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
May 2, 2022
To our shareholders:Kazumasa Hamada, President
AEON DELIGHT CO., LTD.
2-3-2 Minamisemba, Chuo-ku, Osaka City, Osaka

Notice of the 49th Annual General Meeting of Shareholders
We are pleased to announce the 49th 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.
We also accept questions from shareholders over the Internet. Please refer to the notice on acceptance of questionsin advance for details. 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 17, 2022 (JST).
1. Date and Time: Wednesday, May 18, 2022, 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 49th fiscal year (from March 1, 2021
to February 28, 2022), 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 49th fiscal year (from March 1, 2021 to February 28,
2022)
Matters to be resolved:
Proposal No. 1
Partial Amendments to the Articles of Incorporation
Proposal No. 2
Election of Eight Directors
Proposal No. 3
Election of Two 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

Partial Amendments to the Articles of Incorporation

1. Reasons for Proposal
Since the revised provisions provided for in the proviso to Article 1 of the Supplementary Provisions of the Act
Partially Amending the Companies Act (Act No. 70 of 2019) are to be enforced on September 1, 2022, theCompany proposes to make the following changes to its Articles of Incorporation in preparation for the
introduction of the system for providing informational materials for the general meeting of shareholders inelectronic format.
(1) Article 14, paragraph 1 in “Proposed Amendments” below will stipulate that the Company shall takemeasures for providing information that constitutes the content of reference documents for the general
meeting of shareholders, etc. in electronic format.
(2) Article 14, paragraph 2 in “Proposed Amendments” below will establish the provision to limit the scope of
the items to be stated in the paper-based documents to be delivered to shareholders who requested thedelivery of paper-based documents.
(3) Since the provisions for Internet Disclosure and Deemed Provision of Reference Documents for the
General Meeting of Shareholders, Etc. (Article 14 of the current Articles of Incorporation) will no longer
be required, they will be deleted.
(4) Accompanying the aforementioned establishment and deletion of provisions, supplementary provisions
regarding the effective date, etc. will be established.
2. Details of the Amendments
Details of the amendments are as follows:(Amendments are underlined.)
Current Articles of Incorporation

Proposed Amendments(Internet Disclosure and Deemed Provision of Reference
Documents for the General Meeting of Shareholders, Etc.)
Article 14(Deleted)

When the Company convenes a general meeting ofshareholders, if it discloses information that is to be stated orpresented in the reference documents for the general meeting ofshareholders, business report, financial statements andconsolidated financial statements through the Internet inaccordance with the provisions prescribed by the Ministry ofJustice Order, it may be deemed that the Company has
provided this information to shareholders.
(Newly established)(Measures, etc. for Providing Information in Electronic Format)
Article 14
1. When the Company convenes a general meeting ofshareholders, it shall take measures for providing
information that constitutes the content of reference
documents for the general meeting of shareholders, etc. inelectronic format.
2.

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Among items for which the measures for providing
information in electronic format will be taken, theCompany may exclude all or some of those items
designated by the Ministry of Justice Order fromstatements in the paper-based documents to be delivered
to shareholders who requested the delivery of paper-based
documents by the record date of voting rights.

Current Articles of Incorporation(Newly established)

Proposed Amendments(Supplementary Provisions)

-3-

1.

The deletion of Article 14 (Internet Disclosure andDeemed Provision of Reference Documents for the
General Meeting of Shareholders, Etc.) in the preamended Articles of Incorporation and the establishmentof the new Article 14 (Measures, etc. for Providing
Information in Electronic Format) in the amended Articles
of Incorporation shall be effective from the date ofenforcement of the revised provisions provided for in theproviso to Article 1 of the Supplementary Provisions of
the Act Partially Amending the Companies Act (Act No.
70 of 2019) (hereinafter referred to as the “Date of
Enforcement”).

2.

Notwithstanding the provision of the preceding paragraph,
Article 14 of the pre-amended Articles of Incorporation
shall remain effective regarding any general meeting ofshareholders held on a date within six months from theDate of Enforcement.

3.

These Supplementary Provisions shall be deleted after thedate when six months have elapsed from the Date of
Enforcement or three months have elapsed from the dateof the general meeting of shareholders in the preceding
paragraph, whichever is later.

