Supplementary Information on the Financial
Results for the Three Months Ended May 31, 2014

July 2, 2014©2014 Aeon Delight All Rights Reserved

FY2/15 1Q Financial Highlights■ Despite rush demand before the consumption tax increase and the downturn, sales were
almost as planned as a result of attracting demand due to the spread of Comprehensive Facility
Management (Comprehensive FM) concept.

■ Consolidated net sales decreased by 0.4% to 66.4 billion yen YoY resulting from decrease inConstruction work sales due to the completion of AEON Group’s LED installation. Businesses
other than the Construction work exceeded compared with the same period a year earlier and inparticular, Vending machine services and Support services achieved double-digit growth.

■ Due to continuous improvement in productivity and appropriate expense control in all
businesses, consolidated operating income increased 4.4% to 3.54 billion yen from the same
period a year earlier and achieved an all-time high on a quarterly basis.

■ Reform and improvement of the organizational system to achieve medium-term management
plan will be completed by 2Q to operate in full scale in the 2nd half. In particular, solution sales will
be strengthened to attract demand including construction focusing on aging facilities and Energysaving system division will be newly established to increase sales outside the Group.
©2014 Aeon Delight All Rights Reserved1FY2/15 1Q Financial Summary
Operating margin improved 0.2 pct. point (previous 1Q 5.1% ⇒ current 1Q 5.3%)
due to improvement in productivity and appropriate expense control
100 million yen

FY2/15 1Q actual
Previous 1Q
actualPct. to netsales (%)

Current 1Q
actualPct. to net
sales (%)

YoY (%)

YoY
difference

Net sales

667

100.0664

100.099.6△2Gross profit

33

5.135

5.3

104.4

＋1

OperatingincomeOrdinary
income

34

5.1

35

5.4

104.6

＋1182.820

3.0108.4＋1©2014 Aeon Delight All Rights Reserved

2

Net Sales by Segment
Vending machine services and Support services achieved double-digit growth YoY
Sales of Construction work decreased due to consumption tax increase and completion of LED
installation
100 million yen

FY2/15 1Q actual
Net sales

Composition
ratio (%)

FY2/14 1Q actual
YoY (%)

Composition ratio(%)

Net sales

Facilities management

112

16.9

105.7

106

15.9

Cleaning services

109

16.5

103.8

105

15.8

Security services

89

13.4

105.9

84

12.6

Construction work

118

17.8

74.6

158

23.8

Materials/supplies sourcing
services

117

17.6

109.3

107

16.1

Vending machine services

83

12.5

111.1

74

11.2

Support services

34

5.2

116.1

29

4.4

©2014 Aeon Delight All Rights Reserved

3

Business Overview by 1Q Segment
Facilities
management

Undertook new stores of large commercial facilities and expanded sales of BEMS
equipment. Moreover, promoted proposal and additional installation of energy-saving
product materials through BEMS data analysis

Cleaning services

Newly established Cleaning service improvement department. Improved the services
directly operated by the company and established a standardized model for productive
cleaning services. Also embarked on sanitation and cleaning model for hospitals, etc.

Security services

In addition to promoting new contract, promoted the introduction of attender services
including building information for the existing security services in facilities by female
security guards

Construction work

LED installation within the AEON Group completed. Renovation focusing on aging
facilities and heat source renewal including central air-conditioning system, etc. went
well

Materials/supplies
sourcing services

Transactions mainly with existing customers expanded steadily. Reviewed logistics
cost and improved profitability through electronic business negotiation

Vending machineservices

Vending machines developed and installed in the previous fiscal year contributed tosales, development of eMoney-compatible value-added vending machines

Support services

Expanded sales of event direct marketing business of AEON Compass and Houseworkservices (KAJICloud) of KAJITAKU©2014 Aeon Delight All Rights Reserved4

Consolidated Cash Flow Statement
10,000Major factors for increase/decrease Billion yen

