May 2, 2023
To our shareholders:Kazumasa Hamada, President and CEO, Group CEO
AEON DELIGHT CO., LTD.

Partial Correction to "Notice of the 50th Annual General Meeting of Shareholders”

AEON DELIGHT CO., LTD. announces that we have made the following corrections to the information in
our "Notice of the 50th Annual General Meeting of Shareholders," which was disclosed on April 28, 2023.

[Corrections]“Notice of the 50th Annual General Meeting of Shareholders” page 5
Proposal No. 1 Election of Eight Directors
Candidate No.2 Goro Miyamae
Career summary, position, and responsibility in the Company, and significant concurrent positions outside theCompany
Corrections are underlined.
<Before correction>
Mar. 2021

Managing Director in charge of overseeing Marketing DX

Dec. 2022

Managing Director in charge of overseeing China businessMar. 2023

Senior Managing Officer in charge of overseeing China business (current position)<After correction>
Mar. 2021

Managing Director in charge of overseeing Marketing DX

May 2022

Director and Managing Director in charge of overseeing Marketing DX

Dec. 2022

Director and Managing Director in charge of overseeing China businessMar. 2023

Director and Senior Managing Officer in charge of overseeing China business (current
position)[Corrections]“Notice of the 50th Annual General Meeting of Shareholders” page 12
Proposal No. 2 Election of One Auditor
1. Takafumi Fujimoto
Corrections are underlined.
<Before correction>
New election Candidate for outside Auditor<After correction>
New election Candidate for Auditor-1-

<Before correction>
Reasons for selection as candidate for outside Auditor<After correction>
Reasons for selection as candidate for Auditor<Before correction>
The Company judges that he will contribute to the further enhancement of the Company’s audit operations as
he has abundant experience and deep knowledge acquired through his career as well as audit experience at
The Daiei, Inc. and AEON CREDIT SERVICE CO., LTD., which are subsidiaries of the Company’s parent
company, and has selected him as a candidate for outside Auditor.
<After correction>
The Company judges that he will contribute to the further enhancement of the Company’s audit operations as
he has abundant experience and deep knowledge acquired through his career as well as audit experience at
The Daiei, Inc. and AEON CREDIT SERVICE CO., LTD., which are subsidiaries of the Company’s parent
company, and has selected him as a candidate for Auditor.

-2-Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

Securities Code: 9787
Date of issuance: May 2, 2023
Start date of measures for electronic provision: April 28, 2023
To our shareholders:Kazumasa Hamada, President
AEON DELIGHT CO., LTD.
2-3-2 Minamisemba, Chuo-ku, Osaka City, Osaka

Notice of the 50th Annual General Meeting of Shareholders
We are pleased to announce the 50th Annual General Meeting of Shareholders of AEON DELIGHT CO., LTD. (the“Company”), which will be held as indicated below.
When convening this general meeting of shareholders, the Company takes measures for providing information that
constitutes the content of reference documents for the general meeting of shareholders, etc. (hereinafter, “matterssubject to measures for electronic provision”) in electronic format in accordance with laws and regulations and theprovisions of Article 14 of the Articles of Incorporation of the Company, and posts this information as “Notice of the50th Annual General Meeting of Shareholders” on each of the websites below. Please access either of the websites
below to review the information.
The Company’s website: https://www.aeondelight.co.jp/ir/stock/meeting.html (in Japanese)
Website for posted informational materials for the general meeting of shareholders:
https://d.sokai.jp/9787/teiji/ (in Japanese)
In addition to posting matters subject to measures for electronic provision on the websites listed above, the Company
also posts this information on the website of Tokyo Stock Exchange, Inc. (TSE). To access this information from thelatter website, access the TSE website (Listed Company Search) by using the URL shown below, enter the issuename (company name) “AEON DELIGHT” or securities code “9787,” and click “Search,” and then click “Basic
information” and select “Documents for public inspection/PR information.”
TSE website (Listed Company Search):https://www2.jpx.co.jp/tseHpFront/JJK010010Action.do?Show=Show (in Japanese)
We also accept questions from shareholders over the Internet. Please refer to the notice on acceptance of questionsin advance for details.
If you are attending on the day of the meeting, please present the voting form to the receptionist.
If you are unable to attend the meeting, you may exercise your voting rights in writing or via the Internet, etc. Please
review the Reference Documents for General Meeting of Shareholders, and exercise your voting rights by 6:00 p.m.
on Thursday, May 18, 2023 (JST).

-1-1. Date and Time: Friday, May 19, 2023, at 10:00 a.m. (JST)
2. Venue:
The banquet room “Tsuru,” Hotel Nikko Osaka (5th floor)
1-3-3 Nishi-Shinsaibashi, Chuo-ku, Osaka City, Osaka
There will be no gifts provided for the shareholders who attend this meeting.
3. Purpose of the Meeting
Matters to be reported:
1. The Business Report and the Consolidated Financial Statements for the 50th fiscal year (from March 1, 2022
to February 28, 2023), and the results of audits of the Consolidated Financial Statements by the Financial
Auditors and the Board of Auditors
2. The Non-consolidated Financial Statements for the 50th fiscal year (from March 1, 2022 to February 28,
2023)
Matters to be resolved:
Proposal No. 1
Election of Eight Directors
Proposal No. 2
Election of One Auditor
If revisions to the matters subject to measures for electronic provision arise, a notice of the revisions and the details of the matters before
and after the revisions will be posted on the Company’s website, the website for posted informational materials for the general meetingof shareholders and the TSE website mentioned previously.

-2-

Reference Documents for General Meeting of Shareholders
Proposals and Reference Information
Proposal No. 1

Election of Eight Directors

At the conclusion of this meeting, the terms of office of all eight Directors will expire. In this regard, the Company
proposes the election of eight Directors.
In addition, all candidates for outside Director satisfy the requirements of an independent officer under the provisionsof the Tokyo Stock Exchange. Furthermore, the Company stipulates the following items as conditions of eligibility
for Director. All candidates for Director fulfill these conditions.
[Election criteria for inside Director candidates]
1. The candidate shall have the personality and insight appropriate for being a Director.
2. The candidate shall have sufficient experience and knowledge in the Company’s business as well as in thebusiness of its affiliates and outstanding ability for business judgment and execution.
3. The candidate shall be able to take responsibility for the basic policy, strategic planning, and business executionof the Company and its group companies (the “Group”), and fulfill accountability for the Board of Directors.
[Election criteria for outside Director candidates]
1. The candidate shall have the personality and insight appropriate for being an outside Director.
2. The candidate shall subscribe to the Company’s management principles, code of conduct, etc.
3. The candidate shall have extensive experience as a chief executive officer or other corporate executive, or shallhave comparable experience, knowledge and insight.
4. The candidate shall be able to make judgments independently of the Company’s management.
5. The candidate shall be able to participate in most of the Company’s Board of Directors’ meetings.
[Criteria for determining independence of outside Director candidates]
The Company’s outside Director shall satisfy the conditions stated below to maintain his or her independence.
1. The candidate does not presently serve, or has not served for the past ten years as director, executive officer or
employee (hereafter referred to as “Executing Person”) of the Company or its subsidiaries.
2. The subject person is someone to whom the conditions stated below are not presently applicable, or have notbeen applicable for the past three years:(1) Major shareholder of the Company (those who directly or indirectly hold 10% or more of voting rights),
or its Executing Person(2) Partner of the Financial Auditors of the Company or employee who conducts the Company’s audit(3) Executing Person of the Company’s principal creditors (creditors who have lent to the Group an amountthat exceeds 2% of the Group’s consolidated total assets)(4) Executing Person of the Company’s major vendors (vendors where the amount of Group transaction
exceeds 2% of their annual consolidated sales of the said vendors).
(5) Attorney at law, certified public accountant, certified public tax accountant or other consultant who receives
remuneration in the amount exceeding 10 million yen annually from the Group other than the director’s
remuneration.
(6) Executing Person of a nonprofit organization where donation from the Group exceeds 10 million yen andwhere the amount of such donation exceeds 2% of the organization’s total revenue.
(7) Spouse or a relative within the second degree of kinship of 1. and (1) through (6) above.

-3-

The candidates for Director are as follows:
Candidate
No.

Name(Date of birth)

Career summary, position, and responsibility in the Company,
and significant concurrent positions outside the Company
Mar. 1987

1

Number of theCompany’s shares
ownedJoined JUSCO Co., Ltd. (currently Aeon Co.,
Ltd.)
Nov. 2006
Head of Management Planning Department ofPosful Corporation (currently AEON Hokkaido
Corporation)
Mar. 2007
Executive Officer
Sept. 2008
General Manager of Control Division of AEON
Retail Co., Ltd.
Mar. 2011
Executive Officer
Mar. 2013
Director and Control and Accounting Officer ofAeon Co., Ltd.
Feb. 2015
Regional Office Manager of Kitakanto andNiigata Company of AEON Retail Co., Ltd.
Feb. 2015
Director and Senior Managing Executive
Kazumasa Hamada
Officer(December 30, 1964)
1,100 sharesMar. 2017
Senior Managing Executive Officer
Reelection
Mar. 2018
Temporarily transferred to the Company(Advisor)
May 2018
President and CEO
Dec. 2018
President Commissioner of PT Sinar Jernih
Sarana (current position)
July 2019
President and CEO, and Group CEO of theCompany
Dec. 2019
President and CEO, Group CEO and General
Manager of Financial and Accounting Division(CFO)
Apr. 2020
President and CEO, and Group CEO (current
position)
July 2021
Director of AEON DELIGHT (CHINA) CO.,LTD. (current position)
Reasons for selection as candidate for Director and roles expected to be performed
Kazumasa Hamada was an Executing Person at Aeon Co., Ltd., the Company’s parent company, and AEON Retail Co.,
Ltd., its subsidiary. He has served as President and CEO of the Company since May 2018, and has promoted the growthof the Group in this role. The Company judges that he can continue to contribute to sustainable growth and the increaseof corporate value by providing appropriate supervision of the Group’s overall management as a Director, and has
therefore selected him as a candidate for Director.
Conflicts of interest
There is no conflict of interest between Kazumasa Hamada and the Company.

-4-Candidate
No.

Name
(Date of birth)

Career summary, position, and responsibility in the Company,
and significant concurrent positions outside the Company
Jan. 1999
June 2007

2

Number of theCompany’s shares
ownedJoined the Company
Manager, QMS Department, Crisis
Management & QMS Division
Mar. 2008
Manager, Cleaning Business Department,
Cleaning Business Division
Mar. 2010
General Manager, Cleaning Business Division
May 2016
Executive Officer and General Manager ofCleaning Business DivisionNov. 2018
Executive Officer and General Manager ofService Network Promotion Division
July 2019
Executive Officer and Manager of Kanto
Regional Office
Goro Miyamae(November 17, 1965)
Mar. 2020
Executive Officer in charge of overseeing East
1,200 shares
Japan operations
Reelection
Feb. 2021
Executive Officer in charge of overseeing
Marketing DX
Mar. 2021
Managing Director in charge of overseeing
Marketing DX
May 2022
Director and Managing Director in charge ofoverseeing Marketing DX
Dec. 2022
Director and Managing Director in charge ofoverseeing China businessMar. 2023
Director and Senior Managing Officer in chargeof overseeing China business (current position)
Chairperson of AEON DELIGHT (CHINA)
CO., LTD. (current position)
Reasons for selection as candidate for Director and roles expected to be performed
Goro Miyamae has served in the Company as a general manager and as an executive officer in charge of overseeing thecleaning business, a regional office, marketing, DX promotion and the China business. He has sufficient knowledge of
the Company’s operations, and has excellent ability for business judgment and execution as a Senior Managing Officer.
The Company judges that he is able to draw upon his experience and knowledge to supervise management execution asa Director and play an adequate role in deciding on important matters, and has therefore selected him as a candidate for
Director.
Conflicts of interest
There is no conflict of interest between Goro Miyamae and the Company.

-5-

Candidate
No.

