Corporate Citizenship Report
2010

Happiness and Harmony
in Our Community

Corporate Philosophy
Happiness and Harmony in Our Community
Code of Conduct
Acting with utmost consideration for others
Challenging with innovative ideas and actions
Having a strong will to attain the objectives●From the Editorial TeamLAWSON cares deeply about the health of our planet and local community life, and endeavors to contribute to both society and the environment in various
ways based on its corporate philosophy of working for “happiness and harmony in our community.” This report — our 12th — presents our initiatives forworking with and for society and the environment in three key parts focusing respectively on the environment, local communities, and people. Each partcontains special features and other information on the ways in which we are striving to help create a sustainable society, and on our relationship with ourcustomers, franchise owners and store crews, business partners and society as a whole, laid out in what we hope is an easy readable format. We sincerely
hope that this report will help you to understand the ways in which we are working for the betterment of our society.

1CONTENTS

Corporate Philosophy and Code of Conduct
LAWSON Stores: Environmental Protection
and Corporate Citizenship Activities
Our Commitment

01
03
05

Caring for Our Planet
We are committed to addressing environmental issues
so as to leave the Earth in ahealthy state for future
generations.

Special Feature: Leaving the Earth in a Healthy State
for Future Generations
The LAWSON Group's Position on the Environment
Measures to Reduce Energy Consumption
Working with Our Customers for the Environment
Making Good Use of Resources
Boosting Recycling and Reducing Waste
Group Company Environmental Initiatives
LAWSON Environmental Activities Report

07
12
13
15
18
19
21
22

Special Feature: Working with Society
LAWSON Group Initiatives for the Community
Together with the Local Community
Serving as One of Society's Lifelines
Aiming to Become a Vital Part of Neighborhood Life
Building Ties with the Local Community
For the Next Generation
Supporting Citizenship Activities/Overseas Assistance

24
28
29
30
31
33
34
35

Keeping Customers Satisfied
Providing Safe, Healthy Products
Together with Franchise Owners and Store Crews
Nurturing Employee Enthusiasm
Together with Our Business Partners and Shareholders

36
38
41
44
47

LAWSON’s Organization
Corporate Data
Third Party Comment
History of the LAWSON Group

48
52
53
54

Enriching theCommunity
We seek to create stores that
add to the happiness andharmony of local communities.

Motivating People
We strive for broader andcloser communication with
our franchise owners, store
crews and all other membersof the LAWSON family.

About LAWSON● Scope of Report
Scope: This report focuses on LAWSON as a parent company, its franchised stores and specific affiliated companies, and includes examples of
the cooperative efforts of our business partners involved in logistics, manufacture of food products and waste management.
Period: The primary period covered by this report is fiscal 2009 (March 1, 2009 through February 28, 2010), but information on activities fromprevious fiscal years and fiscal 2010 has been included where appropriate.
Date of Issue: October 2010 (previous report: August 2009; next report: planned for July 2011)
Reference Guidelines: Environmental Reporting Guidelines (fiscal 2007 version, Japan’s Ministry of the Environment)

2

LAWSON Stores: Environmental Protection
LAWSON works with others in society to implement initiatives aimed at protecting the environment and contributing to society.
These efforts are evident in many different areas of store operation.
Local produce for local andnationwide consumption P.29
Plant-derived packaging P.18

Food recycling (into animal feed and compost) P.19
Used cooking oil recycling
Reducing plastic shopping bag anddisposable chopstick use P.16
LAWSON Green Fund P.8/ Disaster relief funds P.30
CO2 Offset program P.15
Organ donor cards P.32
Ponta points program
Environment andSocial Contribution course P.35

Clean boxes P.20

Electric vehicles P.14

3

and Corporate Citizenship Activities
Dynamic order terminal rechargeable battery recycling P.18
Uniform recycling P.18

Energy-efficient equipment P.13

Accessibility P.32

LED use for shop
signs and in-store
lighting P.13

Neighborhood cleanup activities P.33

Multi-drop deliveries P.14

4

Eco tires P.14

Our Commitment

Serving Society through Our Business, andWorking for Happiness and Harmony
in Our Community
Why Enterprises Exist
What exactly are enterprises for? This was the theme ofa preconference workshop in which I participated in
November 2009 at the World Economic Forum Annual
Meeting held every year in Davos, Switzerland.
The excessive pursuit of profit led to the collapse of
Lehman Brothers and a global financial downturn fromwhich countries throughout the world are still
struggling to recover. With this failure of American-style
capitalism, we find ourselves in a period of transition
away from the all-out pursuit of profit to a stance thatputs greater priority on working with and for society.
Given these circumstances, reexamining the raisond'être of enterprises from the ground up struck me as
being a particularly meaningful exercise. I am of theopinion that it is society that gives enterprises their
meaning, and that a company will prosper if people are
better off for its presence. I believe that we are facing a
new era of capitalism in which no enterprise can survive
unless it serves society.
The LAWSON Group celebrated its 35th birthday this↘

year. Under our corporate philosophy of working forhappiness and harmony in our community, we havestriven to serve society through our business by
supplying fresh, safe food products and providing
convenient new services, and it is precisely because ofthis focus on serving society that we have generated a
profit and succeeded in keeping our business going. As
we go about our business, we will continue to ask
ourselves whether we are serving society and ourcustomers, and ponder the kind of enterprise we want
to be in ten or twenty years' time.
What role can we play, for example, in helping toprotect the health of the people living in the local
communities in which we operate as Japan's population
ages? We're currently experimenting with a videophonesystem in the pharmaceutical product sales section ofsome of our stores that customers can use to consult
directly with pharmacists. The system will cost us, but I
feel that it's something that we need to do in an
increasingly aged society.

↗

Towards the Environmental Economy↘

As capitalism enters a phase of transition, we are seeing
a major shift in the global paradigm away fromunlimited growth and towards the environmental
economy. Enterprises will no longer be allowed to burnmasses of fossil fuels and emit CO2 in the pursuit ofprofit, and will instead be expected to pool theirresources to leave the Earth in a healthy state for future
generations. More specifically, we will see a shift awayfrom a fossil fuel-driven economy to one based on solar
and other renewable sources of energy. Electricvehicles (EVs) will be a major driving force behind thisshift. To help promote the spread of EVs, in fiscal 2009
we started to equip all of our supervisors with suchvehicles for doing the rounds of stores they are ↗

5

responsible for. We are also aiming to equip more andmore stores with battery chargers to help build theinfrastructure that will enable customers to switch to
EVs with confidence.
Other initiatives include the installation of LED
lighting and other cutting edge energy-saving
technology in our stores, and joint research with the
University of Tokyo to develop even moreenergy-efficient stores. We hope that these efforts will
enable us to achieve our self-imposed target of
reducing CO2 emissions based on electricity
consumption per store to 10 percent below the fiscal
2006 level by fiscal 2012.

New LAWSON Group Environmental Policy↘

seek to provide our customers with ideas forcontributing to the environment through their everyday
lives, and to work with them to protect the environmentand create a low-impact, low carbon society.
These efforts are underpinned by our strong desire
to work for happiness and harmony in our community.
As one way of better achieving this wish, we drew up a
new LAWSON Group Environmental Policy in June ofthis year. Based on this policy, we will continue ourefforts to consider the environment in all aspects of ourbusiness and to work for the local communities in which
we operate.

We provide our customers with opportunities toparticipate in protecting the environment as they shop
through our Bring Your Own program to reduce the useof plastic shopping bags and disposable chopsticks byencouraging customers to use their own bags andchopsticks, our CO2 Offset program to help customers
reduce their own CO2 emissions, and the LAWSONGreen Fund to support forest improvement activities.
Preserving biodiversity is a particularly important issue,
and through the LAWSON Green Fund, we work withour customers to help conserve forest for future
generations. As an operator of convenience stores thathave become an integral part of local communities, we ↗

Balancing Oriental Business Philosophy with Western Capitalism
One thing that cannot be overlooked in implementing
environmental management is economic practicality.
Enterprises cannot survive without generating a profit,
and need to take a business-oriented approach toenvironmental issues and ensure that they tackle themin a way that does not endanger the continuity of theirbusiness operations.
At the same time, however, enterprises need toexercise discipline and put priority on working with andfor society rather than devoting themselves singlemindedly to the pursuit of profit. Eiichi Shibusawa, who
is known as the father of Japanese-style capitalism,
famously said that "The abacus should go hand in handwith the Analects of Confucius." Shibusawa was, inother words, espousing the importance to business of asense of ethics in the mold of the Analects, and theneed for enterprises to work with and for society. The
sustainable enterprise is one that generates profits
through satisfying its customers and becomes anindispensable part of society by contributing to thatsociety through its business.
We are still facing a tough business climate, but wecan grow only by setting our sights on the next innovation frontier and committing ourselves to the development that will shape our future. Taking Shibusawa's
abacus and Analects adage to heart, we at the LAWSONGroup will strive to contribute to the happiness ofcustomers in the local communities in which we operate
through leveraging technology to boost our role as a
new infrastructural component of society.

Takeshi Niinami
President and CEO, LAWSON, INC.
6

Special
FeatureLeaving the Earth in a Healthy State
for Future Generations

The New LAWSON Group Environmental Policy
Our Environmental Policy constitutes the basis and driving

The new Environmental Policy states our commitment toforce for our environmental protection activities. We

considering the environment in all aspects of our business

reviewed our previous LAWSON Environmental Policy fromand to working with and for the local communities in which

the perspective of protecting biodiversity and mitigating

we operate. By applying this Environmental Policy to ourglobal warming, and in June 2010 adopted a new LAWSON

business activities, we will seek to help leave the Earth in aGroup Environmental Policy to demonstrate our commitment

healthy state for future generations.

to tackling environmental issues on a group-wide basis.

The LAWSON Group Environmental Policy
Basic Commitment
The LAWSON Group is committed to leaving a rich world for future generations.
We will consider the environment in every aspect of our business activities and strive to achievesustainable development and coexistence with local communities.

Policies
1. Helping build a low-carbon society
To help combat global warming, we will work in our business activities toconserve energy and resources, and to reduce waste.

2. Considerations in the development of products and services
We will give proper consideration to the effect on the natural environment andlocal communities at every stage in the cycle of products and services, fromprocurement of raw materials, through to sales and disposal.

3. Active participation in social contribution activities
We will actively participate in social contribution activities, getting involved asa member of local communities in efforts to promote greenery andbeautification of local areas, and other initiatives.

4. Continuous improvements
We will strive to preserve the environment by utilizing our environmental
management systems to make continuous improvements, which will bemeasured against objectives and targets.

5. Observing laws and regulations
We will observe laws and internal rules relating to environmental preservation activities.

6. Promotion of communication
We will foster greater awareness about environmental preservation by promoting
education, and will also promote communication with stakeholders.

7Leaving the Earth in a Healthy
State for Future Generations

SpecialFeatureWhat is Biodiversity?
The Earth is made up of grasslands, forests, oceans andA healthy natural environment marked by closelyinterwoven relationships between a diversity of life forms

many other kinds of habitat that are home to over 10 million
species interacting in myriad ways to create ecosystems.
Nature is shaped by many different relationships between

Rainwater storage

Prevention ofsoil runoff

organisms, from the relationship between herbivores andthe carnivores that prey on them to symbiotic relationships

Timberresources

CO2 absorption

existing between, for example, bees that collect nectar fromflowers, and the plants whose flowers are pollinated by thosebees. We human beings too depend on the bounty of the

Habitat and foodfor animals

Earth for food, water, timber and other resources essential
to our everyday lives.

Supply ofclean water

The diversity of life forms interacting with and depending

Cultivation offood

on each other is known as biodiversity. In addition to species
biodiversity, there is also ecological and genetic biodiversity,and the way in which all types of biodiversity are declining as

Nurturing of plankton,
fish, seaweed andother marine life forms

a result of explosive human population growth and concomitant urban development, overexploitation of resources,
global warming and other consequences of human activity
has become a major problem.

Protecting Biodiversity
To protect biodiversity, the LAWSON Group conducts all of

These donations have supported a great many forest im-its business activities from procurement of raw materials toprovement projects undertaken by NPOs both in Japan andsale of products and disposal of waste in a way thatoverseas through the National Land Afforestation Promotion

minimizes impact on the environment and local communities.

Organization. Franchise owners, store crews and employees

We focus in particular on forest improvement activities.

have also participated in some of these projects and played aForests absorb and store CO2, prevent landslides, supply

part in the protection of biodiversity. As of the end ofclean water, provide habitat and food for animal life, andFebruary 2010, we have also supported 199 school greening

serve in many other ways too as

projects nationwide.

indispensable habitat for preserving● LAWSON Green Fund Activities Overview

biodiversity. We launched the LAWSON

Donations3.01 billion yen
2,298 locations in
Projects supported
Japan and overseas
Area covered*
5,704 hectares
No. of trees in improved forest stands* approx. 14.25 million

Green Fund in 1992 to help ensure thesurvival of precious forest resources,and donations by customers along with
LAWSON headquarters donations over

(From September 1992 to the end of February 2010)
Note: Area and number of trees are calculated from LAWSON Green Fund donation
totals and past results of LAWSON Green Fund activities.

the past 19 years amounted to 3.01
billion yen as of the end of February
2010.

●LAWSON Green Fund Donations
50

16.7

40
30
20
10
0

LAWSON Green Fund
27.5

(10 million yen)

2.4
1992

9.6 7.9
1993

1994

9.8
1995

10.7
1996

15.4
1997

16.6
1998

Disaster Relief Fund

6.4 2.3 4.0 4.5 3.6
4.5 9.3 7.7 4.5 0.7
23.2
23.8
23.3
19.2
19.0
19.6
17.7
17.5
25.4
15.4
24.7
1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

(FY)
Note: LAWSON Green Fund collection boxes are replaced for a period by Disaster Relief Fund collection boxes in the event of a major disaster (see P.30 for information about Disaster Relief Funds).

8

Leaving the Earth in a Healthy
State for Future Generations

LAWSON Flower and Greenery Day
Out of a wish to see local communities bedecked in flowers
and greenery, we have designated the third Sunday in May as“LAWSON Flower and Greenery Day.” On this day, we handout packets of seeds to customers at LAWSON Group storesthroughout the country. In 2010 we offered customers achoice of sunflower or morning glory seeds, handing packets
out to approximately 1.05 million customers at 9,790 stores

Mt. Fuji forest watching event

nationwide.
Since 2000, we have also used this day to restore the rich

Packets of seeds
handed out tocustomers

ecosystem of a 34 hectare tract of typhoon-damaged foreston the slopes of Mt. Fuji, Japan's most famous landmark, byusing the LAWSON Green Fund to support tree-planting andother forest improvement activities by NPOs and others.

Forest improvement activity

Participating in the Umi-no-Mori (Sea Forest) Project to Transform Reclaimed Landin Tokyo Bay into a Beautiful Forest
The LAWSON Group has been
participating since 2009 in the

Impressions of a community greening
project participant

Umi-no-Mori (Sea Forest) project to transform reclaimed land

“I'd like customers to know how their
donations are being used.”made from waste and surplus soilin Tokyo Bay into a beautiful How the forest will look when completed

Yukari Shibata
Store Manager,
LAWSON Hayama
Kamiyamaguchi Store

forest through donations by the public and the planting of
saplings by volunteers. Under the project, about 88 hectaresof the Inner Central Breakwater Reclamation Area are being
planted with 480,000 Japanese Chinquapin (Castanopsis
sieboldii), tabunoki (Machilus thunbergii), enoki nettle(Flammulina veluptipes) and other species.

I participated in the
Umi-no-Mori and Mt.

We endorsed this project, and used our LAWSON Green

Fuji projects for the first

Fund as a vehicle for collecting donations for it at about 900

time this year. Plantingof our Tokyo stores from June to the end of August in 2009.

trees and learning about forests in places that I

We collected a total of 6.26 million yen — enough tocouldn't normally visit was an unusual experiencepurchase 4,500 saplings — for the project, and on March 28,

that I thoroughly enjoyed. The more I learned, the2010, about 200 franchise owners, headquarters employees

more I wanted to take part again.
Recently I was surprised to find out that myand their families planted the saplings.

daughter's elementary school pruned its cherry

We will continue to support this project, which is turninga desolate landscape into atrees and planted saplings with support from thebeautiful forest inhabited by

LAWSON Green Fund. Collecting donations from all

insects,otherof our shops really does make all sorts of activities

small animals. The forest will

possible. I'd like customers to know more about how

also draw winds from thetheir donations are being used, and I want to see ifsea

I too can do something to let them know.

birds

and

and

channelthemtoward the city.

9

SpecialFeatureLeaving the Earth in a Healthy
State for Future Generations

SpecialFeatureTwo Groups Awarded Prize in Contest for Corporate Activities on Biodiversity
We supported this contest to inform a wider audience
about the greening projects supported by the LAWSONGreen Fund, and to raise awareness about the importance ofprotecting biodiversity through forest improvement. Using
funds from the LAWSON Green Fund, we selected twogroups whose activities were particularly outstanding as
recipients of the LAWSONGreen Fund Prize.
We will continue tosupportthefurther
expansion of greening
and forest improvement
activities both in Japan
Award Ceremony of the Contest forand overseas.

The LAWSON Group supported the first Contest for
Corporate Activities on Biodiversity held in Minato-ku, Tokyoin June 2010 by presenting a LAWSON Green Fund Prize to
two organizations in recognition of their activities. This
contest was newly established as one of the projects of the
National Commission of International Year of Biodiversity togive publicity to enterprises and volunteer organizations
involved in practical activities for the protection of
biodiversity or sustainable use of resources and so forth, andto pay recognition to particularly outstanding activities.

Corporate Activities on Biodiversity

Prizewinner Comment

LAWSON Green Fund Prize“We want to leave a rich naturalenvironment for future generations.”

Funded Projects Category● Tsukuba Environment Forum (NPO)Mt. Tsukuba/Kasumigaura Watershed Forest
Project

Hitomi Tanaka, Representative Director,
Tsukuba Environment ForumWe at the Tsukuba Environment Forum see Mt.
Tsukuba and the surrounding lowland woodlands ascomprising a single natural environment and seek toprotect that environment as a whole under our
motto of "Coexistence between Nature and People."
In addition to growing paddy rice and tidying

satoyama(exploited

woodlandsaroundrural

communities), we also put priority on environmental
education such as field-based nature classes forsmall children and their mothers to learn first-handabout the workings of nature.

School Greening Category

We have received financial assistance from the● Shiga Prefectural Kora Special Needs School

LAWSON Green Fund since 2007, and we've also

Fruit Tree-Lined Pathbeen much encouraged by the participation of
franchiseownersand employees. Our
mission is to preserve biodiversity for
future generations,and since this prize
sharesthesame

objective, we arevery grateful for .

