First Half Results for FY2023(Six months ended August 31, 2023)

Lawson, Inc.
October 16, 2023

Copyright (c) 2023 Lawson, Inc. All rights reserved.
Copyright (c) 2023 Lawson, Inc. All rights reserved.

Financial Results forFirst Half for FY2023
Masayuki Itonaga
Executive Managing Officer
Chief Financial Officer
Lawson, Inc.
Copyright (c) 2023 Lawson, Inc. All rights reserved.
Copyright (c) 2023 Lawson, Inc. All rights reserved.

Consolidated financial results for FY2023 1H
Unit: Billions of yen

FY2022 1H
Results

Core operating profit
ProfitFY2023 1H
Results

v.plan*1

YoY

36.4
20.4

53.0
32.4

+16.6
+11.9

+18.5
+14.9

102.4%
30.9%
14,655105.7%
31.5%
14,619+3.3%pt+0.6%pt- 36- 0.3%pt+0.1%pt-(Non-consolidated) excluding LAWSON STORE100 business

Existing-store sales (YoY)*2
Gross profit margin*2
Total no. of stores in Japan*3*1 Any differences v. plan in these documents are compared to the plan issued along with the announcement of FY2022 results in April 2023.
*2 These figures are sums of total LAWSON and NATURAL LAWSON operated by Lawson, Inc. Existing-store sales do not include the impact of tickets, etc.
*3 The number of stores is a total number of stores operated by the Lawson group.

1. Core operating profit： 53.0 billion yen(1)YoY: In the Domestic convenience store (CVS) business, segment profit increased after existing-store sales rose 5.7% YoY on successful HAPPYLAWSON PROJECT marketing measures, the remodeling of our ideal store format, and the recovery in people flows. We also controlled costs.
Furthermore, core operating profit increased by 16.6 billion yen. That impressive rise was due to a sharp rebound in profits at our Overseas
business compared to the previous year’s loss that was caused by lockdowns in China, and the strong performance and higher profits generated
by our Entertainment-related business.
(2)v.plan: In the Domestic CVS business, non-consolidated operating income came in 9.3 billion yen above plan. While existing-store sales came in
0.3%pt below plan, the gross profit margin exceeded plan and the segmented progressed cost controls measures. The Overseas businessexceeded plan on the recovery in our China operation. In addition, the Entertainment-related business had strong performances from both theticket sales and cinema arms of the business. As a result, core operating profit came in 18.5 billion yen above plan.

2. Profit：32.4 billion yen(1)YoY: Increase due to increase in core operating profit.
(2)v.plan: Achieved plan on higher-than-planned core operating profit.
Copyright (c) 2023 Lawson, Inc. All rights reserved.

3

Factors affecting FY2023 1H core operating profit, etc.
approx.

+17.0(v.plan +2.0)
Charge fees from
franchise stores,
etc.

36.4
160

FY2022 1HCore operating profit
IFRS
Copyright (c) 2023 Lawson, Inc. All rights reserved.

Unit: Billions of yen

approx.

-3.5(v.plan +4.5)
Marketingmeasures, etc.

approx.

-1.0(v.plan +2.0)
Electric utility
expense, etc.

Existing-store sales Gross profit margin
31.5%
YoY 105.7%
YoY +0.6%pt
v.plan -0.3%pt
v.plan +0.1%pt

approx.
approx.

±0.0(v.plan +1.0)
IT-related cost,
etc.

+2.5

(v.plan +3.5)
Subsidiaries

Domestic CVS business
Seijo Ishii businessEntertainment-related business
Financial services business
Overseas businessapprox.

+1.5

Others（YoY）（v.plan）

±0.0
±0.0
+0.5
-0.5
+2.5

+1.0
±0.0
+1.0
±0.0
+1.5

* Figures rounded to the nearest 0.5 billion yen for clarity.
* Any differences v. plan in these documents are compared to the plan issued alongwith the announcement of FY2022 results in April 2023.

