Flash Report on the Consolidated Financial Results
for the Fiscal Year Ended February 28, 2021
April 8, 2021
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, Senior Vice President, Financial Administration Division Director
Tel.: +81-3-5435-2773
Scheduled date for the ordinary general meeting of shareholders: May 25, 2021
Scheduled date for submission of annual securities report: May 26, 2021
Scheduled date for payment of dividend: May 26, 2021
Supplementary materials for annual financial results: Yes
Holding of presentation of annual results: Yes (for institutional investors and analysts)(Amounts less than one million yen are truncated)
1. Consolidated operating results for 2020 fiscal year (from March 1, 2020 to February 28, 2021)(1) Consolidated operating results (cumulative)
Note: Percentages represent increases (decreases) compared with the previous fiscal year.

For the fiscal year ended
February 28, 2021
February 29, 2020

Operating income

Ordinary income

Millionsof yen666,001
730,236

Millionsof yen40,876
62,943

Millionsof yen37,61056,346

Note: Comprehensive income:For the fiscal year ended
February 28, 2021
February 29, 2020

Profitattributable toowners of parent
Millions%%of yen(33.3)
8,689(56.8)(2.3)
20,108(21.4)

Gross operating
revenue
%
(8.8)
4.2

%
(35.1)
3.6

Fiscal year ended February 28, 2021
Fiscal year ended February 29, 2020

10,046 million yen
17,586 million yen

Profit per
share

Dilutedprofit per
share

Return on
equityRatio of ordinary
income to total
assetsYen
86.84
200.95Yen
86.78
200.84

%
3.2
7.3

%
2.8
4.2

Reference: Share of profit of entities accounted for using equity method:
Fiscal year ended February 28, 2021
Fiscal year ended February 29, 2020

(42.9)%(32.8)%

Ratio ofoperating income togross operating
revenue%
6.1
8.6

332 million yen
571 million yen(2) Consolidated financial position

Millions of yen

Shareholders’equity ratio%

Net assets per
share
Yen

1,365,430

272,93119.6

2,674.53

1,357,732

275,34720.0

2,707.08

Total assets

Net assets

Millions of yen

February 28, 2021
February 29, 2020

As ofReference: Shareholders’ equity:

As of February 28, 2021
As of February 29, 2020

267,632 million yen
270,877 million yen

(3) Consolidated cash flows
Net cash providedby (used in)operating activities
For the fiscal year ended
Millions of yen
February 28, 2021
227,954
February 29, 2020
202,703

Net cash providedby (used in)investing activities
Millions of yen(29,983)(49,074)

Net cash providedby (used in)financing activities
Millions of yen(140,642)(163,910)

Cash and cash
equivalents at endof period
Millions of yen
401,136
343,583

2. Dividends
Annual dividends per share
1Q

1H

3Q

Year-end

Total

Yen

Yen

Yen

Yen

Yen

2019 fiscal year

－

75.00

－

75.00

2020 fiscal year
2021 fiscal year
(forecast)

－

75.00

－

－

75.00

－

Total
dividends
for the year

Payoutratio

Ratio ofdividends toshareholders’equity%%150.00Millions ofyen
15,009

74.6

5.5

75.00

150.0015,010

172.7

5.6

75.00

150.00111.2

3. Forecast of consolidated operating results for 2021 fiscal year (from March 1, 2021 to February 28, 2022)
Note: Percentages represent increases (decreases) compared with the previous fiscal year.

1H of 2021 fiscal year
2021 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 yen358,000 10.9
26,500 58.8
24,500 64.8
13,000 293.0
129.91
728,000
9.3
50,000 22.3
45,000 19.6
13,50055.4
134.904. Notes(1) Change in significant subsidiaries during the fiscal year (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 or restatements
1. Changes in accounting policies associated with revision in accounting standards: None
2. Changes in accounting policies other than 1. above: None
3. Changes in accounting estimates: None
4. Retrospective restatements: None
(3) Number of shares outstanding (common stock)
1. Number of shares outstanding at the end of year (including treasury shares)
As of February 28, 2021:
100,300,000
As of February 29, 2020:

100,300,000

2. Number of treasury shares at the end of year
As of February 28, 2021:
232,954

As of February 29, 2020:

237,762

3. Average number of shares during the year
As of February 28, 2021:
100,065,840

As of February 29, 2020:

100,061,451

Reference: Non-consolidated operating results for 2020 fiscal year (from March 1, 2020 to February 28, 2021)
Non-consolidated operating results (cumulative)
Note: Percentages represent increases (decreases) compared with the previous fiscal year.
Gross operating
revenue

OperatingincomeOrdinary income

Millions
Millions
Millions%%%of yenof yenof yenFebruary 28, 2021
354,825(9.2) 26,150(41.5) 33,700(26.7)
February 29, 2020
390,811
1.3
44,725(2.2) 45,962(10.7)
Note: The Flash Report on the Consolidated Financial Results is not subject to audit.
For the fiscal year ended

Profitattributable toowners of parent
Millions%of yen15,894
2.6
15,486(50.0)

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, pleaserefer to “1. Overview of Operating Results, (4) Future Outlook” on page 12.

Contents

1. Overview of Operating Results ............................................................................................................

2(1) Overview of Operating Results for the Fiscal Year under Review ................................................

2(2) Profit and Loss ...............................................................................................................................

11(3) Overview of Financial Position for the Fiscal Year under Review ................................................

11(4) Future Outlook ...............................................................................................................................

12

2. Basic Approach to Selection of Accounting Standards ........................................................................

12

3. Consolidated Financial Statements and Main Notes ............................................................................

13(1) Consolidated Balance Sheet ...........................................................................................................

13(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ........

15

Consolidated Statement of Income .................................................................................................

15

Consolidated Statement of Comprehensive Income .......................................................................

16(3) Consolidated Statement of Changes in Equity ...............................................................................

17(4) Consolidated Statement of Cash Flows ..........................................................................................

19(5) Notes to Consolidated Financial Statements ..................................................................................

21(Going Concern Assumption) .........................................................................................................

21(Accounting Policies for the Preparation of Consolidated Financial Statements) ..........................

21(Unapplied Accounting Standards, etc.) ...............................................................................................................

24(Changes in Presentation) ...............................................................................................................

25(Notes to Consolidated Balance Sheet) ..........................................................................................

26(Notes to Consolidated Statement of Income) ................................................................................

27(Notes to Consolidated Statement of Comprehensive Income) ......................................................

29(Notes to Consolidated Statement of Changes in Equity) ..............................................................

30(Notes to Consolidated Statement of Cash Flows) .........................................................................

32(Segment Information) ...................................................................................................................

33(Per Share Information) ..................................................................................................................

39(Significant Subsequent Events) .....................................................................................................

391

1. Overview of Operating Results(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year under review, or fiscal 2020 ended February 28, 2021, the novel coronavirus disease(COVID-19) spread across the world. In Japan, the first state of emergency was declared in April 2020. This
had an immense impact on the nation’s economic and social activities and the daily lives of its people.
Although the economy showed a gradual recovery trend after the state of emergency was lifted in May 2020,
the number of new infections increased again in November 2020, resulting in the second state of emergency
being declared in January 2021 for 11 prefectures including Tokyo. This dampened the recovery in economic
and social activities and affected people’s daily lives. Meanwhile, changes in consumer lifestyles andpurchasing behavior have progressed, such as remote work becoming prevalent. Such changes have also
affected the business of the Lawson Group, significantly reducing its net sales, but the Group continues tostrive to address the changes by strengthening its merchandise assortment in line with the shifting customer
demands, among other measures as strengthening its merchandise assortment, expanding its delivery service,
and enhancing its smartphone-based sales campaign initiatives in line with the shifting customer demands.
As a result, for fiscal 2020 on a consolidated basis, gross operating revenue decreased to 666,001 million
yen (down 8.8% from previous fiscal year), operating income decreased to 40,876 million yen (down 35.1%
from previous fiscal year) and ordinary income decreased to 37,610 million yen (down 33.3% from previous
fiscal year). Profit attributable to owners of parent decreased to 8,689 million yen (down 56.8% from previous
fiscal year).
Against such a backdrop, based on our belief that as a company that provides essential and life-sustaining
infrastructure our most important mission is to meet the needs of local people and stay close to our customers,
our headquarters and franchise stores have made unified efforts toward making our stores the “Hub of
refreshment in every community” under our Group philosophy of “Creating Happiness and Harmony in Our
Communities.”
Furthermore, we also focused on improving our group-wide internal control system and addressing
operating risks based on the 2020 Basic Policy for Improvement of Internal Control Systems. We willcontinue promoting internal control going forward.
Operating results by business segment were as follows.
It should be noted that new reportable segments have been applied since fiscal 2020 and that thecomparison and analysis of figures for the fiscal year from March 1, 2020 to February 28, 2021 were basedon the new reportable segments.
(Domestic Convenience Store Business)
After the state of emergency was lifted in May 2020, recovery trends were seen in the number of customers
and sales. However, COVID-19 spread again after November 2020, resulting in the declaration of Japan’s
second state of emergency in January 2021, which had an immense impact on the number of customers. The
number of new COVID-19 cases started decreasing again in February 2021, leading to a recovery trend incustomer behavior.
As precautionary store measures against COVID-19, we continued to have transparent plastic barriers
installed at cash registers; ensured social distancing; and made sure employees practiced rigorous handwashing and gargling, disinfected their hands with alcohol-based disinfectant, and wore face masks, giving2

