News Release: AEON DELIGHT CO., LTD.

(9787 TSE1)
June 28, 2019

Notice of Corrections to the Summary of Financial Results, etc.
for Past Fiscal Years and Submission of Correction Report on Annual Securities
Reports, etc. for Past Fiscal Years

AEON DELIGHT CO., LTD. announces that we have revised the summary of financial
results for the past fiscal years, and decided to submit the Kinki Local Finance Bureau acorrection report on the annual securities reports, etc. submitted in the previous fiscal year.
We would like to express our deepest apologies to our shareholders, investors and otherstakeholders for their serious inconvenience and concern.

1. Background and Reasons for Correction
As stated in the "Notice of Discovery of Inappropriate Accounting at our Consolidated
Subsidiary and Postponement of Announcement of Financial Results for the Fiscal Year
Ended February 2019" dated April 5, 2019 and the " Notice of Establishment of Special
Investigation Committee" dated April 11, 2019, it was discovered that our consolidated
subsidiary KAJITAKU CO., Ltd. (hereinafter "KAJITAKU") carried out an inappropriate
accounting. With this, on April 11, 2019, we established a special investigation committee
consisting of external experts who do not have an interest in us and commenced aninvestigation.
As stated in the "Announcement of the Annual General Meeting of Shareholders and theStatus of the Special Investigation Committee" dated May 10, 2019 and the "Receipt ofInterim Report from the Special Investigation Committee on Accounting Problems of aConsolidated Subsidiary KAJITAKU," dated May 24, 2019, there were matters that weredeemed to be improper in the course of the investigation, not exclusive errors in inventory
disposal procedures. KAJITAKU did not have adequate accounting records to show theactual situation throughout the period under investigation, and there were no records of thereceipt and payment of goods. As a result, it took time to complete the investigation, including
the impact amount for each accounting period, taking into account the appropriateness ofattribution of the period. As announced in the "Notice of Approval for Extension of theDeadline for Submission of the 46th Annual Securities Report" dated May 31, 2019, following
the receipt of the interim report from the Special Investigation Committee on May 24, 2019,
we received approval to extend the deadline for the submission of the 46th annual securities
report, with the extended deadline as of July 1, 2019.
We announced the "Notice of the Receipt of Investigation Report from the Special
Investigation Committee and Date of Announcement of Financial Results" dated June 27,
2019, and the final report of the investigation results dated today, as we have received the1

final report from the Special Investigation Committee. Based on the investigation results by
the Special Investigation Committee, we have decided to make corrections in the annualsecurities report, etc. of the past fiscal years and the financial results for the past fiscal years
as we consider it is necessary to revise.
We plan to submit the correction report on the annual securities report and the 46th AnnualSecurities Report on July 1, 2019.

2. Contents of correction① Sale from invoicing of uninstalled properties
Some sales transactions were recorded as sales despite the fact that copiers sold were notinstalled by end users.
② Recording of fictitious sales through profit and loss adjustment, etc.
In the KAJITAKU’s Store Support Business, profit and loss adjustments were made tochange the financial accounting figures to the management accounting figures. As a result,sales in financial accounting included transactions that did not meet the sales recognition
requirements.
③ Unbooked purchase of ID photo machines, etc.
Purchases of ID photo machines from March 2018 were not recorded as purchases oraccounts payable.
④ Unbooked purchases of used copiers
In trade-in exchanges involving used copiers, which were executed in the form ofpurchases from leasing companies, a portion of purchases from leasing companies had notbeen recorded at the time of acceptance inspections of such equipment.
⑤ Unbooked purchase of new copiersSome of the purchases of new copiers were not recorded.
⑥ Inventory valuation, etc. that do not reflect actual conditions
The inventory of used copiers did not need to be written down to the lower of cost or market
in accordance with the sales prospects for the future. As a result, the value of used copiers
exceeded the market.
In addition to the impact of the above inappropriate accounting by KAJITAKU, based on theresults of an investigation conducted by the Special Investigation Committee, we have revised
the accounting for past years in which it changed the revenue recognition standard for theKAJITAKU’s Store Support business (from the fiscal year ended February 2014 to the fiscalyear ended February 2019) and recorded a reserve for future specified losses (from the fiscalyear ended February 2016 to the fiscal year ended February 2019).
3. Subject of correction(1) Revised Annual Securities Report, etc.
2

