Flash Report on the Consolidated Financial Results [IFRS]
for the First Quarter of the Fiscal Year Ending February 29, 2024
July 11, 2023
Listed Company Name: Lawson, Inc.
Tokyo Stock Exchange
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: July 14, 2023
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 first quarter ended May 31, 2023 (from March 1, 2023 to May 31, 2023)(1) Consolidated operating results (cumulative)
Note: Percentages represent increases (decreases) compared with the corresponding period of the previous fiscal
year.
Gross operating
revenue
For the first Millions
quarter endedof yenMay 31, 2023 264,100
May 31, 2022 236,065

%
11.9
－

Core operating
profitProfit before tax

Millionsof yen26,246
16,012Millionsof yen24,041
13,865%
63.9－

Basic earnings per
share

Diluted earnings per
share

For the firstquarter ended
May 31, 2023

Yen

Yen

160.83160.70

May 31, 2022

83.73

83.66

%
73.4
－

Profitattributable toowners ofparentMillions%of yen16,095
92.1
－
8,379

ProfitMillionsof yen16,141
8,311

%
94.2
－

Total
comprehensive
incomeMillionsof yen16,958
10,669Note: “Core operating profit” is a profit indicator for operating income under Japanese GAAP that is calculated
by subtracting the cost of sales and selling, general and administrative expenses from gross operating
revenues.
(2) Consolidated financial position

As of
May 31, 2023
February 28, 2023

Total assets

EquityTotal equity
attributable to ownersof parent

Millions of yen
2,372,300
2,242,421

Millions of yen
263,311
253,858

Millions of yen
259,310
249,941

Ratio of equity
attributable to ownersof parent to total
assets
%10.9
11.1

2. Dividends
Annual dividends per share

1Q

1H

3Q

Year-end

Total

2022 fiscal year

Yen
－

Yen
75.00

Yen
－

Yen
75.00

Yen
150.002023 fiscal year－
100.00－100.00200.002023 fiscal year (forecast)

Note: Revision of the most recent dividends forecast: None

%
58.9
－

3. Forecast of consolidated operating results for 2023 fiscal year (from March 1, 2023 to February 29, 2024)
Note: Percentages represent increases (decreases) compared with the corresponding period of the previous fiscal
year.
Gross operating revenue

Core operating profit

Profit attributable toowners of parent

Basic earnings
per share

Millions of yen%

Millions of yen%

Millions of yen%

Yen

1H of 2023 fiscal year

530,000－

34,500－17,500－174.862023 fiscal year

1,060,000

6.0

64,000(0.5)

29,000(2.4)

289.77

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) Changes in accounting policies, changes in accounting estimates
1. Changes in accounting policies required by IFRS: Yes
2. Changes in accounting policies other than 1. above: None
3. Changes in accounting estimates: None
Note: For details, please refer to “2. Condensed Quarterly Consolidated Financial Statements and Main
Notes, (5) Notes Concerning Condensed Quarterly Consolidated Financial Statements (Significant
Accounting Policies)” on page 17.
(3) Number of shares outstanding (common stock)
1. Number of shares outstanding at the end of period (including treasury shares)
As of May 31, 2023:
100,300,000
As of February 28, 2023:
2. Number of treasury shares at the end of period
As of May 31, 2023:
221,628
As of February 28, 2023:
3. Average number of shares during the period (cumulative three months)
As of May 31, 2023:
100,078,265
As of May 31, 2022:

100,300,000
222,962
100,073,202

Note: The Flash Report on the Consolidated Financial Results is not subject to audit.
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, please refer
to “1. Qualitative Information Regarding Quarterly Financial Results, (3) Explanation Regarding Forwardlooking Statements” on page 8.

