Financial Results for the Fiscal Year Ended February 28, 2021
Medium-term 3-Year Management Plan(FY2/22-FY2/24)

AEON DELIGHT CO., LTD.
Kazumasa Hamada, President and CEO, Group CEO
April 9, 2021

Contents

1

Financial Report for FY2/21

2

Improvement of Group Management Structure and Review of Vision 2025

３ Three-Year Mid-Term Management Plan (FY2/22 - FY2/24)
４

Forecast of consolidated business results and shareholder return for FY2/22©2021 AEON Delight All Rights Reserved 2

Consolidated Statement of Income
Sales, operating income and ordinary income decreased due to factors such as partial and temporary closuresof customer facilities and requests for voluntary restraint on events and outings following the spread of
COVID-19 in the first half, while the net income hit a new record(100 million yen)
FY2/20(Ratio to sales)

Net sales

3,085 （100.0%）

Difference

Percentagechange3,000 （100.0%）

▲84

97.2%

FY2/21(Ratio to sales)

Gross profit

385（12.5%）

371（12.4%）

▲13

96.4%

SG&A expenses

225（7.3%）

219（7.3%）▲6

97.2%

Operating income

160（5.2%）

152（5.1%）▲795.2%

Ordinary income

159（5.2%）

152（5.1%）▲6

95.7%

Net income attributableto owners of parent

93（3.0%）

116（3.9%）

23

125.0%©2021 AEON Delight All Rights Reserved3Current Trends – Quarterly Trends
In the second half, through reexamining and strengthening of
measures, quarterly sales recovered to the level in the previous year,
and operating income increased.

【YoY Changes】

売上高
Sales

110.0%
100.0%
90.0%

93.0%

営業利益
Operating profit
105.8%

103.0%

99.3%

99.7%

97.2%

90.9%
84.4%

80.0%
70.0%
第1四半期
1Q

第2四半期
2Q

第3四半期
3Q

第4四半期
4Q

*Impact of COVID-19 on full-year operating income: -1.5 billion yen (within the initial expectation)©2021 AEON Delight All Rights Reserved 4

[Reference] Income Statement excluding former KAJITAKU* (Same Scale Comparison)(100 million yen)

[Reference]
FY2/20(Ratio to sales)

Net sales

3,041 （100.0%）

FY2/21(Ratio to sales)

Difference

Percentagechange2,969 （100.0%）

▲71

97.7%

Gross profit

390（12.8%）

375（12.6%）

▲14

96.2%

SG&A expenses

217（7.1%）

212（7.2%）▲4

97.8%

Operating income

172（5.7%）

162（5.5%）▲9

94.2%*Income statement excluding the results of Current Aqutia Co., Ltd (successor company to the Housekeeping Support Business)
and KJS Corporation (formerly KAJITAKU, changed its name as of March 1, 2020).

©2021 AEON Delight All Rights Reserved

5Sales by Segment
Cleaning and material-related sales increased due to increased orders for epidemic prevention
cleaning and materials
Percentage
FY2/20changeFY2/21(100 million yen)
Facilities management

582

582

99.9%

Security services

446

443

99.4%

Cleaning services

623

624

100.2%

Construction work

418

406

97.2%

Materials/supplies
sourcing services

511

530

103.8%

Vending machineservices

315

254

80.7%

Support services

187

158

84.4%

(Reference)
Excluding KAJITAKU

142

127

89.0%

Total

3,085

3,000

97.2%

(Reference)
Excluding KAJITAKU

3,041

2,969

97.7%
©2021 AEON Delight All Rights Reserved

6Profit by Segment
Profits increased in three businesses. The cleaning services increased sales and reduced costs by consolidating
suppliers and optimizing purchase unit prices, and improved low-profit properties ; the security services
promoted systemization and optimized unit prices; and the construction business reduced costs.
PercentagechangeFY2/21
FY2/20(100 million yen)
Facilities management

