News Release: AEON DELIGHT CO., LTD.

(9787 TSE1)
November 29, 2019

Notice of Company Split of Consolidated Subsidiary(Incorporation-type Company Split)

At the meeting of the Board of Directors held today, we resolved to spin off the housework
support business of our consolidated subsidiary KAJITAKU CO., Ltd. (hereinafter, "KAJITAKU")
into a company split (incorporation-type company split) and succeed to a new company(hereinafter, "the Company Split"), and to make the new company a wholly owned subsidiary ofus.
Disclosure items and contents are partially omitted because this company split is anindependent incorporation-type split of our subsidiary.
1. Purpose of the Company Split
Since its establishment in 2008, KAJITAKU has been engaged in the housework support
business which offers housework services and the store support services which offers
multi-copiers and photo machines. In 2011, we made KAJITAKU a consolidated subsidiary withthe aim of creating synergies with the Group's small-scale store business and condominium
management business.
Subsequently, as described in "Measures to Prevent Recurrence of Inappropriate Accounting at
Our Consolidated Subsidiary KAJITAKU CO., Ltd.," on July 22, 2019, we formulated measures toprevent a recurrence of the inappropriate accounting at KAJITAKU over the past several years.
Based on the recommendations of the Special Investigation Committee, which is composed ofoutside experts who have no interest in KAJITAKU, we have formulated measures to prevent arecurrence, and are currently promoting measures to rebuild the Company.
Against this backdrop, we discussed the future direction of KAJITAKU from the perspective ofgroup management. As a result, we decided to continue our housework support business, whichis expected to continue expanding in the future, and in the store support business, we will suspend
sales and installation of new equipment and will focus on fulfilling existing contracts. In order togrow the housework support business and smoothly reorganize the store support business, wedecided to transfer the housework support business to the new company and to continue the store
support business with the current company, and decided to adopt the Company Split.
We will concentrate management resources to a newly established company to establish corecompetencies and aim to move to the next stage of growth as a housework support company.

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News Release: AEON DELIGHT CO., LTD.

(9787 TSE1)
November 29, 2019

2. Outline of the Company Split(1) Schedule of the split
Board of Directors approving incorporation-type company split

November 29, 2019

Resolution date of the general meeting of shareholders ofDecember 25, 2019

KAJITAKU(planned)

Effective date of the company split (the date of establishment

February 4, 2020of the new company)(planned)(2) Method of the Company Split
This is an incorporation-type company split in which KAJITAKU will be a split company, andthe housework support business will be succeeded to a new company.
(3) Details of allotment related to the Company Split
The new company will issue 2,000 shares of common stock at the time of the Company Split
and allot all of the shares to KAJITAKU, the Spin-off Company. At the same time, KAJITAKU
will distribute all shares allotted to KAJITAKU as dividends from surplus to us, which is the100% parent company of KAJITAKU.
(4) Treatment of stock acquisition rights and bonds with stock acquisition rights related to theCompany Split
Not applicable.
(5) Change in capital due to the Company Split
There is no decrease in the capital stock of KAJITAKU due to the Company Split.
(6) Rights and obligations to be succeeded by the new company
On the effective date, the new company will inherit the assets, liabilities, labor contracts,
contractual status, and other rights and obligations of KAJITAKU, the split company, which
belong to the business subject to this company split, within the extent stipulated in theCompany Split Plan.
(7) Prospects of paying debt obligations
We believe that the new company will fulfill its obligations to be incurred in the Company Split.

2News Release: AEON DELIGHT CO., LTD.

(9787 TSE1)
November 29, 2019

3. Outline of the company involved in the Company Split
Spin-off company(As of November 29, 2019)(1)
Company name KAJITAKU CO., Ltd.
(2)
Location
4-3-3, Hatchobori, Chuo-ku, Tokyo(3)
Representative
Kenji Soranaka(4)
Date of
August 22, 2008
establishment(5)Business
Store support businessdescription(6)
Capital stock
155 million yen
Number of270 shares(7)
shares issued(8)
Fiscal year end
End of Feb.
Shareholder
AEON DELIGHT CO., LTD. 100%
(9)Composition

Newly established company(As of November 29, 2019)
TBD*
4-3-3, Hatchobori, Chuo-ku, Tokyo
Kenji Soranaka
February 4, 2020 (planned)
Housework support business
100 million yen
2,000 shares
End of Feb.
AEON DELIGHT CO., LTD. 100%

* The trading name of the new company will be determined from in-house ideas.
4. Financial position and operating results of the split company for the most recent fiscal year
Item

FY2/19 (Millions of yen)

Net sales

5,443

Operating income-4,042

Ordinary income-4,050Net income-4,238

Total assets

1,353

Net assets-13,203

5. Status of the company after the split
For the trade names, locations, representatives, business activities, capital stock and fiscal year-end of
the company and the new company after the split, please refer to the "3. Outline of the company involved in
the Company Split."
6. Future outlook
Companies involved in the Company Split is a wholly-owned subsidiary of us, and the effect of the Split on
our consolidated financial results will be minor.

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