Flash Report on the Consolidated Financial Results
for the Fiscal Year Ended February 29, 2020
April 9, 2020
Listed Company Name: Lawson, Inc.
Tokyo Stock Exchange (First Section)
Code No.: 2651
(URL http://www.lawson.jp/en/ir)
Company Representative: Sadanobu Takemasu, President and CEO, Representative Director,
Chairman of the Board
Contact: Tomoki Takanishi, Deputy Senior Vice President, Financial Administration Division Director
Tel.: +81-3-5435-2773
Scheduled date for the ordinary general meeting of shareholders: May 27, 2020
Scheduled date for submission of annual securities report: May 28, 2020
Scheduled date for payment of dividend: May 28, 2020
Supplementary materials for annual financial results: Yes
Holding of presentation of annual results: Yes (for institutional investors and analysts)(Amounts less than one million yen are truncated)
1. Consolidated operating results for 2019 fiscal year (from March 1, 2019 to February 29, 2020)(1) Consolidated operating results (cumulative)
Note: Percentages represent increases (decreases) compared with the previous fiscal year.

For the fiscal year ended
February 29, 2020
February 28, 2019
Note: Comprehensive income:For the fiscal year ended
February 29, 2020
February 28, 2019

Gross operating
revenue

Operating income

Millionsof yen730,236
700,647

Millionsof yen62,94360,781%
4.2
6.6

Profitattributable toowners of parent
Millions%%of yen(2.3) 20,108(21.4)(11.4) 25,585(4.6)

Ordinary income

Millionsof yen3.6
56,346(7.7) 57,700%

Fiscal year ended February 29, 2020
Fiscal year ended February 28, 201917,586 million yen
26,173 million yen

Profit per
share

Diluted profit
per share

Return on
equityRatio of ordinary
income to total
assetsYen
200.95255.71

Yen
200.84255.59

%
7.3
9.3

%
4.2
5.1

Reference: Share of profit of entities accounted for using equity method:
Fiscal year ended February 29, 2020
Fiscal year ended February 28, 2019(32.8)%(9.5)%

Ratio ofoperating income togross operating
revenue%
8.6
8.7

571 million yen
320 million yen(2) Consolidated financial position

Millions of yen

Shareholders’equity ratio%

Net assets per
share
Yen

1,357,732

275,34720.0

2,707.08

1,342,329

281,98220.6

2,763.54

Total assets

Net assets

Millions of yen

February 29, 2020
February 28, 2019

As of

Reference: Shareholders’ equity:

As of February 29, 2020
As of February 28, 2019

270,877 million yen
276,514 million yen

Note: Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28; February
16, 2018), etc. have been applied from the beginning of the fiscal year ended February 29, 2020 in preparing theconsolidated financial statements. The standards have been retrospectively applied to the consolidated financial
statements for the previous fiscal year.

(3) Consolidated cash flows

For the fiscal year ended
February 29, 2020
February 28, 2019

Net cash providedby (used in)operating activities
Millions of yen
202,703
128,594

Net cash providedby (used in)investing activities
Millions of yen(49,074)(81,017)

Net cash providedby (used in)financing activities
Millions of yen(163,910)
277,937

Cash and cash
equivalents at
end of period
Millions of yen
343,583
354,236

2. Dividends
Annual dividends per share2018 fiscal year

1Q

1H

3Q

Year-end

Total

Yen

Yen

Yen

Yen

Yen

－

127.50－127.50

255.00Total
dividends
for the year
Millions ofyen
25,514

Payoutratio

Ratio ofdividends toshareholders’equity

%

%

99.7

9.2

2019 fiscal year
－
75.00
－
75.00
150.0015,00974.6
2020 fiscal year
－
－
－
－
－
－
(forecast)
Note: Forecast of dividends for the fiscal year ending February 2021 is undetermined at this point.

5.5

3. Forecast of consolidated operating results for 2020 fiscal year (from March 1, 2020 to February 28, 2021)
The global spread of the novel coronavirus is having a considerable impact on the domestic and overseas
business environment surrounding the Lawson Group. The Group is engaged in diverse business fields within
and outside Japan, making it difficult to make a reasonable projection of its financial performance at this point.
Therefore, the forecast of the Group’s consolidated financial performance for the fiscal year ending February
2021 remains undetermined at this point.
Once it becomes possible to determine the forecast, it will be announced promptly.
4. Notes(1) Change in significant subsidiaries during the fiscal year (Changes in certain specified subsidiaries resulting
in changes in scope of consolidation): None
Added: None

Excluded: None

(2) Changes in accounting policies, changes in accounting estimates or restatements
1. Changes in accounting policies associated with revision in accounting standards: Yes
2. Changes in accounting policies other than 1. above: None
3. Changes in accounting estimates: None
4. Retrospective restatements: None
(3) Number of shares outstanding (common stock)
1. Number of shares outstanding at the end of year (including treasury shares)
As of February 29, 2020:
100,300,000
As of February 28, 2019:100,300,000

2. Number of treasury shares at the end of year
As of February 29, 2020:
237,762

As of February 28, 2019:

241,897

3. Average number of shares during the year
As of February 29, 2020:
100,061,451

As of February 28, 2019:

100,057,042

Reference: Non-consolidated operating results for 2019 fiscal year (from March 1, 2019 to February 29, 2020)
Non-consolidated operating results (cumulative)
Note: Percentages represent increases (decreases) compared with the previous fiscal year.

Gross operating
revenue

Operating income

Millions
Millions
Millions%%of yenof yenof yenFebruary 29, 2020
390,811
1.3
44,725(2.2) 45,962
February 28, 2019385,678
3.4
45,711(10.4) 51,443
Note: The Flash Report on the Consolidated Financial Results is not subject to audit.
For the fiscal year ended

Profitattributable toowners of parent
Millions%%of yen(10.7) 15,486(50.0)
1.9 31,002
59.7

Ordinary income

Note: Descriptions on appropriate use of financial performance forecasts and other special notes
Forward-looking statements presented herein such as financial forecasts are based on currently available
information and certain presumptions deemed to be reasonable as of the date of announcement. The achievementof said forecasts cannot be guaranteed. Actual results may be materially different from those in the forecast as aresult of various factors. For preconditions of these financial forecasts and notes concerning their use, pleaserefer to “1.Overview of Operating Results, (4) Future Outlook” on page 10.

Contents

1. Overview of Operating Results ..............................................................................................................

2(1) Overview of Operating Results for the Fiscal Year under Review ..................................................

2(2) Profit and Loss .................................................................................................................................

9(3) Overview of Financial Position for the Fiscal Year under Review ..................................................

9(4) Future Outlook .................................................................................................................................
2. Basic Approach to Selection of Accounting Standards ..........................................................................

10

3. Consolidated Financial Statements and Main Notes ..............................................................................

11(1) Consolidated Balance Sheet .............................................................................................................

11(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ..........

13

Consolidated Statement of Income ...................................................................................................

13

Consolidated Statement of Comprehensive Income .........................................................................

14(3) Consolidated Statement of Changes in Equity .................................................................................

15(4) Consolidated Statement of Cash Flows ............................................................................................

17(5) Notes to Consolidated Financial Statements ....................................................................................

19(Going Concern Assumption) ...........................................................................................................

19(Accounting Policies for the Preparation of Consolidated Financial Statements) ............................

19(Changes in Accounting Policies) .............................................................................................................................

22(Unapplied Accounting Standards, etc.) .................................................................................................................

22(Changes in Presentation) .................................................................................................................

23(Notes to Consolidated Balance Sheet) ............................................................................................

24(Notes to Consolidated Statement of Income) ..................................................................................

25(Notes to Consolidated Statement of Comprehensive Income) ........................................................

27(Notes to Consolidated Statement of Changes in Equity) ................................................................

28(Notes to Consolidated Statement of Cash Flows) ...........................................................................

30(Segment Information) .....................................................................................................................

31(Per Share Information) ....................................................................................................................

37(Significant Subsequent Events) .......................................................................................................

37

1

10

1. Overview of Operating Results(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year under review, or fiscal 2019 ended February 29, 2020, changes in society’s needs
resulting from an aging population, the prevalence of the nuclear family, the increasing number of working
women, and the heightening awareness of healthy lifestyles are serving as a tailwind for the convenience
store industry. Meanwhile, competition is intensifying across sector lines and circumstances surrounding
franchise stores are also becoming increasingly challenging due to a labor shortage and rising personnel
expenses. Given such a business environment, we have made efforts to raise store productivity by making
maximum use of digital technology. Specifically, since 2015, we have been introducing a semi-automaticordering system and new point-of-sale (POS) cash registers equipped with an automatic change dispenser
function.
In April 2019, we formulated an action plan to reinforce our relationship with franchise stores and provide
stronger support for them and announced our progress in November. Furthermore, we announced in February2020 new short-, medium- and long-term initiatives to enhance the financial stability of our franchise stores,
including supporting low-profit franchise store owners in operating multiple stores, helping develop store
managers, and measures for new franchise owners. We will continue strengthening our partnerships with ourfranchise stores.
Due to the recent spread of the new coronavirus (COVID-19), changes have been observed in the sales ofsome merchandise as well as trends in customer visits. However, the impact of such changes on our financial
results for the fiscal year under review was insignificant.
Furthermore, we also focused on improving our group-wide internal control system and addressing
operating risks based on the 2019 Basic Policy for Improvement of Internal Control Systems. We willcontinue promoting internal control going forward.
Operating results by business segment were as follows:(Domestic Convenience Store Business)
In our convenience store business, we are striving to establish LAWSON stores as convenience stores
endorsed by all our customers. To this end, we are implementing measures to achieve our three commitments,
namely, to pursue compelling taste, to be considerate to people, and to be environmentally friendly. Bydeveloping distinctive products that are compellingly delicious and health-conscious, we are aiming to further
reinforce our product lineup, while rigorously working to offer thoughtful customer service at our stores andensure environmental friendliness by reducing food waste and the use of plastics.
The consumption tax rate was raised in Japan from 8% to 10% on October 1, 2019, although certain items
are subject to a reduced rate. At LAWSON stores, reduced tax rates are applied to food and beverage items,
excluding those consumed within their eat-in areas, and alcoholic beverages. In addition, as part of theJapanese government’s support scheme to alleviate the impact of the tax hike, customers making cashless
payments at applicable LAWSON stores receive a 2% refund on their payment amount.

