Flash Report on the Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending February 28, 2018
January 10, 2018
Listed Company Name: Lawson, Inc.
Tokyo Stock Exchange (First Section)
Code No.: 2651
(URL http://www.lawson.jp/en/ir)
Company Representative: Sadanobu Takemasu, President and CEO, Representative Director,
Chairman of the Board
Contact: Tomoki Takanishi, Deputy Senior Vice President, Finance and Accounting Division Director
Tel.: +81-3-5435-2773
Scheduled date for submission of quarterly securities report: January 12, 2018
Scheduled date for payment of dividend: －Supplementary materials for quarterly financial results: Yes
Holding of presentation of quarterly results: None
(Amounts less than one million yen are truncated)
1. Consolidated operating results for the third quarter ended November 30, 2017 (from March 1, 2017 toNovember 30, 2017)(1) Consolidated operating results (cumulative)
Note: Percentages represent increases (decreases) compared with the corresponding period of the previous fiscal
year.

For the third quarter ended
November 30, 2017
November 30, 2016
Note: Comprehensive income:Gross operating
revenue

Operating income

Ordinary income

Millionsof yen494,053
461,955

Millionsof yen54,261
57,685

Millionsof yen53,781
56,906

%
6.9
6.1

%
(5.9)
(7.0)

%
(5.5)
(6.2)

Profit attributableto owners ofparentMillions%of yen32,795(3.1)
33,855
7.6

For the third quarter ended November 30, 201734,421 million yen
For the third quarter ended November 30, 2016
31,529 million yen
Profit per share
Diluted profit per share
For the third quarter ended
Yen
Yen
327.82327.63
November 30, 2017338.51
338.26
November 30, 2016

9.2%
(4.6)%(2) Consolidated financial position
Total assets

Net assets

November 30, 2017

Millions of yen
914,648

Millions of yen
286,959

Shareholders’ equity
ratio
%
30.7

February 28, 2017866,577

285,995

31.7

As of

Reference: Shareholders’ equity:
As of November 30, 2017
As of February 28, 2017

280,941 million yen
274,880 million yen

2. Dividends

2016 fiscal year

1Q
Yen
－

1H
Yen
125.002017 fiscal year－

127.50

Annual dividends per share
3Q
Year-end
Yen
Yen－
125.002017 fiscal year (forecast)
Note: Revision of the most recent dividends forecast: None

Total
Yen
250.00－127.50

255.003. Forecast of consolidated operating results for the 2017 fiscal year ending February 28, 2018 (from March 1,
2017 to February 28, 2018)
Note: Percentages represent increases (decreases) compared with the corresponding period of the previous fiscal
year.
Gross operating
revenue

Operating income

Ordinary income

Millions
Millions
Millions%%%of yenof yenof yen2017 fiscal year
672,000
6.4
68,500(7.1)
65,500 (10.3)
Note: Revision of the most recent consolidated operating results forecast: None

Profit attributableto owners of parent
Millionsof yen33,500

Profit
per
share

%

Yen

(8.0)

334.81

4. Notes(1) Change in significant subsidiaries during the quarterly consolidated period (Changes in certain specified
subsidiaries resulting in changes in scope of consolidation): None
Added: None

Excluded: None

(2) Adoptions of specific accounting methods for preparing quarterly financial statements: None
(3) Changes in accounting policies, changes in accounting estimates or restatements
1. Changes in accounting policies associated with revision in accounting standards: None
2. Changes in accounting policies other than 1. above: None
3. Changes in accounting estimates: None
4. Retrospective restatements: None
(4) Number of shares outstanding (common stock)
1. Number of shares outstanding at the end of period (including treasury shares)
As of November 30, 2017:
100,300,000
As of February 28, 2017:
2. Number of treasury shares at the end of period
As of November 30, 2017:245,121

As of February 28, 2017:

3. Average number of shares during the period (cumulative nine months)
As of November 30, 2017:
100,041,377
As of November 30, 2016:

