Environmental andSocial Activities Report 2008

”Happiness and Harmony
in Our Community”

Lawson’s Corporate Philosophy
and Code of Conduct
Corporate Philosophy and Code of Conduct
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

Editorial Direction
LAWSON is strengthening its resolve to truly live up to its corporate philosophy bypromoting “Happiness and Harmony in Our Community.” This philosophy
incorporates compassionate consideration for the environment in the specificregions in which we operate, as well as globally, and our headquarters and storesare cooperating to undertake environmental preservation and social contribution
activities on a national scale.
This report—our 10th—outlines our activities in FY2007, including energy andresource conservation, waste reduction and other environmental protection
activities. Lawson’s environmental initiatives conducted in cooperation with ourcustomers such as the LAWSON Green Fund, the “Bring Your Own” initiative andsocial contribution activities in local communities are also covered along with
communicating the full extent of our corporate philosophy from the viewpoint of
our relationship with our customers, the owners of franchise stores and store
crews. In producing this report, we have also endeavored to make it as easy to readas possible.
Through the cooperation of our customers and residents of the regions in which
we operate, LAWSON is striving to become “The ‘Hot’ Station in the Neighborhood.”
We hope this report will help you understand how we will achieve this goal.

1

Scope of Report
Scope
This report concentrates specifically on LAWSON as a parent company, itsfranchise stores and designated affiliated companies, and includes examplesof the cooperative efforts of our business partners involved in distribution,
the manufacture of food products and waste management.

PeriodThe primary period covered by this report is FY2007 (March 1, 2007 throughFebruary 29, 2008) as well as some information from previous fiscal years
and activities during FY2008 to ensure its completeness.

Date of Issue
October 2008 (previous report: October 2007; next report: planned forAugust 2009)

Reference Guidelines
Japan’s Ministry of the Environment Environmental Reporting Guidelines(FY2007 version)

Formulation of LAWSON Group Corporate Conduct Charter
In March 2008, we formulated the LAWSON Group Corporate Conduct Charter, under which we
aim to maintain and raise an awareness of strict adherence to corporate ethics among all
We have prepared the LAWSON Group C&R
employees of the LAWSON Group.
Handbook , which integrates matters on complianceand risk management, for distribution to all
employees of the LAWSON Group.

LAWSON Group Corporate Conduct Charter
1. Basic Declaration
We* believe that fulfilling our corporate social responsibilities while responding to the requests of LAWSON Group* stakeholders will lead toenhanced 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 W
 e refers to all directors, officers, regular employees, temporary employees and dispatched employees (hereafter regular employees, temporary employees and dispatched employees arecollectively 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 withconsideration 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 memberof 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 assets of the LAWSON Group.

C ON T E N T S
LAWSON’s Corporate Philosophy
and Code of Conduct..................................1

FY 2007 Activity Report................................15

Top Commitment............................................3

		 Environmental Protection.......................16n Together with Employees.......................39n Offering Safe and Secure Products.........23n Together with Business Partners............41(Special Feature)n Together with the Local Community.......27

LAWSON’s Organizational Structure.............42

Undertaking Environmental Activities
Together with Our Customers.....................5n Social Contribution Activities..................32

Company Overview/Store Information..........45n Together with Customers.......................35

Outside Opinion/ LAWSON History...............46n Committed ton Together with Franchise Owners
		 and Store Crews....................................37

Environmental and Social Activities Report 2007 Wins Outstanding AwardLAWSON’s Environmental and Social Activities Report 2007 earned the Outstanding Achievement Award at the Environmental Report and Sustainability Report Awards
sponsored by TOYO KEIZAI INC. and the Green Reporting Forum. LAWSON was the only company in Japan’s retail industry to win an award, which was presented inrecognition of the diversity and distinctiveness of LAWSON’s environmental protection and social initiatives. LAWSON will work to upgrade the contents of its Environmental
and Social Activities Report to foster a better understanding of its environmental protection and social contribution activities among an even broader audience.

2Top Commitment

LAWSON seriously considers the needsof customers in local communities andformulates solutions that contribute to avibrant society.
Operating in an Age When We
Cannot Be Complacent in Past
Successes

Creating Vibrant Stores Tailored
to Local Communities

Japan is currently confronting a host of unprecedented
circumstances that include a declining population amid falling birthrates and the aging of society, widening disparities
between urban and regional areas, soaring prices for crude
oil and other raw materials, heightened concern over foodsafety and a rising awareness of the threats posed byenvironmental problems. Several of these factors aredampening consumer sentiment, and the operating environment surrounding convenience stores as well as Japan’s
entire retail industry is likely to become increasingly harsh.
Viewing the current situation as an opportune time
for action, in April 2008 we launched the LAWSONGenki *1 Plan aimed at being “The ‘Hot’ Station in the
Neighborhood*2” that invigorates and energizes residents
of local communities. Under this plan, we strive to operate
vibrant and clean LAWSON stores that have bright andspirited employees and where customers can easily obtain
desired products and information. To realize this objective,
we will first focus on invigorating our franchise owners,
store crews*3 and employees by making future-oriented
investments for developing products that offer high value
and that are cost competitive even in times of sharp rises inmaterials costs. Our investments will also be targeted atcreating motivating work environments for store crews andfor developing human assets, beginning with supervisors
who provide instructions and other assistance to franchiseowners to support store management.

Determined to create vibrant stores tailored to the needs ofcustomers in each neighborhood we serve, we are promoting store management based on the principle of “individualstore orientation” and developing products especiallysuited to each neighborhood, with initiatives centered on
our seven nationwide regional branches. As part of these
efforts, we have been strengthening employee education
to ensure proper decision-making that is ideally compatible
with local conditions and the needs of each neighborhood.
Accordingly, we have steadily developed human assets
who are capable of self-initiative, while accumulating a
wealth of know-how on creating stores and products thatclosely reflect the preferences of the local community. By
constantly repeating this process ona trial-and-error basis, we are creating a framework for
executing our “individual store orientation” principle.
LAWSON is presently opening stores with new formats
crafted to the specific needs of each neighborhood. These
new LAWSON formats include NATURAL LAWSON, which
is suited to lifestyles based on the key words of beauty,
health and comfort; LAWSON STORE100 value-priced
fresh-food convenience stores; and LAWSON PLUS storesthat utilize product development capabilities and theknow-how gained from operating NATURAL LAWSON and
LAWSON STORE 100 stores. Looking ahead, we will alsobuild new business models utilizing our comprehensive
business alliance with Japan Post Holdings Co., Ltd., as
we aim to build stores that make the people of theneighborhood say, “Thank heavens for LAWSON!”*1 In Japanese, genki means to be vibrant, cheerful and vigorous.
*2 L AWSON has been using this slogan in both internal and external communications since 1991. By becoming a place where customers can “feel athome,” as the Japanese word HOTTO means, as well as spreading a spiritof vibrancy to the local community in which it operates, each of our stores
aims to be a “‘Hot’ Station in the Neighborhood” loved and patronized by
local customers.
*3 Store crews: Part-time and temporary workers

3Realizing a Low-Carbon Society
Recent years have witnessed a host of problematic
phenomena in regions worldwide attributed to global
warming. To ensure our Earth remains a healthy andhospitable habitat where future generations can live witha sense of safety and reassurance, there has been greaterattention on specific actions for reducing emissions of carbon dioxide (CO2) and other greenhouse gases not just bycompanies but also by individuals and governments.
Keenly attuned to the critical importance of this issue,
LAWSON has established its own autonomous targets for
reducing CO2 emissions. For example, by FY2012, LAWSON
is striving for a 10% reduction in CO2 emissions based onelectricity consumption per store compared with FY2006
levels, which represents an overall CO2 reduction of 60,000
tons per year. In working toward this goal, we are striving
to reduce electricity usage at LAWSON stores by actively
introducing energy-saving equipment such as chilling
and refrigeration units as well as air conditioning andlighting systems.
We are also addressing environmental issues on otherfronts as well, including the use of plastic shopping bags at
check-out counters, the use of disposable chopsticks, disposing of unsold food such as boxed lunches and store
operating hours. In working to realize a low-carbon society, we will re-evaluate our entire business operations as
we think independently about customer needs of in each
community, earnestly address various important issues andcreate a framework that promotes the conservation ofenergy and precious resources.
As a convenience store chain with close ties tocustomers in local communities, we are also striving to
reduce CO2 emissions by working hand-in-hand with ourcustomers. To this end, LAWSON proposes a variety ofenvironmental protection activities in which customers areable to participate in their daily lives. Prime examples ofsuch activities include our ecology-focused “Bring Your
Own” campaign that encourages shoppers to bring theirown reusable shopping bags and chopsticks; the “CO2
Offset Campaign,” which offers a service enabling customers to autonomously offset CO2 emissions; and the
LAWSON Green Fund, which supports tree-planting activities in Japan and abroad. LAWSON is confident in being
able to achieve meaningful results by undertaking eachone of these activities in collaboration with the approximately 8 million customers frequenting LAWSON stores
every day, franchise owners and store crews.

LAWSON Genki Plan symbol

Employing People fromDifferent Cultures and Buildinga Flexible Organization
Today, business methods are undergoing significant
changes and companies are shouldering increasingly heavysocial responsibilities. Guided by our corporate philosophyof “Happiness and Harmony in Our Community,” werecently formulated the new LAWSON Group Corporate
Conduct Charter, under which we will strive to maintainand raise the awareness of strict adherence to corporate
ethics among all members of the LAWSON family*3. In tandem, we are proactively establishing a risk management
structure and an internal control system.
To create an organization that can respond flexibly toan ever-evolving society, LAWSON hired 10 non-Japanese
staff members as new employees in FY2008. By bringing
different cultures into the LAWSON Group, we are striving
to change the mindset of our employees and imbue themwith a sense of internationalism. We believe that LAWSON’s
corporate characteristics are conducive to embracing suchnew challenges. Backed by a business organization withdiversity and flexibility, we will emphasize innovation infinding solutions for every issue we face as we spread aspirit of vibrancy throughout society.
*3 LAWSON family includes all employees, franchise owners and store crews.

Takeshi Niinami
President and CEO

4

Undertaking Environmental
Activities Together with
Our Customers

The first commitment period of the Kyoto Protocol began on
April 1, 2008. Despite a 6.2% rise in greenhouse gas emissions
in 2006, Japan is determined to do its part to prevent global
warming and has pledged a 6% reduction in CO2 and othergreenhouse gas emissions compared with 1990 levels in thefive-year period spanning 2008 to 2012.
In recent years, global warming is believed to be theprincipal factor underlying a variety of climatic irregularities
and problematic phenomena worldwide. Consequently,
adopting measures for reducing greenhouse gases is
becoming increasingly crucial.
LAWSON is leading the way by implementing a diverse range
of initiatives. As prime examples, we launched the LAWSONGreen Fund in 1992, and we initiated the “Bring Your Own”
campaign at check-out counters to reduce the use of plastic
shopping bags and disposable chopsticks in 2007. As a more
recent initiative, in April 2008 we launched the “CO2 Offset
Campaign,” a service that allows individual customers toautonomously offset CO2 emissions. LAWSON carries out the
aforementioned activities based on the slogan “Undertaking
Environmental Activities Together with Our Customers.”
Environmental problems are no longer regarded as issues tobe tackled solely by countries and companies, but requirethat individuals also re-examine their own personal lifestyles.
As a convenience store chain that is an integral part of the
lives of people of the local communities, LAWSON believes
it must play a key role in proposing environmental activities
that encourage the participation of people in their daily lives.
Based on the philosophy of “Happiness and Harmony in Our
Community,” LAWSON works together with our customers in
rising to the challenge of creating a sustainable society.
5n Japan’s Greenhouse Gas Emissions in 2006 (%)

Volume of Greenhouse Gas Emissions

SpecialFeature

6.2% increase
12.2%
reduction needed
1990: 100

Reduction
target: 6%
2006

2008-2012

n CO2 Emissions of Japanese Households by Source
Tap water

2.2%
From:
Kerosene

Municipal solid waste

5.2%

10.6%

Diesel oil

1.7%

CO2 emissions
volume per% household in 2006
Approx. 5,200 kg

Gasoline

28.5

LP gas

5.1%
Town gas

8.1%

Electricity

38.4 %
Source: Greenhouse Gas Inventory Office of Japan “The GHGs Emissions Data ofJapan (1990-2006)” (released on July 9, 2008)

Undertaking Environmental Activities Together with Our Customers

1

CO2 Offset Campaign
Promoting Shopping that Contributes to the Prevention of Global Warming
What are CO2 offsets?
Statistics in Japan on CO2 generated in people’s daily lives reveal that 5.2
tons of CO2 are produced annually per household, which is equivalent to
1.5 tons per person even when excluding automobile usage. Moreover,CO2 produced by households is trending upward and was more than
30% higher in FY2005 compared with FY1990 levels.
Highlighting our commitment to curbing CO2 emissions, in April
2008 LAWSON commenced a new CO2 offset service that allows foreasy participation by individual customers. CO2 offsets are based on theconcept of offsetting all or a portion of CO2 emissions utilizing CO2
reductions, or emissions credits, achieved in developing countries andother regions. A representative example and method allowed under the
Kyoto Protocol is the Clean Development Mechanism (CDM), a
framework under which advanced countries and developing countries
cooperate in undertaking activities for reducing CO2 emissions. The
amounts of CO2 reductions in developing countries are then credited to

CO2 Offset Campaign Scheme
Customers

Point exchange

Purchase using Loppi

the reduction targets of advanced countries.
Under the new CO2 offset service, LAWSON, on behalf of its
customers, transfers emissions credits to a Japanese government accountfor redemption. Customers participating in the CO2 offset campaign arethen credited with
reductions. This
program thus
allows customers
to contribute to
CO2 reductions inJapan andthroughout theworld.
Akira Amari, former Minister of Economy, Trade and Industry, and Ichiro
Kamoshita, former Minister of the Environment, supported the CO2 offset
campaign and have each purchased one ton of credits.

LAWSON

Customers participate in
CO2 offset campaign.

Customers contribute to
CO2-reducing projects

Send verified image or certificate

Purchase of emissions
credits

Notification
Transfer of emissions credits to Japaneseof Transfer
government retirement accountJapan Ministry of the Environment,
Japan Ministry of Economy, Trade and Industry,
Japan assigned amount account record (retirement account)

CO2-reducing project(CDM)

Emissions credits created from a windpower
generation project in Argentina

Offsetting CO2 with Points from Purchases
Customers can exchange points in 50-unit increments accumulated from purchases with the LAWSON PASS and MY LAWSON
point cards for emission rights to a 10-kg reduction in CO2. In addition to reducing CO2 levels by using these point cards,
customers can also directly purchase emissions credits through Loppi multimedia data terminals in each LAWSON store. In thefirst three months of this campaign, we have received applications for emissions credits exceeding 600 tons of CO2.

Verifying One’s Own Emissions with CO2 Household Account Books
When offsetting CO2, people must first be able to ascertain the amount of their own personal CO2 emissions. To do so, LAWSON
offers customers CO2 Household Account Books, which are posted and made available on our website. These CO2 Household
Account Books enable customers to easily calculate their own CO2 emissions by simply imputing the amounts they consume suchas electricity, gasoline and water.

A unique identification
number for emissions credits islisted on the certificate foreach ton accumulated.

Contributing to CO2 Reductions Simply by Making Purchases
In cooperation with Coca-Cola (Japan) Company, Limited, in July 2008 LAWSON began selling a limited quantity of beverages
that provide 1 kg of emissions credits for each drink purchased. We also allow customers to contribute to CO2 reductions bypurchasing over 20 types of household products, including batteries and light bulbs, with 250 g of emissions credits provided
per product purchased. Under this scheme, LAWSON and various product manufacturers cover the cost of acquiring emissions
credits using a portion of revenue rather than by including the costs in product prices. LAWSON is considering other measuresthat enable customers to contribute to the global environment through their everyday purchases of various products and services.

Real Spark (left) and Georgia
Green Planet Café Au Lait(right)6

Undertaking Environmental Activities Together with Our Customers

2“Bring Your Own” Bag Campaign to Reduce the Use of Plastic
Shopping Bags at Check-Out Counters.

The “Bring Your Own” bag campaign has gained momentum thanks to thecooperation of customers.
nDistribution of “Bring Your Own” Bags

(end of June 2008)

Bags distributed at LAWSON stores and by Group companies
Bags produced by cooperating companies and organizations
Total bags distributed
To reduce the use of plastic shopping bags at check-out counters,
LAWSON solicited customer opinions and suggestions to create theConvenience Store Eco-Bag. Frequent convenience store purchases suchas boxed lunches and plastic bottles fit snugly into the bag, which also
folds into a compact, pocket size. To circulate as many Convenience
Store Eco-Bags as possible based on the conviction that these bags
should be distributed rather than sold, in March 2007 we began distributing Eco-Bags at designated LAWSON stores in Tokyo’s Kasumigaseki
government district and Otemachi financial district. We also publishedthe design and specifications of these bags, and are calling for participation in this program from like-minded companies and organizations
nationwide. By taking this approach, we are working to promote greateruse of these bags not only through distribution at LAWSON stores but
also through external organizations.
Thanks to the support of our customers, more than 1.3 million bags
have been distributed during the one-year-plus period since the start ofthe campaign (as of the end of June 2008). In the future as well, we will
work together with our customers to promote the increased use of such
“Bring Your Own” bags.

726,000
602,000
1,328,000

Folds to fit easily into a pocket

Plastic
bottle

Boxed
lunch

A perfect fit for plastic bottles andboxed lunches“Bring Your Own” bag used at check-out counterAs part of a comprehensive agreementwith the local government, we are
creating and distributing original “BringYour Own” bags (Oita Prefecture).

Examples of “Bring Your Own” bags created to date (includes cooperating companies andorganizations)7

In recognition of its growing popularity, the “Bring Your Own” Campaign won a Recognition Award (right) in the
Retail Category of the “FY2007 Ministry of the Environment Award for Container and Packaging 3R Promotion.”
The “Bring Your Own” bag earned a Recognition Award (left) in the Business Enterprise Category of the “My Bag,
FY2007 Ministry of the Environment Award.”

Special
FeatureReduction of Plastic Shopping Bag Usage at Check-Out Counters
FY2007 Result

FY2008 Target

696kg

600kg
Weight of plastic shopping bags used per store per year

Under the Agreement on Environmental Protection Initiatives concluded
in September 2006 by LAWSON and the Ministry of the Environment,
LAWSON pledged a 20% reduction in plastic shopping bags by FY2008
compared with FY2005. LAWSON has long worked to reduce plastic
shopping bag usage by having store staff ask customers to consider
whether bags are necessary. To raise the effectiveness of these efforts,
we have changed the content of staff suggestions regarding the use ofplastic shopping bags and have requested the cooperation of customers
in reducing plastic shopping bag usage through posters and in-store
announcements. These efforts have led to an increase in the number ofpeople foregoing plastic shopping bag usage, primarily customers
making small purchases. Underscoring the success of these efforts, in
FY2007 the total weight of plastic shopping bags used per store was
reduced 22.7% compared with the fiscal 2000 level to 696 kg.
As another innovative initiative, all LAWSON stores in Hokkaido

started a new program that enables point card member customers who
forego the use of plastic shopping bags at check-out counters to receive
one point as an eco-point. After verifying its effectiveness in Hokkaido,
we will consider extending the program across Japan.