top priority to the safety of customers and store employees. We are also promoting self-checkout systems,
which allow us to reduce interpersonal contact at checkout.
In store operations, we are striving to establish LAWSON stores as convenience stores endorsed by all
our customers. To this end, we are continuing to implement 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 tofurther reinforce our product lineup, while rigorously working to offer thoughtful customer service at ourstores and ensure environmental friendliness by reducing food waste, the use of plastics and CO2 emissions,etc.
[Store Operations]
In store operations, we continued to focus on reinforcing adherence to the Three Essential Practices, whichemphasizes (1) serving customers courteously; (2) offering a merchandise assortment focused on basic itemswith high demand; and (3) keeping our stores and communities clean. Furthermore, we kept up our initiatives
to increase the profits made by franchise stores, including helping them streamline their store operation andreduce costs associated with food waste and utility expenses. Meanwhile, we also focused on expanding ourmerchandise assortment of items subject to heightened demand amid the COVID-19 crisis in our efforts to
respond to customer needs and increase sales.
[Merchandising and Service Strategies]
Net sales decreased significantly owing to a decline in the number of customers, but sales surged in fresh
vegetables, frozen foods, and daily delivered foods, among others, as a result of expanding the merchandise
assortment in response to the rise in home cooking instead of dining out. In the spring of 2020, we divided
our Lawson Select private brand products into two series, “L basic” and “L marche.” We are working todevelop new products for the private brands with newly designed logos and packaging, focusing on readymade dishes that are high in demand.
We will continue creating stores tailored to customers’ changing lifestyles and needs amid the spread of
COVID-19.
In the rice range, we revamped our “Kinshari Onigiri Rice Ball” series in November 2020 by blending
different varieties of brand-name rice—produced in the prefectures of Yamagata, Ishikawa, Toyama, orGifu—for different geographic markets. High value-added products in the series such as those featuring rare
and seasonal ingredients were launched, enjoying high popularity.
In the cooked noodles range, we launched the “RAMEN YOKOCHO” series of microwavable noodle
products in October 2020 under the supervision of popular ramen noodle eateries nationwide, and they
enjoyed robust sales.
In the dessert range, our original dessert products contributed to sales. Specifically, the “Uchi Café
Spécialité” series, our newly released “reward dessert” products that bring out the pure tastiness of theingredients, was well received by customers, along with our regular products including our BASCHEE
Basque-style cheesecake as well as our novel dessert products that we are continuing to develop.
The Machikado Chubo in-store kitchen service offering freshly prepared boxed meals is being received
well, partly owing to reduced opportunities to go out amid the COVID-19 crisis.
A range of promotional campaigns featuring popular contents designed to be fun for a wide variety ofcustomers proved effective in driving sales of related products.
In food delivery service, for which needs have been growing owing to the COVID-19 crisis, we started
3

offering delivery service through foodpanda in November 2020 in addition to Uber Eats. As a result, thecombined number of stores listed on food delivery services reached 1,472 in 27 prefectures as of February
28, 2021. In addition, Uber Eats started delivering over-the-counter (OTC) drugs sold at three LAWSON
stores in Tokyo as the first OTC drugs included in Uber Eats’ lineup in Japan.
The SMARI service, our non-face-to-face package shipment service using SMARI Box, which had been
designed exclusively for the service, was expanded into the Chubu region in November 2020, with 250 storesin Aichi Prefecture introducing the service. As of the end of February 2021, the service is offered at 2,850
stores in the Tokyo, Nagoya and Osaka metropolitan areas.
[Breakdown of Sales by Merchandise Category at Chain Stores in Domestic Convenience Store Business]
Fiscal year

Previous fiscal year

Current fiscal year

From March 1, 2019

From March 1, 2020

To February 29, 2020

to February 28, 2021

Sales

Percentage

Sales

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

1,237,391

52.8

1,156,760

53.4

93.5

Fast foods

546,54223.3

462,497

21.3

84.6

Daily delivered foods

351,44215.0

343,772

15.9

97.8

Nonfood products

209,6248.9

202,7889.4

96.7

2,345,000

100.0

2,165,818

100.0

92.4

Product group
Processed foods

Total

YoY(%)[Store Development]
In opening new stores, the Group continued to focus on developing profitable stores.

During the fourth quarter under review, the total number of LAWSON, NATURAL LAWSON and
LAWSON STORE100 stores opened in Japan stood at 373 stores. Meanwhile, a total of 341 stores in
the country were closed. As of the end of February 2021, the total number of domestic stores was
14,476.*
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
healthcare-oriented LAWSON stores that offer over-the-counter pharmaceuticals and prescription drugs, aswell as a wider assortment of cosmetics and daily necessities than conventional LAWSON stores. The
number of stores offering non-prescription drugs has reached 250 stores (includes 53 pharmacy LAWSON
stores equipped with drug-dispensing pharmacies) as of the end of February 2021. Moreover, the number ofstores offering nursing care consultation services has reached 23 as of the end of February 2021. Furthermore,
we have also been expanding our chain of “in-hospital LAWSON stores,” which feature strengthened focus
on goods for inpatients and medical, sanitary, and nursing supplies in addition to merchandise and services
offered at standard convenience stores. The number of such stores has reached 335 as of the end of February
2021. Building on our expertise developed through operation of in-hospital LAWSON stores, we willcontinue to support the lives of all people interacting 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 selectingredients as well as products produced in collaboration with renowned brand names. Meanwhile, our
LAWSON STORE100 stores, which are mini supermarkets in the size of a convenience store, aim to sustain
4

the daily lives of consumers by offering fresh, high-quality, safe, and reliable fruits and vegetables. The
stores are visited by customers of all ages including children and the elderly, and particularly single people
and homemakers. As of the end of February 2021, we operate 143 NATURAL LAWSON stores and 679
LAWSON STORE100 stores.
* The numbers of store openings and closings and total number of stores in Japan include stores operatedby Lawson, Inc. and equity-method affiliates, Lawson Kochi, Inc., Lawson Minamikyushu, Inc. and
Lawson Okinawa, Inc.

[Change in the Total Number of Domestic Stores]
Total stores as of

Change during

Total stores as ofFebruary 29, 2020

periodFebruary 28, 2021

LAWSON

13,55797

13,654

NATURAL LAWSON

145

(2)

143

LAWSON STORE100

742

(63)

679

14,44432

14,476

Total[Number of LAWSON stores by prefecture (As of February 28, 2021)]
Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Numberof stores

Prefecture

Numberof stores

Hokkaido679

Ibaraki

226

Kyoto

321

Ehime

212

Aomori

278

Tokyo

1,692

Shiga

155

Tokushima

135

Akita

182

Kanagawa

1,076

Nara

137

Kochi

139

Iwate

182

Shizuoka

281

Wakayama

152

Fukuoka515

Miyagi

255

Yamanashi

137

Osaka

1,113

Saga

75

Yamagata

113

Nagano

174

Hyogo

663

Nagasaki

112

Fukushima

171

Aichi

723

Okayama

211

Oita

193

Niigata

230

Gifu

183

Hiroshima

244

Kumamoto

160

Tochigi

199

Mie

137

Yamaguchi

120

Miyazaki

111

Gunma

241

Ishikawa

104

Tottori

136

Kagoshima

199

Saitama695

Toyama183

Shimane142

Okinawa

245

Chiba

604

Fukui

109

Kagawa132

Total(domestic)

14,476(Note) These figures include stores operated by Lawson, Inc. and equity-method affiliates, Lawson Kochi,Inc., Lawson Minamikyushu, Inc. and Lawson Okinawa, Inc.
[Other]On September 10, 2020, Lawson, Inc. entered into a joint business agreement with POPLAR Co., Ltd. toconvert and operate some of the stores under the POPLAR, SEIKATSU SAIKA, and THREE EIGHT brands
into LAWSON POPLAR or LAWSON brand stores.
Based on the content of the “Fact-Finding Survey Report on Transactions between the Headquarters ofConvenience Stores (Franchisers) and their Franchisees” (September 2020) and the “Fact-Finding Survey
on Transactions between the Headquarters of Convenience Stores (Franchisers) and their Franchisees5(Overall Questionnaire Results)” compiled by the Japan Fair Trade Commission, Lawson, Inc. implemented
a self-inspection program, and formulated and announced an improvement plan on November 30, 2020.
As part of our measures to enhance the financial stability of our franchise stores, we are proceeding witha range of short-, medium-, and long-term initiatives to support them with multiple store ownership, store
manager development, and measures for new franchise owners. In addition, we have been providing financial
support to stores facing considerable sales declines due to the spread of COVID-19, and will proceed withfurther measures to increase their sales and profits under strong partnerships with them.
We jointly develop products with regional business operators nationwide that have been affected by
COVID-19. Through such initiatives, we aim to support local businesses and producers through our
LAWSON stores.
As a result, Domestic Convenience Store Business posted gross operating revenue of 422,501 million yen(down 10.4% from previous fiscal year) and segment profit of 28,739 million yen (down 39.0% fromprevious fiscal year).
(Seijo Ishii Business)
At stores of Seijo Ishii, a high-end supermarket chain offering quality foods, we provide our customers
with well-selected, safe, and reliable foods. The number of directly operated Seijo Ishii stores reached 164
as of the end of February 2021. Demand at supermarkets remained high amid the spread of COVID-19, anddemand for perishables including fruit and vegetables as well as meat and fish grew markedly, especially atstreet-side stores. In addition, Seijo Ishii’s original ready-made dishes that had always been popular among
many customers were also in high demand, contributing to pushing up overall sales significantly.
By continuing to leverage the company’s strengths including its product development expertise, knowhow acquired as a manufacturing retailer, and retailing techniques, we will endeavor to enhance the brandcapacity of Seijo Ishii.
As a result, Seijo Ishii Business posted gross operating revenue of 103,037 million yen (up 10.7% fromprevious fiscal year) and segment profit of 10,329 million yen (up 23.7% from previous fiscal year).
(Entertainment-related Business)
With regard to our Entertainment-related Business, the ticketing business of Lawson Entertainment, Inc.,
we experienced a precipitous drop in ticket transaction value as a result of event cancellations andpostponements owing to the spread of COVID-19. Hosting of events continues to be restricted, but we are
striving to expand ticket transactions for online live streaming events featuring prominent artists and for
leisure facilities and sports events that have reopened/resumed, as well as boosting our e-commerce business,for which demand has risen due to voluntary stay-at-home efforts.
In our product sales business, a total of 57 stores are in operation nationwide as of February 28, 2021,
including our mainstay HMV stores dedicated to selling music and video software, HMV&BOOKS, whichmarkets books, CDs and DVDs, and HMV record shop stores specializing in analog records.

