Contents

Introduction

Value Creation

Strategy

Sustainability

Corporate Governance

Finance / Company Information

Selected contents
Introduction
P06

Message from the President

Creating
new forms of conveniences
on-siteValue Creation

StrategyIndex

01

The Lawson Group at a Glance (1)02

The Lawson Group at a Glance (2)03

Our Journey Creating Happiness in Our Communities

04

Message from the President

06

Community Happiness Creation Process

10

Materiality for Creating Happiness in Our Communities

12

Lawson Group Challenge 2025
Lawson Group Challenge 2025 Overview

14

Lawson Group Sweeping Transformation Executive Committee
Overview of the Lawson Group Sweeping Transformation Executive Committee 15

Feature:Machikado Chubo In-store Kitchens Project

P16►We want customers and franchise stores to know that our products are specifically for them

P25

Feature:Management Owner

P31

We aim to disclose information
to meets market need so that
we can be properly evaluated

P50

A Discussion by Outside Directors

Continue to question
the strategy andwill towards growth

16

Vendor Distribution Reform Project18

Customer-centric Supply Chain Reform Project19

Uniﬁed Use of Group Data Project / Group Branding Project

20

Business Portfolio►Making the convenience store into a desirable profession

Message from the CFOFeature:Machikado Chubo In-store Kitchens Project

Sustainability

Corporate Governance

Finance /Company Information

Domestic Convenience Store Business

21

Feature:Management Owner

25

Seijo Ishii Business

27

Entertainment-related Business

28

Financial Services Business

29

Overseas Business

30

Message from the CFO

31

Non-financial Highlights

34

Lawson Blue Challenge 2050 !

35

Environment

36

Society

40

Executives

48

A Discussion by Outside Directors

50

Corporate Governance

52

Compliance and Risk Management

56

Eleven-Year Financial Summary

58

Industry Trends and Sales / Store Related Data

60

Corporate Information

64

Editorial Policy

6501The Lawson Group at a Glance (1) As of February 28, 2023

Net sales of allconvenience stores

ROE

2,545.4
8.9

Introduction

Operatingincome

billion yen
ROA%

55.0
1.8

Value Creation

StrategyProfitper sharebillion yen
Payout
ratio

246
60.8%

679 stores

5,620 storesTohokuThailandFinance / Company Information[Domestic 14,806 stores]
Hokkaido

China

Corporate Governanceyen%[Overseas 6,160 stores]

Sustainability

Philippines

181 stores

101 stores

Hawaii

ChugokuIndonesia

256 stores

Koshinetsu

2 stores

KyushuHokuriku

527 stores

1,396 stores

Seijo Ishii (directly managed stores)

175 stores

383 stores
Kanto

945 stores
Tokai

4,682 stores

1,306 stores

2,659 stores
Shikoku 624 stores
Kinki

1,171 stores

Okinawa

259 stores

02

The Lawson Group at a Glance (2) As of February 28, 2023

Introduction

Value Creation

Strategy

Sustainability

Corporate Governance

Finance / Company Information

Financial services businessEntertainment-related business72.1billion yen

In addition to ticketing businesses such as Lawson
Ticket and Lawson Travel services, and merchandise
sales businesses such as HMV stores and e-commerce,

34.4 billion yen

Besides operating ATMs using LAWSON Bank ATMs
installed at LAWSON stores and other locations, theLAWSON Group has retail services including deposits
and credit cards.

the Lawson Group operates a cinema complex business.

Overseas business92.1billion yen
The LAWSON Group opens Japanese-style convenience stores throughfranchising in China, Thailand, Indonesia, the Philippines, and the U.S.
state of Hawaii.

Seijo Ishii business109.5 billion yen
A lifestyle supermarket for people who are particular about food,providing food from around the world at reasonable prices.

Grossoperating revenue

988.6billion yen

Domestic convenience store business691.3 billion yen

A convenience store that believes its fundamental role is“Creating Happiness and Harmony in Our Communities” andoperates in various store formats to suit each community’scharacteristics.

03

Our Journey Creating Happiness in Our Communities

Introduction

Value Creation

Strategy

Sustainability

Corporate Governance

Finance / Company Information

Lawson’s responsiveness to change, carrying on an unbroken line
Since its establishment, Lawson has responded proactively to changes in society,regularly identified customer needs, and developed new products and services.
Lawson, which started as a handyman in the community, is now a component of infrastructure in the society.
To ensure its position as an essential part of the community that provides support for residents,
Lawson is determined to continue pursuing and advancing the “hub of refreshment in every community” from the customer’s perspective.