100,300,000

285,191
100,009,087

Note: This flash report is exempt from quarterly review.
Note: Descriptions on appropriate use of financial performance forecasts and other special notes.
Forward-looking statements presented herein such as financial forecasts are based on currently available
information and certain presumptions deemed to be reasonable as of the date of announcement. The
achievement of said forecasts cannot be guaranteed. Actual results may be materially different from those in
the forecast as a result 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 Forward-looking 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. Consolidated Financial Statements and Main Notes ··················································································

9(1) Consolidated Balance Sheet ···············································································································

9(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ·················

11

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

11

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

12(3) Notes to Consolidated Financial Statements························································································

13(Going Concern Assumption) ·············································································································

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

13(Additional Information) ·····················································································································

131

1．Qualitative Information Regarding Quarterly Financial Results(1) Explanation Regarding Consolidated Operating Results
During the third quarter of fiscal 2017, nine months from March 1 to November 30, 2017, we have advanced
and accelerated our “1000-Day Action Plan”, which is in its second year, and focused our business activities
on building Lawson’s next-generation convenience store model. The convenience store industry is now
undergoing a period of drastic transformation. This is attributable to changes in community needs resulting
from an aging population and the prevalence of the nuclear family, among others, which have triggered a
reorganization of the industry. We have made efforts to evolve our business model as a manufacturing retailer
targeting small catchment areas and to raise our store productivity to an unprecedented level toward the goal of
fulfilling our customers’ needs in everyday life by serving as an essential part of their communities.
As a result, for the third quarter of fiscal 2017 on a consolidated basis, gross operating revenue increased to494,053 million yen (up 6.9% from previous fiscal year), operating income decreased to 54,261 million yen(down 5.9% from previous fiscal year) and ordinary income decreased to 53,781 million yen (down 5.5% fromprevious fiscal year). Profit attributable to owners of parent decreased to 32,795 million yen (down 3.1% fromprevious fiscal year).
Furthermore, we also focused on addressing operating risks based on the 2017 Basic Policy for Improvementof Internal Control Systems. We will continue promoting internal control even more.
Operating results by business segment were as follows:(Domestic Convenience Store Business)
In our convenience store business, we continued to develop products with features distinct to Lawson andstrengthened our mainstay products including counter fast food items, rice balls, and bento boxed lunches. We
also endeavored to enhance store productivity by such measures as beginning the phased introduction of tablet
terminals in August 2017 at LAWSON stores nationwide to facilitate proper sales management of counter fast
food items. Furthermore, new point-of-sale (POS) cash registers (for sales information management) equippedwith an automatic change dispenser function began to be introduced in November 2017 with the aim ofachieving higher cash-handling efficiency at stores, including expediting cash register transactions. These cash
registers will be installed at more LAWSON stores.
[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. Furthermore, we also actively promoted
not only existing stores but also new stores by strengthening our product lineup, and improving operations andfranchise support by headquarters.
Furthermore, in October 2017, we opened the Lawson Open Innovation Center, which gathers together
world-leading IT technologies in order to explore how they can be put to practical use at our stores. A plan isunderway to commence a pilot trial of unmanned cash registers during nighttime hours at several stores in themetropolitan Tokyo area by around spring of 2018. We will continue harnessing diverse technologies to createa model for our next-generation convenience store.
2

