AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011
April 14, 2011
Listed company name:AEON DELIGHT CO., LTD.

Listed exchanges: Tokyo Stock Exchange andOsaka Securities Exchange (First Section)

Stock code:
Representative:

9787(Title)President and CEO

URL http://www.aeondelight.co.jp(Name) Yuiken Tsutsumi

Contact:(Title)General Manager, Corporate
Strategy Dept.

(Name) Yoshiyuki Kyomoto TEL +81-6-6260-5632

Planned date of ordinary
general meeting ofshareholders:Planned date for filling ofannual securities report:

Planned date forcommencement ofdividend payments:

May 24, 2011

May 10, 2011

May 24, 2011

(Amounts of less than one million yen have been rounded down.)
1. Consolidated Results for the Fiscal Year Ended February 28, 2011 (from March 1, 2010 to February
28, 2011)(1) Consolidated Operating Results(Percentage figures show year-on-year change.)
Operating Income Ordinary Income
Net Income

Net SalesYear Ended Feb. 28, 2011
Year Ended Feb. 28, 2010

Millions of yen％

Millions of yen％

170,905
140,299

21.8
(3.7)

12,031
9,970

20.7
0.2

Net
Income per
Share

Diluted Net
Income per
Share

％

Millions of yen

12,089
9,912

22.0
1.0

Ratio of Ordinary
Income to Total
AssetsReturn on
EquityMillions of
yen

％

6,495
5,466

18.8
12.1

Ratio of Operating
Income to Net
Sales

Yen

Yen

％

％

％

Year Ended Feb. 28, 2011142.56
Year Ended Feb. 28, 2010137.79(Reference)
Equity in net income of affiliates

142.28137.58

15.5
18.9

18.1
20.3

7.0
7.1

Year ended Feb. 28, 2011
Year ended Feb. 28, 2010

41 million yen
3 million yen(2) Consolidated Financial Position

Total Assets
As of Feb. 28, 2011
As of Feb. 28, 2010
(Reference)
Shareholders’ equity

Net Assets

Shareholders’Equity Ratio

Net Assets per
Share

Millions of yen

Millions of yen％

Yen

84,624
48,67052,88731,36462.3
64.2

1,005.62
787.84As of February 28, 2011
As of February 28, 2010

52,738 million yen
31,253 million yen(3) Consolidated Cash Flows
Cash Flows
from Operating
Activities

Cash flows
from Investing
Activities

Cash Flows
from Financing
Activities

Cash and Cash
Equivalents at
End of Period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

6,808
7,031

(3,000)(1,966)(1,321)(4,169)12,317
7,873

Year Ended Feb. 28, 2011
Year Ended Feb. 28, 2010

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

2. Dividends(RecordDate)

End ofthe 1stQuarterYear Ended
February 28,
2010Year Ended
February 28,
2011Year Ending
February 29,
2012 (Forecast)

Dividends per Share
End of
End ofYearthe 2nd
the 3rdend
Quarter Quarter

Total

Total
Dividends(annual)PayoutRatio(consolidated)

Ratio of
Dividends to
Net Assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

-

12.00

-

15.00

27.00

1,071

19.6

3.7

-

17.00

-

22.00

39.00

1,828

27.4

4.3

-

20.00

-

20.00

40.00

27.6

Note: The Company merged with CERTO Corporation effective as of September 1, 2010. A merger
commemorative dividend of 5.00 yen per share is included in the year-end dividend for the
fiscal year ended on February 28, 2011. The consolidated payout ratio excluding thecommemorative dividend of 5.00 yen is 23.8%.
3. Forecast of Consolidated Results for the Year Ending February 29, 2012 (from March 1, 2011 to
February 29, 2012)(Figures expressed in percentages represent year-on-year percentage changes.)
Operating
Ordinary
Net Income
Net sales
Net Income
IncomeIncomeper Share
Six months ending
Millions ofMillions ofMillions ofMillions of
Yen
％
％
％
％
yen
yen
yen
yen
August 31, 2011
Year Ending
February 29, 2012

104,000
213,000

51.1
24.6

6,900
14,300

37.4
18.8

6,900
14,300

36.5
18.3

3,700
7,600

33.4
17.0

70.55
144.92

4. Other Remarks(1)
Changes in significant subsidiaries during the period: None(changes in specified subsidiaries resulting in changes in scope of consolidation）
Newly Included: Excluded: Note: For more details, please refer to “Corporate Group Organization” on page 5.
(2)Changes in the principles, procedures, or methods of presentation for accounting treatment
related with the preparation of the financial statements as described in “Significant Changes in
the Basis for Preparation of the Financial Statements.”
1) Change arising from revisions of accounting standards: No
2) Change due to reasons other than described above: Yes
Note: For more details, please refer to “Changes in Significant Items That Constitute the Basisfor Preparing Consolidated Financial Statements” on page 15.
(3)
Number of shares issued (common stock)1) Number ofshares
As of Feb. 28,
As of Feb. 28,
54,169,633 shares 2010:
41,400,000
outstanding at
2011:
sharesend of period(including
treasuryshares)2) Number oftreasury shares As of Feb. 28,
As of Feb. 28,
1,726,306 shares
1,729,838 sharesat end of
2011:
2010:
periodNote: Number of outstanding shares as calculation base for net income per share (consolidated) isshown in “Per share information” on page 24.

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

(Reference) Overview of Non-consolidated Results
Non-consolidated Results of Fiscal Year Ended February 28, 2011
(from March 1, 2010 to February 28, 2011)(1) Non-consolidated Operating Results
Net Sales
Millions of％yenYear Ended Feb. 28,
2011Year Ended Feb. 28,
2010(Percentage figures show year-on-year change.)
Operating Income Ordinary Income
Net Income
Millions ofMillionsofMillions
of
％
％
％
yen
yen
yen

161,026

27.3

11,05819.9

11,330

22.2

6,029

19.0

126,528

(8.8)

9,224

(3.0)

9,274

(1.7)

5,067

5.4

Net Income per
Share
Yen

Diluted Net Income
per ShareYen

132.33132.06127.73127.53

Year Ended Feb. 28,
2011Year Ended Feb. 28,
2010(2)Non-consolidated Position

Year Ended Feb. 28,
2011Year Ended Feb. 28,
2010(Reference)
Shareholders’ equity

Millions of yen

Shareholders’Equity Ratio%

Net Assets per
Share
Yen

82,903

52,10062.7

990.62

46,13031,01667.0

779.08

Total Assets

Net Assets

Millions of yen

As of February 28, 2011
As of February 28, 2010

51,951 million yen
30,906 million yen* Information concerning proper use of financial forecasts and other special instructions
The financial forecast provided in the preceding section was prepared on the information available
as of the time of publication of the report. Actual results may differ from the forecast due to various
factors that may arise in the future. Since the Company conducts consolidated base group financial
management, only the consolidated financial forecast is disclosed.