In Hokkaido, we have started a new trial
program for awarding points to point
card members who forego the use ofplastic shopping bags at LAWSON stores.

n Total Weight of Plastic Shopping Bags Usedn Weight of Plastic Shopping Bags Used Per Store
(kg)
1,000

(t)
7,000

900

916

6,778

Number of Stores

7,063

878

800

744

748

725

696

600

Target

600kg

8,500

5,918 6,135 6,037 5,869

8,000

8,204
6,163

6,000

798

8,404

6,746

8,323

7,949
5,000

7,709

7,680

7,500

7,723

7,531
0

0

0
2000

2001

2002

2003

2004

2005

2006

2007

2008 (Fiscal Year)

2000

2001

2002

2003

2004

2005

2006

2007 (Fiscal Year)

Note: The number of stores is calculated by taking openings and closures during a period torepresent a half-year of operation.

Cooperation in Reducing Plastic Shopping
Bag Usage at Kyoto University—Providing
Plastic Shopping Bags to Customers Only
When Necessary
Kyoto University’s COOP stores use approximately 1 million plastic
shopping bags annually. Taking a more environmentally friendly
approach, these stores are now striving to reduce plastic shopping
bag usage by not providing plastic shopping bags with purchases asa general policy. LAWSON agrees with this approach, which is notbased on providing any fee-based plastic shopping bags.
Accordingly, from January 2008 the LAWSON store at Kyoto
University began providing plastic shopping bags only whenrequested by customers. To encourage customers to bring their own
bags, the store sells and rents "Bring Your Own" bags in addition tohaving distributed such bags free of charge during a promotional
campaign held prior to the introduction of this new system. Owing tothese efforts, the store has lowered the plastic shopping bag distribution rate from 63.8% to 10.7% since commencing this program.

As a general rule, the LAWSON store at Kyoto University does not provide plastic
shopping bags and instead sells and rents “Bring Your Own” bags.

8

Undertaking Environmental Activities Together with Our Customers

3

Reducing Disposable Chopstick Usage through the“Bring Your Own” Chopsticks Campaign
Using Wood Not Approved for Baseball BatsTo reduce the use of disposable chopsticks, LAWSON launched the“Bring Your Own” chopsticks campaign in April 2007. This campaign isdesigned to promote the increased use of “Bring Your Own” chopsticks.
In cooperation with MIZUNO TECHNICS CORPORATION and OAK
VILLAGE Co., Ltd., we have produced “Bring Your Own” chopsticks
using ash wood that did not meet baseball bat production standards.
To date, “Bring Your Own” chopsticks have been presented to customers using point cards in exchange for points. “Bring Your Own”
chopsticks are also sold through Loppi multimedia data terminals as well
as distributed to employees. We have distributed approximately 20,000
sets of “Bring Your Own” chopsticks, including chopsticks distributed bycooperating companies mutually supporting this initiative.

LAWSON also donates ¥100 to the nonprofit organization (NPO) Donguri no Kai foreach set of “Bring Your Own” chopsticks
distributed. In an effort to promote theWood not approved forbaseball batseffective use of wood resources, we
support the “Baseball Bat
Forest” for preserving andcultivating ash, which
grows slowly and has notundergone significant
replanting.
“Bring Your Own” chopsticks use previously

In June 2007, we presented 1,000 members of the Tokyo Yakult Swallows (professional baseballteam) fan club with original sets of “Bring Your Own” chopsticks engraved with the logos of
LAWSON and the Tokyo Yakult Swallows.

discarded wood that does not meet baseball bat
production standards. These chopsticks are included
with a bat and ball accessories.

In April 2008, we supported the “4th Baseball Bat Forest Creation” held inKiyomi-cho, Takayama City, Gifu Prefecture. Approximately 70 people fromthe NPO Donguri no Kai (Acorn Association) and local baseball teams
participated in planting 160 ash and other trees.

Supporting the “My Challenge Declaration”
The “My Challenge Declaration” aims at achieving daily CO2 reductions of 1 kg per person under Team Minus 6%, anational citizens’ campaign for preventing global warming. LAWSON supported the “My Challenge Declaration” by promoting a campaign that provides point card holders who have made a “challenge declaration” with ¥100 discounts on
portable “Bring Your Own” chopsticks and other items.

“My Challenge Declaration”
support poster

How “Bring Your Own” Chopsticks are Made

Three-year-old saplings
Ash trees require 70-80 years ofgrowth until harvesting.

970-year-old ash trees tobe used for baseball bats

Cooperation: Student NPO “Have a Nice City”

Around 4 to 10 bats can be produced from 1
tree and approximately 10% of the wood is
unsuitable for bats.

The unsuitable wood can still be effectively
utilized by applying lacquer to produce
chopsticks.

Special
FeatureUse of Disposable Chopsticks
FY2008 Target

FY2007 Result

56,636sets 53,573sets
Volume of disposable chopsticks used per store per year

Disposable chopsticks are discarded after being used once. LAWSON
store staff ask customers whether they need chopsticks with their purchases to avoid providing them unless absolutely necessary. We also
strive to curb the wasteful use of chopsticks by bringing this issue tocustomers’ attention through posters and in-store announcements.
Through the implementation of these policies, LAWSON aims for a
20% reduction in disposable chopstick usage by FY2009 compared with

FY2006. In FY2007, per store use of disposable chopsticks amounted to
56,636 sets, approximately 5% lower than the previous fiscal year.
LAWSON will strive to promote lifestyles that encourage people to carry
their own chopsticks with them and will work to reduce the wasteful useof chopsticks by promoting the spread of portable “Bring Your Own”
chopsticks and by not providing unnecessary disposable chopsticks.

nPer Store Use of Disposable Chopsticks

nTotal Disposable Chopstick Usage■ Sets of chopsticks

60,000■ Thousands of sets

60,001500,000

59,525492,247（2,461t）495,428（2,477t）

475,969（2,380t）

Number of Stores

8,500

8,323
8,204

8,404

56,636

Target

400 million
400,000

55,0008,000

53,573

0

0
2005

2006

2007

2008

0
2005

(Fiscal Year)

2006

2007

2009

(Fiscal Year)

Note: The number of stores is calculated by taking openings and closures during a period
to represent a half-year of operation.

Collecting and Recycling Disposable Chopsticks
In cooperation with Kankyo Sanshiro, a University of Tokyo environmental
research group, we carried out a trial program for collecting and recycling
used chopsticks at three LAWSON stores on the university’s campus.
Specifically, we installed collection boxes at LAWSON stores, and the disposable chopsticks collected were washed and dried before being sent toa paper production plant. The members of Kankyo Sanshiro cooperated
with the collection and were involved in various on-campus publicity
activities. From May 2007 through February 2008, approximately 18,000
chopsticks were collected for conversion into tissue paper and otherpaper products.

Collection boxes were installed at The collected disposable chopsticks were washed, driedeach LAWSON store.
and then sent to a paper production plant.

Using Wood from Japanese Forests
The Japanese government aims to achieve
a 3.8% (initially 3.9%) reduction in emissions of CO2 and other greenhousegases—two-thirds of the 6% reduction
required by the Kyoto Protocol—throughadditional CO2 absorption via better forest
management. The Forestry Agency is
B（2）-060001
advancing activities to promote the daily
use of products made from Japanesematerials and the cultivation of forestry initiatives. Within these
activities, the agency is advocatinga lifestyle called “3.9 GREENSTYLE.”LAWSON supports this cause and makes active use of Japanese
lumber to preserve forests and promote CO2 absorption. Examples

include building wooden
stores using wood produced in
the surrounding areas, providing chopsticks made fromJapanese cedar scraps at
NATURAL LAWSON and using
paper made from Japanesethinned trees in business
reports and other booklets
published by the headquarters.

Minami Aso Hakusui LAWSON Store (Kumamoto
Prefecture)
Prize (13th Prize-Winning Large-Scale Facilities thatU s e T i m b e r, K u m a m o t o P r e f e c t u r e T i m b e r
Cooperative Association Award)

Disposable chopsticks made from domestic timber
are distributed at NATURAL LAWSON stores.

10Undertaking Environmental Activities Together with Our Customers

4

LAWSON Green Fund

Creating Forests with the Support of Numerous Customers
LAWSON Green Fund Marks its 17th YearnLand Area and Number of Trees Tended (Cumulative)
� Land area (ha)LAWSON Green Fund activities began in 1992 tocultivate forests, which has various benefits such as
absorbing and storing CO2, preventing landslides
and preserving water. Funds donated at storesthroughout Japan are provided to the National Land
Afforestation Promotion Organization, which promotes various forestry management activities inJapan and overseas. Franchise owners, store crews
and employees participate in some of these
activities.
Donations to the LAWSON Green Fund, including contributions fromthe headquarters, totaled ¥2.52 billion as of February 29, 2008. Forestry
management activities have benefited 1,736 locations in Japan and overseas and approximately 12.46 million trees over a total of 4,984 hectares
were planted or thinned.

� No. of trees (thousands)

6,000

11,270

10,2304,000

12,460
4,984

4,510

4,093

1,2000

8,000

2,000

4,000

0

0
2005

2006

2007 (Fiscal Year)

Note: Figures given for land area and number of trees are estimation based on total
LAWSON Green Fund amounts and overall Green Fund activities

nLAWSON Green Fund Donations(Millions of yen)
400

Note: L AWSON Green Fund collection switches to a Disaster Relief Fund in the event of a major disaster(See page 29 for information about Disaster Relief Funds).

■ Disaster relief funds■ LAWSON Green Fund

300

275

200

45

93

167

77

45

64

7

100
0

24

96

79

98

107

1992

1993

1994

1995

1996

154

166

190

1997

1998

1999

154
2000

192

177

196

175

2001

2002

2003

2004

23
40

232

247

238

2005

2006

2007 (Fiscal Year)

Mount Fuji LAWSON Greening ProgramThis program is directed toward restoring a 34-hectare tract of land on Mt. Fuji thatwas devastated by a typhoon in 1996 to the state of a natural forest. Franchise owners, store crews, employees and their families as well as customers participated intree-planting and pruning operations at what will become “Mt. Fuji LAWSON Forest.”
Some 170 people participated in Mt. Fuji forestry management activities on
May 20, 2007, planting 620 Japanese cypress trees. In FY2008, approximately
180 people participated in such activities that included pruning, vine cutting andstabilizing trees. Also, each April we conduct forestry management activities aspart of new employee orientation.
Planting trees (FY2007)

VoicesIn 2007, we began encouraging the participation of regular customers through our LAWSON Mobile site.
We carried out our forestry management activities with the participation of eight customers in 2007, andseven customers in 2008.
Customers Participating in 2008

11

lThis was a tremendous experience for me to learn a lot
about how the pruning process is essential for enablingtrees to fully mature.

lI really like Mt. Fuji and traveled all the way from
Hokkaido just to participate in the program. I am truly
grateful for this hands-on experience.

lI am curious about the tree I planted today, and hope toreturn in the future to see it again.

lI am pleased to learn how the LAWSON Green Fundis used.

Special
FeatureFY2007 Greening Projects with Participation of the LAWSON Family
Number of projects
participated in[Forestry management activities: 48 projects
School greening activities:
50 projects]

98

Total number ofparticipants

projects

960

In FY2007 (March 1, 2007 to February 29, 2008), franchise owners, store crews and employees participated in greening projects at 97 locations in Japan andone overseas location (see page 14 for more details). Although unfamiliar with the tasks, they worked enthusiastically alongside other volunteers to plant trees,thin forests and clear away undergrowth.

Chubu Region
Niigata

Niigata/Agano

ToyamaToyama/Nanto/Imizu

Ishikawa

Nomi

Hokkaido Region
Hokkaido	Ebetsu/Sapporo/Furano/
Kushiro/Chitose/Hakodate
Total: 7 projects

Total: 2 projects
Total: 4 projects
Total: 1 project

Fukui 	Echizen Town/EchizenCity/
Sabae/Eiheiji
Total: 4 projects
Yamanashi Otsuki/Fujikawaguchiko		
Total: 2 projects

Tohoku Region

NaganoNagiso/Chikuma/Nagano		
Total: 3 projects

Aomori

Owani

Iwate

Morioka/Hanamaki Total: 2 projects

Total: 1 project

Gifu
Minokamo/Takayama		
Total: 2 projects

Miyagi

Kurihara

Total: 1 project

Shizuoka

Fuji/Ito

Total: 2 projects

Akita
Odate/Katagami/Noshiro		Total: 3 projects

Aichi

Okazaki/Seto

Total: 2 projects

Yamagata

Mie

Tsu/Inabe

Total: 2 projects

Fukushima Sukagawa/Fukushima/Minamisoma
		
Total: 3 projects

Tsuruoka

Total: 1 project

Chugoku Region
Tottori

Kotoura/Tottori

Total: 2 projects

ShimaneOhda

Total: 1 project

OkayamaKagamino/Nishiawakura		Total: 2 projects
Hiroshima

Hiroshima

Kanto Region

Total: 1 project

Yamaguchi Shunan/Nagato/Shimonoseki		Total: 3 projects

Tokushima Mima/Naka/Tokushima		Total: 3 projects
Takamatsu

Total: 1 project

Ehime

Toon/Imabari

Total: 2 projects

Kochi

Hidaka/Ino/Susaki

Total: 3 projects

Kyushu Region
Fukuoka
Chikuzen/Kama

Total: 2 projects

Mito/Tsukuba

Total: 2 projects

Sakura/Nikko

Total: 2 projects

Gunma
Minakami/Shibukawa
		Total: 2 projects

Shikoku Region

KagawaIbarakiTochigi

SaitamaChichibu

Total: 1 project

Chiba

Chiba

Total: 1 projectTokyo

Hachioji/Hino

Total: 3 projects

Kanagawa

Hadano/Hakone

Total: 2 projects

Kinki Region

Kumamoto Kumamoto/Yatsushiro		Total: 2 projects

Shiga

Nishiazai/Ohmihachiman

Total: 2 projects

Kyoto

Miyazu/Uji/Kyoto

Total: 3 projects

Oita

Kokonoe/Hita/Kusu Total: 3 projects

Osaka

Taishi

Total: 1 project

Miyazaki

Kiyotake

Hyogo

Itami/Kobe

Total: 3 projects

Wakayama

Taiji/Gobo/Nachikatsuura Total: 3 projects

Total: 1 project

Kagoshima Kagoshima/Soo/Minamikyushu
		Total: 3 projects
Okinawa

Naha

Total: 1 project12

LAWSON Flower and Greenery Day
In 2001, as a symbol of the LAWSON Green Fund and forestry management
activities, we declared the third Sunday in May as LAWSON Flower andGreenery Day. This celebration is marked by the LAWSON Flower Present
Event in addition to the Mount Fuji LAWSON Greening Program. The
LAWSON Flower Present Event consists of distribution of flower seeds tocustomers at stores nationwide to express the gratitude we feel toward customers. Approximately 900,000 customers (100 per store) each year were
presented with morning glory seeds and miniature sunflower seeds, respectively, in FY2007 and FY2008.
In 2008, LAWSON collaborated with the movie The Witch of theWest Is Dead by including special discount coupons for movie tickets
with packs of flower seeds distributed at LAWSON stores. A portion of
the revenue from the movie tickets is donated to the LAWSON Green
Fund for various forestry management activities carried out by volunteers
and other organizations.
In 2007, we presented customers
with morning glory seeds.

In 2008, we provided miniature sunflower seeds
under a tie-up with movie The Witch of the WestIs Dead .

FY2007 Green Fund Promotional and Educational Activities
Eco-Life Fair 2007
nDate: June 2-3, 2007
nLocation: Y oyogi Park, Shibuya Ward,TokyonSponsor: Eco-Life Executive Committee(Ministry of the Environment)
nDetails:•Environmental activities, including the
LAWSON Green Fund, were introduced
via information panels.
•L AWSON original merchandise was given away as prizes to quiz contests
winners.

Eco-Products 2007
nDate: December 13-15, 2007
nLocation: Tokyo Big Sight
nSponsor: Japan Environmental
Management Association for
Industry, Nikkei Inc.
nDetails:•Environmental activities, including the
LAWSON Green Fund, were introduced
via information panels.
•Importance of forests explained to children who participated in achildren’s eco-tour sponsored by Green Cross Japan.

13

Karuizawa Arts
Festival 2007
nDate: August 20-26, 2007
nLocation: Karuizawa Town and Miyota
Town, Nagano Prefecture
nSponsor: Karuizawa Arts Festival
Executive Committee
nDetails:•L AWSON Green Fund was promoted through the Karuizawa Arts Festival
Pass, which provided discounts and special benefits at shops and facilities
during the festival period.
•A portion of the sales of this pass were donated to the LAWSONGreen Fund.

Morning Musume “Cooling Down the Earth”
Cultural Festival 2007 in Yokohama
nDate: October 7-8, 2007
nLocation: P acifico Yokohama
nSponsor: Morning Musume, Cultural
Festival Executive Committee,
The Yomiuri Shimbun (Tokyo
Headquarters), Nippon
Television Network CorporationnDetails:•Environmental activities, including the LAWSON Green Fund, wereintroduced via information panels.
•L AWSON original merchandise was given as prizes to quiz contest winners.
•Original Cultural Festival “green” piggy banks were handed out.

Arthur and the Minimoys

Natural SongsnDetails:•Promotional stickers placed on LAWSON Green
Fund boxes in all stores (implementation period:
August 25 – October 14, 2007)•Calls for cooperation with the LAWSON Green Fundat movie previews and movie screenings in Japan•A portion of sales of advance tickets donated to the
LAWSON Green Fund•Merchandise presented by the cast for theJapanese-language version is available for sale via an Internet auction
and proceeds donated to the LAWSON Green Fund.

nDetails:•Promotional stickers placed on LAWSONGreen Fund boxes in all stores(implementation period: February 8 – April
21, 2008)•Calls for cooperation with the LAWSON Green
Fund at Natural Songs concert venues•A portion of sales of concert merchandise
donated to the LAWSON Green FundSpecial
FeatureLAWSON Employees Participate in Volunteer Tree-Planting
Tour in Datong City, China
Almost all disposable chopsticks used by LAWSON are imported from China. In cooperation with thespecified non-profit corporation Green Earth Network, as part of LAWSON Green Fund activities, in April
2007 we began annual overseas tree-planting tours, with LAWSON employees and their families
participating as volunteers. To date, 30 employees have participated, including 15 in 2007 and 15 in 2008.
As part of the tour, participants carried out tree-planting activities together with local residents in the
Loess Plateau, in Datong City, Shanxi, China.
With virtually no forested areas, the Loess Plateau faces a number of severe problems that include soil
erosion, desertification and water shortages. Yellow sand carried by winds from these barren areas in springis a problem not only for China, but affects other countries as well. As a resident of one of China’s
neighboring countries, LAWSON considered a way in which to address this problem and thus decided toinitiate the tree-planting tours.