Name
(Date of birth)

Career summary, position, and responsibility in the Company,
and significant concurrent positions outside the Company
Apr. 1989

3

Number of theCompany’s shares
ownedJoined The Industrial Bank of Japan, Limited(now Mizuho Bank, Ltd.)
Apr. 2014
General Manager of Investor Relations
Department of Mizuho Financial Group, Inc.
Apr. 2016
General Manager of Strategic Planning
Department of Mizuho Financial Group, Inc.
and Mizuho Bank, Ltd.
Apr. 2018
Project Team Manager of Overseas
Coordination Infrastructure Establishment
Project of Mizuho Bank, Ltd.
Tetsuya Akutsu
Apr. 2019
Senior Executive Officer,(March 21, 1967)
0 shares
General Manager of Global Corporate
Coordination Department of Mizuho Financial
New election
Group, Inc. and Mizuho Bank, Ltd.
Apr. 2020
Senior Executive Officer,
Deputy Officer in Charge of Global Corporate
Company of Mizuho Financial Group, Inc.
Executive Officer,
Joint Division Manager of Global Corporate
Division of Mizuho Bank, Ltd.
May 2021
Managing Director, General Manager ofFinancial and Accounting Division and CFO of
the Company (current position)
Reasons for selection as candidate for Director and roles expected to be performed
Tetsuya Akutsu has broad work experience as an officer and employee of Mizuho Financial Group and the Company inaddition to adequate knowledge related to the Company’s operations as the person responsible for financial
management of the Group, and has a high level of management judgment skills and management execution capability
as a Managing Executive Officer. The Company judges that he is able to draw upon his experience and knowledge tosupervise management execution as a Director and play an adequate role in deciding on important matters, and has
therefore selected him as a candidate for Director.
Conflicts of interest
There is no conflict of interest between Tetsuya Akutsu and the Company.

-6-

Candidate
No.

Name
(Date of birth)

Career summary, position, and responsibility in the Company,
and significant concurrent positions outside the Company
Apr. 1982

4

Number of theCompany’s shares
ownedJoined Isejin Jusco Co., Ltd. (currently Aeon
Co., Ltd.)
Sept. 2003
General Manager of Administration Division of
Kanto Company of JUSCO Co., Ltd.
May 2006
Representative Director of AEON Financial
Project Co., Ltd. (currently, AEON Bank, Ltd.)
Sept. 2006
Director in charge of overseeing Human
Resources and General Affairs, and Public
Relation
Apr. 2008
Director and Managing Executive Officer incharge of Human Resources and General
Affairs
June 2012
Director, Senior Managing Executive Officer,and Head of Corporate Management DivisionNov. 2012
Director of AEON CREDIT SERVICE CO.,LTD. (currently, AEON Financial Service Co.,
Hiroyuki Watanabe
Ltd.)(July 17, 1958)
0 shares
Apr. 2014
Representative Director and Senior Managing
Reelection
Executive Officer, Head of Sales Division of
AEON Bank, Ltd.
Apr. 2015
President and Representative Director
June 2017
Director and Executive Vice President of
AEON Financial Service Co., Ltd.
Sept. 2018
Executive Officer in charge of Human
Resources and Administration, Administration& Risk Management of Aeon Co., Ltd.
Oct. 2018
Director of AEON Financial Service Co., Ltd.
(current position)
May 2021
Director of the Company (current position)
Mar. 2022
Executive Vice President and Executive Officer
in charge of Human Resources andAdministration, Administration & Risk
Management of Aeon Co., Ltd. (current
position)
Reasons for selection as candidate for Director and roles expected to be performed
Hiroyuki Watanabe, currently or in the past ten years, is or was an Executing Person at Aeon Co., Ltd., the Company’s
parent company, and AEON Bank, Ltd. and AEON Financial Service Co., Ltd., its subsidiaries. The Company judgesthat he is able to draw upon the experience and knowledge he has accumulated in his career to supervise management
execution as a Director and play an adequate role in deciding on important matters, and has therefore selected him as a
candidate for Director.
Conflicts of interest
There is no conflict of interest between Hiroyuki Watanabe and the Company.

-7-

Candidate
No.

Name
(Date of birth)

Career summary, position, and responsibility in the Company,
and significant concurrent positions outside the Company
Apr. 1974

5

Number of theCompany’s shares
ownedJoined the Ministry of Transport (General
Affairs Division of Civil Aviation Bureau)
Apr. 1983
Seconded to Geneva Office of Japan National
Tourism Organization (JNTO)
May 1988
First Secretary of Permanent Delegation ofJapan to the Organisation for Economic
Cooperation and Development (OECD)
Jan. 1991
Deputy Assistant Vice-Minister
July 2001
Deputy Director-General (Maritime Bureau &Ports and Harbours Bureau) of Minister’s
Secretariat of Ministry of Land, Infrastructure,
Transport and Tourism
Apr. 2003
Senior Vice President (Logistics & International
Division) of Japan Post
July 2007
Deputy Vice-Minister for Tourism Policy,
Yoshiaki Hompo
Minister’s Secretariat of Ministry of Land,(April 20, 1949)
Infrastructure, Transport and Tourism
Oct. 2008
Commissioner of Japan Tourism Agency
Reelection
1,900 shares
Apr. 2010
Professor of Tokyo Metropolitan University
Candidate for outside Director
Jan. 2014
Special Adviser of Japan Tourism Agency
Candidate for independent
Nov. 2014
Adjunct Professor of Tokyo Institute of
officer
Technology
Apr. 2015
Research Professor of Tokyo Metropolitan
University
June 2015
Director of THE KEIHIN CO., LTD. (outside,current position)
June 2016
Chief of UNWTO Regional Support Office for
Asia and the Pacific (current position)
Apr. 2017
Visiting Professor of Tokyo Institute ofTechnology
May 2017
Director of the Company (outside, current
position)
Apr. 2018
Visiting Professor at Tokyo Metropolitan
University (current position)
Aug. 2021
Director and Chairman of Tobu Top Tours Co.,Ltd.
Reasons for selection as candidate for outside Director and roles expected to be performed
Yoshiaki Hompo has an extensive career and broad insight as the first Commissioner of Japan Tourism Agency and
Senior Vice President of Japan Post in addition to overseas experience and administrative experience related to the
Ministry of Transport. He also has experience in the area of human resource development as a specially-appointed
professor at universities. The Company judges that through such experience, he can continue to supervise management
execution as a Director by contributing to improve the Company’s management and corporate governance, and play anadequate role in deciding on important matters, and has therefore selected him as a candidate for Director.
Conflicts of interest
There is no conflict of interest between Yoshiaki Hompo and the Company.
Note: The Company has entered into an agreement with Yoshiaki Hompo regarding liabilities under Article 423,
paragraph 1 of the Companies Act, to limit his liability for damages to the minimum liability amount stipulated
by laws and regulations, if he has acted in good faith and without gross negligence in performing his duties as
an outside Director. If his reelection is approved, the Company plans to renew this agreement with him. He iscurrently an outside Director of the Company, and at the conclusion of this meeting, his tenure will have been
six years.

-8-Candidate
No.

Name
(Date of birth)

Career summary, position, and responsibility in the Company,
and significant concurrent positions outside the Company
Apr. 1973
June 2004

6

Number of theCompany’s shares
ownedJoined Nippon Sheet Glass Co., Ltd.
Corporate Officer, General Manager ofInformation & Telecommunication Device
Division, and Plant Manager of Sagamihara
Plant
Jan. 2008
Corporate Officer and General Manager of IT
Business Unit
June 2008
Director, Executive Officer, and Head of
Keiji Yoshikawa
Specialty Glass Worldwide(July 6, 1950)
Feb. 2012
Director, Representative Executive Officer, andExecutive Vice President and CPMO (Chief
Reelection
600 shares
Project Management Officer)
Candidate for outside Director
Apr. 2012
Director, Representative Executive Officer, andCandidate for independent
President and CEO
officerJune 2015
AdvisorJune 2018
Director of Kansai Paint Co., Ltd. (outside,current position)
May 2021
Director of the Company (outside, current
position)
June 2021
Director and Member of the Audit andSupervisory Committee of Fujikura Ltd.
(outside, current position)
Reasons for selection as candidate for outside Director and roles expected to be performed
Keiji Yoshikawa has management experience as the representative executive officer and president and CEO of acompany listed on the first section of the Tokyo Stock Exchange, as well as experience as the top of a global
corporation based in Japan. The Company therefore judges that he is able to continue to supervise management
execution as a Director by contributing to improve the Company’s management and corporate governance, not only in
the Company’s domestic business but also its overseas business management, and play an adequate role in deciding onimportant matters, and has therefore selected him as a candidate for Director.
Conflicts of interest
There is no conflict of interest between Keiji Yoshikawa and the Company.
Note: The Company has entered into an agreement with Keiji Yoshikawa regarding liabilities under Article 423,
paragraph 1 of the Companies Act, to limit his liability for damages to the minimum liability amount stipulated
by laws and regulations, if he has acted in good faith and without gross negligence in performing his duties as
an outside Director. If his reelection is approved, the Company plans to renew this agreement with him. He iscurrently an outside Director of the Company, and at the conclusion of this meeting, his tenure will have been
two years.

-9-Candidate
No.

Name
(Date of birth)

Career summary, position, and responsibility in the Company,
and significant concurrent positions outside the Company
Apr. 1987
Jan. 1988
Apr. 2002

7

Number of theCompany’s shares
ownedJoined E.F. Hutton & CO., Inc.
Joined Morgan Stanley Japan Limited
Lecturer of Faculty of Business Administration,
Takachiho University
Apr. 2003
Assistant Professor of Faculty of Business
Administration
Apr. 2008
Associate Professor of Hosei Business School
Asako Takada
of Innovation Management(March 20, 1964)
Apr. 2011
Professor of Hosei Business School ofReelection
300 sharesInnovation Management (current position)
Candidate for outside Director Sept. 2015
Director of Global MBA Program, Hosei
Candidate for independent
Business School of Innovation Management
officer(current position)
Apr. 2021
General Manager of Recurrent Education
Office of Hosei University (current position)
May 2021
Director of the Company (outside, current
position)
Apr. 2022
Advisor on regrowth of The Asahi Shimbun
Company (current position)
Reasons for selection as candidate for outside Director and roles expected to be performed
Asako Takada has insight and knowledge in the areas of organization theory and innovation, which are her research
fields as a university professor. The Company judges that she is able to continue to supervise management execution asa Director by drawing on these to contribute to promote organizational culture reforms for improving the Company’s
corporate value, improving the Company’s corporate governance, and promoting diversity, and play an adequate role indeciding on important matters, and has therefore selected her as a candidate for Director.
Conflicts of interest
There is no conflict of interest between Asako Takada and the Company.
Note: The Company has entered into an agreement with Asako Takada regarding liabilities under Article 423,
paragraph 1 of the Companies Act, to limit her liability for damages to the minimum liability amount stipulated
by laws and regulations, if she has acted in good faith and without gross negligence in performing her duties as
an outside Director. If her reelection is approved, the Company plans to renew this agreement with her. She iscurrently an outside Director of the Company, and at the conclusion of this meeting, her tenure will have been
two years.

- 10 -

Candidate
No.

Name
(Date of birth)

Career summary, position, and responsibility in the Company,
and significant concurrent positions outside the Company

Number of theCompany’s shares
owned

Apr. 1980
July 1990

8

Joined Japan Gasoline Co., Ltd.
Joined Sanwa Research Institute Corp. (nowMitsubishi UFJ Research and Consulting Co.,
Ltd.)
Aug. 1992
Joined JGC Information Systems Co., Ltd.
Nov. 1997
Joined CAC Co., Ltd. (now CAC Holdings
Corporation)
Toshio Shimada
Mar. 2000
Executive Officer and General Manager of(June 4, 1957)
Corporate Planning Department
Mar. 2002
Director and Senior Vice President of Corporate
New election
0 shares
Planning Department
Candidate for outside Director
Candidate for independent
July 2003
Managing Director and Senior Vice President
officerof Corporate Division
Mar. 2004
President and CEO
Jan. 2011
Representative Director and Chairman
Mar. 2015
Chairman and Director
Mar. 2019
Special Advisor (current position)
June 2021
Director of Bandai Namco Holdings Inc.
(outside, current position)
Reasons for selection as candidate for outside Director and roles expected to be performed
Toshio Shimada has served in the corporate planning department of an IT company and as its representative director,
and possesses experience and insight in corporate management as well as broad knowledge and insight related to digitaltechnology. The Company judges that he is able to draw upon his experience and knowledge to contribute to theCompany’s promotion of DX and supervise management execution as a Director and play an adequate role in deciding
on important matters, and has therefore selected him as a candidate for outside Director.
Conflicts of interest
There is no conflict of interest between Toshio Shimada and the Company.
Note: The Company plans to enter into an agreement with Toshio Shimada regarding liabilities under Article 423,
paragraph 1 of the Companies Act, to limit his liability for damages to the minimum liability amount stipulated
by laws and regulations, if he has acted in good faith and without gross negligence in performing his duties as
an outside Director.

