Flash Report on the Consolidated Financial Results
for the Fiscal Year Ended February 28, 2022
April 11, 2022
Listed Company Name: Lawson, Inc. Code No.: 2651
Tokyo Stock Exchange
(URLhttps://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, 2022
Scheduled date for submission of annual securities report: May 26, 2022 Scheduled date for payment of dividend: May 26, 2022
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 2021 fiscal year (from March 1, 2021 to February 28, 2022)
(1) Consolidated operating results (cumulative)
Note: Percentages represent increases (decreases) compared with the previous fiscal year.
Gross operating revenue | Operating income | Ordinary income | Profit attributable to owners of parent | |||||
For the fiscal year ended February 28, 2022 February 28, 2021 | Millions of yen 698,371 666,001 | % 4.9 (8.8) | Millions of yen 47,096 40,876 | % 15.2 (35.1) | Millions of yen 47,571 37,610 | % 26.5 (33.3) | Millions of yen 17,900 8,689 | % 106.0 (56.8) |
89 (56.8)
Note: Comprehensive income:Fiscal year ended February 28, 2022
Fiscal year ended February 28, 2021
20,613 million yen 10,046 million yen
105.2 % (42.9)%
Profit per share | Diluted profit per share | Return on equity | Ratio of ordinary income to total assets | Ratio of operating income to gross operating revenue | |
For the fiscal year ended February 28, 2022 February 28, 2021 | Yen 178.87 86.84 | Yen 178.71 86.78 | % 6.6 3.2 | % 3.5 2.8 | % 6.7 6.1 |
Reference: Share of profit of entities accounted for using equity method:
Fiscal year ended February 28, 2022
Fiscal year ended February 28, 2021
50 million yen 332 million yen
(2) Consolidated financial position
Total assets | Net assets | Shareholders' equity ratio | Net assets per share | |
As of February 28, 2022 February 28, 2021 | Millions of yen 1,337,245 1,365,430 | Millions of yen 278,473 272,931 | % 20.4 19.6 | Yen 2,726.97 2,674.53 |
Reference: Shareholders' equity:
As of February 28, 2022
272,891 million yen
As of February 28, 2021 267,632 million yen
(3) Consolidated cash flows
Net cash provided by (used in) operating activities | Net cash provided by (used in) investing activities | Net cash provided by (used in) financing activities | Cash and cash equivalents at end of period | |
For the fiscal year ended February 28, 2022 February 28, 2021 | Millions of yen 146,644 227,954 | Millions of yen (51,781) (29,983) | Millions of yen (109,516) (140,642) | Millions of yen 388,444 401,136 |
2. Dividends
Annual dividends per share | Total dividends for the year | Payout ratio | Ratio of dividends to shareholders' equity | |||||
1Q | 1H | 3Q | Year-end | Total | ||||
2020 fiscal year | Yen - | Yen 75.00 | Yen - | Yen 75.00 | Yen 150.00 | Millions of yen 15,010 | % 172.7 | % 5.6 |
2021 fiscal year | - | 75.00 | - | 75.00 | 150.00 | 15,010 | 83.9 | 5.6 |
2022 fiscal year (forecast) | - | 75.00 | - | 75.00 | 150.00 | 68.2 |
3. Forecast of consolidated operating results for 2022 fiscal year (from March 1, 2022 to February 28, 2023) Note: Percentages represent increases (decreases) compared with the previous fiscal year.
Gross operating revenue | Operating income | Ordinary income | Profit attributable to owners of parent | Profit per share | |||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
1H of 2022 fiscal year 2022 fiscal year | 510,000 1,024,000 | 46.2 46.6 | 27,500 53,000 | 3.0 12.5 | 26,000 48,500 | (6.6) 2.0 | 13,500 22,000 | (22.4) 22.9 | 134.90 219.84 |
Note: Forecast of consolidated operating results for 2022 fiscal year (from March 1, 2022 to February 28, 2023)
is based on figures after applying the "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020).
4. 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, 2022: 100,300,000 As of February 28, 2021:
100,300,000
2. Number of treasury shares at the end of year
As of February 28, 2022: 228,807 | As of February 28, 2021: | 232,954 |
3. Average number of shares during the year | ||
As of February 28, 2022: 100,070,561 | As of February 28, 2021: | 100,065,840 |
Reference: Non-consolidated operating results for 2021 fiscal year (from March 1, 2021 to February 28, 2022) Non-consolidated operating results (cumulative)
Note: Percentages represent increases (decreases) compared with the previous fiscal year.
