Flash Report on the Consolidated Financial Results [IFRS]
for the First Quarter of the Fiscal Year Ending February 28, 2025
July 12, 2024
Listed Company Name: Lawson, Inc.
Tokyo Stock Exchange
Code No.: 2651
(URL https://www.lawson.jp/en/ir/)
Company Representative: Sadanobu Takemasu, President and CEO, Representative Director,
Chairman of the Board
Contact: Tomoki Takanishi, Senior Vice President, Financial Administration Division Director
Tel.: +81-3-6635-3963
Scheduled date for submission of quarterly securities report: July 12, 2024
Scheduled date for payment of dividend: –Supplementary materials for quarterly financial results: Yes
Holding of presentation of quarterly results: None
(Amounts less than one million yen are truncated)
1. Consolidated operating results for the first quarter ended May 31, 2024 (from March 1, 2024 to May 31, 2024)(1) Consolidated operating results (cumulative)
Note: Percentages represent increases (decreases) compared with the corresponding period of the previous fiscal year.
Gross operating
revenue
For the first
Millions
quarter endedof yenMay 31, 2024 279,441
May 31, 2023 264,100

%
5.8
11.9

Core operating
profitProfit before tax

Millionsof yen26,12826,246

Millionsof yen24,742
24,041

%
(0.4)
63.9

%
2.9
73.4

Basic earnings per
share

Diluted earnings per
share

For the first quarterended
May 31, 2024

Yen

Yen

169.55169.37

May 31, 2023

160.83160.70

ProfitMillionsof yen16,94616,141%
5.0
94.2

Profitattributable toowners ofparentMillions%of yen16,967
5.4
16,095 92.1

Total
comprehensive
incomeMillionsof yen18,538
16,958%9.3
58.9

Note: “Core operating profit” is a profit indicator for operating income under Japanese GAAP that is calculated
by subtracting the cost of sales and selling, general and administrative expenses from gross operating revenue.
(2) Consolidated financial position

As of
May 31, 2024
February 29, 2024

Total assets

EquityMillions of yen
2,397,685
2,297,498

Millions of yen
307,615
289,300

Equityattributable to ownersof parent
Millions of yen
303,010284,752

Ratio of equity
attributable to ownersof parent to total assets
%
12.6
12.4

2. Dividends

2023 fiscal year

1Q
Yen
–

2024 fiscal year–

2024 fiscal year (forecast)

1H
Yen
117.50–Note: Revision of the most recent dividends forecast: None

Annual dividends per share
3Q
Year-end
Yen
Yen
–
0.00
–

–

Total
Yen
117.50–3. Forecast of consolidated operating results for 2024 fiscal year (from March 1, 2024 to February 28, 2025)
As publicly announced in the “Notice of Resolutions to Approve Share Consolidation, Abolition of theProvision on Share Units and Partial Amendment of the Articles of Incorporation” dated July 3, 2024, theCompany’s common shares will be delisted on July 24, 2024. Therefore, the financial forecasts for fiscal 2024
are not provided.
4. Notes(1) Change in significant subsidiaries during the quarterly consolidated period (Changes in certain specified
subsidiaries resulting in changes in scope of consolidation): None
Added: None
Excluded: None
(2) Changes in accounting policies, changes in accounting estimates
1. Changes in accounting policies required by IFRS: Yes
2. Changes in accounting policies other than 1. above: None
3. Changes in accounting estimates: None
Note: For details, please refer to “2. Condensed Quarterly Consolidated Financial Statements and Main
Notes, (5) Notes Concerning Condensed Quarterly Consolidated Financial Statements (Material
Accounting Policy Information)” on page 15.
(3) Number of shares outstanding (common stock)
1. Number of shares outstanding at the end of period (including treasury shares)
As of May 31, 2024:
100,300,000
As of February 29, 2024:
2. Number of treasury shares at the end of period
As of May 31, 2024:
223,659
As of February 29, 2024:
3. Average number of shares during the period (cumulative three months)
As of May 31, 2024:
100,076,951
As of May 31, 2023:

100,300,000
222,085
100,078,265

Note: The Flash Report on the Consolidated Financial Results is not subject to audit.
Note: Descriptions on appropriate use of financial performance forecasts and other special notes
As publicly announced in the “Notice of Resolutions to Approve Share Consolidation, Abolition of theProvision on Share Units and Partial Amendment of the Articles of Incorporation” dated July 3, 2024, theCompany’s common shares will be delisted on July 24, 2024. Therefore, the financial forecasts for fiscal
2024 are not provided.

Contents

1. Qualitative Information Regarding Quarterly Financial Results ..........................................................

2(1) Explanation Regarding Consolidated Operating Results ................................................................

2(2) Explanation Regarding Consolidated Financial Position ...............................................................

7(3) Explanation Regarding Forward-looking Statements .....................................................................