United Cinemas Co., Ltd., an operator of cinema complexes, had to close all its theaters when thestate of emergency was declared in April 2020, and operated with limits imposed on audience sizes evenafter the state of emergency was lifted. Currently, however, it is executing normal operations, with the
exception of some regions. Audience numbers continued to grow after popular films were launched in
October 2020, resulting in a recovery trend in sales.
6As of February 28, 2021, all 43 sites nationwide offering 389 screens including those operated oncommission are in operation while taking rigorous measures to protect their customers and employees from
infection.
As a result, Entertainment-related Business posted gross operating revenue of 57,909 million yen (down
32.1% from previous fiscal year) and segment loss of 297 million yen (segment profit was 5,313 million yen
in 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.
As of the end of February 2021, the number of ATMs installed nationwide reached 13,458 (up 105 fromprevious fiscal year), with each ATM used 43.1 times a day on average, decreasing as a result of the decline
in the number of customers visiting LAWSON stores due to the spread of COVID-19. The total number ofour financial institution partners was 129 nationwide (up 5 from previous fiscal year), including online banks.

By harnessing Lawson Bank’s ATMs and their transaction network, we are continuing with ourefforts to enhance the bank’s functions and convenience and to expand our service partners. In June
2020, we started offering an “instant bank account settlement service,” in which money can bewithdrawn from a user’s bank account to top up a mobile payment app. Furthermore, other new services
have been launched including the “ATM charge service,” where cash can be charged to the user’s
mobile payment app at an ATM; the “smartphone ATM service,” which allows the user to deposit andwithdraw cash at an ATM with the bank’s smartphone app without using the user’s bank card; and the“ATM deposit service for business operators,” which allows store revenues to be deposited to a Lawson
Bank account at an ATM by using a dedicated deposit card.
During the fourth quarter, Lawson Bank entered into partnerships with overseas remittance service
providers Unidos Co., Ltd. and SBI Remit Co., Ltd., allowing their overseas remittance cards to be usedat its ATMs.
In addition, the LAWSON Ponta Plus credit card issued by Lawson Bank allows cardholders to earn
additional Ponta points when making purchases with their card at LAWSON, NATURAL LAWSON,
and LAWSON STORE100 stores to encourage the use of the card. Furthermore, the Ponta point reward
rate was raised in November 2020 to facilitate point accumulation when using the credit card at otherstores. By implementing promotional campaigns and soliciting new cardholders at LAWSON stores,
we are also trying to expand its membership.
* “Up/down from previous fiscal year-end” represents a comparison with the figure as of the end of February 2020.

As a result, Financial Services Business posted gross operating revenue of 31,573 million yen (down
7.4% from previous fiscal year) and segment profit of 1,753 million yen (down 43.2% from previous
fiscal year).
(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 advanced into Haikou, Hainan province in October 2020. The
7number of LAWSON stores in the entire country reached 3,344 as of the end of February 2021. In
response to the spread of COVID-19, we closed some stores or shortened their opening hours at the
beginning of the fiscal year under review, but as normal operations were resumed relatively earlier thanin Japan and other regions, net sales have generally recovered.
In other regions, apart from some stores that have suspended their operations in response to the spread of
COVID-19, all other stores are carrying out normal operations, with rigorous infection prevention measuresin place, in order to sustain the daily lives of customer[Distribution of LAWSON Brand Stores Overseas by Region]
Country/Region

Number of stores

ChangeNumber of stores(As of February 29,

during fiscal(As of February 28,

2020)

year

2021)

China Shanghai and surrounding area

1,574

252

1,826

China

Chongqing

235

106

341

China

Dalian

192

57

249

China

Beijing and surrounding area

153

62

215

China

Shenyang

26

52

78

China Wuhan

401

40

441

China Hefei

50

56

106

China

Changsha

15

50

65

China

Haikou－23

23

Thailand

133

7

140

Indonesia

72

(4)

68

Philippines

65

2

67

2

－

2

2,918

703

3,621

United States of America

HawaiiTotal

As a result, Overseas Business posted gross operating revenue of 61,356 million yen (up 9.2% fromprevious fiscal year) and segment profit of 809 million yen (segment loss was 1,005 million yen in previous
fiscal year).
(Measures to pursue Sustainable Development Goals (SDGs))
With the aim of achieving a sustainable society through Lawson’s business activities based on our
corporate philosophy, “Creating Happiness and Harmony in Our Communities,” we established the SDGs
Committee effective March 1, 2019. We are making Group-wide efforts led by our SDGs Committee to
conduct individual initiatives that solve social issues through our business activities.
Specifically, we identified issues having significant impacts on the environment, society and economy
across our business activities including our value chains, identified social issues that should be prioritized,
and uphold them as our six material issues (materiality).

8

“6 Material Issues”
1. Providing safety/security-oriented overwhelmingly high value-added products and services friendly tosociety and the environment
2. Supporting health promotion for all people through products and stores
3. Providing comfortable work environment leading to job satisfaction
4. Supporting women, senior people as well as children’s growth
5. Coexisting synergistically with communities by serving as part of social infrastructure
6. Sustainable environment preservation activities toward carbon-free society
We are especially making focused efforts on addressing our sixth material issue, “sustainable environment
preservation activities toward carbon-free society, by setting social and environmental key performanceindicators (KPIs) as Goals for 2030 in three areas: (1) reducing food waste; (2) reducing plastic use (forcontainers, packaging and shopping bags); and (3) reducing CO 2 emissions. Furthermore, toward Lawson’s
Vision 2050, we are taking on difficult challenges to achieve high goals so that we can create a carbon-freesociety and contribute more to the ideal world that the SDGs aim to realize. To fulfill Lawson’s Vision 2050,
we are looking back on what we have done so far and examining and discussing what we should do now tosteadily proceed with our material issues and KPIs for 2030.

Issues

KPIs for 2030

KPIs for 2050

Reducing food waste

Reduce by 50% over 2018

Reduce by 100%

Reduce by 30% over 2017
Reducing plastic use(for containers and packaging)(50% of materials used for(100% of materials used for

Lawson’s original productLawson’s original productcontainers and packaging arecontainers and packaging areeco-friendly)

eco-friendly)

Reducing plastic use

Plastic shopping bags

（Plastic shopping bags）

Reduce by 100%

Reducing CO2 emissions

CO2 emissions per store
Reduce by 30% over 2013―

Reduce by 100%

To reduce food waste, we optimize the number of purchases, offer discounts to sell out all stock, and reduce
unsold leftovers by selling special feature items on a reservation basis. Meanwhile, we take leftover foodproducts to recycling plants to have them recycled into pig and chicken feed or fertilizers for growing
vegetables. Oil waste is also recycled into nutritional additives for feedstuffs and biodiesel.
To reduce plastic use, we have replaced the plastic cups used for iced coffee and café latte offered at“MACHI café” with paper cups and adopted lids with openings to eliminate the need for straws. We also
9

started charging fees for plastic shopping bags in response to the mandatory surcharge implemented
nationwide from July 2020, and now use plastic bags with a mix of 30% plant-derived materials. As a resultof these measures, the percentage of Lawson customers declining single-use plastic shopping bags is currently
74.9% as of the end of February 2021.
To prevent global warming and reduce electricity consumption at stores, we have been installingchlorofluorocarbon (CFC)-free (CO2 refrigerant) refrigerator/freezer systems. The number of stores equippedwith such systems reached approximately 4,200 as of the end of February 2021, up 500 stores from the endof the previous fiscal year. Furthermore, Lawson, Inc. endorsed the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD) in April 2020. To combat worsening climate change issues,
we have analyzed climate-related risks and opportunities and made our first disclosure on our official website
in December 2020. We will further implement scenario analysis on major transition risks and physical risks,
identify their impact on our business strategies, examine measures to take, and endeavor to proactively
disclose information.
On March 1, 2021, the position of chief sustainability officer (CSO) was established and assumed by thepresident and CEO, representative director. We intend to further strengthen our initiatives under the new
structure.
We also continued with our scholarship program for children from single-parent families, selecting 400
students to receive scholarships in fiscal 2020. Since August 2019, Lawson has periodically donated originaldessert products and processed foods that missed their store delivery deadlines (but were still well within
their best-before dates) to the Japan Food Bank Promotion Group and Kodomo Takushoku Oendan, a charity
organization that delivers food to children. The donated products are delivered to various bodies across Japan,
which then provide them to families who need food aid, children’s cafeterias, orphanages, facilities for people
with a disability, etc. In fiscal 2020, we donated a total of some 270,000 items (about 30 tons) of food products,
including Lawson’s original items and national-label products developed exclusively for Lawson.
While working to take protective measures against the spread of COVID-19 at our stores, we have also
conducted various initiatives to support people who are forced to persevere amid difficult situations in their
day-to-day lives. In March 2020, in response to a request, we distributed free rice balls to after-school
childcare centers in 47 prefectures nationwide as a way to supplement children’s lunches during the temporary
school closure. Under the three-day program, 584,983 rice balls were delivered to 307,332 children at a totalof 7,163 facilities. In addition, for children with limited space to play during the stay-home period, LAWSON
stores helped them have fun at home by offering free printouts of coloring sheets produced using
multifunction copiers at our stores from March to April 2020. Furthermore, we developed food products using
milk intended for school lunches and sea bream produced in Ehime Prefecture, consumption of which
decreased due to the COVID-19 crisis, to support local producers across the nation.

