Flash Report on the Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending February 29, 2020
January 10, 2020
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, Financial Administration Division Director
Tel.: +81-3-5435-2773
Scheduled date for submission of quarterly securities report: January 14, 2020
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, 2019 (from March 1, 2019 toNovember 30, 2019)(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, 2019
November 30, 2018
Note: Comprehensive income:Gross operating
revenue

Operating income

Ordinary income

Millionsof yen550,901
527,637

Millionsof yen52,12247,807

Millionsof yen48,66346,641

%
4.4
6.8

%
9.0
(11.9)For the third quarter ended November 30, 2019
For the third quarter ended November 30, 2018%
4.3
(13.3)

Profitattributable toowners of parent
Millions%of yen25,953
2.5
25,319 (22.8)

23,890 million yen
27,301 million yen(12.5)%(20.7)%

Profit per shareYen
259.37253.05

Diluted profit per shareYen
259.22252.92

Total assets

Net assets

Millions of yen

Millions of yen

Shareholders’ equity
ratio%

November 30, 2019

1,438,452

281,648

19.3

February 28, 2019

1,342,329

281,982

20.6

For the third quarter ended
November 30, 2019
November 30, 2018
(2) Consolidated financial position

As ofReference: Shareholders’ equity:
As of November 30, 2019277,213 million yen
As of February 28, 2019276,514 million yen
Note: Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28;
February 16, 2018), etc. have been applied from the beginning of the first quarter of the fiscal year ending
February 29, 2020 in preparing the consolidated financial statements. The standards have been retrospectively
applied to the consolidated financial statements for the previous fiscal year.

2. Dividends

2018 fiscal year－

Annual dividends per share
1H
3Q
Year-end
Yen
Yen
Yen
127.50－127.502019 fiscal year

－

75.00

1Q
Yen

Total
Yen
255.00－2019 fiscal year (forecast)

75.00

150.00Note: Revision of the most recent dividends forecast: None
3. Forecast of consolidated operating results for the 2019 fiscal year ending February 29, 2020 (from March 1,
2019 to February 29, 2020)
Note: Percentages represent increases (decreases) compared with the corresponding period of the previous fiscal
year.
Gross operating
Profit attributable Profit per
Operating income Ordinary income
revenueto owners of parent share
Millions
Millions
Millions
Millions
%
%
%
%
Yen
of yenof yenof yenof yen2019 fiscal year
727,000
3.8
60,8000.0 54,500(5.5) 18,000(29.6) 179.88
Note: Revision of the most recent consolidated operating results forecast: None
4. Notes(1) Change in significant subsidiaries during the quarterly consolidated period (Changes in certain specified
subsidiaries resulting in changes in scope of consolidation): None
Added: None

Excluded: None

(2) 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: Yes
2. Changes in accounting policies other than 1. above: None
3. Changes in accounting estimates: None
4. Retrospective restatements: None
Note: For changes in accounting policies associated with revision in accounting standards, please refer to “2.
Consolidated Financial Statements and Main Notes, (3) Notes to Consolidated Financial Statements(Changes in Accounting Policies)” on page 13.

(4) Number of shares outstanding (common stock)
1. Number of shares outstanding at the end of period (including treasury shares)
As of November 30, 2019:100,300,000
As of February 28, 2019:
2. Number of treasury shares at the end of period
As of November 30, 2019:237,663

As of February 28, 2019:

3. Average number of shares during the period (cumulative nine months)
As of November 30, 2019:
100,061,191
As of November 30, 2018:

100,300,000

241,897

100,056,896

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(Changes in Accounting Policies)········································································································

