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
April 30, 2021
To our shareholders:Kazumasa Hamada, President
AEON DELIGHT CO., LTD.
2-3-2 Minamisemba, Chuo-ku, Osaka City, Osaka

Notice of the 48th Annual General Meeting of Shareholders
We are pleased to announce the 48th Annual General Meeting of Shareholders of AEON DELIGHT CO., LTD. (the“Company”), which will be held as indicated below.
Please note that the number of seats at the venue has been significantly reduced to prevent the spread of the novel
coronavirus disease (COVID-19). We ask that you consider refraining from attending the meeting in person.
You may exercise your voting rights in writing or via a smartphone, the Internet, etc. Please review the attached
Reference Documents for General Meeting of Shareholders, and exercise your voting rights by 6:00 p.m. on
Tuesday, May 18, 2021 (JST).
1. Date and Time: Wednesday, May 19, 2021, 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 48th fiscal year (from March 1,
2020 to February 28, 2021), 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 48th fiscal year (from March 1, 2020 to February 28,
2021)
Matter to be resolved:
Proposal No. 1
Election of Eight Directors
Proposal No. 2
Election of Three Auditors

If there are any amendments to Reference Documents for General Meeting of Shareholders, Business Report, Non-consolidated
Financial Statements or Consolidated Financial Statements, such amendments will be announced on the Company’s website(https://www.aeondelight.co.jp/).

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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 six Directors will expire. In this regard, the Company
proposes the election of eight Directors, with the intention of further strengthening the management structure.
In addition, all candidates for outside Director satisfy the requirements of an independent officer under theprovisions of the Tokyo Stock Exchange. Furthermore, the Company stipulates the following items as conditions ofeligibility 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 businessexecution of 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 subscribe to the Company’s management principles, code of conduct, etc.
2. The candidate shall have extensive experience as a chief executive officer or other corporate executive, or shallhave comparable experience, knowledge and insight.
3. The candidate shall be able to make judgments independently of the Company’s management.
4. 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 which 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.

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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
Nov. 2006

Mar. 2007
Sept. 2008
Mar. 2011
Mar. 2013
Feb. 2015
Kazumasa Hamada(December 30, 1964)
1

Reelection

Feb. 2015
Mar. 2017
Mar. 2018
May 2018
Dec. 2018
July 2019
Dec. 2019

Apr. 2020

Joined JUSCO Co., Ltd. (currently Aeon Co.,Ltd.)
Head of Management Planning Department ofPosful Corporation (currently AEON Hokkaido
Corporation)
Executive Officer
General Manager of Control Division of AEON
Retail Co., Ltd.
Executive Officer
Director and Control and Accounting Officer ofAeon Co., Ltd.
Regional Office Manager of Kitakanto andNiigata Company of AEON Retail Co., Ltd.
Director and Senior Managing Executive
Officer
Senior Managing Executive Officer
Temporarily transferred to the Company(Advisor)
President and CEO
President Commissioner of PT Sinar Jernih
Sarana (current position)
President and CEO, and Group CEO of theCompany
President and CEO, Group CEO and General
Manager of Financial and Accounting Division(CFO)
President and CEO, and Group CEO (current
position)

Number of theCompany’s shares
owned

1,000 shares

Conflicts of interest
There is no conflict of interest between Kazumasa Hamada and the Company.
Kazumasa Hamada was an Executing Person at Aeon Co., Ltd., the Company’s parent company, and AEON Retail Co.,
Ltd., its subsidiary, in the past ten years. The positions and responsibilities are presented in his career summary.

-3-Candidate
No.

Name
(Date of birth)

Career summary, position, and responsibility in the Company,
and significant concurrent positions outside the Company
Mar. 1979

Joined JUSCO Co., Ltd. (currently Aeon Co.,Ltd.)
Temporarily transferred to Mycal Corp.
Temporarily transferred to the Company
Director and Manager of Nishi Kinki Regional
OfficeIn charge of overseeing East Japan Regional
Office Operations
Director and Managing Director
Director and Senior Managing Director in
charge of overseeing Regional Offices and East
Japan Regional Offices Operations
Director and Executive Vice President in chargeof overseeing Regional Offices and businessDirector and Executive Vice President in chargeof overseeing Regional Offices
Director and Executive Vice President in chargeof overseeing Regional Offices, and COO of
Japan Group BusinessDirector and Executive Vice President in chargeof overseeing Regional Offices
Director and Executive Vice President, and
COO of Japan Group FM Business (current
position)

4,200 shares

Conflicts of interest
There is no conflict of interest between Nobuo Yamazato and the Company.
Apr. 1980
Joined the Company
Sept. 2006
Manager of Sales Department IV
Mar. 2011
General Manager of Sales Promotion Division
Mar. 2012Manager of Minamikanto Regional Office
Mar. 2013
Executive Officer in charge of overseeing East
Japan Regional Office operations
May 2015
In charge of overseeing West Japan Regional
Office operations
May 2017
Managing Officer in charge of operations
May 2018
Director and Managing Director in charge of
Hideyuki Mito
operations(July 19, 1961)
Mar. 2019
Director and Managing Director in charge ofoverseeing business
New election
July 2019
Managing Officer in charge of overseeing
business
Mar. 2020
Managing Officer in charge of overseeing
business, and COO of Japan Group Business
Oct. 2020
Managing Officer and COO of Japan Group
Business
Oct. 2020
President, A to Z Service Co., Ltd. (currently
AEON DELIGHT CONNECT CO., LTD.)(current position)
Feb. 2021
President, DO SERVICE Co., Ltd. (currently
AEON DELIGHT CONNECT CO., LTD.)
Conflicts of interest
There is no conflict of interest between Hideyuki Mito and the Company.

