Top Management Message

Today, Lawson announced its financial results for the first quarter of FY2022, or the three months from March 1 to May 31, 2022. The main consolidated results are listed below:

◆Operating income 13.2 billion yen
(+2.6 billion yen, +25.1% year on year)
◆Ordinary income 13.5 billion yen
(+3.2 billion yen, +30.8% year on year)
◆Net income 8.0 billion yen
(+2.3 billion yen, +42.4% year on year)

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In FY2022, the Lawson Group Sweeping Transformation Executive Committee is entering its third year. The Committee which was launched to realize our Challenge 2025 medium-term vision to mark our 50th anniversary in 2025. In addition to making growth investments to address changes in our business environment, we are working to increase the degree of execution of each project of the Committee, resolve medium- to long-term issues to help ensure sustainable growth for the Lawson Group as a whole, secure new earnings opportunities, and improve job satisfaction. We have also set the strategic concept “community-based + individual customer and individual store-focused” and introduced Company system to some areas to strengthen frameworks for actively creating customer value in frontline locations which are much closer to customers, and we have been promoting measures to strengthen each individual area.

In the first quarter of FY2022, the number of COVID-19 infections declined and pre-state of emergency measures were lifted in March, resulting in a gradual recovery in people flows.

In domestic convenience store business, we expanded the range of products for everyday use, such as frozen foods in order to better respond to the demands of customers whole lifestyles are currently changing, and have been renovating stores to suit the specific business environment of each individual store. As of the end of May, we had renovated a total of 4,858 stores, and we will continue with our plan to renovate 3,500 stores during the current fiscal year. We have continued to introduce Machikado Chubo in-store kitchen services, which have proven popular with customers, in conjunction with store renovations. As a result, the number of stores equipped with a Machikado Chubo kitchens had risen to 8,546 as of the end of May. We also increased the number of stores offering food delivery services to 3,263 stores as of the end of May. As a result of the above initiatives, existing-store sales in Japan rose 1.6% year on year in the first quarter of FY2022.

With regard to our Seijo Ishii business, sales of original own deli items manufactured in Seijo Ishii’s in-house Central Kitchen continued to prove strong even as stay-home demand started to settle down.

In our Entertainment-related business, there were no restrictions on movement during the Golden Week long holiday in May for the first time in three years, so more energetic concerts and live events were held mainly during that period, and the volumes of ticket handling, etc. increased.

As for our Financial Services business, we worked to strengthen our core ATM business by expanding the range of available ATM services and increasing our number of collaborating operators and financial institutions.

Regarding our Overseas business, we continue to expand our store network in China. Since April, despite the lockdowns in Shanghai and stronger restrictions on movement, we have been working to strengthen food delivery services for which there is latent demand.

Our ultimate aim is to make Lawson an institution that is supported by all customers. To that aim, the entire Group is working as one to swiftly grasp social issues and diversifying values and to respond to customer demands, while also contributing to the happiness of the local “machi” community by following through on our three promise to offer Superior tastes, Human kindness, and Environmental “machi” friendliness. We intend to implement initiatives to achieve Challenge 2025 by focusing on growth for the whole Lawson Group and maximizing the value of the Lawson brand.

We ask for the continued understanding and support of our shareholders and investors.

July 11, 2022

President and Representative Director
Sadanobu Takemasu

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