First Half Results for FY2015(Six months ended August 31, 2015)

Lawson, Inc.
October 8, 2015

Copyright (c) 2015 Lawson, Inc. All rights reserved.

1

Financial ResultsforFirst Half of FY2015

Yutaka Yoshitake
Chief Financial Officer

Copyright (c) 2015 Lawson, Inc. All rights reserved.

2

Earnings Summary: FY2015 1H (Consolidated)
Net sales for all stores
Operating profit
Operating profit ratio
Recurring profit
Net profit
EPS (Yen)
Dividend per share (Yen)FY2013-1H
Actual
992.7
35.6
3.6%
35.5
19.0
190.67110

FY2014-1H
Actual
994.6
40.0
4.0%
39.6
21.8
219.15120

Actual
1,035.4
42.0
4.1%
40.7
19.8
198.11
122.5

Total no. of stores in Japan

11,384

11,987

12,305(Billions of yen)

FY2015-1H
YoY
vs. Plan
104.1%
99.0%
105.1%
113.6%+0.1%P+0.5%P
103.0%
113.3%
90.5%
107.7%▲ 21.04
107.7%
+2.5
±0
+318

▲ 11

Note: FY2015-1H total chain store sales includes sales from the convenience store operation in Japan, overseas operations and sales from Seijo Ishii(consolidated items only). Regarding Seijo Ishii, only the sales of directly operated stores are included.
Note: The number of stores in FY2015-1H is the total number of convenience stores in Japan operated by the Lawson Group plus the number of directly
operated Seijo Ishii stores.
Note: Extra small stores have been included since FY2014-1H following changes in calculating stores counts.

Operating profit: 42.0 billion yen (+5.1% YoY), 5.0 billion yen above target
Gross profit margin was flat but achieved our operating profit target for the Lawson parent thanks tocontrol of SG&A expenses. Contributions from newly consolidated subsidiaries, Seijo Ishii andUnited Cinemas, exceeded expectations.
Net profit: 19.8 billion yen (-9.5% YoY), 1.4 billion yen above target
Higher-than-expected operating profit helped push net profit above target. However, net profit declined
YoY mainly on drawdowns on deferred tax assets following cuts in the statutory effective tax rate.
Copyright (c) 2015 Lawson, Inc. All rights reserved.

3

FY2015 Company Forecasts (Consolidated )Net sales for all stores
Operating profit
Operating profit ratio
Recurring profit
Net profit
EPS（Yen）
Dividend per share (Yen)ROE

FY2013
Actual
1,945.3
68.1
3.5%
68.8
37.9
380.04220
16.1%

FY2014
Actual
1,961.9
70.4
3.6%
71.7
32.6
327.08240
13.0%

FY2015 Forecast
Plan
YoY
2,062.0
105.1%
71.0
100.7%
3.4%▲0.2%P
68.9
96.1%
35.2
107.7%
352.00+24.92245+5
13.5%+0.5%P

Total no. of stores in Japan

11,606

12,383

12,846+463

101.5%
99.8%
31.0%

100.0%
99.0%
31.3%

100.8%
100.9%
31.3%+0.8%P
+1.9%P±0.0%P(Billions of yen)(Non-consolidated)

Gross profit of existing stores (YoY)
Net sales of existing stores (YoY)
Gross profit margin ratio

Gross profit margin difference excluding cigarette▲0.4%P+0.4%P±0.0%P ▲0.4%P
sales (YoY)
Note: Figures in italic indicate the revised figures from the initial plan.
Note: Overall chain store sales for FY2014 and FY2015(E) include sales from convenience store operations in Japan, Lawson’s global operations, and Seijo
Ishii (consolidated items only) . Only directly operated Seiji Ishii stores are included in the calculation.
Note: Total store numbers for FY2014 and FY2015(E) include all convenience stores operated by the Lawson Group, and directly operated Seijo Ishii stores.

