Aeon Delight : Summary of Financial Results for the Second Quarter Ended August 31, 2023 (Consolidated)

Note: This document has been translated from 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.

October 10, 2023

Consolidated Financial Results

for the Six Months Ended August 31, 2023

(Under Japanese GAAP)

Company name:	AEON DELIGHT Co., Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	9787
URL:	https://www.aeondelight.co.jp
Representative:	Kazumasa Hamada, President and CEO, Group CEO
Inquiries:	Emiko Ishii, Executive Officer, General Manager of President's Office and ESG Promotion
	Office
Telephone:	[phone]

Scheduled date to file quarterly securities report:	October 13, 2023
Scheduled date to commence dividend payments:	November 6, 2023
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:	Yes (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the six months ended August 31, 2023 (from March 1, 2023 to August 31, 2023)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
		Net sales		Operating profit		Ordinary profit		Profit attributable to
					owners of parent
	Six months ended	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen		%
	August 31, 2023	161,511		9.4	7,263		10.0	7,401		12.1	5,325		22.8
	August 31, 2022	147,660		-	6,602		-	6,602		-	4,336		-

Note: Comprehensive income	For the six months ended August 31, 2023:	¥6,204 million	[7.0%]
			For the six months ended August 31, 2022:	¥5,795 million	[-%]
		Basic earnings	Diluted earnings
			per share	per share
	Six months ended		Yen	Yen
	August 31, 2023		108.88	108.80
	August 31, 2022		86.68	86.62

Note: The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others have applied since the beginning of the first quarter of the fiscal year ended February 2023. The figures for the second quarter of the fiscal year ended February 2023 are after the application of these accounting standards, and the year-on-year percentage changes are not presented.

(2) Consolidated financial position

	Total assets	Net assets	Equity-to-asset ratio
As of	Millions of yen	Millions of yen	%
August 31, 2023	152,753	100,902	65.3
February 28, 2023	150,628	99,391	65.3

Reference: Equity
As of August 31, 2023:	¥99,814 million
As of February 28, 2023:	¥98,396 million

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2. Cash dividends

		Annual dividends per share
	First quarter-end	Second quarter-end	Third quarter-end		Fiscal year-end	Total
	Yen	Yen	Yen		Yen	Yen
Fiscal year ended	-	42.00	-		43.00	85.00
February 28, 2023
Fiscal year ending	-	43.00
February 29, 2024
Fiscal year ending
February 29, 2024			-		43.00	86.00
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Forecast of consolidated financial results for the year ending February 29, 2024 (from March 1, 2023 to February 29, 2024)

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per
				share
										owners of parent
	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
Full year	310,000		2.0	16,000		1.2	16,000		0.0	10,400		2.4	214.32

Note: 1. Revisions to the forecast of financial results most recently announced: None

2. At the meeting of the Board of Directors held on October 4, 2022, the Company resolved to acquire treasury stock. "Earnings per share" in the forecast of consolidated financial results for the year ending February 29, 2024, is based on the impact of the acquisition of treasury stock.

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* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None

2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None

1. Changes in accounting policies, changes in accounting estimates, and restatement
2. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
3. Number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares)

As of August 31, 2023

As of February 28, 2023

50,669,633 shares

50,669,633 shares

(ii) Number of treasury shares at the end of the period

As of August 31, 2023

As of February 28, 2023

2,139,847 shares

1,270,047 shares

(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Six months ended August 31, 2023

Six months ended August 31, 2022

48,916,493 shares

50,021,202 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters

The forward-looking statements 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. Therefore, the Company does not make promises about the achievements. Actual results August differ significantly from the forecasts due to various factors.

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Quarterly Consolidated Financial Statements and Significant Notes

1. (Quarterly Consolidated Balance Sheets)

			(Million yen)
		Previous Fiscal Year	Current Second Quarter
		(February 28, 2023)	(August 31, 2023)
Assets
Current assets
Cash and deposits	57,600	58,348
Notes and accounts receivable -trade, and contract assets	47,065	49,631
Electronically recorded monetary claims	8,825	8,170
Securities	7,008	7,901
Inventories	2,363	2,904
Other	6,766	4,523
Allowance for doubtful accounts	-95	-135
Total current assets	129,534	131,344
Noncurrent assets
Property, plant and equipment
Buildings and structures, net	1,494	1,391
Tools, furniture and fixtures, net	2,967	3,410
Land	434	394
Other, net	1,604	1,604
Total property, plant and equipment	6,499	6,800
Intangible assets
Goodwill	3,046	2,970
Other	3,324	3,494
Total intangible assets	6,371	6,464
Investments and other assets
Investment securities	4,021	4,295
Other	4,220	3,867
Allowance for doubtful accounts	-19	-19
Total investment and other assets	8,222	8,142
Total noncurrent assets	21,093	21,408
Total assets		150,628	152,753

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			(Million yen)
		Previous Fiscal Year	Current Second Quarter
		(February 28, 2023)	(August 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable-trade	25,901	27,177
Electronically recorded obligations -operating	5,116	4,735
Short-term borrowings	182	533
Accounts payable	7,265	6,265
Income taxes payable	2,571	1,838
Provision for bonuses	1,389	1,878
Accrued directors' and corporate auditors' remuneration	52	33
Allowance for sales discounts	86	37
Other	5,840	6,284
Total current liabilities	48,406	48,784
Noncurrent liabilities
Long-term debt	-	27
Provision for directors' retirement benefits	74	52
Retirement benefit liability	1,187	1,066
Asset retirement obligations	419	419
Allowance for sales discounts	11	3
Other	1,137	1,496
Total noncurrent liabilities	2,830	3,067
Total liabilities	51,237	51,851
Net assets
Shareholder's equity
Capital stock	3,238	3,238
Capital surplus	4,739	4,740
Retained earnings	91,421	94,623
Treasury stock	-3,415	-6,004
Total shareholders' equity	95,983	96,597
Other accumulated comprehensive income
Valuation difference on securities	1,130	1,287
Foreign currency translation adjustments	1,435	2,047
Remeasurements of defined benefit plans	-153	-118
Total other accumulated comprehensive income	2,413	3,217
Share subscription rights	86	84
Non-controlling shareholders' equity	908	1,002
Total net assets	99,391	100,902
Total liabilities and net assets		150,628	152,753

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