1,300 sharesMar. 2005
Mar. 2009
May 2011
May 2015
May 2016
May 2017
Nobuo Yamazato(February 2, 1956)
2

May 2018
Reelection
May 2019
July 2019

Mar. 2020Feb. 2021

3

Number of theCompany’s shares
owned

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Candidate
No.

Name
(Date of birth)

Career summary, position, and responsibility in the Company,
and significant concurrent positions outside the Company
Apr. 1982
Sept. 2003
May 2006
Sept. 2006

Apr. 2008

June 2012
Hiroyuki Watanabe(July 17, 1958)
New election
4

Nov. 2012

Apr. 2013
Apr. 2014

Apr. 2015
June 2017
Sept. 2018

Oct. 2018

Joined Isejin Jusco Co., Ltd. (currently Aeon
Co., Ltd.)
General Manager of Administration Division of
Kanto Company of JUSCO Co., Ltd.
Representative Director of AEON Financial
Project Co., Ltd. (currently, AEON Bank, Ltd.)
Director in charge of overseeing Human
Resources and General Affairs, and Public
Relation
Director and Managing Executive Officer incharge of Human Resources and General
Affairs
Director, Senior Managing Executive Office,and Head of Corporate Management Division
Director of AEON CREDIT SERVICE CO.,LTD. (currently, AEON Financial Service Co.,Ltd.)
Director in charge of Human Resources,
General Affairs and Legal & Compliance
Representative Director and Senior Managing
Executive Officer, Head of Sales Division of
AEON Bank, Ltd.
President and Representative Director
Director and Executive Vice President of
AEON Financial Service Co., Ltd.
Executive Officer in charge of Human
Resources and Administration, Administration& Risk Management of Aeon Co., Ltd. (current
position)
Director of AEON Financial Service Co., Ltd.
(current position)

Number of theCompany’s shares
owned

0 shares

Conflicts of interest
There is no conflict of interest between Hiroyuki Watanabe and the Company.
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 Financial Service Co., Ltd. The positions and responsibilities are presented in his careersummary.

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Candidate
No.

Name
(Date of birth)

Career summary, position, and responsibility in the Company,
and significant concurrent positions outside the Company
Apr. 1978

5

Number of theCompany’s shares
ownedJoined Matsushita Electric Industrial Co., Ltd.
(currently Panasonic Corporation)
Apr. 2003
Chief of PDP TV Business Unit, Imaging
Business Group of Panasonic AVC Network
Company
Apr. 2006
Director of Matsushita Electric Industrial Co.,Ltd.
Senior Vice President, Chief of PDP TV
Business Unit, Visual Products and Display
Devices Business Group of Panasonic AVC
Masaaki Fujita
Network Company(September 6, 1952)
June 2009
Director of Corporate Quality Administration
Division in charge of Corporate FF Customer
4,200 shares
Reelection
Support & Management Division
Candidate for outside Director
Candidate for independentMar. 2010
In charge of Global Procurement and Director
officerof Corporate Procurement Division; in chargeof Global Logistics and Director of Corporate
Global Logistics Division; in charge of Trading
Company
Apr. 2011
Managing Executive Officer
Apr. 2014
Specially Appointed Professor of the IndustryUniversity Cooperative Center of Advanced
Education, Research Organization for the 21stCentury of Osaka Prefecture University
May 2015
Director of the Company (current position)
Reasons for selection as candidate for outside Director and roles expected to be performed
The Company proposes the election of Masaaki Fujita as outside Director to gain his accurate advice to the Company’s
Management of Technology based on his wealth of experience in quality and production control and to gain his
guidance in improving the Company’s management and corporate governance based on his managerial knowledge incrossing different kinds of business, the development of global business, and management as well as his personablehuman resource development.
Conflicts of interest
There is no conflict of interest between Masaaki Fujita and the Company.
Note: The Company has entered into an agreement with Masaaki Fujita 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.

-6-Candidate
No.

Name
(Date of birth)

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

6

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
Yoshiaki Hompo
July 2007
Deputy Vice-Minister for Tourism Policy,(April 20, 1949)
Minister’s Secretariat of Ministry of Land,
Infrastructure, Transport and Tourism
1,200 shares
Reelection
Oct. 2008
Commissioner of Japan Tourism Agency
Candidate for outside Director
Apr. 2010
Professor of Tokyo Metropolitan University
Candidate for independent
Jan. 2014
Special Adviser of Japan Tourism Agency
officer(current position)
Nov. 2014
Adjunct Professor of Tokyo Institute ofTechnology
Apr. 2015
Research Professor of Tokyo Metropolitan
University
June 2015
Outside Director of THE KEIHIN CO., LTD.
(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 (current position)
May 2017
Director of the Company (current position)
Apr. 2018
Visiting Professor at Tokyo Metropolitan
University (current position)
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. Also, he has experience in the area of human resource development as an adjunct and researchprofessor. The Company judges he will contribute to the management of the Company, and proposes his election as
outside 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 beenfour years.

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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

7

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
Keiji Yoshikawa
Business Unit
(July 6, 1950)
June 2008
Director, Executive Officer, and Head ofSpecialty Glass Worldwide
0 shares
New election
Candidate for outside Director Feb. 2012
Director, Representative Executive Officer, andCandidate for independent
Executive Vice President and CPMO (Chief
officer
Project Management Officer)
Apr. 2012
Director, Representative Executive Officer, andPresident and CEO
June 2015
AdvisorJune 2018
Outside Director of Kansai Paint Co., Ltd.
(current position)
Reasons for selection as candidate for outside Director and roles expected to be performed
The Company proposes the election of Keiji Yoshikawa as outside Director to gain his guidance on not only theCompany’s domestic business operations, but also its management of overseas business operations, based on his
corporate management experience as a representative executive officer and president of a company listed on the First
Section of Tokyo Stock Exchange along with his experience as a senior manager of a global company based in Japan.
Conflicts of interest
There is no conflict of interest between Keiji Yoshikawa and the Company.
Note: The Company plans to enter 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.