53.0
262

FY2023 1HCore operating profit
IFRS

4FY2023 1H Initiatives review
Unit: Billions of yen

FY2023 1HCore operating profit

Plan

Results

YoY

v.plan

34.5

53.0

+16.6

+18.5

Various measures, etc

Progress

YoY

Charge fees from
franchise stores, etc.

Exceeded plan. Positive impact of HAPPY LAWSON PROJECT and other marketing measures, store
renovations, and recovery in people flows. As a result, existing-store sales increased by 5.7% YoY andother operating revenue increased further than expected.

+17.0

+2.0

Marketing measures,etc.

We implemented TV ads, app coupons, and other marketing measures for the HAPPY LAWSON PROJECT
as planned. However, came in below plan as we managed to restrain increases in expenses by
rationalizing existing measures or integrating them into HAPPY LAWSON PROJECT measures.

-3.5

+4.5

Electric utility
expense, etc.

Came in below plan on a lower-than-expected rise in electricity unit prices and our efforts to reduce
electricity consumption through power-saving measures.

-1.0

+2.0

IT-related cost, etc.

Came in below plan thanks to cost-cutting initiatives.

±0.0

+1.0

Subsidiaries

Group companies exceeded YoY and v. plan thanks to higher profits at the Overseas and Entertainmentrelated businesses.
Seijo Ishii: Profit decreased compared to strong previous stay-home demand during COVID-19, butroughly in line with our plan.
Entertainment-related: Profit rose on more active holding of concerts and other events, so exceeded plan.
Financial services: Profit decreased on rising ATM maintenance costs, but in line with plan.
Overseas: Exceeded plan. Profit increased on rebound following the lockdowns in China.

+2.5

+3.5

OthersYear-on-year differences caused by adjustments for different accounting periods at consolidated
subsidiaries in China with different period-end dates.

+1.5

+5.5

+16.5

+18.5

Total
Copyright (c) 2023 Lawson, Inc. All rights reserved.

* Figures rounded to the nearest 0.5 billion yen for clarity.
* Any differences v. plan in these documents are compared to the plan issued alongwith the announcement of FY2022 results in April 2023.

v.plan5

FY2023 1H Results and full-year plan
Unit: Billions of yen

FY2023

Core operating profit
Domestic CVS business
Lawson (Included above)*
Seijo Ishii businessEntertainment-related business

Financial service business
Overseas businessProfitDividends per share

Full-year
initial plan
64.0
35.0
29.0
Plan
200 yen1H results
53.0
39.9
30.8
5.8
3.8
1.6
1.6
32.4

Full-year
revised plan
85.0
58.6
47.0
12.8
6.2
2.7
4.8
47.0
Revised plan
235 yen* Operating income of Lawson, Inc.

◼ LAWSON （Assumed conditions for the plan）

・Existing-store sales *1 YoY : 104.0%
・Gross profit margin*1：31.4％（+0.4％pt YoY）
・Store numbers*2: Opening 280, closure 270, net increase 10

Copyright (c) 2023 Lawson, Inc. All rights reserved.

*1 These figures are sums of total LAWSON and NATURAL LAWSON operated by Lawson, Inc.
Existing-store sales do not include the impact of tickets, etc.
*2 The number of stores is a total number of stores operated by the Lawson group.

6

FY2023 Revised plan and factors affecting core operating profit
Revised full-year plan
approx.

approx.

Unit: Billions of yen-6.0

approx.

+21.0 (v. initial plan +4.0)(v. initial plan +2.0)
Charge fees from
franchise stores, etc.

Marketingmeasures, etc.

approx.

±0.0

-3.0

(v. initial plan +1.0)
IT-related cost, etc.

(v. initial plan +5.0)
Electric utility
expense, etc.

approx.

approx.

+5.5

Others(v. initial plan +3.5)
Subsidiaries

（YoY）

64.3

FY2022
Core operating profit
IFRS
Copyright (c) 2023 Lawson, Inc. All rights reserved.