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

We would like to express our sincerest condolences to the victims of the Great East Japan Earthquakethat occurred on March 11, 2011.
The AEON DELIGHT Group is doing everything in its power for the fastest possible recovery of thedisaster-stricken area through its renovation business aimed at building maintenance, management,
and restoration, and through the provision of a safe and secure environment with supplies of beverages
and sanitary goods.
1. Results of Operations(1) Analysis of Operating Results<Summary of consolidated results for the fiscal year ended February 28, 2011>
During the consolidated fiscal year ended February 28, 2011, there was some partial economic
recovery thanks to economic growth driven by emerging countries and the effect of various policies
enacted by the Japanese government. However, the future outlook remains unclear due to theimpact of prolonged deflation.
The business environment surrounding the AEON DELIGHT Group continues to be difficult, as
companies remain highly aware of cost-saving and reduction. In contrast, we have begun to seesome optimistic signs, as companies strengthen initiatives aimed at growth and orders increase forrenewal work and business-related materials.
Within this business environment, the Company merged with CERTO Corporation on September 1,
2010 to create a new business called the “Comprehensive Facility Management Service(Comprehensive FMS)” aiming at a new stage of growth. We have strived to be a true partner forour customers by adding new materials-related and vending machine businesses through thismerger and providing our customers with an environment that allows them to focus on work that isessential for their business strategy.
As the result of measures enacted for expanding business during the current consolidated fiscal
year, business transactions have commenced with a wide variety of customers at facilities forvarious purposes, such as urban shopping centers and office buildings for foreign-affiliatedcompanies in the Tokyo metropolitan areas, redeveloped complex facilities, airport facilities,
distribution centers, etc. In addition, we have started to provide new services through proposals formaterials procurement and sales, and management and operation of vending machines.
Although slightly behind initial projections, the results of proposal activities that have been promoted
from the current fiscal year began to be gradually seen in the fourth quarter of this fiscal year.
Particularly in the field of environmental load reduction, we were able to achieve results thatsignificantly exceeded those of the previous fiscal year through the promotion of various
environmental solution businesses, such as the aggressive proposal of environmentally friendly
products that utilize know-how gained in the materials-related business, in addition to proposals for
traditional CO2 reduction work.
In continuation of the horizontal integration of the Company's cleaning business model that has
been promoted for improving profitability, we have focused on increasing the efficiency of the
facilities management business from the beginning of the fiscal year. Particularly at centers that
conduct patrol-style facilities management, efficiency has been improved through the optimization of
patrol routes using GPS and the optimization of staff and office deployment. In the materials-related
business, we have worked towards reducing distribution expenses through decreased inventory.
For the early exploitation of integration synergies, in anticipation of the merger in September of lastyear we consolidated and streamlined offices in order to reduce selling, general and administrative
expenses, and strove to make the administrative department more efficient.
Overseas, we added AEON DELIGHT (BEIJING) COMMERCE CO., LTD. which procures materials
and operates vending machines to the AEON DELIGHT Group through the merger with CERTO
Corporation. By operating it together with AEON DELIGHT (BEIJING) CO., LTD., we are prepared
to promote the comprehensive FMS business in China. In China, we have established businesses
with newly opened commercial facilities in Beijing and Tianjin, and have started to provide newservices at existing locations in Guangdong.
As a result of these measures, the Company posted consolidated net sales of 170,905 million yen(121.8% year-on-year), operating income of 12,031 million yen (120.7% year-on-year), and ordinary
1

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

income of 12,089 million yen (122.0% year-on-year). An extraordinary loss of 985 million yen
including merger-related expenses of 724 million yen was posted. After the deduction of
extraordinary loss and taxes, net income was 6,495 million yen (118.8% year-on-year) for the fiscal
year.
Year EndedYear Ended
February 28,
February 28, 2011
2010
Millions of yen
Millions of yen
140,299
170,905

Net Sales

Change% versus previous
fiscal year

Millions of yen
30,605

121.8

Operatingincome9,970

12,031

2,061

120.7

Ordinary Income

9,912

12,089

2,177

122.0

Net Income

5,466

6,495

1,029

118.8

<Results by business segment>
Comprehensive FMS business and other businesses
Net sales were 40,019 million yen for the facilities management business, 32,088 million yen for the
security services business, 41,142 million yen for the cleaning services business, 16,420 million yen
for the construction work business, 18,718 million yen for the materials-related business, 17,188
million yen for the vending machine business, and 5,271 million yen for the support business.
As a result, net sales were 170,848 million yen for the comprehensive FMS business, resulting in
total net sales of 170,905 million yen including other businesses.
Accompanying the merger with CERTO Corporation on September 1, 2010, the materials-related
business (acting as a purchase agent for indirect materials and procuring materials) and thevending machine business (conducting management and operations of beverage vending
machines) originally conducted by CERTO Corporation were newly added to the AEON DELIGHT
Group’s range of businesses. As a result, the information reporting segments have changed for thecurrent fiscal year. For an overview of the changes and results by business segment, please refer to
4. Consolidated Financial Statements (7) Notes on consolidated financial statements (Segment
Information) [Business segment information] on page 16.
<Forecast for the year ending February 29, 2012>
We forecast consolidated earnings results for the year ending February 29, 2012 as follows:(Percentage figures show year-on-year change)

Operating
IncomeNet Sales
Millions of yen

Six months ending
Aug. 31, 2011
Year ending Feb.
29, 2012％

Millions ofyen

Ordinary Income Net Income％

Millions ofyen％Millionsof yen％Net Income
per ShareYen

104,000 51.1

6,900 37.4

6,900 36.5

3,700 33.4

70.55

213,000 24.6

14,300 18.8

14,300 18.3

7,600 17.0

144.92<Information on proper use of the financial forecast and other special instructions>
The financial forecast described above has been prepared based on the information available as ofthe date of publication of this report. Actual results may differ from the above-mentioned forecast
due to various factors that may arise in the future.
Since the Company conducts consolidated base group financial management, only the consolidated
financial forecast is disclosed.
(2) Analysis of Financial Position<Summary of consolidated financial position for the fiscal year ended February 28, 2011>
Total assets at the end of the fiscal year increased by 35,954 million yen (73.9%) year-on-year to
84,624 million yen.
This increase is attributable mainly to an increase of 5,134 million yen in cash and deposits(including 1,958 million yen carried over from the merger), an increase of 11,962 million yen innotes and accounts receivable-trade (including 9,828 million yen carried over from the merger), an
2

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

increase of 15,920 million yen in deposits of subsidiaries and affiliates paid to affiliates underbailment arrangements (including 12,900 million yen carried over from the merger), and a decreaseof 788 million yen in amortization of goodwill.
Liabilities at the end of the fiscal year increased by 14,431 million yen (83.4%) year-on-year to
31,737 million yen.
This increase is attributable mainly to an increase of 13,449 million yen in notes and accounts
payable-trade, (including 12,942 million yen carried over from the merger), an increase of 719
million yen in accounts payable-other (including 1,306 million yen carried over from the merger), an
increase of 653 million yen in income taxes payable (including 587 million yen carried over from themerger), and a decrease of 402 million yen in other current liabilities (including 55 million yen
carried over from the merger).
Net assets at the end of the fiscal year increased by 21,523 million yen (68.6%) year-on-year to
52,887 million yen.
This increase is attributable mainly to the increase in capital surplus of 15,770 million yen throughthe merger and an increase of 6,495 million yen in retained earnings due to the posting of net
income for the fiscal year, and a decrease of 1,269 million yen in retained earnings due to dividend
payments.
As a result of the above factors, the shareholders’ equity ratio was 62.3%.
Note that the total assets carried over from the merger with CERTO Corporation were 31,458
million yen and total liabilities were 15,301 million yen.
<Summary of consolidated cash flows for the fiscal year ended February 28, 2011>
Cash and cash equivalents (hereinafter referred to as “cash”) were increased to 12,317 million yen
at the end of the fiscal year by adding the year-on-year increase of 2,472 million yen (274.1%) to a
total increase of 1,971 million yen, which was brought about by an increase accompanying themerger with CERTO Corporation on September 1, 2010 and a change in the scope of consolidation.
The status of cash flows and the major factors involved are described below.
(Cash flows from operating activities)
Net cash provided by operating activities came to 6, 808 million yen. The major factors contributing
to the net cash inflow were posting of net income before income taxes and minority interests of
11,109 million yen; 1,788 million yen due to amortization of goodwill and depreciation andamortization, which were partially offset by a decrease of 1,188 million yen due to an increase innotes and accounts receivable-trade; a decrease of 523 million yen due to a decrease in accounts
payable-other; and a decrease of 4,681 million yen due to income tax payments.
(Cash flows from investing activities)
Net cash used in investing activities amounted to 3,000 million yen. The main factors behind thiswere an inflow of 818 million yen for collection of loans receivable and an outflow of 3,020 million
yen for payments and collection of deposit of subsidiaries and affiliates.
(Cash flows from financing activities)
Net cash used in financing activities was 1,321 million yen. This owed mostly to dividend payments
amounting to 1,262 million yen.
Changes in the Group’s cash flow indicators are as shown below.
Year EndedYear Ended
February 28,
February 28,
2009
2010

