Financial Results
for the First Half of the Year Ending February 28, 2010 (FY02/2010)
October 7, 2009
Yuiken Tsutsumi, President & CEO

AEON DELIGHT CO., LTD.

Contents§1 Financial Results for H1 FY02/2010§2 Basic Policies and Strategies for FY02/2010§3 FY02/2010 Earnings Forecast§4 Reference§1 Financial Results for H1 FY02/2010

Highlights in 1H FY02/2010
Roughly in Line with Original Plans
Despite Difficult Economic Conditions
Ordinary income and net income achieved forecasts
Net sales and operating income slightly below forecasts

Millions of yen

First six months ended August 31, 2009
Forecast at
beginning of period

Results% to net
sales

% to
YoY
forecast change (%)

74,00072,856

100.0

98.5

99.4

Operating income

4,900

4,882

6.7

99.6

96.2

Ordinary income

4,800

4,856

6.7

101.2

97.5

Net income

2,480

2,591

3.6

104.5

95.9

Net sales*YoY numbers are shown here for reference.

Segment Sales

Cleaning Service under Core Business Project
Achieved Double-Digit GrowthMillions of yen
H1 FY02/2010

YoY
Difference
H1 FY02/2009change (%)

Facility
management (FM)21,227

20,912

101.5

315

Security

17,32818,25594.9-926

Cleaning

23,071

20,684

111.5

2,387

Construction

8,585

10,49681.8-1,910

Others

2,640

2,916

90.5

-277

Total

72,856H1 FY02/2009
Others 4.0%

Construction
14.3%

Cleaning
28.2%

FM
28.5%

Security
24.9%

H1 FY02/2010

73,265

９９.４

Others 3.6%

Construction
11.8%

-410

“Others” represents the aggregate of other building-maintenance-related businesses
and other operating revenue.

Cleaning
31.7%

FM
29.1%

Security
23.8%

Consolidated Statement of Income for First Six Months (Summary)Millions of yen
FY02/2010
AmountQ1

Q2% to netsales

FY02/2009

YoY
Differencechange (%)

Amount% to netsales

Net sales

36,758

100.0

99.5

-182

36,940

100.0

COGS

31,456

85.6

99.5

-162

31,61885.6

Gross profit on sales

5,302

14.4

99.6

-19

5,321

14.4.

SG&A

2,863

7.8

104.7

128

2,735

7.4

Operating income

2,439

6.6

94.3

-147

2,586

7.0

Ordinary income

2,447

6.7

96.2

-97

2,544

6.9

Net income

1,344

3.7

93.2

-98

1,422

3.9

Net sales

36,098

100.0

99.4

-227

36,325

100.0

COGS

30,732

85.1

98.9

-355

31,087

85.6

Gross profit on sales

5,366

14.9

102.4

128

5,238

14.4

SG&A

2,923

8.1

106.3

172

2,751

7.6

Operating income

2,443

6.8

98.2

-44

2,487

6.8

Ordinary income

2,410

6.7

99.0

-25

2,435

6.7

Net income

1,247

3.5

99.0

- 13

1,260

3.5

Consolidated Balance Sheets, Consolidated Statement of Cash Flows (Summary)
Consolidated Balance Sheets

Millions of yen

As of Aug. 31, As of Feb. 28,
Difference‘09‘09

As of Aug. 31, As of Feb. 28,
Difference‘09‘09

Current assets

28,03430,150-2,115Current liabilities

16,841

20,131-3,290

Fixed assets

19,10018,885

215

Long-term liabilities

1,001

824

176

Tangibles

2,538

2,602

-63

Total liabilities

17,842

20,956-3,113

Intangibles

12,265

12,623-358

Investments, etc.

4,296

3,658

637

Total net assets

29,29328,079

1,213

Total assets

47,13549,035-1,900Total liabilities andnet assets

47,13549.035-1,900Consolidated Statement of Cash Flows

Millions of yen

H1 FY02/2010

H1 FY02/2009

Cash flows from operating activities

2,275

3,906

Cash flows from investing activities

81-1,664

Cash flows from financing activities-3,708-2,646

Net increase (decrease) in cash andcash equivalents-1,348-402

Cash and cash equivalents at
beginning of period

6,970

7,657

Cash and cash equivalents at end of
period

5,621

7,255

Operating cash flows
Net income before income tax¥4.78 bn.
Decrease in accounts payable-¥0.86 bn.
Payment of income tax, etc.
Approx. -¥2.33 bn.