① Annual Securities Report
41st period (March 1, 2013 to February 28, 2014) (*)
42nd period (March 1, 2014 to February 28, 2015)
43rd period (March 1, 2015-February 29, 2016)
44th period (March 1, 2016-February 28, 2017)
45th period (March 1, 2017-February 28, 2018)② Quarterly report
Q1 of 44th period (March 1, 2016 to May 31, 2016)
Q2 of 44th period (June 1, 2016 to August 31, 2016)
Q3 of 44th period (September 1, 2017 to November 30, 2016)
Q1 of 45th period (March 1, 2017 to May 31, 2017)
Q2 of 45th period (June 1, 2017 to August 31, 2017)
Q3 of 45th period (September 1, 2017 to November 30, 2017)
Q1 of 46th period (March 1, 2018 to May 31, 2018)
Q2 of 46th period (June 1, 2018 to August 31, 2018)
Q3 of 46th period (September 1, 2018 to November 30, 2018)(*) This is an annual securities report that is not publicly available as of the end of the period
for public inspection, and the relevant documents will be submitted promptly to theKinki Local Finance Bureau.

(2) Revised Summary of Financial Results, etc. disclosed today① Summary of Consolidated Financial Results
Summary of Consolidated Financial Results for the Fiscal Year Ended February 28,
2014 [Japanese GAAP]
Summary of Consolidated Financial Results for the Fiscal Year Ended February 28,
2015 [Japanese GAAP]
Summary of Consolidated Financial Results for the Fiscal Year Ended February 28,
2016 [Japanese GAAP]
Summary of Consolidated Financial Results for the Fiscal Year Ended February 28,
2017 [Japanese GAAP]
Summary of Consolidated Financial Results for the Fiscal Year Ended February 28,
2018 [Japanese GAAP]② Summary of Quarterly Financial Results
Consolidated Financial Results for the First Quarter of the Fiscal Year Ended February
28, 2017 [Japanese GAAP]
Consolidated Financial Results for the Second Quarter of the Fiscal Year Ende3

February 28, 2017 [Japanese GAAP]
Consolidated Financial Results for the Third Quarter of the Fiscal Year Ended February
28, 2017 [Japanese GAAP]
Consolidated Financial Results for the First Quarter of the Fiscal Year Ended February
28, 2018 [Japanese GAAP]
Consolidated Financial Results for the Second Quarter of the Fiscal Year EndedFebruary 28, 2018 [Japanese GAAP]
Consolidated Financial Results for the Third Quarter of the Fiscal Year Ended February
28, 2018 [Japanese GAAP]
Consolidated Financial Results for the First Quarter of the Fiscal Year Ended February
28, 2019 [Japanese GAAP]
Consolidated Financial Results for the Second Quarter of the Fiscal Year EndedFebruary 28, 2019 [Japanese GAAP]
Consolidated Financial Results for the Third Quarter of the Fiscal Year Ended February
28, 2019 [Japanese GAAP]
4. Effect of the corrections on the consolidated financial results for the past fiscal years
The effect of the corrections on the consolidated financial results for the past fiscal years isas follows.

(1) Annual Securities Report and Summary of Financial Results
BeforeAfterPeriodItemCorrection
correction(A)(B)
41stNet sales
257,243
256,654(Million yen)
Effectamount
(B-A)
-588

(FY2/14)

Operating income

15,11514,622-492

Full year

Ordinary income

15,092

14,600-492

Net income

8,161

7,039

-1,122

Total assets

112,122

111,010-1,112

Net assets

71,31670,145-1,171

Net sales

266,705

265,572-1,133(FY2/15)

Operating income

15,861

15,390-471

Full year

Ordinary income

15,943

15,472-471

Net income

8,725

7,965-760

Total assets

126,044

124,584-1,459Net assets

77,49575,558-1,936

Net sales

281,041

277,926-3,115(FY2/16)

