Flash Report on the Consolidated Result
for the Third Quarter of the Fiscal Year Ended February 29, 2016
January 13, 2016
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 securities report: January 14, 2016
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 third quarter of the current period (from March 1, 2015, to November 30, 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.
Gross operating revenue Operating income
Ordinary income
Net income¥ Million%¥ Million%¥ Million% ¥ Million%
Current 3rd Quarter
435,534
20.2
62,0583.8
60,677
1.6
31,472(4.5)
Previous 3rd Quarter
362,461(2.0)
59,773
9.1
59,7008.4
32,9498.1
Current 3rd Quarter
Note: Comprehensive income:(2.9%)
33,055 million yen
Previous 3rd Quarter
34,053 million yen
8.0%

Current 3rd Quarter
Previous 3rd Quarter

Net income per share¥
314.73329.79Fully diluted profit per share¥
314.48329.27(2) Consolidated financial position

Current 3rd Quarter
Previous fiscal year
Reference: Shareholders’ equity:

Total assets¥ Million
799,254764,614

Net assets¥ Million
272,693263,797
Current 3rd Quarter
Previous fiscal year

Shareholders’ equity ratio
%
33.1
33.5
264,442 million yen
256,122 million yen

2. Dividends status
Annual dividends per share
Year-end
1Q
1H
3Q
dividend¥¥¥¥
2014 fiscal year
120.00－120.00－2015 fiscal year
122.50－－2015 fiscal year (forecast)
122.50Note: Revision of forecast for dividends published in the most recent: None

Total¥
240.00245.00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.
Gross operating
revenue

Operating income

Ordinary income¥ Million¥ Million¥ Million%%%

Net income

Net profit
per share¥ Million%¥

2015 fiscal year
579,000 16.3
71,0000.7
68,900(3.9)
35,200Note: Revision of forecast for consolidated performance published in the most recent: None

7.7

352.004. 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
November, 2015:
100,300,000
2. The number of treasury shares in the end of term
November, 2015:
301,840
3. Average number of shares during the term
November, 2015:
99,998,426

February, 2015:

100,300,000

February, 2015:

301,084

November, 2014:

99,909,709

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

2
1．Qualitative Information Regarding Quarterly Financial Results ························································(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
8
2．Matters Related to Summary Information (Notes) ········································································(1) Change in Important Subsidiaries during the Period (Changes in Certain Specified Subsidiaries
Resulting in Revised Scope of Consolidation) ·············································································
8(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 third quarter of fiscal 2015, nine months from March 1 to November 30, 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
the foundation 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.
As a result, for the third quarter of fiscal 2015 on a consolidated basis, gross operating revenue increased to¥435,534 million (up 20.2% from last year), operating income increased to ¥62,058 million (up 3.8% from lastyear), and ordinary income increased to ¥60,677 million (up 1.6% from last year). Net income decreased to¥31,472 million (down 4.5% from last year).
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.
Operating results by business segment were as follows:(Domestic Convenience Store Business)[Merchandising and Service Strategies]
On the merchandise front, following June 2015, in October 2015, we continued launching commemorative
items focusing in mainstay category as LAWSON 40th anniversary campaign. Furthermore, we launched“Honkide Oishii Project (delicious in earnest project)” in serious pursuit of palatability in order to review our
product development process and paid increased attention to ingredients, production methods and taste. Under
this project, we introduced the first item, “Sockeye Salmon Lunchbox with Niigata Koshihikari Rice”, in June2015 and kept selling it every month. Any of the items were all received well by customers. We have started
selling “Doughnuts” over the counter in anticipation of encouraging purchases of freshly brewed “MACHIcafé” coffee since April 2015, and have expanded it in around 9,000 stores as of the end of November 2015.
Moreover, as a “Health Station in Town,” we also placed emphasis on selling health-oriented products. In
particular, the “Green Smoothie” sold under the NATURAL LAWSON brand and made with a full meal’sworth of vegetables, has reached 13 million units sale as of the end of November 2015, and “Chia Seed
Containing Vegetables and Fruits Smoothie” also enjoyed great popularity among customers. In additional,
there are currently 23 Lawson Farms in which Lawson, Inc. holds equity stakes. The farms assume the role ofsupplying safe and fresh fruits and vegetables to the Group’s stores and factories that produce LAWSON’s
original products. In November 2015, we have started selling “Shio-nigiri (plain rice ball with salt) 2 pieces
with Lawson Farm Niigata Koshihikari Rice” in some stores in Kanto-Koshinetsu region. The Group willcontinue to support the health of customers through such initiatives.

