AEON Mall : FY2022 1st Quarter Financial Results

(Percentages represent year-on-yearchanges)

This is an abridged translation of the original Japanese document and is provided for informational purposes only.

If there are any discrepancies between this and the original, the original Japanese document prevails.

Consolidated Financial Results for the First Quarter of the Fiscal Year

Ending February 28, 2023 (Japanese GAAP)

		July 5, 2022
Company name:	AEON MALL Co., Ltd.	Stock Exchange Listing: TSE
Stock code:	8905	URL https://www.aeonmall.com/en/ir/index.html
Representative:	Yasutsugu Iwamura, President and CEO	Starting date of dividend payment: －
Scheduled date of filing of quarterly report: July 11, 2022

Preparation of supplementary materials for quarterly financial results: Yes

Holding of quarterly financial results briefing: Yes (for institutional investors and analysts)

(Amounts in millions of yen rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending February 2023 (March 1, 2022 - May 31, 2022)

(1) Consolidated Operating Results (cumulative)

	Operating revenue	Operating income	Ordinary income	Net income attributable
	to owners of parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%
Three months ended May 31, 2022	96,167	26.2	13,092	21.0	10,845	22.0	6,226	(29.9)
Three months ended May 31, 2021	76,207	44.4	10,822	337.9	8,888	744.9	8,879	－

(Note) Comprehensive income: Three months ended May 31, 2022: ¥25,425 million (7.2%) Three months ended May 31, 2021: ¥23,719 million (-%)

	Net income per share	Net income per share (diluted)
	Yen	Yen
Three months ended May 31, 2022	27.36	27.36
Three months ended May 31, 2021	39.02	39.01

(2) Consolidated Financial Position
		Total assets		Net assets	Equity ratio
		Million yen			Million yen			%
May 31, 2022		1,557,471			445,464			27.9
February 28, 2022		1,463,256			426,931			28.5
(Reference) Equity:	May 31, 2022: ¥434,511 million
	February 28, 2022: ¥416,455 million
2. Dividends
							Annual Dividend
			First quarter-end	First half-end	Third quarter-end		Fiscal year-end	Total
					Yen	Yen	Yen			Yen	Yen
Year ended February 28, 2022		－	25.00	－		25.00	50.00
Year ending February 28, 2023		－
Year ending February 28, 2023 (projection)			25.00	－		25.00	50.00

(Note) Revisions to dividend forecast announced recently: None

3. Consolidated Earnings Projections for the Year Ending February 28, 2023 (March 1, 2022 - February 28, 2023)

							(Percentages represent year-on-year changes)
							Net income	Net income per
	Operating revenue	Operating income	Ordinary income	attributable to
	share
							owners of parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
First half, FY2022	196,500	－	24,700	25.5	20,000	23.5	8,000	(37.7)	35.15
Full-year	404,000	－	55,500	45.2	45,500	39.8	23,000	19.3	101.07

(Notes) 1. Revisions to earnings forecast announced recently: None

2. Beginning with the fiscal year ending February 28, 2023, the Company will adopt Accounting Standard for Revenue Recognition (ASBJ Statement No. 29), etc. The consolidated earnings forecast above is based on this standard. Since operating revenue has been affected by the adoption of this standard, we have not shown the percentage change compared with the previous period. Operating income, ordinary income, and net income attributable to owners of parent have not been affected by the application of the standard. Estimating results for the fiscal year ending February 28, 2023 before the adoption of this standard, we expect operating revenue to increase 12.8% for the first half and 13.3% for the full year.