7

2. Condensed Quarterly Consolidated Financial Statements and Main Notes .........................................

8(1) Condensed Quarterly Consolidated Statement of Financial Position .............................................

8(2) Condensed Quarterly Consolidated Statement of Profit and Loss and Condensed Quarterly
Consolidated Statement of Comprehensive Income ......................................................................

10

Condensed Quarterly Consolidated Statement of Profit and Loss ..............................................

10

Condensed Quarterly Consolidated Statement of Comprehensive Income ................................

11(3) Condensed Quarterly Consolidated Statement of Changes in Equity ............................................

12(4) Condensed Quarterly Consolidated Statement of Cash Flows .......................................................

14(5) Notes Concerning Condensed Quarterly Consolidated Financial Statements ................................

15(Going Concern Assumption).........................................................................................................

15(Material Accounting Policy Information) ....................................................................................

15(Segment Information) ...................................................................................................................

15(Additional Information) ...............................................................................................................

171

1．Qualitative Information Regarding Quarterly Financial Results(1) Explanation Regarding Consolidated Operating Results
During the first quarter of fiscal 2024, from March 1 to May 31, 2024, we made concerted Group-wide efforts
to realize the qualitative goal of the “Lawson Group Challenge 2025” medium-term management vision, which is
to ensure we are the No. 1 recommended business in our industry by customers, society, and partners. Specifically,
we undertook various measures under our Lawson Group Sweeping Transformation Executive Committee, andthe whole Lawson Group collectively endeavored to resolve medium- to long-term issues for sustainable growth,acquire new revenue opportunities, and foster job satisfaction. With community, individual customers andindividual stores as our strategic concepts, we more vigorously pursued the creation of customer value at locations
that are in close proximity to our customers and have undertaken initiatives using AI and other digital technologies
with the aim of achieving “Real x Tech Convenience.” Moreover, we have formed a working group with
Mitsubishi Corporation and KDDI Corporation to begin discussing future measures.
As a result, during the first quarter of fiscal 2024 on a consolidated basis, gross operating revenue increased to279,441 million yen (up 5.8% from previous fiscal year) and profit before tax increased to 24,742 million yen (up2.9% from previous fiscal year). Profit attributable to owners of parent was 16,967 million yen (up 5.4% fromprevious fiscal year).
We also focused on improving our group-wide internal control system and addressing operating risks based on
the 2024 Basic Policy for Improvement of Internal Control Systems. We will continue promoting internal control
going forward.
Operating results by business segment were as follows.
(Domestic Convenience Store Business)
During the first quarter under review, in addition to strengthening delivery services by introducing an automatic
linkage function that allows customers to check the availability of in-store inventory on the apps of delivery
service providers and expanding our merchandise, we introduced “AI.CO”, a next-generation ordering systemusing AI. Also, as we work our way toward 2025, our 50th anniversary year, we continue to expand HAPPYLAWSON PROJECT! with the aim of creating “hubs of refreshment in every community,” and promoted
measures to fulfill the three promises of our business policy—“Superior taste,” “Human kindness,” and“Environmental (Machi) friendliness”—in an effort to operate LAWSON stores endorsed by all our customers.
In addition to further strengthening our distinctive products that focus on taste and health, we are also working
to provide heartfelt customer service in our stores, and we are continuing with our environmentally friendly
measures such as reducing food loss, plastic usage, and CO2 emissions.
[Store Operations]
In store operations, we continued to focus on reinforcing adherence to the Three Essential Practices, whichemphasizes (1) serving customers courteously; (2) offering a merchandise assortment focused on basic items withhigh demand; and (3) keeping our stores and communities clean. In our efforts to increase sales, we also focusedon expanding our merchandise assortment to respond to changes in customer lifestyles and values. Furthermore,
we kept up our initiatives to increase the profitability of franchise stores, including helping them streamline theirstore operation and control costs associated with food waste and utility expenses.

2

[Merchandising and Service Strategies]
Sales continued to surge in fast-food counter items, the rice range, bakery, and dessert items driven byfactors such as various sales promotional measures represented by “HAPPY LAWSON PROJECT!” and anincrease in the movement of people. In the fast-food counter range, the in-store freshly brewed coffee service“MACHI café” enjoyed strong sales in addition to regular items such as the “Kara-age-kun” chicken nuggets.
In the rice range, rice bowls such as the “Kinshari Onigiri Rice Ball” series drove strong sales. In bakery range,
we saw strong performance for sweet breads such as “Melon-pan Bread with Salty Butter” as well as regularsavory breads, and in dessert items, sales of new products such as “CHEESECAKE” and the new sponge cakeproducts drove sales up.
In food delivery service, the combined number of stores listed on four food delivery services such as Uber
Eats, reached 6,446 in 47 prefectures as of May 31, 2024. In addition, Uber Eats delivers over-the-counter(OTC) medicine sold at 117 LAWSON stores in 24 prefectures.
[Breakdown of Sales by Merchandise Category at Chain Stores in Domestic Convenience Store Business]
Previous fiscal year
Current fiscal year
Fiscal year
From March 1, 2023
From March 1, 2024
to May 31, 2023
to May 31, 2024
Sales