Once abundant in greenery, the Loess Plateau now
closely resembles a desert.

No matter how many trees are planted, the horizon
seems to stretch onward. The dryness of the region
has hardened the ground and each dig with theshovel raises a cloud of dust. (2007)

Access to water is taken for granted in Japan, but inthe Loess Plateau region water is a precious
commodity that must be transported from long
distances. (2007)

A young poplar tree is removed from the ground.
Saplings will be cultivated and later replanted in adifferent area after growing to a certain size. This
process is an enormous task due to the large size ofthe trees. (2008)

Local children assisted in the work. Although verbal
communication was not possible, all participants
shared an amiable and enjoyable experience. (2008)

The flower of an apricot tree resembles that of acherry tree. Planting fruit trees enables local
residents to earn income from harvesting the fruit ofthese trees.

Tour participants comprised both males and females andrepresented diverse job categories and age groups. A strong
sense of teamwork was gained by toiling and sweating together.

Participants and children not only work hard but also enjoy
having fun playing soccer or jump rope after tree-planting
activities are finished.

Participant Interviews
Takahito Murai Supervisor, Hakodate District
The most indelible impression of my trip was the warm hospitality of the village’s people. We visited local villagers’ homes for lunch and werewelcomed with a smorgasbord of homemade dishes. In stark contrast to the area’s harsh climate and forbidding desert, I could really feel thewarmth of the people.
By participating in the tour, I was able to get a first-hand glimpse of how donations to Green Fund boxes in each store are being put towork around the world. This was a meaningful trip for me because I was able to interact more deeply with LAWSON employees from different
geographic regions and who perform different jobs.

Chie Hara Accounting Advisor, Kinki Management Center
The most impressive aspect of the tour was the village’s children, who would call out to us in rudimentary English. The village is certainly notaffluent and its people must make do with limited provisions. However, the people have a strong zest for learning and would make comments
such as “I want to learn.” The trip provided an excellent opportunity for me to rethink the many things I should do.
It was very meaningful for me to participate in a tour that continues such activities as planting fruit trees at schools, thus allowing the
fruit to be harvested for income, as well as planting coniferous trees as part of disaster-prevention efforts in areas that have undergone
desertification.

14

FY2007 Activity Report
For “Happiness and Harmony in Our Community”
In realizing our corporate philosophy of “Happiness and Harmony in Our Community,”
LAWSON considers the ideal presence it should maintain for people of the local
communities we serve and our role in society. As “The ‘Hot’ Station in the
Neighborhood,” LAWSON strives to undertake activities that bring happiness to all
and to realize a society that can share the enjoyment created by our activities.

Social Contributions p32
Local Communities
Products
Environment

p16

LAWSON consumes electricity, oil, waterand other resources while conducting its
operations, generating approximately
730,000 tons of CO2 per year. Aware of its
responsibilities in helping protect thenatural environment, LAWSON works tocurb global warming by introducing
energy-saving equipment, conserving
resources and reducing waste.

p23

Each LAWSON store stocks approximately
2,700 merchandise items. Besides
allowing customers to make theirpurchases with a sense of safety andsecurity, we are continuing to ensure
customer satisfaction by offering an
exciting selection of seasonally oriented
products with an emphasis on health.

p27

A truly national chain that operates storesin all 47 prefectures of Japan, LAWSON
maintains close relationships with allcommunities in which we operate. As
individual members of society, each
person in the LAWSON family also adheres
to all laws and social norms and makes
their utmost efforts to ensure that
LAWSON’s presence leads to thehappiness of all communities.

Striving to be useful to society as acompany, LAWSON also actively carriesout volunteer activities. Through suchinitiatives as supporting children’s andsports activities, LAWSON plays a key rolein creating happy and vibrant communities.

Customers
Franchise Owners and Store Crews p37
Employees
Business Partners p41
LAWSON depends on the cooperation of its
business partners to provide safe,
high-quality products and services to
its customers.
LAWSON aims to build relations withbusiness partners with whom we cananticipate local needs and share ourinnovative ideas, while mutually providing
each other with know-how and knowledge.

15

p39

LAWSON employees serve as the nucleus
of our efforts to realize our corporate
philosophy and to drive companywide
growth. LAWSON strives to create
workplace environments that allow
employees to work energetically witha sense of pride and social purpose.

LAWSON stores are managed byapproximately 7,000 franchise owners,
who are supported by around 120,000
store crew members responsible forinteracting with customers at the front lineof business at each store. Both franchiseowners and store crews are thus highly
valuable assets and crucial to theoperation of LAWSON stores. LAWSON
provides a variety of support to ensure
franchise owners maintain confidence andpride and that store crews can work withenjoyment and motivation.

p35

LAWSON believes its stores must be
comfortable and relaxing places thatpeople wish to visit. LAWSON serves
approximately 2.5 billion customers per
year, with a daily average of 812
customers per store. As “The ‘Hot’ Stationin the Neighborhood,” we operate storesand provide merchandise assortments
geared to the needs of each community,
thereby ensuring customer satisfaction in
every neighborhood we serve.

Committed toEnvironmental Protection
LAWSON has designated initiatives for reducing the environmental
burden as a crucial management task for realizing a low-carbon
society. Accordingly, LAWSON will make earnest efforts to implement
plans that minimize CO2 emissions.

LAWSON Environmental Policy
LAWSON believes in operating stores that are friendly to people and theenvironment. To ensure the health of the environment that we will passon to future generations, we incorporate environmental considerations
into all our actions, seek to operate in a sustainable manner that is inharmony with our environment and participate actively in social
contribution activities.

Policies(1) Provide information on safe and secure products and services, andcontinuously pursue activities that reduce our burden on the environment.

CO2 Emissions and Reduction Targets
Measures to Reduce Electricity Consumption
Proactively pursuing a reduction of CO2 emissions, LAWSON has
established several Voluntary Action Targets. Among these, LAWSON
aims for a 10% reduction in per store CO2 emissions resulting from store
electricity usage by FY2012 compared with FY2006 levels. Based on
total emissions in FY2006, this corresponds to a total reduction of
approximately 60,000 tons of CO2.
Electricity consumed at stores accounts for approximately 80%
of LAWSON’s CO2 emissions. Over the past several years, electricity
consumption by LAWSON has trended upward along with the introduction of new products and services. We will continue to actively introduce
energy-saving equipment, spanning chilling and refrigeration units andair conditioning, to reduce CO2 emissions.
Principal Electricity Reduction Measures at LAWSON Stores(1) Introduce Energy-Saver Pack integrated cooling and ventilation systems at
new stores(2) Introduce Eco-Pack energy saving and controlling units at existing stores(3) Introduce automatic adjustable lighting systems for controlling in-store
illumination(4) Install reflectors in store signage to reduce the number of fluorescent lights
by half
Note: For details, please refer to page 17.

nVoluntary Action Targets for CO2 Reductions
By FY2012,

LAWSON will strive for a 10% reduction in
per store CO2 emissions resulting from store
electricity usage compared with the FY2006 level.
To attain this target,
we will utilize environmental management systems
and continually monitor the state of our progress.

ISO14001
Environmental
Management
System(2) Based on environmental evaluations of our operations, products andservices, set environmental goals and targets, strive to continuously
improve them and prevent pollution.
(3) Respect all laws and regulations concerning environmental preservation activities and improve our environmental management system.
(4) Strive to reduce CO2 emissions and pollutants by conserving energy
in our daily operations, conserving resources, minimizing waste andrecycling.
(5) Promote regional greening and beautification by participating in andsupporting the environmental preservation and social contribution
initiatives of municipal bodies.
(6) Raise awareness of environmental protection through environmental
education and communications.

nUnit CO2 Emissions*TargetCompared with FY1990

（g）

80

78.0

60

Committed to Environmental Protection

Fundamental Philosophy

22.3% reduction

61.6

58.0

61.0

60.6

40
Compared with FY1990
21.8% reduction

20
0
1990

2005

2006

2007

2008 (Fiscal Year)(Target)*Unit CO2 emissions: total floor space x CO2 emissions per hour of operation (g of CO2/m2 h)
Taking into consideration the results of third-party verifications starting in FY2008,
LAWSON is making more precise evaluations and corrections of data from FY2006 onward.

nLAWSON CO2 Emission Volumes (FY2007)
Waste (plastic)
Company-owned cars
(gasoline)

2.7%

Water supply

0.3%

trucks
0.7% Delivery(diesel, other)
10.6%
Total amount

729,941
t-CO2

Electricity

85.7%•Data is for LAWSON stores only
(does not include NATURALLAWSON stores)•Waste materials cover waste
plastics (petrochemical derived)

Environmental Management Systems
To facilitate efforts to reach our targets, we are utilizing environmental
management systems (ISO 14001) and operating the Plan, Do, Check,
Action (PDCA) cycle to confirm the state of our progress towardachieving set targets.
We commissioned Japan Quality Assurance Organization (JQA), a
third-party institution, to verify the volume of CO2 emissions for theentire LAWSON chain. This will enable LAWSON to obtain highly
objective and reliable data on its CO2 emissions.

16

Measures to Curtail Energy Consumption
Introducing Energy-Saving Systems in Stores
FY2007 result

FY2008 target

2,907 → 4,882
storesEnergy-Saving Systems Spanning Refrigeration
Units and Air Conditioning
Electricity consumption at stores accounts for over 80% of LAWSON’senergy consumption. We are introducing energy-saving systems, spanning chilling and refrigeration units and air conditioning, to reduce
power use by stores.
Our new stores are equipped with an Energy-Saver Pack, comprising
an integrated cooling and ventilation system. Consolidating the outside
units for chilling, refrigeration and air conditioning, which are conventionally controlled separately, boosts efficiency. In existing stores, we are
installing Eco-Pack automatic energy saving and controlling systems thatmonitor exterior unit gas pressure for chilling and air conditioning units
and anti-condensation heaters.
In FY2007, we introduced the Energy-Saver Pack and Eco-Packautomatic control systems at a total of 2,907 stores. In FY2008, weplan to introduce these at 4,882 stores and expect this will lead to a
reduction in CO2 emissions of approximately 21,000 tons.

storesAdjustable Lighting Systems
Automatic adjustable lighting systems provide in-store illumination thatmakes products easy to see. Sensors control lighting in areas near windows, making efficient use of natural sunlight and reducing electricity
consumption by around 30%.
We also use reflectors in our store signage for amplifying lighting,
reducing the number of fluorescent lights by half.
We are also experimenting with the use of light-emitting diodes(LEDs) in store signs and lighting equipment. By introducing LEDs, which
consume about half the power of fluorescent lights, we are seeking tofurther reduce CO2 emissions.

We are experimenting with LEDs in store lighting.

Energy-Saver Pack outdoor unit for new stores

Reduced fluorescent usage in store signage

Other Energy-Saving Measures
Eco-Pack for existing stores

nNumber of Stores Introducing Energy-Saving Systems
Number of stores (cumulative)
FY2007
1,422

1,877

Eco-Pack

1,485

3,005

Total

2,907

4,882

(integrated cooling and ventilation systems)(energy saving and controlling units)

17

FY2008 (target)

Energy-Saver Pack

LAWSON is promoting the introduction of total heat exchangers asventilation systems, which have been introduced to 1,400 stores by
the end of FY2007. These units efficiently recover heat and humidity
generated by air conditioners and returning it to the store interior. Heatrecovery is more than 70% higher versus conventional systems that only
recover heat, and air conditioner efficiency is also enhanced.
In FY2008, we began using an external heat insulation method forthe exterior walls and roofs of LAWSON stores. For exterior walls, we areutilizing metal panels that surround insulating materials on two sides,
while installing insulating material on roofs, thereby effectively shuttingout heat from outside the store. This allows the interiors of each store
to be maintained at a fixed temperature and reduces the burden on
air conditioners.

Initiatives to Conserve Energy and Reduce the Environmental Load of Delivery
Trucks and Company-Owned Cars
Promoting Joint Deliveries
In logistics, we are promoting multi-drop deliveries and revamping ourdelivery system to reduce the number of trucks that deliver to a given
store, thereby reducing our environmental load.
An example of such efforts is the use of double-chamber, doubletemperature management cargo vehicles for carrying products of two
different temperature requirements; rice-related products, which are
stored at 20°C; and dairy products, desserts and other items that are
stored at 10°C or below. Partitioning the cargo areas of delivery trucks
into different zones allows both types of products to be transported in
one vehicle.
Through this practice, as well as by reworking our sundry item
delivery schedules, we have cut average deliveries per store to 7.5 daily
versus 16 in 1989. We will continue to further improve delivery schedules
and routes.

nIntroduction of Low-Pollution Vehicles(Vehicles)

100

80

90

■ =Hybrid vehicles■ =Natural gas powered vehicles

71
60

60
48

40
20

1

77
12

20

13

47

47

2004

2005

51

65

2006

2007

0
2008 (Fiscal Year)

Committed to Environmental Protection

Traffic Management System(Target)All trucks that deliver chilled products* are mounted with a travel
management system linked to a mobile communications network. Thisconfiguration allows LAWSON headquarters and distribution centers tomonitor cargo temperatures and arrival and delivery status in real time,
facilitating more accurate quality control. The system also allows
monitoring of driving conditions, including over-acceleration, overbraking and speeding, thus promoting travel efficiency and ensuring
engine cut-off during unloading.
*Chilled products include rice and dairy products, desserts and other products that requiretemperature control.

Eco-tire

Hybrid truck

Other Measures

Improving the Fuel Efficiency of CompanyOwned Cars

To lower gas emissions and reduce its environmental load, in 1997
LAWSON became the first company in its industry to use low-pollutiondelivery trucks powered by natural gas. We also have been promoting
the introduction of hybrid-fuel trucks since March 2004, and as ofFebruary 29, 2008, we have introduced 77 such low-pollution vehicles intotal. In addition, we are planning to introduce the use of biodiesel fuel(fuel made from recycled waste oil) on an experimental basis.
We are also promoting the use of eco-tires, which have a different
shape and rubber composition than conventional tires as well as a lower
rolling resistance, thereby minimizing fuel consumption. The introductionof eco-tires is expected to yield an approximate 4% improvement in fueleconomy per vehicle.

We have introduced theElectronic Toll Collection(ETC) system to all
Company-owned cars. This
upgrade helps avoid tollgate
traffic jams, thus improving
fuel efficiency and lowering
Company-owned car (hybrid vehicle)
CO2 emissions. Also, in aneffort to reduce the environmental burden caused by our 1,641
Company-owned cars, we have been installing an automatic idling cut-off
system in these cars or switching them to hybrid vehicles since FY2006.

Participation in a Solar Energy Business that Utilizes a Citizens-Operated FundLAWSON participated in the Minami-Shinshu Ohisama Community Solar Project, a solar energy projectthat utilizes the Stop Global Warming Ohisama Solar Fund. Under this scheme, the fund used subsidies
provided by the Ministry of the Environment to install rooftop solar panels at two LAWSON stores in Iida
City, Nagano Prefecture. The electricity generated by the panels is then purchased by the two stores forin-store use.
The panels generate approximately 5,000 kWh at the Iida Dashina store and around 9,500 kWh at the
Iida Zakoji store. Moreover, the power generated by this business has been certified by the Green Energy
Certification Center Japan, and plans also call for the “environmental value” of this electricity to be certified through the issue of Green Electricity Certification*.
*Green Electricity Certification is a type of certification that can be traded for the environmental value of suchnaturally produced energy as solar power and wind power.

Solar panels at Iida-Dashina LAWSON store

18

LAWSON’s Measures for Reducing Waste
Food Product Waste Recycling Rate
FY2007 result

FY2008 target

23.5 → 26%% or higher

Reducing Food Product WastelStore Initiatives

LAWSON’s daily food product waste, which is the combined amount ofleftover food and waste oil, amounts to approximately 11 kgs per store.
We strive to reduce food product waste and promote recycling bysteadily implementing an array of measures in the three-pronged
approach of curtailing waste generation, implementing recycling andreducing waste volumes.
Food product recycling involves the recycling of waste oil in
combination with the recycling of food waste into animal feed and fertilizer. In FY2007, LAWSON’s food product recycling rate was 61.3% for
directly managed stores and 23.5% for all stores. In FY2008, we will
strive for a food recycling rate of 26% or higher for all stores and will
work to increase the number of stores implementing food recycling.

Each store has a store computer used to track sales trends based on the
day of the week, the weather, regional activities and other factors before
orders are placed. This is one way we reduce waste caused by overordering.

nFood Product Recycling Rate(%)

FY2008(target)*

FY2007*All stores(Directly
managed stores)

All stores

Waste oil recycling

14.0(13.9)

14.2

Food (animal feed and fertilizer)

9.1(40.5)

11.5

Reducing Waste

Organic waste processors

0.4

(6.9)

0.3

Total

23.5

(61.3)

26.0

We have introduced organic waste
processors to reduce the amount offood waste that stores generate bydrying the waste prior to transport
at 62 directly managed stores (asof March 31, 2008) around Japan.

*Set to coincide with the Japanese governmental fiscal year
(e.g., FY2007: April 1, 2007 to March 31, 2008)

Using a store computer to check product lineups and order new items

Curtailing Waste Generation

Organic waste processor

lEfforts at the Production StageIn the production stages of rice-related and other food products,
LAWSON has introduced a Manufacturing Prodcess Control System for
efficient production planning to ensure consistent product quality at riceproduct plants nationwide and avoid unnecessary output. (Please referto page 24 for details on the Manufacturing Process Control System.)
By implementing this system, ingredient input can be managed asprescribed by regulations and food waste is thus reduced.

Weighing of raw materials at rice production facility reduces waste.