FY2015 operating profit estimate unchanged at 71.0 billion yen. Existing-store sales target onlyreflects stronger-than-expected performance in 1H. 2H forecast unchanged.
FY2015 2H: In light of the various policies implemented to attract customers, we revised forecast forgross profit margin forecast down to previous year’s level, A&P budged increased from initial target.
Aim to boost sales by attracting more customers.
Copyright (c) 2015 Lawson, Inc. All rights reserved.

4

Fiscal 2015:
A year to solidify our business foundation
toward the next generation

Genichi Tamatsuka
President and CEO
Representative Director
Copyright (c) 2015 Lawson, Inc. All rights reserved.

5

FY2015 : Actively Pursuing Medium-term Growth
Respond to social change + Leverage Lawson’s unique strengths
Fresh fromthe oven

Everydaysupport

Healthiercommunities

Closer tocustomers● Fried foods, ready-● Tasty & healthy● Everyday goods/ foods● Concentrated-area

made meals, snacks● MACHI café
● Machikado Chubo instore kitchens● Healthcare-focused● Safe vegetables

LAWSON● Care-focused LAWSON● Community-focuseddelivery/dispatch● Order directly or via
visiting sales people● Open platform

LAWSON● SEIJO ISHIIFun in thecommunity● Entertainment

all-round● Ticket, CD・DVD,
Goods● HMV,UNITED CINEMAS

3 Key reinforcements
Store

Product

Franchise Owners
Support● Overhaul franchise system● CVS core & lead items● Improve store hardware● New semi-automatic ordering system● Supermarket alternatives● Accelerate new franchise● Guaranteed quality new stores● Overhaul supply chain management

package

Based on our “Three Essential Practices”
Copyright (c) 2015 Lawson, Inc. All rights reserved.

6

Revolutionize Business Operation

Key success factors:
Franchise owners and supervisors
Every judgement and evaluation begins and ends at
our stores with our customers.
Our main priority is to satisfy customers throughbetter product offering and services at stores.
Copyright (c) 2015 Lawson, Inc. All rights reserved.

7

Revolutionize Business Operation
Maximize franchise store profitability by reinvigorating Lawson’s
unique, strong, sustainable “model” of business operation andstore guidance.
Digital (Systems, IT)

Analog (Human, real-world)

Semi-automatic ordering system

Improve training program for
franchise owners, store crews andsupervisors focusing on store
operation and product offering

Pre-planned orders
Next-generation IT systems

Fundamental review of HQ
operation

Boost supervisors’ business skills capability.
Judge everything from front line perspective
and not from the HQ.
Copyright (c) 2015 Lawson, Inc. All rights reserved.

8

Revolutionizing Our Overall Corporate BusinessOur aim:
Amass collective expertise and knowledge of all members
Execute as one, and strive to be a company where eachmember takes actions

To be an:An effective top-class company
Copyright (c) 2015 Lawson, Inc. All rights reserved.

9

FY2015 1H Strategies and Activities

Boost core strength of existing stores throughstronger store power, product power andsupport for franchise owners.
3 Key商品力強化
reinforcements
加盟店支援強化
売場力強化
Stores

Products

Franchise Owners
Support● Overhaul franchise system● CVS core & lead items● Improve store hardware● New semi-automatic ordering system● Supermarket alternatives● Accelerate new franchise● Guaranteed quality new stores● Overhaul supply chain management

package

Based on our “Three Essential Practices”
Copyright (c) 2015 Lawson, Inc. All rights reserved.

10

Strengthen Product PowerFY2015

1Q

2Q

100 yen rice ball sale

CVS coreproducts

Differentiatingproducts

New saladpackaging

3Q

Launch “Passionate and Delicious” project▲ Premium roll cake
▲ Sockeye
salmon on
Niigatakoshihikari
rice lunchbox

MACHI café
New café latte
prices▲ Cream puff
▲ Miso-flavoredmackerellunchbox
Steamed chicken
salad bowl

Natural Lawson’s▲ fully-filled cod roe riceballs
new greensmoothie
Cold pasta withtomatos

Natural Lawson’svegetable and fruit
smoothie with chia
seeds

Lawson Select Renewed

Products foreveryday life

Dining coupons
10% off all fried
foods

Copyright (c) 2015 Lawson, Inc. All rights reserved.

