Flash Report on the Consolidated Financial Results [IFRS]
for the Fiscal Year Ended February 28, 2023
May 25, 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(Amounts less than one million yen are truncated)
1. Consolidated operating results for 2022 fiscal year (from March 1, 2022 to February 28, 2023)(1) Consolidated operating results
Note: Percentages represent increases (decreases) compared with the previous fiscal year.
Gross operating
revenue
For the fiscal Millions
year endedof yenFebruary
1,000,385
28, 2023
February
943,20628, 2022

For the fiscal
year ended
February 28,
2023
February 28,
2022

Profitattributable toowners ofparentMillions%of yenMillionsof yen%30.8

29,70831.3

33,12436.0－

22,625－24,352－

Core operating
profitProfit before tax%

Millionsof yen%Millionsof yen%Millionsof yen%6.1

64,31122.6

47,13442.4

29,673－52,442－

33,109－22,690

ProfitTotal
comprehensive
incomeBasic earnings per
share

Diluted earnings per
share

Return on equity
attributable toowners of parent

Ratio of profit
before tax to total
assetsRatio ofcore operating
profit to grossoperating revenue

Yen

Yen

%

%

%

296.86296.60

12.4

2.1

6.4

226.09225.89

10.0

1.5

5.6

Reference: Share of profit of investments accounted for using equity method:
Fiscal year ended February 28, 2023
Fiscal year ended February 28, 2022

363 million yen
432 million yen

Note: “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 ofFebruary 28,
2023
February 28,2022

Ratio of equity
attributable toowners of parent tototal assets

Equity attributable toowners of parent per
share

Total assets

EquityTotal equity
attributable toowners of parent

Millions of yen

Millions of yen

Millions of yen%

Yen

2,242,421

253,858

249,941

11.1

2,497.49

2,144,778

235,693

231,85310.8

2,316.89

(3) Consolidated cash flows

For the fiscal year ended

Net cash provided by(used in) operating
activities
Millions of yen

Net cash provided by(used in) investing
activities
Millions of yen

Net cash provided by(used in) financing
activities
Millions of yen

Cash and cash
equivalents at end of
periodMillions of yen

February 28, 2023

309,699(51,725)(252,548)

399,523

February 28, 2022

275,781(56,185)(231,626)

392,996

2. Dividends

1Q

1H

3Q

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%

Ratio ofdividend toequityattributable toowners of parent(consolidated)%

2021 fiscal year

－

75.00

－

75.00

150.0015,01066.3

6.6

2022 fiscal year

－

75.00

－

75.00

150.0015,01150.5

6.2

2023 fiscal year
(forecast)－

100.00－100.00200.00

Annual dividends per share
Total
dividends forthe year

Payoutratio－

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 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

4. Notes(1) Change in significant subsidiaries during the fiscal year (Changes in certain specified subsidiaries resulting
in changes in scope of consolidation): None
Added: None
Excluded: None
(2) Changes in accounting policies, changes in accounting estimates or restatements
1. Changes in accounting policies required by IFRS: None
2. Changes in accounting policies other than 1. above: None
3. Changes in accounting estimates: None
(3) Number of shares outstanding (common stock)
1. Number of shares outstanding at the end of year (including treasury shares)
As of February 28, 2023:
100,300,000
As of February 28, 2022:
2. Number of treasury shares at the end of year
As of February 28, 2023:
222,962
As of February 28, 2022:
3. Average number of shares during the year
As of February 28, 2023:
100,076,025
As of February 28, 2022:

100,300,000
228,807
100,070,561

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(1) As announced in the “Notice of Voluntary Adoption of International Financial Reporting Standards (IFRS)”
dated February 15, 2023, the Group has voluntarily adopted International Financial Reporting Standards (IFRS)
for the consolidated financial statements in its Annual Securities Report effective from the fiscal year ended
February 2023.
(2) This flash report and accompanying materials are voluntary disclosures of key financial information basedon IFRS, as disclosed in the Annual Securities Report for the fiscal year ended February 28, 2023. In addition,
the Company reported its financial results for the fiscal year ended February 28, 2023 based on Japanese GAAPon April 13, 2023.

(3) This flash report and the accompanying materials are provided to focus on certain financial information inaccordance with IFRS in the Annual Securities Report. Accordingly, not all of the information in the Annual
Securities Report that may be material to investors is included in this report. Please refer to the 48th Annual
Securities Report for the consolidated financial statements and related matters not included in this report.
(4) The forward-looking statements in this report, including earnings forecasts, are based on information
currently available to the Company and certain assumptions that the Company considers reasonable, and are notintended as a promise by the Company that they will be achieved. Actual results may differ materially due tovarious factors.

Contents
1. Overview of Operating Result..............................................................................................................

2(1) Future Outlook ...............................................................................................................................

2

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

3(1) Consolidated Statement of Financial Position ................................................................................

3(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ........

5

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

5

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

6(3) Consolidated Statement of Changes in Equity ...............................................................................

7(4) Consolidated Statement of Cash Flows ..........................................................................................

9(5) Notes to Consolidated Financial Statements ..................................................................................

10(Going Concern Assumption).........................................................................................................

10(Segment Information) ...................................................................................................................

10(Per Share Information) ..................................................................................................................

14(Significant Subsequent Events) .....................................................................................................

14(First-Time Adoption of IFRS).......................................................................................................

