Summary of Results for FY2020

Lawson, Inc.
April 9, 2021

Copyright (c) 2021 Lawson, Inc. All rights reserved.

Financial Results for FY2020
Satoshi Nakaniwa
Executive Managing Officer
Chief Financial Officer
Lawson, Inc.
Copyright (c) 2021 Lawson, Inc. All rights reserved.

Consolidated Financial Results for FY2020

Operating income
Main company operations
LawsonSEIJO ISHI
Lawson Entertainment
United Cinemas
Ordinary income
Net income

FY2019Actual62.9

Unit: Billions of yen
FY2020
Actual
YoY
v.plan
-22.0
40.8
+5.8

44.7
9.1
2.3
3.4
56.3
20.1

26.1
11.1
0.6
-0.4
37.6
8.6

-18.5
+1.9
-1.6
-3.9
-18.7
-11.4

+1.1
+0.7
+0.7
+1.9
+7.6
+3.6

Existing store sales (YoY)

100.1%

92.7%- 7.4%pt- 1.8%pt

Gross profit margin

31.3%

31.0%

- 0.3％pt- 0.3%pt

Total no. of stores in Japan

14,444

14,47632-18(Non-consolidated*)*excluding LAWSON STORE100 business*Lawson group total

Note: The differences v. plan in this document are comparisons with the latest plan issued along with the announcement of our first-half financial results in October 2020.
Copyright (c) 2021 Lawson, Inc. All rights reserved.

3

FY2020 Initiatives Review
Unit: Billions of yen

FY2019Consolidated operating
incomeFY2020actualplan

actualv. plan

62.9

35.0

40.8

+5.8
plan

ActualWhile we captured fresh demand by strengthening our range of fresh vegetables, frozen foods, and daily foods during
this period of change in customer lifestyles and purchasing habits, income from charge fees fell short of plan due to theheavy impact of restrictions on people’s movement amid requests to refrain from going out of the house for any nonessential or non-urgent reasons.

-20.0

-24.0

-4.0

Franchise store support

Conducted the planned support for stores that have suffered the heaviest impact from COVID-19 and helped ensure
ample product lineups.

-3.5

-3.5

±0.0

Group subsidiaries

Seijo Ishii: Exceeded plan (+5 v. plan) as we fulfilled increased supermarket demand.
Entertainment-related business: Exceeded plan (+30 v. plan) as more events were held and restrictions on visitor
numbers eased in the second half in addition to the release of hit movies.
International operation: China exceeded plan (+10 v. plan) as sales recovered in an operational environment that had
brought COVID-19 under control early on.

-8.0

-3.5

+4.5

New measures, etc.

In addition to introducing labor-saving measures in our stores, we also strengthened product power at no additional cost.

-1.0

-0.5

+0.5

Cost reduction, etc.

Implemented costs reductions such as reducing food waste, reducing advertising costs by using digital marketing,
reducing travel costs and rents.

+4.5

+9.5

+5.0

-28.0

-22.0

+6.0

Various measures
Charge feesfrom Franchise stores

Initiatives taken and progress madeTotal
*Estimated financial magnitude rounded up to the nearest 0.5 billion yen for simplicity.
Copyright (c) 2021 Lawson, Inc. All rights reserved.

*The differences v. plan in this document are comparisons with the latest plan issued along with the announcement of our first-half financial results in October 2020.

v. plan

4

FY2020 Consolidated Operating Income
Unit: Billions of yen

Approximate figures
Existing-store sales
First half
91.0%
Second half 94.4%
Fiscal year 92.7%

62.9

-24.0
v.Plan -4.0

Charge feesfrom franchise
stores-3.5
As planned

Franchisee
support-3.5
v.Plan +4.5

Group
subsidiaries

FY2019Consolidated
operating income
Copyright (c) 2021 Lawson, Inc. All rights reserved.

+9.5

SEIJO ISHI CO., LTD.
+2.0
Lawson Entertainment, Inc. -1.5
United Cinemas Co., Ltd.
-4.0

v. Plan +5.0

Cost reduction,
etc.