Percentage

Sales

Percentage(Millions of yen)of total (%)(Millions of yen)of total (%)

Processed foods

318,83353.7

329,992

53.4

Fast foods

133,28222.4

138,215

22.3

Daily delivered foods

89,635

15.1

95,731

15.5

Nonfood products

52,2048.8

54,5038.8

593,957

100.0

618,442100.0

Product group

Total[Store Development]

In opening new stores, the Group continued to focus on developing profitable stores.
During the first quarter of fiscal 2024, the total number of LAWSON, NATURAL LAWSON and LAWSONSTORE100 stores opened in Japan stood at 55 stores. Meanwhile, we closed a total of 90. As of the end of May
2024, the total number of domestic stores was 14,608*1.
In an effort to establish convenience store models catered to an aging population and a trend toward selftreatment, we are building partnerships with dispensing pharmacy and drug store chains to operate healthcareoriented LAWSON stores that offer over-the-counter pharmaceuticals and prescription drugs, as well as a wider
assortment of cosmetics and daily necessities than conventional LAWSON stores. The number of stores
offering over-the-counter pharmaceuticals has reached 313 stores (includes 44 pharmacy LAWSON stores
equipped with drug-dispensing pharmacies) as of the end of May 2024. Moreover, the number of stores withnursing care consultation desks for seniors has reached 19 as of the end of May 2024. Furthermore, we havealso been expanding our chain of “in-hospital LAWSON stores,” which feature strengthened focus on medical,
sanitary and nursing supplies in addition to merchandise and services offered at standard convenience stores.
The number of such stores has reached 342 as of the end of May 2024. Building on our expertise developed
through operation of in-hospital LAWSON stores, we will continue to support the lives of all people interactingwith hospitals.

3Our NATURAL LAWSON stores, which are popular among customers for supporting their beauty, health, andcomfortable lifestyles, offer an exclusive selection of finely picked items of value, including food made withhealthy ingredients along with environmentally friendly detergents and cosmetics. Meanwhile, our LAWSONSTORE100 stores consistently offer safe and high-quality fruits and vegetables with a focus on freshness anddaily necessities, supporting customers’ daily dietary lives by helping them plan their meals. The stores are visitedby customers of all ages including children and the elderly, and particularly single people and homemakers. As ofthe end of May 2024, we operate 133 NATURAL LAWSON stores and 645 LAWSON STORE100 stores.
*1 The numbers of store openings and closings and total number of stores in Japan include stores operated by
Lawson, Inc., Lawson Kochi, Inc., Lawson Minamikyushu, Inc. and Lawson Okinawa, Inc.
[Change in the Total Number of Domestic Stores]
Total stores as ofFebruary 29, 2024
LAWSON
13,865
NATURAL LAWSON130LAWSON STORE100
648
Total
14,643

Change during
fiscal year
(35)
3
(3)
(35)

[Number of LAWSON stores by prefecture (As of May 31, 2024)]
NumberNumberPrefecture
Prefecture
Prefectureof storesof stores
Hokkaido704
Ibaraki214
Kyoto

Numberof stores
326

Total stores as of
May 31, 2024
13,830133
645
14,608Prefecture
Ehime

Numberof stores
214

Aomori

279

Tokyo

1,649

Shiga

150

Tokushima

133

Akita

179

Kanagawa

1,062

Nara

134

Kochi

135

Iwate

179

Shizuoka

272

Wakayama

154

Fukuoka525

Miyagi257

Yamanashi

134

Osaka

Saga

78

Yamagata

108

Nagano

165

Hyogo

699

Nagasaki

125

Fukushima

169

Aichi

714

Okayama

244

Oita

199

Niigata

227

Gifu

174

Hiroshima

304

Kumamoto

166

Tochigi

197

Mie

136

Yamaguchi

129

Miyazaki

112

Gunma

240

Ishikawa

101

Tottori

134

Kagoshima

200

Saitama692

Toyama176

Shimane

140

263

Chiba

592

Fukui

104

Kagawa132

Okinawa
Total(domestic)