Existing-store sales
1H（results） 105.7%
Full year（plan） 104.0%

Gross profit margin
1H（results） 31.5%
Full year（plan） 31.4%+3.0

Domestic CVS business
Seijo Ishii businessEntertainment-related business
Financial services business
Overseas business* Figures rounded to the nearest 0.5 billion yen for clarity.

-0.5
±0.0
+1.5
-1.0
+5.5

85.0

FY2023
Core operating profit
IFRS

7

FY2023 Initiatives
Sadanobu Takemasu
President and CEO
Representative Director
Chairman of the Board
Lawson, Inc.
Copyright (c) 2023 Lawson, Inc. All rights reserved.
Copyright (c) 2023 Lawson, Inc. All rights reserved.

Lawson Group’s Challenge 2025 Overview

2025

Customers, society, friends’

50 th anniversary

No.1 recommended brandGroup Vision“New hubs ofrefreshment in every
community”

New convenience in practiceLawson Group Sweeping Transformation
Executive Committee
Work motivation, determined spirit, digital data
Promise 1
Superior taste

Copyright (c) 2023 Lawson, Inc. All rights reserved.

Promise 2
Human kindness

Promise 3
Environmental(Machi) friendliness9Lawson Group’s Challenge 2025

-Lawson Group Sweeping Transformation Executive Committee◼ Create and practice “New convenience,” and aim for No.1 recommended brandCommunity-based ×
individual customer
andindividual store-focused

FY2024FY2023

FY2025●Expand area company system nationwide●Thoroughly pursue ultimate product taste along with ample product ranges and inventory●Explore deeper store opening potential and diversify store formats

Lawson Group Sweeping Transformation Executive Committee
Vendor distribution reform●Optimize vendor frameworks and strengthen product appeal●Expand sales of frozen food and establish a frozen distribution model to spark competition among local vendors●Establish optimal delivery models (changes to 2 deliveries of chilled and temperature-controlled products, reduce CO2 emissions）

Customer-centric supply chain reform●Promote optimal ordering volumes for individual stores by introducing newsemi-automatic ordering, maximize profit on sales, reduce food loss

Pursuit of ideal store format 2.0●Promote environment-conscious stores, reduce electricity consumption, pursue labor-saving measures

Projects

Unified use of Group data

●Expand marketing business using data and owned media●No.1 recommendation from customers, society, colleagues

The No.1 recommendation acquiring

50th anniversary executive
Franchise model reform
Group branding●Plan and promote suitable events and communication to mark Lawson’s 50 th anniversary●Establish a sustainable new FC model●Improve Group brand value

Personnel system reform●Reform HR systems to focus on market value (by job type) and performance-based remuneration,
reform management training platform and job satisfaction measures

Internal structure reform●Introduce lean head office systems

Group growth investment
Copyright (c) 2023 Lawson, Inc. All rights reserved.

●Incubation business (delivery, ghost restaurants, nationwide OTC sales, kitchen cars, etc.),
Group businesses (Seijo Ishii, Entertainment-related, Finance services, Overseas)10

FY2023 Business environment
Lifestyle

Real and digital✓ Remote work becomes the norm
✓ Rising sharing economy✓ Rising desire to save money✓ Rising respect for diversity as values
change✓ Recovery in post-COVID people flows(eating out, events, travel)✓ Enhanced e-commerce✓ Rising delivery needs

Social circumstances

Awareness of social issues✓ Economic slowdown fear（recession)✓ Rising prices (sharp rise in raw
materials and electricity prices)✓ Persistent yen weakening✓ Accelerating labor shortages✓ Rise in inbound demand
Copyright (c) 2023 Lawson, Inc. All rights reserved.

✓ Promoting regional revitalization✓ The spread of ethical consumption✓ Addressing environmental issues✓ Increased health consciousness

11

Domestic convenience store business-Community-based × individual customer and individual store-focused◼ Aim for evolution of “Community-based × individual customer and individual store-focused”
through area company system, product & sales strategy

Product & Sales strategy

Expand area company system nationwide
Management
structure
Sales &
development
Product &marketingCorporate

Clarified area company president profit
responsibility

Aim for ultimate chain-store management,
pursue double-axis policy of strengthening
product power and sales floor execution

Transfer functions to area companies
Optimize regular products to each area
Train merchandisers and marketer
Support each area
Strengthen governance

Hokkaido
Company

Kitakanto
Company
ChugokuShikoku
Company

Copyright (c) 2023 Lawson, Inc. All rights reserved.

