Flash Report on the Consolidated Financial Results [IFRS]
for the Third Quarter of the Fiscal Year Ending February 29, 2024
January 12, 2024
Tokyo Stock Exchange
Listed Company Name: Lawson, Inc.
Code No.: 2651
(URL https://www.lawson.jp/en/ir/)
Company Representative: Sadanobu Takemasu, President and CEO, Representative Director,
Chairman of the Board
Contact: Tomoki Takanishi, Senior Vice President, Financial Administration Division Director
Tel.: +81-3-5435-2773
Scheduled date for submission of quarterly securities report: January 12, 2024
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, 2023 (from March 1, 2023 toNovember 30, 2023)(1) Consolidated operating results (cumulative)
Note: Percentages represent increases (decreases) compared with the corresponding period of the previous fiscal
year.
Gross operating
revenue
For the third Millions
quarter endedof yenNovember 30,
814,143
2023
November 30,
746,984
2022

Profitattributable toowners ofparentMillions%of yenMillionsof yen%50.0

45,882

48.7

49,16838.1－

30,845－35,615－

Core operating
profitProfit before tax%

Millionsof yen%Millionsof yen%Millionsof yen%9.0

75,281

36.0

67,82943.946,324－55,356－47,122－30,891

Basic earnings per
share

Diluted earnings per
share

For the third quarter
ended
November 30, 2023

Yen

Yen

458.46457.98

November 30, 2022

308.22307.95

ProfitTotal
comprehensive
incomeNote: “Core operating profit” is a profit indicator for operating income under Japanese GAAP that is calculated
by subtracting the cost of sales and selling, general and administrative expenses from gross operating revenue.
(2) Consolidated financial position

As ofNovember 30, 2023
February 28, 2023

Total assets

EquityEquityattributable to ownersof parent

Millions of yen
2,265,490
2,242,421

Millions of yen
283,888
253,858

Millions of yen
279,395
249,941

Ratio of equity
attributable to ownersof parent to total
assets
%12.3
11.1

2. Dividends
Annual dividends per share

1Q

1H

3Q

Year-end

Total

2022 fiscal year

Yen
－

Yen
75.00

Yen
－

Yen
75.00

Yen
150.002023 fiscal year－

117.50－132.50250.002023 fiscal year (forecast)

Note: Revision of the most recent dividends forecast: Yes

3. Forecast of consolidated operating results for 2023 fiscal year (from March 1, 2023 to February 29, 2024)
Note: Percentages represent increases (decreases) compared with the corresponding period of the previous fiscal
year.

2023 fiscal year

Gross operating
revenue
Millions%of yen1,090,000
9.0Core operating profit
Millionsof yen88,000%36.8

Profit before tax
Millionsof yen74,500%58.1

Profit attributable toowners of parent
Millions%of yen50,00068.3

Basic earnings
per shareYen
499.61

Note: Revision of the most recent consolidated operating results forecast: Yes
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) Changes in accounting policies, changes in accounting estimates
1. Changes in accounting policies required by IFRS: Yes
2. Changes in accounting policies other than 1. above: None
3. Changes in accounting estimates: None
Note: For details, please refer to “2. Condensed Quarterly Consolidated Financial Statements and Main
Notes, (5) Notes Concerning Condensed Quarterly Consolidated Financial Statements (Significant
Accounting Policies)” on page 17.
(3) Number of shares outstanding (common stock)
1. Number of shares outstanding at the end of period (including treasury shares)
As of November 30, 2023:
100,300,000
As of February 28, 2023:
2. Number of treasury shares at the end of period
As of November 30, 2023:
221,630
As of February 28, 2023:
3. Average number of shares during the period (cumulative nine months)
As of November 30, 2023:
100,078,336
As of November 30, 2022:

100,300,000
222,962
100,075,705

Note: The Flash Report on the Consolidated Financial Results is not subject to audit.
Note: Descriptions on appropriate use of financial performance forecasts and other special notes
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 achievementof said forecasts cannot be guaranteed. Actual results may be materially different from those in the forecast as aresult 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 Forwardlooking Statements” on page 9.

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···········································································

9

2. Condensed Quarterly Consolidated Financial Statements and Main Notes ················································

10(1) Condensed Quarterly Consolidated Statement of Financial Position ····················································

10(2) Condensed Quarterly Consolidated Statement of Profit and Loss and Condensed Quarterly
Consolidated Statement of Comprehensive Income ··············································································

12

Condensed Quarterly Consolidated Statement of Profit and Loss ······················································

12

Condensed Quarterly Consolidated Statement of Comprehensive Income ·········································

13(3) Condensed Quarterly Consolidated Statement of Changes in Equity ····················································

14(4) Condensed Quarterly Consolidated Statement of Cash Flows ······························································

16(5) Notes Concerning Condensed Quarterly Consolidated Financial Statements ········································

17(Going Concern Assumption) ·············································································································

17(Significant Accounting Policies) ······································································································

17(Segment Information) ······················································································································

