Living in Harmony
with Communities:
Initiatives Report 2015

Creating Happiness andHarmony in Our Communities

Lawson, Inc.
CSR Promotion Office
East Tower, Gate City Ohsaki, 11-2, Osaki 1-chome,
Shinagawa-ku, Tokyo 141-8643, Japan
http://lawson.jp/en/

Published October 2015
Next issue scheduled for publication October 2016
© 1975-2015 Lawson, Inc. All rights reserved.

Creating Happiness and Harmony
in Our Communities
This is the Corporate Philosophy of the Lawson Group.
We contribute to the happiness of the citizens of our communities
by helping the communities overcome the challenges facing themand responding to various requests from our customers.

We can buy safe
vegetables.
I want to relax witha cup of coffee.

Lawson Group Environmental Policy
Our commitment
To sustain the blessings of Earth for future generations, theLawson Group will consider the environment in every aspectof our business activities and strive to achieve sustainable
development and coexistence with local communities.
Our principles
1. Creation of a low-carbon society
2. Consideration in the development of products and services
3. Active participation in social contribution activities
4. Continuous improvements
5. Observance of laws and regulations
6. Promotion of communication

Let’s make ourcommunity lively!

Lawson staff
delivered this.
I can donate money
anytime I want to.

I can get preparedfood in the morningand in the evening.
Isn’t it nice to eat
outside in the fresh air?

What a relief to findthe drug I needed.

Pre-cut vegetables arevery convenient to use.

It is great to havemore greenery.
The ticket isissued right away.

Let’s keep ourcommunities clean!

Table of Contents
Special Feature/MACHI café
• Insistence on good taste . ........................... P3• Quality control, social contribution andenvironmental activities............................... P5• The story of Machi café coffee beans........... P7

Social contribution activities
Creating greater happiness and harmony
in our communities........................................ P8• Delicious and healthful. Developing healthful food products............. P9. Lawson Farms.......................................... P10• Supporting your health and safety. Support for self-medication........................ P11. Home delivery services bringing us
closer to customers . ................................ P12• Making communities more lively. Comprehensive agreements withlocal governments . .................................. P13. Responses to large-scale disasters............ P15. Supporting reconstruction of the
Tohoku region . ........................................ P16. Lawson Group's fund-raising activity,"Happiness in Communities"..................... P17

Environmental Activities
Groupwide Environmentally Friendly
Initiatives....................................................... P18• From product development andmanufacturing to home delivery................... P19• Store equipment......................................... P21• Store management..................................... P23. Lawson’ Achievements:
Environmental Awards .............................. P25• Care for the environment
in the supply chain......................................... P29

Lawson communication media
Integrated Report

Suppliers/
Business
partners

Employees

Store crew(Part-time andtemporary employees)

Local Communities
Shareholders

1

Customers

FranchiseownersLawson Group’s Core Stakeholders
The Lawson Group conducts its business incooperation with society (local communities)
as a whole, including seven core stakeholders.
Moving forward, we will continue to provide
unique value in addressing a variety ofchallenges facing society and our customers byleveraging our stores’ accessibility within local
communities.

An overview of theLawson Group’sbusiness activities
in local communities
and the outlook forsustainable growth

Community-Citizens
Harmony Project Report
A simple, clearly written reporton our responses to socialand environmental challenges

マチと共に生きる
取り組み報告 2015

私たちは みんなと暮らすマチ を
幸せにします。

• A good community member......................... P31. Creating environmentally friendly stores...... P32
Financial Section
Report on industry trends
and the Group’s businessinitiatives and financial
position in relevant years,
as well as the projected
earnings assessment/
analysis andoutlook forthe coming
fiscal year

About us

. Corporate profile /Areas in which stores are operated............ P33. Our Group companies............................... P34

2

Special Feature/MACHI caféSpecial Feature/MACHI café

All for our customers’“satisfied smiles”

MACHI café serves coffeewith a warm heart.

Enthusiasm beyond theconvenience store norm
contributes to the delicious
MACHI café taste experience.

MACHI café, Lawson’s in-store freshly-brewed coffee service began with ourdesire to offer customers a relaxing moment in their community.
We believe that this service is possible only when customers are served
delicious coffee and a warm welcome at the same time.

Carefulbean
selection

Expertbean
roasting

Delicious taste experienced
by the heart
Customers' impression of the way
they are served affects theirtaste. We prepare each cup ofcoffee carefully and hand it to
the customer personally with afriendly word. Hospitality is our
first priority.

Personalized
customer
service

Only thefinest milk

Delicious taste experienced
by the tongue
Seeking out-of-the-ordinary
convenience store taste, MACHI café
pays careful attention to every detail ofcoffee bean selection and roasting and to themilk it serves.

Customized
coffeemachines

Cordial service by Fantasistas

Lots of convenience stores
offer self-serve coffee, but
getting it myself can betroublesome. So I always get a
cup at my LAWSON store.

Customer comments

LAWSON is the only
convenience store whose staff
serve coffee personally tocustomers. Just buying it gives
me a warm, satisfied feeling.

3

I drop into myneighborhood LAWSON
store to have a cup ofdelicious coffee prepared
before taking a walk as
part of my dailyroutine.

Store crew with good knowledge of MACHI café
and an ability to convey its special character andthe enjoyment of drinking coffee to customers
are called Fantasistas (*1). Today, about 6,000
Fantasistas are serving carefully prepared cups ofcoffee to customers throughout Japan (as of end
February 2015).

When I feel I need abreak from work, I buy
a cup to enjoy a few
pleasurable moments.
A gathering of Grand Fantasistas (*2)

*1: Fantasista: This title is awarded to store crew who have passed a special certification examination held biannually under Lawson’s unique qualification system.
*2: Grand Fantasista: Store crew leaders who meet such criteria as a store screening become candidates for the title of Grand Fantasista, which is awarded after a selection
process within the branch. Only Fantasistas who reach exceptionally high levels in their respective branches are eligible. A total of 50 Grand Fantasistas had been selectednationwide as of end February 2015.

4

Special Feature/MACHI caféSpecial Feature/MACHI café

From coffee beans toa customer’s cup of coffee
MACHI café’s quality control, social contribution and environmental activities
I am Dr. Lawson, an expert
on Lawson. I will be helping
you read this booklet.

MACHI café, LAWSON’s in-store freshly brewed coffee service, gives full consideration
to quality control, society and the environment in everything from the coffee beans tothe cups of coffee served to customers. Paying special attention to the beans, milk,
roasting method and coffee machine, we pour our enthusiasm into every cup of coffee
we hand to our customers.
Quality considerations

Born from our enthusiasm
for serving customers

The tastes customers want

The origins of MACHI café extend back to a time whencups of coffee were selling especially well at a few ofthe stores selected to offer coffee on an experimental
basis. These were stores that provided exceptionalcustomer service and at which a relationship of trust
had been formed between the store crew and thecustomers. This inspired the decision to establish a
MACHI café that focuses on “made to order” instead of“self-service.” Discussions of the coffee machine andsales system followed.

ntal
Social and environnsme
contributio

5

Ponta card data were thoroughly analyzed to discover
the tastes customers desire most. Based on thisanalysis, MACHI café began serving blended coffee,
a standby for middle-aged male customers taking a
break from work, café latte, a popular choice amongfemale customers, and other customer favorite.

Product development

Designation of farms andproduction areas

Careful attention to the roastingprocess and milk selection

Authentic customized
coffee machine

By using beans (Arabica coffee) grownon designated farms in five countries andproduction areas where it is possible toestablish secure control of everything fromcoffee bean growing
to shipment, we havesuccessfully realized
a high-quality deep,rich blended coffeewith a sweet andfruity sour taste.

We employ a post-mixing methodthat produces blends after bringing
out the unique characteristics ofeach bean variety through different
roasting processes. We use only
raw milk* in our café latte so that
customers can enjoy the original
rich sweetness of milk.

We have customized a fully-automatic
machine made in Italy, the home ofespresso, for use in the MACHI café.
The machine can be set to make amaximum of 16 menu items. The
wide choice of items on the menu,
including cafélatte and mattcha(green tea) latte, isespecially popularwith female
customers.

*Heat sterilized raw milk

Raw materials
procurement

Safety, reliability andenvironmental consciousness

Use of Rainforest Alliance
Certified™ coffee beans

In developing products, we focus not only on taste andquality, but also on social and environmental concerns.
We ask our suppliers and business partners to pay carefulattention to product safety and reliability, moreover, as
well as to human rights and the environment.

