Financial Results for the Six Months Ended
August 31, 2014

AEON DELIGHT CO., LTD.
Ippei Nakayama, President and CEO

October 6, 2014©2014 Aeon Delight All Rights Reserved

Contents§１ Financial Results for the First Half of the
Fiscal Year Ending February 2015
§２ Initiatives in the Second Half of the
Fiscal Year Ending February 2015
§3 Reference Materials©2014 Aeon Delight All Rights Reserved2

Contents§１ Financial Results for the First Half of the
Fiscal Year Ending February 2015
§２ Initiatives in the Second Half of the
Fiscal Year Ending February 2015
§３

Reference Materials©2014 Aeon Delight All Rights Reserved

3

Financial Results (Net Sales/Operating Income)
Build a system to achieve the new medium-term management plan and to createa mechanism in the current fiscal year
（100 million yen）

■Net sales■Operating income

Comprehensive FMS

Aim for 5 consecutive years of sales increase and 11 consecutive years of profit increase©2014 Aeon Delight All Rights Reserved

4Topics
・ Trust in business overseas contributed to business in Japan with the expansion of sales in
Asia on a full scale (creation of synergy)
・ Expansion of new large-scale contracts in Japan (strong in undertaking the entire Facility
Management business of large facilities)①Creation of synergies inJapan and overseas due tosales in Asia on a full scale

・Increased customers of Japanese and local companies bystrengthening collaboration in sales among locations (1st half
overseas sales about 1.9 times)
・Performance and trust in each country led to new business inJapan (overseas development provided synergy)②Expansion of new largescale contracts in Japan・Strong in undertaking the entire Facility Management business oflarge facilities
・New contracts including hotels, office buildings, factories andcommercial facilities increased(New contracts outside the AEON Group 2.5 billion yen increase,up106.3％ YoY)©2014 Aeon Delight All Rights Reserved

5

Financial Summary
Achieved record sales and profits as initially planned
Gross profit margin improved 0.2 percentage point YoY
100 million yen
First half of FY2/15 total

First half of FY2/14 total

Pct. to net
sales（％）

YoY
（％）

1,340

100.0

100.4

+5

1,335

100.0

Operating income

77

5.7

101.7

+1

75

5.7

Ordinary income

77

5.8

102.0

+2

75

5.7

Net income

43

3.3

105.6

+2

41

3.1

ActualSales

YoY
difference

Pct. to net
sales（％）

Actual※YoY difference of less than 100 million yen have been rounded off©2014 Aeon Delight All Rights Reserved

6Assessment by Segment (Net Sales)
Construction work decreased due to the completion of LED installation
Sales of all other businesses exceeded the previous fiscal year; particularly sales ofSupport services resulted in 114.4％
100 million yen
First half of FY2/15 actual

Net sales

Pct. to net
sales（％）

First half of FY2/14 actual
YoY（％）

Net sales

Pct. to net
sales（％）

Facilities management

228

17.1

106.5

214

16.1

Cleaning services

219

16.3

104.2

210

15.7

Security services

178

13.3

106.1

168

12.6

Construction work

229

17.2

77.1

298

22.3

Materials/supplies
sourcing services

233

17.4

107.3

217

16.3

Vending machineservices

178

13.3

109.8

162

12.1

Support services

73

5.4

114.4

63

4.8

©2014 Aeon Delight All Rights Reserved

7

Business Overview by Segment
Facilities
management

Cleaning services

Security services

Undertook new stores of large commercial facilities and expanded sales of BEMS
equipment. Promoted the development and introduction of its own Facilities
Management-integrated energy-saving services in Japan and overseas.
Productivity improved due to the establishment and development of a standardized
model to improve business quality and efficiency. Promoted the establishment ofsanitation and cleaning model for hospitals.
In addition to promoting new contract, promoted the introduction of attenderservices including building information for the existing security services infacilities by security guards

Construction work

LED installation within the AEON Group completed. Accepted maintenance andrepair, and revitalization focusing on aging facilities

Materials/supplies
sourcing services

Transactions mainly with existing customers expanded steadily. Worked to
improve profitability such as by reviewing logistics cost

Vending machineservices

Vending machines developed and installed in the previous fiscal year
contributed to sales, promoted the development of digital signage-compatible,
eMoney-compatible and other value-added vending machines

Support services

Expansion of sales of the event business of AEON Compass and Houseworkservices (KAJICloud) of KAJITAKU contributed significantly©2014 Aeon Delight All Rights Reserved

8Expansion of Sales in Asia
・ First half sales overseas (China, Malaysia and Vietnam)grew by about 1.9 times YoY.
Number of properties outside the AEON Group to more than 70%.
・ Acquired a major local company engaged in the installation and maintenance of elevators(December 2013) and entered the elevator maintenance business in Suzhou
・ Performance and trust overseas created synergy which led to new business in Japan
No. of overseas contracted properties (full-year results)（Properties）