171

1．Qualitative Information Regarding Quarterly Financial Results(1) Explanation Regarding Consolidated Operating Results
During the third quarter of fiscal 2023, from March 1 to November 30, 2023, we made concerted Group-wide
efforts to realize the “Lawson Group Challenge 2025” medium-term management vision, while society shifted
toward a post-COVID world driven primarily by the downgrade in the categorization of COVID-19 to Class 5,
which includes seasonal flu. Specifically, we undertook various measures under our Lawson Group Sweeping
Transformation Executive Committee, which was launched in September 2020, and the whole Lawson Group
collectively endeavored to resolve medium- to long-term issues for sustainable growth, acquire new revenue
opportunities, foster job satisfaction, and introduced a range of LGBTQ initiatives aimed at creating a workplaceenvironment and system that maximizes the full potential of diverse human resources and we received the Goldrating in the PRIDE Index 2023.*1 Focusing on community, individual customers, and individual stores, we
expanded a company system in eight areas across Japan and transferred authority and functions from theheadquarters to the frontline stores with the aim of facilitating our organizational structure to more vigorously
pursue the creation of customer value at locations that are in close proximity to our customers. We are undertaking
various initiatives under this new structure.

*1 An assessment index established in 2016 by general incorporated association “work with Pride” with the aimof evaluating workplace initiatives to promote the inclusion of LGBTQ+ and other sexual minority employees.
As a result, during the third quarter of fiscal 2023 on a consolidated basis, gross operating revenue increased
to 814,143 million yen (up 9.0% from previous fiscal year) and profit before tax increased to 67,829 million yen(up 43.9% from previous fiscal year). Profit attributable to owners of parent was 45,882 million yen (up 48.7%
from previous fiscal year).
The Lawson Group has prepared its consolidated financial statements in compliance with IFRS from end of
previous fiscal year, and the figures for the third quarter of the previous fiscal year have also been restated inaccordance with IFRS for comparative analysis.
We also focused on improving our group-wide internal control system and addressing operating risks based on
the 2023 Basic Policy for Improvement of Internal Control Systems. We will continue promoting internal control
going forward.
Operating results by business segment were as follows.

(Domestic Convenience Store Business)
During the third quarter under review, a general increasing trend was seen in the movement of people. Against
this backdrop, each area company reinforced their sales floors with a particular focus on the scope of merchandise
assortment and the quantity of inventory by building on the foundation established by the Lawson Group
Sweeping Transformation Executive Committee, which has been proceeding with store renovations andexpanding the merchandise assortment of frozen foods and other daily necessities. As of the end of November
2023, 12,689 stores have introduced MUJI products, which began full-scale introduction in the previous year.
Also, as we work our way toward 2025, our 50th anniversary year, we continue to expand HAPPY LAWSON2PROJECT! with the aim of creating “new hubs of refreshment in every community,” and promoted measures
to fulfill the three promises of our business policy-“Superior taste,” “Human kindness,” and “Environmental(Machi) friendliness”-in an effort to operate LAWSON stores endorsed by all our customers.
In addition to further strengthening our distinctive products that focus on taste and health, we are also
working to provide heartfelt customer service in our stores, and we are continuing with our environmentallyfriendly measures such as reducing food loss, plastic usage, and CO2 emissions.
[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. In our efforts to increase sales, we also
focused on expanding our merchandise assortment to respond to changes in customer lifestyles and values.
Furthermore, we kept up our initiatives to increase the profitability of franchise stores, including helping themstreamline their store operation and control costs associated with food waste and utility expenses.

[Merchandising and Service Strategies]
Sales continued to surge in fast-food counter items, soft drinks and the rice range, products offered by the
Machikado Chubo in-store kitchen service, bakery, and the cosmetics range driven by an increase in the
movement of people. In the fast-food counter range, a new Japanese fried chicken product, “L-kara,” enjoyedstrong sales in addition to regular items such as the “Kara-age-kun” chicken nuggets. In the rice range, sales
continued to surge in rice bowls such as the renewed “Kinshari Onigiri Rice Ball” series. In the Machikado
Chubo, we saw strong performance for regular items such as the Donburi rice bowls as well as box lunch items
in which rice is packed separately. In the daily delivered food range, bakery products including “Melon-pan
Bread with Salty Butter” and regular items drove sales up, while in the non-food range, sales for MUJI products
and cosmetics products under a new brand jointly developed with a popular cosmetics brand enjoyed growth.
In food delivery service, the combined number of stores listed on four food delivery services such as Uber
Eats, reached 4,478 in 47 prefectures as of November 30, 2023. In addition, Uber Eats delivers over-the-counter
drugs sold at 105 LAWSON stores in 20 prefectures.