-0.5
v.Plan +0.5

A&P

+4.0
New measures, etc. Disposal losses +2.0
Other
+3.5

*Financial image rounded to the nearest 0.5 billion yen for clearer viewing

40.8
v. Plan +5.8

FY2020Consolidated
operating income

５FY2021 Full-Year Plan
Unit: Billions of yen
FY2021plan

Consolidated operating income

YoY

50.0

+9.1

Lawson32.0+5.8

SEIJO ISHI

11.3

+0.2

Lawson Entertainment

1.3

+0.6

United Cinemas

0.6

-1.1

13.5

+4.8

150 yen±0

Main company operations

Consolidated net income
Dividends per share(Note)・Existing stores sales*1: 105.0% (YoY +12.3%)
・ Gross profit Margin*1 : 31.0%(YoY ±0%P)・ Store number*2 :Store opening 500 Store closure 350*1 Excluding LAWSON STORE100 business
Copyright (c) 2021 Lawson, Inc. All rights reserved.

*2 *Lawson group total

Net store numbers 150

６Factors Affecting FY2021 Consolidated Operating Income+16.0

Full-year plan

Unit: Billions of yen

Charge feesfrom franchise stores

Approximate
figures+2.5
Rebound v. previous
year’s COVID-19
franchisee
support−3.0

Sweeping Transformation
Executive Committee
measures

+3.0
Group
subsidiaries−6.5

Marketing measures,disposal costs, etc.

−3.0

Decline v.
Previous year’s
cost reductions, etc.

40.8

Existing-store sales
First half
+5.0%
Second half +5.0%
Fiscal year
+5.0%

FY2020Consolidated
operating income
Copyright (c) 2021 Lawson, Inc. All rights reserved.

50.0

SEIJO ISHI CO., LTD.
+0.5
Lawson Entertainment, Inc. +0.5
United Cinemas Co., Ltd.
+1.0

*Financial image rounded to the nearest 0.5 billion yen for clearer viewing

FY2021
Consolidated
operating income(Plan)

７

FY2020 Review
Sadanobu Takemasu
President and CEO
Representative Director
Chairman of the Board
Lawson, Inc.
Copyright (c) 2020 Lawson, Inc. All rights reserved.
Copyright (c) 2021 Lawson, Inc. All rights reserved.

LAWSON‘s vision - Sustainable growth The No.1
recommendationfrom all customers
Promise 1
Superior taste• Providing Safety/SecurityOriented OverwhelminglyHigh Value-Added Products
and Services Friendly toSociety and the Environment

Improving franchise
store profits

Promise 2
Human kindness
・Supporting Health Promotion for All
People Through Products and Stores
・Providing Comfortable Work
Environment Leading to Job
Satisfaction
・Supporting Women, Senior People
as well as Children’s Growth

Promise 3
Environmental(machi) friendliness・Coexisting Synergistically with
Communities by Serving as Part ofSocial Infrastructure
・Sustainable Environment Preservation
Activities Toward Carbon-Free Society

Inspire franchise
store work and employees
Copyright (c) 2021 Lawson, Inc. All rights reserved.

9

Comprehensive Initiatives■FY2020: The whole Group united in a bold challenge against COVID-19.
SupportPupils, medical workers, etc.

Challenge

Products for New Normal

Satisfy stay-at-home demand, bulkbuying needs■Strengthen 5 categories■100 Zero Challenge (zero shortages)■Next challenge (improve sales)

Protect

Continued operating withthorough infection protection■Committed social distancing■Preventing droplet infection

Footprints on floor Instruction posters Vinyl partitions
Copyright (c) 2021 Lawson, Inc. All rights reserved.

self checkouts

Expandhome
delivery

Collaborate
withrestaurants

Useentertainment

10Responding to Changing Demand Strengthen products for our renowned desserts and Machikado Kitchen Expand products in five high-demand categories
Announcementof state of
emergency

Authorities request
people to refrain fromall unnecessary,
non-urgent excursions

Fear of prolonged
infection risk

For New Normal(Satisfy stay-at-home demand, bulk-buying needs)
Strengthen our strengths
Desserts

Machikado Kitchen

Copyright (c) 2021 Lawson, Inc. All rights reserved.