Overseas sales (first half results)（Million yen）

*Legend is the same as the graph on the right

70% of the contracted properties
are from outside the AEONGroup (China)

2

2

3

Up about 1.9 times YoY

3©2014 Aeon Delight All Rights Reserved

9New Service Users (Overseas)
ChinaMalaysia
Vietnam

Total of 142 facilities including Chinese offices and Japanese department
stores, etc.
Total of 111 facilities including Japanese department stores, governmentbuildings and large commercial facilities, etc.
Total of 73 facilities including Japanese factories, offices and largecommercial facilities©2014 Aeon Delight All Rights Reserved

10Expansion of New Large-Scale Contracts (Japan)
・ AEON Delight is strong in undertaking the entire Facility Management businessof large facilities
・ Shift to a sales system specialized in customer, area, facility and other categories
New Service Users (Japan)
Fukuoka Anpanman Children’s Museum in Mall

ⒸTakashi Yanase/Froebel-kan, TMS, NTV©2013 Aeon Delight All Rights Reserved

11Consolidated Balance Sheet
100 million yen

Feb.282014

Aug. 312014

Difference

Feb.282014

Aug. 312014

Difference

Current assets

903

1,011

108

Current liabilities

393

468

75

Fixed assets

217

211

△6

Fixed liabilities

15

13

△1

Tangible fixed
assets42

44

1
Total liabilities

408

481

73

Intangible
fixed assets

116

112

△4

Investments,
etc.

58

55

△2

Total net assets

713

741

28

Total assets

1,121

1,223

102

Total liabilities andnet assets

1,121

1,223

102

©2014 Aeon Delight All Rights Reserved

12Consolidated Cash Flow Statement
15,000Major factors for increase/decrease（million yen）

【 Operating CF 】 7.8 billion yen

10,000

Income before income taxes

5,000
0

Operating CF

Decrease (increase) in accounts receivable△6.2billion yen

Investing CF

Increase (decrease) in accounts payable

6.6billion yen

Financing CF【 Investing CF 】 △3.9 billion yen‐5,000‐10,000

7.7billion yen

2013 2Q

Payments for affiliate consumption
entrusted funds

2014 2Q（100 million yen）
First half of
FY2/14 total

First half of
FY2/15 total

Difference

Cash flows from operating activities

130

78

△52

Cash flows from investing activities

△84

△39

44

Cash flows from financing activities

△12

△12

△0.2

132

145

13

Cash and cash equivalents at end of theyear

Proceeds from repayments for affiliate
consumption entrusted funds△109.0billion yen
106.0billion yen【 Financing CF 】 △1.2 billion yen
Dividend payment△1.2billion yen©2014 Aeon Delight All Rights Reserved

13

Contents§１ Financial Results for the First Half of the
Fiscal Year Ending February 2015
§２ Initiatives in the Second Half of the
Fiscal Year Ending February 2015
§3 Reference Materials©2014 Aeon Delight All Rights Reserved

14What the AEON Delight Group is Aiming at
Management Philosophy
AEON
Delight

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

SafetyComfort

Human environment

2016 Group Vision:
Becoming a facilities management company that can provide the best, most pleasant andhighest cost-performance service to the facilities of our fast-growing corporate customers in
Asia.

Core business
FMS ConsultingBM

BPO
BTM · MICE

Domestic Housework Agency
Services

Internal Delivery Services

Catering

yen Copy Machine DPE

Vending Machines

Materials/Supplies
Sourcing

IT

Technical Training · Staff
Education/Training

Human Resources
Outplacement

General Administration

Facilities
Management

Cleaning

Security

Construction Management

ESCO Energy-saving Proposals

Elimination of Bacteria · Sterilization ·Disinfection · Deodorization

Solar MaintenanceElectric Power Generation
Business

LED · Organic EL

Smart Community

Concierge Services

5

Solving FM problems for clients recording business growth in Asia
Establishing beautiful, pleasant and clean environments intheir facilities(Sanitation and Cleaning Business)

Implementing energy-saving measures within their facilities(Facilities Management-integrated ESCO Business)

Towards becoming a leading company that can realize total cost reduction solutions for its customers©2014 Aeon Delight All Rights Reserved

15

Priority Measures for the Second Half
Aim to achieve the full year plan by fully implementing priority measures
Second half priority measures

Overview

Initiatives toward growth①Acquisition of new large facilities②Growth of affiliates in Japan andoverseas③Deal with new AEON stores andexpand shares within the group④Initiatives for other businesses

Promote sales activities to acquire new large facilities outside the
AEON Group.
・Further development of Comprehensive FMS by the companies
and ASEAN
・Growth of domestic subsidiaries including AEON Compass and
KAJITAKU
4 large shopping centers will open in the second half. Provide
stores with Comprehensive FMS.
・Facilities management・・・Unify management of food equipment
・Materials・・・Expansion of business with existing customers
・Vending machine・・・Promote new development (installation), etc.

