Financial Results for the Three Months Ended
May 31, 2024

AEON DELIGHT CO., LTD.
July 9, 2024

Contents

1

Financial Report for FY2/25 Q1

2

Initiatives for Q2 Onward to Achieve the Full-year Targets©2024 AEON Delight All Rights Reserved2Consolidated Statements of Income
Net sales increased owing to the growing market share among existing customer sand new customer acquisition,
as well as promotion of unit price review.
On the other hand, operating profit and ordinary profit declined due to the impact of the Security services and the Cleaning services,which saw lower profitability mainly due to a further rise in personnel expenses,
and the increase in gross profit was unable to offset the increase in SG&A expenses.
(100 million yen)
FY2/24 Q1(Ratio to sales)

FY2/25 Q1(Ratio to sales)

Difference

PercentagechangeNet sales

791(100.0%)811(100.0%)20

102.5%

Gross profit

102(12.9%)

104(12.8%)

1101.7%

SG&A expenses

67(8.6%)71(8.8%)3

105.3%

Operating profit

34(4.4%)32(4.0%)

-1

94.8%

Ordinary profit

34(4.4%)33(4.1%)

-1

96.1%

Profit attributable toowners of parent

22(2.9%)25(3.2%)2112.6%©2024 AEON Delight All Rights Reserved

３

Sales by Segment (1)Sales increased in 4 businesses and decreased in 3 businesses. In the Facilities Management businesses, including facilities
management, security, amid soaring personnel costs, we focused on reviewing unit prices from the previous fiscal year, which
contributed to higher sales in each segment.
(100 million yen)

FY2/24 Q1

FY2/25 Q1Percentage change

Facilities
management

170

182

106.5%

Security services

127129101.5%

Cleaning services174

180

103.4%

Construction work

133

130

97.6%

Materials/supplies
sourcing services

113

119

106.0%

Vending machineservices

232295.8%Support services

48

46

96.7%

Total

791

811

102.5%©2024 AEON Delight All Rights Reserved

４Sales by Segment (2)Facilities
management

Security services

Cleaning services

Sales increased due to revisions to unit prices, new and renewal contracts andexpansion of orders for various maintenance services.
Sales increased due to revisions to unit prices and new contracts for facility security, etc.

Sales increased due to revisions to unit prices, new and renewal contracts, and contributions fromthe performance of Ask Maintenance, which became a wholly owned subsidiary in April 2023.

Construction work

Sales decreased due to a decline in renovation work and delays in some construction projects, despite
efforts to focus on restoration work related to the 2024 Noto Peninsula Earthquake and energy-saving
related work.

Materials/supplies
sourcing services

Sales increased thanks to increased orders for materials.

Vending machineservices

Sales decreased due to decrease in number of vending machines following closure offacilities and removal of unprofitable machines.

Support services

Sales decreased due to downsizing of contracted business.

©2024 AEON Delight All Rights Reserved

5Profit by Segment (1)Profits increased in 5 businesses and decreased in 2 businesses.
In the Facility management segment, operating profit increased reflecting the sales growth in facilities management services,which greatly exceeded the rise in personnel costs.
On the other hand, security and cleaning services reported a decline in profits,
as its sales growth could not compensate for rising personnel costs.

(100 million yen)

FY2/24 Q1

FY2/25 Q1Percentage change

Facilities management

13.3

14.6

109.6%

Security services

8.3

7.5

90.8%

Cleaning services

14.5

13.6

93.9%

Construction work

10.8

10.9

100.6%

Materials/supplies
sourcing services

6.3

6.6

104.7%

Vending machineservices

2.5

2.6

104.3%

Support services

1.4

3.0

204.8%

Total

57.4

59.1

102.9%©2024 AEON Delight All Rights Reserved

6Profit by Segment (Qualitative information)

Facilities
management

Profits increased as sales grew while profitability improved due to low-cost operations
through the digitalization of business processes.

Security services

Profits declined due to lower profitability mainly caused by higher personnel costs.

Cleaning services

Profits declined due to lower profitability mainly caused by higher personnel costs.

Construction work

Sales and profits increased as profitability improved through optimization of construction
specifications and processes.

Materials/supplies
sourcing services

Profits increased as a result of efforts to adequately reflect the increase in the cost of various
materials in the selling price, given the upward trend in raw material and logistics costs.

Vending machineservices

Sales and profits increased due to improved profitability resulting from optimization ofprofit structure, including removal of unprofitable machines.

Support services

Profits significantly increased due to expiration of contracts for copier businesstaken over from the former Kajitaku and other factors.