19

Recycling
In January 2006, LAWSON began introducing measures to recycle waste
oil after being used in stores to prepare such products as Kara-age Kun
fried chicken nuggets. As of June 30, 2008, approximately 7,460 storesrecycled their waste oil. The waste oil is recovered by collection companies and recycled and treated at a recycling plant to produce animal feed
additives, construction coatings, alternative fuel for public buses,
additive-free soap and other products.
Around Japan, 1,020 LAWSON stores currently recycle leftover foodinto animal feed and fertilizer. This waste includes such items as boxedlunches and side dishes that have passed their sell-by dates. All stores in
the Tokyo metropolitan region and some stores in Yokohama, Kawasaki
and Kyoto cities, as well as NATURAL LAWSON and LAWSON STORE
100 stores, turn this waste into hog feed. Similar waste from stores in
the cities of Kumamoto, Nagoya, Aomori and Matsue and Mie prefecture
are converted into fertilizer.
For recycling into fertilizer, collection companies pick up leftover
food from stores for delivery to plants, where it is ground and fermented
before being used in fertilizer (eco-feed).
The food product recycling system is possible because ofcooperation by collection companies, processing plants, feedlots andfarm owners. This system is one example of how LAWSON works with its
business partners and members of the communities in which it operates
to effectively use resources.

nRecycling food waste into fertilizer in Matsue, Shimane
Prefecture*
Partner: Earth Support Corporation

1. Leftover food collected from storesusing specialized vehicles

Waste Volumes
To reduce the amount of waste produced and promote recycling,
LAWSON conducts fact-finding surveys on waste that stores generate byactually sorting and weighing refuse from stores.
A survey of 315 LAWSON stores in the Tokyo area conducted in
FY2007 indicated average daily output of 50.9 kg of waste per store.
The largest contributors were burnable materials, including wastepaper,
wrapping paper, disposable chopsticks and dead leaves, totaling 17.8kg, followed by 14.3 kg of cardboard boxes for packaging and 11.3 kg offood products.
In the breakdown of waste output by source, the Clean Box storefront trash cans account for approximately 30% of total waste output,
showing an upward trend every year.
nWaste Disposal Survey Results(Average Weight per Store per Day)

Food products

11.3 kg

Burnablewaste

2. Transportation to recycling plants

Plastic waste
Total

50.9 kg
Recyclable paper

0.1 kgCardboard

14.3 kg

2.4 kgBottles 1.4 kg
Cans 3.3 kg

Committed to Environmental Protection

17.8 kg

PET bottles

0.3 kg

Installing Clean Boxes
3. Leftover food put into a liquefier andthen fermented

4. Liquid fertilizer produced. Fertilizer
used by Earth Farm, an agricultural
production corporation operated by
a Group company, as well as bynearby farms.

LAWSON places Clean Boxes (trash cans) outside stores for disposal oflunch boxes or drink containers purchased at the store and consumed in
front of the store or in the parking space.
In response to increasingly strict municipal regulations for thesorting of trash, we have been introducing new Clean Boxes since
February 2005. With the new Clean Boxes, waste types are reclassified
into the four categories* of paper, plastics, bottles and cans and PET
bottles, and insertion slots can be replaced accordingly. These boxes are
made from plastic recycled from PET bottles and other materials, which
is more durable than conventional steel materials.
*The number of boxes installed
varies by region, dependingon specific municipal waste
disposal regulations.

*Fertilizer production methods differ by plant.

Effective Use of Leftover FoodLAWSON sets voluntary sell-by dates and times to ensure that
customers can enjoy its products safely. All items that pass theirsell-by dates and times are removed from store shelves. As theseproducts are removed from shelves well before they reach their expiration date, there are no quality-related problems with these products. As one aspect of our corporate social responsibilities, in June
2006 we began putting in place measures to use this leftover foodmore effectively.
Through the cooperationof the city of Yokohama, the Breads, boxed lunches
and other products
Leftover ingredients
NPO Sanagitachi Project
LAWSON
storesRice
product plantdelivers inexpensive andnutritionally balanced meals
to people in need in
Sanagi Kitchen
Yokohama’s Kotobuki-cho
Donated food products

district through the Sanagi Kitchen. LAWSON stores in the area aswell as a rice product plant provide this NPO with breads, boxedlunches and other products that have passed their sell-by dates andtimes, but remain safe to consume.

Sanagi Kitchen

20

Resource Conservation Initiatives
Environmental Considerations in Packaging
LAWSON’s commitment to safety, security and health is evident inefforts to eliminate toxic emissions in the use and production of packaging materials. Accordingly, we are implementing measures to upgrade
packaging materials and facilities.
In terms of environmental considerations, we use containers madefrom polylactic acid (PLA) for some rice and side dish products, and promote the use of environmentally friendly film-printing processes using
water-based inks. PLA is a biodegradable substance made from corn andother vegetables. Unlike petroleum-based materials, PLA is carbon neutral, meaning that the amount of CO2 emitted during incineration equals
the amount absorbed when its source materials are grown, reducing
emissions over the product lifecycle.
LAWSON also makes efforts to conserve resources in packaging andachieved an approximately 490-ton reduction in the weight of packaging
in FY2007. This reduction in packaging also enabled an approximately
2,100-ton reduction in the volume of CO2 emissions that result from theincineration of packaging. In FY2008, we will aim for a 5% reduction in
CO2 emissions from the incineration of packaging.

example, café au lait products
use only fresh milk, coffee andsugar as the main ingredients,
and no other unnecessary
ingredients are added. A portion of sales from “Café Au Laitwith Extra-Rich Fresh Milk” isdonated to More Trees, a forest-conservation organization
headed by musician Ryuichi“Café Au Lait with Extra-Rich Fresh Milk” (left)
Sakamoto. Additionally, theEnglish Style MILK TEA (right)
14.8 g of plastic that comprisethe cup-type container of our “English Style MILK TEA” are offset
through emission credits provided by SOTOKOTO and the Lohas Club.
NATURAL LAWSON also sells an array of environmentallyconscious products (Please refer to page 27 for more information
on NATURAL LAWSON).

Uniforms from Recycled PET Bottles
LAWSON uniforms worn bystaff at stores throughout Japannow bear the Eco Mark, as
more than 50% of the materials
used for these uniforms arederived from recycled PET bottles. In addition, used uniforms
are again recycled into buttons,
fasteners and hangers as a
circulation-type recycling
system.

Salad containers made with PLA

Eco Mark certified uniform

nPackaging Weight and CO2 Emissions(t)■Total weight ■ CO2 emissions

Weight per sheet (g)50,00010

41,63840,00030,000

6.16

41,576
5.81

39,433
5.63

20,00010,0008
6
4

10,806

10,685

10,1970

2

Recycling the Rechargeable Batteries Used in
Dynamic Order Terminals
In March 2007, LAWSON began recycling the rechargeable battery packs
used in its product order placement terminals.
When recycling rechargeable batteries, the rechargeable cells inside
are replaced, essentially turning them into new rechargeable batteries.
LAWSON recycled some 6,000 such batteries in FY2007. By recycling therare metals used in these batteries and reusing their casings, we reduced
annual waste by approximately 1 ton.

0
2005

2006

2007 (Fiscal Year)

Offering Environmentally Conscious Products
Today, much attention is being focused on so-called LOHAS (Lifestyles of
Health and Sustainability), which promotes sustainable lifestyles that
aim for mutual harmony and benefits for people and the Earth, with anemphasis on environmental protection and health. In collaboration withthe magazine SOTOKOTO and the Lohas Club, LAWSON has developed
environmentally conscious beverages sold in LAWSON stores. These beverages have low-carbon packaging approximately 17% lighter than conventional cup-type containers and feature simple product designs. For

21

Dynamic Order Terminal (DOT)Environmental Targets and Results
nFY2007 Targets and Results
Activities

Targets

Achievement Status

Achieved?

Introduce energy-saving units in 1,000
existing stores (cumulative: 1,500 stores)

Introduced in 761 stores
Cumulative: 1,485 stores

Nearly*Introduce energy-saving units in 600 new
stores (cumulative: 1,600 stores)

Introduced in 388 stores
Cumulative: 1,422 stores

NearlyCut CO2 emissions by
upgrading delivery truck fuel

Increase the total number of low-pollution
vehicles (hybrid, natural gas) to 82

Cumulative: 77 vehicles(12 hybrid vehicles, 65 natural gas powered vehicles)

NearlyCut CO2 emissions by
upgrading Company-owned
car fuel

Switch Company-owned cars to fuelefficient models

Switched all of 1,641 Company-owned cars

Attained

Promote companywide
prevention of global warming(reduce CO2)

Reduce unit CO2 emissions (operation hours
x floor space) by 23.8% from FY1990 levels

Down 21.8% compared with FY1990

NearlyReduce the use of plastic
shopping bags

Reduce the weight used per store by 28.0%
compared with FY2000

Per store use down 22.7% compared with FY2000

NearlyReduce the use of disposable
chopsticks

Reduce the number of sets used per store by
5.0% compared with FY2006

Per store use down 4.9% compared with FY2006

Nearly1) Promote the reduction of
package weight2) Promote the use of
non-plastic materials(paper, green plastics)

1) Reduce CO2 emissions from incinerationof packaging by 4.6% compared with
FY20062) Reduce packaging weight by 3%

1) Reduced total annual packaging weight by 4.6%
2) Reduce packaging weight per package by 3%

Attained

Reduce sales promotion
materials delivered

Reduce material delivery volume per store
by 10% compared with FY2006

Reduced material delivery volume per store by 1%
compared with FY2006

No

Reducing waste

Reduce food product waste,
recycleRecycling of food waste: 25% or more
1) Waste-oil recycling: 7,600 stores2) Recycling into feed and fertilizer:
1,240 stores3) Introduction of organic waste processors:
65 units

Recycling of food waste: 23.5% (as of March 31, 2008)
1) Waste-oil recycling: 7,403 stores2) Recycling into feed and fertilizer: 974 stores
3) Introduction of organic waste processors: 62 units

NearlyRegional social
contributions

Continue collecting donations
through LAWSON Green Fund

1) Fundraising activities in all stores
2) Participation in greenery operations

1) F Y2007 collections: ¥0.24 billion
Collections to date: ¥2.52 billion
2) Participated in 98 greenery operations

AttainedCut store air conditioner andcooler electricity use

Saving energy

Saving resources

Committed to Environmental Protection

Area* Assessment of quantitative targets: 100% attained: Attained 70% or higher attained: Nearly Less than 70% attained: No
Assessment of qualitative targets: Implementation (execution) completed: Attained Implementation (execution) in progress: Nearly Not implemented (executed): No

nFY2008 Environmental Targets
Area

Activities

Targets

Cut store air conditioner and cooler electricity use

Introduce energy-saving units in 1,500 existing stores(cumulative: 3,000 stores)

Cut emissions of CO2 and hazardous substances from delivery trucks bypromoting eco-driving and introduction of low-pollution vehicles/eco-tires

Reduce CO2 emission per store by 1.0% (91 kg-CO2 per store)compared with FY2007

Promote eco-driving and safety-driving of company-owned cars

Improve the fuel efficiency of Company-owned cars by 3% comparedwith FY2007

Promote companywide prevention of global warming (reduce CO2)

Reduce unit CO2 emissions (operation hours x floor space) by 22.3%
compared with FY1990 levels

Reduce the use of plastic shopping bags

Reduce the weight used per store by 17.2% compared with FY2006

Reduce the use of disposable chopsticks

Reduce the number of sets used per store by 10.0% compared with
FY2006

1) Promote the reduction of packaging weight2) Promote the use of non-plastic materials(paper, green plastics)

Reduce CO2 emissions from incineration of packaging by 5.0%
compared with FY2006

Reduce waste by effective creation and distribution of sales promotion
materials

Reduce the volumes of materials delivered and extra materials
disposed per store by 5% compared with FY2007

Reducing waste

Reduce food product waste, recycle

Recycling of food waste: 26% or more (yearly average in FY2008)
1) Waste-oil recycling: 7,750 stores2) Recycling into feed and fertilizer: 1,400 stores
3) Introduction of organic waste processors: 62 units

Regional social
contributions

Continue collecting donations through LAWSON Green Fund

1) Fundraising activities in all stores
2) Participation in greenery operations

Introduce energy-saving units in 90% of new stores
Saving energy

Saving resources22Offering Safe and Secure
Products
LAWSON believes that one of its most important responsibilities is
responding to the needs of our customers for safe and secure food andhealthiness. The headquarters and LAWSON stores are working in unison tobuild a structure for providing “safe, secure, and healthy products.”

LAWSON’s Concept of Safety, Security and HealthOfferhealthy
products

Offer safe andsecure products●Pay careful attention toingredients●Consider nutritional balance inmenus●Include often-neglected
vegetable content●Eliminate artificial colorings andpreservatives●Control freshness, temperatureand hygiene levels

Measures for Safety and Security
LAWSON’s products are subjected to thorough quality control
procedures in conformance with environmental and hygiene regulations.
Our stringent policies at all stages, from product development throughproduction and sales, ensure that customers can purchase our products
without any safety concerns.
We have eliminated the use of artificial colorings and preservatives
in such original LAWSON products as boxed lunches, rice balls, sushi,
prepared bread, side dishes, salads, prepared noodles and pasta.
The labels on original LAWSON products display such mandatory
information as product name, expiration date, ingredients and allergy
warnings. In addition, nutritional data, including per-serving calories, isindicated voluntarily. We create specification documents for eachproduct by accurately tracking and recording the information of each
ingredient including its supplier, preparation method and any food additives included. All this information is reflected in the ingredients sectionof the label.
Furthermore, the Quality Control Office carries out stringent checks
on the content of product labels, which are also checked by specialized
external agencies and at the production stage. This ensures that all
product labels have been double- and triple-checked before reaching
the consumer.

nMain Display Categories and Product Labels
Expiration Date

The time period during which customers canconsume our products with assurance.

Packaging Identification

The identification of materials such as plastics
facilitates trash separation for packaging
materials

Nutritional Information

Listing of per-serving calories, protein, fat,carbohydrates and sodium

Ingredients

Ingredients displayed in the order of thoseingredients accounting for the highest
proportional weight of the product

Food Additives

Allergens

23

Food additives displayed as prescribed by the
Food Sanitation Law
Five required categories displayed as
stipulated by laws in addition to 20 voluntarily
included categories

Quality Control Initiatives
LAWSON has created a system to manage hygiene and food safety
based on the Hazard Analysis and Critical Control Point (HACCP) system,
identifying potential risks of food poisoning or hazards due to foreign
substances before reaching customers. The system maintains records ofsuch key aspects of quality control as preparation time and temperature,
allowing prompt investigation of the causes of a problem in the unlikely
case an incident should occur.
Quality Control Office personnel are present when a new plant goeson line or new systems are installed. Their job is to check for possible
hygiene and safety control issues.

Regular checks for foreign substances

Manufacturing Process Control System toEnsure Uniform Quality
LAWSON has adopted a Manufacturing Process Control System topromote uniform quality at rice product and other plants at 49 locations
nationwide. This system regulates all standard aspects of the production
process for each product from quantity and preparation method toplacement in the container. Quantities of ingredients used and preparedfood, amounts of servings and waste are all weighed to the nearest
gram during the production process. The historical data accumulated
during the manufacturing process is utilized to enable quality assuranceof products. At the same time, the system enables corrections in production quantities, whichhelps reduce waste.

Offering Safe and Secure Products

Quality Control through HACCPChecking weights after chilling

Measures for Healthiness
Considering the health of those customers who shop at convenience
stores regularly, LAWSON considers not only the taste but also each
ingredient and the nutritional balance of its meals, including oftenneglected vegetable content. Since 2003, we have developed a numberof new health-focused food products under the supervision of the Osaka
Medical Center for Health Science and Promotion, which have since
been sold throughout the Kinki region.
In August 2007, we held a contest for convenience store boxedlunches and solicited ideas of original boxed lunches from students in
Osaka who aspire to become registered dieticians. Four boxed lunches
earned the Osaka Governor’s Award in recognition of such outstanding
ideas as “including large amounts of vegetables,” “using low calories,”and “using less salt.” Consecutive introduction of these boxed lunches
at LAWSON stores started in the Kinki region from November 2007.

In response to a great emphasis on health by our customers, wehave begun offering some NATURAL LAWSON products at our LAWSON
stores all over Japan. We plan to continue to increase the number ofsuch product varieties to meet the requests of customers nationwide.

Four boxed lunches selected for the Osaka Governor’s Award

Preventing a Recurrence of the Use of Oden Ingredients Beyond the Sell-by Date
—Implementing Thorough Quality Control in Stores—

In November 2007, it was learned that oden (hot pot dish) ingredients at one LAWSON store were sold after the sell-by date. LAWSON sincerely apologizes to
its customers for this incident and any problems this may have caused.
An investigation into the cause of the problem revealed that the store involved incorrectly assumed there was no safety issue because the ingredients had
already been heat-treated. Based on this erroneous belief, the store thus sold ingredients that were from one to two days beyond the sell-by date. LAWSONHeadquarters had implemented a checking system at all our stores but failed to ascertain that the system was being operated contrary to the manual.

As measures to prevent a recurrence, we are implementing education not only for the store involved but for all LAWSON stores, while reviewing
our checking system at stores. We are also taking the following measures.
(1) Implement spot investigations by external institutions (one per year)(2) Implement monthly investigation by supervisors (previously conducted twice per year prior to improvement measures)(3) Check sell-by dates of ingredients for products sold at check-out counters before 12:00 a.m. daily and record in operations notebook.
Dispose of all products with expired sell-by dates.
(4) Make additional provisions and revisions to our manual stating that ingredients for products sold at check-out counters with expired sell-by
dates will not be stored.

24

Kara-age Kun
Fried Chicken Nuggets
Step by Step

Kara-age Kun crispy Japanese-style fried chicken nuggets were introduced 22 years ago. Kara-age
Kun nuggets have become a favorite of numerous customers and we have steadily cultivated thisproduct, with shipments now reaching 500,000 pieces per day. Long before Kara-age Kun and otherproducts are delivered to customers, however, LAWSON implements a variety of safety and hygiene
management measures in addition to quality-control procedures at production plants and stores. In
the future as well, we will continue to provide customers with safe and tasty Kara-age Kun.

Pre-Production

Ingredient Selection

In selecting the chicken meat and other ingredients used for Kara-age
Kun, we visit poultry farms and production plants, respectively, toconfirm manufacturing processes and quality control procedures.
What procedures are used for other products?
We established the Raw Materials Purchasing Department for selecting new
ingredients for such items as rice balls, boxed lunches, side dishes, sandwiches
and pasta, and implement periodic checks at new and existing business
partners. For example, when selecting salmon for rice balls, we ascertain thetype of feed and methods used for farming salmon, the processing plantfacilities used and process management.

Confirmation of Product Specifications

Once product specifications have been set, production documents areinspected and production on an actual manufacturing line takes
place to confirm safety and other important factors. For new flavor
Kara-age Kun products as well, we carry out various types of stringent
testing that include hygiene inspections, metal inspections, weightinspections as well as strict testing for preservation and flavor.
Only products passing this strict testing reach store shelves as
new products.