1,188

14,608(Note) These figures include stores operated by Lawson, Inc., Lawson Kochi, Inc., Lawson Minamikyushu, Inc.
and Lawson Okinawa, Inc.
As a result, Domestic Convenience Store Business posted gross operating revenue of 190,901 million yen (up5.2% from previous fiscal year) and segment profit of 19,292 million yen (down 3.4% from previous fiscal year).
(Seijo Ishii Business)
Seijo Ishii Co., Ltd provides customers with well-selected, and highly original foods under its philosophy of“Quality food for a quality life.” Operating diverse store formats including street-side stores and stores in stationbuildings and commercial facilities, the supermarket chain leverages its distinguished product development
expertise to offer original products and food items made in-house under the Seijo Ishii brand. The number of
directly operated Seijo Ishii Co., Ltd stores reached 182 as of the end of May 2024. Sales grew mainly at streetside stores and stores in stations, which account for more than 70% of the total number of stores, and stores in4

station buildings. Product-wise, daily delivered foods and dishes produced in-house at Seijo Ishii’s central kitchenrecorded steady sales, while sales grew for fresh food including fruits and vegetables, meat, and fish, primarily atstreet-level stores. We will continue striving to elevate the brand power of Seijo Ishii by promoting the sustainable
development of products of value, effective promotional campaigns, and publicity activities as a manufacturingretailer eager to send messages out to consumers.
As a result, Seijo Ishii Business posted gross operating revenue of 30,248 million yen (up 8.9% fromprevious fiscal year) and segment profit of 3,625 million yen (up 11.8% from previous fiscal year).
(Entertainment-related Business)
With respect to our ticketing business in our Entertainment-related Business undertaken by Lawson
Entertainment, Inc., concerts, events, and other genres enjoyed brisk demand. In addition, we focused ourefforts on securing an expanded lineup of events and strengthening sales in each genre, which resulted in a
year-on-year increase in our ticket transaction value. Furthermore, sales for our product sales business at HMV
music/video software stores and others grew as a result of a rise in the number of concerts and events held,
which drove up sales for related products, as well as an increase in the movement of people. In our e-commercebusiness, we are making efforts to expand the scope of merchandise we handle, including band and artist
merchandise, cosmetics and other items. The number of stores has reached 49 as of May 31, 2024, including
HMV stores, HMV&BOOKS, which markets books, CDs and DVDs, and HMV record shop stores specializing
in analog records.
Lawson United Cinemas, Inc., an operator of cinema complexes, saw an increase in the number ofmoviegoers thanks in part to high-profile films released between the spring holiday season and the long holiday
in May. On April 26, we opened “Lawson United Cinemas STYLE-S Minatomirai,” the world’s first cinema
equipped with an immersive sound experience system for all screens and seats, providing a new entertainment
experience utilizing state-of-the-art technology. As of May 31, 2024, 44 cinema complexes nationwide with
410 screens are operating. United Cinema Co., Ltd. has changed its name to Lawson United Cinemas, Inc.
effective March 1, 2024.

As a result, Entertainment-related Business posted gross operating revenue of 20,722 million yen (down
1.3% from previous fiscal year) and segment profit of 2,264 million yen (up 17.5% from previous fiscal year).
(Financial Services Business)
With respect to our Financial Services Business, we endeavored to offer an expanded range of new services
through Lawson Bank, Inc.’s ATMs and ATM settlement network. As of May 31, 2024, the number of ATMs
installed nationwide reached 13,664, with each ATM used 58.1 times a day on average. The total number ofour financial institution partners reached 400 nationwide. We now have 15 partners for the cash charging at
ATMs, 8 for the “Smartphone ATM (QR code deposit/withdrawal)”*2 service, 25 for the “Immediate AccountSettlement Service”*3 (19 financial institutions and 6 other service operators), and 12 for international moneytransfer cards. In addition to cash deposit and withdrawal services, charging to cashless payment services has
also contributed to the increased use of ATMs, etc. Furthermore, the new-model ATMs, which have been
installed gradually from January 2024, are expanding the services available, including support for charging
cash to contactless IC-equipped electronic money.
Regarding LAWSON Ponta Plus credit cards issued by Lawson Bank, Inc, we are continuing to work on