2

[Store Operations]
In store operations, we continued to focus on reinforcing adherence to the Three Essential Practices, whichemphasizes (1) serving customers courteously; (2) offering a merchandise assortment focused on basic itemswith high demand; and (3) keeping our stores and communities clean. During the current fiscal year, we aretaking decisive steps to improve store operations and strengthen franchise support by headquarters.
With regard to our initiative to introduce self-checkout machines by leveraging the self-checkout functionof the POS cash registers installed at all stores during the previous fiscal year, we will continue to introduce
the machines at more stores. In January 2020, we temporarily closed 102 franchise stores nationwide during
the New Year holidays as part of an experimental trial. Based on the results, we will discuss our initiatives
for the next fiscal year.
[Merchandising and Service Strategies]
On the merchandise side, we focused on new product development and quality enhancement of our existingproducts with the aim of achieving compellingly superior taste. In the rice range, our new “Kinshari Onigiri
Rice Ball” series featuring distinct and plump grains of rice, which was launched in April 2019, was hugely
popular, and our “Akuma-no-onigiri” (meaning “devil’s rice ball”) series, now an iconic LAWSON product,
also recorded solid sales. In the processed bread range, we revamped our sandwich range and captured a new
type of meal demand by launching the new “SAND FULL” series, which resulted in continuous strong sales.
In the counter fast food range, our revamped “L-Chiki” (fried chicken) series as well as standard and newseasonal products offered at “MACHI café” enjoyed popularity.
In our dessert range, “BASCHEE” (Basque-style cheesecake) launched in March 2019 was received withgreat popularity, and hit products were also successively released from the “Uchi Café” dessert range,
resulting in Lawson’s desserts garnering considerable attention. In the bakery products range, we launched,in March 2019, our “Machinopan” (meaning “town bakery”) series featuring meticulously selected basic
ingredients and sophisticated production methods in a quest to offer items with exquisite texture and delicious
fillings, while also revamping our existing standard products, which resulted in ongoing strong sales.
On the sales promotion side, we rolled out stamp campaigns and implemented effective measures to attract
customers, including a smartphone stamp rally and the Wakuwaku speed lottery, by capitalizing on ourstrength in the entertainment field.
[Breakdown of Sales by Merchandise Category at Chain Stores in Domestic Convenience Store Business]
Fiscal year
Previous fiscal year
Current fiscal year
From March 1, 2018
From March 1, 2019
to February 28, 2019
to February 29, 2020
YoY (%)
Sales
Percentage
Sales
Percentage
Product group(Millions of yen) of total (%)(Millions of yen)of total (%)
Processed foods
1,202,619
52.6
1,237,391
52.8
102.9
Fast foods

544,53023.8

546,542

23.3

100.4

Daily delivered foods

329,54514.4

351,442

15.0

106.6

Nonfood products

208,6129.2

209,624

8.9

100.5

2,285,308

100.0

2,345,000

100.0

102.6

Total

(Note) These figures include stores operated by both Lawson, Inc. and Lawson Sanin, Inc.

3

[Store Development]
In opening new stores, the Group continued to focus on developing profitable stores.
During the fiscal year under review, the total number of LAWSON, NATURAL LAWSON and LAWSONSTORE100 stores opened in Japan stood at 554 stores. Meanwhile, we closed a total of 769 such stores in the
country as a result of shutting down stores with low earnings and for other reasons. As of the end of February
2020, the total number of domestic stores was 14,444.*
In an effort to establish convenience store models catered to an aging population and a trend toward selftreatment, we are building partnerships with dispensing pharmacy and drug store chains to operate healthcareoriented LAWSON stores that offer over-the-counter pharmaceuticals and prescription drugs, as well as awider assortment of cosmetics and daily necessities than conventional LAWSON stores. The number of stores
offering non-prescription drugs has reached 222 stores (includes 49 pharmacy LAWSON stores equippedwith drug-dispensing pharmacies) as of the end of February 2020. Moreover, the number of stores offering
nursing care consultation services has reached 24 as of the end of February 2020. Furthermore, we have also
been expanding our chain of “in-hospital LAWSON stores,” which feature strengthened focus on medical,
sanitary, nursing and rehabilitation supplies in addition to merchandise and services offered at standard
convenience stores. The number of such stores has reached 323 as of the end of February 2020. Building on
our expertise developed through operation of in-hospital LAWSON stores, we will continue to support the
lives of all people interacting with hospitals.
With the aim of supporting our customers’ beauty, health, and comfortable lifestyles, our NATURALLAWSON stores offer an exclusive assortment of items including original products adopting selectingredients as well as products produced in collaboration with renowned brand names. Meanwhile, our
LAWSON STORE100 meets customers’ needs with a wide-ranging assortment of products sold at the valuefor-money price of 100 yen, including fresh fruit and vegetables, daily delivered fresh foods, prepared dishes,
beverages, and daily necessities. As of the end of February 2020, we operate 145 NATURAL LAWSON storesand 742 LAWSON STORE100 stores.
* The numbers of store openings and closings and total number of stores in Japan include stores operatedby Lawson, Inc., subsidiary Lawson Sanin, Inc. and three equity-method affiliates, Lawson Kochi, Inc.,
Lawson Minamikyushu, Inc. and Lawson Okinawa, Inc.
[Change in the Total Number of Domestic Stores]
Total stores as ofFebruary 28, 2019
LAWSON
13,714
NATURAL LAWSON139
LAWSON STORE100
806
Total
14,6594

Change during period
(157)
6
(64)
(215)

Total stores as ofFebruary 29, 2020
13,557145
742
14,444

[Number of LAWSON stores by prefecture (As of February 29, 2020)]
NumberNumberPrefecture
Prefecture
Prefectureof storesof stores
673
223 Kyoto
Hokkaido
Ibaraki
270
1,715 Shiga
AomoriTokyo

Numberof stores
322

Prefecture
Ehime

Numberof stores
211

156

Tokushima

136

Akita

185

Kanagawa

1,088

Nara

138

Kochi

139

Iwate

175

Shizuoka

285

Wakayama

148

Fukuoka

517

Miyagi252

Yamanashi

135

Osaka

1,123

Saga

74

Yamagata

114

Nagano

172

Hyogo

666

Nagasaki

111

Fukushima

162

Aichi

723

Okayama

202

Oita

188

Niigata

225

Gifu

180

Hiroshima

235

Kumamoto

159

Tochigi

199

Mie

138

Yamaguchi

116

Miyazaki

104

Gunma

243

Ishikawa

105

Tottori

139

Kagoshima

195

689

Toyama185

Shimane239
Okinawa
603
110
132 Total
14,444
Chiba
Fukui
Kagawa(domestic)(Note) These figures include stores operated by Lawson, Inc., subsidiary Lawson Sanin, Inc. and equitymethod affiliates, Lawson Kochi, Inc., Lawson Minamikyushu, Inc. and Lawson Okinawa, Inc.
Saitama145[Other]On December 16, 2019, Lawson, Inc. concluded a capital business partnership agreement with KDDI
Corporation to promote data marketing utilizing the customer bases of both companies and create newconsumption experiences through the application of advanced technologies. Based on this partnership,
Lawson and KDDI will combine KDDI’s advanced technologies including 5G, the fifth-generation mobile
communication system, with Lawson’s 14,000-plus-strong real-store infrastructure to develop nextgeneration convenience store services involving data and financial offerings to create new consumption
experiences for customers.
In February 2020, we commenced a pilot experiment involving checkout-free store service at the Lawson
Fujitsu Shinkawasaki TS Store. By leveraging digital technology, the Lawson store allows customers to shop
without the need to pay at a cash register.
As a result, Domestic Convenience Store Business posted gross operating revenue of 471,551 million yen(up 0.6% from previous fiscal year) and segment profit of 47,121 million yen (down 2.4% from previous
fiscal year).
(Seijo Ishii Business)
At stores of Seijo Ishii, a high-end supermarket chain offering quality foods, we provide our customers
with well-selected, safe, and reliable foods. The number of directly operated Seijo Ishii stores reached 154 asof the end of February 2020. Seijo Ishii’s original quality prepared food continued to be supported by manycustomers, contributing to steady sales. By continuing to leverage the company’s strengths including its
product development expertise, know-how acquired as a manufacturing retailer, and retailing techniques, wewill endeavor to enhance the brand capacity of Seijo Ishii.
As a result, Seijo Ishii Business posted gross operating revenue of 93,119 million yen (up 7.4% fromprevious fiscal year) and segment profit of 8,348 million yen (up 12.6% from previous fiscal year).

