Lawson, Fifty-Fifty With KDDINarrow moat

Mitsubishi Corporation (8058) — moat facet

Mitsubishi owns half of Lawson's 22,500 stores and earns under 6% on what it paid for them.

Mitsubishi made Lawson a subsidiary in 2017, acquiring an additional 16.6% by tender offer on top of its 33.4%1. In April 2024 KDDI completed its own tender offer, and from August 2024 the two companies have each owned 50%2.

Lawson stores, February 2026about 14,700Japanabout 7,800OverseasMitsubishi Corporation results, May 2026
About a third of the stores are outside Japan.

The chain had about 14,700 stores in Japan and 7,800 overseas at the end of February 20263. Mitsubishi's investment is carried at ¥502.6 billion4, and its share of profit was ¥28.8 billion in the year to March 20265, a return of about 5.7% on the carrying value6.

The logic of the partnership is data and payments. KDDI is one of Japan's largest mobile operators, and a convenience store is one of the most frequent retail visits a Japanese consumer makes.

The history includes a large write-down: Mitsubishi impaired ¥83.6 billion of Lawson goodwill and intangible assets in the year to March 20217.

The partnership changed how Lawson appears in the accounts. Smart-Life Creation's gross profit was ¥806.1 billion in the year to March 2024, when Lawson was consolidated, ¥538.5 billion in 2025 and ¥233.5 billion in 202689. Mitsubishi now records its share of Lawson's profit rather than its revenue and costs.

The measure is the return on the ¥502.6 billion carrying value. At 5.7% it is below Mitsubishi's own ROE target; rising profit is needed to justify the price.

Moat trajectory: Widening

Lawson's contribution rose from ¥25.5 billion to ¥28.8 billion after the KDDI partnership.

The number that tests this moat
Reported
Lawson stores
about 22,500 (14,700 in Japan, 7,800 overseas)

The network behind a ¥502.6 billion stake; overseas growth is where the store count can still rise.

