Financial Results for the Fiscal Year
Ended February 28, 2017

Ippei Nakayama, President and CEO
April 12, 2017©2017 Aeon Delight All Rights Reserved

Contents

１

Financial Report for the Fiscal Year Ended February 2017２

Mid-term Management Plan (FY2/18-FY2/20)

3

Initiatives for the Fiscal Year Ending February 2018©2017 Aeon Delight All Rights Reserved1Consolidated Income Statement
Net sales increased for 7 consecutive years and profits increased for 13 consecutive years

FY2/16
Summary of consolidated
income statement(Unit: 100 million yen, %)FY2/17

YoY Change

ResultPct. to net
sales
(%)

ResultPct. to net
sales
(%)

Net sales

2,810

100.0%

2,947

100.0%

136

104.9%

Gross profit

373

13.3%

389

13.2%

16

104.3%

SG&A

206

7.4%

217

7.4%

10

105.1%

Operating income

167

5.9%

172

5.9%

5

103.3%

Ordinary income

166

5.9%

173

5.9%

6

104.2%

96

3.4%

102

3.5%

5

106.0%Net income attributable toowners of parent

Difference

YoY (%)©2017 Aeon Delight All Rights Reserved2

FY2/17 Topics
1

Start providing IFM* services
Started providing IFM services to multinational pharmaceutical manufacturers*IFM (Integrated Facility Management )・・・ Contributing to the growth of customers by providing
optimal services related to facility management as a strategic partner

2

Growth of domestic subsidiaries
Our domestic subsidiaries, AEON Compass (BTM.MICE) etc., grewOverseas sales (100 million yen)
120

3

Expansion in Asia

■ China ■ Malaysia ■ Vietnam

100
80Participated in Suzhou city redevelopment project
and launched catering business in Wuhan in China

60

Expanded business steadily in ASEAN countries(Malaysia, Vietnam)

20

40

0
2014
FY2/152015
FY2/162016
FY2/17©2017 Aeon Delight All Rights Reserved

（FY）

3

Sales by Segment
Increase in sales in all seven business
Double digit growth in Cleaning services; 111.5% YoY, owing partly to thecontribution of sales of Hakuseisha
Consolidated(100 million yen)

FY2/16
ResultFY2/17
ResultYoY (%)

Cleaning services:〒¥5.4 billion YoY

Facilities management

489

505

103.2%

Cleaning services

478

533

111.5%

Security services

384

410

106.8%

Construction work:+¥1.9 billion YoYConstruction work

438

458

104.5%

Increase in orders
for renovation work

Support services

186

203

108.9%

Materials/supplies
sourcing services

505

507

100.4%

Vending machineservices327

328

100.4%

2,810

2,947

104.9%

Total sales

Consolidation of
Hakuseisha

Support services:+¥1.6 billion YoY

Growth ofsubsidiaries’ business©2017 Aeon Delight All Rights Reserved4Consolidated Balance Sheet

Assets(100 million yen)

FY2/16

FY2/17

YoY
Difference

Liabilities andnet assets

FY2/16

FY2/17

YoY
Difference(100 million yen)

Current assets

1,056

1,124

67

Current
liabilities

448

440

▲7

Tangible fixed
assets

70

90

20

Fixed
liabilities

25

33

8

Intangible
fixed assets

103

90

▲13

Total
liabilities

473

474

0

Investments,
etc.

81

89

7

Shareholder’sequity

810

885

74

Fixed assets

256

270

14

Total net assets

840

920

80

Total assets

1,313

1,395

81

Total liabilities
and net assets

1,313

1,395

81

©2017 Aeon Delight All Rights Reserved5Consolidated Cash Flow Statement

Assets(100 million yen)

FY2/16

YoY
ChangeFY2/17160

Operating
営業ＣＦCF

InvestingCF
投資ＣＦ

Financing
財務ＣＦCF

120
Cash flows fromoperating activities

103

Cash flows frominvesting activities

▲32

22

54

40

Cash flows fromfinancing activities

▲28

▲24

4

0

Cash and cash
equivalents at the end of
year

117

14
80

194

310

114

▲ 40
2016/2月期
FY2/162017/2月期
FY2/17©2017 Aeon Delight All Rights Reserved

6

Contents

１

Financial Report for the Fiscal Year Ended February 2017２

Mid-term Management Plan (FY2/18-FY2/20)

