Summary of Results for FY2022

Lawson, Inc.
April 14, 2023

Copyright (c) 2023 Lawson, Inc. All rights reserved.
Copyright (c) 2023 Lawson, Inc. All rights reserved.

Financial Results for FY2022
Masayuki Itonaga
Executive Managing Officer
Chief Financial Officer
Lawson, Inc.
Copyright (c) 2023 Lawson, Inc. All rights reserved.
Copyright (c) 2023 Lawson, Inc. All rights reserved.

Consolidated Financial Results for FY2022
Unit: Billions of yen

FY2021

FY2022

Results

Operating income
Ordinary income
ProfitResults

v.plan*1

YoY

47.0
47.5
17.9

55.0
53.4
24.6

+7.9
+5.8
+6.7

+2.0
+4.9
+2.6

101.1%
30.7%
14,656103.6%
31.0%
14,631+2.5%pt+0.3%pt- 25+0.6%pt- 0.1%pt- 75(Non-consolidated) excluding LAWSON STORE100 business
Existing-store sales (YoY)*2
Gross profit margin*2

Total no. of stores in Japan*3*1 Any differences v. plan in these documents are compared to the plan issued along with the announcement of FY2022 1H results in October 2022.
*2 These figures are sums of total LAWSON and NATURAL LAWSON operated by Lawson, Inc. Existing-store sales do not include the impact of tickets, etc.
*3 The number of stores is a total number of stores operated by the Lawson group.

1. Operating income：55.0 billion yen(1) YoY: In the Domestic CVS business, existing-store sales rose 3.6% YoY on the back of successful store refurbishments and marketing measures.
The gross profit margin increased by 0.3%pt and operating income expanded as we were able to offset sharply higher utility costs. Profit from ourOverseas business declined due to lockdowns in China, while our Entertainment-related business and Financial service businesses generated higher
profit. As a result, consolidated profit increased 7.9 billion yen YoY.
(2) v.plan : Operating profit rose 5.0 billion yen v. plan on a non-consolidated basis as YoY growth in existing-store sales at the Domestic CVS businesscame in 0.6%pt above plan. The Overseas business fell short of plan due to China lockdowns, etc. As a result, operating profit came in 3.0 billion
below plan for subsidiaries and 2.0 billion above plan on a consolidated basis.

2. Profit：24.6 billion yen(1) YoY: Increase due to decrease in store-related impairment losses, etc.
(2) v. plan: Store-related impairment losses came in lower than expected.
Copyright (c) 2023 Lawson, Inc. All rights reserved.

3

FY2022 Initiatives Review
FY2022
Consolidated
operating income

Unit: Billions of yen

Plan

Results

YoY

v.plan

53.0

55.0

+7.9

+2.0

Various measures

Progress

YoY

Charge feesfrom franchise stores, etc.

As captured daily demand through store refurbishments and product renewals, sales of in-store
kitchens foods and frozen foods increased. Furthermore, existing-store sales rose 3.6% YoY(+0.6%pt v.plan) on strong sales of over-the-counter fast food and rice products, which wereboosted by marketing measures such as the HAPPY LAWSON PROJECT and a recovery in people
flows.

+20.0

+4.5

Sweeping Transformation
Executive Committee
measures, etc.

Due to the careful selection of target stores, the 2,985 stores that were refurbished were less thanthe 3,500 stores planned, resulting in lower refurbishment costs.

-3.5

+1.0

Marketing measures,
New measures, etc.

We developed marketing strategies such as TV commercials and app coupons based on the HAPPYLAWSON PROJECT, but we controlled any rise in costs by rationalizing and replacing existing
marketing initiatives with the new ones. As a result, these costs came in lower than planned.

-1.0

+2.5

Electric utility expense, etc.

2H utility prices increased significantly on the back of higher electricity unit prices.

-6.0

-3.0

Subsidiaries

Subsidiaries declined YoY and v. plan primarily due to lower profits in China.
<Seijo Ishii> Although affected by strong COVID-induced stay-home demand in the previous
year, profit exceeded the plan due to strengthened measures.
<Entertainment-related> Profit rose on more active market in an environment without
restrictions on movement, but fell short of plan.
<Financial services>Exceeded plan on higher ATM usage.
<Overseas>Lower than planned. In China,1H profit fell due to lockdowns and restrictions and 2H
profit declined on the back of spreading infections once the government’s zero-COVID policy was
relaxed.

-1.5

-3.0

*Figures rounded to the nearest 0.5 billion for clarity*Any differences v. plan in these documents are compared to the plan issued along with the announcement of FY2022 1H results in October 2022.

