Flash Report on the Consolidated Result
for the First Quarter of the Fiscal Year Ended February 29, 2016
July 7, 2015
Listed Company Name: Lawson, Inc.
Tokyo Stock Exchange (First Section)
Code No.: 2651
(URL http://www.lawson.co.jp/company/ir/index.html)
Company Representative: Genichi Tamatsuka, Representative Director, President and CEO
Contact: Tomoki Takanishi, Deputy Senior Vice President, Finance and Accounting Division Director
Tel.: +81-3-5435-2773
Scheduled date for submission of quarterly earnings report: July 13, 2015
Scheduled date for payment of dividend: －Supplementary documents quarterly results: Yes
Presentation of quarterly results: None
(Amounts below one million yen are truncated)
1. Consolidated performance for the first quarter of the current period (from March 1, 2015, to May 31, 2015)(1) Consolidated operating results (accumulated)
Note: Percentages for gross operating revenue, operating income, ordinary income and net income show increase(decrease) compared to the corresponding period of previous year.
Ordinary income
Net income
Gross operating revenue Operating income¥ Million%¥ Million%¥ Million% ¥ Million%
Current 1st Quarter
140,213
19.7
19,133 13.7
19,145 16.0
7,718
(15.2)
Previous 1st Quarter
117,128(2.0)
16,820 17.6
16,509 14.5
9,099
26.5
Current 1st Quarter
8,299 million yen(7.7%)
Note: Comprehensive income:Previous 1st Quarter
8,990 million yen
7.0%

Current 1st Quarter
Previous 1st Quarter

Net income per share
¥
77.18
91.10

Fully diluted profit per share
¥
77.12
90.91

(2) Consolidated financial position

Current 1st Quarter
Previous fiscal year

Total assets¥ Million
832,591
764,614

Reference: Shareholders’ equity:

Net assets¥ Million
260,512
263,797
Current 1st Quarter
Previous 1st Quarter

Shareholders’ equity ratio
%
30.3
33.5

252,502 million yen
256,122 million yen

2. Dividends status
1Q
¥
－
－

1H
¥
120.00

Annual dividends per share
Year-end
3Q
dividend¥¥－
120.00Total¥
240.00122.50245.002014 fiscal year
2015 fiscal year
2015 fiscal year (forecast)
122.50－Note: Revision of forecast for dividends published in the most recent: None

3. Forecast consolidated performance for 2015 fiscal year （from March 1, 2015 to February 29, 2016）
Note: Percentages for gross operating revenue, operating income, ordinary income and net income show increase(decrease) compared to the corresponding period of previous year.

2015 1H(accumulated)2015 fiscal year

Gross operating
revenue

Operating income

Ordinary income

Net profit
per share¥ Million%¥ Million%¥ Million%¥ Million%¥

287,000

18.6

37,000(7.5)

36,000(9.1)

18,400(15.9)

184.00578,000

16.1

71,0000.7

68,900(3.9)

35,2007.7

352.00Net income

Note: Revision of forecast for dividends published in the most recent: None
4. Notes(1) Change in important subsidiaries during this quarterly consolidated period (Changes in certain specified
subsidiaries resulting in revised scope of consolidation): None
Added: None

Excluded: None

(2) Adoptions of special accounting methods in presentation of quarterly financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, retrospective restatements
1. Changes of accounting policies associated with revision in accounting standards: Yes
2. Other changes: None
3. Changes in accounting estimates: None
4. Retrospective restatements: None
(4) Number of issued shares:
1. The number of the stocks issued in the end of term
May, 2015:
100,300,000
2. The number of treasury shares in the end of term
May, 2015:
301,487
3. Average number of shares during the term
May, 2015:
99,998,635

February, 2014:

100,300,000

February, 2014:

301,084

May, 2014:

99,876,949

Note: Implementation status of quarterly review proceduresThis flash report is exempt from quarterly review procedures under the Financial Instruments and ExchangeAct. As of the time of disclosure of this report, quarterly review procedures for the financial statements areincomplete.
Note: Descriptions on appropriate use of financial performance forecasts and other special notes
Forward-looking statements presented in this material such as financial forecasts are based on currently
available information and certain presumptions deemed to be reasonable as of the date of announcement. They
are not intended to guarantee the Company’s achievement. Actual results may differ significantly from these
forecasts due to many 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 Information Such As Forecast Consolidated Performance” on page 7.