We use only Rainforest Alliance Certified™ coffee
beans* that are grown with attention to environmental
and worker protection. This certification is awarded
only to farms that meet strict criteria for environmental
conservation and farm workers’ wellbeing.
*Except for our Single Origin Series and drip bags.

Recycling used coffee grounds
Waste produced in the coffee-roasting processincludes the thin skins of the beans and the usedcoffee grounds. These are recycled as fertilizer andcow bedding.

ingix
Post-mProduction

Sales

Bring your own tumbler for an
eco-friendly discountCustomers who bring theirown tumblers receive a 10 yen
discount from the drink menu
prices (on most items). This
helps to reduce the amount ofwaste produced by the service(paper cups).

6

Social contribution activities

Cherishing each coffee bean creates
the great taste of MACHI café coffee.

Creating greater happinessand harmony in our communities

こころまでホッとする場所、それがMACHIcafé。
The delicious
taste customers enjoy in MACHI café
starts with the selectionof farms to
produce our coffee beans. Each cup of coffee served in MACHI café is produced with quality
as well as the welfare of the farm workers and the environment taken into consideration.

Lawson supports its communities and their citizens in various ways, including“development and sales of healthful food products,” “support for customer
health management and sales of pharmaceuticals,” “promotion of sales of
locally sourced products and food ingredients,” and “support for childcare andyoung people.”

Social contribution activities

Producing MACHI café coffee beans!

Ipanema Plantation (Brazil)

特集／マチカフェ

Special Feature/MACHI café

Picking the

4 fruits

1 Planting
seedlings

3 Blossom

2 Sprouting

Either a manual ormechanical picking
method is used, depending
the condition of the groundand the age of the trees.

Seedlings are grown from beans harvested on the same farm to ensure that no
disease or pests are introduced.

fruit
5 Carefulselection

Delicious andhealthfulSupporting yourhealth and safety

5

Air is blown to remove
twigs and leaves from theharvested fruits, and themature and immature fruits
are then separated.

6
Quality inspection
Sample beans are checked for
quality and taste before thebeans are shipped to Japan.

7
Drying

8

The fruits are stirred continuously
while drying to make sure they dry
uniformly.

Husking

The coffee beans
are now ready!

The husks are removed in a machinecalled a husker, and broken andcracked beans are also removed.

<Ipanema Plantation’s activities>
Social contribution 1
Ipanema Reforestation Project

Social contribution 2
Institute activities

Trees have been planted systematically inthis project, and an area of about 2,000 hais now designated as a nature preserve.

Community support is provided by inviting
employees’ children to the Institute forafter-school lessons and sports activities.

Only Rainforest Alliance Certified™ coffee beans areused for coffee served in MACHI café
*Except for our Single Origin Series and drip bags.

The Rainforest Alliance is a non-profit international environmental protection organization
founded in 1987. Rainforest Alliance certification is awarded to farms that satisfy rigorous
standards in such areas as environmental preservation and life quality improvement for farmworkers. This means that MACHI café coffee is made with the beans produced on a farm thathas earned Rainforest Alliance certification- that is environmentally and socially responsible.

7• Mineral-rich vegetables• Low-carbohydrate branbread
• Low-sodium and lowcalorie menus• Healthful snacks andbeverages• Nutritionally balanced
boxed lunches

Making communities
more lively• In-store dispensing
pharmacies• Sales of OTC (over-the-counter)drugs• Access to health consultation
services• Agreements on healthpromotion with local
governments• Cooperation in promoting local tourism• Promotion of sales of locally sourced products and food ingredients• Provision of support for childcare and young people in the communities• Contributions to environmental preservation• Crime prevention and development of young people• Measures to prevent disasters• Comprehensive agreements with local governments• Support for communities through fundraising8Social contribution activities

Delicious and healthful
We offer safe food products because we want our customers to be bothmentally and physically healthy while still enjoying “delicious taste.” Lawson
wants to contribute to the good health of every generation by offering lowcalorie, low-carbohydrate and low-salt food ingredients and products.

• Let’s eat vegetables

Healthful product development:

10 themes
1First, tosleep well

Secondly,to getenoughexercise.

Focusing on “delicious taste” tocontribute to customers’ mental andphysical healthLawson develops healthful products with 10
themes, including “Let’s eat vegetables.”and “Delicious low-carb foods.” Salads andvegetables you feel like eating every day, lowcarbohydrate bran breads developed jointlywith a major bread bakery, healthful sweets
and drinks, and nutritionally balanced boxedlunches – we want to contribute to the healthof every generation through the foods people
eat every day.

Corn Salad (crispy corn salad)

Tomato pasta salad• NATURAL LAWSON Healthy Series

Let’s eat vegetables.
Delicious low-carb foods

3

Enjoying the taste of quality ingredients4

Low sodium

5

Saving calories with a smile

6

Let’s eat high-quality protein(fish & soybeans).

7

For better intestinal health(lactic acid bacteria)

8

Use of only high-quality fats!
Measures to reduce additives(preservatives and coloring) andprevent allergies

9

Healthful snack series• Nutritionallybalanced boxedlunches

Green smoothie

Delicious and healthful

10 themes for healthful product developmentMysecrets
to staying
healthy
are....

2

10 Easy access to functional ingredients

Nutritionally balanced
grilled mackerel
boxed lunch

Note: Not all the products are shown. Some may no longer be available.

• Delicious lowcarb foods

Committed to providing safe, fresh, high-quality vegetables

Expanding “Lawson Farms” nationwide
Bran breadAnd branbread is....

a must.

Bran bread rolls

Branbread ishigher indietary
fiber....

9Hmm,

and lower incarbohydrates
than wheat
flour bread.
It’s my special
secret forstaying inshape.

Moist bran melon bread
Note: Not all the products are shown. Some may no longer be available.

Healthful low-carbohydrate and low-calorie
bran breadBran (a grain’s outer husk), which is higher in dietaryfiber and lower in carbohydrates than ordinary
wheat flour, is used in bran products. They are low incarbohydrates and calories, make you feel full longer,
and have a soft, moist texture and pleasant smell.

Lawson is expanding its “Lawson Farms” agricultural
corporation nationwide to ensure a stable supply of safe,
fresh, high-quality fruits and vegetables to Lawson Group
stores in order to contribute to a healthful dietary life. Our
goal is to establish a system that enables us to procure fresh
vegetables for LAWSON stores year-round from a nationwide
network of production areas. Lawson
has partnerships with DAICHI wo
MAMORU KAI and Radishbo-ya,
moreover, two companies that havetaken the lead in handling organic,
low-agrochemical farm products.

23 farms
nationwide

As of end July 2015

Healthful vegetables from healthy soil
Lawson’s pre-cut vegetables (except some products in some areas) aremade with agricultural products grown using the Nakashima-method.
This is an agricultural method developed to grow healthful vegetables inhealthy, mineral-fortified soil, and Lawson is introducing the method to
Shredded cabbage
Lawson farms, which operate under exclusive contracts with Lawson.

10Social contribution activities
Home delivery services bringing us
closer to customers

Supporting yourhealth and safety
Lawson provides an extensive range of self-medication support services to help customers
manage and maintain their own health. These services include selling medicines, opening storeswith nursing care service providers as franchise owners, collaborating with local governments, andorganizing sports events to help community residents control and maintain their own health.

Expanding the number of storesincorporating dispensing pharmacies

Enhancing the sales of OTC (over-the-counter) drugs

Lawson provides home delivery services in cooperation with home delivery companies andmobile sales and order delivery services in cooperation with local governments and support
organizations for the elderly and people for whom visiting stores is difficult. Lawson makes
customers happy by always providing services from their perspective.