[Breakdown of Sales by Merchandise Category at Chain Stores in Domestic Convenience Store Business]
Previous fiscal year
From March 1, 2022
to November 30, 2022

Current fiscal year
From March 1, 2023
to November 30, 2023

Sales

Percentage

Sales

Percentage(Millions of yen)of total (%)(Millions of yen)of total (%)

Processed foods

929,92853.7

974,898

53.3

Fast foods

388,43822.4

413,459

22.6

Daily delivered foods

265,83915.3

278,780

15.3

Nonfood products

149,389

8.6

160,1478.8

1,733,595

100.0

1,827,286

100.0

Fiscal year

Product group

Total

3

[Store Development]
In opening new stores, the Group continued to focus on developing profitable stores.
During the third quarter of fiscal 2023, the total number of LAWSON, NATURAL LAWSON and LAWSONSTORE100 stores opened in Japan stood at 191 stores. Meanwhile, we closed a total of 196. As of the end of
November 2023, the total number of domestic stores was 14,626*2.
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
over-the-counter drugs has reached 309 stores (includes 45 pharmacy LAWSON stores equipped with drugdispensing pharmacies) as of the end of November 2023. Moreover, the number of stores with nursing careconsultation desks for seniors has reached 19 as of the end of November 2023. Furthermore, we have also been
expanding our chain of “in-hospital LAWSON stores,” which feature strengthened focus on medical, sanitary andnursing supplies in addition to merchandise and services offered at standard convenience stores. The number ofsuch stores has reached 338 as of the end of November 2023. Building on our expertise developed throughoperation of in-hospital LAWSON stores, we will continue to support the lives of all people interacting withhospitals.
Our NATURAL LAWSON stores, which are popular among customers for supporting their beauty, health, andcomfortable lifestyles, offer an exclusive selection of finely picked items of value, including food made withhealthy ingredients and environmentally friendly detergents and cosmetics. Meanwhile, our LAWSONSTORE100 stores consistently offer safe and high-quality fruits and vegetables with a focus on freshness anddaily necessities, supporting customers’ daily dietary lives by helping them plan their meals. The stores are visitedby customers of all ages including children and the elderly, and particularly single people and homemakers. As ofthe end of November 2023, we operate 131 NATURAL LAWSON stores and 648 LAWSON STORE100 stores.

*2 The numbers of store openings and closings and total number of stores in Japan include stores operated by
Lawson, Inc., Lawson Kochi, Inc., Lawson Minamikyushu, Inc. and Lawson Okinawa, Inc.

[Change in the Total Number of Domestic Stores]
Total stores as ofFebruary 28, 2023
LAWSON

Change during
fiscal year

Total stores as ofNovember 30, 2023

13,8398

13,847

NATURAL LAWSON

131

－

131

LAWSON STORE100

661

(13)

648

14,631(5)

14,626Total

4

[Number of LAWSON stores by prefecture (As of November 30, 2023)]
Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Numberof stores

Hokkaido

698

Ibaraki

215

Kyoto

326

Ehime

218

Aomori

279

Tokyo

1,654

Shiga

152

Tokushima

135

Akita

177

Kanagawa

1,058

Nara

134

Kochi

138

Iwate

179

Shizuoka

273

Wakayama

153

Fukuoka526

Miyagi259

Yamanashi

134

Osaka

1,201

Saga

77

Yamagata

108

Nagano

167

Hyogo

701

Nagasaki

122

Fukushima

168

Aichi

715

Okayama

244

Oita

199

Niigata

223

Gifu

177

Hiroshima

301

Kumamoto

164

Tochigi

198

Mie

136

Yamaguchi

129

Miyazaki

111

Gunma

240

Ishikawa

101

Tottori137

Kagoshima

201

Saitama690

Toyama176

Shimane

140

260

Chiba

595

Fukui

105

Kagawa132

Okinawa
Total(domestic)

14,626(Note) These figures include stores operated by Lawson, Inc., Lawson Kochi, Inc., Lawson Minamikyushu, Inc.
and Lawson Okinawa, Inc.

As a result, Domestic Convenience Store Business posted gross operating revenue of 565,434 million yen(up 8.0% from previous fiscal year) and segment profit of 56,307 million yen (up 33.8% from previous fiscal
year).

(Seijo Ishii Business)
Seijo Ishii Co., Ltd provides customers with well-selected, and highly original foods under its philosophy of“Quality food for a quality life.” Operating diverse store formats including street-side stores and stores in stationbuildings and commercial facilities, the supermarket chain leverages its distinguished product development
expertise to offer original products and food items made in-house under the Seijo Ishii brand. The number of
directly operated Seijo Ishii Co., Ltd stores reached 181 as of the end of November 2023. Sales at stores in officebuildings recovered from the sluggish sales resulting from the COVID-19 pandemic. Product-wise, daily delivered
foods and dishes produced in-house at Seijo Ishii’s central kitchen recorded steady sales, while sales also grew
for fresh food including fruits and vegetables, meat, and fish, primarily at street-level stores. In November, thefirst store, Seijo Store, was completely renovated as a new flagship store. We will continue striving to elevate thebrand power of Seijo Ishii by promoting the sustainable development of products of value, effective promotional
campaigns, and publicity activities as a manufacturing retailer eager to send messages out to consumers.