StoresTimes and dates of thawing and unsealing arerecorded to ensure that sell-by dates can be
confirmed.

A store hygiene inspection report

25

Quality Control at Stores

At stores, in addition to temperature checks fourtimes per day, supervisors also perform regularhygiene checks. Also, on-the-spot hygiene inspections
by external institutions, including inspections of thestate of food management, are made once per year aspart of our thorough temperature- and freshness-level
control.

Quality Control at Time of
DeliveryAccurate and quick deliveries are ensured throughefficient sorting and loading, adhering to prescribedtemperatures and times in accordance withpredetermined operating procedures. Delivery
vehicles are equipped with temperature gauges andthe state of product preservation is continuallymonitored.

Special Emphasis on Hygiene Control

Plant Manager
Nichirei Group

Manufacturing
Plant

1

Shipment Arrival and Thawing

To ensure the safe handling of raw meat, hygiene inspections are
performed when shipments arrive. At the same time, quality is verified
through inspections for foreign substances.

6
Metal Check Inspection and X-Ray
Inspections

2
X-Ray Inspection

Foreign substances, mainly bone, are removed through X-ray inspections.
To find even the smallest bones, such as those shown in the picture(upper right), two X-ray machines are used and a skilled specialist
determines whether any foreign substances were overlooked.

3

Selection

Finished products undergo a metal inspection and an additional X-ray
inspection to ensure no contamination by foreign substances during
processing. The metal inspection is performed carefully after packaging.

Upon passing the X-ray inspection, the meat is subject to visual and handinspections, and feathers and other foreign substances difficult to detectwith x-rays are removed.

5

Quick Freezing

Offering Safe and Secure Products

Mr. Michihisa Saito

Nichirei Foods Group has been involved in the manufacture of Kara-age Kun since this product was first launched. At our
production plant, above all we pay careful attention to quality control. Because we process raw meat, we undertake hygiene
control inside the plant and make bacteria inspections during the manufacturing process. We have also established separate
staff entrances for processing and packaging to ensure that respective personnel involved in these areas do not move back andforth between each process.
Kara-age Kun has been a top-selling product for 22 years. Due to its longevity, there are always features of this productthat can be improved and others that should remain unchanged. Therefore, developing new flavors always proves to be adifficult task. In view of this challenge, I am particularly gratified when Kara-age Kun achieves solid sales. Having been involvedin manufacturing the product for many years, I have utmost confidence in the quality and flavor of Kara-age Kun. In the future, I
will make my best efforts to create products that meet customer expectations to ensure that numerous Kara-age Kun products
reach the shelves of LAWSON stores.

To maintain quality, fried chicken meat is then subjected to quick freezingat –20°C. Samples are extracted on a regular basis to check temperatures.

4
Processing

Flavor is added to the chicken meat that passes inspection. The meat isshaped and then deep-fried in batter. As part of this process, chicken
meat is prepared in a manner that allows for additional heat processing,which enables the chicken meat to retain its juiciness even when reheatedat LAWSON stores.

26

Together with the Local
Community
LAWSON aims to fulfill its role as “The ‘Hot’ Station in the Neighborhood”
through a nationwide chain of stores that seek to satisfy the needs ofcustomers in each area and ensure a safe and comfortable life for everyone.

Store Network Expansion to Meet Customer Needs
Customer needs are becoming more diversified in line with changes inthe social environment. At LAWSON, we actively promote reforms atypical of existing convenience store methods in order to meet the specificcustomer needs in each surrounding area.

NATURAL LAWSONNATURAL LAWSON stores strive to makepeople’s lifestyles more beautiful, healthy
and comfortable. These stores are established mainly in busy urban office areas
where there are many professional
females and quiet residential areas.
The stores feature an array ofhealthy, low-calorie boxed lunches and other prepared meals that provide balanced nutrition and include seasonal ingredients. Conscious
efforts are also made to offer organic food, as well as cleaning agentsand cosmetics that use natural materials so customers can shop withreassurance.

LAWSON STORE100
These stores provide both fresh and processed foods mainly at the reasonable price of ¥100 (excluding consumption tax), making it a pleasant
place to shop for its core customers of housewives and senior citizens.

Placing an emphasis on freshness
and quality, these stores provide seasonal products such as vegetables andfruit at the best time of year. It is also
possible to buy in small portions, whichsuits smaller families. We continue todevelop the Value Line Series of ourprivate-brand products, which have been well received bymany customers.

LAWSON PLUS
LAWSON PLUS stores are designed tomeet customers’ need in the surrounding area, and offer products and services that provide a bit “extra” comparedwith other LAWSON stores. These storesare a hybrid of stores predominantly inprovincial areas in which senior citizens
feel comfortable shopping and stores
mainly located in urban centers that
focus on providing fresh food to housewives. We have been proactively establishing new LAWSON PLUS stores
since January 2007.

Developing Products that Use Local Ingredients
Community-based initiatives go beyond store development and include
product development. In recent years, amid higher expectations for local
production and local consumption, LAWSON has been developing original area-specific products using local ingredients, as well as seasonings
and confectionaries that suit local tastes.
In addition, LAWSON brings the cuisine of each region nationwide
by utilizing our strengths as a nationwide chain. To celebrate the G8
Hokkaido Toyako Summit, LAWSON sold boxed lunches featuring

Hokkaido cuisine as well as special
Hokkaido chicken and two-coloredrice in the 23 wards of Tokyo in June
and July 2008.

Boxed lunch with specialty food from Hokkaido

Comprehensive Alliance with Japan Post Holdings Co., Ltd.
In February 2008, LAWSON agreed to form a comprehensive alliance with Japan Post Holdings Co., Ltd. with the aim ofincreasing customer convenience nationwide and contributing to the local community. Specifically, the two companies will
look into creating a new business model for providing LAWSON goods and services at post offices, mutually utilizing realestate assets to open new branches and locations and jointly developing goods and services. Other areas of focus will
include joint purchasing and delivery of goods and services and determining the most effective way of using finances andhuman resources in order to increase management efficiency at both companies.

27

Cooperative Operations through Partnership Agreements with Local Authorities
LAWSON aims to be “The ‘Hot’ Station in the Neighborhood” as a popular spot loved by local customers by promoting community-based store
management and extensive regional contribution activities. As part ofthese efforts, we are pushing ahead with regional cooperative operations through partnerships with local authorities aimed at making communities more convenient and easier to live in, while also driving
regional development. Beginning with Wakayama Prefecture in August
2003, we had concluded 19 agreements with local authorities by the endof June 2008. Examples of successful initiatives include the developmentof products that use items made in a particular prefecture, events forchildren and distribution of “Bring Your Own” bags.

nInclusive Partnership Agreements with Local Authorities(as of June 30, 2008)

Date of signing
8/1/03

Partner
Wakayama Pref.

Date of signing
9/14/07

Partner
Kagoshima Pref.
Nagano Pref.

4/24/06

Mie Pref.

9/19/07

5/1/06

Tottori Pref.

10/31/07

Kochi Pref.

8/9/06

Toyama Pref.

12/17/07

Kumamoto Pref.

9/30/06

Saga Pref.

2/21/08

Hokkaido Pref.

12/4/06

Tokushima Pref.

3/13/08

Kagawa Pref.

3/7/07

Fukui Pref.

5/30/08

Yamagata* Pref.

5/9/07

Oita Pref.

6/23/08

Iwate Pref.

6/4/07

Miyazaki Pref.

6/24/08

Yamanashi Pref.

7/10/07

Okinawa Pref.

6/30/08

Saitama Pref.

nHokkaido
Commemorated the G8 Hokkaido Toyako
Summit with Tree-Planting ActivitiesnIwate Prefecture
Provided Relief Aid to Earthquake VictimsnSaitama Prefecture
Offset 1 kg of CO2 with Each Pack of
Kara-age Kun Fried Chicken Nuggets

To commemorate the G8 Hokkaido Toyako Summit
held in July 2008, we conducted tree-planting activities in Hokkaido. In Toyako, we planted 2,000
trees, including Mizunara (Japanese oak) andmaple, to help curb global warming. We also distributed 50,000 “Bring Your Own” bags aimed at
reducing plastic shopping bags and sold boxedlunches made with local ingredients such as salmon
and squid to mark the occasion of the summit.

We concluded an agreement with Iwate Prefecture
concerning efforts to ensure support, safety andassurance in regions struck by natural disasters. We
provided relief aid to Ichinoseki and Oshu cities
after the 2008 Iwate-Miyagi Nairiku Earthquake. A
total of 860 LAWSON stores in the six prefectures of
Tohoku and Niigata Prefecture collected donations(see page 29).

To help support a major sports event in Saitama in
July 2008, LAWSON distributed 50,000 venue mapsthat included a discount coupon for Kara-age Kun atthe venue itself as well as 332 stores prefecturewide. We offset 1 kg of CO2 for every pack soldusing the coupon. We also gave out 35,000“Bring Your Own” bags printed with the Saitama
Prefecture mascot.

nNagano Prefecture
Held Morning Markets to Promote Local
Production for Local ConsumptionnKochi PrefectureMarketed Products Using Locally Produced
Japanese GingernOita Prefecture
Supported 1st Asia Pacific Water Summit

In FY2008, we started our “LAWSON Morning
Market” at the Zenkojishita store in Nagano topromote local production for local consumption.
Beginning in May, the markets are held once amonth in line with the prefecture's slogan, “Enjoy
the taste of the Shinshu region weekend*.” Besides
selling fresh vegetables picked that morning anddelivered directly from farmers in Nakano City and
Iizuna Town, the markets are an ideal place forfamilies to come and enjoy the day.

LAWSON stores in Kochi Prefecture have set up
community noticeboards as well as prefectural
police boards to provide information on suspicious
individuals. In addition, umbrellas are lent to children at times of a sudden downpour. These storesalso sell original products such as pickles and side
dishes using Japanese ginger, a regional specialty
that boasts the highest product yield nationwide,and pudding made using locally produced eggs.
This helps to increase familiarity with produce from
Kochi prefecture.

In support of the 1st Asia-Pacific Water Summit held
in Beppu City in December 2007, LAWSON displayed posters and stickers of the summit in storesthroughout the city. We also presented display panels introducing LAWSON’s environmental protection
activities at Beppu and Oita stations, and distributed 5,000 limited-edition original summit “BringYour Own” bags.

*Families come to savor the taste of local produce from
Nagano Prefecture every month.

Together with the Local Community*An environmental protection agreement was signed with Yamagata Prefecture.

28

Agreements to Provide Support during Disasters
LAWSON stores strive to become major support lifelines in the event of
natural disasters by remaining open and providing uninterrupted operations (see page 44). We have concluded agreements with regional agencies and other organizations to offer support during natural disasters by
supplying provisions and supporting people who are forced to return totheir homes on foot.
In July 2006, we signed an agreement with the Japanese Red Cross
Society involving the procurement of provisions in the case of major
calamities. Under the accord, if a large-scale disaster strikes we will doour utmost to supply provisions in disaster-stricken areas. As of June 30,
2008, we had signed 49 such agreements with local governments andcorporations.
We also have entered agreements to provide assistance to people
stranded and forced to return to their homes on foot in the event a disaster renders other modes of transport inoperable. LAWSON also has
pledged its cooperation in providing sanitation facilities, tap water andinformation. As of June 30, 2008, we had signed agreements with a
total of 28 local governments.

Agreement with Saitama Prefectural Government in November 2007

Sticker declaring that the store will
provide assistance to return home
after a disasternAgreements to Procure Provisions Signed in or after FY2007(as of June 30, 2008)

Date ofsigning

Partner

Date ofsigning

Partner

3/29/07

Tottori Pref.

11/27/07

5/28/07

Miyagi Pref.

11/27/07

7/24/07

Ishikawa Pref.

Date ofsigning

Partner

Saitama Pref.

2/21/08

Hokkaido Pref.

Toyama Pref.

3/24/08

Fukui Pref.

12/18/07

Aomori Pref.

3/27/08 Fukushima Pref.

7/30/07

12/19/07
Yokohama New
Transit Co., Ltd. 12/21/07

Shizuoka Pref.

4/23/08

Osaka Pref.

5/29/08

9/21/07

Nagasaki Pref.

2/13/08

Shimane Pref.

6/23/08

11/22/07

Kochi Pref.

2/18/08

Tochigi Pref.

6/24/08 Yamanashi Pref.

Kagawa Pref.
Kagoshima
Pref.
Iwate Pref.

nAgreements for Assistance to Displaced People Signed in orafter FY2007 (as of June 30, 2008)
Date ofsigning

Partner

Date ofsigning

Partner

3/9/07

Oita Pref.

6/24/08

Kagawa Pref.

Disaster Relief Funds
LAWSON provides help to areas stricken by large-scale disasters by
replacing its LAWSON Green Fund collection boxes with a special disaster fund appeal for a limited period. In FY2007, we contributed¥35,677,179, including headquarters’ donations, to the Niigata
Prefectural Government for distribution to the victims of the Niigata-ken
Chuetsu-oki Earthquake. We also provided disaster funding as outlined
below to deliver the donations of people from across the country to thevictims of disasters. We sincerely thank the customers for their monetary
support.

Presenting a register of relief funds for the victims of
Niigata-ken Chuetsu-oki Earthquake to the Niigata
Prefectural Government on August 14, 2007

nDisaster Relief Funds Collected during or after FY2007 (as of June 30, 2008)
Fund

PeriodAmount collected(1,220 stores)

March 26 – April 10, 2007

¥4,343,228

Niigata-ken Chuetsu-oki Earthquake Relief Fund All stores in Japan

(8,516 stores)

July 17-31, 2007

¥35,677,179

Sichuan Earthquake in China Relief FundAll stores in Japan

(8,518 stores)

May 14-31, 2008

¥42,247,555

Iwate-Miyagi Nairiku Earthquake Relief FundAll stores in Tohoku region (6 prefectures) andNiigata Prefecture (except Joetsu area)

June 15-30, 2008

¥3,129,431

Noto Hanto Earthquake Relief Fund

Collection area

All stores in Tokai, Hokuriku, Koshinetsu regions(860 stores)

Measures to Make Regional Societies Safer and More Secure
Recently, convenience stores have been called upon by society toinitiate measures for crime and disaster prevention, public safety andyouth education.
LAWSON participates in activities of the Japan Franchise
Association’s Safety Station movement, an autonomous organization
formed by convenience stores with support from the relevant municipal
and law-enforcement agencies. Through these activities, we aim tocreate a focal point for safe and secure lifestyles in the neighborhood29

and ensure that environments are safe
for youth. By reinforcing systems to prevent robbery and other crime and acting
as a refuge for women and children who
feel threatened, the Safety Station movement provides an industry-wide platform
for fulfillment of social responsibility.
Poster advertising the Safety Station
movement

Making Stores User-Friendly

Guide Dogs and Service
Dogs

Barrier-Free Stores
LAWSON is promoting the floor space and access points of its stores as
barrier-free zones to better accommodate senior citizens, expectant
mothers and other customers with special needs. We have eliminatedsteps at the entranceways to new stores, and since FY2006, new storeswith parking lots have one dedicated parking space for customers using
wheelchairs. Moreover, toilets have been furnished with easy-to-use
Western-style seats and handrails, and access has been improved withsame-level floors.
Also, we have introduced shopping carts and large-print price tags
at designated LAWSON stores in an effort to make our stores userfriendly for elderly people.

Guide dogs for the visually andhearing impaired and dogs assisting
individuals with other disabilities
are welcome to enter LAWSON
stores.

Sticker displayed on theglass front of LAWSON
stores declaring that guide
dogs are welcome

Western-style toilets with safety handrails

Deterring Underage Drinking and Smoking
have been placed in stores. We will makefurther efforts to ensure a complete ban onsales of alcohol and tobacco to underagecustomers.

Together with the Local Community

To prevent underage consumption of alcohol and tobacco, we demand
proof of age from all customers except for those who appear to beclearly over the legal threshold. LAWSON also displays posters andmakes in-store announcements to heighten customers’ awareness of thisissue. Posters guiding personnel on how to appropriately confirm a customer’s age in line with the introduction of “taspo” (an ID card systemfor purchasing cigarettes initiated by the Japanese tobacco industry)

Poster educating staff how toproperly check age

Encouraging Good Smoking Manners
As LAWSON stores are no-smoking areas, ashtrays have been locatedoutside the doors for customers to extinguish their cigarettes before
entering. Recently, regional legislation has been introduced in Japan toprohibit smoking on pavements and walkways. In response, LAWSON
has introduced new restrictions for the benefit of smokers and nonsmokers alike. Where bylaws prevent smoking on sidewalks, as a rule
we have removed ashtrays. If bans are not yet enforced, ashtrays arerepositioned away from store entrances. Also, to reinforce adherence tosmoking policies and disposal etiquette, in cooperation with Japan Tobacco Inc., we display stickers
at disposal points.

Sticker showing propersmoking etiquette

Gateway to a Host of Services
Electronic Payment Terminals
Customers have been able to make electronic
payments at LAWSON stores*1 nationwide
since March 2007. At present, the stores
handle three types of payment service:“iDTM*2,” “QUICPayTM*3” and “Edy*4.” By
diversifying payment methods and shortening time spent at the cash register, we havefurther enhanced customer convenience.
*1 Excludes certain stores*2 “iDTM” is a trademark of NTT DoCoMo, Inc.
*3 “QUICKPayTM” is a recommended scheme of the Mobile Payment Promotion Association(MOPPA)*4 “Edy” is the brand name of the prepaid-type electronic money service operated by
bitWallet, Inc.

Automated Teller Machines (ATMs)

We had tie-ups with 24 financial institutions, including all the nation’scity banks and certain regional banks, and had 5,659 ATMs in place.
We plan to expand our services to raise the level of convenience
to customers.

Loppi Multimedia Data Terminals
LAWSON stores are equipped with Loppi multi­
media data terminals. These multifunctional units
facilitate sales of concert and other event tickets
handled by LAWSON TICKET, INC., and the “toto”
sports promotion lottery, transport tickets andleisure ticket reservations, DVD reservations andapplications for certification tests. Loppi terminals
will offer more services in the future.

LAWSON stores are furnished with ATMs that facilitate withdrawals
using cash cards issued by local and regional banks and other financial
institutions as well as cash loan functions offered by credit companies.
As of June 30, 2008, LAWSON offered ATM services in 36 prefectures.

30

“Every Store Can Help” Campaign

In 1997, LAWSON started the “Every Store Can Help” campaign. Through thisprogram, each store pursues activities that contribute to its community depending
on respective needs aimed at making people in the neighborhood happy.