15

1

1．Overview of Operating Results(1) Future Outlook
The Group has voluntarily adopted International Financial Reporting Standards (IFRS) for the consolidated
financial statements in its Annual Securities Report effective from the fiscal year ended February 2023. A
forecast of the consolidated operating results for the 2023 fiscal year (from March 1, 2023 to February 29,2024) is as follows.
Furthermore, the forecast of gross operating revenue and core operating profit, which was not included in the
flash report for the fiscal year ended February 28, 2023 issued on April 13, 2023, is now additionally disclosed
as it is possible to make a reasonable calculation.
Gross operating
revenue
1H of 2023
fiscal year

Profitattributable toowners of parent

Core operating
profit2023 fiscalyear

1H of 2023
fiscal year

2023 fiscalyear

1H of 2023
fiscal year

Basic earnings
per share

2023 fiscalyear

1H of 2023
fiscal year

2023 fiscal
year

Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen

Yen

Yen

Previous
forecast (A)

―

―

―

―

17,50029,000174.86289.77

Revisedforecast (B)530,000

1,060,000

34,50064,00017,50029,000174.86289.77

Change (B-A)

―

―

―

―

0

0

―

―

Change (%)

―

―

―

―

0.0

0.0

―

―

2

2. Consolidated Financial Statements and Main Notes(1) 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 method
Guarantee deposits
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

IFRS Transition
Date
As of March 1,
2021

Previous fiscal
year
As of February 28,
2022(Millions of yen)
Current fiscal
year
As of February 28,
2023

403,554207,273
16,621
6,601
22,53912,706669,298

392,996
193,405
15,071
8,885
25,066
12,453647,878

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

166,829
1,034,508
36,73739,22456,044

176,8201,014,459
41,03749,516
51,251

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

6,592

6,778

6,532

93,82911,88850,284
6,849
1,502,788
2,172,086

94,155
5,937
51,261
5,682
1,496,900
2,144,778

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

3

IFRS Transition
Date
As of March 1,
2021

Previous fiscal
year
As of February 28,
2022(Millions of yen)
Current fiscal
year
As of February 28,
2023

213,398
300,073
141,595
4,109
171,598
2,539
20,071
853,385

213,728
245,485
67,372
7,403
246,847
2,576
16,688800,102

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

129,824886,605
18,094
16,540485
37,4093,470
1,092,430
1,945,816

159,984
869,314
19,80817,718459
38,5573,140
1,108,982
1,909,085

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

58,50646,828(991)
611
117,679

58,506
46,899(973)
1,588
125,832

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

222,635

231,853

249,9413,634
226,270
2,172,086

3,839
235,693
2,144,778

3,916
253,858
2,242,421

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 toowners of parent
Non-controlling interests
Total equity
Total liabilities and equity4(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
Previous fiscal year
From March 1, 2021
to February 28, 2022
943,206
454,889
488,317435,874
3,465
19,0774,664
8,819

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)5(Millions of yen)
Current fiscal year
From March 1, 2022
to February 28, 2023
1,000,385
473,074
527,310
462,998
3,133
12,985
1,468
9,158

432

363

33,10910,41822,69047,134
17,461
29,673

22,62565
22,69029,708(34)
29,673226.09225.89296.86296.60Consolidated Statement of Comprehensive Income(Millions of yen)Previous fiscal year
From March 1, 2021
to February 28, 2022
22,690

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

Current fiscal year
From March 1, 2022
to February 28, 2023
29,673(1,245)120

Remeasurements of defined benefit plans

(227)

1,125

Share of other comprehensive income ofinvestments accounted for using equity
method(10)

10Total of items that will not be reclassified to
profit or loss

(1,482)

1,256

3,114

2,175

29

18

3,144

2,194

1,661
24,3523,450
33,124

24,140211

33,04579

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 interests6(3) Consolidated Statement of Changes in Equity
Previous fiscal year ended February 28, 2022 (From March 1, 2021 to February 28, 2022)(Millions of yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of March 1, 2021

58,506

CapitalsurplusFinancialassetsExchange
Remeasureme measured at differences on
nts of defined fair value translation of
benefit plans through otherforeigncomprehensiv operations
e income

Treasuryshares46,828

(991)

-

611

-

Profit

Total

611
-

Other comprehensive income
Total comprehensive income(227)(1,255)

2,997

1,515

(227)

(1,255)

2,997

1,515

Purchase of treasury shares(0)-

Disposal of treasury shares

0-

Dividends-

Changes in equity of parent
company arising from transactions
with non-controlling interests
Exercise of share acquisitionrights (issuance of treasury
shares)

0

-

(17)

Share-based payment transactions

17

88

-

Transfer to retained earnings

227

Total transactions with owners
Balance as of February 28, 2022

-

-

70

17

227

(765)

-

(538)

46,899(973)-(1,409)

2,997

1,588

Noncontrollinginterests

Total equity

3,634

226,270

Retainedearnings

ProfitTotal

117,679

222,635

22,62522,62565

22,690

1,515

146

1,661

24,140211

24,352Other comprehensive income
Total comprehensive income

22,625Purchase of treasury shares

(0)

(0)

Disposal of treasury shares

00Dividends(538)

58,506Equity attributable to ownersof parent

Balance as of March 1, 2021

(765)

(15,010)

Changes in equity of parent
company arising from transactions
with non-controlling interests
Exercise of share acquisition rights(issuance of treasury shares)
Share-based payment transactions(15,010)(2)(15,012)

0

(3)

(3)

-

-

88

88

Transfer to retained earnings

538

-

-

Total transactions with owners(14,472)(14,922)(6)(14,928)

Balance as of February 28, 2022

125,832

231,853

3,839

235,6937

Current fiscal year ended February 28, 2023 (From March 1, 2022 to February 28, 2023)(Millions of yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of March 1, 2022

58,506

CapitalsurplusFinancialassetsExchange
Remeasureme measured at differences on
nts of defined fair value translation of
benefit plans through otherforeigncomprehensiv operations
e income

Treasuryshares

46,899(973)-(1,409)2,997

ProfitTotal comprehensive income
Purchase of treasury shares(0)

Disposal of treasury shares

0

1,125

130

2,079

3,336

1,125

130

2,079

3,336
-

Dividends-

Exercise of share acquisition rights(issuance of treasury shares)(24)

Share-based payment transactions

59

24

-

Transfer to retained earnings(1,125)(1,125)

Other-

Total transactions with owners

-

34

24

(1,125)--(1,125)58,506

46,934(948)-(1,278)

