Financial Results for the Six Months Ended
August 31, 2018

Kazumasa Hamada, President and CEO
October 10, 2018

Contents

１ Financial Report for the First Half of FY2/19

２ Initiatives for FY2/19 2H

３Aeon Delight Vision 2025

©2018 AEON Delight All Rights Reserved 2

Consolidated Income Statement
Sales and profits increased, and all-time high profits were reported.
Showed steady progress against the plan.
FY2/181H (Ratio to sales)

Net sales

1,518 （100.0%）

FY2/191H (Ratio to sales)(100 million yen)
Difference

Percentagechange1,538 （100.0%）

20101.4%

Gross profit

200（13.2%）

203（13.2%）

2101.4%

SG&A

112（7.4%）

112（7.3%）

0100.2%

Operating income

88（5.8%）90（5.9%）2102.9%Ordinary income

88（5.8%）91（5.9%）2102.9%Net income attributableto owners of parent

55（3.7%）56（3.7%）0101.0%©2018 AEON Delight All Rights Reserved 3

Sales by Segment
YoY increase in 5 segments. Large-scale construction works were concentrated in 2H.
Vending machine sales were affected by torrential rains and typhoons.
PercentagechangeFY2/18 1H

FY2/19 1H

Facilities management

261

281

107.5%

Security services

217

220

101.2%

Cleaning services

274

286

104.3%

Construction work

241

216

89.9%

Materials/supplies
sourcing services

251

260

103.5%

Vending machineservices

170

163

96.4%

Support services

101

109

108.5%

Total

1,518

1,538

101.4%(100 million yen)©2018 AEON Delight All Rights Reserved 4

Profit by Segment
Profits increased in 4 segments. Construction work showed a decrease in sales and an increase in profits due to a reorganizationof the portfolio and improved profitability.
Security services were impacted by increased outsourcing expenses. Vending machine services are in the process of changing
their earnings model. AEON compass Co., Ltd. in the support services were struggled.

FY2/18 1H

FY2/19 1H

PercentagechangeFacilities management2228

124.2%

Security services

141494.7%

Cleaning services

30

33

106.8%

Construction work

1920

104.4%

Materials/supplies
sourcing services

13

14

107.0%

Vending machineservices

125

41.6%

Support services

13

12

95.8%

Total

127

128

100.5%（100 million yen）

©2018 AEON Delight All Rights Reserved 5Consolidated Balance Sheet（100 million yen）
Liabilities andnet assets

FY2/191HAssets

FY2/18

FY2/191H

Current assets

1,202

1,230

28

Current
liabilities

434416▲18Tangible fixedassets

1001000

Fixedliabilities

2727▲0Intangible
fixed assets

8076

▲4462

443

▲19Investments,etc.

85

79▲5Shareholder’sequity

959

1000

40

Fixed assets

266257▲8Total net assets

1005

1044

38

Total assets

1,468

1,487

19

Total liabilities
and net assets

1,468

1,487

19

Difference

Totalliabilities

FY2/18Difference©2018 AEON Delight All Rights Reserved 6

Consolidated Cash Flow Statement(100 million yen)
FY2/181H
Cash flows fromoperating activities
Cash flows frominvesting activities

49

FY2/191H20（100 million yen）

Difference

Operating60▲28営業ＣＦ
CF

Investing
投資ＣＦ
CF

Financing
財務ＣＦ
CF504030▲15

Cash flows fromfinancing activities▲16

Cash and cash
equivalents at the endof year327

▲10▲174▲120
100(10)(20)

37850(30)

FY2/18 1H

FY2/19 1H©2018 AEON Delight All Rights Reserved 7

FY2/19 1H Topics

1Safety● Support for disasters such as the North-Osaka Earthquake and the torrential rains in WesternJapan in 2018 through provision of services● Active proposal to support the development of corporate disaster prevention and mitigation systems

2Labor shortage● Construction of a labor-saving model for large-scale commercial facilities● Final verification for practical use of cleaning robots● Development of “Delight Viewer”, a distributed management system● Establishment of a joint venture with a local AI tech company in Shanghai, China (May)

3Environment● Participation in a demonstration project of electric power trading using blockchain technology©2018 AEON Delight All Rights Reserved 8