8,000【Operating cash flows】 2.9 billion yen

6,000
4,000
2,000

Operating CF

Income before income taxes

3.5 billion yen

Investing CF

Decrease (increase) in accounts receivable△4.0 billion yen

Financing CF

Increase (decrease) in accounts payable

5.2 billion yen

0-2,000【Investing cash flows】 △1.1 billion yen
2013 1Q

2014 1Q

Payments for affiliate consumption
entrusted funds

100 million yen

2014/21Q

2015/21QChange

Cash flows from operating activities

6529

△35

Cash flows from investing activities△161127

Cash flows from financing activities△12△12△0.6

Cash and cash equivalents at the end of year

134

148

14

Proceeds from repayments for affiliate
consumption entrusted funds△49.2 billion yen
50.9 billion yen【Financing cash flows】 △1.2 billion yen
Dividend payment△1.2 billion yen©2014 Aeon Delight All Rights Reserved5Consolidated Balance Sheet
100 million yen

February 28,
2014

May 31,2014

February 28,
2014

Current assets

903

950

47

Currentliabilities

393

432

39

Fixed assets

217

214

△2Fixed liabilities

1514

△0.7

Tangible
fixed assets

4244

1
Total liabilities

408

446

38

Intangible
fixed assets

116

114

△2Investments,etc.

5855△2Total net assets

713

718

5Total assets

1,121

1,165

44

Total liabilities
and net assets

1,121

1,165

44

Difference

May 31,
2014

Difference©2014 Aeon Delight All Rights Reserved

6Quarterly Net Sales for the Past Three Years
Quarterly net sales（100 million yen）

800

664

600
667

400

585

681

668

656

2013/2624612

2014/2564

2015/2

200
0
1Q

2Q

3Q

4Q

Total quarterly net sales（100 million yen）

2,700
270,000

3,000

2,000

134,000
1,340
664

1,000
585

667

1,335
1,267

1Q

2Q

1,948
1,923

2,572
2,488

2013/2

2014/2
2015/20
3Q

4Q©2014 Aeon Delight All Rights Reserved

7Quarterly Operating Income for the Past Three Years
Quarterly operating income（100 Million yen）

50
4030
20
10035
33

40

41

1Q

41

33

2Q

2014/23432302013/2
2015/2

3Q

4Q

Total quarterly operating income（100 Million yen）

160

200
150
10035500

2013/27630

33

1Q151
10975139

10471

2Q

3Q

2014/2
2015/24Q©2014 Aeon Delight All Rights Reserved

8Initiatives from FY2/15 2Q
1. Strengthen sales activities in Japan and Asia:■ Extensive use of solution-based sales
・ Thorough management of sales activities through CRM (Customer
Relationship Management), obtain new customers by concentrating
focus on key customers, expand transactions with existing customers
・ Promote the building of sales system on a customer-by-customer andfacility-by-facility basis

Carry out thorough data management to make sales activities
more efficient and to improve productivity using IT tool

２. Establishment of “sanitation and cleaning” and “energy solution”■ Sanitation and cleaning
・ Completion (up to 2Q) and development of standardized model for cleaning
・ Establishment of sanitation and cleaning model for hospitals and nursing homes■ Energy solution
・ Establishment and development of “Facilities Management Integrated ESCO business”

・ Realize the establishment of facility cost reduction model and minimization of facilities lifecycle cost©2014 Aeon Delight All Rights Reserved9Business Forecast for the FY 2/15
100 million yen

Full-year forecast for FY2/15

Pct. to net
sales (%)

AmountNet sales

FY2/14 actual

YoY (%)

2,700 100.0 105.0

Amount(Actual)Pct. to net
sales (%)

2,572

100.0

Operatingincome

160

5.9

105.9

151

5.9

Ordinary
income

160

5.9

106.0

150

5.9

Net income

86

3.1

105.4

81

3.2

©2014 Aeon Delight All Rights Reserved

10What the AEON Delight Group is Aiming atManagement
Philosophy

AEON Delightwill continue to create “environmental value”
of customers and regional communities

2016 Group Vision
Becoming a facilities management company that can provide the best, most pleasant and highestcost-performance service to the facilities of our fast-growing corporate customers in Asia.
（100 million yen）

（100 million yen）
3,500

More than
3,300

Net sales
Operating income

220

More than 210
200

3,000
2,700
2,572

Operating margin
180

More than 6%

2,500
160

160

151
2,000

140

1,500

120

1,000

100
FY2/14

FY2/15 est.

