Aeon Delight : Summary of Financial Results for the Second Quarter Ended August 31, 2021 (Consolidated)

Summary of Financial Results for the Second Quarter Ended August 31, 2021

[Japan GAAP] (Consolidated)

		October 6, 2021
Company	AEON DELIGHT CO., LTD.	Listed on the TSE1
Stock Code	9787	URL: https://www.aeondelight.co.jp
Representative	Kazumasa Hamada, President and CEO, Group CEO
Contact	Keiji Sagata, Managing Director, Group Strategy and ESG	T E L: [phone]

	Expected date of filing of quarterly report: October 14, 2021	Expected starting date of dividend payment: November 8, 2021
	Preparation of quarterly supplementary financial document: Yes
	Quarterly results briefing: Yes (for institutional investors and analysts)
1. Consolidated business results for the six months ended August 2021		（Rounded down to million yen）
	(March 1, 2021 through August 31, 2021)
(1) Consolidated results of operations					(% change from the previous corresponding period)
		Net sales			Operating income	Ordinary income	Net income attributable to
				owners of parent
	Six months ended Aug. 2021	Million yen	%		Million yen	%	Million yen	%	Million yen	%
	163,907	9.5		8,427	12.4	8,489	13.2	5,557	40.9
	Six months ended Aug. 2020	149,734	-4.9		7,500	-12.7	7,496	-13.4	3,943	-23.9
	(Note) Comprehensive income

Six months ended August 2021: 5,957 million yen (56.2%)

Six months ended August 2020: 3,815 million yen (-25.6%)

	Net income	Diluted net income per
	per share	share
Six months ended Aug. 2021	Yen	Yen
111.14	111.04
Six months ended Aug. 2020	78.90	78.81

(2) Consolidated financial position

			Total assets	Net assets	Shareholders' equity
			ratio
	As of Aug. 31, 2021		Million yen	Million yen	%
		141,920	91,919	64.1
	As of Feb. 28, 2021		136,565	88,281	64.0
	(Reference) Shareholders' equity:
	As of August 2021: 91,000 million yen
	As of February 2021: 87,347 million yen

2. Dividends

			Annual dividend
	End of 1Q	End of 2Q	End of 3Q	Year-end	Total
	Yen	Yen	Yen	Yen	Yen
Year ended Feb. 2021	-	35.00	-	47.00	82.00
Year ending Feb. 2022	-
Ordinary dividend		37.00
Commemorative dividend		5.00
Total		42.00
Year ending Feb. 2022 (forecast)
Ordinary dividend			-	37.00	74.00
Commemorative dividend			-	5.00	10.00
Total			-	42.00	84.00

(Note) Revisions to dividend forecast for the current quarter: None

The commemorative dividend is paid in commemoration of the 15th anniversary of AEON DELIGHT.

3．Forecast of consolidated business results for the fiscal year ending February 2022

(March 1, 2021 through February 28, 2022)		(% change from the previous corresponding period)
	Net sales		Operating income	Ordinary income	Net income attributable to	Net income per
		owners of parent	share
Year ending Feb. 2022	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
325,000	8.3	16,500	8.3	16,500	8.1	10,500	-10.1	209.99
(Note) Revisions to business forecast for the current quarter: None
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*Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying changes in the scope of consolidation): Yes
   Excluded: 1 (General Services, Inc.)
   (Note) For details, please refer to "2. Quarterly Consolidated Financial Statements and Significant Notes (4) Notes on quarterly consolidated financial statements (Changes in significant subsidiaries during the period) on page 8 of this material.
2. Application of accounting procedures specific to preparation of the consolidated quarterly financial statements: None

1. Changes in accounting policies, accounting estimates and restatement
   ① Changes in accounting policies associated with revision of accounting standards: ②Changes in accounting policies other than ①
   ③Changes in accounting estimates
   ④Restatement
2. Shares outstanding (common stock)

① Number of shares outstanding at the end of period (treasury stock included)

As of August 2021	54,169,633 shares
As of February 2021	54,169,633 shares
②Treasury stock at the end of period
As of August 2021	4,160,597 shares
As of February 2021	4,167,473 shares

③Average number of stock during period (quarterly cumulative period)

Six months ended August 2021	50,007,085 shares
Six months ended August 2020	49,977,087 shares

• None
• Yes
• None
• None

*Quarterly financial summary is not subject to the quarterly review procedures by certified public accountants or auditing firms.