©2024 AEON Delight All Rights Reserved

7

Consolidated Balance Sheet(100 million yen)

AssetsFeb. 2024

May 2024

Difference

1,399

1,382-17

Property, plant andequipment

64640Intangible
assets6060-0Investments,etc.

7683

6

Noncurrent
assets202208

Total assets

1,602

1,590

Current assets

Liabilities andnet assets

Feb. 2024

May 2024

Difference

Current
liabilities

534509-25

Noncurrent
liabilities

2531

5560

540

-19

Shareholder’sequity

999

1,000

15

Total net assets

1,042

1,049

7-11

Total liabilities andnet assets

1,602

1,590

-11

Total
liabilities©2024 AEON Delight All Rights Reserved

8

Business Expansion in Asia
In overseas business, sales and profits increased by 112.1% YoY and operating profit by 104.2% YoY.
China: Sales increased as the business expanded steadily by expanding market share within customers and developing new customers.
On the other hand, profits decreased due to a temporary increase in SG&A expenses for business expansion.
ASEAN: Higher sales and profits in the ASEAN business. Sales increased in countries where we operate.
Profits improved reflecting the profitability improvements in Malaysia and Vietnam.

(Operating profit/100 million yen)

(Net sales/100 million yen)

ChinaMalaysia

Vietnam

100Indonesia

Operating profit

8948475650

3.4

3.3254

200Net sales

OperatingFY2/24 Q1 incomeNet salesOperatingincome
FY2/25 Q1*Fiscal year-end for overseas operations is December. Figures are simple sum of operating companies.

©2024 AEON Delight All Rights Reserved

9

Contents

1 FY2/25 Q1 Financial Report2

Initiatives for Q2 Onward to Achieve the Full-year Targets©2024 AEON Delight All Rights Reserved

10Initiatives for Q2 Onward to Achieve the Full-year Targets
Amid ongoing pressure from rising costs, we will continue to work on measures to improve profitability, while atthe same time further increasing our market share by strengthening our sales activities.

Items

Increase sales

Improve profitability

Major initiatives

Execute large projects already contracted and expand peripheral operations
Expand share within customers through account management
Steadily capture delayed construction projects from Q1
Increase orders for energy-saving-related construction
A strategy for the use of specified skilled foreign workers in resort facilities,
such as bed-making services

 Strengthen price negotiations with account management companies
 Revise contract prices through digital transformation (DX)to reduce customers' facility management costs Construction work: Strengthen estimation assessment and negotiation inconstruction works
 Improve management efficiency at domestic group companies through regionalstrategy©2024 AEON Delight All Rights Reserved11

Efforts to Ensure Fair Transaction Prices with Business Partners
Strengthen efforts to optimize transaction prices with business partners
based on the Aeon Delight Price Negotiation Policy

Aeon Delight
Price Negotiation Policy•AEON Delight does not make unreasonable cost
reduction requests.

•AEON Delight will conduct sufficient discussions basedon a rational calculation method based on the impact ofcost increases.

•AEON Delight does not refuse discussions because thecustomer does not agree with the price review.

•AEON Delight provides innovative proposals that satisfy
customers, while taking into account the need to ensure
reasonable costs throughout the supply chain.

•AEON Delight clarifies and delivers the terms andconditions of the contract in writing, including pricing
decisions.

Strengthen organizational response
Ensure that the Price Negotiation Policy understands
and is put into practice throughout the Company.
Clarify the person in charge of price negotiations for eachtransaction and the response system and strengthen theresponse as an organization.

Strengthen initiatives for Price Negotiation Month
June 1 through August 31 is designated as "Price Negotiation
Month*," and discussions are held with each customer,
taking into account changes in personnel costs, etc.,
in line with the timing of contract renewals.
*A period of price negotiation at least once a year

©2024 AEON Delight All Rights Reserved

12Business Forecasts for FY2/25(100 million yen)

FY2/24 Result(Ratio to sales)

FY2/25 Forecast(Ratio to sales)

Net sales

3,248(100.0%)3,400(100.0%)

104.7%

Operating profit

152(4.7%)

160(4.7%)

105.3%

Ordinary profit

154(4.8%)160(4.7%)

103.9%

Profit attributable toowners of parent

107(3.3%)

104(3.1%)

97.2%

Percentage change©2024 AEON Delight All Rights Reserved13

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 6 and 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 and 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 (July 9, 2024)
These forecasts have been prepared and are subject to change due to various factors going forward.