+8.0

+2.0

Total

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v. plan4Factors affecting FY2022 consolidated operating income
approx.

+20.0

Unit: Billions of yen(v.plan +4.5)
Charge feesfrom franchise stores, etc.

approx.

-1.0(v.plan +2.5)
Marketing measures,
New measures, etc.
approx.

-3.5

approx.

-6.0(v.plan -3.0)
Electric utility
expense, etc.

FY2021
consolidated
operating income-1.5(v.plan -3.0)
Subsidiaries(v.plan +1.0)
Sweeping
Transformation
Executive Committee
measures, etc.

47.0

approx.

Subsidiaries
Existing-store sales(Results) (v.plan)
First half
+2.4%
+0.4%pt
Second half
+4.8%
+0.8%pt
Full year+3.6%+0.6%pt

Seijo Ishii
Entertainment-related business*
Financial service business*
Overseas business（China)(YoY) (v.plan)±0.0 +0.5+1.5 - 0.5+1.0 +0.5- 4.0 - 2.0*Segment profit*Figures rounded to the nearest 0.5 billion for clarity.
*Any differences v. plan in these documents are compared to the plan issued along with the announcement of FY2022 1H resultsin October 2022.

Copyright (c) 2023 Lawson, Inc. All rights reserved.

55.0

FY2022
consolidated
operating income

5FY2023 Full-Year Plan（Japanese GAAP：Reference figures）
Unit: Billions of yen

FY2023
Plan
Consolidated operating income
Domestic convenience store business
LAWSON (Included above)
Seijo Ishii businessEntertainment-related business
Financial service business
Overseas businessProfit（IFRS）*1
Dividends per share◼ LAWSON （Assumed conditions for the plan）

・Existing-store sales *2 YoY : 104.0%
・Gross profit margin*2：31.4％（+0.4％pt YoY）
・Store numbers*3: Opening 280, closure 270, net increase 10

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YoY
57.0
37.4
35.0
11.6
4.3
2.6
1.2
29.0

+1.9
-1.5
-0.1
+0.4
+0.4
-1.2
+4.2

FY2023(Plan)
200yenFY2022150yen*1 The Group has decided to voluntarily apply International Financial Reporting Standards(IFRS) for the consolidated financial statements in its Annual Securities Report effectivefrom the fiscal year ended February 2023.
*2 These figures are sums of total LAWSON and NATURAL LAWSON operated by Lawson, Inc..
Existing-store sales do not include the impact of tickets, etc.
*3 The number of stores is a total number of stores operated by the Lawson group.

6Factors affecting FY2023 consolidated operating income
Unit: Billions of yen
approx.

+19.0

approx.

-10.0

Charge fees
Marketing measures,from franchise stores, etc. New measures, etc.
approx.

-5.0

Electric utility
expense, etc.

approx.

-4.0

IT-related cost, etc.

55.0

approx.

+2.0

Subsidiaries

57.0
Existing-store sales(Plan)First half
+6.0%
Second half
+2.0%
Full year+4.0%

FY2022
consolidated
operating income
Copyright (c) 2023 Lawson, Inc. All rights reserved.

*Figures rounded to the nearest 0.5 billion for clarity

FY2023
consolidated
operating income(Plan)

7

FY2022 Review
andAction Plan for Lawson Group’s
Challenge 2025
Sadanobu Takemasu
President and CEO
Representative Director
Chairman of the Board
Lawson, Inc.
Copyright (c) 2023 Lawson, Inc. All rights reserved.
Copyright (c) 2023 Lawson, Inc. All rights reserved.

FY2022 Review

Copyright (c) 2023 Lawson, Inc. All rights reserved.
Copyright (c) 2023 Lawson, Inc. All rights reserved.

FY2022 Business environment■People flows started to recover after priority measures were removed in March■Removal of cap on number of people entering the country and launch of national travel support
measures helped boost the recovery in people flows from November
Population in motion (％)
10

New positive COVID cases (weekly average)

New positive cases (1,000 persons)Population in motion* trends (v. 2019 levels)

250

0

200
-10
-20

150

-30

100

-40
-50

50

-60
-70
*Population in motion: Population whose assumed place of residence is outside the municipality
Copyright (c) 2023 Lawson, Inc. All rights reserved.