[Summary of Directors and Officers Liability Insurance]
In accordance with Article 430-3, paragraph 1 of the Companies Act, the Company has entered into a directors and officers liability
insurance policy in which the Directors are insureds. The policy will cover loss incurred when an insured assumes responsibility for the
performance of their duties or receives a claim related to the pursuit of such responsibility. However, loss, etc. resulting from criminal
acts and intentional violations of the law by the Directors themselves are not covered. When the candidates assume their offices as
Directors, they will be insureds under the insurance policy. The full amount of the insurance premiums is borne by the Company, and at
the time of the next renewal, the Company plans to renew the policy with the same content.

- 11 -

Proposal No. 2

Election of One Auditor

Auditor Yuji Kawabe will resign at the conclusion of this meeting. Therefore, the Company proposes the election of
one Auditor as his substitute. If the election of the candidate for Auditor Takafumi Fujimoto as the substitute isapproved as proposed in this proposal, as provided for under Article 28, paragraph 2 of the Company’s Articles ofIncorporation, his term of office shall be until the conclusion of the 52nd Annual General Meeting of Shareholders,which is the expiration date of the term of office of the resigning Auditor Yuji Kawabe.
In addition, the consent of the Board of Auditors has been obtained for this proposal.
The candidate for Auditor is as follows:
Candidate
No.

Name(Date of birth)

Career summary, position in the Company, and significant
concurrent positions outside the Company
Apr. 1987
Oct. 2009

Oct. 2011
Feb. 2013

Jan. 2014
Takafumi Fujimoto(March 23, 1965)
New election
Candidate for Auditor
1Aug. 2015
Apr. 2017
Sept. 2018

Jan. 2020
Jan. 2021
May 2022

Joined National Police Agency
Director of Community Police Affairs Division,Community Safety Bureau of National Police
AgencyChief of Kagawa Prefectural Police
Headquarters
Executive Assistant to the National Public
Safety Commission, Commissioner-General’s
Secretariat, National Police Agency
Director, Community Safety Bureau, National
Police Agency
Personnel Division, Commissioner-General’s
Secretariat, National Police Agency
Chief Inspector General, CommissionerGeneral’s Secretariat, National Police Agency
Deputy Vice-Minister for Policy Coordination,
Commissioner-General’s Secretariat, National
Police Agency
Chief of Osaka Prefectural Police Headquarters
Director-General, Criminal Investigation
Bureau, National Police Agency
Advisor of AEON CO., Ltd. (current position),
Auditor of The Daiei, Inc. (current position),
Auditor of AEON CREDIT SERVICE CO.,LTD. (current position)

Number of theCompany’s shares
owned

0 shares

Reasons for selection as candidate for Auditor
Takafumi Fujimoto has held key positions in the National Police Agency. The Company judges that he will contributeto the further enhancement of the Company’s audit operations as he has abundant experience and deep knowledge
acquired through his career as well as audit experience at The Daiei, Inc. and AEON CREDIT SERVICE CO., LTD.,
which are subsidiaries of the Company’s parent company, and has selected him as a candidate for Auditor.
Conflicts of interest
There is no conflict of interest between Takafumi Fujimoto and the Company.
[Summary of Directors and Officers Liability Insurance]
In accordance with Article 430-3, paragraph 1 of the Companies Act, the Company has entered into a directors and officers liability
insurance policy in which the Auditors are insureds. The policy will cover loss incurred when an insured assumes responsibility for the
performance of their duties or receives a claim related to the pursuit of such responsibility. However, loss, etc. resulting from criminal
acts and intentional violations of the law by the Auditors themselves are not covered. When the candidate assumes his office as Auditor,
he will be an insured under the insurance policy. The full amount of the insurance premiums is borne by the Company, and at the timeof the next renewal, the Company plans to renew the policy with the same content.

- 12 -

3. Matters related to Share Subscription Rights (As of February 28, 2023)
Share Subscription Rights (Stock compensation-type stock options)
The following is the status of the share subscription rights that were issued as compensation for the execution ofduties owned by the Company’s Directors excluding outside Directors as of the end of the fiscal year.

Issues of stock options(Issuance resolution date)
No. 8 share subscription
rights(May 11, 2015)
No. 9 share subscription
rights(May 10, 2016)
No. 10 share subscription
rights(May 10, 2017)
No. 11 share subscription
rights(May 10, 2018)
No. 13 share subscription
rights(May 11, 2020)
No. 14 share subscription
rights(May 10, 2021)
No. 15 share subscription
rights(May 10, 2022)

Exercise period

Number of
share
subscription
rightsNumber ofsharessubject to therightsNumber of
persons
holding therightsJune 10, 2015 toJune 10, 2030

161,600 shares

1

2,841 yen per
share

0.5 yen per
share

June 10, 2016 toJune 10, 2031

16

1,600 shares

1

2,689 yen per
share

0.5 yen per
share

June 10, 2017 toJune 10, 2032

181,800 shares

1

3,167 yen per
share

0.5 yen per
share

June 10, 2018 toJune 10, 2033

232,300 shares

1

3,439 yen per
share

0.5 yen per
share

June 10, 2020 toJune 10, 2035

92

9,200 shares

2

2,738 yen per
share

0.5 yen per
share

June 10, 2021 toJune 10, 2036

92

9,200 shares

22,823 yen per
share

0.5 yen per
share

June 10, 2022 toJune 10, 203753

5,300 shares

22,379 yen per
share

0.5 yen per
share

Issuing priceAmount ofcapitalcontributed
upon exercise

Conditions for exercising share subscription rights (same for all issues)
1.

For the issuance of shares resulting from exercise of the share subscription rights, capitalization shall not be conducted if treasury
stocks are appropriated for this purpose.

2.

Conditions for exercising share subscription rights(1) The person receiving the share subscription rights must be a Director or Auditor of the Company at the time of exercise of therights. However, even a person who resigned as a Director or Auditor of the Company may exercise the rights only within five
years from the date of the resignation.
(2) When exercising share subscription rights, the Director or Auditor must exercise the entire number of the rights in his/her
possession and may not exercise them in installments.

Note:

Share options are not granted to outside Directors.

- 13 -

6. Systems for Ensuring Fair Business Transactions and Operation Status of the System(1) Overview of decisions on the systems for ensuring fair business transactions
On May 18, 2022, the Board of Directors adopted a resolution on the basic policy related to systems for ensuringthat Directors execute their duties in compliance with laws and regulations and with the Company’s Articles ofIncorporation and for ensuring just and fair execution of business operations of the Company. The resolution is
as follows:(i)

The system to ensure that the execution of duties by its Directors and employees complies with laws andregulations and with the Company’s Articles of Incorporation (compliance system)• In addition to complying with laws and regulations and with its Articles of Incorporation, the Company
always adheres to its Management Principles and Code of Conduct and acts with high ethical standards.
• The Company will implement a system to ensure that the execution of duties by its Directors and employees
complies with laws and regulations and with its Articles of Incorporation, as follows:(a) The Board of Directors will make decisions on matters of importance as prescribed by the Board of
Directors rules and standards on deliberations as well as provide oversight over the execution of theCompany’s business operations. Directors will mutually exercise checks and balances within the Board
and will ensure that decisions of the Board and the Company’s execution of its business comply withlaws and regulations and with its Articles of Incorporation;(b) The Board of Directors will appoint an officer in charge of compliance, and the Group ComplianceDepartment will be under this officer’s control. The officer in charge of compliance and the Group
Compliance Department will be responsible for ensuring that the Company and its consolidated
subsidiaries (hereinafter referred to as the “Group”) implement necessary measures to strengthen
compliance;(c) The Company’s Group Compliance Department will appoint compliance committee members who do
not concurrently serve as Directors or officers at Group companies. Under the Company’s Group
Governance Division Manager, it will evaluate the appropriateness of their activities and nominate anddismiss committee members;(d) The Company will require all employees to adhere to laws, regulations, company rules, etc. in the
Company’s working rules and will organize compliance training periodically or whenever necessary
to raise Directors’ and employees’ compliance awareness;(e) The Company will establish a whistleblower system to ensure early detection and remedy of
inappropriate corporate activities and prevent similar incidents from happening again;(f) The Group Corporate Audit Department, as an internal audit department, will examine and assess theeffectiveness of the compliance system; and(g) The Auditors and the Board of Auditors will, if they recognize problems in the system of compliancewith laws and regulations and the Articles of Incorporation, request the Board of Directors to
implement measures to remedy such problems.

(ii) The system for preservation of information related to execution of duties by the Directors (information
preservation system)• The Company will implement a system to appropriately store and preserve documents such as the minutesof the general meetings of shareholders and of the Board of Directors, the preservation of which is astatutory requirement, and other important information, as follows:(a) In accordance with laws and regulations as well as the internal regulations on document management
and other internal regulations, the Company will appropriately store and preserve important documents
and electromagnetic digital media relating to execution of business by its Directors;(b) The Company will respond immediately to requests from Directors and Auditors to examine those
documents and media; and(c) The Company will manage information appropriately in accordance with internal regulations,
including regulations on information security management and on protection of personal information,and review such regulations from time to time.

- 14 -

(iii) The regulations and systems for management of risk of loss (risk management system)• The Company will implement a system to make necessary decisions and take necessary steps in response
to various risks that may arise during the course of business activities, as follows:(a) As for risk management during the normal course of business, risk management departments, assigned
for each risk, will manage risk to prevent risk-related incidents and reduce loss;(b) The Risk Management Committee, with the Group Compliance Department serving as its secretariat,
will summarize the results of risk assessment and analysis performed by each department in charge ofrisk management as well as the proposed countermeasures, verify the risk scenarios of each Group
company, and periodically report its findings to the Board of Directors. If risk becomes actualized andsubstantial damage can be expected, Directors must promptly report it to the Auditors;(c) In times of emergencies, the Disaster Response Headquarters will be established, with the President
acting as the head, to enable quicker decision-making and execution than during normal times. In
addition, it will prepare the basic regulations and manuals for business continuity in times of crisis(BCP basic regulations), BCP detailed regulations, disaster recovery handbook, etc., periodicallyrevise regulations and manuals, and plan and conduct disaster drills; and(d) The Group Corporate Audit Department will evaluate the effectiveness of risk management throughaudits of the departments in charge of risk based on risk scenarios in line with risk management points.
• The Company, with its commitment to quality of its operations as a way to embody “creation ofenvironmental value” enshrined in its Management Principle, will implement a system for maintaining andimproving quality so as to continue to prove popular with customers, as follows:(a) The Company will establish an Integrated Manual on Quality and Environment and review its contents
as needed.
(b) To ensure that operations are conducted based on such regulations and manuals on quality standards,
the Company will provide qualification education for ISO internal audits to all area and site managers.
Staffs who are certified for ISO internal audits will conduct mutual audits to measure the effectivenessof ISO internal audits.
(iv) The system for ensuring that Directors are executing their duties efficiently (system to ensure efficiency)• The Company will implement a system to ensure that Directors are executing their duties with efficiency,
as follows:(a) The Company will set out the rules of the Board of Directors and identify those issues that require theresolution of the Board and those issues that must be reported to the Board. As for other issues before
the Board, the Company will demarcate decision-making authority based on regulations on decisionmaking and on responsibilities and authority of the Directors. It will also set out clearly the divisionof labor for executing business operations within the organization and the boundaries of jobs andresponsibilities;(b) The Board of Directors will ensure that sufficient deliberation is made for decisions on importantmanagement issues and for overseeing management and execution of business operations. In addition,
the Company will promote efficiency in the execution of business operations by implementing theexecutive officer system. At the same time, the Company will promote efficient management of theGroup through deliberative bodies such as Management Committee, Branch Management Committee,
Domestic Group Management Committee, and Overseas Group Management Committee;(c) The Company has put in place a system that ensures the efficiency of management by including
multiple independent outside Directors on the Board of Directors to examine the proposals of the
management team from multiple angles and carry out effective supervision of the Directors, while
supporting swift and decisive decision making. To supervise the fairness of the execution of duties
and evaluate the appropriateness of such execution, the Board of Directors has established theNomination and Compensation Advisory Committee and the Evaluation Advisory Committee
composed of independent outside Directors as voluntary advisory committees.
(d) The basic concepts of the Company’s corporate governance, which have been outlined above, will be
set down in writing and disclosed in AEON delight Corporate Governance Guidelines.