5

promoting card usage by drawing public attention to the benefits of using the card at LAWSON stores and other
Ponta affiliated stores.
*2 A service where customers can deposit/withdraw cash or take out/repay a credit card loan at an ATM by usinga smartphone app instead of a bank card. “Smartphone ATM” is a registered trademark of Seven Bank, Ltd.
*3 A service that allows customers to top up their mobile payment app from their account with a financial
institution by harnessing the ATM network.
As a result, Financial Services Business posted gross operating revenue of 9,290 million yen (up 4.8% fromprevious fiscal year) and segment profit of 337 million yen (down 62.2% from previous fiscal year).
(Overseas Business)
With regards to Overseas Business, the Group’s operating companies have developed LAWSON stores in the
People’s Republic of China, Thailand, the Philippines, the United States of America (Hawaii) and Indonesia.
The number of LAWSON stores in the People’s Republic of China reached 6,335 as of May 31, 2024, up 47
stores from the end of previous fiscal year, including the opening of the first store in Shandong Province in March.
In addition to opening new stores through our subsidiaries, we are also launching stores by concluding mega
franchise agreements with local retailers in different cities, as well as area license agreements, where partnercompanies serve as headquarters in designated areas and assume overall operation and development, in efforts toaccelerate the expansion of business areas and the number of stores. Profit increased as we responded to theeconomic slowdown and changes in consumer purchasing behavior through cost control and other measures. We
will work to offer our signature high-quality original products including rice and dessert items, enhance the valueof the Lawson brand in China, and increase earnings by strengthening our delivery business.
With regard to regions other than China, daily sales remained steady due to a recovery in the overall consumer
market and the increased movement of people, including an increase in the number of travelers from overseas.
We have been accelerating the pace of new store openings, with the total number of stores in Thailand, thePhilippines, the United States (Hawaii), and Indonesia reaching 1,059 as of May 31, 2024, up 3 stores from theend of the previous fiscal year. We will continue to operate our stores to sustain the daily lives of our customers
and strive to further expand our earnings.
[Distribution of LAWSON Brand Stores Overseas by Region]
Number of stores(As of February 29,
Country/Region
2024)
China
6,288
Thailand
188
Philippines
144
United States of America (Hawaii)
2Indonesia
722
Total
7,344

Changeduringfiscal year
47
5
17
–
(19)
50

Number of stores(As of May 31,
2024)
6,335
193
161
2
703
7,394

As a result, Overseas Business posted gross operating revenue of 30,931 million yen (up 12.0% from previous
fiscal year) and segment profit of 576 million yen (up 171.5% from previous fiscal year).

6(2) Explanation Regarding Consolidated Financial Position①

Assets, liabilities and equity at the end of the first quarter of fiscal 2024
Current assets increased by 99,920 million yen from the end of the previous fiscal year to 815,788 million

yen, mainly reflecting increases of 74,251 million yen in cash and cash equivalents and 21,333 million yen in
trade and other receivables. Non-current assets increased by 266 million yen from the end of the previous fiscal
year to 1,581,896 million yen, mainly reflecting increases of 2,487 million yen in property and store equipment
and 1,239 million yen in intangible assets, and a decrease of 3,225 million yen in deferred tax assets.
Consequently, total assets increased by 100,186 million yen from the end of the previous fiscal year to2,397,685 million yen.
Current liabilities increased by 82,988 million yen from the end of the previous fiscal year to 1,094,181
million yen, mainly reflecting increases of 60,170 million yen in borrowings and 55,192 million yen in deposits
received, and a decrease of 22,450 million yen in other financial liabilities. Non-current liabilities decreased
by 1,116 million yen from the end of the previous fiscal year to 995,889 million yen, mainly reflecting adecrease of 1,565 million yen in lease liabilities. Consequently, total liabilities increased by 81,872 million yen
from the end of the previous fiscal year to 2,090,070 million yen.
Equity increased by 18,314 million yen from the end of the previous fiscal year to 307,615 million yen,mainly reflecting increases of 16,760 million yen in retained earnings and 1,514 million yen in othercomponents of equity. Consequently, shareholders’ equity ratio was 12.6%, up from 12.4% as of the end of theprevious fiscal year.
②

Cash flows during the first quarter of fiscal 2024
Cash and cash equivalents as of May 31, 2024 decreased by 74,251 million yen from the end of the previous

fiscal year to 506,715 million yen.
Net cash provided by operating activities was 78,271 million yen, a decrease of 116,092 million yen fromthe previous fiscal year, mainly because of the movement in call money for banking business, deposits received,
trade and other payables, and trade and other receivables.
Net cash used in investing activities was (18,837) million yen, a decrease of 3,281 million yen from theprevious fiscal year, mainly because of an increase in purchase of intangible assets, a decrease in payment forguarantee deposits and purchase of long-term prepaid expenses, a decrease in proceeds from collection ofguarantee deposits and proceeds from sale and redemption of investments.
Net cash provided by financing activities was 14,714 million yen, a increase of 79,575 million yen from theprevious fiscal year, mainly because of an increase of proceeds from borrowings and repayments of borrowings,
and a decrease of dividends paid.
The Group’s sources of capital and funding liquidity are used to fund new store openings, remodel existing
stores, and develop new business, as well as to pay dividends.
Working capital and investment funds are basically allocated from operating cash flow, and funds areprocured as needed.
(3) Explanation Regarding Forward-looking Statements
As publicly announced in the “Notice of Resolutions to Approve Share Consolidation, Abolition of theProvision on Share Units and Partial Amendment of the Articles of Incorporation” dated July 3, 2024, theCompany’s common shares will be delisted on July 24, 2024. Therefore, the financial forecasts for fiscal 2024 are
not provided.