Source: Regional Economy and Society Analyzing System (RESAS), Japan Cabinet Office10

Lawson Group Sweeping Transformation Executive Committee■In FY2022, accelerate implementation of pursuit of ideal store format project,etc. to improve daily sales

Lawson Group Sweeping Transformation Executive Committee
Daily sales improvement

Pursuit ofideal store format
Daily sales improvement

Machikado Chubo
in-store kitchens
Daily sales improvement

Product renewal
Daily sales improvement

MUJI introduction

Copyright (c) 2023 Lawson, Inc. All rights reserved.

Medium to long term

Customer-centric supply
chain reform
Medium to long term

Vendor distribution
reformMedium to long termGroup branding
Medium to long term

The No.1 recommendationacquiring

Medium to long term

Unified use ofGroup data

Operating companies

Medium to long term

Work motivation reform

SDG promotion11Lawson Group Sweeping Transformation Executive Committee-FY2022 results-■Pursuit of ideal store format and other projects improved daily sales up 1.9%

Daily sales
improvement

Project

Achievements and major initiatives

Pursuit of ideal store format
Machikado Chubo
in-store kitchens

Refurbished stores：7,290 stores（+2,985 stores）
Impact of improved
Stores with kitchens： 9,191 stores（+832 stores）
daily sales on all
Category sales up approx. 30% YoY
stores up
Frozen foods：Category sales up approx. 10% YoY
Daily foods：Category sales up approx. 5% YoY
1.9％Stores with MUJI products：9,621 stores（+9,511 stores）

Product renewal
MUJI introduction※Figures in parentheses represent the number of stores refurbished and introduced kitchens in FY2022

Medium tolong term

Project

Achievements and major initiatives

Customer-centric supply
chain reform
Vendor distribution reform
Unified use of Group data

Conduct experimental SA & AI-driven discount sales promotions at approximately
180 stores
Optimize store delivery diagram using AI
Start utilizing Group data in our marketing measures

Work motivation reform

Develop measures to improve job satisfaction through internal recruitment, etc.

Group branding
The No.1 recommendationacquiring

Develop Groupwide measures to improve brand image

Operating companies
Decarbonization activities(SDGs Committee)
Copyright (c) 2023 Lawson, Inc. All rights reserved.

Implementation of initiatives to improve customer evaluations
Initiatives to promote growth at each operating company
Pursuing initiatives promoting Lawson Blue Challenge 2050 !

12

Lawson Group Sweeping Transformation Executive Committee-Daily sales improvement■Cope with changed needs in the coronavirus pandemic through Lawson Group Sweeping
Transformation Executive Committee project

Daily sales
improvement

Launch of Lawson Group Sweeping
Transformation Executive Committee
Sep.2020▼

FY2019Cope with changed daily life
FY2020

FY2022

93.3％ v.2019

98.4％ v.2019

Change from
FY2019

Rice/noodles

100

87

91

-9

Over-the-counter fast foods/Machikado Chubo in-store
kitchens

100

84

104

+4

Desserts

100

104

105

+5

Delicatessen items/
Daily foods/Frozen foods

100

97

103

+3

Soft drinks

100

87

89

-11

Daily necessities

100

98

102

+2

Other

100

96

100

±0

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Each figure represents the ratio compared with FY2019

13

FY2022 Domestic convenience store business (1)-Daily sales at existing stores, number of customers, spending per customer■Achieved plan by implementing sales promotion measures focused primarily on ideal store
refurbishments and HAPPY LAWSON PROJECT

Daily sales【YoY】
Daily sales

Number of customers

103.6％

Spending per customer
108.4%
108.4%（Plan 103.0％）
Number ofcustomers

Spending per
customer

100.9%

102.7%■Ideal store refurbishment

100.7%✓ 7,290 stores by end February（FY2022 +2,985 stores）✓ Introduced Machikado Chubo in-store
kitchens, refined and expanded frozen
foods and other products

100%■HAPPY LAWSON PROJECT

103.1%

100.0%
97.7%

Mar.

Apr.

May

Jun.

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Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

✓ Broadcast TVCM. Strengthen store sales
promotion✓ Product renewal, implemented promotion
measures, such as Lawson app coupons

14

FY2022 Domestic convenience store business (2)–Franchise store profits–◼Rising daily sales offset higher utility costs, resulting in higher
franchise store profits<V. FY2019>
Per store

Per Franchise Owner

100%

FY2019Copyright (c) 2023 Lawson, Inc. All rights reserved.

