Summary of Results for FY2021

Lawson, Inc.
April 12, 2022

Copyright (c) 2022 Lawson, Inc. All rights reserved.
Copyright (c) 2022 Lawson, Inc. All rights reserved.

Financial Results for FY2021
Satoshi Nakaniwa
Executive Managing Officer
Chief Financial Officer
Lawson, Inc.
Copyright (c) 2022 Lawson, Inc. All rights reserved.
Copyright (c) 2022 Lawson, Inc. All rights reserved.

Consolidated Financial Results for FY2021
Unit: Billions of yen

FY2020

FY2021

results

Operating income
Ordinary income
Net income

results

YoY

v.plan

40.8
37.6
8.6

47.0
47.5
17.9

+6.2
+9.9
+9.2

-2.9
+0.5
+2.4

92.7%
31.0%

101.1%
30.7%+8.4%pt- 0.3%pt- 1.7%pt- 0.1%pt

14,476

14,656＋180＋30(Non-consolidated*)

Existing store sales (YoY)
Gross profit margin
Total no. of stores in Japan*Lawson group total※Any differences v. plan in these documents are compared to the plan issued along with the announcement of FY2021 1H results in October 2021.

1.Operating profit: 47.0 billion yen(1)YoY: While the business environment and restrictions on social activities due to COVID-19 continued into FY2021, existing-store sales for thedomestic CVS business started to recover YoY thanks to our efforts to refurbish stores to meet new lifestyles and needs. However,operating profit held roughly flat YoY due to leading costs linked to growth investment, such as future oriented store refurbishments.
Having said that, consolidated operating profit increased on the back of improved performances at Group companies Seijo Ishii, ourentertainment-related, and overseas business.
(2)v. plan: While Group companies performed roughly to plan and we proactively reduced and controlled costs at the domestic CVS business,
operating profit fell short of plan as existing-store sales underperformed.

2.Net profit : 17.9 billion yen(1)YoY: Profit rose on dividends on our investments, a rebound from last year’s COVID-19-related extraordinary losses, and lower losses relating
to store closures, etc.
(2)v. plan: Achieved plan as costs relating to store closures and store-related impairment losses came in lower than expected.
Copyright (c) 2022 Lawson, Inc. All rights reserved.

3

FY2021 Initiatives Review
Unit: Billions of yen

FY2021
Consolidated
operating income

plan

results

v.plan

YoY

50.0

47.0

-2.9

+6.2

Various measures

Initiatives taken and progress madev. planYoY

Charge feesfrom franchise stores

People flows were even more restricted this year due to longer emergency measures and the rapid
spread of Omicron. While we successfully refurbished existing stores and renewed our product ranges
to reflect everyday demand and Machikado Chubo in-store kitchen food, frozen foods, and othergoods sold well, the store refurbishment was concentrated towards the period end, so we enjoyedonly limited benefits in FY2021. As a result, existing store sales rose YoY but fell short of plan.

-6.0

+3.0

Sweeping Transformation
Executive Committee
measures, etc.

Completed the refurbishment of 4,305 stores under the Ideal Store Format Project, but the number ofrefurbished stores fell short of plan, so refurbishment costs came in below plan.

+0.5

-2.5

Marketing measures,disposal costs, etc.

Cost rose YoY relating to in-app coupons, TV ads, and other promotions, as well as our drive tostrengthen product ranges. However, the total was lower than planned due to our focus on highly
effective measures and lower promotion costs as sales fell short of plan.

+1.5

-5.0

Increased costs relating to YoY rebounds in rents and other factors were roughly as expected but weworked hard to reduce IT and store maintenance costs.

+0.5

+1.5

Progressing to plan.

±0.0

+2.5

SEIJO ISHII: Sales up YoY on strong sales of in-station stores and stores located in commercial
facilities. However, fell short of plan on YoY reduction in stay-home demand.
Entertainment-related business: Up YoY and v. plan on higher number of events and our successful
efforts to secure more ticket handling opportunities.
Overseas business: Existing-store sales in China proved strong in 1H but sales struggled in 2H as thenumber of regions suffering rising COVID-19 cases increased. However, a rise in total store numbers
helped the overseas business performance increase YoY and v. plan.

