(241)
187
(2,608)(755)(1,160)(26,800)(5,158)
(53)
1,103
57
(173)
(8,914)–(7,926)(800)
800(18,907)293(1,030)
–
–
(20)
–
(966)
221
(176)
(20,587)(800)
800(19,000)
126
(867)
485
(12)
(57)
22
(828)
62
(235)
(20,303)(13,550)
10,300(12,322)(1,141)(203)(2,109)(1)(19,029)2,130
12,813
14,94336,3503,000(12,647)(1,224)(204)(2,577)(0)
22,695(5,533)
14,943
9,409*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’s ownershipinterest) as well as retained earnings (amount corresponding to the Company’s ownershipinterest) and others does not significantly affect the consolidated financial statements.
2. Application of equity method(1) Number of unconsolidated subsidiaries or associates accounted for using equity method andnames of major companies, etc.
There are no non-consolidated subsidiaries or associates accounted for using equity method.
(2) Names, etc. of major non-consolidated subsidiaries and associates not accounted for using
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 equity method are
excluded from the scope of application of equity method, because such exclusion has only
an immaterial effect on the consolidated financial statements in terms of each company’s
profit or loss (amount corresponding to the Company’s ownership interest) and retained
earnings (amount corresponding to the Company’s ownership interest), and they have nosignificance 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 with market value are stated at fair value based on the market priceon the consolidated balance sheet date (valuation differences are booked directly
in a separate component of net assets, and cost of securities sold is determinedby the moving average method), while securities without market value are statedat cost determined by the moving-average method.
(ii) Inventories
a. Merchandise and finished goods
Stated at cost determined by the retail method (the carrying value is written- 14 -

down according to the decrease in profitability).
However, fresh food and inventories at distribution and processing centers arestated at 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 cost determined by the last purchase price method (the carrying
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 2 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 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 applied to non-current assets owned by the Company
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 forgeneral receivables, or based on individual consideration of collectability forspecific receivables 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 ShareDistribution Regulations, the amount is provided based on the estimated amount of- 15 -

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 the accrual of eachgain or loss.
(5) Scope of cash in the consolidated statement of cash flows
Cash in the consolidated statement of cash flows (cash and cash equivalents) consist of cashon 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(6) Other significant matters for preparing consolidated financial statements
Accounting for consumption taxes
Transactions subject to consumption taxes arerecorded at amounts exclusive of consumption
taxes in the consolidated statements of income(and net consumption tax receivable or payable
is recorded on the balance sheet.).
Changes in presentation
Consolidated statement of income“Subsidy income” (¥65 million for the current fiscal year), which was independently presented
in the previous fiscal year, is included in “Other” under non-operating income from the current
fiscal year because it became insignificant in terms of the amount. To reflect this change inpresentation, the consolidated financial statements for the previous fiscal year have been
reclassified.
As a result, ¥115 million presented as “Subsidy income” under non-operating income in the
consolidated statement of income for the previous fiscal year has been reclassified as “Other.”- 16 -

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 and risks
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 Share Distribution
Regulations set by the Board of Directors of the Company. The Company acquires the shares tobe delivered to Directors, including those for future delivery, with the money entrusted inadvance, and manages them separately as trust assets.
For the accounting related to the trust agreement, the Company applied the “Practical Solution
on Transactions of Delivering the Company’s Own Stock to Employees etc. through Trusts”(ASBJ PITF No. 30, March 26, 2015), recognizes the difference on disposal at the time ofdisposing treasury shares to the trust and records the net amount of dividends from the Company
on the shares held by the trust and various expenses related to the trust on the consolidatedbalance 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 shareswas ¥199 million in the previous fiscal year and ¥199 million in the current fiscal year, and thenumber of shares was 90,300 shares in the previous fiscal year and 90,300 shares in the current
fiscal year.
Accounting estimates related to the impact of the spread of the COVID-19
The Group makes accounting estimates, such as impairment of non-current assets andrecoverability of deferred tax assets, based on information available at the time of preparationof the consolidated financial statements.
In the Retail Business, although there is benefit from increased demand for eating at homecaused by COVID-19, this trend is waning. Although accounting estimates are based on theassumption that the impact of COVID-19 will continue for a certain period of time in the next
fiscal year (ending February 28, 2023), actual results may differ from these estimates becauseof the uncertainty involved in estimating the timing of convergence of the infection and otherfactors.