52.9

51.7

97.8%

Security services

30.3

33.0

108.9%

Cleaning services

69.6

73.2

105.1%

Construction work

38.1

38.8

101.7%

Materials/supplies
sourcing services

24.8

24.6

99.1%

Vending machineservices

13.9

6.5

46.8%

Support services

4.1

▲0.7

-

(Reference)
Excluding KAJITAKU

16.2

9.4

57.9%

Total

234.1

227.3

97.1%

(Reference)
Excluding KAJITAKU

246.3

237.5

96.4%
©2021 AEON Delight All Rights Reserved

7

Consolidated Balance Sheet(100 million yen)
Liabilities andnet assets

Difference

AssetsFY2/20FY2/21

Difference

Current assets

1,123

1,100

▲23

Current
liabilities

488

441

▲47

Tangible fixed
assets

96

94

▲1

Fixed
liabilities

67

41

▲26

Intangible
fixed assets

71

55

▲16

556

482

▲73

Investments,
etc.

76

115

38

Shareholder’sequity

789

866

77

Fixed assets

245

265

20

Total net assets

812

882

69

Total assets

1,369

1,365

▲3

Total liabilities
and net assets

1,369

1,365

▲3

Total
liabilities

FY2/20FY2/21©2021 AEON Delight All Rights Reserved

8Consolidated Statement of Cash Flows(100 million yen)
FY2/20FY2/21

DifferenceCash flows fromoperating activities

73

104

30

Cash flows frominvesting activities

138

▲73

▲211

Cash flows fromfinancing activities▲33

Cash and cash
equivalents at theend of year

611

▲53

▲19

(100 million yen)
150

Operating CF

Investing CF

Financing CF

100
50
0
(50)

589

▲22

(100)

FY2/20FY2/21©2021 AEON Delight All Rights Reserved 9

Major Initiatives in FY2/21 ① Response to COVID-19 Infections
The standard for safety and security has been changing.
To exceed the people’s demand, we are working to establish a new standard forfacilities management.

4 themes for FM New standards① Establish scientifically based cleaning
methods for sanitary environment (NewStandard Cleaning)More than 1,200 experts trained in infection control cleaning② Efficient ventilation while maintaining comfort

Image from our COVID-19 response video③ Development and introduction of contactless
services④ Raise awareness and knowledge of epidemic
prevention among facility users“Protecting the livelihood of the local community through ‘Safety and Security’"©2021 AEON Delight All Rights Reserved

10Major Initiatives in FY2/21 ③ Speed Up Business Model Reforms
Build a business model combining human technologies with pure technologies
in order to provide services that can constantly upgrade customer satisfaction.
Tested and confirmed in Hokkaido● A demonstration trial for the automatedmanagement of store facilities by using
numerous systems and sensors at a model
store has confirmed the effectiveness of thisbusiness model.
●Started operating a Customer Support Center for
remote supporting for facility management andconsolidating customer feedback

The new Customer Support Center••

Use customer information and feedback to create proposals withvalue for customers
Remote control/centralized surveillance of “movements” withinstores and other locations

Decided to start automated services at themodel store in November
Plan to expand the use of automatedservices to all areas of Hokkaido
Toward "area management" centered on
CSC(Details of area management to follow.)©2021 AEON Delight All Rights Reserved

11

Major Initiatives in FY2/21 ② Technology Contests
Activities to upgrade specialized skills are continuing even during the COVID-19 crisis.
We held the Second AEON Delight Technology Contest.
[Photos of the contest]

From left:
The facilities management contest was held at the AEON Delight Academy – Nagahama (November 11)
The cleaning services contest was held at locations in Japan and other countries linked by TV conferencing (November 19)
The security services contest was held at locations in Japan and other countries linked by TV conferencing (November 20)

These events allowed AEON Delight companies as well as partner companies (security) in Japanand other countries to share their technologies and explain activities that have been successful.

Technology skills x People skills = Specialists©2021 AEON Delight All Rights Reserved

12

Major Initiatives in FY2/21 ④ Group Reorganization
Promoted group reorganization to achieve Aeon Delight Vision 2025 with theseobjectives: ① strengthen governance, ② improve capital productivity, and③ clarify the functions and roles of each company● A to Z Service Co., Ltd. and DO SERVICE Co.,Ltd. merged on March 1, 2021, to form AEON DELIGHT
CONNECT CO.,LTD. It is positioned as a core subsidiary in the small- and medium-sized facility market,
accelerating the formation of a regional economic zone.