As a result, Seijo Ishii Business posted gross operating revenue of 81,902 million yen (up 1.0% fromprevious fiscal year) and segment profit of 8,716 million yen (down 6.8% from previous fiscal year).
(Entertainment-related Business)
With respect to our ticketing business in our Entertainment-related Business undertaken by Lawson

5Entertainment, Inc., concerts, leisure, and other events enjoyed brisk demand. In addition, we focused our efforts
on securing an expanded lineup of events and strengthening sales in each genre, which resulted in a year-on-yearincrease in our ticket transaction value. Furthermore, sales for our product sales business at HMV music/video
software stores and others grew as a result of a rise in the number of concerts and events held, which drove up
sales for related products, as well as an increase in the movement of people. In our e-commerce business, we aremaking efforts to expand the scope of merchandise we handle, including band and artist merchandise, cosmetics
and other items. The number of stores has reached 52 as of November 30, 2023, including HMV stores,
HMV&BOOKS, which markets books, CDs and DVDs, and HMV record shop stores specializing in analog
records.
During the first nine months under review, United Cinemas Co., Ltd., an operator of cinema complexes,
attracted more moviegoers and generated higher sales than in the same period of the previous fiscal year as a resultof the release of much-talked-about and highly anticipated movies, such as during the long holiday in spring andthe summer holiday season, as well as the strong performance of high ticket-price films screened using 4D movie
screening systems. As of November 30, 2023, 43 cinema complexes nationwide with 398 screens are operating.

As a result, Entertainment-related Business posted gross operating revenue of 60,817 million yen (up 13.2%
from previous fiscal year) and segment profit of 5,316 million yen (up 24.5% from previous fiscal year).
(Financial Services Business)
With respect to our Financial Services Business, we endeavored to offer an expanded range of new services
through Lawson Bank, Inc.’s ATMs and ATM settlement network. As of the end of November 2023, the numberof ATMs installed nationwide reached 13,579, with each ATM used 55.7 times a day on average. The total numberof our financial institution partners reached 391 nationwide. We now have 5 partners for the cash charging at
ATMs, 8 for the “Smartphone ATM (QR code deposit/withdrawal)”*3 service, 24 for the “Immediate AccountSettlement Service”*4 (18 financial institutions and 6 other service operators), and 11 for international moneytransfer cards. In addition to cash deposit and withdrawal services, charging to cashless payment services has also
contributed to the increased use of ATMs, etc. Furthermore, from October we also started offering the “Pontama
ATM” service, which allows users to accumulate Ponta points by scanning their Ponta card after deposit orwithdrawal transactions at Lawson Bank ATMs.
Regarding LAWSON Ponta Plus credit cards issued by Lawson Bank, Inc, we are continuing to work on
expanding credit card membership and promoting card usage by drawing public attention to the benefits of using
the card at LAWSON stores and other Ponta affiliated stores.

*3 A service where customers can deposit/withdraw cash or take out/repay a credit card loan at an ATM by usinga smartphone app instead of a bank card. “Smartphone ATM” is a registered trademark of Seven Bank, Ltd.
*4 A service that allows customers to top up their mobile payment app from their account with a financial
institution by harnessing the ATM network.

As a result, Financial Services Business posted gross operating revenue of 26,767 million yen (up 2.9% fromprevious fiscal year) and segment profit of 2,385 million yen (down 20.1% from previous fiscal year).

6

(Overseas Business)
With regards to Overseas Business, the Group’s operating companies have developed LAWSON stores in
the People’s Republic of China, Thailand, Indonesia, the Philippines, and the United States of America(Hawaii).
The number of LAWSON stores in the People’s Republic of China, exceeded 6,000 in August and reached6,251 as of the end of November 2023, up 631 stores from the end of previous fiscal year. In addition to opening
new stores through our subsidiaries, we are also launching stores by concluding mega franchise agreementswith local retailers in different cities, as well as area license agreements, where partner companies serve as
headquarters in designated areas and assume overall operation and development, in efforts to accelerate theexpansion of business areas and the number of stores. The spread of the COVID-19 pandemic peaked from theend of 2022 to early January of 2023 and daily sales increased due to the recovery in the movement of people,
though there are regional differences in the degree of recovery. We will work to offer our signature high-quality
original products including rice and dessert items, enhance the value of the Lawson brand in China, and increase
earnings by strengthening our delivery business.
With regard to regions other than China, sales increased due to the recovery in the movement of people
resulting from the elimination and easing of COVID-related restrictions in respective countries. We have been
accelerating the pace of new store openings, and the number of stores in Thailand, Indonesia, the Philippines,
and the United States (Hawaii) combined reached 964 as of November 30, 2023, up 424 stores from the end of
the previous fiscal year, achieving a record high in these countries combined. We will continue to operate ourstores to sustain the daily lives of our customers and strive to further expand our earnings.
[Distribution of LAWSON Brand Stores Overseas by Region]
Country/Region
China
China
China
China
China