Contents

１ Financial Report for the First Half of FY2/19

２ Initiatives for FY2/19 2H

３ Aeon Delight Vision 2025

©2018 AEON Delight All Rights Reserved 9

Progress toward full-year forecasts for FY2/19
In 2H, maintain a strong trend in 1H and achieve full-year forecasts

1H progress rate

1H Results

2H PlanFull-year forecasts

1,538

1,512

3,050

50.4%

Operating income

90

95

185

48.6%

Ordinary income

9194

185

49.2%

Net income attributableto owners of parent

565411050.9%(100 million yen)

Net sales©2018 AEON Delight All Rights Reserved10

Scenario for achieving full-year profit budget
Aim to achieve the full-year profit budget with maintaining strong 1H trends in Facilities,
Cleaning, and Materials services, and recovering Construction and Support services in 2H,
while improving profitability of Security and Vending machine services, which struggled in 1H.

Services to maintain a strong trend in 1H● Facilities, Cleaning, and Materials continue to outperform initial forecasts as in 1H.
● Profits increase in Construction works owing to the large-scale works concentrated in 2H.
Services to recover in 2H● In the Support services, AEON Compass Co., Ltd., which struggled 1H, plans to recover byexpanding its business support and event businesses.
Services to continue a weak trend● Vending machine services is in the process of changing its earnings model, and it takes time torecover the investment associated with the aggressive replacement of electronic money anddigital signage models.
©2018 AEON Delight All Rights Reserved 11

Aeon Delight Vision 2025
Aiming to be an environmental value-creating company in Asia
that resolves social issues based on “Safety," “Labor shortage,"and “Environment" as the three pillars of its growth strategies

Targets for 2025

Operating income

Net sales¥525 billion¥48 billion

AEONdelight Vision 2025

Net Sales
Global TOP10Net Sales
No.1 in Asia

Operatingincome margin
GlobalTop-level©2018 AEON Delight All Rights Reserved 13

Strategic direction
In Japan, expand market share by building an Aeon Delight Economic Zone.
Overseas, concentrate resources in China to become the top 10 in the logistics industry.

● Build an AEON Delight Economic Zone by utilizing the AD PlatformJapan● Utilize technology to build unmanned and labor-saving models that reduce customers' costs andimprove efficiency● Expand FM market share through customer-oriented sales and collaboration with other companies● Build an Energy Management services as a new pillar of business● Make two core operating companies wholly owned subsidiaries

China● Establish an AD brand in eastern China, which is a strong field, and build a business foundationthat can expand nationwide● Aim to be the top 10 company in China by building brands, human resources, and management
systems in China©2018 AEON Delight All Rights Reserved 14AD Platform
Customer

Local system etc.

Data Output

Data Output

External information(weather, disaster etc.)

Subsidiary of the Company

Propose optimal solutions
on individual issues

Data Input

Partner companies and alliance partners

AD Platform

AD Platform

Collection and accumulation of data ⇒ Analysis and processing ⇒ Optimalsolutions
Data Input

Efficiency andquality improvement
Data Output

Data Input

Distributed management system "Delight Viewer"【 Service supply system 】

Subsidiary ofthe Company

Partner companies
Alliance partner

Build an overwhelming competitive
advantage in the FM industry

Build an AEON DELIGHTEconomic Zone

©2018 AEON Delight All Rights Reserved 15

China Business: Toward the Next Growth Stage“One Aeon Delight Strategy” through making two core companies intowholly owned subsidiaries

Made two core companies (AD Jiangsu(100 million yen)
Vision 2025: Sales in China
600

and Wuhan Xiaozhu) into wholly owned
subsidiaries

500
400

By unifying operations, strengthening
cooperation, and speeding up decision-making,300

Accelerate business expansion in China
and become a Top10 in the logistics
industry.