[Merchandising and Service Strategies]
On the merchandise side, we revamped our lineup of regular items including bento boxed lunches byreconsidering their basic ingredients and production methods with uncompromising care. First, in October 2017,
we launched afresh our original rice ball brand, “Onigiriya,” by changing the preparation methods and mix ofrice, seaweed and salt—the basic ingredients of rice balls—and by making improvements to the fillings. The
new Onigiriya lineup was hugely popular, recording steady growth in sales. Subsequently, in November 2017,
we launched the “Korega Hamburger Steak Bento Boxed Lunch,” which is based on our popular regular
hamburger bento, but with new ingredients and a new production method. We will be releasing in phases
additional items under the Korega (meaning, “This is”) bento series.
In the dessert range, the “Uchi Café SWEETS X GODIVA” series produced in collaboration with Godiva
with well-selected ingredients and a special production method remained popular. As of the end of November
2017, five products were offered from the series, and all were huge hits.
In the counter fast food range, the “Deka Yakitori” (large grilled chicken) and “L-Chiki” (fried chicken)
continued to record strong performance, while on October 17, 2017, hot milk made using 100% raw milk was
released, also enjoying huge popularity.
In addition, we continued to strengthen our merchandise assortment under our “Lawson Select” brand witha focus on daily delivered food and frozen food, as well as in our readymade dish lineup with a change in oursalad range.
Furthermore, in November 2017 we reviewed the composition of rice bran and oat bran in the bread doughfor the bran bread series*1 in order to enhance the fragrance and texture, successfully making the bread series
even more popular among health-conscious customers.
In addition to thus strengthening our merchandise lineup, we also enhanced our service offerings, one ofwhich is our “Gift Cards” *2, whose transaction value continued to remain solid.
On our sales promotion side, as our effort to increase the number of purchased items per customer, we rolled
out a monthly promotional “Lawson Tokuichi!” campaign, where a 10% discount was offered on “Lawson
Select” chilled/frozen foods as well as some items offered in the counter cases. Furthermore, effective measures
to attract customers were launched, including a “speed lottery” themed on “GENERATIONS from EXILE
TRIBE,” which demonstrated our strength in the entertainment field, and through the application of social
media.
*1 Bran: The external layer of wheat. It contains abundant nutrition including dietary fiber, iron, calcium,magnesium, zinc, and copper. The food is noted for its low level of carbohydrates.
*2 Gift Cards: Collective term for prepaid cards that can be used for online transactions.

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

Product categories
Processed foods

Previous 3rd Quarter
From March 1, 2016
to November 30, 2016
Net sales
Percentage of(Millions of yen)
total (%)
812,155
52.6

Current 3rd Quarter
From March 1, 2017
to November 30, 2017
Net sales
Percentage of(Millions of yen)
total (%)
862,096
52.8

Fast foods

364,64123.6

385,984

23.6

Daily delivered foods

222,472

14.4

237,747

14.6

Non-food products

145,0279.4

146,9459.0

1,544,297

100.0

1,632,773

100.0

Total

(Note) These figures include stores operated by both Lawson, Inc. and Lawson Sanin, Inc. as well as
LAWSON THREE F and LAWSON POPLAR brand stores.
[Store Development]
In opening new stores, the Group continued to focus on developing profitable stores.
Regarding the entire Lawson Group, the total number of LAWSON, NATURAL LAWSON, and LAWSONSTORE100 stores opened and closed during the current fiscal year stood at 832 and 250 stores, respectively,
with the total number of stores in Japan reaching 13,693 as of the end of November 2017. *3
With regard to our partnership initiatives with other chain retailers in Japan, based on business integrationagreements, we are remodeling THREE F stores operated by Three F Co., Ltd. into LAWSON THREE F stores,
and SAVE ON stores operated by Save On Corp. into LAWSON stores.
With regard to THREE F stores, 60 stores were remodeled into LAWSON THREE F stores as of the end of
November 2017. The remodeling of THREE F stores into LAWSON THREE F stores will be largely completed
by the end of the current fiscal year ending February 2018. Meanwhile, a total of 121 SAVE ON stores havebeen remodeled into LAWSON stores as of the end of November 2017. The remodeling of SAVE ON stores
into LAWSON stores will be completed by the end of the next fiscal year ending February 2019.
Furthermore, by building partnerships with dispensing pharmacy and drug store chains, we offer not only
OTC pharmaceuticals, cosmetics, and daily necessities, but also offer a more numerous assortment ofmerchandise than conventional LAWSON stores. The number of stores offering non-prescription drugs hasreached 169 stores (includes 47 pharmacy LAWSON stores equipped with drug-dispensing pharmacies) as ofthe end of November 2017. Furthermore, the number of stores offering nursing care consultation services hasreached 11 as of the end of November 2017. We will continue to engage in establishing convenience store
models that address and deal with social changes such as the aging population and increased health awareness.
With respect to LAWSON STORE100, we will continue to increase the product composition ratio of 100yen items (excluding tax) by scaling down product portions to respond to customer needs for value.
*3 The numbers of store openings and closings and total number of stores in Japan include stores operatedby Lawson, Inc., Lawson Sanin, Inc. and three equity-method affiliates, Lawson Kochi, Inc., Lawson
Minamikyushu, Inc. and Lawson Okinawa, Inc. as well as LAWSON THREE F and LAWSON POPLAR
brand stores.