10Participation in Greening
Projects in Fiscal 2009

Projects participated in

Hokkaido Region
Hokkaido

97
ToyamaToyamaPrefecture

Okubo Elementary School

Takaoka

Coastal Area Greening and Coastal
Improvement Project

Mt. Moiwa Forest Restoration
Project

Takaoka

Futatsuka Elementary School

SapporoMori no Gakko Genki no Mori Forest Ishikawa

Tsubata

Woodland Resource Utilization
Based Forest Improvement
Through Forest Thinnings
Volunteer Project

Project

Taiyu Elementary School

MuroranMottainai Kids Muroran
Kodomo-kai 50th Anniversary Tree

Planting Project

KushiroHokkaido Kushiro Special Needs
SchoolObihiroMorinosato Elementary School

Sunagawa “One Tree Per Person” Ishikari

River Basin 3 Million Tree Planting
Project

Prefecture

Tsubata
Fukui
Fukui
Prefecture

Haginodai Elementary School
Ijiranosato Restoration Historic
Roads Forest Project

Fukui

Houei Elementary School

Ono

Kamisho Elementary School

Yamanashi Koshu
Prefecture
Fujikawaguchiko

Yamato Elementary School

NaganoAzuminoPrefecture

Woodland Treasure Future
Inheritance Project

Kawaguchiko Shizen Gakko Forest
Trekking and Forest Experience

Nanae

Nanae Beautiful Forest Project

Mori

Genki no Mori Forest Project

Otobe

Koubun Junior High School
Gifu
Ogaki
Otobe Forest, River and Sea
Beautification Project Tree Planting Prefecture Takayama Miya Elementary School
Day
Pilot Project Fostering Leaders to
Gujo
Nobori/Tanken no Mori Forest
Improve Plantation Forests
Improvement ProjectThrough Creation of Forest
Thinnings Products

YoichiTohoku Region
Aomori
AomoriPrefecture

Fukaura

Iwate
Morioka
Prefecture

Iwate

Okunai Elementary School

Omagoshi Area Pine Sawyer Beetle
Eradication Project Tree Planting
Festival
Aichi
Seto
Prefecture
School for the Disabled Affiliatedwith the Faculty of Education,
Iwate University
Ikkatai Elementary School
Akita Tree Planting Day

Kitaakita

ShizuokaHamamatsu Seibu Special Needs School
Prefecture Fujinomiya Mt. Fuji LAWSON Forest Project

Kakegawa Tokinosu Forest Restoration

Mottainai Kids Afforestation Project

Akita
Akita
Prefecture

TsukubaGunma
NumataPrefecture

Minakami
Saitama
Hanno
Prefecture

Sanage Forest Volunteer Project
Ogakie Higashi Elementary School

Chita

Souri Elementary School

Mie
Tsu
Prefecture

Kawai Elementary School

Nabari

Suzurandai Elementary School

Inabe

Project for Effective Utilization ofForest Thinnings and Materials for
Abandoned Forest Restoration

Takanosu Chuo Elementary School

Kanto Region
Ibaraki
Hitachiota
Prefecture

Project

KariyaMiyagiIshinomaki Coexisting with Wildlife Forest
Prefecture
Conservation ProjectTokyo

School greening

SapporoAsahikawa

Zuiryu Elementary School
Mt. Tsukuba/Kasumigaura
Watershed Forest Project
Tambara Kogen Beech Tree
Restoration Forest Improvement
Volunteer Project
Momono Elementary School
Agano Forest Restoration Project

Kinki Region
Shiga
Yasu
Prefecture

Kora Special Needs School

Takatsuki

Nanasato Elementary School

Azuma Elementary School

IseharaIshida Elementary School

HadanoThousand Year Forest of Life
Project Tree Planting Festival

Atsugi

Sanda Elementary School

Nakai

Bamboo Forest Improvement andShiitake Mushroom Growing Log
Experience

Chiba
Sodegaura
Prefecture

Otsuki River Basin Woodland
Restoration Project

Chubu Region
Niigata
Niigata
Prefecture

Tayuhama Elementary School

Joyo City Cultural Center Tree
Planting Project

Oyamazaki Oyamazaki Elementary School
Nara
YamatoPrefecture koriyama

Uda

Osaka
Osaka
Takao Forest Tree Planting Festival Prefecture
HachiojiTachikawa Matsunaka Elementary School
Suita

Kanagawa Yokohama
Prefecture

Forest Volunteer Project

Kora

Kyoto
Joyo
Prefecture

KatanoParticipants

Forest improvement 47

2nd Manyo no Mori Tree Planting
Festival933

50

peopleYamaYamaguchi Hirakawa Elementary Schoolguchi
Yamaguchi Hikami Sanno Shrine Ruins
Prefecture
Improvement Project

Shikoku Region
Tokushima KomatsuPrefecture shima
Yoshinogawa

Shibata Elementary School
Kamojima School for Special Needs
Education

Ehime
Matsuyama Hiura Elementary School
Prefecture
Imabari Area Residents and Future
Imabari
Leaders Tonda River Watershed
Forest Project

Iyo

Midori Elementary School

Kochi
Kochi
Prefecture

Kochi Forest Volunteer Festival

Tosa

Tosacho Elementary School

Ino

Thinnings Utilization Forest andMountain Village Restoration
Project

Kyushu Region
Fukuoka
Kitakyushu Kitakokura Elementary School
Prefecture Kitakyushu Ikawa Elementary School
Kitakyushu Otani Elementary School
Nagasaki
SaseboPrefecture

Sasebo Hundred Year Forest Tree
Planting Festival

HiradoTabira Higashi Elementary School

Matsuura

Osaki Elementary School

Iki

Ishida Elementary School

MiyazakiNobeoka
Prefecture

Himeshara Joint Forest Tree
Planting Festival

Kumamoto Asagiri
Prefecture

Global Warming Mitigation Forest
Improvement Project

Kagoshima Kagoshima Sakurajima Donguri Korokoro Tree
Planting Festival
Prefecture

Minamikyushu

Forest Thinning for Watershed
Forest Protection Global Warming
Mitigation Project

Isa

Fresh Water Conservation Forest
Project

Kamou

Beautiful Hometown Forest Project

Minamiosumi

Dai-ichi Sata Junior High School

Okinawa
Nanjo
Prefecture

Kunigami

Sashiki Elementary School
Shurijo Koji no Mori Forestation
Project

Utano Elementary School
Hirano Elementary School attached
to Osaka Kyoiku University
Suita Dai-ni Elementary School
Woodland Bamboo Forest
Improvement and Tree Planting

Hyogo
Shinonsen Okuhatta Elementary School
Prefecture

Chugoku Region
ShimaneMatsuePrefecture

Unnan

Woodland Restoration and Local
Energy Production and Use Project
Nishi Elementary School

Okayama Okayama
Prefecture

Saidaiji Elementary School

Hiroshima Fuchu
Prefecture

Ashida River Watershed Forest
Project and Midori no Kyoshitsu
Local Afforestation Project

AkaiwaEco-Camp 200911

Forest Volunteer Project (Yasu, Shiga Prefecture)

Caring for
Our Planet

The LAWSON Group’s Position on the Environment
The LAWSON Group positions the creation of a low carbon society as a major management priority,
and actively pursues policies to reduce CO2 emissions.

Towards a Low Carbon Society
LAWSON's Environmental Management
LAWSON is taking two key approaches to environmental management. One of those● LAWSON's Environmental Management

approaches is the setting and achievement of voluntary targets for reducing CO2
emissions from our business activities. The other is the provision of services that will help
Creating a low
carbon society

our customers to reduce CO2 emissions. Through these two approaches, we are working
as one with our customers, franchise owners and store crews to help create a low carbon
society.
percent per store over fiscal 2006 levels by fiscal 2012 based on electricity consumption.
This amounts to a yearly reduction of 60,000 tons in emissions compared with fiscal
2006.

Working withcustomers for theenvironment

Reducing our own
CO2 emissions

The voluntary target that we set ourselves in 2008 was to reduce CO2 emissions by 10

Deploying energy-efficientequipment and othermeasures

Providing customers with
opportunities to protect
the environment throughshopping andeveryday life

Using ISO14001 Processes to Monitor CO2 Emissions
To achieve our environmental targets, we use an ISO14001
environmental management system to monitor progress and● Fiscal 2009 CO2 Emissions
Breakdown

implement a Plan-Do-Check-Act (PDCA) cycle.

Gasoline(company vehicles) 0.7％
Diesel(delivery trucks) 9.2％
Natural gas (delivery trucks) 0.1％
Plastic and other waste(incineration) 2.4％

Company sections and group companies strive to reduce
environmental impacts by setting their own targets for energy● CO2 Emissions Voluntary Reduction Target
Reduce CO2 emissions by 10 percent per store
over fiscal 2006 levels
by fiscal 2012
based on electricity consumption.

Reaching the target

Water 0.3％

saving and other environmental objectives. In addition to annual

Total

in-house environmental audits, we use the auditing services of760,900

the Japan Quality Assurance Organization to monitor thet-CO2

Utilize environmental management
system to monitor and drive progress.

Electricity*
87.3％

progress status of our initiatives.

Note: CO2 emissions from electricity
consumption were calculated based on
fiscal 2008's emission coefficient of 4.0
t-CO2/10,000 kWh.

12

Act

Check

ISO14001
environmental
management
systemPlan

Do

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleMeasures to Reduce Energy Consumption
LAWSON is building energy-efficient stores to reduce electricity consumptionthat accounts for most of its CO2 emissions.

Building Energy-Efficient Stores
Per-store CO2 emissions
based on electricity
consumption

Fiscal 2006 result

70.6 tFiscal 2009 result

Fiscal 2012 target

69.8 tMeasures for Reducing Electricity Consumption
Electricity consumption by our stores accounts for 87.3% of our total annual CO2 emissions of

63.5 t● Per-Store CO2 Emissions Based on
Electricity Consumption*
(t)

76.0

about 760,000 t-CO2. We are deploying the latest energy-efficient equipment to reduce theelectricity consumed by freezers, refrigerators, air conditioners and lighting. The 2,291 stores
opened since July 2004 have all been fitted with Energy Saver Pack combined refrigeration and air

70.6

71.4

(target)

71.2

72.0

69.8

68.0

conditioning systems, and from June 2009, LEDs have been used for the signage and in-store
lighting of newly opened stores, with 294 stores fitted with LED signage and 274 with LED in-store
lighting as of the end of February 2010. The use of LEDs reduces lighting-related electricity
consumption by 35% compared with conventional fluorescent lighting.

63.5
(10%
reductionfrom 2006
levels)

64.0
60.0
2006

2007

2008

2009

2012
(FY)

Joint Research with University of Tokyo on CO2 Reduction
We are conducting joint research with the Yashiro Lab in the University of Tokyo's Institute of

Note: Fiscal 2006's emission coefficient of
3.68 t-CO2/10,000 kWh was used tocompare CO2 emissions from electricity
consumption.

Industrial Science on reducing store CO2 emissions. Under the Yashiro Lab's guidance, Woodnote
Corporation has developed an advanced automatic energy monitoring and control system.
Deploying this system in our stores enables the implementation of comprehensive measures thatconsider impacts from outside buildings as well as store equipment and operational improvements.
We started field-testing the system in June 2008, expanding the project in July 2009 to conduct
tests in eight stores in differing environments nationwide. We will consider further deployment in
LED lighting

other stores based on the results of these tests.

Lithium-Ion Battery System Used to Store Electricity at New Low-CO2 Emission Pilot StoreIn October 2008, we opened a pilot store, the Kure Hiro Koen Store, in the city of Kure in Hiroshima
Prefecture that is designed to reduce CO2 emissions and other environmental impacts. We are currently
running tests on the use of solar, wind and other renewable energy, and also use of rainwater for cooling
purposes. We also partnered with Daiwa House Industry Co., Ltd., to reconstruct the Matsuyama
Higashi Ishii 6-Chome Store in Matsuyama City, Ehime Prefecture, as a next-generation low-CO2 pilot
store that opened in June 2010. In addition to a solar power system that supplies electricity for in-store

The advanced automatic energy monitoring
and control system

LED lighting, checkout tills and other equipment, the store also uses a lithium-ion battery system to store
electricity for more efficient use. This battery system can also serve as an emergency power supply inthe event of power outages caused by earthquakes or other events.
We plan to expand the number of such pilot stores to further study CO2 emission reduction benefits.
Solar power system

Lithium-ion battery system

13

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleThe LAWSON Group operates a nationwide logistics network to ensure the delivery ofsafe and healthy products to its stores in prime condition.
We are doing our utmost to boost the efficiency of this network and reduce CO2 emissions
through the use of eco tires and other measures.

Reducing CO2 Emissions through Improving Logistics Efficiency and Using Eco Tires
Delivery truck
CO2 emissions per
store(compared with fiscal 2007)

Fiscal 2009 target

4.0 %Fiscal 2009 result

reduction

10.9 %

Fiscal 2010 target

reduction

15.0 %

reduction

Reduction of Delivery Truck CO2 Emissions
We are reducing the number of deliveries to our stores through implementing multi-drop delivery
and reviewing delivery frequency and other aspects of our logistics system. By using dual
partition, dual temperature management trucks that enable the simultaneous delivery of productswith different temperature requirements, and reworking deliveries of sundries, processed andfrozen foods and other improvements, we have succeeded in reducing average daily deliveries per
store from 16 in 1989 to 7.29 (excluding newspapers and cigarettes).
Starting in fiscal 2008, we have fitted eco tires to 767 delivery trucks to reduce fuelconsumption, and all delivery trucks carrying chilled products* are equipped with an operation
management system that monitors vehicle operation to promote efficient driving and discourage

Delivery trucks

engine idling during deliveries. We also curb idling and noise pollution through driver training, andendeavor to raise awareness of eco-driving by, for example, presenting letters of appreciation tocontractors who promote eco-driving.
Note: Chilled products are rice, dairy, dessert and other products that require temperature control.

Postal Business Collaboration (Joint Deliveries)
Under our comprehensive alliance with Japan Post Holdings Co., Ltd., we are conducting a jointdelivery experiment in Kochi Prefecture aimed at ensuring fuller loads and reducing CO2 emissions

Swallow Butsuryu Hamamatsu Co., Ltd. was presented with aletter of appreciation for outstanding performance in the 2009
Eco Drive Contest held by the Ministry of the Environment andEnvironmental Restoration and Conservation Agency

through making use of our nationwide networks to integrate logistics operations. In October 2009
we expanded this experiment to cover the whole of Kochi Prefecture and launched full operation.
We anticipate that transporting LAWSON products and mail together will enable a reduction ofdelivery numbers that translates into a total of 22% reduction in CO2 emissions compared withemissions before integration.

Deploying EVs as Company Cars
Our store supervisors use about 1,600 vehicles nationwide to cover their rounds. Since fiscal 2006
we have replaced the 1,200 of these vehicles that are not four-wheel-drive with hybrid cars andcars fitted with automatic idling prevention systems to reduce CO2 emissions.
In January 2009, we also started a pilot deployment of Mitsubishi Motors Corporation electricJapan Post delivery truck fitted with atemperature-controlled container to deliver productswith different temperature requirements

vehicles (EVs) for supervisor store visits to test running performance, recharge time and so forth.
Based on results showing these EVs to be suitable for use in large cities, we started introducing
them in August 2009, and as of the end of March 2010, we had deployed 40 EVs in Tokyo,
Kanagawa, Osaka and elsewhere. We have also started equipping the car parks of surrounding
stores with EV battery recharge points to help promote the spread of EVs. (As of March 31, 2010,
we had deployed 3 high-speed rechargers, 2 double-speed recharge stands, and 43 200V
sockets.)

Some stores are being fitted with EV recharging points.

14

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleWorking with Our Customers for the Environment
As part of our efforts to reduce greenhouse gas emissions, we are running a
CO2 Offset program to work with our customers to reduce CO2 emissions as
we strive to cut our own emissions through reducing store electricity consumption.

CO2 Offset Program
Fiscal 2008 result

Fiscal 2009 result

7,192 t

CO2 Offset program
results

Total

5,647 t12,839 t
Offset Products

LAWSON’s Approach to Reducing CO2 Emissions
In April 2008, LAWSON launched its CO2 Offset program as a means of enabling its customers toparticipate in environmental protection through their local convenience stores. Customers can
exchange Ponta multi-partner shopping points (see P.31 for details) for CO2 offsets, or purchase
CO2 offsets with cash using the Loppi multimedia terminals in our stores. We have also enlisted thecooperation of local authorities and manufacturers to sell beverages and sundries with attachedCO2 offsets.
As another initiative, we enable eco-points earned under the Japanese government's Green
Household Appliance Promotion Policy to be exchanged for LAWSON prepaid cards. We allocate 6
yen from each card to our CO2 Offset program, and donate the resulting certified emission
reductions (CERs) to the Japanese government's retirement account.

Coca-Cola (Japan) Co., Ltd.'s
Georgia Green Planet Café au Lait and Real Rescue

To further support the efforts of customers to reduce their CO2 emissions, we have also added
a simple household CO2 emissions calculation console to our website that anyone can use to checktheir household CO2 emissions.
As a result of these initiatives, total offsets purchased as of the end of February 2010
amounted to 12,839 t-CO2, with cumulative participants totaling 17 million. We will continue with
our efforts to draw attention to CO2 emission reduction and provide customers with opportunities
for easy participation in initiatives that contribute to the health of the Earth.
Note: CO2 offset is a mechanism for offsetting all or a portion of one’s own CO2 emissions by purchasing CO2
emissions reductions — emission credits — achieved in developing countries and other regions.

Suntory Beer & Spirits
Ltd.'s Kin-Mugi Stop Global
Warming

Hamakko-Doshi, adopted by
Yokohama City as its official
bottled water● How Our CO2 Offset Program Works
Offset CO2 that ourcustomers couldn't!

Customers

Participate in the CO2
offset program

Use of Loppi terminal
to apply for
CO2 offset transfer
Exchange of points
for CO2 offsets

LAWSON
CO2 offset purchase

Purchase of
products with
attached CO2
offsets

Notification of completion of transfer

Certificate (or image) sent** No certificates are sent for CO2 offset products

UN‐certified
CO2 reduction
projects
LAWSON prepaid card

Transfer of CO2 offsets

Helping to
reduce Japan’s CO2
emissions

Ministry of the Environment /Ministry of Economy, Trade and Industry
Japan’s quota account inventory (retirement account)

CO2 offsets generated
by CO2 reduction
projects in developing
countries (wind power,
biomass power
generation, etc.)

CO2 Offset Program Earns Minister of the Environment Award
for Global Warming Prevention Measures
On December 3, 2009, our CO2 Offset program received a 2009 Environment Minister's Award for Activities to Fight
Global Warming (practical countermeasures category).
We launched this campaign out of our desire, as a chain of neighborhood convenience stores, to work with ourcustomers to reduce CO2 emissions. A cumulative total of 17 million people have participated in the campaign sofar, offsetting 12,839 t-CO2 in the process. The Environment Minister's Award pays recognition to the part playedby our CO2 Offset program in preventing global warming.

15

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleAs a network of neighborhood convenience stores, LAWSON endeavors to work with its
customers to help create a sustainable society through suggesting ways in whichcustomers can help protect the environment through their everyday lives, such asencouraging them to use their own shopping bags and chopsticks.

"Bring Your Own" Program to Reduce Plastic Shopping Bag Use
Plastic shopping bag
use
per store

Fiscal 2008 result

Fiscal 2009 result

Fiscal 2010 target

651 kg

696 kgOver 2.4 Million "Bring Your Own" Bags Distributed
To reduce plastic shopping bag use, LAWSON created its Convenience Store Eco-Bag to best fit the boxedlunches and plastic bottles that are the most frequent items purchased. To get as many customers as
possible to use them, we started handing them out free at some stores from March 2007. We have also

585 kg●"Bring Your Own" Bag Distribution
Bags distributed at LAWSON stores and by Group companies

1,767,000

Bags made by cooperating companies and organizations

680,000

Total bags distributed

2,447,000

made the bag's specifications publicly available and have called on like-minded companies to make use(As of February 28, 2010)of them to promote more widespread use of these bags. In the three years that have passed since welaunched the program, we have distributed 2.45 million bags.

