Flash Report on the Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending February 28, 2022
January 7, 2022
Listed Company Name: Lawson, Inc.
Tokyo Stock Exchange (First Section)
Code No.: 2651
(URL https://www.lawson.jp/en/ir)
Company Representative: Sadanobu Takemasu, President and CEO, Representative Director,
Chairman of the Board
Contact: Tomoki Takanishi, Senior Vice President, Financial Administration Division Director
Tel.: +81-3-5435-2773
Scheduled date for submission of quarterly securities report: January 12, 2022
Scheduled date for payment of dividend: －Supplementary materials for quarterly financial results: Yes
Holding of presentation of quarterly results: None
(Amounts less than one million yen are truncated)
1. Consolidated operating results for the third quarter ended November 30, 2021 (from March 1, 2021 toNovember 30, 2021)(1) Consolidated operating results (cumulative)
Note: Percentages represent increases (decreases) compared with the corresponding period of the previous fiscal
year.
Gross operating
revenue
Millions%of yen522,489
5.0
497,425(9.7)

For the third quarter
ended
November 30, 2021
November 30, 2020
Note: Comprehensive income:Operating income

Ordinary income

Millionsof yen38,65132,356

Millionsof yen39,44030,273%19.5(37.9)For the third quarter ended November 30, 2021
For the third quarter ended November 30, 2020%
30.3
(37.8)

26,094 million yen
15,478 million yen

Profit per share

Diluted profit per share

Yen
243.61118.96Yen
243.39118.88For the third quarter ended
November 30, 2021
November 30, 2020

Profit attributable toowners of parent
Millions%of yen24,378104.8
11,904(54.1)
68.6 %(35.2)%(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen

Shareholders’ equity
ratio%

November 30, 2021

1,328,043

284,094

21.0

February 28, 2021

1,365,430

272,931

19.6

As of

Reference: Shareholders’ equity:
As of November 30, 2021
As of February 28, 2021

278,591 million yen
267,632 million yen

2. Dividends

2020 fiscal year－

Annual dividends per share
1H
3Q
Year-end
Yen
Yen
Yen
75.00
－
75.00

2021 fiscal year

－

75.00

1Q
Yen

2021 fiscal year (forecast)
Note: Revision of the most recent dividends forecast: None

Total
Yen
150.00－75.00

150.003. Forecast of consolidated operating results for the 2021 fiscal year ending February 28, 2022 (from March 1,
2021 to February 28, 2022)
Note: Percentages represent increases (decreases) compared with the corresponding period of the previous fiscal
year.
Gross operating
Profit attributable Profit per
Operating income Ordinary income
revenueto owners of parent share
Millions
Millions
Millions
Millions
%
%
%
%
Yen
of yenof yenof yenof yen2021 fiscal year
716,000
7.5
50,000 22.3
47,000 25.0
15,50078.4
154.88
Note: Revision of the most recent consolidated operating results forecast: None
4. Notes(1) Change in significant subsidiaries during the quarterly consolidated period (Changes in certain specified
subsidiaries resulting in changes in scope of consolidation): None
Added: None

Excluded: None

(2) Adoptions of specific accounting methods for preparing quarterly financial statements: None
(3) Changes in accounting policies, changes in accounting estimates or restatements
1. Changes in accounting policies associated with revision in accounting standards: None
2. Changes in accounting policies other than 1. above: None
3. Changes in accounting estimates: None
4. Retrospective restatements: None
(4) Number of shares outstanding (common stock)
1. Number of shares outstanding at the end of period (including treasury shares)
As of November 30, 2021:
100,300,000
As of February 28, 2021:
2. Number of treasury shares at the end of period
As of November 30, 2021:
228,807

As of February 28, 2021:

3. Average number of shares during the period (cumulative six months)
As of November 30, 2021:
100,070,354
As of November 30, 2020:

100,300,000

232,954

100,065,438

Note: This flash report is exempt from quarterly review.
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
achievement of said forecasts cannot be guaranteed. Actual results be materially different from those in theforecast as a result of various factors. For preconditions of these financial forecasts and notes concerning theiruse, please refer to “1. Qualitative Information Regarding Quarterly Financial Results, (3) Explanation
Regarding Forward-looking Statements” on page 9.