4[Change in the Total Number of Domestic Stores]
Total stores as ofFebruary 28, 2017
LAWSON

Change during
periodTotal stores as ofNovember 30, 201712,172579

12,751

NATURAL LAWSON

141

3

144

LAWSON STORE100

798

－

798

13,111

582

13,693

Total(Note) These figures include stores operated by Lawson, Inc., subsidiary Lawson Sanin, Inc. and equitymethod affiliates, Lawson Kochi, Inc., Lawson Minamikyushu, Inc. and Lawson Okinawa, Inc.
[Number of LAWSON stores by prefecture (As of November 30, 2017)]
Prefecture

Numberof stores

Hokkaido656

Ibaraki

208

Kyoto

338

Ehime

218

Aomori

243

Tokyo

1,631

Shiga

154

Tokushima

134

Akita

188

Kanagawa

953

Nara

137

Kochi

136

Iwate

169

Shizuoka264

Wakayama

142

Fukuoka492

Miyagi233

Yamanashi

129

Osaka

1,111

Saga

70

Yamagata

109

Nagano

176

Hyogo

673

Nagasaki

106

Fukushima

137

Aichi

672

Okayama

182

Oita

183

Niigata

156

Gifu

171

Hiroshima

209

Kumamoto

150

Tochigi

191

Mie

138

Yamaguchi

118

Miyazaki

104

Gunma

117

Ishikawa

104

Tottori140

Kagoshima

194

Saitama656

Toyama189

Shimane148

Okinawa

218

Chiba

600

Fukui

113

Kagawa133

Total(domestic)

13,693Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Numberof stores(Note) These figures include stores operated by Lawson, Inc., subsidiary Lawson Sanin, Inc. and equitymethod affiliates, Lawson Kochi, Inc., Lawson Minamikyushu, Inc. and Lawson Okinawa, Inc.
[Other]We continued to work on enhancing customer convenience by additionally partnering with other companies
to establish an “Open Platform” based on the networks of LAWSON stores that offer a range of services
encompassing ordering, collection, and home delivery. In October 2017, in partnership with Rakuten, Inc., wecommenced a pilot delivery service, in which merchandise is delivered to customers from a hub LAWSON
store in Minamisoma-shi, Fukushima Prefecture, by using “Mobile Lawson-Go” vehicles and drones.
Led by the Japanese Ministry of Economy, Trade and Industry, Lawson, Inc. and other domestic convenience
store operators jointly issued the Declaration of Plan to Introduce 100 Billion Electronic Tags for Products inConvenience Stores. By using electronic tags, we aim to enhance store operating efficiency and continue torespond quickly to changing customer expectations.
As a result, Domestic Convenience Store Business posted gross operating revenue of 336,317 million yen
5(up 4.6% from previous fiscal year) and segment profit of 45,467 million yen (down 6.3% from previous fiscal
year).
(Seijo Ishii Business)
The number of directly operated Seijo Ishii high-end supermarket chain stores offering quality foods reached
140 as of the end of November 2017, and sales were also strong. In September 2017, we opened our first“grocerant,” a new store format that combines a supermarket and a restaurant, in Chofu-shi, Tokyo. The grocerant
offers a selection of items on its menu, all of which use Seijo Ishii’s well-selected products in season, attracting abroad range of customers. We remain committed to enhancing the brand image and corporate value of Seijo Ishii,
while absorbing the company’s product development expertise, know-how acquired as a manufacturing retailer,and sales methods, to strengthen our domestic convenience store business.
As a result, Seijo Ishii Business posted gross operating revenue of 59,490 million yen (up 11.5% from previous
fiscal year) and segment profit of 4,513 million yen (up 17.2% from previous fiscal year).
(Entertainment-related Business)
With regards to our entertainment-related business, Lawson HMV Entertainment, Inc., which forms the core of
the business, continued to secure top-class ticket transaction value in the ticketing industry. HMV, which sells
music CDs and DVDs, also operates the HMV Record Shop specializing in second-hand analog records and CDs.
Including the HMV Record Shop, the number of HMV stores totaled 54 as of the end of November 2017. We will
strive to offer an even wider selection of products and services to better respond to customer needs by, for example,
expanding the scope of our entertainment business. As of the end of November 2017, United Cinemas Co., Ltd.
operates cinemas at 39 sites, offering 353 screens nationwide including those operated on commission.
As a result, Entertainment-related Business posted gross operating revenue of 56,917 million yen (up 5.0%
from previous fiscal year) and segment profit of 3,137 million yen (up 1.7% from previous fiscal year).
(Other Business)
In addition to the aforementioned businesses, the Group is also involved in the Overseas Business and the
Financial Services-related Business.
With regards to Overseas Business, the Group’s operating companies opened LAWSON stores in the People’s
Republic of China, Thailand, Indonesia, the Philippines, and the United States of America (Hawaii).
In the People’s Republic of China, after being the first Japanese convenience store operator to advance into
Shanghai, we made inroads into Chongqing, Dalian, Beijing, Wuhan, and Nanjing. Our network of stores is
steadily expanding, with the number of LAWSON stores in Dalian exceeding the 100 mark in September 2017.
The number of LAWSON stores in the entire country reached 1,318 stores as of the end of November 2017.
Furthermore, preparations are underway to launch stores in Anhui Province, with the first one scheduled to open
in Hefei in spring of 2018.