200
1000

FY2/18

FY2/26ResultPlan©2018 AEON Delight All Rights Reserved 16

Creation of new businesses

Creating new businesses to reduce environmental impact
Energy management services●AEON Co., Ltd. formulated the "AEON

Decarbon Vision 2050" and joined the RE100(*1).
● Aeon Group's annual power consumption :7.4 billion kWh (about 1% of Japan's annual
power consumption*2)

Environmental materials services
Marine pollution caused byplastic waste worsened● Participation in "AEON Decarbon Vision 2050"

as a company responsible for themanagement of energy used by the AEONGroup● Establishment of an energy managementbusiness that encompasses from the supply ofenergy needed by local communities to theenergy saving of facilities

Evolving the materials service into an
Environmental materials service thatcan propose a review of raw materials*1 RE(Renewable Energy: A global initiative aimed at 100% renewable energy in business operations*2 Annual power consumption of Japan: 850.5 billion kWh (Source: Ministry of Economy, Trade and Industry, Agency for Natural Resourcesand Energy, Electricity Survey Statistics 2018)©2018 AEON Delight All Rights Reserved 17

Acquired ISO41001 certification, FM's international standard, for the first time in Japan

Acquired ISO 41001 certification, the international standard forfacility management, for the first time in Japan

Become the Japan’s only one
company to provide
facility management that meets
global standards
Strengthening Brandingin Japan and Overseas
ISO 41001 Certificate Presentation Ceremony(Left: Kazuo Tatsukami, President of Japan Audit andCertification Organization for Environment and Quality
Right: Our President Kazumasa Hamada©2018 AEON Delight All Rights Reserved 18

If you have any questions or comments, please contact us below.
■ These materials contain statements about forecasts and estimates relating to the future plans, strategies, andperformance of AEON DELIGHT.
These statements are based not only on past performance, but also on assumptions based on information currently
available to the company. For this reason, please note that the actual performance may differ from our estimates.
■ The information contained in these materials has been prepared by the following methods if not specifically statedotherwise.
◇ All statements are based on consolidated results◇ All figures of less than 100 million yen have been rounded down
◇ Percentages have been rounded off to one decimal placeAEON DELIGHT CO., LTD.
(Stock code: 9787)

IR Contact Emiko Ishii
Delight Communication Dept.
TEL 03-6840-5712
Or visit our website at:
ｈｔｔｐ：//ｗｗｗ．ａｅｏｎｄｅｌｉｇｈｔ．ｃｏ．ｊｐ

This presentation has been prepared based on the information available as of the date of the presentation (October 10, 2018). The
business forecasts may be revised due to various factors that may arise in the future.

Supplementaryinformation©2018 AEON Delight All Rights Reserved

Business Expansion in Asia
Overseas Sales/Operating Income Margin (100 million yen/%)China140

Malaysia

VietnamOperatingincome margin
営業利益率10.0%

120
10080

5.0%60402000.0%
FY2/14

FY2/15

FY2/16

FY2/17

FY2/18

FY2/19 1HFY

FY2/14

FY2/15

FY2/16

FY2/17

FY2/18

FY2/19 1H

Sales (100 millionyen)

4289

10612012969

Operating incomemargin (%)

▲1.0

3.4

3.9

5.2

7.3

5.8

*Figures are simple totals for group companies.
*In China, we implemented business reorganization, including withdrawal from unprofitable businesses, in FY2/17-FY2/18.

©2018 AEON Delight All Rights Reserved

Business Forecasts for FY2/19(100 million yen)

FY2/18 results(Ratio to sales)Net sales

2,958 （100.0%）

FY2/19 Forecasts(Ratio to sales)

Percentage change

3,050 （100.0%）

103.1%

Operating income

168（5.7%）

185（6.1%）

110.0%

Ordinary income

172（5.8%）185（6.1%）

107.0%Net income attributableto owners of parent

103（3.5%）110（3.6%）

106.6%©2018 AEON Delight All Rights ReservedShareholder Return
Aim for 14 consecutive years of increased dividends since FY2/06（Yen）
Dividend
配当金70（％）

Commemo-rative
記念配当
dividend

Dividend forecast

Dividend payout

配当予想（円）(Yen)

配当性向（％）
ratio (%)

40.06035.015030.04025.05302010045.089

FY2/05
2004 FY2/062005

1517.5222734404648505254616320.015.010.05.00.0

FY2/072006

FY2/14 2014
FY2/15 2015
FY2/172017
FY2/182018
FY2/19FY2/12 2012
FY2/13 2013
FY2/08 2009
FY2/07 2008
FY2/09 2010
2007
FY2/162016
FY2/11 2011©2018 AEON Delight All Rights Reserved