FY2020

FY2021

FY202215

FY2022 Seijo Ishii/Entertainment-related business

Seijo Ishii

Entertainment-related<Operating income> 11.9 billion yen（Seijo Ishii Co., Ltd. non-consoidated）<Operating income> 3.9 billion yen（segment profit）（YoY＋1.6 billion yen v.plan -0.4 billion yen）

（YoY -0 billion yen v.plan＋0.3 billion yen）
Existing-stores sales（V.2019 levels）
115%

110%

Lawson Entertainment

United Cinemas

Ticket Sales（V.2019 levels）

Customer Attendance

150%

108.3%

113.5%

106.6%
105.3%（V.2019 levels）
100%

63.5%

100%

51.2%

67.9%

105%
50%

100%
FY2020

FY2021

FY2022

Sales slackened in the first half of FY2022 compared to the previous
year’s efforts to capture strong stay-home demand during the COVID19 pandemic. However, sales of Seijo Ishii’s own deli items and otherproducts proved firm in the second half and operating income wasmaintained at the same level as the previous year.
Copyright (c) 2023 Lawson, Inc. All rights reserved.

79.7%

50%

35.4%

0%

0%
FY2020

FY2021

FY2022

Profits rose after the enthusiastic
holding of concerts and other events
helped ticket sales recover beyond
FY2019 levels.

FY2020

FY2021

FY2022

Profits rose as spectator numbers
recovered gradually on the back ofstronger measures to boost customer
appeal and the release of some majorfilms.

16

FY2022 Financial services/Overseas business

Financial services<Operating income> 3.8 billion yen（Segment profit）（YoY ＋0.9 billion yen

Overseas（China）<Operating income> -2.1 billion yen（YoY -4.2 billion yen

v.plan ＋0.2 billion yen）

Average number of ATMs used (Per machine per day)
60
50

47.5

48.4

52.6

Number of convenience stores and Existing-stores sales YoY
6,000

5,000

43.1

v.plan -1.8 billion yen）

100.0%

102.0%

120%

105.4%

100%

40

4,000

30

3,000

94.0%
80%

2,000

20

60%
1,000

10

2,646

3,344

4,560

5,620

0

0
FY2019FY2020

FY2021

FY2022

Profit fell due to expansion of financial institutions affiliated withATM business* and increasing usage of ATM machines by
expanding services that make cashless payment apps charge
available.
*Financial affiliates increased by 6 from end Feb. to 384
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40%

FY2019FY2020

Number of convenience stores（As of end of Feb.）

FY2021

FY2022

Existing stores sales YoY（v. FY2019）

The number of stores in China was 5,620 as of end of Feb. 2023, exceeding 5,000
stores in July. The adverse impact of the blanket lockdowns imposed on Shanghai in
April and subsequent intermittent restrictions on movement imposed across China, andpositive cases increased due to relaxing zero-COVID policy in early December.
Profit fell because of the business environment proved severe throughout the year.

17

FY2022 Results（Consolidated）
Unit：Billions of yen

FY2021Results

FY2022
Results

YoY

Operating Income

47.0

55.0

+7.9

Ordinary Income

47.5

53.4

+5.8

Profit

17.9

24.6

+6.7

◼ FY2022 Domestic convenience store business
Existing-stores sales YoY 103.6％*1
Opening 228／Closure 253／Total number of stores 14,631*2*2 These figures are sums of total LAWSON and NATURAL LAWSON operated by Lawson, Inc. Existing-store sales do not include the impact of tickets, etc.
*3 The number of stores is a total number of stores operated by the Lawson group.
Copyright (c) 2023 Lawson, Inc. All rights reserved.

18

Action Plan for
Lawson Group’s Challenge 2025

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Copyright (c) 2023 Lawson, Inc. All rights reserved.

Lawson Group’s Challenge 2025 Overview

2025

Customers, society, friends’

50 th anniversary

No.1 recommended brandGroup Vision“New hubs ofrefreshment in every
community”

New convenience in practiceLawson Group Sweeping Transformation
Executive Committee
Work motivation, determined spirit, digital data
Promise 1
Superior taste

Copyright (c) 2023 Lawson, Inc. All rights reserved.

Promise 2
Human kindness

Promise 3
Environmental(Machi) friendliness

20

Growth strategy◼ Create and practice “New convenience,” and aim for No.1 recommended brandCommunity-based ×
individual customer
andindividual store-focused

FY2024FY2023

FY2025●Expand area company system nationwide●Thoroughly pursue ultimate product taste along with ample product ranges and inventory●Explore deeper store opening potential and diversify store formats

Lawson Group Sweeping Transformation Executive Committee
Vendor distribution reform●Optimize vendor frameworks and strengthen product appeal●Expand sales of frozen food and establish a frozen distribution model to spark competition among local vendors●Establish optimal delivery models (changes to 2 deliveries of chilled and temperature-controlled products, reduce CO2 emissions）