Delicious taste
PursueTohokuCompany＋

Product range, stock

Ample ranges, volumes
Improve execution

Kinki
Company

ShutokenCompany
Chubu
Company

KyushuCompany

Products

8 areas✓✓✓Changed to more objective
customer tasting surveys
Improving quality of staple
products
Differentiation by adding
value to challenging
products✓✓

Improved leadershipcapability of individualstores through area
company system
Reducing lost opportunities
by focusing on breadth andvolume, and capturing
different demand in eacharea and store

12

Domestic convenience store business-Daily sales at existing stores, number of customers, spending per customer◼ Improved daily sales through HAPPY LAWSON PROJECT (HLP) and Lawson Group
Sweeping Transformation Executive Committee (LGSTEC) measures

Daily sales【YoY】
Daily sales

Number of customers

Spending per customer

106.6%

106.6%
106.0%（1H Plan 106.0％）

105.9%
105.1%

104.0%

103.9%

103.7%

106.2%

103.5%

Promotional measures, various measures, recovery
in people flows +3.7%（HAPPY LAWSON PROJECT, area company system,etc.）

102.2%
102.8%

101.5%

102.2%
101.7%

100.4%

Number ofcustomers

Spending per
customerAug.

1H
103.7%

1H
101.9%

100%
Mar.

Apr.

Copyright (c) 2023 Lawson, Inc. All rights reserved.

May

Impact for daily sales
Lawson Group Sweeping Transformation Executive
Committee +2.0%（Pursuit of ideal store format, MUJI introduction）

103.1%

102.5%

1H 105.7％

Jun.

Jul.

13

Domestic convenience store business-Category sales compared with FY2019◼ Implemented successful Lawson Group Sweeping Transformation Executive
Committee measures and pursued post-COVID needs
Launch of Lawson Group Sweeping
Transformation Executive Committee
Sep.2020▼

Cope with changed daily life

FY2019FY2020

FY2022

FY2023 1H

Change from
FY2019

Rice/noodles

100

87

91

93

-7

Over-the-counter fast foods/Machikado Chubo in-store
kitchens

100

84

104

110

＋10

Desserts

100

104

105

104

＋4

Delicatessen items/
Daily foods/Frozen foods

100

97

103

110

＋10

Soft drinks

100

87

89

97

-3

Daily necessities

100

98

102

113

+13

Others

100

96

100

102

+2

※Each figure represents the ratio compared with FY2019
Copyright (c) 2023 Lawson, Inc. All rights reserved.

14

Domestic convenience store business-Measures and daily sales improvements-◼ Refurbished stores to help satisfy customer demand through LGSTEC projects◼ Promoted the appeal of enhanced stores and products through HLP◼ Improved execution of various measures at each area company. Captured demand generated by recovery
in people flows
Pursuit of ideal store format
Lawson Group Sweeping Transformation Executive Committee

MUJI introduction

Introduced area company system nationwide in FY2023

Sales on upward trend since October
2022, and holding consistently above
pre-pandemic FY2019 levels

HAPPY LAWSON PROJECT

100%

Daily sales（v.FY2019）
Population in motion trends (v.FY2019)*

Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug.
FY2020
Copyright (c) 2023 Lawson, Inc. All rights reserved.

FY2021

FY2022

FY2023* Source: Regional Economy and Society Analyzing System (RESAS), Japan Cabinet Office15

Domestic convenience store business -Area company system◼ Area companies implement their own community-based measures

Japan’s northernmost store
Hokkaido Company

Chubu Company

Opened store
made of Hokkaido
timber in Japan’s
northernmost cityof Wakkanai

Supporting
customer lives amid
rising prices byoffering bigger
staple productportions for thesame price

Eemon Kansai!

