News Release: AEON DELIGHT Co., Ltd.

(9787 TSE1)
August 25, 2020

Notice of Absorption-type Merger between Consolidated Subsidiaries

At the meeting of the Board of Directors held on August 25, 2020, we resolved to merge ourconsolidated subsidiary, A to Z Service Co., Ltd. (hereinafter "A to Z Service"), with DO SERVICE co.,ltd.
("DO SERVICE"), on March 1, 2021.
Since this merger is a merger between our consolidated subsidiaries, some details and contents havebeen omitted.
１． Purpose of the merger
In October 2018, we formulated Aeon Delight Vision 2025 ("Vision 2025") with the aim of achieving
further sustainable growth. Under the plan, we intend to be an environmental value-creating company
that solves social issues based on the three pillars of our growth strategy of "Safety and Security,""Labor Shortage," and "Environment." In order to realize Vision 2025, we have been working toestablish our corporate brand as a group of facility management ("FM") professionals, and to create
regional economic zones in each area where we operate our business. From the fiscal year 2020, wehave been restructuring the Group to clarify the roles and functions of each Group company toward theformation of a regional economic zone, improve the Group's capital productivity, and strengthen thegovernance system. As part of this plan, the objective of the merger is to strengthen competitiveness in
the FM market in small and medium-sized facilities.
A to Z Service's customers are mainly small and medium-sized nationwide chains including
convenience stores and fast food restaurants, mainly in eastern Japan. A to Z Service supports indirect
operations related to the store's life cycle through a series of construction and maintenance, fromlaunch of new stores, operation, maintenance and renovation, with a call center available 24 hours aday, 365 days a year.
DO SERVICE's customers are mainly a wide range of medium and small commercial facilities inwestern Japan. DO SERVICE offers a variety of cleaning services, ranging from daily cleaning toregular cleaning, that are required to maintain the aesthetics of the facility.
In the new company, the two companies will complement each other's strengths in their respective
areas and integrate their operations to expand services provided to existing customers and to cultivate
new customers, primarily small and medium-sized chain stores located nationwide. In addition, we will
strengthen each function through the integration of administrative divisions and improve profitability byconsolidating overlapping divisions. In addition to the expertise that both companies have cultivatedover the years, the new company will support the further growth of customers who operate small andmedium-sized facilities by utilizing the combined strength of the two companies to provide total services
nationwide, from design to construction, facility management and cleaning from the launch.

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News Release: AEON DELIGHT Co., Ltd.

(9787 TSE1)

２． Summary of the merger(1) Schedule
Board of Directors approved the merger agreement: August 25, 2020
Conclusion of merger agreement: August 25, 2020
General Meeting of Shareholders to approved the Merger
A to Z Service: August 25, 2020
DO SERVICE: August 25, 2020
Date of merger (effective date): March 1, 2021 (planned)(2) Merger method
The merger is an absorption-type merger, with A to Z Service as the surviving company and DOSERVICE as the merged company.
(3) Contents of allotment pertaining to the merger
Since the merger is between our wholly owned subsidiaries, there will be no issuance of new sharesor allotment of money, etc. as a result of this merger.
(4) Treatment of stock acquisition rights and bonds with stock acquisition rights as a result of the merger
None applicable.
３． Summary of the parties to the merger (as of August 25, 2020)
Surviving company(1) Name

Merged company

A to Z Service Co., Ltd.

DO SERVICE co.,ltd.

6-24-16, Shinjuku, Shinjuku-ku,

7-13-36, Minamitsumori,TokyoNishinari-ku, Osaka-shi, OsakaHiroyuki Kishino, President andAkihiro Kishi, President andRepresentative Director
Construction and facility
management of small andmedium-sized commercial
facilities, mainly nationwide chain
storesRepresentative Director
Cleaning and sales of materials
for small and medium-sizedcommercial facilities and otherfacilities for a wide range ofapplications(5) Capital

134.8 million yen

10 million yen(6) Establishment date(7) Number of outstanding

October 1989

August 1993

1,860 shares

200 shares

End of February

End of February

Our Company 100.0%

Our Company 100.0%(2) Location(3) Representative(4) Business Contentshares(8) Fiscal year end(9) Major shareholders andshareholding ratio(10) Financial position and results of operations for the most recent fiscal year
Fiscal year end

FY2/20FY2/20Net assets

2,829 million yen

1,545 million yen

Total assets

4,269 million yen

2,345 million yen

Net assets per share (yen)1,534,234.47 yen

7,728,661.79 yen

Net sales

8,984 million yen

10,056 million yen

334 million yen

259 million yen

Operating income-2-News Release: AEON DELIGHT Co., Ltd.

(9787 TSE1)

Ordinary income

338 million yen

259 million yen

Net income

230 million yen

170 million yen

Net income per share

125,205.78 yen

850,995.63 yen

４． Status after the merger(1) Name

TBD *To be decided from internal ideas(2) Location

6-24-16, Shinjuku, Shinjuku-ku, Tokyo(3) Representative

TBD
Construction, facility management, cleaning, andsales of materials for small and medium-sizedfacilities(4) Business Content(5) Capital

134.8 million yen(6) Establishment dateMarch 1, 2021

(7) Number of outstanding shares

1,860 shares(8) Fiscal year end

End of February(9) Major shareholders and shareholding ratio

Our Company 100.0%

５． Future outlook
As this merger is a merger between consolidated subsidiaries, its effect on consolidated results ofoperations is immaterial.

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