-8-

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. 1987
Jan. 1988
Apr. 2002

8

Joined E.F. Hutton & CO., Inc.
Joined Morgan Stanley Japan Limited
Lecturer of Faculty of Business Administration,
Takachiho University
Asako Takada(March 20, 1964)
Apr. 2003
Assistant Professor of Faculty of Business
Administration
0 shares
New election
Apr. 2008
Associate Professor of Hosei Business School
Candidate for outside Directorof Innovation Management
Candidate for independent
Apr. 2011
Professor of Hosei Business School ofofficerInnovation Management (current position)
Sept. 2015
Director of Global MBA Program, Hosei
Business School of Innovation Management(current position)
Reasons for selection as candidate for outside Director and roles expected to be performed
The Company proposes the election of Asako Takada as outside Director to gain her guidance on promotion oforganizational cultural reform to improve the Company’s corporate value, improvement of the effectiveness ofcorporate governance, and improvement of diversity within the Company based on her knowledge and insight inorganizational theory and the field of innovation which are her fields of research.
Conflicts of interest
There is no conflict of interest between Asako Takada and the Company.
Note: The Company plans to enter 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.

[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 forthe performance of their duties or receives a claim related to the pursuit of such responsibility. When the candidates assume theiroffices as Directors, they will be insureds under the insurance policy. The full amount of the insurance premiums is borne by theCompany, and at the time of the next renewal, the Company plans to renew the policy with the same content.

-9-

Proposal No. 2

Election of Three Auditors

The terms of office of Auditors Hiroshi Mitsui, Tsukasa Takahashi and Yuji Kawabe will expire at the conclusion ofthis meeting. Therefore, the Company proposes the election of three Auditors.
In addition, the consent of the Board of Auditors has been obtained for this proposal.
The candidates for Auditor are as follows:
Candidate
No.

Name(Date of birth)

Career summary, position in the Company, and significant
concurrent positions outside the Company
Mar. 1981

1

Number of theCompany’s shares
ownedJoined JUSCO Co., Ltd. (currently Aeon Co.,Ltd.)
May 2005
Director of Food Supply JUSCO Co., Ltd.
(currently AEON FOOD SUPPLY Co., Ltd.)
Feb. 2011
Manager of Human Resource Education
Department of Tokai Company of AEON RetailCo., Ltd.
Apr.
2012
Director and General Manager of Personnel andHiroshi Mitsui
GeneralAffairs Division of G Foot Co., Ltd.
(July 27, 1956)
May 2014
Managing Director in charge of Administration
200 shares
Reelection
Sept. 2017Managing Director in charge of General
Candidate for outside Auditor
Planning and Administration
May 2018
Managing Director in charge of Administration
May 2020
Statutory Non-Executive Auditor of theCompany (current position)
May 2020
Commissioner of PT Sinar Jernih Sarana(current position)
Dec. 2020
General Auditor of AEON DELIGHT (CHINA)
CO., LTD. (current position)
Reasons for selection as candidate for outside Auditor
Hiroshi Mitsui has served as a Director of G Foot Co., Ltd. and has experience as a company executive and broad
knowledge. The Company proposes his election as outside Auditor to utilize his sense of balance as a company
executive and abundant knowledge and gain his guidance in improving our corporate governance.
Conflicts of interest
There is no conflict of interest between Hiroshi Mitsui and the Company.
Hiroshi Mitsui was in the past ten years serving as an Executing Person at G Foot Co., Ltd., a subsidiary of theCompany’s parent company. The positions and responsibilities are presented in his career summary.
Note: The Company has entered into an agreement with Hiroshi Mitsui 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 Auditor. If his reelection is approved, the Company plans to renew this agreement with him. He iscurrently an outside Auditor of the Company, and at the conclusion of this meeting, his tenure will have been
one year.

- 10 -

Candidate
No.

Name
(Date of birth)

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

2

Number of theCompany’s shares
ownedRegistered with the Osaka Bar Association,joined Katsube Law Office (currently Katsube
Takahashi Law Office)Apr. 1994
Partner of Katsube Takahashi Law Office(current position)
Apr. 2006
Part-time Instructor at Kwansei Gakuin
Tsukasa Takahashi
University Law School(December 10, 1962)
Apr. 2007
Part-time Instructor at Kyoto University Law
School0 shares
Reelection
Apr. 2010
Vice President of the Osaka Bar Association
Candidate for outside Auditor
Apr. 2012
Visiting Professor at Kyoto University Law
Candidate for independent
Schoolofficer
Apr. 2013
Distinguished Professor
May 2013
Auditor of the Company (current position)
Mar. 2019
Corporate Auditor of Nippon Electric GlassCo., Ltd. (current position)
June 2020
Statutory Corporate Auditor of NIPPONSHOKUBAI CO., LTD. (current position)
Reasons for selection as candidate for outside Auditor
Tsukasa Takahashi has expert insight as an attorney at law and extensive experience gained through his long-standing
career in corporate legal affairs. He has thus far enhanced the effectiveness of auditing of the Company based on his
insight and experience. The Company proposes his election as outside Auditor in the belief that his matchlessexperience and knowledge is essential for further strengthening the Company’s audit function.
Conflicts of interest
There is no special interest between Tsukasa Takahashi and the Company.
Note: The Company has entered into an agreement with Tsukasa Takahashi 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 Auditor. If his reelection is approved, the Company plans to renew this agreement with him. He iscurrently an outside Auditor of the Company, and at the conclusion of this meeting, his tenure will have beeneight years.