Copyright (c) 2023 Lawson, Inc. All rights reserved.

Doerya! Super Fair

Megu Lawson! The taste of Kyushu

Kinki Company

Kyushu Company

Launchingpopular Kansai
products that
focus on uniqueand delicious
Kansai foodShowcasing attractive
ingredients and foodculture from eachprefecture. Launchedcollaborative popular
local products

16

Domestic convenience store business -Franchise store profits◼ Franchise store profits increased on daily sales growth and appropriate cost
controls【v.FY2019】
Per Store

Per Franchise Owner

100%

FY2019Copyright (c) 2023 Lawson, Inc. All rights reserved.

FY2020

FY2021

FY2022

FY2023 1H

17

Domestic convenience store business -2H initiatives: Pricing policy◼ Maintained existing pricing policy and pursued flexible response in light of polarized
consumption and market conditions

Pricing
policyTimely response in light of market environment●Original products: Add value and price appropriately●Basic daily items: Control prices to maintain price competitiveness2023 Spring/Summer

Changes in SKU ratio
by lunchbox price range

2023 AutumnLess than 400 yen
Less than 400 yen

600 yen or more

400-499 yen

400-499 yen

600 yen or more
500-599 yen

Flexibly change pricepoints by category
Copyright (c) 2023 Lawson, Inc. All rights reserved.

500-599 yen

18

Domestic convenience store business -2H initiatives: Marketing policy◼ Attracting customers through attractive promotions and stronger digital approach

Mass communication

Digital communication

Attract customers
through enhanced HLPSocial media-driven
generational approach

・Enhance announcements on Machikado
Chubo in-store kitchen products
・Implement optimal promotional
measures for each category

・Use social media to suit generational
demographics
・Utilize suitable digital media for target
products and promotional measures

Expand customer basethrough attractive
promotions

Boost store visits using
members-only app

・Increase number of popular FY2022
measures・Develop region-specific promotions
Copyright (c) 2023 Lawson, Inc. All rights reserved.

・Enhance measures that appeal tospecific demographics
・Develop new features for easy app use

19

Domestic convenience store business -2H initiatives: Various◼ Address social and environmental issues by improving distribution efficiency.
Expand delivery to create new purchasing scenarios
Expand deliveries

Shift to 2 chilled/temperature-controlled deliveries

The number of stores offering food delivery services
5,000
4,000

2,903

3,000

1,472

2,000
1,000

3,558

4,178

13

0
FY2019Aim✓ Address Work Style Reform Act as it relates to delivery
drivers✓ Reduce CO₂ emissions and control costs
Initiatives and impact✓ Gradually change number of deliveries to stores ofchilled and temperature-controlled products such as
lunch boxes, noodles, deli items, and sandwiches from
December 2023.
✓ Expect to reduce CO₂ emissions relating to store
delivery by approximately 8%
Copyright (c) 2023 Lawson, Inc. All rights reserved.

FY2020

FY2021

FY2022

FY2023 1H

Initiatives to promote the world’s fastest quick commerce
2024 Spring✓ Built a framework to better reflect the number of
products in stock in real time by linking delivery
platform companies with our own company systems✓ Increase the number of products we handle from 700
to 3,000

20

Seijo Ishii/Entertainment-related business

Seijo Ishii

Entertainment-related<Segment profit>
5.8 billion yen（YoY -0.3 billion yen）

<Segment profit>
3.8 billion yen（YoY ＋0.7 billion yen）

Existing-stores sales（v.FY2019）115%

Lawson Entertainment

United Cinemas

Ticket Sales（v.FY2019）
110%

100%

113.5%

106.6%
105.3%

106.0%（v.FY2019）141.2%

150%

108.3%

Customer Attendance

79.7% 83.0%
63.5%

100%

51.2%

67.9%
50%

105%
50%

35.4%

0%

0%

100%
FY2020

FY2021

FY2022

FY2023 1H

Sales at stores housed in office buildings grew and salesof daily foodstuffs and deli items made in our own
Central Kitchen remained strong. Operating income held
steady YoY.