Contents of Attachments

1．Qualitative Information Regarding Quarterly Financial ································································2(1) Explanation Regarding Consolidated Operating Results ······························································
2(2) Explanation Regarding Consolidated Financial Position ·····························································
7(3) Explanation Regarding Forward-looking Information Such As Forecast Consolidated Performance ··········
7
2．Matters Related To Summary Information (Notes) ································································

8(1) Change in important subsidiaries during the period (Changes in certain specified subsidiaries
8
resulting in revised scope of consolidation) ·················································································(2) Adoptions of accounting methods particular to presentation of quarterly financial statements ··················
8(3) Changes in accounting policies, changes in accounting estimation, retrospective restatement ··················
8
3. Consolidated Financial Statements ···························································································
9(1) Consolidated Balance Sheet ······························································································
9(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ····················
11
Consolidated Statements of Income ······················································································
11
Consolidated Statements of Comprehensive Income ································································12(3) Notes to consolidated financial statements ············································································
13(Notes Concerning Going Concern Assumption) ································································

13(Notes to Significant Changes in the amount of Shareholders’ Equity) ·············································
131

1．Qualitative Information Regarding Quarterly Financial Results(1) Explanation Regarding Consolidated Operating Results
During the first quarter of fiscal 2015, three months from March 1 to May 31, 2015, the Lawson Group(hereinafter, the “Group”) implemented business activities with the aim of realizing the Group’s corporate
philosophy of “Creating Happiness and Harmony in Our Communities.” In particular, we reinforced thefoundation of our convenience store business, for example, by enhancing our retail space, merchandise
assortment, and relationship with franchise store owners. In addition, while addressing changes in eachneighborhood such as an increase in the number of working women, the declining birth rate and the aging
population, we also focused on areas unique to Lawson, including over-the-counter fast food, health-oriented
products, home convenience, and entertainment.
Meanwhile, we also focused on promoting internal control and addressing operating risks across the entire
Group based on the 2015 Basic Policy for Improvement of Internal Control Systems. We will continue
promoting internal control across the board including companies that newly joined the Group.
As a result, for the first quarter of fiscal 2015 on a consolidated basis, gross operating revenue increased to¥140,213 million (up 19.7% from last year), resulting from an increase of ¥5,988 million in operating revenue
due to an increase in number of franchised stores, and an increase of ¥17,097 million in net sales resulting
from acquiring United Cinemas Co., Ltd. and SEIJO ISHII CO., LTD. from second quarter and third quarter ofprevious fiscal year respectively, despite a decrease in the number of company-operated stores. As a result, costof sales increased to ¥37,490 million (up 32.8% from last year) and selling, general and administrative
expenses increased by ¥11,523 million to ¥83,589million (up 16.0% from last year). Thus, operating income
increased by ¥2,312 million to ¥19,133 million (up 13.7% from last year). Furthermore, despite ordinary
income grew ¥2,636 million to ¥19,145 million (up 16.0% from last year), since extraordinary losses increasedby ¥2,953 million, net income decreased by ¥1,380 million to ¥7,718 million (down 15.2% from last year).
Operating results by business segment were as follows:(Domestic Convenience Store Business)[Merchandising Strategies]
On the merchandise front, we stepped up initiatives to strengthen merchandise appeal by upholding“Convenience Store (CVS) Core Products” and “Supermarket Alternative Products” as focal areas in productdevelopment.
With respect to “CVS Core Products,” we changed the containers and packages of carbohydrate-based
staple foods to help customers understand the entire layout of the retail spaces. Furthermore, we leveraged ourstrong expertise in ingredients procurement to launch a “Large Sockeye Salmon Lunchbox” and a “Thick Pork
Loin and Tenderloin Katsu Lunchbox,” both of which were well-received.
For “Supermarket Alternative Products,” we not only expanded the retail space for daily delivered foods
and strengthened our merchandise assortment of fast food dishes cooked in stores, but also implemented
measures to appeal to customers, including changing packages of some “Lawson Select” products andimplementing sales promotion campaigns.