Proposal No. 2

Election of Eight Directors

At the conclusion of this meeting, the terms of office of all eight Directors will expire. In this regard, the Company
proposes the election of eight Directors.
In addition, all candidates for outside Director satisfy the requirements of an independent officer under the provisionsof the Tokyo Stock Exchange. Furthermore, the Company stipulates the following items as conditions of eligibility
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 business executionof 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 have the personality and insight appropriate for being an outside Director.
2. The candidate shall subscribe to the Company’s management principles, code of conduct, etc.
3. The candidate shall have extensive experience as a chief executive officer or other corporate executive, or shallhave comparable experience, knowledge and insight.
4. The candidate shall be able to make judgments independently of the Company’s management.
5. 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.

-4-

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

1

Number of theCompany’s shares
ownedJoined JUSCO Co., Ltd. (currently Aeon Co.,
Ltd.)
Nov. 2006
Head of Management Planning Department ofPosful Corporation (currently AEON Hokkaido
Corporation)
Mar. 2007
Executive Officer
Sept. 2008
General Manager of Control Division of AEON
Retail Co., Ltd.
Mar. 2011
Executive Officer
Mar. 2013
Director and Control and Accounting Officer ofAeon Co., Ltd.
Feb. 2015
Regional Office Manager of Kitakanto andNiigata Company of AEON Retail Co., Ltd.
Feb. 2015
Director and Senior Managing Executive
Kazumasa Hamada
Officer(December 30, 1964)
1,100 sharesMar. 2017
Senior Managing Executive Officer
Reelection
Mar. 2018
Temporarily transferred to the Company(Advisor)
May 2018
President and CEO
Dec. 2018
President Commissioner of PT Sinar Jernih
Sarana (current position)
July 2019
President and CEO, and Group CEO of theCompany
Dec. 2019
President and CEO, Group CEO and General
Manager of Financial and Accounting Division(CFO)
Apr. 2020
President and CEO, and Group CEO (current
position)
July 2021
Director of AEON DELIGHT (CHINA) CO.,LTD. (current position)
Reasons for selection as candidate for Director and roles expected to be performed
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. He has served as President and CEO of the Company since May 2018, and has
promoted the growth of the Group in this role. The Company judges that he can continue to contribute to sustainablegrowth and the increase of corporate value by providing appropriate supervision of the Group’s overall management asa Director, and has therefore selected him as a candidate for Director.
Conflicts of interest
There is no conflict of interest between Kazumasa Hamada and the Company.

-5-

Candidate
No.

Name
(Date of birth)

Career summary, position, and responsibility in the Company,
and significant concurrent positions outside the Company
Jan. 1999
June 2007

2

Number of theCompany’s shares
ownedJoined the Company
Manager, QMS Department, Crisis
Management & QMS Division
Mar. 2008
Manager, Cleaning Business Department,
Cleaning Business Division
Mar. 2010
General Manager, Cleaning Business Division
May 2016
Executive Officer and General Manager ofCleaning Business Division
Goro Miyamae(November 17, 1965)
Nov. 2018
Executive Officer and General Manager of
1,100 shares
Service Network Promotion Division
New election
July 2019
Executive Officer and Manager of Kanto
Regional Office
Mar. 2020
Executive Officer in charge of overseeing East
Japan operations
Feb. 2021
Executive Officer in charge of overseeing
Marketing DX
Mar. 2021
Managing Director in charge of overseeing
Marketing DX (current position)
Reasons for selection as candidate for Director and roles expected to be performed
Goro Miyamae has served in the Company as a general manager and as an executive officer in charge of overseeing thecleaning business, a regional office, marketing and DX promotion. He has sufficient knowledge of the Company’s
operations, and excellent management decision making capability and management execution capability as a Managing
Director. The Company judges that he is able to draw upon his experience and knowledge to supervise management
execution as a Director and play an adequate role in deciding on important matters, and has therefore selected him as a
candidate for Director.
Conflicts of interest
There is no conflict of interest between Goro Miyamae and the Company.

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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. 1980
Sept. 2006
Mar. 2011
Mar. 2012
Mar. 2013

3

Number of theCompany’s shares
ownedJoined the Company
Manager of Sales Department IV
General Manager of Sales Promotion Division
Manager of Minamikanto Regional Office
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 Director in charge of operations
May 2018
Director and Managing Director in charge of
operations
Mar. 2019
Director and Managing Director in charge of
Hideyuki Mito
overseeing business(July 19, 1961)
July 2019
Managing Director in charge of overseeing
1,300 sharesbusiness
Reelection
Mar. 2020
Managing Director in charge of overseeing
business, and COO of Japan Group Business
Oct. 2020
Managing Director 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.)May 2021
Director of the Company
Mar. 2022
Director and Managing Director
Apr. 2022
Director, Managing Director, and COO of
Japan Group Companies (current position)
Reasons for selection as candidate for Director and roles expected to be performed
Hideyuki Mito has served in the Company as a general manager and an executive officer in charge of regional offices
and businesses, and of the Japan Group business. He has sufficient knowledge of the Company’s operations as well as
experience as President of the Group’s core company, AEON DELIGHT CONNECT CO., LTD. The Company judgesthat he is able to continue to supervise management execution as a Director and play an adequate role in deciding onimportant matters, and has therefore selected him as a candidate for Director.
Conflicts of interest
There is no conflict of interest between Hideyuki Mito and the Company.