Aiming to Reduce Plastic Shopping Bag Use Per Store by 35%●Total Weight of Plastic Shopping Bags
Used Per Store

The total weight of plastic shopping bags used per store for fiscal 2009 was 27.7% lower than for fiscal

Total we igh t of plastic sh opping bags use dper stor e

2000. Plastic shopping bag handout* rate has also declined by about 10% since fiscal 2006 to 74.3%,
suggesting that our efforts—posters, in-store broadcasts and the practice of asking customers if they

Plastic shopp in g ba g h ando ut rate(k g)

1 ,2 00

8 4.0

need a bag, as well as the distribution of Bring Your Own bags—are paying off.
We plan to combine such measures to reduce plastic shopping bag use per store in fiscal 2010 by 35%
compared with fiscal 2000 (the shared target of the 11 convenience store chains belonging to Japan
Franchise Association).

81 .6

76 .9

(％)

100
74 .3
75

9 00
90 0
72 5

6 00

(target)

69 6

696

50

6 51

5 85
25

～
～

3 00

Note: Plastic shopping bag handout rate = plastic shopping bag number ordered ÷ customer number0

0

20 00 20 06 2 00 7 200 8 2 00 9 20 10(FY)

Reducing Plastic Shopping Bag Use with the Help of Customers●Total Weight of Plastic Shopping Bags
Used for All Stores

In all of our Hokkaido and some NATURAL LAWSON and other stores, we have since fiscal 2008 awarded
one point to Ponta cardholders foregoing plastic shopping bags at checkout. This resulted in a reduction of
9.4% in plastic shopping bag handout rate in our Hokkaido stores since commencing the program.

Total weight of plastic shopping bags used
Stores(t)

To address requests by universities and local authorities to reduce plastic shopping bag use, in our Kyoto
University, Miyagi Prefectural Office and Sendai City Hall stores, we switched to providing such bags only
when customers ask for them. By also selling our Bring Your Own bags, we have greatly reduced the(stores)

8,000
7,000
6,000

handout rate at these stores.

8,323

6,037

8,404

8,505

8,673

8,500
8,000
5,869

5,921
5,647

5,000

7,500

4,000

7,000
2006

2007

2008

2009
(FY)

Helping with Kyoto's Eco-Conveni Miyako Style Project
From June to November 2009, we helped operate the Eco-Conveni Miyako store opened in a corner of Kyoto City
Hall's ground floor. A joint project between the City of Kyoto and Kyoto 2R System Project, this pilot store
promoted eco-awareness by selling beverages to customers bringing their own bottles rather than selling bottled
drinks, and by not stocking plastic shopping bags and disposable chopsticks so as to encourage customers tobring their own shopping bags and chopsticks.

16

9,000

Caring for Our
元気に
PlanetEnriching theCommunity

Motivating
PeopleWorking with Our Customers for the Environment

Reducing Disposable Chopstick Use through "Bring Your Own" Program
Per-store

disposable chopstickuse

Fiscal 2007 result

Fiscal 2008 result

Fiscal 2009 result

56,636 sets 55,264 sets 52,767 sets

Creating a "Baseball Bat Forest" through "Bring Your Own" Chopstick Use
To reduce the use of disposable chopsticks, LAWSON started to promote Bring Your Own
chopsticks in April 2007, using chopsticks made from baseball bat factory ash wood discards withthe help of Mizuno Technics Corporation and Oak Village Co., Ltd.
As of February 28, 2010, about 40,000 sets of these Bring Your Own chopsticks had been
distributed through Loppi multimedia terminal sales, presentation to LAWSON employees and theGrowing a Baseball Bat Forest (Takayama City, Gifu Prefecture)

cooperation of companies supporting this initiative.
These Bring Your Own chopsticks are also helping to protect and grow a forest, since LAWSON
donates 100 yen to the nonprofit organization Donguri no Kai for each set distributed. The money
funds a "Baseball Bat Forest" being nurtured by Donguri no Kai for preserving ash, which grows
slowly and has not undergone significant replanting.

Bring Your Own chopsticks

Reducing Disposable Chopstick Use to Encourage Less Wastefulness●Per-Store Disposable Chopstick Use*(sets)LAWSON store crews ask customers whether they need disposable chopsticks or not to ensure no70,000chopsticks are handed out unnecessarily. We also use in-store broadcasts to encourage customers

60,000to help reduce disposable chopstick use.

50,000Through such measures, we aimed to reduce disposable chopstick use in fiscal 2009 by 20%

40,000compared with fiscal 2006. We managed to reduce per-store use by 11.4%, and overall use by

30,000weight by 8.6%. We will continue to ask customers before handing out chopsticks so as toencourage less wastefulness.

59,52556,63655,2642006
2007* Excluding NATURAL LAWSON

2008

52,7672009(FY)●Total Disposable Chopsticks Used for All

Using Japanese Timber to Preserve Forests

StoresWe help to protect Japan's forests and promote CO2 absorption by actively utilizing Japanese

Total disposable chopsticks used
Stores*figures in brackets are total weighttimber. Lunch boxes purchased at NATURAL LAWSON stores come with disposable chopsticks
made from Japanese cypress plantation forest thinnings from Yoshino in Nara Prefecture.
(Plantation forests are thinned to encourage growth of the best trees, a practice that also enhances
CO2 absorption.) The disposable chopsticks also carry advertisements, part of the revenue from(thousands of sets)
600,000
500,000

which is used to defray forest thinning costs. This system accordingly boosts the utilization of

400,000

forest thinnings and helps to protect Japan’s forests.

300,000

We also build wooden stores using local timber, and use paper made from Japanese forest

8,323
495,428(2,477 t)

8,458

8,404

475,969(2,380 t)

7,000
5,000

467,426(2,337 t)

452,793(2,264 t)

200,000

3,000
1,000

2006

thinnings for business reports and other headquarters publications.

(stores)
9,000

8,581

2007

* Excluding NATURAL LAWSON

2008

2009
(FY)

Chopsticks made from Japanese timber that are handed out
at NATURAL LAWSON stores

17

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleMaking Good Use of Resources
LAWSON makes every effort to contribute to environmental
protection and the building of a sustainable society throughthe wise use of finite resources.

Resource Conservation in Packaging and Uniforms
CO2 emissions
from the incineration of containers
and packaging(compared with fiscal 2006)

Fiscal 200812.6 ％

Fiscal 2009
reduction

23.0 ％

Fiscal 2010 target

8.0 ％reduction

reduction

Eco-Friendly Packaging
LAWSON uses raw materials which do not emit harmful chemical substances during packaging
production or use, in its packaging for boxed lunches and ready-made dishes. We also use
containers made from eco-friendly polylactic acid (PLA) for certain rice and ready-made dishes. PLA
is a biodegradable resin made from corn and other plants. Since the CO2 emissions from its
PLA salad container

incineration are offset by the CO2 absorbed when the corn and other materials are grown, PLA use
reduces CO2 emissions over the product lifecycle.
We endeavor to conserve packaging-related resources through the use of foam, thin packaging
and different shapes which reduce overall weight, while not compromising safety. Our efforts haveresulted in a 12.6% reduction in the weight per container and a reduction of about 1,900 tons
overall compared with fiscal 2006, which is equivalent to an approximately 9,600 ton (23.0%)
reduction in CO2 emissions from reduced incineration of packaging.

Recycling Rechargeable Batteries from Dynamic Order Terminals
In March 2007, LAWSON began recycling the rechargeable battery packs used in its dynamic order●Packaging Weight and CO2
EmissionsTotalweight(t)45,00040,00035,00030,00025,00020,00015,00010,0005,000
0CO2emissions

41,57639,43336,353

5.81

10,6852006

5.63

10,197

2007

5.08

9,791

8,772

2008

casings and recycling rare metals recovered from replaced cells.

100% Uniform Recycling
We replaced our old uniforms with new uniforms in autumn 2009, and recycled the old uniforms asa material. We have collected and recycled approximately 600,000 old uniforms (about 300,000
winter uniforms in fiscal 2009 and 300,000 summer uniforms in fiscal 2010), weighing
approximately 150 tons, and cut CO2 emissions by about 270 tons. The new uniforms can bechemically recycled, which means that they can be broken down and converted to other usable
materials at the molecular level, with almost no waste products. Our use of an anaerobic process
New uniform

Switch to Electronic Store Delivery Receipt Forms
In the past, LAWSON printed delivery receipt forms each time goods were delivered to our stores.
These forms confirm the product types, quantities and other particulars. LAWSON digitized thosefunctions from February 2009, eliminating the need to print some 90 million forms in fiscal 2009
alone by switching to electronic data exchange. This eliminates the need for paper document
storage space as well, and reduces document management costs.
LAWSON is also reducing paper consumption by loading store management manuals onto store

18

2009
(FY)

recycled approximately 2,140 such packs in fiscal 2009, reducing annual waste by about 360 kg by reusing

computers for regular access, and only printing only the minimum items required.

32,022

5.34

terminals. Rechargeable battery packs whose cells have been replaced perform just like new packs. We

with no CO2 emissions also reduces the environmental impact of the recycling.

Weight percontainer

Store computer

(g)

9
8
7
6
5
4
3
2
1
0

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleBoosting Recycling and Reducing Waste
Our stores generate a wide range of waste from the cardboard boxes in which products
are packaged to boxed lunches, bread products and other foodstuffs that have passed their sell-by dates.
The LAWSON Group is working to reduce the impact of this waste on the environment by trying to cut
waste generation as much as possible and by promoting food recycling.

Helping to Build a Recycling Society
Food recycling ratio

Fiscal 2008

For LAWSON and NATURAL LAWSONFiscal 200924.6 ％

25.6 ％

Fiscal 2010 target
at least

28.5 ％

Reducing and Recycling Food Waste
LAWSON stores generate an average of about 11.5 kg per day of food waste, which includes oil used
to fry Kara-age Kun chicken nuggets as well as boxed lunches and other foodstuffs that have passed
their sell-by dates.* We strive to reduce such food waste through curbing output and throughmaterials recycling (used cooking oil recycling, production of animal feed and compost from foodwaste) and thermal recycling (recovery of heat energy).
From fiscal 2008, LAWSON adopted a target of increasing our food recycling ratio by at least 2
percentage points per year from the fiscal 2007 level (22.5%), aiming at a ratio of at least 32.5% in
fiscal 2012. The food recycling ratio rose to 24.6% in fiscal 2008 and 25.6% in fiscal 2009 (26.5%●Number of Stores Recycling Food Wastes
by Fiscal Year (April 1 to March 31)(stores)
FY2007
Used cooking oil recycling
7,403
Animal feed, compost
906
Thermal recycling－
Food recycling ratio (notincluding waste
22.5%
generation reduction)

FY2008
7,599
1,013
124

FY2009
7,817
1,266
135

24.6%

25.6%

Note: Number of stores as of March 31, 2010.

including waste generation reduction under the Food Waste Recycling Act [Act on Promotion of
Recycling and Related Activities for Treatment of Cyclical Food Resources]).
Note: Sell-by date: a date preceding the “eat-by date,” which we set voluntarily, to take into account the timelikely to elapse between purchase and consumption.

Curbing Waste Generation
LAWSON is working to reduce waste generation. At the manufacturing stage, we have introduced
a production management system designed to eliminate the production of surplus products bymeasuring the weights of raw materials, final products, portion amounts and other items in gramunits.
In our stores, we are reducing waste generation by improving product assortment. Each store
uses its computer to check past sales performance according to day of the week, weather, local
events and other factors to form hypotheses, adjust product assortment accordingly, and reduce
waste.

Used oil processing plant

Promoting Reuse and Recycling
LAWSON started to recycle used cooking oil in January 2006 and steadily expanded the areas
covered so that stores nationwide were participating from August of that year. As of the end ofJune 2010, 7,896 LAWSON stores (90.1% of all stores) were recycling used cooking oil. The oil iscollected by industrial waste collection businesses for recycling as an additive in animal feed, andfor use in construction industry paint, bio-diesel fuel for public buses, additive-free soap and otherproducts.
LAWSON began food waste recycling in January 2010 starting from Kanagawa Prefecture, and
1,307 LAWSON and NATURAL LAWSON were recycling food as of the end of June 2010. Food
products that have passed their sell-by dates from stores in Tokyo Prefecture, Kanagawa
Prefecture, Saitama Prefecture and Kyoto City are being recycled as pig feed, while those fromstores in Kumamoto City, Nagoya City, Aomori City, Mie Prefecture and Matsue City are being
recycled as compost. We are working to expand the areas covered while securing food waste
recycling plants, cooperating with collection companies and resolving processing cost issues. We
began recycling food wastes from stores in Kagawa Prefecture and Maebashi City (Gunma
Prefecture) into compost in August 2010. The 242 LAWSON STORE100 outlets in Tokyo, Kanagawa
and Saitama Prefectures are also recycling food waste as of the end of May 2010.

19

Products manufactured using recycled oil

Caring for Our
PlanetEnriching theCommunity

Motivating
People●Recycling Food Waste as Feed (Partners: Marco Corporation; Shonan Organic Recycling Inc.)
Food waste from 22
LAWSON stores in
Kanagawa Prefecture iscollected by Marco Corp.
using refrigerated trucks,
and delivered to the
Shonan Organic Recycling
plant.

A crusher/separator
removes the packaging
and crushes the foodwastes.

The food wastes are
sorted into four raw
materials tanks bytype, weighed, andthen mixed.

The raw garbage isindirectly exposed to
steam, dried, and thencooled to ambient temperature.

The product is mixed
into pig feed.

The oil isremoved* andthe product iscomplete.

Dried productForeign matteris removed
using a sievemachine.

Note: This step is implemented by the Yokohama YR Cooperative.

●Store Waste Output Survey Result

Utilization of Unsold Foodstuffs(Average Daily Waste Output per Store)

In cooperation with the City of Yokohama, two local LAWSON stores and a rice products plant have

Plastic waste

been providing unsold boxed lunches and bread products that have passed their sell-by dates to the

Food waste

non-profit organization Sanagitachi since June 2006. Sanagitachi operates a cafeteria in
Yokohama’s Kotobuki district. The cafeteria uses the unsold foodstuffs before their eat-by dates,
not just as they are, but rather as raw materials to prepare inexpensive meals.

2.1 kg11.5 kgCombustibles

18.3 kg

Total
53.3 kgStore Waste Output

Glass
containers

1.5 kgA year-long survey (April 2009 to March 2010) of the waste output of 342 Tokyo stores shows thatthe average daily waste output per store was 53.3 kg. Much of this is either combustible waste suchas waste paper, disposable chopsticks and wrapping paper (18.3 kg) or the cardboard boxes in

Cardboard
Recyclable paper

16.8 kg

0.1 kgCans 2.7 kg
PET bottles 0.3 kg

which products are delivered (16.8 kg). Food waste accounts for another 11.5 kg.
The volume of waste has been increasing year by year, rising from 50.9 kg in fiscal 2007 to 52.0 kg in
fiscal 2008 and 53.3 kg in fiscal 2009, mostly because of an increase in customers disposing their household
waste when they come to shop. This is increasing the sorting and disposal expenses at the stores.

From the Frontline: Business Partners 1“We want to recycle food waste into food products.”

Feed Manufacturer:

Kiyoshi Sugiyama

President, Shonan Organic Recycling Inc.

To make feed from food waste, we need to keep the discarded food that's the raw material fresh as it'stransported to the production facility. The running costs are high compared with compost production, but
we're doing this because we want to recycle food waste into food products. Nothing is more satisfying to us
than recycling properly and producing quality products.
To make pig feed, we need to be careful to keep out any foreign matter. The collecting company
cooperates by thoroughly sorting materials. We conduct visual inspections before passing the food waste
through our machinery, then use a sieve machine and magnets at the production stage, and do whateverelse we can to make sure that all foreign matter is removed.

From the Frontline: Business Partners 2

Collection Company:“We take pride in making a valuable product.”Managing Director, Marco Corporation

Unlike regular waste products, food waste can be transformed into feed, which is an excellent product,
so we have a team of drivers who collect only food waste. They use refrigerated trucks and handle thewaste carefully. Looking ahead, we're eager to work with our customers to comply with the Food
Recycling Law. We take pride in serving as a link in the recycling loop, and in knowing we're making
a valuable product. Our employees also find this work very rewarding.

20

Yoshio Asami

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleGroup Company Environmental Initiatives
We see meeting the many challenges involved in building a low-carbon society
to be the mission of the entire LAWSON Group. We will continue to actively
implement environmental management and enhance our corporate value.

Ninety-nine Plus Inc.
Accepting LAWSON Green Fund Donations at All Stores
Ninety-nine Plus Inc. operates 996 LAWSON STORE100 and SHOP99 outlets (as of February 28,2010), which sell fresh foods, ready-made dishes and other daily use food products in small
portions mostly priced at 105 yen. The company works to reduce plastic shopping bag, disposable
chopstick and spoon use at its stores by displaying posters requesting cooperation and asking
customers directly whether they need shopping bags or chopsticks.
Ninety-nine Plus Inc. began accepting donations to the LAWSON Green Fund at all its storesfrom May 2010. The generous donations given by customers are given to the National Land
Afforestation Promotion Organization. Employees have also participated in that group’s forest
planting and thinning projects, helping to leave the Earth in a healthy state for future generations.
Check out counter display announcement asking forcooperation in reducing the use of shopping bags,
disposable chopsticks and spoons.
A LAWSON Green Fund donation box is located next to the
cash register.

LAWSON ATM Networks Inc.
Introducing LED Signage
LAWSON ATM Networks Inc. is engaged in the installation, management and operation of joint
ATMs at LAWSON stores and other locations. The company was operating 7,624 ATMs in 43
prefectures as of July 31, 2010, and began installing new ATMs at these locations from last year.
The new ATMs use paper rolls that can issue 1.5 times as many receipts as the old ATMs, reducing
maintenance visits and saving energy. A total of 1,284 new ATMs were installed during fiscal 2009,
surpassing the initial plan for installing 800 new ATMs.
The company plans to install 800 new energy-efficient type ATM signs with LED lighting during
fiscal 2010. This switch to LED lighting will reduce energy consumption by about 75% compared
New ATM

with the former signage.

Signage with a nighttime
lighting timer

LAWSON ENTERMEDIA INC.
Supporting the Tokyo International Film Festival
and the LAWSON Green FundLAWSON ENTERMEDIA INC., which sells concert, sports, film and other tickets primarily via Loppi
multimedia information terminals inside LAWSON stores, co-sponsored the Tokyo International Film
Festival held October 17-25, 2009 as part of its support for environmental awareness events andconcerts. While the annual Tokyo International Film Festival began in 1985, the festival has adopted
green electricity, a green carpet and other environmental themes in recent years with the risingawareness of global warming and other environmental problems.
LAWSON ENTERMEDIA advertised the film festival with printed announcements attached to
LAWSON Green Fund donation boxes at LAWSON stores, and solicited donations to the LAWSON Green
Fund at the festival through the Green Carpet Club’s “Green Activities Donations.” The donated funds arebeing used to support forest improvement projects in Japan and overseas. LAWSON ENTERMEDIA willcontinue supporting for environmental awareness events and concerts in fiscal 2010.

21

Tokyo InternationalFilm Festival
announcement

Green Carpet

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleLAWSON Environmental Activities Report
Environmental Activities: Targets and Results●FY2009 Environmental Activities Results2
Item

Activity

Targets

Achievement status

Saving energy

Reduce store air conditioning, refrigeration andlighting electricity consumption.

Install energy efficient equipment in 90% of new stores.

Installed in 489 out of 527 new stores (92.8% deployment).