Initiatives toward improvement in profitability⑤Standardization of cleaning
services and cost reduction

・Complete the introduction of cleaning standardized model at all
directly-managed centers, impart knowhow to partner companies
・Cost reduction through optimization of outsourcing expenses
for partner companies©2014 Aeon Delight All Rights Reserved 16

Efforts in Asian Countries① China business・Turned a single-year profit for the first time in the previous fiscal year. Expanded
contracted properties at a satisfactory pace・Promoted a differentiation strategy through energy-saving services and in-houseelevator maintenance② ASEAN business
・Embarked on the introduction of the company’s own
Facilities Management-Integrated Energy-Saving Services in
Malaysia for several commercial facilities

・Acquired several additional business licenses in Vietnam.
Enhanced competitiveness by expanding service menu
ＥＳＣＯ business is・・・
ESCO business provides comprehensive energy-saving services and contributes tocustomers’ profits and global environment. The business also offsets improvement costs
based on energy-saving improvement proposal with reduced utilities. Providers of ESCO
provide all services including energy-saving diagnostics, design, construction, operation,
maintenance and financing.

©2014 Aeon Delight All Rights Reserved

17

Business Forecast for FY February 2015
100 million yen

Full-year forecast for FY2/15
Pct. to net
sales (%)

AmountNet saleYoY (%)

2,700 100.0 105.0

FY2/14 actual
Amount（Actual）

Pct. to net
sales (%)

2,572

100.0

Operatingincome160

5.9 105.9

151

5.9

Ordinary
income160

5.9 106.0

150

5.9

Net income

86

3.1 105.4

81

3.2©2014 Aeon Delight All Rights Reserved18

Shareholder Return
Aim for 10 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

￥15.0

￥17.5

￥22.0

￥27.0

￥39.0

￥40.0

￥46.0

￥48.0

￥50.0

￥9.0

Dividend forecast

Commemorative dividend

Dividend
Year-end

25

5

8

9

FY2/05

FY2/0615

17.5

FY2/07

FY2/0822
FY2/0927

FY2.10

34

40

46

48

Interim25

FY2/11

FY2/12

FY2/13

FY2/14

FY2/15*On December 1, 2007, the company conducted a two-for-one stock split. The dividend amount assumes that the stock split was
conducted at the beginning of FY2/05.
*A commemorative dividend of 5.00 yen is included in the year-end dividend for FY2/11.
©2014 Aeon Delight All Rights Reserved19

If you have any questions or comments, please contact us below.
■These materials contain statements about forecasts and estimates relating to the future plan, strategies, and performance of
AEON DELIGHT.
◇These statements are based not only on past performance, but also on assumptions based on information currently available tothe 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 stated otherwise.
◇All statements are based on consolidated results◇All figures of less than 100 million yen have been rounded down
◇Percentages have been rounded off to one decimal place

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

IR Contact: 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 (October 6, 2014). The business forecasts may berevised due to various factors that may arise in the future.

©2014 Aeon Delight All Rights Reserved

20

Contents§１ Financial Results for the First Half of the
Fiscal Year Ending February 2015
§２ Initiatives in the Second Half of the
Fiscal Year Ending February 2015
§3

Reference Materials

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

300

4,000
Over3,300

3,000

2,572

2,700

200

2,000

100

1,000
0
2014.2

2015.2E

2016.2E

2017.2E（100 million yen）

Operating income151

Net income
Over210

160

81.6

86

2014.2

2015.2E

Over11002016.2E

2017.2E

FY2/17 major numerical goals
Consolidated net sales

Over¥330billion

Consolidated operating income(operating margin)

Over¥21billion

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

Over6.4%©2014 Aeon Delight All Rights Reserved

22

Framework of Medium-Term Management Plan
1.Establishment of comprehensive FMS (establishment of competitive advantage)(1) Strengthening of Sanitation and Cleaning Services(2) Strengthening of Energy Solution business
Competitive
ness

Base

Asia

2. Development of Asian market(1) Establishment of a federal management structure in China(2) Establishment of comprehensive FMS menu in ASEAN countries
3. Building of organization base(1)Organizational restructuring aimed at flexible sales activities and businessdevelopment(2) Human resources development aimed at pursuing growth and service quality(3) IT investment to accelerate business growth and achieve a small head office©2014 Aeon Delight All Rights Reserved