Summary of Financial Results for the Second Quarter Ended August 31, 2022
[Japan GAAP] (Consolidated)
October 4, 2022
Company
AEON DELIGHT CO., LTD.
Listed on the TSE1
Stock Code9787
URL: https://www.aeondelight.co.jp
Representative
Kazumasa Hamada, President and CEO, Group CEO
Contact
Keiji Sagata, Managing Director, Group Strategy and ESG
T E L: +81-3-6895-3892
Expected date of filing of quarterly report: October 14, 2022
Expected starting date of dividend payment: November 7, 2022
Preparation of quarterly supplementary financial document: Yes
Quarterly results briefing: Yes (for institutional investors and analysts)（Rounded down to million yen）

1. Consolidated business results for the six months ended August 2022
(March 1, 2022 through August 31, 2022)(1) Consolidated results of operations
Net sales

Operating income

Million yen% Million yen
Six months ended Aug. 2022
147,660
6,602
Six months ended Aug. 2021
163,9079.5
8,427(Note) Comprehensive income
Six months ended August 2022: 5,795 million yen (-%)
Six months ended August 2021: 5,957 million yen (56.2%)%
12.4(% change from the previous corresponding period)
Net income attributable toowners of parent

Ordinary income
Million yen
6,602
8,489

%
13.2

Million yen
4,336
5,557

%
40.9

Net income
per share

Diluted net income per
share
Yen
Yen
Six months ended Aug. 2022
86.68
86.62
Six months ended Aug. 2021
111.14111.04(Note) The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others are applied since thebeginning of the first quarter of the fiscal year under review. As for the figures related to the second quarter of the fiscal year
ending February 2023, these standards have been applied, and the year-on-year percentage changes are not presented. Applying
this accounting standard to net sales, net sales would be 146,580 million yen for the second quarter of the fiscal year ended
February 2022, and the year-on-year percentage change for the second quarter of the fiscal year ending February 2023 would be
0.7% with 147,660 million yen of net sales.

(2) Consolidated financial position
Total assets

Net assets

Million yen
As of Aug. 31, 2022
147,165
As of Feb. 28, 2022
142,859(Reference) Shareholders’ equity:
As of August 2022: 97,182 million yen
As of February 2022: 94,577 million yen

Million yen
98,134
95,421

Shareholders’ equity
ratio
%
66.0
66.2

2. Dividends
End of 1Q
Yen

End of 2Q
Yen

Annual dividend
End of 3Q
Yen

Year ended Feb. 2022
Ordinary dividend
37.00
Commemorative dividend
5.00
Total
42.00
Year ending Feb. 2023
42.00
Year ending Feb. 2023 (forecast)(Note) Revisions to dividend forecast for the current quarter: None
The commemorative dividend is paid in commemoration of the 15th anniversary of AEON DELIGHT.

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Year-end
Yen

Total
Yen

37.00
5.00
42.00

74.00
10.00
84.00

43.00

85.00

3．Forecast of consolidated business results for the fiscal year ending February 2023
(March 1, 2022 through February 28, 2023)(% change from the previous corresponding period)
Net sales

Operating income

Million yen% Million yen%
310,000-2.4
17,0008.1(Note) Revisions to business forecast for the current quarter: None

Year ending Feb. 2023

Ordinary income
Million yen
17,000%7.7

Net income attributable toowners of parent

Million yen
10,700%0.3

Net income per
share
Yen

213.91*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes inthe scope of consolidation): None
(2) Application of accounting procedures specific to preparation of the consolidated quarterly financial statements:
None(3) Changes in accounting policies, accounting estimates and restatement①Changes in accounting policies associated with revision of accounting standards:②Changes in accounting policies other than ①③Changes in accounting estimates④Restatement: Yes: None: None: None(4) Shares outstanding (common stock)①Number of shares outstanding at the end of period (treasury stock included)
As of August 2022
50,669,633 shares
As of February 2022
54,169,633 shares②Treasury stock at the end of period
As of August 2022
648,447 shares
As of February 2022
4,148,409 shares③Average number of stock during period (quarterly cumulative period)
Six months ended August 2022
50,021,202 shares
Six months ended August 2021
50,007,085 shares*Quarterly financial summary is not subject to the quarterly review procedures by certified public accountants or auditing firms.
*Explanation regarding appropriate use of business forecasts and other special instructions(Precautions regarding forward-looking statements)
Forecasts regarding future performance in this material are based on information currently available to the company and certain
assumptions that the company deems to be reasonable at the time this report was prepared. The company does not make promises about
the achievements. Actual results may differ significantly from the forecasts due to various factors.