2

We also stepped up our efforts to meet the rising demand for coffee, a significant growth area in recent
years. We exclusively adopted “MACHI café” coffee beans produced at Rainforest Alliance Certified farms,
achieving improved quality, environmental conservation and social contribution at the same time. In addition,
as a result of reducing the price of café lattes made with specially brewed espresso and quality milk, sales
increased significantly. In April 2015, we started selling “Doughnuts” over the counter in anticipation of
encouraging purchases of “MACHI café” coffee, and plan to do the same at around 8,000 stores by the end of
August.
Moreover, as a “Health Station in Town,” we also placed emphasis on selling health-oriented products.
Specifically, we expanded “Bran Bread”*1 on an ongoing basis for carbohydrate-conscious consumers, andoffered a large selection of products, including confectionery and chilled drinks from the NATURALLAWSON brand, nutritionally balanced lunchboxes, rice balls made with brown rice, and “Pre-cut Vegetables”
and salads made with vegetables produced based on the “Nakashima Farming Method”*2. There are currently
23 Lawson Farms in which Lawson, Inc. holds equity stakes. The farms assume the role of supplying safe andfresh fruits and vegetables to the Group’s stores and factories that produce LAWSON’s original products.
Lawson Farm Niigata, the 23rd Lawson Farm, which was established in March 2015, is the first special
agricultural corporation established by taking advantage of the deregulated system in the National StrategicSpecial Zones. The Group will continue to support the health of customers through such initiatives.
In addition to strengthening the above products, we are increasing our lineup of “Gift Cards”*3 offered at
our stores, which are received well.
For sales promotions, we implemented measures to attract customers mainly to our mainstay category,including offering rice balls at “Rice Ball 100 Yen Sale” in May.
*1

Bran: The external layer of wheat. Contains abundant nutrition including dietary fiber, iron, calcium,magnesium, zinc, and copper. The food is noted for its low level of carbohydrate.

*2

Nakashima Farming Method: A cultivation method that supplies appropriate nutrients in accordance withthe growth status of crops and the nutritional balance of the soil (mineral balance). Uses techniques fordeveloping healthy soil based on diagnosis of soil conditions in conjunction with techniques to control
the growth process of crops to maintain healthy growth.

*3

Gift cards: Collective term for prepaid cards that can be used for online transactions.

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

Product group

Previous 1st Quarter

Current 1st Quarter

March 1, 2014 to May 31, 2014

March 1, 2015 to May 31, 2015

Sales

Percentage of

Sales

Percentage of(Millions of yen)

total (%)

(Millions of yen)

total (%)

Processed foods

262,12254.4

256,916

53.5

Fast foods

103,140

21.4

109,788

22.8

Daily delivered foods

70,378

14.6

68,581

14.3

Nonfood products

46,353

9.6

45,391

9.4

481,994

100.0

480,678

100.0

Total

3

[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, while strengthening guidance tofranchise store owners and revising order placement methods as a way of reforming store operations. In
addition to concluding a new franchise agreement with existing stores ahead of schedule to offer enhanced
support to franchise store owners, we strived to create retail spaces that stimulate potential demand from
customers and offer what they need at any time.
[Store Development and Store Format Strategy]
In opening new stores, the Group prioritized profitability based on its proprietary return on investment(ROI)-focused store development standard.

In April 2015, newly established Lawson Kochi, Inc. started operating LAWSON stores in Kochi
prefecture. Also in April, Lawson, Inc. concluded a business alliance agreement with Metro CommerceCo., Ltd., a group company of Tokyo Metro Co., Ltd., agreeing to transform METRO’S, shops operatedby Tokyo Metro at Tokyo Metro stations, into LAWSON stores. In May, it was decided that part of therights and obligations associated with the convenience store business run by SAVE ON Co., Ltd. in
Nagano prefecture would be succeeded by Lawson, Inc. SAVE ON stores will be transformed into
LAWSON stores in phases starting in July.
Furthermore, the Group has been striving to expand the number of stores offering non-prescription drugs,
and it reached 102 stores (included 35 Pharmacy Lawson stores equipped with drug-dispensing pharmacies) asof the end of May 2015. Moreover, by building partnerships in local area, in addition of healthcare items
including OTC pharmaceuticals, cosmetics, and daily necessities, the stores offer a merchandise assortment ofaround 5,000 items, twice as many as conventional Lawson stores. Under a business alliance agreement
entered into with Wisnet Co., Ltd., Lawson, Inc. has been preparing to launch Wisnet-owned franchise
LAWSON stores housing an office base for home nursing care or a nursing care hub center equipped with alounge space. In April 2015, the first LAWSON store under this partnership was opened.
Under the business revitalization plan currently implemented by LAWSON STORE100 stores, unprofitable
stores are being closed. During the first quarter of current fiscal year, 266 LAWSON STORE100 stores wereclosed.
As a result, the total number of LAWSON, NATURAL LAWSON, and LAWSON STORE100 (including
LAWSON MART) stores opened and closed during current fiscal year stood at 188 and 403 stores, respectively,
with the total number of stores in Japan reaching 11,557 as of the end of May 2015.