- 17 -

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

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

As of February 28, 2021

As of February 28, 2022

¥50 million¥62 million

As of February 28, 2021

As of February 28, 2022

¥4,341 million
6,693¥3,970 million
6,266*2 Pledged assets and secured liabilities
Assets pledged as collateral are as follows.

Buildings
Land
Guarantee deposits
Total

479

463

11,514

10,700In addition to the above, real estate owned by third parties (Sogotaxi Holdings Co., Ltd. andothers) has been pledged as collateral.
Secured liabilities are as follows.

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

As of February 28, 2021

As of February 28, 2022

¥12,433 million¥9,470 million*3 Assets for which ownership is reserved by installment payments are as follows

Tools, furniture and fixtures

As of February 28, 2021

As of February 28, 2022

¥164 million¥– million

As of February 28, 2021

As of February 28, 2022

¥204 million¥– million

The corresponding liabilities are as follows.

Accounts payable - installment purchase(current liabilities, other)- 18 -

*4 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 forbusiness purposes was revalued, and the amount equivalent to taxes on the valuation difference
is recorded as “deferred tax liabilities for land revaluation” in liabilities and the amount less thisis 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 of landas 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 the Order 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, 2021

As of February 28, 2022¥(3,002) million¥(2,964) 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- 19 -

Consolidated statement of income*1 Impairment losses
The Group recorded impairment losses on the following asset groups.
Fiscal year ended February 28, 2021
Use

Type

Impairment
losses

Place(Millions of yen)Stores, etc.

Buildings and structures;
machinery, equipment andOsaka Prefecture
7 stores267

vehicles; tools, furnitureand fixtures; land, etc.

Kyoto Prefecture
1 store242

Nara Prefecture
2 stores

1,247

Tokyo
2 stores816

Saitama Prefecture
1 store20

The Group groups its assets mainly based on stores as the smallest unit that generates cash flow.
For stores with continuous loss from operating activities and stores whose land market value has
declined significantly, the book value is reduced to the recoverable amount if the recoverable
amount is less 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
Machinery, equipment and vehicles¥1,390 million
3

Tools, furniture and fixtures
Land

122
1,070

Other (*)

8

Total

2,595

(*) “Other” consists of leasehold interests in land, software, right to use facilities, 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 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 3.4%. In cases where future cash flows are negative, the recoverable value iscalculated as zero.

- 20 -

Fiscal year ended February 28, 2022
Impairment
Use
Stores, etc.

Type

Place

Buildings and structures;

Osaka Prefecturemachinery, equipment andvehicles; tools, furniture

2 stores
Kyoto Prefectureand fixtures, etc.

1 storeTokyo
2 stores
Saitama Prefecture
1 storeChiba Prefecture
1 storelosses(Millions of yen)
519
13
558
118
31

The Group groups its assets mainly based on stores as the smallest unit that generates cash flow.
For stores with continuous loss from operating activities and stores whose land market value has
declined significantly, the book value is reduced to the recoverable amount if the recoverable
amount is less than the book value, and the reduced amount is recorded as an impairment loss
under extraordinary losses.

- 21 -

The breakdown is as follows.
Buildings and structures¥1,060 million

Machinery, equipment and vehicles
Tools, furniture and fixtures

3
167

Other (*)

10

Total

1,241

(*) “Other” consists of leasehold interests in land, 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 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 3.3%. In cases where future cash flows are negative, the recoverable value iscalculated as zero.

*2 Details of loss on retirement of non-current assets are as follows.
Fiscal year ended

Fiscal year ended

February 28, 2021

February 28, 2022

Buildings and structures
Machinery, equipment and vehicles¥255 million
13¥111 million
1

Tools, furniture and fixtures
Other (*)

148
1

73
0

Total

419

187

(*) Other is long-term prepaid expenses.

*3 Losses on COVID-19
Fiscal year ended February 28, 2021
The Company recorded a loss on COVID-19 of ¥106 million in extraordinary losses
resulting from the loss on abandonment of goods, disinfection expenses, and tenant support
through rent concessions incurred in stores and other facilities caused by the spread of
COVID-19.

Fiscal year ended February 28, 2022
The Company recorded a loss on COVID-19 of ¥70 million in extraordinary losses
resulting from the loss on abandonment of goods, disinfection expenses, and tenant support
through rent concessions incurred in stores and other facilities caused by the spread of
COVID-19.