10

(2) Profit and Loss
In terms of operating results for the fiscal year, gross operating revenue increased to 666,001 million yen(down 8.8% from previous fiscal year), operating income totaled 40,876 million yen (down 35.1% fromprevious fiscal year), and ordinary income amounted to 37,610 million yen (down 33.3% from previous fiscal
year). Profit attributable to owners of parent was 8,689 million yen (down 56.8% from previous fiscal year).
(3) Overview of Financial Position for the Fiscal Year under Review① Total assets, total liabilities, total net assets analysis
Current assets increased by 54,113 million yen from the end of the previous fiscal year to690,811 million yen, mainly reflecting an increase of 58,997 million yen in cash and deposits
and a decrease of 4,283 million yen in current assets-other due to the movement in call loans
for banking business. Non-current assets decreased by 46,416 million yen from the end of theprevious fiscal year to 674,618 million yen, mainly reflecting decreases of 25,297 million yen
in property and store equipment, 10,656 million yen in intangible assets and 10,461 million
yen in investments and other assets such as guarantee deposits. Consequently, total assets
increased by 7,697 million yen from the end of the previous fiscal year to 1,365,430 million yen.
Current liabilities increased by 205,791 million yen from the end of the previous fiscal year
to 767,754 million yen, mainly reflecting increases of 100,000 million yen in current portion of
long-term loans payable, 60,979 million yen in current liabilities-other due to the movement incall money for banking business, and 53,014 million yen in deposits received. Non-current
liabilities decreased by 195,678 million yen from the end of the previous fiscal year to 324,743
million yen, mainly reflecting a decrease of 180,000 million yen in long-term loans payable.
Consequently, total liabilities increased by 10,113 million yen from the end of the previous
fiscal year to 1,092,498 million yen.
Net assets decreased by 2,415 million yen from the end of the previous fiscal year to 272,931 million yen,mainly reflecting a decrease of 6,582 million yen in retained earnings and an increase of 1,889 million yen incapital surplus. Consequently, shareholders’ equity ratio was 19.6%, down from 20.0% as of the end of theprevious fiscal year.
② Cash flows during fiscal year 2020

Cash and cash equivalents at February 28, 2021 increased by 57,553 million yen from the end of theprevious fiscal year to 401,136 million yen.
Net cash provided by operating activities was 227,954 million yen, an increase of 25,250 million yen fromthe previous fiscal year, mainly because of an increase (decrease) in accounts receivable-other, an increase(decrease) in deposits received and a net decrease (increase) in notes and accounts payable-trade.
Net cash used in investing activities was (29,983) million yen, a decrease of 19,090 million yen from theprevious fiscal year, mainly because of a decrease in purchase of property and store equipment, an increaseof proceeds from sales of investment securities and a decrease of payments for guarantee deposits.
Net cash used by financing activities was (140,642) million yen, a decrease of 23,268 million yen from theprevious fiscal year, mainly because of a net increase (decrease) in short-term loans payable, a decrease inproceeds from long-term loans payable and an increase in repayments of long-term loans payable.

11

(Reference) Trends in cash flow indicators
2018 fiscal year

2019 fiscal year

2020 fiscal year

Shareholders’ equity ratio (%)

20.6

20.0

19.6

Shareholders’ equity ratio on market value basis (%)

50.3

42.2

36.5

Interest-bearing debt/cash flow ratio (years)

4.7

2.6

1.9

Interest coverage ratio (times)

46.4

50.6

62.3

(Note) Shareholders’ equity ratio: Shareholders’ equity/Total assets
Shareholders’ equity ratio on market value basis: Market capitalization/Total assets
Interest-bearing debt/cash flow ratio: Interest-bearing debt/Cash flow provided by operating activities
Interest coverage ratio: Cash flow provided by operating activities/Interest expense
1. All indices are calculated using consolidated financial figures.
2. Market capitalization is calculated by multiply closing share price at the end of fiscal year with the numberof shares outstanding at the end of fiscal year (excluding treasury shares)
3. The figure for net cash provided by operating activities in the consolidated statements of cash flows isused as cash flow provided by operating activities. Interest-bearing debt refers to the sum of all liabilities
in the consolidated balance sheets on which interest is paid. The figure for interest paid in the consolidated
statements of cash flows is used as interest expense.
(4) Future Outlook
Outlook for the next fiscal year (2021 fiscal year ending February 28, 2022)
1H of 2021 fiscal year

2021 fiscal year

Forecast (Millions of yen)

YoY (%)

Forecast (Millions of yen)

YoY (%)

Gross operating revenue

358,000

110.9

728,000

109.3

Operating income

26,500158.8

50,000122.3

Ordinary income

24,500164.8

45,000119.6

Profit attributable toowners of parent

13,000393.0

13,500155.4

2. Basic Approach to Selection of Accounting Standards
The Group applies Japanese generally accepted accounting principles, and it has no plan to apply
International Financial Reporting Standards (IFRS) for the time being. The Group intends to respond
appropriately to the application of the IFRS by considering the situation prevailing in Japan and overseas.

12

3. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheet
As of February 29, 2020 and February 28, 2021
Previous fiscal year
As of February 29,
2020
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
Land
Leased assets-net
Construction in progress
Other-net
Total property and store equipment
Intangible assets:
Software
Goodwill
Trademark right
Other
Total intangible assets
Investments and other assets:
Investment securities
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

13(Millions of yen)
Current fiscal year
As of February 28,
2021

343,587
47,366
17,876
20,985
159,12247,802(42)636,697

402,584
46,385
16,621
20,657161,062
43,519(20)
690,811201,526
20,093
8,913
146,235
1,825
14,343392,938

191,977
19,044
8,468
131,779
1,818
14,551
367,640

45,151
42,381
8,849
680
97,06339,08838,2158,349
752
86,40828,66542,488107,193
34,37818,938(630)
231,033
721,035
1,357,732

27,624
40,621103,030
33,484
16,474(663)
220,571674,618
1,365,430

Previous fiscal year
As of February 29,
2020
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 adjustments
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

14(Millions of yen)
Current fiscal year
As of February 28,
2021

129,397
39,850－45,61094,848
7,915
193,096
4,667
46,577561,963

127,486
42,320100,000
44,58490,798
4,078
246,110
4,818
107,557
767,754

310,000
136,665521

130,000
121,491
485

282

277

16,24535,335
21,370520,421
1,082,385

16,27835,694
20,516
324,743
1,092,498

58,50644,605
165,081(1,011)
267,181

58,50646,494
158,498(991)
262,508

1,496
(207)
3,341
(934)
3,695
255
4,214
275,347
1,357,732

1,782
(207)
3,684
(134)
5,123
333
4,965
272,931
1,365,430

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
For the fiscal years ended February 29, 2020 and February 28, 2021

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
Dividend income
Share of profit of entities accounted for using equity
methodCompensation income
Employment adjustment subsidy due to novel
coronavirus
disease
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Loss on cancellation of leases
Expense due to system failure
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
Loss on novel coronavirus disease
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

15

Previous fiscal year
From March 1, 2019
to February 29, 2020
730,236
302,843
205,746
97,097314,260
113,132
427,393
524,490
461,547
62,943(Millions of yen)
Current fiscal year
From March 1, 2020
to February 28, 2021
666,001
275,945
188,441
87,503
288,480
101,576１０１1,000
101,576
390,056
477,559
436,682
40,876

651
70

729
403

571

332

680
―
1,719
3,692

490
793
1,794
4,544

4,006
3,675
632
1,974
10,28956,346

3,678
2,065
828
1,238
7,810
37,610

164
164

6,232
6,232

6,120
18,722―
1,348
26,19130,31912,814(2,563)
10,25020,068(39)
20,1083,213
16,635
3,607
2,158
25,613
18,230
9,197
378
9,576
8,653
(36)
8,689

Consolidated Statement of Comprehensive Income
For the fiscal years ended February 29, 2020 and February 28, 2021
(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

16

Previous fiscal year
From March 1, 2019
to February 29, 2020
20,068Current fiscal year
From March 1, 2020
to February 28, 2021
8,653

(1,852)(543)(86)(2,481)
17,586

285
307
799
1,392
10,046

17,5797

10,117(71)

(3) Consolidated Statement of Changes in Equity
Previous fiscal year ended February 29, 2020 (From March 1, 2019 to February 29, 2020)(Millions of yen)
Capital stock

Capital surplus

58,506

46,984

Balance at beginning of current period
Cumulative effects of changes inaccounting policies
Restated balance

Shareholders’ equity
Retained earnings
Treasury shares
166,187

Total shareholders' equity(1,028)

270,649(593)
58,506

46,984(593)

165,593(1,028)270,056

Changes of items during period
Decrease by merger
Change in ownership interest of parent
due to transactions with non-controllingshareholders
Dividends of surplus－(2,375)(2,375)(20,262)

Profit attributable to owners of parent(20,262)

20,108

20,108Purchase of treasury shares

(0)

(0)

Disposal of treasury shares－

Reversal of revaluation reserve for land
Exercise of subscription rights to shares(Delivery of treasury shares)
Net changes of items other thanshareholders' equity
Total changes of items during period

(358)

(358)

(3)

Balance at end of current period

18

14

－

(2,379)(512)

17(2,874)58,50644,605

165,081(1,011)

267,181(Millions of yen)

Accumulated other comprehensive income
Valuation
Revaluationdifference on
reserve foravailable-for-salelandsecurities
Balance at beginning of current
periodCumulative effects of changes
in accounting policies
Restated balance

3,349

(566)

Foreigncurrencytranslation
adjustment
3,930

Total
NonRemeasureme accumulated Subscription controllingrights to shares
nts of defined
otherinterests
benefit plans comprehensive
income
(848)

5,865

215

5,251

Total net
assets281,982
(593)

3,349

(566)

3,930

(848)

5,865

215

5,251

281,388

Changes of items during period
Decrease by merger
Change in ownership interest ofparent due to transactions with
non-controlling shareholders
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Reversal of revaluation reserve
for landExercise of subscription rights
to shares(Delivery of treasury shares)
Net changes of items otherthan shareholders' equity
Total changes of items during
periodBalance at end of current period－(2,375)(20,262)
20,108
(0)
－
(358)
14
(1,852)