Year Ended
February 28,
2011

Shareholders’ equity ratio (%)

54.1

64.2

62.3

Shareholders’ equity ratio at market value (%)

102.4

99.1

93.4

Ratio of interest-bearing debts to cash flows (%)

0.3

0.0

0.0

7,361.7528.7

2,314.4

Interest coverage ratio

Shareholders’ equity ratio: Shareholders’ equity/Total assets
Shareholders’ equity ratio at market value: Total market capitalization/Total assets
Ratio of interest-bearing debts to cash flows: Interest-bearing debts/Operating cash flows3

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

Interest coverage ratio: Operating cash flows/Interest paid
Note: 1. The above-mentioned indicators have been calculated based on consolidated financial data.
2. Total market capitalization was calculated as the closing stock price at the end of the period
multiplied by the number of shares outstanding (excluding treasury stock) at the end of theperiod.
3. Interest-bearing debts represent all debts that are recorded in the consolidated balance
sheets on which interest is paid.
4. Operating cash flows are the “net cash provided by (used in) operating activities” reported in
the consolidated statements of cash flows.
5. Interest paid represents the “interest expenses paid” reported in the consolidated statementsof cash flows.
(3) Basic Policy on Profit Distribution and Dividends for Fiscal 2011 and 2012
The Company's basic policy is to work towards securing a stable business base and improving
return on equity, and providing shareholders dividends based on business performance while
maintaining and continuing a stable dividend.
We regard the consolidated payout ratio as an important benchmark and aim to provide a stabledividend payment with a consolidated payout ratio of 20% or higher while taking into account theratio of dividends to net assets.
We will use retained earnings for proactive investments in sustainable growth and improvement in
the quality of the comprehensive FMS business, such as innovation, information technology, humanresources development, and M&As. We will endeavor to meet shareholders’ expectations byenhancing our corporate value in this manner.
The year-end dividend is 22 yen per share, including the CERTO Corporation merger
commemorative dividend on September 1, 2010 of 5 yen per share that was in the initial forecasts.
This accounts for an annual dividend of 39 yen per share (up 144.4% year-on-year), including thedividend of 17 yen per share that was already provided.
As for dividend payments for fiscal year 2012, we project an annual dividend of 40 yen per share,
an increase of 1 yen from the dividend of 39 yen per share from this year that included the merger
commemorative dividend of 5 yen per share (an interim dividend of 20 yen per share and a yearend dividend of 20 yen per share; an increase of 102.6% from the annual dividend to be paid for thecurrent fiscal year).

4

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

2. Corporate Group Organization
The AEON DELIGHT Group comprises AEON DELIGHT CO., LTD. (“AEON DELIGHT”), tenconsolidated subsidiaries, and one equity method affiliate. AEON DELIGHT is also a member of thecorporate group of AEON Co., Ltd., a pure holding company. The AEON Group organizes its
operating companies into 12 segments (GMS <general merchandise stores>, SM <supermarkets>,
discount store business, strategic small stores, drugstore & pharmacy business, integrated financial
services, shopping center development, services, specialty stores, group IT and digital business,
ASEAN business , and the China business).
The AEON DELIGHT Group is positioned in service operations among the afore-mentioned
business segments of AEON Co., Ltd., and as one of the core companies of the AEON Group, it isengaged in the comprehensive FMS (facility management service) business, which consists of total
management and operations of the customer's non-core business in order to create a comfortableenvironment so that the customer can focus on their core business.
(1) Comprehensive FMS business
1) Facilities management businessBusiness that conducts the preservation, inspection, maintenance, etc. of buildings facilities
2) Security services businessBusiness that provides comprehensive security services including security for facilities,
security to handle crowds and traffic, security for transporting valuable goods, etc.
3) Cleaning services businessBusiness that conducts the cleaning of buildings and facilities
4) Construction work businessBusiness that conducts large-scale renovation and interior design work, makes
environmental load reduction proposals, and installs solar power generation systems
5) Materials-related businessBusiness that acts as a purchase agent for indirect materials and procures materials, etc.
6) Vending machine businessBusiness that operates beverage vending machines, cares for foliage plants, andmaintains air purification units
7) Support businessBusiness that includes the retail store business, technical training business, temporary
staffing business, and document management business(2) Other businesses
Real estate lease business5

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

3. Management Policy(1) Basic management policy
The Company made a new start from September 1, 2010 as the new AEON DELIGHT, aiming at a
new level of growth. The Company has established a new Management Principle: “We pursue thecreation of environmental value for the customers and for the local communities.” Through this, theCompany will act as a member of the local community and promote initiatives aimed at becoming atrue partner company for our customers while we create and provide environmental value.
Based on this Management Principle, we will contribute to the sustainable development of society
as a pioneer in the comprehensive FMS business by continuing to develop safety, security, andcomfort in our society. Our basic management policy is to aim for the maximization of corporate
value so that we are highly trusted and valued by all of our stakeholders, including our shareholders
and customers.
(2) Medium- and long-term corporate business strategy and issues to be addressed
The AEON DELIGHT Group has formulated a three-year medium-term business strategy starting infiscal year 2011 aimed at further growth under the comprehensive FMS business. There areconcerns about the business environment due to the impact of the Great East Japan Earthquakethat occurred on March 11, 2011. Conversely, because of this environment, we believe we canachieve even further improvement of corporate value by providing proposals aimed at safety andsecurity or environmental load reduction, while contributing to society.
<Specialization and integration through the Comprehensive FMS business>
The AEON DELIGHT Group aims at becoming a true partner company for our customers andincreasing competitiveness for our comprehensive FMS business (pursuit of specialization), while
expanding our service menu in response to the wide variety of customer needs in expanding
business fields (strengthening of integrative capabilities).
(Pursuit of specialization)
The Company has promoted a total of six main businesses (facilities management, security
services, cleaning services, construction work, materials-related, and vending machines) as thelargest comprehensive building maintenance company in Japan and the largest back-office support
company in the industry. In the future, we aim to further increase the specialization of thesebusinesses through innovation and improve our competitiveness in these fields.
(Strengthening of integrative capabilities)
We aim at expanding our service menu in response to the needs of our customers while focusing
on our six core comprehensive FMS businesses mentioned above. In addition, in order to take careof all of our customers’ wide range of non-core businesses, we will conduct a detailed study of eachcustomer's expenses to define waste and unevenness and promote sales activities to provide
corresponding solutions.
<Initiatives aimed at gaining new growth opportunities>
Aiming for growth, the AEON DELIGHT Group will give special attention to the following threemarkets from the perspective of gaining long-term growth opportunities.
• Environmental load reduction market
As it is expected that environmental load reduction needs will increase even more in the future, the
AEON DELIGHT Group will also further strengthen initiatives in this field. We will provide
environmental solutions from a new perspective based on the understanding of the businesses ofcompanies we have gained through initiatives in the past, and exploiting the experience and knowhow we have gained managing the buildings of customers.
• Major urban area market
Many companies are making preparations for the expansion of new businesses in response toshifts in demography in Japan, including the aging population and declining birthrate and the shift tourban areas. In response to these changes, the AEON DELIGHT Group will advance with theconstruction of new business models in the major urban areas. The AEON DELIGHT Group willleverage its strengths to conduct comprehensive proposals for small-scale commercial facilities,
which are expected to particularly increase in major urban areas in the future. In addition, we will
strengthen business aimed at apartments as demand is expected to increase due to the aging
society and return to urban areas, and also enter businesses aimed at the B2B2C market as well.

6

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

• Asian market
We will maintain a watch on trends in the rapidly growing Asian countries and aggressively allocate
business resources in response to growth in this market.
We will further increase the business know-how we have gained in China through initiatives in thepast to further accelerate business expansion. Besides China and in addition to Vietnam, where
preparations are already under way, we will proceed with initiatives aimed at growth in other regionsin Asia.