5,077

3,799

Noncontrollinginterests

Total equity

Equity attributable to ownersof parent

Retainedearnings

Balance as of March 1, 2022
ProfitTotal

125,832

231,853

3,839

235,693

29,70829,708(34)

29,673

3,336

114

3,450

33,04579

33,124

Other comprehensive income
Total comprehensive income

29,708Purchase of treasury shares

(0)

(0)

Disposal of treasury shares

00Dividends(15,011)(15,011)(2)(15,013)

Exercise of share acquisition rights(issuance of treasury shares)

(0)

(0)

Share-based payment transactions

59

59

Transfer to retained earnings

1,125

-

-

(5)

(5)

(5)

Total transactions with owners(13,890)(14,957)(2)(14,960)

Balance as of February 28, 2023

141,650

249,941

3,916

253,858

Other

1,588
-

Other comprehensive income

Balance as of February 28, 2023

Total

8

(4) Consolidated Statement of Cash Flows(Millions of yen)Previous fiscal year
From March 1, 2021 to
February 28, 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
SubtotalInterest and dividends received
Interest paid
Income taxes paid
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
Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Other

Current fiscal year
From March 1, 2022 toFebruary 28, 2023

33,109203,864
15,110(1,305)
8,819
1,473
15,933(4,368)(54,372)
1,177

47,134
211,745
9,623(1,280)8,298
1,438(28,693)
16,801
29,971(923)

68,00015,000(1,909)14,731

285,5311,202(3,541)(7,410)323,849
1,354(4,002)(11,502)275,781309,699(44,782)(42,239)(8,615)(12,730)
18,135(11,124)
11,902(366)(12,427)(4,461)
8,140(11,261)
11,880(210)(9,101)-498(1,146)(56,185)(51,725)

331,306(375,470)(172,467)(15,010)14

196,195(250,836)(182,918)(15,011)21

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(231,626)(252,548)

1,472

1,100

(10,557)
403,5546,526
392,996

Cash and cash equivalents at end of period

392,996

399,523

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

9

(5) Notes to Consolidated Financial Statements(Going Concern Assumption)
Not Applicable.
(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, Indonesia, the Philippines, and the United States of America (Hawaii).
2. Information on reportable segments
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.
Transition Date (March 1, 2021)(Millions of yen)
Reportable segment
Domestic
Convenience
Store
Business

Seijo Ishii
Business

Entertainmentrelated Business

Financial
Services
Business

Overseas
Business

Segment assets

1,654,427

79,63867,747451,107

Investments inequity method
affiliates

5,589

－

－

－

Others(Note 1)

Total

Adjustments(Note 2)

63,423

4,213

2,320,557(148,471)

2,172,086

136

867

6,592

－

6,592

Total

(Notes)1.The business segments within the “Others” category that do not fall under the main reportable segments
include Consulting Business, etc.
2. Adjustments to segment assets are due to the elimination of intra-segment transactions.

10Previous fiscal year (From March 1, 2021 to February 28, 2022)(Millions of yen)
Reportable segment
Others(Note 1)

Domestic
Convenience
Store
Business

Seijo Ishii
Business

242,462

Total

Adjustments(Note 2)

Total

Entertainmentrelated Business

Financial
Services
Business

Overseas
Business

782

－

－

3,318

－

246,564－

246,564

78,947

107,830

49,625－64,161－

300,565－

300,565

312,064

147

9,418

30,526

20,614

1,895

374,667－

374,667

20,880

50

－

－

478

－

21,409－21,409

1. Revenue fromexternalcustomers

654,355

108,81159,04430,526

88,572

1,895

943,206－

943,206

2. Intersegment
revenue ortransfer

7,039

806

1,354

3,077

－

630

12,907(12,907)－

Total

661,394

109,61760,39833,60388,572

2,526

956,113(12,907)943,206

Segment profit

33,167

12,849

2,684

2,951

708

81

52,442－52,442

Segment assets

1,602,731

80,043

66,103

407,441

96,541

4,437

2,257,300(112,521)

2,144,778

172,867

5,993

4,574

7,283

11,19375

201,987－

201,987

12,836

12

1,864

－

397

－

15,110－15,110

5,368

－

－

－

352

1,057

6,778

－

6,778

39,362

3,813

836

1,067

7,390

54

52,524－52,524

Revenue fromcontractswith customers
Income from
franchised stores
Net saleCompanyoperated stores
Other
Other revenue
Revenue fromexternal customers

Other
Depreciation
andamortization
Impairment
loss
Investments inequity method
affiliates
CapitalExpenditure(Notes)1. The business segments within the “Others” category that do not fall under the main reportable segments
include the Consulting Business, etc.
2. Adjustments to segment assets are due to the elimination of intra-segment transactions.

11Current fiscal year (From March 1, 2022 to February 28, 2023)(Millions of yen)
Reportable segment
Others(Note 1)

Domestic
Convenience
Store
Business

Seijo Ishii
Business

250,292

Total

Adjustments(Note 2)

Total

Entertainmentrelated Business

Financial
Services
Business

Overseas
Business

860

－

－

1,862

－

253,016－

253,016

77,237

109,134

58,016－

72,918－317,307－317,307337,907123

12,001

31,367

19,554

1,952

402,906－

402,906

26,504

27

－

－

622

－

27,154－

27,154

1. Revenue fromexternalcustomers

691,941

110,146

70,01731,367

94,9591,952

1,000,385－

1,000,385

2. Intersegment
revenue ortransfer

5,939

－

2,149

3,118

－

813

12,021(12,021)－

Total

697,881

110,146

72,16734,486

94,9592,765

1,012,406(12,021)1,000,385

Segment profit(loss)

47,611

12,798

4,858

3,848

(4,999)195

64,311－64,311

1,685,636

78,564

101,509413,733

95,7294,493

2,379,666(137,244)

2,242,421

174,287

6,780

4,881

7,184

16,09372

209,298－

209,298

9,133

3

92

－

393

－

9,623

－

9,623

5,245

－

－

－

382

904

6,532

－

6,532

33,907

4,556

1,774

4,060

10,323

46

54,667－54,667

Revenue fromcontractswith customers
Income from
franchised stores
Net saleCompanyoperated stores
Other
Other revenue
Revenue fromexternal customers

Segment assets
Other
Depreciation
andamortization
Impairment
loss
Investments inequity method
affiliates
CapitalExpenditure(Notes)1. The business segments within the “Others” category that do not fall under the main reportable segments
include the Consulting Business, etc.
2. Adjustments to segment assets are due to the elimination of intra-segment transactions.