4

[Change in the Total Number of Domestic Stores]
Total stores as ofFebruary 28, 2015
LAWSON

Change during
fiscal year

Total stores as of
May 31, 2015

10,633(78)

10,555

116

2

118

LAWSON STORE100／LAWSONMART

1,151

(267)

884

Total

11,900(343)

11,557

NATURAL LAWSON[Number of LAWSON stores by prefecture (As of May 31, 2015)]
Prefecture

Numberof stores

Hokkaido616

Ibaraki

147

Kyoto

311

Ehime

205

Aomori

210

Tokyo

1,502

Shiga

152

Tokushima

133

Akita

182

Kanagawa

825

Nara

128

Fukuoka

439

Iwate

161

Shizuoka219

Wakayama

124

Saga

67

Miyagi217

Yamanashi

113

Osaka

1,001

Nagasaki

105

Yamagata

79

Nagano

148

Hyogo

627

Oita

167

Fukushima

102

Aichi

556

Okayama147

Kumamoto

137

Niigata

133

Gifu

149

Hiroshima

181

Miyazaki104

Tochigi

139

Mie

110

Yamaguchi

122

Total (domestic)

Gunma

94

Ishikawa

102

Tottori

112

Saitama503

Toyama186

Shimane

117

Chiba

456

Fukui

106

Kagawa123

Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Number of stores

11,557

In addition to the above, Lawson Kochi, Inc. operates 130 LAWSON chain stores in Kochi prefecture,
Lawson Minamikyushu, Inc. operates 202 LAWSON chain stores in Kagoshima prefecture and Lawson
Okinawa, Inc. operates 177 LAWSON chain stores in Okinawa prefecture as of the end of May 2015.

(Other)With regards to our efforts in Home Convenience, in April 2015, Lawson, Inc. entered into a businessalliance with SG Holdings Co., Ltd., which owns Sagawa Express Co., Ltd. as the core operating company,
agreeing to jointly establish an operating company that offers delivery and order-taking service with LAWSON
stores serving as hubs. We will strive to enhance customer convenience by additionally partnering with othercompanies to establish an “Open Platform” based on the networks of LAWSON stores that offer a range ofservices encompassing ordering, collection, and home delivery.
(Seijo Ishii Business)

The number of directly operated Seijo Ishii stores, a high-end supermarket chain offering quality
foods, reached 110 as of the end of May 2015. Performance was strong, driven by sales of coconut oil andperilla oil that became popular after their positive health effects were introduced on television and other5media. We will continue to enhance the brand image and corporate value of SEIJO ISHII Co., Ltd., whileabsorbing the company’s product development expertise, knowhow acquired as a manufacturing retailer,and sales methods, to strengthen our Domestic Convenience Store Business.

(Entertainment-related Business)
With regards to Entertainment-related Business, Lawson HMV Entertainment, which forms the core ofentertainment related business, posted a solid performance led by an increase in ticket sales and continued tosecure top position in the ticketing industry. The number of HMV stores that sell music CDs and DVDs totaled
54 as of the end of May 2015. Furthermore, United Cinemas Co., Ltd. operates a total of 37 sites (includes
YEBISU GARDEN CINEMA opened in March) with 333 screens (includes management contract) at its
cinemas nationwide. We will strive to offer an even wider selection of products and services to better respondto customer needs, for example, by expanding our ticketing business.

(Other Business)

In addition to Domestic Convenience Store Business, Seijo Ishii Business, Entertainment-related
Business, the Group also involved in Overseas Business, Financial Services-related Business and otherbusinesses.
With regards to overseas business, the Group’s operating companies opened LAWSON stores in the
People’s Republic of China (Shanghai, Chongqing, Dalian, and Beijing), Thailand, United States of America(Hawaii), Indonesia and Philippine. In March 2015, acquisition of equity in PG Lawson Company, Inc., which
is a joint venture established with Puregold Price Club, Inc., a leading retailer in the Philippines, wascompleted and the first store in the Philippines was opened.