- Increase product range of fresh food
- Invest in additional fridges and freezers.

11Strengthen Product Power
New, high value-added products, introduced to mark our 40th anniversary, helped boost coresales categories.
“Passionate and Delicious” project, launched in June, helped further strengthen product power.

▲ Shark’s fin soupwith rice from
Kesennuma▲ Bumper roe riceballs

▲ Cake roll topped
with local melon

The “Passionate and Delicious”
project is revolutionizing our
product processes, with adetermined focus on ingredients,
manufacturing and taste.

Copyright (c) 2015 Lawson, Inc. All rights reserved.

▲ Genkotsu cheeseand mince croquet▲ Sockeye salmon on
Niigata koshihikari ricelunchbox▲ De-karaage fried chicken▲ fully-filled cod roe rice
balls

12

Strengthen Product PowerSemi-automatic ordering system for ready made food such as boxed lunch

Suggests optimum inventory levels, based on Ponta member data
SystemRecommends merchandise assortment

Ponta

35,000 calculations a day

Member data
New products/strategies

Stock recommendations

4 times a day■Actual example: Estimated rice-ball sales(number)

6/30

Products tosuit individualstores’ customer baseProducts boughtby heavy users
in each store

Producesrecommended levels
by matching individualstore data with 1.08
billion total Pont
member dataTop-selling products
POS
in each stores

(wee
k)

Improveme
nt
8/4

9/8

Improvement(Week)※Results from 3,200 stores which started SA since June.
It excludes the sales of 100 yen rice ball sale.
Copyright (c) 2015 Lawson, Inc. All rights reserved.

Creates more time to be
spent on customers(customer service, betterin-store cooked food, etc.)
13

Strengthen Our Store Capability
Semi-automatic ordering system for ready made food such as boxed lunch

Sales Trend

3%UP

*1

Time consumption for
Gross profit Trend
daily ordering

2% UP

Down by*1

44 min.

*2

1H: Introduced in approx. 7,500 stores by end August
2H: Plan to cover all stores by end October*1 Comparison of SA coverage categories between SA store and Non-SA stores (Aug. 2015) *2 Comparison before and after SA
14

Copyright (c) 2015 Lawson, Inc. All rights reserved.

Strengthen Store Power
Pre-planned ordering of dried foods, daily items and chilled drinks

Inventory

3% DOWNY/Y *1Gross profit

3.5

% UP

Y/Y *1Out of stock(number of times)

40% DOWNY/Y *2

Recommend the best level of inventory for each store to
avoid opportunity loss without having excess inventory.
*1 Comparison of pre-planned ordering categories excluding cigarette (Aug. 2015) *2 Comparison between Apr 2015 and Aug 2015
15

Copyright (c) 2015 Lawson, Inc. All rights reserved.

Strengthen Support For Franchise Owners
Early shift to new franchise contracts
Improve product offering
through better product ranges
and adequate inventory

Encourage investment
through risk-taking ininventory by FC owners

Sales trend+1.3%
New franchise contracts

New franchise contract stores

HQ pays 50% of electricity bills
HQ pays a portion of food disposal cost
Includes revision of charge rates

Approx. 6,300 (end Aug. 2015)(Up 3,000 stores v. end Feb. 2015)

Copyright (c) 2015 Lawson, Inc. All rights reserved.