Gross operating revenue
Ordinary incomeProfit attributable to owners of parent
Millions of yen 355,102 354,825
For the fiscal year ended
February 28, 2022 February 28, 2021
% 0.1 (9.2)Millions of yen 25,870 26,150
Millions of yen 34,278 33,700
%
%
(1.1) (41.5)
1.7 (26.7)Millions of yen 13,470 15,894
%
(15.3)
2.6
Note: The Flash Report on the Consolidated Financial Results is not subject to audit.
Note: Descriptions on appropriate use of financial performance forecasts and other special notes Forward-looking statements presented herein such as financial forecasts are based on currently available information and certain presumptions deemed to be reasonable as of the date of announcement. The achievement of said forecasts cannot be guaranteed. Actual results may be materially different from those in the forecast as a result of various factors. For preconditions of these financial forecasts and notes concerning their use, please refer 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) ................................................................................ 28
(Notes to Consolidated Statement of Comprehensive Income) ...................................................... 30
(Notes to Consolidated Statement of Changes in Equity) .............................................................. 31
(Notes to Consolidated Statement of Cash Flows) ......................................................................... 33
(Segment Information) ................................................................................................................... 34
(Per Share Information) .................................................................................................................. 40
(Significant Subsequent Events) ..................................................................................................... 40
1. Overview of Operating Results
(1) Overview of Operating Results for the Fiscal Year under Review
During the fiscal year under review, or fiscal 2021 ended February 28, 2022, we continued to take rigorous prevention measures against the infection of the novel coronavirus and responded to new normal demand by exerting concerted Group-wide efforts. Specifically, under the leadership of our Lawson Group Sweeping Transformation Executive Committee, which was launched in September 2020 to realize "Challenge 2025" formulated for 2025, the 50th anniversary of our establishment, we renovated our stores and revamped our product lineups in Domestic Convenience Store Business in response to changes in the business environment, and the whole Lawson Group endeavored to resolve medium- to long-term issues for sustainable growth, acquire new revenue opportunities and foster job satisfaction.
As a result, for fiscal 2021 on a consolidated basis, gross operating revenue increased to 698,371 million yen (up 4.9% from previous fiscal year), operating income increased to 47,096 million yen (up 15.2% from previous fiscal year) and ordinary income increased to 47,571 million yen (up 26.5% from previous fiscal year). Profit attributable to owners of parent increased to 17,900 million yen (up 106.0% from previous fiscal year).
We also focused on improving our group-wide internal control system and addressing operating risks based on the 2021 Basic Policy for Improvement of Internal Control Systems. We will continue promoting internal control going forward.
In addition, with a view to promoting the Sustainable Development Goals (SDGs) and focusing on environmental, social and governance (ESG) practices in management, we established the Lawson Group Human Rights Policy and Lawson Group Sustainability Policy in June and August 2021, respectively, and revised the Lawson Group Environmental Policy in August.
Operating results by business segment were as follows.
(Domestic Convenience Store Business)
During the fiscal year under review, the number of new COVID-19 cases increased, resulting in a state of emergency or quasi-emergency being declared in many prefectures, while vaccinations by municipalities and workplaces progressed. During the first half of the fiscal year, legal and voluntary restrictions were imposed on a variety of social activities, but in the second half, new infection cases started decreasing in October 2021, leading to the nationwide lifting of the state of emergency or quasi-emergency, an easing of restrictions on social activities, and a recovery trend in the movement of people. However, in January 2022, the movement of people started showing a decreasing trend again due to the rapid spread of the Omicron variant.
Under such circumstances, Lawson has been proceeding with store renovations in line with the business environment surrounding each store, helping them expand their merchandise assortment of frozen foods and other daily necessities to adapt to changes in customers' lifestyles and better address customer needs. We renovated 2,636 stores in the fourth quarter, completing the refurbishment of 4,305 stores by the end of the fiscal year. Installation of the Machikado Chubo in-store kitchen service at stores also progressed, with 8,359 stores equipped with the service as of the end of February 2022.
In store operation, we are striving to establish LAWSON stores as convenience stores endorsed by all our
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Lawson Inc. published this content on 11 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 April 2022 05:48:10 UTC.