+0.5

+6.5

-3.0

+6.0

Decline v.
Previous year’s
cost reductions, etc.
Rebound v. previous year’s
COVID-19 franchisee
supportGroup subsidiaries

Total
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*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 FY2021
1H results in October 2021.

4

Factors Affecting FY2021 Consolidated Operating
Unit: Billions of yen

+3.0

+1.5

v.plan -6.0

v.plan +0.5

Charge feesfrom franchise stores

+2.5

+6.5

v.plan +0.5
Rebound v. previous Group subsidiaries

v.plan ±0.0

Decline v.
year’s COVID-19
Previous year’s franchisee support
cost reductions, etc.

-2.5
v.plan +0.5

-5.0
Sweeping
Transformation
v.plan +1.5
Executive
Marketing measures,
Committee
measures, etc. disposal costs, etc.

40.8

SEIJO ISHII+1.0
Lawson Entertainment +1.5
United Cinemas
+1.5

47.0

Existing-store sales
First half
+1.6%
Second half
+0.6%
Full year+1.1%
FY2020Consolidated
operating income*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 FY2021 1H resultsin October 2021.

Copyright (c) 2022 Lawson, Inc. All rights reserved.

FY2021
Consolidated
operating income

5FY2022 Full-Year Plan
Unit: Billions of yen

FY2022plan

Consolidated operating income
Group subsidiaries, etc.

YoY

53.0

+5.9

Lawson30.0+4.1

Seijo Ishii

13.6

+1.6

Entertainment-related business*1

2.7

+0.4

Financial service business*1

2.6

－0.3

Overseas business (China)

2.6

＋0.5

22.0
150yen+4.0
150yenConsolidated net income
Dividends per share（Assumed conditions for the plan：Lawson）
・YoY increase in existing-store sales*2 : 103.0%（+1.9％pt YoY）
・Gross profit margin*2：31.1％（+0.4％pt YoY）
・Store numbers: Opening 300 stores, closure 250 stores, net increase 50 stores*1 segment profit
Copyright (c) 2022 Lawson, Inc. All rights reserved.

*2 excluding LAWSON STORE100 business6Factors Affecting FY2022 Consolidated Operating
Unit: Billions of yen+15.5
Charge feesfrom franchise stores-3.5
Marketing measures,
New measures, etc.

-4.5
Sweeping
Transformation
Executive
Committee
measures, etc.

-3.0Electric utility
expense, etc.

＋1.5Group subsidiaries

53.0
47.0

FY2021
Consolidated
operating income
Copyright (c) 2022 Lawson, Inc. All rights reserved.

Existing-store sales
First half
+2.0%
Second half
+4.0%
Full year+3.0%※Figures rounded to the nearest 0.5 billion for clarity

FY2022
Consolidated
operating income(plan)

7

FY2021 Review
andProgress of Challenge 2025
Sadanobu Takemasu
President and CEO
Representative Director
Chairman of the Board
Lawson, Inc.
Copyright (c) 2022 Lawson, Inc. All rights reserved.
Copyright (c) 2022 Lawson, Inc. All rights reserved.

FY2021 Review

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Copyright (c) 2022 Lawson, Inc. All rights reserved.

FY2021 Business environment■Wider COVID-19 impact on business environment than expected
Declaration status of State of emergency, etc. throughout Japan

FY2020

FY2021

State of emergency

101days159days

Pre-state of*
emergency measures

0days

92daysTotal

101days251days*Excluding the period during which a state of emergency was declared.
Copyright (c) 2022 Lawson, Inc. All rights reserved.