72. Condensed Quarterly Consolidated Financial Statements and Main Notes(1) Condensed Quarterly Consolidated Statement of Financial Position

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Finance lease receivables
Other financial assets
Inventories
Other current assets
Total current assets
Non-current assets
Property and store equipment
Right-of-use assets
Investment property
Goodwill
Intangible assets
Investments accounted for using equity
methodGuarantee deposits
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

8Previous fiscal year
As of February 29,2024(Millions of yen)
Current 1st Quarter
As of
May 31, 2024

432,464
234,295
7,707
879
29,176
11,345715,868

506,715
255,629
7,553
1,828
30,707
13,354
815,788

193,270
1,058,069
47,841
52,25864,003

195,758
1,057,968
47,131
52,86365,243

6,665

6,300

97,502
8,399
47,543
6,077
1,581,630
2,297,498

97,7158,704
44,317
5,892
1,581,896
2,397,685

Liabilities and equity
Current liabilities
Trade and other payables
Deposits received
Borrowings
Income taxes payable
Other financial liabilities
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liability
Deferred tax liabilities
Provisions
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares
Other components of equity
Retained earnings
Total equity attributable to owners ofparentNon-controlling interests
Total equity
Total liabilities and equity

9

Previous fiscal year
As of February 29,2024(Millions of yen)
Current 1st Quarter
As of
May 31, 2024

256,411
202,954
90,85016,012418,774
2,490
23,699
1,011,192

259,349
258,146
151,0207,614
396,324319
21,405
1,094,181

99
916,105
21,585
17,280386
37,8403,706
997,005
2,008,197

105
914,540
21,73017,284683
37,8303,713
995,8892,090,070

58,50647,058(947)
5,705
174,42958,50647,058(964)
7,219
191,189284,752

303,0104,548
289,300
2,297,498

4,605
307,615
2,397,685

(2) Condensed Quarterly Consolidated Statement of Profit and Loss and Condensed Quarterly
Consolidated Statement of Comprehensive Income
Condensed Quarterly Consolidated Statement of Profit and Loss
Previous 1st Quarter
From March 1, 2023
to May 31, 2023
264,100(123,567)
140,533(114,286)
618(1,191)408(2,452)Gross operating revenue
Cost of sales
Operating gross profit
Selling, general and administrative expenses
Other income
Other expenses
Finance income
Finance costs
Share of profit of investments accounted forusing equity method
Profit before tax
Income taxes
ProfitProfit (loss) attributable to
Owners of parent
Non-controlling interests
Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)10(Millions of yen)
Current 1st Quarter
From March 1, 2024
to May 31, 2024
279,441(129,334)
150,107(123,978)696(1,066)1,080(2,438)412

341

24,041(7,900)16,141

24,742(7,795)
16,946

16,09546
16,141

16,967(21)
16,946160.83160.70169.55169.37

Condensed Quarterly Consolidated Statement of Comprehensive Income(Millions of yen)Previous 1st Quarter
From March 1, 2023
to May 31, 2023
16,141

ProfitItems that will not be reclassified to profit or loss
Financial assets measured at fair value throughother comprehensive income
Total of items that will not be reclassified to
profit or loss

Current 1st Quarter
From March 1, 2024
to May 31, 2024
16,946

55

(99)

55

(99)

753

1,669

8

21

761

1,691

817
16,9581,591
18,53816,87483

18,481
56

Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations
Share of other comprehensive income ofinvestments accounted for using equity
methodTotal of items that may be reclassified to
profit or loss
Other comprehensive income (net of tax)
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests11(3) Condensed Quarterly Consolidated Statement of Changes in Equity
Previous 1st Quarter (From March 1, 2023 to May 31, 2023)(Millions of yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of March 1, 2023

Capital surplus Treasury shares

58,506

46,934

Financial assets
Exchangemeasured at fairdifferences onvalue throughtranslation ofotherforeigncomprehensive
operations
income(948)(1,278)

5,077

ProfitTotal comprehensive income
Purchase of treasury shares

55

723

779

55

723

779

(0)

–

Dividends–

Exercise of share acquisition rights(issuance of treasury shares)

(5)

5

–

(5)

5

–

–

–

58,50646,928(943)(1,223)

5,801

4,578

Total transactions with owners
Balance as of May 31, 2023–

Equity attributable to ownersof parent

Retainedearnings

ProfitTotal equity

3,916

253,858

249,941

16,09516,09546

16,141

779

37

817

16,87483

16,95816,095Purchase of treasury shares
Dividends

Total

Noncontrollinginterests

141,650

Other comprehensive income
Total comprehensive income

3,799
–

Other comprehensive income

Balance as of March 1, 2023

Total

(7,505)

Exercise of share acquisition rights(issuance of treasury shares)

(0)

(0)

(7,505)(7,505)00

Total transactions with owners(7,505)(7,506)–(7,506)

Balance as of May 31, 2023

150,240

259,3104,000

263,31112

Current 1st Quarter (From March 1, 2024 to May 31, 2024)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
Financial assets
measured at fair
Share capital Capital surplus Treasury sharesvalue throughothercomprehensive
incomeBalance as of March 1, 2024