[Delivery trucks]
Reduce CO2 emissions by promoting eco-driving
and introducing eco tires.

Achievementlevels1

Introduce lighting adjustment systems or LED lighting
Installed in 500 out of 527 new stores (94.9% deployment),
fixtures in 90% of new stores.
with LED lighting also installed at 274 stores.
Reduce CO2 emissions per store by 4.0% (364 kg-CO2 per z Reduced per store CO2 emissions by 10.9% (991 kg)
store) compared with FY2007.
compared with FY2007 to 8,094 kg-CO2.
z Eco tires being used on 767 out of 1,248 vehicles(46.2% deployment).

[Company cars](1) Improve company car fuel efficiency by 10%
Reduce CO2 emissions by promoting eco-driving
compared with FY2008.
and safe driving, and introducing electric vehicles. (2) Introduce 40 electric vehicles.
Reduce store electricity consumption through
Reduce electricity consumption by 326 kW per store-month byinstallation of energy-efficient equipment.
introducing new store equipment (store computers, Loppi,(1) Improved fuel efficiency by 7.1% year-on-year(96.7% of the target).
(2) Introduced 38 electric vehicles (40 as of March 31).

ᇞCompleted installing new store equipment at all
stores (Cumulative: 8,607 stores).

registers, etc.) during the fiscal year.

Promote companywide mitigation of global
warming (reduction of CO2 emissions).

(1) Compile CO2 emissions database.
(2) Create an energy efficient store model.

(1) Outsourced database development.
(2) Assessed winter benefits and consideredadditional measures.
(1) Reduce by asking customers if they want shopping bags.
Achieved a handout rate per store of 74.3% (vs. the(2) Promote Bring Your Own Bag program.
73.9% target).
Reduce shopping bag handout rate per store by 3% compared (Weight of shopping bags used per store reduced bywith FY2008.
27.7% compared with FY2000.)

Saving resources Reduce plastic shopping bag use.

ᇞᇞ(Reduce the weight of shopping bags used per store by 32%
compared with FY2000.)

Reduce disposable chopstick use.

(1) Reduce by asking customers if they want chopsticks.
Reduced chopstick use per store to 52,767 sets, a(2) Promote Bring Your Own Chopsticks program.
reduction of 11.4% compared with FY2006. 3
Reduce the number of sets used per store by 20% compared with FY2006.

ᇞ(1) Reduce packaging weight.
Reduce CO2 emissions from incineration of packaging by Reduced CO2 emissions from incineration of(2) Use non-plastic packaging (paper, biodegrade- 7% compared with FY2006.
packaging by 23.0% compared with FY2006.
able plastic) where possible.
Reduce store sales slips.
Reduce paper consumption by 80 million sheets per year. Reduced paper consumption by 90.04 million sheets.

Reducing waste

Efficiently develop sales promotion materials, and Develop materials based on advertising display standards, (1) Reduced the volume of materials used by 1.4%
comply with laws on disposal.
and comply with laws on disposal.
compared with FY2008.
(2) Confirmed manifest receipts upon disposal.
Increase food recycling ratio.
Increase food recycling ratio by at least 4 percentage
Achieved food recycling ratio of 25.6%.4
points compared with FY2007 (to at least 26.5%).
(1) Waste oil recycling: 7,817 stores(2) Recycling into feed and compost: 1,266 stores(3) Thermal recycling: 135 stores

Contributing
to localcommunities
Promotion andeducation

Continue collecting donations through the
LAWSON Green Fund.

(1) Collect donations for the LAWSON Green Fund at all stores.

Combat global warming through activities withcustomers. (Promote CO2 Offset program)(1) Promote CO2 Offset program (Use points, Loppi).

1. Achievement Levels: Quantitative assessment: 100%:

ᇞ(1) FY2009 collections: 0.23 billion yen
Total collections to date: 3.01 billion yen(3) Promote and educate, and support projects by regional branches. (2) Greenery projects: 97 in FY2009(2) Promote participation in greening projects.

(2) Continue selling products with attached CO2 emissions credits.

FY2009 CO2 offset volume: 5,647 tons
Total CO2 offset to date: 12,839 tonsᇞ

, 70% or more: ᇞ, Less than 70%: ×Qualitative assessment: Implementation completed:, Implementation in progress: ᇞ, Not implemented: ×
2. Excluding LAWSON STORE100 outlets
3. Excluding NATURAL LAWSON outlets
4. Food recycling ratio including curbing of food waste generation according to the Food Waste Recycling Law: 26.5%●FY2010 Environmental Targets
Item
Saving energy

Activity

Targets

Reduce store air conditioning, refrigeration and lighting electricity consumption.

Implement energy conservation measures at 100% of new stores.
(1) LED lighting or automated lighting adjustment systems (2) Combined refrigeration andair conditioning systems (3) Energy efficient signs (4) Toilet sensors
Implement energy conservation measures at existing stores.
(1)Replace freezers. (2) Replace air conditioners. (3) Install condensation prevention heater control units.

[Delivery trucks]
Reduce CO2 emissions per store by 15% compared with FY2007.
Reduce CO2 emissions by promoting eco-driving and introducing eco tires.
[Company cars](1) Improve company car fuel efficiency by 3% by the end of FY2010 compared with FY2009.
Reduce CO2 emissions by promoting eco-driving and safe driving, and introducing (2) Introduce 30 electric vehicles.
electric vehicles.
Saving resources

Promote companywide mitigation of global warming (reduction of CO2 emissions). (1) Compile CO2 emissions database. (2) Create energy efficient stores.
(1) Reduce by asking customers if they want shopping bags and expanding the point system.
Reduce plastic shopping bag use.
(2) Promote Bring Your Own Bag program
Reduce shopping bag handout rate per store by 3% compared with FY2009 (to 71.3%).
(Reduce the weight of shopping bags used per store by 35% compared with FY2000.)(1) Reduce packaging weight.
(2) Use non-plastic packaging (paper, biodegradable plastic) where possible.

Reduce CO2 emissions from incineration of packaging by 8% compared with FY2006.

Reduce paper consumption by 3 million sheets per year by using computer systems for the
distribution of materials to stores.
Adhere to advertising display standards for sales promotion materials, and comply (1) Develop materials based on advertising display standards.
(2) Check disposal volumes and comply with disposal laws.
with disposal laws.
Eliminate handout of paper materials by stores.

Reducing waste

Increase food recycling ratio.

Increase food recycling ratio by at least 6 percentage points compared with FY2007 (22.5%).

(1) Collect donations for the LAWSON Green Fund at all stores (2) Promote participation ingreening projects (3) Promote and educate, and support projects by regional branches.
FY2010 CO2 offsets of 7,000 tons
(1) Promote CO2 Offset program (Use points, Loppi )(2) Continue selling products with CO2 emissions credits.

Contributing toContinue collecting donations through the LAWSON Green Fund.
local communities
Promoting use /education

Combat global warming through activities with customers.
(Promote CO2 Offset program)

22

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleLAWSON Environmental Activities Report
Environmental Conservation Costs (Main Investments and Expenses Based on
the Environmental Accounting Guidelines of the Ministry of the Environment)
Period: March 1, 2009 - Feb. 28, 2010 Scope: LAWSON headquarters1 and franchise stores

1. Includes LAWSON Okinawa, Inc.
(thousands of yen)

Categories

Main Activities

Investment

Expenses(1)-I. Global environmental
conservation costs

Introduction of energy efficient equipment: CO2
Offset program

5,536,590

102,115(1)-II. Resource recycling costs

Waste-related expenses2

04,553,341

Legal compliance(2) Upstream/downstream costs

Costs related to the Container and Packaging
Recycling Law

0414,870

Legal compliance(3) Administration costs

Preparation of environmental reports, ISO14001
inspections

0

13,614

Promotion of environmental activities
and education(4) Research & development costs

Energy-efficient store research

28,96013,627

CO2 reduction(5) Community engagement activity costs

Greening activities, neighborhood cleanup activities,
donations to NPOs

036,276

Biodiversity conservation,
local community beautification(1) Business area costs

Benefits
CO2 reduction

2. Store waste product processing and recycling costs are estimated using the figures at typical stores as a sample.

LAWSON Materials Flow
Our store operations consume electricity, gasoline, water and other resources, and generate CO2 emissions and waste products as a result.
We strive to monitor and reduce the environmental impacts of our business activities.

Store Operations Materials Flow
INPUTSElectricity
Water
PropaneFuel oilFoods, packaging
materials, etc.

Electricity
Gasoline, diesel &natural gas
Packaging materials

OUTPUTS

Factories for
production ofrice products, etc.

Joint delivery
centers

CO2
Waste
products
Wastewater● Introduced production
management system to curb
generation of waste products, etc.
● Introduced thin‐walled containers
and containers made frompolylactic acid (PLA) to reduce
environmental impacts.

CO2
Waste
products● Revised delivery system to reduce
number of average daily deliveries
per store (from 16 in FY1989 to
7.29 in FY2009).
● Trucks using eco tires: 767 vehicles● Trucks equipped with on‐board
operation management system

Delivery

Diesel & natural gas

CO2
Delivery trucks

Customers

Waste products

CO2
Waste
products
WastewaterElectricity
Water
Packaging materials

Electricity
Water
Paper, office supplies,etc.
Gasoline

Company cars

CO2
Waste
products
Wastewater
Headquarters & offices● Recycling costs basedon the Container andPackaging Recycling
Law

23● Introduced energy‐efficientequipment.
Combined refrigeration and air
conditioning systems: 2,291 stores
LED signs: 294 stores
LED in‐store lighting: 274 stores● Improved product assortment andpromoted food recycling.
Food recycling ratio: 25.6%● Reduced plastic bags anddisposable chopsticks.
Plastic bag handout rate of 74.3%
Number of chopsticks used per
store reduced to 52,767 sets

● Introduced electric vehicles.
40 vehicles introduced as of March
31, 2010● Switched to hybrid vehicles andvehicles equipped with automatic
idling prevention systems.
Approx. 1,200 vehicles● Promoted office lighting switch‐off● Introduced videoconferencing

Special
FeatureWorking with Society

We owe our existence to the fact that residents of the local communities in which we operate are happy
to have us there. We at LAWSON feel that enterprises need to serve society, and base our businessactivities on our corporate philosophy to work for "happiness and harmony in our community."

Supporting Employment of Youths Suffering from Social Withdrawal and Other Problems
Naomi Ishizuka, Owner, Shizuoka Shikichi Store, Shizuoka Prefecture
It was through my mother, who is deputy director of the

I've had such youths give up along the way, and have

Youth Employment Support Network Shizuoka, that I started

often been tempted to stop taking them on, but it's seeing

supporting young people in the NEET (Not in Education,others who've stayed the course that's kept me going too.

Employment or Training) category four years ago. NEET

I've also gained a lot from all the people in the Youth

youths are socially withdrawn or have other problems that

Employment Support Network and LAWSON who've given

make them difficult to employ. I was reluctant to help at first,

their support, and so I intend to stick to it.

but then I got around to thinking about how I could serve
society through LAWSON as a long-time franchise owner,
and realized that supporting employment was probably thebest way I could help.
That support consists basically of taking on a NEET youth
for six months with the aim of nurturing the social skills
required to enable the youth to find work. Many NEET people
lost confidence in themselves after failing to find work in the
tough times after the bubble economy collapsed, and theyneed to be brought out of their shells, but we don't give themspecial treatment. I go out of my way to treat them just as I
would anyone else. I start them off doing backroom work liketidying up waste, and once they've got the idea and are able
to work things out for themselves, I take them to the
LAWSON training center to listen to franchise training
lectures, and learn about serving customers at checkout
counters.
LAWSON, INC. and its
Shizuoka Shikichi Store
were
presented
withcertificates of appreciationby the Youth Employment
Support Network Shizuoka
at Shizuoka Prefectural
Office on September 22,
2008 for their cooperationin Shizuoka's employment
support program.

24

Working with Society

SpecialFeatureParticipating in Workplace Experience Program Brings Us Closer to the Local Community
Etsuko Ishida, Owner, Kawaguchi Ryoke 3-chome Store, Saitama Prefecture
We've been giving middle school students workplace

opportunities out of aexperience opportunities for eight years now, after being

desire to serve the local

asked to do so by some mothers in the neighborhood. We

community in some way,take on three students for three days each year, teaching

and we'll go on doing so.

them how to greet customers, stack shelves, clean the store,

Thank you letters from children

and serve customers at the checkout counter. Greetingcustomers is particularly important, and we stress theimportance of greeting them with a genuine sense ofgratitude. Greetings need to be heard too, and so we havethem stand at both ends of the store and practice greetingsin big enough voices to be clearly heard by each other. Also,
once they're wearing LAWSON uniforms, they're one of us
and we treat them as adults and tick them off sternly whennecessary. The children too know what's expected of them,and keep at it until they master tasks, and they reallyappreciate being praised. Regular customers also watch
over them and give them encouragement. People in theneighborhood have come to treat us as one of them as aresult of our providing such workplace experience, and thatmakes us feel good too. We started providing such

"We also welcome elementary school hometown exploration groups."

Building Networks Spanning Convenience Store Chains
to Promote Community Crime Prevention and Disaster Preparedness
Satoshi Masugi, Owner, Otsu Shimanoseki Store, Shiga Prefecture
When I first opened this store 15 years ago, all of theconvenience store chains in Otsu City were having problems
with shoplifting and loiterers. When we sought police advice,
they suggested forming a crime prevention association, andso we got together with other likeminded owners andcreated an association. We meet once a month to discussand plan activities. We also help hand out crime prevention
flyers at Otsu and Zeze Stations, and participate in crime
prevention drills.
I've served as the chairman of the association since its
founding, and it has grown into a network spanning different"We also attend Shiga Prefectural Police courses on youth education."convenience store chains. When we hold crime prevention
drills here at the store four times a year, other stores in theneighborhood also participate, which is very gratifying. Twoformer crew members have become policemen, and acurrent member of my crew who will graduate this year isaiming to become a policeman. It makes me happy to think
that

our

everydaycrime

prevention

anddisaster

preparedness efforts have had some influence on theircareer choice.

Shoplifting prevention banner displayed in the store

25

Working with Society

SpecialFeatureRepaying the Community through Regular Street and River Litter Collection by Volunteers
Yuichiro Yamamoto, Kyoto Sales Manager, Shusei Co., Ltd., Kyoto Prefecture
Shusei operates 12 stores in Kyoto City, and president Hideki
Yomoda and his wife, together with employees and store
crew who volunteer, hold regular litter collections along the
Kamo River in the Sanjo Ohashi area under the nameMachikkurin(shortfor

ShuseiCommunity

CleanupCampaign). The Kamo River is a symbol of Kyoto, and we
decided to serve the community by helping to keep its
environs clean at the suggestion of Takanori Fujisawa,
manager of our Sanjo Ohashi store. We don gloves, grab
waste bags and spend about an hour each time picking up
litter along neighborhood streets and the river bank. We
Shusei staff participating in volunteer cleanup activities

enjoy it. Working as they do inside little stores, ouremployees and store crew members find it a refreshingchange to get out into the open, catch the breeze, and mix
with staff from other stores.
Shusei also belongs to the local Kamo River Cleanup
Association, and we plan to participate as much as possible
in cleanup hikes and other events aimed at keeping the local
community clean and tidy.

Collecting litter along the banks of the Kamo River

Supporting the Independence Efforts of People with Disabilities
by Selling Akita Prefecture Vocational Aid Center Products
Eriko Kato, Owner, Akita Araya Toriki-machi Store, Akita Prefecture
Note: Vocational aid center: Facilities where people with physical or
intellectual disabilities or whose employment opportunities arelimited by household circumstances are given opportunities togain work skills and achieve a certain level of independence.

At Akita Araya Toriki-machi Store, which opened in April 2010,
we sell sundries made at vocational aid centers* throughout
Akita Prefecture as one aspect of a comprehensive cooperationagreement exchanged between Akita Prefecture and LAWSON
in October 2009 to support the independence efforts of Akita
residents with disabilities. (See P.29 for further information on
the agreement.) We owe our existence to the people in thiscommunity, and so we decided to sell these goods as a meansof doing what we could to contribute to the community.
The products, which are all handmade by the users of threefacilities—Dream Company Ayumi, Taiyo no En, and Yamabato

En, are of 15 types, including woven pouches, eco-scrubbers,
and soap made from waste oil. Being carefully made one byone, they all have a handcrafted feel that makes each of themspecial.

The products from vocational aid
centers are displayed in a special
corner near the entrance.

26

Owner Eriko Kato being interviewed by a member of the press

Working with Society

SpecialFeatureMobile Sales for Senior Citizens without Means of Transport
Kyoji Adachi, Owner, Kofu-cho Store, Tottori Prefecture
I operate five supermarkets in Hino-cho and Kofu-cho. This

We're also providing jobs by doing this business. I wantarea is a hilly rural zone in which senior citizens make up

to go on offering the old people in these marginal villages themore than 40% of the population. One- or two-member

same products that people buy in Tokyo, and continue tohouseholds that lack their own means of transport accountplay a part in keeping these communities going.

for 30% of the total, and so I decided that instead of waiting
for customers to come to my stores, we'd go and sell stuff
near to where these people are. We started mobile sales in
1993, and after opening the LAWSON Kofu-cho store in April
2008, we've also been offering LAWSON products.
Currently we do three routes twice a week, with eachroute going through eight to ten villages. We sell about 800
products, including about 30 LAWSON products. Meat, fishand new products such as sweet buns are very popular.
People say they look forward to seeing our Himawari(Sunflower) truck, and that they find it a real help as they
can't go shopping themselves. Our mobile sales are helping
both to provision people in the local community and to watch
over their wellbeing, since we go and check the homes of
any regular customers who don't appear.
The Himawari (Sunflower) mobile sales truck is fully
equipped with refrigerated and frozen food sections.

"Every Store Can Contribute" and "Safety Station" initiatives
We launched our Every Store Can Contribute initiative in 1997 to get each of our stores involved in community
engagement activities tailored to neighborhood needs. By opening their doors to elementary and middle
school student workplace experience programs or helping to keep surrounding areas litter-free and so forth,
our stores aim to serve as valued and welcome members of their local communities.
We also participate in the Safety Station initiative launched by the Japan Franchise Association. Under thisinitiative, which is backed by government agencies and law enforcement authorities, we position our stores asneighborhood safe havens and help to keep young people out of trouble. The Safety Station initiative provides
convenience stores with an industry-wide platform for fulfillment of social responsibility through helping toprevent crime, serving as havens for women and children who feel threatened, and offering assistance toelderly people.

Exchange of MOU with the National Hospital Organization
on Supply of Meals in Emergencies
On June 16, 2010, the Chugoku/Shikoku block of the National Hospital Organization (NHO)
and LAWSON exchanged a memorandum of understanding on the supply of meals inemergency situations. Under this MOU, LAWSON has agreed to supply patient meals to
hospitals unable to do so themselves owing to kitchen fires, power failures or othercontingencies. The NHO asked for our cooperation because of our capabilities for providing
a steady supply of meals to facilities spread over a wide area, and we agreed to help as wewelcome the opportunity to be of service to public healthcare facilities. In the event ofemergencies, we will respond to requests from any of the 23 hospitals (9,717 beds) of the
NHO's Chugoku/Shikoku block of nine prefectures to supply boxed lunches, bread,beverages and other provisions for inpatients who do not have special meal requirements.

27

Enriching
the Community

LAWSON Group Initiatives for the Community
The LAWSON Group seeks to offer products and create stores that meet local customer and neighborhood needs while
making use of the advantages offered by a nationwide network.
We hope to give everyone a lift through a wide range of initiatives to enrich the local communities in which we operate.