- 22 -

Consolidated statement of comprehensive income*1
Reclassification adjustments and tax effects related to other comprehensive income
Fiscal year ended
February 28, 2021

Fiscal year ended
February 28, 2022

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

¥12 million

Reclassification adjustments¥173 million

–

(241)

Before tax effect adjustments

12

(68)

Tax effects

(9)

50

2

(18)

674
26

171
19

Before tax effect adjustments
Tax effects

701
(214)

191
(58)

Remeasurements of defined benefit
plans, net of tax

486

132

Total other comprehensive income

489

114

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, 2021
1. Class and total number of issued shares, and class and number of treasury shares
Number of shares at
beginning of the
fiscal year (Shares)

Increase (Shares)

Decrease (Shares)

Number of shares at
end of the fiscal year
(Shares)Issued shares
Ordinary shares

53,450,800––

53,450,800

Total

53,450,800––

53,450,800

Ordinary shares (Note)

6,582,377

761–

6,583,138

Total

6,582,377

761–

6,583,138

Treasury shares

Note: The number of treasury shares at end of the fiscal year includes the Company’s shares of 90,300 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
Acquisition of restricted shares without compensation
2. Share acquisition rights and treasury share acquisition rights
Not applicable.

- 23 -

561 shares
200 shares3. Dividends(1) Dividends paid
(Resolution)
May 28, 2020
Annual General
Meeting ofClass of shares

Total dividends(Millions ofyen)

Ordinary shares

939

Dividends per
share (Yen)Record date

Effective date

20.00

February 29,
2020

May 29, 2020

Shareholders
Note: Total dividends resolved by the Board of Directors meeting held on May 28, 2020 include ¥1 million ofdividends for the Company’s shares held by Japan Trustee Services Bank, Ltd. (currently Custody Bank ofJapan, Ltd.) as the trust assets for the “Trust for Delivering Shares to Directors.”(Resolution)
October 9, 2020
Board ofDirectors
meeting

Class of shares

Total dividends(Millions ofyen)

Ordinary shares

1,173

Dividends per
share (Yen)

25.00

Record date

Effective dateAugust 31,

November 2,

2020

2020

Note: Total dividends resolved by the Board of Directors meeting held on October 9, 2020 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)

Class ofsharesTotal dividends(Millions ofyen)

Ordinaryshares1,173

Source ofdividends

Dividends
per share(Yen)

Record date

25.00

February 28,
2021

Effectivedate

May 27, 2021
Annual General
Meeting ofRetainedearnings

May 28,2021

Shareholders
Note: Total dividends resolved by the Board of Directors meeting held on May 27, 2021 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.”

Fiscal year ended February 28, 2022
1. Class and total number of issued shares, and class and number of treasury shares
Number of shares at
beginning of the
fiscal year (Shares)

Increase (Shares)

Decrease (Shares)

Number of shares at
end of the fiscal year
(Shares)Issued shares
Ordinary shares

53,450,800–

4,000,000

49,450,800

Total

53,450,800–

4,000,000

49,450,800

Ordinary shares (Note)

6,583,138

364

4,000,000

2,583,502

Total

6,583,138

364

4,000,000

2,583,502

Treasury shares

Note: The number of treasury shares at end of the fiscal year includes the Company’s shares of 90,300 shares held by Custody
Bank of Japan, Ltd. as the trust assets for the “Trust for Delivering Shares to Directors.”- 24 -

Overview of reasons for change
Breakdown of decrease in the number of issued shares is as follows.
Cancellation of treasury shares
Breakdown of increase in the number of treasury shares is as follows.
Purchase of shares less than one share unit
Acquisition of restricted shares without compensation
Breakdown of decrease in the number of treasury shares is as follows.
Cancellation of treasury shares

4,000,000 shares
164 shares
200 shares
4,000,000 shares

2. Share acquisition rights and treasury share acquisition rights
Not applicable.
3. Dividends(1) Dividends paid
Class of shares

Total dividends(Millions ofyen)

Ordinary shares

1,173(Resolution)

Dividends per
share (Yen)Record date

Effective date

25.00

February 28,
2021

May 28, 2021

May 27, 2021
Annual General
Meeting of
Shareholders
Note: Total dividends resolved by the Board of Directors meeting held on May 27, 2021 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.”