358

(589)

(86)

(2,169)39(1,037)(3,167)(1,852)

358

(589)

(86)

(2,169)39(1,037)(6,041)

1,496

(207)

3,341

(934)

3,695

255

4,214

275,347

17

Current fiscal year ended February 28, 2021 (From March 1, 2020 to February 28, 2021)(Millions of yen)
Capital stock

Capital surplus

58,50644,605

Balance at beginning of current period
Cumulative effects of changes inaccounting policies
Restated balance

Shareholders’ equity
Retained earnings
Treasury shares
165,081

Total shareholders' equity(1,011)

267,181－

58,50644,605

165,081(1,011)

267,181

Changes of items during period
Decrease by merger
Change in ownership interest of parent
due to transactions with non-controllingshareholders
Dividends of surplus

(262)

(262)

1,886

1,886
(15,009)

Profit attributable to owners of parent(15,009)

8,689

8,689

Purchase of treasury shares
Disposal of treasury shares
Reversal of revaluation reserve for land
Exercise of subscription rights to shares(Delivery of treasury shares)
Net changes of items other thanshareholders' equity
Total changes of items during period

(1)

(1)

0

0

0

3

21

24

－

Balance at end of current period

－

1,889

(6,582)

20(4,672)58,50646,494

158,498(991)

262,508(Millions of yen)
Accumulated other comprehensive income
Valuation difference
Foreign currency Remeasurements Total accumulated
Revaluationotheron available-for-sale reserve for landtranslationof defined benefit comprehensive
securities
adjustment
plansincomeBalance at beginning of current
periodCumulative effects of changes inaccounting policies
Restated balance

1,496

(207)

3,341

(934)

3,695

NonSubscription
controllingrights to sharesinterests
255

4,214

Total net
assets275,347
－

1,496

(207)

3,341

(934)

3,695

255

4,214

275,347

Changes of items during period
Decrease by merger(262)

Change in ownership interest ofparent due to transactions with
non-controlling shareholders
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Reversal of revaluation reserve
for landExercise of subscription rights
to shares(Delivery of treasury shares)
Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period

1,886(15,009)
8,689
(1)
0
－
24
285

－

343

799

1,428

78

751

2,257

285

－

343

799

1,428

78

751

(2,415)

1,782

(207)

3,684

(134)

5,123

333

4,965

272,93118

(4) Consolidated Statement of Cash Flows
For the fiscal years ended February 29, 2020 and February 28, 2021
Previous fiscal year
From March 1, 2019
to February 29, 2020
Net cash provided by (used in) operating activities:
Profit before income taxes
Depreciation and amortization
Impairment loss
Interest income
Interest expenses
Loss (gain) on sales of investment securities
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in accounts receivable-other
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other
Increase (decrease) in deposits received
Increase (decrease) in net defined benefit liability
Net decrease (increase) in call loans for banking business
Net increase (decrease) in call money for banking business
Other-net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities:
Purchase of investment securities
Purchase of property and store equipment
Purchase of intangible assets
Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates
Payments of long-term loans receivableCollection of long-term loans receivable
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Purchase of long-term prepaid expenses
Other-net
Net cash provided by (used in) investing activities

19(Millions of yen)
Current fiscal year
From March 1, 2020
to February 28, 2021

30,31979,18318,722
(651)
4,006
(164)
6,120
(205)
(38,388)
6,116(7,013)
61,292783
10,00019,00028,390217,512632(4,006)(11,435)
202,703

18,23080,778
16,635
--73
(729)
3,678
(6,232)
3,213
992(1,923)(1,952)(4,417)53,01334
10,00021,00051,511
243,829704(3,656)(12,922)
227,954―(33,851)(10,931)243(2,246)(5,960)
5,735(18,023)
17,836(796)(1,079)(49,074)(5,010)(26,293)(8,471)
7,792(1,733)(3,675)
4,917(11,832)
16,010(380)(1,305)(29,983)

Previous fiscal year
From March 1, 2019
to February 29, 2020
Net cash provided by (used in) financing activities:
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations
Proceeds from share issuance to non-controlling shareholders
Cash dividends paid
Payments from changes in ownership interests in subsidiaries that
do not result in change in scope of consolidation
Other-net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

20(Millions of yen)
Current fiscal year
From March 1, 2020
to February 28, 2021

(86,750)
50,000(50,000)(53,318)―(20,262)2,470―(80,000)(50,700)
2,622(15,009)(3,521)―(59)(163,910)(371)(10,652)
354,236
343,583(25)(140,642)
224
57,553
343,583
401,136(5) Notes to Consolidated Financial Statements(Going Concern Assumption)
Not Applicable.
(Accounting Policies for the Preparation of Consolidated Financial Statements)
1. Scope of consolidation(1) Number of consolidated subsidiaries: 20(Domestic)
Lawson Entertainment, Inc.
BestPractice, Inc.
SCI, Inc.
Lawson Store100, Inc.
Lawson HMV Entertainment United Cinemas Holdings, Inc.
United Entertainment Holdings Co., Ltd.
United Cinemas Co., Ltd.
SEIJO ISHII CO., LTD.
Lawson Bank, Inc.
Lawson urbanworks, Inc.
(Foreign)

Chongqing Lawson, Inc.
Shanghai Lawson, Inc.
Dalian Lawson, Inc.
Lawson (China) Holdings, Inc.
Saha Lawson Co., Ltd.
Shanghai Le Song Trading Co., Ltd.
Shang Hai Gong Hui Trading Co., Ltd.
Zhejiang Lawson, Inc.
Beijing Lawson, Inc.
BEIJING LUOSONG Co., Ltd.
Lawson Sanin, Inc. was excluded from the scope of consolidation, because it was dissolved after merging
with Lawson, Inc. on March 1, 2020.
(2) Names of nonconsolidated subsidiaries and others(Domestic)
LAWSONWILL, Inc.
Seikaken, Inc.
SEIJO ISHII SYUHAN CO., LTD.
TOKYO EUROPE TRADE CO., LTD.
LT CO., LTD.
Lawson Digital Innovation Inc.
(Foreign)

Lawson USA Hawaii, Inc.
Jiangsu Lawson, Inc.
Lawson Philippines, Inc.
LAWSON (TIANJIN) INC.
SLV Retail Company Limited
Shenyang LAWSON Inc.
(Reasons for exclusion from the scope of consolidation)
The above nonconsolidated subsidiaries have been excluded from the scope of consolidation because
they are all small in scale and their total assets, net sales, profit or loss (corresponding to equity interest)
and retained earnings (corresponding to equity interest) and others have no material influence on the
consolidated financial statements.

21

2. Application of the equity method(1) Equity-method associates: 3(Domestic)
Lawson Okinawa, Inc.
Lawson Minamikyushu, Inc.
Lawson Kochi, Inc.
(2) Nonconsolidated subsidiaries and entities excluded from the scope of the equity-method application
Nonconsolidated subsidiaries (LAWSONWILL, Inc., Seikaken, Inc., SEIJO ISHII SYUHAN CO., LTD.,TOKYO EUROPE TRADE CO., LTD., LT CO., LTD., Lawson Digital Innovation Inc., Lawson USA
Hawaii, Inc., Jiangsu Lawson, Inc., Lawson Philippines, Inc., LAWSON (TIANJIN) INC., SLV RetailCompany Limited and Shenyang LAWSON Inc.) and entities (Double Culture Partners Co., Ltd., Loyalty
Marketing, Inc., Lawson Staff, Inc., TA Platform Corporation, LTF Co., Ltd., StageAround TOKYO
Production Committee, Jiangyin Hualian Guzhitian Food Co., Ltd., POPLAR Co.,Ltd., New Designed by
Tokyo Ltd., Boogie Woogie Entertainment Co., Ltd., TA Platform Software, and Lawson Farm Chiba andothers) were excluded from the scope of the equity-method application because their profit or loss
(corresponding to equity interest) and retained earnings (corresponding to equity interest) of these entities
are not significant either individually or in aggregate to the consolidated financial statements.
3. Fiscal year end of the consolidated subsidiaries
The balance sheet date of Chongqing Lawson, Inc., Shanghai Lawson, Inc., Dalian Lawson, Inc., Lawson(China) Holdings, Inc., Saha Lawson Co., Ltd., Shanghai Le Song Trading Co., Ltd., Shang Hai Gong Hui
Trading Co., Ltd., Zhejiang Lawson, Inc., Beijing Lawson, Inc. and BEIJING LUOSONG Co., Ltd. is
December 31. In order to prepare the consolidated financial statements, the Company used these companies’
financial information prepared as of such balance sheet date and significant transactions which occur
between the balance sheet date and the consolidated balance sheet date are adjusted as required forconsolidation.
The balance sheet date of Lawson Bank, Inc. is March 31. In formulating the consolidated financial
statements, the Company used this subsidiary’s provisional settlement of accounts as of the consolidatedbalance sheet date.
The fiscal year end date for the other consolidated subsidiaries corresponds with the consolidated balance
sheet date.
4. Summary of Significant Accounting Policies(1) Valuation basis and method for significant assets① Securities:
Marketable securities and investments in securities:
Available-for-sale securities:
Securities whose market value is readily determinable:
Recorded at market value with net unrealized gains and losses as a separate component of net
assets. The cost of securities sold is determined based on the moving-average method.
Other:
Stated at cost determined by the moving-average method.
② Inventories:
Merchandise:Stated at cost determined mainly by the retail method (the book value in the balance sheet is written
down based on the decline in profitability).
(2) Depreciation method of depreciable significant assets① Property and store equipment (except for leased assets):
Mainly computed by the straight-line method.
The ranges of useful lives are from 10 to 34 years for buildings and structures and from 5 to 8 years
for tools, furniture and fixtures.
② Intangible assets (except for leased assets):
Computed by the straight-line method.
Costs of software for internal use are amortized by the straight-line method over 5 years, which isthe estimated useful life. Furthermore, for right of trademark, amortization is mainly computed using
the straight-line method over 20 years.