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

131

1．Qualitative Information Regarding Quarterly Financial Results(1) Explanation Regarding Consolidated Operating Results
During the third quarter of fiscal 2019, nine months from March 1 to November 30, 2019, changes in societyneeds resulting from an aging population, the prevalence of the nuclear family, the increasing number ofworking women, and the heightening awareness of healthy lifestyles, are serving as a tailwind for theconvenience store industry. Meanwhile, competition is intensifying across sector lines and circumstances
surrounding franchise stores are also becoming increasingly challenging due to a labor shortage and rising
personnel expenses. Given such a business environment, we have made efforts to raise store productivity bymaking maximum use of digital technology. Specifically, since 2015, we have been introducing a semiautomatic ordering system and new point-of-sale (POS) cash registers equipped with an automatic change
dispenser function. We will continue to provide franchise stores with stronger support and reinforce ourrelationships with them.
As a result, for the third quarter of fiscal 2019 on a consolidated basis, gross operating revenue increased to550,901 million yen (up 4.4% from previous fiscal year), operating income increased to 52,122 million yen (up9.0% from previous fiscal year) and ordinary income increased to 48,663 million yen (up 4.3% from previous
fiscal year). Profit attributable to owners of parent increased to 25,953 million yen (up 2.5% from previous fiscal
year).
Furthermore, we also focused on promoting internal control and addressing operating risks across the entire
Group based on the 2019 Basic Policy for Improvement of Internal Control Systems. We will continue promotinginternal control even more.
Operating results by business segment were as follows:(Domestic Convenience Store Business)
In our convenience store business, we are striving to establish LAWSON stores as convenience stores
endorsed by all our customers. To this end, we are implementing measures to achieve our three commitments,
namely, to pursue compelling taste, to be considerate to people, and to be environmentally friendly. Bydeveloping distinctive products that are compellingly delicious and health-conscious, we are aiming to further
reinforce our product lineup, while rigorously working to offer thoughtful customer service at our stores andensure environmental friendliness by reducing food waste and the use of plastics.
The consumption tax rate was raised in Japan from 8% to 10% on October 1, 2019, although certain items
are subject to a reduced rate. At LAWSON stores, reduced tax rates are applied to food and beverage items,
excluding those consumed within their eat-in areas, and alcoholic beverages. In addition, as part of the Japanese
government’s support scheme to alleviate the impact of the tax hike, customers making cashless payments atapplicable LAWSON stores receive a 2% refund on their payment amount.
[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. During the current fiscal year, we aretaking decisive steps to improve store operations and strengthen franchise support by headquarters.
2

With regard to our initiative to introduce self-checkout machines by leveraging the self-checkout function of
the POS cash registers installed at all stores during the previous fiscal year, we have been verifying the effectof the introduction at each store since November 2019. Based on the results, we will proceed with the initiativein phases.
[Merchandising and Service Strategies]
In the rice range, we added a new flavor to our popular “Akuma-no-onigiri” (meaning “devil’s rice ball”)
line and introduced the new “Kinshari Onigiri Rice Ball” series featuring rice with enhanced sweetness, which
contributed to sales. In the processed bread range, we were able to capture a new type of meal demand bylaunching the new “SAND FULL” series characterized by voluminous fillings and also successfully revamped
our standard products including our mixed and egg sandwiches, which resulted in a year-on-year sales increase.
In our dessert range, sales significantly grew from the same period of the previous fiscal year as a result of
the great popularity achieved by our new dessert type, which includes “BASCHEE” (short for Basque-stylecheesecake), and the “Uchi Café” dessert range including our “CUPKE” series launched in October 2019.
In the bakery products range, our “Machinopan” (meaning “town bakery”) series reinforced with new
products including “Pain au Chocolat” was well received, while sales for bread with a selection of delicious
fillings climbed, partly owing to product changes.
On our service front, we commenced a pilot experiment in October 2019 on the e-shipping service provided
by Japan Post Co., Ltd., a service for shipping items sold on auction sites and flea market apps. The pilot
experiment was conducted at LAWSON stores in Tokyo and Kanagawa Prefectures where SMARI, a service
for returning rented items or products purchased via e-commerce websites, is offered.
On our sales promotion side, we rolled out an autumn stamp rally campaign, and implemented effective
measures to attract customers, including a speed lottery capitalizing on our strength in the entertainment field.
[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, 2018
to November 30, 2018
Net sales
Percentage of(Millions of yen)
total (%)
910,057
52.6

Current 3rd Quarter
From March 1, 2019
to November 30, 2019
Net sales
Percentage of(Millions of yen)
total (%)
943,324
52.9

Fast foods

414,901

24.0

417,373

23.4

Daily delivered foods

251,887

14.5

268,069

15.0

Non-food products

154,7648.9

155,353

8.7

1,731,611

100.0

1,784,121

100.0

Total

(Note) These figures include stores operated by both Lawson, Inc. and Lawson Sanin, Inc.