7

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

4. Consolidated Financial Statements, etc.
(1) Consolidated Financial Statements
1) Consolidated Balance Sheet(millions of yen)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Deferred tax assets
Deposit of subsidiaries and affiliates
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Machinery for area control, net
Tools, furniture and fixtures, net
LandConstruction in progress
Other
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

8

Year Ended Feb. 28, 2010
(As of Feb. 28, 2010)

Year Ended Feb. 28, 2011
(As of Feb. 28, 2011)

7,964
16,284
20
1,067
3,000
1,811
(122)

13,09828,246
1,476
1,265
18,9201,741(226)30,02664,524

1,185
305
－
284
15
951

1,234
265
1,791
284
－
181

2,741

3,756

11,295629

10,546
1,030

11,924

11,577

2,050
65
289
1,712
(141)
3,977
18,644
48,670

2,983
－
278
1,700
(196)
4,766
20,10084,624

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

(millions of yen)
Year Ended Feb. 28, 2010
(As of Feb. 28, 2010)

Year Ended Feb. 28, 2011
(As of Feb. 28, 2011)

8,974
55
25
2,104
2,191
494
738

22,424
24
25
2,824
2,844
485
776

101

127

1,594

1,191

16,28130,724

31
185
577
65
164

6
407
487
51
58

1,024

1,012

17,306

31,737

Capital surplus
Retained earnings
Treasury stock

3,238
2,964
25,366(461)

3,238
18,741
30,575(461)

Total shareholders' equity

31,10752,092

149

664

(3)

(19)

145

645

110

149

31,36452,887

48,67084,624

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Accounts payable-other
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Provision for reward of businessperformance
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Deferred tax liabilities
Provision for retirement benefits
Provision for directors' retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock

Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total valuation and translation adjustments
Subscription rights to shares
Total net assets
Total liabilities and net assets

9

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

2) Consolidated Statement of Income(millions of yen)
Year Ended Feb. 28, 2010

Year Ended Feb. 28, 2011

(March 1, 2009 –Feb. 28, 2010)(March 1, 2010 –Feb. 28, 2011)

Net sales
Cost of sales

140,299
119,180

170,905
146,916Gross profit

21,11823,989Selling, general and administrative expenses

11,148

11,957

Operating income

9,970

12,031Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Other

27
30
3
28

56
33
41
76

Total non-operating income

88

208

18
31
41
14
9
30

2
51
47
16
－
30

147

149

9,912

12,089

－
－
290
83
54
29

3
1
－
－
－
－

457

5

－
－
190
28
15

724
181
－
－
79

234

985

10,134

11,109

4,045
572

4,739
(125)

4,618
50

4,613
－

5,466

6,495

Non-operating expenses
Interest expenses
Loss on cancellation of company housing
Loss on retirement of noncurrent assets
Compensation for accident expenses
Adjustment of labor insurance expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sales of memberships
Reversal of provision for retirement benefits
Reversal of allowance for doubtful accounts
Compensation income
Other
Total extraordinary income
Extraordinary loss
Management integration expenses
Welfare expenses for prior periods
Impairment loss
Loss on retirement of noncurrent assets
Other
Total extraordinary losses
Income before income taxes and minority
interests
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income
Net income

10AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

3) Statements of Changes in Shareholders' Equity(millions of yen)
Year Ended Feb. 28, 2010
(March 1, 2009 –Feb. 28, 2010)

Year Ended Feb. 28, 2011
(March 1, 2010 –Feb. 28, 2011)

3,238

3,238

―

―

Balance at the end of current period
Capital surplus

3,238

3,238

Balance at the end of previous period

2,963

2,964

1
―

5
15,7701
2,964

15,776
18,741

20,85225,366

(952)
5,466
―

(1,269)
6,495
(17)

4,514
25,366

5,208
30,575

(461)

(461)

(8)
8
―
(0)

(1)
1
(0)
(0)

(461)

(461)

26,592

31,107

(952)
5,466
(8)
9
―

(1,269)6,495(1)
615,753

4,515
31,107

20,98452,092(30)

149

Shareholders' equity
Capital stock
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period

Changes of items during the period
Disposal of treasury stock
Increase by merger
Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income
Increase by merger
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the end of previous period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Increase by merger
Total changes of items during the period
Balance at the end of current period
Total shareholders' equity
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Increase by merger
Total changes of items during the period
Balance at the end of current period
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Balance at the end of previous period
11

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

(millions of yen)

Changes of items during the period
Net changes of items other thanshareholders' equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the end of previous period
Changes of items during the period
Net changes of items other thanshareholders' equity
Total changes of items during the period
Balance at the end of current period
Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period
Net changes of items other thanshareholders' equity
Total changes of items during the period
Balance at the end of current period
Subscription rights to shares
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period
Minority interests
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period
Total net assets
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Increase by merger
Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period
12Year Ended Feb. 28, 2010
(March 1, 2009 –Feb. 28, 2010)

Year Ended Feb. 28, 2011
(March 1, 2010 –Feb. 28, 2011)

180

514

180
149

514
664

(11)

(3)

7

(15)

7
(3)

(15)
(19)

(42)

145

188

499

188
145

499
645

72

110

38

38

38
110

38
149

1,456

―

(1,456)―(1,456)―――28,07931,364

(952)
5,466
(8)
9
―

(1,269)6,495(1)
615,753(1,230)538

3,284
31,364

21,52352,887

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

4) Consolidated Statement of Cash Flows(millions of yen)
Year Ended Feb. 28,
2010(March 1, 2009 –Feb. 28, 2010)

Year Ended Feb. 28,
2011(March 1, 2010 –Feb. 28, 2011)

10,134
728
190
865
(84)
2

11,109
999
―
788
(14)
(89)

7

(13)

Interest and dividends income
Interest expenses

(57)
18

(89)
2

Loss (gain) on sales of property, plant and equipment

75

60

Loss on cancellation of company housing

31

51

Loss (gain) on valuation of investment securities

4

67

2,507

(1,188)(1,986)

496

(493)

(523)

48

(40)

(776)

(216)

SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid

11,21959(13)(4,233)

11,40092(2)(4,681)

Net cash provided by (used in) operating activities

7,031

6,808

806
(91)
(793)

91
(511)
(541)

47

114

(119)
(5)
6
(1,608)

(251)
(4)
90
―

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for directors' retirement
benefits

Decrease (increase) in notes and accounts receivabletrade
Increase (decrease) in notes and accounts payabletrade
Increase (decrease) in accounts payable-other
Decrease (increase) in accounts receivable-other
Other, net

Net cash provided by (used in) investing activities
Proceeds from withdrawal of time deposits
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of investments in subsidiaries
Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Payments for deposit of subsidiaries and affiliates

125―(79,800)(135,840)

Collection of deposit of subsidiaries and affiliates
Payments of loans receivable

79,300(3)

132,820―(millions of yen)13

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

Year Ended Feb. 28,
2010(March 1, 2009 –Feb. 28, 2010)

Year Ended Feb. 28,
2011(March 1, 2010 –Feb. 28, 2011)

64
(52)
47
105
(1,966)

818
292
(154)
76
(3,000)Net increase (decrease) in short-term loans payable(1,017)(27)

Liquidation of claims credit loans payable
Repayment of long-term loans payable
Cash dividends paid
Net decrease (increase) in treasury stock
Other, net(1,500)
(697)
(951)
0
(2)

―
(25)
(1,262)(1)(5)

Net cash provided by (used in) financing activities(4,169)(1,321)

7(13)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period

902
6,970

2,472
7,873

Increase in cash and cash equivalents resulting frommerger

―1,958

Increase (decrease) in cash and cash equivalents
resulting from change in scope of consolidation

―

13

7,873

12,317

Collection of loans receivable
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities

Effect of exchange rate change on cash and cash
equivalents

Cash and cash equivalents at end of period

14

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011(5) Notes on Premise of Going Concern
None(6) Changes in Significant Items That Constitute the Basis for Preparing Consolidated Financial
Statements(Change in accounting policy)"Partial Revision (no. 3) of Accounting Standards for Retirement Benefits" (Statement No. 19
issued by the Accounting Standards Board of Japan on July 31, 2008) is applied from the current
consolidated fiscal year.
This change will not have a material effect on income or expenses.
(Change in presentation method)
Because the materiality of tools, furniture and fixtures, which was included in “Other” in property,
plant and equipment during the previous fiscal year, has increased, it is listed separately from thecurrent fiscal year. The amount of tools, furniture and fixtures, at the end of the previous fiscal
year was 876 million yen.
Because the amount of long-term loans receivable, which was listed separately on the balance
sheet during the previous fiscal year, has decreased, it is included in “Other” (46 million yen forthe current fiscal year) in investments and other assets from the current fiscal year.