16

FY2015: First Half Performance
Recovery in customer visits fuels a turnaround in existing-store sales
102.0%
Customer
客単価
spending

101.9%
Sales
日販

Traffic
客数

100.8%

101.7%
100.8%

99.6%

100.0%

100.4%

99.4%

100.3%

99.6%

99.0%
99.1%
98.2%

98.0%
00.0%

3Q

4Q

FY2014
March – April : Influence from tax hike in Apr. 2014
April: Revised MACHI café café latte prices
Encouraged early shift to new franchise contracts
May: Conducted successful 100 yen rice ball sale

Copyright (c) 2015 Lawson, Inc. All rights reserved.

1Q

2Q

FY2015
June: Celebrated 40th anniversary
Began introducing semi-automatic ordering
July: Launched the “Passionate and Delicious” projectConducted another 100 yen rice ball sale
August: Continued the 100 yen rice ball sale17

LAWSON STORE100 Business
Ongoing restructuring plan
Closed approx. 300 stores through1H
Faster-than-expected recovery achieved bystrengthening fresh produce, and expanding
range of items for 100 yen (excl. sales tax)
Lawson Store100 existing-store sales trend
(%)
102.0
100.0
98.0

Existing-store
sales gain exceeded
100% y/y for the
past five months

96.0
94.0
92.0
00.0

1Q

2Q
3Q
FY2013Copyright (c) 2015 Lawson, Inc. All rights reserved.

4Q

1Q

2Q

3Q
FY2014

4Q

1Q
2Q
FY201518

SEIJO ISHII Business
FY2015 1H (January to June 2015): Operating profit

AmountY/Y change*

2.9+19.0%（8% above target）*compared to before acquisition

billion yen

Synergy benefits for NATURAL LAWSON

More Seijo Ishii products.
Joint product development

Joint procurement ofimported confectionary, etc.

Copyright (c) 2015 Lawson, Inc. All rights reserved.

Share marketing anddisplay improvements

Include in catalogue gifts
19Regional Strategies
Drive growth by strengthening existing stores and opening newstores, joining together with leading local companies to capture
mutual benefits.
Strengthen
existing
storesEverydaysupportOpen new stablequality stores
Home
CVS

SAN-A CO., LTD. （Okinawa)
NANGOKU CORPORATION (Kagoshima）
SUNNY MART CO., LTD. （Kochi）

Healthcare

Maximize local network
Respond attentively and swiftly toindividual community needs
Develop community-focused products

Strive to create happiness and harmony in each local community.
Copyright (c) 2015 Lawson, Inc. All rights reserved.

20

Healthcare Strategy
Help realize a society blessed with health and longevity.
Help support the health and everyday lives of our customers.
Medical care

PMD
acute stage
care

Customers
Nursing care

LAWSON hospital stores
Convenience at hospital

Care service
providerDelivery of medicine

LifestylesupportSelf medication

LAWSON pharmacy storesPrescription
drug
Pharmacy

OTC
medicine

Products forseniors

Daily goods

Care
prevention

Prevention

Consultation
counter

LAWSON care stores

Improved LAWSON
healthcare store
Copyright (c) 2015 Lawson, Inc. All rights reserved.

21

Supply Chain Management
SCI, Inc. expanded to the new category of fast foods ingredients and rice tosignificantly boost volume.
Become more deeply involved in manufacturing and the development of high-quality,
profitable items.
BeforeNow

Tradingcompany

Supplier

Trading Co.

Supplier

LawsonProcessor

Processor

SCI**SCI, Inc. is subsidiary of Lawson., Inc.

Direct Negotiation
Ensure best timing by analyzing raw material
procurement and conditions(market price, exchnage rates)

Ready
-made
food

Package

Copyright (c) 2015 Lawson, Inc. All rights reserved.

BeforeProcure ready-made
items

Now

Ready
-made
food

Packing Wholesale

Heavy involvement fromraw material stage
FY2015FY2014FY2013Categories

Lawson

Ready
-made
food

FF

Rice
Package

LawsonSelectWholesale22

Customer Relationship Management
Boost convenience to capture even more Ponta heavy users.
Ensure more accurate demand forecast in semi-automatic orderingsystem by including new customer purchasing information.
Increase number of frequent users
Ponta members and other customers

Other membership programs

Launch joint “d-point” initiativewith NTT Docomo in
December 2015.
71 million members

Boost usage among existing Ponta members and encourage
new Ponta members.
Strengthen links with other membership programs.
Copyright (c) 2015 Lawson, Inc. All rights reserved.