-7-

Candidate
No.

Name
(Date of birth)

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

4

Number of theCompany’s shares
ownedJoined Isejin Jusco Co., Ltd. (currently Aeon
Co., Ltd.)
Sept. 2003
General Manager of Administration Division of
Kanto Company of JUSCO Co., Ltd.
May 2006
Representative Director of AEON Financial
Project Co., Ltd. (currently, AEON Bank, Ltd.)
Sept. 2006
Director in charge of overseeing Human
Resources and General Affairs, and Public
Relation
Apr. 2008
Director and Managing Executive Officer incharge of Human Resources and General
Affairs
June 2012
Director, Senior Managing Executive Officer,and Head of Corporate Management DivisionNov. 2012
Director of AEON CREDIT SERVICE CO.,LTD. (currently, AEON Financial Service Co.,
Hiroyuki Watanabe
Ltd.)(July 17, 1958)
0 shares
Apr. 2014
Representative Director and Senior Managing
Reelection
Executive Officer, Head of Sales Division of
AEON Bank, Ltd.
Apr. 2015
President and Representative Director
June 2017
Director and Executive Vice President of
AEON Financial Service Co., Ltd.
Sept. 2018
Executive Officer in charge of Human
Resources and Administration, Administration& Risk Management of Aeon Co., Ltd.
Oct. 2018
Director of AEON Financial Service Co., Ltd.
(current position)
May 2021
Director of the Company (current position)
Mar. 2022
Executive Vice President and Executive Officer
in charge of Human Resources andAdministration, Administration & Risk
Management of Aeon Co., Ltd. (current
position)
Reasons for selection as candidate for Director and roles expected to be performed
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 Bank, Ltd. and AEON Financial Service Co., Ltd., its subsidiaries. The Company judgesthat he is able to draw upon the experience and knowledge he has accumulated in his career to supervise management
execution as a Director and play an adequate role in deciding on important matters, and has therefore selected him as a
candidate for Director.
Conflicts of interest
There is no conflict of interest between Hiroyuki Watanabe and the Company.

-8-

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
Reelection
5,100 shares
Support & Management Division
Candidate for outside Director
Mar. 2010
In charge of Global Procurement and Director
Candidate for independentof Corporate Procurement Division; in charge
officerof 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 (outside, current
position)
Reasons for selection as candidate for outside Director and roles expected to be performed
Masaaki Fujita provides accurate advice to the Company’s management of technology (MOT) based on his abundant
experience in quality control and production control. Furthermore, the Company judges that he can continue tosupervise management execution as a Director by contributing to improve the Company’s management and corporate
governance in the areas of cross-industry and global business development, knowledge of management, and humanresource development, among others, and play an adequate role in deciding on important matters, and has therefore
selected him as a candidate for Director.
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
seven years.