- 11 -

Candidate
No.

Name
(Date of birth)

Career summary, position in the Company, and significant
concurrent positions outside the Company
Apr. 1981

Number of theCompany’s shares
ownedJoined Personnel Division, Police Affairs
Bureau of National Police Agency

Aug. 2002

Director of Police Administration Departmentof Chiba Prefectural Police Headquarters

Aug. 2004

Chief of Tochigi Prefectural PoliceJan. 2006

Counsellor of Cabinet Secretariat (Cabinet

Jan. 2010

Chief of Aichi Prefectural PoliceAug. 2012

Deputy Director-General to Commissioner-

Intelligence and Research Office)Yuji Kawabe(October 25, 1957)

3

Reelection
Candidate for outside Auditor
Candidate for independent
officer

General’s Secretariat (Security Bureau) of
National Police Agency
Aug. 2013

0 shares

Deputy Director-General of Cabinet SatelliteIntelligence Center of Cabinet Secretariat

Nov. 2015
May 2016

Advisor of Aeon Co., Ltd. (current position)
Auditor of AEON Retail Co., Ltd. (current
position)

May 2016

Auditor of The Daiei, Inc. (current position)

May 2017

Auditor of the Company (current position)

June 2017

Auditor of AEON CREDIT SERVICE CO.,LTD. (current position)
Conflicts of interest
There is no conflict of interest between Yuji Kawabe 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. When the candidates assume their offices as
Auditors, 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.

- 12 -

3. Matters related to Share Subscription Rights (As of February 28, 2021)
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 executionof duties 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)

Number of
persons
holding therightsAmount ofcapitalcontributed
upon exercise

Exercise period

Number of
share
subscription
rightsNumber ofshares subject
to the rights

June 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

76

7,600 shares

32,689 yen per
share

0.5 yen per
share

June 10, 2017 toJune 10, 2032

104

10,400 shares

43,167 yen per
share

0.5 yen per
share

June 10, 2018 toJune 10, 2033

106

10,600 shares

43,439 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

Issuing price

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 26, 2020, the Board of Directors adopted a resolution on the basic policy related to systems for
ensuring that Directors execute their duties in compliance with laws and regulations and with the Company’s
Articles of Incorporation 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 andemployees 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 businesscomply with laws 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
Compliance Department Manager, it will evaluate the appropriateness of their activities andnominate and dismiss 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 theminutes of the general meetings of shareholders and of the Board of Directors, the preservation of which
is a statutory 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 category, 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 chargeof risk management as well as the proposed countermeasures, verify the risk scenarios of eachGroup company, and periodically report its findings to the Board of Directors. If risk becomes
actualized and substantial damage can be expected, Directors must promptly report it to the
Auditors; and(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 prepare risk scenarios in line with risk management
points and evaluate the effectiveness of risk management through audits of the departments incharge of risk.
• 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
and improving 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 audits to all Center Managers. Staffs whoare certified for ISO audits will conduct mutual audits at all centers every year to measure theeffectiveness of ISO 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
the resolution 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
decision-making and on responsibilities and authority of the Directors. It will also set out clearly thedivision of labor for executing business operations within the organization and the boundaries ofjobs and responsibilities;(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 byimplementing the executive officer system. At the same time, the Company will promote efficientmanagement of the Group through deliberative bodies such as the Board of Executive Officers,
Branch Management Committee, Domestic Group Management Committee, and Overseas GroupManagement Committee;(c) To strengthen its supervisory function and ensure its business operations are executed fairly, theCompany will have multiple independent outside Directors on the Board of Directors. The Board of
Directors will voluntarily establish the Nomination and Compensation Advisory Committee and the
Evaluation Advisory Committee composed of independent outside Directors; and(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 -

(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)• Transactions between AEON delight and any of AEON Co., Ltd., AEON Group companies, or AEON
delight subsidiaries will be based on market prices. Measures will be implemented to prevent conflicts ofinterest and to ensure fair transactions.
• 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 that subsidiaries 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 tosupervise management of the subsidiaries;(b) In addition to receiving monthly performance reports from its subsidiaries, the Company willorganize the Domestic and Overseas Group Management Committee meetings, which include theCompany’s Directors and the Presidents of subsidiaries as members. Through this, the Company
will take stock of 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 officers and employees of
the Group to foster compliance awareness. The Group Compliance Department will work with theCompliance Committee members appointed for each Group company to carry out activities thatraise compliance awareness 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 thereporting and management systems of each of its subsidiaries; and(e) The Auditors and the Group Corporate Audit Department will regularly inspect and supervise thesubsidiaries. In conducting business operation audits, the Group Corporate Audit Department willplace under close scrutiny those subsidiaries that are considered high risk in light of past
performance audits and whistleblower incidents.

(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 in
the Audit Office 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(independence of 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
working in the Audit Office. 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 theGroup’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.
- 16 -

• 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 theCompany.
• 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 toan Auditor or for having used the whistleblower system. The Company will ensure that Directors andemployees 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 theaccuracy and reliability of financial reporting of the Group through education, supervision, andevaluation.

- 17 -

(2) Systems for ensuring fair business transactions and operation status of the system
The Company is implementing and operating the internal control system based on the Basic Policy concerning
the Internal Control System mentioned above. The following is an overview of the operational status of thesystem 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 (CCO) to ensure that Directors act in compliance withlaws, regulations, and the Articles of Incorporation. The Board of Directors has held 17 meetings in thecurrent fiscal year to deliberate each proposal and supervise the execution of business operations. In
addition to meetings of the Board of Directors held, the Company on two occasions passed a written
resolution, which is deemed to be a resolution of the Board of Directors in accordance with theprovisions of Article 370 of the Companies Act and Article 23 of the Articles of Incorporation of theCompany. Moreover, the Company is also providing officer compliance training to Directors andExecutive 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 2017 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 thestatus of 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.