2

In addition to thus strengthening our product lineup, we have also expanded our lineup of services
including “Gift Card*” transactions, which continued to remain strong. In September 2015, we began to accept
China UnionPay cards for payment at our stores and, in November 2015, we launched our prepaid Ponta card
service dubbed “Osaifu (wallet) Ponta.” Furthermore, starting December 2015, functions offered by “d Point
Card” and “WAON” will be partially integrated in an effort to offer more convenience to our customers.
For sales promotions, we implemented measures mainly to our mainstay category to attract customers such asoffering rice balls at “Rice Ball 100 Yen Sale” almost every month from May 2015. We also implemented
promotional measures that offer strengthened support for everyday life, including our “10% Off Lawson SelectChilled/Frozen Foods” sale.
*

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 3rd Quarter

Current 3rd Quarter

March 1, 2014 to November 30, 2014

March 1, 2015 to November 30, 2015

Sales

Percentage of

Sales

Percentage of(Millions of yen)

total (%)

(Millions of yen)

total (%)

Processed foods

790,25153.8

785,018

52.9

Fast foods

324,63022.1

351,348

23.7

Daily delivered foods

212,132

14.4

209,657

14.1

Nonfood products

143,005

9.7

138,943

9.3

Total

1,470,020

100.0

1,484,968

100.00[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, strengthened guidance to franchise store
owners and revised order placement methods as a way of reforming operations in order to create stores that
could grasp customers’ satisfactions and supports. In June 2015, we started phasing in a semi-automatedordering system for our ready-made meal category, and as of the end of November 2015, we put the system inmost of all stores. 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]
In opening new stores, the Group prioritized profitability based on its proprietary return on investment(ROI)-focused store development standard.
In November 2015, we remodeled two Poplar stores operated by Poplar Co., Ltd. into Lawson Poplar
stores based on our capital and business alliance agreement. In addition, in the same month, we also concluded
a letter of intent to form a capital and business alliance with Three F Co., Ltd. to start discussing ourpartnership in concrete terms. Furthermore, we started offering in phases LAWSON’s original “Lawson Select”

3and “Oyatsugoro (snack food)” products, as well as “Kenkogashi” (healthy confectionery) from the
NATURAL LAWSON brand at 21 supermarkets in Kochi Prefecture operated by SUNNY MART Co., Ltd.,the parent company of Lawson Kochi, Inc.
Furthermore, by building partnerships in local area, in addition of healthcare items including OTC
pharmaceuticals, cosmetics, and daily necessities, the stores offer a merchandise assortment of around 5,500
items, twice as many as conventional LAWSON stores. Including the first store opened in Fukuoka prefecture
in October 2015, it has reached 23 stores nationwide. The number of stores offering non-prescription drugs hasreached 104 stores (included 36 pharmacy LAWSON stores equipped with drug-dispensing pharmacies) as ofthe end of November 2015. In October 2015, the third LAWSON store housing a nursing care hub center
offering nursing care consultation services and a lounge space was opened by Riborn Corporation, its franchise
store owner.
Regarding to LAWSON STORE100, we promoted to close unprofitable stores under the business
revitalization plan. During the third quarter of fiscal 2015, 338 LAWSON STORE100 stores (included stores
which were transformed into LAWSON stores) were closed. With regard to the remaining 814 stores, we
increased the product composition ratio of 100-yen items (excluding tax) by scaling down product portions to
respond to customer needs for value, and strengthened our popular fruit and vegetable lineup. As a result, sales
at these stores gradually improved, with existing-store sales for the third quarter of fiscal 2015 exceeding thosefor the same period of the previous fiscal year.
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 649 and 709 stores, respectively,
with the total number of stores in Japan reaching 11,712 as of the end of November 2015.
[Change in the Total Number of Domestic Stores]
Total stores as ofFebruary 28, 2015
LAWSON

Change during
fiscal year

Total stores as ofNovember 30, 2015

10,633

143

10,776

116

6

122

LAWSON STORE100／LAWSON MART

1,151

(337)

814

Total

11,900(188)

11,712

NATURAL LAWSON

Note: For change during fiscal year, it includes a decrease of 128 stores which were transferred into Lawson
Kochi, Inc. from Lawson, Inc. on April 1, 2015.