123. Information on products and services
A description is omitted because the products and services are the same as those of the reportable segments.
4. Information by geographical area
(1) Revenue from external customers
Previous fiscal year
From March 1, 2021
to February 28, 2022

(Millions of yen)
Current fiscal year
From March 1, 2022
to February 28, 2023

Japan

854,633

905,425

Overseas*

88,572

94,959943,206

1,000,385

Total* Overseas mainly includes China.
(2) Non-current assets (excluding financial assets, deferred tax assets and assets related to retirement benefits)(Millions of yen)
IFRS Transition Date
Previous fiscal year
Current fiscal year
As of March 1,
As of February 28,
As of February 28,
2021
2022
2023
Japan
Overseas*
Total

1,315,067

1,289,321

1,353,582

31,71956,225

62,106

1,346,786

1,345,546

1,415,689* Overseas mainly includes China.
5. Information by major customer
There are no external customers that account for 10% or more of the Group’s operating revenues.

13

(Per Share Information)
1. Basis for the calculation of basic earnings per share
Basic earnings per share and the basis for calculating basic earnings per share are as follows:
Previous fiscal year
From March 1, 2021 to
February 28, 2022
Profit attributable to owners of parent(Millions of yen)
Profit not attributable to common shareholders ofparent (Millions of yen)
Profit used for calculating basic earnings per share(Millions of yen)
Weighted-average number of shares of common stock(Thousands of shares)
Basic earnings per share (Yen)Current fiscal year
From March 1, 2022 toFebruary 28, 2023

22,62529,708－－22,62529,708100,070

100,076226.09296.86

2. Basis for the calculation of diluted earnings per share
Diluted earnings per share and the basis for calculating diluted earnings per share are as follows:
Previous fiscal year
From March 1, 2021 to
February 28, 2022
Profit used for calculating basic earnings per share(Millions of yen)
Profit adjustments (Millions of yen)
Profit used for calculating diluted earnings per share(Millions of yen)
Weighted-average number of shares of common stock(Thousands of shares)
Effect of dilutive securities for share-based
compensation (Thousands of shares)
Weighted-average number of shares of common stock
after dilution (Thousands of shares)
Diluted earnings per share (Yen)
Potential shares not included in calculation of diluted
earnings per share due to anti-dilutive effect(Significant Subsequent Events)
Not applicable.

14

Current fiscal year
From March 1, 2022 toFebruary 28, 2023

22,62529,708－－

20,62529,708100,070

100,07688

86

100,159

100,162225.89296.60－－(First-Time Adoption of IFRS)The Lawson Group has prepared its consolidated financial statements in compliance with IFRS from thecurrent fiscal year. The consolidated financial statements for the year ended February 28, 2022 were the mostrecent financial statements prepared in accordance with Japanese GAAP and the date of transition to IFRS
(hereinafter, the “Transition Date”) is March 1, 2021.
1. Exemptions and mandatory exceptions under IFRS 1
In principle, IFRS requires that companies adopting IFRS for the first time (hereinafter, “First-time
Adopter”) apply the standards required under IFRS retrospectively. However, for some of the standards
required under IFRS, IFRS 1 “First-Time Adoption of International Financial Reporting Standards” (hereinafter,“IFRS 1”) specifies standards for which application of the exemption is required and those for which theapplication of the exemption is voluntary. The impact due to the application of these exemptions is reflected as
an adjustment to retained earnings and other components of equity at the Transition Date. The exemptions that
the Group applies in connection with the transition from Japanese GAAP to IFRS are as follows:(1) Business combinationsFirst-time Adopter may elect not to apply IFRS 3 “Business Combinations” (hereinafter, “IFRS 3”)
retrospectively to past business combinations. The Group elected not to apply IFRS 3 retrospectively tobusiness combinations that occurred before the Transition Date. Accordingly, goodwill and equivalent togoodwill in equity method affiliates arising from business combinations that occurred before the Transition
Date were recorded at the carrying amount under Japanese GAAP at the Transition Date.
However, goodwill was tested for impairment as of the Transition Date irrespective of whether there wasany indication of impairment.
(2) Cumulative amount of exchange differences on translation of foreign operations
Under IFRS 1, entities can elect either to deem accumulated exchange differences on translation of foreign
operations to be zero as of the Transition Date, or to retroactively calculate the exchange differences to the dateof the founding or acquisition of the relevant subsidiary or affiliate. The Group elected to deem the cumulative
amount of exchange differences on translation of foreign operations to be zero as of the Transition Date.
(3) Deemed cost
Under IFRS 1, the fair value of property and store equipment, investment property and intangible assets at
the Transition Date can be used as deemed cost. The Group uses the fair value at the Transition Date as thedeemed cost for certain items of property and store equipment (buildings and structures).
(4) Leases
IFRS 1 allows First-time Adopter to determine whether or not an arrangement contains a lease on the basisof facts and circumstances existing at Transition Date. In addition, IFRS 1 permits a First-time Adopter tomeasure a lease liability at the present value of the remaining lease payments, discounted using the lessee’s
incremental borrowing rate at the date of transition to IFRS, and to measure a right-of-use asset at an amountequal to the lease liability. Furthermore, IFRS 1 permits a First-time Adopter, to recognize a lease for which
the lease term ends within 12 months of the Transition Date or for which the underlying asset is of low value
as an expense and initial direct costs are excluded from the measurement of right-of-use assets at Transition
Date.
The Group applies these exemptions to recognize and measure leases.
(5) Designation of financial instruments recognized prior to the Transition Date
IFRS 1 allows First-time adopter to designate changes in fair value of equity instruments as financial assets
measured through other comprehensive income on the basis of facts and circumstances existing at the date of15