5

(Entertainment-related Business)
With regard to our Entertainment-related Business, the ticketing business of Lawson Entertainment, Inc.,
which forms the core of the business, continued to secure top-class transaction value in the ticketing industry.
In our product sales business, as of the end of February 2020, we operate 56 stores, mainly comprised of
HMV stores dedicated to selling music and video software nationwide, as well as HMV&BOOKS, whichmarkets books, CDs, and DVDs, and HMV record shop stores specializing in analog records.
As of the end of February 2020, United Cinemas Co., Ltd., an operator of cinema complexes, operates
cinema theaters at 43 sites nationwide, offering 389 screens including those operated on commission.
As a result, Entertainment-related Business posted gross operating revenue of 85,346 million yen (up 9.3%
from previous fiscal year) and segment profit of 5,313 million yen (up 18.1% from previous fiscal year).
(Financial Services Business)
With respect to our Financial Services Business, in our ATM business, the foundation of our banking
business, we expanded our network of financial institution partners, while working to expand the ATM serviceof Lawson Bank, Inc.
Lawson Bank, Inc. issues LAWSON Ponta Plus credit cards, which allow cardholders to collect extra Ponta
points when used at LAWSON, NATURAL LAWSON, or LAWSON STORE100 stores as well as whencertain usage conditions are achieved. As a result of such expanded services, credit card membership is seeing
steady growth.
As of the end of February 2020, the number of ATMs installed nationwide reached 13,353 (down 106 fromprevious fiscal year), with each ATM used 47.5 times a day on average. The total number of our financial
institution partners increased to 124 nationwide (up 13 from previous fiscal year), including online banks.
As a result, Financial Services Business posted gross operating revenue of 34,089 million yen (up 11.5%
from previous fiscal year) and segment profit of 3,088 million yen (up 38.9% from previous fiscal year).
(Other Business)
In addition to the aforementioned businesses, the Group is also involved in the Overseas Business.
With regards to Overseas Business, the Group’s operating companies opened LAWSON stores in the
People’s Republic of China, Thailand, Indonesia, the Philippines, and the United States of America (Hawaii).
In the People’s Republic of China, we have expanded mainly into Shanghai, as well as into Chongqing,
Dalian, Beijing, Wuhan, Hefei, Changsha, Shenyang, and other cities. The number of LAWSON stores in theentire country reached 2,646 as of the end of February 2020.

6

[Distribution of LAWSON Brand Stores Overseas by Region]
Number of stores
Country/Region(As of February 28,
2019)

Changeduring fiscal
year

Number of stores(As of February 29,
2020)

1,227

347

1,574

China Chongqing

198

37

235

China Dalian

146

46

192

China Beijing and surrounding area

108

45

153

China Shenyang

－

26

26

China Wuhan

308

93

401

China Hefei

20

30

50

China Changsha

－

15

15

Thailand

120

13

133

Indonesia

42

30

72

Philippines

39

26

65

United States of America Hawaii

2

－

2

2,210

708

2,918

China Shanghai and surrounding area

Total

As a result, Other Business posted gross operating revenue of 57,275 million yen (up 26.1% from previous
fiscal year) and segment loss of 929 million yen (down 42.6% from previous fiscal year).
(Measures to pursue Sustainable Development Goals (SDGs))
With the aim of achieving a sustainable society through Lawson’s business activities based on our
corporate philosophy, “Creating Happiness and Harmony in Our Communities,” we established the SDGs
Committee effective March 1, 2019. Based on our belief that striving to fulfill our “Three Promises” will
likewise ultimately promote SDGs, we are making Group-wide efforts led by our SDGs Committee to conductindividual initiatives that solve social issues through our business activities.
Specifically, we identified issues having significant impacts on the environment, society and economy
across our business activities including our value chains, selected specific issues that significantly impact
society and the Lawson Group, and identified the social issues that should be prioritized. We then linked
Lawson’s initiatives to the identified social issues, and determined our six material issues (materiality).
“6 Material Issues”
1. Providing safety/security-oriented overwhelmingly high value-added products and services friendly tosociety and the environment
2. Supporting health promotion for all people through products and stores
3. Providing comfortable work environment leading to job satisfaction
4. Supporting women, senior people as well as children’s growth
5. Coexisting synergistically with communities by serving as part of social infrastructure
6. Sustainable environment preservation activities toward carbon-free society

7

We are especially making focused efforts on addressing our sixth material issue, “sustainable environment
preservation activities toward carbon-free society, by setting social and environmental key performanceindicators (KPIs) as Goals for 2030 in three areas: (1) reducing food waste; (2) reducing plastic use (forcontainers, packaging and shopping bags); and (3) reducing CO2 emissions. Furthermore, toward Lawson’s
Vision 2050, we are taking on difficult challenges to achieve high goals so that we can create a carbon-freesociety and contribute more to the ideal world that the SDGs aim to realize. To fulfill Lawson’s Vision 2050,
we are looking back on what we have done so far and examining and discussing what we should do now tosteadily proceed with our material issues and KPIs for 2030.
Issues

KPIs for 2030

KPIs for 2050

Reducing food waste

Reduce by 50% over 2018

Reduce by 100%

Reducing plastic use(for containers and packaging)

Reduce by 30% over 2017(50% of materials used for
Lawson’s original productcontainers and packaging areeco-friendly)(100% of materials used for
Lawson’s original productcontainers and packaging areeco-friendly)

Reducing plastic use（Plastic shopping bags）

Plastic shopping bags
Reduce by 100% over 2017―

Reducing CO2 emissions

Reduce by 30% over 2013

Reduce by 100%

To reduce food waste, for a period of 82 days from June 11 to August 31, 2019, we performed a food waste
reduction experiment dubbed “Another Choice” at a total of 452 Lawson stores as of the end of August 2019(216 stores in Ehime Prefecture and 236 in Okinawa Prefecture). Based on this experimental program,
Lawson donated a total of 8,290,838 yen (3,254,673 yen in Ehime and 5,036,165 yen in Okinawa) to help
provide meals for children during summer vacation.
To reduce plastic use, we started replacing the S-sized plastic cups used for iced coffee offered at “MACHIcafé” with paper cups and adopting lids with openings to eliminate the need for straws. Through such efforts,
the amount of plastic used per cup is expected to be reduced by approximately 80%.
As it will become mandatory for retailers nationwide to charge fees for plastic bags from July 1, 2020, weare in the process of deciding on the specifications and price of our plastic bags and discussing related
operations.
To prevent global warming and reduce electricity consumption, we have been installing chlorofluorocarbon
CFC-free (CO2 refrigerant) refrigerator/freezer systems. The number of stores equipped with such systems
reached approximately 3,700 as of the end of February 2020, up 300 stores from the end of the previous fiscal
year.
We also continued with our scholarship program for children from single-parent families, selecting 400
students to whom we provided scholarships in fiscal 2019. In addition, donations were collected for victims
of typhoons Faxai and Hagibis, as well as for the reconstruction of Shuri Castle in Okinawa Prefecture, which
had been destroyed in a fire, by placing fundraising boxes and accepting donations of reward points at Lawson
Group stores in Okinawa.
As a member of society, we will continue to contribute to the promotion of SDGs through our measures toaddress social and environmental issues together with franchise stores, customers and business partners.
8(2) Profit and Loss
In terms of operating results for the fiscal year, gross operating revenue increased to 730,236 million yen(up 4.2% from previous fiscal year), operating income totaled 62,943 million yen (up 3.6% from previous
fiscal year), and ordinary income amounted to 56,346 million yen (down 2.3% from previous fiscal year).
Profit attributable to owners of parent was 20,108 million yen (down 21.4% from previous fiscal year).
(3) Overview of Financial Position for the Fiscal Year under Review① Total assets, total liabilities, total net assets analysis
Current assets increased by 17,093 million yen from the end of the previous fiscal year to 636,697 million
yen, mainly reflecting an increase of 38,152 million yen in accounts receivable-other and a decrease of 10,652
million yen in cash and deposits. Non-current assets decreased by 1,690 million yen from the end of theprevious fiscal year to 721,035 million yen, mainly reflecting an increase of 10,638 million yen in property
and store equipment, a decrease of 9,608 million yen in intangible assets and a decrease of 2,720 million yen
in investments and other assets such as investment securities. Consequently, total assets increased by 15,402
million yen from the end of the previous fiscal year to 1,357,732 million yen.
Current liabilities decreased by 36,559 million yen from the end of the previous fiscal year to 561,963
million yen, mainly reflecting a decrease of 86,750 million yen in short-term loans payable, a decrease of
50,000 million yen in current portion of long-term loans payable and an increase of 61,291 million yen indeposits received. Non-current liabilities increased by 58,597 million yen from the end of the previous fiscal
year to 520,421 million yen, mainly reflecting an increase of 50,000 million yen in long-term loans payable.
Consequently, total liabilities increased by 22,037 million yen from the end of the previous fiscal year to
1,082,385 million yen.
Net assets decreased by 6,634 million yen from the end of the previous fiscal year to 275,347 million yen,mainly reflecting a decrease of 2,379 million yen in capital surplus and a decrease of 1,852 million yen invaluation difference on available-for-sale securities. Consequently, shareholders’ equity ratio was 20.0%,
down from 20.6% as of the end of the previous fiscal year.
Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28; February
16, 2018), etc. have been applied from the beginning of the fiscal year ending February 29, 2020 in preparing
the consolidated financial statements. Related information regarding the consolidated financial position at theend of the fiscal year was calculated based on an analysis in comparison with the consolidated financial
statements for the previous fiscal year after retrospectively applying the standards.
② Cash flows during fiscal year 2019