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···········································································

8

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

10(1) Condensed Quarterly Consolidated Statement of Financial Position ····················································

10(2) Condensed Quarterly Consolidated Statement of Profit and Loss and Condensed Quarterly
Consolidated Statement of Comprehensive Income ··············································································

12

Condensed Quarterly Consolidated Statement of Profit and Loss ······················································

12

Condensed Quarterly Consolidated Statement of Comprehensive Income ·········································

13(3) Condensed Quarterly Consolidated Statement of Changes in Equity ····················································

14(4) Condensed Quarterly Consolidated Statement of Cash Flows ······························································

16(5) Notes Concerning Condensed Quarterly Consolidated Financial Statements ········································

17(Going Concern Assumption) ·············································································································

17(Significant Accounting Policies) ······································································································

17(Segment Information) ······················································································································

171

1．Qualitative Information Regarding Quarterly Financial Results(1) Explanation Regarding Consolidated Operating Results
During the first quarter of fiscal 2023, from March 1 to May 31, 2023, we made concerted Group-wide efforts
to realize the “Lawson Group Challenge 2025” medium-term management vision, while society shifted toward a
post-COVID world driven primarily by the downgrade in the categorization of COVID-19 to Class 5, which
includes seasonal flu. Specifically, we undertook various measures under our Lawson Group Sweeping
Transformation Executive Committee, which was launched in September 2020, and the whole Lawson Group
collectively endeavored to resolve medium- to long-term issues for sustainable growth, acquire new revenue
opportunities and foster job satisfaction. Focusing on community, individual customers, and individual stores, we
expanded a company system in eight areas across Japan and transferred authority and functions from theheadquarters to the frontline stores with the aim of facilitating our organizational structure to more vigorously
pursue the creation of customer value at stores where we are close beside our customers. We are undertaking
various initiatives under this new structure.
As a result, during the first quarter of fiscal 2023 on a consolidated basis, gross operating revenue increased to
264,100 million yen (up 11.9% from previous fiscal year) and profit before tax increased to 24,041 million yen(up 73.4% from previous fiscal year). Profit attributable to owners of parent was 16,095 million yen (up 92.1%
from previous fiscal year).
The Lawson Group has prepared its consolidated financial statements in compliance with IFRS from end of
previous fiscal year, and the figures for the first quarter of the previous fiscal year have also been restated inaccordance with IFRS for comparative analysis.
We also focused on improving our group-wide internal control system and addressing operating risks based on
the 2023 Basic Policy for Improvement of Internal Control Systems. We will continue promoting internal control
going forward.
Operating results by business segment were as follows.

(Domestic Convenience Store Business)
During the first quarter under review, a general increasing trend was seen in the movement of people. Against
this backdrop, each area company reinforced their sales floors with a particular focus on the scope of merchandise
assortment and the quantity of inventory by building on the foundation established by the Lawson Group
Sweeping Transformation Executive Committee, which has been proceeding with store renovations andexpanding the merchandise assortment of frozen foods and other daily necessities. As of the end of May 2023,
11,371 stores have introduced MUJI products, which began full-scale introduction in the previous year. Also, as
we work our way toward 2025, our 50th anniversary year, we continue to expand HAPPY LAWSON PROJECT!
with the aim of creating “new hubs of refreshment in every community,” and promoted measures to fulfill thethree promises of our business policy-“Superior taste,” “Human kindness,” and “Environmental (Machi)
friendliness”-in an effort to operate LAWSON stores endorsed by all our customers.
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 we are continuing with our environmentally friendly2measures such as reducing food loss, plastic usage, and CO2 emissions.
[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. In our efforts to increase sales, we also
focused on expanding our merchandise assortment to respond to changes in customer lifestyles and values.
Furthermore, we kept up our initiatives to increase the profitability of franchise stores, including helping themstreamline their store operation and control costs associated with food waste and utility expenses.
[Merchandising and Service Strategies]
Sales continued to surge in fast-food counter items, soft drinks and the rice range, products offered by the
Machikado Chubo in-store kitchen service, and the cosmetics range driven by an increase in the movement ofpeople. In the fast-food counter range, sales continued to surge in “Kara-age-kun” chicken nuggets of new
flavors. In the rice range, sales continued to surge in rice bowls such as the renewed “Kinshari Onigiri RiceBall” series. In the Machikado Chubo, we saw strong performance for regular items such as the Donburi ricebowls as well as deli items and box lunch items in which rice is packed separately. In the cosmetics range, newbrand products jointly developed with a popular cosmetic brand enjoyed a growth in sales, as well as the MUJI
product range, which is currently being introduced at more stores.
In food delivery service, the combined number of stores listed on 4 food delivery services such as Uber Eats,reached 3,676 in 46 prefectures as of May 31, 2023. In addition, Uber Eats delivers over-the-counter drugs soldat 92 LAWSON stores in 17 prefectures.
[Breakdown of Sales by Merchandise Category at Chain Stores in Domestic Convenience Store Business]
Previous fiscal year
From March 1, 2022
to May 31, 2022