4

[Number of LAWSON stores by prefecture (As of November 30, 2015)]
Prefecture

Numberof stores

Hokkaido629

Ibaraki

154

Kyoto

316

Ehime

211

Aomori

216

Tokyo

1,513

Shiga

153

Tokushima

133

Akita

183

Kanagawa

819

Nara

131

Fukuoka

445

Iwate

164

Shizuoka

234

Wakayama

133

Saga

66

Miyagi

204

Yamanashi

114

Osaka

995

Nagasaki

105

Yamagata

80

Nagano

168

Hyogo

629

Oita

167

Fukushima

104

Aichi

565

Okayama152

Kumamoto

140

Niigata

136

Gifu

154

Hiroshima

184

Miyazaki105

Tochigi

144

Mie

112

Yamaguchi

122

Total (domestic)

Gunma

100

Ishikawa

101

Tottori

116

Saitama

516

Toyama189

Shimane

120

Chiba

457

Fukui

105

Kagawa128

Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Numberof stores

11,712

In addition to the above, Lawson Kochi, Inc. operates 134 LAWSON chain stores in Kochi prefecture,
Lawson Minamikyushu, Inc. operates 195 LAWSON chain stores in Kagoshima prefecture and Lawson
Okinawa, Inc. operates 187 LAWSON chain stores in Okinawa prefecture as of the end of November 2015.
[Other]With regards to our efforts in Home Convenience, starting in September 2015, the “Convenience Store
Pick-up Service” will be available for items purchased at “Rakuten Ichiba”, an Internet shopping mall. We will
strive to enhance 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.
(Seijo Ishii Business)
The number of directly operated Seijo Ishii stores, a high-end supermarket chain offering quality foods,
reached 117 as of the end of November 2015. Performance was strong, driven by sales of coconut oil and chia
seed that became popular after their positive health effects were introduced on television and other media.
Collaborations between SEIJO ISHII and our Domestic Convenience Store Business were promoted, such as
expanding Seijo Ishii’s selection of wine offered at NATURAL LAWSON stores, jointly importing
confectionery, and rolling out jointly developed products including nuts and cup soup. We will continue toenhance the brand image and corporate value of SEIJO ISHII Co., Ltd., while absorbing the company’s
product development expertise, knowhow acquired as a manufacturing retailer, and sales methods, tostrengthen our Domestic Convenience Store Business.

5

(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. Besides HMV’s largest entertainment complex store,“HMV&BOOKS TOKYO”, that combines selling music and books, was opened in November 2015 in
Shibuya, the number of HMV stores that sell music CDs and DVDs totaled 53 as of the end of November 2015.
We will strive to offer an even wider selection of products and services to better respond to customer needs, forexample, by expanding our ticketing business. Furthermore, United Cinemas Co., Ltd. operates a total of 37
sites with 333 screens (includes management contract) at its cinemas nationwide.
(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 other businesses.
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 Philippines.
[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 November

2015)

30, 2015)

China

Shanghai and surrounding area

354

75

429

China

Chongqing

104

9

113

China

Dalian

30

12

42

China

Beijing

19

10

29

Thailand

32

10

42

Indonesia

48

(10)

38

Philippines

－

12

12

3

(1)

2

590

117

707

United States of America

Hawaii

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. In this fiscal 2015, starting in
September 2015, we sequentially installed new ATM that is capable of withdrawing Japanese Yen by China
UnionPay cards. Moreover, we strengthened partnership with new financial institution bringing the total
number of our financial institution partners to 79 nationwide (up 8 year on year), including online banks, andthe number of ATMs installed nationwide to 11,023 (up 256 year on year) as of the end of November 2015.

6

(2) Explanation Regarding Consolidated Financial Position
Total current assets stood at ¥229,080 million, climbed ¥5,438 million from February 28, 2015, the end of
the previous fiscal year. This reflected an increase of ¥6,410 million in accounts receivable-other. Non-current
assets grew ¥29,202 million from February 28, 2015 to ¥570,173 million, mainly owing to an increase of¥20,854 million in property and store equipment. Consequently, total assets climbed ¥34,640 million from theend of the previous fiscal year to ¥799,254 million.
Total current liabilities increased by ¥17,906 million from the end of the previous fiscal year to ¥318,975
million, mainly reflecting an increase of ¥9,393 million in account payable-trade, an increase of ¥8,327 million
in accounts payable-other, an increase of ¥6,820 million in deposits received and a decrease of ¥8,657 million
in income taxes payable. Non-current liabilities stood at ¥207,585 million, growing ¥7,838 million fromFebruary 28, 2015, mainly owing to an increase of ¥9,282 million in lease obligations. Consequently, total
liabilities increased by ¥25,744 million from the end of the previous fiscal year to ¥526,561 million.
Total net assets stood at ¥272,693 million, increased by ¥8,895 million from February 28, 2015. This was
mainly due to an increase of ¥7,522 million in retained earnings. Consequently, shareholders’ equity ratio
amounted to 33.1%, down from 33.5% as of the end of the previous fiscal year.