*Explanation regarding appropriate use of business forecasts and other special instructions (Precautions regarding forward-looking statements)

Forecasts regarding future performance in this material are based on information currently available to the company and certain assumptions that the company deems to be reasonable at the time this report was prepared. The company does not make promises about the achievements. Actual results may differ significantly from the forecasts due to various factors.

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2. Quarterly Consolidated Financial Statements and Significant Notes (Quarterly Consolidated Balance Sheets)

			(Million yen)
		Previous Fiscal Year	Current Second Quarter
		(February 28, 2021)	(August 31, 2021)
Assets
Current assets		59,048
Cash and deposits	59,773
Notes and accounts receivable	39,176	45,735
Electronically recorded monetary claims	3,182	4,924
Inventories	2,006	1,943
Other	6,082	6,398
Allowance for doubtful accounts	-212	-157
Total current assets	110,008	117,891
Fixed assets
Tangible fixed assets
Buildings and structures, net	1,671	1,283
Tools, furniture and fixtures, net	4,264	4,034
Land	2,000	1,432
Other, net	1,545	1,689
Total tangible fixed assets	9,481	8,440
Intangible fixed assets
Goodwill	3,938	3,611
Other	1,579	1,858
Total intangible fixed assets	5,518	5,470
Investments and other assets
Investment securities	3,960	3,724
Other	7,607	6,411
Allowance for doubtful accounts	-11	-17
Total investment and other assets	11,557	10,118
Total fixed assets	26,556	24,028
Total assets		136,565	141,920

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			(Million yen)
		Previous Fiscal Year	Current Second Quarter
		(February 28, 2021)	(August 31, 2021)
Liabilities
Current liabilities
Notes and accounts payable-trade	22,170	23,810
Electronically recorded obligations - operating	4,188	4,918
Short-term borrowings	299	373
Income taxes payable	1,147	1,959
Provision for bonuses	1,325	1,897
Accrued directors' and corporate auditors'	81	35
remuneration
Asset retirement obligations	127	28
Allowance for sales discounts	130	119
Other	14,652	13,187
Total current liabilities	44,123	46,331
Fixed liabilities
Provision for directors' retirement benefits	114	70
Retirement benefit liability	1,594	1,537
Asset retirement obligations	234	229
Allowance for sales discounts	192	134
Other	2,024	1,697
Total fixed liabilities	4,160	3,669
Total liabilities	48,283	50,000
Net assets
Shareholder's equity
Capital stock	3,238	3,238
Capital surplus	13,226	13,231
Retained earnings	80,344	83,552
Treasury stock	-10,123	-10,106
Total shareholders' equity	86,685	89,914
Other accumulated comprehensive income
Valuation difference on securities	1,042	881
Foreign currency translation adjustments	-30	515
Remeasurements of defined benefit plans	-349	-311
Total other accumulated comprehensive income	662	1,086
Share subscription rights	119	124
Non-controlling shareholders' equity	814	794
Total net assets	88,281	91,919
Total liabilities and net assets		136,565	141,920

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1. Quarterly Consolidated Statement of Income and Quarterly Statement of Comprehensive Income (Quarterly Consolidated Statement of Income)
   (For the six months period)

			(Million yen)
		Previous Second Quarter	Current Second Quarter
		(March 1, 2020-	(March 1, 2021-
		August 31, 2020)	August 31, 2021)
Net sales	149,734	163,907
Cost of sales	131,494	143,444
Gross profit	18,239	20,462
Selling, general and administrative expenses	10,738	12,035
Operating income	7,500	8,427
Non-operating income
Interest income	11	8
Dividends income	43	43
Equity in income of affiliates	48	44
Other	59	45
Total non-operating income	162	142
Non-operating expenses
Interest expenses	19	17
Other	146	63
Total non-operating expenses	166	80
Ordinary income	7,496	8,489
Extraordinary income
Gain on sale of fixed assets	-	170
Gain on sales of investment security	32	-
Subsidies for employment adjustment	216	126
Total extraordinary income	248	296
Extraordinary loss
Loss on valuation of investment security	443	-
Loss on sales of investment security	1	0
Impairment loss	13	87
Loss due to response to new infections	352	98
Loss on transfer of business	1,262	-
Other	191	150
Total extraordinary loss	2,266	336
Profit before income taxes	5,479	8,448
Income taxes	1,563	1,790
Income taxes-deferred	49	1,127
Total income taxes	1,613	2,918
Net income	3,865	5,530
Net income attributable to non-controlling interests	-77	-27
Net income attributable to owners of parent		3,943	5,557

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