Financial Results for the Fiscal Year
Ended February 28, 2015

AEON DELIGHT CO. LTD.
Ippei Nakayama, President and CEO
April 10, 2015
©2015 Aeon Delight All Rights Reserved

Contents§1 Financial Report for the Fiscal Year Ended
February 28, 2015
§２ Initiatives for the Fiscal Year Ending February
29, 2016§３ Reference Materials

2

Contents§1 Financial Report for the Fiscal Year Ended
February 28, 2015
§２ Initiatives for the Fiscal Year Ending February
29, 2016§３ Reference Materials

3Business Results (Sales and Operating Income)Sales increased for 5 consecutive years andearnings increased for 11 consecutive years

Sales(100 million yen)

3,000

■SalesOperating 営業利益
income(100 million yen）

（単位：億
円）
300

■Operating income
2,488

2,500

2,572

2,667
250

2,197
2,000

200

1,709
1,375

1,500

1,402

137

139

158
150

120

1,111
1,000

1,456

151

99

99
100

83
55

500

50

0

0
2007.2

4

2008.2

2009.2

2010.2

2011.2

2012.2

2013.2

2014.2

2015.2©2015 Aeon Delight All Rights Reserved

FY2/15 Financial Summery
Sales and earnings increased for five consecutive years, and recorded highest profit
due mainly to steady increase of orders for large facilities
and growth in subsidiaries’ performance(100 million yen)

FY2/15Pct. to net
sales
（％）

YoY
（％）

2,667

100.0

103.7

2,572

100.0

158

5.9

104.9

151

5.9

159

6.0

105.6

150

5.9

87

3.3

106.9

81

3.2

AmountSales
OperatingincomeOrdinary
incomeNet income

EPS：166.2 yen
5

FY2/14
Pct. to net
sales
（％）

Amount（Actual）

ROE： 12.0％©2015 Aeon Delight All Rights Reserved

FY2/15

Initiatives Highlights① Cleaning services: Profit improved driven by productivity improvement measures
including review of operation methods etc.

② Expansion of new large-scale contracts contributes to increase in sales ofoutside the AEON Group③ Steady business expansion in Asia （Sales YoY 204.3％)④ Consolidated subsidiary AEON Compass and KAJITAKU showed steady
performance

6©2015 Aeon Delight All Rights Reserved

Sales by Segment
Increased YoY in the entire six business segments except for Construction work,
even the management environment is tough mainly due to increase in cost and tightness of employment market※ Sales of Construction work decreased due to completion of installation of LED lighting at AEON Group companies(100 million yen)

FY2/15

FY2/14

Pct. to net sales
（％）

Sales

YoY
（％）

Pct. to net sales
（％）

Sales

Facilities management

458

17.2

105.5

434

16.9

Cleaning services

442

16.6

104.6

423

16.5

Security services

366

13.7

107.0

342

13.3

Construction work

419

15.7

92.0

456

17.7

Materials/
Supplies sourcing services

476

17.9

106.9

445

17.3

Vending machine services

348

13.1

104.5

333

13.0

Support services

155

5.8

114.5

135

5.3

7

©2015 Aeon Delight All Rights Reserved

Business Overview by Segment
Facilities
management

Undertook new stores of large commercial facilities and expanded sales of BEMS(*) equipment. For thecentralized oversight of refrigeration and freezing equipment, training programs were strengthened for technicians
who handle CFC refrigerants (more than 400 technicians in all areas of Japan).

Cleaning services

In addition to review of operation method, we started the “Campaign for Ease of Work”, which involves the use ofsmall teams for on-site work. The goal is more improvements in quality and productivity.

Security services

Starting to use female attenders who provide information and other services in addition to conventional
security services at facilities ; customer response has been positive in Japan and other countries

Construction work

Completed installation of LED lighting at AEON Group companies. Big increase in construction
contracts for revitalizing at aging facilities. Steady volume of orders for maintenance services, too.

Materials/Supplies
sourcing services

Volume of business with both new and existing customers continues to grow. Continued to work on
improving profitability by reviewing the cost of logistics and using e-sales meetings.