Current fiscal year
From March 1, 2023
to May 31, 2023

Sales

Percentage

Sales

Percentage(Millions of yen)of total (%)(Millions of yen)of total (%)

Processed foods

304,01054.3

318,833

53.7

Fast foods

123,22522.0

133,282

22.4

Daily delivered foods

86,336

15.4

89,635

15.1

Nonfood products

46,337

8.3

52,2048.8

559,910100.0

593,957

100.0

Fiscal year

Product group

Total[Store Development]

In opening new stores, the Group continued to focus on developing profitable stores.
During the first quarter of fiscal 2023, the total number of LAWSON, NATURAL LAWSON and LAWSONSTORE100 stores opened in Japan stood at 61 stores. Meanwhile, we closed a total of 81. As of the end of May
2023, the total number of domestic stores was 14,611 *1.
In an effort to establish convenience store models catered to an aging population and a trend toward self-3

treatment, 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
over-the-counter drugs has reached 298 stores (includes 49 pharmacy LAWSON stores equipped with drugdispensing pharmacies) as of the end of May 2023. Moreover, the number of stores with nursing care consultation
desks for seniors has reached 19 as of the end of May 2023. Furthermore, we have also been expanding our chainof “in-hospital LAWSON stores,” which feature strengthened focus on medical, sanitary and nursing supplies in
addition to merchandise and services offered at standard convenience stores. The number of such stores hasreached 340 as of the end of May 2023. 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.
Our NATURAL LAWSON stores, which are popular among customers for supporting their beauty, health, andcomfortable lifestyles, offer an exclusive selection of finely picked items of value, including food made withhealthy ingredients and environmentally friendly detergents and cosmetics. Meanwhile, our LAWSONSTORE100 stores consistently offer safe and high-quality fruits and vegetables with a focus on freshness anddaily necessities, supporting customers’ daily dietary lives by helping them plan their meals. The stores are visitedby customers of all ages including children and the elderly, and particularly single people and homemakers. As ofthe end of May 2023, we operate 131 NATURAL LAWSON stores and 659 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 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, 2023
LAWSON

Change during
fiscal year

Total stores as of
May 31, 2023

13,839(18)

13,821

NATURAL LAWSON

131

－

131

LAWSON STORE100

661

(2)

659

14,631(20)

14,611

Total

4

[Number of LAWSON stores by prefecture (As of May 31, 2023)]
Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Numberof stores

Hokkaido679

Ibaraki

213

Kyoto

326

Ehime

217

Aomori

277

Tokyo

1,664

Shiga

154

Tokushima

135

Akita

177

Kanagawa

1,063

Nara

134

Kochi

138

Iwate

180

Shizuoka

276

Wakayama

152

Fukuoka

520

Miyagi

258

Yamanashi

134

Osaka

1,194

Saga

77

Yamagata

108

Nagano

167

Hyogo

696

Nagasaki

122

Fukushima

169

Aichi

719

Okayama

244

Oita

202

Niigata

224

Gifu

177

Hiroshima

299

Kumamoto

162

Tochigi

197

Mie

135

Yamaguchi

127

Miyazaki

110

Gunma

243

Ishikawa

102

Tottori137

Kagoshima

200

Saitama695

Toyama177

Shimane

140

259

Chiba

596

Fukui

104

Kagawa132

Okinawa
Total(domestic)

14,611(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 181,455 million yen(up 8.1% from previous fiscal year) and segment profit of 19,967 million yen (up 52.9% from previous fiscal
year).
(Seijo Ishii Business)
Seijo Ishii Co., Ltd provides customers with well-selected, and highly original foods under its philosophy of“Quality food for a quality life.” Operating diverse store formats including street-side stores and stores in stationbuildings and commercial 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 Co., Ltd stores reached 177 as of the end of May 2023. Existing store sales decreased
year on year, but sales at stores in office buildings recovered from the sluggish sales resulting from the COVID19 pandemic. Product-wise, dishes produced in-house at Seijo Ishii’s central kitchen recorded steady sales. In
April 2023, “SEIJOISHII BAKERY,” specializing in bakery items, opened in Osaka City as part of our efforts toopen stores with an innovative new format. We will continue striving to elevate the brand power of Seijo Ishii bypromoting the sustainable development of products of value, effective promotional campaigns, and publicity
activities as a manufacturing retailer eager to send messages out to consumers.