Contents

1. Qualitative Information Regarding Quarterly Financial Results ·····························································

2(1) Explanation Regarding Consolidated Operating Results ······································································

2(2) Explanation Regarding Consolidated Financial Position ·····································································

8(3) Explanation Regarding Forward-looking Statements ···········································································

9

2. Consolidated Financial Statements and Main Notes ··················································································

10(1) Consolidated Balance Sheet ···············································································································

10(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ·················

12

Consolidated Statement of Income ······································································································

12

Consolidated Statement of Comprehensive Income ·············································································

13(3) Notes to Consolidated Financial Statements ························································································

14(Going Concern Assumption) ·············································································································

14(Notes to Significant Changes in the Amount of Shareholders’ Equity) ···············································

14(Additional Information) ····················································································································

141

1．Qualitative Information Regarding Quarterly Financial Results(1) Explanation Regarding Consolidated Operating Results
During the third quarter of fiscal 2021, nine months from March 1 to November 30, 2021, we continued totake rigorous prevention measures against the infection of the novel coronavirus and responded to new normal
demand by exerting concerted Group-wide efforts. Specifically, under the leadership of our Lawson Group
Sweeping Transformation Executive Committee, which was launched in September 2020 to realize “Challenge2025” formulated for 2025, the 50th anniversary of our establishment, we renovated our stores and revamped
our product lineups in Domestic Convenience Store Business in response to changes in the businessenvironment, and the whole Lawson Group endeavored to resolve medium- to long-term issues for sustainablegrowth, acquisition of new revenue opportunities and foster job satisfaction.
As a result, for the third quarter of fiscal 2021 on a consolidated basis, gross operating revenue increased to522,489 million yen (up 5.0% from previous fiscal year), operating income increased to 38,651 million yen(up 19.5% from previous fiscal year) and ordinary income increased to 39,440 million yen (up 30.3% fromprevious fiscal year). Profit attributable to owners of parent was 24,378 million yen (up 104.8% from previous
fiscal year).
We also focused on improving our group-wide internal control system and addressing operating risks basedon the 2021 Basic Policy for Improvement of Internal Control Systems. We will continue promoting internal
control going forward.
In addition, with a view to promoting the Sustainable Development Goals (SDGs) and focusing on
environmental, social and governance (ESG) practices in management, we established the Lawson Group
Human Rights Policy and Lawson Group Sustainability Policy in June and August 2021, respectively, andrevised the Lawson Group Environmental Policy in August.
Operating results by business segment were as follows.
(Domestic Convenience Store Business)
During the third quarter under review, the number of new COVID-19 cases showed a decreasing trend,
which resulted in the states of emergency and quasi-emergency being lifted nationwide in October 2021,
restrictions on social activities being eased, and the movement of people showing a gradual recovery trend.
Under such circumstances, Lawson carefully examined the business environment surrounding each store
and proceeded with store renovations to suit each of their respective situations in order to help them adapt tochanges taking place in the new normal business environment and better address customer needs.

By the endof November 2021, we had completed the renovation of some 1,669 stores, and are working to refurbish around
5,000 stores by the end of the fiscal year ending February 2022.
In store operation, we are striving to establish LAWSON stores as convenience stores endorsed by all ourcustomers. 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. In addition to further
strengthening our distinctive products that focus on taste and health, we are also working to provide heartfelt
customer service in our stores, and to strictly address environmental concerns such as reducing food loss, plastic
2

usage, and CO2 emissions, etc. As part of our efforts to reduce the use of plastics, we launched the first-everprivate brand mineral water sold in paper packaging in November 2021.

[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 items withhigh demand; and (3) keeping our stores and communities clean. In our efforts to respond to customer needs andincrease sales, we also focused on expanding our merchandise assortment to respond to changes in consumer
lifestyles and values. Furthermore, we kept up our initiatives to increase the profitability of franchise stores,
including helping them streamline their store operation and reduce costs associated with food waste and utility
expenses.