[Distribution of LAWSON Brand Stores Overseas by Region]

Country/Region

Number of stores

Change during

Number of stores(As of February 28,

fiscal year

(As of May 31,

2015)

2015)

China

Shanghai and surrounding area

354

17

371

China

Chongqing

104

2

106

China

Dalian

30

1

31

China

Beijing19

1

20

Thailand

32

6

38

Indonesia

48

(13)

35

Philippines

－

2

2

3

－

3

590

16

606

United States of America

HawaiiTotal

6

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. In this fiscal year 2015, we
strengthened partnership with new financial institution bringing the total number of our financial institution
partners to 77 nationwide (up 6 year on year), including online banks, and the number of ATMs installed
nationwide to 10,798 (up 31 year on year) as of the end of May 2015.

(2) Explanation Regarding Consolidated Financial Position
Total current assets stood at ¥283,350 million yen, climbing ¥59,707 million from February 28, 2015, theend of the previous fiscal year. This reflected an increase of ¥59,748 million in cash and deposits mainly due tothird party bill settlement. Non-current assets grew ¥8,270 million from February 28, 2015 to ¥549,241 million,
mainly owing to an increase of ¥3,743 million in property and store equipment resulting from an increase oflease assets and an increase of ¥3,308 million in intangible assets resulting from an increase of software.
Consequently, total assets climbed ¥67,977million from the end of the previous fiscal year to ¥832,591 million.
Total current liabilities increased ¥68,493 million from the end of the previous fiscal year to ¥369,562
million, mainly reflecting an increase of ¥61,441 million in deposits received owing to third party billsettlement. Non-current liabilities stood at ¥202,516 million, growing ¥2,769million from February 28, 2015,
mainly owing to an increase of ¥3,256 million in lease obligations due to new store investments. Consequently,
total liabilities increased by ¥71,262 million from the end of the previous fiscal year to ¥572,078 million.
Total net assets stood at ¥260,512 million, decreased by ¥3,284 million from February 28, 2015. This was
mainly due to an increase resulting from net income of the first quarter ¥7,718 million, a decrease resulting
from payment of ¥11,999 million in dividends, and a decline of ¥3,981 million in retained earnings.
Consequently, shareholders’ equity ratio amounted to 30.3%, down from 33.5% as of the end of the previous
fiscal year.

(3) Explanation Regarding Forward-looking Information Such As Forecast Consolidated Performance
Regarding to forecasts for the first half and full year of the current fiscal year ended February 29, 2016, thefinancial forecasts remains unchanged from those announced on April 9, 2015.

7

2．Matters Related To Summary Information (Notes)(1) Change in important subsidiaries during the period (Changes in certain specified subsidiaries resulting inrevised scope of consolidation): Not Applicable(2) Adoptions of accounting methods particular to presentation of quarterly financial statements:
Not Applicable(3) Changes in accounting policies, changes in accounting estimation, retrospective restatement(Changes in accounting policies)
The Company adopted “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26 issued on
May 17, 2012, hereinafter “Accounting Standard Retirement Benefits”) and “Guidance on AccountingStandard for Retirement Benefits” (ASBJ Guidance No. 25 issued on May 17, 2012, hereinafter “Guidance
Retirement Benefits”) from the first quarter of the consolidated fiscal year under review included stipulations
stated in the main clause of paragraph 35 of ASBJ Statement No. 26, and the main clause of paragraph 67 of
ASBJ Guidance No. 25. The Company reviewed the calculation method of retirement benefit liabilities andservice cost, changed the standard of payment period of retirement benefits estimated amounts from period
straight-line basis recorded to benefit formula basis. The method for calculating the discount rate was changed
from the method in which bond duration, a base used for calculating the discount rate, was decided based on
the number of years that approximates the average remaining service period of the employees, to the method inwhich multiple discount rates are calculated in accordance with the expected payment period of retirement
benefits.
The application of Accounting Standards for Retirement Benefits, etc. has followed the transitional
treatment stipulated in paragraph 37 of ASBJ Statement No. 26, and the impact due to change of calculation
method of retirement benefit liabilities and service cost was charged to Retained earnings at the beginning of
the first quarter of the consolidated fiscal year under review.
As a result, net defined benefit liability as of the beginning of the first quarter of the consolidated fiscal
year under review decreased ¥2,130 million, while retained earnings increased ¥1,411 million yen. The impactof this change to operating income, ordinary income, and income before income taxes and minority interests
for the first quarter of the consolidated fiscal year under review is immaterial.