As a result, Seijo Ishii Business posted gross operating revenue of 27,784 million yen (down 0.8% fromprevious fiscal year) and segment profit of 3,242 million yen (down 9.3% from previous fiscal year).

5

(Entertainment-related Business)
With respect to our ticketing business in our Entertainment-related Business undertaken by Lawson
Entertainment, Inc., concerts, sports, leisure and other events continued to enjoy brisk demand. Under suchcircumstances, we focused our efforts on securing an expanded lineup of events in each genre with the aim ofcapturing the increased demand, which resulted in a year-on-year increase in our ticket transaction value for the
first quarter under review. Furthermore, sales for our product sales business at HMV music/video software storesand others also showed a recovery trend driven by an increase in the movement of people. We are working to
expand the scope of merchandise we handle to include entertainment and cosmetics goods. The number of storeshas reached 55 as of May 31, 2023, including HMV stores, HMV&BOOKS, which markets books, CDs andDVDs, and HMV record shop stores specializing in analog records.
During the first quarter under review, United Cinemas Co., Ltd., an operator of cinema complexes, attracted
more moviegoers and generated higher sales than in the same period of the previous fiscal year as a result of
releasing much-talked-about movies as well as the long holiday in May. We also stepped up our efforts in theatercommercials (theater media business) and theater rental business. As of May 31, 2023, 44 cinema complexes
nationwide with 399 screens are operating.

As a result, Entertainment-related Business posted gross operating revenue of 20,985 million yen (up 24.0%
from previous fiscal year) and segment profit of 1,927 million yen (up 47.4% from previous fiscal year).
(Financial Services Business)
With respect to our Financial Services Business, we endeavored to offer an expanded range of new services
through Lawson Bank, Inc.’s ATMs and ATM settlement network. As of the end of May 2023, the number ofATMs installed nationwide reached 13,527, with each ATM used 55.1 times a day on average. The total numberof our financial institution partners reached 387 nationwide. We now have seven partners for the “smartphone
ATM (QR code deposit/withdrawal)”*2 service, 23 for the “Immediate Account Settlement Service”*3 (18financial institutions and five other service operators), and nine for international money transfer cards. In addition
to conventional demand for cash deposit and withdrawal services, charging to cashless payment services has also
contributed to the increased use of ATMs, etc.
Regarding LAWSON Ponta Plus credit cards issued by Lawson Bank, Inc, we are steadily expanding credit
card membership by rolling out 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 usinga smartphone app instead of a bank card. “smartphone ATM” is a registered trademark of Seven Bank, Ltd.
*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 8,867 million yen (up 2.2% fromprevious fiscal year) and segment profit of 892 million yen (down 9.7% from previous fiscal year).

6

(Overseas Business)
With regards to Overseas Business, the Group’s operating companies have developed LAWSON stores in
the People’s Republic of China, Thailand, Indonesia, the Philippines, and the United States of America(Hawaii).
The number of LAWSON stores in the People’s Republic of China, reached 5,788 as of the end of May
2023, up 168 stores from the end of 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-where partner companies serve as headquarters in designatedareas and assume overall operation and development-in efforts to accelerate the expansion of business areas
and the number of stores. Meanwhile, the movement of people has been showing a phased recovery startingwith cities where infection numbers have peaked from the end of 2022 to early January of 2023, which has
resulted in a decline in the number of stores suspending their operations or operating with shorter hours and arecovery trend in daily sales. 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 by strengthening ourdelivery business.
With regard to regions other than China, sales increased due to the recovery in the movement of people
resulting from the elimination and easing of COVID-related restrictions in respective countries. While making
preparations to accelerate the pace of new store openings, we will continue to operate our stores to sustain thedaily lives of our customers and strive to further expand our earnings.
[Distribution of LAWSON Brand Stores Overseas by Region]
Country/Region
China
China
China
China
China

Number of stores(As of February 28,
2023)