3

Initiatives for the Fiscal Year Ending February 2018©2017 Aeon Delight All Rights Reserved

7

Looking Back on the Previous Mid-term Management Plan (FY2/15-FY2/17) ①

Expand business steadily by leveraging our industry-top
strengths in Japan
Overseas business rapidly growing for three years, andcontributing to profit expansion©2017 Aeon Delight All Rights Reserved

8Looking Back on the Previous Mid-term Management Plan (FY2/15-FY2/17) ②

Changes in performance
Net sales

Operating income/Net income（100 million yen）

（100 million yen） ■ Operating income■ Net income

2,947

3,000

200

151

2,572
100

2,000

1,000
FY2/142013

Growth rate
(vs. FY2/14)

172

FY2/152014

FY2/162015

FY2/17 （FY）
2016

102
81

0
FY2/142013

FY2/152014

FY2/162015

FY2/172016 （FY）

Net sales

Operating income

Net income

114.6%

114.2%

125.5%©2017 Aeon Delight All Rights Reserved

9Looking Back on the Previous Mid-term Management Plan (FY2/15-FY2/17) ③

Achievements① Japan• Hygiene control doubled the number of hospital-controlled beds
• B-to-B businesses of Subsidiaries (KAJITAKU, AEON Compass) grew

② Overseas• Sales in China became more than double• Introduced energy-saving automatic control system at AEON Mall Suzhou ParkIssue
A sense that the conventional, labor-intensive business model may be
peaking out

Concentrate management resources in growth areas©2017 Aeon Delight All Rights Reserved

10Mid-term Management Plan (FY2/18-FY2/20) ①
Recognition of current situation
Future forecasts

Changes in population dynamics○ Declining labor force in Japan○ Population gets older in Japan,
China and other countries

Shift in economic center of gravity(from Europe and the United States ⇒emerging countries)○ Growth markets are large cities inemerging countries○ Global deflation is not over

Revolutionary evolution oftechnology utilization○Utilization / consumer popularization○Low cost of utilization, large capacity

Expected impacts to us

Our mid to long-term policy○ Domestic labor shortage ⇒ laborsaving model○ Low price policy becoming
increasingly clear○ Companies focus on core business

IFM○ The second and third-class Chinese
cities are the largest market○ Powerful rivals successively rising toprominence○ M&A Investment capability and risk
resilience○ Both aspects of cost reduction andadded-value creation○ Competition with different industries○ China and Asia advancing throughtechnology use○ Target in outsourcing market○ Acquisition of cost reduction expertise

Asia

アジア

○ Accelerate acquisition of humanresources, management skills, etc.
○ Prioritization of target for captureTechnology○ Double-faceted strategy of cost
reduction and added value○ Platform construction is the lifeline©2017 Aeon Delight All Rights Reserved

11Mid-term Management Plan (FY2/18-FY2/20) ②

Becoming a Japanese, global level IFM company
FY2/15-FY2/17
Current mid-term plan・Grew with AEON Group・New area subsidiaries andoverseas growth drove
performance
・Gross margin of the threebuilding maintenance businessdown

FY2/17
Net sales¥294.7 billion
Operating income ¥17.2 billion
Operating margin
5.9 %【vs. FY2/14】
Net sales
Operating income

114.6%
114.2%

FY2/18-FY2/20
Mid-term plan

FY2/28 Vision

 IFM
 Asia Technology

IFM company that maximizes
customer profits through technology

Net sales¥360 billion
Quantitative Operating income ¥22 billion
targets
Operating margin 6.1 ％【vs. FY2/17】
Net sales
Operating income

122.1%
127.5%Net sales ¥700 billion（Visionary target）

Towards becoming Asia's No. 1
IFM company - both in name andin reality©2017 Aeon Delight All Rights Reserved

12IFM (Integrated Facility Management) ①

IFM

Targeted
Customers(Management Strategy)

Customer Management Division(General Affairs andAdministration, etc.)