(3) Explanation Regarding Forward-looking Information Such As Forecast Consolidated Performance
The financial forecasts announced on October 7, 2015 remain unchanged.

7

2．Matters Related to Summary Information (Notes)(1) Change in Important Subsidiaries during the Period (Changes in Certain Specified Subsidiaries Resulting in
Revised 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 Accounting Standard Retirement Benefits, and the main clause ofparagraph 67 of Guidance Retirement Benefits. The Company reviewed the calculation method of retirement
benefit liabilities and service cost, changed the standard of payment period of retirement benefits estimatedamounts from period straight-line basis recorded to benefit formula basis. The method for calculating thediscount rate was changed from the method in which bond duration, a base used for calculating the discountrate, was decided based on the number of years that approximates the average remaining service period of theemployees, to the method in which multiple discount rates are calculated in accordance with the expected
payment period of retirement benefits.
The application of such as accounting standards for retirement benefits has followed the transitional
treatment stipulated in paragraph 37 of Accounting Standard Retirement Benefits, and the impact due tochange of calculation method of retirement benefit liabilities and service cost was charged to Retained earnings
at the beginning of the third quarter of the consolidated fiscal year under review.
As a result, net defined benefit liability as of the beginning of the third quarter of the consolidated fiscal
year under review decreased ¥2,130 million, while retained earnings increased ¥1,411 million. The impact of
this change to operating income, ordinary income, and income before income taxes and minority interests forthe third 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 November 30, 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 3rd Quarter
As ofNovember 30, 2015

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

76,61434,37818,05365,077
3,093
31,886(23)
229,080

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

322,083(155,617)
166,466
73,947(57,755)
16,191
176,362(76,257)
100,105
12,998(470)
12,528295,291

18,80048,18911,989550
79,53026,247
47,106
11,533530
85,417

37,232
93,20526,251
31,435(1,121)
187,004
540,971764,61439,36092,737
21,34836,902(885)
189,464
570,173
799,254

(Millions of yen)

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

10Previous fiscal year
As of
February 28, 2015

Current 3rd Quarter
As ofNovember 30, 2015

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

112,851
1,771
1,860
575
22,833
51,846
4,643
110,455
2,614
9,523
318,975

58,42576,17457,85085,456367

428

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

11,39824,19328,258207,585
526,561

58,506
47,696
147,177(1,272)
252,10758,506
47,697
154,700(1,279)259,624

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

654
(566)
5,212
(482)
4,818
307
7,943
272,693799,254

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
For the third quarter of the fiscal years ended February 28, 2015 and February 29, 2016
(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
Share of profit of entities accounted for using equity
methodCompensation income
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 sales of investment securities
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 3rd Quarter
From March 1,2014
to November 30, 2014
362,461
115,473
86,771
28,702Current 3rd Quarter
From March 1,2015
to November 30, 2015
435,534
166,592
114,248
52,343

189,136
57,851
246,987
275,689
215,915
59,773

198,681
70,260268,942
321,286
259,227
62,058

615
169
161
1,454
2,401

569
320
530
887
2,307

1,057
768
648
2,474
59,700

1,390
1,466
831
3,688
60,677

369
756
1,126

－
892
892

1,817
2,687
224
4,729
56,097
20,362
2,437
22,79933,297347
32,949

2,821
5,125
－
7,947
53,622
15,6195,959
21,57832,043571
31,472

Consolidated Statement of Comprehensive Income
For the third quarter of the fiscal years ended February 28, 2015 and February 29, 2016
(Millions of yen)

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities

Revaluation reserve for land
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 3rd Quarter
From March 1,2014
to November 30, 2014
33,297

Current 3rd Quarter
From March 1,2015
to November 30, 2015
32,043

126
1
787
－

1,048
－
(72)
35

(159)

－

755
34,053

1,012
33,05533,706346

32,276779

(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