-9-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
July
2007
Deputy Vice-Minister for Tourism Policy,
Yoshiaki Hompo
Minister’s Secretariat of Ministry of Land,(April 20, 1949)
Infrastructure, Transport and Tourism
Oct.
2008
Commissioner of Japan Tourism Agency
Reelection
1,500 shares
Professor of Tokyo Metropolitan University
Candidate for outside Director Apr. 2010
Candidate for independent
Jan. 2014
Special Adviser of Japan Tourism Agency
officer
Nov. 2014
Adjunct Professor of Tokyo Institute ofTechnology
Apr. 2015
Research Professor of Tokyo Metropolitan
University
June 2015
Director of THE KEIHIN CO., LTD. (outside,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
May 2017
Director of the Company
Apr. 2018
Visiting Professor at Tokyo Metropolitan
University (current position)
Aug. 2021
Director and Chairman of Tobu Top Tours Co.,Ltd.
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. He also has experience in the area of human resource development as a specially-appointed
professor at Universities. The Company judges that through such experience, he can continue to supervise management
execution as a Director by contributing to improve the Company’s management and corporate governance, and play anadequate role in deciding on important matters, and has therefore selected him as a candidate for 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 been
five 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
Business Unit
June 2008
Director, Executive Officer, and Head of
Keiji Yoshikawa
Specialty Glass Worldwide(July 6, 1950)
Feb. 2012
Director, Representative Executive Officer, andExecutive Vice President and CPMO (Chief
Reelection
0 shares
Project Management Officer)
Candidate for outside Director
Apr. 2012
Director, Representative Executive Officer, andCandidate for independent
President and CEO
officerJune 2015
AdvisorJune 2018
Director of Kansai Paint Co., Ltd. (outside,current position)
May 2021
Director of the Company (outside, current
position)
June 2021
Director and Member of the Audit andSupervisory Committee of Fujikura Ltd.
(outside, current position)
Reasons for selection as candidate for outside Director and roles expected to be performed
Keiji Yoshikawa has management experience as the representative executive officer and president and CEO of acompany listed on the first section of the Tokyo Stock Exchange, as well as experience as the top of a global
corporation based in Japan. The Company therefore judges that he is able to continue to supervise management
execution as a Director by contributing to improve the Company’s management and corporate governance, not only in
the Company’s domestic business but also its overseas business management, and play an adequate role in deciding onimportant matters, and has therefore selected him as a candidate for Director.
Conflicts of interest
There is no conflict of interest between Keiji Yoshikawa and the Company.
Note: The Company has entered 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. 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
one year.

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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

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
Apr. 2003
Assistant Professor of Faculty of Business
Administration
Apr. 2008
Associate Professor of Hosei Business School
Asako Takada
of Innovation Management(March 20, 1964)
Apr. 2011
Professor of Hosei Business School ofReelection
0 shares
Innovation Management (current position)
Candidate for outside Director Sept. 2015
Director of Global MBA Program, Hosei
Candidate for independent
Business School of Innovation Management
officer(current position)
Apr. 2021
General Manager of Recurrent Education
Office of Hosei University (current position)
May 2021
Director of the Company (outside, current
position)
Apr. 2022
Advisor on regrowth of The Asahi Shimbun
Company (current position)
Reasons for selection as candidate for outside Director and roles expected to be performed
Asako Takada has insight and knowledge in the areas of organization theory and innovation, which are her research
fields as a university professor. The Company judges that she is able to continue to supervise management execution asa Director by drawing on these to contribute to promote organizational culture reforms for improving the Company’s
corporate value, improving the Company’s corporate governance, and promoting diversity, and play an adequate role indeciding on important matters, and has therefore selected her as a candidate for Director.
Conflicts of interest
There is no conflict of interest between Asako Takada and the Company.
Note: The Company has entered 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. If her reelection is approved, the Company plans to renew this agreement with her. She iscurrently an outside Director of the Company, and at the conclusion of this meeting, her tenure will have been
one year.

[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 for the
performance of their duties or receives a claim related to the pursuit of such responsibility. However, loss, etc. resulting from criminal
acts and intentional violations of the law by the Directors themselves are not covered. When the candidates assume their offices as
Directors, 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.

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Proposal No. 3

Election of Two Auditors

Auditor Hiroshi Mitsui will resign at the conclusion of this meeting. Therefore, the Company proposes the electionof one Auditor as his substitute. If the election of the candidate for Auditor Takashi Kuroda as the substitute isapproved as proposed in this proposal, as provided for under Article 28, paragraph 2 of the Company’s Articles ofIncorporation, his term of office shall be until the conclusion of the 52nd Annual General Meeting of Shareholders,which is the expiration date of the term of office of the resigning Auditor Hiroshi Mitsui.
The term of office of Auditor Masato Nishimatsu will expire at the conclusion of this meeting. Therefore, theCompany proposes the election of one Auditor. If the election of the candidate for Auditor Mari Ebisui as a new
Auditor is approved as proposed in this proposal, her term of office shall be until the conclusion of the 53rd Annual
General Meeting of Shareholders.
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
Apr. 1987