15

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011(7) Notes on Consolidated Financial Statements(Segment Information)[Business segment information]
Fiscal year ended February 28, 2010 (from March 1, 2009 to February 28, 2010)(millions of yen)
Other
Operations

Building Management
Facility
management
I.

Security

Cleaning

Construction
work

Other
businesses

Eliminations/
Consolidated
corporate

Total

Net Sales andoperating income orloss

Net sales(1) Sales tounaffiliatedcustomers

41,66634,28145,05013,8895,412

140,299―

140,299

10

141

127

156

578

1,013

(1,013)―

Total sales

41,67634,42245,177

14,046

5,990

141,313(1,013)140,299

Operating expenses

37,16831,68439,397

12,724

5,242

126,2174,111

130,329

Operating income

4,507

2,738

5,780

1,321

748

15,095(5,125)

9,970

9,099

4,062

5,187

825

368

19,54329,126

48,670Depreciation andamortization

97

74

240

8

11

433

295

728

Impairment loss

―

―

―

―

51

51

138

190

Capital expenditures

61

34

220

1

―

317

791

1,109

(2) Intersegment sales
or transfer

II. Assets,
depreciation andamortization,
impairment loss
and capital
expenditures
Assets

Notes: 1. Business segments are classified based on the internal control framework.
2. Main services of each business segment are as follows:(1) Building Managementa. Facility management business: Building facility maintenance, inspection, andimprovement
b. Security business: Security and guards for building facilities and events
c. Cleaning business: Environmental preservation for building facilities
d. Construction work business: Repair work for building facilities(2) Other Businesses
a. Other businesses: Technical training and temporary staffing business, business incidental
to store operations management, document control business, etc.
3. Unallocable operating expenses included in eliminations/corporate amount to 5,125 million
yen, and consist mainly of general affairs and other administrative expenses of theCompany.
4. Corporate assets included in eliminations/corporate amount to 29,126 million yen, andconsist mainly of surplus funds (cash deposits), long-term investments (investment
securities), goodwill, and assets belonging to the administrative function of the Company.

16

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

Fiscal year ended February 28, 2011 (from March 1, 2010 to February 28, 2011)(millions of yen)Comprehensive FMS business
Other

Facilities Security Cleaning Construction Materials- Vending
Support businesses
manageme services services
work
related machine
business
nt business business business business business business
I.

Total

Eliminations /Consolidated
corporate

Net sales
andoperatingincome orloss

Net sales(1) Sales tounaffiliatedcustomers(2) Intersegment
sales ortransfer

40,01932,08841,142

16,42018,71817,188

5,271

27

347

156

210

1

─

669

Total sales

40,04732,43541,298

16,63018,72017,188Operatingexpenses

34,931

29,67035,361

15,41618,092

Operatingincome

5,115

2,764

5,937

1,214

9,247

3,999

5,209

Depreciation andamortization

89

60

Capitalexpenditures37

9

56 170,905

─

170,905

1,580(1,580)─

5,940

224 172,485(1,580)170,905

15,7085,564

8 154,755

4,118

158,873

627

1,480

375

215

17,730(5,698)12,031

912

6,289

7,102

492

145

33,39851,22584,624

230

9

59

228

5

8

694

305

999

172

0

13

41

―

―

275

415

690

167

II. Assets,
depreciation
andamortization,and capital
expenditures
Assets

Notes: 1. Business segments are classified based on the internal control framework.
2. Main services of each business segment are as follows:(1) Comprehensive FMS business
1) Facilities management businessBusiness that conducts the preservation, inspection, maintenance, etc. of building
facilities
2) Security services businessBusiness that provides comprehensive security services including security for facilities,
security to handle crowds and traffic, security for transporting valuable goods, etc.
3) Cleaning services businessBusiness that conducts the cleaning of buildings and facilities
4) Construction work businessBusiness that conducts large-scale renovation and interior design work, makes
environmental load reduction proposals, and installs solar power generation systems
5) Materials/Supplies sourcing services businessBusiness that acts as a purchase agent for indirect materials and procures materials, etc.
6) Vending machine services businessBusiness that operates beverage vending machines, cares for foliage plants, andmaintains air purification units
7) Support businessBusiness that includes the retail store business, technical training business, temporary
staffing business, and document management business(The businesses above that were originally included in other businesses have been
newly classified as support businesses.)(2) Other businesses
17AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

Real estate lease business
3. Unallocable operating expenses included in eliminations/corporate amount to 5,707 million
yen, and consist mainly of general affairs and other administrative expenses of theCompany.
4. Corporate assets included in eliminations/corporate amount to 51,371 million yen, andconsist mainly of surplus funds (cash deposits), long-term investments (investment
securities), goodwill, and assets belonging to the administrative function of the Company.

18

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

(Changes in business classifications)
Previously, the technical training business, temporary staffing business, and document control
business have been included in other businesses. However, accompanying the merger between the
Company and CERTO Corporation on September 1, 2010, a revision of business classification was
conducted, and these businesses will be displayed separately under support businesses from thecurrent fiscal year. Note that if the business classification from this year were used to classify
segment information from the last year, the results would have been as follows: the support businesswould have net sales of 5,918 million yen (including sales to unaffiliated customers of 5,340 millionyen), operating expenses of 5,232 million yen, and operating income of 685 million yen; otherbusinesses would have net sales of 72 million yen (including sales to unaffiliated customers of 72
million yen), operating expenses of 9 million yen, and operating income of 62 million yen.
(Additional information)
Accompanying the merger with CERTO Corporation on September 1, 2010, the materials-related
business (acting as a purchase agent for indirect materials and procuring materials) and the vending
machine business (total space management focusing on beverage vending machines and also
servicing foliage plants and air purification units) originally conducted by CERTO Corporation wereadded to the Company’s range of businesses.
By incorporating the addition of these new businesses, business classifications in the businesssegment information were revised as above for transactions on and after September 1, 2010.
Note that due to this revision of business classifications, sales and operating income that would havebeen posted in each of the following businesses are now posted in sales, operating income andoperating expenses of the materials-related business.
(millions of yen)
OperatingOperatingSales
expenses
incomeFacilities management
1,130
943
186
business
Security services
42
33
9business
Cleaning services
1,016
908
108
business
Support business
18
16
1
Total
2,208
1,901
306
[Geographical segment information]
Fiscal year ended February 28, 2010 (from March 1, 2009 to February 28, 2010)
Since the proportion of business conducted by the Group in Japan exceeds 90% of the total
sales and total assets of all segments, geographic segment information is not presented.
Fiscal year ended February 28, 2011 (from March 1, 2010 to February 28, 2011)
Since the proportion of business conducted by the Group in Japan exceeds 90% of total sales
and total assets of all segments, geographic segment information is not presented.
[Overseas sales]
Fiscal year ended February 28, 2010 (from March 1, 2009 to February 28, 2010)
Since the proportion of overseas sales is less than 10% of consolidated sales, overseas sales
information is not presented.
Fiscal year ended February 28, 2011 (from March 1, 2010 to February 28, 2011)
Since the proportion of overseas sales is less than 10% of consolidated sales, overseas sales
information is not presented.