58,50647,058(947)(1,009)Exchangedifferences ontranslation offoreign
operations
6,715

ProfitTotal comprehensive income
Purchase of treasury shares

(99)

1,613

1,514

(99)

1,613

1,514

(16)

–

Other

–

Total transactions with owners

–

–

(16)

–

–

–

58,50647,058(964)(1,109)

8,329

7,219

Equity attributable to ownersof parent

Retainedearnings

Balance as of March 1, 2024
ProfitTotal transactions with owners
Balance as of May 31, 2024

Total equity

284,752

4,548

289,300

16,967

16,967(21)

16,946

1,514

77

1,591

18,481

56

18,538

16,967Purchase of treasury shares
Other

Total

Noncontrollinginterests

174,429

Other comprehensive income
Total comprehensive income

5,705
–

Other comprehensive income

Balance as of May 31, 2024

Total

(16)

(16)

(207)

(207)

(207)

(207)

(223)

–

(223)

191,189

303,010

4,605

307,61513

(4) Condensed Quarterly Consolidated Statement of Cash Flows(Millions of yen)Previous 1st Quarter
From March 1, 2023
to May 31, 2023
Cash flows from operating activities:
Profit before tax
Depreciation and amortization
Impairment loss
Interest income
Interest expenses
Loss on retirement of non-current assets
Decrease (increase) in trade and other receivables
Increase (decrease) in trade and other payables
Increase (decrease) in deposits received
Increase (decrease) in net defined benefit liability
Net increase (decrease) in call money for banking
business
Other

Current 1st Quarter
From March 1, 2024
to May 31, 2024

24,04152,536
585
(318)
2,451
231
(14,682)
19,93075,788114

24,74253,550
350
(335)
2,346
456
(21,125)
7,237
55,1142

48,000(23,500)(2,380)(8,693)

206,297517(1,117)(11,333)

90,145790(861)(11,803)

Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchases of property and store equipment, right-of-use
assets and investment property
Purchase of intangible assets
Purchase of investments
Proceeds from sales and redemption of investments
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Purchase of long-term prepaid expenses
Other

194,364

78,271(8,838)(8,708)(4,024)(112)
2,025(4,381)
2,417(2,415)(226)(9,716)(76)
512(1,020)
816
(100)
(543)

Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from borrowings
Repayments of borrowings
Repayments of lease liabilities
Dividends paid
Other

(15,556)(18,837)

51,141(62,585)(45,913)(7,505)4

640,850(580,680)(45,438)–(16)

Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period(64,860)

14,714286

102

114,233
399,523

74,251
432,464

Cash and cash equivalents at end of period

513,756

506,715

SubtotalInterest and dividends received
Interest paid
Income taxes paid

14

(5) Notes Concerning Condensed Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not Applicable.
(Material Accounting Policy Information)
The material accounting policies adopted for the Condensed Quarterly Consolidated Financial Statements are
the same as those for the Consolidated Financial Statements for the fiscal year ended February 29, 2024, except
for the following standards, which have been newly adopted.
In addition, income taxes for the first quarter ended May 31, 2024 are calculated based upon an estimatedaverage annual effective tax rate. The Company and certain subsidiaries have transitioned to the group tax sharing
system.
The standards that the Group has adopted from the first quarter ended May 31, 2024 are as follows:Standard

IAS 1

IFRS 16IAS 7
IFRS 7

Standard name

Outline・Clarification of classification criteria related to classifying liabilities
Presentation of Financial as current or non-current
Statements
・Revision of disclosure criteria concerning non-current liabilities withcovenants

Leases・Clarification of accounting treatment for post-transaction of sale andleaseback transactions

Statement of Cash Flows ・Disclosure requirements to enhance the transparency of supplier
Financial Instruments:
finance agreements
Disclosures

Furthermore, there was no material impact on the Condensed Quarterly Consolidated Financial Statements forthe first quarter resulting from the application of the above standards.
(Segment Information)
1. Outline of reportable segments
The Company’s reportable segments are separate components for which discrete financial information isavailable and which are subject to regular review by the board of directors in order to determine the allocation ofmanagerial resources and evaluate financial performance.
The Group is primarily engaged in the domestic convenience store business, Seijo Ishii business,entertainment-related business, financial services business and overseas business while incorporating related
businesses and managed as a group.
Therefore, the Group aggregates its main reportable segments considering the nature of the services provided
and economic characteristics as follows: Domestic Convenience Store Business, Seijo Ishii Business,
Entertainment-related Business, Financial Services Business and Overseas Business.
Regarding Domestic Convenience Store Business, Lawson, Inc. operates a franchise system as well as
undertaking the direct management of stores in Japan as the parent company of LAWSON, NATURAL LAWSON,
and LAWSON STORE100. Lawson urbanworks, Inc. undertakes the direct management of LAWSON stores
mainly in Tokyo and Chiba prefectures. Lawson Store100, Inc. undertakes the direct management of LAWSONSTORE100 stores and provide management support for franchised stores. Lawson Minamikyushu, Inc. undertakes
the direct management of LAWSON stores mainly in Kagoshima prefecture. SCI, Inc. is a functional subsidiarythat comprehensively manages the business process from procurement to sales, improving the efficiency of theentire process.