FY2/16 est.

FY2/17 est.

©2014 Aeon Delight All Rights Reserved

11Progress of Medium-Term Management Plan (1)■ Build a company structure to achieve medium-term management plan・Establishment of sales strategy meeting and development strategy meeting to establish
competitiveness・Management of progress of medium-term management plan, building of rolling system■ Three drivers of growth in Japan: Initiatives for 1Q
Provide education and training, and shift to new operation using video manual, etc.

Sanitation and cleaning

to improve productivity by promoting efficiency of cleaning services⇒ Introduce standardized model to all directly-operated centres (up to 2Q)
Conduct inspection of sanitation and cleaning system for hospitals, etc.

Energy solution

Was recognized for additional proposal of energy-saving based on data analysisfor facilitieswith the company’s BEMS, and many facilities switched to BEMS

Sales outside the Group

Review of sales system to expand sales for customers outside the AEON Group⇒ Shifted to solution sales system specialized in energy-saving product materials,and customers, areas and facilities©2014 Aeon Delight All Rights Reserved

12Progress of Medium-Term Management Plan (2)■ Building of a system to establish competitiveness●Drastic review of sales outside the Group[Change to solution sales]●Securing of quality of operations andfurther improvement[Development and improvement of services and products]Sales strategy meeting

Customerstrategy
Area strategy
Facilities
strategy

Development strategy meeting

Board of Directors
Sales Strategy Meeting

Development Strategy MeetingTechnicalassessment

Branch Management Meeting©2014 Aeon Delight All Rights Reserved13

Provide Comprehensive FMS to Hospitals and Nursing Homes
Offer hospitals and nursing homes Japan’s
No.1 Comprehensive FMS

・Needs of large hospital groups in Japan with nationwide operations➢ Hygiene and the environmental services, safety and confidence,
consistent service quality, cost cutting, and other actions

・Develop new services by using alliances with the healthcare
operations of European manufacturers and large trading
companies in Japan➢ Offer Comprehensive FMS that includes “sanitation and cleaning” aswell as energy management, the supply of materials, installation ofvending machines and other services

June 16, 2014 Japan Building News©2014 Aeon Delight All Rights Reserved14

Development of Asian Market■ Expansion of Comprehensive FMS business in Asia

≫ Total of 140 in China (87 in the same period a year earlier)≫ Total of 47 in Malaysia (22 in the same period a year earlier)≫ Total of 58 in Vietnam (0 in the same period a year earlier)*Launched business in January 2013

Expand the business more and more!!
Shandong
Hubei
Entered already
Plan to enter

Zhejiang
FujianHong Kong©2014 Aeon Delight All Rights Reserved15

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

Dividend

FY2/05

FY2/06

FY2/07

FY2/08

FY2/09FY2/10FY2/11

FY2/12

FY2/13

FY2/14

FY2/15

¥8.0

¥9.0

¥15.0

¥17.5

¥22.0

¥27.0

¥39.0

¥40.0

¥46.0

¥48.0

¥50.0

Year-endInterim*On December 1, 2007, the company conducted a two-for-one stock split. The dividend amount assumes that the stock split wasconducted at the beginning of FY2/05.
*A commemorative dividend of 5.00 yen is included in the year-end dividend for FY2/11.
©2014 Aeon Delight All Rights Reserved16

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

IR Contact

AEON DELIGHT CO., LTD.
(Stock code: 9787)

Susumu Takahashi
Corporate Communication Dept.
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 (July 2, 2014). The business
forecasts may be revised due to various factors that may arise in the future.

©2014 Aeon Delight All Rights Reserved17