Cash and cash equivalents at February 29, 2020 decreased by 10,652 million yen from the end of theprevious fiscal year to 343,583 million yen.
Net cash provided by operating activities was 202,703 million yen, an increase of 74,108 million yen fromthe previous fiscal year, mainly because of an increase (decrease) in accounts payable-other, an increase(decrease) in deposits received, a net decrease (increase) in call loans for banking business and a net increase(decrease) in call money for banking business.
Net cash used in investing activities was (49,074) million yen, a decrease of 31,943 million yen from theprevious fiscal year, mainly because of a decrease in purchase of property and store equipment and purchaseof intangible assets.
Net cash used by financing activities was (163,910) million yen, a decrease of 441,848 million yen fromthe previous fiscal year, mainly because of a decrease in proceeds from long-term loans payable and adecrease in short-term loans payable.
9(Reference) Trends in cash flow indicators
2017 fiscal year2018 fiscal year

2019 fiscal year

Shareholders’ equity ratio (%)

30.6

20.6

20.0

Shareholders’ equity ratio on market value basis (%)

77.7

50.3

42.2

2.1

4.7

2.6

55.5

46.4

50.6

Interest-bearing debt/cash flow ratio (years)
Interest coverage ratio (times)(Note) Shareholders’ equity ratio: Shareholders’ equity/Total assets
Shareholders’ equity ratio on market value basis: Market capitalization/Total assets
Interest-bearing debt/cash flow ratio: Interest-bearing debt/Cash flow provided by operating activities
Interest coverage ratio: Cash flow provided by operating activities/Interest expense
1. All indices are calculated using consolidated financial figures.
2. Market capitalization is calculated by multiply closing share price at the end of fiscal year with the numberof shares outstanding at the end of fiscal year (excluding treasury shares)
3. The figure for net cash provided by operating activities in the consolidated statements of cash flows isused as cash flow provided by operating activities. Interest-bearing debt refers to the sum of all liabilities
in the consolidated balance sheets on which interest is paid. The figure for interest paid in the consolidated
statements of cash flows is used as interest expense.
(4) Future Outlook
The global spread of the novel coronavirus is having a considerable impact on the domestic and overseas
business environment surrounding the Lawson Group. The Group is engaged in diverse business fields within
and outside Japan, making it difficult to make a reasonable projection of its financial performance at thispoint. Therefore, the forecast of the Group’s consolidated financial performance for the fiscal year ending
February 2021 remains undetermined at this point.
Once it becomes possible to determine the forecast, it will be announced promptly.

2. Basic Approach to Selection of Accounting Standards
The Group applies Japanese generally accepted accounting principles, and it has no plan to apply
International Financial Reporting Standards (IFRS) for the time being. The Group intends to respond
appropriately to the application of the IFRS by considering the situation prevailing in Japan and overseas.

10

3. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheet
As of February 28, 2019 and February 29, 2020

AssetsCurrent assets:
Cash and deposits
Accounts receivable-due from franchised stores
Lease receivables
Merchandise
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets:
Property and store equipment:
Buildings and structures-net
Tools, furniture and fixtures-net
Land
Leased assets-net
Construction in progress
Other-net
Total property and store equipment
Intangible assets:
Software
Goodwill
Trademark right
Other
Total intangible assets
Investments and other assets:
Investment securities
Long-term loans receivable
Guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

11

Previous fiscal year
As of February 28,
2019(Millions of yen)
Current fiscal year
As of February 29,
2020354,240
47,17919,12020,862120,969
57,355(124)
619,603

343,587
47,366
17,876
20,985
159,12247,802(42)636,697

207,755
16,056
9,052
146,8802,223
331
382,300

201,526
20,093
8,913
146,235
1,825
14,343392,938

49,791
46,836
9,468
576
106,672

45,151
42,381
8,849
680
97,06331,14044,024
107,034
30,995
21,395(835)
233,753
722,726
1,342,329

28,66542,488107,193
34,37818,938(630)
231,033
721,035
1,357,732

Liabilities
Current liabilities:
Accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable-other
Income taxes payable
Deposits received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities:
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for retirement benefits to executive officers
and audit and supervisory board members
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

12Previous fiscal year
As of February 28,
2019(Millions of yen)
Current fiscal year
As of February 29,
2020

123,408
126,600
50,00038,750101,995
6,683
131,804
4,263
15,015598,522

129,397
39,850－45,61094,848
7,915
193,096
4,667
46,577561,963

260,000
131,441550

310,000
136,665
521

300

282

15,125
31,102
23,303461,824
1,060,347

16,24535,335
21,370520,421
1,082,385

58,506
46,984
166,187(1,028)
270,649

58,50644,605
165,081(1,011)
267,181

3,349
(566)
3,930
(848)
5,865
215
5,251
281,982
1,342,329

1,496
(207)
3,341
(934)
3,695
255
4,214
275,347
1,357,732

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
For the fiscal years ended February 28, 2019 and February 29, 2020

Gross operating revenue
Net sales
Cost of sales
Gross profit
Operating revenue:
Income from franchised stores
Other operating revenue
Total operating revenue
Operating gross profit
Selling, general and administrative expenses
Operating income
Non-operating income:Interest income
Share of profit of entities accounted for using equity
methodCompensation income
Penalty income
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Loss on cancellation of leases
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of investment securities
Total extraordinary income
Extraordinary losses:
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

13

Previous fiscal year
From March 1, 2018
to February 28, 2019
700,647
288,579
198,040
90,539(Millions of yen)
Current fiscal year
From March 1, 2019
to February 29, 2020
730,236
302,843
205,746
97,097302,136
109,931
412,067
502,607441,825
60,781

314,260
113,132
427,393
524,490
461,547
62,943

714

651

320

571

382
322
1,716
3,456

680
408
1,381
3,692

2,768
1,655
2,113
6,538
57,700

4,006
3,675
2,607
10,28956,346

738
738

164
164

224
4,141
13,891
303
18,561
39,87618,328(4,015)
14,31325,562(22)
25,585508
6,120
18,722840
26,19130,31912,814(2,563)
10,25020,068(39)
20,108

Consolidated Statement of Comprehensive Income
For the fiscal years ended February 28, 2019 and February 29, 2020
(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests

14

Previous fiscal year
From March 1, 2018
to February 28, 201925,562Current fiscal year
From March 1, 2019
to February 29, 2020
20,068

1,264
(673)
19
610
26,173(1,852)(543)(86)(2,481)
17,586

26,204(31)

17,5797

(3) Consolidated Statement of Changes in Equity
Previous fiscal year ended February 28, 2019 (From March 1, 2018 to February 28, 2019)(Millions of yen)
Capital stock

Capital surplus

58,506

46,689Balance at beginning of current period
Cumulative effects of changes inaccounting policies
Restated balance

Shareholders’ equity
Retained earnings
Treasury shares
166,124

Total shareholders' equity(1,040)270,280－

58,506

46,689166,124

Changes of items during period
Change in ownership interest of parent
due to transactions with non-controllingshareholders
Dividends of surplus(1,040)270,280－(25,514)

Change of scope of consolidation
Profit attributable to owners of parent(25,514)(0)(0)

25,58525,585Purchase of treasury shares
Disposal of treasury shares
Capital increase of consolidated
subsidiaries
Increase by corporate divisionTax effect adjustment on change in equity
of prior period
Reversal of revaluation reserve for land
Exercise of subscription rights to shares(Delivery of treasury shares)
Net changes of items other thanshareholders' equity
Total changes of items during period

0

(1)

(1)

0

0

(4)

(4)

70

70

224

224
(8)

(8)

4

Balance at end of current period

13

17

－

294

62

12

369

58,506

46,984

166,187(1,028)

270,649(Millions of yen)

Accumulated other comprehensive income
Valuation
Revaluationdifference on
reserve foravailable-for-salelandsecurities
Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

2,084

(575)

Foreigncurrencytranslation
adjustment
4,595

Total
NonRemeasureme accumulated Subscription controllingrights to shares
nts of defined
otherinterests
benefit plans comprehensive
income
(726)

5,377

195

5,593

281,446
－

2,084

(575)

4,595

(726)

5,377

195

5,593

Changes of items during period
Change in ownership interest ofparent due to transactions with
non-controlling shareholders
Dividends of surplus
Change of scope of
consolidation
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Capital increase of consolidated
subsidiaries
Increase by corporate divisionTax effect adjustment onchange in equity of prior period
Reversal of revaluation reserve
for landExercise of subscription rights
to shares(Delivery of treasury shares)
Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period

Total net
assets281,446－(25,514)(0)
25,585
(1)
0
(4)
70
224
(8)
17
1,264

8

(664)

(121)

487

20

(341)

166

1,264

8

(664)

(121)

487

20

(341)

535

3,349

(566)

3,930

(848)

5,865

215

5,251

281,98215

Current fiscal year ended February 29, 2020 (From March 1, 2019 to February 29, 2020)(Millions of yen)
Capital stock

