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April 17, 2002
Dear Shareholders and Investors,
Unfortunately, earnings dropped for the reasons cited when we announced a downward revision to our fiscal
2001 projections in January this year. Existing store sales dropped 3% year on year in the latter half
of the year and we were unable to make significant headway with cost-cutting initiatives, as our cost structure
had become inflexible. Long-term sustainable growth is premised on having a flexible cost structure.
Faced with these circumstances and due to a growing sense of urgency, we launched a number of management
reforms and took other actions to drive growth in the years ahead. On January 1, 2002, we moved to overhaul
our organization and personnel systems, introduced an executive officer system and reduced the size of
the Board of Directors. Lawson's new management team will oversee the speedy implementation of these reforms.
Takeshi Niinami will be at the helm of this new team as the president elect. I give him my full support
and wish him every success in his endeavors.
Kenji Fujiwara President and CEO
Greeting From the New President Elect
I was appointed advisor on March 6 and will formally take over as president on May 29, 2002, pending approval
at the Ordinary Annual General Meeting of Shareholders. My first priority will be to accelerate the pace
of reform in a drive to enhance our franchised storeowners' earnings - and improve Lawson's profitability.
During my roughly one month at Lawson, I have stressed the urgency of implementing reforms as quickly as
possible. It was with this mindset that I addressed analysts at both Lawson's earnings announcement and
management strategy presentation on April 17 to announce Lawson's forecasts and explain the core concepts
of our strategy. The presentation materials and can be found on this site (LINK). Fiscal 2002 is a pivotal
year. It will be crucial for laying the platform for medium- to long-term growth. I will do my utmost to
make sure that this happens.
Since March, I have had the opportunity to listen to what Lawson employees working on the frontline are
thinking. The experience has convinced me that everybody is eager and ready to reenergize the company.
I am confident this can be done. It is my job to keep listening to what they are saying and to ensure that
they get the full support they need to deliver maximum results. This should go a long way toward lifting
the earnings of franchised storeowners.
I look forward to your support and understanding as we take on new challenges together. |
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Takeshi Niinami
President and CEO Elect |
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