Customer-centric supply chain reform●Promote optimal ordering volumes for individual stores by introducing newsemi-automatic ordering, maximize profit on sales, reduce food loss

Pursuit of ideal store format 2.0●Promote environment-conscious stores, reduce electricity consumption, pursue labor-saving measures

Projects

Unified use of Group data

●Expand marketing business using data and owned media●No.1 recommendation from customers, society, colleagues

The No.1 recommendation acquiring

50th anniversary executive
Franchise model reform
Group branding●Plan and promote suitable events and communication to mark Lawson’s 50 th anniversary●Establish a sustainable new FC model●Improve Group brand value

Personnel system reform●Reform HR systems to focus on market value (by job type) and performance-based remuneration,
reform management training platform and job satisfaction measures

Internal structure reform●Introduce lean head office systems

Group growth investment
Copyright (c) 2023 Lawson, Inc. All rights reserved.

●Incubation business (delivery, ghost restaurants, nationwide OTC sales, kitchen cars, etc.),
Group businesses (Seijo Ishii, Entertainment-related, Finance services, Overseas)21

Growth strategy-Domestic convenience store business (Community-based × individual customer and individual store-focused)-■Aim for evolution of “Community-based × individual customer and individual store-focused”
through area company system, product & sales strategy, and store opening strategy
Expand area company system nationwide
Management
structure
Sales &
development
Product &marketingCorporate

Aim for ultimate chain-store management,
pursue double-axis policy of strengthening
product power and sales floor execution

Pursue execution
Transfer functions to area companies
Optimize regular products to each area
Train merchandisers and marketer
Support each area
Strengthen governance

Hokkaido
Company

Kitakanto
Company
ChugokuShikoku
Company

TohokuCompany

Kinki
Company

ShutokenCompany
Chubu
Company

KyushuCompany
Copyright (c) 2023 Lawson, Inc. All rights reserved.

Product & Sales strategy

8 areas

Products

Delicious taste
Pursue＋Product range, stock

Ample ranges, volumes
Improve execution

Store opening strategy
Continue opening a certain number of stores each yearby opening stores tailored to local characteristics
New locations

・Open dominant stores and develop logistics networks inareas with new business area
・Utilize sites abandoned by other industries, cooperatewith local authorities

Active opening of
hospital stores・Continue to expand store openings in large hospitals
・Try opening stores in medium-sized hospitals

Diversify formats

・Stores housed in bookstores, etc.
・Mobile sales, etc.

22

Growth strategy-Domestic convenience store business (Lawson Group Sweeping Transformation Executive Committee)-◼ Projects newly established and updated to practice “New convenience”
Vendor distribution reform

Customer-centric supply chain reform<Strengthen Product development andmanufacturing function><Introduce new semi-automatic ordering>・Optimize vendor system/Strengthen product appeal
・Expand sales of frozen food and establish a frozen
distribution model<Distribution reform>・Establish optimal delivery models(changes to 2 deliveries of chilled and temperature-controlled
products, reduce CO2 emissions）

Pursuit of ideal store format 2.0

・Improve demand forecasting accuracy by incorporatinglatest AI models
・Optimize product ranges and order volumes
・Realize models that rundown all products

Aim to maximize profits and reduce food loss

Unified use of Group data

<Environment-conscious stores><Utilize data and owned-media>

・POC and installation of environment-conscious stores reduce
electricity consumption and CO2 emissions

・Expand owned-media marketing
・Utilize store network to develop and provide high valueadded services<Labor-saving measures>

・POC of selling cigarettes and alcoholic drinks using selfcheckout system
Copyright (c) 2023 Lawson, Inc. All rights reserved.

23

Growth strategy -Seijo Ishii business◼ Accelerate store openings with the growth engine
セグメント利益
Segment
profitKey strategies
1

Store opening strategy(1)Expanding business area
Seeking new store format(2) Doubling production capacity by
new central kitchen(3) Considering overseas expansion(4) Partner strategy

2

Product strategy(1) Strengthening in-house items(2) Developing and procuring highvalue-added items

3 Digital transformation strategy(1) Strengthening e-commerce anddelivery services(2) Renewal of the website(3) Strengthening customer base
Copyright (c) 2023 Lawson, Inc. All rights reserved.