19

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

[Related party information]
Fiscal year ended February 28, 2010 (from March 1, 2009 to February 28, 2010)
1. Transactions with related parties
Transactions between reporting company and related parties(a) Parent companies and principal shareholders (limited to corporations) of the reporting company
Type

Name ofcompany,etc.

Address(Parent
Capital Business company’s)(millionslines/
ownership ofof yen) occupation voting rights,
etc. (%)

Relation withrelated parties

Nature of transactions

Subcontracting offacility management,
security, cleaning,(Parent
Transactions
construction work,
Pure
company’s
AEON Co., Mihama-ku,
and other services, other than
199,054 holding ownership)business
Ltd.
Chiba Cityand deposits of
1.5
company Directtransactions
subsidiaries andIndirect 58.6
affiliates
ParentConcurrent
directorships
company
Subcontracting offacility(Parent
Generalmanagement,
company’s
Chuo-ku,merchandis
MYCAL
security, cleaning, BusinessOsaka
20,000ownership)
Corp.
econstruction work, transactions
Direct 58.6
City
store
and other services,
Indirect─and leasing of
offices, etc.

Deposits ofsubsidiaries
and1
affiliates*
Return ofdeposits ofsubsidiaries
and1
affiliates*

Sales

Transaction
amount(millions of
yen)

Item

Balanceat year-end(millionsof yen)Deposits ofsubsidiaries
and affiliates

3,000

Accounts
receivable

1,364

79,80079,30013,810Terms of transaction and policy on determination of terms of transaction, etc.
Pricing and other terms of transaction for relevant parties are the same as those for other parties
who are not related to the Company.
Notes: *1 Interest rates on deposits of subsidiaries and affiliates are decided rationally byconsidering market rates.
*2
Consumption taxes, etc. are not included in the transaction amount, but areincluded in the balance at year-end.
(b) Companies that share the same parent company with the reporting company and subsidiaries ofother affiliates of the reporting company
Type

Company
sharingsame
parentcompany

Company
sharingsame
parentcompany

Name ofcompany,etc.

Capital Business
Address (millions lines orof yen) occupation(Parent
company’s)
ownership ofvoting rights,
etc.
(%)

GeneralAEON Mihama-ku,
Chiba
50,000 merchandise
RETAIL
City
store
Co., Ltd.

None

Shopping
center /Insurance
agent(Ownership)
Direct 0.4
Indirect ─(Parent
company’s
ownership)
Direct 0.2
Indirect ─

AEON Mihama-ku,
16,662
MALL
ChibaCo., Ltd.
City

Company
AEON Hakata-ku,
sharing
KYUSHU Fukuoka
same
City
Co., Ltd.
parentcompany
Company
ShimajiriRyukyu
sharinggun,
Jusco Co.,same
OkinawaLtd.
parentcompany

General (Ownership)
3,144 merchandise Direct 0.5
Indirect ─
store
General
360 merchandise
store

None

Relation withrelated parties

Nature oftransactions

Transaction
amount(millions ofyen)

Subcontracting offacility management,
security, cleaning,
Business
Sales
construction work, andtransactions
other services
Concurrent
directorships

40,748Subcontracting offacility management,
security, cleaning,
Business
Sales
construction work, andtransactions
other services
Concurrent
directorships

7,949

Subcontracting offacility management,
security, cleaning,
construction work, andother services
Subcontracting offacility management,
security, cleaning,
construction work, andother services

Business
Sales
transactions

5,931

Business
Sales
transactions

1,928

Item

Balance at
year-end(millions of
yen)

Notes
receivable

167

Accounts
receivable

4,495

Accounts
receivable

918

Notes
receivable

137

Accounts
receivable

552

Notes
receivable

101

Accounts
receivable654

Terms of transaction and policy on determination of terms of transaction, etc.
Pricing and other terms of transaction for relevant parties are the same as those for other parties
who are not related to the Company.
Note:
Consumption taxes, etc. are not included in the transaction amount, but are includedin the balance at year-end.

20

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

2. Notes on parent companies or important affiliates(1) Parent company information
AEON Co., Ltd. (Listed on the Tokyo Stock Exchange)
MYCAL Corp. (Not listed)(2) Summarized financial information of important affiliates
None

21

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

Fiscal year ended February 28, 2011 (from March 1, 2010 to February 28, 2011)
1. Transactions with related parties
Transactions between reporting company and related parties(a) Parent companies and principal shareholders (limited to corporations) of the reporting company
Type

Parentcompany

Otheraffiliates(Parent
Name ofCapitalcompany’s)
Business lines/
company, Address (millions
ownership of
occupationetcof yen)voting rights,
etc. (%)

AEON
Co.,
Ltd.

Mihamaku,
199,054
Chiba
City

ChuoMYCAL ku,
Osaka
Corp.
City

Relation withrelated parties

Nature of transactions

Deposits of(Parent
company’s subsidiaries andPure holding
ownership) affiliatescompany
Direct 17.4 Concurrent
Indirect 44.5 directorships

Deposits ofsubsidiaries
andTransactions
affiliates*1
other
than
Return ofbusiness
Deposits oftransactions
subsidiaries
andaffiliates*1

Subcontracting offacility
management,
security, cleaning,(Parent
company’s
construction work,
General
20,000 merchandise ownership) sales of materials,
Direct 44.5 operating vending
store
Indir ct─ machines, andother services,and leasing of
offices, etc.

Businesstransactions

Sales

Transactio
n amount(millions of
yen)

Item

Balanceat year-end(millionsof yen)Deposits ofsubsidiaries
and affiliates

18,920Accounts
receivable

3,230

135,840

132,820

16,177

Note: On September 1, 2010, MYCAL Corp. was changed from parent company to other affiliates.
Terms of transaction and policy on determination of terms of transaction, etc.
Pricing and other terms of transaction for relevant parties are the same as those for other parties
who are not related to the Company.
Notes: *1 Interest rates on deposits of subsidiaries and affiliates are decided rationally byconsidering market rates.
*2
Consumption taxes, etc. are not included in the transaction amount, but areincluded in the balance at year-end.
(b) Companies that share the same parent company with the reporting company and subsidiaries ofother affiliates of the reporting company
Type

Name ofCapitalcompany, Address (millions
etc.
of yen)Businesslines/
occupation

Company
MihamaGeneral
AEON
sharingku,
50,000 merchandise
RETAIL
same
Chiba
store
Co., Ltd.
parentCity
company(Parent
company’s)
ownership ofvoting rights,
etc. (%)

None

Nature of transactions

Transaction
amount(millions of
yen)

Item

Balance at
year-end(millionsof yen)Subcontracting of facility
management, security,
cleaning, construction work,
BusinessSales
and other services
transactions
Sales of materials, operating
vending machines,
Concurrent directorships

42,397

Accounts
receivable

6,636

8,096

Accounts
receivable

856

Notes
receivable20

Accounts
receivable

931

Relation withrelated parties(Ownership)
Subcontracting of facility
Direct 0.4
management, security,
ShoppingIndirect ─cleaning, construction work,
Business
center /(Parent
Sales
and other services
transactions
Insurance company’s
Sales of materials, operating
agent
ownership)
vending machines
Direct 0.2
Concurrent directorships
Indirect ─
Subcontracting of facility
management, security,(Ownership)
Generalcleaning, construction work, Business
Sales
3,144 merchandise Direct 0.5transactions
and other services
Indirect ─
store
Sales of materials, operating
vending machines

Company
Mihamasharing
AEON
ku,
MALL
16,662same
Chiba
parentCo., Ltd.
City
company
Company
HakataAEON
sharingku,
KYUSHUsame
FukuokaCo., Ltd.
parentCity
company

5,481

Terms of transaction and policy on determination of terms of transaction, etc.
Pricing and other terms of transaction for relevant parties are the same as those for other parties
who are not related to the Company.
Note: Consumption taxes, etc. are not included in the transaction amount, but are included in
the balance at year-end.
2. Notes on Parent Companies or Important Affiliates(1) Parent company information: AEON Co., Ltd. (Listed on the Tokyo Stock Exchange)(2) Summarized financial information of important affiliates: None
22