Strengthen 5 categories
Fresh food/frozen food/ Daily food/Alcoholic
beverages/Japanese & Western sweets

11

FY2020 -Daily Sales, Visits, APP (YoY) Sales rose gradually from June thanks to continued thorough measures to prevent infectionand efforts to satisfy changing new normal demand.
 Acquired resilience to maintain and improve daily sales/customer numbers even during thesecond state of emergency in January.
EXISTING-STORE SALES

PCR-Positive

First wave

Daily sales

Customer visits

Spendeing per customer

Third wave

Second wave

130 .0 %180 ,0 00

FEB

MAR

APR

MAY

(FY2019) (FY2020) State of Emergency
120 .0 %

JUN

JUL

AUG

SEP

100 Zero
Challenge(zero shortages)

Strengthen
5 categories

113.3%
110.0%

109.7%

107.3%

110 .0 %100.8%

OCT

109.1%
105.8%

105.1%

NOV

DEC

JAN

FEB

State of Emergency

Next challenge(improve sales)
107.8%

110.0%

109.4%

107.2%

120 ,0 00

99.6%

100 ,0 00

96.4%

100 .0 %

98.8%

94.5%

94.2%
88.5%

91.1%

89.8%

91.3%

93.1%

95.3%

94.3%

92.9%

60,00 0

92.3%
85.6%

80.0%

80.7%

84.9%

86.8%

88.0%

88.4%

88.0%

88.1%

40,00 0

84.5%

79.2%

86.1%
Spending per
customer

108.0%

20,00 070.0%

0(Source: PCR-positive, Ministry of Health, Labour and Welfare website)
Copyright (c) 2021 Lawson, Inc. All rights reserved.

Customer visits

80,00 0

90.0%

86.6%

93.0%

140 ,0 00

102.7%

94.8%

Daily sales

160 ,0 00*Includes LAWSON STORE 100

12

FY2020 –Franchise Store Costs & Profits Kept franchise store profits steady YoY with appropriate disposal
losses, proactive purchasing, expanding products to suit new normal
demand and improve daily sales.
FRANCHISE STOREFRANCHISE STORE COSTS
Personnel

First wave

Disposal losses

Utilities

Daily sales

PROFITS

Third wave

Second wave
Next challenge(improve sales)

State of Emergency

Per store

Per Franchise Owner

State of Emergency

100%
100%

100 Zero
Challenge(zero shortages)

Strengthen
5 categories

1Q
MAR

APR

MAY

JUN

Copyright (c) 2021 Lawson, Inc. All rights reserved.

JUL

AUG

SEP

OCT

NOV

DEC

JAN

2Q

3Q

4Q

FEB

13

Environmental Initiatives
 Pursued environment-conscious measures to realize one of our three promises:
Environmental (Machi) friendliness.
V. 2018 levels

V. 2017 levels

2030 target▲50％cut▲30%cut

100％cut

2020 results▲16％cut▲12.4%cut▲74.9％(preliminary)

KPI

Food loss

2018

Initiatives

2025

plastic containers

2030

・Improve order accuracy
・Promote productclearance
・Encourage reservation
food business・Encourage food recycling

Copyright (c) 2021 Lawson, Inc. All rights reserved.

2017

2025

2030

・Change package shape・Substitute environmentconscious materials(paper lunchbox
containers)
・Experimental sales at
Natural Lawson

CO2 emissions per store V.

2013 levels▲30％cut▲27.6％cut

Single-use plastic bags

2020

2025

2030

・30% plant-derived
materials
・Start charging
・Encourage people touse eco bags at thecounter and provide
manuals.