Investing cash flows
Decrease in time deposits¥0.71 bn.
Return of deposits for consumption
from affiliates¥0.90 bn.

Financing cash flows
Decrease in short-/long-term borrowings-¥1.71 bn.
Decrease in funds for future liquidation ofreceivables-¥1.50 bn.

§2 Basic Policies and Strategies for FY02/2010

Basic Policies for FY02/2010
Driving Growth and Quality of Services to Further Increase Corporate Value

Growth management▶ Make greater efforts to expand sales operations▶ Establish Environmental Business Division  4th core business▶ Overseas expansion: Prepare for expansion from Beijing to South China

Quality management▶ Complete the horizontal roll-out of “Cleaning as a Core Business Project”▶ Continue improvement of “productivity per man-hour” ratio▶ Establish a Facility Business Team and Security Business Teamto strengthen as our core businesses along with the Cleaning BusinessStrategies for FY02/2010 (Growth Management 1)
Our Efforts to Expand Sales Operations
Reorganize Sales Division
Boost sales activities to companies with nationwide presence

1. Support system by nationwide network
2. Service menu with great variety(eco-friendly plan, etc.)
3. Scale merits for lower costs
4. High quality of services standardized
Follow-up on
existing customers

Coordination among
7 regional branches

Realigned  Sales Div.
linked to regional sales
dept.

Share information
Develop / expand
sales channels
Strengthen
cooperation / support
systems

Turn one order forservice into
opportunities topropose various
other services
Turn one customer
into opportunities
to provide services
in other regions

Approach to companies
with nationwide presence
Provide services whichmeet customer demands
1. Extensive nationwide
network
2. Technical skills
backed by experience
3. Diverse services withconsideration given
to bldg. environment
from multiple
perspectives

Strategies for FY02/2010 (Growth Management 2)
New Workplaces
Maruhan Corporation
32 stores in Hokkaido, 9 in Aomori

Kirin Holdings
COCOE Amagasaki Shopping MallJR
JR EastEast Company
Company
Perch
Perch Tsuchiura
Tsuchiura

Round One Corporation
35 stores in East Japan
Aeon
Aeon Mall
Mall
Hiroshima
Hiroshima Gion
Gion

イメージ図

Grand opened on Oct. 20, 2009

Strategies for FY02/2010 (Growth Management 3)
Further Leap in Overseas Business
Our Aim at Scale Expansion
 Enhance capability to serve many customer stores in China
 Leverage success of AEON Beijing International SC to expand
Leveragebusiness to Huannan and Tianjin
 Drive forward Asia strategies (Vietnam and other SEA countries)

Beijing Tianjin

AEON BeijingInternational Shopping
CenterHuannan
AEON Shunde Shopping Center

Strategies for FY02/2010 (Growth Management 4)
Establishment of an Original Environmental Load Reduction Model
ＰＬＡＮ➡
ＤＯ➡

ＣＨＥＣＫ➡
ＡＣＴＩＯＮ➡

- Plan and verify energy saving measures.
- Change and adjust settings at existing
facilities.
- Reduce energy consumption based onhourly data.
-Diagnose operating status of newly
installed eco-friendly equipments.
- Raise employees’ awareness throughdata management.

Energy saving at large commercial complexes

Reduced by avg. 22% over 3 months(Gj)
1 7,000
1 5,000

22%cut

1 3,000
24%
cut

20%
cut

1 1,000

Before
After

9,000
7,000
5,000

May

June

Ju ly

- Use more efficient lighting- Replace heat sources, improve BEMS
operation- Canopy lighting/LED lighting

Reduce CO2 emissions
as well as utility costs

Within 3 months

Total ¥11 mil. reducedStrategies for FY02/2010 (Growth Management 5)
Acceleration of M&A Strategies
Generating Synergies from M&As
Earnings Improved by Consolidating M&A Partners as Subsidiaries

Offers a full range of cleaning
services to customers of any size
facilities throughout the entire
Kinki region.
Its unique know-how on periodic
cleaning makes them one of themost skilled and productive
players in the industry.