Integrated Facility Management
Management Domain

Service area
Work place

Vendor Management
Evaluation andGuidance

Formulation andManagement of
Improvement Plan

BCP

Cost Reduction
Planning

Facilities
Budget Control

EnergyManagement

AEON Delight, Affiliated Companies and Collaborating Firms

Establish
appropriate portfolio

Operation Domain
Conference
Room
Preparations

Housekeeping

Catering

Vending
Machines

Materials

Building
Construction

EnergyConservation

Security

Cleaning

Equipment・・・©2017 Aeon Delight All Rights Reserved

13

IFM (Integrated Facility Management) ②
Proposal menu viewed in terms of customer functions• Consignment
contract• Service contract• Lease contract

Foreign Affairs• Capitalization• Depreciation
management• Fixed asset
management• Accounts
receivable andpayablemanagement• Outsourcing
selection• Evaluation• Consignment
contract• Servicecontract

Legal• Outsourcing
cost
management• Repair costmanagement• Budgeting• Achievement
management

Purchasing

Accounting

Finance

WelfareIT

General Affairs• In-house network
management• Electric powersourcemanagement• Company• BCP
housing• Leasing real estate
management
management• Bending• Outsourcing business
management
management• Food service• Agent entry and exit
management
management• MICE• OA equipment
management• Reception management• Mail management• Parking lot management• Occupational safetymeasures• Disaster prevention• Fire prevention
management

Regional
cooperation©2017 Aeon Delight All Rights Reserved

14

Asia (China)
Develop IFM services in China 【Target】① Japanese companies ② Foreign companies● Locations already ventured Continue to expand service network● IFM services offices

IFM service structure

Client companies
North China · East China
ADshanghai

Wuhan Xiaozhu

Wuhan Xiaozhu

AD Jiangsu

Customers

Central China · South China
AD Jiangsu©2017 Aeon Delight All Rights Reserved

15

Asia (ASEAN)
Accelerate business expansion in ASEAN countries
Initiatives plan in areas not yet ventured

Thailand: to develop hygiene control
Indonesia: to develop mall businessSingapore: to develop IFM services

AD Vietnam

AD Malaysia● Areas already ventured
Areas with plans to venture©2017 Aeon Delight All Rights Reserved

16

Technology
Contributing to improving the efficiency of FM services + the attractiveness of facilities by deploying
intelligent facilities©2017 Aeon Delight All Rights Reserved

17

FY2/18 Target①
Net sales

Operating income/Ordinary income（100 million yen）

（100 million yen）

3,600

3,800

■ Operating income■ Net income

250

220

200

3,300

172
150

2,947
2,800

100

2,300

128
102

50

1,800
FY2/17
FY2/182016
2017（Results）

Growth rate
(vs. end-FY2/17)

FY2/192018

FY2/20
2019

（FY）

0
FY2/172016
2016（Results）（実績）

FY2/182017
2017

FY2/192018

2018

FY2/2020192019 （FY）

Net sales

Operating income

Net income

122.1%

127.5%

125.0%©2017 Aeon Delight All Rights Reserved

18

Contents

１

Financial Report for the Fiscal Year Ended February 2017２

Mid-term Management Plan (FY2/18-FY2/20)

3

Initiatives for the Fiscal Year Ending February 2018©2017 Aeon Delight All Rights Reserved

19Initiatives for FY2/18① Early establishment of IFM service model② Measures to Expand Sales by Area
③ Utilization of Technology④ Expansion of Orders for Renovation⑤ "Work Style Reforms", Strengthening
Organizational Capabilities©2017 Aeon Delight All Rights Reserved20

① Early establishment of IFM service model

Early establishment and development of
IFM service model in Japan and China
Strengthen salesorganization
Establish IFM sales office in Shanghai

Application of IT in IFM
business
Promote actual measurement of work
processes anddevelopment/introduction of reporting
systems©2017 Aeon Delight All Rights Reserved21

② Measures to Expand Sales by Area
Japan

・Strengthen sales structure by business type (hospitals, hotels, offices, etc.)
・Increase orders for construction (revitalization of commercial facilities, officelayout, etc.)