Unit: Billions of yen
Doubling production capacity

200
stores400
stores

10.3

11.2

11.1

11.6

2021

2022

2023

8.3

2019

2020

2025 (FY)

Number of stores
店舗数（RC＋FC）(Sum of company-operated and franchised supermarket store)

176

2019

187

2020

194

2021

202

2022

2025 (FY)24

Growth strategy -Entertainment-related business◼ Expand business fields to become a one-of-a-kind comprehensive entertainment distribution company

Key strategies
1

3

Ticketing business(1)Establish a ticket platformer
Vertical launch of high affinity travel business(consider alliances)(2)Expand exclusive sales through leading content
and media collaborations
ExpandbusinessdomainTravelTicketing

Cooperate withgroup companies

VerticallaunchFusion

M&A
Inboundtourism

4(1)Accelerate the evolution from watching to an
emotional experience
Differentiate through higher added-value theater facilities.
Increase theater occupancy rates.
(2)Strengthen sales, marketing, and promotion of
non-move products

CVS-related business(1) Promote “community-based x individual
customer and individual store-focused
operations” in stores housed in bookstores(2)Expand catalogue gift business scope andpromote DX

Japanese inn“accelerate”

Cruise around Japan
Overseas tour
Activity

Evolve OTA
Entertainment
tour brandCinema complexes businessExpress bus
Rental car
API integration
Ticketing for foreign voyage
Hotel booking site

Maximizemonetization
utilize group
resource

Segment profit

Livecommerce
Lawson Ticket

NFT

LawsonTravel Printing
TicketingUnitedCinemaDigitallottery

Unit: Billions of yen
5.3

2 Product sales and service business(1) Strengthen content procurement: video, music,
books, goods, etc.
(2)Accelerate online-merge-offline(3)Evolve stores: Expand product lineup to satisfy needs
Copyright (c) 2023 Lawson, Inc. All rights reserved.

3.9

4.3

2022

2023

2.2
-0.2
2019

2020

2021

2025

(FY)

25

Growth strategy -Financial services business◼ Strengthen ATM business and consider the launch of new retail business
Key strategies
1

2

ATM business(1)Growth joint ATM
business
・Provide value that
benefits users by expanding
partner financial institutions
and business partners(2)Expand ATM numbers
・Encourage the installationof ATMs outside retail storesand other outlets by utilizing
A joint ATM installed together with JA Shinmiyagi
business channels withon the road adjacent to station in March 2021
partner banks

New retail business

Consider launching a new retail business・Aim to offer “necessary financial services when customers need them” that are
timed to suit customers’ different life stages, something that conventional financial
services don’t offer

Segment profit

Average number of ATMs used (per machine per day)
52.6

Unit: Billions of yen

55.3

3.0

48.4

47.5

3.8
2.9

2.6

1.7

43.1

2019

2020

2021

Copyright (c) 2023 Lawson, Inc. All rights reserved.

2022

2023

2025

(FY)

2019

2020

2021

2022

2023

(FY)

26

Growth strategy -Overseas business◼ Aim to open 10,000 stores in total in China, accelerating the expansion of the number of stores◼ Aim to open 3,000 stores in total in Asia-Pacific area, accelerating the expansion of the number of stores
1

Store opening strategy

Key strategies(China)(1) Grow by accelerating store openings in new areas(2) Expand scale and improve profit margins in existing store areas

2

Operating income

Product strategy

Make hot-selling items more popular by strengthening
private brand products and improving quality of basic items

3

Digital transformation strategy(1) Expand delivery services, OMO, and e-commerce(2) Promote digital transformation in sales, products, anddevelopment field

1

2.0
-0.7
-0.2
2019

0.7
-0.1

Key strategies(AP)

Product strategy(1) The Philippines, Thailand
・Expand private brand products, strengthen fast foods, strengthen
vendor policy(2) Indonesia ・Support development of new products

Copyright (c) 2023 Lawson, Inc. All rights reserved.

1.5
-2.1

-0.1

0.1
-0.9

2020

Store opening strategy(1) The Philippines
・Extend high daily sales/high rent urban model to include
medium daily sales/low rent suburban model・Accelerate highly profitable individual FC, open new stores invarious formats and locations(2) Thailand, Indonesia
・Differentiate. Cooperate with railways and other industries

2

Over 10

Unit: Billions of yen

2021
China

2022

2023

2025 (FY)

Asia-Pacific

Number of stores
10,000

2,646
272
2019

3,344

4,560

5,620

3,000

277

302

540

2020

2021

2022

China

2025

Asia-Pacific*Figures of FY2019 to FY2022 are the results of the end of February in each fiscal year

(FY)

27

Business portfolio strategy -Overview◼
◼
◼

Base on the policy “Improve corporate value,” “Balance growth investment and shareholder returns,” and “Ensure growthfor individual subsidiaries and the overall Group”
Fundamentally strengthen our core Domestic CVS business
Seek to increase earnings by investing in areas that generate high group synergies