transition. The Group determined the classification based on the facts and circumstances that exist at theTransition Date and designated equity instruments as financial assets measured through other comprehensive
income.
(6) Share-based payments
IFRS 1 encourages but does not require First-time adopter to apply IFRS 2 “Share-based Payment”(hereinafter, “IFRS 2”) to share-based payments vested before the Transition Date. The Group elected not toapply IFRS 2 to share-based payments vested before the Transition Date.
2. Mandatory exceptions under IFRS 1IFRS 1 prohibits retrospective application of IFRS with respect to “estimates” and “classification andmeasurement of financial instruments”, etc.
The Group has applied IFRS to these items prospectively from the Transition Date.
3. Reconciliations
Reconciliations required to be disclosed in the first-time adoption of IFRS are as follows.
In the reconciliation below, “Reclassification” includes items that do not affect retained earnings andcomprehensive income, while “Differences in recognition and measurement” include items that affect retained
earnings and comprehensive income. As a “Difference in scope of consolidation,” certain insignificant
subsidiaries that were not included in the scope of consolidation and were classified as non-consolidated
subsidiaries under Japanese GAAP, are included in the scope of consolidation under IFRS.

16

Reconciliation of equity as of the Transition Date (March 1, 2021)(Millions of yen)

Presentation underJapanese GAAP

Differences
DifferenceinJapanese Reclassific in scope of recognition
consolidati
and
GAAP
ation
on
measureme
nt

IFRS

Notes

AssetsAssetsCurrent assets

Current assets
Cash and cash(a)equivalents

Cash and deposits

402,584(1,447)

2,417―

403,554

Accounts receivabledue from franchised
stores46,385

171,488(250)(10,350)

207,273

Lease receivables

16,621―――

16,621

Merchandise
Accounts receivableother

20,657

760

1,374

(252)

22,539(c)

161,062 (161,062)

―

―

―

(b)

Other
Allowance for
doubtful accounts
Total current assets
Non-current assets
Property and store
equipment

43,519(36,097)

(820)

―

―

21,506371(9,171)

(20)

20

―

―

690,811(4,832)

3,093(19,774)

367,640 (145,430)(b)― (b),(d)669,298

Total current assets
Non-current assets
Property and store
equipment
Right-of-use assets

2,756(58,137)

166,829Ⓐ

838,851 1,034,508

Ⓑ

2,399

―

―

―

36,73736,737

38,215

―

1,009

―

39,224

48,1919,170

122(1,440)56,044―

9,691(3,138)39

Guarantee deposits

103,030

(626)

303

(8,879)Investment securities

27,624(6,618)(8,900)(216)

Investment propertyⒸ

Goodwill
Intangible assets

Investments
accounted for using
equity method
93,829
Guarantee deposits
Other financial
11,888 (d),(e)assets6,592(e)Long-term loans
receivable
Deferred tax assets

40,621(40,621)――33,484―86

16,71350,284Other

16,474(14,654)

35

4,993

6,849

(d)

(663)

663

―

―

―

(d)

674,618

4,832(5,324)

828,662 1,502,788

1,365,430―(2,231)

808,887 2,172,086

17

Finance leasereceivables
Inventories(a),(b), Other financial(c),(d) assets
12,706
Other current assets

193,257

Allowance for
doubtful accounts
Total non-current
assetsTotal assets

Trade and otherreceivables

6,601

―
Goodwill
Other intangible
assetsPresentation under
IFRS― (d),Ⓑ
Deferred tax assets
Other non-current
assetsTotal non-current
assetsTotal assets

(Millions of yen)

Presentation underJapanese GAAP

Differences
DifferenceinJapanese Reclassific in scope of recognition
consolidati
and
GAAP
ation
measureme
on
nt

IFRS

Notes

Presentation under
IFRS

Liabilities

Liabilities and equity

Current liabilities
Accounts payabletrade
Accounts payableother
Deposits received
Short-term loans
payableCurrent portion of
long-term loans
payableCurrent liabilities
Trade and otherpayables127,486

92,646997(7,731)

213,398(f)

90,798(90,798)

―

―

―

(f)

246,11056,45623(2,516)300,073(g)

42,320100,000

(700)

(24)

141,595

100,000 (100,000)

―

―

―

Borrowings

Income taxes
payableIncome taxes payable

4,078

―

31

―

4,109

Lease obligations

44,584(44,584)

―

―

―

(h)

Call money
Deposits received forbanking business

40,000(40,000)

―

―

―

(h)

52,168(52,168)

―

―

―

(g)

―

84,588

747

86,262

171,598

(h)

4,818

(4,818)

―

―

―

(i)

―

71

―

2,467

2,539

Other

15,388

2,892

315

1,475

Total current
liabilities

767,754

4,284

1,413

79,932130,000

―

―

(175)

129,824

121,491―

1,502

763,611886,605Ⓑ―

15,845―

2,249

18,094(h)16,278

―

148

113

16,540

Ⓓ

485

―

―

―

485

35,694

―

―

1,714

37,409

277

(277)

―

―

―

20,516(19,852)

56

2,750

3,470

324,743(4,284)

1,707

770,264 1,092,430

1,092,498

―

3,121

850,196 1,945,816

Provision for bonuses

Non-current liabilities
Long-term loans
payableLease obligations

Net defined benefit
liability
Deferred tax
liabilities
Asset retirement
obligations
Provision for
retirement benefits to
executive officers
and audit andsupervisory board
members
Other
Total non-current
liabilities
Total liabilities