10Lawson business environment

１

Living with COVID-19

New normal becomes normal●Wider remote working●Wider delivery service use

３

Bipolarized society

Generational, income, regional gaps
●Pricing strategy
Develop value-added products
Develop basic products

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２

Tougher competition

As companies enter other industries●Enter ghost restaurant business●Stronger one-to-one marketing●More original frozen foods , deli items

４

Increased awareness ofsocial issues

Company stance, response

Decarbonization
Food loss
De-plasticization●Sell hot milk at half price●Switch plastic to paper containers●Use AI to optimize store delivery diagram11

Lawson Group Sweeping Transformation Executive Committee◼ Improving daily sales centered around on the Ideal Store Format
Project

Lawson Group Sweeping Transformation Executive Committee
Daily sales improvement

Pursuit of ideal store
formatDaily sales improvement

Machikado Chubo
in-store kitchens

Daily sales improvement

Product renewal
Daily sales improvement

Horizontal FF companies
Copyright (c) 2022 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

Area strategy
reorganization

Medium to long term

Unified use ofGroup data

Operating companies

Medium to long term

Work motivation reform

Decarbonization activities(SDGs Committee)

12Lawson Group Sweeping Transformation Executive Committee -FY2021-

Daily sales
improvement
PJ

Medium tolong term PJ

Project

Achievements and major initiatives

Pursuit of ideal store format

Store refurbishment: 4,305 stores Impact: +3.7%*1

Machikado Chubo in-store kitchens

Introduced in 8,359 stores. Category sales up over 30% YoY

Product renewal

Frozen foods: Developed innovative products. Category sales up approx. 10% YoY
Daily foods: Improved products, strengthened range. Category sales up approx. 2%
MUJI: Selling at about 110 stores. Sales of relevant category rose approx. 20%*2

Horizontal FF companies

Introduced more MACHI Deli. 1,371 stores at end February

Project

Achievements and major initiatives

Customer-centric supply chain reform

Experimenting with AI-driven recommended discounting in 65 stores in Tohoku area

Vendor distribution reform

Improving productivity & product quality at vendor factories
Using AI to optimize store delivery diagram

Unified use of Group data

Completed the unification of Group data (central database)

Work motivation reform

Developing ways of improving job satisfaction through internal recruitment, etc.

Group branding

Developing Groupwide policies to improve brand image

Area strategy reorganization

Analysis of environment at each area and construction of store opening strategy

Operating companies

Initiatives to promote growth at each operating company

Decarbonization activities(SDGs Committee)

Pursuing initiatives promoting Lawson Blue Challenge 2050!

＊1 The effect of the renovation is a comparison with existing stores in the same area and location. In addition, it is the average value of all refurbished stores, and includes the effects of store ideal remodeling,
product renewal, and Machikado chubo.
＊2 The category growth rate is a comparison with before the introduction.
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13

FY2021 Domestic convenience store business (1)-Daily Sales, number of customers, spending per customer◼ Sales are recovering favorably, but we concentrated ideal store refurbishment
towards the end of the period, the benefits of which will emerge in FY2022◼ Customer visits impacted by delayed recovery in people flows due to state of
emergency, etc., and rapid spread of the Omicron variant

Daily sales

Number ofcustomers

Spending per
customer

101.1%

98.7%

102.5%

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14

FY2021 Domestic convenience store business (2)-Franchise Store Profits-◼Franchise store profits rose YoY despite impact of state of emergency measures, etc.

【YoY】
Per store

Per Franchise Owner

110

105

100%100

95

90

FY2019Copyright (c) 2022 Lawson, Inc. All rights reserved.

FY2020

FY202115

FY2021 Other segment business (1)-Seijo Ishii/Entertainment-related business-

SEIJO ISHII
Existing-stores sales
YoY
FY2019FY2020
FY2021

Lawson Entertainment

106.6%
101.6%

United Cinemas

TicketSales(YoY)

102.9%

Roadside store sales growth tapered as stay-home demand
settled, but in-station stores continued strong. 3Q was comparedto Japan’s strong Go To Travel campaign in the previous year. 4Q
was compared to strong stay-home demand during the state of
emergency. It was also a poor year for hit products generated bymedia exposure. However, full-year profit still rose by 1.6% YoY.
Copyright (c) 2022 Lawson, Inc. All rights reserved.