(ii)

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 Groupregulations on information security management, AEON delight Group regulations on protection of
personal information, and other necessary regulations, and established a system to appropriately store andpreserve information in accordance with those regulations. In addition, the Company has implemented asystem to respond immediately to requests from Directors and Auditors to examine those documents andmedia.

(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 category 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 necessary regulations, as well as manuals including the Disaster
Recovery Handbook, and plans and conducts disaster drills in order to prepare for responses in case ofdisaster. For risks that may arise in terms of corporate management and business, meetings of the Risk
- 18 -

Management Committee, with the Group Compliance Department serving as its secretariat, shall be held
to examine risk analysis and countermeasures, verify the risk scenarios of each Group company, andperiodically report the findings to the Board of Directors. The Group Corporate Audit Department
conducts internal audits and subsidiary audits depending on the effectiveness of risk management.
• The Company has established the Integrated Manual on Quality and Environment for the maintenanceand improvement of the quality of its operations.
In addition, to ensure that operations are conducted based on the Integrated Manual on Quality andEnvironment, the Company is providing qualification education for ISO audits to all Center Managers,
and the Center Managers are conducting mutual audits to measure the effectiveness of ISO 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 and those issues that must be reported to the Board. As for other issues before theBoard, 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 three independent outside Directors out of the six Directors in total, theCompany has put in place a system that ensures the efficiency of management by examining the
proposals of 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,
the Board of Directors has voluntarily established the Nomination and Compensation Advisory
Committee and the Evaluation Advisory Committee composed of independent outside Directors.
• 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)
Transactions between AEON delight and any of AEON Co., Ltd., AEON Group companies, or AEON
delight subsidiaries are based on market prices. Measures have been implemented to prevent conflicts ofinterest, and fair transactions are ensured through deliberation based on the rules of the Board of
Directors and the regulations on responsibilities and authority of the Directors.
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 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 thesubsidiaries.
In addition to receiving monthly performance reports from its subsidiaries, the Company has organized
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 is taking stock of
the performance 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 of subsidiaries
and AEON code of conduct executive training to executive staff to foster compliance awareness.
The Group has established the International Department for further promotion of globalization. For
information that needs to be strengthened for internal controls, the Company has implemented a system
where the Affiliated Companies Administration Department is in charge of centrally disseminating
information to domestic subsidiaries and the International Department is in charge of centrally
disseminating information to overseas local subsidiaries.

- 19 -

• For risk management for subsidiaries, the Group Compliance 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 Auditors and the Group Corporate Audit Department
regularly inspect and supervise the subsidiaries. In addition, the Group Corporate Audit Department
places under close scrutiny those subsidiaries 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 in the Audit Office as an
assistant.
(vii) Matters related to the independence of employees assisting the Auditors from the Directors(independence of 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 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 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
breach of laws and regulations or other compliance-related issues.
• The Group Corporate Audit Department and Group Compliance Department have implemented a system
to regularly report the statuses of internal audits, compliance, and risk 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 their whistleblower reports to the Board of
Directors regularly or whenever necessary.
• The Company has implemented a system where the Auditors may attend important meetings related tothe management of the Company’s business such as the Board of Executive Officers meetings, inaddition to the Board 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 Auditors 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. In addition, the outside Directors and Financial
Auditors are requested to regularly attend the Board of Auditors meetings to exchange views.
• The Auditors are working in close collaboration with the Group Corporate Audit Department to enableeffective execution of audit duties.
• 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
shall take legal steps. In addition, the Company shall set out provisions on the elimination of anti-social
forces in contracts for transactions. If any existing contracts have no provisions on the elimination ofanti-social forces, the Company shall incorporate such provisions in those contracts upon renewal. If a
- 20 -

business partner should fall within this criterion, the Company shall rescind all the applicable contracts
immediately.
In addition, the Company became a member of the Minami Round-Table Business Conference in the
Osaka Prefectural Federation for Corporate Defense to actively collect information for the elimination ofanti-social 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 tofinancial reporting, evaluates their operation, and submits the internal control report.

- 21 -

Consolidated Statement of Changes in Equity(March 1, 2020 - February 28, 2021)(Millions of yen)
Shareholder’s equity

Balance at beginning of period

Capital stock

Capital surplus

Retained earnings

Treasury stock

3,238

13,88072,063(10,208)

Total shareholders’equity78,972

Changes during period
Dividends of surplus(3,398)(3,398)Net income attributable to ownersof parent

11,68011,680Purchase of treasury stock
Disposal of treasury stock

10

Change in ownership interest ofparent due to transactions with
non-controlling interests

(0)

(0)

85

96

(664)

Change in scope of consolidation

(664)
(1)

(1)

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

–

(653)

8,281

85

7,712

3,238

13,22680,344(10,123)

86,685

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

Foreign currency Remeasurementsof defined benefit
translationplans
adjustments

Total otheraccumulatedcomprehensive
income

487

18

(592)

(86)

555

(49)

243

748

Changes during period
Dividends of surplus
Net income attributable to ownersof parent
Purchase of treasury stock
Disposal of treasury stock
Change in ownership interest ofparent due to transactions with
non-controlling interests
Change in scope of consolidation
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

555

(49)

243

748

1,042

(30)

(349)

662

- 22 -

Share subscription
rightsBalance at beginning of period

186

Non-controllingshareholders’equityTotal net assets

2,213

81,286

Changes during period
Dividends of surplus(3,398)Net income attributable to ownersof parent

11,680Purchase of treasury stock(0)