Cleaning the Town Together with Local High School Students
Mr. Kenichi Nishiyama, Store Owner, Noheji Koukou-mae Store (Aomori Prefecture)
We cleaned up along the roadside and created flowerbeds together with volunteers from Aomori
Prefectural Noheji Senior High School, which is located adjacent to the store. Although we have beencleaning up the roadside in front of the store for a while now, we were never able to get rid of all the
rubbish and wondered if there was a better way when we heard about the High School volunteer
group. This group helps us clean up the area every week. For added encouragement, we began issuing original coupons that can be exchanged for pre-paid cards. Around 1,000 seedlings were given to
us by the municipal government for the flowerbeds.
Since starting activities with the volunteer group, we have succeeded in reducing the amount of
rubbish on the road and in the surrounding area. We will continue to work with the local community
to make the town more beautiful.

Cooperation in Event to Collect Recycled Candles
Mr. Hideki Hashimoto, Store Owner, Osaka Sangyo Daigaku Store (Osaka Prefecture)
The Junior Chamber International Daito, of which I am deputy director, held an event in November 2007 tocollect and light recycled candles made of used tempura oil and milk cartons. The event was aimed at reaffirming the value of everyday items and raising awareness of environmental issues. Our store and the eight
other LAWSON stores in Daito City served as collection points. Many candles were collected, making the eventa huge success.
We will continue to conduct activities as a friendly neighborhood convenience store together with thelocal people to lift their spirits.

Always Thinking about Bringing Excitement to Our Customers
Mr. Hideaki Doi, Store Owner, Iyo Tobe-cho Store (Ehime Prefecture)
Around our store, there is Tobe Zoo, a sports park and various craft shops with “tobe-yaki” pottery, a source of local pride. Thinking of how to brighten the lives of people in Tobe by making useof our unique character, we put up a “tobe-yaki” map.
The map uses wood in true local style with sear iron prints, and includes photos of pottery andlocal viewing spots taken by LAWSON employees. We also distribute pamphlets and hold exhibitions of “tobe-yaki” crafts. In addition, we have painted an illustration of the zoo featuring
giraffes, lions and other animals in our parking area, which is particularly popular with children.
Our store recently celebrated 20 years in business. We aim to make it as welcoming as possible
so that customers are happy.

“Every Store Can Contribute” Campaign in Fukui Prefecture
As part of a comprehensive agreement concluded with Fukui Prefecture in March 2007, LAWSON has beenpromoting its “Every Store Can Contribute” campaign in which all of its stores in the prefecture makeefforts to contribute to respective local communities. Besides clean-up activities around each store, we
provide store parking areas for morning markets to help encourage local production for local consumption.
Some stores also lend umbrellas to primary school students on rainy days. This initiative has a true local
flavor of the Hokuriku region, where the weather is particularly changeable.

31

Social Contribution
Activities

LAWSON, not only as individual stores but also as a corporation, is abusiness supported by many people every day. We recognize this fact andare working to contribute to society in various fields, including providing
support for children, the international community and sports.

For Children, the Leaders of Tomorrow

Kyoto Student City
In January 2007, Lawson opened a training store in Kyoto Student City.
Established by the Kyoto City Board of Education and the Japanesebranch of Junior Achievement, the world’s largest economic educationgroup, the Kyoto Student City work–study facility is used as part of thecity’s fifth-grade elementary school curriculum.
As well as a LAWSON store, lining the street of the Kyoto Student
City community are a ward office, bank, newspaper headquarters andpickle purveyor, created through the cooperation of 12 companies andgroups. After studying social and employment-related mechanisms, children engage in hands-on activities.
The activities of the LAWSON training store involve working withcustomers and operating the cash register. Over time, initially shy children grow increasingly confident and learn to greet customers in a loudand cheerful voice. The work helps children learn by enjoying a range ofexperiences.

Leading-Edge Social Study Program
On July 30, 2007, a Leading-Edge Social Study Program sponsored by
the Future Innovation Forum took place for the second consecutive year.
As part of the program, a LAWSON store staff trainer led 14 Kanto area
elementary school students in experiencing a “leading-edge convenience store” by performing such tasks as greeting customers, cleaning,
operating the cash register and preparing Kara-age Kun. The children
worked enthusiastically at an actual LAWSON store, and at the program’s conclusion, had the chance to voice their opinions and ask
questions to LAWSON President and CEO Takeshi Niinami.

Social Contribution Activities

LAWSON is eager to give children, the leaders of tomorrow, an opportunity to learn and think independently through work. For that purpose,certain stores host social studies field trips for primary school students
and on-site training for junior high school students. Other social contribution activities include providing a space for children to learn about
how society works and the means of interaction in cooperation withoutside groups.

Children with LAWSON President and CEO Takeshi Niinami after the program

JUNEC Asia Forum 2007

LAWSON training store exterior

LAWSON participated in the Junior United Nations Eco Workshop(JUNEC) Asia Forum 2007 on November 18, 2007. This forum encourages discussion among junior and senior high school students on “theenvironment, culture and people.” This year the theme was “the environment and people” and around 30 junior and senior high school students
were asked to consider the “Bring Your Own” movement.
Participants discussed what kind of bags and chopsticks they would
like to carry and what could be done to encourage more people to do
the same. Each group presented their ideas, which included fresh andexciting concepts unique to young students.
Some were of the opinion that a charge should be attached toplastic shopping bags and disposable chopsticks, or that they should be
abolished altogether. The event was successful in raising awareness ofthe need for environmental preservation.

Learning about how the cash register works

Each group engaged in lively discussions

32

Supporting Families with Children
HAPPY LAWSON Stores for Families withChildren
As a way to support families with children, LAWSON has been promoting its “Happy Child-Raising Project.” The idea arose from the theme ofthe prizewinning entry in a contest held in 2005 to commemorate our30th anniversary that solicited ideas on “The Convenience Store of the
Future,” with the winning entry entitled “Convenience stores that support raising kids.”
In March 2006, we formed a project team to drive the idea forward,
opening the HAPPY LAWSON Nihonbashi store* in December 2006 andthe HAPPY LAWSON Yamashita Koen store in July 2007. We incorporated many of the ideas raised by families with children such as making
the aisles wide enough to accommodate a baby carriage, adding a playarea for kids and setting aside a space for caregivers to take a break.
We also bolstered our lineup with disposable diapers, baby food,picture books, toys, as well as products to help soothe harried mothers.

HAPPY LAWSON Yamashita
Koen store*The Nihonbashi store was designed to operate for a limited trial period and closed its doors inJune 2007
The stores occasionally holdpicture book reading sessions.

“Miffy” Gift Campaigns Contribute to Charity
As part of its child-raising support project, LAWSON runs gift campaigns
offering originally designed small dishes, mugs and other goods adorned
with the popular Miffy character created by artist Dick Bruna of theNetherlands. For each promotional item offered through the campaign,
LAWSON donates ¥1 to the Japanese National Council of Social Welfare
and the Japanese Mother and Child Life Support Foundation. In FY2007,
we donated around ¥10 million worth of products through the spring
and autumn campaigns.
Promotional products featuring illustrations by Dick Bruna©copyright Mercis bv, 1953-2008 www.miffy.com

Regional Beautification Initiative
LAWSON staff and their families actively participate in clean-up activities
to promote a more beautiful community.

Arakawa Clean Aid
Arakawa Clean Aid was held in
November 2007, with 83 people
pitching in to collect a total of 61
bags of garbage. This was the
13th time the event to clean up
the Arakawa riverside had been
held since starting in 1994. Tests
on water from the river were also
conducted, which showed a positive improvement compared withresults taken during the event’s first year.

Fukuoka Love Earth Clean-Up
LAWSON took part in the 14th “Fukuoka Love Earth Clean-Up” event
held in June 2007. Every year, we cooperate with the clean-up activities
organized by the NPO Clean Fukuoka Group. A total of 2,231 people

33

gathered to clean Ohori Park inFukuoka City, including 86 LAWSON
employees and family members,
helping to collect 380 bags ofgarbage.

Yokohama Clean-Up Activities
In cooperation with the city of Yokohama andother supporting companies, LAWSON began
regional clean-up activities in participation
with local residents in December 2006. We
implemented a campaign with the slogan“Clean and Delightful Yokohama.”
In April, October and December 2007, we
distributed original bags for people to use to
take their garbage home and cleaned up
inside various venues on designated days.
The amount of collected garbage decreases
every event as people become more aware of
the activities.

Supporting Customer Social Contribution Activities
Environmental and Social Contribution Option
via LAWSON Point Member Card

This association provides friendly
guide dogs to help the visually
impaired move about safely.

LAWSON PASSnNPO Education Sponsorship in Asia (ESA)
ESA provides support ensuring abasic level of education for many
children in Bangladesh and India
based on the concept that education helps preserve human dignity
and makes a major contribution
to overcoming poverty and discrimination.

MY LAWSON POINTnRegistered NPO Caring for Young Refugees (CYR)
CYR helps operate care centers in
Cambodian villages and cities,
working with local residents tocreate safe and stable environments for children.

© Masanori KobayashinRegistered NPO Bridge Asia Japan(BAJ)
BAJ provides vocational training for women,
refugees and others who face difficulties, andhelps them convert acquired skills into income.

Social Contribution Activities

The point programs of LAWSON point member
cards have an Environmental and Social
Contribution option that lets cardholders contribute to society as they make purchases.
Using this option available since 2003, 50
points are exchanged for ¥50, which is donatedto organizations that carry out environmental
and social contribution activities.
Funds generated in FY2007 totaled¥3,996,750, which was donated to the following six organizations.

nJapan Guide Dog AssociationnNPO Ecology-CaféThis NPO provides learning
opportunities to children based
upon ecosystem conservation andpreservation activities that help
them learn about the naturalenvironment.

nNational Land Afforestation Promotion Organization(LAWSON Green Fund)This organization supports forest management activities in Japan and overseas
as well as school greening initiatives.
*Please refer to page 11 for details on the LAWSON Green Fund.

Supporting Sports for All
Official Partnership with the Japan Sports
Association — Supporting Sports throughout
Japan
LAWSON is the only retailer
with an official partnership andcomprehensive cooperationagreement with the JapanSports Association. We displayed signs and put up posters
advertising sports events in
Akita and Nagano in 2007 andsold original boxed lunches inline with the events. We continue to work toward an environment in which leisure sports
activities are more accessible
for people in communities
throughout Japan.

Japan Sports Association Chairman Yoshiro Mori
(former Japanese Prime Minister) and LAWSON
President and CEO Takeshi Niinami

LAWSON Cup Mothers’ Volleyball
Tournament—Serving to the WorldAs part of its contribution to a
happy and healthy society,
LAWSON has hosted the“LAWSON Cup Mothers’
Volleyball Tournament—
Serving to the World” since2005, and aims to promote
mothers’ volleyball as a
Winning team in 2008
worldwide and lifelong sport.
Every year, teams thatwin in regional elimination rounds compete in national finals. The
winning team and the first runner-up then tour overseas, participating ininternational friendship matches.
For four days from March 20, 2008, we held the Third LAWSON Cup
at the Hamamatsu Arena in Hamamatsu City, Shizuoka Prefecture. The
48 winning teams of regional elimination matches, in which about
50,000 players from 3,030 teams participated, represented each prefecture in Japan and gave a thrilling performance during the competition.

34

Together with Customers
Customers' opinions are a valuable asset for LAWSON. By listening carefully
to their opinions and desires and doing our best to respond to each andevery customer, we can provide products and services that achieve ultimate
customer satisfaction.

Achieving Customer Satisfaction
To bolster customer satisfaction, we place emphasis on the three key
areas of “following the three challenge practices,” “providing quality
products” and “operating in convenient locations.”
The three challenge practices entail ensuring merchandise assortments are tailored to individual stores*, promoting cleanliness in storesand neighborhoods and ensuring courteous customer service.
At the same time, we aim to bolster our product lineup to satisfy
customers through providing safe, secure, healthy and tasty products.
Moreover, when opening new stores we are ever mindful of operating inconvenient locations.
LAWSON’s core views on customer satisfaction are manifest in its
three challenge practices, and its resolve to provide quality products andoperate in convenient locations. These directives are inextricably linked
to our drive to make LAWSON “The ‘Hot’ Station in the Neighborhood.”
We are working to build stores that make the people of the neighborhood say, “Thank heavens for LAWSON!”*L AWSON operates under the principle of “individual store orientation,” which refers to
tailoring each store to the customers of a region, rather than insisting on uniform store
management and product lineups.

nLAWSON’s Views on Customer Satisfaction
LAWSONcustomersatisfaction
Three challenge
practices＋
Quality products

Three challenge
practices
Ensuring
courteousservice for ourcustomers

Security

Quality products
HealthTastiness

Convenient
locations

We are redoubling our efforts to provide courteous store services, taking
into account customers’ opinions and requests. As we place a high priority on cultivating human assets, we stress high levels of hospitality during personnel training, combining such educational tools as manuals
with practical in-store training.
LAWSON conducts seminars for franchise stores and carries out training for franchise owners and store crews to ensure that the three challenge practices permeate the organization. (Please refer to page 38 for
information about the LAWSON training system for franchise owners andstore crews.) We will further raise customer satisfaction levels throughcontinued application of this strategy.

Individual
storeorientation
Creating storesthat bring happinessto local customers

Three Challenge PracticeslEnsuring Merchandise Assortments Are Tailored to
Individual Stores
Based on the principle of “individual store orientation,” we aim to create
stores that are attuned to local customers, firmly linked to their neighborhoods and therefore able to provide products on demand. Every
LAWSON store uses store charts* to round out its product offerings.
By surveying each store’s sphere of operations, taking into account store
locations, climate and local activities, we tailor product lineups toresidents in the vicinities of each store.
*Store charts are tools that each store uses to analyze its trade area and facilitate tailoring
stores to the respective areas.

35lEnsuring Courteous Customer Service

LAWSON has maintained pride in its ability to deliver delicious, safe
products to customers since its founding. The headquarters and storesare unified in their productdevelopment to ensure that the
products that reach customers
are safe, secure, healthy andtasty. (Please refer topage 23.)＋

PromotingcleanlinessTo make visits to LAWSON more enjoyable,
we keep our stores and their surrounding
areas clean. Through these endeavors, we
aim to enhance the lifestyles of local citizens.

Quality Products

Convenient locations

SafetylPromoting Cleanliness in Storesand Neighborhoods

Convenient Locations
LAWSON actively seeks to open
stores in new locations such as insideschools, hospitals, post offices, subway and train stations, airports andexpressway parking areas. Each store
is tailored to the specific characteristics of each location in order to best
respond to customer needs.

LAWSON store in the South Wing of Haneda
Airport Terminal 1

Customer Feedback Structure
The LAWSON Customer Center functions as a specialized section to
respond to customer inquiries, opinions and requests 365 days a year. To
raise customer satisfaction, these comments are integrated into creating
new stores, developing products and providing new services.
Customer feedback is directed to the appropriate department, where it
receives a prompt and sincere response. Using the Company Intranet andin-house publications, issues are shared with all employees with a viewto making any necessary improvements.

Reply to customer

Customer Feedback
LAWSON
Customer Center

Stores, Offices

Supervisors, departments

Reporting at
divisional
head meetings

Network-based
customers’ comments
Shared at headquarters

Explanation of improvements, etc.

nCustomer Feedback Structure

Feedback to LAWSON Customer Center
nBreakdown of Customer Comments during FY2007

2.3%
Store locations 2.9%
Inquiries

Together with Customers

Each year, the number of comments that our customer center receives
rises significantly, owing to such factors as an increase in the numberof new services. In FY2007, we received 39,573 comments andinquiries due to an increase in the number of stores and in food safety
related queries.
The highest ratio of comments, at 44.7%, concerned store operations. Next were products and services at 35.0%. These two categories
accounted for 80% of the total number of comments received.
In the store operations category, we noticed a particular increase incomments concerning customer courtesy and product management.
Regarding products and services, we received comments about Loppi
multimedia data terminals and the LAWSON Mobile website. Comments
concerning product quality and details were particularly prevalent in2007 owing to the much-discussed issue of food safety.
There was also a surge in environment-related comments, as well as
requests for less noise and garbage around stores. We will continue toshare such customer feedback throughout the Company and reflect feedback through further improvements.

Other

10.9 %

Advertisements,
commercials
and campaignsStore
operations

Total

39,573 44.7 %4.2%

Products
and services

35.0 %

nNumber of Customer Comments（No. of cases）

39,57340,00030,00031,87834,36320,00010,000
0
2005

2006

2007 (Fiscal Year)

Implementing Customer RecommendationslMobile Convenience Store for Senior Citizens
LAWSON started a mobile convenience store in Kofu, Tottori
Prefecture, in April 2008. It is operated in collaboration with local
foods supermarkets and stocks around 700 standard supermarket
items inside the vehicle complete with fridge and freezer. Of these,
LAWSON has roughly 30 different products such as original riceballs and boxed lunches. Around 37% of Kofu’s population is over
65 years of age, making the mobile convenience store an extremely
welcome addition to a town that has many steep slopes and where
the nearest supermarket may be many kilometers away. It is particularly handy for senior citizens who do not have their own mode oftransportation.
“Sunflower,” the mobile convenience store, visits various areas in town 1-2 times a week. More than just a
convenience store on wheels, it also provides an opportunity for neighborly interaction.

36

Together with Franchise
Owners and Store Crews

LAWSON cooperates with franchise owners, store managers and store crews
in our pursuit of higher levels of customer satisfaction. Along with employing
various initiatives to assist franchise owners with their operations, we also
exchange opinions with franchise owners, store managers and store crews in
our ongoing efforts to improve our products and services.

Sharing Information and Imparting Our Corporate Philosophy
Franchise owners who participate in the LAWSON Franchise System*1
are responsible for all aspects of operations, including sales, procurement and management of costs and store crews*2. LAWSON supports
franchise owners in various ways, allowing them to concentrate on theirbusinesses.
Supervisors are a bridge between franchise owners and the headquarters, as they support store operations. Supervisors provide information on the latest product trends and changes in the business environment, analyze sales and customer data, conduct market research onareas where franchises operate and offer suggestions regarding revenues and income.
We also hold a LAWSON Seminar semiannually at eight locations
nationwide, where we describe the LAWSON corporate philosophy,
management policy and product trends, as well as offering businessknow-how and analyses of information on a per store basis. We provide

sustained support to make our stores pleasing to local customers by
sharing such information with our franchise owners.
*1 The corporate headquarters provides business know-how, trademarks and other properties
to participating stores, which in return pay a royalty for the right to use these businesssystems. Both the corporate headquarters and participating stores are independent
businesses engaged in a contractual relationship as equal partners.
*2 Part-time workers at stores

Survey of Franchise Owners
Communicating the Issues of Running a Store

Supporting Staff Recruitment

LAWSON surveys franchise owners of all stores to confirm their awareness of and opinions on headquarters policies. In a FY2007 survey, we
received replies from approximately 4,200 stores.
In terms of future issues in operating a store, the number of
responses to “shortage of store crew members” increased the most overthe previous year. Other categories with a greater number of responses
included “insufficient personal time” and “increased expenses,” which
are a direct result of the shortage in store crews.
At LAWSON, we take the results of this survey seriously and do ourbest to enhance our support system to make sure franchise owners canrun their store with assurance.