[Merchandising and Service Strategies]
Sales continued to surge in fresh foods, frozen foods, daily delivered foods, room temperature
Japanese/Western desserts, and alcoholic beverages, whose assortments we have been endeavoring to expand withthe aim of supporting the daily lives of customers. In the rice range, our “Korega BENTO” box lunch series, which
was revamped into a long-lasting chilled range in March 2021, continued to record steady sales during the third
quarter under review, and our “Kinshari Onigiri Rice Ball” series also enjoyed robust sales along with the modified
regular lineup of onigiri rice balls. Our original products consecutively became huge hits, exemplified by “Nama
Gateau Chocolat,” our new dessert product, and “Pari Chiki,” our new fast-food counter item, launched in
September and October 2021, respectively. Partly owing to customers having fewer opportunities to go out, theMachikado Chubo in-store kitchen service enjoyed especially strong demand for items offered in collaboration
with food service companies that provide delicious dishes from specialty restaurants as well as the “Local Bowl
Series” that responds to regional needs. Machikado Chubo in-store kitchens are installed at 7,464 stores as of theend of November 2021, achieving sales growth. In response to the ongoing high demand, we are installing the
kitchen at more stores.
Regarding food delivery services, for which needs have been growing, we started offering “menu” in
September 2021 in addition to the four services we already provide including Uber Eats.
As a result, the combined number of stores listed on food delivery services reached 2,492 in 41 prefectures asof November 30, 2021. In addition, Uber Eats delivers over-the-counter (OTC) drugs sold at 51 LAWSON storesin 12 prefectures.

3

[Breakdown of Sales by Merchandise Category at Chain Stores in Domestic Convenience Store Business]
Fiscal year

Product group
Processed foods

Previous fiscal year
From March 1, 2020
to November 30, 2020
Sales
Percentage(Millions of yen) of total (%)
877,164
53.5

Current fiscal year
From March 1, 2021
to November 30, 2021
Sales
Percentage(Millions of yen)of total (%)
903,417
53.9

Fast foods

350,52121.4

363,818

21.7

Daily delivered foods

260,81215.9

261,438

15.6

Nonfood products

151,701

9.2

148,2358.8

1,640,199

100.0

1,676,910

100.0

Total

[Store Development]
In opening new stores, the Group continued to focus on developing profitable stores.
During the third quarter under review, the total number of LAWSON, NATURAL LAWSON and LAWSONSTORE100 stores opened in Japan stood at 401 stores. Meanwhile, we closed a total of 180. As of the end of
November 2021, the total number of domestic stores was 14,697 *1. Based on the joint business agreement
concluded with POPLAR Co., Ltd. in September 2020, we converted 122 stores from its brand to the LAWSONPOPLAR or LAWSON brand stores from this year. Based on the comprehensive business alliance entered intowith H2O Retailing Corporation in May 2021, Lawson converted 84 station stores and convenience storesoperated by asnas Co., Ltd., an H2O Retailing Corporation Group company, from “asnas” stores into LAWSON
stores.
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 a wider
assortment of cosmetics and daily necessities than conventional LAWSON stores. The number of stores
offering non-prescription drugs has reached 258 stores (includes 49 pharmacy LAWSON stores equipped withdrug-dispensing pharmacies) as of the end of November 2021. Moreover, the number of stores offering nursing
care consultation services has reached 21 as of the end of November 2021. 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 339 as of the end of November 2021. Building on our expertisedeveloped through operation of in-hospital LAWSON stores, we will continue to support the lives of all peopleinteracting 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 select ingredients
as well as products produced in collaboration with renowned brand names. Meanwhile, our LAWSONSTORE100 stores, which are mini supermarkets in the size of a convenience store, offer high quality, safe andreliable fruits and vegetables with a focus on freshness, providing customers with their daily dietaryrequirements. The stores are visited by customers of all ages including children and the elderly, and particularly
single people and homemakers. As of the end of November 2021, we operate 137 NATURAL LAWSON stores
4and 669 LAWSON STORE100 stores.
*1 The numbers of store openings and closings and total number of stores in Japan include stores operated by Lawson, Inc. and threeequity-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, 2021

Change during
period13,654237

13,891

NATURAL LAWSON

143

(6)

137

LAWSON STORE100

679

(10)

669

14,476

221

14,697LAWSON

Total

Total stores as ofNovember 30, 2021

[Number of LAWSON stores by prefecture (As of November 30, 2021)]
Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Numberof stores

Hokkaido

678

Ibaraki

225

Kyoto

327

Ehime

212

Aomori

280

Tokyo

1,695

Shiga

155

Tokushima

135

Akita

183

Kanagawa

1,079

Nara

141

Kochi

139

Iwate

182

Shizuoka

279

Wakayama

154

Fukuoka527

Miyagi257

Yamanashi

137

Osaka

1,170

Saga

75

Yamagata

113

Nagano

174

Hyogo

693

Nagasaki

125

Fukushima

173

Aichi

722

Okayama

233

Oita

196

Niigata

227

Gifu

181

Hiroshima

292

Kumamoto

162

Tochigi

199

Mie

137

Yamaguchi

129

Miyazaki

111

Gunma

243

Ishikawa

104

Tottori138

Kagoshima

202

Saitama693

Toyama183

Shimane142

Okinawa
253
Total
Chiba
602
Fukui
107
Kagawa133
14,697(domestic)(Note) These figures include stores operated by Lawson, Inc. and equity-method affiliates, Lawson Kochi, Inc.,
Lawson Minamikyushu, Inc. and Lawson Okinawa, Inc.