Disposal of treasury stock

96

Change in ownership interest ofparent due to transactions with
non-controlling interests(664)

Change in scope of consolidation(1)

Net changes in items other thanshareholders’ equity(66)(1,399)Total changes during period(66)(1,399)6,995

Balance at end of period

119

814

88,281- 23 -(717)

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 25• Names of major consolidated subsidiaries
AEON DELIGHT ACADEMY CO., LTD.
AEON DELIGHT SECURITY CO., LTD.
AEON DELIGHT (CHINA) CO., LTD.
Kankyouseibi Co., Ltd.
DO SERVICE Co., Ltd.
A to Z Service 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.
U-COM Co., Ltd.
PT Sinar Jernih Sarana
Aqutia Co., Ltd.
Nine other companies
Suzhou Binyong Comprehensive Facility Management Service Co., Ltd. is included in the scope of
consolidation in the current fiscal year due to its establishment as a subsidiary of Aeon Delight (Jiangsu)
Comprehensive Facility Management Service Co., Ltd., the Company’s subsidiary.
Furthermore, KJS Corporation, Kanto Engineering Co., Ltd., a subsidiary of Kankyouseibi Co., Ltd (theCompany’s subsidiary) and AeonDelight DeepBlue Technology (Shanghai) Co., Ltd. are excluded from thescope of consolidation in the current fiscal year due to a merger with the Company, a merger with
Kankyouseibi Co., Ltd., and dissolution, respectively.
2. Application of equity method(1) Number of associates accounted for using equity method
Company name
Kikugawa Ishiyama Solar Co., Ltd.
Kikugawa Horinouchitani Solar Co., Ltd.

Two(2) Number of associates not accounted for using equity method
Two companies, namely ShinNagata Town Management Company Limited and Shin Urayasu Ekimae PFI
Company Limited, are excluded from the scope of application of the equity method due to the insignificant
effect on the consolidated financial statements in terms of net income or loss (amount corresponding toequity) and retained earnings (amount corresponding to equity), etc., respectively, and the lack ofimportance as a whole even when excluded from the equity method.
(3) Among companies accounted for using the equity method, for those whose closing dates differ from theconsolidated closing dates, financial statements based on a provisional settlement of accounts are used.
3. Fiscal years, etc. of consolidated subsidiaries
Among the consolidated subsidiaries, the closing date of 17 companies including Aeon Delight (Jiangsu)
Comprehensive Facility Management Service Co., Ltd. is December 31.
- 24 -

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.
Consolidated financial statements are prepared by using financial statements based on a provisional settlementof accounts that was conducted as of 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)
Other securities
Securities with available fair values:
Stated at fair value based on the market price, etc. as of theclosing date (valuation differences are reported as a componentof net assets, and the cost of securities sold is calculated by themoving-average method)
Securities without available fair values: Stated at cost using the moving-average method(ii) Valuation standards and methods for inventories
Merchandise: Stated at cost using the moving-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 thebalance 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 (5years) is applied.
(iii) Leased assets:
Leased assets in finance lease transactions that do not transfer ownership are depreciated using thestraight-line 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.

- 25 -

(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.
(4) 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.
(5) Other significant matters forming the basis for preparing consolidated financial statements(i) 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 estimatedamount at 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 eachfiscal year, commencing from the following fiscal year of the occurrence. Actuarial gains and losses forcertain 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.
(ii) Accounting for consumption taxes
Consumption taxes are accounted for by using the tax-exclusive method.
5. Additional information(Accounting estimates in regard to impacts of the spread of COVID-19)
The Group’s accounting estimates in regard to impairment accounting of fixed assets and recoverability ofdeferred tax assets, etc. are based on information available at the time the consolidated financial statements areprepared.
Accounting estimates on impacts of COVID-19 on Group businesses are made under the assumption that
COVID-19 will generally settle down by the end of the current fiscal year.
For impacts on certain Group businesses, however, the accounting estimates are made under the assumption theimpacts will last into the following fiscal year.

- 26 -

Notes to Consolidated Balance Sheet
1. Assets pledged as collateral
Cash and deposits
Investment securities
Investments and other assets - Other (guarantee deposits)¥95 million¥34 million¥15 million

2. Accumulated depreciation of tangible fixed assets¥14,943 million

3. Breakdown of inventories
MerchandiseWork in process
Raw materials and supplies¥1,687 million¥86 million¥232 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

LocationClass
Buildings and structures, net

0Midori ward, Nagoya City

Other (tangible fixed assets)

1

Other (intangible fixed assets)

8

Buildings and structures, net

1

Tools, furniture and fixtures,net

0

Other (tangible fixed assets)

0

Buildings and structures, net

0Tools, furniture and fixtures,net

0

Other (tangible fixed assets)

1

Buildings and structures, net

2

Tools, furniture and fixtures,
Toyohashi City, Aichi Prefecturenet

0Other (tangible fixed assets)

0

Buildings and structures, net

18

Tools, furniture and fixtures,net

11

Other (tangible fixed assets)

6

Other (tangible fixed assets)

435

Minato City, Tokyo

Goodwill

105

Indonesia

Goodwill

1,064

Suzuka City, Mie Prefecture

Okazaki City, Aichi Prefecture
Business assets

Nakamura ward, Nagoya City

Chuo ward, Osaka City
Other

Total

Impairment loss (million yen)

1,659

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.

- 27 -

For judgments on impairment losses of goodwill, assets are grouped using the consolidated company as thegrouping unit.
The impairment losses on goodwill stated above concern the loss arising from the impairment of theunamortized balance due to the expected non-achievement of business plan revenue projections, which had
been examined at the time of a partial acquisition of a subsidiary’s shares. The recoverable amount wasmeasured at value in use, which is assessed as zero because future cash flows are not expected.
3. Loss on transfer of business
Nonrecurring loss associated with the divestiture of the ID photo machine business operated by the Company’s
consolidated subsidiary is recorded as a loss on transfer of business under extraordinary loss.