Supporting your safety at LAWSON stores

To depopulated

Supporting your health and safety

Collaboration with drugstore chains

Lawson contributes to the happiness of communities
and their citizens in various ways

villages

Providing mobile sales and order delivery services for depopulated
villages with the local store as a baseLawson sells and delivers food products and daily necessities to elderly customers and customers living inremote locations for whom visiting stores is difficult by providing mobile sales and order delivery services.
We provide an “eye-on-the-community” service, moreover, in which we confirm the safety of people inhouseholds with elderly occupants by asking questions such as, “Is everything OK?” or, “Are you eating
regularly?” when conducting mobile sales.
• Yamabiko LAWSON Jinseki-kogen-cho Store (Jinseki-kogen-cho, Jinseki-gun, Hiroshima Prefecture)

Lawson is working with Qol Co., Ltd., a major dispensing
pharmacy chain, and MIZ-Pharmacy Co., Ltd., a dispensing
pharmacy and drugstore operator in Saga Prefecture andFukuoka Prefecture, to open stores with in-store dispensing
pharmacies.
Approximately 40 stores had been opened as of end May 2015.

Lawson has been expanding sales of OTC drugs
by convenience stores since the introduction of the“System for Registration of Sellers” as part of the 2009
revision of the Pharmaceutical Affairs Law. OTC drugs
were being sold at 100 stores, including those with anin-store dispensing pharmacy, as of end May 2015.

Collaboration with a nursing care service company

Providing support for better health

Establishing nursing care service
centers in stores

Organizing citizens’ sports events

You can use
ce“Loppi” to pla
orders, too!

Lawson established a store in the michi-noeki (roadside station) in a depopulated village
in collaboration with the Jinseki Kogencho Municipal Government to maintaininfrastructure functions in an area where
the population is aging and depopulation isprogressing. The store provides mobile sales
services and acts as a local community center
to help keep the depopulated village alive.

Jinseki Fureai LAWSON Wagon

Lawson began providing a mobile sales service on April 1, 2015 in collaboration with the Social Welfare Corporationof Yoshinogari Town. About 300 food products and daily necessities, mainly Lawson products, are available.

We sell vegetables, perishables,and (processed) fish.
To customers’

Welcome to our store!!

homes

Lawson’s home delivery services
Lawson has developed “CARE LAWSON,” a convenience store
incorporating a nursing care center, in collaboration with Wisnet Co.,
Ltd., a provider of extensive community-based nursing care services.
A home-care support office, salon-type space and care consultation
counter are installed in the store, with a nursing care service provider
or care manager on duty full-time. The first store opened in Saitama
prefecture in April 2015 and the second three months later in August.

Lawson contributes to better healthby organizing citizens’ sports events,
such as marathons and triathlons,and collaborating with RENAISSANCE
INCORPORATED, a major sports club
operator.

Increased cooperation with local governments to promote health

Providing backup for community health measures

Lawson has signed agreements concerning support for community health measures with a various cities: Amagasaki City, Hyogo Prefecture(October 2013), Matsumoto City, Nagano Prefecture (November 2013), Saga City, Saga Prefecture (August 2014), and Kurume City, Fukuoka
Prefecture (March 2015).

11

Yamabiko LAWSON Jinseki Kogen-cho Store• LAWSON Saga Yoshinogari Store (Yoshinogari-cho, Kanzaki-gun, Saga Prefecture)

We take orders over the phone, etc., and deliver the ordered
products to the customer’s home. The products, including
boxed lunches, onigiri (rice balls), beverages and other heavy
items, toilet paper and a large selection of other products, aredelivered free of charge if the order is for 700 yen or more.

To various pla

The car heads on to thenext community.
ces

Lawson traveling sales services
We visit homes for the elderly, companies,
multipurpose halls and other facilities
and offer an extensive variety of snacks,
beverages, fruits and daily necessities for
sale.

Providing new services under a business alliance with SG HOLDINGS
Lawson founded SG Lawson in a joint venture with SG HOLDINGS CO., LTD. in June2015 to offer home ordering and delivery services in small commercial areas andintroduced the services in Setagaya Ward, Tokyo, the same month.
Note: These services are provided only by some Lawson stores.

12Social contribution activities

Making communities more lively
Lawson collaborates closely with local communities and governments to conduct various
activities, including promotion of local production for local consumption*, participation in Safety
Station activities, responses to large-scale disasters and assistance in reconstruction, and in-store* Local production for local consumption: Activities to encouragefundraising to support “greenery” and “children.”

See the next page
to find out about ourmeasures to prevent
disasters.

In Shiga Prefecture, for example:

Installation of racks forprefectural government public
relations materials in 40 storesconsumers to purchase locally produced products

Using stores nationwide to makecommunities happier and livelier

ido

Hokka
y
iousl
Delicr~sou

Oh, soyummy,Fukui
plum

The Lawson Group signs comprehensive agreementswith local governments in Japan to promote
community contribution activities, such as communitybased store management, product development,
environmental preservation efforts and childcare
support activities. Lawson takes advantage of its
nationwide network of over 12,000 stores to makecommunities throughout Japan happier and livelier.
Promotion of sales of locally sourced
products and food ingredients
Lawson develops and sells products using food ingredientsand specialties from various regions of Japan to successfully
realize local production for local consumption contributing torevitalization of local communities nationwide.
Aomori Prefecture:
Creamy cheesecake with
Aomori apples, produced
under the supervision of
ARPAJON

Fukui
Pref.

Fukui Prefecture:
Fukui ume onigiri(Japanese plum riceballs)

Hiroshima
Pref.

local
specialties

Ibaraki Prefecture:
Rice with shirasu(whitebait) unloaded at
Oarai port

Shiga Prefecture:
Shiga umaimon bento(tasty boxed lunch)

Kochi Prefecture:
Kochi mansai double yakisoba (fully
packed pan-fried noodles)
Oita Prefecture:
Toriten yuzu mayo
onigiri (chicken tempura,
Chinese lemon andmayonnaise rice balls)

Hiroshima Prefecture:
Setoda lemon cheese cakeNote: Not all the products are shown. Some may no longer be available.

13

Disasterprevention
measures

Promotionof localproducts/foodingredients

Welfare andchildcare
support

Number ofcomprehensive
agreements signed
45 prefectures,
6 cities(As of end May 2015)

In the Tohoku Region, for example:

Issuing “childcare support coupons”
to households with children
We issue “childcare support coupons” to customers
who are raising children in the five prefectures of
the Tohoku region — Aomori, Iwate, Akita, Yamagata
and Fukushima prefectures — to provide support
for children, the generation of the future, and theirfamilies.

Contributions
to theenvironment

Crime prevention/
development ofyoung people

In Tottori Prefecture, for example:

Hokkaido:
Soba with mixed maitake
mushroom tempura
produced in Tomakomai

Refreshingly
fresh
Setodalemon!

Promotion andadvertising of
tourism

Making communities more lively

Maitakemushroomgrown inTomakomai
are thevery best!

LAWSON
offersproducts
madewith....

Racks devoted exclusively to materials
publicizing the prefectural government’s
activities advertising and promoting
tourism have been installed in 40 storesin Shiga Prefecture to provide a variety of
information.

Signing comprehensive agreements with local governments

In Toyama Prefecture, for example:

Cooperation with athletic events
held in Tottori Prefecture for thedevelopment of young people

About 180 stores in Toyama Prefecture
are taking part in the “Toyama Eco Store
System”

Lawson supports the sounddevelopment of young people bycooperating with athletic meetings
for the prefecture’s youth (organizedby the Tottori Sports Association)
to improve their competitiveness in
sports, teach them proper skills andtrain them mentally and physically.

The stores set their air conditioners at
27˚C in summer and 18˚C in winter.
They ask customers if they need aplastic shopping bag or not, moreover,to decrease the number of bags used.
The stores promote eco-friendly lifestyles
through these activities in cooperation
with the citizens of Toyama Prefecture.

Working to become a safe and reliable store for you 〜Safety Station activities〜• Prevention of emergency scams
In one case, a quick-witted store crew member talked
to a customer who was spending too much time at
the ATM and successfully prevented an emergency
scam. In another, a store employee questioned acustomer who wanted to transfer money, which
turned out to be an attempted refund scam.

• Helping people who fall ill suddenly
and the elderly• Cooperation with community crimeand disaster prevention activities

Is everything
OK, Ma’am?

I've got to hurry up,
I’ve got to…..

Aren’t you
attempting an
emergency scam?

Oh, oh!

A sales floor poster publicizing
Safety Station activities

14Social contribution activities
Supporting the reconstructionof the Tohoku Region

Making communities more lively

Ongoing cooperation with disaster area
reconstruction efforts

Responses to large-scale disasters

Preparations to serve as a community lifeline

More than four years have passed since the Great East Japan Earthquake, but thedisaster area is still on the road to reconstruction. The Lawson Group continues to provide
support for the people in the affected area from a multilateral perspective, including the
opening of nearby stores, development of products using food ingredients producedin Tohoku, offering employment, and conducting fundraising activities to support theeducation of disaster affected students.