As a result, Domestic Convenience Store Business posted gross operating revenue of 322,306 million yen (up0.6% from previous fiscal year) and segment profit of 25,546 million yen (up 4.2% from previous fiscal year).

(Seijo Ishii Business)
Seijo Ishii provides customers with well-selected, safe, and reliable foods under its philosophy of “Quality foodfor a quality life.” Operating diverse store formats including street-side stores and stores in station buildings andcommercial facilities, the supermarket chain leverages its distinguished product development expertise to offer
original products and food items made in-house under the Seijo Ishii brand. The number of directly operated Seijo
Ishii stores reached 169 as of the end of November 2021. Until the end of September 2021, street-side stores,
which captured the demand that would have been fulfilled by supermarkets had it not been for the intermittent
5declarations of states of emergency, and stores in station buildings and commercial facilities enjoyed strong
performance. However, after the most recent state of emergency was lifted in October 2021, sales slowed,
primarily due to the restoration of demand for eating out. Product wise, dishes produced in-house at our central
kitchen continued to enjoy robust sales driven by a range of measures. In addition, we introduced the Ponta
common point system at five Seijo Ishii stores on November 15, 2021. The system will be adopted at more
stores in phases. We are striving to elevate the brand power of Seijo Ishii by pursuing higher standards in our
product development expertise, know-how acquired as a manufacturing retailer, and retailing techniques.

As a result, Seijo Ishii Business posted gross operating revenue of 80,661 million yen (up 6.9% fromprevious fiscal year) and segment profit of 7,799 million yen (up 9.6% from previous fiscal year).

(Entertainment-related Business)
In our Entertainment-related Business undertaken by Lawson Entertainment, Inc., a large number of eventswere postponed, cancelled or restricted in terms of the number of admissions as a result of the states of
emergency and quasi-emergency being extended until the end of September 2021. Driven partly by the liftingof the states of emergency and quasi-emergency in October and the rising vaccination rates, concerts by popularartists and sporting events began to be held again, and the ticket transaction value continued to display arecovery trend, as in the first half of the year. We are also continuing with our efforts to expand ticket
transactions for online live performances, a fledgling market, while striving to further expand sales for our ecommerce business by putting our live commerce into full swing. In our product sales business, a total of 57
stores are in operation nationwide as of November 30, 2021. Stores are making efforts to expand earnings
through a range of measures including organizing store events and selling goods at concert venues.
United Cinemas Co., Ltd., an operator of cinema complexes, had been affected by the states of emergency
and quasi-emergency in applicable regions up until the end of September 2021, such as having to reduce seating
capacity by 50% and adopt shorter operating hours, but since October almost all theaters have resumed theirusual operations. As of November 30, 2021, 42 cinema complexes nationwide with 387 screens are operating.

As a result, Entertainment-related Business posted gross operating revenue of 46,891 million yen (up 10.0%
from previous fiscal year) and segment profit of 1,250 million yen (segment loss was 101 million yen inprevious fiscal year).
(Financial Services Business)
With respect to our Financial Services Business, we worked to expand our network of financial institution
partners and improve the Lawson Bank ATM service in our foundational ATM business. As of the end of
November 2021, the number of ATMs installed nationwide reached 13,580 (up 101 from previous fiscal year),with each ATM used 47.9 times a day on average. The total number of our financial institution partners reached
378 nationwide (up 252 from the previous fiscal year) with the addition of shinkin banks in April 2021. During
the third quarter under review, one new financial institution joined our partnership for the “smartphone ATM(QR code deposit/withdrawal)”*2 service, while our “ Immediate Account Settlement Service”*3 was expanded

6with the participation of two new partner financial institutions. In addition to the conventional needs to withdraw
cash, the use of our ATMs has been increasing, driven by the “ATM charge service,” where cash can be charged
at an ATM to “au PAY,” “WebMoney Prepaid Card,” or “PayPay” mobile payment apps. Regarding LAWSON
Ponta Plus credit cards issued by Lawson Bank, Inc, we are steadily expanding credit card membership by rollingout a range of promotional campaigns and strengthening promotional efforts at stores.
*2 A service where customers can deposit/withdraw cash or take out/repay a credit card loan at an ATM by using a smartphone app insteadof a bank card.
*3 A service that allows customers to top up their mobile payment app from their account with a financial institution by harnessing the
ATM network.