4. Loss due to response to new infections
Due to self-restraint in business operations requested by the government and the respective municipalities andstate-of-emergency declarations with the spread of COVID-19, facilities such as stores that the Group entrusts
and manages were temporarily closed and operating hours shortened. As a result, work compensation benefits,
etc. paid to employees are recorded under extraordinary loss as loss due to response to new infections.
5. Income taxes
Income taxes include tax refunds of 1,070 million yen associated with claims for correction, etc. in regard toincome taxes for the past fiscal years (fiscal year ended February 2015 to fiscal year ended February 2019) ofdomestic subsidiaries.
6. Gain on reversal of allowance for sales discounts
Gain on reversal of allowance for sales discounts of 247 million yen is recorded in net sales.

- 28 -

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
54,169,633 shares
2. Treasury stock
Classes of shares

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

Ordinary shares

4,202,659

Increase (shares)

Decrease (shares)
214(Note 1) The breakdown of the increase in number is as follows:
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 exercise of share subscription rights

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

35,4004,167,473

214 shares
35,400 shares

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

Resolution

Classes of shares

April 10, 2020
Board of Directors’
meeting

Ordinary shares

1,648

October 7, 2020
Board of Directors’
meeting

Ordinary shares

1,749

Record date

Effective date

33.00

February 29, 2020

April 30, 2020

35.00

August 31, 2020

November 9, 2020

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

Source ofdividends

Total amount ofdividends(million yen)

April 9, 2021
Board of Directors’ Ordinary shares
meeting

Retainedearnings

2,350

Dividend pershare (yen)Record date47.00 February 28, 2021

Effective date

May 6, 2021

4. Share subscription rights
Class and number of shares subject to share subscription rights
Ordinary shares
39,400 shares
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 areprocured 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.
Investment securities are mainly shares of companies with business relations. Fair values are determined eachquarter for shares with available fair values.
Trade payables such as notes and accounts payable - trade have payment dates due within one year.
Short-term borrowings and long-term debt (including current portion of long-term loans payable) areprocurement associated with working capital.

- 29 -

2. Fair values of financial instruments
The amounts recorded on the consolidated balance sheet, fair values, and the difference between them are as
follows. Those whose fair value is recognized as being difficult to determine are not included in the following
table.
(Millions of yen)Amount recorded on the
consolidated balance
sheet

Fair value

Difference(1) Cash and deposits

59,77359,773–(2) Notes and accounts receivable

39,17638,969(206)(3) Electronically recorded monetary claims

3,182

3,176

(6)

3,285

3,285

–

105,417

105,205(212)(1) Notes and accounts payable - trade22,17022,170–(2) Electronically recorded obligations - operating

4,188

4,188

–

299

299

–

(4) Investment securities
Other securities
Total assets(3) Short-term borrowings(4) Accounts payable

7,227

7,227

–

(5) Income taxes payable

1,147

1,147

–

35,03235,032–

Total liabilities(Note) Method of calculating fair value of financial instruments and matters related to securities transactions
Assets(1) Cash and deposits
The carrying amounts are used as fair values as these items are settled within a short period of time and thefair values are approximately equal to the carrying amounts.
(2) Notes and accounts receivable and (3) Electronically recorded monetary claims
These fair values are calculated from the value of claim amount net of the amount equivalent to the creditrisk.
(4) Investment securities
These fair values are calculated from the quoted price on the stock exchange for shares, etc., and quoted
price on the stock exchange or the price presented by a correspondent financial institution for bonds andinvestment trusts.
Liabilities(1) Notes and accounts payable - trade, (2) Electronically recorded obligations - operating, (3) Short-termborrowings, (4) Accounts payable, and (5) Income taxes payable
The carrying amounts are used as fair values as these items are settled within a short period of time and thefair values are approximately equal to the carrying amounts.
Notes on Per Share Information
Net assets per share
Net income per share
Diluted net income per share¥1,746.88¥233.69¥233.47

Notes on Significant Subsequent Events
No items to report.

- 30 -

Non-consolidated Statement of Changes in Equity(March 1, 2020 - February 28, 2021)(Millions of yen)
Shareholder’s equity
Capital surplus
Capital stock
Legal capital surplus
Balance at beginning of period

3,238

Other capital surplus

2,963

Total capital surplus

16,673

19,63710

10

Changes during period
Dividends of surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

–

–

10

10

3,238

2,963

16,684

19,647

Total retained Treasury stockearnings

Total
shareholders’equityShareholder’s equity
Retained earnings
Other retained earnings
Legal retained
earnings
Balance at beginning of period

395

Retainedearnings
brought forward

Generalreserve
7,120

60,611

68,126(10,208)

80,793

Dividends of surplus(3,398)(3,398)(3,398)Net income

6,879

6,879

6,879

Changes during period

Purchase of treasury stock

(0)

(0)

Disposal of treasury stock

85

96

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

–

–

3,480

3,480

85

3,576

395

7,120

64,091

71,607(10,123)

84,370- 31 -

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

697

697

Share subscription
rightsTotal net assets

186

81,676

Changes during period
Dividends of surplus(3,398)Net income

6,879

Purchase of treasury stock(0)

Disposal of treasury stock96

Net changes in items other thanshareholders’ equity

279

279

(66)

213

Total changes during period

279

279

(66)

3,790

Balance at end of period

977

977

119

85,466- 32 -

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 with available fair values:

Stated at fair value based on the market price, etc. as of theclosing date (valuation differences are reported as a componentof net assets, and the cost of securities sold is calculated by themoving-average method)
Securities without available fair values: Stated at cost using the moving-average method(2) Valuation standards and methods for inventories(i) Merchandise: Stated at cost using the moving-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 thebalance 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 basedon individual examinations of recoverability with respect to specific receivables such as debt claims withdefault 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.