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Quarterly Consolidated Financial Statements and Significant Notes(Quarterly Consolidated Balance Sheets)(Million yen)Previous Fiscal Year
(February 28, 2022)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Notes and accounts receivable - trade, and contract assets
Electronically recorded monetary claims
Securities
Inventories
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures, net
Tools, furniture and fixtures, net
Land
Other, net
Total tangible fixed assets
Intangible fixed assets
Goodwill
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investment and other assets
Total fixed assets
Total assets-3-

Current Second Quarter(August 31, 2022)

68,28240,708
4,220
2,074
5,861
-134
121,01362,222
46,030
5,187
3,499
4,179
4,168
-167
125,120

1,629
3,589
466
1,394
7,080

1,605
3,283
466
1,551
6,906

3,360
2,293
5,653

3,527
2,954
6,482

3,720
5,421
-30
9,111
21,845
142,859

4,099
4,580
-22
8,656
22,045
147,165

(Million yen)Previous Fiscal Year
(February 28, 2022)
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations - operating
Short-term borrowings
Income taxes payable
Provision for bonuses
Accrued directors' and corporate auditors' remuneration
Asset retirement obligations
Allowance for sales discounts
Other
Total current liabilities
Fixed liabilities
Provision for directors' retirement benefits
Retirement benefit liability
Asset retirement obligations
Allowance for sales discounts
Other
Total fixed liabilities
Total liabilities
Net assets
Shareholder’s equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Other accumulated comprehensive income
Valuation difference on securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total other accumulated comprehensive income
Share subscription rights
Non-controlling shareholders' equity
Total net assets
Total liabilities and net assets-4-

Current Second Quarter(August 31, 2022)

22,070
4,415
247
2,326
1,363
84
6
120
13,25743,892

24,442
5,229
439
1,237
1,787
37
114
12,62645,915

84
1,486
416
80
1,477
3,544
47,437

69
1,437
416
36
1,153
3,114
49,0303,238
13,23986,559-10,077
92,9583,238
4,736
87,706-1,575
94,106

921
961
-263
1,619
86
757
95,421
142,859

1,153
2,158
-234
3,076
98
852
98,134
147,165

Quarterly Consolidated Statement of Income and Quarterly Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(For the six months period)(Million yen)Previous Second Quarter(March 1, 2021–
August 31, 2021)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in income of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sale of fixed assets
Gain on sales of investment security
Subsidies for employment adjustment
Total extraordinary income
Extraordinary loss
Impairment loss
Loss due to response to new infections
Other
Total extraordinary loss
Profit before income taxes
Income taxes
Income taxes-deferred
Total income taxes
Net income
Net income (loss) attributable to non-controlling interests
Net income attributable to owners of parent-5-

Current Second Quarter(March 1, 2022–
August 31, 2022)

163,907
143,444
20,462
12,035
8,427

147,660
128,054
19,606
13,004
6,602

8
43
44
45
142

16
47
46
48
157

17
63
80
8,489

10
146
157
6,602

170
126
296

6
17
23

87
98
150
336
8,448
1,790
1,127
2,918
5,530
-27
5,557

59
59
6,567
1,001
1,234
2,236
4,330
-5
4,336

(Quarterly Consolidated Statement of Comprehensive Income)(For the six months period)(Million yen)Previous Second Quarter(March 1, 2021–
August 31, 2021)
Net income
Other comprehensive income
Valuation difference on securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable toowners of parent
Comprehensive income attributable tonon-controlling interests-6-

Current Second Quarter(March 1, 2022–
August 31, 2022)

5,530

4,330

-160
549
38
426
5,957

231
1,204
28
1,465
5,795

5,981

5,793

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2

Consolidated Statement of Cash Flows(Million yen)

Net cash provided by (used in) operating activities
Profit before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance sales discount
Increase (decrease) in other allowancesInterest and dividend income
Interest expenses
Loss (gain) on sale of non-current assets
Equity in loss (gain) of affiliates
Loss (gain) on sale of investment securities
Loss (gain) on sale of investment securities
Decrease (increase) in notes and accounts receivable- trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in accounts receivable-other
Increase (decrease) in advances received
Increase (decrease) in advance revenue
Other
Sub-totalInterest and dividend received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of securities
Purchase of property, plant and equipment and intangible
fixed assets
Proceeds from sale of tangible and intangible fixed assets
Purchase of investment securities
Proceeds from sales and redemption of short-term andlong-term investment securities
Increase in subsidiaries arising from change in scope of
consolidation
Other
Net cash provided by (used in) investing activities
Cash flow from financing activities
Net increase (decrease) in short-term borrowings
Cash dividends paid
Other
Cash flow from financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-7-

Previous Second Quarter(March 1, 2021–
August 31, 2021)

Current Second Quarter(March 1, 2022–
August 31, 2022)

8,448
1,308
87
356
-67
494
-52
17
-171
-44
0
-8,002
67
2,262
-555
-879
93
140
-303
-646
2,555
100
-16
-880
1,758