Entertainment-related

Customer
Attendance(YoY)

FY2019113.4%FY2019111.2%FY202035.4%

FY202051.2%

FY2021

191.7%FY2021124.0%

Profit up YoY. Despite
Omicron impact fromJanuary, more concerts were
held, and we successfully
secured more events.

Profit up YoY. Seating
restrictions in 1H andOmicron variant in 2H, but
we were able to operate
regular hours.

16

FY2021 Other segment business (2)-Financial services/Overseas business -Financial services
Number of
ATM usage

Existing-stores
sales YoY

Number of
convenience stores

FY2019110.7%

2,646

43.1

FY2020102.0%

3,344

48.4

FY2021103.3%

4,560

Segment
profitPer vehicle per day

FY20193.08billion yen

47.5

FY20201.75billion yen

FY2021

2.96billion yen

ATM business: Expanded affiliated financial institutions
and ATM services. Affiliated financial institutions
increased from 249 at end FY2020 to 378 at end
FY2021. Average usage per ATM/day is rising after we
expanded charging services to cashless payment app.
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Overseas (China)

Topped 4,000 stores in September 2021. 4,560 stores at end Feb.
2022. Increased store openings through mega-franchise contracts
with local partners, etc. Also conducted 2 M&A and are working to
expand store network and improve brand visibility. Sales rosestrongly in 1H. Sales impacted by China’s zero-Covid policy in 2H.
However, full-year sales still rose 3.3% YoY.

17

FY2021 Results（Consolidated）【Unit：Billions of yen】

FY2020results

FY2021
results

YoY

Operating Income

40.8

47.0

+6.2

Ordinary Income

37.6

47.5

+9.9

8.6

17.9

+9.2

Net income◼ ■FY2021 Domestic convenience store business
Existing-stores sales YoY 101.1％◼ Opening 483／Closure 303／Total number of stores 14,656
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18

FY2022 Initiatives

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Copyright (c) 2022 Lawson, Inc. All rights reserved.

Lawson Group’s Challenge2025 Overview

2025
50 th anniversary

Customers, society, friends’

Achieve Group philosophy

No.1 recommended brand

Promise 1
Superior taste

Promise 2
Human kindness

Creating happinessandharmony in our communities

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

Lawson Group Sweeping Transformation Executive Committee
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20

FY2022 Key concept

Community-based × individual customer
andindividual store-focused
Deliver new conveniences for daily living in local communities
Create “New hubs of refreshment in every community”
that people will want to go to even if they are a little further away•••

Improve store brand power by thoroughly pursuingvalue for every customer
Clear differentiation strategies for products and services
Superior marketing strategies that use customer mindshare

Copyright (c) 2022 Lawson, Inc. All rights reserved.

21

FY2022 Organizational reform

Reform concept:
実現のための組織改革“Small head office, powerful on-the-ground outlets”
Organizational reform (1): Introduce area company system•

Establish Hokkaido Company and Kinki Company•

Implement high-speed PDCA near customers and every
community

Organizational reform (2): Create flat head office structure
in order to strengthen on-the-ground outlets
Copyright (c) 2022 Lawson, Inc. All rights reserved.