23

Open Platform Strategy
Provide platform to EC
business partners

Next day delivery (limited areas near Tokyo)
14,000 items (fresh foods and health products)

Support Customers Lifestyle

Provide Business Infrastructure
CDC

Center for EC

Merchandising platform to manage procurement
and manufacturing process
3-temperature distribution center(frozen, chilled, ambient)

Pick upLAWSON stores

SG Lawson

Receive

Take order

Delivery

Cooperative delivery system
Hub station

Deliveryoutsourcing

Platform of ordering, delivery and receiving
Copyright (c) 2015 Lawson, Inc. All rights reserved.

24

Entertainment
The Lawson Group is committed to fulfill entertainment needs ofour customers.
Lawson Ticket

Tickets
Maintain No.1 market share as
Books,
CD
entertainment ticket agency, driven by big magazinesDVDmusic events and amusement park ticket
sales.
1H ticket billing rises 18% YoY to a new
Games Entertainment Goods
record high.

360°

Other instore
goods

UNITED CINEMASHMVStore and E-commerce sales up YoY,
growing its market share.
1H sales up +4% YoY despite
downturn in overall market.

TravelMovies1H operating profit outstrips target at 800 million yen.
Better results of Live Viewing of popular singers and groups and new sensory 4DX cinema systems.
Audience for 1H other than movies was more than quadruple YoY to approximately 200,000.
Lawson in-theatre cinema ads triggered customer visits to LAWSON stores.

Copyright (c) 2015 Lawson, Inc. All rights reserved.

25

Medium-term Roadmap● Targeting 100 billion yen in operating profit and 20% ROE● Maintain capital discipline with emphasis on ROIC
● Boost gross profit● Capitalize on consolidation opportunities

Gross
operating profit

Consolidated
operating profit
100 billion yen

Non-consolidated
LawsonConsolidated
subsidiaries

ROE 20%
Dividend increase/share buy-back andcancellation

Copyright (c) 2015 Lawson, Inc. All rights reserved.

Selling,
general andadministrative
expenses

Existing stores'
gross profit

Net increasein stores
by 5% per year

Industry
consolidation

26

Reference

Copyright (c) 2015 Lawson, Inc. All rights reserved.

27

Existing Stores (Non-Consolidated*)* Sums of ‘LAWSON’ and ’NATURAL LAWSON’±0.0%<FY2015-1H>Gross profit margin
flat YoY

Existing-store sales up 1.2%
(number of customers up 0.7%,
spending per customer up 0.5%)

±0.0%
▲0.2%

▲0.5%

Sales up 1.2% YoY on back of strong ticket and gift card sales, and hot summer weather.
Gross profit margin flat YoY, 0.2pp below plan. Gross margin excluding cigarettes down 0.5pp
YoY and down 0.5pp v. plan due to higher-than-expected café latte sales following price cut,poor sales of drinks, and stronger promotions.
As a result, gross profit at existing stores, which correlates closely to profits at franchise stores,
expanded 1.0% year on year.
Copyright (c) 2015 Lawson, Inc. All rights reserved.

28

Store Openings (Non-Consolidated*)* Sums of ‘LAWSON’ and ’NATURAL LAWSON’(Daily new store
sales in 1,000 yen)

(Net store increase)

460
202

258

New store openings, store closures: Opened 20 more stores and closed 28 more stores thaninitially planned. Net increase in store numbers down 8 stores v. plan as a result. Also changed
19 LAWSON STORE 100 stores (including LAWSON MART) to regular LAWSON stores.
New-store daily sales: Up YoY to 498,000 yen.
FY2012-2015: Opened a consistent 400 new stores, excluding stores converted from otherchains’ brands.
Copyright (c) 2015 Lawson, Inc. All rights reserved.