22

③ Leased assets:

Leased assets related to finance leases that do not transfer ownership of leased property
The Company applies the straight-line method using the lease term as the useful life and a residual
value of zero.
④ Rights-of-use assets:
Rights-of-use assets of the Company’s foreign consolidated subsidiaries that apply International
Financial Reporting Standard 16 (IFRS 16) “Leases”
The Company applies the straight-line method using the lease term as the useful life and a residual
value of zero.
(3) Accounting standard for significant reserves① Allowance for doubtful accounts:
Allowance for doubtful accounts is provided at the amount of possible losses from uncollectible
receivables based on the actual rate of losses from bad debt for ordinary receivables and on estimatedrecoverability for specific doubtful receivables.
② Provision for bonuses:
Provision for bonuses is provided for payments of employees’ bonuses based on the estimated amounts.
③ Provision for retirement benefits to executive officers and audit & supervisory board members:
Provision for retirement benefits to executive officers of the Company and audit & supervisory board
members of consolidated subsidiaries is recorded under internal regulations.
(4) Accounting method for retirement benefits① Period attributable method of estimated amount of retirement benefits
In calculating retirement benefit obligation, in order to attribute estimated amount of retirement benefits
in the period up to the end of the current fiscal year, it is based on the benefit formula basis.
② Cost treatment method of actuarial difference and prior service cost
Prior service cost is amortized starting the fiscal year incurred mainly on a straight-line basis over acertain period (10 years) within an average remaining service period of employees at the time of theirrecognition.
Actuarial differences are mainly amortized from the following fiscal year on a straight-line basis over acertain period (10 years) within an average remaining service period of employees at the time of theirrecognition.
Certain consolidated subsidiaries apply the simplified method to estimate the amount required forvoluntary resignations at the end of the fiscal year as the retirement benefit liability in order to calculate
net defined benefit liability and retirement benefit expenses.
(5) Significant foreign currency transactions and foreign currency financial statements
All short-term and long-term monetary receivables and payables denominated in foreign currencies aretranslated into Japanese yen at the exchange rates at the consolidated balance sheet date. The foreignexchange gains and losses from translation are recognized in the consolidated statement of income. The
consolidated balance sheet accounts as well as revenue and expense accounts of foreign subsidiaries andaffiliated companies are translated into Japanese yen at the current exchange rate as of the consolidatedbalance sheet date except for shareholders’ equity, which is translated at the historical rate. Differences
arising from such translation are shown as “foreign currency translation adjustments” and “noncontrolling interests,” a separate component of net assets.
(6) Amortization method and period of goodwill
Goodwill is amortized on a straight-line basis over the relevant years, depending on the reason for theoccurrence of goodwill, with a maximum of 20 years.
(7) Cash and cash equivalents in the consolidated statement of cash flows
Cash and cash equivalents in the consolidated statement of cash flows include cash on hand, demand
deposits and short-term investments due within three months of the acquisition date, which are easily
convertible into cash with little risk of value fluctuation.
(8) Other significant items related to the preparation of consolidated financial statements① Accounting for consumption tax:
Consumption tax and local consumption tax are accounted for using the tax exclusion method.
② Adoption of consolidated taxation system:
The Company and certain consolidated subsidiaries in Japan adopt the consolidated taxation system.
23

③ Application of tax effect accounting for transition from consolidated taxation system to group tax sharing
system:The Company and certain domestic consolidated subsidiaries have calculated the amounts of deferred
tax assets and deferred tax liabilities in accordance with tax laws in effect before amendment based on
the treatment of Paragraph 3 of “Practical Solution on the Treatment of Tax Effect Accounting for theTransition from the Consolidated Taxation System to the Group Tax Sharing System” (ASBJ Practical
Issues Task Force No.39, March 31, 2020) instead of applying the provision in Paragraph 44 of“Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No.28, February 16, 2018),
regarding the transition to group tax sharing system established in “Act for Partial Amendment of the
Income Tax Act, etc.” (Act No.8 of 2020), and items for which the non-consolidated taxation system has
been reviewed in the line with the transition to the group tax sharing system.

(Unapplied Accounting Standards, etc.)(The Company and its domestic consolidated subsidiaries)
・“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29; March 30, 2020)
・“Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No.
30; March 30, 2020)(1) Outline
This is a comprehensive accounting standard on revenue recognition. Revenue is recognized by applying
the following five steps:
Step 1: Identify the contracts with a customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the performance obligations in the contract.
Step 5: Recognized revenue when as the entity satisfies a performance obligation.
(2) Scheduled date of application
The Company plans to adopt the accounting standards, etc. from the beginning of the fiscal year ending
February 28, 2023.
(3) Impact of the application of the accounting standards, etc.
The impact was being evaluated at the time of preparation of these consolidated financial statements.
・“Accounting Standard for Fair Value Measurement” (ASBJ Statement No.30; July 4, 2019)
・“Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31;
July 4, 2019)
・“Accounting Standard for Measurement of Inventories” (ASBJ Statement No. 9; July 4, 2019)
・“Accounting Standard for Financial Instruments” (ASBJ Statement No. 10; July 4, 2019)
・“Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No.
19; March 31, 2019)(1) Outline
To improve comparability with international accounting standards, “Accounting Standard for Fair Value
Measurement” and “Implementation Guidance on Accounting Standard for Fair Value Measurement”(hereinafter, “Accounting Standard for Fair Value Measurement, etc.”) have been developed as guidance on
how to measure fair value. “Accounting Standard for Fair Value Measurement, etc.” will be applied indetermining the fair value of the following items.
・Financial instruments set forth in “Accounting Standard for Financial Instruments”
・Inventories held for trading purposes set forth “Accounting Standard for Measurement of Inventories”

24

(2) Scheduled date of application
The Company plans to apply the accounting standards, etc. from the beginning of the fiscal year ending
February 28, 2023.
(3) Impact of the application of the accounting standards, etc.
The impact was still being evaluated at the time of preparation of these consolidated financial statements.

(Changes in Presentation)(Consolidated Statement of Income)In the “Non-operating income” section, “Dividend income” was included in “Other” in the previous fiscal
year. In order to enhance the clarity of the consolidated financial statements from the current fiscal year,“Dividend income” is now separately presented.
In the “Non-operating income” section, “Penalty income” was presented separately in the previous fiscal
year. Due to a decline in financial materiality, “Penalty income” is now included in “Other.” To reflect thesechanges in method of presentation, the Consolidated Statement of Income for the previous fiscal year has
been reclassified.
As a result, in the “Non-operating income” section, 408 million yen that was presented as “Penalty income”
and 1,381 million yen that was presented as “Other” in the Consolidated Statement of Income for theprevious fiscal year are now presented as 70 million yen of “Dividend income” and 1,719 million yen of“Other.”In the “Non-operating expenses” section, “Expense due to system failure” was included in “Other” in theprevious fiscal year. In order to enhance the clarity of the consolidated financial statements from the current
fiscal year, “Expense due to system failure” is now separately presented. To reflect these changes in methodof presentation, the Consolidated Statement of Income for the previous fiscal year has been reclassified.
As a result, in the “Non-operating expenses” section, 632 million yen that was presented as “Other” in theConsolidated Statement of Income for the previous fiscal year are now presented as “Expense due to system
failure.”In the “Extraordinary losses” section, “Loss on sales of non-current assets” was presented separately inthe previous fiscal year. Due to a decline in financial materiality, “Loss on sales of non-current assets”is
now included in “Other.” To reflect these changes in method of presentation, the Consolidated Statement of
Income for the previous fiscal year has been reclassified.
As a result, in the “Extraordinary losses” section, 508 million yen that was presented as “Loss on sales of
non-current assets” and 840 million yen that was presented as “Other” in the Consolidated Statement of
Income for the previous fiscal year is now presented as 1,348 million yen of “Other.”(Consolidated Statement of Cash Flows)
In the “Cash flow from operating activities” section, “Gain on sale of investment securities” was included
in “Other” in the previous fiscal year. In order to enhance the clarity of the consolidated financial statementsfrom the current fiscal year, “Gain on sale of investment securities” is now separately presented. To reflect
these changes in method of presentation, the Consolidated Statement of Cash Flows for the previous fiscal
year has been reclassified.
As a result, in the “Net cash provided by (used in) operating activities” section, (164) million yen that waspresented as “Other” in the Consolidated Statement of Cash Flows for the previous fiscal year is now
presented as “Gain on sale of investment securities.”25

In the “Cash flow from investing activities” section, “Purchase of investment securities” was presented
separately in the previous fiscal year. Due to a decline in financial materiality, “Purchase of investment
securities” is now included in “Other.” To reflect these changes in method of presentation, the Consolidated
Statement of Cash Flows for the previous fiscal year has been reclassified.
As a result, in the “Cash flow from investing activities” section, (129) million yen that was presented as“Purchase of investment securities” and (950) million yen that was presented as “Other” in the Consolidated
Statement of Cash Flows for the previous fiscal year is now presented as (1,079) million yen of “Other.”(Notes to Consolidated Balance Sheet)*1. Accumulated depreciation of property and store equipment

Accumulated depreciation

Previous fiscal year
As of February 29, 2020
366,817(Millions of yen)
Current fiscal year
As of February 28, 2021
385,891

Previous fiscal year
As of February 29, 2020
18,717
(956)
68
1,800
(799)

(Millions of yen)
Current fiscal year
As of February 28, 2021
19,257
(959)
61
1,908
(302)

*2. Investments in associates

Investment securities (stocks)(Investment amount for jointly-controlled companies)
Investment securities (bonds)
Other (other equity investments)(Investment amount for jointly-controlled companies)*3. Revaluation of land used for businessLand used for business was revalued on the basis prescribed by the Law Concerning Revaluation ofLand (Law No. 34, March 31, 1998). The resulting revaluation difference has been included in net assets as“Revaluation reserve for land.”
Revaluation method:
The value of land is determined based on the notified prices adjusted reasonably as stipulated in Article
2, Item 4 of the Ordinance Implementing the Law Concerning Revaluation of Land (Government
Ordinance No. 119, March 31, 1998) and the assessed value as stipulated in Article 2, Item 5 of the same
Ordinance.
Date of revaluation: February 28, 2002
(Millions of yen)Previous fiscal year
Current fiscal year
As of February 29, 2020
As of February 28, 2021
Difference between book value and market value of81
53
the revalued land as of balance sheet date26

*4. Overdraft and loan commitment agreements
The Company and its consolidated subsidiaries have entered into overdraft and loan commitment
agreements to ensure efficient funding of working capital.
The unutilized balances of loans under these overdraft and loan commitment agreements as of the end of
the fiscal year are as follows.
(Millions of yen)Previous fiscal year
Current fiscal year
As of February 29, 2020
As of February 28, 2021
Total overdraft limit and loan commitment
Amount utilized

220,000
3,000

220,000
14,070Unutilized balance

217,000

205,930*5. Guarantee obligations
The Company guarantees the borrowings from financial institutions of the following subsidiary.
(Millions of yen)Previous fiscal year
Current fiscal year
As of February 29, 2020
As of February 28, 2021
Lawson Philippines, Inc.