6,567
1,182
392
-48
359
-63
10
-0
-46
-1
-6
-5,666-2,094
2,945
-750
-485
-468
208
-223
463
2,274
84
-10
-1,425
923

-179
269
-

-90
104
-3,499-1,545-1,665

885
-12

1
-12

9

13

-

-489

163
-409

-303
-5,94160-2,349-188-2,477491-636
58,93758,300151-2,100-118-2,0661,027-6,05767,52061,462

(4) Notes on quarterly consolidated financial statements(Notes on going concern assumption)
None(Notes if there is a significant change in the amount of shareholders' equity)
The Company adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29,
March 31, 2020) from the beginning of the first quarter of the fiscal year under review. The effects of thischange are described in "2.Quarterly Consolidated Financial Statements and Major Notes, (4) Notes to
Quarterly Consolidated Financial Statements (Changes in Accounting Policies).”
In addition, on April 7, 2022, the Board of Directors resolved to cancel treasury stock in accordance with
Article 178 of the Companies Act. Of the 4,148,409 shares of treasury stock held by the Company,
3,500,000 shares of common stock were cancelled on April 28, 2022. As a result, capital surplus andtreasury stock decreased by 8,502 million yen each during the second quarter, resulting in a capital surplusof 4,736 million yen and treasury stock of -1,575 million yen at the end of the second quarter of the current
fiscal year.
(Changes in accounting policies)(Applications of Accounting Standard for Revenue Recognition, etc.)
The Company adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March
31, 2020. Hereafter “Accounting Standard for Revenue Recognition.”), etc. from the beginning of the firstquarter of the current consolidated accounting period and recognized revenue when control of promised goods
or services is transferred to customers at an amount that it expects to receive in exchange for those goods orservices.
As a result, for a part of the materials-related business and the vending machine business, the Company haschanged from recognizing revenue in the total amount of consideration received from customers to recognizing
revenue in the net amount calculated by subtracting the amount paid to suppliers from the total amount. In
addition, for a part of the facilities management business, we have changed the method of recognizing revenue
at one point of service provision from what we recognized revenue over a certain period of time based on thecontract. Accordingly, the corresponding cost of sales is also systematized from the previous simplified
accounting treatment, which is in line with the accounting treatment of recognizing revenue at a point in time
when services are rendered.
The applications of the Accounting Standard for Revenue Recognition, etc., are conformable to thetransitional treatment stipulated in the provisions of P.84 of the Accounting Standard for Revenue Recognition,and the cumulative effect of retrospectively applying a new accounting policy prior to the beginning of the firstquarter of the current consolidated accounting period has been adjusted to retained earnings at the beginning of
the first quarter of the current consolidated accounting period, and the new accounting policy has been applied
from the beginning balance of the current fiscal year.
However, the new accounting policy has not been retroactively applied to contracts that apply the methods
set forth in P.86 of the Accounting Standard for Revenue Recognition and that recognize almost all proceeds inaccordance with previous treatment prior to the beginning of the first quarter of the consolidated accounting
period. Moreover, the method stipulated in P.86 (1) of the Accounting Standard for Revenue Recognition has
been applied and accounting is done based on the terms and conditions of the contract after reflecting allcontract changes for the contract changes made prior to the beginning of the first quarter of the current
consolidated accounting period. The cumulative effect has been adjusted to retained earnings at the beginning of
the first quarter of the current consolidated accounting period.
As a result, net sales for the current consolidated cumulative second quarter decreased 17,651 million yen,cost of sales decreased 17,646 million yen, and operating income, ordinary income and net income before
income taxes increased 4 million yen, respectively. The balance of retained earnings at the beginning of thecurrent fiscal year decreased 1,087 million yen.
Due to the applications of the Accounting Standard for Revenue Recognition, etc., “notes and accounts
receivable – trade” indicated in the “current assets” in the consolidated balance sheet in the previous
consolidated fiscal year has been included in the “notes receivable, accounts receivable and contract assets”
from the current first quarter of the current consolidated accounting period. In accordance with the transitional
treatment stipulated in P.89-2 of the Accounting Standard for Revenue Recognition, the previous consolidated-8-fiscal year has not been reclassified under the new indication method.

(Application of Accounting Standard for Calculation of Fair Market Value)
The Company has applied the "Accounting Standard for Calculation of Fair Market Value" (ASBJ Statement
No. 30, July 4, 2019.) from the beginning of the first quarter of the fiscal year under review, and have decided toapply the new accounting policy established by the Accounting Standard for Calculation of Fair Market Value,etc., in accordance with the transitional treatment specified in paragraph 19 of the Accounting Standard for
Calculation of Fair Market Value and paragraph 44-2 of the "Accounting Standards for Financial Instruments"(ASBJ Statement No. 10 July 4, 2019). The adoption of the Accounting Standard for Calculation of Fair Market
Value and other standards did not have a material impact on the quarterly consolidated financial statements.

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