Copyright (c) 2023 Lawson, Inc. All rights reserved.

FY2020 FY2021 FY2022 FY2023
1H

More vigorous activity on holdingof more concerts and otherphysical events. Ticket sales
exceeded FY2019 levels.

FY2020 FY2021 FY2022 FY2023

1H

Audience numbers increased
steadily YoY thanks to therelease of topical films with thepower to attract viewers.

21

Financial services/Overseas business

Financial services

Overseas<Segment profit>
1.6 billion yen（YoY -0.3 billion yen）

<Segment profit>
1.6 billion yen（YoY ＋5.5 billion yen）

Average number of ATMs used

Number of stores(Per machine per day)

8,000

6,877

70

60
50

47.5

43.1

48.4

52.6

55.6

6,160
6,000

4,862

2,918

30

272

2,646

10

6,030

277
5,620

2,000

20

847

302

3,621

4,000

40

540

3,344

4,560

0

0

FY2019FY2019FY2020

FY2021

FY2022

FY2020China

Average daily ATM usage increased due the expansionof affiliated financial partners in the ATM business (389companies, +5 compared to the end of FY2022) andhigher charges for cashless payment app. However,profit declined on higher maintenance costs.
Copyright (c) 2023 Lawson, Inc. All rights reserved.

FY2021

FY2023 1H
Asia-Pacific

FY2022

FY2023 1H*Figures of FY2019 to FY2022 are the resultsof the end of February in each fiscal year

Number of China stores exceeded 6,000 in August. Total overseas
stores: 6,877. Despite varying pace of regional recovery, daily sales
recovered and profit increased as demand rebounded following theprevious year’s lockdown in Shanghai and other cities and large-scale
restrictions on movement, as well as our efforts to improvement
store displays.

22

FY2023 1H Consolidated financial results
Unit：Billions of yen

FY2022
１H(Results)

FY2023Full year(Results)

Core operating
profit36.4

64.3

Profit

20.4

29.7

１Ｈ
(Results)

FY2022

85.0（YoY 145.8%）（YoY 132.2%）

32.4

47.0

（YoY 158.3%）（YoY 158.2%）

Initial Plan

150 yen◼ FY2023 1H (Non-consolidated) excluding LAWSON STORE100 business
Existing-stores sales YoY 105.7％*1
Opening 130／Closure 142／Total number of stores 14,619*2
Copyright (c) 2023 Lawson, Inc. All rights reserved.

53.0

FY2023Results
Dividends
per share

Full year(Plan)

200 yen

Revised Plan

235 yen*1 These figures are sums of total LAWSON and NATURAL LAWSON
operated by Lawson, Inc. Existing-store sales do not include theimpact of tickets, etc.
*2 The number of stores is a total number of stores operated by the
Lawson group.

23

Initiatives for ESG

Copyright (c) 2023 Lawson, Inc. All rights reserved.
Copyright (c) 2023 Lawson, Inc. All rights reserved.

Lawson Blue Challenge 2050！
2025

2030

50 th anniversary

SDGs targets

Reducing CO2 emissions
CO2 emissions per store

Reducing plastic use※Reducing plastic containers
and packaging use

15％

Reduce by
v.2013 levels

15％

Reduce by
v.2017 levels

Reducing plastic use

Reduce by

50％

Reduce byfood loss per store
Copyright (c) 2023 Lawson, Inc. All rights reserved.