Growing fieldHigh

Seek group synergy■Overseas business・10,000 stores in China
・3,000 stores in Asia-Pacific area

Pillar of revenue
Evolution of core business

Overseas■Domestic CVS and other businesses＜”New convenience in practice,” Sustainable business model＞

Entertainment-related・In-store kitchen ・Frozen foods ・Collaborative developmentwith MUJI ・Expand delivery services ・New semi-automaticordering ・Marketing business ・New business format■Entertainment-related business Make the businesses
pillar of revenue ■Seijo Ishii business・New service
・Expand digital field and consider alliancesfor FY2025

Growth■Financial Services business・Create customer value
by new financial services

Financialservices

Incubation
Discover and nurture fledging sources of growth over thelong term

Non-core areas
Low

Replace assets depending on their strategic fit, potential
growth and profitability

Seijo Ishii

・Store openings in Japan ・Strengthen in-house items
・EC business ・Store openings overseas

Strengthen corebusiness intensively■Domestic CVS

・Refurbish stores ・Labor- and energy-saving stores
・Pursue delicious taste, reform supply chain management
・Strengthen local products ・Invest in IT system to update
・SDGs, work motivation reform

Basement of revenue

Seeds of growth
Low

Copyright (c) 2023 Lawson, Inc. All rights reserved.

Domestic
convenience
store

RevenueHigh

28

FY2025 Performance indicators◼ Aim to achieve FY2025 Performance indicators, growing Domestic convenience store businessand the other businesses

FY2025 Performance indicators

ROE:15% or higher

EPS:500yen or higher

Over 100 billion yen

Segment profit

15% or higher

andConsolidated operating income
Approx. 60%
55.0
billion yen

EPS

Domestic CVS

57.0
billion yen

500 yen or higher

8.9%
37.4

39.0

ROE

246 yenApprox. 40%

9.1%

260 yen*

Seijo Ishii

1.2 Entertainment-related
2.6 Financial services
Overseas
4.3
11.6

3.8
3.9

2022

11.1
-3.0

2023

2025

(FY)

2022

2023

2025

(FY)

*289 yen based on IFRS
成城石井

エンタテインメント関連

金融関連

海外

国内コンビニエンスストア

FY2022 results and FY2023 plan are based on Japanese GAAP. FY2025 figures are based on IFRS.

Copyright (c) 2023 Lawson, Inc. All rights reserved.

29

Shareholder return policy◼ Set a minimum of 200 yen for FY2023 and seek to increase dividends◼ Strengthen shareholder returns by gradually increasing dividends through FY2025➢ Changed dividend policy in FY2019 to strengthen franchise owner support➢ Strengthened FC support from FY2020 to promote FC profit-focusedmanagement

8.9%

7.3%

15%
or higher

9.1%

6.6%

➢ Head office and FC profitability improved through measures designed by our
Sweeping Transformation Executive Committee, etc.

250 yen
225 yen➢ Strengthen shareholder returns by aiming for EPS of 500 yen and ROE of 15%

200 yen
3.2%<Dividends for the next 3 years>
Dividends per share

FY2023

Minimum 200 yen

FY2024

Minimum 225 yen

FY2025

Minimum 250 yen

150 yen 150 yen 150 yen 150 yen

Payout ratio(consolidated)

Target 50%
2019

2020

2021

2022

2023

Dividends per share
Set a cumulative total payout ratio target for FY2023 to FY2025 of 70%,
and consider agile and flexible additional returns
Copyright (c) 2023 Lawson, Inc. All rights reserved.

2024

2025 (FY)ROERegarding ROE FY2019 to FY2022 results and FY2023 plan are based onJapanese GAAP and FY2025 figures are based on IFRS.

30

Initiatives for ESG

Copyright (c) 2023 Lawson, Inc. All rights reserved.
Copyright (c) 2023 Lawson, Inc. All rights reserved.

Lawson Blue Challenge 2050！

2025

2030

50 th anniversary

SDGs targets

Reducing CO2 emissions
CO2 emissions per store

Reducing plastic use※Reducing plastic containers
and packaging use

15％

Reduce by
v.2013 levels

15％

Reduce by
v.2017 levels

Reducing plastic use

Reduce by

50％

Reduce by

25％
v.2018 levels

Copyright (c) 2023 Lawson, Inc. All rights reserved.