Capital surplus

58,506

46,984

Balance at beginning of current period
Cumulative effects of changes inaccounting policies
Restated balance

Shareholders’ equity
Retained earnings
Treasury shares
166,187

Total shareholders' equity(1,028)

270,649(593)
58,506

46,984

Changes of items during period
Change in ownership interest of parent
due to transactions with non-controllingshareholders
Dividends of surplus(593)

165,593(1,028)270,056(2,375)(2,375)(20,262)(20,262)

20,108

20,108Change of scope of consolidation－

Profit attributable to owners of parent
Purchase of treasury shares(0)

Disposal of treasury shares
Capital increase of consolidated
subsidiaries
Increase by corporate divisionTax effect adjustment on change in equity
of prior period
Reversal of revaluation reserve for land
Exercise of subscription rights to shares(Delivery of treasury shares)
Net changes of items other thanshareholders' equity
Total changes of items during period

(0)
－
－
－
－

(358)

(358)

(3)

Balance at end of current period

18

14

－

(2,379)(512)

17(2,874)58,50644,605

165,081(1,011)

267,181(Millions of yen)
Accumulated other comprehensive income

Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

Foreign currency Remeasurements Total accumulated
othertranslationof defined benefit comprehensive
adjustment
plansincome

NonSubscription
controllingrights to sharesinterests

Revaluation
reserve for land

3,349

(566)

3,930

(848)

5,865

215

5,251

281,982

3,349

(566)

3,930

(848)

5,865

215

5,251

281,388(593)

Changes of items during period
Change in ownership interest ofparent due to transactions with
non-controlling shareholders
Dividends of surplus
Change of scope of
consolidation
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Capital increase of consolidated
subsidiaries
Increase by corporate divisionTax effect adjustment on change
in equity of prior period
Reversal of revaluation reserve
for landExercise of subscription rights
to shares(Delivery of treasury shares)
Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period

Total net
assetsValuation difference
on available-for-salesecurities(2,375)(20,262)－
20,108
(0)
－
－
－
－
(358)
14
(1,852)

358

(589)

(86)

(2,169)39(1,037)(3,167)(1,852)

358

(589)

(86)

(2,169)39(1,037)(6,041)

1,496

(207)

3,341

(934)

3,695

255

4,214

275,347

16

(4) Consolidated Statement of Cash Flows
For the fiscal years ended February 28, 2019 and February 29, 2020
Previous fiscal year
From March 1, 2018
to February 28, 2019
Net cash provided by (used in) operating activities:
Profit before income taxes
Depreciation and amortization
Impairment loss
Interest income
Interest expenses
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in accounts receivable-other
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other
Increase (decrease) in deposits received
Increase (decrease) in net defined benefit liability
Net decrease (increase) in call loans for banking business
Net increase (decrease) in call money for banking business
Other-net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities:
Purchase of property and store equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates
Payments of long-term loans receivableCollection of long-term loans receivable
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Purchase of long-term prepaid expenses
Payments for transfer of business
Other-net
Net cash provided by (used in) investing activities

17(Millions of yen)
Current fiscal year
From March 1, 2019
to February 29, 2020

39,876
66,844
13,891
(714)
2,768
4,141
(2,707)(38,404)
5,752
41,10922,179876(20,000)－
13,785
149,400
671(2,771)(18,706)
128,594

30,31979,18318,722
(651)
4,006
6,120
(205)
(38,388)
6,116(7,013)
61,292783
10,00019,00028,226
217,512632(4,006)(11,435)
202,703(43,284)(18,060)(5,756)
7,157(3,597)(7,388)5,110(24,239)
18,428(5,752)(2,730)(904)(81,017)(33,851)(10,931)(129)
243(2,246)(5,960)
5,735(18,023)
17,836
(796)
－
(950)
(49,074)

Previous fiscal year
From March 1, 2018
to February 28, 2019
Net cash provided by (used in) financing activities:
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations
Cash dividends paid
Payments from changes in ownership interests in subsidiaries that
do not result in change in scope of consolidation
Other-net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Cash and cash equivalents at end of period

18(Millions of yen)
Current fiscal year
From March 1, 2019
to February 29, 2020

90,260260,000(6,044)(40,682)(25,514)(86,750)
50,000(50,000)(53,318)(20,262)－(3,521)(80)
277,937(1,409)324,105
30,120(59)(163,910)(371)(10,652)
354,23610－

354,236

343,583(5) Notes to Consolidated Financial Statements(Going Concern Assumption)
Not Applicable.
(Accounting Policies for the Preparation of Consolidated Financial Statements)
1. Scope of consolidation(1) Number of consolidated subsidiaries: 21(Domestic)
Lawson Entertainment, Inc.
BestPractice, Inc.
SCI, Inc.
Lawson Store100, Inc.
Lawson HMV Entertainment United Cinemas Holdings, Inc.
United Entertainment Holdings Co., Ltd.
United Cinemas Co., Ltd.
SEIJO ISHII CO., LTD.
Lawson Sanin, Inc.
Lawson Bank, Inc.
Lawson urbanworks, Inc.
(Foreign)

Chongqing Lawson, Inc.
Shanghai Lawson, Inc.
Dalian Lawson, Inc.
Lawson (China) Holdings, Inc.
Saha Lawson Co., Ltd.
Shanghai Le Song Trading Co., Ltd.
Shang Hai Gong Hui Trading Co., Ltd.
Zhejiang Lawson, Inc.
Beijing Lawson, Inc.
BEIJING LUOSONG Co., Ltd.
Of the above subsidiaries, Lawson Sanin, Inc. was merged into Lawson, Inc. effective March 1, 2020.
(2) Names of nonconsolidated subsidiaries and others(Domestic)
LAWSONWILL, Inc.
Seikaken, Inc.
Lawson Syuhan, Inc.
TOKYO EUROPE TRADE CO., LTD.
Lawson Travel, Inc.
Lawson Digital Innovation Inc.
(Foreign)

Lawson USA Hawaii, Inc.
Jiangsu Lawson, Inc.
Lawson Philippines, Inc.
LAWSON (TIANJIN) INC.
SLV Retail Company Limited
Shenyang LAWSON Inc.
(Reasons for exclusion from the scope of consolidation)
The above nonconsolidated subsidiaries have been excluded from the scope of consolidation because
they are all small in scale and their total assets, net sales, profit or loss (corresponding to equity interest)
and retained earnings (corresponding to equity interest) and others have no material influence on the
consolidated financial statements.

19

2. Application of the equity method(1) Equity-method associates: 3(Domestic)
Lawson Okinawa, Inc.
Lawson Minamikyushu, Inc.
Lawson Kochi, Inc.
(2) Nonconsolidated subsidiaries and entities excluded from the scope of the equity-method application
Nonconsolidated subsidiaries (LAWSONWILL, Inc., Seikaken, Inc., Lawson Syuhan, Inc., TOKYOEUROPE TRADE CO., LTD., Lawson Travel, Inc., Lawson Digital Innovation Inc., Lawson USA Hawaii,Inc., Jiangsu Lawson, Inc., Lawson Philippines, Inc., LAWSON (TIANJIN) INC., SLV Retail Company
Limited and Shenyang LAWSON Inc. and entities (Double Culture Partners Co., Ltd., Loyalty Marketing,Inc., Lawson Staff, Inc., TA Platform Corporation, LTF Co., Ltd., StageAround TOKYO Production
Committee, Jiangyin Hualian Guzhitian Food Co., Ltd., POPLAR Co.,Ltd., New Designed by Tokyo Ltd.
and Lawson Farm Chiba and others) were excluded from the scope of the equity-method application because
their profit or loss (corresponding to equity interest) and retained earnings (corresponding to equity interest)of these entities are not significant either individually or in aggregate to the consolidated financial statements.
3. Fiscal year end of the consolidated subsidiaries
The balance sheet date of Chongqing Lawson, Inc., Shanghai Lawson, Inc., Dalian Lawson, Inc., Lawson(China) Holdings, Inc., Saha Lawson Co., Ltd., Shanghai Le Song Trading Co., Ltd., Shang Hai Gong Hui
Trading Co., Ltd., Zhejiang Lawson, Inc., Beijing Lawson, Inc. and BEIJING LUOSONG Co., Ltd. is
December 31. In order to prepare the consolidated financial statements, the Company used these companies’
financial information prepared as of such balance sheet date and significant transactions which occur between
the balance sheet date and the consolidated balance sheet date are adjusted as required for consolidation.
The balance sheet date of Lawson Bank, Inc. is March 31. In formulating the consolidated financial
statements, the Company used this subsidiary’s provisional settlement of accounts as of the consolidatedbalance sheet date.
The fiscal year end date for the other consolidated subsidiaries corresponds with the consolidated balance
sheet date.
4. Summary of Significant Accounting Policies(1) Valuation basis and method for significant assets① Securities:
Marketable securities and investments in securities:
Available-for-sale securities:
Securities whose market value is readily determinable:
Recorded at market value with net unrealized gains and losses as a separate component of net
assets. The cost of securities sold is determined based on the moving-average method.
Other:
Stated at cost determined by the moving-average method.
② Inventories:
Merchandise:Stated at cost determined mainly by the retail method (the book value in the balance sheet is written
down based on the decline in profitability).
(2) Depreciation method of depreciable significant assets① Property and store equipment (except for leased assets):
Mainly computed by the straight-line method.
The ranges of useful lives are from 10 to 34 years for buildings and structures and from 5 to 8 years
for tools, furniture and fixtures.
② Intangible assets (except for leased assets):
Computed by the straight-line method.
Costs of software for internal use are amortized by the straight-line method over 5 years, which isthe estimated useful life. Furthermore, for right of trademark, amortization is mainly computed using
the straight-line method over 20 years.