83. Consolidated Financial Statements(1) Consolidated Balance Sheet
As of February 28, 2015 and May 31, 2015
(Millions of yen)

AssetsCurrent assets:
Cash and deposits
Accounts receivable-due from franchised stores
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
Accumulated depreciation
Buildings and structures, net
Vehicles, tools, furniture and fixtures
Accumulated depreciation
Vehicles, tools, furniture and fixtures, net
Lease assets
Accumulated depreciation
Lease assets, net
Other
Accumulated depreciation
Other, net
Total property and store equipment
Intangible assets:
Software
Goodwill
Right of trademark
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, 2015

Current 1st Quarter
As of
May 31, 2015

76,75837,052
17,04458,666
5,299
31,400(2,578)
223,642

136,506
34,04016,756
62,1093,348
30,610(22)
283,350

313,867(160,491)
153,375
74,270(59,445)
14,825
154,932(63,270)
91,661
15,022(448)
14,574274,436

310,166(153,001)
157,164
73,049(58,144)
14,904
160,662(66,939)
93,722
12,843(455)
12,388278,180

18,80048,18911,989550
79,53022,325
48,124
11,837551
82,83837,232
93,20526,251
31,435(1,121)
187,004
540,971764,61437,916
93,534
24,213
33,631(1,073)
188,222549,241
832,591(Millions of yen)Previous fiscal year
As of
February 28, 2015
Liabilities
Current liabilities:
Accounts payable-trade
Due to franchised stores
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
Provision for retirement benefits to executive officers
and audits & 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
Minority interests
Total net assets
Total liabilities and net assets

10

Current 1st Quarter
As of
May 31, 2015

103,458
1,507
1,740
575
19,94843,51813,301
103,634
2,976
10,408301,069

112,331
1,952
2,130
575
20,87750,153
4,114
165,076
2,216
10,134
369,562

58,42576,174

58,13779,430367

385

12,95821,53030,290199,746
500,816

11,03524,03829,488
202,516572,078

58,506
47,696
147,177(1,272)
252,10758,506
47,696
143,195(1,275)248,122

(393)
(566)
5,492
(518)
4,014
223
7,452
263,797764,614

291
(566)
5,175
(520)
4,379
300
7,710
260,512
832,591

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
For the first quarter of the fiscal year ended February 29, 2016 (From March 1, 2015 to May 31, 2015)(Millions of yen)

Gross operating revenue
Net sales
Cost of sales
Gross profit
Operating revenue:
Income from franchised stores
Other
Total operating revenue
Operating gross profit
Selling, general and administrative expenses
Operating income
Non-operating income:Interest income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses:
Interest expense
Loss on cancel of lease contracts
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on change in equity
Total extraordinary income
Extraordinary losses:
Loss on retirement of non-current assets
Impairment loss
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
taxes - deferred
Income taxes-deferred
Income taxes
Income before minority interests
Minority interests in income
Net income

11

Previous 1st Quarter
From March 1,2014
to May 31, 2014
117,128
37,45728,2409,216

Current 1st Quarter
From March 1,2015
to May 31, 2015
140,21354,55437,49017,06361,724
17,94579,67088,88772,066
16,82063,064
22,59485,659102,723
83,58919,133

180
－
356
537

179
458
517
1,155

332
307
209
848
16,509

453
570
120
1,143
19,145

756
756

892
892

485
1,897
16
2,399
14,866
4,314
1,359
5,673
9,193
94
9,099

938
4,414
－
5,352
14,685
3,920
2,867
6,788
7,897
178
7,718

Consolidated Statement of Comprehensive Income
For the first quarter of the fiscal year ended February 29, 2016 (From March 1, 2015 to May 31, 2015)(Millions of yen)

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to
Owners of the parent
Minority interests

12

Previous 1st Quarter
From March 1,2014
to May 31, 2014
9,193

Current 1st Quarter
From March 1,2015
to May 31, 2015
7,897

(43)
(420)
－

684
(280)
(1)

260

－

(203)
8,990

402
8,299

8,894
95

8,083
216

(3) Notes to Consolidated Financial Statements(Notes Concerning Going Concern Assumption)
Not Applicable.

(Notes to Significant Changes in the amount of Shareholders’ Equity)
Not Applicable.

13