Notable/Major Events(business)

1975

1986

1996

1998

Opened the first Lawson store
in Sakurazuka, Toyonaka, Osaka

Launched KARAAGE-KUN Fried Chicken

Launched Lawson Ticket service

Introduced Loppi multimedia terminals
to all stores

1989

1996

Started 24-hour/day operations

Started third-party bill settlement services
for the payment of electricity and gas bills

Opened the first overseas store
in Shanghai, China

1983

1991

1997

2000

Started copyingand printing services

Started third-party bill settlement services
for the payment of telephone and water bills

Realized Lawson’s presencein all 47 prefectures of Japan

Formed a business alliancewith Mitsubishi Corporation

1977

1994
5,000 stores

2000
Opened first convenience store
inside a hospital, Hospital LAWSON

Number of stores1975
1 storeHandyman in the community

Lawson as social infrastructure

Contribution to solving social issues

Started the challenges to reduce CO2 emissions, food waste, and plastic use

Notable/Major Events(environmental,social services)

1975

1983

1992

1997

1999

• Opened Station Park Waseda
experimental environment and welfare store• Established the LAWSON Green Town Fund(currently LAWSON Green Fund)• Started the food waste recycling system• First convenience store to introduce
low-environmental pollution delivery vehicles
using CNG

Stopped including chopsticks, spoons,and forks in boxed meals

1995

1998

Collected donations for rescue work
after the Great Hanshin-Awaji Earthquake

ISO 14001 certification(shifted to the operation under a voluntary environmental
management system in December 2019)1989

Commencement ofSea of Japan Earthquake Era name change (from Showa to Heisei)/
the Shinkansen service to Hakata
Introduction of consumption tax

2000
Started Mt. Fuji forest improvement project

1991

1995

1997

Gulf War/Collapseof Japan’s bubble economy

Great Hanshin-Awaji
Earthquake

Consumption tax increase: 3% to 5%04

Our Journey Creating Happiness in Our Communities

Introduction

Value Creation

Strategy

Sustainability

Corporate Governance

Finance / Company Information

As of February 28, 2023

14,806 stores

2001

2010

2014

2018

2019

Started automated teller machine (ATM) service

Launched the coalition loyalty program Ponta

Acquired supermarket chain
Seijo Ishii Co., Ltd.

Lawson Bank Launchedthe operation of Lawson Bank, Inc.

Introduction of delivery service,
started tie-up with Uber Eats

2010

2001

Established the LAWSON Farm

Opened first NATURAL LAWSON store

2011

2003
Established post boxes
in LAWSON stores nationwide

2011
10,000 stores

2014

2018

2019

Acquired United Entertainment Holdings Co., Ltd.
via Lawson HMV Entertainment, Inc.

Introduction of the LAWSON
smartphone cash register system

Started the operation of new,fully customer-operated POS cash registers

2015Established Lawson HMV Entertainment, Inc.
(currently Lawson Entertainment, Inc.)

Opened first care-focused LAWSONwith nursing care consultation desks for seniors

2018

2021

Introduction of POS cash registers
with automatic change dispensers

Start of renovations for ideal store format(Sweeping Transformation Executive Committee measures)

2005

2011

2017

2022

Opened first LAWSON STORE 100 store

Started operation of Machikado Chubo
in-store kitchen

Nationwide rollout of one of China’s
largest settlement services, Alipay

Lawson Go walk-through cashless
payment stores
Number of stores

To meet a wide variety of needs

Building stores meeting community needs

Expansion of business categories and services

Full-fledged efforts towards Health, DEI (Diversity, Equity & Inclusion), and SDGs

20032011

2015• First comprehensive regional agreementwith municipal government (Wakayama Prefecture)• Opened the first store offering prescription medicines

Set up Support Dreams Fund(scholarship program for victims ofthe Great East Japan Earthquake)

Selected for the 2015 Health & Productivity Stock Selection • Established the SDGs Committee(fourth time in total: 2015–2017, 2021)• Formulated the Lawson Blue Challenge 2050 ! environmental vision

2006

2012

Started recycling waste oil in all stores

Launched bran bread that contains grain husks

20162019
2020

Obtained the Resilience Certification

Provide onigiri (rice balls) at no cost to after-school childcare
facilities nationwide, in response to the pandemic

2022

2008

2014

2017

• Opened first eco-friendly model store• Set own action targets for reducing CO2 emissions

Selected as a Nadeshiko Brand(sixth time in total: 2014–2018, 2021)

Set up Support Dreams Fund
• Installed pointing sheets with the Ear mark label at cash registers(scholarship program for children from single-parent families) • Opened the futuristic Green Lawson (future format stores) stores

2005

2008

2011.3.11

2014

2015

2016

2019

2020

The Kyoto Protocol
took effectGlobal financial crisis

Great East JapanEarthquake

Consumption tax
increase: 5% to 8%

Adoption ofthe SDGs

The Paris Agreement took effectConsumption tax
increase: 8% to 10%

Spread of COVID-1905