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

(Per share information)(yen)Year Ended February 28, 2010
(from March 1, 2009 to February 28, 2010)

Year Ended February 28, 2011
(from March 1, 2010 to February 28, 2011)

Net assets per share
Net income per share

787.84 Net assets per share
137.79 Net income per share

1,005.62
142.56

Net income per share (diluted)

137.58 Net income per share (diluted)

142.28Notes: Basis for calculation
1. Net assets per share
Year Ended
Feb. 28, 2010
As of Feb. 28, 2010

Year Ended
Feb. 28, 2011
As of Feb. 28, 2011

Total net assets (millions of yen)

31,36452,887

Net assets attributable to common stock(millions of yen)

31,25352,738Subscription rights

110

149

Minority interests－－

41,40054,169

1,729

1,726

39,67052,443

Breakdown of difference (millions of yen)Amount of common stock outstanding(thousands of shares)
Amount of common stock in treasury(thousands of shares)
Amount of common stock used to calculate
net assets per share (thousands of shares)

2. Net income per share and net income per share (diluted)
Year Ended
Feb. 28, 2010
(March 1, 2009 Feb. 28, 2010)
Net income (millions of yen)
Net income attributable to common stock(millions of yen)
Average amount of common stock
outstanding during the year (thousands ofshares)Breakdown of increase in amount ofcommon stock used to calculate net
assets per share (diluted) (thousands ofshares)Subscription rights

23

Year Ended
Feb. 28, 2011
(March 1, 2010 Feb. 28, 2011)

5,466

6,495

5,466

6,495

39,66945,56460

94

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

(Significant Subsequent Events)(Impact of the Great East Japan Earthquake)
Due to the Great East Japan Earthquake that occurred on March 11, 2011, the AEON DELIGHT Groupwas temporarily forced to stop the provision of services due to the suspension of the business ofcustomers caused by damage to their buildings and facilities. In addition, some products that werestored in shipping warehouses and Company assets that were installed in customer facilities and shops
in the Tohoku and Kanto regions were damaged or destroyed by the disaster. The main assets thatwere damaged include materials-related business product inventory, vending machines, and cleaningmaterials, tools, and equipment used in the cleaning services business, and investigations areunderway concerning the amount of damages.
The impact that damage from this earthquake will have on the financial position, business performance,and cash flows in the following consolidated fiscal year is difficult to reasonably estimate at the current
point in time. However, it is expected that losses on retirement of noncurrent assets and costs-related
restoration to the original condition will be incurred.

24

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

5. Financial Statements, etc.
(1) Financial Statements
1) Balance Sheet(millions of yen)
Year Ended Feb. 28, 2010
(As of Feb. 28, 2010)

Year Ended Feb. 28, 2011
(As of Feb. 28, 2011)

4,362
471
14,589
―
8
1,040
425
935
3,000
404
562
(119)

10,932
1,792
25,361
1,347
60
1,052
353
1,132
18,920
95
276
(225)

25,68061,100

1,280
(473)

1,419
(548)

806

870

4,136
(3,863)

3,919(3,677)

273

241

2
(1)

10
(9)

1

1

2,131
(1,429)6,028(4,384)

702

1,644

89
22
(4)
17
12
―
1,902

89
22
(9)
12
―
139
3,000

11,02620
522
73

10,34718
921
79

AssetsCurrent assets
Cash and deposits
Notes receivable-trade
Accounts receivable-trade
Merchandise
Raw materials and supplies
Advance payments-trade
Prepaid expenses
Deferred tax assets
Deposit of subsidiaries and affiliates
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Machinery for area control
Accumulated depreciation
Machinery for area control, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Other
Total property, plant and equipment
Intangible assets
Goodwill
Right of trademark
SoftwareTelephone subscription right25

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

(millions of yen)
Year Ended Feb. 28, 2010
(As of Feb. 28, 2010)

Year Ended Feb. 28, 2011
(As of Feb. 28, 2011)

1
11,645

3
11,370

1,590
4,038
1

2,380
3,607
1

72

161

39

38

12

―

63

136

96
634
468
(119)

92
583
617
(188)

6,901

7,431

20,44921,803

46,13082,903

1,473
7,669
5
1,882
85
2,008
322
71
425
604

993
21,876
5
2,629
97
2,466
313
96
1,064
660

76

87

141

46

Total current liabilities

14,76530,337

Noncurrent liabilities
Lease obligations
Deferred tax liabilities
Other

14
185
148

8
407
49

347

465

15,11330,802

Other
Total intangible assets
Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Investments in capital
Investments in capital of subsidiaries andaffiliates
Long-term loans receivable
Long-term loans receivable fromsubsidiaries and affiliates
Claims provable in bankruptcy, claims
provable in rehabilitation and other
Long-term prepaid expenses
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable-trade
Accounts payable-trade
Lease obligations
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Provision for bonuses
Provision for reward of businessperformance
Other

Total noncurrent liabilities
Total liabilities(millions of yen)
26

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

Year Ended Feb. 28, 2010
(As of Feb. 28, 2010)

Year Ended Feb. 28, 2011
(As of Feb. 28, 2011)

3,238

3,238

2,963
641

2,963
16,4183,605

19,381

395

395

7,120
16,8497,120
21,60924,36529,125

(461)

(461)

30,746

51,282

Net assets
Shareholders' equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surpluses
Retained earnings
Legal retained earnings
Other retained earnings
General reserve
Retained earnings brought forward
Total retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Total valuation and translation adjustments

159

668

159

668

Subscription rights to shares

110

149

31,01652,10046,13082,903

Total net assets
Total liabilities and net assets

27

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

2) Statement of Income(millions of yen)
Year Ended
Feb. 28, 2010
(March 1, 2009 –Feb. 28, 2010)

Year Ended
Feb. 28, 2011
(March 1, 2010 –Feb. 28, 2011)

Net sales
Cost of sales

126,528
108,608

161,026
140,024

Gross profit

17,92021,002

Selling, general and administrative expenses

8,695

9,943

Operating income

9,224

11,058

21
0
137
7

55
0
274
50

166

380

3
30
35
11
13
20

2
50
31
16
―
7

116

108

9,274

11,330

―
―
290
78
54
1

3
1
―
―
―
―

423

5

―
―
―
254
190
38

724
181
151
―
―
41

Total extraordinary losses

483

1,099

Income before income taxes

9,214

10,236

Income taxes-current
Income taxes-deferred

3,788
359

4,336
(129)

Total income taxes

4,147

4,206

Net income

5,067

6,029

Non-operating income
Interest income
Interest on securities
Dividends income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on cancellation of company housing
Loss on retirement of noncurrent assets
Compensation for accident expenses
Adjustment of labor insurance expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sales of memberships
Reversal of provision for retirement benefits
Reversal of allowance for doubtful accounts
Compensation income
Other
Total extraordinary income
Extraordinary loss
Management integration expenses
Welfare expenses for prior periods
Loss on liquidation of subsidiaries and affiliates
Loss on valuation of stocks of subsidiaries and affiliates
Impairment loss
Other

28

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

3) Statements of Changes in Shareholders’ Equity(millions of yen)

Shareholders' equity
Capital stock
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Capital surplus

Year Ended
Feb. 28, 2010
(March 1, 2009 –Feb. 28, 2010)

Year Ended
Feb. 28, 2011
(March 1, 2010 –Feb. 28, 2011)

3,238

3,238

―

―

3,238

3,238

2,963

2,963

―

―

2,963

2,963

641

641

―
―

5
15,770―641

15,776
16,418

3,605

3,605

―
―

5
15,770―3,605

15,776
19,381

395

395

―

―

395

395

7,120

7,120

―

―

7,120

7,120

12,734

16,849(952)(1,269)Legal capital surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Other capital surplus
Balance at the end of previous period
Changes of items during the period
Disposal of treasury stock
Increase by merger
Total changes of items during the period
Balance at the end of current period
Total capital surplus
Balance at the end of previous period
Changes of items during the period
Disposal of treasury stock
Increase by merger
Total changes of items during the period
Balance at the end of current period
Retained earnings
Legal retained earnings
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Other retained earnings
General reserve
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Retained earnings brought forward
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
29