LAWSON adopted three main policies in
FY2007 in response to the problem of“shortage of store crew members,” a pressing issue facing franchise owners.
First, to show our appreciation toexisting personnel, we give them preferential
treatment for concert tickets in cooperation
with LAWSON TICKET, INC. We will also
implement a self-development system so that
individuals can monitor their degree of personal growth as a means to boost motivation.
Second, we will expand the scope ofrecruitment. As a measure to help recruit foreign workers and make them feel settled,
particularly our numerous store crews from
China, we will create a store manual in
Chinese and an employment manual for
franchise owners. This will facilitate a comfortable environment for both employer andemployee. We will also evaluate hiring people
Owner manuals for recruiting andover the age of 55 in the future.
hiring Chinese students
Third, we will hold study sessions
regarding employment and make a manual on recruitment methods.
We will also propose recruitment methods befitting the characteristics ofeach store.

nFuture Sources of Concerns for Store Management(Multiple Responses Allowed)
71%
70%

Sales (profits)

56%

Shortage of store
crew members
Increased number ofcompeting stores

47%
45%
46%
49%
46%
43%
41%
47%

Insufficientpersonal time
Concerns about health
Increased expenses■ FY2006■ FY2007

19%
17%
15%
15%
15%
14%

Crime-prevention
systems
Cash flow
Succession of
franchise ownership

0

37

64%

10

20

30

40

50

60

70

80

Support Systems for Franchise Owners and Store Crews
Enhancing Training and Support ProgramsFranchise Owner Welfare Association

LAWSON assists the smooth functioning of franchise stores and the realization of customer satisfaction through training and support programs
for franchise owners and store crews. When a store opens, we conduct abasic management course to teach franchise owners the fundamentals of
store management. We follow up with a wide range of courses at training centers located in our branch offices.
In addition, we have a Franchise Owner Support System, wherein
corporate personnel operate franchise stores on behalf of owners whenowners take vacation time. We have also opened a 24-hour support
desk to offer advice on store management to franchise owners. These
programs have been helping relieve franchise owners’ concerns regarding store management.
We also provide franchise store management information throughPal, a business news magazine, and a brochure with information on
store management and recommendations for improving store
operations, both of which are
published monthly.

We at LAWSON want our franchise owners to maintain the vitality theyneed to do their jobs. We have founded the Franchise Owner Welfare
Association to expand and improve social welfare support for owners
and their families, as well as store managers and crews, all grounded ina concept of leisure, health and assurance.
This association has prepared a diverse menu to achieve theseobjectives, including member discounts to sports clubs, accommodation
subsidies, distance learning, health monitoring, and assistance withinterest payments for car rentals, leases and loans through member fees.

nComments to the Store Support Desk in FY2007

0.1%
0.5%
Products, distribution 1.3%
HQ information 3.2%
Device maintenance 8.9%
Verifying contact info 11.0%
Other

Requests, opinions

LAWSON has a Mystery Shopper program, in which the company uses
undercover examiners to conduct anonymous surveys of stores, aiming
to improve the way stores do business. By acting as typical LAWSON
customers, these examiners can take objective views of store productplacement, selections, customer courtesy and cleanliness. Feedback isprovided via supervisors to franchise owners. Based on these findings,
shop owners inspect problems identified in stores, rank them in order ofpriority and take steps to improve operations. We have seen improvements since the program was instituted, especially regarding customer
courtesy and in-store cleanliness.

Together with Franchise Owners and Store Crews

Training center workshop

Mystery Shopper Program

Direct Line to the CEO
LAWSON has a Direct Line to the CEO as a channel of communication for
franchise owners, store managers and store crews to express their everyday opinions and ideas. The CEO responds to each comment individually.
In FY2007, a total of 586 opinions were expressed.
nComments on the Direct Line to the CEO, by Subject (FY2007)

Total

32,659Store operations

Products/
distribution

158 Systems

Services
Sales promotion

75.0%

Facilities/
59
equipment
Franchise37
agreements

27 Store instruction

106

42 Other99

58 Total586

Our Dream is to Nurture Many People through Store Management
This year marks exactly 10 years since we opened our store. It was our first time in the retail industry as
well as in Matsudo, so it took some time to find our way. We went around observing different stores every
day, taking the initiative in any way possible. Looking back, it was all a bit chaotic. But around four years
ago we were forced to start leaving the store more frequently, often for a few days at a time, which meant
relying solely on store crew. We were worried at first, but the crew relieved any worries, running the store
without a problem, which gave me the confidence to trust them in similar situations more often.
Since we were somehow linked by fate, we would like to help people working at our store to find their
dreams and what they want to do in life through their jobs at LAWSON. We openly encourage people whowant to open their own store in the future. It is our dream for the next 10 years to make the store a kind of
school that nurtures young people.
The Mystery Shopper program is a useful method devised by the headquarters to provide an objective

Mr. & Mrs. Susumu andMachiko Ichige,
Owners of Matsudo Kamishiki Storeview of the store and how it operates. Although in-store cleaning would occasionally get put off, the more
it was done, the higher our store’s assessment would be. With such tangible results, motivation to ensure
in-store cleanliness is at an optimum level. Supervisors always say that it is important to look at the store from the customer’s perspective.
We hope to create a store that will continue to make our customers happy for the next 10 years as well.

38

Together with Employees
We believe vibrant stores are created from the vitality of employees. By
improving our training systems, workplace environment and internal
communications, we aim to cultivate a corporate climate that encourages full
expression of individual abilities and opinions.

Creating an Ideal Work Environment
Employee Awareness Surveys

Questionnaire for Female Employees

We conduct employee awareness surveys every year to monitor
employee satisfaction.
The FY2007 survey demonstrated that there was mutual consideration between staff members and very little distance felt between superiors and subordinates. It was also found that employees keep LAWSON’s
corporate philosophy in mind at all times and act accordingly.
However, compared with other items, the overall results indicatedthat pride in the company and raising satisfaction are key areas of thecomposite index that need to be addressed. We will continue to review
our operations and support system in order to lessen the burden felt by
employees in the workplace.

In an effort to create an environment in which motivated female staff
can flourish and fully display their capabilities, we conducted a questionnaire for all female employees in August 2007.
The results indicated that, in general, females do not feel any difference as compared to their male counterparts when it comes to work.
Around 90% of respondents stated a desire to continue working after
marriage, while 80% said they would keep working after having a child,demonstrating a high level of work motivation. The questionnaire also
showed that most female staff wanted shorter work hours, however,prompting the need to further enhance the work environment and provide better support.
Although more than 30% of respondents said they would aspire to
managerial positions if the opportunity arose, many were of the opinion
that they were not confident due to a lack of precedent. This indicatesthe need for more female role models at LAWSON.

nResults of Employee Awareness Survey
Permeation of values
5

Daycare Center at the
Headquarters on
Public Holidays

4.5
4
3.5
Composite
index

3
2.5

Concerning
consideration

2

Concerning commitment
to achieving objectives

Concerning challenges*The higher the number, the better the result.

Since FY2006, the Tokyo headquarters is operating an experimental daycare center programon public holidays when most private daycare centers are closed.
Childcare provided on eight public holidays in
FY2007
Employees, store crews andemployees of affiliated companies can bring their children from one year
old through the third year of elementary school to the center, which
operates in a headquarters conference room. Parents have expressed astrong wish for the program to continue, while at the same time, thechance for the children to accompany their parent on the way to work isalways a happy event.
We will continue to measure the effects and enhance this initiative
to gain the understanding and establish backup structures throughout
the Company.

Communication

39

Feedback from Employees

Financial Assistance for Sports and Recreation

LAWSON has a system to reflect employee opinions in business improvements and store management, using the LAWSON Intranet Forum as avenue for employees to exchange opinions. By allowing employees topost or check comments, the system aims to assure the gathering andsharing of information. Submitted opinions are mostly supervisors’
suggestions to the headquarters. After gathering related opinions andfeedback from other employees, the appropriate person in the relevant
department posts a response.

LAWSON started a subsidy system for sports and recreation fees in
FY2007 aimed at boosting communication between superiors and subordinates within departments outside of work hours, increasing mutual
understanding and strengthening teamwork. Around 80% of all departments participated in this scheme during the fiscal year.

Fostering Human Assets and DiversificationnOverview of Employees

FY2005At LAWSON, employment and promotion are based on individual
capabilities; no discrimination is made on the basis of religion or beliefs,
gender, place of birth or other factors other than abilities.
LAWSON welcomed 10 foreign students as new recruits in FY2008.
By absorbing diversified cultures, we help create a more flexible anddynamic workplace. We plan
to step up the employment offoreign students from the next
fiscal year.

“LAWSON University” Employee Training
Program
LAWSON has developed a training system based on respective objectives, work roles and positions. The original training program has been
dubbed “LAWSON University.” We have also established the LAWSON
Learning Center (LLC) near the headquarters and an e-learning system
so that employees can take the required training anytime, anywhere.
Initiatives such as these have reinforced foundations for learning.
By actively investing to foster our human assets, we can share

Employees (consolidated)
Breakdown: male/female
Employees (non-consolidated)
Breakdown: male/female
Women in managerial positions (%)
Employees with disabilities (%)
Employees on maternity leave
Employees taking childcare leave
Employees working reduced hours forchildcare
Employees taking leave as caregivers
Insured and having health checks (%)
Average age
Average length of employment (years)
Employee turnover (%)
Workplace incidents

FY2006

FY2007

3,585
3,614
3,548
3,176/409 3,184/430 3,202/346
3,120
3,131
3,316
2,847/273 2,839/292 2,979/337
0.6
0.4
4.7
1.8
1.6
1.4
9
14
17
13
17
21
12

14

20

1
—
37.1
10.7
6.6
39

0
81.7
37.8
11.4
11.5*
46

1
89.3
37.6
11.2
9.2
47

*Increase is due to the effect of a business startup support program for employees.

Together with Employees

Employing Foreign Students

awareness of corporate philosophy and the importance of a customeroriented focus. At the same time, we aim to form a group of professionals ready to take on any challenge and succeed.

nL AWSON University Structure

Franchisetraining

ES/CS* promotion

Self-development

Training in customer
awareness andcreating a fulfilling
workplace

Variousself-development
promotion menus

Better store
management skills
Training for store
opening● Crew leader
training● Store manager
training forexisting stores●

Employee awarenesssurveys● Customer satisfaction
lectures●

Correspondence andday-release training● External seminars● Annual magazine
subscriptions(Company pays costs)●

・Training center
・Guest house

Franchise store training

Management
training

Job skills

Compliance/environment

Gaining functional
job-specific skills

Confirmation of
essential knowledge for
LAWSON employees

Store developmenttraining● Merchandising training● Assistant supervisor
training● Store employee training● Training for promotion
to store manager

Compliance and risk
management training● Job-specific compliancetraining● Position-specificcompliance training● Environmental training● Compliance survey

Training future leaders

Leader training
Leader training II(corporate finance)● Leader training III
●
●

●

●

Position-specificskillsAcquiring skills neededfor each career path
New manager
trainingInductee training● New assistantmanager training●●

Job rotation and evaluation

LAWSON University

e-Learning System
LAWSON Learning Center

Employee Training

Note: This is only a sample of the full range of training courses that are provided. ES: Employee Satisfaction/CS: Customer Satisfaction

Sending Out Positive Energy from Staff
I am currently the supervisor* for eight stores. As a supervisor, the things that I value most are trying to discover the
positive aspects of each franchise owner so that I can build a cordial relationship and to promote dialogue. The mostprofitable results will arise when the franchise owner is in agreement with store policy. So even if it takes time, I am
careful to lend an ear to what they have to say.
Meetings and work content have become significantly streamlined over the 11 years that I have been a supervisor,
and the systems are more convenient. However, it has become harder to have your voice heard at headquarters divisions,perhaps since it has grown so much in size. I hope communication between the frontline and the various divisions getssmoother so that I can better perform my duty as a supervisor in passing on information to stores.
Sports such as softball are used to boost communication among employees in the Utsunomiya District, where I work,
as well as among branch offices. Everyone trains hard together as a team, which has steadily raised the sense of
teamwork and increased dynamism at work. This has led to improved physical and mental well-being.
Our slogan for 2008 is “Energetic LAWSON.” We as employees will send out positive energy to stores and customers
and do our best to make stores as vibrant as possible.
* Supervisors provide instructions and other assistance to franchise owners to support store management.

Osamu Kawafuchi
Utsunomiya District
Supervisor

40

Together with Business
Partners

Cooperating with business partners is essential to create a store that can
provide safe and reliable products to customers. Growing together withthese partners, we work to promote fairness in transactions and comply
with all agreements and rules to create trust-based relationships.

Promoting Equitable Transactions

Together with Business Partners

To form trust-based relationships with business partners, the LAWSONCode of Ethics calls for fair and transparent transactions that are
conducted sincerely and diligently. We educate merchandisers to
discourage them from taking advantage of potentially superior negotiating positions. Specific measures include e-learning for all employees,
and training sessions upon promoting personnel to positions as assistantmerchandising developers and store development assistants.
LAWSON conducts an annual survey of business partners in suchfields as product delivery and store construction. Survey results provide
an early awareness of potential problems, enabling us to take a broadbased approach when revising and enhancing our compliance structure.
Although a questionnaire conducted in January 2008 indicatedthat there had been an improvement in “employee approach totransactions” compared with the previous year, certain challenges
remained in terms of “progress toward becoming The ‘Hot’ Station in
the Neighborhood” and “responsiveness of store crews.” We take theseresults seriously and provide feedback at general meetings and conduct
appropriate training for each division. We also give feedback to business
partners to whom we sent questionnaires.

nBusiness Partner Questionnaire Results
Progress toward becoming”The ‘Hot’ Station in the Neighborhood”
32
10
Employee approach
to transactions

-1
-2
-3

Responsiveness of store crews

Note: Closer to 3 is positive; closer to -3 is negative.

A compliance manager reporting on questionnaire results at thegeneral meeting

Our Valuable Business Partners
LAWSON’s business partners are valuable allies, as they offer knowledge
and expertise and are essential to the Company’s objectives of anticipating the needs of the community and commercializing innovative ideas.
We recognize that we are only able to deliver safe and reliable products
to customers through the cooperation of our business partners. Throughtheir daily efforts, our Merchandise & Logistics Division and Quality
Control Office work to demonstrate to business partners that providing
safe and reliable products is our highest priority.
To support its business partners, LAWSON established a vendor
support section within the Merchandise & Logistics Division to offer
advice on utilizing the Manufacturing Process Control System at riceproduct and other production facilities, and to support operational
enhancements. We work with rice production facility employees toreduce raw material cost ratios and eliminate unnecessary, inconsistent

41

Proactive complianceefforts

and wasteful elements in the production process by inspecting andcomparing current and historical
production process data. (Pleaserefer to page 24 for information
about the Manufacturing Process
Control System.)

Proactive information
security efforts

LAWSON’s Organizational Structure
LAWSON aims to do its utmost to meet the expectations of its customers, franchise owners, store
crews, business partners, shareholders and other investors. In our view, the first step towardachieving these aims is to bolster management soundness and transparency, and focus on enhancing
our corporate governance systems.

Basic Stance on Corporate Governance
LAWSON works to realize various goals on behalf of its stakeholders and in turn strives to raise corporate value by making LAWSON stores a welcoming
place for everyone.

LAWSON’s Organizational Structure

1. The customer is always made to feel welcome
2. Franchised store owners can feel that they are realizing their full potential
3. Store crews can develop their skills and grow as a result of their own efforts
4. Suppliers and service providers see their dreams take shape
5. Employees can take pride in their work and really feel a sense of being useful to society
6. Shareholders can contribute indirectly to society and invest in their dreams for the future, and7. Customer communities can feel welcome and safe.
To achieve these objectives, we conduct our corporate activities with an awareness based on the corporate philosophy and the LAWSON Codeof Ethics. Through these efforts, as well as proactive disclosure, we focus on enhancing corporate governance by bolstering management soundness
and transparency.

Corporate Governance and Internal Controls
Board of Directors, Executive Officer System

Compensation System

As of May 23, 2008, LAWSON had seven directors, including threeexternal directors. The Board of Directors intentionally has few members,
as our aim is to enable swift management decisions. The Company has
also introduced an executive officer system to enhance management
supervision and business execution. The Company has 14 executive
officers, three of whom concurrently serve as directors.
In FY2007, the Board of Directors met 15 times, including three
extraordinary meetings. The rate of attendance at these meetings byexternal directors was 82%. In FY2008, the Board of Directors plans toconvene monthly.

In FY2007, the Compensation Advisory Committee, chaired by external
director Takehiko Kakiuchi, met four times. These meetings were held todiscuss such topics as the method of determining director and executive
officer compensation, and the decisions of these meetings were reported
to the Board of Directors.
Compensation for management is dependent on a multifaceted
assessment system, which was introduced in FY2003 and carried out
simultaneously with personnel assessments.

Internal Control System
Audit Function
LAWSON maintains a corporate auditor system, with three of the four
members of the Board of Corporate Auditors from outside the Company.
In principle, the Board meets monthly to state in a fair and impartial
manner their opinions on general management and other specific topics.
The Board also audits the execution of duties by directors, including thestatus of internal control systems.
During FY2007, the Board of Corporate Auditors met 14 times,
including two extraordinary meetings. The rate of attendance by outside
corporate auditors was 100%, and the rate of attendance of outside
corporate auditors at Board of Directors meetings was 96%.
LAWSON recognizes the importance of compliance with laws andregulations and of CSR and accordingly has established the Internal
Audit and Correction Office as an independent internal auditing organ toconfirm that business is conducted in a fair and appropriate manner.

Through its nationwide scale of business in the convenience store
industry and operation of several different store types LAWSON comes
into contact with a host of companies of different sizes that provide
products and services. We are also required to comply with numerous
laws and regulations and face various risks if we do not comply in an
appropriate manner.
For this reason, and to ensure sound and sustained corporate development, we have created internal control systems. Recognizing theimportance of compliance from a management perspective, in February
2007 the Board of Directors formulated the Basic Policy for the FY2007
Establishment of Internal Control Systems. Based on the status of thissystem, the Board added new policies aimed at eliminating anti-social
forces and begun implementing the Basic Policy for the FY2008
Establishment of Internal Control Systems. An explanation of this policy
is available on our website. In line with this policy, we aim to conduct
our business in ways that are operationally effective, efficient andappropriate and enhance our corporate value.