20

③ Leased assets:

Leased assets related to finance leases that do not transfer ownership of leased property
The Company applies the straight-line method using the lease term as the useful life and a residual
value of zero.
(3) Accounting standard for significant reserves① Allowance for doubtful accounts:
Allowance for doubtful accounts is provided at the amount of possible losses from uncollectible
receivables based on the actual rate of losses from bad debt for ordinary receivables and on estimatedrecoverability for specific doubtful receivables.
② Provision for bonuses:
Provision for bonuses is provided for payments of employees’ bonuses based on the estimated amounts.
③ Provision for retirement benefits to executive officers and audit & supervisory board members:
Provision for retirement benefits to executive officers of the Company and audit & supervisory board
members of consolidated subsidiaries is recorded under internal regulations.
(4) Accounting method for retirement benefits① Period attributable method of estimated amount of retirement benefits
In calculating retirement benefit obligation, in order to attribute estimated amount of retirement benefits
in the period up to the end of the current fiscal year, it is based on the benefit formula basis.
② Cost treatment method of actuarial difference and prior service cost
Prior service cost is amortized starting the fiscal year incurred mainly on a straight-line basis over acertain period (10 years) within an average remaining service period of employees at the time of theirrecognition.
Actuarial differences are mainly amortized from the following fiscal year on a straight-line basis over acertain period (10 years) within an average remaining service period of employees at the time of theirrecognition.
Certain consolidated subsidiaries apply the simplified method to estimate the amount required forvoluntary resignations at the end of the fiscal year as the retirement benefit liability in order to calculate
net defined benefit liability and retirement benefit expenses.
(5) Significant foreign currency transactions and foreign currency financial statements
All short-term and long-term monetary receivables and payables denominated in foreign currencies aretranslated into Japanese yen at the exchange rates at the consolidated balance sheet date. The foreignexchange gains and losses from translation are recognized in the consolidated statement of income. The
consolidated balance sheet accounts as well as revenue and expense accounts of foreign subsidiaries andaffiliated companies are translated into Japanese yen at the current exchange rate as of the consolidatedbalance sheet date except for shareholders’ equity, which is translated at the historical rate. Differences
arising from such translation are shown as “foreign currency translation adjustments” and “noncontrolling interests,” a separate component of net assets.
(6) Amortization method and period of goodwill
Goodwill is amortized on a straight-line basis over the relevant years, depending on the reason for theoccurrence of goodwill, with a maximum of 20 years.
(7) Cash and cash equivalents in the consolidated statement of cash flows
Cash and cash equivalents in the consolidated statement of cash flows include cash on hand, demand
deposits and short-term investments due within three months of the acquisition date, which are easily
convertible into cash with little risk of value fluctuation.
(8) Other significant items related to the preparation of consolidated financial statements① Accounting for consumption tax:
Consumption tax and local consumption tax are accounted for using the tax exclusion method.
② Adoption of consolidated taxation system:
The Company and certain consolidated subsidiaries in Japan adopt the consolidated taxation system.

21

(Changes in Accounting Policies)
The Company’s foreign consolidated subsidiaries have applied International Financial Reporting Standard
16 (IFRS 16) “Leases” from the first quarter of the fiscal year ended February 29, 2020, meaning theCompany recognizes all applicable leases as assets and liabilities on the consolidated balance sheet, inprinciple.
The impact of the application of IFRS 16 on the Company’s consolidated financial statements isimmaterial.
(Unapplied Accounting Standards, etc.)(The Company and its domestic consolidated subsidiaries)
・“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29; March 30, 2018)
・“Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No.
30; March 30, 2018)(1) Outline
This is a comprehensive accounting standard on revenue recognition. Revenue is recognized by applying
the following five steps:
Step 1: Identify the contracts with a customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the performance obligations in the contract.
Step 5: Recognized revenue when as the entity satisfies a performance obligation.
(2) Scheduled date of application
The Company plans to adopt the accounting standards, etc. from the beginning of the fiscal year ending
February 28, 2023.
(3) Impact of the application of the accounting standards, etc.
The impact was being evaluated at the time of preparation of these consolidated financial statements.
・ “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.30; July 4, 2019)
・“Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31;
July 4, 2019)
・“Accounting Standard for Measurement of Inventories” (ASBJ Statement No. 9; July 4, 2019)
・ “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10; July 4, 2019)(1) Outline
To improve comparability with international accounting standards, “Accounting Standard for Fair Value
Measurement” and “Implementation Guidance on Accounting Standard for Fair Value Measurement”(hereinafter, “Accounting Standard for Fair Value Measurement, etc.”) have been developed as guidance on
how to measure fair value. “Accounting Standard for Fair Value Measurement, etc.” will be applied indetermining the fair value of the following items.
・Financial instruments set forth in “Accounting Standard for Financial Instruments”
・Inventories held for trading purposes set forth “Accounting Standard for Measurement of Inventories”(2) Scheduled date of application
The Company plans to apply the accounting standards, etc. from the beginning of the fiscal year ending
February 28, 2023.
(3) Impact of the application of the accounting standards, etc.
The impact was still being evaluated at the time of preparation of these consolidated financial statements.
22

(Changes in Presentation)(Changes resulting from application of “Partial Amendments to Accounting Standard for Tax EffectAccounting”)
The Company has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting”(ASBJ Statement No. 28; February 16, 2018) from the beginning of the fiscal year ended February 29, 2020.
Consequently, “Deferred tax assets” are presented under “Investments and other assets” and “Deferred tax
liabilities” are presented under “Non-current liabilities.”
As a result, 4,394 million yen that was presented as “Deferred tax assets” under “Current assets” and 160
million yen that was presented as “Deferred tax liabilities” under “Non-current liabilities” in theConsolidated Balance Sheet for the previous fiscal year are now presented as 30,995 million yen of “Deferred
tax assets” under “Investments and other assets” and 550 million yen of “Deferred tax liabilities” under“Non-current liabilities.”(Consolidated Statement of Income)In the “Non-operating income” section, “Dividend income” was presented separately in the previous fiscal
year. Due to a decline in financial materiality, “Dividend income” is now included in “Other”. “Penalty
income” was included in “Other” in the previous fiscal year. In order to enhance the clarity of theconsolidated financial statements from the current fiscal year, “Penalty income” is now separately presented.
To reflect these changes in method of presentation, the Consolidated Statement of Income for the previous
fiscal year has been reclassified.
As a result, in the “Non-operating income” section, 319 million yen that was presented as “Dividend
income” and 1,720 million yen that was presented as “Other” in the Consolidated Statement of Income forthe previous fiscal year are now presented as 322 million yen of “Penalty income” and 1,716 million yen of“Other.”In the “Non-operating expenses” section, “Loss on disaster” was presented separately in the previous fiscal
year. Due to a decline in financial materiality, “Loss on disaster” is now included in “Other”. To reflect thesechanges in method of presentation, the Consolidated Statement of Income for the previous fiscal year has
been reclassified.
As a result, in the “Non-operating income” section, 817 million yen that was presented as “Loss on disaster”
and 1,296 million yen that was presented as “Other” in the Consolidated Statement of Income for theprevious fiscal year is now presented as 2,113 million yen of “Other.”23

(Notes to Consolidated Balance Sheet)*1. Accumulated depreciation of property and store equipment

Accumulated depreciation

Previous fiscal year
As of February 28, 2019342,857(Millions of yen)
Current fiscal year
As of February 29, 2020
366,817

Previous fiscal year
As of February 28, 201917,591
(980)
207
705
(584)

(Millions of yen)
Current fiscal year
As of February 29, 2020
18,717
(956)
68
1,800
(799)

*2. Investments in associates

Investment securities (stocks)(Investment amount for jointly-controlled companies)
Investment securities (bonds)
Other (other equity investments)(Investment amount for jointly-controlled companies)*3. Revaluation of land used for businessLand used for business was revalued on the basis prescribed by the Law Concerning Revaluation ofLand (Law No. 34, March 31, 1998). The resulting revaluation difference has been included in net assets as“Revaluation reserve for land.”
Revaluation method:
The value of land is determined based on the notified prices adjusted reasonably as stipulated in Article
2, Item 4 of the Ordinance Implementing the Law Concerning Revaluation of Land (Government
Ordinance No. 119, March 31, 1998) and the assessed value as stipulated in Article 2, Item 5 of the same
Ordinance.
Date of revaluation: February 28, 2002
(Millions of yen)Previous fiscal year
Current fiscal year
As of February 28, 2019
As of February 29, 2020
Difference between book value and market value of151
81
the revalued land as of balance sheet date
*4. Overdraft and loan commitment agreements

The Company and its consolidated subsidiaries have entered into overdraft and loan commitment
agreements to ensure efficient funding of working capital.
The unutilized balances of loans under these overdraft and loan commitment agreements as of theend of the fiscal year are as follows.
Previous fiscal year
As of February 28, 2019

(Millions of yen)
Current fiscal year
As of February 29, 2020

Total overdraft limit and loan commitment
Amount utilized

220,000
79,800220,000
3,000

Unutilized balance

140,200

217,000

24

(Notes to Consolidated Statement of Income)*1 Major components of selling, general and administrative expenses are as follows.