CO2 emissions

2013

2025

2030

・Introduce energy-saving
equipment, switch tosolar-powered devices
and partners withappropriate power supply.
・Promote our 10 energysaving actions

14

Group Company Initiatives ①－Overseas business (China)ー

Existing-store sales recovered after early control of COVID-19.
Achieved first operating profit for China operation overall.
 Largest number among Japanese convenience stores at end December 2020 (3,344 stores at end
February 2021).
 In addition to existing areas (Shanghai, Jiangsu, Zhejiang, Chongqing, Liaoning, Beijing, Tianjin,
Hebei, Hubei, Anhui, Hunan, Hainan), we also expanded coverage by developing new area
franchises and mega franchises.
 Pursing similar initiatives as in Japan such as unmanned night-time convenience stores, delivery
services, mobile app, self-checkouts, etc.
Store Numbers

Daily Sales (YoY)● Achieved profitability
2017 Dalian
2018 Shanghai
2020 Chongqing・Beijing

100%

Over 3000 storesOver 2000 storesOver 1000 sores

Jan

Feb

Mar

Apr
Shanghai

Copyright (c) 2021 Lawson, Inc. All rights reserved.

May

Jun
ChongqingJul

Aug
DalianSep

Oct

Beijing

Nov

Dec

2010

2011
Shanghai

2012

2013

Chongqing

2014
Dalian2015

2016

Beijing

2017
Shenyang

2018

2019

2020

Wuhan/Hefei

15

Group Company Initiatives ② －Entertainment Businessー■Both entertainment-related companies recovered more than planned.
United Cinemas

Lawson Entertainment
 Despite large decline in ticket handling,
managed to maintain sales by expanding
sales of tickets for live online events andthrough our Go to Eat campaign.
 EC sales continued strong thanks to ourstrengthening of product ranges to satisfy
stay-at-home demand and the selling ofgoods linked to cancelled live events.
 Achieved full-year operating profit.
(YoY)

 Sales plummeted on the back of temporarycinema closures in April, May. Entry
restrictions relating to food and drink
continued in June onwards, but we improved
sales by taking an ad hoc approach to eachvenue.
 Cinemagoers increased substantially in second
half thanks to the release of hit movies,
helping to shrink our overall profit decline.
(YoY)

Ticket Sales

Customer Attendance

100%
100%

MAR

APR

MAY

JUN

Copyright (c) 2021 Lawson, Inc. All rights reserved.

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

16

Group Company Initiatives ③

Seijo Ishii

LAWSON STORE 100

Financial Service

Sales grew considerably on
rising supermarket demandand strong original deli items

Captured supermarket demandwith stronger products forcooking at home, achieved
positive operating profit

Strengthened base from which
to expand business partners
and fulfil cashless payment
needs

Sales

2018

2019

2020

New Central Kitchen Facility(Planned FY2022 completion)

Copyright (c) 2021 Lawson, Inc. All rights reserved.

Fruits andvegetables

Meat

fresh
fish

17

FY2020 Consolidated operating results
Unit：Billions of yen

FY2020

FY2021(Results)(Initiatives)

Operating Income

40.8

50.0

Ordinary Income

37.6

45.0

8.6

13.5

Profit■FY2020 Domestic convenience store business
Existing-stores sales * 93.0％
Opening 373／ Closure 341／Total number of store 14,476＊including LAWSON STORE 100
Copyright (c) 2021 Lawson, Inc. All rights reserved.

18

A new kind of convenience
New hubs of refreshment in every community
Copyright (c) 2021 Lawson, Inc. All rights reserved.

Looking Back and Looking Forward
Aim to achieve sustainablegrowth built upon former
investment and growth20202017-2019
Aggressive IT
investment■Next-generation systems■
 Automatic cash-dispensing
POS registers
 New store computers Tablets in all stores
Copyright (c) 2021 Lawson, Inc. All rights reserved.