15

Regarding Seijo Ishii Business, SEIJO ISHII CO., LTD. operates SEIJO ISHII supermarkets.
Regarding Entertainment-related Business, Lawson Entertainment, Inc. conducts the management and salesof concert tickets at LAWSON stores and others, music and video software products at HMV stores and others.
In addition, Lawson United Cinemas, Inc. operates multiplex movie theatres.
Regarding Financial Services Business, Lawson Bank, Inc. operates a banking business.
Regarding Overseas Business, the operating company in each region develops LAWSON stores in the People’s
Republic of China, Thailand, the Philippines, and the United States of America (Hawaii).
2. Information on reportable segments
Methods of accounting for reportable segments are described in note “Material Accounting Policy Information”
and are consistent with the accounting policies of the Group.
The Group’s reportable segments are as follows. Segment profit represents operating gross profit less selling,
general and administrative expenses. Intersegment revenues and transactions are based on market prices.
Previous 1st Quarter (From March 1, 2023 to May 31, 2023)(Millions of yen)
Reportable segment
Others(Note)

Domestic
Convenience
Store
Business

Seijo Ishii
Business

66,015

Total

Adjustments

Total

Entertainmentrelated Business

Financial
Services
Business

Overseas
Business

215

–

–

715

–

66,946–

66,946

21,52927,552

17,144–

20,331–

86,557–86,557

84,646

11

3,172

8,064

6,470

476

102,841–

102,841

7,660

4

–

–

89

–

7,754

–

7,754

1. Revenue fromexternalcustomers

179,851

27,784

20,316

8,064

27,607476

264,100–

264,100

2. Intersegment
revenue ortransfer

1,603

–

669

803

–

169

3,244

(3,244)–

Total

181,455

27,784

20,985

8,867

27,607645

267,345(3,244)

264,100

Segment profit

19,967

3,242

1,927

892

212

3

26,246–

26,246

Revenue fromcontractswith customers
Income from
franchised stores
Net sales from
Companyoperated stores
Other
Other revenue
Revenue fromexternal customers(Note) The business segments within the “Others” category that do not fall under the main reportable segments
include the Consulting Business, etc.

16Current 1st Quarter (From March 1, 2024 to May 31, 2024)(Millions of yen)
Reportable segment
Others(Note)

Domestic
Convenience
Store
Business

Seijo Ishii
Business

71,411

Total

Adjustments

Total

Entertainmentrelated Business

Financial
Services
Business

Overseas
Business

247

–

–

405

–

72,065–72,065

21,252

29,983

16,623–22,164–90,024–90,024

88,837

14

3,466

8,484

8,280

516

109,600–

109,600

7,658

2

9

–

81

–

7,751

–

7,751

1. Revenue fromexternalcustomers

189,159

30,24820,0998,484

30,931

516

279,441–

279,441

2. Intersegment
revenue ortransfer

1,741

–

622

806

–

190

3,360

(3,360)–Total

190,901

30,24820,7229,290

30,931

707

282,802(3,360)279,441

Segment profit

19,292

3,625

2,264

337

576

31

26,128–26,128

Revenue fromcontractswith customers
Income from
franchised stores
Net sales from
Companyoperated stores
Other
Other revenue
Revenue fromexternal customers(Note) The business segments within the “Others” category that do not fall under the main reportable segments
include the Consulting Business, etc.
(Additional Information)(Progress toward delisting due to share consolidation)
The Company resolved at the Board of Directors’ meeting held on May 21, 2024 to submit to theextraordinary shareholders’ meeting held on July 3, 2024, a proposal on share consolidation which is
50,038,357 shares of the Company’s common stock (the “Company Shares”) into one share (the “Share
Consolidation”). The proposal for the Share Consolidation was approved at the extraordinary shareholders’meeting held on July 3, 2024 as originally proposed.
As a result of the Share Consolidation, the Company Shares are scheduled to be delisted on July 24, 2024
(the last trading date will be July 23, 2024) after the prescribed procedures in accordance with the delisting
standards of the Tokyo Stock Exchange, Inc.
The schedule for the Share Consolidation is as follows:(1) Last trading date of Company Shares: July 23, 2024 (Tuesday) (scheduled)(2) Date of delisting of Company Shares: July 24, 2024 (Wednesday) (scheduled)(3) Effective date of share consolidation: July 26, 2024 (Friday) (scheduled)17