22

Sweeping Transformation Executive Committee■Updating projects in FY2022 and accelerating transformations

Lawson Group Sweeping Transformation Executive Committee
Daily sales improvement

Pursuit ofideal store format
Daily sales improvement

Machikado Chubo
in-store kitchens
FF companies
absorption

Daily sales improvement

Newly
established

Daily sales improvement

Product renewal
MUJI
introduction

Copyright (c) 2022 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
Newly established

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 promotion

23

Sweeping Transformation Executive Committee
Main measures for 2022

Daily sales
improvement
PJ

Project

Plans and major initiatives

Pursuit of ideal store format

Refurbish 3,500 more stores

Machikado Chubo in-store kitchens

Introduce into 1,300 more stores, update menu

Product renewal※Horizontal FF companies absorption

Expand awareness of frozen foods, strengthen product ranges, address
health-conscious demand (FY2025 sales: 500 billion yen)

MUJI introduction

Introduce into more stores* (*The number of stores is under consideration)

Project

Plans and major initiatives

Customer-centric supply chain reform

Experiment with new semi-automatic additional ordering

Vendor distribution reform

Expand frozen food distribution, prepare for demonstration testing of AIdriven optimized delivery system

Unified use of Group data
Work motivation reform
Group branding
The No.1 recommendationacquiring

Expand potential new services

Medium tolong term PJ

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Improve working environments
Policies to help better instill our Group philosophy, etc.
Analyze detailed customer evaluations and pursue improvements

Operating companies

Pursue Group portfolio strategies

SDG promotion

Green Lawson (environment-conscious stores)
Reduce CO2 introducing solar-generated power

24

Group subsidiaries (1) -Seijo Ishii/Entertainment business-

Seijo Ishii
Operating income

・Six action plans

13.6billion yen(+1.6billion yen)

Operating income*

2.7billion yen（＋0.4billion yen）
*segment profit

１．Increase store opening prowess and areas
２．Differentiate products,
discover fine Japanese products
３．Strengthen production bases,
improve distribution network
４．Strengthen last mile distribution(EC, home delivery, in-store pickup)
５．Human resources training
６．SDGs・Launch new Central Kitchen

Enables us tostrengthen production
capacity and expand
our store network,and produce and offer
high-quality, highvalue-added products

Copyright (c) 2022 Lawson, Inc. All rights reserved.

Entertainment-related

Lawson Entertainment
Strengthen existing business, expand ticket
handling for online live events, andchallenge new content
・Start offering LAWSON TICKET NFT to people whopurchase tickets from LAWSON TICKET (spring 2022)

United Cinemas
In addition to earnings from film contents,
expand other earnings strategies throughcinema rental services, etc.

25

Group subsidiaries (2) -Financial services/Overseas business-

Financial services
Operating income*

2.6billion yen（-0.3billion yen）

Overseas
Operating income(china)2.6billion yen（＋0.5billion yen）

*segment profit⚫ Further expand number ofaffiliated financial institutions
and enhance services for our
ATM business⚫ Seek to increase ATM usage bydeveloping charging services,
etc. for cashless payment appsthat use ATM networks⚫ Explore new services thatutilize our digital platform
Copyright (c) 2022 Lawson, Inc. All rights reserved.

China

Complete nationwide coverage byentering South China, further expand
regional presence and strengthen
earnings bases in each area

Target: 6,000 stores
New expansion in South China(Shenzhen, Guangzhou, Xiamen)

SE Asia & Hawaii

Satisfy local market needs throughin-store food preparation.
Secure new consumer needs
through external sales

Target: 400 stores

26

Concept of business portfolio strategy◼ Achieve Challenge 2025 targets by improving corporate value, balancing growthinvestment and shareholder returns, and ensuring growth for individual Group
companies and the Group as a whole
FY2025➢ Improve corporate value⇒Intensive investment in our core domestic CVS businessROE：15% or higher➢ Balance growth investment and shareholder returns
EPS：500 yen or higher⇒Pursue the optimum funding strategy➢ Ensure growth for individual Group companies and the overall Group⇒Explore Group restructuring
and optimum funding strategy
to help improve Group
company profits【Core business /growth driver】
Domestic CVS【Growth driver】
Seijo Ishii
Entertainment-related
Data
Financial services
Overseas
Copyright (c) 2022 Lawson, Inc. All rights reserved.