29

SG&A Expenses: Key Components(Billions of yen)

Selling, general & administrative expenses
Non-consolidated＜Major Expenses＞
Personnel expenses
IT-related expenses(Hardware leasing, software amortization, maintenance, etc.)
Advertising and promotional expenses
Facilities expenses

Consolidated SG&A expenses

FY2015-1H
FY2014-1H
ActualActual Change vs.Plan
113.7
120.7
+6.9
▲ 3.4
18.4
6.9

19.3
4.9

+0.8
▲ 2.0

±0.0
▲ 0.7

Increase 0-5%
Decrease 5-10%

4.0
62.4

5.1
67.1

+1.1
+4.8

▲ 0.7
▲ 0.3

Increase 20-30%
Increase 5-10%

143.8

171.8

+28.0

▲ 3.9

Increase 15-20%

Compared to plan

Compared to H1 FY2014

Copyright (c) 2015 Lawson, Inc. All rights reserved.

3.4 billion yen below plan
A&P: Strong August sales enabled us to keep
costs down.
Others: Below plan on lower costs, expense
reviews.

Group

Group

Business expenses up on new consolidation of
Seijo Ishii and United Cinemas.

ParentParentA&P: Up on aggressive promotions.
Others: Increased HQ expenses as encouraging
existing franchise stores to commit early to new
franchise contract where HQ pays a portion offood disposal and electricity costs.

FY2015
Forecast
Increase 5-10%

3.9 billion yen below plan thanks to lower costs
at parent company, and cost control efforts at
consolidated subsidiaries.
30

Earnings at Major Subsidiaries(Billions of yen)

Operating Profit of Major Subsidiaries
Lawson Mart, Inc.
SEIJO ISHII CO., LTD.
Lawson HMV Entertainment, Inc.
Lawson ATM Networks, Inc.
Chongqing Lawson, Inc.
Shanghai Hualian Lawson, Inc.

FY2015-1H

FY2015

FY-endOwnership

ActualYoY change

Forecast

Feb.
Dec.
Feb.
Feb.
Dec.
Dec.

100.0%
100.0%
100.0%
76.5%
100.0%
94.0%

0.11
2.96
1.70
3.29
▲ 0.45▲ 0.75

+1.09
+0.15
+0.11
▲ 0.07▲ 0.30

0.60
5.10
3.20

5.80
▲ 0.80▲ 0.80Note: Figures in italics indicate revisions to our initial plan.
Note: The operating result of Shanghai Hualian Lawson, Inc. is a sum of operating results of three companies located in Shanghai and surrounding area.

Lawson Mart

Reduced stores by 316 according to revitalization plan. 1H operating loss of 0.3
billion yen as combined operating profit of subsidiary and the business division of
Lawson, Inc. Some of the store closure costs likely to bleed into 2H, so expect
another operating loss in 2H.

SEIJO ISHII

Operating profit exceeded plan. Performance led by strong sales of super foods
such as chia seeds and coconut oil. (January-June consolidated).

Lawson HMC Entertainment

Profit up on strong tickets sales to big events and theme parks, etc. CD and DVD
sales also up YoY.

Lawson ATM Networks

Profit up with new store openings meaning more ATM installations. Downward trend
in ATM usage seems to be easing. ATM operating cost review also contributed.

Copyright (c) 2015 Lawson, Inc. All rights reserved.