• Notes
• 1. Material changes in consolidated subsidiaries during the period (changes in specific subsidiaries resulting in a change in the scope of consolidation): None
  2. Application of special accounting methods in the preparation of quarterly consolidated financial statements: None
  3. Changes in accounting policies, changes of accounting-based estimates, revisions & restatements
  4. 1. Changes in accounting policies due to changes in accounting standards, etc.: Yes
     2. Changes in accounting policies other than the above: None
     3. Changes in accounting estimates: None
     4. Revisions and restatements: None

(Note) For more information, see 2. Quarterly Consolidated Financial Statements and Notes (4) Notes to the Quarterly Consolidated Financial Statements (Changes in accounting policies) on P.18

(4) Number of shares issued and outstanding (common stock)
[1]	Number of shares outstanding at period-	Three months ended	227,548,939	Year ended	227,548,939
	end (including treasury stock)	May 31, 2022	February 28, 2022
[2]	Treasury stock at period-end	Three months ended	4,017	Year ended	3,997
May 31, 2022	February 28, 2022
[3]	Average number of shares during the	Three months ended	227,544,939	Three months ended	227,542,950
	period (quarterly cumulative)	May 31, 2022	May 31, 2021

* The summary of quarterly financial results is exempt from quarterly review procedures.

* Explanations and other special notes concerning the appropriate use of earnings projections (Cautionary statement regarding forward-looking statements, etc.)

The forward-looking statements, such as earnings projections, included in these materials are based on information currently available to the Company and certain assumptions it deems reasonable. They do not constitute a promise of future performance by the Company. Moreover, actual performance may vary considerably due to a variety of factors. See 1. Qualitative Information on Quarterly Financial Performance (3) Explanation of Consolidated Earnings Projections and Other Projections on P.12 of the accompanying materials for assumptions used in earnings projections and matters to note when using earnings projections.

(Procedures for obtaining supplementary information on financial results)

The Company is scheduled to hold a briefing for institutional investors and analysts on July 6, 2022. The materials handed out at this briefing will be posted on the Company's website on July 5, 2022, and an audio recording of the briefing will be made available on the Company's website soon after the briefing has ended.

Accompanying Materials ― Contents

1. Qualitative Information on Quarterly Financial Performance	2
(1)	Explanation of Operating Results	2
(2)	Explanation of Financial Position	12
(3)	Explanation of Consolidated Earnings Projections and Other Projections	12
2. Quarterly Consolidated Financial Statements and Notes	13
(1)	Quarterly Consolidated Balance Sheets	13
(2)	Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income	15
	Quarterly Consolidated Statements of Income
	For the three months ended May 31, 2021 and May 31, 2022	15
	Quarterly Consolidated Statements of Comprehensive Income
	For the three months ended May 31, 2021 and May 31, 2022	16
(3)	Quarterly Consolidated Statement of Cash Flows	17
(4)	Notes to the Quarterly Consolidated Financial Statements	18
	Notes on the going concern assumption	18
	Notes on significant changes in shareholders' equity	18
	Changes in major consolidated subsidiaries during the period under review	18
	Changes in accounting policies	18
	Supplementary information	19
	Segment and other information	19
	Significant subsequent events	20

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1. Qualitative Information on Quarterly Financial Performance

1. Explanation of Operating Results

1) Explanation of consolidated results of operations

AEON MALL Co., Ltd. is a Life Design Developer (Note), creating the future of community living as we pursue our basic principle that the customer comes first. Under this management philosophy, we defined our corporate activities as Heartful Sustainable. In this way, we contribute to the development and revitalization of communities and society as a corporate citizen, striving to achieve sustainable societies through various initiatives.

We develop malls localized to the characteristics of each community we serve in Japan and around the world, contributing to better individual lifestyles and community growth. Through efforts in co-creation with customers, communities, partner companies, shareholders, and investors, we will continue to provide solutions to regional and social issues, establishing our position through social infrastructure functions to be central facilities for local communities.

(Note) Our definition of Life Design extends beyond the framework of the shopping mall. Life Design addresses functions associated with different customer life stages, including not only shopping, but also interaction with other people, cultural development, and other features contributing to future lifestyles.