As a result, Financial Services Business posted gross operating revenue of 25,326 million yen (up 6.3% fromprevious fiscal year) and segment profit of 2,328 million yen (up 68.6% from previous fiscal year).
(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, where business is continuing to expand, the number of LAWSON storesexceeded 4,000 in September 2021, reaching 4,312 as of the end of November, up 968 from the end of the previous
fiscal year. In addition to opening new stores through our subsidiaries, we are also launching stores by concluding
mega franchise agreements with local retailers in different cities, as well as area license agreements—wherepartner companies serve as headquarters in designated areas and assume overall operation and development—inefforts to accelerate the expansion of business areas and the number of stores.
As a result, we are seeing an expansion of our store network in China and an increased recognition of Lawson
in the country, which has led to rises in the number of franchised store applicants, franchised store openings, anddirectly operated stores converting to franchise stores. We will work to offer our signature high-quality original
products including rice and dessert items, enhance the value of the Lawson brand in China, and increase earnings.
In other regions of the world, although some stores have suspended their operations in response to the spreadof COVID-19, all other stores are carrying out normal operations with rigorous infection prevention measures inplace, sustaining the daily lives of our customers as their most accessible store.

7

[Distribution of LAWSON Brand Stores Overseas by Region]
Number of stores(As of February 28,
2021)

Country/Region
China

Shanghai and surrounding area
(Shanghai, Zhejiang, Jiangsu)

China

Changeduring fiscal
year

Number of stores(As of November 30,
2021)

1,826

429

2,255

Chongqing

341

97

438

China

Liaoning (Shenyang, Dalian)

327

124

451

China

Beijing and surrounding area
(Beijing, Tianjin, Hebei)

215

80

295

China

Hubei (Wuhan, etc.)

441

65

506

China

Anhui (Hefei, etc.)

106

65

171

China

Hunan (Changsha)

65

45

110

China

Hainan (Haikou, etc.)

23

63

86

China

Subtotal

3,344

968

4,312

Thailand

140

16

156

Indonesia

68

-

68

Philippines

67

-

67

2

-

2

3,621

984

4,605

United States of America

HawaiiTotal

As a result, Overseas Business posted gross operating revenue of 55,878 million yen (up 30.5% fromprevious fiscal year) and segment profit of 1,853 million yen (segment loss was 188 million yen in previous
fiscal year).

(2) Explanation Regarding Consolidated Financial Position
Assets, liabilities and net assets at the end of third quarter of fiscal year 2021
Current assets decreased by 25,567 million yen from the end of the previous fiscal year to 665,243 million
yen, mainly reflecting a decrease of 38,732 million yen in cash and deposits, an increase of 6,029 million yen
in accounts receivable due from franchised stores, and an increase of 2,973 million yen in merchandise. Noncurrent assets decreased by 11,818 million yen from the end of the previous fiscal year to 662,799 million yen,mainly reflecting a decrease of 10,799 million yen in investments and other assets, a decrease of 6,710 million
yen in intangible assets, and an increase of 5,690 million yen in property and store equipment. Consequently,
total assets decreased by 37,386 million yen from the end of the previous fiscal year to 1,328,043 million yen.
Current liabilities decreased by 74,652 million yen from the end of the previous fiscal year to 693,101
million yen, mainly reflecting a decrease of 113,826 million yen in deposits received, a decrease of 80,000
million yen in current portion of long-term loans payable, and an increase of 106,353 million yen in current
liabilities-other due to the movement in call money. Non-current liabilities increased by 26,104 million yen
from the end of the previous fiscal year to 350,847 million yen, mainly reflecting an increase of 30,000 million
yen in long-term loans payable and a decrease of 5,579 million yen in lease obligations. Consequently, total

8

liabilities decreased by 48,548 million yen from the end of the previous fiscal year to 1,043,949 million yen.
Net assets increased by 11,162 million yen from the end of the previous fiscal year to 284,094 million yen,mainly reflecting an increase of 9,417 million yen in retained earnings and an increase of 1,682 million yen inforeign currency translation adjustments. Consequently, shareholders’ equity ratio was 21.0%, up from 19.6% asof the end of the previous fiscal year.