6

[Distribution of LAWSON Brand Stores Overseas by Region]

Country/Region

Number of stores

ChangeNumber of stores(As of February 28,

during period(As of November 30,

2017)

2017)

China Shanghai and surrounding area

665

158

823

China Chongqing

136

9

145

China Dalian

82

33

115

China Beijing

48

20

68

China Wuhan

72

95

167

Thailand

85

12

97

Indonesia

36

1

37

Philippines

30

－

30

United States of America Hawaii

2

－

2

1,156

328

1,484

Total

Lawson ATM Networks, Inc., which operates a Financial Services-related Business, continued contributing
to consolidated results owing to an increase in the number of ATMs installed. We strengthened partnerships
with new financial institutions bringing the total number of our financial institution partners to 90 nationwide(up 3 from previous fiscal year), including online banks, and the number of ATMs installed nationwide to
12,423 (up 511 from previous fiscal year) as of the end of November 2017.
As a result, Other Business posted gross operating revenue of 47,407 million yen (up 23.8% from previous
fiscal year) and segment profit of 1,142 million yen (down 49.0% from previous fiscal year).
Through Lawson Bank Preparatory Company, Inc. established in November 2016, we are continuing to workon establishing a bank by leveraging Lawson’s past experience in financial services. We are proceeding on theassumption that approval from the relevant authorities will be obtained.

7

(2) Explanation Regarding Consolidated Financial Position
Current assets increased slightly from the end of the previous fiscal year to 249,287 million yen. Noncurrent assets increased by 48,061 million yen from the end of the previous fiscal year to 665,360 million yen,mainly reflecting an increase of 25,136 million yen in property and store equipment and an increase of 13,720
million yen in intangible assets. Consequently, total assets increased by 48,070 million yen from the end of theprevious fiscal year to 914,648 million yen.
Current liabilities increased by 37,404 million yen from the end of the previous fiscal year to 394,187
million yen, mainly reflecting an increase of 18,432 million yen in deposits received and an increase of 17,465
million yen in accounts payable-trade. Non-current liabilities increased by 9,702 million yen from the end of
the previous fiscal year to 233,501 million yen, mainly reflecting an increase of 8,144 million yen in leaseobligations. Consequently, total liabilities increased by 47,106 million yen from the end of the previous fiscal
year to 627,688 million yen.
Net assets increased by 963 million yen from the end of the previous fiscal year to 286,959 million yen,mainly reflecting an increase of 6,972 million yen in retained earnings and a decrease of 4,979 million yen in
non-controlling interests. Consequently, shareholders’ equity ratio was 30.7%, down from 31.7% as of the endof the previous fiscal year.
(3) Explanation Regarding Forward-looking Statements
The financial forecasts remain unchanged from those announced on October 11, 2017.