Covers Kanto and northward.
Offers quality services madepossible by ingenuity andconstant R&D.

All
All sharesshares acquired
acquired●● KankyouseibiKankyouseibi (KSK)(KSK) June
June 2009
2009
●
● Do
Do Service
Service

Sept.
Sept. 20092009

Strategies for FY02/2010 (Quality Management 1)
Results of “Cleaning as a Core Business Project” up to This Q2●-out of● Implemented
Implemented thethe horizontal
horizontal roll
roll-outof thethe efficiency
efficiency improvement
improvement
project
project acrossacross ourour 6161 offices
offices nationwide
nationwide
Thorough drive to increase efficiency to effect a significant reduction in
working time
● Switch to new cleaning methods to meet diverse customer demands● Improve individuals’ cleaning skills and their awareness of working methods● Develop cleaning professionals who combine skills and management capability● Share “cleaning principles,” “quality standards,” and “techniques to improve
productivity” with contract services and subsidiaries

Contribute to higher earnings by improving productivity and quality

Strategies for FY02/2010 (Quality Management 2)
Benefits from Introduction of Man-Hour Productivity Indicators
1. Introduce “Man-hour
productivity*” indicators.
2. Share best practices from eachsegment and region.
3. Improve operation proceduresand productivity.
4. Increase efficiency of office work.

Drastically reduceaverage overtime hours

Redistribute eachManage
individual’s
dutieswork schedule
Eliminate 3M“muri (overburdened),muda (wasteful), mura (uneven),”from existing work

Shorten overtime hours to clearly distinguishwork and private time

Make progress toward improved ways of working andan ideal work-life balance*Hourly gross margin per capita

Strategies for FY02/2010 (Quality Management 3)
Efforts for Innovation and Industrialization of Maintenance
We promote technological innovation throughindustry-government-academia collaboration and establish “service engineering”.

AEON Delight Academy Nagahama open in Feb. 2010
 Training/education programs for up to 15,000 staffs per annum
 Train environmental solution specialists
 Study on how to reduce environmental load (energy efficiency, waterpollution, etc.)
 Establish a highly productive “new” cleaning model by joint research Open to the community

We will develop “environment specialists” who underpin
growth in ECO business.

§3 FY02/2010 Earnings Forecast

FY02/2010 Earnings Forecast

Aim at Growth in Income and Profit for
4 Consecutive Years
Millions of yen

H1 FY02/2010
Results

FY02/2010 Forecast
Amount% to net
YoY
sales
change (%)

Amount% to net
sales

150,000

100.0

103.0

72,856100.0

Operating income

10,100

6.7

101.5

4,882

6.7

Ordinary income

9,900

6.6

100.9

4,856

6.7

Net income

5,200

3.5

106.6

2,591

3.6

Net salesReturn to Shareholders
Aim at Dividend Growth for 4 Consecutive Years from Foundation
More Than 20% Growth for 2 Consecutive Years
FY2/07

Dividends

FY2/08

¥15.0

¥17.5

FY2/09¥22.0

FY2/10Interim

FY2/10 yearend (forecast)

¥12.0

¥15.0

FY02/2010 full-year forecast: Payout ratio of 20.6%(Previous) ¥22 →Yen¥２７ (forecast)

30

22
21

25

Results

20
19

20

Payout ratio

18
17

15

16
10

Interim
¥12.0

5
0

15
14
13
12

FY2/07

FY2/08

FY2/09FY2/10 (forecast)* As of December 1, 2007, AEON Delight executed a two-for-one stock split.
The above dividends are calculated on the assumption that such a stock split was executed at the beginning of FY02/2006.