[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 451 and 466 stores, respectively,
with the total number of stores reaching 14,644 as of the end of November 2019. *3

In an effort to establish convenience store models catered to an aging population and a trend toward selftreatment, we are building partnerships with dispensing pharmacy and drug store chains to operate healthcareoriented LAWSON stores that offer over-the-counter pharmaceuticals and prescription drugs, as well as a wider
assortment of cosmetics and daily necessities than conventional LAWSON stores. The number of stores
offering non-prescription drugs has reached 218 stores (includes 48 pharmacy LAWSON stores equipped withdrug-dispensing pharmacies) as of the end of November 2019. Moreover, the number of stores offering nursing
care consultation services has reached 23 as of the end of November 2019. Furthermore, we have also been
expanding our chain of “in-hospital LAWSON stores,” which feature strengthened focus on medical, sanitary,
nursing and rehabilitation supplies in addition to merchandise and services offered at standard convenience
stores. The number of such stores has reached 322 as of the end of November 2019. Building on our expertisedeveloped through operation of in-hospital LAWSON stores, we will continue to support the lives of all peopleinteracting with hospitals.
With the aim of supporting our customers’ beauty, health, and comfortable lifestyles, our NATURALLAWSON stores offer an exclusive assortment of items including original products adopting select ingredients
as well as products produced in collaboration with renowned brand names. Meanwhile, our LAWSONSTORE100 meets customers’ needs with a wide-ranging assortment of products sold at the value-for-money
price of 100 yen, including fresh fruit and vegetables, daily delivered fresh foods, prepared dishes, beverages,
and daily necessities. As of the end of November 2019, we operate 143 NATURAL LAWSON stores and 769
LAWSON STORE100 stores.
* The numbers of store openings and closings and total number of stores in Japan include stores operatedby Lawson, Inc., subsidiary Lawson Sanin, Inc. and three equity-method affiliates, Lawson Kochi, Inc.,
Lawson Minamikyushu, Inc. and Lawson Okinawa, Inc.

[Change in the Total Number of Domestic Stores]
Total stores as ofFebruary 28, 2019

Change during
periodTotal stores as ofNovember 30, 201913,71418

13,732

NATURAL LAWSON

139

4

143

LAWSON STORE100

806

(37)

769

14,659(15)

14,644

LAWSON

Total

4

[Number of LAWSON stores by prefecture (As of November 30, 2019)]
Prefecture

Numberof stores

Hokkaido

681

Ibaraki

222

Kyoto

327

Ehime

215

Aomori

267

Tokyo

1,745

Shiga

157

Tokushima

137

Akita

187

Kanagawa

1,121

Nara

141

Kochi

139

Iwate

177

Shizuoka

285

Wakayama

151

Fukuoka524

Miyagi254

Yamanashi

138

Osaka

1,138

Saga

76

Yamagata

114

Nagano

174

Hyogo

674

Nagasaki

111

Fukushima

165

Aichi

736

Okayama

202

Oita

191

Niigata

227

Gifu

183

Hiroshima

235

Kumamoto

160

Tochigi

201

Mie

139

Yamaguchi

119

Miyazaki

105

Gunma

255

Ishikawa

105

Tottori142

Kagoshima

199

Saitama696

Toyama192

Shimane146

Okinawa

237

Chiba

609

Fukui

113

Kagawa132

Total(domestic)

14,644Prefecture

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]In April 2019, we formulated an action plan to strengthen relationships with and support franchise stores interms of (1) support for franchise store management, (2) shortening of store hours, (3) store opening policy aimed
at increasing franchise store earnings, and (4) initiatives to strengthen communications with franchise stores. In
November 2019, we announced our progress made under the action plan. We will continue to provide franchise
stores with stronger support and reinforce our relationships with them.
Furthermore, as part of our initiative to help achieve the Sustainable Development Goals (SDGs), we began
supplying leftover food to be discarded at our logistics centers to facilities that need food support via the Japan
Food Bank Association. In September 2019, we also redesigned all our triangular sandwich packages, which is
expected to reduce the annual amount of plastic consumption by approximately 60 tons.

As a result, Domestic Convenience Store Business posted gross operating revenue of 360,083 million yen (up0.8% from previous fiscal year) and segment profit of 40,659 million yen (up 2.1% from previous fiscal year).

(Seijo Ishii Business)
At stores of Seijo Ishii, a high-end supermarket chain offering quality foods, we provide our customers withwell-selected, safe, and reliable foods. The number of directly operated Seijo Ishii stores reached 154 as of theend of November 2019. Seijo Ishii’s original quality prepared food continued to be supported by many customers,
contributing to steady sales. By continuing to leverage the company’s strengths including its product development
expertise, know-how acquired as a manufacturing retailer, and retailing techniques, we will endeavor to enhance
the brand capacity of Seijo Ishii.
5As a result, Seijo Ishii Business posted gross operating revenue of 67,842 million yen (up 7.6% from previous
fiscal year) and segment profit of 5,614 million yen (up 15.7% from previous fiscal year).