- 15 -

The system to ensure fair business transactions within the corporate group consisting of the Company, its
parent company and subsidiaries (internal control within the corporate group)• Measures will be implemented for transactions between AEON delight and any of AEON Co., Ltd., AEONGroup companies, or AEON delight subsidiaries to prevent conflicts of interest and to ensure fairtransactions.
• Significant transactions in conflict of interest between controlling shareholders and minority shareholders
will be deliberated and examined in a special committee composed of independent outside Directors.
• The Group will implement a system for sharing its basic philosophy and principles and reinforcing internal
control within the Group, as follows:(a) The Company will set down the basic framework for governance of subsidiaries by parent companies
in the regulations on management of affiliated companies, including provisions on matters thatsubsidiaries must report to the parent company and matters requiring prior approval of the parent
company. The Company will also dispatch its Directors and Auditors to its subsidiaries to supervise
management of the subsidiaries;(b) In addition to receiving monthly performance reports from its subsidiaries, the Company will organize
the Domestic and Overseas Group Management Committee meetings, which include the Company’s
Directors and the Presidents of subsidiaries as members. Through this, the Company will take stockof the performance of its subsidiaries, and establish individual growth strategies, budget performance
management, and internal control systems as a part of Group governance;(c) The Group will operate its compliance and whistleblower system under a common, unified framework.
The Company will conduct annual compliance training for Directors and employees of the Group tofoster compliance awareness. The Group Compliance Department will work with the Compliance
Committee members appointed for each Group company to carry out activities that raise complianceawareness among the management and employees of each company. In addition, the Company will
ensure that all employees are aware of the Group’s whistleblower system and will operate it
independently of the management of each Group company;(d) As for internal control related to financial reporting, risk management, and internal audits, the Groupwill have basic policies implemented across the Group. On the other hand, it will also consider thenature, scope and complexity of the businesses of its subsidiaries so that it can determine the reportingand management systems of each of its subsidiaries; and(e) The Auditors and the Group Corporate Audit Department will regularly inspect the subsidiaries. In
conducting business operation audits, the Group Corporate Audit Department will place under close
scrutiny those subsidiaries that are considered high risk in light of past performance audits andwhistleblower incidents.

(v)(vi) Matters related to employees assisting the Auditors (assignment of auditor staff)• If requested by the Auditors, the Company will assign employees to work exclusively for the Auditors as
assistants.
• Such employees will follow the instructions of the Auditors and assist their work.
(vii) Matters related to the independence of employees assisting the Auditors from the Directors (independenceof auditor staff)• The Company must obtain prior approval of full-time Auditors or of the Board of Auditors on mattersrelated to the employment, selection, transfer, and other personnel decisions related to the employees
assisting the Auditors. Full-time Auditors will perform the performance evaluation of such employees.
• The Company must obtain prior approval of full-time Auditors or of the Board of Auditors before initiating
disciplinary action against employees working in the Audit Office.
(viii) The System for enabling Directors and employees to report to the Auditors and other matters related tomaking reports to the Auditors(Auditor reporting system)• The Directors and employees of the Group must report immediately to the Auditors or the Board ofAuditors if they discover or come to have knowledge of any fact that will have a significant impact on the- 16 -

••••Group’s business or business performance, or if they discover or come to have knowledge of any breachof laws and regulations or other compliance-related issues.
The Group Corporate Audit Department and Group Compliance Department will regularly report thestatuses of internal audits, compliance, and risk management of the Group to the Auditors of the Company.
The Auditors may attend the Board of Directors meetings and other important meetings related to the
management of the Company’s business and freely express their views.
The Group Compliance Department will be the office responsible for the Group’s whistleblower system.
The Auditors will, periodically or whenever necessary, receive reports from the office on the status ofwhistleblower reports made by the Group’s Directors and employees through the whistleblower system.
The Company prohibits anyone from unfavorably treating or taking retaliatory action against any Director
or employee of the Group or any user of the whistleblower system for having made a report to an Auditor
or for having used the whistleblower system. The Company will ensure that Directors and employees of
the Group are made fully aware of this prohibition.

(ix) Other systems for ensuring that the Auditors can execute their duties effectively (system for ensuring
effective audit by Auditors)• The Company will implement a system to ensure that the Auditors can conduct their audits effectively, as
follows:(a) To enable effective execution of audit duties, the Auditors will have regular meetings with the
President and exchange views on issues that need to be dealt with and other important issues pertaining
to the audit;(b) To enable effective execution of audit duties, the Auditors will work in close collaboration with theGroup Corporate Audit Department;(c) The Auditors will also exchange information with and work in close collaboration with the Financial
Auditors and with outside Directors; and(d) If requested by the Auditors to make a report or submit related documents and other materials on
matters within the remit of the Auditors, the Directors and employees of the Group will comply withthe request promptly and in good faith.
• The Company will meet reasonable requests made by the Auditors for payment of expenses required forexecution of their duties, as follows:(a) If requested by the Auditors to make advance payment of costs related to execution of their duties
pursuant to the provisions of the Companies Act, Article 388, the Company will promptly settle such
expenses or debt; and(b) The Company will allocate a certain amount of budget in advance for expenses that the Company
deems necessary for the Auditors to execute their duties. Contingencies paid by the Auditors will besettled afterward based on a claim made by the Auditors.
(x) System for eliminating anti-social forces• The Company will sever any and all ties with anti-social forces. If unfair claims are made against theCompany by anti-social forces, the Company will work with specialist outside organizations to take legal
steps as an organization.
• If it comes to light that a business partner of the Company is an anti-social force, has business dealings
with anti-social forces, or has resorted to violent and intimidating anti-social behavior, the Company will
immediately rescind all transactions and agreements with such business partner.
• The Company will appoint the Group Legal Affairs Department to handle requests from anti-social forces,
actively collect information from external organizations, and strive to eliminate anti-social forces.
(xi) Internal control system for financial reporting• The Company will set out the Regulations on Internal Control Related to Financial Reporting based on the
Company’s internal control and reporting system. The Company will work towards ensuring the accuracy
and reliability of financial reporting of the Group through education, supervision, and evaluation.
(2) Systems for ensuring fair business transactions and operation status of the system- 17 -

The Company is implementing and operating the internal control system based on the Basic Policy on the Internal
Control System mentioned above. The following is an overview of the operational status of the system to ensure
fair business transactions of the Company for the current fiscal year.
(i) The system to ensure that the execution of duties by its Directors and employees complies with laws andregulations and with the Company’s Articles of Incorporation (compliance system)• The Company has set out the rules of the Board of Directors and other internal regulations and appointed
the Executive Officer in charge of compliance to ensure that Directors act in compliance with laws,
regulations, and the Articles of Incorporation. The Board of Directors has held 17 meetings in the current
fiscal year to deliberate each proposal and supervise the execution of business operations. Moreover, theCompany is also providing officer compliance training to Directors and Executive Officers of the Company.
• The Executive Officer in charge of compliance has been appointed the Officer of Operation Control incompliance, and the Group Compliance Department is under this officer’s control. The Executive Officer
in charge of compliance and the Group Compliance Department implement measures necessary tostrengthen compliance of the Group and regularly report the status of those measures to the Board of
Directors.
• The Basic Regulations on AEON delight Group Compliance have been set out, and the officer anddepartment in charge of compliance have been appointed for each organization including Group companies
to raise compliance awareness across the Group.
• The Company requires all employees to adhere to laws, regulations, company rules, etc. in the Company’s
working rules and has distributed the booklet entitled Compliance Basics 2021 to raise employees’compliance awareness as an effort in the AEON Group as a whole.
• The Company has established a whistleblower system to ensure early detection and remedy of
inappropriate corporate activities and prevent similar incidents from happening again. The Group
Compliance Department, as the office to accept whistleblower reports, regularly makes reports on the statusof whistleblower reports to the Board of Directors.
In addition to the whistleblower system within the Company, an office to accept whistleblower reports for
the Group as a whole has also been established at an external attorney’s office.
• The Group Corporate Audit Department, as an internal audit department, examines and assesses theeffectiveness of the compliance system, and regularly reports the findings to the Board of Directors.
The system for preservation of information related to execution of duties by the Directors (information
preservation system)• For the minutes of the general meetings of shareholders, the minutes of the Board of Directors, and otherlegal documents as well as documents and information relating to execution of important duties, theCompany has set out the internal regulations on document management, AEON delight Group regulations
on information security management, AEON delight Group regulations on protection of personal
information, and other necessary regulations, and established a system to appropriately store and preserve
information in accordance with those regulations. In addition, the Company has implemented a system torespond immediately to requests from Directors and Auditors to examine those documents and media.

(ii)(iii) The regulations and systems for management of risk of loss (risk management system)• For risk management during the normal course of business, the Company has assigned departments incharge of each risk to prevent risk-related incidents and reduce loss. In addition, the Company has prepared
the Basic Regulations for Business Continuity in Times of Crisis (BCP Basic Regulations), the BCP
Detailed Regulations, and other regulations, as well as manuals including the Disaster Recovery Handbook,and plans and conducts disaster response drills in order to prepare for responses in case of disaster. A head
office disaster countermeasures headquarters and an on-site disaster countermeasures headquarters are
established in the event of a large-scale disaster, swiftly making decisions aimed at business continuity,
providing local support, and conducting restoration activities. For risks that may arise in terms of corporate
management and business, meetings of the Risk Management Committee, with the Group Internal Control
Department serving as its secretariat, shall be held to examine risk analysis and countermeasures, verify
the risk scenarios of each Group company, and periodically report the findings to the Board of Directors.
The Group Corporate Audit Department evaluates the effectiveness of risk management through audits ofthe departments responsible for risk.
- 18 -

• The Company has established the Integrated Manual on Quality and Environment for the maintenance andimprovement of the quality of its operations. In addition, to ensure that operations are conducted based on
the Integrated Manual on Quality and Environment, the Company is providing qualification education for
ISO internal audits focused on all site managers, and ISO internal auditors perform ISO internal audits(mutual audits with site managers as internal auditors) once per year, in order to measure the effectivenessof such audits.
(iv) The system for ensuring that Directors are executing their duties efficiently (system to ensure efficiency)• The Company has set out the rules of the Board of Directors and identified those issues that require theresolution of the Board, those that require discussion and those issues that must be reported to the Board.
As for other issues before the Board, the Company has demarcated decision-making authority based on
regulations on decision-making and on responsibilities and authority of the Directors. It has also set out
clearly the division of labor for executing business operations within the organization and the boundaries
of jobs and responsibilities.
• Through the appointment of four independent outside Directors out of the eight Directors in total, theCompany has put in place a system that ensures the efficiency of management by examining the proposalsof the management team from multiple angles and carrying out effective supervision of the Directors, while
supporting swift and decisive decision making.
• By clearly separating the supervisory functions of the Directors from those of the Executive Officers
through the introduction of the executive officer system, the Board of Directors is able to focus on important
decisions and supervisory functions, such as setting the management framework.
• To supervise the fairness of the execution of duties and evaluate the appropriateness of such execution, theBoard of Directors has established the Nomination and Compensation Advisory Committee and the
Evaluation Advisory Committee with a majority composed of independent outside Directors and chaired
by independent outside Directors as voluntary advisory committees.
• The Management Committee has been established as an organ for prior discussion of matters to besubmitted to the Board of Directors (mainly matters for resolution). On the execution side, the content (costeffectiveness, risk, etc.) is adequately examined to review the content and organize topics for discussion,and the system ensures rational decisions and active deliberation in the Board of Directors.
• Members of the Board of Directors (mainly outside Directors and outside Auditors) are provided with
explanations of the content of items to be presented to the Board of Directors in advance to provide themwith the necessary information. The system ensures the improvement of effectiveness and efficiency of theBoard of Directors by establishing a system for outside Directors and outside Auditors to obtain
information.
• The basic concepts of corporate governance have been set down in writing and disclosed in AEON delight
Corporate Governance Guidelines.
(v)
•

•

•

•

The system to ensure fair business transactions within the corporate group consisting of the Company, its
parent company and subsidiaries (internal control within the corporate group)
Measures have been implemented for transactions between AEON delight and any of AEON Co., Ltd.,AEON Group companies, or AEON delight subsidiaries to prevent conflicts of interest and to ensure fairtransactions through deliberation based on the rules of the Board of Directors and the regulations on
responsibilities and authority of the Directors.
The Company has established a special committee to deliberate and examine significant transactions inconflict of interest between controlling shareholders and minority shareholders. The committee iscomposed of independent outside Directors, providing a system ensuring independence from controllingshareholders and performing highly effective supervision.
The Company has set down matters that subsidiaries must report to the parent company and mattersrequiring prior approval of the parent company in the regulations on management of affiliated companies
and the regulations on responsibilities and authority in each Group company, and set out the basic
framework for governance of subsidiaries by parent companies. The Company also generally dispatches
its Directors and Auditors to its subsidiaries to supervise management of the subsidiaries.
In addition to receiving monthly performance reports from its subsidiaries, the Company has organized theDomestic and Overseas Group Management Committee meetings, which include the Company’s full-time- 19 -

•

•

•

•

Directors and the Presidents of subsidiaries as members. Through this, the Company is taking stock of theperformance of its subsidiaries, and establishing individual growth strategies, budget performance
management, and internal control systems as a part of Group governance.
The Group is operating its compliance and whistleblower system under a common, unified framework. In
the current fiscal year, the Company provided officer compliance training to the Presidents and officers ofsubsidiaries and AEON code of conduct executive training to executive staff to foster complianceawareness.
The Group has established a system for the corporate departments of the Group headquarters to directly
manage and guide subsidiaries concerning specialized areas in order to further strengthen groupmanagement.
For risk management for subsidiaries, the Group Internal Control Department as the department in charge
requests each company to submit a monthly risk report to conduct risk management for the Group as awhole.
The Company has implemented a system where the Group Corporate Audit Department regularly inspects
the subsidiaries. In addition, the Group Corporate Audit Department places under close scrutiny thosesubsidiaries that are considered high risk in light of past performance audits and whistleblower incidents,
and regularly reports their findings to the Board of Directors.