● KJS Corporation (formerly KAJITAKU, engaged in the store support business) was absorbed on
February 28, 2021.
We will take over the businesses with some remaining contract periods and fulfill our responsibilities
to customers.
● On March 1, 2021, we merged with U-COM Co., Ltd., which is engaged in the design and interior
finishing of commercial facilities. This merger will strengthen the construction business by eliminating
redundant activities and consolidating resources● Resolved to dissolve and liquidate General Services Inc., which has many accomplishments as aconsulting firm. *Completed liquidation after April 2021

©2021 AEON Delight All Rights Reserved

13

Major Initiatives in FY2/21 ⑤ Expansion of New Contracts
Started providing services at a wide variety of facilities<Example>[Name of facilities listed](Top row, from left)
 Marelli Fukushima Co., Ltd.
 Coca-Cola Bottlers Japan Inc.
Hiroshima Plant
 Dunlop Sports Club Kasukabe (Bottom row, from left)
 Kobe Proton Center Kyoto Stadium©2021 AEON Delight All Rights Reserved

14

Major Initiatives in FY2/21 ⑥ Business Expansion in Asia
Overseas business was affected by COVID-19 in each region, but it was offset by the expansion ofmarket share, and the performance was on a par with the previous year.
Net sales were 101.0% YoY and Operating income was 98.3% YoY*

Overseas Business: Net Sales / Operating Income (100 million yen)
(Net sales)

200

China

Malaysia

VietnamIndonesia

Operating income

199.4

197.4

20

16.4

160

(Operating income)

16.1

16

120

12

80

8

40

4

0

0

Net sales1
FY2/20Operating2
income* Figures are simple totals of results of operating companies.

Net sales3
FY2/21

4
Operatingincome©2021 AEON Delight All Rights Reserved

15

Contents

1

Financial Report for FY2/21

2

Improvement of Group Management Structure and Review of Vision 2025

３ Three-Year Mid-Term Management Plan (FY2/22 - FY2/24)
４

Forecast of consolidated business results and shareholder return for FY2/22©2021 AEON Delight All Rights Reserved

16Improvement of Group Management Structure and Review of Vision 2025
Concluded measures to prevent recurrence of the inappropriate accounting at
the former KAJITAKU.
Formulated a new medium-term management plan after scrutinizing Vision 2025.

Since the announcement of the recurrence prevention measures in July 2019, our top
priorities have been to thoroughly implement the recurrence prevention measures andstrengthen Group governance.

The Recurrence Prevention Committee was dissolved in March 2021. The newly
established Organizational Culture Committee and other bodies will take over ongoing
efforts to prevent the occurrence of improprieties (see below for details of theOrganizational Culture Committee).

The new medium-term management plan was formulated based on a close
examination of the AEON DELIGHT Vision 2025 to lay the groundwork for the
AEON DELIGHT Group's growth strategy once again.
©2021 AEON Delight All Rights Reserved

17

Revision to Target Figures for Vision 2025
【AEON DELIGHT Vision 2025】
In Asia, we aim to become an environmental value-creating company thatsolves social issues based on the three pillars of our growth strategy:"safety and security," "labor shortage" and "environment.
Revised our numerical target, but no revision to our direction to aim for■ Target figures (after revision)

Net sales

Operating income

471 billion yen

37 billion yen*Including M&A
We have revised the target figures in light of the delay in some measures due to the inappropriate
accounting treatment of our consolidated subsidiary, former KAJITAKU CO., Ltd., which came to light in
FY2/20, and the impact of COVID-19 in FY2/21.
(Reference) Initial targets announced in October 2018:
Net sales of 525 billion yen, operating income of 48 billion yen©2021 AEON Delight All Rights Reserved18Promoting ESG Management - Resolving Material Issues through Our BusinessWork on resolving the material issues narrowed down based on Vision 2025 targets
Vision 2025

Material Issues

Safety and Security

Providing a safe and secure living environment
Solving labor shortages and create an environment in which diverse human resources canLabor shortage

play an active role by improving productivity
Reduction of environmental impact through energy conservation and promotion of the use