18

Deposits received

Other financial
liabilities

Provisions(f),(h), Other current
20,071(i)
liabilities
Total current
853,385
liabilities
Non-current
liabilities
Borrowings

(i)

(h)

Lease liabilities
Other financial
liabilities
Retirement benefit
liability
Deferred tax
liabilities
Provisions

Other non-current
liabilities
Total non-current
liabilities
Total liabilities

(Millions of yen)

Presentation underJapanese GAAP

Japanese
GAAP

Reclassi
fication

Difference inscope ofconsolid
ation

Differences inrecogniti
on andmeasure
ment

IFRS

Notes

Net assets

Presentation under
IFRS

EquityCapital stock

58,506―――58,506

Capital surplus

46,494333――

46,828Treasury shares(991)
Accumulated othercomprehensive
5,123
incomeSubscription rights to333
sharesRetained earnings
158,498
Non-controlling
4,965interests
Total net assets
272,931
Total liabilities and net
1,365,430
assets

―

―

―

(991)

―

―

(4,511)

611

Ⓓ,Ⓔ

(333)

―

―

―

(j)

―

(6,396)(34,422)

117,679

Ⓕ

―

1,043

(2,374)

3,634―(5,352)(41,308)

226,270―(2,231)

808,887 2,172,086

19

Share capital(j)Capital surplus
Treasury shares
Other componentsof equity

Retained earnings
Non-controllinginterests
Total equity
Total liabilities andequityReconciliation of equity as of February 28, 2022 (previous fiscal year end)
(Millions of yen)

Presentation underJapanese GAAP

Differences
DifferenceinJapanese Reclassific in scope of recognition
consolidati
and
GAAP
ation
measureme
on
nt

IFRS

Notes

Presentation under
IFRS

AssetsAssetsCurrent assets

Current assets
Cash and cash
equivalents

Cash and deposits

388,463

(18)

4,519

32

392,996(a)Accounts receivabledue from franchised
stores47,202

156,872(1,402)(9,267)

193,405(b)

Lease receivables

15,071―――

15,071

Merchandise
Accounts receivableother

22,128

792

2,399

(254)

25,066(c)

146,443 (146,443)

―

―

―

(b)

Other
Allowance for
doubtful accounts
Total current assets
Non-current assets
Property and store
equipment(a),(b), Other financial(c),(d) assets
12,453
Other current assets(38,128)(1,321)――

22,240876(10,663)

(17)

17

―

―

―

667,627(4,667)

5,071(20,152)

647,878

Total current assets
Non-current assets
Property and store
equipment
Right-of-use assets

368,768 (142,779)

8,885(b),(d)4,137(53,306)

176,820Ⓐ

821,081 1,014,459Ⓑ

187,433

5,944

―

―

―

41,03741,03734,459―11,2273,829

49,51643,2869,203

75(1,313)

51,251―

9,687(2,936)27

6,778

Guarantee deposits

103,277

(537)

336

(8,920)94,155Investment securities

21,738

4,062(19,769)

(93)

5,937

(d),(e)(d),Ⓑ

Investment propertyⒸ(e)38,044(38,044)―――

34,736―122

16,402

51,261

Other

26,066(25,119)

31

4,703

5,682

(d)

(759)

759

―

―

―

(d)

669,618

4,667

(831)

823,445 1,496,900

1,337,245

―

4,240

803,293 2,144,778

20

Goodwill
Intangible assets

Long-term loans
receivable
Deferred tax assets

Allowance for
doubtful accounts
Total non-current
assetsTotal assets

Finance leasereceivables
Inventories

48,334―
Goodwill
Other intangible
assetsTrade and otherreceivables

Investments
accounted for using
equity method
Guarantee deposits
Other financial
assetsDeferred tax assets
Other non-current
assetsTotal non-current
assetsTotal assets

(Millions of yen)

Presentation underJapanese GAAP

Differences
DifferenceinJapanese Reclassific in scope of recognition
consolidati
and
GAAP
ation
measureme
on
nt

IFRS

Notes

Presentation under
IFRS

Liabilities

Liabilities and equity

Current liabilities
Accounts payabletrade
Accounts payableother
Deposits received
Short-term loans
payableCurrent portion of
long-term loans
payableCurrent liabilities
Trade and otherpayables125,681

92,564

2,997(7,514)

213,728(f)

90,412(90,412)

―

―

―

(f)

151,809

94,829202(1,356)245,485(g)

47,07220,000300―

67,37220,000(20,000)―――

Income taxes payable

7,368

―

35

―

7,403

Lease obligations

45,955(45,955)

―

―

―

(h)

Call money
Deposits received forbanking business

108,000 (108,000)

―

―

―

(h)

91,420(91,420)

―

―

―

(g)

―

153,955

1,938

90,952

246,847

(h)

4,854

(4,854)

―

―

―

(i)

―

31

―

2,545

2,576

Other

12,117

2,668

414

1,488

Total current
liabilities

704,691

3,406

5,889

86,114160,000

―

92

(107)

159,984

118,445―3,888

746,980

869,314Ⓑ―

17,282490

2,034

19,808(h)17,438

―

140

139

17,718

Ⓓ

449

―

―

9

459

36,622

―

―

1,935

38,557

248

(248)

―

―

―

20,875(20,441)

55

2,649

3,140

354,080(3,406)

4,666

753,642 1,108,982

1,058,771―

10,556

839,756 1,909,085

Provision for bonuses

Non-current liabilities
Long-term loans
payableLease obligations

Net defined benefit
liability
Deferred tax
liabilities
Asset retirement
obligations
Provision for
retirement benefits to
executive officers
and audit andsupervisory board
members
Other
Total non-current
liabilities
Total liabilities

21

Deposits received
Borrowings

Income taxes
payableOther financial
liabilities

Provisions(f),(h), Other current
16,688(i)
liabilities
Total current
800,102
liabilities
Non-current
liabilities
Borrowings