(Entertainment-related Business)
With regard to our Entertainment-related Business, the ticketing business of Lawson Entertainment, Inc., whichforms the core of the business, continued to secure top-class transaction value in the ticketing industry. In our
product sales business, as of the end of November 2019 we operate 56 stores, mainly comprised of HMV storesdedicated to selling music and video software nationwide, as well as HMV&BOOKS, which markets books, CDs,
and DVDs, and HMV record shop stores specializing in analog records.
As of the end of November 2019, United Cinemas Co., Ltd., an operator of cinema complexes, operates cinema
theaters at 43 sites nationwide, offering 389 screens including those operated on commission.
As a result, Entertainment-related Business posted gross operating revenue of 65,877 million yen (up 14.1%
from previous fiscal year) and segment profit of 4,979 million yen (up 48.4% from previous fiscal year).
(Financial Services Business)
With respect to our Financial Services Business, in our ATM business, the foundation of our banking business,
we expanded our network of financial institution partners, while working to expand the ATM service of Lawson
Bank, Inc.
Lawson Bank, Inc. issues LAWSON Ponta Plus credit cards, which allow cardholders to collect extra Ponta
points when used at LAWSON, NATURAL LAWSON, or LAWSON STORE100 stores as well as when certain
usage conditions are achieved. As a result of such expanded services, credit card membership is seeing steady
growth.
As of the end of November 2019, the number of ATMs installed nationwide reached 13,458 (down 1 fromprevious fiscal year), with each ATM used 47.9 times a day on average. The total number of our financial
institution partners increased to 120 nationwide (up 9 from previous fiscal year), including online banks.
As a result, Financial Services Business posted gross operating revenue of 25,757 million yen (up 14.2% fromprevious fiscal year) and segment profit of 2,126 million yen (up 21.3% from previous fiscal year).
(Other Business)
In addition to the aforementioned businesses, the Group is also involved in the Overseas 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, we have expanded mainly into Shanghai, as well as into Chongqing, Dalian,Beijing, Wuhan, Hefei, and other cities. The number of LAWSON stores in the entire country reached 2,509 asof the end of November 2019.

6

[Distribution of LAWSON Brand Stores Overseas by Region]
Country/Region

Number of stores(As of February 28,
2019)

Changeduring fiscal
year

Number of stores(As of November 30,
2019)

1,227

314

1,541

China

Shanghai and surrounding area

China

Chongqing

198

18

216

China

Dalian

146

30

176

China

Beijing and surrounding area

108

26

134

China

Shenyang

－

13

13

China

Wuhan

308

69

377

China

Hefei

20

23

43

China

Changsha－99

Thailand

120

10

130

Indonesia

42

16

58

Philippines

39

20

59

2

－

2

2,210

548

2,758

United States of America

HawaiiTotal

As a result, Other Business posted gross operating revenue of 39,650 million yen (up 18.1% from previous
fiscal year) and segment loss of 1,256 million yen (down 35.9% from previous fiscal year).

7(2) Explanation Regarding Consolidated Financial Position
Current assets increased by 86,760 million yen from the end of the previous fiscal year to 706,364 million
yen, mainly reflecting an increase of 46,221 million yen in accounts receivable-other and an increase of
27,884 million yen in other due to call loans. Non-current assets increased by 9,362 million yen from the endof the previous fiscal year to 732,088 million yen, mainly reflecting an increase of 19,059 million yen inproperty and store equipment and a decrease of 6,534 million yen in intangible assets. Consequently, total
assets increased by 96,123 million yen from the end of the previous fiscal year to 1,438,452 million yen.
Current liabilities increased by 38,324 million yen from the end of the previous fiscal year to 636,847
million yen, mainly reflecting an increase of 66,812 million yen in deposits received, an increase of 57,585
million yen in other due to call money, a decrease of 53,520 million yen in short-term loans payable, and adecrease of 50,000 million yen in current portion of long-term loans payable. Non-current liabilities increased
by 58,132 million yen from the end of the previous fiscal year to 519,956 million yen, mainly reflecting an
increase of 50,000 million yen in long-term loans payable. Consequently, total liabilities increased by 96,456
million yen from the end of the previous fiscal year to 1,156,804 million yen.
Net assets decreased by 333 million yen from the end of the previous fiscal year to 281,648 million yen,mainly reflecting a decrease of 2,379 million yen in capital surplus, a decrease of 1,112 million yen in foreign
currency translation adjustment, a decrease of 1,072 million yen in non-controlling interests and an increaseof 5,094 million yen in retained earnings. Consequently, shareholders’ equity ratio was 19.3%, down from
20.6% as of the end of the previous fiscal year.
Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28; February
16, 2018), etc. have been applied from the beginning of the first quarter of the fiscal year ending February 29,2020 in preparing the consolidated financial statements. Related information regarding the consolidated
financial position at the end of the third quarter under review was calculated based on an analysis incomparison with the consolidated financial statements for the previous fiscal year after retrospectively
applying the standards.