1

Number of theCompany’s shares
ownedJoined The Chuo Trust and Banking Company,
Limited (currently Sumitomo Mitsui Trust
Bank, Limited)Nov. 2000
Director and General Manager of
Administration Division of DBMG Inc.
Dec. 2006
Affiliates Department of AEON CO., Ltd.
Sept. 2008
Temporarily transferred to The Daiei, Inc.
Apr. 2014
Project Leader, AEON Financial Co., Ltd.
Apr. 2015
Manager of Strategy Department
Takashi Kuroda
Apr. 2016
Executing Officer in charge of overseeing(July 12, 1964)
strategy of AEON Bank, Ltd.
0 shares
May 2018
Director and Executive Officer in charge ofNew election
Business Planning
Candidate for outside Auditor Apr. 2019
Director, Executive Officer and General
Manager of Business Planning Division
Apr. 2019
Director in charge of Business Planning of AFS
Corporation Co., Ltd.
June 2019
Director and Executive Officer, Head ofBusiness Planning Division of AEON Bank,
Ltd.
Apr. 2021
Director, Managing Executive Officer, andHead of Corporate Management Division(current position)
Reasons for selection as candidate for outside Auditor
Takashi Kuroda, currently or in the past ten years, is or was an Executing Person at AEON Bank, Ltd. and AEON
Financial Service Co., Ltd., subsidiaries of the Company’s parent company. Takashi Kuroda has served as the person in
charge of business planning and corporate management at AEON Bank, Ltd., the core company of the AEON Group’s
general finance business. He has also supervised management execution as a Director of the company. The Company
judges that he will draw on the experience and knowledge acquired through his career to date to contribute to thefurther enhancement of the Company’s audit operations as an outside Auditor, and has selected him as a candidate foroutside Auditor.
Conflicts of interest
There is no special interest between Takashi Kuroda and the Company.
Note: The Company plans to enter into an agreement with Takashi Kuroda 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. He is scheduled to resign as Director of AEON Bank, Ltd. prior to the date the Company’s
Annual General Meeting of Shareholders is held.

- 13 -

Candidate
No.

Name
(Date of birth)

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

Number of theCompany’s shares
owned

Apr. 1985

2

Joined Ajinomoto General Foods, Inc.
(currently Ajinomoto AGF, Inc.)
Nov. 1997
Certified as certified public tax accountant in
the United States
Mar. 1998
Joined KPMG Peat Marwick Tokyo (currently
KPMG Tax Corporation)
Mari Ebisui
July 2001
Representative Director, Ebisui Accounting &(October 8, 1960)
Consulting (current position)
Registered as a United States certified public
New election
0 sharesaccountant (USCPA)
Candidate for outside Auditor
Apr. 2008
Registered as a Certified Fraud Examiners
Candidate for independent(CFE)
officerJune 2016
Director of JAPAN Society of U.S. CPAs
June 2020
Director of Ricoh Leasing Company, Ltd.
(outside, current position)
Apr. 2021
Advisory Board Member of Japan Corporate
Governance Research Institute (current
position)
Reasons for selection as candidate for outside Auditor
Mari Ebisui has carried out consulting for a large number of corporations over many years, drawing on her abundant
experience and deep knowledge as a U.S. CPA and certified fraud examiner. The Company judges that she will also
contribute to further enhance the Company’s audit operations from an independent standpoint using her experience as
the independent outside director of a listed company and her expert knowledge and wide-ranging experience, and has
selected her as a candidate for outside Auditor.
Conflicts of interest
There is no conflict of interest between Mari Ebisui and the Company.
Note: The Company plans to enter into an agreement with Mari Ebisui 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 Auditor.

[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. However, loss, etc. resulting from criminal
acts and intentional violations of the law by the Auditors themselves are not covered. 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.

- 14 -

3. Matters related to Share Subscription Rights (As of February 28, 2022)
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 execution ofduties 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)
No. 14 share subscription
rights(May 10, 2021)

Exercise period

Number of
share
subscription
rightsNumber ofsharessubject to therightsNumber of
persons
holding therightsJune 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

16

1,600 shares

1

2,689 yen per
share

0.5 yen per
share

June 10, 2017 toJune 10, 2032

181,800 shares

1

3,167 yen per
share

0.5 yen per
share

June 10, 2018 toJune 10, 2033

60

6,000 shares

2

3,439 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

June 10, 2021 toJune 10, 2036

92

9,200 shares

22,823 yen per
share

0.5 yen per
share

Issuing priceAmount ofcapitalcontributed
upon exercise

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
2.

stocks are appropriated for this purpose.
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.

- 15 -

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 19, 2021, the Board of Directors adopted a resolution on the basic policy related to systems for ensuringthat Directors execute their duties in compliance with laws and regulations and with the Company’s Articles ofIncorporation 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 and employees
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 business comply withlaws 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 and nominate
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.
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 the minutesof the general meetings of shareholders and of the Board of Directors, the preservation of which is astatutory 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.