FY2022Entertainment-related

Domestic CVS
Maximize thevalue of theLawson brandGrowth potential andcapital profitability are
the judgment axes
Intensive growth investment
as core business and growth
driverDomestic CVS
Maximize thevalue of theLawson brandGrowth investment, industry
restructuring, M&A

27

FY2022 plan（Consolidated）【Unit：Billions of yen】

FY2021Results

FY2022Plan

YoY

Operating Income

47.0

53.0

+5.9

Ordinary Income

47.5

48.5

+0.9

Net income

17.9

22.0

+4.0

■FY2022 Domestic convenience store business
Existing-stores sales YoY 103.0％ （1H 102.0％ 2H 104.0%）
Opening 300／ Closure 250／Total number of stores 14,706
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28

Our policy on shareholder returns◼ Dividend policy
Our basic dividend policy involves securing the necessary internal
reserves for developing future business and pursuing sustainablegrowth for the Lawson Group, while paying a minimum stabledividend of 150 yen per share on an annual basis and aiming toachieve a consolidated dividend payout ratio of 50%.

Consolidated dividend
payout ratio target of 50%

Minimum dividend of
150 yen per share
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29

A new kind of convenience
New hubs of refreshment in every community
Copyright (c) 2022 Lawson, Inc. All rights reserved.

Lawson Group

Challenge2025

For sustainable growth in addition to challenge indicators
strategically select investment targets from the three perspectives ofenvironment, society, and corporate governance

FY2025
Performance indicators

Environmental Initiatives

ROE：15% or higher
EPS：500 yen or higher

ESG-focusedmanagement

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31

Initiatives for ESG

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Copyright (c) 2022 Lawson, Inc. All rights reserved.

Environmental and social initiatives (1) FY2021◼ Promoting environment-conscious initiatives to help achieve one of our three promises,
to be kind to our planet (machi)

Reduce plastic containers
Switch to a paper cup for
MACHI café Ice Coffee (Msize) with no straw

Reduce food waste
Use AI to improve precision ordering andimplement full product sell-down operation*Conducting recommending discounts tests in 65 stores in the Tohoku area

Annual reduction in plastic
use of approx. 1,830 tons

Reduce CO2 emissions
Aim to reduce annual CO2 emissions
by 5.4% using optimal AI-driven
store delivery diagrams*Based on a three-month store distribution diagram
compiled using AI at our Gunma Prefecture
distribution center
Copyright (c) 2022 Lawson, Inc. All rights reserved.

Other initiatives
Selling Hot Milk for half price to help expand
milk consumption in the face of a delayed
recovery in demand and lower in school
lunches over the year-end period

33

Environmental Initiatives (2) FY2021
2030 target
2021 results(preliminary)V. 2018 levels
Reduction of50％

Reduction of 17.3% *1

V. 2017 levels

CO2 emissions
per store V. 2013 levels

30%

Reduction of 50％ *2

Reduction of 19.3%

Reduction of 26.5％

Reduction of

KPI

50%

2018

Initiatives

2025

2030

・Improve order accuracy
・Thoroughly promote thecomplete sale of all stock.
・Expand boxed lunches’
expiration date by keeping them
fresher for longer*1 We changed calculation method, anddiscarded products are the only target of thecalculation

Copyright (c) 2022 Lawson, Inc. All rights reserved.

2017

2025

2030

・Reduce by changing or simplifying
containers and packaging
・Reduce by changing toenvironment-conscious materials(paper lunch boxes containers, etc.)
・Expand number of products sold byweight at Natural Lawson stores andexpand number of stores whichhave them

2013

2025

2030

・Introduce energy-saving
equipment and switch to solarpowered devices.
・Promote our 10 energysaving actions*2 Targets revised up in June 2021

34

Environmental initiatives (3) FY2022 Projects■Promote ESG-centered management, become a leading company on SDGs initiatives

GREEN LAWSON(environment-conscious stores)
Aim to switch all energy consumption to
renewable energy sources, and reduce foodwaste to zero

Reduce CO2 introducing
solar-generated power
Aim to introduce solar power-generated
renewable energy into approx. 3,600 stores, andreduce CO2 emissions by approx. 19,000 tons per
year
Mitsubishi
Corporation

