Financial Results for the Nine Months Ended
November 30, 2021

AEON DELIGHT CO., LTD.

January 12, 2022

Contents1

Financial Report for Q3 of FY2/22

2

Initiatives for Q4 of FY2/22©2022 AEON Delight All Rights Reserved2Consolidated Statement of Income
Sales and profits increased compared to Q3 of FY2/21, and sales increased compared to Q3 of FY2/20.
Impact of COVID-19 on operating income: -0.4 billion yen in the current Q3 period (September 1, 2021 to November 30, 2021)
The decline in orders for disinfection cleaning with alcohol due to a decrease in the number of infected people in Japan; in addition, somedownward trends remained such as delays in some construction projects in the construction work business and the downward trend in salesof beverages in the vending machine business due to changes in consumer behavior.
(100 million yen)

FY2/21 Q3(Ratio to sales)

Net sales

FY2/22 Q3(Ratio to sales)

2,243 （100.0%）

2,407（100.0%）Percentage
DifferencechangeVs.
FY2/20 Q3

163

107.3%

103.5%

22108.2%

102.8%

16110.0%

106.3%

6105.7%

97.9%

Gross profit

275（12.3%）

298（12.4%）

SG&A expenses

163（7.3%）

179（7.4%）

Operating income

112（5.0%）118（4.9%）

Ordinary income

112（5.0%）119（4.9%）

6106.2%98.0%

Net income attributableto owners of parent

63（2.8%）84（3.5%）21134.3%

115.3%©2022 AEON Delight All Rights Reserved

3

Sales by Segment
Sales increased in all 7 businesses YoY; compared to Q3 of FY2/20, sales increased in 5
businesses excluding vending machine services and support services businesses.
(100 million yen)
FY2/21 Q3

FY2/22 Q3PercentagechangeVs.
FY2/20 Q3

Facilities management

438

464

106.0%

105.0%

Security services

329

354

107.5%

106.4%

Cleaning services

460

504

109.5%

108.5%

Construction work

310

336

108.6%

105.2%

Materials/supplies
sourcing services

396

427

107.9%

110.9%

Vending machineservices

190

197

103.8%

83.3%

Support services

117

120

102.6%

85.1%

2,243

2,407

107.3%

103.5%

Total©2022 AEON Delight All Rights Reserved

4Profit by Segment
Profits increased in 4 businesses owing to sales expansion.
Impacted by delays in some construction projects in construction work business andlower sales of beverages in vending machine services business.
Percentage
FY2/21 Q3
FY2/22 Q3changeVs.
FY2/20 Q3

Facilities management

39.1

40.3

103.1%

100.0%

Security services

23.8

25.9

108.8%

117.6%

Cleaning services

53.4

61.7

115.6%

116.6%

Construction work

28.7

28.6

99.4%

100.6%

Materials/supplies
sourcing services

18.5

19.3

104.4%

99.3%

Vending machineservices

5.6

4.1

73.6%

43.7%

Support services

▲1.7

3.3

-74.9%

Total

167.6

183.4

109.4%

103.5%(100 million yen)©2022 AEON Delight All Rights Reserved

5Consolidated Balance Sheet(100 million yen)

Liabilities andnet assets

FY2/22 Q3 Difference

AssetsFY2/21

Current assets

1,100

1,177

77

Current
liabilities

441

447

6Tangible fixedassets

9483▲11Fixed
liabilities

4136▲5Intangible
fixed assets

5554

▲1482

483

1

Investments,etc.

115

98

▲17Shareholder’sequity

866

907

40

Fixed assets

265

235

▲29

Total net assets

88292946

Total assets

1,365

1,413

47

Total liabilities
and net assets

1,365

1,413

47

FY2/22 Q3 Difference

Totalliabilities

FY2/21©2022 AEON Delight All Rights Reserved6

Major Initiatives in FY2/22 Q3 ① Customer-oriented management

Aggressive development and proposal of industry-specific solutions
to increase market share

Take a market-oriented approach based on customer feedback● Account managers collect customer information and promote understandingof customers and their industries.
● The customer support center collects information on facilities.
(Installed equipment, information on equipment failure history anddeterioration, repair plans, etc.)

Analyze the aggregated information and promote thedevelopment of industry-specific solutions©2022 AEON Delight All Rights Reserved

7

Major Initiatives in FY2/22 Q3 ② Promotion of DX
Promoting the development of "area management," a new facility management
model that combines "human technologies" and "pure technologies".

Through remote support by customer
support center (CSC) and labor-saving onsite operations utilizing various systems
and sensors,Achieved labor saving and unmanned
operation at a total of 133 facilities

114 specialists were reassigned to● Tohoku Regional Office CSC

new consignment properties, sales andconstruction centers

From resident-based individual management to "area management" that manages multiple
facilities in an area mainly through patrols
Securing resources to ensure "safety and security" amid the labor shortage©2022 AEON Delight All Rights Reserved8

Major Initiatives in FY2/22 Q3 ③ Group Management (Business Expansion in Asia)
We have steadily expanded our business in China.
In the ASEAN region, we will continue to provide a variety of services to support facilities, which are theinfrastructure for local communities, while the business environment remains severe due to measures against
COVID-19 in each country.
In overseas, net sales were 124.5% YoY and Operating income was 101.2% YoY*Overseas Business: Net Sales / Operating Income (100 million yen)
China(Net sales)

Malaysia

VietnamIndonesia

Operating income(Operating income)

15200
177.7
150

11.5

11.4

142.6

129

100650300

FY2/21 Q3* Figures are simple totals of results of operating companies.