Vending machineservices

Vending machines installed in the previous fiscal year contributed to sales. Started to construct new
business model by providing digital signage advertisement frameworks

Support services

Expanded sales of event business of AEON Compass and Housework services “KAJICloud” of
KAJITAKU(YoY 163.6%)※ BEMS (Building Energy Management System):

A system for collection and analysis of energy usage volume data for equipment and facilities installed in buildings,

8

and for efficient regulation enabling energy conservation and operational optimization.

©2015 Aeon Delight All Rights ReservedNew Service Users (Domestic)
Provide services to various types of facilities

9©2015 Aeon Delight All Rights ReservedNew Service Users (Overseas)
ChinaMalaysia
Vietnam

Total of 151 facilities including Chinese offices and department stores, etc.
Total of 119 facilities including Japanese department stores, governmentbuildings and large commercial facilities, etc.
Total of 169 buildings including Japanese factories, offices and largecommercial facilities*including spot contract

10©2015 Aeon Delight All Rights Reserved

Expansion of Sales in Asia
No. of overseas contracted properties

Overseas sales（Properties）（million yen）
China
中国

*Legend is the same as the graph on the rightLarge increase in
the number of service
provided in Vietnam
mainly for spot contract

400

Malaysia
マレーシア

Vietnam
ベトナム

204.3% YoY
8000

169

119

200

23

4000

45

3
16

136

151

ＦＹ2/14

ＦＹ2/1548

0
ＦＹ2/1211

ＦＹ2/130

ＦＹ2/12

ＦＹ2/13

ＦＹ2/14

ＦＹ2/15©2015 Aeon Delight All Rights ReservedConsolidated Balance Sheet(100 million yen)February February
Difference
28, 2014 28, 2015

12February February
Difference
28, 2014 28, 2015

Current
assets

903

1,044

141

Current
liabilities

393

466

73

Fixed assets

217

215

△2

Fixed
liabilities

15

19

4

Tangible fixed
assets42

43

1
Total liabilities

408

485

77

4 Total net assets

713

774

61

Total liabilities andnet assets

1,121

1,260

139

Intangible
fixed assets

116

109

Investments,
etc.

58

62

Total assets

1,121

1,260

△7

139

©2015 Aeon Delight All Rights ReservedConsolidated Cash Flow Statement
250

Major factors for increase/decrease(100 million yen)200

【 Operating cash flows 】

150
100
50

Operating CF
営業ＣＦ

0Investing CF
投資ＣＦ

(50)

172

Income before income taxes

156

Decrease (increase) in accounts receivable△24

Increase (decrease) in accounts payable

40

Financing CF
財務ＣＦ

(100)

【 Investing cash flows 】

(150)
(200)

FY2/14

FY2/15△113

Payments for affiliate
consumption entrusted funds△89

Decrease (increase) in fixed assets△18(100 million yen)

FY2/14

FY2/15

Change【 Financing cash flows 】
Cash flows from operating
activities
Cash flows from investing
activities
Cash flows from financing
activities
Cash and cash equivalents at theend of year

13

213

172

△41

△166

△113

52

△24

△25

△1

120

154

34

Dividend Payment

△25
△25

©2015 Aeon Delight All Rights Reserved

Contents§1 Financial Report for the Fiscal Year Ended
February 28, 2015
§２ Initiatives for the Fiscal Year Ending February
29, 2016§３ Reference Materials

14Positioning of FY2/16“Favorable conditions and great opportunities”-- Following wind for AEON delight in a management environment
FY2/16 is year to decide the match: Capture market share in Japan and Asia

≪Perceptions of the domestic management environment≫≪Perceptions of the management environment in China≫(1) Inflationary trends will change the management
environment. Though pressure will come from cost increases
and hiring difficulties, there are opportunities in our competitiveenvironment. Oligopolization in the market will enhance.

(1) Real estate market shifts point to waning condominium
demand, particularly in the major cities. The priority trend is awayfrom expansion and toward quality. In commercial facilities, energy
conservation is inevitable.