Renewableenergy 100%
Zero
food
waste

Develop acrossTokyo area in
2022
De-

plasticization

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Generates
power

Develop renewableenergy (solar)
Receives
power

Supply renewableenergyMitsubishi
Corporation

Top class inJapan

Cubicle(power receiving facility)

Introduce into approx. 3,600 storesin Kantoshinetsu area, Gifu, Shizuoka,
Aichi, and Mie prefectures from 2022

35

Corporate governance initiatives◼ High level of ethics and conduct based on our Group philosophy, Lawson Corporate Conduct Charter, andLawson Code of Ethics◼ We seek to improve management soundness and transparency and enhance governance by disclosing
information according to our Basic Principles Concerning Information Disclosure◼ We established a voluntary Nomination and Compensation Advisory Committee and seek to ensure theobjectively, appropriateness, and transparency of procedures in consultation with the Board of Directors
Nomination and Compensation
Advisory Committee

Composition of Directors
1210Internal(non-executive)

Outside(independent)

６1Outside(independent)

5Internal
６

Male
５

Female５Outside(independent)
５Internal
５

50% of directors are women
FY2021
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FY2022• 5 out of 6 members are outside(independent) members• Chaired by Outside (independent) director

36Reference Materials

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Copyright (c) 2022 Lawson, Inc. All rights reserved.

Earnings Summary: FY2021 Results
FY2020Consolidated
Net sales of convenience store*1
Operating income
Operating income ratio
Ordinary income

Unit: Billions of yen
FY2022

FY2021

2,349.7
40.8
1.7%
37.6

2,442.7
47.0
1.9%
47.5

Y/Y
+93.0
+6.2
+0.2%pt+9.9

Net income

8.6

17.9

+9.2

22.0

EPS (Yen)

86.84

178.87+92.03219.84

Total no. of stores in Japan*2
Opening
ClosureNet Increase

14,476373341
32

14,656
483
303
180

+180
+110
-38
+148

14,706300
250
50

Non-consolidated*3
Existing store sales (Y/Y)*4

92.7%

101.1%+8.4%pt

103.0%

Gross profit at existing stores (Y/Y)

89.4%

101.0%+11.6%pt

104.3%

Gross profit margin

31.0%

30.7%

-0.3%pt

31.1%+0.1%pt+0.1%pt--

difference excl. cigarette sales (Y/Y)

Results

Results

Plan
2,570.0
53.0
2.1%
48.5

*1 Total chain store sales (Net sales of all stores) include sales from the convenience store operation in Japan, international operations and sales from Seijo Ishii (consolidated items only).
Regarding Seijo Ishii, only the store sales of directly operation are included.
*2 The number of stores is the total number of convenience stores in Japan operated by the Lawson Group.
*3 Excluding LAWSON STORE100 business*4 Net sales at existing stores (Y/Y) exclude the impact of tickets, etc.

Copyright (c) 2022 Lawson, Inc. All rights reserved.

38

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

FY2020Results

Results

YoY
YoY

307.9

+3.4

44.8

44.1

-0.6

＜Major Expenses＞

Non-consolidated

Personnel expenses
IT-related expenses

12.0

11.4

-0.5

9.8

10.9

+1.1

Sales commission: Head office shouldering of losses
from food waste increased in line with higher foodwaste resulting from wider product ranges at
franchise stores.

Consolidated

304.4

Non-consolidated

Selling, general & administrative
expenses

FY2021

Increased after we recorded rents and personnel
expenses relating to stores and cinemas that wereforced to close temporarily due to COVID-19 in
FY2020 as extraordinary losses, and after the numberof stores in China rose.

Advertising & Promotion: Higher promotion costs
relating to in-app coupons and TV ads, etc.

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

Advertising and promotional expenses
Sales commission

17.8

19.8

+2.0

Facilities expenses

174.4

175.0

+0.6

Consolidated SG&A expenses

436.6

451.5

+14.8

Copyright (c) 2022 Lawson, Inc. All rights reserved.