FY2/22 Q3©2022 AEON Delight All Rights Reserved

9Major Initiatives in FY2/22 Q3 ④ Skill Contests
Becoming a group of experts in facility management with partner companies.
We held the Third AEON Delight Skill Contest.

[Photos of contests]

From left: The facilities management contest, The cleaning services contest, The security services contest

These events allowed AEON Delight companies as well as partner companies (cleaning, security)
in Japan and other countries to share their skills and their successful activities.

Skills x Human capabilities = Specialists©2022 AEON Delight All Rights Reserved

10

Contents

1

Financial Report for Q3 of FY2/22

2

Initiatives for Q4 of FY2/22©2022 AEON Delight All Rights Reserved

11Progress against planned figures for FY2/22(100 million yen)

Net sales

FY2/22 Q3 Result(Ratio to sales)

2,407 （100.0%）

FY2/22 Forecast(Ratio to sales)

Progress rate

3,250 （100.0%）

74.1%

Operating income

118（4.9%）

165（5.2%）

71.5%

Ordinary income119（4.9%）

165（5.2%）

72.1%

Net income attributableto owners of parent

84（3.5%）

105（3.2%）

80.0%*Estimated impact of COVID-19 and the former KAJITAKU Business on operating income in FY2/22
・COVID-19: -0.5 billion yen (FY2/21: -1.5 billion yen)・Former KAJITAKU: -0.3 billion yen (FY2/21: -1.0 billion yen)©2022 AEON Delight All Rights Reserved

12Measures to achieve the full-year budget (sales expansion)
IssuesMeasures●Expand market share outside the AEON Group・Expand market share among existing customers through accountsales that have already started to produce positive results in 1H.
・Promote new customer development by strengthening industryspecific sales.

Salesexpansion●Construction business・Increase the number of contracts for renovation work by improving
the certainty of contracts through strengthening sales andoptimizing construction specifications and processes.

●Materials-related business・ Strengthen sales and marketing to become a top supplier of acomprehensive range of materials handled by the AEON Group.

©2022 AEON Delight All Rights Reserved

13Measures to achieve the full-year budget (improvement of profitability)
IssuesMeasures●Building Maintenance Business Division(Facilities management)
・Improvement of productivity of facility staff through area
management and utilization of CSC.
・Review of outsourcing costs by consolidating contractors.

(Security services)

Improvement ofprofitability

・Continue to optimize unit prices by introducing systems forlaborsaving and through price negotiations.

(Cleaning services)・Strengthen cooperation with partner companies to build an
economic zone.

●Staff Division
・Improve productivity by streamlining the head office functions andpromoting new work styles such as remote work and online
meetings.

©2022 AEON Delight All Rights Reserved

14

(Reference) Progress in KPIs (Key Performance Indicators) of the Medium-Term Management Plan

Steadily promote key measures by monitoring KPIs
BasicPolicy
Customeroriented
management

KPI (End-FY2/24)
Ratio of sales inside/outside the AEON Group

60%:40%Operating income margin of 6.0% (5.1% in FY2/21),
sustaining the standard of ROE 12% (full-year) throughincreasing operating income

Promotion ofDX

Number of facilities introducing area management: 360
Reduction in number of on-site staff through areamanagement: 180
Allocation of 20% of staffs in the headquarters to front
office by consolidating head office functions
Net sales of 65.0 billion yen consolidated with groupcompanies in JapanGroupmanagement

Net sales ratio of Asia businesses over 8%
Shift to shared services for domestic group finance andaccounting departments (full-year)

Items in blue indicate improvements.
*Some indicators were updated on a full-year basis.

Progress in FY2/22 Q3

End-FY2/21

65.1%：34.9%

64.3%：35.7%

Operating income margin:
4.9%
ROE: ー※Operating income margin:
5.1%
ROE: 14.1%

133 facilities

ー

114 staffs

ーー※

ーー※

52.8 billion yen

7.4％

6.7%

ー※

ー©2022 AEON Delight All Rights Reserved15

If you have any questions or comments, please contact us below.
■ These materials contain statements about forecasts and estimates relating to the future plans, strategies, andperformance of AEON DELIGHT.
These statements are based not only on past performance, but also on assumptions based on information currently
available to the company. For this reason, please note that the actual performance may differ from our estimates.
■ The information contained in these materials has been prepared by the following methods if not specifically statedotherwise.
◇ All statements are based on consolidated results◇ Figures are rounded down to the nearest 100 million yen.
*Figures on page 5, 9 are rounded down to the nearest 10 million yen.
◇ Percentages have been rounded off to one decimal place
IR Contact : President’s Office, PR・IR GroupTEL 03-6895-3892

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

Please contact us on our website.
https://www.aeondelight.co.jp

Based on information available up to the date of publication (January 12, 2022)
These forecasts have been prepared and are subject to change due to various factors going forward.