Shanghai and surrounding area
(Shanghai, Zhejiang, Jiangsu)
Chongqing and surrounding area
(Chongqing, Sichuan）
Liaoning(including Shenyang, Dalian)Beijing and surrounding area
(Beijing, Tianjin, Hebei)
Guangdong and Fujian(including Shenzhen, Xiamen)

Changeduringfiscal year

Number of stores(As of May 31,
2023)

2,483

35

2,518

798

42

840

586

39

625

432

23

455

174

24

198

China

Hubei (including Wuhan)

617

10

627

China

Anhui (including Hefei)

231

(14)

217

China

Hunan (including Changsha)

160

1

161

China

Hainan (including Haikou)

139

8

147

China

Subtotal

5,620

168

5,788

Thailand

181

(2)

179

Indonesia

256

124

380

Philippines

101

3

104

2

－

2

6,160

293

6,453

United States of America (Hawaii)
Total

7

As a result, Overseas Business posted gross operating revenue of 27,607 million yen (up 63.0% from previous
fiscal year) and segment profit of 212 million yen (segment loss was 2,880 million for the same period of theprevious year).
(2) Explanation Regarding Consolidated Financial Position
Assets, Liabilities and Equity at end of current first quarter of fiscal 2023①

Current assets increased by 129,807 million yen from the end of the previous fiscal year to 809,647 million
yen, mainly reflecting an increase of 114,233 million yen in cash and cash equivalents and an increase of 14,877
million yen in trade and other receivables. Non-current assets increased by 70 million yen from the end of theprevious fiscal year to 1,562,653 million yen, mainly reflecting increases of 2,160 million yen in intangible assets,
1,957 million yen in guarantee deposits, and decreases of 3,798 million yen in rights-of-use assets. Consequently,
total assets increased by 129,878 million yen from the end of the previous fiscal year to 2,372,300 million yen.
Current liabilities increased by 124,338 million yen from the end of the previous fiscal year to 1,029,618
million yen, mainly reflecting increases of 75,455 million yen in deposits received and 48,181 million yen in otherfinancial liabilities. Non-current liabilities decreased by 3,912 million yen from the end of the previous fiscal year
to 1,079,371 million yen, mainly reflecting a decrease of 4,719 million yen in lease liabilities. Consequently, total
liabilities increased by 120,425 million yen from the end of the previous fiscal year to 2,108,989 million yen.
Equity increased by 9,452 million yen from the end of the previous fiscal year to 263,311 million yen, mainlyreflecting increases of 8,589 million yen in retained earnings and 779 million yen in other components of equity.
Consequently, shareholders’ equity ratio was 10.9%, down from 11.1% as of the end of the previous fiscal year.
Cash flows during the first quarter of fiscal 2023②

Cash and cash equivalents on May 31, 2023 increased by 114,233 million yen from the end of the previous
fiscal year to 513,756 million yen.
Net cash provided by operating activities was 194,364 million yen, a decrease of 20,182 million yen from thefirst quarter of fiscal 2022, mainly because of the movement in deposits received, call money for banking business,trade and other payables, trade and other receivables.
Net cash used in investing activities was (15,556) million yen, an increase of 5,515 million yen from the firstquarter of fiscal 2022, mainly because of an increase in purchases of long-term prepaid expenses and a decreaseof proceeds from collection of guarantee deposits.
Net cash used in financing activities was (64,860) million yen, a decrease of 30,549 million yen from the firstquarter of fiscal 2022 mainly because of a decrease in repayments of borrowings and proceeds from borrowings.

The Group’s sources of capital and funding liquidity are used to fund new store openings, remodel existing
stores, and develop new business, as well as to pay dividends.
Working capital and investment funds are basically allocated from operating cash flow, and funds are procured
as needed.

(3)

Explanation Regarding Forward-looking Statements

Regarding the financial forecasts for the first half and full year of the current fiscal year ending February 29,82024, the financial forecasts remain unchanged from those announced on May 25, 2023.