39

Segment profit
Unit: Billions of yen

FY2021Results

YoY

Domestic convenience store business

28.3

-0.3

Sales increased on efforts to refurbish stores and expand productranges in order to better respond to changing customer lifestyles inwith-Covid times, but profit was almost equal due to rising costs
relating to store refurbishments.

Seijo Ishii business

11.2

+0.9

Profit increased on strong sales of original deli items and desserts madein our in-house Central Kitchen to satisfy stay-home demand.

Entertainment-related business

2.2

+2.5

Ticket-handling volumes increased as more concerts and other eventswere held, and Lawson handed ticket sales for more events. Profit fromour cinema complexes also increased after the number of cinemagoers
started to steadily recover.

Financial services business

2.9

+1.2

Profit increased thanks to a wider range of affiliated financial institutions
and a recovery in ATM usage following the launch of ATM Charge

Overseas business

2.3

+1.5

Profit increased on the back of strong existing-store sales and risingstore numbers in China.

Other business

-0.1

+0.3

ー

Total

47.0

+6.2

Copyright (c) 2022 Lawson, Inc. All rights reserved.

40

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

Unit: Billions of yen

FY2020Results
11.3

FY2021Results
17.3

Existing stores

9.8

15.7

IT-related

8.4

8.0

Other
Subtotal for capital
expenditure

0.8

3.8

30.5

44.9

New stores

Leases25.6

33.3

Depreciation andamortization

80.7

79.9

Copyright (c) 2022 Lawson, Inc. All rights reserved.

Unit: Billions of yen

Cash flows from operating
activities
Cash flows from investing
activities
Free cash flows
Cash flows from financing
activities(Cash dividends paid)
Cash and cash equivalents

FY2020Results

FY2021Results

227.9

146.6

-29.9

-51.7

197.9

94.8

-140.6-109.5

-15.0

-15.0

401.1

388.4

41

Consolidated Balance Sheet at the end of FY2021
Unit: Billions of yen

As of Feb. As of Feb.
28, 2021 28, 2022
Total current assets

As of Feb. As of Feb.
28, 2021 28, 2022

YoY

690.8

667.6

-23.1

Cash and deposits*1

402.5

388.4

-14.1

Accounts receivable

161.0

146.4

-14.6

Total non-current assets

674.6

669.6

-5.0

Property and store equipment

367.6

368.7

+1.1

Intangible assets

86.4

77.7

-8.6

Software

39.0

34.8

-4.2

Goodwill

38.2

34.4

-3.7

Total liabilities

Investments and other assets

220.5

223.1

+2.5

Net Assets

Long-terms loans receivable

40.6

38.0

-2.5

Guatantee deposits

103.0

103.2

1,365.4

1,337.2

Total Assets

Total current liabilities

YoY

767.7

704.6

-63.0

Accounts payable-trade

127.4

125.6

-1.8

Short-term loans payable*2

42.3

47.0

+4.7

Current portion of long-term loans payable

100.0

20.0

-80.0

Deposits received

246.1

151.8

-94.3

324.7

354.0

+29.3

130.0

160.0

+30.0

1,092.4

1,058.7

-33.7

272.9

278.4

+5.5

Capital stock

58.5

58.5

-

+0.2

Retained earnings

158.4

161.2

+2.8

-28.1

Liabilities and net assets

1,365.4

1,337.2-28.1

Total non-current liabilities
Long-term loans payable*2*1 The amount of cash and deposits for financial services business as of February 28, 2022 is 350.2 billions of yen, most of which is used for refilling ATMs.
*2 The amount of loans payable for financial services business as of February 28, 2022 is 242.5 billions of yen.
Copyright (c) 2022 Lawson, Inc. All rights reserved.

42

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) 2022 Lawson, Inc. All rights reserved.
Copyright (c) 2022 Lawson, Inc. All rights reserved.