Franchisee profit-focusedmanagement
HQ takes responsibility
for helping maintainfranchise store profits
Radical change in customer/
society post-Covid values
Lawson Group Sweeping
Transformation Executive
Committee
Launch urgent response to change

2021-2025
New convenience
New hubs of refreshment inevery community

Lawson Group Sweeping
Transformation Executive
Committee
Anticipate new needs
Respond to changing
new normal changes＋

Utilize IT-invested nextgeneration systems

20

ーLawson Group’s Challenge2025ー Overview

2025
50 th anniversary

Customers, society, friends’

No.1 recommended brand

Promise 1
Superior taste

Promise 2
Human kindness

Achieve Group philosophy
Creating happinessandharmony in our communities

Promise 3
Environmental(machi) friendlinessCommitment to SDGs
Work motivation, determined spirit, digital data

Lawson Group Sweeping Transformation Executive Committee
Copyright (c) 2021 Lawson, Inc. All rights reserved.

21

Lawson Group Sweeping Transformation Executive Committee
Currently implementing strategies to become the 2025 Recommended
No.1 brand through the Sweeping Transformation Executive Committee madeup of 12 projects and companywide decarbonization activities.

■Organizational Structure

Committee chair: President Sadanobu Takemasu
Copyright (c) 2021 Lawson, Inc. All rights reserved.

■Main items
１

Create stores where people cometo purposely shop for essential
daily goods that satisfy new
lifestyles and values.

２

Seek to provide new value thathorizontally combines theGroup’s overall strengths.

３

Improve profitability of franchise
stores, HQ, and operatingcompanies by reviewing costs
and striving to increase revenue.

４

Continually reform work
motivating factors for all
franchise store, HQ and Group
company employees.

22Milestones for Each Project
The 12 Projects

FY2021

Kitchens

Introduce into more stores,
renew menu

Product renewal
Transforming
store displays

Lawson Group
Sweeping
Transformation
Executive
Committee

Horizontal FF firms
Pursuit of ideal store
formatArea strategy
reorganization
Customer-centric
supply chain reform

Transforming
profitstructures

Operatingcompanies
Transforming
work
motivation
Copyright (c) 2021 Lawson, Inc. All rights reserved.

Vendor distribution
Unified use of Groupdata
Appropriate cost
council
Individual operatingcompanies
Work motivation
reformGroup branding

Expand daily & frozen foods
Expand daily goods

FY2022~ FY2024

Realize a new
CVS model

・Superior tastes
・Localized stores
・Online medical
Reform store displays, new fittings
service・Digital certification
Post-Covid new store strategy
Expand Machi deli products

Design optimal supply chain

launch new system in 2024

Improve vendor productivity, quality Strengthen profitability
through structural reform of vendors
Infrastructure building

FY2025Make profitable

Realize a newform of convenience

Ensure lean Grouptransformationandsolid profit sources

Control SG&A expenses, improve office productivity

Accelerate China store openings, consider new financial
services, develop post-Covid entertainment strategy, etc.

Growth for all
operation companies

Change evaluation systems,
support challenging spirit
Promote interaction among
Group employees

Improve satisfaction
at working
for Lawson Group

Consider job-specific system,
use remote working
Instill understanding infranchise stores, externally23

Environmental Initiatives
Form environmental vision, set long-term goals,
take on challenges to achieve a low-carbon society in 2050.

2025

2030

50 th anniversary

SDGs targets

Reducing
food waste
Reducing
plastic
Reducing
CO2 emissions

25％
v.2018 levels

Reduce by50％

plastic containers
Reduce by

15％

v.2017 levels

Reduce by100％

Lawson’s original products Eco-friendly materials

Reduce by

30％

Reduce by

30％

CO2 emissions per store
Reduce by15％

Lawson Blue Challenge
2050!

Environmental
visionReduce by

v.2013 levels
Copyright (c) 2021 Lawson, Inc. All rights reserved.

2050

100％

used

Reduce by100％
24Conclusion
In addition to sales, profit indicators, strategically select investment
opportunities from tripartite perspective of the environment, society
and corporate governance in order to achieve sustainable growth.