- 33 -

(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 at the end of 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 at the end of the current fiscal year. In calculating
retirement benefit obligations, the benefit formula standard is used as the method to attribute the estimatedpayment 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 (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 isrecorded.
4.

Other significant matters forming the basis for preparing non-consolidated financial statements(1) 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.
(2) Accounting for consumption taxes
Consumption taxes are accounted for by using the tax-exclusive method.

5.

Additional information(Accounting estimates in regard to impacts of the spread of COVID-19)
The Company’s accounting estimates in regard to impairment accounting of fixed assets and recoverability ofdeferred tax assets, etc. are based on information available at the time the non-consolidated financial
statements are prepared.
Accounting estimates on impacts of COVID-19 on the Company’s businesses are made under the assumptionthat COVID-19 will generally settle down by the end of the current fiscal year.

- 34 -

Notes to Non-consolidated Balance Sheet
1. Assets pledged as collateral
Cash and deposits
Shares of subsidiaries and associates
Investment securities
Investments and other assets - Other (guarantee deposits)¥95 million¥29 million¥5 million¥15 million

2. Guarantee obligations
Guarantee is provided to the following subsidiaries and associates.
AEON DELIGHT (MALAYSIA) SDN. BHD.
PT Sinar Jernih Sarana¥160 million¥125 million

3. Accumulated depreciation of tangible fixed assets¥11,422 million

4. Monetary receivables from and payables to subsidiaries and associates (excluding those presented
separately)
Short-term monetary receivables¥272 million
Short-term monetary payables¥3,726 million
5. Breakdown of inventories
Merchandise
Raw materials and supplies¥1,683 million¥41 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¥68,202 million¥21,375 million¥1,474 million¥1,276 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
4,167,473 shares- 35 -

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
Provision for retirement benefits
Shares of subsidiaries and associates
Investments in capital of subsidiaries and associates
Allowance for sales discounts
Tax loss brought forward (Note)
Other
Subtotal of deferred tax assets
Valuation allowance in regard to Tax loss brought forward (Note)
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
Total deferred tax liabilities
Deferred tax assets (net)

259
57
100
604
14
1,161
285
98
2,293
977
5,853
–
(148)
(148)
5,704
161
430
591
5,113

(Note) Amount in regard to tax loss brought forward and its deferred tax assets by terms brought forward(Millions of yen)
Up to 1
year

Over 1 year
and up to 2
years

Over 2
years andup to 3
years

Over 3
years andup to 4
years

Over 4
years andup to 5years

More than
5 years

Total

Tax loss brought
forward (a)

–

–

–

–

–

2,293

2,293

Valuation allowance

–

–

–

–

–

–

–

Deferred tax assets

–

–

–

–

–

2,293

(b) 2,293(a) Tax loss brought forward is the amount multiplied by the statutory effective tax rate.
(b) Deferred tax assets recorded at the end of the current fiscal year is judged collectible based on taxable
income of the past, current, and future estimates.

- 36 -

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
Increase (decrease) in valuation allowance
Other
Burden rate of income taxes after application of tax effectaccounting- 37 -

30.6%
0.2%(3.5)%
2.4%
2.0%
1.4%
(0.1)%
33.0%

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
Deposit ofconsumption(Note 1)

(Ownership)
Deposit of
Direct 55.3%
consumption Refund of
Indirect 0.9%
consumption
deposits(Note 1)

Transaction
amountItems

Balance at the end of
period31,00031,000

Deposit ofsubsidiaries
and associates–

2. 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

Equipment
management,
security,cleaning,
contracting of(Holding)
Subsidiary
Direct 0.4% construction
AEON MALL
Net salesof parent
work, sales of(Ownership)Co., Ltd.
company
Direct 0.2% materials,
etc.,
managementof vending
machineSubsidiary AEON
Hokkaidoof parent
Corporationcompany

Equipment
management,
security,cleaning,
contracting of
construction(Holding)
Net sales
Direct 0.2% work, sales ofmaterials,
etc.,
managementof vending
machine- 38 -

Transaction
amountItems

Balance at the end of
periodElectronicallyrecordedmonetaryclaims

1,195

Accounts
receivable

6,378Electronicallyrecordedmonetaryclaims1,244

Accounts
receivable

2,536

Notes
receivable877

Accounts
receivable

1,032

66,595

21,202

10,021Type

Name ofcompany

Holding of voting
rights, etc.
(Ownership) ratio

Relationshipwith relatedparties

Details oftransaction

Equipment
management,
security,cleaning,
contracting of
Subsidiary AEON
construction(Holding)
Net sales
KYUSHU CO.,of parent
Direct 0.3% work, sales ofLTD.
company
materials,
etc.,
managementof vending
machine

Items

Balance at the end of
periodNotes
receivable

177

Electronicallyrecorded
8,184 monetaryclaims161

Accounts
receivable

1,093

Transaction
amountTransaction 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 theCompany.
(Note 1) In regard to the interest of deposit of consumption, interest rate, etc. are reasonably determined taking into
account the market interest rate.
(Note 2) Consumption tax, etc. are not included in the transaction amount. Consumption tax, etc. are included in
the balance at the end of period.
Notes on Per Share Information
Net assets per share
Net income per share
Diluted net income per share¥1,706.87¥137.63¥137.50

Notes on Significant Subsequent Events
No items to report.
Other Notes
No items to report.

- 39 -