<Bodies concluding disaster goods supply agreements>• Local governments: 47 prefectures; 15 cities and wards• Others: Tokyo Fire Department and Japan GroundSelf-Defense Force• 8 mass transit systems• 2 electric power companies<Bodies concluding agreements to
help stranded commuters>• Local governments: 39 prefectures;
10 government-designated cities（As of February 28, 2015）

Reopening of the first retail store to
resume operation in Namie-machi,
Fukushima Prefecture Serving as a centerfor the local community

Making communities more lively

In the event of a large-scale disaster, LAWSON
stores, even those located in a disaster area,
will do their best to continue operating in order
to serve as a lifeline for residents’ daily lives.
Lawson is committed to its social responsibility
as a convenience store operator, moreover,and has signed disaster goods supply
agreements and agreements to help stranded
commuters with local governments and publicorganizations nationwide.

Recovery Activities
from the Great East
Japan earthquake

In stores

Conclusion of disaster goods supply
agreements and agreements to
help stranded commuters
Conclusion of disaster goods supply
agreements.

Reconstruction Support Project
Egao (smile) Station Project
Project implemented in Iwate Prefecturewith the theme of the “ties between
parents and children”*The map shows prefectures in which agreements have been signed.

Supporting reconstruction of disaster areas through the Disaster Relief Fund

Delivering your goodwill to the affected areas

In the event of a major disaster, the fundraising boxes in stores areconverted to Disaster Relief Fund boxes in order to deliver the goodwillof customers all over Japan to people in the disaster area. Collected
donations are delivered to the affected people through emergency
centers in the respective areas and to the Japan Red Cross Society
and other organizations.

Opening of the LAWSON store in front of the Namiemachi town office in August 2014

This was the first retail store to resume operation in Namiemachi, Fukushima Prefecture, after the disaster. The store
serves as a place for local citizens to get together.

Fundraising campaign title

Nepal Earthquake 2015
Relief Fundraising

Hiroshima Heavy Rain
Disaster Relief Fundraising

Area

Duration

May 1 – 18, 2015

¥34,450,763.-

Via Loppi *2
Using Ponta points

April 28 – June 30, 2015

¥5,686,000.¥271,662.-

August 22 – September 15, 2014
*From August 22 to September 1, fundraising
was conducted only at LAWSON stores in
Hiroshima Prefecture.

*1 Lawson Group: LAWSON, NATURAL LAWSON, LAWSON STORE 100*2 Fundraising via Loppi was conducted only in LAWSON and NATURAL LAWSON stores with Loppi multimedia terminals.

Fundraising via Loppi
We have started accepting donations via Loppi
multimedia terminals in our stores to enable customers
to select the recipients of their donations. Victims
now receive relief donations more quickly when major
Displaying the above QR code todisasters occur.
the Loppi bar code reader takes you
Note: Relief donations are accepted for a limited time only.

15

Donations collected

Fundraising box set at:
Lawson Group stores nationwide*1
12,056 stores

Lawson Group stores nationwide:
11,922 storesWith products

Depositary ceremony of fund-raising for the reliefof Nepal earthquake victims, 2015

■ Results of the Disaster Relief Fund activities since FY2014 (As of end July 2015)¥30,091,901.-

In 2015, we sold products made with locally produced raw
materials for local consumption in Iwate and organized sports
classes to let parents and children enjoy time together. We
plan to continue the above project and to implement it inother prefectures in Tohoku in 2016.

We sell products made with raw materials produced in Tohoku and donate
part of the proceeds of sales to the “Support Dreams Fund (a scholarshipfund for victims of the Great East Japan Earthquake).”（Scholarship fund for victims of theGreat East Japan Earthquake）

Rice with Kesennuma
shark's fin sauce

Miyano (Miyagi
Agricultural High School)
blueberry & whip bread

Fukushima peach tart

For details, see P17.

In communities
Support for the rehabilitation of employment in the area forevacuees living outside the prefecture
Lawson cooperates with FLIP, a general incorporated association, in supporting
evacuees who are living outside their home prefecture due to the Great East Japan
Earthquake by helping them find jobs. Lawson Staff, Inc., a personnel placementcompany in the Lawson Group, refers applicants to stores and related companies.

straight to the fundraising menu.

16Social contribution activities

Environmental Activities

Making communities more lively

Groupwide Environmentally
Friendly Initiatives

Support for “greenery” and “children”

Lawson Group's fund-raising activity,"Happiness in Communities"
The Lawson Group promotes fundraising activities mainly in support of“greenery” and “children.” Donations expressing customers' goodwill
collected in the stores, together with donations from headquarters,
are donated to three public entities and used in greening projects
conducted mainly by schools nationwide and in projects supportingchildren as part of the Tohoku Region reconstruction.

Lawson Green Fund
Achievements of the activities(September 1992 – February 2015)

Cumulative donations:Lawson considers the environment in every location and every step of its
business operations, from product development, manufacturing and delivery tostore equipment and management.
The Lawson Group’s“Happiness in Communities” Fund

Cumulative Donations:
About ¥7.5 billion

The Lawson Green Fund supports greening projects carried out by school volunteer groups,
mainly from elementary, junior high and special needs schools throughout the country, as
well as through projects conducted by volunteer groups in Japan and overseas.
Recipient: The National Land Afforestation Promotion Organization
Participation in Greening Contribution Projects
Franchise owners, store managers, store crew and headquarters employees participate
in greening contribution projects that benefit from the Lawson Green Fund.

Approx. ¥3.66 billion
Activities conducted:

3,741 locations

Creating
products(For September 1992 through February 2015)
Donations include those collected in stores,
donations from headquarters, donations via
Loppi, and donations of Ponta reward points.

Size of the area planted for greening:

Approx. 6,771 ha

Productdelivery
Product development
and manufacturing

Number of trees planted for greening:

Approx. 16,920 thousand

The size of the area and the number of trees planted
for greening have been calculated based on the total
amount of donations raised throught Lawson Green Fund
activities, the overall achievements of the Green Fund
activities, and certain assumptions.

Activities in a school

Environmental Activities

Activities on a mountain

Product shipment

Support Dreams Fund(a scholarship system for victims of theGreat East Japan Earthquake)

Recipient: Civic Force

A get-together of recipient students:
Photo courtesy of Civic ForceThe Support Dreams Fund is ascholarship program organized tosupport the students affected by
the Great East Japan Earthquake.
The program helps 1,097
recipient students make their
dreams come true by providing
scholarships amounting to¥30,000 per month.

TOMODACHI Fund(supporting students in the Tohoku region throughU.S.-Japan educational and cultural activities)

Recipient: U.S.-Japan Council (Japan)
The TOMODACHI Initiative is aJapan-U.S. public-private partnershipfor U.S.-Japan educational andcultural exchange, development ofleaders of the next generation.
Lawson supports educational andcultural exchange involving students
TOMODACHI Female High School Students in the Tohoku region with funds
raised by the TOMODACHI Fund.
Career Mentoring Program in Fukushima

Elementary school children experience work in a convenience store

Participating in the Student City program by operating abooth for experience-based learning

17

Store management
and equipment

Lawson operates a booth (store for hands-on experience) in Student
City, a facility managed and operated by the Kyoto City Board of
Education, Sendai City Board of Education and Junior Achievement
Japan. A small “town” is reproduced in Student City, a venue comprising booths simulating a
LAWSON store as well as the stores and offices of other sponsor companies, including banks andnewspaper publishers. Upper grade elementary school children learn about social and economic
mechanisms and children’s relationship with society through job experience.

Lawson FamilyStoreequipmentStoremanagement
Participation

18

Environmental Activities

From product development andmanufacturing to store delivery
We consider the environment in various aspects of product development, manufacturing anddelivery, including the following: developing innovative containers and packaging to conserve
resources, employing a production process management system to reduce raw materials waste,
and reducing the energy consumed in transporting raw materials and products.
Developing products using domestic raw materials
Hey, theyhave
puddings!
They looktasty!
Cooled…

Riceballs, too.
I wannaeat
them…

Reducing energy consumption
in transportation

Creating
products

Lawson produces boxed lunches,
rice balls, desserts and other products thatmake use of domestically sourced, seasonal
ingredients. This not only contributes to therevitalization of local communities acrossJapan, but it also reduces energy consumption,
because the ingredients do not have to travel
as far as those imported from overseas.