Stores that Enrich the Community
As society and lifestyles evolve, customer needs are diversifying. To keep abreast of thesechanging needs, the LAWSON Group is implementing various reforms that try to take convenience
stores to the next level.

NATURAL LAWSON—For Health-Conscious Consumers and Working Women
NATURAL LAWSON stores put priority on health, beauty and comfortable lifestyles, and are locatedin business districts of large cities to cater to the large number of working women. They offer
healthy, low-calorie ready-to-eat foods and boxed lunches, sweets made from select ingredients,
detergents and cosmetics made from natural materials, and other products that can be used withpeace of mind. NATURAL LAWSON stores have won a following among health-conscious men as
well as women.

LAWSON STORE100—Popular with Housewives and the Elderly
These stores sell fresh foods, prepared foods and other foods delivered daily in small portions andmostly priced at 105 yen, which meets the needs of housewives, the elderly and small households.
We sell only the freshest and best quality fresh foods, putting priority on selling seasonal
vegetables and fruits.

LAWSON KOBE HOT DELI—Foods Made Fresh In-StoreLAWSON KOBE HOT DELI provides that freshly made restaurant taste — anytime, anywhere,
conveniently. Combining the three services of a live kitchen where customers can watch theirmeals being cooked right in front of them, a bountiful self-service buffet with an extensive rangeof dishes, and freshly made boxed lunches cooked right there in-store, we provide meals for all
kinds of situations, including lunches at school and work, and meals for housewives and seniors.

28

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleTogether with the Local Community
LAWSON aims to fulfill its role as the “Hot Station in the Neighborhood”
with each store throughout Japan bringing out the best characteristics of its
particular neighborhood, and contributing to a safe and comfortable life for its customers.

Collaboration with Communities through Comprehensive Agreements with Local Authorities
LAWSON aims to be the “Hot Station in the Neighborhood” through store management rooted in
the local community and activities that contribute to the local community. As part of these efforts,
we partner with local authorities on joint projects to improve neighborhoods and promote local

The blue portions of the map denote local
authorities that have comprehensive agreementswith LAWSON. Sapporo City and Yokohama City
have agreements with LAWSON separate from thoseof their prefectures.

development.
By the end of May 2010, we had entered into comprehensive agreements with 36 local
authorities. We are involved in a wide variety of efforts including the development of products thatuse local produce for both local and nationwide consumption.
Sapporo City

●Niigata
Prefecture
Rice flour buns:
Two types ofrice flour breads
made with 100% new Koshi-ibuki rice harvested in the Kaetsu district of Niigata●Hyogo Prefecture

Prefecture—rice flour sweet potato paste buns and rice flour steamed chestnut buns.

●Hokkaido

Hyogo Mansai boxed lunch:Prefecture

Boxed lunch packed with foods

Rice balls with herring roe mayonnaise andfrom Hyogo Prefecture including sea bass, nori seaweed,

hand-rolled sushi with herring roe mayonnaise:simmered sand eel, firefly squid, onions, cabbage andRice balls and hand-rolled sushi made with

Banshu 100-day chicken. The simmered food is flavored withherring roe processed in Rumoi City. The slightginger and soy sauce in the Himeji oden style.

spiciness of the mustard mayonnaise combinedwith the crunchy texture leaves you asking for
more.

Yokohama City

●Miyagi●Miyazaki

Prefecture

Prefecture

Shiroishi umen noodles:

Lucmi melon buns:
Melon buns made with the Lucmi lactobacillus
drink developed by Miyazaki Prefectural Takanabe
Agricultural High School and Hyuga-natsu citrus
grown in Miyazaki Prefecture. These buns were
put back on sale at the earnest request of
students, who wanted to give Miyazaki amuch-needed lift after its livestock industry
suffered a foot-and-mouth disease outbreak. A
portion of the sales proceeds are donated to the
Miyazaki Prefecture Fund for Foot-and-Mouth
Disease Damages.

Wheat noodles in a bonito-based broth using
Sendai miso accented with spicy miso-flavoredground pork with hot ginger.

●Kochi Prefecture
Ryoma legend salted
yakisoba noodles:
Simply salted yakisoba noodles with deep-fried
Shimanto chicken, named after a tributary of the
Shimanto River where the legendary Sakamoto
Ryoma traveled after he left his clan.

●Gifu Prefecture
Rice topped with miso-flavored sautéed chicken:
Boxed lunch of cooked rice topped with miso-flavored sautéed chicken—a popular
local cuisine in the Hida and Okumino districts.

LAWSON Opens In-Store Prefecture Promotion Shops
LAWSON has opened Prefecture Promotion Shops inside its stores to promote individual prefectures with which it hascomprehensive agreements by providing tourism information and selling goods from the prefectures concerned. In March
2009, we opened a Tokushima Prefecture Promotion Shop in our Toranomon Tomoe-cho Store, Tokyo, followed by a Saitama
Prefecture Promotion Shop in our NATURAL LAWSON Shinjuku Station West Store in September 2009. In 2010, we opened
similar shops for Nagano Prefecture in the NATURAL LAWSON Tsukiji Togeki Building Store in April, for Okinawa Prefecture in
the LAWSON Meieki South Hirokoji Store in May, and for Chiba Prefecture in the LAWSON Yokohama Sumiyoshi-cho 4-chome
Store in July. The five Prefecture Promotion Shops operating as of July 31, 2010 sell between 70 and 300 recommended
products from their respective prefectures.

29

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleServing as One of Society's Lifelines
The LAWSON Group works with local governments and other authorities
to prepare for disasters and contribute to safety in the community.
We aim to exploit our unique capabilities as a nationwide chain of about 9,800 storesencompassing all 47 of Japan's prefectures to implement disaster response measures promptly and efficiently,
and contribute to the early restoration of normality in areas struck by natural disasters.

Contributing to Peace of Mind in the Community
Disaster Assistance Agreements●Provision Procurement Agreements Concluded
Since Fiscal 2009 (As of May 31, 2010)

LAWSON stores strive to become major support lifelines
in the event of large-scale natural disasters by continuing
to operate without interruption in disaster-stricken
areas. As of May 31, 2010, we had concluded Provision
Procurement Agreements with 57 local authorities andother organizations to supply as many essential

People Assistance Agreements with 37 local authorities,
promising to do our utmost to lend toilet facilities andprovide tap water, information updates and so forth todisaster victims forced to travel on foot due to the
roads

and

means

of

transport

March 26, 2009
May 21, 2009
June 17, 2009
January 18, 2010

Aichi Pref.
Yokohama City
Nara Pref.
Kyoto Pref.

Concluded Since Fiscal 2009 (As of May 31, 2010)

As of May 31, 2010, we had also concluded Displacedof

Agreement
Partner●Displaced People Assistance Agreements

provisions as possible to affected areas.

collapse

Agreement Dateindisaster-stricken areas.

Disaster Relief Fundraising

Agreement Date

Agreement
PartnerMarch 23, 2009
March 30, 2009
November 26, 2009
January 20, 2010
January 28, 2010
May 12, 2010

Shimane Pref.
Tottori Pref.
Nagasaki Pref.
Kumamoto Pref.
Kochi Pref.
Miyazaki Pref.

●Disaster Relief Funds Collected in Fiscal 2009

LAWSON provides help to areas stricken by large-scale

Funddisasters by replacing its LAWSON Green Fund collection
boxes with a special disaster fund appeal for a limited

Area

period. In 2009, we contributed approximately 31 million
Periodyen to the Japanese Red Cross Society's Haiti earthquake
victim support efforts and other funding to three

Yamaguchi Pref. July 21
Fukuoka Pref. July
Heavy Rains Disaster Relief Heavy Rains Disaster949 stores in
Chugoku/Shikoku
regionJuly 26 toAugust 8, 2009

Total
donationsdomestic disaster relief efforts as outlined on the right,

894 stores in
Kyushu region
August 1 to 14,
2009\2,499,012\1,610,388

delivering donations of people from across the country to

Fund

Hyogo Pref. Typhoon #9
Heavy Rains Disaster Relief

the victims of disasters. We sincerely thank ourArea

501 stores in
Hyogo Pref.

All 8,755 storesnationwide

PeriodAugust 13 to26, 2009

January 17 to 30,
2010

Total
donations\1,307,478\31,008,711

customers for their generous donations.

Haiti Earthquake
ReliefDisaster Response
When a large-scale disaster occurs, the LAWSON Group establishes a Disaster Response Office and promptly implements disastercountermeasures to ensure continuation of the supply lifeline to the disaster area, and provides aid to the disaster area in the form of provisions.
In fiscal 2009, we supplied provisions to three areas that suffered damage from heavy rains and typhoons.

● 2009 Hyogo Pref. Typhoon #9 Heavy
Rains Damage (August 10, 2009)

Item
500 ml bottles of water
500 ml bottles of green tea
500 ml bottles of soda

Number
1,848
1,200
552

● 2009 Fukuoka Pref. Heavy Rains Damage(July 27, 2009)● 2009 Yamaguchi Pref. Heavy Rains
Damage (July 25, 2009)

Item
Ice

Number
100 packets

30

Item
Rice Balls
Boxed lunches

Number
1,000
880

Caring for Our
元気に
PlanetEnriching theCommunity

Motivating
PeopleAiming to Become a Vital Part of Neighborhood Life
Leveraging its nationwide network of stores, LAWSON seeks to offer conveniencein the form of essential services such as payment of public utility charges.
We are also in the process of making our stores barrier-free and accessible to all.

Delivering Convenience and Comfort Every Day
Providing a Wide Range of Services
Participating in Ponta Multi-Partner Shopping Points Program
We are participating in the Ponta multi-partner shopping points program launched in March 2010,enabling customers to collect points at other Ponta partner outlets as well as ours when they shop.
The Ponta program is a next-generation point service that enables collection and use of points at
about 2,400 Showa Shell gasoline stands, 1,000 Geo Corporation DVD rental stores and otheraffiliates in addition to LAWSON, including online vendors. Ponta provides us with a platform both

Ponta cardfor providing customers with greater convenience and for implementing joint sales promotions
with other Ponta partners.

E-Payment Terminals
To enable a wider variety of payment methods and shorten checkout payment time, we haveintroduced e-payment services to almost all of our stores nationwide. In addition to iDTM1,QUICPayTM2, Edy3 and Visa Touch (Smartplus)4, all of which can be used nationwide, JR East Suica5
and other major transport e-payment systems can be used in all regions except Shikoku andOkinawa.
1. iD is a trademark of NTT DOCOMO, INC.
2. QUICPay is a system endorsed by the Mobile Payment Promotion Association (MOPPA).
3. Edy is a prepaid e-money service operated by bitWallet, Inc.
4. Visa Touch and Smartplus are non-contact e-payment services offered respectively by
Visa International Inc. and Mitsubishi UFJ NICOS Co., Ltd.
5. Suica is a registered trademark of East Japan Railway Company.

Providing ATM Services
LAWSON provides ATM services for cash withdrawals using the cash cards of Japan’s city banks,some regional banks and credit unions, and Japan Post Bank cards, as well as credit card company
cash loans. As of July 31, 2010, LAWSON operated 7,624 ATMs in 43 prefectures and had
partnerships with all of Japan’s city banks and 36 regional and Internet-only banks.

Loppi Multimedia Terminals
LAWSON stores are equipped with Loppi multimedia terminals that can be used for the purchase of

Loppi multimedia terminal

concert and other event tickets handled by LAWSON ENTERMEDIA INC., "toto" sports promotion
lottery tickets and various transport and leisure facility tickets, advanced ordering of DVDs,
applications for certification tests and other items.

Comprehensive Alliance with Japan Post Holdings Co., Ltd.
Under its comprehensive alliance with Japan Post Holdings Co., Ltd., LAWSON is leveraging its
nationwide network of stores to improve the convenience of postal services—an importantcomponent of social infrastructure—by equipping all of its stores with mailboxes, opening stores inpost offices and post offices in stores, and other innovations.

Kamigomyo Sub Post Office located in our Sakaki
Murakami Store in Nagano Prefecture31

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleStore Accessibility
We are striving to make our stores completely barrier-free and accessible to all people including theelderly, pregnant women and people with disabilities. All new stores have wheelchair-accessible
entrances, and stores with car parks have a dedicated space for wheelchair users. Store toilets are
Western-style and are equipped with handrails, and access has been improved with the removal ofraised entrance thresholds.
We have also introduced shopping carts and large-print price tags at designated LAWSON
stores in an effort to make our stores user-friendly for elderly people, and we welcome guide dogs,
hearing dogs and other assistance dogs at our stores.
"Working Dog Welcome"sticker displayed on
storefront windows

Deterring Underage Drinking and Smoking
To prevent underage consumption of alcohol and tobacco, we use recorded voice guidance orother means at checkout counters to demand proof of age from all customers except for those whoare clearly over the legal threshold. We also display posters and make in-store announcements toheighten customers' awareness of this issue. We will make further efforts to ensure 100 percent
compliance with the ban on sales of alcohol and tobacco to underage customers.
Notices of various kinds displayed in stores

Encouraging Good Smoking Manners
The LAWSON Group has established standards for the placement of storefront ashtrays. Where
bylaws prohibit smoking on sidewalks, we have as a rule removed ashtrays, and in locations notcovered by such bylaws, we have repositioned ashtrays away from store entrances. We also takevarious measures, including the display of smoking etiquette stickers on ashtrays in cooperation
with Japan Tobacco Inc., to raise awareness of the importance of observing good smoking
manners.
Display of smoking etiquette sticker on ashtray

Display of Organ Donor Cards
To help promote organ transplants, since January 1999 we have displayed organ donor cards in allof our stores. With the redesign of these cards under the July 17, 2010 revision of the Organ
Transplant Law*, we displayed new cards at our checkout counters for customers to help
themselves to. We will continue to help promote organ transplants by using our neighborhood
stores to raise awareness and prompt our customers to think about donating organs.
Note: Organ Transplant Law revision: The Law was revised to enable a person's organs to be used as long asfamily members approve, in the event that the person had not previously made his or her unwillingness to
become a donor clear. Donation of organs from people under the age of 15 has also become possible.

32

Caring for Our
マチを元気にPlanetEnriching theCommunity

Motivating
PeopleBringing Ties with the Local Community
LAWSON supports a wide range of sports activities andparticipates in neighborhood cleanup activities to foster close relations
with local communities.

Together with the Local Community
Support for Sports Activities
Supporting the Niigata National Sports Festival of Japan with a Map
LAWSON supports the annual National Sports Festival of Japan, which is held at different locations
each year, as part of our cooperation programs through comprehensive agreements with local
authorities. In fiscal 2009, we supported the 64th National Sports Festival, held in Niigata
Prefecture, by distributing a Niigata National Sports Festival Support Map with discount coupons at

Niigata National Sports Festival Support Map

tournament sites and other locations. We also distributed 100 free eco bags featuring the Niigata
Prefecture team uniform as a motif at every LAWSON store in the prefecture. LAWSON now looks
forward to supporting the 65th National Sports Festival to be held in Chiba Prefecture in fiscal 2010.

LAWSON Cup Mothers’ Volleyball Tournament
LAWSON supports Mothers’ Volleyball, a homegrown Japanese lifelong sport. The 5th LAWSON Cup
All Japan Mothers’ Volleyball Tournament Finals were held over four days from March 25, 2010 at
the Hokkaido Prefectural Sports Center in Sapporo City, Hokkaido Prefecture. After preliminary

LAWSON Cup Mothers’ Volleyball Tournament

regional rounds that attracted 3,040 teams and approximately 50,000 participants, 48 winningteams representing their respective prefectures went on to battle each other in the Finals.

Supporting the J.League’s ALBIREX NIIGATA — LAWSON Thanks Day
The Japan Professional Football League (J. League) has a strong regional element, and LAWSON
has supported ALBIREX NIIGATA as an official sponsor since 2003. One game each year is held
under the auspices of LAWSON Thanks Day, with 15 minutes before the start of the game devoted
as LAWSON Thanks Day Time to a “Heart and Soul Support Declaration” that unites the fans.
©ALBIREX NIIGATA

Neighborhood Cleanup Efforts
LAWSON helps to keep neighborhoods tidy by participating in cleanup activities.

Fukuoka Love Earth Cleanup
LAWSON participated in Fukuoka Love Earth Cleanup held in Ohori Park in Fukuoka City in May
2009. This was LAWSON’s 16th year of participation in the event, which is organized by the
non-profit organization Clean Fukuoka Association. Of the 980 participants, about 100 were

Fukuoka Love Earth Cleanup

LAWSON employees.

Kyoto Citizen Mass Cleanup Action
About 60 LAWSON employees participated in the Kyoto Citizen Mass Cleanup Action event held in
Kyoto City in November 2009. A total of 3,500 Kyoto residents and company workers participatedin this mass effort to clean up shopping districts and tourist spots.

Arakawa Clean Aid
In November 2009, LAWSON organized Arakawa Clean Aid 2009 with the participation of 128

Kyoto Citizen Mass Cleanup Actionth

LAWSON Group employees. This was our 15 annual cleanup of the banks of the Arakawa River inTokyo since we started this initiative in 1994. This year we gathered 57 bags of litter and 24
large-sized waste items.

Arakawa Clean Aid

33

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleFor the Next Generation
The LAWSON Group feels that creating an ideal environment for children to grow up in
will help society to flourish and breathe new life into local communities.
We work as one with those communities to implement various activities to support children
and the families raising them.

Supporting Social Education
Fifth Grader Work Experience in Kyoto Student City
In January 2007, LAWSON opened a store in Kyoto Student City designed to give children a taste ofwhat work in a convenience store entails. Established by the Kyoto City Board of Education and theJunior Achievement Japan, the Japanese branch of the world’s largest economic education group, theKyoto Student City work-study facility is used by the city’s fifth-graders as part of their school
curriculum. As well as a LAWSON store, Kyoto Student City’s little town boasts a ward office, bank,newspaper publisher, traditional pickle purveyor and other work experience facilities created throughthe cooperation of 12 companies and other organizations. After being taught about society andemployment-related mechanisms, children engage in hands-on activities.
At the LAWSON store, children learn how to communicate courteously with customers andFrom 2007 to March 2010, 30,647 children from497 schools have gained hands-on experience.

operate cash registers. Though shy at first, the children soon learn to greet customers cheerfully, andappear to gain a great deal from their experiences in the store.

HAPPY LAWSON Stores for Families with Children
LAWSON is implementing a Happy Childrearing Project as a way to support families with smallchildren. The idea arose from the theme of the prizewinning entry in a contest held in 2005 tocommemorate our 30th anniversary that solicited ideas on The Convenience Store of the Future,with the winning entry proposing convenience stores that support childrearing.
We incorporated many of the ideas raised by families with children into the HAPPY LAWSON
Yamashita Koen store that we opened in Yokohama City in July 2007. For example, we made theaisles wide enough to accommodate a baby carriage and added a play area for kids and a space forcaregivers to relax and chat. We also bolstered our product lineup with disposable diapers, baby
food, picture books, toys and other products that families raising small children have frequent
need of.

Donating Products through the "Miffy" Gift Campaign
As part of its childrearing support project, LAWSON runs gift campaigns offering originallydesigned small dishes, mugs and other goods adorned with the popular Miffy character created byartist Dick Bruna of the Netherlands. LAWSON sets aside 1 yen for each promotional item offeredthrough these campaigns, and donates products equivalent to the total to the Japan National
Council of Social Welfare and the National Council of Women’s Shelters. In fiscal 2009, we donatedproducts equivalent to 1,650,000 yen.