(ii)- 16 -

(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 charge ofrisk management as well as the proposed countermeasures, verify the risk scenarios of each Group
company, and periodically report its findings to the Board of Directors. If risk becomes actualized andsubstantial 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 in chargeof 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 andimproving 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 internal audits to all Center Managers.
Staffs who are certified for ISO internal audits will conduct mutual audits to measure the effectivenessof ISO internal 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 theresolution 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 decisionmaking and on responsibilities and authority of the Directors. It will also set out clearly the divisionof labor for executing business operations within the organization and the boundaries of jobs andresponsibilities;(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 by implementing theexecutive officer system. At the same time, the Company will promote efficient management of theGroup through deliberative bodies such as Management Committee, Branch Management Committee,
Domestic Group Management Committee, and Overseas Group Management Committee;(c) The Company has put in place a system that ensures the efficiency of management by including
multiple independent outside Directors on the Board of Directors to examine the proposals of the
management team from multiple angles and carry out effective supervision of the Directors, while
supporting swift and decisive decision making. To supervise the fairness of the execution of duties
and evaluate the appropriateness of such execution, the Board of Directors has established theNomination and Compensation Advisory Committee and the Evaluation Advisory Committee
composed of independent outside Directors as voluntary advisory committees.
(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.

- 17 -

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)• Measures will be implemented for transactions between AEON delight and any of AEON Co., Ltd., AEONGroup companies, or AEON delight subsidiaries to prevent conflicts of interest and to ensure fairtransactions.
• 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 thatsubsidiaries 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 to supervise
management of the subsidiaries;(b) In addition to receiving monthly performance reports from its subsidiaries, the Company will organize
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 will take stockof 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 tofoster compliance awareness. The Group Compliance Department will work with the Compliance
Committee members appointed for each Group company to carry out activities that raise complianceawareness 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 the reportingand 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.

(v)(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 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 (independenceof 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
assisting the Auditors. 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.

- 18 -

• 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 the Company.
• 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 to an Auditor
or for having used the whistleblower system. The Company will ensure that Directors and employees 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 the accuracy
and reliability of financial reporting of the Group through education, supervision, and evaluation.
(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.
- 19 -

(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 with laws,
regulations, and the Articles of Incorporation. The Board of Directors has held 18 meetings in the current
fiscal year to deliberate each proposal and supervise the execution of business operations. Moreover, theCompany is also providing officer compliance training to Directors and Executive 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 the statusof 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.
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 Group regulations
on information security management, AEON delight Group regulations on protection of personal
information, and other necessary regulations, and established a system to appropriately store and preserve
information in accordance with those regulations. In addition, the Company has implemented a system torespond immediately to requests from Directors and Auditors to examine those documents and media.

(ii)(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 response drills in order to prepare for responses incase of disaster. For risks that may arise in terms of corporate management and business, meetings of the
Risk Management Committee, with the Group Compliance Department serving as its secretariat, shall beheld 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 theeffectiveness of risk management.
• The Company has established the Integrated Manual on Quality and Environment for the maintenance andimprovement of the quality of its operations. In addition, to ensure that operations are conducted based on
the Integrated Manual on Quality and Environment, the Company is providing qualification education for
ISO internal audits focused on all Center Managers, the Center Managers are conducting mutual audits,- 20 -

and ISO internal auditors perform ISO internal audits once per year, in order to measure the effectivenessof such 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 four independent outside Directors out of the eight Directors in total, theCompany has put in place a system that ensures the efficiency of management by examining the proposalsof 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, theBoard of Directors has established the Nomination and Compensation Advisory Committee and the
Evaluation Advisory Committee with a majority composed of independent outside Directors and chaired
by independent outside Directors as voluntary advisory committees.
• 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)
Measures have been implemented for transactions between AEON delight and any of AEON Co., Ltd.,AEON Group companies, or AEON delight subsidiaries to prevent conflicts of interest and to ensure fairtransactions 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 theDomestic and Overseas Group Management Committee meetings, which include the Company’s full-time
Directors and the Presidents of subsidiaries as members. Through this, the Company is taking stock of theperformance 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 a system for the corporate departments of the Group headquarters to directly
manage and guide subsidiaries concerning specialized areas in order to further strengthen groupmanagement. Furthermore, a system has been established to make the relevant corporate division the leaddepartment for centralized communication of information for which internal control needs to bestrengthened.
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.