Number of stores(As of February 28,
2023)

Shanghai and surrounding area
(Shanghai, Zhejiang, Jiangsu)
Chongqing and surrounding area
(Chongqing, Sichuan）
Liaoning(including Shenyang, Dalian)Beijing and surrounding area
(Beijing, Tianjin, Hebei)
Guangdong and Fujian(including Shenzhen, Xiamen)

Changeduringfiscal year

Number of stores(As of November
30, 2023)

2,483

168

2,651

798

83

881

586

122

708

432

64

496

174

131

305

China

Hubei (including Wuhan)

617

29

646

China

Anhui (including Hefei)

231

(7)

224

China

Hunan (including Changsha)

160

3

163

China

Hainan (including Haikou)

139

38

177

5,620

631

6,251

Thailand

181

4

185

Indonesia

256

390

646

Philippines

101

30

131

2

－

2

6,160

1,055

7,215

China

Subtotal

United States of America (Hawaii)
Total

7

As a result, Overseas Business posted gross operating revenue of 88,124 million yen (up 27.2% from previous
fiscal year) and segment profit of 2,511 million yen (segment loss was 3,488 million yen for the same period of
the previous year).
(2) Explanation Regarding Consolidated Financial Position①

Assets, Liabilities and Equity at the end of the third quarter of fiscal 2023
Current assets increased by 2,594 million yen from the end of the previous fiscal year to 682,434 million yen,mainly reflecting increases of 15,538 million yen in trade and other receivables and 3,804 million yen in
inventories, and decreases of 11,386 million yen in cash and cash equivalents and 5,847 million yen in financelease receivables. Non-current assets increased by 20,473 million yen from the end of the previous fiscal year to1,583,056 million yen, mainly reflecting increases of 9,485 million yen in property and store equipment, 8,804
million yen in intangible assets, and 4,830 million yen in guarantee deposits, and a decrease of 3,880 million yen
in deferred tax assets. Consequently, total assets increased by 23,068 million yen from the end of the previous
fiscal year to 2,265,490 million yen.
Current liabilities increased by 76,612 million yen from the end of the previous fiscal year to 981,892 million
yen, mainly reflecting an increase of 133,583 million yen in other financial liabilities and a decrease of 56,424
million yen in deposits received. Non-current liabilities decreased by 83,574 million yen from the end of theprevious fiscal year to 999,709 million yen, mainly reflecting decreases of 79,925 million yen in borrowings and5,402 million yen in lease liabilities. Consequently, total liabilities decreased by 6,961 million yen from the endof the previous fiscal year to 1,981,601 million yen.
Equity increased by 30,030 million yen from the end of the previous fiscal year to 283,888 million yen, mainlyreflecting increases of 26,617 million yen in retained earnings and 2,706 million yen in other components of equity.
Consequently, ratio of equity attributable to owners of parent to total assets was 12.3%, up from 11.1% as of theend of the previous fiscal year.
②

Cash flows during the third quarter of fiscal 2023

Cash and cash equivalents as of November 30, 2023 decreased by 11,386 million yen from the end of theprevious fiscal year to 388,136 million yen.
Net cash provided by operating activities was 301,259 million yen, an increase of 90,530 million yen from thethird quarter of fiscal 2022, mainly because of the movement in call money for banking business, deposits received,
trade and other receivables, income taxes paid, and trade and other payables.
Net cash used in investing activities was (50,021) million yen, an increase of 15,266 million yen from the third
quarter of fiscal 2022, mainly because of a decreases of proceeds from sales and redemption of investments andincreases in purchase of intangible assets and payments for guarantee deposits.
Net cash used in financing activities was (263,723) million yen, an increase of 71,968 million yen from thethird quarter of fiscal 2022 mainly because of increases in repayments of borrowings and proceeds fromborrowings.

8

The Group’s sources of capital and funding liquidity are used to fund new store openings, remodel existing
stores, and develop new business, as well as to pay dividends.
Working capital and investment funds are basically allocated from operating cash flow, and funds areprocured as needed.

(3)

Explanation Regarding Forward-looking Statements

Regarding the financial forecasts for the current full fiscal year ending February 29, 2024, in light of recent
performance trends and other factors, we have revised gross operating revenue, core operating profit, profit
before tax, profit attributable to owners of parent and basic earnings per share.

Gross operating
revenueCore operating
profitProfit before tax

Profitattributable toowners of parent

Basic earnings
per share

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Previous forecast (A)1,080,000

85,00070,50047,000469.63

Revised forecast (B)1,090,000

88,00074,50050,000499.61

Change (B-A)

10,000

3,000

4,000

3,000

Change (%)

0.9

3.5

5.7

6.4

1,000,385

64,31147,13429,708Reference: Results forprevious fiscal year
ended February 28,2023

The above mentioned forecasts are determined based on information currently available to the Company andinclude potential risks and uncertainties. For a variety of reasons, actual performance may differ substantiallyfrom these projections.