Formulation of (Medium-term) Management Plan Now Underway

Dramatic changes in business conditions (politics, economy, society)

Redesign corporate structure in response to changes“Growth”
 Take advantage of the changing
economic climate to create business
opportunities• Offer unique plans (new cleaningmodel, energy cost reduction, etc.)• Subcontract “non-core businesses”
from companies focusing on their“core businesses”

 Expand environmental load
reduction business• Propose integrated plans (energy
conservation, new energy, etc.) fromthe standpoint of a bldg. maintenancespecialist
 Prioritized allocation of management
resources“Quality”
 Build a new business model
New cleaning model,
man-hour productivity
For FM and Security businesses:• Apply IE and service engineering• Reduce labor/manpower throughinnovation and IT

 Increase corporate competitiveness• Realize synergies within the Group,
efficient organization, and cost
reduction

§4 ReferenceDelight Way – Managing Principles / Visions -At AEON Delight, we pursue the creation of“environmental value” for our customers.

Delight
SafetyComfortHuman environment

We will continue to be a pioneer in creating“Environmental Value” that unceasingly promotes
improvements in safety and comfort.

The AEON Delight Group
With Do Service joining us, the AEON Delight Group now
comprises 8 domestic companies and 1 overseas company.
Expert in training the next generation of engineers

AEON Delight Academy Co., Ltd.

Expert in financial facilities management

AEON Delight Seres Co., Ltd.

Expert in security services for commercial complexes

Expert in back-office support

AEON Delight Security Co., Ltd.

AEON Delight Towers Co., Ltd.
Expert in community-based building
maintenance services

An Asian HQ for our overseas strategies

AEON BeijingInternational Co., Ltd.

Kankyouseibi Co., Ltd.
AEON Delight Co., Ltd.
Professionals specializing in creation of a clean environment

Do Service Co., Ltd.
Professionals specializing in maintenance ofsmall commercial complexes

A to Z Service Co., Ltd.

(Reference) Profit and Loss Analysis
1. Five-year summary (graphs)

Millions of yen

160000

12000

6000

10000

5000

8000

4000

6000

3000

4000

2000

2000

1000

140000120000100000
80000
60000
40000
20000
0

0

0
ＦＹ２００６

ＦＹ２００７

ＦＹ２００８

ＦＹ２００９

ＦＹ２０１０

ＦＹ２００６

ＦＹ２００７

ＦＹ２００８

ＦＹ２００９

ＦＹ２００６

ＦＹ２０１０2. Five-year summary (numbers)
FY02/2006
Results

ＦＹ２００９

ＦＹ２０１０Millions of yen

FY02/2007% to net
sales

ＦＹ２００８Net Income

Operating Income

Net Sales

ＦＹ２００７

Results

FY02/2008% to net
sales

Results

FY02/2009% to net
sales

Results

FY02/2010 (forecast)% to net
sales

Forecast% to netsales

Net sales

62,323100.0

111,170

100.0

137,519100.0

145,690100.0

150,000

100.0

Operatingincome

2,949

4.7

5,576

5.0

8,330

6.1

9,946

6.8

10,100

6.7

Ordinary
income

2,953

4.7

5,485

4.9

8,186

6.0

9,812

6.7

9,900

6.6

Net income

1,324

2.1

2,998

2.7

4,379

3.2

4,876

3.3

5,200

3.5

(Reference) Key Management Indicators
FY02/2007

FY02/2008

FY02/2009

1H FY02/2010

EPS¥151.17¥110.39¥122.92 *¥65.32ROE

16.85%

21.03%

19.89%

9.32%

ROA

7.62%

9.17%

10.11%

5.39%

Ratio of ordinary income
to net sales

4.93%

5.95%

6.74%

6.67%

Ratio of net income to net
sales

2.70%

3.18%

3.35%

3.56%

2.83

2.88

3.02

1.52

Shareholders’ equity ratio

39.87%

47.43%

54.15%

61.65%Net assets per share¥966.41¥566.87¥669.28 *¥707.56

PER

20.51

19.79

10.29

10.44

PBR

3.21

3.85

1.89

1.93

¥3,100¥2,185¥1,266¥1,364

Total assets turnover(Reference) Share price at

end of period*The figures with * show amounts after stock split.