Environmentof renewable energy

Use of Technology

Utilizing AI, IoT, and robots and responding to risks in the information society

Governance

Strengthening of group governance

Aeon Delight's Goals for SDGs
Social issues to be solved through businessSocial issues to be resolved throughcorporate activities

Safe and secure facility environment

Human rights and D&I

Solving labor shortages
through the use of technology

Human resource development

Reducing environmental impact

Global environment©2021 AEON Delight All Rights Reserved

19Roadmap to Achieve Vision 2025
Aim to achieve the target figures
through organic growth by businessstructure reform and M&A
4,710 M&A

(100 million yen)
5000

4000

Net sales
Medium-term 3-Year Management Plan
(refer to the following slides)

3,610

M&A
Inside the AEON Group: 25 billion yen~
Outside the AEON Group: 35 billion yen ~3000• Strengthen sales activities• Energy-related• Strengthen purchasing /PB development• Overseas growth2000
FY2020

FY2023

FY2025

Ratio of sales outside
the AEON Group

36%

40%

50%

Operating income
margin

5.1%

6.0%

8.0%

Ratio of overseas
sales

6.7%

over 8%over 15%

ROE

14.1%

12%

15%
©2021 AEON Delight All Rights Reserved

20

Contents

1

Financial Report for FY2/21

2

Improvement of Group Management Structure and Review of Vision 2025

３ Three-Year Mid-Term Management Plan (FY2/22 - FY2/24)
４

Forecast of consolidated business results and shareholder return for FY2/22©2021 AEON Delight All Rights Reserved21Mid-Term Management Plan ① Three Basic Policies
To achieve Vision 2025, we are working work on "customer-oriented
management," "promotion of DX" and "group management”.

Customer-oriented
management
 Develop a customeroriented corporate
structure

Promotion of DX Build a new facility
management model Organizational
restructuring andorganizational reform Change to an area
managementmodel Strengthen
relationships withcustomers

 Establishment of
CSCGroup Management

 Strengthen governancefor offense and defense Clarification of roles
and responsibilitiesof each company
 Promotion of sharedservices Strengthen
compliance©2021 AEON Delight All Rights Reserved

22Mid-Term Management Plan ② Target Figures and KPI■ FY2/24 Target Figures

Net sales

Operating income

361 billion yen

22 billion yen(100 million yen)

Net sales ■Results ■Forecasts

4000

3000

14 billon yen

3,000

2000

Operating income/Net income

320■Operating income (result)■Operating income (forecast)■Net income (result)■Net income (forecast)

240

220

(100 million yen)

3,610

Net income attributable toowners of parent

160

152

140
116

1000

80

0

0
FY2020

FY2021

FY2022

FY2023

FY2020

FY2021

FY2022

FY2023©2021 AEON Delight All Rights Reserved

23Mid-term Management Plan ③ Customer-oriented Management-1

To expand the market share, we will establish the Market Division andstrengthen the account management system

Environmental
changes

Slowdown in the
opening of new largescale stores by the
Aeon Group in Japan

IssuesMajor Initiatives
Develop the customer-oriented
management structure

Insufficient knowledge
and expertise inindustries other than  Establish CSC
distribution
 Establish marketing department
 Strengthen account management©2021 AEON Delight All Rights Reserved24Mid-term Management Plan ③ Customer-oriented Management-2
Improve the structure to achieve customer-oriented service development,
quality management, and DX
CustomerMarketing DX Control
Marketing Division
Service Development &Quality (AD Brand)

Branch offices

Sales
Corporate Sales Division

AD Solution Center

Customer Success Division

Service Development
Division

AEON Group Sales
Headquarters

Quality Control Division

Sales Information

AEON DEIGHT
PlatformAreacanterOn-sitecanterArea
canterFacility Information

AEON Delight Economic Zone
Partnercompanies

AD Group©2021 AEON Delight All Rights Reserved25Mid-term Management Plan ④ Promotion of DX-1

By saving labor in facility management through DX, we will develop a new
facility model "area management" centered on CSC nationwide.