(vi) Matters related to employees assisting the Auditors (assignment of auditor staff)• The Company has assigned one employee to work exclusively for the Auditors as an assistant.
(vii) Matters related to the independence of employees assisting the Auditors from the Directors (independenceof auditor staff)• The Company will obtain prior approval of full-time Auditors or of the Board of Auditors on the transfer,
performance evaluation, disciplinary action, etc. of the employee assisting the Auditors.
(viii) The System for enabling Directors and employees to report to the Auditors and other matters related tomaking reports to the Auditors (Auditor reporting system)• The Directors and employees of the Company will promptly report to the Auditors if there has arisen any
fact that will have a significant impact on the Company’s business or business performance, or any breachof laws and regulations or other compliance-related issues.
• The Group Corporate Audit Department, Group Compliance Department and Group Internal Control
Department have implemented a system to regularly report the statuses of internal audits, compliance, andrisk management of the Group to the Auditors. In addition, the Group Compliance Department has been
assigned as the office responsible for the Group’s whistleblower system, and reports the status of theirwhistleblower reports to the Auditors regularly or whenever necessary.
• The Company has implemented a system where the Auditors may attend important meetings related to the
management of the Company’s business such as the Management Committee meetings, in addition to theBoard of Directors meetings, and freely express their views.
• The Company has set down in writing the protection of the user of the whistleblower system (hereinafterreferred to as the “reporter”) in the AEON delight Group Regulations on the Handling of Whistleblower
Reports. In these Regulations, the Company has also set down in writing the penalties imposed on persons
who unfavorably treated the reporter or took retaliatory action against the reporter.
(ix) Other systems for ensuring that the Auditors can execute their duties effectively (system for ensuring
effective audit by Auditors)• The President has regular meetings with Auditors at the request of the Board of Auditors and full-time
Auditors, and exchanges views on issues that need to be dealt with and other important issues pertaining
to the audit. In addition, the outside Directors regularly attend the Board of Auditors meetings to exchange
views.
• The Group Corporate Audit Department reports to Auditors on the state of implementation of internal audits
and closely coordinates such as exchanging opinions in a system contributing to the effective
implementation of audit operations.

- 20 -

• If requested by the Auditors to make a report or submit related documents and other materials on matterswithin the remit of the Auditors, the Directors and employees of the Group shall comply with the request
promptly and in good faith.
• The Company shall meet reasonable requests made by the Auditors for payment of expenses required forexecution of their duties.
(x) System for eliminating anti-social forces• The Company has set out regulations on handling anti-social forces, and has severed any and all ties with
anti-social forces. If unfair claims are made against the Company by anti-social forces, the Company shalltake legal steps. In addition, the Company shall set out provisions on the elimination of anti-social forcesin contracts for transactions. If any existing contracts have no provisions on the elimination of anti-social
forces, the Company shall incorporate such provisions in those contracts upon renewal. If a business partner
should fall within this criterion, the Company shall rescind all the applicable contracts immediately.
Furthermore, the Company has joined an external organization in which the Osaka Prefectural Police
provides guidance to companies on prevention of organized crime violence, and makes efforts to actively
collect information on and eliminate antisocial forces.
(xi) Internal control system for financial reporting• The Company has set out the Regulations on Internal Control Related to Financial Reporting based on the
Company’s internal control and reporting system, has implemented internal control related to financial
reporting, evaluates their operation, and submits the internal control report.

- 21 -

Consolidated Balance Sheet(As of February 28, 2023)(Millions of yen)
Assets
Items

Liabilities
AmountCurrent assets
Cash and deposits
Notes and accounts receivable - trade,and contract assets
Electronically recorded monetary claims
Securities
Inventories
Other
Allowance for doubtful accounts

129,534
57,600

Fixed assets
Tangible fixed assets
Buildings and structures, net
Tools, furniture and fixtures, net
Land
Other

21,093
6,499
1,494
2,967
434
1,604

Intangible fixed assets
Goodwill
Other

6,371
3,046
3,324

Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts

8,222
4,021
1,841
2,378
(19)

Total assets

47,065
8,825
7,008
2,363
6,766
(95)

150,628

Items

AmountCurrent liabilities
Notes and accounts payable - trade
Electronically recorded obligations operating
Short-term borrowings
Accounts payable
Income taxes payable
Provision for bonuses
Accrued directors’ and corporate
auditors’ remuneration
Allowance for sales discounts
Other
Fixed liabilities
Deferred tax liabilities
Provision for directors’ retirement
benefits
Retirement benefit liability
Asset retirement obligations
Allowance for sales discounts
Other

48,40625,901

Total liabilities

51,237

5,116
182
7,265
2,571
1,389
52
86
5,840
2,830
1,019
74
1,187
419
11
117

Net assets
Shareholder’s equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Other accumulated comprehensive
incomeValuation difference on securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share subscription rights
Non-controlling shareholders’ equity

95,983
3,238
4,739
91,421(3,415)

Total net assets

99,391

Total liabilities and net assets

150,628- 22 -

2,413
1,130
1,435
(153)
86
908

Consolidated Statement of Income(March 1, 2022 to February 28, 2023)(Millions of yen)
Items

AmountNet sales

303,776

Cost of sales

262,338

Gross profit
Selling, general and administrative expenses

41,43725,623Operating income
Non-operating income
Interest income
Dividends income
Equity in income of affiliates
Subsidy income
Other

15,814
42
77
94
126
104

446

Non-operating expenses
Interest expenses
Other

43
210

253

Ordinary income
Extraordinary income
Gain on sales of investment security
Subsidies for employment adjustment

16,00619
34

Extraordinary loss
Impairment loss
Loss due to response to new infections
Expenses for 50th anniversary

77
93
312

Income before income taxes
Income taxes
Income taxes-deferred

53

483
15,577

3,879
1,496

5,376

Net income
Net income attributable to non-controlling interests

10,20149

Net income attributable to owners of parent

10,152- 23 -

Consolidated Statement of Changes in Equity(March 1, 2022 - February 28, 2023)(Millions of yen)
Shareholders’ equity

Balance at beginning of period

Capital stock

Capital surplus

Retained earnings

Treasury stock

3,238

13,23986,559(10,077)

Cumulative effects of changes inaccounting policies
Restated balance(1,087)
3,238

13,23985,471

Total shareholders’equity92,958(1,087)(10,077)

91,871

Changes during period
Dividends of surplus(4,201)(4,201)

Net income attributable to ownersof parent

10,152

10,152

Purchase of treasury stock(1,850)(1,850)2

9

12(8,502)8,502–

Disposal of treasury stock
Cancellation of treasury stock
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period–(8,499)

5,950

6,661

4,112

3,238

4,739

91,421(3,415)95,983

Other accumulated comprehensive income
Valuationdifference on
securities
Balance at beginning of period

Foreign currency Remeasurements
translationof defined benefit
adjustments
plans

Total otheraccumulatedcomprehensive
income

921

961

(263)

1,619

921

961

(263)

1,619

Net changes in items other thanshareholders’ equity

209

474

110

793

Total changes during period

209

474

110

793

1,130

1,435

(153)

2,413

Cumulative effects of changes inaccounting policies
Restated balance
Changes during period
Dividends of surplus
Net income attributable to ownersof parent
Purchase of treasury stock
Disposal of treasury stock
Cancellation of treasury stock

Balance at end of period- 24 -

Share subscription
rightsBalance at beginning of period

86

Non-controllingshareholders’equityTotal net assets

757

95,421

Cumulative effects of changes inaccounting policies
Restated balance(1,087)86757

94,334

Changes during period
Dividends of surplus(4,201)

Net income attributable to ownersof parent

10,152

Purchase of treasury stock(1,850)

Disposal of treasury stock

12

Cancellation of treasury stock–

Net changes in items other thanshareholders’ equity

(0)

150

944

Total changes during period

(0)

150

5,057

Balance at end of period

86

908

99,391- 25 -

Notes to Consolidated Financial Statements

Notes to Significant Matters Forming the Basis for Preparing Consolidated Financial Statements
1. Scope of consolidation
Number of consolidated subsidiaries and names of major consolidated subsidiaries• Number of consolidated subsidiaries 26• Names of major consolidated subsidiaries
AEON DELIGHT ACADEMY CO., LTD.
AEON DELIGHT SECURITY CO., LTD.
AEON DELIGHT (CHINA) CO., LTD.
Kankyouseibi Co., Ltd.
AEON DELIGHT CONNECT CO., LTD.
AEON COMPASS CO., LTD.
AEON DELIGHT (MALAYSIA) SDN. BHD.
Aeon Delight (Jiangsu) Comprehensive Facility Management Service Co., Ltd.
AEON DELIGHT (VIETNAM) CO., LTD.
Wuhan Xiaozhu Comprehensive Facility Management Service Co., Ltd.
Hakuseisha CO., LTD.
AEON DELIGHT (SHANGHAI) COMPREHENSIVE FACILITY MANAGEMENT SERVICE CO.,LTD.
PT Sinar Jernih Sarana
Aqutia Co., Ltd.
Youkemu Design Consulting (Shenzhen) Co., Ltd.
Zhejiang Metelan Property Management Co., Ltd.
Ten other companies
During the current fiscal year, Zhejiang Metelan Property Management Co., Ltd. is included in the scope of
consolidation due to the acquisition of an equity stake to make it a subsidiary by AEON DELIGHT (CHINA)
CO., LTD., the Company’s subsidiary.
Furthermore, during the current fiscal year, U COM MALAYSIA SDN. BHD. was excluded from the scopeof consolidation due to liquidation.
2. Application of equity method
There are three associates accounted for using the equity method, and financial statements based on a provisional
settlement of accounts are used for those whose closing dates differ from the consolidated closing dates.
There are two associates not subject to application of the equity method, and they are excluded from the scopeof application of the equity method due to the insignificant effect on the consolidated financial statements interms of net income or loss (amount corresponding to equity) and retained earnings (amount corresponding toequity), etc., respectively, and the lack of importance as a whole even when excluded from the equity method.
3. Fiscal years, etc. of consolidated subsidiaries
Among the consolidated subsidiaries, the closing date of 19 companies including AEON DELIGHT (CHINA)
CO., LTD. is December 31.
Consolidated financial statements are prepared by using financial statements as of the same date. Adjustments
necessary for consolidation are made for significant transactions that have occurred during the period between
then and the consolidated closing date.
Fiscal year-ends of consolidated subsidiaries other than the above are the same as the consolidated closing dates.
4. Accounting policies(1) Valuation standards and methods for significant assets(i) Valuation standards and methods for securities
Held-to-maturity bonds:
Stated at amortized cost (straight-line method)- 26 -