Operating income

16,707

14,556-2,150

Full year

Ordinary income

16,684

14,534-2,150

Net income

9,658

7,247

-2,411

Total assets

131,349

129,434-1,91484,00079,674-4,325

42nd43rd

Net assets
4Period4th

Item

Net sales

BeforeCorrection(A)
294,725

Aftercorrection(B)292,607

Effectamount(B-A)-2,117(FY2/17)

Operating income

17,257

14,139-3,117Full year

Ordinary income

17,381

14,263-3,117

Net income attributable toowners of parent

10,238

7,093-3,145

Total assets

139,505

137,870-1,634

Net assets

92,08984,604-7,485Net sales

295,839

292,396-3,442(FY2/18)

Operating income

16,812

12,909-3,902

Full year

Ordinary income

17,284

13,381-3,902

Net income attributable toowners of parent

10,316

6,397-3,919Total assets

146,828

144,678-2,149Net assets

100,561

89,143-11,417(2) Quarterly Reports and Quarterly Financial Results (Millions of yen)
BeforeAfterPeriodItemCorrection
correction
(A)
(B)
44th
Net sales
75,47275,762

Effectamount(B-A)
289

45th

(FY2/17)

Operating income

3,911

3,654-256

1st quarter

Ordinary income

3,908

3,652-256

Net income

2,681

2,434-247Total assets

134,111

132,805-1,305

Net assets

85,32580,751-4,574

Net sales

151,400

150,804-595

44th(FY2/17)

Operating income

8,505

7,035

-1,469

2nd quarter

Ordinary income

8,506

7,036

-1,469Net income

5,342

3,870

-1,471

Total assets

138,794

137,381-1,413

Net assets

87,79281,992-5,800Net sales

222,872

221,482-1,389(FY2/17)

Operating income

12,455

10,860-1,595

3rd quarter

Ordinary income

12,471

10,876-1,595

Net income

7,637

6,018

-1,618

Total assets

137,185

135,036-2,148

Net assets

88,97883,026-5,951

Net sales

75,51475,064-450(FY2/18)

Operating income

4,082

3,334-748

1st quarter

Ordinary income

4,116

3,367-748

Net income attributable toowners of parent

2,773

2,040-732

141,224

139,635-1,58993,456

85,236-8,22044th

45th

Total assets
Net assets
5Period45th

Item

Net sales

BeforeCorrection(A)
151,801

Aftercorrection(B)
150,738

Effectamount(B-A)-1,062(FY2/18)

Operating income

8,806

7,418

-1,388

2nd quarter

Ordinary income

8,878

7,490

-1,388Net income attributable toowners of parent

5,573

4,189

-1,384

Total assets

144,898

143,708-1,189Net assets

96,46887,594-8,874

Net sales

223,842

222,160-1,682(FY2/18)

Operating income

12,658

10,563-2,094

3rd quarter

Ordinary income

13,06010,965-2,094

Net income attributable toowners of parent

7,651

5,558-2,093

Total assets

145,341

143,320-2,021

Net assets

97,51787,930-9,586

Net sales

76,48076,370-109(FY2/19)

Operating income

4,637

3,785-851

1st quarter

Ordinary income

4,668

3,816-851Net income attributable toowners of parent

2,908

2,067-841

Total assets

147,122

145,528-1,593

Net assets

101,783

89,520-12,262

Net sales

153,884

152,611-1,272

45th

46th

46th
(FY2/19)

Operating income

9,060

6,275

-2,784

2nd quarter

Ordinary income

9,134

6,349-2,784

Net income attributable toowners of parent

5,628

2,838-2,789

Total assets

148,781

146,398-2,383

Net assets

104,416

90,204-14,212Net sales

229,917

226,744-3,172(FY2/19)

Operating income

13,285

8,913-4,371

3rd quarter

Ordinary income

13,6799,307-4,371

Net income attributable toowners of parent

8,287

3,893

-4,394

Total assets

145,289

142,343-2,945

Net assets

99,29083,468-15,82146th6