Source: Mitsubishi Corporation results, year to March 2026 ↗
⚠ Threats to the moat
⚠ THREAT 01
A Return Below the Cost of the Stake
Mitsubishi's Lawson stake earns under 6% on its carrying value, after one large write-down already.
References
  1. ReportedMitsubishi made Lawson a subsidiary in 2017, acquiring an additional 16.6% by tender offer on top of its 33.4%.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the notes on significant investments: MDP and BMA, Lawson, Eneco, LNG Canada, Anglo American Sur and Quellaveco, with book values and ownership. — FY to March 2026 · publ. 1 May 2026 · source ↗
  2. ReportedIn April 2024 KDDI completed its own tender offer, and from August 2024 the two companies have each owned 50%.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the consolidated statements of income, financial position and cash flows, the eight-segment note, dividends and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  3. ReportedThe chain had about 14,700 stores in Japan and 7,800 overseas at the end of February 2026.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the consolidated statements of income, financial position and cash flows, the eight-segment note, dividends and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  4. ReportedMitsubishi's investment is carried at ¥502.6 billion, and its share of profit was ¥28.8 billion in the year to March 2026, a return of about 5.7% on the carrying value.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the consolidated statements of income, financial position and cash flows, the eight-segment note, dividends and the forecast for the year to March 2027. — FY to March 2026 · publ. 1 May 2026 · source ↗
  5. ReportedMitsubishi's investment is carried at ¥502.6 billion, and its share of profit was ¥28.8 billion in the year to March 2026, a return of about 5.7% on the carrying value.
    Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - net income by segment and of major subsidiaries and affiliates, with ownership, and the forecast by segment. — FY to March 2026 · publ. 1 May 2026 · source ↗
  6. Moat Explorer calcMitsubishi's investment is carried at ¥502.6 billion, and its share of profit was ¥28.8 billion in the year to March 2026, a return of about 5.7% on the carrying value.
    Moat Explorer calculation from Mitsubishi Corporation's reported figures. Equity-method profit over net profit: 467.9 / 800.5 = 58.5%. Mineral Resources plus Environmental Energy over segment total: (204.5 + 160.9) / 752.1 = 48.6%. Energy & Power (Environmental Energy plus Power Solution): 238.8 + 97.9 = 336.7 (year to March 2024), 198.6 - 15.6 = 183.0 (2025), 160.9 + 43.4 = 204.3 (2026). Other and adjustments: 51.2 - 9.2 = 42.0 (2025), 51.8 - 3.5 = 48.3 (2026). Trailing twelve months to June 2026: net profit 800.5 + 298.5 - 203.1 = 895.9; revenue 19,878.3; EPS 210.92 + 81.53 - 51.59 = 240.86. Progress against guidance: 298.5 / 1,100.0 = 27.1%. Share price change since March: 4,811 / 5,317 - 1 = -9.5%. Berkshire's market value over cost: 9,207 / 4,248 = 2.17 times; dividend on cost 273 / 4,248 = 6.4%. Mitsubishi Development profit: 190.2, 132.9, 8.3. Copper profit growth: 149.9 / 63.8 = 2.35 times. Segment profit over segment assets, year to March 2026: Mineral Resources 204.5 / 5,995.2 = 3.4%; Energy & Power 204.3 / 6,079.0 = 3.4%; Smart-Life Creation 91.0 / 2,745.5 = 3.3%; Food Industry 83.3 / 2,334.1 = 3.6%; Urban Development & Infrastructure 85.1 / 2,173.8 = 3.9%; Mobility 57.6 / 1,942.7 = 3.0%; Materials Solution 26.3 / 1,971.4 = 1.3%. Adjusted net income growth implied by guidance: (1,100.0 - 280.0) / 703.7 = 1.17. Split-adjusted dividend growth: 125 / 44 = 2.8 times. Buyback share of shares: 318.4 / 4,028.9 = 7.9%. Data-centre capacity growth: 168 / 29 = 5.8 times. Average buyback price: about ¥1,000,000 million / 318.4 million shares = about ¥3,141. Lawson return on carrying value: 28.8 / 502.6 = 5.7%. Copper profit excluding the Anglo American Sur reversal: 149.9 - 53.2 = 96.7. Interest cost of one percentage point on ¥5,746.9 billion: about ¥57 billion. Eneco goodwill cover: 167.0 / 31.0 = 5.4 years of profit. Aethon expected return: ¥50-60 billion on about ¥800 billion = 6-8%. Oil assumption effect: (78 - 70) x ¥2.4 billion = about ¥19 billion. Market value over adjusted net income: 17,620 / 703.7 = 25 times. Dividends paid: 408,458 / 289,692 = 1.41 (up 41%) while net income 800.5 / 964.0 = 0.83 (down 17%). MDP return on plant: 8.3 / 1,160.6 = 0.7%. — FY to March 2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Mitsubishi Corporation's results, presentations and market data; operands shown in the source line.
  7. ReportedThe history includes a large write-down: Mitsubishi impaired ¥83.6 billion of Lawson goodwill and intangible assets in the year to March 2021.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2021 - the impairment of Lawson goodwill and intangible assets and the fall in profit. — FY to March 2021 · publ. May 2021 · source ↗
  8. ReportedSmart-Life Creation's gross profit was ¥806.1 billion in the year to March 2024, when Lawson was consolidated, ¥538.5 billion in 2025 and ¥233.5 billion in 2026.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2025 (IFRS) - including the eight-segment note with the year to March 2024 restated and the three-for-one share split of 1 January 2024. — FY to March 2025 · publ. 2 May 2025 · source ↗
  9. ReportedSmart-Life Creation's gross profit was ¥806.1 billion in the year to March 2024, when Lawson was consolidated, ¥538.5 billion in 2025 and ¥233.5 billion in 2026.
    Mitsubishi Corporation, Consolidated Financial Results for the year ended March 31, 2026 (IFRS) - the notes on significant investments: MDP and BMA, Lawson, Eneco, LNG Canada, Anglo American Sur and Quellaveco, with book values and ownership. — FY to March 2026 · publ. 1 May 2026 · source ↗
Sources
Generated September 24, 2026