92. Condensed Quarterly Consolidated Financial Statements and Main Notes(1) Condensed Quarterly Consolidated Statement of Financial Position

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Finance lease receivables
Other financial assets
Inventories
Other current assets
Total current assets
Non-current assets
Property and store equipment
Right-of-use assets
Investment property
Goodwill
Intangible assets
Investments accounted for using equity
methodGuarantee deposits
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

10Previous fiscal year
As of February 28,
2023(Millions of yen)
Current 1st Quarter
As of May 31,
2023

399,523
223,648
13,7103,595
28,68910,671
679,839

513,756
238,525
13,6442,148
29,762
11,808809,647

186,398
1,069,233
46,73450,15051,416

187,770
1,065,435
46,01550,42653,577

6,532

6,588

92,916
5,742
48,234
5,223
1,562,582
2,242,421

94,8736,109
45,422
6,434
1,562,653
2,372,300

Liabilities and equity
Current liabilities
Trade and other payables
Deposits received
Borrowings
Income taxes payable
Other financial liabilities
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liability
Deferred tax liabilities
Provisions
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares
Other components of equity
Retained earnings
Total equity attributable to owners ofparentNon-controlling interests
Total equity
Total liabilities and equity

11

Previous fiscal year
As of February 28,
2023(Millions of yen)
Current 1st Quarter
As of May 31,
2023

231,925
274,224
92,877
10,800273,465
2,480
19,505905,279

253,220
349,680
81,334
3,952
321,647
338
19,443
1,029,618

80,000923,588
21,407
16,797430
37,642
3,417
1,083,284
1,988,563

80,119918,868
21,906
16,912420
37,6403,503
1,079,371
2,108,989

58,506
46,934(948)
3,799
141,650

58,50646,928(943)
4,578
150,240

249,941

259,310

3,916
253,858
2,242,421

4,000
263,3112,372,300

(2) Condensed Quarterly Consolidated Statement of Profit and Loss and Condensed Quarterly
Consolidated Statement of Comprehensive Income
Condensed Quarterly Consolidated Statement of Profit and Loss
Previous 1st Quarter
From March 1, 2022
to May 31, 2022
236,065(111,721)
124,344(108,331)
820(1,091)327(2,292)Gross operating revenue
Cost of sales
Operating gross profit
Selling, general and administrative expenses
Other income
Other expenses
Finance income
Finance costs
Share of profit of investments accounted forusing equity method
Profit before tax
Income taxes
ProfitProfit (loss) attributable to
Owners of parent
Non-controlling interests
Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)12(Millions of yen)
Current 1st Quarter
From March 1, 2023
to May 31, 2023
264,100(123,567)
140,533(114,286)
618(1,191)408(2,452)

88

412

13,865(5,553)8,311

24,041(7,900)16,141

8,379
(67)
8,311

16,09546
16,141

83.73
83.66

160.83160.70Condensed Quarterly Consolidated Statement of Comprehensive Income(Millions of yen)Previous 1st Quarter
From March 1, 2022
to May 31, 2022
8,311

ProfitItems that will not be reclassified to profit or loss
Financial assets measured at fair value throughother comprehensive income

Current 1st Quarter
From March 1, 2023
to May 31, 2023
16,141

22

55

Share of other comprehensive income ofinvestments accounted for using equity
method10－

Total of items that will not be reclassified to
profit or loss

33

55

2,300

753

23

8

2,324

761

2,357
10,669817
16,958

10,62841

16,87483

Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations
Share of other comprehensive income ofinvestments accounted for using equity
methodTotal of items that may be reclassified to
profit or loss
Other comprehensive income (net of tax)
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests13(3) Condensed Quarterly Consolidated Statement of Changes in Equity
Previous 1st Quarter (From March 1, 2022 to May 31, 2022)(Millions of yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of March 1, 2022

Capital surplus Treasury shares

58,506

46,899Financial assets
Exchangemeasured at fairdifferences onvalue throughtranslation ofotherforeigncomprehensive
operations
income(973)(1,409)2,997

ProfitTotal comprehensive income

33

2,215

2,249

33

2,215

2,249

Dividends－

Exercise of share acquisition rights(issuance of treasury shares)
Total transactions with owners
Balance as of May 31, 2022

(14)

14

－

(14)

14

－

－

－

58,50646,885(959)(1,376)

5,213

3,837

－

Equity attributable to ownersof parent

Retainedearnings

ProfitDividends

Total

Noncontrollinginterests

Total equity

125,832

231,853

3,839

235,693

8,379

8,379

(67)