We have reduced CO2 emissions by 40% justby limiting the use of wrapping films aroundthe lids of lunch boxes. Our cold noodle
containers are made from bio-PET plastic, partof which is derived from sugarcane.

• Container/packaging weight and CO2 emissions
CO2 emissions(left scale)

Total weight(left scale)（t）

45,00040,00025,0009828,754 28,542

5.81

10,000Cold noodle containers madefrom bio-PET plastic

10,685

9,827

32,511

10,0185
4
3

10,189

2
1

5,000
0

7
6

4.91 5.02

4.87

20,00015,000（g）

41,57635,00030,000Weight per container(right scale)2006(Base year)

2012

2013

2014 (Fiscal

0

year)

Minimizing waste in the production process

To reduce waste in the manufacturing stage, we have introduced theProduction Process Management System, which carefully measuresingredients, product volume and servings down to a gram.

Normaltemp.

Wow!

normaltemp.
and cold
products
at thesame
time

Promoting energy efficiency in the delivery process

Promoting efficient deliveries and eco-driving

Delicious! Local specialties
Hokkaido salmon and salmonroe boxed lunch

Cold

Productdelivery

From product development and manufacturing to store delivery

Why do normal temperatureand cold foods come from thesame truck?

19

Reducing CO2 emissions by using
lighter, plant-derived containers andpackaging

Introduction of the Production
Process Management System

Delicious! Akashi specialty
octopus riceBoys,
LAWSON’s
truckscandeliver...

Environmentally-friendly containers and packaging

LAWSON aims to deliver products efficiently by promoting
multi-drop deliveries and optimizing delivery frequency.
In addition, our trucks are fitted with eco-friendly tires toimprove fuel economy. LAWSON promotes eco-driving byusing a traffic control system that monitors the status of
the trucks on the road. We also raise awareness by training
drivers to prevent
Average daily number of trucks per store
unnecessary vehicle
Fiscal 198916
idling and noise.

Almond jelly with watermelon(topped with watermelon
from the Miura Peninsula)Consecutive Food
Action Nippon Awards
Lawson received the Awardof Excellence in Distribution at
the Food Action Nippon Awards
for two consecutive years(2013 and 2014). The awards
recognize outstanding efforts to
help increase consumption ofdomestically produced foods. “Kara-age Kun,” made from ▲100% domestic chicken

Fiscal 2014

7.0

Recognition for excellent drivers

CO2 emissions by delivery Fiscal 2012
vehicles per store% reduction(compared with fiscal 2007)

23.8

Fiscal 2013

Fiscal 2014

22.8% reduction 24.2% reduction
20

Environmental Activities

Store Equipment
LAWSON stores reduce electricity consumption and CO2 emissions by installing freezers andrefrigerators that use CO2 coolant as well as solar power systems. They also reduce waste byreusing fixtures and equipment.
Experimental energy-efficient stores equipped with the latest technologies

Examining energy-saving benefits and applying theknowledge to stores nationwide

Electricity
consumption target
Approx. 60% reduction
Compared with fiscal 2010

Management of fixtures and equipment at reuse centers

Reuse of store fixtures and equipment

When stores are remodeled or closed, their fixtures and equipment that still meet LAWSON’s
standards are stored at reuse centers and then reused in newly opened stores. There are two reusecenters (one each in Eastern and Western Japan), where these items are numbered, stored and thenredeployed, allowing reuse spanning a large geographic area.
Closing/remodeling

The stores are trying many things
to reduce the heat load, such as
installing green walls and introducing“double-skin facades” (for the
first time in the convenience store
industry).

Items for storage
and reuse• Reduction of electricity consumption through use of CO2 coolant

27%

reduction

Reduction ofalternative CFCs

The CFCs formerly used for refrigeration were
found to destroy the ozone layer, which protects
living organisms from ultraviolet radiation. This
is why they were replaced by alternative CFCs.

While alternative CFCs do not damage the ozone layer,
their greenhouse effect is hundreds or thousands
times higher than that of CO2. Laws and regulations
were therefore strengthened to reduce their use.

Natural coolants

Lawson has selected

Natural coolants (hydrocarbon, ammonia, CO2, etc.)

CO2 is particularly safe among
natural coolants.
Hydrocarbons

Ammonia

CO2

Flammability

High

High

No

Toxicity

Introduction of solar power systems

Yes

Yes

No

CO 2 coolant

It functions as a coolant, using
vaporization heat (CO2 consumes
heat when it is compressed andbecomes a gas).
Using CO2 coolant
enables us to reduce electricity
consumption, CO2 emissions
and CFC emissions at thesame time.

SafetyLawson had installed solar power systems in about 2,000 stores by
fiscal 2014. These systems have a generating capacity of 12 kW,
comprising 10 kW (two 5 kW devices) for use in energy sales
and 2 kW for in-store use.
21

Electricity
consumption
by coolingsystems

In fiscal 2010, Lawson began installing freezers and refrigerators that use CO2 coolant in its stores. The total
number of stores with the new equipment reached about 580 in fiscal 2014. The impact of CO2 coolant on Earth’s
atmosphere is very small, just 1/4,000 that of alternative CFC coolants. CO2 coolant also has a high potential forenergy efficiency.

Penetration and expansion of renewable energy

Complete phase-outof CFCsStore Equipment

Freezers and refrigerators using a CO2 coolant

12%
reduction

Reuse of fixturesand equipment

Why is it good to use CO 2 coolant?

Storeequipment

Electricity
consumption
at all stores

New store opening• Fryers• Microwave ovens• Magazine racks• Freezer/refrigeration display cases• Air conditioners• Signboards, etc.

LAWSON Toyohashi Akemi Industrial Park, an experimental energy-efficient store was
opened in Toyohashi City, Aichi Prefecture, in November 2014. Our goal is to reduce
electricity consumption throughout the entire store by about 60% compared with fiscal
2010 by using energy-conserving equipment featuring cutting-edge technologies. We apply
the knowledge obtained at experimental stores like this when installing equipment in regularstores and continue developing new equipment to promote further energy conservation andCO2 emissions reduction.

Introducing a natural coolant with lower environmentalload and higher energy efficiency

Reuse center

22

Environmental Activities

Store Management
LAWSON stores have set a goal for fiscal 2020 of reducing per-store electricity consumption by
20%. We are installing energy-efficient refrigeration and air-conditioning systems to achievethis. We have also established the Ten Energy-Saving Rules and put them into practice toincrease operating efficiency.

Medium-term goal
for fiscal 2020

CherishtheharmonyamongpeopleThis is theSeventeenArticle
Constitutionof Shotoku
Taishi.
a ha

Setting an energy efficiency target

Goal for fiscal 2020: Reducing per-store electricity consumption by 20%
Lawson is striving to achieve its energy-efficiency target by actively installing energy-efficient
refrigeration and air-conditioning systems and equipment such as LED lighting.
• Per-store electricity consumption (index) and CO2 emissions*1
（%）

120
100

Reduce per-store
electricity consumption
by 20% compared withfiscal 2010

80
60

Taishi,What isthat?

Annual electricity consumption index (left scale)(Base year)

100.0

CO2 emissions (right scale)（t-CO2）

120

101.2
88.8

91.1

80.0

Target

68.2

100
80
60

40

40

20

20

0

2010

2014

2020 (Fiscal year*2)0*1. The power-reception end coefficient after adjustment identified by theFederation of Electric Power Companies of Japan is used to measure CO2 emissions.
Data for fiscal 2014 and 2020 are calculated using the coefficient for fiscal 2013.
*2. Calculated in accordance with the administrative year from April 1 to March 31.

Ha hStore Management

Store
management
Young
man,
What isthat?

Implementing the Ten
Energy-Saving Rules

Lawson’s
Ten
EnergySaving
Rules

Oh!

Eco- ly!
friend23

Promoting energy efficiency in stores

Clean
refrigerator
and air
conditioner
filters once aweek.