Class of shares

Total dividends(Millions ofyen)

Ordinary shares

1,408(Resolution)
October 7, 2021
Board ofDirectors
meeting

Dividends per
share (Yen)

30.00

Record date

Effective dateAugust 31,

November 1,

2021

2021

Note: Total dividends resolved by the Board of Directors meeting held on October 7, 2021 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)

Class ofsharesTotal dividends(Millions ofyen)

Source ofdividends

Dividends
per share(Yen)

Record date40.00

February 28,
2022

Effectivedate

May 26, 2022
Annual General
Meeting ofOrdinaryshares

1,878

Retainedearnings

May 27,2022

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

- 25 -

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 28,
2021
2022
Cash and deposits accountTime deposits with maturities exceeding three months¥15,343 million(400)¥9,809 million(400)

Cash and cash equivalents

14,9439,409- 26 -

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 regularly reviewed by the highest management decision-making
body to make decisions about allocation of managerial resources and to assess theirperformance.
The Group’s main business is a general retailer of food products, lifestyle products, and apparel,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 are aggregatedand classified as the “Retail Business” reportable segment.
2. Method for calculating amounts of operating revenue, profit or loss, assets, liabilities, and otheritems 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 price.
3. Information on operating revenue, profit or loss, assets, liabilities, and other items by reportablesegment
Fiscal year ended February 28, 2021
(Unit: Millions of yen)
Reportablesegment

Other (Note 2)

Total

Retail Business

Adjustments(Note 3)Carrying amount(Note 4)

Operating revenue (Note 1)
Operating revenue fromexternal customers

758,255891

759,146–

759,146

Intersegment operating
revenue and transfers

4

1,436

1,441

(1,441)–

758,259

2,328

760,587(1,441)

759,146

Segment profit

27,972

184

28,156–28,156

Segment assets

274,950

12,698287,648(19,340)

268,307

Depreciation

13,06941

13,110–13,110Interest income

162

–

162

(8)

154

Interest expenses

215

9

224

(8)

216

24,586

4

24,590–24,590

Total

Other items

Increase in property, plantand equipment and intangible
assets (Note 5)

Notes: 1. Operating revenue is the total of net sales and receipts from operating revenue.
2. “Other” includes credit card business, etc.
3. Adjustments of segment assets, interest income and interest expenses are mainly elimination of transactions
between reportable segment (Retail Business) and other.
4. Segment profit is adjusted to ordinary profit in the consolidated statement of income.
5. Increase in property, plant and equipment and intangible assets does not include assets corresponding to asset- 27 -

retirement obligations, etc.

Fiscal year ended February 28, 2022
(Unit: Millions of yen)
Reportablesegment

Other (Note 2)

Total

Retail Business

Adjustments(Note 3)Carrying amount(Note 4)

Operating revenue (Note 1)
Operating revenue fromexternal customers

767,376959

768,335–

768,335

Intersegment operating
revenue and transfers

2

1,456

1,459

(1,459)–767,379

2,415

769,794(1,459)768,335

Segment profit

23,556

139

23,695–23,695

Segment assets

275,299

15,165

290,464(20,234)

270,229

Depreciation

14,04020

14,061–

14,061

Interest income

149

–

149

(7)

141

Interest expenses

183

8

192

(7)

184

16,91339

16,953–

16,953

Total

Other items

Increase in property, plantand equipment and intangible
assets (Note 5)

Notes: 1. Operating revenue is the total of net sales and receipts from operating revenue.
2. “Other” includes credit card business, etc.
3. Adjustments of segment assets, interest income and interest expenses are mainly elimination of transactions
between reportable segment (Retail Business) and other.
4. Segment profit is adjusted to ordinary profit in the consolidated statement of income.
5. Increase in property, plant and equipment and intangible assets does not include assets corresponding to asset
retirement obligations, etc.

[Related information]
Fiscal year ended February 28, 2021
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 statementof 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.

- 28 -

Fiscal year ended February 28, 2022
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 statementof 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, 2021
(Unit: Millions of yen)
Reportable segment

Corporate andeliminations

Other
Retail BusinessImpairment losses

2,595

–

Total

–

2,595

Fiscal year ended February 28, 2022
(Unit: Millions of yen)
Reportable segment

Corporate andeliminations

Other
Retail BusinessImpairment losses

1,241

–

Total

–

[Information on amortization and unamortized balance of goodwill by reportable segment]
Fiscal year ended February 28, 2021
Not applicable.
Fiscal year ended February 28, 2022
Not applicable.
[Information on gain on bargain purchase by reportable segment]
Fiscal year ended February 28, 2021
Not applicable.
Fiscal year ended February 28, 2022
Not applicable.

