Monthly Operations Summary FY2013 (December 2013)

Business Report

Non-consolidated net sales of existing stores were 100.7% of the same period last year.

Total sales at all stores in December 2013 amounted to　174,167 million yen, 101.6% of the same period last year. Consolidated net sales of existing stores were 100.2% of the same period last year. Average daily sales per store (all stores) amounted to 533 thousand yen. The average number of customers per store (existing stores) was 834, 99.5% of the same period last year. The average spending per customer (existing stores) was 602 yen, 100.7% of the same period last year.

In December, non-consolidated net sales of existing stores achieved higher sales amount than the previous year, a continuing trend since November. We had some negative impact on sales by the heavy rain excluding the eastern Japan along the Pacific coast and by the declining sales trend of cigarettes. However, sales were recovered by strong sales of over-the-counter fast food category led by “Ohgon-Chicken” (tender and juicy fried chicken with a golden, crispy crust) supported by the TV advertising during the Christmas season, in addition to the newly launched lunch box products at a higher price category, that uses high quality, such as domestic ingredients. Furthermore, gross profit margin of total sales of existing stores has improved in line with our estimate, due to more emphasis on value-added products and implementation of SCM restructuring.

Existing store sales by merchandise category were as follows:

Sales of over-the-counter fast food category substantially exceeded the amount in the previous year. It was due to high sales of in-store prepared foods, authentic freshly-brewed coffee, MACHI café, Chinese steamed buns and the favorable sales of new menu “Ohgon-Chicken”.

Sales of sandwiches and other chilled bakery items significantly exceeded the amount in the previous year, led by sales of wheat bran sandwich developed for health-conscious customers and the mixed fruit and cream sandwiches launched in October.

The delicatessen category significantly exceeded the previous year’s amount. In particular, prepared food categories recorded significant year-on-year growth led by expansion of the customer base led by strategy targeting female and senior customers.

Sales of daily delivered foods, canned/bottled foods, and frozen meals exceeded the amount in the previous year.

With the launch of new series of high quality ice cream “UCHI café KiSS,” the ice cream category exceeded the previous year’s amount sales.

Sales of cigarettes were still weak and it negatively impacted net sales of existing stores by little less than 1.5% points year on year.

As of December 31, 2013, the Lawson Group had 11,584　stores in Japan, including 106 NATURAL LAWSON stores and 1,214 LAWSON STORE100 stores.

Existing store sales of Ninety-nine Plus, Inc. amounted to 95.9% of the same period last year (number of customers: 96.2%; spending per customer: 99.8%). In December, Ninety-nine Plus, Inc. opened 4 stores and closed 2 stores.

To expand the customer base, Lawson has promoted "Miffy campaign" since November 26, 2013 till March 3, 2014.

Monthly Data

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Consolidated

Number of Stores

	SEP	OCT	NOV	DEC	JAN	FEB	TOTAL
Opening	99	74	66	85	42	61
65	86	51	63	72	105
Closure	28	32	27	37	17	64
21	34	28	37	39	29
Net Increase	71	42	39	48	25	-3
44	52	23	26	33	76
Total Number of Stores in Japan	11455	11497	11536	11584	11609	11606
11174	11226	11249	11275	11308	11384
NATURAL LAWSON	108	107	107	106	106	105
110	110	108	110	109	109
LAWSON STORE100	1208	1209	1212	1,214	1213	1202
1217	1210	1211	1204	1204	1205
Total Number of Stores Abroad	463	477	482	492	488	482
454	457	461	462	466	458

Sales

		SEP	OCT	NOV	DEC	JAN	FEB
All Stores (YOY)		100.3%	100.3%	102.1%	101.6%	99.9%	102.0%
Existing Stores (YOY)		97.9%	98.6%	100.4%	100.2%	99.2%	101.2%
Ave.Daily Sales per Store (¥thousands)		524	526	514	533	494	510
Number of Customers	(Number)	887	878	862	834	779	800
Number of Customers	comparison w/ previous year	96.8%	97.0%	99.3%	99.5%	100.1%	98.5%
Spending per Customer	(¥)	566	570	567	602	593	598
Spending per Customer	comparison w/ previous year	101.2%	101.6%	101.1%	100.7%	99.1%	102.7%

Non-consolidated