Thank you letters from children

Chugoku & Shikoku LAWSON Branch Supports
Shimane Children's Fitness Program
As part of its comprehensive agreement with Shimane Prefecture, Chugoku & Shikoku LAWSON
Branch supports the Shimanekko Genki Up Carnival, an event aimed at promoting the Shimanekko
Genki Up Program to improve the fitness of Shimane's children. The program offers ten activities
including skipping, unicycling, and ball games. Elementary schools select a number of these
activities for participation by all of their students.
The Carnival was held at 12 schools in fiscal 2009, with Chugoku & Shikoku LAWSON Branch
donating hula hoops, basketballs and other exercise equipment to the schools, and Miffy eco-bags
to the children.

34

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleSupporting Citizenship Activities/Overseas Assistance
The LAWSON Group supports citizenship activities being carried out by its customers and also
provides them with opportunities to contribute to society through shopping at its stores.
It has also established programs for the education of young foreigners as overseas assistance.

Building Social Contribution Infrastructure
Ponta Environment and Social Contribution Course
To enable customers to contribute to society as they shop, we offer an Environment and Social
Contribution course in the Ponta multi-partner shopping points program. Under this course, which
we have offered since 2003, customers can donate units of 10 points, equivalent to 10 yen, toorganizations that serve society. In fiscal 2009, a total of 3,437,260 yen was donated through thiscourse to the following six organizations:

Caring for Young Refugees (CYR)

Ecology CaféCYR supports the training of teachers,

This NPO provides learning opportunities

provision of lunches and creation of

to children based on local ecosystemsafe and stable environments for theconservation activities that help themeducation of needy children in Cam-learn about the natural environment

bodia.

and the importance of protecting it.

© Masanori Kobayashi

Japan Guide Dog Association

Bridge Asia Japan (BAJ)

This association trains guide dogs for

BAJ provides vocational training forthe visually impaired so as to enable

women and refugees who facethem to move about safely in society.

difficulties, and helps them translateacquired skills into income.

Education Sponsorship in Asia (ESA)
ESA supports the provision of a basic
level of education for children in
Bangladesh and India based on theconcept

that

education

helps

preserve human dignity and makes a

National Land Afforestation Promotion Organization(LAWSON Green Fund)

major contribution to overcoming
poverty and discrimination.

This organization supports forest management activities in Japan andoverseas as well as school greening initiatives. (See P.8-11 for details)

Scholarships for Vietnamese Students
In fiscal 2009, the LAWSON Group established a scholarship program for Vietnamese students wishing to study in Japan. This program
emerged from our procurement of ingredients grown in Vietnam for our products. Vietnamese students are very diligent, and since many
want to study in Japan, we established the program to provide the opportunity to some of them, granting scholarships for study in Japanesecolleges and universities for up to six years. So far, nine such students (four honors scholarships and five ordinary scholarships) have enrolled
in Japanese universities and Japanese language schools. We hope that this initiative will contribute to Vietnam’s development and the buildingof even friendlier ties between Vietnam and Japan.

35Motivating People

Keeping Customers Satisfied
Efforts to Ensure Customer Satisfaction
To enhance customer satisfaction and serve as the “Hot Station in the Neighborhood,”
LAWSON focuses on three key priorities — the provision of quality products,
operation in convenient locations and implementation of the Three Challenge Practices.
●LAWSON’s Approach to Customer Satisfaction

The Three Challenge Practices + Quality products+ Convenient Locations

LAWSON customer satisfaction
The Three Challenge
Practices

The Three Challenge
Practices

The Three Challenge Practices
Our Three Challenge Practices of store operation are: (1) ensuring merchandise

Quality products

assortments are matched to individual store locations; (2) serving customers
courteously; and (3) keeping stores and surrounding areas clean. To ensure that

Convenient locations

Serving
customers
courteously

we can supply what our customers are looking for, we utilize individualized "store
Trustworthy

recipes*" to ensure the right mix of merchandise for the neighborhood.
To provide enjoyable customer experiences and ensure that neighbors welcome our presence, we keep our stores and their surroundings immaculately

Safe

Quality products

clean, and in response to customer feedback, we use conduct manuals to promote
the provision of courteous, heartfelt customer service.
We conduct seminars for franchise stores and training for FC owners and store
crews to promote the practice of the Three Challenge Practices throughout the
LAWSON organization. In fiscal 2010, we will make even greater use of PRiSM,

Keeping
storesandsurrounding
areas clean

Healthy

Delicious

Convenient locations

Merchandise
assortments
tailored to local
customer needs

Individually
tailoredstoresour next-generation IT system to promote customer-driven merchandise assortment and ordering process innovation. PRiSM will enable precision ordering and enhance productlineup, hospitality, and other aspects of customer service.
Note: Store recipe: a tool for enabling franchise owners and store managers to analyze information regarding theirneighborhoods, and use it to select merchandise that is better matched to their particular neighborhoods.

Quality Products
Our headquarters works hand-in-hand with our stores to constantly improve operations andensure that the products that reach customers are safe, trustworthy, healthy and delicious.

Convenient Locations
We actively seek to open new shops in locations such as schools, hospitals, post offices, subway andtrain stations, airports and expressway parking areas, tailoring stores to the nature of the location
to best meet customer needs.

36

Tokyo Women's Medical University Hospital
NATURAL LAWSON Store

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleKeeping Customers Satisfied●Customer Feedback Structure

Customer Feedback Structure
The LAWSON Customer Center is dedicated to channeling customer enquiries
and feedback to appropriate sections for prompt response, and to sharing any
issues with all employees through the company intranet and other means to

Replying tocustomers

Customer feedback

Stores/departments

make any necessary improvements. Feedback is used to improve customer

Explanation of
improvements, etc.

LAWSON Customer Center

SVs/company sections

satisfaction through developing store quality, new products, and new services.
Reporting at
department leader
meetings

Customer feedback
structure on Intranet

Sharing feedback with headquarters

Feedback Received by the LAWSON Customer Center●Customer Feedback Numbers(No. of calls)

As the number of our services has grown, so has the volume of feedback received each year by the

50,00042,954

Customer Center, but this trend ended in fiscal 2009, with volume dropping to 90% that of fiscal
2008. As in the past, the most frequent type of feedback in fiscal 2009, accounting for 47.6%,
concerned store operations. A full 89% of this feedback pertained to customer service, showingthat we still need to work hard at improving our serving of customers.
We also received considerable feedback on environmental topics, and also an increasing

39,57340,00038,68334,36330,00020,000

number of improvement requests regarding noise, litter and smoking by customers aroundashtrays placed outside our stores. We will continue to share feedback across our organization to
implement further improvements.

10,000
0
2006

2007

2008

2009
(FY)

●Fiscal 2009 Customer Feedback
Breakdown

Making Improvements Based on Customer Feedback
When the Ponta multi-partner shopping points program waslaunched in March 2010, we received a lot of enquiries from

Opinions and otherenquiries
45.7%

customers regarding usage of Ponta cards and points, andabout the other companies participating in the program. To
use the card we've used up to now?", we beefed up checkout
counter displays and in-store announcements to better informcustomers.

Informing customers about
Ponta cards at checkout
counters

Customers' views and questions change frequently in response to the launching of newservices and changes in society at large. We do our utmost to resolve any issues that crop up,
and share information between sections so as to implement necessary measures prior to theintroduction of new services.

37

Store

Total
operations
38,683call 47.6%

address the most frequently asked question, namely "Can we

Products and services

Other 1.1%

5.6%

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleProviding Safe, Healthy Products
Providing customers with safe products that contribute to their health is a major responsibility of LAWSON,
and we place maximum priority on food safety in all processes of product development, manufacture, and sale.

Ensuring Customer Safety and Health
Concerns about food safety have risen dramatically in recent years. One of our most important
responsibilities at LAWSON is to provide safe food products that address health requirements. Our
headquarters works hand-in-hand with stores to ensure that all of our food products are safe, healthyand delicious.

Safety and Health Initiatives
Offering Safe Products
LAWSON's products are subjected to thorough quality control procedures in compliance withenvironmental and hygiene regulations. Our stringent policies at all stages of productdevelopment, production, and sales ensure that customers can purchase our products without any
safety concerns. We are doing our utmost to minimize food additives, and use no artificial
colorings and preservatives in original LAWSON products.*
In addition to mandatory information such as product name, use-by date, ingredients andallergy warnings, we voluntarily display calories per serving and other nutritional data on original
LAWSON product labels. We prepare specifications for each product, and take accurate records ofsuppliers, preparation methods and any food additives included for each ingredient, reflecting thisinformation in the ingredients section of the label. Our Quality Control Dept. also carries out
stringent checks on the content of product labels, and further checks are carried by external
specialists and at the production stage, ensuring that product labels have been double- or
triple-checked for accuracy before reaching the consumer.
Note: Boxed lunches, rice balls, sushi, bread snacks, salads, readymade noodles, pasta which has LAWSON's
trademark on the price tag. Fast foods cooked within each store are excluded.

Offering products focused on health
Customer health is becoming an increasingly important issue, and LAWSON pays attention toingredient quality, nutritional balance and the inclusion of often overlooked vegetable content
when developing products. To address growing customer interest in health, we are expanding ourhealth-conscious product lineup for NATURAL LAWSON stores, and sell some products originallydeveloped for NATURAL LAWSON in conventional LAWSON stores too.

●LAWSON's Approach to Safety and Health● Main Items Displayed on Product Labels
Use-By Date

Offer
healthy
products.

●Select ingredients with care.
●Pay attention to nutritional balance in menus.
●Include often-overlooked vegetable content.

The period in which the
product may be eaten withconfidence

Packaging Information
Packaging material
information to facilitate
sorting for recycling anddisposal

Ingredients
Ingredients displayed in theorder of highest content by
weightOffer
safe products.

A NATURAL LAWSON boxed lunch featuring over 20
ingredients with an emphasis on lots of different
vegetables rather than just meat items (no longer on sale)●Eliminate use of preservatives and artificial
coloring.
●Practice strict freshness, temperature andhygiene management.

Nutritional Information
Calories per serving,protein, fat, carbo-hydrates
and sodium content

Food Additives
Displayed as prescribed by
the Food Sanitation Act

Allergens
Seven items required bylaw and 18 items displayed
voluntarily

38

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleProviding Safe, Healthy Products

Quality Management of Ingredient Procurement, Manufacture, and SaleManaging the Quality of the Premium Roll Cake LineThe Uchi Café SWEETS series is a premium series developed by LAWSON to address customer desire
for something a little special. We take various safety, hygiene and quality management measures atboth production plants and stores to ensure that customers can always enjoy Premium Roll Cakes
and other sweets in the series at their very best.

■ Selecting Ingredients
We have established a special section responsible for procuring and checking ingredients.
Checks are conducted not only on new suppliers, but also periodically on existing suppliers.
For example, for our Premium Roll Cakes, we use Takaragasa brand flour that is favoredby specialist cake bakers, and a blend of three creams from Hokkaido fresh milk.

■ Procuring Quality Fresh Milk
Hokkaido is ideal dairy country, but to obtain even higher quality fresh milk, our contract
dairy farmers apply fertilizer to pastures in a planned way based on soil analyses to grow top
quality grass, with any nutrients still not present in sufficient quantities being added to feed.

Uchi Café SWEETS Premium Roll Cakes first went on salein September 2009, and in the subsequent six months,
cumulative sales of the Roll Cake series topped 22
million cakes.

They also encourage as much grazing as possible to reduce the stress of cows, and have
fitted cowsheds with ventilation fans to ensure a constant stream of fresh air. Collected milk
is analyzed every day, and data is managed on an individual cow basis so as to ensure astable supply of the highest quality milk.
Our contract dairy farmers are also planting deciduous trees on their own land aroundpastures to help conserve the ecosystem.

■ Product Development
We do a document review when the product specification has been fixed, and then checksafety by doing trial production runs using actual production lines.
Livestock management designed to reduce stress among
the cows■ Product Manufacture
See P.40 for further information.

■ Product Delivery
Product sorting, packing and other loading tasks are carried out efficiently according to fixed
procedures to comply with designated temperatures and times. Delivery trucks are equippedwith thermometers, and storage conditions are monitored constantly.

■ Sale at Stores
Any deterioration in product quality is prevented by display case temperature checks fourtimes a day. We also ensure meticulous management of temperature and freshness byhaving our supervisors carry out periodical hygiene checks, and by using a third-party
organization to conduct once-yearly spot checks of fast foods and other products.

39

Caring for Our
PlanetEnriching theCommunity

Motivating
People■Product Manufacture
Cooking temperature, time and other manufacturing process parameters are precisely stipulated to ensure that products adhere to standards.
Plant interiors are kept spotlessly clean at all times, and employees are required to scrub and disinfect their hands thoroughly prior to entering
plants to prevent the introduction of foreign matter.
Metal detectors and X-ray scanners are also used to check for foreign bodies, and other checks are conducted at various stages to confirm
adherence to specified quantities.

(1) Hygiene management(2) Whipped cream production(3) Sponge baking

Employees use lint rollers and air
shower to remove loose hair andlint, and also scrub and disinfecttheir hands thoroughly prior toentering plants.

Fresh cream is whipped in a special
room designed to prevent the spread ofgerms. The cream is whipped at a
slower-than-normal speed to give it alighter, milkier texture.

Checks are run to ensure that the
sponge is baked according toprecisely stipulated cooking temperature and time to keep it moist.

(6) Metal detector check(5) Manual filling with whippedcream(4) Sponge cutting

The cakes are passed through a metal
detector to check for foreign bodies.
They are also checked for weight,
appearance and correct labeling.

The sponge case is filled manuallywith whipped cream (at certain
plants).

The sponge is cut and placed incontainers. Because of its softness
and moistness, it breaks easily andneeds to be handled with care.

From the Frontline: Business Partner

Yasuo Hayashi

Manager, Product Department,
Cosmo Foods, Ltd.

Development of a Completely New Kind of
Product through Trial and Error

Cosmo Foods makes desserts for supply to 2,500 stores in the Kanto Koshin region, and was involved right from thestart in the development of Premium Roll Cakes. To create a completely new kind of product, we conducted researchon all aspects from shaping the sponge and blending the cream, arriving at the final product through a process of
repeated trial and error. We found that shaping the soft, moist sponge was so difficult that at first we could produce
only 1,000 cakes an hour even with the help of all of the plant's employees, but the product has become such a hit thatit has been introduced on TV and other media, and is a source of pride for all the employees involved in its production.

Premium Roll Cake Wins Gold Award at the 2010 Monde Selection
Premium Whipped Cream Roll won a gold award in the confectionery category at the 2010 Monde Selection* competition
held in Europe to recognize fine foods from around the world. This first-time entry was the first original chilled convenience
store dessert from Japan ever to receive a Monde Selection* award. The award paid recognition to stringent quality
management in the production process and use of only the finest ingredients such as cream from fresh Hokkaido milk anda select brand of flour.
Note: Founded in 1961, Monde Selection is a globally renowned food and beverage organization whose awards pay recognition to outstanding
products from around the world. The quality, taste and other aspects of products presented are evaluated impartially by juries of
independent experts.

40Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleTogether with Franchise Owners and Store Crews
We support store operation by franchise owners in various ways,
and put a lot of weight on exchanging views with those owners, store managers
and store crews in our ongoing efforts to improve our products and services.

Supporting Owners and Crews
LAWSON and Franchise Owners are Partners in Business
LAWSON and franchise owners are equal partners in business, sharing the same philosophy and targets,
and working together to achieve them in a mutually beneficial relationship of profit sharing.

Local
communities

Business
partnership

Headquarters

Franchised
storesRole of the Franchise Owners

Role of Headquarters● Management of stores and products● Product development and product information

Orders, sales promotions, cleanliness, safety and● Information technology systems

convenience, etc.

● Logistics systems● Advertising and publicity for sales promotions● Management of store crews
Store crew recruitment, education, management, etc.
● Management of sales and expenses● Store management training by supervisors● Education and training

Sales and expense control, etc.

● Accounting service● Loan of business equipment and fixtures

Accounting Service
Accounting is carried out by headquarters,
which allows franchise owners to concentrate on managing.

Minimum Guarantee
Headquarters guarantees* a minimum annual
income for franchisees.
Note: Store profit after deduction of costs and operating
expenses is not guaranteed.

Sharing Philosophy and Goals
The LAWSON Franchise System allows franchise owners and headquarters to share the samephilosophy and goals, and to work together to achieve them, which improves customer satisfactionand enables profit sharing. Franchise owners are independent managers responsible for all aspects
of operations, including management of sales, procurement and expenses. Headquarters provides
various support services to enable franchise owners to concentrate on store operation.
Serving as a bridge between franchise owners and headquarters, supervisors are able tosupport store operations from a customer perspective, providing information on the latest producttrends and changes in the business environment, analyzing sales and customer data, conducting
market research on areas where franchises operate and offering suggestions regarding revenues
and income.
We also hold a LAWSON Seminar every year at 8 locations nationwide, where we explain ourmanagement policy and product trends, and provide business expertise and analysis of information
on a per store basis. We hope that sharing such information with our franchise owners on asustained basis will help ensure that our stores are always valued by the local communities in which
they operate.

41

Owner Support Program
When franchise owners need to be absent
from their stores, this program allows
them peace of mind to take that time off.

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleManagement and Franchise Owners Meetings
We hold regional meetings for LAWSON management and franchise owners to candidly discuss
store management. In fiscal 2009, 34 such meetings were held to discuss issues regarding
products, sales promotions and food waste recycling.

Regional get-together

CEO Direct LineFranchise owners, store managers and crew members can use our CEO Direct Line to express theiropinions and ideas directly to the CEO, who personally responds to each message. In fiscal 2009,
the CEO Direct Line received 328 messages offering ideas for improving products and services andsuggestions for sales promotions.

CEO Direct Line receives messages from franchiseowners, store managers and crew members

Mystery Shopper Program
To improve store operations, we have implemented a Mystery Shopper program that uses third
party undercover researchers to inspect stores from a customer’s perspective and objectively
evaluate them on the quality of their merchandise assortments, service and cleanliness. Feedback
is provided via supervisors to franchise owners who use it to strengthen their store operating
capabilities. Through a series of gradual improvements since its introduction, the program is
producing noticeable results.

Franchise Owner Welfare Association
We want our franchise owners to be happy in their work, and have created a Franchise Owner
Welfare Association to expand and improve welfare for franchise owners and their families, store
managers and crew members. Aimed at providing quality time, health and peace of mind, theWelfare Association offers a wide variety of benefits, including assistance in covering obligatory
congratulatory and condolence payments, sports club membership, travel expenses, distancelearning, health management and loan interest.

42

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleTogether with Franchise Owners and Store Crews

Expanding Training and Support Programs
LAWSON headquarters has established training and support programs to achieve trouble-free store
management and customer satisfaction.
We hold a Basic Management Course (BMC) to provide prospective owners with basic
knowledge in store management prior to opening their stores. After opening, we provide further
training of various kinds at our training centers.
Other support includes a Franchise Owner Support program for sending headquarters
employees to fill in for franchise owners when they take a holiday, and a Store Support Desk thatfields questions from stores about store operation 24 hours a day. These systems enable franchiseowners to operate stores confident in the knowledge that they can depend on headquarters backup
at any time.

Training seminar at a LAWSON Training Center

We also provide regular information on store management in the form of Pal, our monthly
in-house communication magazine, and Making Your Store Buzz, a monthly publication packed
with information on sales and operation strategies.