・Increase orders in 5 priority markets
・AD Jiang Su: Intensive ordrs for FM services in the redevelopment area

China

・Wuhan Xiaozhu: Expand catering business which is demanded*5 priority markets① Mid to high-end residence ② Mid to high-end shopping center③ Retirement home, Hospital, Nursing care facility ④ High-end factory⑤ Transport infrastructure facility

ASEAN

・ Malaysia: Start full-scale facilities management service in the large market
・ Vietnam: Increase quality of facilities management, cleaning, and security.
Expand orders for comprehensive facilities management©2017 Aeon Delight All Rights Reserved22

③ Utilization of Technology

Adapt intelligent technology in facilities【Phase 1】

Automatic energy-saving control through open network system
Introduced in AEON Mall Suzhou Park©2017 Aeon Delight All Rights Reserved23

④ Expansion of Orders for Renovation- Process of replacement of commercial facilities tenants -Total support from design and planning right through to after-maintenance
FY2/17 ResultsStoreclosure works

Temporaryenclosurework

Restoration
work · partition
division work

Peripheral
supportaccompanying
these works

Revitalization work

210 contracts

Temporary enclosure, Restoration work, Renovation work

2,843 contracts
Store opening
works

Preliminary
surveyDevelopm
ent plan

Planning
designDesign,construction

Interior
supervision

Construction,
Management

DeliveryAftermaintenance

Facility
management,
Cleaning,
Security©2017 Aeon Delight All Rights Reserved

24

⑤ "Work Style Reforms", Strengthening Organizational Capabilities
Structuring of proposal competition throughin-house SNS "FM-1 Grand Prix"
Posting, sharing and evaluating best practices oneach site

A total of 1,186 ideas were gatheredin FY2/17

Improvement activities based on clean crews at
cleaning sites: "Efforts to Pursue

Ease of Working“
As we celebrate our second year, we are
expanding the area from Japan to Asia
■ Presentation of activities©2017 Aeon Delight All Rights Reserved

25

Business Forecast for FY2/18

Summary of Consolidated
income statement(100 million yen, %)FY2/18

FY2/17

Pct. to net
sales
（％）

YoY
(%)

3,050

100.0%

103.5%

2,947

100.0%

Operating income

180

5.9%

104.3%

172

5.9%

Ordinary income

180

5.9%

103.6%

173

5.9%

Net income attributableto owners of parent

107

3.5%

104.5%

102

3.5%

Net sales

Forecast

ResultPct. to net
sales
（％）

©2017 Aeon Delight All Rights Reserved 26

Capital Policy
Consolidated payout ratio：Maintain around 30％：Maintain around 12％ of ROE

Capital Efficiency

ＥＰＳ（円）EPS (Yen)（Yen）

ＲＯＥ（％）ROE (%)

250

（%）
16.0

12.6
200

150
131.5

12.5

143.2

12.3

155.5

12.0
166.2

12.3

12.0

183.9

194.8

Forecast

12.0

8.0

100

4.0

50

0.0
2011
FY2/12

2012
FY2/132013
FY2/142014
FY2/152015
FY2/162016
FY2/172017
FY2/18©2017 Aeon Delight All Rights Reserved27

Shareholder Return
Aim for 13 consecutive years of increased dividends since FY2/06
Fiscalyear

FY2/05

FY2/06

FY2/07

FY2/08

FY2/09FY2/10FY2/11

FY2/12

FY2/13

FY2/14

FY2/15

FY2/16

FY2/17

FY2/18Dividend
(Yen)

8.0

9.0

15.0

17.5

22.0

27.0

39.0

40.0

46.0

48.0

50.0

52.0

55.0

61.0

Payoutratio (%)

38.4

28.0

19.8

15.9

17.9

19.6

27.4

30.3

32.1

30.9

30.1

28.3

28.2

30.0

（円）
（Yen）

Dividend
配当金

Commemorative
記念配当
dividend

Dividend forecast (yen)配当予想（円）Payoutratio (%)
配当性向

70

45.0
40.0

60

30.0

40

25.0

5

30
20
10
0

35.0

1

50

8

9

2004

2005

FY2/05

FY2/06

15

17.5

2006

2007

22

27

34

40

46

48

50

52

54

61

20.0
15.0
10.0
5.0
0.0

FY2/07

FY2/082008

FY2/092009

FY2/102010

FY2/11

2011

FY2/12

2012

FY2/132013

FY2/142014

FY2/152015

FY2/162016

FY2/172017

FY2/18©2017 Aeon Delight All Rights Reserved 28

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,
and performance 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 specificallystated otherwise.
◇ 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 Yoshiyuki KyomotoGroup 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 12, 2017). The
business forecasts may be revised due to various factors that may arise in the future.
©2017 Aeon Delight All Rights Reserved