8

2. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheet
As of February 28, 2017 and November 30, 2017
(Millions of yen)

AssetsCurrent assets:
Cash and deposits
Accounts receivable-due from franchised stores
Lease receivables
Merchandise
Accounts receivable-other
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets:
Property and store equipment:
Buildings and structures, net
Tools, furniture and fixtures, net
Leased assets, net
Other, net
Total property and store equipment
Intangible assets:
Software
Goodwill
Trademark right
Other
Total intangible assets
Investments and other assets:Long-term loans receivable
Guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

9Previous fiscal year
As of
February 28, 2017

Current 3rd Quarter
As ofNovember 30, 2017

68,11539,982
12,33618,13078,363
3,907
28,493(50)
249,278

46,70945,266
12,93920,04585,8442,973
35,543(34)
249,287

183,747
18,581
110,472
11,708324,510

196,468
17,764
122,578
12,835
349,647

37,56746,041
10,691499
94,80045,30443,563
10,231
9,421
108,520

44,495
95,594
23,13835,728(968)
197,988617,299
866,577

45,887
98,477
20,87742,975(1,025)
207,192
665,360
914,648

(Millions of yen)

Liabilities
Current liabilities:
Accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable-other
Income taxes payable
Deposits received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities:
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for retirement benefits to executive officers
and audit and supervisory board members
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

10Previous fiscal year
As of
February 28, 2017

Current 3rd Quarter
As ofNovember 30, 2017

110,834
31,180575
28,012
59,734
9,876
103,156
3,427
9,985
356,783

128,299
26,240575
31,51964,303
6,194
121,588
2,731
12,735394,187

56,70399,983957

56,039108,128
2,072

332

334

13,083
26,95825,779223,798
580,581

13,61428,29625,015
233,501
627,688

58,50649,083
165,162(1,210)271,541

58,506
46,689172,134(1,041)
276,289

274
(618)
4,610
(927)
3,338
314
10,800285,995
866,577

1,695
(618)
4,390
(814)
4,652
197
5,821
286,959
914,648

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
For the third quarter of the fiscal year ended February 28, 2017 and the third quarter of the fiscal year ending
February 28, 2018
(Millions of yen)

Gross operating revenue
Net sales
Cost of sales
Gross profit
Operating revenue:
Income from franchised stores
Other operating revenue
Total operating revenue
Operating gross profit
Selling, general and administrative expenses
Operating income
Non-operating income:Interest income
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses:
Interest expenses
Loss on cancellation of leases
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of shares of subsidiaries and associates
Total extraordinary income
Extraordinary losses:
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

11

Previous 3rd Quarter
From March 1, 2016
to November 30, 2016
461,955
176,718
121,516
55,201

Current 3rd Quarter
From March 1, 2017
to November 30, 2017494,053
196,419
135,518
60,901

208,907
76,329285,237
340,439282,754
57,685219,975
77,658297,633
358,535
304,273
54,261

542

540

494

567

1,960
2,997

1,758
2,865

1,434
1,000
1,341
3,776
56,906

1,485
964
895
3,346
53,781

－
－

302
302

284
2,420
686
3,391
53,514
13,944
5,098
19,042
34,472617
33,855

256
1,962
1,073
3,292
50,791
14,064
3,653
17,71733,073277
32,795

Consolidated Statement of Comprehensive Income
For the third quarter of the fiscal year ended February 28, 2017 and the third quarter of the fiscal year ending
February 28, 2018
(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests

12

Previous 3rd Quarter
From March 1, 2016
to November 30, 2016
34,472Current 3rd Quarter
From March 1, 2017
to November 30, 201733,073(665)(2,341)63(2,942)
31,529

1,420
(186)
113
1,347
34,421

31,023505

34,109312

(3) Notes to Consolidated Financial Statements(Going Concern Assumption)
Not Applicable.
(Notes to Significant Changes in the Amount of Shareholders’ Equity)
Not Applicable.
(Additional Information)
The Company and its domestic consolidated subsidiaries are applying “Implementation Guidance on
Recoverability of Deferred Tax Assets” (Accounting Standards Board of Japan (ASBJ) Guidance No. 26,
revised March 28, 2016) from the first quarter of the fiscal year ending February 28, 2018.

13