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

(millions of yen)
Year Ended
Feb. 28, 2010
(March 1, 2009 –Feb. 28, 2010)

Year Ended
Feb. 28, 2011
(March 1, 2010 –Feb. 28, 2011)

5,067

6,029

4,114

4,759

16,84921,60920,25024,365

(952)
5,067

(1,269)6,029

Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the end of previous period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Increase by merger

4,114
24,365

4,759
29,125

(461)

(461)

(0)
―
―

(1)
1
(0)

Total changes of items during the period
Balance at the end of current period
Total shareholders' equity
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Increase by merger

(0)
(461)

(0)
(461)

26,63130,746

(952)
5,067
(0)
―
―

(1,269)6,029(1)
615,770Total changes of items during the period
Balance at the end of current period
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity

4,114
30,746

20,536
51,282

(24)

159

184

508

Total changes of items during the period
Balance at the end of current period
Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity

184
159

508
668

(24)

159

184

508

184
159

508
668

Net income
Total changes of items during the period
Balance at the end of current period
Total retained earnings
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income

Total changes of items during the period
Balance at the end of current period
30

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

(millions of yen)

Subscription rights to shares
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Increase by merger
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

31

Year Ended
Feb. 28, 2010
(March 1, 2009 –Feb. 28, 2010)

Year Ended
Feb. 28, 2011
(March 1, 2010 –Feb. 28, 2011)

72

110

38

38

38

38

110

149

26,67931,016

(952)
5,067
(0)
―
―
222

(1,269)6,029(1)
615,770547

4,337
31,01621,083
52,100AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

(4) Note on the going concern assumption: None
Notes on Non-consolidated Financial Statements are insignificant, therefore omitted.
6. Other Remarks(1) Change in representative director
The Company plans to conduct the following management changes based on the decision of the
38th Ordinary General Meeting of Shareholders to be held on May 24, 2011 and the following
Board of Directors.
1) Change in representative director<1> President and CEO Kazunori Umemoto(Corporate Officer and Officer of Group E-money business (topresent) of AEON CO., ltd.; Director, Corporate Officer andOfficer of Operation Control in E-money business (to present)of AEON RETAIL CO., LTD.; Adviser to AEON DELIGHT CO.,LTD.)
<2> Director
Yuiken Tsutsumi(President and CEO of AEON DELIGHT CO., LTD.)<Name and career history of the candidate for representative director>
Name:
Kazunori Umemoto
Date of Birth:
October 1, 1951
Main career
history:Mar. 1974
Joined Jusco Co., Ltd. (currently AEON CO., ltd.)
May 2003
GM of Company Store Support of the company in central JapanMay 2005
Corporate Officer of the company
May 2006
Managing Director of the company
May 2007
Executive Director of the company
May 2008
Administrator of Group IT of the company
Aug. 2008
In charge of Group IT of the company
Sept.2008
Part-time Director of AEON RETAIL CO., LTD.
Aug.2009
President of AEON IBIS Co., Ltd.
Mar. 2010
Officer of Group IT and Digital business of the company
Feb. 2011
Director and Corporate Officer of AEON RETAIL CO., LTD. (topresent)
Feb. 2011
Officer of Operation Control in E-money business of thecompany (to present)
Mar. 2011
Officer of Group E-money business of AEON Co., ltd. (topresent)
Mar. 2011
Adviser to AEON DELIGHT CO., LTD.
2) Management reshuffles (scheduled on May 24, 2011)<1> Candidates for new directors (present position)
Director
Hajime Kobayashi(President of A to Z Service Co., Ltd.)
Director
Nobuo Yamazato(GM of West Kinki area branch)
Director
Yasuo Miyake(Corporate Operation Dept.
Director
Yoshinori Kawai(GM of Personnel Division in Personnel and General
Affairs Dept.)<2> Retiring directors
Director
Norio Takahashi(Executive Director, GM of Operation Control andSecurity Dept.)
Director
Teruyuki Nishigaki(GM of Innovation Dept.)
Director
Fumikatsu Kitamura(GM of Sales Division)
Director
Masakazu Yano
(Assistant Manager of branches)
Director
Akira Sugihara(Corporate Business Development Dept.)<3> Candidate for new auditor
AuditorMasato Nishimatsu(Auditor)

32

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011(2) Stock acquisition
The acquisition of Kajitaku Inc. stock
At the meeting of the Board of Directors held on April 14, 2011, the Company decided to acquire
the stock of Kajitaku Inc., which is a housework support service company that provides
housework services, cleaning services, and apartment concierge services. On April 28, 2011, a
resolution was made to acquire 90% of Kajitaku Inc. outstanding common shares and make thecompany a subsidiary.
1) Stock acquisition details<1> Described below are the name and details of the business of the acquired company, thereasons for the stock acquisition, date of consolidation as a subsidiary, and the ratio ofvoting rights acquired.
a. Name of acquired company
Kajitaku Inc.
b. Details of business of acquired company
Housework support service including housework services, cleaning services, andapartment concierge services
c. Major reasons for the stock acquisition
The AEON DELIGHT Group is promoting its comprehensive FMS business,consisting of total management of the non-core businesses for customer companies.
Through this B2B business, we will also promote business in response to the needsof the people who work at these companies and their lifestyles. In order to achievethis, we have acquired the stock of Kajitaku Inc., which is strong in the housework
support service field.
d. Date of consolidation as a subsidiary
April 28, 2011e. Ratio of voting rights acquired
90.0%2) Net sales and total assets of Kajitaku Inc.
<1> Net sales for the fiscal year ended September 30, 2010 were 573 million yen.
<2> Total assets for the fiscal year ended September 30, 2010 were 914 million yen.

33

AEON DELIGHT CO., LTD. (9787)
Summary Report of Consolidated Financial Results
for the Fiscal Year Ended February 28, 2011

The acquisition of A-Z Service Co., Ltd. stock
At the meeting of the Board of Directors held on April 14, 2011, the Company decided to acquire
the stock of A-Z Service Co., Ltd., which is a construction and maintenance company whosestrengths include total management at small-scale facilities such as convenience stores, fast foodrestaurants, and eating and drinking establishments. On May 16, 2011, a resolution was made to
make additional acquisition of A-Z Service Co., Ltd. shares, acquiring 54.8% of outstanding
shares and making the company a subsidiary.
1) Stock acquisition details<1> Described below are the name and details of the business of the acquired company, thereason for the stock acquisition, date of consolidation as a subsidiary, and the ratio ofvoting rights acquired.
a. Name of acquired company
A-Z Service Co., Ltd.
b. Details of business of acquired company
Conducts repair and maintenance of facilities and equipment, design andconstruction of interiors and facilities, and repair and renewal of equipment for smallscale facilities such as convenience stores, fast food restaurants, and eating anddrinking establishments.
c. Major reasons for the stock acquisition
In order to construct a new comprehensive FMS business model at small-scale
facilities that are expected to expand mainly in urban areas such as the Tokyo
metropolitan area, an additional stock acquisition was made of A-Z Service Co., Ltd.,
which has experience and know-how related to the total management of small-scale
facilities.
d. Date of consolidation as a subsidiary
May 16, 2011e. Ratio of voting rights acquired
54.8%2) Net sales and total assets of A-Z Service Co., Ltd.
<1> Net sales for the fiscal year ended February 28, 2011 were 6,614 million yen.
<2> Total assets for the fiscal year ended February 28, 2011 were 1,853 million yen.
Note: The company's fiscal year-end was changed from March 31 to the end of February
from the year ended February 28, 2011, and accordingly net sales were only posted
for a period of 11 months.

34