- 29 -

1,241

Per share information
Fiscal year ended
February 28, 2021

Fiscal year ended
February 28, 2022

Net assets per share¥2,081.61¥2,353.44

Earnings per share¥380.32¥324.50

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, 2021

As of February 28, 2022

97,560110,299––

97,560110,299

46,867,662

46,867,298

Total net assets (Millions of yen)Amounts deducted from total net assets(Millions of yen)Amount of net assets related to ordinary sharesat end of the fiscal year (Millions of yen)
Number of ordinary shares at 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 (Millions

Fiscal year ended

Fiscal year ended

February 28, 2021

February 28, 2022

17,824

15,208––

Profit attributable to owners of parent related toordinary shares (Millions of yen)

17,824

15,208Average number of ordinary shares during the
fiscal year (Shares)

46,868,068

46,867,560

of yen)Amount not attributable to ordinary shareholders(Millions of yen)

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 of shares 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 90 thousand
shares at the end of the previous fiscal year and 90 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
90 thousand shares for the previous fiscal year and 90 thousand shares for the current fiscal year.

Significant subsequent events
Not applicable.

- 30 -

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- 31 -

As of February 28, 2021

As of February 28, 2022

15,21018,61323,193153
2,447
15,688
5,068
80,374

9,663
20,98523,880231
3,228
14,566
6,043
78,59984,645
2,844
5,054
3
14,76838,774
5
1,337
147,433

84,062
2,586
5,257
2
16,52539,256
0
2,786
150,479

1,232
2,222
176
3,631

1,197
2,109
170
3,478

1,520
1,048
8,586
1,878
7,150
23,32146(41)
43,510
194,575
274,950

1,208
1,060
7,935
1,693
6,755
24,08644(41)
42,741
196,699
275,299

(Millions of yen)

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Deposits received
Provision for bonuses
Provision for sales promotion expenses
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Long-term accounts payable - other
Lease obligations
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
Reserve for special depreciation
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- 32 -

As of February 28, 2021

As of February 28, 2022

68,4662,150
12,647
1,078
21,770
3,915
6,093
2,709
12,058
2,590
1,884
44
1,088
136,498

41,66638,50014,865
1,082
13,804
4,015
3,890
1,906
11,388
2,549
1,963
469
918
137,020

24,113
481
2,567
969
3,258

12,248
481
2,412
969
3,191

36

56

5,409
2,991
453
40,281
176,779

5,014
2,936
332
27,643
164,664

10,00410,0042,501
9,112
11,613

2,501
3,127
5,628

15
68,02019,171
87,206(9,914)
98,909–83,62016,07099,690(3,930)111,392375(1,114)(738)
98,170274,950357(1,114)(757)
110,634
275,299

(2) Statement of income(Millions of yen)
Fiscal year ended
February 28, 2021
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 investment securities
Compensation income
Gain on sale of non-current assets
Insurance claim income
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on retirement of non-current assets
Loss on store closings
Loss on COVID-19
Sublease loss
Loss on sale of investment securities
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit- 33 -

Fiscal year ended
February 28, 2022

736,346
510,681
225,664
21,913
247,577
220,384
27,193745,080
514,356
230,724
22,298253,022230,21422,808

162
60
239
142
473
1,078

149
53
291
143
401
1,039

215
84
299
27,972

183
107
291
23,556

–
262
5
4
272

249
–
–
–
249

2,595
419
302
106
134
–
3
3,561
24,683
7,312
(295)
7,017
17,665

1,241
187
89
70
35
7
–
1,632
22,173
6,661
445
7,107
15,066

(3) Statement of changes in equity
Fiscal year ended February 28, 2021
(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Share capital

Balance at beginning of
period10,004

Legal capitalsurplus

OthercapitalsurplusTotal
capitalsurplus

2,501

9,112

11,613Total
retainedearnings

TreasurysharesTotalshareholders’equity(9,912)

82,910Reservefor special
depreciation

Generalreserve

Retainedearnings
brought
forward30

62,5208,655

71,20515––(5,500)––(2,113)(2,113)(2,113)

17,665

17,665

17,665

Changes during period
Reversal of reserve
for special
depreciation
Provision of generalreserve
Dividends ofsurplus

(15)
5,500

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

(1)

448

–

–

–

(15)

5,500

10,516

16,001(1)