Supporting Crew Recruitment and Loyalty
To respond to the rapidly changing employment market, LAWSON provides a range of support forrecruiting crews and fostering their loyalty. We have established a website dedicated to recruiting
crews. Prospective crew members can input desired location and other information to instantly findstores meeting their requirements, and stores too can post photos as well as job information tobetter attract crew members. The website is rated highly by users as a means of linking prospective
crew members with stores looking for staff.
We also have a Crew Leader program and a Crew Rank-Up program to pay recognition to hard
work, and a Store Setup Support program for crew leaders who are eager to become franchiseowners themselves. We also provide crews with preferential advanced ticket purchase for plays,

Crew recruitment website

sports and other events.

From the Frontline: Franchise Owner
Developing an Organizational
Structure to Manage 100 Stores

Yuichi Iwasaki, President, Iwasaki Kikaku Y.K.
Owner of seven stores including Hachioji Koyasu store

I first became involved in store management at the age of 19 when I took on the job of store
manager at my father’s store. Other stores opened in competition over the years but I was really
happy when after ten years I was able to open my second store. Then I attended a
Next-Generation Franchise Owner Seminar and was absolutely amazed when listening to afranchise owner who was managing a chain of stores. It was that positive exchange of ideas withother owners that encouraged me to start up a study group to discuss success stories, personnel
training and other things.
I love LAWSON. I believe my mission is to create stores that the customers love as well, and mygoal is to manage a chain of 100 stores. Because the most important thing to achieve that goal is
the organizational structure, I am building a set of rules for such things as personnel development
and evaluation systems. In the future, there will be more franchise owners like me who manage
store chains, so I would be grateful for a system of education for store managers and new
employees as well.

43

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleNurturing Employee Enthusiasm
Stores flourish when their employees work with enthusiasm to drive growth.
Through the enhancement of educational programs, workplace environments and internal communications,
LAWSON aims to nurture a corporate culture in which all employees can realize their full potential
and feel free to voice candid opinions.

Becoming an Easy Place to Work
Improving Internal Communications
System to Experience other LAWSON Business Units
To enhance mutual understanding between headquarters and the front line, LAWSON instituted asystem for employees to experience what goes on at other business units from fiscal 2008 as partof our Get a Lift with LAWSON! Project.* In fiscal 2009, to improve the linkage between productdevelopment and sales, employees who work for regional offices where supervisors are stationed
attended product menu meetings, and headquarters staff spent a day working at local stores. Ten
regional office managers also participated in a study tour of other regional offices to help theregional offices learn from each other. This tour was well received, with all the participants
indicating that the event was “completely satisfactory” in a follow-up questionnaire.
Trial participation in product menu meeting

Making Good Use of the Company Intranet
In fiscal 2009, LAWSON launched a portal site for employees that is being used by the Get a Liftwith LAWSON! Project to enhance communications and improve work efficiency by centralizing
information. In addition to presenting the latest information in the form of the President's
message, blog entries, in-house magazine, and banners, the site hosts a range of communities
from forums for discussing work to hobby circles and groups of employees hired in the same year."
Note: This is a project to drive implementation of the LAWSON Genki Plan, initiated in fiscal 2008 to breathe newlife into local communities in these difficult times. The Get a Lift with LAWSON! Project activities are primarily
aimed at boosting employee motivation.

In-house magazine on the portal siteSports and Recreation
In fiscal 2009, LAWSON held a national softball tournament as a follow-up to the qualifying
matches held at branches and headquarters the previous year. Such activities help to promotesmooth operations by enabling participants to see different aspects of each other outside theworkplace, and to mix with employees from other business units whom they normally do not meet.
In a survey conducted after the tournament, 91 percent of the respondents signaled that they
welcome communications through sports, responding that they would like to see further suchinitiatives.

National Softball Tournament at Nagoya Dome

Employee Attitude Surveys
LAWSON conducts employee attitude surveys each year to obtain feedback for making workplace●Employee Attitude Survey Results

improvements. The fiscal 2009 survey results surpassed the fiscal 2007 and fiscal 2008 figures in4

all indices, with awareness of LAWSON values (our corporate philosophy) earning a particularlyhigh score.
About half the respondents gave constructive and positive responses in the open question

Combinedscore

3
Considerate attitude2

section at the end of the survey asking them to offer suggestions for the company or describe what
they like about their work.

FY2007
FY2008FY2009The survey, however, also revealed outstanding issues such as the low level of motivation at
headquarters overall and the long working hours of supervisors.
Determinationto achieve goals

44

Awareness of
LAWSON values

Determination
to take on challenges

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleNurturing Employee Enthusiasm

Improving Support for Employees Raising Children:
Next-Generation Certification Mark “Kurumin”
We earned the Kurumin mark from the Tokyo Labor Bureau in recognition of our efforts to support
childrearing as a company that upholds both work and family life, based on the Law for Measures
to Support the Development of the Next Generation.
We will continue with our efforts to enable our employees to achieve an ideal balance
between work and family life, based on our newly compiled General Business Owner Action Plan(regarding measures to support the development of the next generation).

Childcare Support Policy Menu
Reduced working hours for childcare*, shorter working weeks*, leave system*,
telecommuting*, product development manager work location choice*, babysitting service
support, loan of PCs to employees on childcare leave, transfer to accompany spouse

Next-Generation Certification Mark “Kurumin”

Note: Until the child finishes third grade

Measures implemented based on the FY2007-FY2009 Action Plany Improved environment for providing company information to employees on childcare leave
y Extended the period for taking reduced working hours for childcarey Expanded the number of employees using workplace nursery facilities on national holidays
y Introduced a telecommuting system for employees raising children
y Improved the re-employment system (making it easier to use)

Third General Business Owner Action Plan (Feb. 1, 2010 – Feb. 28, 2012)
Objective 1: Provide information to employees who work while raising children, and promote
the use of consultation tools.

Headquarters nursery on a national holiday<Measures> Notify employees about LAWSON intranet information-exchange tools and health consultation offices.
Objective 2: Improve the environment so that employees who take childcare leave can easily return to work.
<Measures> Prepare company rules on communicating with employees while they are on leave, methods for assignment after returning towork, and other items so that employees can take childcare leave without concern.
Objective 3: Revise the telecommuting rules to make the telecommuting system easier to use.
<Measures> Revise the rules based on the results of interviews with users and members of their business units.
Objective 4: Implement measures to reduce overtime.
<Measures> Reduce overtime by improving systems to improve work efficiency.

From the Frontline: Employee“I Want to Keep Working as a Specialist.”

Chikako Tamori

Accounting Advisor*, East Kanto Management Center

Note: Accounting Advisor is an internal company credential for employees with expert knowledge
regarding store accounting processes

At the East Kanto Management Center there are four employees, including myself, who are making useof the system for reducing working hours for childcare. I was having a hard time because the public day
care centers are closed on holidays, and there was no place to care for my child. Our office has manyfemale employees, and they also have childcare needs. For the sake of the future too, I want everyone tobe able to go to work without concern, and so I lobbied the personnel department to arrange childcare
inside the Management Center on national holidays, and this was made available from May 2009. Since
this service began, employees no longer have to run about trying to arrange childcare, and they're happy
because the nursery is right here so they can go to their children right away if anything happens.
Children need their parents most when they are infants. There are various complications to raising achild while working, but I wanted to keep on working for my own life as well. I'm very grateful for the
support I am receiving, and want to continue receiving it so that I can further improve my skills as anaccounting specialist.

45

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleEmployee Health Management
Workplace stress is an important issue in employee health management that

●Employee Composition

LAWSON addressed in fiscal 2009 with the introduction of a Web-based

FY2007

mental health stress check that employees can use for self-evaluation. We

Employees (consolidated)urge employees to use the check twice each year to monitor and manage

Male/female

their mental health and take preventive measures against depression and

Employees (non-consolidated)other conditions.

Male/female

Hiring Foreign Students
We consider our employees to be our greatest asset, and seek to create anorganization that makes the most of their individuality and enables them toFY2008FY2009

3,548

5,186

5,236

3,202/346

4,517/669

4,493/743

3,316

3,459

3,452

2,979/337

3,083/376

3,061/391

Women in managerial positions (%)

4.7

1.3

2.3

Employees with disabilities (%)

1.4

1.7

1.8

Employees on maternity leave

17

4

18

Employees taking childcare leave

21

25

24

Employees working reduced hours forchildcare

18

20

16

employees, bringing the total number employed to 63 as of June 2010. We

Employees taking leave as caregivers

1

2

2

will continue to breathe new life into our workplaces through multicultural

Insured employees health checkup ratio

89.3

90.8

88.2

hiring.

Average age

37.6

37.8

38.3

Average length of employment (years)

11.2

10.9

11.4

Employee turnover (%)

9.2

6.6

4.0

Workplace accidents

47

67

66

realize their full potential. In fiscal 2009, we hired 17 foreign students as new“LAWSON University” Training Program
LAWSON proactively invests in employee training to instill our corporate philosophy and priority on customers, and create an organization of
ambitious professionals with outstanding work skills.
Under our original LAWSON University training program, we provide a range of training courses according to goal, occupation and position at
the LAWSON Learning Center (LLC) near our headquarters. We have also deployed an e-learning system for employees to take their required
training in their own time irrespective of location.

●LAWSON University Structure●Store launch training●Crew leader training●Training for existing store managers

ES/CS* Promotion
Nurturing a customer-oriented mindset
Creating satisfying workplaces●Employee attitude surveys●Customer satisfaction lectures

Corporate philosophy training
Awareness of corporate philosophy●Corporate philosophy training I●Corporate philosophy training II●Corporate philosophy training III

Self-development
Provision of tool for self-development●Schooling and correspondence courses●External seminars●Magazine subscriptions partially paid by the company

Management training
Training future leaders●Leader training I ●Leader training II (corporate finance)●Leader training III●New manager training ●New employee training●New assistant manager training
Note: This chart presents representative training courses.
Job rotation and evaluation*ES: employee satisfaction; CS: customer satisfaction

Position-specific skills
Skills required for different positions

46

Employee training

Compliance/Environment
Essential knowledge for LAWSON employees●Store development training ●Merchandise development training●Assistant supervisor training●Store employee training ●Training for promotion to store manager●Compliance and risk management training ●Environmental training●Job-specific compliance training●Position-specific compliance training●Compliance questionnaire

LAWSON Learning Center

Job skills
Gaining required job-specific skills

Training Center
Training for franchises

E-learning system

LAWSON University

Franchise training
Improving store management skills

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleTogether with Our Business Partners and Shareholders
At LAWSON, we do our utmost to build trust with our business partners, since their cooperation is absolutely essential
to providing our customers with safe products. We also aspire to respond to the trust and expectations of ourshareholders and investors through proactive communication and timely, appropriate and impartial disclosure of
information as we strive to boost our corporate value and grow over the medium to long term.

Maintaining Fair Relations with Our Business Partners
Promoting Fair Transactions
To build trust with business partners, the LAWSON Code of Ethics calls for fair and transparent
transactions conducted in good faith. We educate our merchandising personnel on the importanceof not taking advantage of superior negotiating positions through e-learning for all employees andtraining sessions when employees are promoted to assistant merchandising developer and store
development assistant positions.
We conduct an annual questionnaire survey of our business partners in such fields as productdelivery and store construction. While the results of the 16th survey conducted in July 2009 weregood overall, there were also some hard-hitting opinions concerning product transactions. The
survey results are used each year to identify issues, provide feedback at general meetings andconduct appropriate training for each division. We also provide feedback to the business partners

Feedback at a general meeting●Business Partners Questionnaire Survey
Results
No coercion or imposed conditions in transactions
3
2
1
0
-1
-2
-3

who respond to our questionnaire. We take the opinions of our business partners seriously, anduse them to gain a broad perspective from which to revise and enhance our compliance structure.
We also established the LAWSON Group Purchasing Policy in September 2010 to address thefact that our business partners’ business risks have become our own business risks as a result ofheightened consumer interest in product origin and the globalization of materials procurement.
This Group Purchasing Policy is helping us to better respond to our customers’ desire to purchasegoods and services that were created in an appropriate environment.

No unfair tradepractices as alarge-scale retailer

Treatment bystore personnel

Appropriate Information Disclosure to Shareholders
LAWSON Wins Prize at 14th IR Prime Business Awards
LAWSON was presented with a Best IR Award at the 14th IR Prime Business Awards by the Japan
Investor Relations Association (JIRA). This award pays recognition to companies that demonstrate
a deep understanding of investor relations and actively communicate with investors. The Best IRAward was given to 10 companies chosen from a pool of 355 candidates by a selection committeeof analysts, investors and media representatives who scrutinized the companies’ IR activities,
including their responses to a written survey. LAWSON was chosen in part because of the efforts
of top management to actively communicate with investors.
We will continue to actively provide investors with accurate and impartial IR disclosures so as
to be properly judged by the stock market.

■Reasons for LAWSON’s Best IR Award● LAWSON’s top management actively communicates with investors.
● LAWSON has a clear growth strategy, ROE-oriented management, and concrete goals.
● LAWSON is responding to both short-term and long-term aspects of the harsh businessenvironment.
● LAWSON’s IR Division responds politely and fully to questions from analysts and others
despite its limited number of personnel.
● LAWSON’s IR website presents stock information that is of great interest to individual
investors, summarizes LAWSON’s policy on return to shareholders, and is easy to use.
Awards Ceremony

47

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleLAWSON’s Organization
We firmly believe in the importance of enhancing the soundness and transparency of our management and further
developing our corporate governance system to meet the expectations and earn the constant trust of our customers,
franchise owners, store crews, business partners, shareholders and other investors.

LAWSON Group Corporate Conduct Charter
1. Basic Declaration
1

We believe that fulfilling our corporate social responsibilities while responding to the requests of LAWSON Group2 stakeholders will lead to theenhanced corporate value of the LAWSON Group. With a solid understanding of the Charter’s contents, we pledge to always act sincerely andconsiderately with a high sense of corporate ethics while adhering to all laws.
1. “We” refers to all directors, officers, regular employees, temporary employees and dispatched employees of the LAWSON Group (hereafter regular employees, temporary employees anddispatched employees are collectively referred to as “employees.”)
2. “The LAWSON Group” refers to LAWSON, INC. and companies within the scope of consolidation

2. Basic Stance
1. We shall derive happiness from providing all customers with the highest levels of satisfaction, and will continually act with consideration
toward customers.
2. We shall support LAWSON franchise stores, which represent our largest partner.
3. We shall adhere to all laws and contracts with every business partner and carry out fair and transparent business transactions.
4. We shall respect the human rights of all employees without discrimination.
5. We shall disclose necessary information to all shareholders and investors to enable them to learn more about the LAWSON Group.
6. We shall take an active approach to environmental protection and proactively carry out social contribution activities as a member of the local
community.
7. We shall maintain no ties with anti-social organizations and maintain healthy and proper relations with elected officials and public employees.
8. We shall adhere to internal regulations and various rules while undertaking our daily work to ensure that we do not lose any valuable assetsof the LAWSON Group.

Corporate Governance and Internal Controls●LAWSON Internal Control System

Board of Directors & Executive Officer System
As of May 26, 2010, LAWSON had 7 directors, including 3 outside directors. The
Board of Directors intentionally has few members to facilitate swift management

Internal control audits
Board of
Regular meetings
Corporate Auditors
Reports on important issues

Compliance and Risk
Management Committee

Mutualunderstanding /information exchange

extraordinary meetings. The rate of attendance at these meetings by outside

President and CEO

Corporate Audit Officedecisions. In fiscal 2009, the Board of Directors met 16 times, including 5

Board of Directors

LAWSON employs an executive officer system to accelerate businessexecution through the delegation of authority.

General managers ofdivisions

Department
Managers●Ordinary precautions

duties by directors, beginning with the conditions of internal controls systems,
by attending Board of Directors and other important meetings, providing fairand impartial opinions, and reviewing important documents. In principle, theBoard of Corporate Auditors meets on a monthly basis. During fiscal 2009, theBoard of Corporate Auditors met 16 times, including 5 extraordinary meetings.
The rate of attendance of outside auditors was 98% at Board of Corporate
Auditors meetings and 88% at Board of Directors meetings.
LAWSON has also established the Internal Audit Office as an independentinternal auditing unit to strengthen auditing functions from the viewpoints ofcompliance with laws and regulations and social responsibility. This officemonitors the propriety of our business operations on an ongoing basis, including
risk management and legal compliance.

48

Affiliated companies

auditors. The Board of Corporate Auditors monitors and verifies the execution ofInternal Audit
OfficeInternal controls
monitoring
Close communications
Basicmanagement
policyBranch Managers

Control Monitoring●Emergency system

LAWSON’s Board of Corporate Auditors has 4 members, including 3 outside

Compliance Officers

Control Monitoring

Department
Managers

Control Monitoring
Managers

Managers

Managers

Control Monitoring
Person inchargeNote: BCP: Business Continuity Plan

Person inchargePerson inchargePerson inchargeGuidance/
supportFranchised stores

Audit System

BCP* Subcommittee
Crime and Accident
Prevention Subcommittee

Compliance andRisk Control Office

CCO

Food Safety and Hygiene
Management Subcommittee

directors was 77%.

Set internal
controls system policy

Caring for Our
PlanetLAWSON’s Organization

Compensation System
The Compensation Committee met four times in fiscal 2009 to discuss topics such as how todetermine director and executive officer compensation, and reported the conclusions of thesemeetings to the Board of Directors. A multi-source assessment system for determining
management compensation was introduced in fiscal 2003, and is referred to when carrying out
personnel assessments. LAWSON also introduced a half-year salary system for employees inmanagerial positions above a certain rank from fiscal 2010 to establish stronger linkage between
work results and corporate performance.

Internal Control System
LAWSON faces wide-ranging risks as a company involved in many different business areas
centered on convenience stores, with stores providing diverse products and services in every
prefecture of Japan.
We believe that the establishment and operation of a system of internal controls is of vital
importance for ensuring sound and sustained corporate development. We review our basic policy
each year in accordance with updating requirements and changes in management environment tomaintain an effective and rational internal control system. In fiscal 2010, we added risk
management provisions for addressing the kind of extensive damages that the company would
suffer in the event of a large-scale natural disaster or pandemic by preparing an appropriate
business continuity plan and strengthening our business continuity management system
accordingly. LAWSON is now implementing the Fiscal 2010 Basic Policy for Maintaining theInternal Control System, which was approved by the Board of Directors in February 2010.

Regarding Misconduct by Former Directors of LAWSON ENTERMEDIA, INC.
LAWSON wishes to offer its sincerest apologies for any inconvenience caused to shareholders andinvestors and all other stakeholders for recording approximately 14.5 billion yen in extraordinary
losses in fiscal 2008 and fiscal 2009 combined, which stemmed from the misappropriation of funds
by two former directors of LAWSON consolidated subsidiary LAWSON ENTERMEDIA, INC. (LEM).
LEM is implementing the following preventative measures based on the report of the third
party investigating committee.
■ Enhancement of legal compliance■ Recognition and prevention of transaction risks■ Emphasizing an organizational over individual approach■ Enhanced management of the Sales Division■ Stronger supervision■ Encourage use of internal whistleblower system■ Monitoring of preventative measure implementation
When this incident was discovered, LAWSON conducted inspections of accounting at Group
companies as an emergency measure, confirming that no other misappropriation of funds had
occurred. Looking ahead, the LAWSON Group as a whole will rigorously enforce risk management
in order to prevent corporate misconduct from recurring, with two main measures — dispersion of
authority, and a stronger risk management system.