8,311

2,249

108

2,357

8,379

10,62841

10,669(7,505)(7,505)(7,505)0

0

Other comprehensive income
Total comprehensive income

1,588
－

Other comprehensive income

Balance as of March 1, 2022

Total

Exercise of share acquisition rights(issuance of treasury shares)
Total transactions with owners(7,505)(7,505)－(7,505)

Balance as of May 31, 2022

126,706

234,976

3,880

238,857

14

Current 1st Quarter (From March 1, 2023 to May 31, 2023)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
Financial assets
measured at fair
Share capital Capital surplus Treasury sharesvalue throughothercomprehensive
incomeBalance as of March 1, 2023

58,506

46,934(948)(1,278)Exchangedifferences ontranslation offoreign
operations
5,077

ProfitTotal comprehensive income
Purchase of treasury shares

55

723

779

55

723

779

(0)

－

Dividends－

Exercise of share acquisition rights(issuance of treasury shares)

(5)

5

－

(5)

5

－

－

－

58,50646,928(943)(1,223)

5,801

4,578

Total transactions with owners－

Equity attributable to ownersof parent

Retainedearnings

Balance as of March 1, 2023
ProfitTotal equity

249,941

3,916

253,858

16,09516,09546

16,141

779

37

817

16,87483

16,95816,095Purchase of treasury shares
Dividends

Total

Noncontrollinginterests

141,650

Other comprehensive income
Total comprehensive income

3,799
－

Other comprehensive income

Balance as of May 31, 2023

Total

(7,505)

Exercise of share acquisition rights(issuance of treasury shares)

(0)

(0)

(7,505)(7,505)00

Total transactions with owners(7,505)(7,506)－(7,506)

Balance as of May 31, 2023

150,240

259,3104,000

263,31115

(4) Condensed Quarterly Consolidated Statement of Cash Flows(Millions of yen)Previous 1st Quarter
From March 1, 2022
to May 31, 2022
Cash flows from operating activities:
Profit before tax
Depreciation and amortization
Impairment loss
Interest income
Interest expenses
Loss on retirement of non-current assets
Decrease (increase) in trade and other receivables
Increase (decrease) in trade and other payables
Increase (decrease) in deposits received
Increase (decrease) in net defined benefit liability
Net increase (decrease) in call money for banking
business
Other

Current 1st Quarter
From March 1, 2023
to May 31, 2023

13,86552,482
574
(294)
2,225
285
(22,678)
11,516135,104
120

24,04152,536
585
(318)
2,451
231
(14,682)
19,93075,788114

27,00048,0001,770(2,380)221,971708(972)(7,160)206,297517(1,117)(11,333)

Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchases of property and store equipment, right-of-use
assets and investment property
Purchase of intangible assets
Purchase of investments
Proceeds from sales and redemption of investments
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Purchase of long-term prepaid expenses
Other

214,546

194,364(9,536)(8,838)(2,983)(1,239)3,047(2,622)
4,587(83)(1,209)(4,024)(112)
2,025(4,381)
2,417(2,415)(226)

Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from borrowings
Repayments of borrowings
Repayments of lease liabilities
Dividends paid
Other

(10,040)(15,556)

68,813(111,412)(45,319)(7,505)
13

51,141(62,585)(45,913)(7,505)
4

Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period(95,409)(64,860)

988

286

110,084
392,996

114,233
399,523

Cash and cash equivalents at end of period

503,081

513,756

SubtotalInterest and dividends received
Interest paid
Income taxes paid

16

(5) Notes Concerning Condensed Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not Applicable.
(Significant Accounting Policies)
The significant accounting policies adopted for the Condensed Quarterly Consolidated Financial Statements
are the same as those for the Consolidated Financial Statements for the fiscal year ended February 28, 2023,
except for the following standards, which have been newly adopted.
In addition, income taxes for the first quarter ended May 31, 2023 are calculated based upon an estimatedaverage annual effective tax rate. The Company and certain subsidiaries have transitioned from a consolidated
taxation system to the group tax sharing system from the first quarter of the fiscal year.
The standard that the Group has adopted from the first quarter ended May 31, 2023 is as follows:Standard

Standard name

Outline・Clarification of accounting treatment for deferred taxes related toassets and liabilities arising from a single transaction