9296.86

2. Condensed Quarterly Consolidated Financial Statements and Main Notes(1) Condensed Quarterly Consolidated Statement of Financial Position

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Finance lease receivables
Other financial assets
Inventories
Other current assets
Total current assets
Non-current assets
Property and store equipment
Right-of-use assets
Investment property
Goodwill
Intangible assets
Investments accounted for using equity
methodGuarantee deposits
Other financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

10Previous fiscal year
As of February 28,
2023(Millions of yen)
Current 3rd Quarter
As ofNovember 30, 2023

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

388,136
239,187
7,863
1,244
32,494
13,508682,434

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

195,883
1,065,539
46,471
52,61760,220

6,532

6,427

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

97,747
7,503
44,353
6,292
1,583,056
2,265,490

Liabilities and equity
Current liabilities
Trade and other payables
Deposits received
Borrowings
Income taxes payable
Other financial liabilities
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Borrowings
Lease liabilities
Other financial liabilities
Retirement benefit liability
Deferred tax liabilities
Provisions
Other non-current liabilities
Total non-current liabilities
Total liabilities
EquityShare capital
Capital surplus
Treasury shares
Other components of equity
Retained earnings
Total equity attributable to owners ofparentNon-controlling interests
Total equity
Total liabilities and equity

11

Previous fiscal year
As of February 28,
2023(Millions of yen)
Current 3rd Quarter
As ofNovember 30, 2023

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

261,248
217,800
65,656
8,785
407,048
69
21,282
981,892

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

74
918,185
22,415
17,056391
38,121
3,464
999,709
1,981,601

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

58,50647,058(943)
6,505
168,267

249,941

279,395

3,916
253,858
2,242,421

4,493
283,8882,265,490

(2) Condensed Quarterly Consolidated Statement of Profit and Loss and Condensed Quarterly
Consolidated Statement of Comprehensive Income
Condensed Quarterly Consolidated Statement of Profit and Loss
Previous 3rd Quarter
From March 1, 2022
to November 30, 2022
746,984(352,900)
394,084(338,727)
1,899

Gross operating revenue
Cost of sales
Operating gross profit
Selling, general and administrative expenses
Other income(Millions of yen)
Current 3rd Quarter
From March 1, 2023
to November 30, 2023
814,143(380,407)
433,735(358,453)
1,940

Other expenses(4,502)(4,612)Finance income
Finance costs
Share of profit of investments accounted forusing equity method
Profit before tax
Income taxes
Profit1,135(7,172)

1,314(7,166)

406

1,070

47,122(16,230)
30,891

67,829(21,505)
46,32430,84546
30,89145,882441
46,324308.22307.95458.46457.98

Profit attributable to
Owners of parent
Non-controlling interests
Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)12

Condensed Quarterly Consolidated Statement of Comprehensive Income
Previous 3rd Quarter
From March 1, 2022
to November 30, 2022
30,891

ProfitItems that will not be reclassified to profit or loss
Financial assets measured at fair value throughother comprehensive income(Millions of yen)
Current 3rd Quarter
From March 1, 2023
to November 30, 2023
46,32456

93

Share of other comprehensive income ofinvestments accounted for using equity
method10－

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

67

93

4,610

2,721

45

29

4,656

2,750

4,723
35,6152,844
49,16835,366249

48,588579

Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations
Share of other comprehensive income ofinvestments accounted for using equity
methodTotal of items that may be reclassified to
profit or loss
Other comprehensive income (net of tax)
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests13(3) Condensed Quarterly Consolidated Statement of Changes in Equity
Previous 3rd Quarter (From March 1, 2022 to November 30, 2022)(Millions of yen)
Equity attributable to owners of parent
Other components of equity

Share capital

Balance as of March 1, 2022

Capital surplus Treasury shares

Financial assets
Exchangemeasured at fairdifferences onvalue throughtranslation ofotherforeigncomprehensive
operations
incomeTotal

58,506

46,899(973)(1,409)

2,997

1,588

Profit

－

－

－

－

－

－

Other comprehensive income

－

－

－

67

4,453

4,520

Total comprehensive income

－

－

－

67

4,453

4,520

Purchase of treasury shares

－

－

(0)

－

－

－

Dividends

－

－

－

－

－

－

Exercise of share acquisition rights(issuance of treasury shares)

－

(24)

24

－

－

－

Share-based payment

－

59

－

－

－

－

Other

－

－

－

－

－

－

－

34

24

－

－

－

58,506

46,934(949)(1,342)

7,451

6,109

Total transactions with owners
Balance as of November 30, 2022

Equity attributable to ownersof parent

Retainedearnings

Balance as of March 1, 2022

Total

Noncontrollinginterests

Total equity

3,839

235,693

125,832

231,853

30,84530,84546

30,891

－

4,520

202

4,723

Total comprehensive income

30,84535,366249

35,615Purchase of treasury shares

－

(0)

－

(0)