Other securities
Securities other than shares, etc. without market prices:Stated at fair value (valuation differences are reported as acomponent of net assets, and the cost of securities sold is
calculated by the moving-average method)
Shares, etc. without market prices:Stated at cost using the moving-average method(ii) Valuation standards and methods for inventories
Merchandise: Stated at cost using the weighted-average method (the book value stated in the balance sheet
is written down based on the decreased profitability)
Raw materials and supplies
Materials:
Stated at cost using the first-in first-out (FIFO) method (the book value stated in the balance
sheet is written down based on the decreased profitability)
Supplies:
Stated at last purchase price method (the book value stated in the balance sheet is written
down based on the decreased profitability)(2) Depreciation method for significant depreciable assets(i) Tangible fixed assets (excluding leased assets): mainly straight-line method
The main useful lives are as follows:
Buildings
3 to 47 years
Area management facility equipment
6 to 15 years
Furniture and fixtures
3 to 20 years(ii) Intangible fixed assets (excluding leased assets): straight-line method
Goodwill is amortized over a 5- to 20-year period.
In regard to software for internal use, the straight-line method based on the internal usable period (5 years)
is applied.
(iii) Leased assets:
Leased assets in finance lease transactions that do not transfer ownership are depreciated using the straightline method assuming that lease periods are useful lives and residual values are zero.
(3) Accounting method for significant provisions(i) Allowance for doubtful accounts:
To prepare for loss from uncollectible credits such as notes and accounts receivable-trade, the estimateduncollectible amount is recorded based on actual bad debts with respect to general receivables, and basedon individual examinations of recoverability with respect to specific receivables such as debt claims withdefault potential.
(ii) Provision for bonuses:
To provide for expenses of bonuses to be paid to employees, the estimated amount of payment
corresponding to the current fiscal year is recorded.
(iii) Accrued directors’ and corporate auditors’ remuneration:
To provide for performance-based remuneration to be paid to directors and corporate auditors, an amountdeemed to be accrued at the end of the current fiscal year is recorded.
(iv) Provision for directors’ retirement benefits:
To provide for directors’ retirement benefits of subsidiaries, the full necessary payment amount at the endof the fiscal year is recorded based on internal regulations.
(v) Allowance for sales discounts:
To prepare for sales discounts, etc. anticipated to be conducted in the future, the estimated amount isrecorded.

- 27 -

(4) Accounting standards for material revenue and expenses
The details of principal performance obligations and the normal time when the performance obligations are
satisfied (the normal time of recognition of revenue) in major businesses related to revenue arising fromcontracts with customers of the Company and consolidated subsidiaries are as follows.
(i) Facility management business, security business, cleaning businessIn the facility management business, security business and cleaning business, the Company has
performance obligations to provide building and facility upkeep, inspection and maintenance services,
general security services such as facility security, crowd and traffic guidance and security, and security fortransportation of valuables, and building and facility cleaning services, and revenue is recognized whenjudged that the performance obligations have been satisfied upon the completion of each task. However,revenue is recognized equally over the contract period for constant services for a partial contract period
because performance obligations are satisfied equally over a certain period.
(ii) Construction work businessIn the construction work business, there are performance obligations to provide planning, design andconstruction of large-scale renovations and store interior design, and the performance obligations are
determined to be satisfied over a certain period, with progress of the satisfaction of the progress obligations
being estimated, and revenue being recognized based in the progress. For work contracts with a very shortperiod, performance obligations are determined to be satisfied and revenue is recognized upon delivery ofcompleted work.
(iii) Material-related business and vending machine businessIn the material-related business and vending machine business, there are performance obligations to deliverproducts to customers mainly by purchasing indirect materials, procuring materials, etc. and selling
products through beverage vending machines, and performance obligations are determined to be satisfied
and revenue is recognized at the time control over products is obtained by the customer. Of these productsales, revenue is recognized for those for which the Company’s role is determined to be that of an agent
such as consignment buying using the net amount obtained by deducting the amount paid to the supplierfrom the total amount of consideration received from the customer.
(5) Standard for translation of significant assets or liabilities denominated in foreign currencies into JapaneseyenForeign currency-denominated monetary receivables and payables are translated into Japanese yen at the
spot exchange rate on the consolidated closing date, and the difference arising from exchange is treated as
profit or loss. Assets and liabilities of overseas subsidiaries, etc. are translated into Japanese yen at the spot
exchange rate on the closing date. Revenue and expenses are translated into Japanese yen at the averageexchange rate during the period. The difference arising from exchange is recorded by including in foreign
currency translation adjustments and non-controlling shareholders’ equity under net assets.
(6) Other significant matters forming the basis for preparing consolidated financial statements
Accounting standards for retirement benefit liability
To prepare for employees’ retirement benefits, retirement benefit liability is recorded at the amountremaining after deducting pension assets from retirement benefit obligations based on the estimated amountat the end of the current fiscal year. In calculating retirement benefit obligations, the benefit formula standard
is used as the method to attribute the estimated payment obligation to the period until the end of the current
fiscal year.
Actuarial gains and losses are amortized by the straight-line method over a certain number of years (5 to 10
years) within the average remaining service period of employees at the time of occurrence of each fiscal
year, commencing from the following fiscal year of the occurrence. Actuarial gains and losses for certain
consolidated subsidiaries are expensed in full amount at the time of occurrence.
Any untreated amount of unrecognized actuarial gains and losses is recorded in the remeasurements ofdefined benefit plans of other accumulated comprehensive income under net assets, after adjusting for tax
effects.

- 28 -

5.

Changes in accounting policies(Application of Accounting Standard for Revenue Recognition, etc.)
The Company adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020), etc. from the beginning of the current fiscal year and recognized revenue when control of promised goods
or services is transferred to customers at an amount that it expects to receive in exchange for those goods orservices.
As a result, for a part of the material-related business and the vending machine business, the Company haschanged from recognizing revenue in the total amount of consideration received from customers to recognizing
revenue in the net amount calculated by subtracting the amount paid to suppliers from the total amount. In
addition, for a part of the facilities management business, we have changed the method of recognizing revenue
at one point of service provision from that in which we recognized revenue over a certain period of time basedon the contract. Accordingly, the corresponding cost of sales is also systematized from the previous simplified
accounting treatment, which is in line with the accounting treatment of recognizing revenue at a point in time
when services are rendered.
The application of the Accounting Standard for Revenue Recognition, etc., are conformable to the transitional
treatment stipulated in the proviso to paragraph 84 of the Accounting Standard for Revenue Recognition, and thecumulative effect of retrospectively applying a new accounting policy prior to the beginning of the current fiscal
year has been adjusted to retained earnings at the beginning of the current fiscal year, and the new accounting
policy has been applied from the beginning balance of the current fiscal year. However, the new accounting
policy has not been retroactively applied to contracts that apply the methods set forth in paragraph 86 of the
Accounting Standard for Revenue Recognition and that recognize almost all revenue amounts in accordancewith previous treatment prior to the beginning of the current fiscal year. Moreover, the method stipulated in item
(2) of the supplementary provisions of paragraph 86 of the Accounting Standard for Revenue Recognition has
been applied and accounting is done based on the terms and conditions of the contract after reflecting all contractchanges made prior to the beginning of the current fiscal year. The cumulative effect has been adjusted to retained
earnings at the beginning of the current fiscal year.
As a result, net sales for the current fiscal year decreased 35,459 million yen, cost of sales decreased 35,470
million yen, and operating income, ordinary income and income before income taxes increased 11 million yen,respectively. The balance of retained earnings at the beginning of the current fiscal year decreased 1,087 million
yen.
Due to the application of the Accounting Standard for Revenue Recognition, etc., “notes and accounts receivable”
indicated in the “current assets” in the consolidated balance sheet in the previous fiscal year has been includedin the “notes and accounts receivable - trade, and contract assets” from the current fiscal year.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,
July 4, 2019), etc. from the beginning of the current fiscal year, and have decided to prospectively apply the new
accounting policy established by the Accounting Standard for Fair Value Measurement, etc., in accordance withthe transitional treatment specified in paragraph 19 of the Accounting Standard for Fair Value Measurement andparagraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019).
The adoption of the Accounting Standard for Fair Value Measurement, etc. did not have a material impact on the
consolidated financial statements.

- 29 -

Notes to Consolidated Balance Sheet
1. Assets pledged as collateral
Investment securities¥34 million

2. Accumulated depreciation of tangible fixed assets¥15,908 million

3. Breakdown of inventories
MerchandiseWork in process
Raw materials and supplies¥1,877 million¥249 million¥237 million

4.

Breakdown of notes and accounts receivable - trade, and contract assets
Notes receivable - trade¥3,631 million
Accounts receivable - trade¥42,695 million
Contract assets¥738 million

5.

Contract liabilities
The amount of contract liabilities included in “Other” under current liabilities on the consolidated balance sheetsis as follows.
Contract liabilities¥1,716 million

Notes to Consolidated Statement of Income
1. Subsidies for employment adjustment
Subsidies for employment adjustment, etc. in regard to COVID-19 are recorded under extraordinary income.
2. Details of impairment loss
Use

Location

Business assets

Kanagawa PrefectureClass

Impairment loss (million yen)

Buildings

44

Land

32

Total

77

The Group’s business assets are grouped based mainly on business categories of management accounting.
Since recovery of investment cannot be expected due to a decrease in profitability for the above-mentioned
business assets, the carrying amount of assets of the asset group was reduced down to the recoverable value.
Such reduced amount was recorded as an impairment loss under extraordinary loss. The recoverable value ismeasured by net sale value and ones that cannot expect salability is set at zero.
3. Loss due to response to new infections
Due to the spread of COVID-19, facilities such as stores that the Group entrusts and manages were temporarilyclosed and operating hours shortened. As a result, work compensation benefits, etc. paid to employees arerecorded under extraordinary loss as loss due to response to new infections.
4. Expenses for 50th anniversary
The expenses for granting the Company’s shares to employees of the Company and its subsidiaries in Japanthrough the employee shareholding association to mark the 50th anniversary of the Company’s founding wererecorded as an extraordinary loss.

- 30 -

Notes to Consolidated Statement of Changes in Equity
1. Class and total number of issued shares at the end of the current fiscal year
Ordinary shares
50,669,633 shares
2. Treasury stock
Classes of shares

Number of shares at the
beginning of the current
fiscal year (shares)

Ordinary shares

4,148,409

Increase (shares)

Decrease (shares)

625,338(Note 1) The breakdown of the increase in number is as follows:
Increase due to market purchases
Increase due to purchase of shares less than one share unit
(Note 2) The breakdown of the decrease in number is as follows:
Decrease due to cancellation of treasury stock
Decrease due to exercise of share subscription rights

Number of shares at theend of the current fiscal
year (shares)

3,503,700

1,270,047

625,300 shares
38 shares
3,500,000 shares
3,700 shares

3. Dividends of surplus(1) Dividend payment
Total amount of
Dividend per share
dividends(yen)(million yen)

Resolution

Classes of shares

April 7, 2022
Board of Directors’
meeting

Ordinary shares

2,100

October 4, 2022
Board of Directors’
meeting

Ordinary shares

2,100

Record date

Effective date

42.00

February 28, 2022

May 6, 2022

42.00

August 31, 2022

November 7, 2022

(2) Dividends of which the record date falls within the current fiscal year and the effective date falls later than thecurrent fiscal year-end
Classes of shares

Source ofdividends

Total amount ofdividends(million yen)

April 11, 2023
Board of Directors’ Ordinary shares
meeting

Retainedearnings

2,124

Resolution

Dividend pershare (yen)

4. Share subscription rights
Class and number of shares subject to share subscription rights
Ordinary shares- 31 -

Record date

43.00 February 28, 2023

31,000 shares

Effective date

May 8, 2023

Notes on Financial Instruments
1. Matters regarding status of financial instruments
The Group limits its asset management mainly to financial assets with a high level of safety. Funds are procured
primarily through own funds.
In regard to trade receivables such as notes and accounts receivable, the Group regularly monitors the status ofcustomers and manages due dates and outstanding balances by customer. The Group also promptly detects any
concerns over collection due to deterioration of financial position, etc. and mitigates default risks.
Securities and investment securities are mainly held-to-maturity bonds and shares of companies that havebusiness relations with the Company. Market prices are determined every quarter for securities with available
market prices.
Trade payables such as notes and accounts payable - trade have payment dates due within one year.
Short-term borrowings are procurement associated with working capital.
2. Fair values of financial instruments
The amounts recorded on the consolidated balance sheet, fair values, and the difference between them are as
follows.
(Millions of yen)Amount recorded on the
consolidated balance
sheet

Fair value

Difference(1) Securities and investment securities(i) Held-to-maturity bonds

7,008(ii) Other securities
Total assets

7,008

–

3,397

3,397

–

10,405

10,405–(Note 1)“Cash and deposits,” “notes and accounts receivable - trade, and contract assets,” “electronically recordedmonetary claims,” “notes and accounts payable - trade,” “electronically recorded obligations - operating,”“short-term borrowings,” “accounts payable,” and “income taxes payable” are omitted because the fairvalues are approximately equal to the carrying amounts due to being cash and settled within a short periodof time.
(Note 2)Shares, etc. without market prices are not included in (1) “Securities and investment securities.” The amountrecorded on the consolidated balance sheet for the financial instruments is as follows.
Type

Current fiscal year (million yen)

Unlisted shares

3.