- 21 -

In addition, the Group Corporate Audit Department places under close scrutiny those subsidiaries that areconsidered 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 as an assistant.
(vii) Matters related to the independence of employees assisting the Auditors from the Directors (independenceof auditor staff)•
The Company will obtain prior approval of full-time Auditors or of the Board of Auditors on thetransfer, performance evaluation, disciplinary action, etc. of the employee assisting the Auditors.
(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 breachof 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 to the
management of the Company’s business such as the Management Committee meetings, in addition to theBoard 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 shalltake legal steps. In addition, the Company shall set out provisions on the elimination of anti-social forcesin contracts for transactions. If any existing contracts have no provisions on the elimination of anti-social
forces, the Company shall incorporate such provisions in those contracts upon renewal. If a 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 and the Special Violence Prevention Measures Association(Tokubouren) under the control of the Metropolitan Police Department to actively collect information for
the elimination of anti-social forces.
- 22 -

(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 to financial
reporting, evaluates their operation, and submits the internal control report.

- 23 -

Consolidated Financial Statements(Consolidated Balance Sheet)(Million yen)Previous Fiscal Year
(February 28, 2021)

Current Fiscal Year
(February 28, 2022)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Electronically recorded monetary claims
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
Deferred tax assets
Other
Allowance for doubtful accounts
Total investment and other assets
Total fixed assets
Total assets- 24 -

59,77339,176
3,182
2,006
6,082
-212
110,008

68,28240,708
4,220
2,074
5,861
-134
121,013

1,671
4,264
2,000
1,545
9,481

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

3,938
1,579
5,518

3,360
2,293
5,653

3,960
4,840
2,766
-11
11,55726,556
136,565

3,720
2,951
2,470
-30
9,111
21,845
142,859(Million yen)Previous Fiscal Year
(February 28, 2021)
Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations - operating
Short-term borrowings
Accounts payable
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
Deferred tax 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- 25 -

Current Fiscal Year
(February 28, 2022)

22,170
4,188
299
7,227
1,147
1,325
81

22,070
4,415
247
7,126
2,326
1,363
84

127
130
7,425
44,1236120
6,131
43,892

876
114
1,594
234
192
1,147
4,160
48,283

946
84
1,486
416
80
531
3,544
47,437

3,238
13,22680,344-10,123
86,685

3,238
13,23986,559-10,077
92,958

1,042
-30
-349
662
119
814
88,281
136,565

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

(Consolidated Statement of Income)(Million yen)Previous fiscal year
(March 1, 2020 February 28, 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
Loss on transfer of business
Other
Total extraordinary loss
Income before income taxes
Income taxes
Income taxes-deferred
Total income taxes
Net income
Net income (loss) attributable to non-controllinginterests
Net income attributable to owners of parent- 26 -

Current fiscal year
(March 1, 2021 February 28, 2022)
300,085
262,910
37,17521,945
15,230317,657
278,158
39,49823,764
15,733

20
68
79
265
432

32
73
85
257
448

38
356
395
15,26829362
392
15,789

33
435
469

1,223
199
1,422

1,659
482
1,253
1,690
5,086
10,651
2,383-3,302-919
11,570
-110

441
172
242
856
16,355
3,787
2,003
5,790
10,565-99

11,680

10,665

Consolidated Statement of Changes in Equity(March 1, 2021 - February 28, 2022)(Millions of yen)
Shareholder’s equity

Balance at beginning of period

Capital stock

Capital surplus

Retained earnings

Treasury stock

3,238

13,22680,344(10,123)

Total shareholders’equity86,685

Changes during period
Dividends of surplus(4,450)(4,450)Net income attributable to ownersof parent

10,665

10,665Purchase of treasury stock
Disposal of treasury stock

12

(0)

(0)

46

59

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

–

12

6,214

46

6,273

3,238

13,23986,559(10,077)

92,958Other accumulated comprehensive income
Valuationdifference on
securities
Balance at beginning of period

Foreign currency Remeasurements
translationof defined benefit
adjustments
plans

Total otheraccumulatedcomprehensive
income

1,042

(30)

(349)

662

Net changes in items other thanshareholders’ equity

(121)

991

86

956

Total changes during period

(121)

991

86

956

Balance at end of period

921

961

(263)

1,619

Changes during period
Dividends of surplus
Net income attributable to ownersof parent
Purchase of treasury stock
Disposal of treasury stock- 27 -

Share subscription
rightsBalance at beginning of period

Non-controllingshareholders’equityTotal net assets

814

88,281

119

Changes during period
Dividends of surplus(4,450)Net income attributable to ownersof parent

10,665Purchase of treasury stock(0)

Disposal of treasury stock59

Net changes in items other thanshareholders’ equity

(33)

(57)

866

Total changes during period

(33)

(57)