ProfitOther comprehensive income

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

Exercise of share acquisition rights(issuance of treasury shares)

－

0

－

0

Share-based payment

－

59

－

59

Other

7

7

－

7

Total transactions with owners(15,003)(14,944)(2)(14,947)

Balance as of November 30, 2022

141,674

252,275

4,086

256,36114

Current 3rd Quarter (From March 1, 2023 to November 30, 2023)(Millions of yen)
Equity attributable to owners of parent
Other components of equity

Share capital Capital surplus Treasury shares

Balance as of March 1, 2023

Financial assets
measured at fairvalue throughothercomprehensive
incomeExchangedifferences ontranslation offoreign
operations

Total

58,506

46,934(948)(1,278)

5,077

3,799

Profit

－

－

－

－

－

－

Other comprehensive income

－

－

－

93

2,613

2,706

Total comprehensive income

－

－

－

93

2,613

2,706

Purchase of treasury shares

－

－

(0)

－

－

－

Dividends

－

－

－

－

－

－

Exercise of share acquisition rights(issuance of treasury shares)
Share-based payment

－

(5)

5

－

－

－

－

130

－

－

－

－

－

124

5

－

－

－

58,50647,058(943)(1,185)

7,690

6,505

Total transactions with owners
Balance as of November 30, 2023

Equity attributable to ownersof parent

Retainedearnings

Balance as of March 1, 2023
ProfitOther comprehensive income
Total comprehensive income

Total

Noncontrollinginterests

Total equity

141,650

249,941

3,916

253,858

45,88245,882441

46,324

－

2,706

137

2,844

45,882

48,588579

49,168

－

(0)

－

(0)

(19,264)(19,264)(2)(19,267)

Exercise of share acquisition rights(issuance of treasury shares)

－

0

－

0

Share-based payment

－

130

－

130

Total transactions with owners(19,264)(19,135)(2)(19,137)

Balance as of November 30, 2023

168,267

279,395

4,493

283,888

Purchase of treasury shares
Dividends

15

(4) Condensed Quarterly Consolidated Statement of Cash Flows(Millions of yen)Previous 3rd Quarter
From March 1, 2022
to November 30, 2022
Cash flows from operating activities:
Profit before tax
Depreciation and amortization
Impairment loss
Interest income
Interest expenses
Loss on retirement of non-current assets
Decrease (increase) in trade and other receivables
Increase (decrease) in trade and other payables
Increase (decrease) in deposits received
Increase (decrease) in net defined benefit liability
Net increase (decrease) in call money for banking
business
Other

Current 3rd Quarter
From March 1, 2023
to November 30, 2023

47,122
158,637
2,718
(947)
6,579
719
(36,134)
30,855
14,897510

67,829158,943
1,967
(960)
7,164
1,489
(14,911)23,288(56,394)218(1,000)133,000

167

58

Subtotal

224,125

321,693

Interest and dividends received
Interest paid
Income taxes paid

1,172
(2,871)(11,697)

1,180(3,424)(18,189)

210,729

301,259(29,157)(27,981)(9,583)(4,415)8,113(7,607)
9,713(147)(1,670)(14,427)(1,855)
3,100(11,337)
6,230(2,806)(944)(34,755)(50,021)208,220(248,603)(136,382)(15,011)21

1,321,977(1,429,963)(136,473)(19,264)1

Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period(191,754)(263,723)

2,047

1,098

(13,732)
392,996(11,386)
399,523

Cash and cash equivalents at end of period

379,264

388,136

Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchases of property and store equipment, right-of-use
assets and investment property
Purchase of intangible assets
Purchase of investments
Proceeds from sales and redemption of investments
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Purchase of long-term prepaid expenses
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from borrowings
Repayments of borrowings
Repayments of lease liabilities
Dividends paid
Other

16

(5) Notes Concerning Condensed Quarterly Consolidated Financial Statements(Going Concern Assumption)
Not Applicable.
(Significant Accounting Policies)
The significant accounting policies adopted for the Condensed Quarterly Consolidated Financial Statements
are the same as those for the Consolidated Financial Statements for the fiscal year ended February 28, 2023,
except for the following standards, which have been newly adopted.
In addition, income taxes for the third quarter ended November 30, 2023 are calculated based upon an
estimated average annual effective tax rate. The Company and certain subsidiaries have transitioned from a
consolidated taxation system to the group tax sharing system from the first quarter of the fiscal year.
The standard that the Group has adopted from the first quarter ended May 31, 2023 is as follows:Standard

IAS 12Standard name

OutlineIncome Taxes

・Clarification of accounting treatment for deferred taxes related toassets and liabilities arising from a single transaction
・Accounting and disclosure of income tax by tax laws enacted or
substantively enacted to implement Pillar Two model rules
published by the Organization for Economic Co-operation andDevelopment