We recorded higher revenue and profit for the three months ended May 31, 2022 compared to the same period in the previous consolidated fiscal year. Operating revenue amounted to ¥96,167 million (+26.2% year on year), while operating income amounted to ¥13,092 million (+21.0%), ordinary income amounted to ¥10,845 million (+22.0%), and quarterly net income attributable to owners of parent amounted to ¥6,226 million (-29.9% year on year). Beginning with the consolidated first quarter, we adopted Accounting Standard for Revenue Recognition (ASBJ Statement No. 29), which has had the effect of increasing operating revenue by ¥10,711 million. We estimate operating revenue results for the three months ended May 31, 2022 would have been ¥85,455 million (+12.1%) before the adoption of this standard. Fixed costs for the fiscal year amounted to ¥747 million stemming from shortened business hours and temporary closures caused by COVID-19 (¥1,561 million in the previous consolidated fiscal year).

Operating revenue, operating income, ordinary income, and net income attributable to shareholders of the parent company were +19.2%, -13.5%,-15.7%, and -22.1% compared to the results recorded during the first quarter of the consolidated fiscal year ended February 28, 2020, which was not impacted by COVID-19 ("FY2019" below).

◆Consolidated Earnings			(Million yen)
	FY2021 Q1	FY2022 Q1	Change
	[YoY]
Operating revenue	76,207	96,167	+19,959
			[+26.2%]
Operating income	10,822	13,092	+2,269
			[+21.0%]
Ordinary income	8,888	10,845	+1,957
			[+22.0%]
Net income attributable to owners of parent	8,879	6,226	(2,652)
			[-29.9%]
(Reference) Results vs. three months ended May 31, 2019		(Million yen)
	FY2019 Q1	FY2022 Q1	Change
	(Vs. FY2019)
Operating revenue	80,690	96,167	+15,476
			[+19.2%]
Operating income	15,137	13,092	(2,045)
			[-13.5%]
Ordinary income	12,862	10,845	(2,017)
			[-15.7%]
Net income attributable to owners of parent	7,991	6,226	(1,764)
			[-22.1%]

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2) Explanation of business performance by segment
◆Earnings by Segment								(Million yen)
				Operating Revenue			Segment Income (Loss)
			FY2021 Q1	FY2022 Q1		Change	FY2021 Q1	FY2022 Q1		Change
				[YoY]		[YoY]
	China		10,327	12,820		+2,492	2,299	2,426		+126
						[+24.1%]				[+5.5%]
	Vietnam		2,200	2,680		+479	537	765		+227
						[+21.8%]				[+42.3%]
	Cambodia		786	1,104		+318	172	250		+78
						[+40.4%]				[+45.8%]
	Indonesia		867	1,242		+374	(216)	(263)		(46)
						[+43.2%]				[－]
	Other		－	－		－	(12)	(3)		+8
										[－]
Overseas		14,182	17,847		+3,664	2,780	3,175		+395
						[+25.8%]				[+14.2%]
Japan		62,024	78,319		+16,295	8,035	9,909		+1,874
						[+26.3%]				[+23.3%]
Adjustment		－	－		－	6	6		－
						[－]				[+0.0%]
Total		76,207	96,167		+19,959	10,822	13,092		+2,269
						[+26.2%]				[+21.0%]
(Reference) Results vs. three months ended May 31, 2019					(Million yen)
				Operating Revenue			Segment Income (Loss)
			FY2019 Q1	FY2022 Q1		Change	FY2019 Q1	FY2022 Q1		Change
				(Vs. FY2019)		(Vs. FY2019)
	China		8,988	12,820		+3,831	1,584	2,426		+842
						[+42.6%]				[+53.2%]
	Vietnam		1,206	2,680		+1,473	321	765		+443
						[+122.2%]				[+137.7%]
	Cambodia		968	1,104		+136	283	250		(33)
						[+14.1%]				[-11.6%]
	Indonesia		951	1,242		+290	103	(263)		(366)
						[+30.5%]				[－]
	Other		－	－		－	－	(3)		(3)
										[－]
Overseas		12,115	17,847		+5,732	2,293	3,175		+882
						[+47.3%]				[+38.5%]
Japan		68,575	78,319		+9,744	12,837	9,909		(2,927)
						[+14.2%]				[-22.8%]
Adjustment		－	－		－	6	6		－
						[－]				[+0.0%]
Total		80,690	96,167		+15,476	15,137	13,092		(2,045)
						[+19.2%]				[-13.5%]

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