Reduce by

30％

50％
100％

Reduce by

50％

v.2018 levels

Lawson Blue Challenge 2050 !
—Save our blue planet!—

100％
v.2013 levels

v.2017 levels※Lawson’s original products
Eco-friendly materials

Reduce by

Reducing food loss

Environmental
visionv.2013 levels

Reduce by

Reducing plastic shopping bags use

2050※Lawson’s original products Eco-friendly materials

100％

used

used

Reduce by

100％
v.2018 levels

32Environmental and social initiatives FY2022
Reducing food loss
Sell-out operations(encouragecustomers to buy
from the front of
the shelf, discounts)

Reducing plastic use

Reducing CO2 emissions
・Introduce energy-saving

Gradually introducing shorter
spoon and forks handles andhandles with holes in them, as
well as wooden spoons

equipment
CFC-free refrigerators
Life-cycle refurbishment
Renovate stores that use large amounts of energy

・Utilize the function to automatically
restore the air conditioner temperature
setting after a manual change
・Energy-saving measures (temperature
settings, etc.)

Expect to reduce plastic use
by approx. 67 tons/year

Support for disabilities
Create stores that offer fun, safe shopping
Support for hearing
disabilities⚫
⚫

Install instructions withthe ear mark label on
checkout counters
Make the data available
to the general public

Copyright (c) 2023 Lawson, Inc. All rights reserved.

Promote active participation
Collaborative projects with artists with disabilities

Art toilets

Designer cupsfor MACHI café

33

Newly launched initiatives
環境・社会への取り組み ③2022年度下期の主な取り組み
Model Store Demonstration

GREEN LAWSON（future format stores)

Experiment
Reduce electricity consumption by 40%
and CO2 emissions by 55% v. FY2013

The experimental store that consolidates over 20 sustainablemeasures and responds to changes in MACHI and the diverse customer
needs.

⚫ Stores where you can work proactively without restrictions
using avatars⚫ Stores that seek to save labor and offer warm communication
through DX⚫ Install glass or acrylic doors on approximately 80% of
the store's refrigerated and frozen food showcases.
⚫ Install solar panels⚫ Planet-friendly storesthat reduce CO2
emissions and plastic
use
Save labor with selfcheckouts. Support
customers with avatars

Reduce electricity charges byroughly 1 million yen per store
Seek to standardize from March 2024

⚫ Planet-friendly stores that aim for zero
Shopping basket made fromlunchbox waste
recycled plastic

Only sell frozen lunchboxes
or lunchboxes made in-store
Copyright (c) 2023 Lawson, Inc. All rights reserved.

・Install chilled and frozen foodshowcases with panel doors
・Stop handing out plastic bags
or cutlery, …etc.

Glass-paneled refrigerated
showcase

Acrylic-paneled refrigerated
showcase

34

Progress Toward 2030 Targets for Environmental Initiatives
2030 target
2022
preliminary results

CO2 emissions
per store V. 2013 levels

Plastic use
V. 2017 levels

30%

Reduction of 50％

Reduction of

Reduction of 27.1％

Reduction of 24.8%

Food Loss
V. 2018 levels
Reduction of50％

Reduction of 23.1%

CO2 emissions

KPI
50%

2013

Initiatives

2025

2030

New measures
・GREEN LAWSON: OP cases with panel
doors
・Thoroughly implement 10 energy-saving
articles・Introduce energy-saving equipment instores that use large amounts of energy
Ongoing measures
・Introduce energy-saving equipment
through life-cycle renovations

Copyright (c) 2023 Lawson, Inc. All rights reserved.

2017

2025

2030

New measures
・Trial charging for cutlery
・Trial introduction of reusable cups
Ongoing measures
・Changing/simplifying shape of containers andpackaging・Switch to environment-conscious materials(paper lunchbox containers, etc.)

2018

2025

2030

New measures
・Experimenting with the use of expired
products
・Discount sales of desserts through Cookpad
Mart・Donation of fast food using quick freezing
Ongoing measures
・Improve ordering accuracy
・Thorough pursuit of sell-out operations

35

Cautionary Statement
This presentation contains forward-looking statements and forecasts regarding the future plans, strategies and performances of
Lawson and its subsidiaries and affiliates. These statements and forecasts are not historical facts. They are expectations based onassumptions and beliefs derived from information currently available to the Company and are subject to risks and uncertainties
including, but not limited to, economic trends, heightened competition in the domestic convenience store sector, personal
consumption, market demand, the tax system and other legislation. As such, actual results may differ materially from estimates.
Figures in this presentation have been rounded down.
Copyright (c) 2023 Lawson, Inc. All rights reserved.
Copyright (c) 2023 Lawson, Inc. All rights reserved.