31

Capital Expenditure and Cash Flows (Consolidated)
Capital Expenditure（Billions of yen）

FY2014-1H
Actual
21.3
2.9
2.4
0.8
27.5

FY2015-1H
Actual
18.2
2.4
8.7
0.4
29.7

FY2015Plan
53.5

Subtotal for capital expenditure

FY2013-1H
Actual
16.0
3.5
2.4
1.0
23.1

Depreciation and amortization

22.8

19.9

23.8

50.9

New stores
Existing stores
IT-related
Other

6.0
13.0
1.0

73.5

Note: Figures in italics indicate revisions to our initial plan
（Billions of yen）

Cash flows

FY2013-1H
Actual

FY2014-1H
Actual

FY2015-1H
Actual61.7▲ 29.831.9

92.1▲ 38.253.8

92.6▲ 33.2
59.3

Approx. ▲76.0
Approx. 24.0

▲ 19.4▲ 9.9▲ 8.6▲ 10.9▲ 24.1▲ 11.9Approx. ▲45.0▲ 24.2

Cash and cash deposits
86.2
Note: Figures in italics indicate revisions to our initial plan

113.7

112.1

-

Cash flows from operating activities
Cash flows from investing activities

Free cash flows
Cash flows from financing activities(Cash dividends paid)

FY2015
Forecast
Approx. 100.0

IT-related costs up 8.7 billion yen following introduction of semi-automatic ordering system.
Operating cash flow increased temporarily on calendar factors, but came in roughly to plan overall.
Copyright (c) 2015 Lawson, Inc. All rights reserved.

32

Half Year Breakdown of FY2015 Forecast (Consolidated)(Billions of yen)

Net sales for all stores
Operating profit
Operating profit ratio
Recurring profit
Net profit

1H Initial Plan
1,046.0
37.0
3.5%
36.0
18.4

FY2015 Forecast
1H Actual
2H Plan
1,026.5
1,035.4
28.9
42.0
2.8%
4.1%
28.1
40.7
15.3
19.8

Full-Year Plan
2,062.0
71.0
3.4%
68.9
35.2

100.5%
100.5%
31.3%

100.8%
100.9%
31.3%(Non-consolidated)

Gross profit of existing stores (YoY)
Net sales of existing stores (YoY)

Gross profit margin ratio

100.2%
99.5%
31.5%

101.0%
101.2%
31.3%

Note: Figures in italic indicate the revised figures from the initial plan.
Note: Non-consolidated shows total sums of 'LAWSON' and 'NATURAL LAWSON'.

Copyright (c) 2015 Lawson, Inc. All rights reserved.

33

First Half of FY2014 Balance Sheet (Consolidated)

As of Aug. 31, 2015

Total current assets(Cash and deposits)(Accounts receivable)

Total noncurrent assets
Property, plant and equipment
Intangible assets(Goodwill)
Investments and other assets(Long-terms loans receivable)(Guarantee deposits)

Total Assets

263.9
112.2
71.0
565.1
290.1
84.4
47.8
190.6
39.1
92.9
829.1

Copyright (c) 2015 Lawson, Inc. All rights reserved.

(Billions of yen)
Change from
As of Aug. 31, 2015
Feb. 28, 2015

Change fromFeb. 28, 2015

40.3
35.5
12.4
24.2
15.7
4.8
▲ 0.3
3.6
1.9
▲ 0.2
64.5

(Retained earnings)

348.0
124.4
116.3
207.5
58.1
273.6
58.5
155.2

46.9
20.9
12.7
7.7
▲ 0.2
9.8
8.1

Liabilities and net assets

829.1

64.5

Total current liabilities(Accounts payable-trade)(Deposits payable)
Total noncurrent liabilities(Long-term loans payable)

Net Assets(Common stock)34

Cautionary Statement
This presentation contains forward-looking statements and forecasts regarding the future plans, strategies andperformances of Lawson and its subsidiaries and affiliates. These statements and forecasts are not historical facts. They
are expectations based on assumptions and beliefs derived from information currently available to the Company and are
subject to risks and uncertainties including, but not limited to, economic trends, heightened competition in the domestic
convenience store sector, personal consumption, market demand, the tax system and other legislation. As such, actual
results may differ materially from estimates.
Figures in this presentation have been rounded down.
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