Challenge 2025
Performance indicators
ROE ：15% or higher
EPS ：500 yen or higher

ESG-focused management

E

S

・Reduce CO2 emissions
・Reduce food waste
・Eliminate plastics

ocial【Results】
FY2018 ROE 9.3% EPS 255yen
FY2019 ROE 7.3% EPS 200yen
FY2020 ROE 3.2% EPS 86yen
Copyright (c) 2021 Lawson, Inc. All rights reserved.

nvironmentGovernance

・Ensure transparent,
・Diversity
equitable management
・Contribute toleast 1/3 outside Board directors
local communities At
Set up a Nomination and・Supply chain
Remuneration Committee comprising
only independent officers
management25

Reference Materials

Copyright (c) 2021 Lawson, Inc. All rights reserved.

Earnings Summary: FY2020 Results
Consolidated

Net sales of convenience store*1
Operating income
Operating income ratio
Ordinary income

FY2019Actual
2,506.9
62.9
2.5%
56.3

FY2020
Actual
YoY
2,349.7-157.2
40.8
-22.0
1.7%
- 0.8%pt
37.6
-18.7

v. Plan
-50.2
+5.8
+7.6

Unit: Billions of yen
FY2021Plan
2,510.0
50.0
2.0%
45.0

Net income

20.1

8.6

-11.4

+3.6

13.5

EPS (Yen)

200.9586.84- 114.11+36.88134.90Total no. of stores in Japan*2
Opening
ClosureNet Increase

14,444
554
769
-215

14,476
373
341
32

+32
-181
-428
-

-18
-27
-9
-18

14,626500
350
150

Existing store sales (YoY)

100.1%

92.7%-7.4%pt-1.8%pt

105.0%

Gross profit at existing stores (YoY)

100.8%

89.4%-11.4%pt-3.3%pt

105.0%

Gross profit margin

31.3%

31.0%

-0.3%pt-0.3%pt

31.0%+0.3%pt+0.1%pt---

Non-consolidated*3

difference excl. cigarette sales (YoY)*1 Total chain store sales (Net sales of all stores) include sales from the convenience store operation in Japan, international operations and sales from Seijo Ishii (consolidated items only).
Regarding Seijo Ishii, only the store sales of directly operation are included.
*2 The number of stores is the total number of convenience stores in Japan operated by the Lawson Group.
*3 Excluding LAWSON STORE100 business*4 Net sales at existing stores (YoY) do not include the impact of tickets, etc.

Copyright (c) 2021 Lawson, Inc. All rights reserved.

27

Key Components of SG&A Expenses
Unit: Billions of yen

FY2019ActualActual

YoY
YoY

311.6

304.4

-7.2

Personnel expenses

46.2

44.8

-1.4

IT-related expenses

12.7

12.0

-0.7

14.1

9.8

-4.3

＜Major Expenses＞

Non-consolidated

Non-consolidated

Selling, general & administrative
expenses

FY2020

A&P: Reduced costs by reviewing promotions andcampaigns depending on COVID-19 impact and byboosting efficiency through the use of quick draws
and other digital marketing.
Sales commission: Reduced head office burden by
cutting food waste at franchise stores.
Other: Controlled rents, personnel, and travel costs.

(Hardware leasing, software amortization,
maintenance, etc.)

Advertising and promotional expenses

19.5

17.8

-1.7

Facilities expenses

174.0

174.4

+0.3

Consolidated SG&A expenses

461.5

436.6

-24.8

Copyright (c) 2021 Lawson, Inc. All rights reserved.

Consolidated

Sales commission

Sales commissions, A & P, etc. declined in line withdecline in revenue or handling totals caused by the
temporary closure of venues or the cancellation of
events due to COVID-19.
Turned some of the labor costs, rents, etc. toextraordinary losses as COVID-19 related losses.