IAS 12

Income Taxes

・Accounting and disclosure of income tax by tax laws enacted or
substantively enacted to implement Pillar Two model rules
published by the Organization for Economic Co-operation andDevelopment
Furthermore, there was no material impact on the Condensed Quarterly Consolidated Financial Statements
for the first quarter resulting from the application of the above standard.
(Segment Information)
1. Outline of reportable segments
The Company’s reportable segments are separate components for which discrete financial information isavailable and which are subject to regular review by the board of directors in order to determine the allocationof managerial resources and evaluate financial performance.
The Group is primarily engaged in the domestic convenience store business, Seijo Ishii business,entertainment-related business, financial services business and overseas business while incorporating related
businesses and managed as a group.
Therefore, the Group aggregates its main reportable segments considering the nature of the services provided
and economic characteristics as follows: Domestic Convenience Store Business, Seijo Ishii Business,
Entertainment-related Business, Financial Services Business and Overseas Business.
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 urbanworks, Inc. undertakes the direct management of
LAWSON stores mainly in Tokyo and Chiba prefectures. Lawson Store100, Inc. undertakes the direct
management of LAWSON STORE100 stores and provide management support for franchised stores. SCI, Inc.
is a functional subsidiary that comprehensively manages the business process from procurement to sales,
improving 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. operates a banking business.
Regarding Overseas Business, the operating company in each region develops LAWSON stores in the
People’s Republic of China, Thailand, the Philippines, and the United States of America (Hawaii).
17

2. Information on reportable segments
Methods of accounting for reportable statements are described in note “Significant Accounting Policies” andare consistent with the accounting policies of the Group.
The Group’s reportable segments are as follows. Segment profit represents operating gross profit less selling,
general and administrative expenses. Intersegment revenues and transactions are based on market prices.
Previous 1st Quarter (From March 1, 2022 to May 31, 2022)(Millions of yen)
Reportable segment
Others(Note)

Domestic
Convenience
Store
Business

Seijo Ishii
Business

61,412

Total

Adjustments

Total

Entertainmentrelated Business

Financial
Services
Business

Overseas
Business

213

－

－

119

－

61,745－61,745

18,47727,753

13,535－

13,237－73,003－73,00379,882

24

2,874

7,971

3,491

480

94,725－94,725

6,500

5

－

－

84

－

6,590

－

6,590

1. Revenue fromexternalcustomers

166,273

27,996

16,4097,971

16,933480

236,065－

236,065

2. Intersegment
revenue ortransfer

1,544

－

510

708

－

141

2,905

(2,905)－

Total

167,818

27,996

16,9198,680

16,933622

238,971(2,905)

236,065

Segment profit (loss)

13,058

3,575

1,307

989

(2,880)(38)

16,012－

16,012

Revenue fromcontractswith customers
Income from
franchised stores
Net sales from
Companyoperated stores
Other
Other revenue
Revenue fromexternal customers(Note) The business segments within the “Others” category that do not fall under the main reportable segments
include the Consulting Business, etc.

18Current 1st Quarter (From March 1, 2023 to May 31, 2023)(Millions of yen)
Reportable segment
Others(Note)

Domestic
Convenience
Store
Business

Seijo Ishii
Business

66,015

Total

Adjustments

Total

Entertainmentrelated Business

Financial
Services
Business

Overseas
Business

215

－

－

715

－

66,946－

66,946

21,52927,552

17,144－

20,331－

86,557－86,557

84,646

11

3,172

8,064

6,470

476

102,841－

102,841

7,660

4

－

－

89

－

7,754

－

7,754

1. Revenue fromexternalcustomers

179,851

27,784

20,316

8,064

27,607476

264,100－

264,100

2. Intersegment
revenue ortransfer

1,603

－

669

803

－

169

3,244

(3,244)－

Total

181,455

27,784

20,985

8,867

27,607645

267,345(3,244)

264,100

Segment profit

19,967

3,242

1,927

892

212

3

26,246－

26,246

Revenue fromcontractswith customers
Income from
franchised stores
Net sales from
Companyoperated stores
Other
Other revenue
Revenue fromexternal customers(Note) The business segments within the “Others” category that do not fall under the main reportable segments
include the Consulting Business, etc.

19