(2) At large facilities, tendencies toward bundled entrusting offacility management services are notable, increasing switchingof outsourcers (many inquiries from hospitals, universities,
large corporations)(2) Business areas will be expanded centering on companies thatjoin our Group by means of joint venture strategies. We aresearching for new energy conservation partners. The pace ofChina's commercialization is extremely high.

(3) Greater consciousness of emergency responses andsafety in abnormal weather and natural disasters≪Perceptions of the ASEAN management environment≫(4) Retail industry is experiencing a difficult struggle since last
year's consumption tax rate hike. Increase in investment
interest at commercial facilities.
(5) Full scale invasion of the industry by foreign major
companies and companies in other industries is nearing.
Competition will soon be characterized by facility management
by international standard specifications and by reform-driven
innovation.

15(1) The stages of FM business development vary by country.
Singapore and Malaysia are advanced countries in FM operations,and foreign companies in Europe and the U.S. have madeadvances there, but no company is overwhelmingly prominent.
(2) The business is undeveloped, and it is necessary to build anindustry top class business foundation before a competitive
landscape is fixed up.
©2015 Aeon Delight All Rights Reserved

FY2/16 Priority Measures① Expand customers outside the AEON Group② Establish competitive advantages③ Expand the business in Asia

16

©2015 Aeon Delight All Rights Reserved

Expand Customers Outside the AEON Group■ Target large facilities such as hospitals, universities and hotels
Maximize our strengths: Nationwide service network, abundant human resources with multiple qualifications,comprehensive FM ability enabling acceptance of bundled outsourcing, disaster response abilities, and financial
strength enabling responses to large scale switching costs.

■ “Hygiene control services" has already gained resultsin the hospital market
Entrusted comprehensive management appointments at hospital chainsin Hokkaido (all 17 installations) and Kansai (all 16 installations)
Offering solutions for infection disease measure to other hospital chains,research facilities and universities■ High growth in inquiries for comprehensive proposals

17©2015 Aeon Delight All Rights Reserved

Expand Customers Outside the AEON Group≪Top priority issue: Measures for increasing domestic customers outside the AEON Group≫(1) Supplement the new sales force(2) M&A (facilities management subsidiaries of major companies)(3) Focus on capture of hospital nursing facilities(4) Reinforce the sales of patrol centers(5) Develop continuous sales(6) Expand the route of customer introductions from consulting companies

18©2015 Aeon Delight All Rights Reserved

Establish Competitive Advantages≪Secure labor power and cooperating companies≫(1) Reliability and name recognition as Japan's largest company(2) Nationwide network of cooperating companies≪Added value creation, innovation≫(1) Enhance the competitive advantages already possessed (Example: Commercialization of emergency support and other disastercountermeasures)(2) Improve the on-site operation steadily.(Examples: Small group activity, review of cleaning operation methods in FY2/15)(3) Innovation: Research & develop next-generation business model (cleaning materials, energy conservation and remote control,
BI etc.)(4) Domestic nationwide network, ASEAN and China development: Global sales network≪Energy solution business R&D≫

≪Hygiene control service R&D≫

(1) Sensor information concentration, remote surveillance andcontrol(2) Packaged commercialization of energy conservation unitaryfacility management(1) Establish cleaning technology congruent with antibacterial technology, infection measures in special
environments like hospital etc.

(3) Concentration and remote control of contract counterparty
electric power usage information(4) Research future forecasting management (disastercountermeasure, obsolescent equipment judgment, airconditioning regulation etc.) by internal experience and big
data analysis

19(2) Develop detergents for low-contamination
environments and other cleaning materials©2015 Aeon Delight All Rights Reserved

Hygiene Control Service
Challenge to the next-generation cleaning service“Improve the on-site operation steadily and build the next-generation cleaning model”■ Implement continuous improvement in productivity by reviewing operating methods andimplementing work standardization and small group activity* for scattered revisions in
by-unit productivity
Note: As "activity seeking ease of working," continuous small group activity was introduced starting in FY 2/15.
Construct systems enabling measures for work improvement centering on on-site employees■ Take measures to generate new differentiations
・ Introduce environment-friendly washing systems
Materials superior to existing sanitation related chemicals
Initiate proofing experiments in Sapporo and Okinawa