(i)

(h)

Lease liabilities
Other financial
liabilities
Retirement benefit
liability
Deferred tax
liabilities
Provisions

Other non-current
liabilities
Total non-current
liabilities
Total liabilities

(Millions of yen)

Presentation underJapanese GAAP

Japanese
GAAP

Reclassi
fication

Difference inscope ofconsolid
ation

Differences inrecogniti
on andmeasure
ment

IFRS

Notes

Net assets

Presentation under
IFRS

EquityCapital stock

58,506―――58,506

Capital surplus

46,495368―

35

46,899Treasury shares(973)
Accumulated othercomprehensive
7,563
incomeSubscription rights to368
sharesRetained earnings
161,299
Non-controlling
5,213
interests
Total net assets
278,473
Total liabilities
1,337,245
and net assets

―

―

―

(973)

―

384

(6,359)

1,588

Ⓓ,Ⓔ

(368)

―

―

―

(j)

―

(7,713)(27,753)

125,832

Ⓕ

―

1,012

(2,386)

3,839―(6,316)(36,463)

235,693―4,240

803,293 2,144,778

22

Share capital(j)Capital surplus
Treasury shares
Other componentsof equity

Retained earnings
Non-controllinginterests
Total equity
Total liabilities andequityReconciliation of income and comprehensive income for the previous fiscal year (From March 1, 2021 to
February 28, 2022)(Millions of yen)
Differences
DifferenceinPresentation under
Presentation underJapanese Reclassific in scope of recognition
IFRS
Notes
consolidati
and
IFRS
Japanese GAAP
GAAP
ation
on
measurementGross operating
Gross operating
698,371(205)
12,833 232,207 943,206(k)revenuerevenue
Cost of sales
199,738―
6,949 248,201 454,889
Cost of sales
Operating grossprofitSelling, general and(k),(n),435,874
administrativeⒸ,Ⓓ
expenses

Operating gross profit

498,633

(205)

5,883

(15,994)

488,317

Selling, general andadministrative
expenses451,537

496

6,960

(23,119)

―

5,021

160

(1,716)

3,465

(l)

Other income―

21,586351(2,860)19,077(l)Other expenses

Non-operating income
Non-operating
expenses

6,420(6,420)

―

―

―

5,944

(5,944)―――Extraordinary income

1,103(1,103)―――Extraordinary losses

20,576(20,576)

―

―

―

―

2,449

(186)

2,401

4,664

(l)

Finance income

―

4,231

182

4,404

8,819

(l),(n) Finance costs
Share of profit ofinvestments
accounted for using
equity method

―

50

354

27

432

Profit before incometaxes

28,098―(1,283)

6,294

33,109

Income taxes-current

11,226(1,160)137

215

10,418

Income taxes-deferred(1,160)

1,160

―

―

―

Profit18,032―(1,420)6,078

22,690

ProfitProfit attributable toowners of parent

17,900―(1,371)

6,096

22,625

Profit attributable toowners of parent

Profit attributable tonon-controllinginterests

131

―

(48)

(17)

65

Profit attributable tonon-controllinginterests

23(l)Profit before tax(m)Income taxes

(Millions of yen)

Presentation underJapanese GAAP

ProfitOther comprehensive
incomeDifferences
DifferenceinJapanese Reclassific in scope of recognition
consolidati
and
GAAP
ation
on
measurement
18,032―(1,420)
6,078

IFRS

Notes

22,690

ProfitItems that will not bereclassified to profit
or loss
Financial assets
measured at fairvalue through othercomprehensive
incomeRemeasurements ofdefined benefit
plans

Valuation difference
on available-for-salesecurities

(196)

―

―

(1,049)(1,245)Ⓔ

Remeasurements ofdefined benefit plans

(92)

―

―

(134)

(227)

Ⓓ

Revaluation reserve
for land

138

―

―

(138)

―

―

―

(10)

―

Presentation under
IFRS

Share of othercomprehensive
income ofinvestments
accounted for using
equity method(10)

Items that may bereclassified to profit
or loss
Foreign currencytranslation
adjustment

Total othercomprehensive
incomeComprehensive
income

2,730

―

342

41

3,114

―

―

―

29

29

2,580

―

332

(1,251)

1,661

20,613―(1,088)