―

110

(Notes to Consolidated Statement of Income)*1. Major components of selling, general and administrative expenses are as follows.

Employees' salaries and allowances
Provision for bonuses
Retirement benefit expenses
Rents
Depreciation

Previous fiscal year
From March 1, 2019
to February 29, 2020
62,324
3,860
2,722
133,880
79,069(Millions of yen)
Current fiscal year
From March 1, 2020
to February 28, 2021
58,214
3,801
2,899
128,952
80,643

Previous fiscal year
From March 1, 2019
to February 29, 2020
4,872
363
867
17
0
6,120

(Millions of yen)
Current fiscal year
From March 1, 2020
to February 28, 2021
2,394
560
224
32
0
3,213

*2. Breakdown of loss on retirement of non-current assets

Buildings and structures
Tools, furniture and fixtures
Leased assets
Software
OthersTotal

27

*3. Impairment loss
The Company and its consolidated subsidiaries (collectively, the “Group”) identify each store as the smallest
cash generating unit.
The carrying value of asset groups whose profitability has significantly decreased was written down to therecoverable amount, with the difference recognized as impairment loss under extraordinary losses.
Previous fiscal year (From March 1, 2019 to February 29, 2020)(Millions of yen)
Category by use
Stores

Other
Total

Location

AssetsTokyo

Buildings; tools, furniture and fixtures; and others

2,533

Osaka

"

1,689

Others"13,434

―

Land

116

―

Software

947

―

―

18,722Category by non-current assets
Buildings and structures
Tools, furniture and fixtures
Land
Leased assets
Software
Other

10,774
708
116
6,104
947
70

Impairment loss

million yen
"
"
"
"
"

The recoverable amount of the asset groups is the higher of net selling price or value in use. The net selling
price of land was calculated based on the value appraised by a real estate appraiser or contract price, and thevalue in use was calculated by discounting estimated future cash flows mainly using a discount rate of 3.8%.
Current fiscal year (From March 1, 2020 to February 28, 2021)(Millions of yen)
Category by use
Stores

Other
Total

Location

AssetsImpairment loss

Tokyo

Buildings; tools, furniture and fixtures; and others

2,626

Osaka

"

1,264

Others"

11,845

―

Land

76

―

Software

821

―

―

16,635

Category by non-current assets
Buildings and structures
Tools, furniture and fixtures
Land
Leased assets
Software
Other

9,603
563
76
5,500
821
70

million yen
"
"
"
"
"

The recoverable amount of the asset groups is the higher of net selling price or value in use. The net selling
price of land was calculated based on the value appraised by a real estate appraiser or contract price, and thevalue in use was calculated by discounting estimated future cash flows mainly using a discount rate of 3.0%.
28

(Notes to Consolidated Statement of Comprehensive Income)* The components of other comprehensive income for the years ended February 29, 2020 and February 28, 2021
were as follows:(Millions of yen)Previous fiscal year
Current fiscal year
From March 1, 2019
From March 1, 2020
to February 29, 2020
to February 28, 2021
Valuation difference on
available-for-sale securities
Gain or loss arising during the(2,509)6,630
periodReclassification adjustments to(120)(6,219)profit or loss
Amount before income tax effect(2,630)410
Income tax effect
778
(125)
Valuation difference on(1,852)285
available-for-sale securities
Foreign currency translation
adjustment
Gain or loss arising during the
(543)
307
periodForeign currency translation
(543)
307
adjustment
Remeasurements of defined
benefit plans
Gain or loss arising during the
(334)
891
periodReclassification adjustments to177
260
profit or loss
Amount before income tax
(157)
1,152
effectIncome tax effect70(353)
Remeasurements of defined(86)799
benefit plans
Total other comprehensive(2,481)
1,392
income29

(Notes to Consolidated Statement of Changes in Equity)
Previous fiscal year (From March 1, 2019 to February 29, 2020)
1. Number of shares of outstanding stock and treasury shares
Number of shares at
Increase during
Decrease during
Number of shares atthe beginning of thethe period
the period
the end of the period
period(thousands of shares) (thousands of shares) (thousands of shares)(thousands of shares)
Outstanding stock
Common stock
100,300－－
100,300
Treasury shares
Common stock (*)
241
0
4
237
(*)The increase in treasury shares of 0 thousand shares resulted from purchases of stock of less than one share unit.
The decrease in treasury shares of 4 thousand shares resulted from the exercise of stock option rights.
2. Subscription rights to shares and treasury subscription rights to sharesClass and number of shares
Balance at
subject to stock acquisition rights
end of the
Number (shares)
Terms of stock
current
Classificationacquisition rights
periodBeginning
Increase
Decrease End of theClass(Millionsof theduring the during theperiodof yen)periodperiodperiodStock acquisitionrights (ordinary stock
options)

Issuing company(Parent company)

Total

－

－

－

－

－

255

－

－

－

－

－

255

3. Dividend
1) Dividend payment
Date of resolution
The General meetingof shareholders(May 21, 2019)
Directors’ meeting(October 9, 2019)

Class ofsharesDividend payment(millions of yen)

Dividend pershare (yen)Commonstock

12,757

Common
stock

7,504

Record date

Effective date

127.50February 28, 2019

May 22, 201975.00

August 31, 2019

November 8, 20192) Dividends for which the record date is in the current fiscal year and the effective date is after the fiscal year-end
Date of resolution

Class ofshares

Source ofdividend

Dividend payment(millions of yen)

Dividend pershare (yen)Record date

Effectivedate

The General
meeting ofshareholders(May 27, 2020)

Commonstock

Retainedearnings

7,504

75.00

February 29,
2020

May 28,2020

30

Current fiscal year (From March 1, 2020 to February 28, 2021)
1. Number of shares of outstanding stock and treasury shares
Number of shares at
Increase during
Decrease during
Number of shares atthe beginning of thethe period
the period
the end of the period
period(thousands of shares) (thousands of shares) (thousands of shares)(thousands of shares)
Outstanding stock
Common stock
100,300－－
100,300
Treasury shares
Common stock (*)
237
0
5
232
(*) The increase in treasury shares of 0 thousand shares resulted from purchases of stock of less than one share unit.
The decrease in treasury shares of 5 thousand shares resulted from decreases of 5 thousand shares due tothe exercise of stock option rights and 0 thousand shares due to requests for additional purchases of stockof less than one share unit.
2. Subscription rights to shares and treasury subscription rights to sharesClass and number of shares
Balance at
subject to stock acquisition rights
end of the
Number (shares)
Terms of stock
current
Classificationacquisition rights
periodBeginning
Increase
Decrease End of theClass(Millionsof theduring the during theperiodof yen)periodperiodperiodStock acquisitionrights (ordinary stock
options)

Issuing company(Parent company)

Total

－

－

－

－

－

333

－

－

－

－

－

333

3. Dividend
1) Dividend payment
Date of resolution
The General meetingof shareholders(May 27, 2020)
Directors’ meeting(October 8, 2020)

Class ofsharesDividend payment(millions of yen)

Dividend pershare (yen)Common
stock

7,504

Common
stock

7,505

Record date

Effective date

75.00

February 29, 2020

May 28, 2020

75.00

August 31, 2020

November 10, 2020

2) Dividends for which the record date is in the current fiscal year and the effective date is after the fiscal year-end
Plan for resolution is as follows.
Date of resolution

Class ofshares

Source ofdividend

Dividend payment(millions of yen)

Dividend pershare (yen)Record date

Effectivedate

The General
meeting ofshareholders(May 25, 2021)

Commonstock

Retainedearnings

7,505

75.00

February 28,
2021

May 26,2021

31

(Notes to Consolidated Statement of Cash Flows)*1. Reconciliation between the year-end balance of cash and cash equivalents and cash and deposits in the
consolidated balance sheet(Millions of yen)Previous fiscal year
Current fiscal year
From March 1, 2019
From March 1, 2020
to February 29, 2020
to February 28, 2021
Cash and deposits
343,587
402,584
Time deposits for which the deposit period(4)(1,447)exceeds three months
Cash and cash equivalents
343,583
401,136
2. Description of significant non-cash transactions
1) Assets and liabilities related to finance lease transactions are as follows.
(Millions of yen)Previous fiscal year
From March 1, 2019
to February 29, 2020

Current fiscal year
From March 1, 2020
to February 28, 2021

Assets and liabilities related to finance lease
50,007
31,841transactions(*)The Company’s foreign consolidated subsidiaries apply International Financial Reporting Standard 16(IFRS 16) “Leases” and the lease transactions concluded by those subsidiaries are included in thedescription above of the amount of assets and liabilities related to finance lease transactions.
2) Significant asset retirement obligations are as follows.
(Millions of yen)Previous fiscal year
From March 1, 2019
to February 29, 2020