Employees' salaries and allowances
Provision for bonuses
Retirement benefit expenses
Rents
Depreciation

Previous fiscal year
From March 1, 2018
to February 28, 2019
61,0783,437
2,632
132,739
66,735(Millions of yen)
Current fiscal year
From March 1, 2019
to February 29, 2020
62,324
3,860
2,722
133,880
79,069Previous fiscal year
From March 1, 2018
to February 28, 2019
149
72
2
224

(Millions of yen)
Current fiscal year
From March 1, 2019
to February 29, 2020
505
2
－
508

Previous fiscal year
From March 1, 2018
to February 28, 2019
3,367
154
586
28
4
4,141

(Millions of yen)
Current fiscal year
From March 1, 2019
to February 29, 2020
4,872
363
867
17
0
6,120

*2 Breakdown of loss on sales of non-current assets

Buildings and structures
Tools, furniture and fixtures
OthersTotal*3 Breakdown of loss on retirement of non-current assets

Buildings and structures
Tools, furniture and fixtures
Leased assets
Software
OthersTotal*4 Impairment loss
The Company and its consolidated subsidiaries (collectively, the “Group”) identify each store as the smallest
cash generating unit.
The carrying value of asset groups whose profitability has significantly decreased was written down to therecoverable amount, with the difference recognized as impairment loss under extraordinary losses.
Previous fiscal year (From March 1, 2018 to February 28, 2019)(Millions of yen)
Category by use
Stores

Other
Total

Location

AssetsTokyo

Buildings; tools, furniture and fixtures; and others

1,590

Osaka

"

1,505

Others―"

10,240

Land

50

―

Software503―

Goodwill

1

―

―

25

Impairment loss

13,891Category by non-current assets
Buildings and structures
7,981 million yen
Tools, furniture and fixtures
587
"
Land
50
"
Leased assets
4,693
"
"
Software503"
Goodwill
1
Other
74
"
The recoverable amount of the asset groups is the higher of net selling price or value in use. The net selling
price of land was calculated based on the value appraised by a real estate appraiser or contract price, and thevalue in use was calculated by discounting estimated future cash flows mainly using a discount rate of 3.6%.
Current fiscal year (From March 1, 2019 to February 29, 2020)(Millions of yen)
Category by use
Stores

Other
Total

Location

AssetsImpairment loss

Tokyo

Buildings; tools, furniture and fixtures; and others

2,533

Osaka

"

1,689

Others"13,434

―

Land

116

―

Software947―

Goodwill―――

18,722Category by non-current assets
Buildings and structures
Tools, furniture and fixtures
Land
Leased assets
Software
Goodwill
Other

10,774
708
116
6,104
947
―
70

million yen
"
"
"
"
"
"

The recoverable amount of the asset groups is the higher of net selling price or value in use. The net selling
price of land was calculated based on the value appraised by a real estate appraiser or contract price, and thevalue in use was calculated by discounting estimated future cash flows mainly using a discount rate of 3.8%.

26

(Notes to Consolidated Statement of Comprehensive Income)* The components of other comprehensive income for the years ended February 28, 2019 and February 29, 2020
were as follows:(Millions of yen)Previous fiscal year
Current fiscal year
From March 1, 2018
From March 1, 2019
to February 28, 2019
to February 29, 2020
Valuation difference on
available-for-sale securities
Gain or loss arising during the
2,473(2,509)periodReclassification adjustments to
(675)
(120)
profit or loss
Amount before income tax effect
1,797(2,630)
Income tax effect
(532)
778
Valuation difference on
1,264(1,852)
available-for-sale securities
Foreign currency translation
adjustment
Gain or loss arising during the
(673)
(543)
periodForeign currency translation
(673)
(543)
adjustment
Remeasurements of defined
benefit plans
Gain or loss arising during the
(177)
(334)
periodReclassification adjustments to
202
177
profit or loss
Amount before income tax
25(157)
effectIncome tax effect(6)
70
Remeasurements of defined19(86)
benefit plans
Total other comprehensive
610(2,481)income27

(Notes to Consolidated Statement of Changes in Equity)
Previous fiscal year (From March 1, 2018 to February 28, 2019)
1. Number of shares of outstanding stock and treasury shares
Number of shares at
Increase during
Decrease during
Number of shares atthe beginning of thethe period
the period
the end of the period
period(thousands of shares) (thousands of shares) (thousands of shares)(thousands of shares)
Outstanding stock
Common stock
100,300－－
100,300
Treasury shares
Common stock (*)
244
0
3
241
(*) The increase in treasury shares of 0 thousand shares resulted from purchases of stock of less than one share unit.
The decrease in treasury shares of 3 thousand shares resulted from decreases of 3 thousand shares due tothe exercise of stock option rights and 0 thousand shares due to requests for additional purchases of stockof less than one share unit.
2. Subscription rights to shares and treasury subscription rights to sharesClass and number of shares
Balance at
subject to stock acquisition rights
end of the
Number (shares)
Terms of stock
current
Classificationacquisition rights
periodBeginning
Increase
Decrease End of theClass(Millionsof theduring the during theperiodof yen)periodperiodperiodStock acquisitionrights (ordinary stock
options)

Issuing company(Parent company)

Total

－

－

－

－

－

215

－

－

－

－

－

215

3. Dividend
1) Dividend payment
Date of resolution
The General meetingof shareholders(May 22, 2018)
Directors’ meeting(October 11, 2018)

Class ofsharesDividend payment(millions of yen)

Dividend pershare (yen)Record date

Effective dateCommonstock

12,757127.50February 28, 2018

May 23, 2018

Commonstock

12,757127.50August 31, 2018

November 9, 2018

2) Dividends for which the record date is in the current fiscal year and the effective date is after the fiscal year-end
Date of resolution

Class ofshares

Source ofdividend

Dividend payment(millions of yen)

Dividend pershare (yen)Record date

Effectivedate

The General
meeting ofshareholders(May 21, 2019)

Commonstock

Retainedearnings

12,757127.50February 28,
2019

May 22,201928

Current fiscal year (From March 1, 2019 to February 29, 2020)
1. Number of shares of outstanding stock and treasury shares
Number of shares at
Increase during
Decrease during
Number of shares atthe beginning of thethe period
the period
the end of the period
period(thousands of shares) (thousands of shares) (thousands of shares)(thousands of shares)
Outstanding stock
Common stock
100,300－－
100,300
Treasury shares
Common stock (*)
241
0
4
237
(*) The increase in treasury shares of 0 thousand shares resulted from purchases of stock of less than one share unit.
The decrease in treasury shares of 4 thousand shares resulted from the exercise of stock option rights.
2. Subscription rights to shares and treasury subscription rights to sharesClass and number of shares
Balance at
subject to stock acquisition rights
end of the
Number (shares)
Terms of stock
current
Classificationacquisition rights
periodBeginning
Increase
Decrease End of theClass(Millionsof theduring the during theperiodof yen)periodperiodperiodStock acquisitionrights (ordinary stock
options)

Issuing company(Parent company)

Total

－

－

－

－

－

255

－

－

－

－

－

255

3. Dividend
1) Dividend payment
Date of resolution
The General meetingof shareholders(May 21, 2019)
Directors’ meeting(October 9, 2019)

Class ofsharesDividend payment(millions of yen)

Dividend pershare (yen)Record date

Effective dateCommonstock

12,757127.50February 28, 2019

May 22, 2019

Common
stock

7,504

75.00

August 31, 2019

November 8, 20192) Dividends for which the record date is in the current fiscal year and the effective date is after the fiscal year-end
Plan for resolution is as follows.
Date of resolution

Class ofshares

Source ofdividend

Dividend payment(millions of yen)

Dividend pershare (yen)Record date

Effectivedate

The General
meeting ofshareholders(May 27, 2020)

Commonstock

Retainedearnings

7,504

75.00

February 29,
2020

May 28,2020

29

(Notes to Consolidated Statement of Cash Flows)*1. Reconciliation between the year-end balance of cash and cash equivalents and cash and deposits in the
consolidated balance sheet(Millions of yen)Previous fiscal year
Current fiscal year
From March 1, 2018
From March 1, 2019
to February 28, 2019
to February 29, 2020
Cash and deposits
354,240
343,587
Time deposits for which the deposit period(4)(4)
exceeds three months
Cash and cash equivalents
354,236
343,583
2. Description of significant non-cash transactions
1) Assets and liabilities related to finance lease transactions are as follows.
(Millions of yen)Previous fiscal year
From March 1, 2018
to February 28, 2019

Current fiscal year
From March 1, 2019
to February 29, 2020

58,84250,007

Assets and liabilities related to finance leasetransactions2) Significant asset retirement obligations are as follows.