We have established the Ten Energy-Saving
Rules to help improve the operating efficiencyof our stores’ refrigeration and air-conditioning
systems and reduce unnecessary power use.
In the course of their daily operations, thestores are implementing such measures ascleaning refrigerator
and air-conditioner
filters and using
designated airconditioner
temperature settings.

1

Clean refrigerator and air-conditioner
filters once a week.

6

Restock hot drinks with products that havebeen stored at room temperature.

2

Keep air-conditioner temperatures set at 27°C insummer, 18°C in winter and off in spring and autumn.

7

Do not overfill storage freezers
or refrigerators.

3

Minimize the time that doors to walk-in and storage freezers
and refrigerators are open when moving products in and out.

8

Turn off lighting and air conditioning inunoccupied back rooms and storage areas.

4

Keep the area around outdoor refrigerators andair-conditioning units clean and tidy.

9

Arrange products so that they do not disturb
the air curtain on open cases.

5

Restock summer products that are frozen in-store
from stocks that have been refrigerated.

the number of times storage freezers
10 Minimize
and refrigerators are opened.

Roomtemperature

Squ

eez

e…

24

Environmental Activities
Lawson’ Achievements:
Environmental Awards

Store Management

FY

Title

Activity

Organizer

2015

The 2nd Food Industry Mottainai Award
Commendation from Secretary General of Food
Industry Affairs Bureau

Promotion of measures to prevent global warmingby using natural coolant (CO2) and other efforts(including the initiative at MACHI café)*

Japan Organics Recycling Association

Performance Award at the 4th2014 Outstanding
Carbon Offset Awards
of Excellence in Logistics at Food Action
2014 Award
Nippon Awards 2014
of appreciation and Distinguished Service
2013 LetterAward at Arakawa Clean Aidof Excellence in Logistics at Food Action2013 Award
Nippon Awards 20132013 Environment Minister's Award for Global

2013 Warming Prevention Activities (introduction of
2012
2012
2009
2008

advanced countermeasure technology)
2012 Environment Minister's Award for Global
Warming Prevention Activities (introduction anddissemination of countermeasure technology)
METI Minister's Award at the 15th Ozone Layer
Protection/Global Warming Prevention Awards
2009 Environment Minister's Award for Global
Warming Prevention Activities (implementation ofcountermeasures)2008 Award of Excellence from the Ministerof the Environment for Promoting the 3R's ofContainers and Packaging
eco japan cup 2008

2008 Environmental Business Award (software
category)

CO2 offset with hot coffee and caffè latte at
MACHI café*• Product development with domestic raw materials,
using Health as a key word (e.g. bran bread)• Switching the raw material of Kara-age Kun to
100% domestic chicken
20-year commitment to Arakawa Clean Aid• Farming Corporation Lawson Farm
• Development and sale of products using domestic
food (e.g. Delicious! Local Specialties boxed lunch
series)Development of experimental energy efficient storesand installation of freezers and refrigerators that use
CO2 coolant

Food Action Nippon Awards 2014
Steering Committee
Arakawa Clean Aid Forum; ArakawaKaryu River Office at the Ministry of Land,
Infrastructure, Transport and Tourism
Food Action Nippon Awards 2013
Steering Committee
Ministry of the Environment
Ministry of the Environment

Installation of separate display cases and freezers
using natural coolant (CO2)NIKKAN KOGYO SHINBUN, LTD.

CO2 Offset Program*

Ministry of the Environment

Bring Your Own Bag campaign

Ministry of the Environment

Reduce, Reuse, Recycle Promotion
Association

Bring Your Own Bag campaign

Ministry of the Environment

2007

Convenience Store Eco Bags

Ministry of the Environment

Introduction of Eco Pack and Eco Monitor in existing
storesThe Energy Conservation Center, Japan

Lawson Green Fund

The National Land Afforestation Promotion
Organization

Lawson Green Fund and tree planting

Ministry of the Environment

2006

2005 The 16th Green Culture Award
2004

2004 Environment Minister's Award for Global
Warming Prevention Activities (implementation ofcountermeasures)* See the illustration below.

As of July 31, 2015

How the CO2 Offset Program works to reduce customers’ CO2 emissions

Customer

Participatingin the CO2
OffsetProgram

Purchaseof offset
credits
Purchase of offset
credits through Loppi

Notice of transfer
We send a certificate.`*Excluding products with
CO2 offset credits attachedExchange of points
for offset credits

Helping to reduce Japan’s
net CO2 emissions

Purchase of CO2
offset products

Offset credit
transfer

Ministry of the Environment/
Ministry of Economy, Trade and Industry Quota
Account Inventory of Japan (depreciation account)

CO2
eductionbusiness

Offset credits created through theCO2 reduction business in developing
countries (hydropower and biogas
electricity generation, etc.) and theCO2 reduction business in Japan

Total number ofparticipating customers
30.9 million
Total CO2 offset
Approx. 24,700 tons
As of February 28, 2015

The idea behind CO2 offsets is that the amount of the purchaser’s CO2 emissions is offset by efforts to reduce themelsewhere, such as afforestation, forest preservation and clean energy use.
LAWSON customers can exchange shopping reward points acquired by using their Ponta multi-partner loyalty point
cards for CO2 offset credits or purchase CO2 offset products. By offering these credits, we help customers offset
their CO2 emissions.

25• Plastic shopping bags used per store
（kg）

（%）

900

100

900

77.4

78.3

690

683

79.1
75

600

667

50

300
0

Municipalities conducting campaigns to reduce theuse of plastic shopping bags
Prefectures: Fukushima, Tottori, Shimane, Okayama,
Fukuoka, Nagasaki, Kumamoto, Miyazaki and Kagoshima.
Cities: Sendai (Miyagi), Edogawa (Tokyo), Musashino (Tokyo),
Ogaki (Gifu), Izumiotsu (Osaka), Okayama and Fukuoka.

25

2000

(Base year)

2012

2013

2014 (Fiscal
year)

0

Plastic shopping bags
used per store (left scale)
Plastic shopping bag
handout rate (right scale)Store Management

2007 of the Environment for Promoting the 3R's ofContainers and Packaging
Prize for Encouragement at My Bag DesignAwards of the Ministry of Environment 2007
METI Minister's Award at the National Conference
on Excellent Energy Conservation Initiatives 2005

We work to reduce the use of plastic shopping bags by having store crew
ask customers whether they need them, using in-store broadcasting,putting up posters and handing out reusable shopping bags. We also
participate in municipal campaigns to reduce the use of plastic shoppingbags by posting campaign notices and promoting the use of appropriately
sized plastic shopping bags.
A poster encouraging reduced use of
In fiscal 2014, the per-store use of plastic shopping bags decreased byplastic shopping bags
25.9% compared with fiscal 2000, and the plastic shopping bag handout rate* was 79.1%.

1,200

Environmental Business women,
Sumitomo Mitsui Banking Corporation,
Ministry of the Environment, Ministryof Internal Affairs and Communications

CO2 Offset Program*

Reducing the use of plastic shopping bags throughconversation with customers and posters* Plastic shopping bag handout rate = Number of bags purchased by stores ÷ Number of customers

Eco-friendly containers and packaging

METI Minister's Prize at Distinguished 3R's Bring Your Own Bag campaign
2008 2008
Promoters Awards
2007 Prize for Encouragement from the Minister

Carbon Offset Network, Japan

Reducing the use of plastic shopping bags

Penetration of Convenience Store Eco Bags

Distribution of 4.31 million reusable shopping bags
Lawson makes Convenience Store Eco Bags to help reduce the use of plastic shopping bags. These
reusable shopping bags are just the right size for the boxed lunches orbottled drinks that customers buy frequently.
In March 2007, we started handing out these bags in some LAWSON
stores to promote our Bring Your Own Bag campaign. Later, we started
selling the bags through Loppi multimedia information terminals. We also
promote penetration of the bags outside the company by releasing thebags’ specifications and inviting other companies to collaborate.
We have distributed 4.31 million reusable shopping bags* in the 8
years since we introduced the initiative.
* Including reusable shopping bags other than our Convenience Store Eco Bags.

Fiscal 2012
Total number of
distributed reusable
millions
shopping bags

3.26

Fiscal 2013

Fiscal 2014

4.29millions 4.31millions
26

Environmental Activities

Store Management
LAWSON stores reduce waste by improving the accuracy of order placement based on sales
data analysis. We also recycle unsold food and used cooking oil.

Improving accuracy in product order placement

Is it OK toorder somanyof theserice balls?