15,99910,004

2,501

9,112

11,61315

68,02019,171

87,206(9,914)

98,909Valuationdifferenceonavailablefor-salesecurities

Revaluation
reserve for
land

Total
valuationandtranslation
adjustments

372

(666)

(293)

Total net
assets82,616

Changes during period
Reversal of reserve
for special
depreciation
Provision of generalreserve
Dividends ofsurplus––(2,113)

ProfitPurchase oftreasury shares
Reversal ofrevaluation reserve
for landNet changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
period448–

Valuation and translation adjustments

Balance at beginning of
period448(1)

17,665
(1)
448

2

(448)

(445)

(445)

2

(448)

(445)

15,553375(1,114)(738)

98,170- 34 -

Fiscal year ended February 28, 2022
(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Share capital

Balance at beginning of
period10,004

Legal capitalsurplus

OthercapitalsurplusTotal
capitalsurplus

2,501

9,112

11,613Total
retainedearnings

TreasurysharesTotalshareholders’equity(9,914)

98,909Reservefor special
depreciation

Generalreserve

Retainedearnings
brought
forward15

68,02019,171

87,20615––(15,600)––(2,582)(2,582)(2,582)

15,066

15,066

15,066

Changes during period
Reversal of reserve
for special
depreciation
Provision of generalreserve
Dividends ofsurplus(15)
15,600

ProfitPurchase oftreasury shares
Cancellation oftreasury shares
Net changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
period(5,984)(5,984)

5,984

–

–

(5,984)(5,984)(15)

15,600(3,101)

12,483

5,984

12,482

10,004

2,501

3,127

5,628

–

83,62016,07099,690(3,930)111,392

Valuationdifferenceonavailablefor-salesecurities

Revaluation
reserve for
land

Total
valuationandtranslation
adjustments

375(1,114)(738)

Total net
assets98,170Changes during period
Reversal of reserve
for special
depreciation
Provision of generalreserve
Dividends ofsurplus––(2,582)

ProfitPurchase oftreasury shares
Cancellation oftreasury shares
Net changes in
items other thanshareholders’equityTotal changes during
periodBalance at end of
period(0)–

Valuation and translation adjustments

Balance at beginning of
period(0)

15,066
(0)
–
(18)

(18)

(18)

(18)

–

(18)

12,464357(1,114)(757)

110,634- 35 -

(4) Notes to non-consolidated financial statements
Changes in presentation
Statement of income“Subsidy income” (¥65 million for the current fiscal year), which was independently presented in
the previous fiscal year, is included in “Other” under non-operating income from the current fiscal
year because it became insignificant in terms of the amount. To reflect this change in presentation,
the non-consolidated financial statements for the previous fiscal year have been reclassified.
As a result, ¥115 million presented as “Subsidy income” under non-operating income in thestatement of income for the previous fiscal year has been reclassified as “Other.”- 36 -

5. Other(1) Changes to officers(i) Change of Representative Director[On May 27, 2021]
Name

New position

Nobutsugu
Shimizu

Director
Honorary
ChairmanNew
responsibilities

Former position

Formerresponsibilities–

Representative
Director
Chairman & Chief
Executive Officer–(ii) Changes to other officers• Changes to officers
Name

New position

Nobuyuki Kawai

Director
Managing
Executive
Officer

Takashi Sumino

Director
Managing
Executive
Officer

FormerNew
Date of change
Former position
responsibilities
responsibilities
Deputy Group
Assistant to
CEO ofGroup CEO of
Corporate
Corporate
Functions Group
Director
Functions GroupManaging
Headquarters andHeadquarters andJanuary 16, 2022
Executive
Division COO of
Division COO of
Corporate
Officer
Corporate
Finance andFinance andAccounting
Accounting
Division
DivisionGroup CEO of
Infrastructure
Group
Group CEO of
Director
Headquarters andInfrastructureManaging
January 16, 2022
Division COO ofGroup
Executive
E-Commerce
Headquarters
OfficerBusiness
Division• Candidate for new Director[Scheduled on May 26, 2022]
Director
Takashi Katayama(Currently Representative of RTK-Design)*Takashi Katayama is a candidate for outside Director.
• Retiring Directors[Scheduled on May 26, 2022]
Director, Honorary Chairman
Director*Hayuru Tsutsumi is an outside Director.

- 37 -

Nobutsugu Shimizu
Hayuru Tsutsumi