7,139

Balance at end of period

86

757

95,421- 28 -

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 24• Names of major consolidated subsidiaries
AEON DELIGHT ACADEMY CO., LTD.
AEON DELIGHT SECURITY CO., LTD.
AEON DELIGHT (CHINA) CO., LTD.
Kankyouseibi Co., Ltd.
AEON DELIGHT CONNECT 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.
PT Sinar Jernih Sarana
Aqutia Co., Ltd.
Youkemu Design Consulting (Shenzhen) Co., Ltd.
Nine other companies
During the current fiscal year, AEON Delight (Suzhou) CO., LTD. became a subsidiary through theacquisition of 60% of equity in investment by Aeon Delight (Jiangsu) Comprehensive Facility Management
Service Co., Ltd., which is a subsidiary of the Company, and Aeon Delight (Zhuhai) Comprehensive Facility
Management Service Co., Ltd. was included in the scope of consolidation due to 54% investment by Wuhan
Xiaozhu Comprehensive Facility Management Service Co., Ltd.
Furthermore, during the current fiscal year, DO SERVICE Co., Ltd. is excluded from the scope of
consolidation due to a merger with A to Z Service Co., Ltd., U-COM Co., Ltd. is excluded from the scopeof consolidation due to a merger with the Company, and General Services Inc. is excluded from the scopeof consolidation due to liquidation. In addition, A to Z Service Co., Ltd. changed its company name to AEON
DELIGHT CONNECT CO., LTD.
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 of importanceas 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.

- 29 -

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.
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 the closing
date (valuation differences are reported as a component of net
assets, and the cost of securities sold is calculated by the movingaverage 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 weighted-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 the balance
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 (5 years)
is applied.
(iii) 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 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:- 30 -

To provide for expenses of bonuses to be paid to employees, the estimated amount of payment
corresponding to the current fiscal year is recorded.
(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 theend 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 each fiscal
year, commencing from the following fiscal year of the occurrence. Actuarial gains and losses for certain
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.

Changes in accounting policies(Change in method for inventory valuation)
Merchandise in the Group was stated at cost using the moving-average method, but it is stated at cost using theweighted average method from the current fiscal year. The purpose of this change in valuation method is tocalculate periodic profit and loss more swiftly and appropriately with the update to the core system.
The change will not be applied retroactively because the impact is immaterial.

6. 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 are- 31 -

prepared. Accounting estimates on impacts of COVID-19 on Group businesses are made under the assumptionthat COVID-19 generally settled 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 would last into the following fiscal year.

- 32 -

Notes to Consolidated Balance Sheet
1. Assets pledged as collateral
Investment securities¥34 million

2. Accumulated depreciation of tangible fixed assets¥14,566 million

3. Breakdown of inventories
Merchandise:Work in process
Raw materials and supplies¥1,734 million¥80 million¥258 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

Location–

Business assets

Adachi City, TokyoClass

Impairment loss (million yen)

Furniture and fixtures

353

Buildings

42

Land

45

Total

441

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.
3. 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.
4. Gain on reversal of allowance for sales discounts
Gain on reversal of allowance for sales discounts of 122 million yen is recorded in net sales.

- 33 -

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

4,167,473

Increase (shares)

Decrease (shares)
136(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)

19,2004,148,409

136 shares
19,200 shares

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

Resolution

Classes of shares

April 9, 2021
Board of Directors’
meeting

Ordinary shares

2,350

October 6, 2021
Board of Directors’
meeting

Ordinary shares

2,100

Record date

Effective date47.00

February 28, 2021

(May 6, 2021)

42.00

August 31, 2021

November 8, 2021

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

Source ofdividends

Total amount ofdividends(million yen)

April 7, 2022
Board of Directors’ Ordinary shares
meeting

Retainedearnings

2,100

Resolution

Dividend pershare (yen)Record date

42.00 February 28, 2022

Effective date

May 6, 2022

4. Share subscription rights
Class and number of shares subject to share subscription rights
Ordinary shares
29,400 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 are procured
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.

- 34 -

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

68,282

68,282–(2) Notes and accounts receivable

40,70840,581(127)(3) Electronically recorded monetary claims

4,220

4,213

(7)

3,122

3,122

–

(4) Investment securities
Other securities

116,334

116,200(134)(1) Notes and accounts payable - trade

Total assets

22,07022,070–(2) Electronically recorded obligations - operating

4,415

4,415

–

247

247

–

(4) Accounts payable

7,245

7,245

–

(5) Income taxes payable

2,326

2,326

–

36,30536,305–(3) Short-term borrowings

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¥1,890.76¥213.26¥213.12

Notes on Significant Subsequent Events
No items to report.

- 35 -