624

Matters regarding the breakdown table, etc. for each appropriate fair value classification of financial
instruments
The fair values of financial instruments are classified into the three following levels according to observability
and significance of inputs pertaining to calculation of fair value.
Level 1 fair value:
Fair value calculated using calculation of market price related to observable inputs
for calculation of fair value that are assets or liabilities subject to calculation of thefair value formed in an active market
Level 2 fair value:
Fair value calculated using observable inputs for calculation of fair value that are
inputs for calculation of fair value other than Level 1
Level 3 fair value:
Fair value calculated using inputs for calculation of unobservable fair value
When using multiple inputs that have a significant effect on calculation of fair value, the fair value is classified
in the level to which each of the inputs belongs that has the lowest priority in the calculation of fair value.

- 32 -

(1) Financial instruments recorded on the consolidated balance sheet at fair value(Millions of yen)
Fair value
Type

Level 1

Level 2

Level 3

Total

Securities and investment securities
Other securities
SharesTotal assets

3,397

–

–

3,397

3,397

–

–

3,397

(2) Financial instruments other than financial instruments recorded on the consolidated balance sheet at fair value(Millions of yen)
Fair value
Type

Level 1

Level 2

Level 3

Total

Securities and investment securities
Held-to-maturity bonds
Bonds

–

2,008

–

2,008

Other

–

4,999

–

4,999

–

7,008

–

7,008

Total assets(Note) Valuation method used for calculation of fair value and explanation of inputs for calculation of fair value
Securities and investment securities
The fair values of these are based on prices on exchanges for shares. The fair values of listed shares traded on
active markets are classified in Level 1. Meanwhile, the fair values of bonds and other securities with low
market transaction frequency that are not recognized as having a market price on an active market are classified
in Level 2.

- 33 -

Notes on revenue recognition
1.

Information separating revenue arising from contracts with customers(Millions of yen)
Reportable segments
Facility
manageme
nt business

Securitybusiness

Cleaning
business

Construction workbusiness

Materialrelated
business

Vending
machinebusiness

Supportbusiness

Net sales

64,79449,47868,33652,08441,544

9,466

18,070303,776

Revenue arising fromcontracts withcustomers

64,79449,47868,33652,08441,544

9,466

18,070303,776

Sales to externalcustomers

64,79449,47868,33652,08441,544

9,466

18,070303,776

2.

Total

Information forming the basis for understanding revenue arising from contracts with customers
This is stated in “Consolidated Financial Statements. Notes to Significant Matters Forming the Basis for
Preparing Consolidated Financial Statements 4. Accounting policies (4) Accounting standards for material
revenue and expenses.”

Information for understanding the amount of revenue for the current fiscal year and from the following
fiscal year
(1) Balance of contract assets and contract liabilities, etc.

3.

(Millions of yen)
Current fiscal year
Receivables arising from contracts with customers(balance at beginning of period)

44,929Receivables arising from contracts with customers(balance at end of period)

55,152Contract assets (balance at beginning of period)

92

Contract assets (balance at end of period)

738

Contract liabilities (balance at beginning of period)

1,770

Contract liabilities (balance at end of period)

1,716

Contract assets are related to the rights of the Company and consolidated subsidiaries for consideration pertaining
to the performance obligations for providing services based on contracts with customers in the facility
management business, security business and cleaning business where work has been completed but an invoice
has not been issued as of the end of the period. Contract assets are transferred to receivables arising from contracts
with customers at the time the rights of the Company and consolidated subsidiaries for consideration become
unconditional.
Contract liabilities are related to contracts with customers where an advance has been received from the customer.
Contract liabilities are reversed as revenue is recognized.
(2) Transaction price allocated to residual performance obligations
A practical expedient is applied and information on residual performance obligations has been omitted because
the Group has no material contracts with a contract period initially anticipated to exceed one year. Furthermore,
there are no material amounts not included in transaction prices within the consideration arising from contracts
with customers.

- 34 -

Notes on Per Share Information
Net assets per share
Net income per share
Diluted net income per share¥1,991.86¥203.54¥203.40

Notes on Significant Subsequent Events(Business Combinations through Acquisition of Shares)
The Company resolved to acquire all shares of Ask Maintenance Co., Ltd. in the meeting of the Board of
Directors held on March 28, 2023, and concluded a share transfer agreement on the same date.
Overview of the business combination(i) Name and details of business of the company to be acquired
Name of company to be acquired:
Ask Maintenance Co., Ltd.
Details of business:
Cleaning, facility management, condominium management,
construction work, etc.
(ii) Main reasons for the business combination
The purpose of making Ask Maintenance Co., Ltd. a consolidated subsidiary is to accelerate the formationof a regional economic zone of facility management in the Kyushu area.
(iii) Business combination date (scheduled)
April 27, 2023(iv) Number of shares acquired and holding ratio after acquisition
Number of shares acquired
340 shares
Holding ratio after acquisition100%- 35 -

Non-consolidated Balance Sheet(As of February 28, 2023)(Millions of yen)
Assets
Items

Liabilities
AmountCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade and contract
assetsElectronically recorded monetary claims
Securities
Inventories
Prepaid expenses
Short-term loans receivable tosubsidiaries and associates
Accounts receivable-other
Other
Allowance for doubtful accounts
Fixed assets
Tangible fixed assets
Buildings
Area management facility equipment
Tools, furniture and fixtures
Land
Construction in progress
Other
Intangible fixed assets
Goodwill
Software
Other
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Investments in capital of subsidiaries andassociates
Long-term loans receivable
Distressed receivables
Long-term prepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts

98,58338,6803,389

Total assets

136,279

33,572
8,601
7,008
2,058
544
1,150
579
3,756
(757)
37,696
4,965
1,220
1,072
2,321
40
97
212
5,136
2,195
2,670
269
27,5942,321
13,012
8,795
18
2
548
1,913
994
(13)

Items

AmountCurrent liabilities
Notes payable - trade
Electronically recorded obligations operating
Accounts payable - trade
Accounts payable
Accrued expenses
Income taxes payable
Advances received
Deposits received
Provision for bonuses
Accrued directors’ and corporate
auditors’ remuneration
Allowance for sales discounts
Other
Fixed liabilities
Asset retirement obligations
Allowance for sales discounts
Other45,079727

Total liabilities

45,435

5,065
22,324
4,328
130
2,094
555
7,916
901
14
86
934
355
300
11
43

Net assets
Shareholder’s equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Treasury stock
Valuation and translation adjustments
Valuation difference on securities
Share subscription rights

89,822
3,238
11,161
2,963
8,197
78,839395
78,443
7,120
71,323(3,415)935
935
86

Total net assets

90,844

Total liabilities and net assets

136,279- 36 -

Non-consolidated Statement of Income(March 1, 2022 to February 28, 2023)(Millions of yen)
Items

AmountNet sales

243,670

Cost of sales

213,718

Gross profit
Selling, general and administrative expenses

29,951
17,121

Operating income
Non-operating income
Interest income
Dividends income
Other12,830
18
451
35

505

Non-operating expenses
Interest expenses
Provision of allowance for doubtful accounts
Other

3
100
98

202

Ordinary income
Extraordinary income
Gain on sales of investment security

13,13218

Extraordinary loss
Impairment loss
Expenses for 50th anniversary

77
231

Income before income taxes
Income taxes
Income taxes-deferred

18

308
12,843

2,897
1,454

Net income

4,351
8,491

- 37 -

Non-consolidated Statement of Changes in Equity(March 1, 2022 to February 28, 2023)(Millions of yen)
Shareholders’ equity
Capital surplus
Share capital
Legal capital surplus
Balance at beginning of period

Other capital surplus

Total capital surplus

3,238

2,963

16,697

19,660

3,238

2,963

16,697

19,6602

2(8,502)(8,502)

Cumulative effects of changes inaccounting policies
Restated balance
Changes during period
Dividends of surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Cancellation of treasury stock
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period––(8,499)(8,499)

3,238

2,963

8,197

11,161

Shareholders’ equity
Retained earnings
Other retained earnings
Legal retained
earnings
Balance at beginning of period

395

Total retained
Retainedearnings
earnings
brought forward

Generalreserve
7,120

Treasury stock

Total
shareholders’equity(10,077)

88,412

68,07575,591(1,042)(1,042)

67,03374,549Dividends of surplus(4,201)(4,201)(4,201)

Net income

8,491

8,491

8,491

Cumulative effects of changes inaccounting policies
Restated balance

395

7,120

(1,042)(10,077)

87,370Changes during period

Purchase of treasury stock(1,850)(1,850)

Disposal of treasury stock

9

12

8,502

–

Cancellation of treasury stock
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

–

–

4,290

4,290

6,661

2,452

395

7,120

71,32378,839(3,415)89,822- 38 -

Valuation and translation adjustments
Valuation difference on Total valuation andsecurities
translation adjustments
Balance at beginning of period

899

899

Share subscription
rightsTotal net assets

86

89,397

Cumulative effects of changes inaccounting policies
Restated balance(1,042)
899

899

86

88,355

Changes during period
Dividends of surplus(4,201)

Net income

8,491

Purchase of treasury stock(1,850)

Disposal of treasury stock

12

Cancellation of treasury stock–

Net changes in items other thanshareholders’ equity

36

36

(0)

36

Total changes during period

36

36

(0)

2,489

Balance at end of period

935

935

86

90,844- 39 -

Notes to Non-consolidated Financial Statements

Notes to Matters Regarding Significant Accounting Policies
1. Valuation standards and methods for assets(1) Valuation standards and methods for securities(i) Shares of subsidiaries and associates: Stated at cost using the moving-average method(ii) Other securities
Securities other than shares, etc. without market prices:Stated at fair value (valuation differences are reported as acomponent of net assets, and the cost of securities sold is
calculated by the moving-average method)
Shares, etc. without market prices:Stated at cost using the moving-average method(2) Valuation standards and methods for inventories(i) Merchandise: Stated at cost using the weighted-average method (the book value stated in the balance sheet
is written down based on the decreased profitability)(ii) Raw materials and supplies
Materials:
Stated at cost using the first-in first-out (FIFO) method (the book value stated in the balance
sheet is written down based on the decreased profitability)
Supplies:
Stated at last purchase price method (the book value stated in the balance sheet is written
down based on the decreased profitability)
2. Accounting policy for depreciation of assets(1) Tangible fixed assets (excluding leased assets):
The main useful lives are as follows:
Buildings
Area management facility equipment
Furniture and fixtures

straight-line method
3 to 47 years
6 to 15 years
3 to 20 years(2) Intangible fixed assets (excluding leased assets): straight-line method
Goodwill is amortized over a 20-year period.
In regard to software for internal use, the straight-line method based on the internal usable period (5 years)
is applied.
(3) Leased assets:
Leased assets in finance lease transactions that do not transfer ownership are depreciated using the straightline method assuming that lease periods are useful lives and residual values are zero.
3. Accounting policy for provisions(1) Allowance for doubtful accounts:
To prepare for loss from uncollectible credits such as notes and accounts receivable-trade, the estimateduncollectible amount is recorded based on actual bad debts with respect to general receivables, and based on
individual examinations of recoverability with respect to specific receivables such as debt claims with default
potential.
(2) Provision for bonuses:
To provide for expenses of bonuses to be paid to employees, the estimated amount of payment corresponding
to the current fiscal year is recorded.