28

Segment profit
Unit: Billions of yen

FY2020
ActualYoY

Domestic convenience store business

28.7

-18.3

Seijo Ishii business

10.3

+1.9

Entertainment-related business

-0.2

-5.6

Financial services business

1.7

Profit rose on the 6.6% YoY rise in existing-store sales thanks tostrong sales of fresh food items primarily in roadside stores in thewake of rising supermarket demand and strong contribution to
overall sales by original deli items.
Profit down on lower ticket sales commission in the wake of event
cancellations or restricted entry to large-scale events, and lower
revenue due to temporary cinema closures and restricted visitor
numbers during state of emergency periods-1.3

ATM usage down on the back of declining customer visits to Lawson
stores. Worked on building credit card, ATM charge, and other new
businesses.
Profit improved at our China operation thanks to an early recovery insales after COVID-19 was brought under control and an increase intotal store numbers.

Overseas business

0.8

+1.8

Other business

-0.4

-0.5

Total

40.8

-22.0

Copyright (c) 2021 Lawson, Inc. All rights reserved.

Charge fees declined in line with falling revenue. Provided support to
low-profit franchise stores. Reduced food waste, A&P, and otherexpenses.

29

Consolidated Capital Expenditures & Cash Flows● Consolidated Capital Expenditures● Consolidated Cash Flows

Unit: Billions of yen

FY2019Actual24.0

FY2020
Actual
11.3

Existing stores

10.1

9.8

IT-related

10.9

8.4

Other
Subtotal for capital
expenditure

0.7

0.8

45.9

30.5

New stores

LeasesDepreciation andamortization

42.5

Unit: Billions of yen

Cash flows fromoperating activities
Cash flows frominvesting activities
Free cash flows
Cash flows fromfinancing activities(Cash dividends paid)

25.6

Cash and cash deposits*•

79.1

Copyright (c) 2021 Lawson, Inc. All rights reserved.

80.7

FY2019ActualFY2020
Actual

202.7

227.9

-49.0

-29.9

153.6

197.9

-163.9-140.6

-20.2

-15.0

343.5

401.1

The difference between cash and deposits on the consolidated balance sheet is due to the amount of time
deposits for which the deposit period exceeds three months.

30

Consolidated Balance Sheet at the end of FY2020
Unit: Billions of yen

As of Feb. As of Feb.
29, 2019 28, 2021
Total current assets

As of Feb. As of Feb.
29, 2019 28, 2021

YoY

636.6

690.8

+54.1

Cash and deposits*1

343.5

402.5

+58.9

Accounts receivable

159.1

161.0

Total noncurrent assets

721.0

Property, plant and equipment
Intangible assets

561.9

767.7

+205.7

Accounts payable-trade

129.3

127.4

-1.9

+1.9

Short-term loans payable*2

39.8

42.3

+2.4

674.6

-46.4

Current portion of long-term loans
payable*2

-

100.0

+100.0

392.9

367.6

-25.2

Deposits payable

193.0

246.1

+53.0

97.0

86.4

-10.6

520.4

324.7

-195.6

Software

45.1

39.0

-6.0

310.0

130.0

-180.0Goodwill

42.3

38.2

-4.1

Total liabilities

1,082.3

1,092.4+10.1

Investments and other assets

231.0

220.5

-10.4

Net Assets

275.3

272.9

-2.4

Long-terms loans receivable

42.4

40.6

-1.8

Common stock

58.5

58.5

±0.0

Guatantee deposits

107.1

103.0

-4.1

Retained earnings

165.0

158.4

-6.5

1,357.7

1,365.4+7.6

Liabilities and net assets

1,357.7

1,365.4+7.6

Total Assets

Total current liabilities

YoY

Total noncurrent liabilities
Long-term loans payable*1 The amount of cash and deposits for financial services business as of February 28, 2021 is 372.2 billions of yen, most of which is used for refilling ATMs.
*2 The amount of loans payable for financial services business as of February 28, 2021 is 182.7 billions of yen.

Copyright (c) 2021 Lawson, Inc. All rights reserved.

31

Cautionary Statement
This presentation contains forward-looking statements and forecasts regarding the future plans, strategies and performances of
Lawson and its subsidiaries and affiliates. These statements and forecasts are not historical facts. They are expectations based onassumptions 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.
Copyright (c) 2021 Lawson, Inc. All rights reserved.