・ Using alliances, develop cleaning robots
Study and test multiple measures toward full scale introduction

・ Change to Service Level Agreement (SLA)
Note: SLA (Service Level Agreement): Not methods related to number of times and number of personnel,
but contract configuration with commitment to results

20©2015 Aeon Delight All Rights Reserved

Strengthen Competitiveness of Energy Solutions Business"Build an unique unitary energy conservation model for facility management"(1) From central to decentralized surveillance and regulation
Remote surveillance, efficient personnel allocation, reduces personnel

Data analysis
Data management

Initiate testing and experiments in food related supermarkets in Kanto area

Suggest(2) Collect, analyze and optimize customer electric power data
(3) Construct an unique facilities management unitary energy conservation services
Implement Standardization of BEMS installation
By means of optimized equipment operation by facilities management personnel,
maximize energy conservation effects
Reduce total energy costs

Grow sales by providing long term and inclusive services(4) Research and develop future forecasting management (disaster countermeasure, obsolescentequipment judgment, air conditioning regulation etc.) by internal experience and big data analysis
Enhance training of younger technicians

21©2015 Aeon Delight All Rights Reserved

Business Expansion in Asia
China
■ Expand business area by delegating more authority to local management and organizational reform at discretion■ By means of alliances with prominent local corporations, create product models for China versions of energy
conservation packages (LED, heat sources, air conditioning)■ In addition to geographical expansion, expand the business to Phase 2, further expansion of business portfolio

Malaysia■ The building maintenance business has already reached the mature stage. Accelerate customer cultivation, keying off
strengths in the cleaning and energy conservation businesses■ To change the outsourcing contractor of existing 27 shops, which operated by AEON Group, to AEON delight is an urgent
matter, simultaneously expand new consignment acceptances outside Group properties

Vietnam■ Having acquired various types of business licenses, AEON group is in an advantageous competitive position. Attack
growth markets by building speedier business, including M&A and alliances.
■ Expand the business area with establishing a new base （Hanoi office）

22©2015 Aeon Delight All Rights Reserved

FY2/16 Management Controls
・ Respond to facility management international standard requirements "ISO18480"① Quality policy

・ Renew and deepen quality focus, establishment of dedicated quality control
department under president's direct control
・ Secure human resources (quality, quantity), divergent management② Personnel policy

・ Cultivate global human resources
・ M&A for business expansion (Japan, China, ASEAN)③ Investment policy

・ Alliances with other companies to generate new business domains

・ Next-generation technology R&D in collaboration with universities, others
・ Business portfolio operation and appropriate allocation of management resources④ Capital policy

・ Stress on growth investment and returns to shareholders (aim 12% level of ROE)・ Expand dialog with shareholders and investors
・ Coping with the revised Corporate Code and the Corporate Governance Code

⑤ Governance23

・ Appointment of multiple outside directors©2015 Aeon Delight All Rights Reserved

Measures for Operating Income Expansion
FY2/16 Operating income ¥１７billion
Measures24

YoY +¥1.2billion
YoY change （billion）

Measure 1：Expand customers
outside the AEON Group

¥1-1.5 billion

Measure 2：Improve profitability of each business¥1-1.5 billion

Measure 3：Grow the subsidiaries’ businesses¥0.5 billion

Measure 4：Expand contract of AEON Group¥0.5 billion

1-4 Total: Increase in gross profit margin¥3-4 billion

YoY Increase in SG&A▲¥2 billion

YoY Increase in operating income¥1-2 billion©2015 Aeon Delight All Rights Reserved

Business Forecast for FY2/16(100 million yen)

Full-year forecast for FY2/16

AmountFY2/15 actual

Pct. tonet sales(%)

YoY (%)

Pct. tonet sales(%)

Amount(Actual)

Net sales

2,800

100.0

105.0

2,667

100.0

Operatingincome

170

6.1

107.2

158

5.9

Ordinary
income

170

6.1

106.6

159

6.0

Net income

94

3.4

107.7

87

3.3

25

©2015 Aeon Delight All Rights Reserved

Balance between Investment for Growth, Capital Efficiency and Shareholders’ return