- 40 -

(3) Accrued directors’ and corporate auditors’ remuneration:
To provide for performance-based remuneration to be paid to directors and corporate auditors, an amountdeemed to be accrued in the current fiscal year is recorded.
(4) Provision for retirement benefits:
To prepare for retirement benefits of employees, the amount is recorded based on the estimated amounts ofretirement benefit obligations and pension assets in the current fiscal year. In calculating retirement benefit
obligations, the benefit formula standard is used as the method to attribute the estimated payment obligation
to the period until the current fiscal year.
Actuarial gains and losses are amortized by the straight-line method over a certain number of years (10years) within the average remaining service period of employees at the time of occurrence of each fiscal
year, commencing from the following fiscal year of the occurrence.
(5) Allowance for sales discounts:
To prepare for sales discounts, etc. anticipated to be conducted in the future, the estimated amount is recorded.
4.

Accounting standards for revenue and expenses
The details of principal performance obligations and the normal time when the performance obligations are
satisfied (the normal time of recognition of revenue) in major businesses related to revenue arising fromcontracts with customers of the Company are as follows.
(i) Facility management business, security business, cleaning businessIn the facility management business, security business and cleaning business, the Company has
performance obligations to provide building and facility upkeep, inspection and maintenance services,
general security services such as facility security, crowd and traffic guidance and security, and security fortransportation of valuables, and building and facility cleaning services, and revenue is recognized whenjudged that the performance obligations have been satisfied upon the completion of each task. However,revenue is recognized equally over the contract period for constant services for a partial contract period
because performance obligations are satisfied equally over a certain period.
(ii) Construction work businessIn the construction work business, there are performance obligations to provide planning, design andconstruction of large-scale renovations and store interior design, and the performance obligations are
determined to be satisfied over a certain period, with progress of the satisfaction of the progress obligations
being estimated, and revenue being recognized based in the progress. For work contracts with a very shortperiod, performance obligations are determined to be satisfied and revenue is recognized upon delivery ofcompleted work.
(iii) Material-related business and vending machine businessIn the material-related business and vending machine business, there are performance obligations to deliverproducts to customers mainly by purchasing indirect materials, procuring materials, etc. and selling
products through beverage vending machines, and performance obligations are determined to be satisfied
and revenue is recognized at the time control over products is obtained by the customer. Of these productsales, revenue is recognized for those for which the Company’s role is determined to be that of an agent
such as for consignment buying using the net amount obtained by deducting the amount paid to the supplierfrom the total amount of consideration received from the customer.

5.

Other significant matters forming the basis for preparing non-consolidated financial statements
Accounting for retirement benefits
The method of accounting for untreated amount of unrecognized actuarial gains and losses in regard to
retirement benefits is different from that of consolidated financial statements.

- 41 -

6.

Changes in accounting policies(Application of Accounting Standard for Revenue Recognition, etc.)
The Company adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,
2020. Hereafter “Accounting Standard for Revenue Recognition.”), etc. from the beginning of the current fiscal
year and recognized revenue when control of promised goods or services is transferred to customers at an amountthat it expects to receive in exchange for those goods or services.
As a result, for a part of the material-related business and the vending machine business, the Company haschanged from recognizing revenue in the total amount of consideration received from customers to recognizing
revenue in the net amount calculated by subtracting the amount paid to suppliers from the total amount. In
addition, for a part of the facilities management business, we have changed the method of recognizing revenue
at one point of service provision from that in which we recognized revenue over a certain period of time basedon the contract. Accordingly, the corresponding cost of sales is also systematized from the previous simplified
accounting treatment, which is in line with the accounting treatment of recognizing revenue at a point in time
when services are rendered.
The application of the Accounting Standard for Revenue Recognition, etc., are conformable to the transitional
treatment stipulated in the proviso to paragraph 84 of the Accounting Standard for Revenue Recognition, and thecumulative effect of retrospectively applying a new accounting policy prior to the beginning of the current fiscal
year has been adjusted to retained earnings at the beginning of the current fiscal year, and the new accounting
policy has been applied from the beginning balance of the current fiscal year. However, the new accounting
policy has not been retroactively applied to contracts that apply the methods set forth in paragraph 86 of the
Accounting Standard for Revenue Recognition and that recognize almost all revenue amounts in accordancewith previous treatment prior to the beginning of the current fiscal year. Moreover, the method stipulated in item
(2) of the supplementary provisions of paragraph 86 of the Accounting Standard for Revenue Recognition has
been applied and accounting is done based on the terms and conditions of the contract after reflecting all contractchanges made prior to the beginning of the current fiscal year. The cumulative effect has been adjusted to retained
earnings at the beginning of the current fiscal year.
As a result, net sales for the current fiscal year decreased 35,420 million yen, cost of sales decreased 35,439
million yen, and operating income, ordinary income and income before income taxes increased 18 million yen,respectively. The balance of retained earnings at the beginning of the current fiscal year decreased 1,042 million
yen.
Due to the application of the Accounting Standard for Revenue Recognition, etc., “accounts receivable” indicatedin the “current assets” in the balance sheet in the previous fiscal year has been included in the “accounts
receivable - trade and contract assets” from the current fiscal year.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The description of application of Accounting Standard for Fair Value Measurement, etc. has been omitted
because the content is the same as “Consolidated Financial Statements. Notes to Significant Matters Forming theBasis for Preparing Consolidated Financial Statements 5. Changes in accounting policies (Application of
Accounting Standard for Fair Value Measurement, etc.).”- 42 -

Notes to Non-consolidated Balance Sheet
1. Assets pledged as collateral
Shares of subsidiaries and associates
Investment securities¥29 million¥5 million

2. Guarantee obligations
Guarantee is provided to the following subsidiaries and associates.
PT Sinar Jernih Sarana¥101 million
3. Accumulated depreciation of tangible fixed assets¥12,300 million

4. Monetary receivables from and payables to subsidiaries and associates (excluding those presented
separately)
Short-term monetary receivables¥464 million
Short-term monetary payables¥10,139 million
5. Breakdown of inventories
MerchandiseWork in process
Raw materials and supplies¥1,863 million¥141 million¥53 million

Notes to Non-consolidated Statement of Income
Amount of transactions with subsidiaries and associates
Amount of operating transactions
Net sales
Purchase of goods
Selling, general and administrative expenses
Amount of non-operating transactions¥2,039 million¥20,509 million¥1,848 million¥411 million

Notes to Non-consolidated Statement of Changes in Equity
Class and number of shares of treasury stock at the end of the current fiscal year
Ordinary shares
1,270,047 shares- 43 -

Notes on Tax Effect Accounting
1.

Breakdown of deferred tax assets and liabilities by main cause(Millions of yen)
Deferred tax assets
Provision for bonuses
Allowance for doubtful accounts:
Enterprise tax payable, etc.
Accounts payable
Shares of subsidiaries and associates
Investments in capital of subsidiaries and associates
Other
Subtotal of deferred tax assets
Valuation allowance in regard to deductible temporary differences
Subtotal of valuation allowance
Total deferred tax assets
Deferred tax liabilities
Temporary differences in regard to securities assumed due to merger
Valuation difference on securities
Other
Total deferred tax liabilities
Deferred tax assets (net)

275
232
152
280
1,012
285
591
2,831
(214)
(214)
2,617
161
412
130
704
1,913

2. Breakdown of cause of difference between the statutory effective tax rate and burden rate of income taxes
after application of tax effect accounting by main item
Statutory effective tax rate
(Adjustment)
Permanently non-deductible items such as entertainment
expenses
Permanently non-taxable items such as dividend income
Inhabitants tax on a per capita basis
Goodwill
Other
Burden rate of income taxes after application of tax effectaccounting- 44 -

30.6%
0.3%(1.0)%
1.9%
1.6%
0.5%
33.9%

Notes on Related Party Transactions
1. Parent company(Millions of yen)
Type

Parentcompany

Name ofcompany

AEON CO.,Ltd.

Holding of voting
rights, etc.
(Ownership) ratio

Relationshipwith relatedparties

Details oftransaction

Depositmanagementof funds (Note(Ownership)
DepositDirect 56.0% management 1)
Indirect 1.0% of funds
Interest

Transaction
amountBalance at end of
period

Items

2,243
–

income(Note 2)–1

2. Subsidiaries and associates, etc.
(Millions of yen)Type

Subsidiary

Name ofcompany

KankyouseibiCo., Ltd.

Hakuseisha
SubsidiaryCO., LTD.

Holding of voting
rights, etc.
(Ownership) ratio

Relationshipwith relatedparties

Details oftransaction

Fund deposits
received (NoteFund deposits 1)(Holding)
Direct 100.0% received

Items

Balance at end of
periodDeposits
received

2,970

Deposits
received

4,320

2,121

Interest
expenses(Note 2)Fund deposits
received (NoteFund deposits 1)(Holding)
Direct 94.4%
received
Indirect 5.6%

Transaction
amount1

2,673Interest
expenses(Note 2)

1

3. Fellow subsidiaries, etc.
(Millions of yen)Type

Name ofcompany

Subsidiary
AEON Retailof parent
Co., Ltd.
company

Holding of voting
rights, etc.
(Ownership) ratio–

Relationshipwith relatedparties

Details oftransaction

Equipment
management,
security,cleaning,
contracting of
construction
work, sales of
Net salesmaterials,
etc.,
managementof vending
machineConcurrent
directors- 45 -

Transaction
amountItems

Balance at end of
periodElectronicallyrecordedmonetaryclaims2,955

Accounts
receivable trade

7,065

67,077

Type

Name ofcompany

Holding of voting
rights, etc.
(Ownership) ratio

Relationshipwith relatedparties

Details oftransaction

Equipment
management,
security,cleaning,(Holding)
contracting of
Subsidiary
AEON MALL
Direct 0.4% constructionof parent
Net sales
Co., Ltd.
(Ownership)
work, sales ofcompany
Direct 0.2% materials,
etc.,
managementof vending
machineSubsidiary AEONof parent
Hokkaido
company
Corporation

Subsidiary
AEONTOWN
of parent
Co., Ltd.
company

Subsidiary AEONof parent
TOHOKU Co.,
company
Ltd.

Equipment
management,
security,cleaning,
contracting of(Holding)
construction
Net sales
Direct 0.2% work, sales ofmaterials,
etc.,
managementof vending
machine––Equipment
management,
security,cleaning,
contracting of
construction
Net sales
work, sales ofmaterials,
etc.,
managementof vending
machineEquipment
management,
security,cleaning,
contracting of
construction
Net sales
work, sales ofmaterials,
etc.,
managementof vending
machine- 46 -

Transaction
amountItems

Balance at end of
periodElectronicallyrecordedmonetaryclaims1,374

Accounts
receivable trade

3,093

Notes
receivable trade

1,330

Accounts
receivable trade

1,269Electronicallyrecordedmonetaryclaims3,404

Accounts
receivable trade

777

Notes
receivable trade544

Accounts
receivable trade

1,821

25,193

11,721

10,956

11,595

Type

Name ofcompany

Holding of voting
rights, etc.
(Ownership) ratio

Relationshipwith relatedparties

Details oftransaction

Equipment
management,
security,cleaning,
contracting of
Subsidiary AEON
(Holding)
constructionof parent
KYUSHU CO.,Net sales
Direct 0.3% work, sales ofcompanyLTD.
materials,
etc.,
managementof vending
machineTransaction
amountItems

Balance at end of
periodElectronicallyrecordedmonetaryclaims350

Accounts
receivable trade

1,550

11,335

Transaction terms and its decision policies, etc.
Price and other transaction terms are the same as the terms applied to other parties that are not related to the Company.
(Note 1) The transaction amounts of deposit management of funds and fund deposits received represent the averagebalance during the period.
(Note 2) In regard to the interest of deposit management and deposits received, the interest rate, etc. are reasonably
determined taking into account the market interest rate.
Notes on revenue recognition
Information forming the basis for understanding revenue arising from contracts with customers is stated in“Notes to Non-consolidated Financial Statements. Notes Regarding Significant Accounting Policies 4.
Accounting standards for revenue and expenses.”
Notes on Per Share Information
Net assets per share
Net income per share
Diluted net income per share¥1,837.23¥170.26¥170.14

Notes on Significant Subsequent Events
These notes have been omitted because the content is the same as “Notes on Significant Subsequent Events(Business Combinations through Acquisition of Shares)” in the Notes to Consolidated Financial Statements.
Other Notes
No items to report.

- 47 -