Sure.

Optimizing our product offering to
reduce waste*The identities of individual cardholders are protected.

Achieving a food recycling ratio of 44.7%, well above the statutory target of 36.5%
Each day the average store generates 7.9 kg of unsold food waste (boxed lunches, rice balls, etc.)
and 2.1 kg of oil (waste oil) used in the preparation of fried foods (figures for stores participating infood recycling). We send unsold food to recycling plants, where it is processed into feed (for pigs
and chickens) and compost. Used cooking oil is made into livestock feed additives, biodiesel for
public buses and additive-free soap. As a result of such initiatives, we achieved a food recycling
ratio of 44.7% in fiscal 2014, well above the statutory target of 36.5%.
• Average daily waste per store
Results for about 2,400
LAWSON stores
conducting foodrecycling• Number of Lawson Group stores
conducting food recycling(Stores)Waste oil

2.1

Unsold food

7.9

Food

10.0kgCombustibles

18.8

Non-food waste

41.6kgCardboard

14.8

!

ome
Awes

PET bottles
Cans

Yes!
As I
expected.

Food recycling in Fukuoka City
We began recycling unsold food into
feed in Fukuoka City in October 2014.
Unsold food is sent from the stores
to a KANKYOU AGENCY CO LTD foodrecycling plant, where it is crushed,decompressed, dried, processed into
feed and then shipped to pig farmers
and feed manufacturers.

0.6
2.2

4.0

Glass bottles

1.2*The sum of food and other waste is 51.6 kg.
* From April 1, 2014 to March 31, 2015.

155

12,000
9,000
6,000
3,000
0

2,248
906
7,403
22.5

2007

(Base year)

9,875

164
2,292
10,468

170
2,475

80

11,059

47.6

44.7

32.5

34.5

36.5

2012

2013

50.3

100

60
40
20

(Fiscal2014 year*2)0Store Management

Plastic

Welcome(%)

15,000Results for about 420 LAWSON stores in Tokyo

We work to reduce waste by optimizing thestores’ product offering. Sales data gathered
through Ponta* multi-partner loyalty point
cards is analyzed and used to develop
hypotheses, taking the day of the week,
weather patterns, local events and otherfactors into account, to determine the optimal
product offering and volume. This improves theaccuracy of order placement and contributes
to waste reduction. We also reduce waste byadjusting food preparation in our Machikado
Chubo in-store kitchens to reflect the numberof customer visits.

Recycling unsold food

Waste oil recycling (left scale)
Recycling into feed and compost (left scale)
Thermal energy recovered (left scale)
Food recycling ratio*1 (right scale)Statutory target (right scale)*1 The food recycling ratio does not include Lawson Okinawa,
Inc. and Lawson Minami-Kyushu Inc.
*2 From April 1 to March 31.

Food recycling process in Fukuoka City

Sorting and crushing

Recycling by decompressing
and drying

Producing (feed)

Shipping pork

27

Feeding pigs on pig farms

28

Environmental Activities

Care for the Environment
in the Supply Chain
Lawson operates as a manufacturing retailer based on a small commercial area model,
producing high value-added products and selling them in customers’ neighborhoods. To
support these operations, Lawson is enhancing efficiency by expanding its involvement inevery stage of the supply chain, from raw materials procurement to product manufacturing,
distribution and sales in the stores, avoiding waste of ingredients in food processing
and maximizing distribution efficiency. In all these efforts, we remain considerate of thecommunity and the environment.

Disposal of containers,
disposable chopsticks andplastic shopping bags 5

1.12% [52.9]

CO2 emissions from our supply chain in fiscal 2014

Electricity consumption
associated with procurementof electric power

Waste materials generated by stores andindustrial waste generated at times ofstore closures and remodeling 5

1.56% [ 74.0]

0.59% [27.7]

Electricity consumption
by headquarters, areas,branches, and Companyoperated stores 5 7

Gasoline consumption 6
by company vehicles

0.13% [6.1]1.60% [75.9]

Business trips 7

0.01% [0.5]Materials flow in our supply chain• Electricity • Water• Gasoline & diesel fuel• Crude oil • Foodstuffs,
etc.

• Electricity • Water• Propane gas • Crude oil• Raw materials &packing materials, etc.

Energy consumption
by delivery centers 3 4• Electricity• Gasoline, diesel fuel& natural gas• Packaging materials• Electricity • Water• Containers & packaging,etc.

• Diesel fuel &natural gas• Gasoline• Electricity

1.66% [78.5]• Electricity • Water• Paper & office supplies,
etc.

Total CO2
emissions

4,728.3

INPUT

thousand tons

*CO2 emissions in brackets(thousand tons)

Raw materials
procurement

Manufacturing plants

Delivery centers

Stores

Delivery vehicles

Company
vehiclesHeadquarters& offices

Stocked raw materials 1 2• CO2 1 *• Waste materials• Effluent• CO2 2
• Waste materials• Effluent• CO2 3
• Waste materials• CO2 4

• CO2 5
• Waste materials• Effluent• CO2 6

• CO2 7
• Waste materials• Effluent

23.46%[[1,109.3]
1,109.3]

69.87%[[3,303.4]
3,303.4]

Care for the Environment in the Supply Chain(private and national brand products,
plastic shopping bags, etc.)

OUTPUT

Electricity consumption
by franchise stores 5

Calculations are based on “Explanations by Industry (Retail Industry) for the
Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout theSupply Chain,” Ver. 1.0.

* The numbers placed after “CO2” correspond to those in the pie chart at right.

Reducing CO2 emissions
throughout the supply chain
Provision of products and services
entails the use of such natural
resources as electricity, gasoline,
and other forms of energy as well aswater throughout the supply chain.
This results in emissions of CO2
and waste byproducts. To minimize
its environmental impact, Lawson
monitors CO2 emissions in every stageof its supply chain, from raw materials
procurement to product manufacturing,
distribution and sales in the stores. It
then implements various measures toreduce the emissions.
29

Third-party verification of CO2
emissions by Lawson
To ensure accuracy in its monitoringof CO2 emissions, Lawson obtains
verification by the Japan Quality
Assurance Organization (JQA) basedon ISO14064-3.

Lawson’s SCM–CRM modelHigh added value
Raw materials procurement
Greenhouse Gas Emissions
Verification Report

Product
development

Visualization ofopportunity loss

SCM

CRM

Supply chain
management

Customer
relationshipmanagement

Manufacturing
and logistics

Optimized
product offering• CO2 emissions calculation rulesof Company vehicles, LAWSON, NATURAL LAWSON,
Scope of Use
STORE100 and LAWSON MART (12,723 stores),inspection LAWSON
purchased goods and services for store sales
TargetperiodFrom April 1, 2014 to March 31, 2015
(administrative year)

Targetitems

Gasoline consumption by Company vehicles, electricity consumption
by stores and CO2 emissions from purchased goods and services

Comprehensive management fromprocurement to marketing, for more
complete process efficiency andoptimization

Planned orders

Marketing approach for providing
goods and services according to
specific customer needs
30Environmental Activities

A good community member
Promoting beautification of local areas with community residents

Creating Environmentally Friendly Stores
Food recycling (recycling into feed and compost)
Waste oil recycling

Participation

Helping to maintain a clean environment as a community member
Lawson participates in local cleanup and beautification activities around rivers and parks incooperation with the municipalities, companies and residents of the communities in which it
operates. Franchise owners, store managers, store crew (part-time and temporary workers) andemployees of Lawson’s headquarters, as well as their families and Lawson’s business partners, join
the residents in picking up trash and beautifying the communities in which they live.

Reusing fixtures andequipment

Products using domestic raw materials
Solar power system

Reducing plastic shopping bags
and disposable chopsticks
CO2 Offset Program

Arakawa Clean Aid
Date: November 15, 2014 (Sat.)
Participants: 76
Place: Arakawa Riverside (Edogawa-ku, Tokyo)
Collecting 58 bags of trash and 31 bulky waste items
We have been active participants since 1994.

Installing energy-efficient equipment
Using CO2 coolant in freezers and refrigerators
Beautification of communities

A good community member

Fukuoka Love Earth Cleanup
Date: June 7, 2015 (Sun.)
Participants: 85 (total participants: 1,015)
Places: Oohori Park and Maizuru Park
(Chuoh-ku, Fukuoka City)
Collecting about 90 bags of trash
We have been active participants since 1994.