4,827

24,352

24Ⓔ

Exchangedifferences ontranslation offoreign operations
Share of othercomprehensive
income ofinvestments
accounted for using
equity method
Other comprehensive
income(net of tax)
Comprehensive
income4. Note on reclassifications and reconciliations of equity, profit and loss, and comprehensive income(Reclassifications)
In accordance with IFRS, the Group has reclassified certain elements of equity, profit and loss, andcomprehensive income. The main changes are as follows:(a) Cash and cash equivalents
Time deposits with maturities of more than three months, which were included in “Cash and deposits”
under Japanese GAAP, are reclassified to “Other financial assets (current)” under IFRS.
(b) Trade receivables“Accounts receivable-other” and “Accounts receivable-due from franchised stores,” which wereseparately presented, and “Accounts receivable-trade” and “Deposits paid,” which were included in “Other”
in the “Current assets” section under Japanese GAAP, are reclassified and presented as “Trade and otherreceivables” under IFRS. In addition, “Allowance for doubtful accounts (current)” related to “Trade andother receivables” is also reclassified and is directly deducted from “Trade and other receivables,” which arepresented on a net basis.
(c) Inventories“Merchandise,” which was separately presented and “Supplies,” “Raw materials,” and “Finished goods,”
which were included in “Other” in the “Current assets” section under Japanese GAAP, are presented as“Inventories” under IFRS.
(d) Other financial assets“Investment securities (except equity-method affiliates),” and “Long-term loans receivable (except
construction cooperation payments),” which were separately presented, “Short-term loans receivable” and“Advances paid,” which were included in “Other” in the “Current assets” section, and “Insurance funds,”
which were included in “Other” in “Investments and other assets” under Japanese GAAP, are presented as“Other financial assets” under IFRS. In addition, the “Allowance for doubtful accounts (current)” related to“Other financial assets” and the “Allowance for doubtful accounts (non-current)”, which were presented
separately under Japanese GAAP, have been reclassified and are directly deducted from “Other financial
assets,” which are presented on a net basis.
(e) Investments accounted for using equity method“Investments accounted for using equity method,” which were included in “Investment securities” underJapanese GAAP, are separately presented under IFRS.
(f) Trade payables“Accounts payable-trade” and “Accounts payable-other,” which were separately presented, and “Accounts
payable-due from franchised stores,” which were included in “Other” in “Current liabilities” under Japanese
GAAP, are reclassified as “Trade and other payables” under IFRS.
(g) Deposits received“Deposits received for banking business” which was separately presented under Japanese GAAP isreclassified as “Deposits received” under IFRS.
(h) Other financial liabilities“Lease obligations” and“Call money,” which were separately presented in the “Current liabilities” section,and “Guarantee deposits,” which were included in “Other” in “Non-current liabilities” under Japanese GAAP,
are presented as “Other financial liabilities” under IFRS.
(i) Provisions“Provision for bonuses,” which was separately presented under Japanese GAAP, is reclassified as “Other
current liabilities” under IFRS. Moreover, “Asset retirement obligations,” which were separately presented
under Japanese GAAP, is presented as “Provisions” under IFRS.
(j) Capital surplus“Subscription rights to shares,” which was separately presented under Japanese GAAP, is included in“Capital surplus” under IFRS.

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(k) Sales“Compensation to merchants,” which was included in “Selling, general and administrative expenses”
under Japanese GAAP, is offset against net sales as consideration paid to customers under IFRS.
(l) Non-operating income (losses) and extraordinary income (losses)
The items presented as “Non-operating income,” “Non-operating expenses,” “Extraordinary income” and“Extraordinary losses” under Japanese GAAP are presented as “Finance income” and “Finance costs” under
IFRS for financial-related gains and losses, while other items are presented as operating items in “Other
income,” “Other expenses,” and “Share of profit of investments accounted for using equity method.”(m) Income taxes“Income taxes-current” and “Income taxes-deferred” which were separately presented under Japanese
GAAP, are presented collectively as “Income taxes” under IFRS.
(n) Periodic interest costs
Periodic interest costs on asset retirement obligations etc. incurred over time, which were included in“Selling, general and administrative expenses” under Japanese GAAP, are included in “Finance costs” under
IFRS in accordance with the regulations.
(Differences in recognition and measurement)Ⓐ Property and store equipment
Upon first-time adoption, the Company elected the exemption provided in IFRS 1 and used the fair value
as of the Transition Date of certain property and store equipment (buildings and structures) as deemed cost
under IFRS at that date, and transferred the difference between the fair value and the Japanese GAAP
carrying amount to retained earnings.
The fair value of such property and store equipment as of the transition date was 35,909 million yen, a
reduction of 44,315 million yen compared with the carrying amount in accordance with Japanese GAAP.
Furthermore, fair value is determined by third-party appraisals and other methods and is classified as Level
3.
Ⓑ Right-of-use assets
Operating leases expensed under Japanese GAAP are recorded as both a right-of-use asset and a leaseliability under IFRS. Furthermore, construction cooperation payments, which were separately classified as“Long-term loans receivable” under Japanese GAAP, are reclassified as “Right-of-use assets” and offset
against “Lease liabilities.”Ⓒ Recorded amount of goodwill and goodwill to equity-method affiliates
Under Japanese GAAP, goodwill is amortized but, under IFRS, goodwill is not amortized but tested for
impairment each period beginning on the Transition Date.
In addition, goodwill of equity-method affiliates is amortized under Japanese GAAP but not under IFRS,
and thus amortization ends after the Transition Date.
Ⓓ Employee benefit
ⅰ Liabilities have been recorded for unused paid vacation and long service compensation, which were notaccounted for under Japanese GAAP, and an adjustment has been made to “Selling, general andadministrative expenses.”ⅱ Unrecognized actuarial gains and losses on defined benefit plans were included in “Accumulated othercomprehensive income” in Japanese GAAP, whereas in IFRS they are recognized in other comprehensive
income when incurred and immediately transferred to retained earnings.
Ⓔ Other components of equity
ⅰ The Company has elected the exemption provided in IFRS 1 and transferred the balance of all
accumulated differences on translation of foreign operations to retained earnings as of March 1, 2021, theTransition Date.
ⅱ Under Japanese GAAP, unlisted shares were carried at cost and, if necessary, impairment loss wasrecognized when the financial position of the issuing company deteriorated; under IFRS, the Company
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has elected to measure them at fair value through other comprehensive income.
Ⓕ Retained earnings(Millions of yen)
End of previous fiscal year
(As of February 28, 2022)

IFRS Transition Date
(As of March 1, 2021)
Adjustments due to difference in scope of
consolidation
Adjustments for property and store
equipment
Adjustments for right-of-use assets andlease liabilities
Adjustments for goodwill(6,396)(7,713)(30,659)(27,611)(1,400)(3,045)―

3,857

Adjustments for employee benefits(2,035)(2,115)Adjustments for other components of equity

4,923

6,667

Other

(5,251)(5,505)(40,818)(35,466)

Total

5. Adjustments for cash flows for the previous fiscal year (From March 1, 2021 to February 28, 2022)
Under Japanese GAAP, lease payments under operating leases are presented in cash flows from operating
activities. However, under IFRS, all leases should be recognized as lease liabilities, in principle, and repaymentsof lease liabilities are presented in cash flows from financing activities.
As a result, “Net cash provided by (used in) financing activities” decreased by 123,243 million yen, while“Net cash provided by (used in) operating activities” increased by 123,243 million yen.

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