42

Appointment of CCO and Compliance ManagersnL AWSON Internal Control System
Board of Corporate
Auditors

Internal control audits
Regular meetings

President and CEO
CCO
Control

CCO OfficeCompliance managers

Monitoring

General managers Branch managers
of divisions
Control

Ordinary precautions●Emergency precautions

Monitoring●

Department managers

Internal Audit &Correction OfficeInternal control
monitoring

Affiliated companies

Set internal control system policy

ControlManagers

Person in charge

Monitoring

Managers
Control

Monitoring

Person in charge

Person in charge

Closecommunications
Basicmanagement
policyDepartment managers

Managers

Training/
SupportFranchised stores

Mutual intent/information exchange

Reports on important issues

Corporate
Auditors OfficeCompliance and Risk
Management Committee
Quality and Hygiene
Subcommittee
BCP* Subcommittee
Crime and Accident
Prevention Subcommittee

Board of Directors

LAWSON has appointed a Chief Compliance Officer (CCO), who has
overall responsibility for compliance promotion and risk management.
The CCO leads the CCO Office, which is comprised of specialized staff.
Compliance managers are also appointed at each division and the sevenbranch offices in Japan.
To ensure practical results in compliance with laws and regulations
and management of risk, the CCO convenes Compliance and Risk
Management Committee meetings once a month to identify current
problems and build and implement systems to preempt problematic
incidents.
Compliance managers promote compliance and risk management intheir own department, provide related training and propose ways tomake improvements at the Compliance and Risk Management
Committee meetings.

Person in charge*BCP: Business Continuity Plan

Compliance SystemnL AWSON Compliance and Risk Management
System*Please refer to page 2 for details on the “LAWSON Group
Corporate Conduct Charter.”

Emergency preparation
and response

Policy revisions and amendments

Confirmation and monitoringof policy progress

Divisional development
activities by promoter

Business execution based onstandards of conduct

Hotlineestablishment

Corporate Philosophy/Code of Ethics/
Standard of Conduct

Setting compliance policy
for each division

LAWSON always pays serious attention to adhering to a corporate stance that ensures compliance with social standards and morals. To achieve this, we have developed compliance-related
regulations and regularly conduct compliance training, including e-learning and group trainingby job type. In March 2008, we formulated the “LAWSON Group Corporate Conduct Charter*,”and revised the “LAWSON Code of Ethics.” We also issued the LAWSON Group C&R Handbook,which summarizes these standards of conduct so that we can maintain and enhance employee
awareness of compliance through work.
We perform awareness surveys involving all employees, as well as surveys for business partners concerning product delivery and store construction. Surveys help us to identify problems
and challenges in compliance promotion activities and transaction details, providing us with theopportunity to review and improve our compliance system with a wider vision.
For our internal reporting system, we have set up a point of contact (Hotline) both insideand outside the Company (legal office) tomake it easier to report and consult on various
matters. This enables swift discovery ofinternal problems so that we can implementa speedy response.

Revision following
an emergency

Education and training
Compliance and risk management training provided bycompliance managersnCompliance Survey Results

Compliance Survey
We perform compliance surveys involving all Company executives,
employees, dispatched staff and part-time employees once a year to
identify the degree of penetration of our compliance system. Results ofour fourth survey, conducted in FY2007, indicated a marked improvement in the item “no disagreement with management” versus the thirdsurvey’s results. However, survey respondents indicated no improvement
for issues concerning difficulties in taking vacation time and workloads,
demonstrating the need for further measures.
We plan to continue conducting such surveys. By doing so, we aim
to confirm that improvements have been made to areas indicatedpreviously and to raise ethics awareness.

1. Can explain corporate
philosophy
3

FY2007
FY20062
1
6. No disagreement withmanagement0

2. Can explain ourcode of conduct

-1
-2
-3

5. Promote realization of“The 'Hot' Stationin the Neighborhood”

Note: Closer to 3 is positive;
closer to -3 is negative.

3. Recognize ourcode of ethics

4. Understand compliance guidelines
on emergency response methods*The above graph does not include item 4 since it was newly added in FY2007.

43

Risk Management System
From the standpoint of corporate ethics, LAWSON emphasizes threemajor risk areas: product quality and hygiene management (see page
23-26), information security and disaster response. We have a system inplace for the swift resolution of problems in the event of an emergency.
In normal circumstances, the Compliance and Risk Management
Committee and the three subcommittees (Quality and Hygiene
Subcommittee, BCP Subcommittee and Crime and Accident Prevention
Subcommittee) convene to minimize risk. Their roles involve setting clear
priorities in tackling potential risks, drafting and promoting prevention
measures, and overseeing the progress of problem-solving processes.
In the case of an emergency, we set up an emergency risk response
council to contain risk and limit the damage. After recovering, we conduct analysis of the causes of risk elevation to ensure restoration of trust
and prevent recurrence. In this manner, as well as by giving feedback to
employees through training, LAWSON strives to raise its risk management capabilities.

and distributed these to each division and branch office. We have also
included portions of this manual in various store manuals. In the eventof a large-scale disaster, we have systems in place to establish Disaster
Response Offices. Through these measures, we are ensuring quick
response to disasters.
We periodically review our disaster response manuals addressing
problems or questions that may have arisen during response training or
actual disasters to ensure the ongoing operation of stores in affectedareas and the rapid recovery of stores if they are hit by a disaster.
To ensure that all employees are fully aware of the actions expectedof them in times of disaster, we conduct disaster response training programs semiannually. The companywide disaster response training heldin September 2007 included training on confirming safety in case anearthquake above magnitude 5 strikes. The training was held on a
Saturday to ensure that a system for swift communication at a time
when few people were in their offices is in place. We will apply thebenefits of lessons learned through these training activities to reinforce
our disaster response measures.

In anticipation of the full enforcement of
the Protection of Personal Information
Act in March 2005, LAWSON establisheda Personal Information Protection Policy.
Through this internal directive, we strive
to further promote and improve the protection of personal information. This
policy is reflected in store manuals toensure it is manifest in the understanding and actions of store staff. Aiming at
raising awareness, we also use internal
information newsletters and other comInformation security manual formunication tools to familiarize all stores
headquarters personnel
and supervisors with hypothetical cases
involving frequent errors and complaints at stores, as well as remedies
and recommended ways to appropriately respond to such cases. At theheadquarters, staff use the LAWSON Office Security Rules for thesame functions.
We regularly check our information management system using
self-examination and internal auditing processes. LAWSON is striving totighten its information security system through various other measures,
including thorough rules for use, storage and disposal of personal
information and information security training.

LAWSON’s Organizational Structure

Information Security

Disaster response training

Store Crime Prevention Measures
To prevent crime at stores, LAWSON has a crime prevention system andconducts various activities. We have introduced and promote use of pigment-filled anti-crime color balls, dispatch headquarters staff to makelate night rounds of stores, participate with local police departments inrobbery simulation exercises and adhere to the “Five Principles of Crime
Prevention.”

Disaster Response
LAWSON strives to ensure that if a major disaster strikes, its stores willcontinue to operate, serving as a lifeline to regions affected by thecalamity. To this end, LAWSON has compiled basic and organizationspecific (for district, branch, headquarters) disaster response manuals

Crime prevention training

Disaster Response
When the Niigata-ken Chuetsu-oki Earthquake struck on July 16, 2007 we immediately established Disaster Response Offices and swiftly gathered information on the disaster and provided support with supplies.
*1: Supplies provided on the day of the disaster (free of charge)

Timeline of Disaster Response
10:13 Earthquake hits
10:30 	Established Disaster Response Offices at the headquarters,
Tohoku branch office and Chubu branch office
10:45 Held disaster response meeting
14:30 Held disaster response meeting
15:00 Issued news release concerning delivery of aid supplies*1
15:30 Formed an outline of activities to raise relief money*2

Item
Rice balls
Sweet buns
Instant noodle packs
500 ml water bottles

Amount15,000
2,000
4,428
4,800

Item
2 L water bottles
Wet tissue packs
Plastic shopping bags
Disposable chopstick sets

Amount
600
960
4,000
4,000

*2: A
 total of ¥35,677,179 was raised as relief money and provided to the Niigata Prefectural Officeon August 14, 2007 (see page 29 for details).

44

Company Overview (As of February 29, 2008)

Store Information (As of February 29, 2008)

Name
Address

8,587 stores in JapanLAWSON, INC.
East Tower, Gate City Ohsaki, 11-2,
Ohsaki 1-chome, Shinagawa-ku Tokyo
141-8643, Japan
President and CEO Takeshi Niinami
Established
April 15, 1975
Capital¥58,506,644,000
Employees
3,548 (consolidated)
Scope of Operation Mainly management of LAWSON and
NATURAL LAWSON franchise anddirectly managed convenience store
chain as headquarters
Store Revenues¥1,415.1 billion (FY2007)
Stores8,587 (in Japan)
Store Coverage
All 47 prefectures in Japan andShanghai, People’s Republic of China(joint venture)

Including: 91 NATURAL LAWSON stores
72 LAWSON STORE 100 stores

Hokkaido Region

496
Kinki Region

Tohoku Region

1,845

771

Stores

Chugoku Region

Shiga
Kyoto
Osaka
Hyogo
Nara
Wakayama

525

StoresTottori
Shimane
Okayama
Hiroshima
Yamaguchi

85
77
123
128
112

Total

525

Total

Stores

126
194
818
487
105
115
1,845

Aomori
Iwate
Miyagi
Akita
Yamagata
Fukushima

156
166
158
141
55
95

Total

771

Kanto Region

2,295Stores996

StoresnNumber of Stores(Billions of yen)

(Stores)

1,500

10,0001,386.6 1,415.1

8,000

1,000

8,077

8,366

8,564

8,587

4,000

7,472

7,731

7,958

8,093

8,148

349

346

408

471

439

2003

2004

2005

2006

2007

2,000
0

0
2003

2004

2005

2006

2007

(Fiscal Year)

320
60
82
92
118
83
106
135

Total

996

1,000

109
98
155
62

Total

424

NiigataToyamaIshikawa
Fukui
Yamanashi
NaganoGifu
Shizuoka
Aichi
Mie
Total

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

1,000

500

800

400

600

300

400

400

200

200

200

100

0

0

0

800

803

600 598

6,000

500

Fukuoka
Saga
Nagasaki
Kumamoto
Oita
MiyazakiKagoshima
Okinawa

Tokushima
Kagawa
Ehime
Kochi

Total

105
104
71
343
286
896
490
2,295

103
105
73
88
64
139
102
148
329
84
1,235

nAverage Number of Customers/ nAverage Daily Sales Per Store
Average Purchases■ Franchise stores■ Directly managed stores

7,821

StoresStores(As of December 31, 2007)

nConsolidated Net Sales

1,235

424

Kyushu Region

SHANGHAI HUALIAN LAWSON Co., Ltd. 287 stores
Ninety-nine Plus Inc.
827 stores

1,288.3 1,329.0 1,361.7

Chubu Region

Shikoku Region

Stores of major affiliated companies

IbarakiTochigi
Gunma
Saitama
Chiba
Tokyo
Kanagawa(Fiscal Year)

2003

816
597

2004

820
585

2005

813
585

2006

812
586

2007

(Fiscal Year)■ New stores (thousands of yen)
■ All stores (thousands of yen)

484
488
480
477
478
448
436
436
429
426

2003

2004

2005

2006

2007

(Fiscal Year)

Note: Store numbers include NATURALLAWSON and LAWSON STORE 100.

nConsolidated Subsidiaries (As of February 29, 2008)

nAffiliated Companies (As of February 29, 2008)

LAWSON TICKET, INC.

Ninety-nine Plus Inc.

Listed on JASDAQ, sells tickets for concerts, movies, sporting andother events, mainly through Loppi multimedia data terminals
located inside LAWSON stores.

i-Convenience, Inc.
Operation of the official LAWSON Mobile website for mobile phoneusers and provision of online merchandise, services and information
through this site

LAWSON ATM Networks, Inc.
Installation, operation and management of jointly operated 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 andproposals for improving LAWSON stores

VALUE LAWSON, Inc.
Format development, product planning, development andoperational guidance of LAWSON STORE100 shops, which offer
value products at reasonable prices, primarily targeting women andelderly shoppers

45

Direct operation and franchise chain management of SHOP99 singleprice stores and other stores

SHANGHAI HUALIAN LAWSON Co., Ltd.
Development of LAWSON store chain in Shanghai, PRC, through a
joint venture with Hualian Group Corporation

naturalBeat Co., Ltd.
Develops products such as handmade sandwiches and deli products,
sweets and beverages, with a focus on attentive preparation ofnatural products with as few additives as possible for sales innaturalBeat stores.

LAWSON CS Card, INC.
Issuance of LAWSON PASS credit cards to LAWSON customers andprovision of card-based services through Loppi multimedia data
terminals and other channels (excluded from equity-method
affiliates as a result of sales of all shares by the Company on April
30, 2008)

Outside Opinion
LAWSON asked for an external evaluation of its environmental conservation
activities. We will take these views and suggestions to heart, using them toimprove and develop our future activities.

“I hope the university and the Company
can work together to help preserve theenvironment”

Dr. Ayano Takeuchi
Kankyo Sanshiro*,
The University of Tokyo
Assistant Professor,
Department of Biostatistics,
School of Public Health*Kanyo Sanshiro is an environmental
research group comprising mainly
students and alumni of The
University ofTokyo that aims to resolve
environmental issues.
In front of the store at the Tatsuoka Gate of The Universityof Tokyo

Aware of the environmental impact of widespread use of
disposable chopsticks, we at Kankyo Sanshiro started a survey
in 1999. Our relationship with LAWSON began when we
inquired into the number of disposable chopsticks consumed
at stores. We used data supplied by LAWSON when summarizing survey results.
When LAWSON initiated a drive to recover disposable
chopsticks at the three LAWSON stores on the university campus, we assisted in this effort via student announcements.
Also, as an individual user, I made a special box to collect thechopsticks and regularly take it to one of the stores when it isfull. LAWSON also accepts disposable chopsticks from stores
other than LAWSON, which is a great help.
Through interaction with employees at LAWSON, I cameto see that this was more than just a temporary initiative
and that the company is serious about working to resolve
environmental issues. It really changed my impression of theconvenience store. I had also been of the opinion that all
convenience stores in Japan provided the same monotonous
products and services. I was surprised to learn during thechopstick campaign that each LAWSON store could implement its own initiatives. I learned that stores in different
regions provided products and services that most suited thecharacteristics of the region. I was glad to hear that LAWSON
was working so hard on activities that considered the community. However, I don’t think many people know this side of
LAWSON, so I really feel that this should be promoted more.
The LAWSON initiative that most interests me is the one
concerning child-raising support. I hope LAWSON extends thisprogram nationwide to support families with children throughtheir products and services. It would also be great if LAWSON
simplified containers and packages for boxed lunches andother items from an environmental perspective.
Kankyo Sanshiro will celebrate its 15th anniversary thisyear. As we move ahead, I would like to enhance and expand
our key survey activities. I believe that collaborations between
the business and academic worlds are extremely valuable andreally appreciate the chance to work together with LAWSON
on our campaign to recover disposable chopsticks. I hope wecan work together on future endeavors, beginning withreviewing the responses to the disposable chopstickcollection activities.

LAWSON History
1975 April
June
1976 October1977 April
November
1978 January
1980 September
1982 March
1986 April
1988 May
September1989 March
October
1991 February
1992 September
1993 April
1995 January
1996 March
April
June
July
1997 March
July
1998 February
November
December

Daiei LAWSON Co., Ltd. establishedFirst store opens in Sakurazuka (Osaka)
T.V.B. Sun Chain Co., Ltd., established
Inaugurated system for joint delivery of milk and other daily use products
Created specialized plant to make boxed lunches and began
supplying freshly made boxed lunches
Installed first-generation computer system
Business tie-up established between LAWSON and Sun Chain
Began accepting home delivery service orders
Began sales of Kara-age Kun fried chicken nuggets
Began employing a new three-delivery system
Use of point-of-sale tracking system commenced
Merger with Sun Chain Corporation, creating 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" ininternal and external communications
Started collecting donations for charities working to protect the global
environment (currently called “LAWSON Green Fund")Commenced Clean Aid activities
Conducted recovery and donation activities in wake of Kobe earthquake
Began handling sales of stamps, postcards and revenue stamps
Initiated LAWSON Ticket sales
Company name changed to LAWSON, INC.
Opened first LAWSON store in Shanghai, People’s Republic of China
Started “Every Store Can Help" campaign
Commenced operations in Okinawa, marking the Company’s extension ofoperations to all 47 Japanese prefectures
Installed Loppi multimedia data terminals at all stores
Established the LAWSON Code of Ethics
Received ISO 14001 certification (international environmental
management system standard)2000 July

Company’s shares listed on the First Sections of the Tokyo Stock Exchange
and Osaka Securities Exchange
October
Established i-Convenience, Inc.
2001 May
Established LAWSON ATM Networks, Inc.
July
Opened the first NATURAL LAWSON store
2002 June
Introduced the LAWSON PASS card
November Established the Compliance Promotion Committee
2003 January
Established post office counters at all stores
May
Began staged removal of artificial colorings and preservatives fromproducts sold in the Tokyo metropolitan and Kinki regions
AugustSigned an agreement with Wakayama Prefecture on local cooperation
activities
2004 June
Appointed a Chief Compliance Officer and compliance managers
2005 March
Announced Personal Information Protection Policy
May
Opened the first LAWSON STORE100
June
Created new corporate philosophy to mark the 30th anniversary of
LAWSON’s founding
2006 January
Officially started waste-oil recycling
September Became first private company to sign agreement with Japan’s Ministry of
the Environment
December Opened first HAPPY LAWSON store designed to support child-raising2007 January
Began full-fledged development of LAWSON PLUS stores
January
Launched MY LAWSON POINT card without credit function
February
Formed operating and capital alliance with naturalBeat Co., Ltd.
February
Formed a business and capital alliance with Ninety-nine Plus Inc.
March
Introduced electronic payment terminals
March
Employed environmentally friendly PLA for salad containers
March
Started “Bring Your Own" campaign
June
Transferred head office to Shinagawa-ku, Tokyo
July
Opened HAPPY LAWSON Yamashita Koen store to support families withchildren2008 January
Concluded mega franchise agreement with Shinsengumi Honbu K.K.
February
Formed comprehensive alliance with Japan Post Holdings Co., Ltd.

46

LAWSON, INC.
CSR Promotion Office
East Tower, Gate City Ohsaki, 11-2, Ohsaki 1-chome,
Shinagawa-ku, Tokyo 141-8643, Japan
Tel: +81-3-5435-1350
Fax: +81-3-5759-6944
URL: http://www.lawson.co.jp/company/e/Issued October 2008
Next issue scheduled for August 2009
© 1975-2008 LAWSON, INC. All rights reserved.