Participation in local environmental events

Introducing Lawson Green FundWe also participate in local environmental events by introducing the Lawson Green Fund at a booth andconducting fun programs to stimulate visitors’ interest and raise awareness of environmental preservation.

Introducing LEDs for signboards
and store lighting
Lawson Group's fund-raising activity, "Happiness in
Communities" (Lawson Green Fund)

Efficient delivery & eco-driving

Lawson Group’s Target Image

Achievement of asustainable society
Sendai Eco Festa 2014
Date: September 7, 2014 (Sun.)
Place: Civic Square, Kotoudai Park (Aoba-ku, Sendai City)
We have been active participants since 2012.

31“Tamba Marugoto Market” in Hyogo Prefecture“Sawayaka Eco Festival”
Date: November 8 and 9, 2014 (Sat. and Sun.)
Place: Tamba Dome (Toyooka City, Hyogo Prefecture)
We have been active participants since 2009.

Proactive socialand environmental
activities

Guided by its Corporate Philosophy andEnvironmental Policy, the Lawson Group seeks
to implement socially and environmentallyconscious operations throughout its businessand to cooperate with customers in efforts torealize a sustainable society.

Cooperative socialand environmental
activities withcustomers32About us
Corporate profile
Company name
Headquarters

As of February 28, 2015 (Consolidated)
Business activities

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

President and CEO,
Representative Director Genichi Tamatsuka
Established
April 15,1975
Capital58,506.644 million yen (non-consolidated)
Number of employees 7,606

Franchise chain development of
LAWSON, NATURAL LAWSON and
LAWSON STORE100
Net sales for all stores 1,961.9 billion
Number of stores
12,383 (stores in Japan)
Operating areas
All 47 prefectures in Japan, China(Shanghai, Chongqing, Dalian, Beijing),Indonesia, Hawaii, Thailand

Note: Net sales for all stores is the sum of total sales by the domestic convenience store business, overseas business and SEIJO ISHII stores (consolidated
subsidiaries only). For the SEIJO ISHII business, only the total for its company-operated stores is included. The total number of stores in Japan is thetotal of LAWSON, NATURAL LAWSON and LAWSON MART/LAWSON STORE100 stores operated by Lawson, Inc., LAWSON stores operated by Lawson
Okinawa, Inc. and Lawson Minami-Kyushu, Inc., and Seijo Ishii stores operated directly by SEIJO ISHII CO., LTD.

Areas in which stores are operated
Number of stores in Japan
Hokkaido region

619 storesTohoku region

961stores
Aomori
Iwate
Miyagi
Akita
Yamagata
Fukushima

208
161
227
184
78
103

Total number of stores(in Japan and overseas)*

12,973 stores As of February 28, 2015

12,383 stores

Kanto/Koshinetsu region

4,211 stores

Ibaraki
150
Tochigi
141
Gunma
93
Saitama
514
Chiba
463
Tokyo
1,597
Kanagawa 862
Niigata
130
Yamanashi 111
Nagano150

Chubu region

Kinki region

Chugoku region

1,466 stores 2,404 stores 673 stores
ToyamaIshikawa
Fukui
Shizuoka
Aichi
Gifu
Mie

188
102
106
225
583
151
111

Shiga
155
Kyoto
324
Osaka
1,036
Hyogo
634
Nara
131
Wakayama 124
Shikoku Region

Tottori
Shimane
Okayama
Hiroshima
Yamaguchi

111
117
145
177
123

548 stores

Tokushima 130
Kagawa122

Ehime
KouchiKyushu/Okinawa region

1,394 stores
Fukuoka
Saga
Nagasaki
Kumamoto
Oita
MiyazakiKagoshima
Okinawa

189
107* The total number of stores and number of stores in Japan include stores operated under Lawson Mart, Inc., Lawson Okinawa, Inc., Lawson Minami
Kyushu, Inc., and SEIJO ISHII, CO., LTD. For SEIJO ISHII, CO., LTD., only its company-operated Seijo Ishii stores are included.
* The numbers of stores by region and by prefecture do not include those operated by SEIJO ISHII CO., LTD.

Overseas stores

Beijing 19 stores

590 stores

Dalian 30 stores

Beijing Lawson, Inc.

Dalian Lawson, Inc.

Chongqing 104 stores
Chongqing Lawson, Inc.

Thailand 32 stores
Saha Lawson Co., Ltd.

Shanghai 354 stores

Shanghai Hualian Lawson, Inc.

The Philippines

Hawaii 3 stores

Lawson USA Hawaii, Inc.

Category
Domestic convenience
store business

Name of company
Lawson, Inc.
Lawson Mart, Inc.
SCI, Inc.
Lawson Okinawa, Inc.
Lawson Minami-Kyushu, Inc.

Category
Consulting business

Name of company
BestPractice, Inc.

Overseas business

Lawson (China) Holdings, Inc.
Shanghai Hualian Lawson, Inc.
Chongqing Lawson, Inc.
Dalian Lawson, Inc.
Lawson Asia Pacific Holdings Pte. Ltd.
Saha Lawson, Co., Ltd.

SEIJO ISHII business

SEIJO ISHII CO., LTD.

Entertainment- and home
Lawson HMV Entertainment, Inc.
convenience-related business United Cinemas Co., Ltd.
Financial services business

Lawson ATM Networks, Inc.

Main businesses and services
A nearby “neighborhood store” that seeks to realize its
Corporate Philosophy of “Creating Happiness and Harmony in
Our Communities” by conducting business as a manufacturingretailer based on a small commercial area model*

As of February 28, 2015
A nearby store, observing a “daily and reliably”
concept, that supports customer lifestyles
embracing “beauty, health, and comfort”

Operating company

Lawson, Inc.
Lawson Okinawa, Inc.
Lawson Minami-Kyushu, Inc.
A store that contributes to savings and an easy,
convenient daily life by selling a range of products suchas perishable foods, prepared foods and daily necessities
at a uniform price of 100 yen (108 yen, including tax)

Operating company

Lawson, Inc.
A food-lifestyle supermarket for people who careabout food, providing food from around the world ataffordable prices

Operating company

Operating company

Lawson Mart, Inc.

SEIJO ISHII CO., LTD.

Sales of music and film productions such as CDs/
DVDs, related goods and books, both online andthrough a nationwide network of 53 stores

Sales of the full range of entertainment tickets,
including tickets to concerts, sports events, plays
and movies

Operating company

Operating company

Lawson HMV Entertainment, Inc.

Lawson HMV Entertainment, Inc.

One of Japan’s largest online bookstores sellingbooks, magazines and comics

A business that provides installation, management
and operation of ATMs installed at LAWSON storesin cooperation with banks

Operating company

Operating company

Lawson HMV Entertainment, Inc.

Lawson ATM Networks, Inc.

Operation of multiplex movie theaters offering not
only film entertainment but also such enrichingexperiences as 4DX® (experiential viewing) andvarious contents other than movies

A home-delivery service providing healthful anddelicious food. An all-round home delivery site on
which customers can purchase not only Lawson
Fresh products but also food, daily necessities andother items handled by the Lawson Group.

Operating company

Operating company

United Cinemas Co., Ltd.

Lawson, Inc.

A business that sells safe, delicious foodstuffs asingredients for home cooking, such as organic
vegetables and natural foods, as well as other items
for the home through direct home delivery or shops

One of Japan’s largest individual home-delivery
services for organic and inexpensive agrochemicalfarm produce and other daily-life products

Operating company

Operating company

DAICHI wo MAMORU KAI Co., Ltd.

Radishbo-ya Co., Ltd.

Twenty-two farms nationwide producing fresh fruitand vegetables for Lawson Group stores

Delivery of products handled by the Lawson Groupand home-delivery items handled by Sagawa
Express Co., Ltd. and other services related to
shopping and housing/living with Lawson stores as
the starting point. (Services initiated in June 2015.)*

Indonesia 48 stores

PT MIDI UTAMA INDONESIA Tbk

As of February 28, 2015

Operating company

Operating company

Lawson Farm in the respective locations

SG Lawson Co., Ltd.*

About us(First store opened March 1, 2015.)
PG Lawson Company, Inc.

442
67
105
135
166
103
202
174

Main Lawson Group companies*Company established and services initiated in June 2015.

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