(3) Explanation Regarding Forward-looking Statements
The financial forecasts remain unchanged from those announced on October 9, 2019.

8

2. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheet
As of February 28, 2019 and November 30, 2019
(Millions of yen)

AssetsCurrent assets:
Cash and deposits
Accounts receivable-due from franchised stores
Lease receivables
Merchandise
Accounts receivable-other
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, 2019

Current 3rd Quarter
As ofNovember 30, 2019354,240
47,17919,12020,862120,969
57,355(124)
619,603358,170
54,58918,21523,123
167,191
85,240(166)
706,364

207,755
16,056
146,880
11,607382,300

208,679
17,266
151,583
23,829401,359

49,791
46,836
9,468
576
106,672

47,03743,472
9,005
622
100,137

44,024
107,034
30,99552,535(835)
233,753
722,726
1,342,329

43,940107,744
29,42350,135(652)
230,591
732,088
1,438,452

(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, 2019

Current 3rd Quarter
As ofNovember 30, 2019

123,408
126,600
50,00038,750101,995
6,683
131,804
4,263
15,015598,522

142,283
73,080－45,054
95,903
6,051
198,6173,256
72,600636,847

260,000
131,441550

310,000
139,919
530

300

264

15,125
31,102
23,303461,824
1,060,347

15,81331,681
21,747519,956
1,156,804

58,506
46,984
166,187(1,028)
270,649

58,50644,605
171,281(1,010)273,382

3,349
(566)
3,930
(848)
5,865
215
5,251
281,982
1,342,329

2,312
(566)
2,817
(732)
3,831
255
4,179
281,648
1,438,452

(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, 2019 and the third quarter of the fiscal year ending
February 29, 2020
(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
methodCompensation income
Other
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 investment securities
Total extraordinary income
Extraordinary losses:
Loss on retirement of non-current assets
Impairment loss
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

11

Previous 3rd Quarter
From March 1, 2018
to November 30, 2018527,637
216,485
149,377
67,108Current 3rd Quarter
From March 1, 2019
to November 30, 2019
550,901
226,469
154,089
72,379230,683
80,468311,151
378,260
330,452
47,807239,242
85,189324,432
396,811344,689
52,122

576

508

602

664

144
1,575
2,899

583
1,173
2,929

1,757
1,267
1,040
4,065
46,641

2,964
1,502
1,921
6,388
48,663

－
－

163
163

2,843
1,403
417
4,664
41,976
15,042
1,606
16,64925,327
7
25,319

4,380
4,187
871
9,439
39,387
11,535
1,951
13,48625,901(52)
25,953

Consolidated Statement of Comprehensive Income
For the third quarter of the fiscal year ended February 28, 2019 and the third quarter of the fiscal year ending
February 29, 2020
(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, 2018
to November 30, 201825,327

Current 3rd Quarter
From March 1, 2019
to November 30, 2019
25,901

2,324
(320)
(29)
1,974
27,301(1,036)(1,089)115(2,010)23,89027,281
19

23,919(28)

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

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

(Changes in Accounting Policies)
The Company’s foreign consolidated subsidiaries are applying International Financial Reporting Standard
16 “Leases” (IFRS 16) from the first quarter of the fiscal year ending February 29, 2020.
The impact of the application of IFRS 16 on the Company’s consolidated financial statements is immaterial.

(Additional Information)(Application of Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.)
Partial Amendments to Accounting Standard for Tax Effect Accounting (ASBJ Statement No. 28; February
16, 2018), etc. have been applied from the beginning of the first quarter of the fiscal year ending February
29, 2020 in preparing the consolidated financial statements. Accordingly, deferred tax assets are classified as
investments and other assets and deferred tax liabilities are classified as non-current liabilities.
(Application of consolidated taxation system)
The Company and certain of its consolidated subsidiaries have applied the consolidated taxation systemfrom the first quarter of the fiscal year ending February 29, 2020.

13