Until now: Individual store management

From now on: Area management
CSC
Large-scale
GMS/mallLarge-scale
GMS/mallLinked to CSC

Area
CenterSmall-andmedium-sized
GMS

Hospitals

PatrolOn-siteQuality control
Remotemanagement

On-siteOn-siteSmall-andmedium-sized
GMS

Area center
PatrolOn-sitePatrolOffices

OfficesPatrolPatrolSM

PatrolSM

SM

PatrolSM

On-sitePatrolSM

PatrolPatrolSmall-andmedium-sized
GMS

Small-andmedium-sized
GMS
On-siteOfficesPatrolSmall-andmedium-sized
GMS

SM

PatrolPatrolHospitals

Small-andmedium-sized
GMS
PatrolOn-site©2021 AEON Delight All Rights Reserved

26Mid-term Management Plan ④ Promotion of DX-2
Moved the Tokyo head office in September. Productivity was improved by consolidating head office
functions and implementing work style reforms.
Convert to a strategic office that will lead to expansion of business opportunities as an informationtransmission base.

● Build a smart office by renovation● Implement energy-saving and BCP measures as a service● Review business processes and consolidate head office functions● Promote work style reforms through digitalization of office operations● Head office organization that is always close to customers through constantconnection with branch CSCs

Reduce costs by consolidating functions and reforming work
styles; expand sales opportunities as a base for disseminating
FM information©2021 AEON Delight All Rights Reserved27Mid-term Management Plan ⑤ Group Management-1

To further enhance the Group's management capabilities by strengthening both"offensive" and "defensive" governance
Environmental
ChangesIssuesMajor Initiatives
Strengthening of "offensive" governance

Stagnation and slowdown in
the growth of Group
companies

Insufficient management
policies and strategies for
the Group Clarification of roles and responsibilitiesof each group company
 Group management in China
 Consideration and implementation of
M&As
Strengthen “defensive" governanceManagement of group Promotion of shared services

Occurrence of fraudulent

companies is becomingcases in group companies

more difficult as the scale of Establishment of the Organizational
Culture Committee

the group expands

 Strengthen group compliance Strengthen internal control system©2021 AEON Delight All Rights Reserved28Mid-term Management Plan ⑤ Group Management-2 Clarification of roles and responsibilities of each group company

Established a new core company specializing in the management of small- andmedium-sized facilities by combining the know-how and resources cultivated by
AEON DELIGHT CO., Ltd., A to Z Service co., Ltd., and DO SERVICE Co.,Ltd.

Provide total facility management services for small- and mid-sized facilities in chains nationwide

Accelerate the formation of a regional economic zone as the AEON DELIGHT group©2021 AEON Delight All Rights Reserved29Mid-term Management Plan ⑤ Group Management-2 Clarification of roles and responsibilities of each group company

Select the appropriate partners in each field(Locality/Specialty)
for enhancing the service network

ExamplesLocality

companies that excel in locality
in terms of facilities management,
security services and cleaning services

companies that excel in locality

Specialty in terms of the fields which special skills
are necessary

Kankyouseibi Co., Ltd.(North Kanto Area/Cleaning)
Hakuseisha CO.,LTD.(Capital region/cleaning), etc.

ABC CO.,LTD.(Hotels/cleaning)
XYZ CO.,LTD.(Hospitals/facilities management), etc.

Subsidiaries which excel in building maintenance have the role to facilitate
the formation of a regional economic zone taking advantage of the locality©2021 AEON Delight All Rights Reserved 30

Mid-term Management Plan ⑤ Group Management-3
Establish a controlling company to promote group management in China
Aiming for further growth in Asia's largest growth area

■ Group Management Structure for China BusinessControlling Company

Business
Companies

AEON DELIGHT
JianguWith establishment of a controllingcompany

AEON DELIGHT
China

Wuhan Xiaozhu

 Strengthen group governance Maximize synergies among operatingcompanies Establish the AEON DELIGHT brand in
China through comprehensive
management of service quality

Accelerate growth in central China and south China as our focus areas©2021 AEON Delight All Rights Reserved31Mid-term Management Plan ⑤ Group Management-4
To achieve Vision 2025, we will once again consider M&A as an important
strategy and actively consider and implement it.