Furthermore, there was no material impact on the Condensed Quarterly Consolidated Financial Statements
for the third quarter resulting from the application of the above standard.
A temporary exception has been provided from the recognition and disclosure requirements about deferred
tax assets and deferred tax liabilities related to Pillar Two model rules, which the Group has retrospectively
applied.
Consequently, the Group does not recognize deferred tax assets and deferred tax liabilities related to Pillar
Two model rules.
(Segment Information)
1. Outline of reportable segments
The Company’s reportable segments are separate components for which discrete financial information isavailable and which are subject to regular review by the board of directors in order to determine the allocationof managerial resources and evaluate financial performance.
The Group is primarily engaged in the domestic convenience store business, Seijo Ishii business,entertainment-related business, financial services business and overseas business while incorporating related
businesses and managed as a group.
Therefore, the Group aggregates its main reportable segments considering the nature of the services provided
and economic characteristics as follows: Domestic Convenience Store Business, Seijo Ishii Business,
Entertainment-related Business, Financial Services Business and Overseas Business.
Regarding Domestic Convenience Store Business, Lawson, Inc. operates a franchise system as well as
undertaking the direct management of stores in Japan as the parent company of LAWSON, NATURALLAWSON, and LAWSON STORE100. Lawson urbanworks, Inc. undertakes the direct management of
LAWSON stores mainly in Tokyo and Chiba prefectures. Lawson Minamikyushu, Inc. undertakes the direct
management of LAWSON stores mainly in Kagoshima prefecture. Lawson Store100, Inc. undertakes the direct
management of LAWSON STORE100 stores and provide management support for franchised stores. SCI, Inc.
is a functional subsidiary that comprehensively manages the business process from procurement to sales,
improving the efficiency of the entire process.
17Regarding Seijo Ishii Business, SEIJO ISHII CO., LTD. operates SEIJO ISHII supermarkets.
Regarding Entertainment-related Business, Lawson Entertainment, Inc. conducts the management and salesof concert tickets at LAWSON stores and others, music and video software products at HMV stores and others.
In addition, United Cinemas Co., Ltd. operates multiplex movie theatres.
Regarding Financial Services Business, Lawson Bank, Inc. operates a banking business.
Regarding Overseas Business, the operating company in each region develops LAWSON stores in the
People’s Republic of China, Thailand, the Philippines, and the United States of America (Hawaii).
2. Information on reportable segments
Methods of accounting for reportable segments are described in note “Significant Accounting Policies” andare consistent with the accounting policies of the Group.
The Group’s reportable segments are as follows. Segment profit represents operating gross profit less selling,
general and administrative expenses. Intersegment revenues and transactions are based on market prices.
Previous 3rd Quarter (From March 1, 2022 to November 30, 2022)(Millions of yen)
Reportable segment
Others(Note)

Domestic
Convenience
Store
Business

Seijo Ishii
Business

188,896

Total

Adjustments

Total

Entertainmentrelated Business

Financial
Services
Business

Overseas
Business

651

－

－

1,493

－

191,041－

191,041

57,56580,35542,938－52,739－233,598－

233,598

251,31164

9,160

24,127

14,608

1,574

300,846－

300,846

21,021

21

－

－

454

－

21,497－

21,497

1. Revenue fromexternalcustomers

518,795

81,09352,09824,127

69,295

1,574

746,984－

746,984

2. Intersegment
revenue ortransfer

4,922

－

1,619

1,886

－

572

9,000

(9,000)－

Total

523,717

81,09353,71826,01469,2952,146

755,985(9,000)746,984

Segment profit (loss)

42,087

9,354

4,270

2,986

(3,488)145

55,356－55,356

Revenue fromcontractswith customers
Income from
franchised stores
Net sales from
Companyoperated stores
Other
Other revenue
Revenue fromexternal customers(Note) The business segments within the “Others” category that do not fall under the main reportable segments
include the Consulting Business, etc.

18Current 3rd Quarter (From March 1, 2023 to November 30, 2023)(Millions of yen)
Reportable segment
Others(Note)

Domestic
Convenience
Store
Business

Seijo Ishii
Business

204,460

Total

Adjustments

Total

Entertainmentrelated Business

Financial
Services
Business

Overseas
Business

638

－

－

3,226

－

208,326－

208,326

65,48881,191

48,569－65,759－261,010－

261,010265,250

55

10,141

24,425

18,633

1,476

319,982－

319,982

24,303

16

－

－

504

－

24,824－

24,824

1. Revenue fromexternalcustomers

559,503

81,90258,711

24,425

88,124

1,476

814,143－

814,143

2. Intersegment
revenue ortransfer

5,931

－

2,106

2,342

－

538

10,918(10,918)－

Total

565,434

81,90260,817

26,767

88,1242,014

825,062(10,918)

814,143

Segment profit

56,307

8,716

5,316

2,385

2,511

43

75,281－75,281

Revenue fromcontractswith customers
Income from
franchised stores
Net sales from
Companyoperated stores
Other
Other revenue
Revenue fromexternal customers(Note) The business segments within the “Others” category that do not fall under the main reportable segments
include the Consulting Business, etc.

19