49

Enriching theCommunity

Motivating
PeopleCaring for Our
PlanetEnriching theCommunity

Motivating
PeopleInitiatives to Promote Compliance
Creating Structures for Raising Awareness of Compliance
LAWSON has appointed a Chief Compliance Officer (CCO), who has overall responsibility for thepromotion of compliance and management of risks. The CCO leads the Compliance and Risk
Control Office, which has its own full-time staff. Compliance officers are also appointed in eachheadquarters division and at the seven branch offices in Japan.
With the aim of ensuring compliance with laws and regulations and effective risk management
measures, the CCO convenes meetings of the Compliance and Risk Management Committee,
comprised of all Compliances Officers, once a month to identify current problems and to build andimplement systems in order to preempt misconduct and other problematic incidents.
Compliance officers promote compliance and risk management in their own sections, provide

Affiliated company compliance officer meeting

related education, and propose improvements. Compliance and risk management officers are also
appointed at affiliated companies, and meetings of affiliated company compliance officers are held
to share information and knowledge throughout the LAWSON Group.

Ensuring Effective Operation of Compliance Systems
We have developed compliance-related rules and conducts regular compliance training, including
e-learning and group training by job type, to ensure that we fulfill our corporate responsibility tocomply with laws and regulations and respect social standards and morals at all times. In March
2008, we formulated the LAWSON Group Corporate Conduct Charter, and revised the LAWSONCode of Ethics. We have issued the LAWSON Group C&R Handbook, which summarizes thesestandards of conduct so that we can maintain and enhance employee awareness of compliance

Compliance and risk management training session

through work. We also conduct attitude surveys covering all employees, as well as surveys forbusiness partners (see P.47 for further information).
For our internal reporting system, we have set up hotlines both inside and outside thecompany (at a law firm) for employees to report and consult on various matters, to facilitate early
discovery of internal problems and the swift implementation of necessary remedies. In fiscal 2009,as part of measures to strengthen compliance at franchised stores, we prepared a checklist for
franchise owners/ store managers and store crews to check rules and laws that must be compliedwith when store crew employment contracts are renewed every two months. To avert the risk ofcomputer virus infection, we strengthened the checks when using outside web sites, launched a
website management task force, and otherwise reinforced our website management structure.

Compliance Survey
We perform compliance surveys covering all company personnel once a year to gain an understanding of the degree to which our compliancesystem is being upheld. The results of our sixth survey, conducted in fiscal 2009, showed improvements in awareness of our corporate code of
ethics and in policies being implemented as a company, such as the activities of the compliance officers appointed for each business unit. While
the surveys indicate rising awareness of compliance and risk management policies, company rules, and internal systems, for the same reason theperceived gap between policies and actual conditions is becoming conspicuous (especially among clerical and store employees).
We will endeavor to address this situation and create a compliance structure with greater muscle by identifying problems through easy-to-use
hotlines and stronger collaboration between hotline handlers, and by boosting compliance awareness among managers. We will also continue
conducting surveys and otherwise work to further improve our compliance performance.

50

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleLAWSON’s Organization

Creating a Quick-Response Risk Management Structure
Enhancing Structure to Address New Risks
LAWSON focuses on three major risk areas from the corporate ethics perspective: product quality
and hygiene management (see P.38-40 regarding quality management), information security, anddisaster response. We have a system in place for the swift resolution of problems in the event ofan emergency, and the Compliance and Risk Management Committee and three subcommittees
convene in normal times to prevent the emergence of risks.
In the event of a serious risk emerging, we set up an emergency risk management committee
to contain the risk and minimize damage. After resolution of the situation, we analyze causes to

BCP guidelines

ensure restoration of trust and prevent recurrence, and seek to further improve our risk
management capabilities by providing feedback on our findings to employees through training.
We have also prepared a Business Continuity Plan (BCP) and are working to improve our business
continuity management system to minimize business interruptions and other damages that we arelikely to suffer in the event of a large-scale natural disaster or pandemic.

Maintaining Lifeline Functions during Major Disasters
The LAWSON Group strives to ensure that if a major disaster strikes, its stores will continue tooperate, serving as a lifeline to affected communities. To this end, LAWSON has compiled basic
and organization-specific (district office, branch office, and headquarters) disaster responsemanuals and distributed these to each division and branch office. We have also included relevant

Practice administering first aid

parts in store manuals. In the event of a large-scale disaster, we have systems in place to establish
Disaster Response Offices and ensure quick response to disasters. We periodically review ourdisaster response manuals in light of problems or questions that may have arisen during response
training or actual disasters to ensure the ongoing operation of stores in affected areas and therapid restoration of service in stores hit by a disaster. We also conduct disaster response training
programs twice a year to ensure that all employees are fully aware of the actions expected of themin times of disaster.
In the company-wide disaster response training held in January 2010, our seven branch offices
each practiced drills for confirming the safety of employees and their families and communicatingwith headquarters using satellite phones and other means of communication in the event of anearthquake of 5-upper or stronger on the Japanese seismic intensity scale. They also practiced
transport of supplies with local authorities with which they have disaster assistance agreements.
Staff in the Headquarters Disaster Response Office practiced administering first aid, including
cardiopulmonary resuscitation and the use of automated external defibrillators.

Office security rules

Improving Information Security
The LAWSON Group has established a Personal Information Protection Policy that is also reflectedin store manuals to ensure that it is understood and put into practice. To raise awareness, we useinternal newsletters and other communication tools to describe common errors and complaints atstores and ways to resolve them. Headquarters employees use the LAWSON Office Security Rules
as their manual.
We strive to improve our information security on all fronts through measures such as regularchecking of our information management system using self-testing and internal auditing
processes, rigorous observation of rules for the use, storage and disposal of personal information,and information security training.

Store Crime Prevention Measures
To prevent crime at stores, we have created a crime prevention system and conduct various
activities including the installation of CCTV surveillance systems, deployment of anti-crime paintballs, dispatch of headquarters staff to make late-night rounds of stores, participation with local
police departments in mock robbery exercises, and adherence to the “Five Principles of Crime
Prevention.”

51

Mock robbery exercise

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleCorporate Data
Corporate Data (As of February 28, 2010)

Subsidiaries and Affiliates
Consolidated Subsidiaries(As of February 28, 2010)

Company NameLAWSON, INC.

Address

East Tower, Gate City Ohsaki, 11-2, Osaki 1-chome, Shinagawa-ku, Tokyo 141-8643, Japan

President and CEO

Takeshi Niinami

Established

April 15,1975

Capital
Number of
Employees
Business
Activities

Sale of tickets for concerts, movies, sporting andother events, mainly through Loppi multimedia
terminals located inside LAWSON stores

58,506,644,000 yen

Development of LAWSON and NATURAL LAWSON franchise chains, etc.

Consolidated Net Sales of All Stores
1,800

Note: Company merged with subsidiary i-Convenience,
Inc. on March 1, 2009 and then changed its
name from LAWSON TICKET, INC. on July20, 2009.

5,236 (Consolidated)(billions of yen)

Number of Stores1

1,362

1,387

15,000

1,559

1,415

Directly managed storesFranchised stores (No.)
Franchised stores (％) (％ )(No . o f sto res )

1,666

1,500

9 5.1
10,000

1,200
900

94 .5

9 4.9

8,3 66

8,56 4

8,58 7

7 ,958

8 ,0 93

8,14 8

100

88.6

8 7.8
9,527

9,761

8,36 2

8,66 3

80
60
40

600

5,000

300
0

4 08

4 71

43 9

2006/02

2007/02

2008/02

1,16 5

1,09 8

2009/02

2010/0 2

02006/02 2007/02 2008/02 2009/02 2010/02

20

2

0

1. Includes total of all LAWSON, NATURAL LAWSON, LAWSONSTORE100 and SHOP99 stores from February 2009
2. February 2010 includes stores operated by LAWSON Okinawa,
Inc.

Average Number of Customers/ Average Purchases
1 ,0 00

Average Daily Sales per Store

Average customers per store per day
Average purchase per person (yen)

820

813

868

868

812
585

586

6 00

589

569

New stores (thousands of yen)
All stores (thousands of yen)

600
500

8 00

585

426

480

477
429

43 6

478

50 5 51 7 464 502

4 00

200

2 00

100

0

0
2008/02

2009/02 2010/02

Store Information (As of February 28, 2010)

9,761 (996) stores in Japan*
548

Tottori
Shimane
Okayama
Hiroshima
Yamaguchi

89
87
123
140
109

Kyushu Region

Figures in brackets represent totals for LAWSON STORE100 and SHOP99
stores only
*Includes 136 stores operated by LAWSON Okinawa, Inc.

Kinki Region

Hokkaido Region

2,074（210）
Shiga
Kyoto
Osaka
Hyogo
Nara
Wakayama

518

123
245 (38)954 (136)
541 (33)
102 (3)109

Chubu Region

1,421（126）1,036
Fukuoka
Saga
Nagasaki
Kumamoto
Oita
MiyazakiKagoshima
Okinawa

339
60
85
91
136
82
107
SHANGHAI HUALIAN LAWSON
136
CO., LTD.: 300(as of December 31, 2009)

Shikoku Region

416
Tokushima
Kagawa
Ehime
Kochi

105
97
156
58

Direct operation and franchise chain managementof LAWSON STORE100 and SHOP99 stores, which
offer value products at reasonable prices, primarily
targeting housewives, the middle-aged and seniors

LAWSON ATM Networks, Inc.
Installation, operation and management of ATMs
in LAWSON stores and deposits/withdrawals,
transfers and related financial services via ATMs
outsourced from partner financial institutions

BestPractice Inc.
All activities related to conducting convenience
store surveys and proposals for improving LAWSON
storesAffiliated Companies
SHANGHAI HUALIAN LAWSON CO., LTD.

LAWSON Okinawa, Inc.
2006/02 2007/02

2006/02 2007/02 2008/02 2009/02 2010/02

Ninety-nine Plus Inc.

Development of LAWSON store chain in Shanghai,
PRC, through a joint venture with Shanghai BailianGroup Co., Ltd.

400
300

Chugoku Region

LAWSON ENTERMEDIA, INC.

NiigataToyamaIshikawa
Fukui
Yamanashi
NaganoGifu
Shizuoka
Aichi
Mie

104
111
85
96
66
133
117 (6)173 (14)446 (106)
90

52

Tohoku Region

828（32）
Aomori
Iwate
Miyagi
Akita
Yamagata
Fukushima

167
161
193 (27)14859
100 (5)

Kanto Region

2,920（628）
Ibaraki
105 (5)
Tochigi
106
Gunma
65
Saitama
374 (47)Chiba
351 (61)Tokyo
1,255 (352)Kanagawa 664 (163)

Development of LAWSON store chain in Okinawa
Prefecture through a joint venture with SAN-A
CO., LTD.

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleThird Party Comment
We have received the following third party comment on our environmental and social contribution activities.
We take such opinions to heart and act on them to improve and expand our activities.
Lecturer Ayako Takao;
Seniors Ritsuko Tajimi,
Arisa Nakazawa and Yui Sawamoto
Department of Global and Inter-cultural Studies,
Ferris University(front row l. to r.) Arisa Nakazawa, Yui Sawamoto(back row l. to r.) Ritsuko Tajimi, Ayako Takao (lecturer)

In Support of LAWSON’S Efforts to Build Neighborhood Ties and Create a Vibrant SocietyWhenasales space has been reduced to make wider aisles and children’scomprehensive cooperation agreement, our university seminar,

the

City

of

Yokohama

andLAWSONsignedplay areas, despite LAWSON being a for-profit business which

the city and LAWSON wanted to cooperate in some activity. We

must sell to survive. We felt that the store really does welcome theproposed picture book-reading events on the theme of dietarypresence of mothers with children.

education* and environmental issues, and these took place at theWe also admire the way LAWSON has enabled individual

HAPPY LAWSON Yamashita Koen store.

consumers to participate little by little in the large framework ofWorking with LAWSON completely changed my image of

CO2 offset by using card points and other systems. This approach

convenience stores, which I had thought of as an environmentallyis attracting the attention of foreign researchers as aharmful type of business that consumes vast quantities of energy

demonstration of how convenience stores, which are on the front

and generates huge amounts of trash. For example, during thelines of consumption, can help carry the burden of shifting to a

book-reading event, it seemed that while the children were having

sustainable society, and we definitely want LAWSON to continue

fun the adults who happened to drop by also listened to ourits CO2 Offset program.

stories and understood the importance of the environment. I think

It's reassuring to see local convenience stores which we use allthis is possible because the stores are places where information

the time working at building relations with society throughout

can be shared with all types of customers. We ourselves gained

their companies by focusing on childrearing and environmental

much by thinking about what we wanted to communicate, andissues, not just their sales revenues. We want LAWSON to serve

coming to realize that the message that we most wanted toas a starting point for building neighborhood ties and creating a

convey to as many customers as possible is that gratitude is thevibrant society. We support that approach.

first step toward resolving environmental issues.

Note: Dietary education: Education on diet from a wide perspective including foodchoices, balanced eating, and food production methods

As women, we were also impressed by the priority placed on
supporting childrearing in HAPPY LAWSON stores, where

Sale of sweet potatoes harvested in Yokohama outside the store (1st bookreading event)The picture book-reading events featured sweet potatoes the first time andhoney the second time.

53

Caring for Our
PlanetEnriching theCommunity

Motivating
PeopleHistory of the LAWSON Group
1975

April

Established Daiei LAWSON Co., Ltd.

June

Opened first store in Sakurazuka (Osaka).

1976

Oct.

1977

April

1978

Jan.

1980

Sept.

1982

March

Established T.V.B. Sun Chain Co., Ltd.
Inaugurated system for joint delivery of milk andother daily use products.
Created specialized plant to make boxed lunches,and began supplying freshly made boxed lunches.
Installed first-generation computer system.
Concluded business tie-up between LAWSON and
Sun Chain.
Began accepting home delivery service orders.

1986

April

Began sales of Kara-age Kun fried chicken nuggets.

May

Began employing a new three-delivery system.

Sept.

Began using point-of-sale tracking system.
Merged with Sun Chain Corporation, to form Daiei
Convenience Systems Co., Ltd.
Began agency service to accept electricity and gas
bill payments.
Began employing the slogan the “Hot Station in the
Neighborhood” in internal and external communications.
Started collecting donations for charities working toprotect the global environment (the present
LAWSON Green Fund).
Commenced Clean Aid activities.
Conducted recovery and relief activities following
the Kobe earthquake.
Began handling sales of stamps, post cards andrevenue stamps.
Initiated LAWSON Ticket sales.

Nov.

1988
1989

March
Oct.

1991

Feb.

1992

Sept.

1993

April

1995

Jan.

1996

March
April
June

2006

Jan.
Feb.
April
Sept.

2007

March
March
July

2008

Feb.
April
April
April
June

Nov.

Established the Compliance Promotion Committee.

June

Jan.

Established post office counters at all stores.
Began staged removal of artificial colorings andpreservatives from LAWSON original products soldin the Tokyo metropolitan and Kinki regions.
Signed an agreement with Wakayama Prefecture
on local cooperation activities.

August

Feb.
June
July
Oct.

2003

Opened the first LAWSON STORE100.
Created new corporate philosophy to mark the 30th
anniversary of LAWSON’s founding.
Officially started waste oil recycling.
Won the Minister of Economy, Trade and Industry
Award for energy efficient equipment.
Launched full-scale feed and compost recycling.
Became first private company to sign an agreementwith Japan’s Ministry of the Environment.
Employed environmentally friendly PLA for saladcontainers.
Started Bring Your Own program.
Opened HAPPY LAWSON Yamashita Koen store(Yokohama City) to support families with children.
Formed comprehensive alliance with Japan Post
Holdings Co., Ltd.
Developed Lawson Genki Plan to breathe new life
into local communities.
Launched CO2 Offset program.
Equipped two stores in Nagano Prefecture withsolar panels, in partnership with a citizen fund.
Started CO2 emission reduction verification tests
under joint research with the Yashiro Laboratory in
the University of Tokyo’s Institute of Industrial
Science.
Opened a sub-post office in a LAWSON store in
Sakaki, Nagano Prefecture.
Opened eco-intensive Kure Hiro Koen Store(Hiroshima Prefecture).
Given letter of appreciation from the Minister of
Health, Labour and Welfare for distinguished service
in the promotion of organ transplant measures.
Bring Your Own program given Minister of
Economy, Trade and Industry Prize in the 3R
Promotion Council’s 2008 3R Awards.
CO2 offset products given the Business Category
Environmental Business Award in the “eco japan
cup 2008” service category.
Opened an elementary school in Laos, built throughthe sale of products with attached donations.
Started electric vehicle working trial.
Bring Your Own Bag program given a 2008 Ministerof the Environment Container and Packaging 3R
Promotion Award for Excellence.
Tokushima Prefecture Promotion Shop establishedinside the LAWSON Toranomon Tomoe-cho Store,
Tokyo.
LAWSON TICKET INC. merged with i-Convenience,
Inc. (to form LAWSON ENTERMEDIA, INC.).
Established scholarship system for Vietnameseexchange students.
Ninety-nine Plus Inc. merged with VALUE LAWSON INC.
Began introducing LEDs for signage and interior
lighting at new stores.
Began introducing electric vehicles and charging
facilities.
Established LAWSON Okinawa, Inc.
CO2 Offset program given Minister of the Environment
Prize for activities to prevent global warming.

June

Introduced the LAWSON PASS membership card.

Jan.
Nov.

2002

LAWSON Green Fund given Green Culture Prize.

May

June

Dec.

2001

2005

Opened the first NATURAL LAWSON store.

Nov.

2000

April

Nov.

July

Feb.
May

1999

March

Appointed Compliance Officers.
Began installation of energy-efficient combined
refrigeration and air conditioning systems.
LAWSON Green Fund given FY2004 Environment
Minister’s Award.
Announced Personal Information Protection Policy.

July

May

March
July

1998

June

Changed company name to LAWSON, INC.
Opened first LAWSON store in Shanghai, People’s
Republic of China.
Started “Every Store Can Contribute” initiative.
Commenced operations in Okinawa, marking theCompany’s extension of operations to all 47
Japanese prefectures.
Installed Loppi multimedia terminals at all stores.
Opened the Katsushima 1-chome (Tokyo) experimental
environmental action store.
Established the LAWSON Code of Ethics.
Received ISO14001 certification (international
environmental management system standard).
Started providing organ donor cards at all stores.
Stopped providing chopsticks, spoons and forks
with boxed lunches (except on request).
Opened 2nd environmental action store, theNumata Interchange Store, in Gunma Prefecture.
Began Mt. Fuji LAWSON Forest Project.
Shares listed on the First Sections of the Tokyo
Stock Exchange and Osaka Securities Exchange.
Established i-Convenience, Inc.
Adopted new uniforms made from recycled PET
bottle materials.
Established LAWSON ATM Networks, Inc.

July
1997

2004

March

May
August

Sept.
Oct.
Oct.
Oct.
Dec.
Dec.
2009

Jan.
Jan.
March
March
March
May

Dec.
Dec.

54

LAWSON, INC.
CSR Promotion Office
East Tower, Gate City Ohsaki, 11-2, Osaki 1-chome,
Shinagawa-ku, Tokyo 141-8643, Japan
Tel: +81-3-5435-1350
Fax: +81-3-5759-6944
Website: http://www.lawson.co.jp/company/e/Issued October 2010
Next issue scheduled for July 2011
© 1975-2010 LAWSON, INC. All Rights Reserved.