Current fiscal year
From March 1, 2020
to February 28, 2021

5,363

916

Significant asset retirement obligations

32

(Segment Information)
1. Outline of reportable segments
1) Method to determine reportable segments
The Company’s financial information is provided separately by reportable segment and is subject to regularreview by the board of directors with regard to the allocation of managerial resources and performance
evaluation.
The Group operates primary businesses Domestic Convenience Store Business, Seijo Ishii Business,
Entertainment-related Business, Financial Services Business and Overseas Business while incorporating otherrelated businesses.
Therefore, the Group has made the Domestic Convenience Store Business, Seijo Ishii Business,
Entertainment-related Business, Financial Services Business and Overseas Business units its main reportablesegments, based on consideration of financial characteristics and the nature of the services provided.
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 Store100, Inc. undertakes the direct
management of LAWSON STORE100 stores. SCI, Inc., a functional subsidiary which comprehensively
manages the process from procurement to sale, aims to improve the efficiency of the entire process.
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. carries out a banking business.
Regarding Overseas Business, the Group’s operating companies opened LAWSON stores in the People’s
Republic of China and Thailand.
2) Changes in reportable segments
Due to its increased importance, Overseas Business, which was included in Others, has been recorded as asingle reporting segment from the current fiscal year. As a result, segment information for the previous fiscal
year was reclassified to reflect the change and presented in “3. Information on net sales, and profit or loss byreportable segment.”
2. Computation method of the amount of net sales, profit or loss, assets and liabilities, and other items byreportable segment
The segment accounting policies are the same as those described in the “Accounting Policies for the
Preparation of Consolidated Financial Statements.” Segment profit is based on operating income. Intersegment
revenue and transfers are based on market value.

33

3. Information on net sales, and profit or loss by reportable segment
Previous fiscal year (From March 1, 2019 to February 29, 2020)(Millions of yen)
Reportable segment
Others(Note 1)

Adjustments(Note 2)

Total
(Note 3)730,236－730,236

1,098

11,145(11,145)－

56,1691,106

741,382(11,145)

730,236

3,088(1,005)76

62,943－62,94369,736395,854

42,112384

1,488,965(131,232)

1,357,732

1,887

2,365

6,401

6,333

0

74,743－74,743

1,437

501

－

57

－

4,440

－

4,440

5,099

－

－

－

－

－

5,099

－

5,099

33,165

1,045

2,771

2,586

5,213

－

44,782－

44,782

Domestic
Convenience
Store
Business

Seijo Ishii
Business

Entertainmentrelated Business

Financial
Services
Business

Overseas
Business

465,333

93,11983,96031,64656,169

7

6,218

－

1,385

2,443

－

Total

471,551

93,11985,34634,089Segment profit

47,121

8,348

5,313

Segment assets

908,974

71,903

Depreciation

57,755

Amortizationof goodwill
Investments in
Associates
Increase in
non-current
assets2,443

Gross operating
Revenue
Sales toexternalcustomers
Internal sales
or transfers
betweensegments

Total

Other

(Notes)1. The business segments within the “Others” category that do not fall under the main reportable segments,
include Consulting Business.
2. Adjustments to segment assets are due to the elimination of intra-segment transactions.
3. Segment profit (loss) corresponds to consolidated operating income.

34

Current fiscal year (From March 1, 2020 to February 28, 2021)(Millions of yen)
Reportable segment
Others(Note 1)

Adjustments(Note 2)

Total
(Note 3)

666,001－

666,001207

10,586(10,586)－

61,356

210

676,588(10,586)

666,001

1,753

809

(456)

40,876－40,87653,785450,973

56,703508

1,516,526(151,095)

1,365,430

1,975

2,301

6,974

7,641

－

76,606－76,606

1,437

501

－

53

－

4,171

－

4,171

4,942

－

－

－

－

－

4,942

－

4,942

25,827

1,542

885

2,456

4,053

－

34,764－34,764

Domestic
Convenience
Store
Business

Seijo Ishii
Business

Entertainmentrelated Business

Financial
Services
Business

Overseas
Business

416,436

103,037

56,592

28,57561,356

2

6,064

－

1,317

2,997

－

Total

422,501

103,037

57,90931,573

Segment profit

28,73910,329(297)

Segment assets

881,172

73,382

57,712
2,179

Gross operating
Revenue
Sales toexternalcustomers
Internal sales
or transfers
betweensegments

Total

Other
Depreciation
Amortizationof goodwill
Investments in
Associates
Increase in
non-current
assets(Notes)1. The business segments within the “Others” category that do not fall under the main reportable segments,
include Consulting Business.
2. Adjustments to segment assets are due to the elimination of intra-segment transactions.
3. Segment profit (loss) corresponds to consolidated operating income.

35

(Related information)
Previous fiscal year (From March 1, 2019 to February 29, 2020)
1. Information by product and service
Since similar information is disclosed in segment information, this information is omitted.
2. Information by geographical area
(1) Net sales
Since sales to external customers in Japan exceed 90% of net sales on the consolidated statement ofincome, this information is omitted.
(2) Property and store equipment
Since property and store equipment in Japan exceed 90% of property and store equipment on the
consolidated balance sheet, this information is omitted.
3. Information by major customer
Information about major customers has been omitted since there are no external customers who constituted
more than 10% of net sales on the consolidated statement of income.
Current fiscal year (From March 1, 2020 to February 28, 2021)
1. Information by product and service
Since similar information is disclosed in the segment information, this information is omitted.
2. Information by geographical area
(1) Net sales
Since sales to external customers in Japan exceed 90% of net sales on the consolidated statement ofincome, this information is omitted.
(2) Property and store equipment
Since property and store equipment in Japan exceed 90% of property and store equipment on the
consolidated balance sheet, this information is omitted.
3. Information by major customer
Information about major customers has been omitted since there are no external customers who constituted
more than 10% of net sales on the consolidated statement of income.

36

(Information on impairment loss on non-current assets by reportable segment)
Previous fiscal year (From March 1, 2019 to February 29, 2020)
The Group identifies each store as the smallest cash generating unit.
Regarding asset groups whose profitability from operating activities has continuously been negative, the bookvalue of such assets has been written down to the recoverable amount, with the difference recorded as
impairment loss under extraordinary losses.
The amount of impairment loss recorded for each reportable segment is as follows.
(Millions of yen)
Reportable segment

Impairment
loss

OthersDomestic
Convenience
Store
Business

Seijo
Ishii
Business

Entertain
mentrelated
Business

Financial
Services
Business

Overseas
Business

18,359

17

73

－

272

－

Total

18,722Adjustments

－

Total

18,722Current fiscal year (From March 1, 2020 to February 28, 2021)
The Group identifies each store as the smallest cash generating unit.
Regarding asset groups whose profitability from operating activities has continuously been negative, the bookvalue of such assets has been written down to the recoverable amount, with the difference recorded as
impairment loss under extraordinary losses.
The amount of impairment loss recorded for each reportable segment is as follows.
(Millions of yen)
Reportable segment
Domestic
Convenience
Store
Business
Impairment
loss

16,206

Others

Seijo
Ishii
Business

Entertain
mentrelated
Business

Financial
Services
Business

Overseas
Business

196

142

－

89

－

Total

16,635Adjustments

－

Total

16,635(Information on amortization of goodwill and amortized balance by reportable segment)
Previous fiscal year (From March 1, 2019 to February 29, 2020)(Millions of yen)
Reportable segment

Balance at
end of fiscal
year

OthersDomestic
Convenience
Store
Business

Seijo
Ishii
Business

Entertain
mentrelated
Business

Financial
Services
Business

Overseas
Business

13,654

20,958

7,185

－

583

－

Total

42,381

Adjustments

－

Total

42,381

Note: Regarding amortization of goodwill, this information is omitted since similar information is disclosed insegment information.

37

Current fiscal year (From March 1, 2020 to February 28, 2021)(Millions of yen)
Reportable segment

Balance at
end of fiscal
year

OthersDomestic
Convenience
Store
Business

Seijo
Ishii
Business

Entertain
mentrelated
Business

Financial
Services
Business

Overseas
Business

11,475

19,521

6,683

－

534

－

Total

38,215Adjustments

－

Total

38,215

Note: Regarding amortization of goodwill, this information is omitted since similar information is disclosed insegment information.
(Information on gain on negative goodwill by reportable segment)
Previous fiscal year (From March 1, 2019 to February 29, 2020)
Not applicable.
Current fiscal year (From March 1, 2020 to February 28, 2021)
Not applicable.

38

(Per Share Information)
Previous fiscal year
From March 1, 2019 toFebruary 29, 2020

Current fiscal year
From March 1, 2020 toFebruary 28, 2021

2,707.08 yen

2,674.53 yen

Profit per share

200.95 yen

86.84 yen

Diluted profit per share

200.84 yen

86.78 yen

Net assets per share

Note: The basis for the calculation of profit per share and diluted profit per share is as follows:
Previous fiscal year
From March 1, 2019 toFebruary 29, 2020

Item

Current fiscal year
From March 1, 2020 toFebruary 28, 2021

Profit per share
Profit attributable to owners of parent (millions ofyen)Amount not attributable to common shareholders(millions of yen)

20,108

8,689

－

－

Profit attributable to common stock (millions of yen)

20,108

8,689

Average number of common stock during the fiscal
year (thousands of shares)

100,061

100,065

Profit attributable to owners of parent adjustment(millions of yen)
Increase in number of outstanding common shares(thousands of shares)

－

－

58

69

(Subscription rights to shares) (thousands of shares)

(58)

(69)

－

－

Diluted profit per share

Summary of issuable shares not included in thecomputation of diluted profit per share, since thesesecurities are not dilutive(Significant Subsequent Events)
Not applicable.

39