(Millions of yen)Previous fiscal year
From March 1, 2018
to February 28, 2019

Current fiscal year
From March 1, 2019
to February 29, 2020

2,385

5,363

Significant asset retirement obligations

30

(Segment Information)
1. Outline of reportable segments
The Company’s financial information is provided separately by reportable segment and is subject to regularreview by the board of directors with regard to the allocation of managerial resources and performance
evaluation.
The Group operates primary businesses Domestic Convenience Store Business, Seijo Ishii Business,
Entertainment-related Business and Financial Services Business while incorporating other related businesses.
Therefore, the Group has made the Domestic Convenience Store Business, Seijo Ishii Business,
Entertainment-related Business and Financial Services Business units its main reportable segments, based on
consideration of financial characteristics and the nature of the services provided.
Regarding Domestic Convenience Store Business, Lawson, Inc. operates a franchise system as well as
undertaking the direct management of stores in Japan as the parent company of LAWSON, NATURALLAWSON, and LAWSON STORE100. Lawson Sanin, Inc. undertakes the direct management of LAWSON
stores in the Sanin area. Lawson urbanworks, Inc. undertakes the direct management of LAWSON stores mainlyin Tokyo and Chiba prefectures. Lawson Store100, Inc. undertakes the direct management of LAWSONSTORE100 stores. SCI, Inc., a functional subsidiary which comprehensively manages the process fromprocurement to sale, aims to improve the efficiency of the entire process.
Regarding Seijo Ishii Business, SEIJO ISHII CO., LTD. operates SEIJO ISHII supermarkets.
Regarding Entertainment-related Business, Lawson Entertainment, Inc. conducts the management and salesof concert tickets at LAWSON stores and others, music and video software products at HMV stores and others.
In addition, United Cinemas Co., Ltd. operates multiplex movie theatres.
Regarding Financial Services Business, Lawson Bank, Inc. carries out a banking business.
2. Computation method of the amount of net sales, profit or loss, assets and liabilities, and other items byreportable segment
The segment accounting policies are the same as those described in the “Accounting Policies for the
Preparation of Consolidated Financial Statements.” Segment profit is based on operating income. Intersegment
revenue and transfers are based on market value.

31

3. Information on net sales, and profit or loss by reportable segment
Previous fiscal year (From March 1, 2018 to February 28, 2019)(Millions of yen)
Reportable segment
Others(Note 1)

Total

Adjustments(Note 2)

Total
(Note 3)

Domestic
Convenience
Store Business

Seijo Ishii
Business

Entertainmentrelated
Business

Financial
Services
Business462,632

86,672

76,66130,35544,324

700,647－

700,647

6,059

－

1,408

216

1,080

8,765

(8,765)－

Total

468,692

86,672

78,07030,57245,404

709,412(8,765)

700,647

Segment profit

48,262

7,413

4,499

2,223

(1,618)60,781－60,781

Segment assets

893,711

66,42170,354386,266

25,236

1,441,989(99,660)

1,342,329

52,265

1,843

2,245

4,594

1,480

62,429－62,429

2,417

1,437

501

－

59

4,415

－

4,415

5,008

－

－

－

－

5,008

－

5,008

47,106

688

1,332

8,493

3,724

61,344－

61,344Gross operating
revenue
Sales toexternalcustomers
Internal sales
or transfers
betweensegments

Other
Depreciation
Amortizationof goodwill
Investments inassociates
Increase in
non-current
assets(Notes)1. The business segments within the “Others” category that do not fall under the main reportable segments,
include Overseas Business operated by Shanghai Lawson, Inc. and others.
2. Adjustments to segment assets are due to the elimination of intra-segment transactions.
3. Segment profit (loss) corresponds to consolidated operating income.

32

Current fiscal year (From March 1, 2019 to February 29, 2020)(Millions of yen)
Reportable segment
Others(Note 1)

Total

Adjustments(Note 2)

Total
(Note 3)

Domestic
Convenience
Store Business

Seijo Ishii
Business

Entertainmentrelated
Business

Financial
Services
Business

465,333

93,11983,96031,64656,176730,236－730,236

6,218

－

1,385

2,443

1,098

11,145(11,145)－

Total

471,551

93,11985,34634,08957,275

741,382(11,145)

730,236

Segment profit

47,121

8,348

5,313

3,088

(929)

62,943－62,943

Segment assets

908,974

71,90369,736395,854

42,497

1,488,965(131,232)

1,357,732

Depreciation

57,755

1,887

2,365

6,401

6,333

74,743－74,743

Amortizationof goodwill
Investments inassociates
Increase in
non-current
assets

2,443

1,437

501

－

57

4,440

－

4,440

5,099

－

－

－

－

5,099

－

5,099

33,165

1,045

2,771

2,586

5,213

44,782－

44,782Gross operating
revenue
Sales toexternalcustomers
Internal sales
or transfers
betweensegments

Other(Notes)1. The business segments within the “Others” category that do not fall under the main reportable segments,
include Overseas Business operated by Shanghai Lawson, Inc. and others.
2. Adjustments to segment assets are due to the elimination of intra-segment transactions.
3. Segment profit (loss) corresponds to consolidated operating income.

33

(Related information)
Previous fiscal year (From March 1, 2018 to February 28, 2019)
1. Information by product and service
Since similar information is disclosed in segment information, this information is omitted.
2. Information by geographical area
(1) Net sales
Since sales to external customers in Japan exceed 90% of net sales on the consolidated statement ofincome, this information is omitted.
(2) Property and store equipment
Since property and store equipment in Japan exceed 90% of property and store equipment on the
consolidated balance sheet, this information is omitted.
3. Information by major customer
Information about major customers has been omitted since there are no external customers who constituted
more than 10% of net sales on the consolidated statement of income.
Current fiscal year (From March 1, 2019 to February 29, 2020)
1. Information by product and service
Since similar information is disclosed in the segment information, this information is omitted.
2. Information by geographical area
(1) Net sales
Since sales to external customers in Japan exceed 90% of net sales on the consolidated statement ofincome, this information is omitted.
(2) Property and store equipment
Since property and store equipment in Japan exceed 90% of property and store equipment on the
consolidated balance sheet, this information is omitted.
3. Information by major customer
Information about major customers has been omitted since there are no external customers who constituted
more than 10% of net sales on the consolidated statement of income.

34

(Information on impairment loss on non-current assets by reportable segment)
Previous fiscal year (From March 1, 2018 to February 28, 2019)
The Group identifies each store as the smallest cash generating unit.
Regarding asset groups whose profitability from operating activities has continuously been negative, the bookvalue of such assets has been written down to the recoverable amount, with the difference recorded as
impairment loss under extraordinary losses.
The amount of impairment loss recorded for each reportable segment is as follows.
(Millions of yen)
Reportable segment

Impairment
loss

Domestic
Convenience
Store Business

13,274

Seijo Ishii
Business

Entertainmentrelated
Business

Financial
Services
Business－

50－

OthersTotal

567

13,891

Adjustments

－

Total

13,891

Current fiscal year (From March 1, 2019 to February 29, 2020)
The Group identifies each store as the smallest cash generating unit.
Regarding asset groups whose profitability from operating activities has continuously been negative, the bookvalue of such assets has been written down to the recoverable amount, with the difference recorded as
impairment loss under extraordinary losses.
The amount of impairment loss recorded for each reportable segment is as follows.
(Millions of yen)
Reportable segment

Impairment
loss

Domestic
Convenience
Store Business

18,359Seijo Ishii
Business

Entertainmentrelated
Business

Financial
Services
Business

17

73

－

OthersTotal

272

18,722Adjustments

－

Total

18,722(Information on amortization of goodwill and amortized balance by reportable segment)
Previous fiscal year (From March 1, 2018 to February 28, 2019)(Millions of yen)
Reportable segment
OthersDomestic
Convenience
Store Business

Seijo Ishii
Business

Entertainmentrelated
Business

Total

Adjustments

Total

Financial
Services
Business

Balance at
end of
16,09822,3957,686
655
46,836－－ 46,836
fiscal year
Note: Regarding amortization of goodwill, this information is omitted since similar information is disclosed insegment information.

35

Current fiscal year (From March 1, 2019 to February 29, 2020)(Millions of yen)
Reportable segment
OthersDomestic
Convenience
Store Business

Seijo Ishii
Business

Entertainmentrelated
Business

Total

Adjustments

Total

Financial
Services
Business

Balance at
end of
13,654
20,9587,185
583
42,381－－ 42,381
fiscal year
Note: Regarding amortization of goodwill, this information is omitted since similar information is disclosed insegment information.
(Information on gain on negative goodwill by reportable segment)
Previous fiscal year (From March 1, 2018 to February 28, 2019)
Not applicable.
Current fiscal year (From March 1, 2019 to February 29, 2020)
Not applicable.

36

(Per Share Information)
Previous fiscal year
From March 1, 2018 to
February 28, 2019

Current fiscal year
From March 1, 2019 toFebruary 29, 2020

2,763.54 yen

2,707.08 yen

Profit per share

255.71 yen

200.95 yen

Diluted profit per share

255.59 yen

200.84 yen

Net assets per share

Note: The basis for the calculation of profit per share and diluted profit per share is as follows:
Previous fiscal year
From March 1, 2018 to
February 28, 2019

Item

Current fiscal year
From March 1, 2019 toFebruary 29, 2020

Profit per share
Profit attributable to owners of parent (millions ofyen)Amount not attributable to common shareholders(millions of yen)

25,585

20,108－－

Profit attributable to common stock (millions of yen)

25,585

20,108Average number of common stock during the fiscal
year (thousands of shares)

100,057

100,061

Profit attributable to owners of parent adjustment(millions of yen)
Increase in number of outstanding common shares(thousands of shares)

－

－

47

58

(Subscription rights to shares) (thousands of shares)

(47)

(58)

－

－

Diluted profit per share

Summary of issuable shares not included in thecomputation of diluted profit per share, since thesesecurities are not dilutive.
(Significant Subsequent Events)
Not applicable.

37