Notice Regarding Recognition of Non-operating Income and Extraordinary Losses

Overview

AEON Fantasy Co.,LTD. recorded foreign exchange gains as non-operating income in the interim results for the fiscal year ending February 2027: 707,743 thousand yen on a consolidated basis, 399,012 thousand yen for domestic operations, and 308,731 thousand yen for overseas operations. The overseas breakdown was ASEAN -14,630 thousand yen and China 323,362 thousand yen. In addition, impairment losses and provisions for doubtful accounts were recorded as extraordinary losses, totaling 428,980 thousand yen consolidated, 58,070 thousand yen domestic, and 370,910 thousand yen overseas. The provision for doubtful accounts for affiliates amounted to 1,326,090 thousand yen, and there is no impact on consolidated financial statements.

Impact on Investors and Outlook

These recognitions will affect interim-period results, but the impact on consolidated results is considered limited. The occurrence of foreign exchange gains and the recording of impairment losses and provisions for doubtful accounts may affect the company's earnings structure. Future focus will be on improvements in revenue structure, store restructuring, and asset reviews.