(Reference) Employees
1. Number of employees
FY02/2005

FY02/2006

FY02/2007

FY02/2008

Male
Female

2,306
157

2,396
184

3,810
367

4,013
378

End of 1H
FY02/2010
4,642
4,110
564
504

Total

2,463

2,580

4,177

4,391

5,206

4,514

Male
Female

745
131

606
132

1,094
133

1,379
136

1,248
107

1,685
144

Total

876

738

1,227

1,515

1,355

1,829

Part-time workers

2,499

2,444

2,834

2,652

3,333

3,761

Total

5,838

5,762

8,238

8,558

9,894

10,204

FY02/2005

FY02/2006

FY02/2007

FY02/2008

FY02/2009

End of 1H
FY02/2010

41.8

44.1

45.2

46.9

47.1

47.0

Regularemployees
Contract
employees
Contract
employees for
special duties

FY02/2009

2. Average age

Average age* The above data are current as of August 31, 2009. Numbers for part-time workers are calculated by dividing total monthly
working hours by 172 hours.
The total number of employees is 14,211: 6,443 regular / contract / specialized-duty contract employees and 7,768 part-timeworkers.

(Reference) Shareholders / Stock Price
2. Shareholders by type

1. Major shareholders (top 10)
Ratio to the total number of shares outstanding.

Place

Shareholders

1
2
3
4
5
6
7
8
9
10

MYCAL Corp.
State Street Bank and Trust Company
Treasury stock
Japan Trustee Services Bank, Ltd. (trust account)
Japan Trustee Services Bank, Ltd. (trust account 4G)
AEON Delight Employee Stock Ownership Association
The Master Trust Bank of Japan, Ltd.
AEON Co., Ltd.
State Street Bank and Trust Company
Trust & Custody Services Bank, Ltd.

No. of shares owned

Self-owned
4.2%%

23,261,800 56.2%
Financial
institutions
2,111,700 5.1%
9.4%
1,729,736 4.2%
922,800 2.2% Individuals
and others
911,300 2.2%
9.9%
Foreign
587,400 1.4%
corporations
575,500 1.4%
16.7%
560,800 1.4%
394,700 1.0%
336,000 0.8%

Securities firms
0.5%

Other
Japanese
corporations
59.3%

3. Stock price (September 1, 2006–August 31, 2009)
SharesYen

500,000

3,000

400,000

2,500

300,000
200,000
100,000
0High¥2,785/share(Oct. 20. ’08)

2,000
1,500

Low

1,000

¥1,025/share(Nov. 21, ’06)

500
0Largestvolume460,700 shares(Feb. 9, ’09)

* The above data is current as of August 31, 2009. Prices on and before November 30, 2007 have been converted to those after the stock split.

Disclaimer, etc.
 This material contains certain statements describing thefuture plans, strategies, and performance of AEON Delight.
 These statements are not based solely on historical facts, butrather on assumptions and estimates based on currently available
information. Because of this, AEON Delight’s actual performance
may differ materially from the assumptions and estimates supplied.

 Unless otherwise stated, the following applies to data
supplied.
 All numbers are on a consolidated basis.
 Any fraction below one million yen is disregarded.
 Percentages are rounded to one decimal place.
* Effective from the fiscal year ending February 28, 2010, the Company applies the “Accounting Standard
for Quarterly Financial Reporting” (ASBJ Statement No. 12) and the “Guidance on Accounting Standard
for Quarterly Financial Reporting” (ASBJ Guidance No. 14). The Company also prepares its quarterly
consolidated financial statements in accordance with the “Regulations on Quarterly Consolidated Financial
Statements.”

Thank you very much for your kind attention.
Comments and inquiries should be directed to the following:

AEON Delight Co., Ltd.
(Stock code: 9787)
IR Contact

Masatoshi Sashie
Delight Communication Department
TEL +81-6-6260-5632
FAX +81-6-6260-5653
Or visit our website at:
ｈｔｔｐ：//ｗｗｗ．ａｅｏｎｄｅｌｉｇｈｔ．ｃｏ．ｊｐ* When sending a fax, please include your name and contact details.
This presentation has been prepared using the information available as of the date of the presentation (October 6, 2009).
The earnings forecasts contained herein may be revised due to unforeseen factors that may arise in the future.