(3) Explanation Regarding Forward-looking Statements
Regarding the financial forecasts for the full fiscal year ending February 28, 2022, the financial forecasts
remain unchanged from those announced on October 7, 2021.

92. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheet
As of February 28, 2021 and November 30, 2021
(Millions of yen)

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
Leased assets-net
Other-net
Total property and store equipment
Intangible assets:
Software
Goodwill
Trademark right
Other
Total intangible assets
Investments and other assets: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

10Previous fiscal year
As of
February 28, 2021

Current 3rd Quarter
As ofNovember 30, 2021

402,584
46,385
16,621
20,657161,062
43,5192(20)690,811
690,811363,852
52,415
15,454
23,631
159,583
50,321(15)
665,243

191,977
19,044
131,779
24,838367,640

193,729
21,246
127,506
30,849373,33139,08838,2158,349
752
86,40635,72635,386
7,876
706
79,696

40,621103,030
33,48444,099(663)
220,571674,618
1,365,430

38,829103,417
29,54938,722(746)
209,772
662,799
1,328,043

(Millions of yen)

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 adjustment
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

11

Previous fiscal year
As of
February 28, 2021

Current 3rd Quarter
As ofNovember 30, 2021

127,486
42,320100,000
44,58490,798
4,078
246,110
4,818
107,557
767,754

139,289
39,67020,00045,043
95,821
3,427
132,284
3,655
213,910
693,101130,000
121,491
485

160,000
115,912
458

277

259

16,27835,694
20,516
324,743
1,092,498

17,051
36,41520,750350,847
1,043,949

58,50646,494
158,498(991)
262,50858,50646,495167,915(973)
271,944

1,782
(207)
3,684
(134)
5,123
333
4,965
272,931
1,365,430

1,544
(207)
5,366
(56)
6,646
368
5,134
284,094
1,328,043

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)For the third quarter of the fiscal year ended February 28, 2021 and the third quarter of the fiscal year ending
February 28, 2022
(Millions of yen)Previous 3rd Quarter
From March 1, 2020
to November 30, 2020
497,425
203,409139,248
64,161Gross 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
Dividend income
Gain on investments in investment partnerships
Employment adjustment subsidy due to novel
coronavirus disease
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 retirement of non-current assets
Impairment loss
Loss on novel coronavirus disease
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

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Current 3rd Quarter
From March 1, 2021
to November 30, 2021
522,489
216,946
148,398
68,548219,735
74,279294,015
358,176
325,820
32,356

222,62182,921
305,543
374,091
335,440
38,651

516
364

713
368

119

1,634

555

1,040

1,918
3,473

1,323
5,080

2,776
1,416
1,363
5,556
30,273

2,607
1,075
608
4,291
39,440

―
―

1,025
1,025

2,421
2,719
3,125
1,037
9,303
20,970
4,943
4,221
9,164
11,805(99)
11,904

961
2,105
639
510
4,217
36,248
7,775
3,978
11,75424,493
115
24,378(Consolidated Statement of Comprehensive Income)For the third quarter of the fiscal year ended February 28, 2021 and the third quarter of the fiscal year ending
February 28, 2022
(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

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Previous 3rd Quarter
From March 1, 2020
to November 30, 2020
11,805Current 3rd Quarter
From March 1, 2021
to November 30, 2021
24,493

3,597
(59)
135
3,673
15,478

(237)
1,760
77
1,600
26,094

15,632(153)

25,901
193

(3) Notes to Consolidated Financial Statements(Going Concern Assumption)
Not Applicable.

(Notes to Significant Changes in the Amount of Shareholders’ Equity)
Not Applicable.

(Additional Information)(Application of tax effect accounting for transition from consolidated taxation system to group tax sharing
system)The Company and certain domestic consolidated subsidiaries have calculated the amounts of deferred tax
assets and deferred tax liabilities in accordance with tax laws in effect before amendment based on thetreatment of Paragraph 3 of “Practical Solution on the Treatment of Tax Effect Accounting for the Transition
from the Consolidated Taxation System to the Group Tax Sharing System” (ASBJ Practical Issues Task
Force No.39, March 31, 2020) instead of applying the provision in Paragraph 44 of “Implementation
Guidance on Tax Effect Accounting” (ASBJ Guidance No.28, February 16, 2018), regarding the transition togroup tax sharing system established in “Act for Partial Amendment of the Income Tax Act, etc.” (Act No.8
of 2020), and items for which the non-consolidated taxation system has been reviewed in line with thetransition to the group tax sharing system.

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