25％
v.2018 levels

Reduce by

30％

50％
100％

Reduce by

50％

v.2018 levels

Lawson Blue Challenge 2050 !
—Save our blue planet!—

100％
v.2013 levels

v.2017 levels※Lawson’s original products
Eco-friendly materials

Reduce by

Reducing food loss

Environmental
visionv.2013 levels

Reduce by

Reducing plastic shopping bags use

2050※Lawson’s original products Eco-friendly materials

100％

used

used

Reduce by

100％
v.2018 levels

25

Progress toward 2030 targets for environmental initiatives
CO2 emissions
per store v.2013

2030 target
2022 results

30%

Food Loss
v.201850％

Reduction of 50％

Reduction of

Reduction of 30.6％

Reduction of 25.1%

Reduction of 23.1%

CO2 emissions

Plastic containers

Food loss

KPI

Reduction of

50%

2013

Initiatives

Plastic use
v.20172025

2030

New Initiatives
・Trial of energy-saving model・Sequential introduction of open display caseswith doors
・Pursue 10 energy-saving commitments
・Introduce energy-saving equipment in storesthat use large amounts of energy
Ongoing Initiatives
・Introduce energy-saving equipment throughthe life-cycle renovations

Copyright (c) 2023 Lawson, Inc. All rights reserved.

2017

2025

2030

New Initiatives
・Trial charging for cutlery (in collaboration
with Ministry of Economy, Trade andIndustry)
・Trial introduction of reusable cups
・Trial fast food sale using customer’s own
containers
Ongoing Initiatives
・Changing/simplifying shape of containers
and packaging
・Switch to environment-conscious
materials (biomass compounds, paper
lunchbox containers, etc.)

2018

2025

2030

New Initiatives
・Trial uses of expired products（Donating fast food using quick freezing
technology)
・Donating seasonal products at the end of
the season.
Ongoing Initiatives
・Using AI to improve order accuracy
・Thorough pursuit of sell-out operations

26

Initiatives for FY2023
Reducing food loss
Trial sales of 6 “frozen rice balls”⚫ Verify reduction in food waste⚫ Verify distribution efficiency
improvements throughfrozen food distribution

Reducing plastic use
Trial of using paper lid to new MACHI café
coffee lid at Green Lawson⚫ First hot coffee trial⚫ Reduce amount of plastic used ineach cup from 2.1g to 0.3g

Sold in freezer display caseHot coffee (s)Reducing CO2 emissions
Introduce hydrogen fuel cell lighttrucks for the first time
⚫ Introducing in Fukushima and Tokyo
distribution centers⚫ Plan to sequentially expand
product delivery area
Fuel cell light truck
Copyright (c) 2023 Lawson, Inc. All rights reserved.

Trial environment-conscious stores⚫ Refurbish by installing refrigerated
showcases with doors⚫ Installation of solar panels

Refrigerator display case with doors

27

Appendix

Copyright (c) 2023 Lawson, Inc. All rights reserved.
Copyright (c) 2023 Lawson, Inc. All rights reserved.

Shareholder return policy –Announced on April 14, 2023➢ Changed dividend policy in FY2019 to strengthen franchise owner support➢ Strengthened FC support from FY2020 to promote FC profit-focused management➢ Head office and FC profitability improved through measures designed by our
LGSTEC, etc.
➢ Strengthen shareholder returns by aiming for EPS of 500 yen and ROE of 15%<Dividends for the next 3 years>
Dividends per share

FY2023

Minimum 200 yen

FY2024

Minimum 225 yen

FY2025

Minimum 250 yen

Payout ratio(consolidated)

Target 50%

Set a cumulative total payout ratio target for FY2023 to FY2025 of 70%,
and consider agile and flexible additional returns
Copyright (c) 2023 Lawson, Inc. All rights reserved.

29

Cautionary Statement
This presentation contains forward-looking statements and forecasts regarding the future plans, strategies and performances of
Lawson and its subsidiaries and affiliates. These statements and forecasts are not historical facts. They are expectations based onassumptions and beliefs derived from information currently available to the Company and are subject to risks and uncertainties
including, but not limited to, economic trends, heightened competition in the domestic convenience store sector, personal
consumption, market demand, the tax system and other legislation. As such, actual results may differ materially from estimates.
Figures in this presentation have been rounded down.
Copyright (c) 2023 Lawson, Inc. All rights reserved.
Copyright (c) 2023 Lawson, Inc. All rights reserved.