Regard ＲＯＥ as an important indicator, and maintain １２％ level■ ROE：Emphasize the ROE as a management discipline for shareholders, with aiming point of 12% level■ Dividend ratio：Place the most importance on stable dividend, maintain 30% level of payout ratio for recent five years(ROE ％)(EPS yen)

250.0

EPS

12.6%

12.5%

12.3%

12.0%

ROE％

15.0%

Forecast

200.0

12.0%
166.2

150.0

9.0%

155.5

143.2
131.8

100.0

6.0%

50.0

3.0%

0.0

26

FY2/12
2011年度

2012年度FY2/132013年度FY2/14

FY2/152014年度FY2/16 E
2015年度E

0.0%©2015 Aeon Delight All Rights ReservedShareholder Return
Aim for eleven consecutive years of increased dividends since FY2/05
FY2/04

FY2/05

FY2/06

FY2/07

FY2/08

FY2/09FY2/10FY2/11

FY2/12

FY2/13

FY2/14

FY2/15

Dividend

¥8.0

¥9.0

¥15.0

¥17.5

¥22.0

¥27.0

¥39.0

¥40.0

¥46.0

¥48.0

¥50.0

¥52.0

Payout
ratio

38.4％

28.0％

19.8％

15.9％

17.9％

19.6％

27.4％

30.3％

32.1％

30.9％

30.1％

29.1％

60

Dividend
配当予想
forecast

Commemorative
記念配当
dividend

Dividend
配当金45.0

Payout
ratio
配当性向

40.0

50

35.0

40

30.0

5

25.0

30
20
10
0

8

9

2004年度FY2/05

2005年度FY2/0615
2006年度FY2/07

17.5
2007年度FY2/0822
2008年度FY2/09

27

34

40

46

48

50

52

20.0
15.0
10.0

5.0
2009年度FY2/102010年度FY2/11

2011年度FY2/12

2012年度FY2/132013年度FY2/142014年度FY2/152015年度FY2/16

0.0*On December 1, 2007, the company conducted a two-for-one stock split. The dividend amount assumes that the stock split was conducted at the
beginning of FY2/05.
*A commemorative dividend of 5.00 yen is included in the year-end dividend for FY2/11.

27©2015 Aeon Delight All Rights Reserved

Contents§1 Financial Report for the Fiscal Year Ended
February 28, 2015
§２ Initiatives for the Fiscal Year Ending February
29, 2016§３ Reference Materials

28

To be the Most Leading Facility Management Company in Asia
AEON delight groupis aiming to be the facility management company providing the greatest comfort
with the greatest value for facilities of growing companies in Asia

Expand the business to Asian market

Cleaning business

Facility management + energy business

China
Introduction of cleaning standardized model

Build unitary energy conservation
model for proprietary facilities
management

Expansion of business area to spatial
hygieneTotal management for energy offacilities

VietnamHygiene control business
Cambodia
Malaysia
Indonesia

29

Energy solution businessNumerical Goal of Medium-Term Management Plan
Consolidated net sales, operating income and net income plans

300

4,000
Over3,300

3,000

2,572

2,700

200

2,000

100

1,000
0
2014.2

2015.2E

2016.2E

2017.2E（100 milliom yen）

Operating income151

Net income
Over210

160

81.6

86

2014.2

2015.2E

Over11002016.2E

2017.2E

FY2/17 major numerical goals
Consolidated net sales

Over ¥330 billion

Consolidated operating income(operating margin)

Over ¥21billion

Operating margin*Major indicators of net sales(ratio outside the AEON Group 35%, overseas ratio 10%)

Over 6.4%©2014 Aeon Delight All Rights Reserved30

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.

(Stock code: 9787)

IR Contact Susumu Takahashi
Group Strategy Div.
TEL ０４３-３５１-２５６３
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 (April 10, 2015). The
business forecasts may be revised due to various factors that may arise in the future.

©2015 Aeon Delight All Rights Reserved