■ Objectives of M&As

① Regional economic zone
② Establish overseas bases③ Expand business domain*In selecting investment projects, we will set a certain level of liquidity on hand while taking
into consideration capital costs, secure a variety of financing methods, and set financial
discipline before making decisions.
©2021 AEON Delight All Rights Reserved

32Mid-term Management Plan ⑤ Group Management-5
Change both structure and culture to become an organizationthat prevents fraud

Promotion of sharedservices

Promote shared services (consolidation)of finance and accounting departments
to ensure the reliability of financial
statements of Group companies

Organizational Culture
Committee

Work to create an soundorganizational culture basedon the Delight Way.

The Delight Way is a set of values and codes of conduct that
all employees of the AEON DELIGHT Group must share inorder to put the management philosophy into practice.

©2021 AEON Delight All Rights Reserved

33Mid-term Management Plan ⑥ KPI (Key Performance Indicator)
Monitoring KPIs to achieve target figures

Basic Policy
Customer-oriented
management(Expansion of market share)

KPI
Ratio of sales inside/outside the AEON Group 60%:40% (FY2/21: 64%:36%)
Net sales of 65.0billion yen consolidated with group companies
in Japan (52.8billion yen in FY2/21)

Group Management(Growth as a group)

Net sales ratio of Asia businesses over 8%(6.7% in FY2/21)
Shift to shared services for domestic group finance and accounting departments
Operating income ratio of 6.0%(5.1% in FY2/21),
sustaining the standard of ROE 12% through increasing operating income

Promotion of DX(Reform of business model /Improvement of profitability)

Number of facilities introducing area management: 360
Reduction in number of on-site staff through area management: 180
Allocation of 20% of staffs in the headquarters to front office by consolidatinghead office functions©2021 AEON Delight All Rights Reserved

34

Contents

1

Financial Report for FY2/21

2

Improvement of Group Management Structure and Review of Vision 2025

３ Three-Year Mid-Term Management Plan (FY2/22 - FY2/24)
４

Forecast of consolidated business results and shareholder return for FY2/22©2021 AEON Delight All Rights Reserved

35Planned figures for FY2/22
Enhancing the foundation for profit increaseby investing to DX and human resource fields aggressively(100 million yen)
Net sales

FY2/21 Result(Ratio to sales)

FY2/22 Forecast(Ratio to sales)

3,000 （100.0%） 3,250 （100.0%）

Percentage change

108.3%

Operating income

152（5.1%）

165（5.2%）

108.3%

Ordinary income

152（5.1%）

165（5.2%）

108.1%Net income attributable toowners of parents

116（3.9%）

105（3.2%）

89.9%●Reduction of negative impact of COVID-19 and former KAJITAKU• COVID-19: -0.5 billion yen (FY2/21: -1.5 billion yen)
• Former KAJITAKU: -0.3 billion yen (FY2/21: -1.0 billion yen©2021 AEON Delight All Rights Reserved 36

Shareholder Return

Dividends have increased for 16 consecutive years since FY2/06.
17 Consecutive Years of Dividend Increase
For FY2/21, we increased the dividendby 17 yen from the previous fiscal year, to82 yenFor FY2/22, based on the assumption that the performance
forecasts will be achieved,
Plan to pay dividends of84 yen,including 74 yen with consolidated dividend payout ratio of 35% (*1) and
10 yen of commemorative dividend for AEON DELIGHT's 15th anniversary
We take into consideration consolidated dividend payout ratio 40%
Within the period of Medium-term 3-Year Management Plan
* Net income attributable to owners of parent: 10.5 billion yen©2021 AEON Delight All Rights Reserved37

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 place

AEON DELIGHT CO., LTD.
(Securities Code: 9787)

IR Contact : Emiko Ishii
Delight Communication Department
TEL 03-6840-5712
Please contact us on our website.
https://www.aeondelight.co.jp

Based on information available up to the date of publication (April 9, 2021)
These forecasts have been prepared and are subject to change due to various factors going forward.